How is the economy now in Canada with the low price of Oil?
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was talking to a major financial guru today morning about the RE in GTA & NO he does not work for RE agency or something... He is a proved finance guy
he told me few points & again this is about GTA & not whole Canada
(1) Go figure out what happen to major US cities like NY in recession. Did their RE got slammed ??? the answer is NOT AT ALL !!! It is only the small & medium cities of the countries who gets effected more.....
(2) Also the Government has lots of tools to save RE from crashing such as lowering the interest rate which they did recently, but still has lot of room to do it again.
Another tool which he mentioned was about 3 years earlier Canada ruled a 20% down-payment for the First time home buyers or they have to take mortgage of 25 years instead of 30 years. The government can anytime revert that rule back to support the RE. Also they can anytime make the 35 years mortgage available again....
(3) Is lower currency rate & lower interest rate bad for the economy ??? The answer is NO....
(4) If the oil based provinces are going to have a bad time because of lower oil prices, GUESS where the people will move within the country.... The answer is around a area where there are manufacturing/service jobs
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i..........rock........!!!!!
Quote:
Originally posted by irock
(4) If the oil based provinces are going to have a bad time because of lower oil prices, GUESS where the people will move within the country.... The answer is around a area where there are manufacturing/service jobs
Agree with all your points, except for this one. Manufacturing has already off-shored to China and has a slim chance to come back. May be some left over Auto industry, but even then the changes to manufacturing won't be as big as they initially projected. So far, it's dud.
I can see Canadians to move over and transition to the Service industry, much alike majority of the first world countries. Once the college goers realize that jobs in natural resources and commodities are not that stable in the long run.
Quote:
Originally posted by febpreet
Quote:
Originally posted by irock
(4) If the oil based provinces are going to have a bad time because of lower oil prices, GUESS where the people will move within the country.... The answer is around a area where there are manufacturing/service jobs
Agree with all your points, except for this one. Manufacturing has already off-shored to China and has a slim chance to come back. May be some left over Auto industry, but even then the changes to manufacturing won't be as big as they initially projected. So far, it's dud.
I can see Canadians to move over and transition to the Service industry, much alike majority of the first world countries. Once the college goers realize that jobs in natural resources and commodities are not that stable in the long run.
Low quality manufacturing will not comeback under present circumstances, but Ontario holds promise for high end manufacturing. Unfortunately the Liberal govt's mismanagement of the province for the last decade will not kick start the economy anytime soon either. 2004 to 2014 was a lost decade for Ontario, with valuable time wasted by our social-justice-warriors and bureaucrats. The current favorable factors of low oil price and devalued currency may not be sustained long enough in order to be harnessed.
In terms of innovation and productivity, Canada is way behind US in order to be competitive. Canada as manufacturing investment hub has an advantage only in terms of tax incentives, vis-a-vis the US.
With the "Make in India" we can expect India to be global manufacturing hub over the next decade. All this at a low crude price is a gift from God for the current Modi govt.
Its exactly the opposite for Canadian economy
dhaikin: Did you move to India .... 'cause I am making a list of CDs under different categories: Happy CDs in Canada, Cds moved to India, Cds likely to move to India ( who should not stay in Canada because they can't be happy here).
Location: God's own country
Posted on: 31-01-15 02:20:48
As one of my famous boss said ' It is very easy to stop a project. It is very hard to restart the project'.
Yes Canada might have been a very good manufacturing hub, high tech hub etc.., but the fact remains that it has concentrated on develping oil fields that it has thrown the other strength's to the dogs.
It will take time for Canada to retake the market share which is now taken by China and South America /mexico.
Good news is that USA is now leading in Auto sales. So that means that our once down auto sector has a very good chance to come up and we can be leaders in Automotive field soon.
Canada is also rich in natural resources such as timber / lumber, pottasium (fertilizers). These might still be competetive with the lower Canadian $ value.
Immigration remains our trump card. This will ensure that housing demand will be stable. Each migrant brings with him atleast 3 people. So they would all need food, pay rent, purchase cloths, pay hydro, pay insurance (all this will give 13 % HST) to Govt.
Let us see how this will play out. But the first people to feel the pain will be our fellow Albertans.
Je Suis Manufacturing !
Murali
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I am a Gents and not a Ladies.
holly molly !!!! came around this forum after couple of years & TK is still around ???
TK, I thought you left for India !!!
Are you still around demoralising the new comers & bitch**g about Canada (on daily basis) ???
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i..........rock........!!!!!
