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| Subject: ying and yang of the current economy |
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I hear reports that the housing market has bottomed and is starting to slowly recover. First time buyers rather than the baby boomers who are still nursing their wounds from the recent stock market tanking.
The car industry is pretty public so I won´t comment.
University students are having a heck of a time finding summer jobs. There just isn´t any in my part of the country.
In the area that I manage, we lost 3 businesses over the long weekend. A small national clothing chain, an award winning restaurant, and a personelle agency. The last one came as a shock but it made sense after a while when you realize if you are not placing people in jobs you are not making any money.
The 3 lost businesses are the visible casualties. Others are slowly bleeding to death. You can´t walk away from leases so you keep the doors open even when you are not making any money just to offset as many losses as possible. This slump is now going on 9 months.
While things may be starting to improve, there are some businesses that will never economically recover.
Some glimmers of light - some well managed businesses are taking the opportunity to renovate, Home improvement businesses are doing a roaring business because of the tax credit.
We have the Olympics coming so there is stuff happening regardless of the economy - whew.
[21-05-2009,13:14]
[***.20.116.15]
Sharon |
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(in reply to: ying and yang of the current economy)
On the east coast, the economy is humming along at a slow but decent pace. Even in the best of times, it´s pretty bad out here economically but maybe because of that, the recession hasn´t hit here too badly. Housing is strong in my community at least, and no one seems to be panicking. Then again, the people are accustomed to a meager lifestyle and poverty is always rampant, so maybe the lesser times just get absorbed in the general culture.
[21-05-2009,15:49]
[**.252.115.196]
wannabecanadian |
(in reply to: ying and yang of the current economy)
I think we see a very similar situation down here with smaller business caualties. The difficulty is that employee health care costs are on the shoulders of the business, and that puts additional weight on an already tough bottom line. And smaller businesses never could afford to provide health care anyway, so now the employee is out of luck completely - no job, no health care.
Wannabe, is poverty that prevalent up there? If so, I wouldn´t have guessed as never having visited. In SSM it was a mixture, although in the central part of the city it was pretty evident.
[21-05-2009,18:08]
[***.133.11.77]
Richard |
(in reply to: ying and yang of the current economy)
This is my forecast;
The fuel is going to increase about 10 cents or more in the very near future as closer as we get to the summer the more expensive the fuel is going to get.
I was last Wednesday in Chicago (at the airport) my flight got cancelled so I had to spend the night there (man there was a very nasty storm) anywhoo I was on my way to Greenville South Carolina on holidays for a few days and on the way there I was watching the price of oil in different parts of the world and they all had a common denominator. (%)
I haven´t seen that in years and everything points to the fact that the oil companies won´t let us drive our RV´s in the summer with price of oil the way it is these days. It is going to go like a slingshot in the summer.STRAIGHT UP!
That might not be a "too" bad thing after all.
I am trying to be positive and the global economy is nothing but cyclical like everything else in life. I think we hit the bottom of this.
This is probably one fo the best times to purchase a house or a property for investment.
Kelowna hasn´t seen as many turist so far as last year and Fort McMurray is slow-er but still a busy little place.
Don´t wait for the storm to pass, learn how to dance in the rain.
Cheers,
Bill
[21-05-2009,20:03]
[***.75.247.138]
Bill |
(in reply to: ying and yang of the current economy)
Richard: Yes, it´s that bad in this corner. We do live in a fairly affluent area (relatively speaking) but still there is more poverty even in our community than I´ve ever seen. It´s a generational poverty--think Appalachia--and there is a lot of resentment toward the relatively few successful business people in the area. There´s a general sense that because not everyone can get ahead, no one should--you can imagine how that flies in the face of everything we (subconsciously) grew up with. This area may not be representative of all of Canada, but it´s not exactly an exception either, just as Appalachia and the Deep South are realities of the US, if not what´s shown on TV.
Wondering what your thoughts are right now, given your new situation.
[21-05-2009,22:26]
[**.252.115.196]
wannabecanadian |
(in reply to: ying and yang of the current economy)
Your reports and observations are a wake up call for many who may tend to idealize, myself included. I think what´s surprising is that the social systems put in place there are supposed to help equalize distribution of wealth and opportunity. But despite these efforts, it´s not going to always work if the economy just isn´t working and in place.
Nevertheless, I´d day Deep South poverty is going to be much worse, as any form of government assistance such as health and family services means hoping the local Baptist church has left over funds from last Sunday. The problem is that there is no "right" down here to the necessary basics of survival from society, as there is there. Wondering your thoughts on this.
Thanks Bill for the report on storms in Chicago, I don´t know what I´d do without that info :-). You´re right about now being an excellent time to buy property (as is exchanging CDN/US on swings).
[21-05-2009,23:52]
[**.192.28.31]
Richard |
(in reply to: ying and yang of the current economy)
it is very interesting to read your reports and thoughts on the situation in Canada right now. as a soon to land immigrant i´m trying to prepare myself psychologically for the challenges ahead, although i have not had a fun time in the last 3 years really...
i will be living in the Ottawa region, any feedback or thoughts on the situation there, considering i have a B.A in marketing and a A.A.S in hospitality? (with considerable experience in the restaurant business)
thanx in advance
[22-05-2009,09:13]
[**.226.74.207]
Anonymous |
(in reply to: ying and yang of the current economy)
I would suggest your restaurant experience is more valuable.
One of my board members is the GM of a large, high-end restaurant chain in BC and Alberta. Upper end of the industry is currently hurting. He calls it ´fine dying´. People are simply shying away from the $38 entre. Liquor tabs are way down too. No after work drinks and a glass of wine instead of a bottle.
Subtle changes that really mess with the bottom line.
[22-05-2009,14:42]
[***.20.116.15]
Sharon |
(in reply to: ying and yang of the current economy)
Richard: I guess I´m not sure what "health and family services" you have in mind. From what we can tell, living here and working in the public school system and for the government, we have yet to see any social services here that aren´t also available in the States. The few available are struggling and cut down to the bare minimum--whether the "service" be speech therapy or assistance for electricity payments, it´s meager, difficult to acquire, and far less than adequate. I am sure the same story is being told all across North America, in varying degrees according to province/state and community. But, as far as the idea of Canada having more services than the US, I have to join you in the ranks of the surprised that it is simply not the case.
[22-05-2009,18:41]
[**.252.115.196]
wannabecanadian |
(in reply to: ying and yang of the current economy)
With the exception of the far north, I would suggest Atlantic Canada is the most impoverished region in the country. Historically high unemployment from dying industries with nothing to replace them. The only positive note of late has been offshore oil.
A declining population, high unemployment means lousy tax revenue... which means meager services. Federal transfer payments only go so far. Tough to run a full compliment of services with a tax base of 750,000.
[22-05-2009,22:56]
[***.20.116.15]
Sharon |
(in reply to: ying and yang of the current economy)
THINGS ARE ALL OF A SUDDEN BAD HERE IN THE GTA
Yup I said it. Three weeks ago no problem then now the construction Industry and others are flat.
Roy
www.cvimmigration.com
[23-05-2009,09:33]
[**.15.48.61]
Roy |
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