Canada's Economy; Envy of the World?

I have been listening to a few of my friends about how Canada is going to the toilet with the rest of the world. I stumbled across this article on Yahoo news:

TORONTO – Canada thinks it can teach the world a thing or two about dodging financial meltdowns.

The 20 world leaders at an economic summit in Toronto next weekend will find themselves in a country that has avoided a banking crisis where others have floundered, and whose economy grew at a 6.1 percent annual rate in the first three months of this year. The housing market is hot and three-quarters of the 400,000 jobs lost during the recession have been recovered.

World leaders have noticed: President Barack Obama says the U.S. should take note of Canada's banking system, and Britain's Treasury chief is looking to emulate the Ottawa way on cutting deficits.

Source

I am glad we don't have the too big to fail type of banks. I came across this little article written by John Geddes from Maclean's magazine.

Largely as result of this particular difference, Canadian regulators have tended to be more assertive. Consider this observation from the New York Review of Book’s Feb. 12 article “How We Were Ruined & What We Can Do”: “[Allan] Greenspan had been given the authority to examine the quality of mortgage lending by Congress in the 1990s, but simply did not use it, pleading free-market principles. The SEC under Bush appointee [Christopher] Cox could have examined the books of investment banks, but again mostly did not bother.” Here in Ottawa, I’ve never heard of Office of the Superindendent of Financial Institutions shrinking from scrutinizing our banks, or the brokerage houses they bought after 1987.

One way in which American banking regulation is more intrusive than the Canadian system is the U.S. federal Community Reinvestment Act, which forces banks to lend in low-income areas. Andrew points to this as a mistake, which perhaps it is, but I haven’t read a persuasive case for the CRA being much of a factor in the subprime meltdown. On the contrary, Businessweek’s Aaron Pressman wrote last fall that the CRA can’t be plausibly blamed, since “50 per cent of subprime loans were made by mortgage service companies not subject comprehensive federal supervision and another 30 per cent were made by affiliates of banks or thrifts which are not subject to routine supervision or examinations.” Pressman went on: “Not surprisingly given the higher degree of supervision, loans made under the CRA program were made in a more responsible way than other subprime loans.”

Macleans

I don't think we have seen the end of the market dip but who knows what the future holds? We have economists that say we are on track for the worst disaster, while others completely disagree with them.

I think this might be one of the hot topic issues with the G20 next week.

I have lived in Canada for 13 years and I really haven't seen it get bad. There were times when it got tough but nothing my family couldn't handle.

What do you guys think?

Something else I have noticed as a huge difference between the 2 countries is how the governments treat people's spending. Our government has been encouraging us to try to save more, spend less right now, try not to go into more unnecessary debt, they have tightened up mortgage rules so that we don't lose our houses if the economy tanks.

The US government knows how broke their people are, from the unemployment numbers, and foreclosures on houses, and bankruptcies all around, and yet they keep telling their people to spend, spend, spend, please borrow more. They didn't even have regulations on their mortgages, which just ends up ruining people's lives when their house isn't worth as much as they owe.

Like they are trying to run their country down, break the people as much as possible.

reply to post by snowspirit


I believe it is because there is less regulation with their banks and how big the economy is. We have five major banks who all have a personal relationship with the superintendent, OSFI.

Our bank executives profit less because of the regulations but that stops corruption.

I think the smaller the government and the banks are the easier it is to stop unethical practices.

I think were the 6th most stable economy in the world at this point?

That's pretty amazing feat considering that usually when things go upside down in the states, the same happens here.

It is because our banking system is heavily regulated and doesn't allow for all this nonsense that led to the US crash.

~Keeper

reply to post by Equinox99

What do you guys think?

Canada has the LOWEST debt to GNP of the G7 countries. That says it all. The US could only WISH its ratio was as low as Canada's.

reply to post by Equinox99


dont believe anything from yahoo, all these so called postive spin stories are just for the G20/G8 summit.


People from Alberta have been coming to toronto, looking for jobs, boy they made a bad move, there arent any jobs only part time jobs.

As for goverment jobs you need education, meaning you have to pay for that education if you dont your out.

Things arent pretty as this artlice wants to point out

reply to post by Agent_USA_Supporter


Well I've been out of work since Feb. not related to the economy and we're surviving on one income. So I guess it can't be too bad.

Originally posted by Agent_USA_Supporter
reply to post by Equinox99

 

dont believe anything from yahoo, all these so called postive spin stories are just for the G20/G8 summit.


People from Alberta have been coming to toronto, looking for jobs, boy they made a bad move, there arent any jobs only part time jobs.

As for goverment jobs you need education, meaning you have to pay for that education if you dont your out.

Things arent pretty as this artlice wants to point out

That's history my friend.

It's happend for 100 years in the west. Work booms for 10 or 15 years and then it dies down for 5. your in the lulling of work that's occuring in the West.

The lack of work IMO is derived from our lack of overall population. Not enough immigration.

Although our small size has also contributed to our success in the last few years.

And yes, for ANY good job you need education.

~Keeper

reply to post by Agent_USA_Supporter


While that is true we are still ahead of almost everyone else. Sure we may have a fairly sized unemployment rate but compared to others?

I am laid off as well but I am back in to work on July 12th. It had nothing to do with the economy, it was just re-organizing the shop for other contracts.

There are plenty of jobs out there.

Originally posted by Agent_USA_Supporter
reply to post by Equinox99

 

dont believe anything from yahoo, all these so called postive spin stories are just for the G20/G8 summit.

People from Alberta have been coming to toronto, looking for jobs, boy they made a bad move, there arent any jobs only part time jobs.

As for goverment jobs you need education, meaning you have to pay for that education if you dont your out.

Things arent pretty as this artlice wants to point out

You are far more correct than you know. Many of my clients have restricted or reduced hiring, employee wages are pretty much frozen across the board and unemployment numbers are just as falsified as they are everywhere else.

Sure there is a ton of roadway construction and repairs going on, but unless you are a government shill or have a brother on the appropriations committee you wont be seeing those contracts.

I like the people who claim it isn't that bad, these are the people who didn't have it that good in the first place. (no offense) But for anyone who had 6-10 employees working full time and now gets by on 3-4, those people really know what is happening with the economy and they aren't reading it in the newspapers.

If you would like to determine how wonderful it really is in your demographic, try looking at commercial lease space available. In many many areas there is a huge amount of lease space that was never available before. Even the large companies have reduced their need for office space, in some cases dropping entire floors. Those leasing companies are far more ready to negotiate than they ever were in the past.

..Ex

That's history my friend.

It's happend for 100 years in the west. Work booms for 10 or 15 years and then it dies down for 5. your in the lulling of work that's occuring in the West.

The lack of work IMO is derived from our lack of overall population. Not enough immigration.

Although our small size has also contributed to our success in the last few years.

And yes, for ANY good job you need education.

~Keeper

That has to be the first time i have EVER heard someone say anything is due to not enough immigration, if anything it would be the reverse.

reply to post by v3_exceed


As a Canadian Business owner with multiple locations, I have to say that I have been hiring like CRAZY over the past year.

I've increased my overall workforce by almost 500 in the last two years. My business owning friends are going through the same thing.

IN NEW BRUNSWICK. One of the poorest provinces in Canada, and business has never been better.

There's plenty of work, you just have to find it. You also have to be willing to settle for less sometimes in order to get better later on.

~Keeper

Originally posted by GrinchNoMore

That has to be the first time i have EVER heard someone say anything is due to not enough immigration, if anything it would be the reverse.

You would be right usually. In Canada's case, most small business is started by immigrants who then hire other immigrants or born Canadians to work in their venues.

The government of Canada LOVES to give out loans to freshly immigrated citizens and it's a good practice.

~Keeper

Ahh you are just leveling up then, this is not the same in most areas of canada.


Indeed they do give these loans, which ensures those people work there asses off. This is true.

[edit on 20-6-2010 by GrinchNoMore]

reply to post by Agent_USA_Supporter


I moved to Alberta from Hamilton almost 4 years ago and my trade has always beem busy enough to keep me here. I am in housing/condo construction and there is lots of work in the calgary area.

Originally posted by tothetenthpower
reply to post by v3_exceed

 

As a Canadian Business owner with multiple locations, I have to say that I have been hiring like CRAZY over the past year.

I've increased my overall workforce by almost 500 in the last two years. My business owning friends are going through the same thing.

~Keeper

Well considering the hard and soft costs on 500 employees, I'm going to call BS on that one. sorry. I appreciate that the internet provides a certain amount of anonymity as well as bravado, but the recursive expenses that go along with 500 employees as well as the ancillary costs make what your saying extremely unlikely.

I am also a Canadian business owner with multiple locations in Alberta and in BC. I can only go on my personal experience of the last 15 years as a business owner and the last 44 years as a Canadian. So you can say what you like, but your credibility has just gone down the tubes.

..Ex

Depends on the business, and /or the province a person is in. Saskatchewan is booming in certain industries, and Alberta is starting to pick up again in the oil fields, and maybe some others, depending on the industry. Each province is so different from one another, they might as well each be a different country.

reply to post by v3_exceed


You do know you are comparing Alberta and BC to NB right?

Alberta and BC are known for being expensive when compared to NB, PEI, Nova Scotia and etc.

Originally posted by v3_exceed

Originally posted by tothetenthpower
reply to post by v3_exceed

 

As a Canadian Business owner with multiple locations, I have to say that I have been hiring like CRAZY over the past year.

I've increased my overall workforce by almost 500 in the last two years. My business owning friends are going through the same thing.

~Keeper

Well considering the hard and soft costs on 500 employees, I'm going to call BS on that one. sorry. I appreciate that the internet provides a certain amount of anonymity as well as bravado, but the recursive expenses that go along with 500 employees as well as the ancillary costs make what your saying extremely unlikely.

I am also a Canadian business owner with multiple locations in Alberta and in BC. I can only go on my personal experience of the last 15 years as a business owner and the last 44 years as a Canadian. So you can say what you like, but your credibility has just gone down the tubes.

..Ex

My company is international, I also operate in the US. I don't really care if you believe me or not.

I own call centers, do you know how easy it is to hire 500 people in a call center?

It's mostly because I've opened a virtual model where I hire people all over the country to work from home.

I'm dissapointed that you would complete disregard what I have said simply because you think it's far fetched. Regardless it is what it is.

It's more sad that people don't have the confidence that you can be that succesfull...

~Keeper

reply to post by tothetenthpower


While i agree with you that the economy is not hitting the fan as some claim. I also agree that immigration is key to our survival. I do however note that the government is giving loans to the wrong people sometimes. I have applied to open my own business and never once was granted a loan. I lived here all my life. I almost feel like moving to another country and become a citizen, then immigrate back just to get some assistance from my own government.

When i see immigrants coming into Quebec who don't have an education and are from south Africa or better yet France (several of my previous co workers are from both places and are in here because they speak french.) Yet they get grants and loans to open thier own business or get educated, then after the 2 years of tax free revenue for starting a business, or when they finish the education, the run back to thier country. They gain what i as a citizen would love to have. They get it given to them. We need to have immigrants, yes, but we also need limits on which ones we bring in and which ones we give our money to.