CA Economic Fundamentals 2008-10

[joeiannuzzi]

Five ways to turn capital losses to your advantage

I recall visiting a casino a few years back with Marty, a friend of mine. Now, I`m not a gambler, but I did lose 20 bucks on the slots that day, after about 20 minutes of playing. So, I waited for Marty near the entrance to the casino. An hour later, Marty finally returned to the front with a bag full of coins.

"Looks like you won big-time," I said.

"Oh yeah," Marty replied. "I found an amazing machine in the back corner," he continued. "Whenever I put a loony into the machine, I got four quarters back!"

http://www.theglobeandmail.com/servlet/sto...Story/TPComment

 

[Torey]

Canadian banks ranked soundest in the world

U.S. has fallen to No. 40 in World Economic Forum list


Canada has the world`s soundest banking system, closely followed by Sweden, Luxembourg and Australia, a survey by the World Economic Forum has found as a financial crisis and bank failures shake world markets.

http://www.cbc.ca/money/story/2008/10/09/w...nks-rating.html

 

[joeiannuzzi]

Ottawa to buy, repackage mortgages

OTTAWA - Ottawa is set to make cash available to the country`s financial institutions to alleviate "severe restrictions" Canadian households and firms face in obtaining long-term financing.

Measures to be introduced, which informed sources say could happen any day, would have the federal government acquire mortgages from lenders. The government would repackage the mortgages into securities for sale in the market.

http://www.canada.com/edmontonjournal/news...d8-a8d986d046c8

 

[DragonflyProperties]

Report on Business - Nurturing the Golden Goose (National and Provincial Economies)

It`s crucial we take up the cause of the economy during these times

Hi all,

An article from the September 29[sup]th[/sup] edition of the Globe and Mail (Report on Business). Excerpts:

With national and provincial elections unfolding over the coming months, it`s time to ask our aspiring leaders some tough questions about innovation and competitiveness in this country.

In recent weeks we have seen many politicians eagerly announce various new ways to spend taxpayers` money. However, we must remember that governments do not generate the resources they give away. They reallocate resources obtained by taxing individuals and corporations in the private sector - the golden goose that ultimately pays for everything. This is not a political statement, but a reality - one that we dare not ignore. This reality should be kept in mind, whether we are corporate executives, labour leaders, or just ordinary citizens.

We are operating in a globalized economy in which our position is more fragile and complex than most political leaders would like to recognize.

Some politicians ignore the importance of taking care of the golden goose, assuming instead that "budgets don`t matter" and that tax and regulatory policy is irrelevant. Investors and corporations, the thinking goes, will come here anyway. Other politicians figure that they will make up their promises by simply raising taxes, not accounting for the fact that business and the very professionals and entrepreneurs we need to build a higher-value economy just move away and manage their investments elsewhere.

So what are some areas in which we could provide some useful queries during this election year?

- Growth
- Foreign Capital
- Productivity
- Learning
- Labour Efficiency
- Regulation
- Government Efficiency
- Subsidies

http://www.theglobeandmail.com/servlet/story/LAC.20080929.RMUZYKA29/TPStory/?query=daniel+F.+Muzyka

Keith

 

[joeiannuzzi]

Loonie`s slide steepest in 38 years

The Canadian dollar suffered its biggest one-day drop in almost 38 years and oil slid below $78 (U.S.) a barrel yesterday as investors continued panic selling across the board on global markets.

"The dollar is in free fall along with commodity prices," said Sal Guatieri, senior economist at BMO Capital Markets.

"It`s ongoing fear that we`re heading for a global recession, and probably a deep one," he said.

http://www.thestar.com/Business/article/515934

 

[joeiannuzzi]

Cut through the hype and do the math

"Why is it that my realtor always tells me it`s a good time to buy?" a friend asked recently. If the market is up my agent will say, "It`s a great time to buy. You`ll never be able to afford a house in this market again."

If the market is down he`ll say, "It`s a great time to buy. After all, we`re talking long-term here, buddy."

http://www.yourhome.ca/homes/article/514328

 

[joeiannuzzi]

Tory minority likely, says poll

The federal election campaign is coming down to a possible photo finish as the ruling Conservative party`s lead over the Liberals is narrowing in the face of voter volatility spurred by the U.S.-born global financial crisis, according to the results of a sweeping new Ipsos-Reid poll.

The poll, conducted exclusively for Canwest News Service and Global National, said Conservative support was at 34 per cent, compared to 29 per cent for the Liberals, 18 per cent for the New Democratic Party, nine per cent for the Bloc Quebecois and eight per cent for the Greens.

http://www.canada.com/windsorstar/news/sto...f3-c7c70c73bc18

 

[joeiannuzzi]

Banks lower prime rates

OTTAWA -- Following an announced government plan to buy mortgages from Canadian banks, a number of lenders Friday unveiled plans to cut their prime rates -- though by differing degrees.

Earlier in the day, the government announced a $25-billion plan to buy mortgage assets through Canada Mortgage and Housing Corp. in an effort to stem rising borrowing costs.

TD Canada Trust was the first bank to make an announcement, saying it would lower its prime rate 15 basis points to 4.35 per cent. Later, Canadian Imperial Bank of Commerce made an identical move.

http://www.canada.com/windsorstar/news/bus...ee-702272f3db00

 

[joeiannuzzi]

12 questions to ask before buying U.S. real estate

With the sub-prime housing crisis casting a dark a shadow over the United States, many Canadians are searching for hot deals on American properties.

But is it the right time to invest in U.S. real estate? And just because you can bargain shop, can you really afford all that goes with owning foreign property?

These are the top questions TD Waterhouse senior vice-president Patricia Lovett-Reid has been getting.

http://www.canada.com/victoriatimescolonis...a9-54ccc11bac86

 

[joeiannuzzi]

Tories closing in

Prime Minister Stephen Harper held the first event of his campaign in Quebec City. One of his first television advertisements, "Family is Everything," depicted him as a doting father. In it, he wore a sweater vest, not a suit.

NDP Leader Jack Layton made his first campaign stop in Calgary. One block from Harper`s constituency office, he assailed the Conservatives` environmental and economic record. His first TV ads touted a "new kind of strong."

http://www.thestar.com/federalelection/article/516262

 

[joeiannuzzi]

Look for insurance costs on your credit card bills

You could be paying for insurance you didn`t know you had on your credit card balance. Usually sold by telemarketers, the insurance has a small monthly fee. It`s easy to miss.

A mother told me she spotted a $4.57 charge – labelled payment protector premium – on her daughter`s CIBC Visa bill.

Her daughter, a recent university graduate working at her first job, said she hadn`t authorized the charge. But the bank had recorded the call and could show the daughter had agreed to the insurance.

http://www.thestar.com/Business/article/516200

 

[joeiannuzzi]

Canada to grow amid meltdown: Flaherty

WASHINGTON — Finance Minister Jim Flaherty emerged from a meeting with President George W. Bush and top world economic figures today and described the atmosphere as grim during discussions on a global solution to the worst financial crisis since the Great Depression.

"Certainly the mood here, I can tell you, is one of uncertainty and serious concern," Flaherty said outside the International Monetary Fund headquarters following his half-hour meeting at the White House.

Although he called the credit crisis "severe and protracted and continuing," Flaherty had reassuring words for Canada, noting the country`s economy is expected to enjoy modest growth next year.

http://www.torontosun.com/money/2008/10/11/7054736.html

 

[joeiannuzzi]

The sky isn`t falling, so it`s no time for Ottawa to overreact

Media reports described the early weeks of this election campaign as boring. Stéphane Dion`s impossibly complex Green Shift, that focused on a $50-billion-plus spending program financed largely by a carbon tax, was going nowhere with voters. Jack Layton`s plan to impose $50-billion in taxes on the business engines of our economy resonated only with the party`s hardcore socialist supporters.

Then manna from heaven came for both parties when reports of international economic chaos, combined with a precipitous drop in the S&P/TSX composite index, shifted voter attention from these doomed platforms. Even Canadians who never owned a corporate share and couldn`t care less about the stock market suddenly feared for their homes, their retirement savings and their jobs. But what else, besides a big drop in the stock market, has really changed in Canada since the election was called?

http://www.theglobeandmail.com/servlet/sto...ory/TPBusiness/

 

[joeiannuzzi]

Diamonds lose their lustre

Precious Gems - The prices realized for top-quality, unpolished diamonds are the latest victims of the credit crunch, industry figures showed on Tuesday, as even the world`s super rich get choosy about what they buy.

Before the latest wave of economic turmoil, with the sector struggling under heavy debt, prices of top gems had held up while the price for smaller, mass-market diamonds slumped.

http://www.canada.com/calgaryherald/news/c...69-3e2142701778

 

[joeiannuzzi]

Corporate tax cuts, solutions to credit crisis top PM`s agenda

OTTAWA -- Stephen Harper`s Conservatives returned to power with a stronger minority yesterday, facing a weakened opposition leader and ready to pursue an agenda that is likely to be aimed at addressing fallout from the economic storm sweeping the globe.

The results of yesterday`s election deprived Harper of the majority he so desperately wanted when he dissolved his minority government on Sept. 7.

http://www.canada.com/victoriatimescolonis...ac-e92dbf9609ab

 

[joeiannuzzi]

Russians eye pipeline through Canada

MOSCOW -- Russian gas export monopoly Gazprom said its top executives had visited Alaska, where the gas company is seeking a share in a project to pipe gas via Canada to the main U.S. market.

http://www.canada.com/victoriatimescolonis...cf-0a9df9812a06

 

[joeiannuzzi]

Warning! Worst is yet to come

NEW YORK -- Nouriel Roubini, the professor who predicted the financial crisis in 2006, said the U.S. will suffer its worst recession in 40 years, driving the stock market lower after it rallied the most in seven decades Monday.

"There are significant downside risks still to the market and the economy," Roubini, 50, a New York University professor of economics, said. "We`re going to be surprised by the severity of the recession and the severity of the financial losses."

http://www.canada.com/theprovince/news/mon...37-5937baf6f3f8

 

[joeiannuzzi]

Canadian banks `doing fine`

Canada`s government is unlikely to buy shares in the country`s domestic banks because they are in much better shape than their American and European counterparts, which have required massive assistance from their governments, market observers say.

National Bank analyst Robert Sedran says that Canadian banks have emerged relatively unscathed by the U.S. subprime problems because of more conservative lending.

"The banks in Canada have strong balance sheets and are doing fine," he said yesterday in a phone interview.

http://www.torontosun.com/money/2008/10/15/7088271-sun.html

 

[joeiannuzzi]

Mortgage borrowers pushed to lock in

Canadian banks are trying to convince consumers to lock in their mortgage rates because more than 20% of the home loans they have negotiated have become unprofitable, according to industry sources.

The push has come after the banks cut the discount they offered to consumers with variable-rate products tied to the prime lending rate. Two weeks ago a consumer could get a variable rate product at 0.60 percentage points below prime; today it is one percentage point above prime.

http://www.nationalpost.com/todays_paper/s....html?id=880446

 

[joeiannuzzi]

Banks `scaring` up business with mortgage push

Canadian banks are trying to convince consumers to lock in their mortgage rates because more than 20 per cent of the home loans they have negotiated have become unprofitable, according to industry sources.

The push has come after the banks cut the discount they offered to consumers with variable-rate products tied to the prime lending rate. Two weeks ago, a consumer could get a variable-rate product at 0.6 percentage points below prime; today, it`s one point above prime.

http://www.canada.com/edmontonjournal/news...fa-133ad0fb1fdd