pgtips

Is the credit crunch causing panic in Canada like it is in Uk ?
Hard to sell real estate, Job loss etc. If you are new to Canada how is the general feel of the economic climate. Do you think you are financially better off than when you were in the UK ?

Steve_P

Not yet but the banks are starting to tighten up on credit.

pgtips

If only that were the case in the Uk. The banks have long since tightened there belts, bank shares have been in free fall, and did I forget to mention the thousands of banking jobs lost. The market confidence from a high of two or three years ago has sunk to rock bottom.

Those relying on their house sale to fund their new life abroad may be in for a bit of disapointment.

dbd33

It'll come here too. Not until after October 14th but it'll come.

Craftybanshee

I work as a Housing Officer and lately we've had a lot more people struggling with their rents etc. Things are pretty tight here. I'm on a temporary contract and am looking for a permanent job but there's not many office jobs being advertised at the moment Employers seem to be cutting back ....

iaink

The obvious repercussions are to be seen on the toronto stock market, which has dropped even more than US markets in recent weeks as energy stocks as well as banking have taken a beating.

Day to day life seems much the same, but there is much concern over the coming economic storm. Its often been said that if the US economy sneezes the Canadian economy gets a cold, Canadian manufacturing and resources are inextricably linked to the US economy. In addition to that a lot of Canadian banks have exposure to the US sub prime credit problems.

Canadian law prevented the canadian banks getting into the same mess in the domestic canadian market, property in Canada does not seem to have suffered to the same degree as the US, but the market is certainly slower than it was, not much is shifting, and price drops seem likely to me.

Job losses in manufacturing in Ontario have been quite severe and going on for a while now, indicative of a slowing economy. Hundred of thousands of lost jobs related to the auto industry and plant closures, but it hasn't really had the media attention it warranted because oil was still driving the economy out west. Recently the price of oil has dropped alarmingly down under $100 again, which will make many of the oil sands projects marginally viable for the time being, and that will mean job losses out west too if it stays there.

Things are probably not as grim as in the UK or US at the moment, but its not going to be a bed of roses either for a while, and I expect it will get worse in the post election period too. An awful lot depends on what oil does, and how soon the US can turn things around.

seanyg

eh?

Paul Wildy

Having spoken to people in the UK such as my parents there is obviously continual talk of doom and gloom in the UK. I couldnt honestly say the general mood is like that here, it does seem to be business as usual. I had a look at some of the latest house price data and some areas that saw dramatic price increases (such as Vancouver and Calgary) are now seeing price declines but most of Atlantic canada seems to be seeing continued price rises (but moderated from what it was - only about 4% in Halifax over the last 12 months).

I have no doubt that things will tighten though. I'd like to say they wont but as other people above mention the US is our number one consumer of Canadian exports so a deep recession in the US (and yes I do think there will be a deep recession in the US - I expect the $700bn injection is designed to show the public that their government is doing something but I really dont think it will make the slightest bit of difference in reality - certainly Wall St doesnt seem to think so either) will inevitably affect Canada.

dbd33

Federal election day.

iaink

There's an election going on. Its not in the incumbent governments interest to publish bad data in the days before hand...not that they would do that sort of thing...

Or it could be that confirmation once more of another ineffective minority government will not boost the markets.


I think the mood on the street is not too negative because the government has been putting a brave face on and saying the credit crunch wont hit here as bad as Canadian laws were in place to regulate things, which is true enough, however, when you look at the numbers (TSE down nearly 30% compared to a hair over 10% for the Dow) and the price of oil, as well as manufacturing output, it paints a much bleaker picture in reality.

The attached chart shows the markets for the last 3 months, blue line is the TSE, red is the Dow Jones. Its not pretty.

seanyg

Oh right - I've obviously not been watching enough Canadian tv on the internet!

Cheers

Rete

Why are you asking this question in all of the forums on BE? Any particular reason why you want to know?

jericho

Personally, I reckon it'll hit Canada pretty hard sooner or later. I've only been here a few weeks, but almost everything is interest free/nothing down/pay nothing til next year etc.
It's these kind of deals that allow people to over stretch themselves and get in serious debt problems...

MarkG

True, but there's a big difference between 'buy now, pay next year' on a $1000 sofa and taking out a $600,000 mortgage on a house that's worth $300,000 when you earn $20,000 a year.

But, hey, if house prices drop 50% here I won't complain so long as I don't lose my job in the process; we'd save a fair chunk of money on moving up to a bigger house in a fancier part of town.

pgtips

I ask in different forums because I have friends living in all corners of the globe. Every topic in the UK seems to consist of how tight things are now, and nearly everybody I know seems to be suffering in some sort of way.
Is this capitalism gone wrong or just the sheer greed of a few causing so much misery fgor the majority.

I am just curious to know is there anywhere that is immune ?

My Electric and gas has risen 25-30 %
Water rates by 11 %
Food by 15- 20 %
Petrol 30-40 %
Council tax up
and just about everything else shot up !!! Everybody is just fed up now.

Thats the reality of things here, and thousands can no longer meet their monthly home payments or even heat their houses properly.

I hope things do not get so bad in Canada, I have good friends moving to Alberta next month and they are hoping to get away from the mess in the UK.