As always, people are dazzled by government statistics which they comprehend at a superficial level (up/down = good/bad). So what economic policy does the federal government of Canada adopt? Why, the Action Plan of course (notice the photo op of three men digging ditches)! It’s a public works program focusing on infrastructure, job training, and throwing money at community and cultural centers. I have yet to see a better example of the broken window fallacy and maladjustment of the capital structure at work. Even the NDP (which a GED exam of mine stated that they are socialists who make socialism work because of emphasis on civil liberties), government of Manitoba is following suit. Their “stimulus” program is literally called, get this, “The Five Year Economic Plan”. What better way is there to take credit for this so-called recovery? The interventionist gloaters will soon find this answer out for themselves.
We even are experiencing, what seems to be, our own housing boom. On top of that, the Central Bank of Canada is apparently following suit with the monetary policy of the Federal Reserve.
I can see what Esuric means when he says that collapse of the welfare states is imminent. Such can only be the outcome of this egregious absurdity.
People here tell me that it’s ok because we don’t have “sub prime” mortgages. Instead, our banks give out huge loans to people to buy houses with a payment plan they can barely make. I wouldn’t call them prime mortgages. Maybe “less than prime” [:P]
The government here also insures banks against people defaulting on their mortgages. This is done through the CMHC. They insure about $600 billion worth of mortgages. Thats about equal to the federal government’s debt.
Toronto and especially Vancouver are seeing the biggest bubble inflating. It’s reaching a peak right about now, as the credit tightens, taxes come in, and stricter mortgage rules come into effect over there few months.
I’m just left wondering which banks to short and when. I’m thinking of doing it before the end of Q3.
Market data shows me what looks like accelerating upward trends. In addition, the recent Newsweek cover is foreshadowing an economic turning point. So it seems like the “end is near”, so to speak.
The federal government is also increasing pensions (Canadian version of social security), and weighing more of that tax burden on the employers.
Gas pumps are not "calibrated properly’, or so the radio reports, and have been providing customers with less than they paid for. Federal regulators will now be dispatched to search for gas stations to fine anywhere from 5k-50k.
Interested in yes, knowledgeable of current events in no. I’m sure much the same is true for many here. Certainly it is no reason not to post your thoughts or information.
Giant Joe, where do you live? I know someone who wholly owns a house in Vancouver. He said that it has gained a lot in value since buying it before the U.S. slump. I should like to warn him.
Au contraire, fascinated. Every case of failed (or not failed) government policy is another successful experiment, from which we should all be learning valuable data.
I want to punch John Maynard Keynes every time I see an “Economic Action Plan” ad on tv. Good blogs mentioned above for the real-estate issue. Hopefully by the time I’m in a position to own my own place the bubble will have popped and I can snipe one in foreclosure or something…
