CA Economic Fundamentals 2008-11

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Homebuying intentions holding steady in Canada

As house prices decline and mortgage rates remain low, homebuying intentions among Canadians are holding steady, says a national survey.

Despite the global economic turmoil and the softening of the Canadian economy, more than one in five respondents (22 per cent) were either very likely or somewhat likely to buy a home in the next two years, says an Ipsos Reid survey on behalf of RBC in October.

http://www.canada.com/calgaryherald/news/n...7d-293e09ce05b4

 

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The flippers are flopping

"Big profits! Quick turnovers! Everyone`s getting into the act! Live the dream of working for yourself while raking in the cash."

House flipping -- the act of buying, renovating and selling a property for profit -- was a seduction that tempted many during the real-estate market`s near decade-long boom that`s now sputtering.

http://www.nationalpost.com/todays_paper/s....html?id=983183

 

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When rental losses get personal

Each month the Tax Court is full of cases where taxpayers are attempting to write off seemingly personal expenses as commercial expenses. This month is no exception.

Take the recent case of Paulo Salgado, who in 2003 and 2004 claimed rental losses of $5,800 and $3,400, respectively, on his tax return relating to one of two houses he owned those years.

http://www.nationalpost.com/todays_paper/s....html?id=983189

 

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Fixed rate was my rookie mistake

When it comes to ranking some of my biggest financial blunders, getting a fixed-rate mortgage when I purchased my first home is right near the top.

"Don`t lock in, mate, it never makes sense," I remember a senior columnist at the Financial Post telling me about 11 years ago when my wife and I decided, pre-kids, to lock into a bigger commitment than our marriage.

http://www.canada.com/ottawacitizen/news/b...be-08166f466210

 

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APEC summit ends with confident predictions

LIMA, Peru–The financial crisis threatening to plunge the world into recession can be overcome by mid-2010, Pacific Rim leaders said Sunday as they wrapped up a two-day summit.

"We are convinced that we can overcome this crisis in a period of 18 months," the 21 leaders said in the statement. "We have already taken urgent and extraordinary steps to stabilize our financial sectors and strengthen economic growth.``

http://www.thestar.com/news/world/article/542101

 

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Scotiabank CEO suggests new approach for growth

The world`s emerging markets will never be more important than they will be in the next two years to help revive the depressed economies of the G-7, Bank of Nova Scotia CEO Rick Waugh said in a speech to a business audience here at the annual leaders summit of the Asia Pacific Economic Co-operation forum.

"We need the growth. And where, in the next two years, do we see the growth coming from? Largely from APEC. Largely from emerging markets," Waugh said.

http://www.canada.com/calgaryherald/news/s...64-87dab753631d

 

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Canadian banks to unveil giant losses

Canadian banks are set to unveil some of the worst quarterly results in recent memory thanks to losses suffered as a result of the global financial crisis, capping an already difficult year and setting the stage for what is expected to be another rocky period ahead for the once-stable sector.

For Canadian consumers, 95 per cent of which do business with the so-called Big Six banks, the millions of dollars in losses will make it even tougher and more expensive to borrow money.

"It`s going to be pretty ugly for everyone," Chris Blumas, an analyst at Morningside Inc. said of the bank earnings that will be released starting Tuesday.

http://www.torontosun.com/money/2008/11/24/7515311.html

 

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Deflation threat alarms PM

LIMA–With the federal government now acknowledging that Canada may already be in recession, Pacific Rim leaders yesterday wrapped up a summit here that, in the end, was as much about their domestic political requirements as it was about the need to co-operate to prevent global economic collapse.

Nowhere was this more evident than in the performance of Prime Minister Stephen Harper, who used the Asia Pacific Economic Co-operation forum – and the threat of another great depression – to justify why he is backpedalling on his election campaign promise never to run a deficit.

http://www.thestar.com/news/canada/article/542269

 

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Poll suggests Canadians ill-informed on economy

Canadians are ill-equipped to make the right decisions for themselves and their families as they try to cope with a "once-in-a-century" worldwide economic and financial meltdown, a new poll indicates.

The survey commissioned by the Canadian Foundation for Economic Education shows that many Canadians may have unjustified confidence in their own financial and economic capability.

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

 

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Fight recession through infrastructure: Flaherty

TORONTO - Ottawa wants to build billions of dollars of bridges, hospitals and other infrastructure as a way to lessen the blow from the financial crisis, Finance Minister Jim Flaherty said Monday.

Speaking at a conference in Toronto, Flaherty said investments in infrastructure will be "a key part" of the government`s strategy to stimulate the economy.

http://www.canada.com/windsorstar/news/bus...41-8c28e38b1464

 

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Looming electrical industry labour shortage may lead to rate hikes

EDMONTON - Canada`s electrical and telecom industry is facing a huge manpower shortage as almost one-third of its staff head for retirement over the next six years, says a federal government-funded council. And that could translate into higher power rates in the future.

"The industry faces an immediate shortfall of 1,300 positions every year. But 25,000 people will also retire within the next six years," said Catherine Cottingham, executive director of the Electricity Sector Council, which released its workforce planning report Tuesday.

http://www.canada.com/edmontonjournal/news...41-ec1331064f79

 

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BMO weathering financial storm well

TORONTO - BMO Financial Group has been able to preserve capital and maintain earnings amid unprecedented market turmoil, despite taking a $338-million loss on its investments.

The bank`s pool of reserves dipped only slightly as it delivered a steadier performance in the fourth quarter than its larger Bay Street peers, while it took advantage of emergency relief provided by Ottawa to ride choppy financial conditions.

http://www.canada.com/edmontonjournal/news...ec-76fdae569efc

 

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Canada`s recession `not alarming`

PARIS -- Canada is now in a recession that will likely lead to a federal deficit, but the plunge into the red "is not alarming" because Canada`s relatively strong banking sector and healthy government finances leave the country in relatively better shape to manage the global financial crisis, according to a major report released yesterday.

Canada`s economy is shrinking because of its close ties to the U.S. as well as its vulnerability to sliding world commodity prices, said Klaus Schmidt-Hebbel, chief economist for the Organization for Economic Co-operation and Development.

http://www.canada.com/victoriatimescolonis...15-e3b74b13eef6

 

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Retail sales are up: report

A report about rising Canadian retail sales may appear like a ray of sunshine piercing the leaden economic clouds, but the data contained therein stems from the weeks before crumbling financial markets buried consumer confidence. Statistics Canada, which releases retail-sales data with a lag of more than one month, reported yesterday that in September, Canadians spent $36.3 billion, 1.1% more than in August and 5.8% more than in September 2007.

http://calsun.canoe.ca/Business/2008/11/25/7530551.html

 

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Rates slashed for mortgages

A parade of Canada`s big banks acted yesterday to trim mortgage rates, a reaction to the drop in borrowing costs in the bond market, where banks finance their mortgage lending.

The Royal Bank of Canada led the way, announcing it is introducing some new mortgage products while cutting key rates.

http://www.thestar.com/Business/article/544272

 

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Banks` mortgage rate cuts add to housing affordability

The recent fall in housing prices in Canada has made home ownership more affordable, and broad-based cuts to mortgage rates announced by Canada`s major banks yesterday will help even more.

The Quebec-based Desjardins Group said that its index of Canadian housing affordability is "slowly but surely inching its way" back up to its historic average.

http://www.canada.com/ottawacitizen/news/b...cb-2fc22c272b3b

 

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If there`s a will, where is it?

Earlier this fall, estate specialist lawyer Cynthia Hiebert-Simkin of Taylor McCaffrey LLP asked me, "Does your executor know where your will is stored?" While it was a rhetorical question, I admit I had to think twice to remember where my own original will was, let alone confirming my executor would know.

My Free Press colleague John Poyser wrote earlier this week about the different choices for an executor and this is an important thing to think about with regard to your estate plan.

http://www.winnipegfreepress.com/business/...here_is_it.html

 

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Argentina, Canada join forces

A partnership agreement that will promote agricultural shows and business delegations in both Argentina and Canada was signed on Thursday at the Canadian Western Agribition (CWA).

The memorandum of understanding between Luis Etchevehere, director of the Sociedad Rural Argentina, and Shannon McArton, president of the CWA, confirms a commitment between the two organizations to assist each other with their annual agriculture and livestock shows until December 2012.

http://www.canada.com/reginaleaderpost/new...b3-6fb76debf856

 

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Tories may topple over fiscal plan

Prime Minister Stephen Harper`s seven-week-old minority government could end on Monday if opposition parties go through with their threat to defeat the Tories` fiscal plan.

All three opposition parties vowed yesterday to vote against the fiscal update but were careful to say it was not because their parties stood to lose $30 million in federal subsidies. Instead, they say they`re unhappy that the government presented no plan to spur economic growth or help Canadians who have either lost jobs or whose jobs are in jeopardy because of the economic slowdown.

http://www.canada.com/victoriatimescolonis...78-34907401594c

 

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Harper`s partisan ploy misfires

Stephen Harper`s political miscalculation has put his own government, and Canada`s stability, in jeopardy at a time of economic crisis.

That`s one way to interpret a current parliamentary mess that could result in the fall of the Harper government as early as Dec. 8.

That`s when the Commons is to vote on Finance Minister Jim Flaherty`s economic statement, released Thursday.

http://www.canada.com/vancouversun/news/st...a5-f8923b41872e