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Originally posted by Nightmare

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Originally posted by dhaikin

Absolutely, recession is a given now. Oil price downward trend is in process, & the full impact of this will be felt in the months ahead. Alberta is the ground zero, but transfer payments to Ontario will take a hit.
That's the irony, every few yrs recession hits, & people loose all their rainy day savings whatever little they can afford to save

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Europe is trying to resort to quantitative easing. However, once the downward spiral starts, there is no stopping this time as the engine of the world would sputter. USA has no chance to reduce the rates as it is already near zero. If recession hits, it is going to hit much harder this time around.

The sign to see is housing prices. If house prices stumble, the domino would fall.

In my opinion, it is still too early to make a call. Lower Oil prices would certainly help Asian economies like Japan, China and India to control inflation and kick start cycle of growth there. However, there is a time lag involved and that is the cause of concern. If something goes drastically wrong during this period of wait, recession would follow. Fortunately for the world, all three Asian economies are headed by very dynamic persons and notwithstanding socialist policies of Obama stunting growth, recession would be avoided.

as far as Canada goes, it has already entered cycle of low growth era due to short sighted policies of Harper. He favored Alberta at the cost of Ontario. Oil prices, after a year are likely to settle at $70 a barrel. Thus Canadian economy is doomed unless Harper loses election. Present opinion poll are in his favor bvs of division betweenNDP and Liberal. I guess Canada would be doomed in next few months and Harper knows that. He is pushing for Spring election precisely for that reason.

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To late now, the sinkhole is getting bigger. Alberta's love affair with oil is never ending & now its the time for sacrifice.
This low oil price is here to stay for prolonged period. The ripple effects will shock the best of best HR personel.
As far as India attracting investment, it has a vibrant & dynamic leadership & a young population, both is an excellent recipe for higher growth going forward. Canada hasn't got neither of them, only borrowing from tomorrow & spending it today doesn't makes any economy grow. Its time to accept de-growth (as the last few yrs of prosperity was borrowed from the future).

I agree that Canadian economy is in for lots of trouble. Every country on the planet, when faced with recession has resorted to quantitative easing. Canada has a small wriggle room as we can still reduce interest rate by 1%. However, Canada has played with fire for long. Almost 25% of Condo in Vancouver and Toronto are owned by crooks of third world and if CDN depreciates further, they will pull money by selling and flee. The biggest threat to Canada is a housing recession as there are many idiots who have borrowed against house equity.

My another worry is that when chips are down, Harper will help Alberta and hit Ontario. Anyway, there is little I can do. I do not lose sleep on that issue.

As to dhaikin's optimism regarding India, I am skeptical too. MSM and Commies/ lefties/Lutyens type are very active in keeping India a third world country. Only if BJP wins Delhi, there will be some hope.
Under the circumstances, I would reduce my liabilities if I have money before investing elsewhere.

BJP's Delhi win is guaranteed now. Watch out for a 60+ mandate. AK-49 is proven to be like a grenade soiled in water, can't burst anymore. He's heading to Tihar jail after elections..

My friend works for Target , he was one of the initial people to join Target Canada. He told me that the main problem was the warehouse they built was not big enough and not planned properly. For any retail store, distribution is the most important thing. Due to this it was resulting in empty stores. So of course it is lack of planning. We cannot take away the fact that Canada is a difficult environment for Business to survive, partly because it is a vast country with higher distribution costs, taxes, duties etc. So obviously anyone who comes to Canada has to treat it like a different market and think about it. The environment doesn’t allow too many players to survive because the demand is less. Canada needs to change its approach else things are going to be like this, we need to cut down on costs and try to bring the taxes down for businesses. Cut down of Social programs, decrease spending. We need a republican approach which will attract business in the country. We need to stop paying 6 figure salaries to Canadian govt employees doing clerical jobs.
Coming to whether lower oil prices will bring Canada into recession or not, well I feel the growth would reduce but we won’t go into recession. Canada never had great growth rates. This is not a place where one will make lot of money. If you want to make more money USA or Middle East is the place to go.

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Originally posted by vivek901

We need to stop paying 6 figure salaries to Canadian govt employees doing clerical jobs.

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Originally posted by vivek901

Cut down of Social programs, decrease spending. We need a republican approach which will attract business in the country.

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