Category Archives: Economy

Discussion of the drivers of economic growth, preditions, and analysis.

Stocks sell off as S&P cuts US outlook; Does a drop in foreign demand for Canadian bonds signal rising fixed interest rates?; Greek restructuring would be “catastrophic”

Stocks sell off as S&P cuts US outlook Big news of the day is the downgrade in the US outlook by rating giant Standard and Poor’s.  There can’t possibly be too many analysts who don’t see storm clouds on the … Continue reading

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How important is construction to economic growth and employment across Canada?: Part 2

In part 1 of this series we looked at construction employment as a percentage of total employment, and residential construction as a percent of GDP for all provinces from BC east to Ontario. If you haven’t read that post, make … Continue reading

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China’s property bubble at risk?; What is driving oil prices?; Greek bond yields explode as Germany states support for restructuring

Hat tip to the fine folks over at MacroBusiness Australia for these links… China property bubble at risk? Moody’s Investor Services downgraded China’s property sector to negative from stable citing deteriorating credit conditions over the next 12-18 months. This comes … Continue reading

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How important is construction to economic growth and employment across Canada?: Part 1

In a previous series we examined house prices relative to GDP growth across Canada.  That data seems to suggest that a significant level of overvaluation exists in many provinces from Ontario west (Quebec data was absent in that series).  Hopefully … Continue reading

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Bank of Canada holds the line; Royal LePage releases ‘research report’; “Canadian 30 year olds are screwed!”

Bank of Canada holds the line Those with variable rate mortgages can breathe a sigh of relief as the Bank of Canada held the line on interest rates today, as expected, keeping the overnight rate at a paltry 1%. Despite … Continue reading

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Measuring the potential economic impact of a housing bust

We do in fact live in unique times.  While we can disagree on exactly what the future holds for real estate in Canada and what implications (if any) this may have on the economy, we can not disagree on certain … Continue reading

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A regional look at Canada’s housing bubble: Part 2

Note to my readers:  Due to some technical problems, I was not able to make any posts this weekend.  My apologies. In part 1 of this mini series, we examined house prices from BC east to Ontario.  Today we will … Continue reading

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