"Why Canada’s economy is headed off the cliff" ( o)

"For Sweden" (rallybeetle) 04/04/2015 at 13:57 • Filed to: Canadalopnik, Canada, hellcat

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We can't let !!!error: Indecipherable SUB-paragraph formatting!!! !

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Do your part and buy more Hellcats!

aberson Bresident of the FullyAssed Committe > For Sweden 04/04/2015 at 14:00

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This is what will happen if Canada falls.

1. Canada falls off the top of America

2. America bends over to pick up its hat

3. north Korea sticks a nuke up America's butt

For Sweden > aberson Bresident of the FullyAssed Committe 04/04/2015 at 14:01

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._.

bob and john > For Sweden 04/04/2015 at 14:07

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its right. This place is taxed to hell and back . And the housing prices are absolutely stupid.

For Sweden > bob and john 04/04/2015 at 14:08

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I don't care what the taxes are; the Hellcats must flow.

bob and john > For Sweden 04/04/2015 at 14:10

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you will once they have to start charging more to cover high production costs because of taxes

Dwhite - Powered by Caffeine, Daft Punk, and Corgis > For Sweden 04/04/2015 at 14:10

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The most dangerous part of this are the people that are borrowing against their overvalued homes. That not even factoring that that they are then lending that money, which sounds like pure insanity to me. Job loss before the possible crash is also a bad sign.

After what happened in the US you'd think that some major changes would be made to a country that is having a similar issue. Obviously Canada doesnt have quite the same mortgage backed securities that the US banks had, hopefully, so the fallout should be slightly more contained. But many of the Western economies are still on thin ice following the last recession so this could spell danger far outside of Canada, especially with confidence less that high in the Euro zone.

Dwhite - Powered by Caffeine, Daft Punk, and Corgis > bob and john 04/04/2015 at 14:12

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In Canada?

At least in the corporate realm the taxes a way less than the are in the United States. Burger King bought fucking Tim Horton's just to move into Canada and save on corporate taxes.

bob and john > Dwhite - Powered by Caffeine, Daft Punk, and Corgis 04/04/2015 at 14:15

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oh yea. Have you SEEN our insurance rates? serious, yfor me, as a 20 year old, with 1 speeding ticket, car insurance just north of toronto, its like 6 or 7 grand a YEAR for a freaking subaru legacy.

Dwhite - Powered by Caffeine, Daft Punk, and Corgis > bob and john 04/04/2015 at 14:19

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Ah fuck the citizens and be lax on the businesses. That's nice.

bob and john > Dwhite - Powered by Caffeine, Daft Punk, and Corgis 04/04/2015 at 14:23

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yea. and our housing bubble hasnt popped yet either, if you look at the graph on the article.

Part of the reason I'm seriously considering california once I'm done university

ZacMS > Dwhite - Powered by Caffeine, Daft Punk, and Corgis 04/04/2015 at 14:23

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I think the key difference here is that most people can actually afford the houses they are in. I've not met anyone who worries about how they are going to pay their mortgage every month. The application process you have to go through to buy a house is unreal.

The only thing that could push the Canadian housing market off the deep end is a sharp interest rate increase. The bank of Canada knows this too, so cheap money will be around for as long as possible.

Viggen > For Sweden 04/04/2015 at 14:30

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If Canada falls we'll lose our northern line of defense against Polar Bears and commies. I don't have Hellcat Hype though, so *buys Z/28*

BaconSandwich is tasty. > For Sweden 04/04/2015 at 14:47

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As a Canadian, I might as well comment (especially one living in Alberta).

- Places like Vancouver, Toronto, and to a certain extent, Calgary have inflated housing prices. In the case of Vancouver, it seems to be inflated because of a lot of wealth from China. Toronto, I'm not sure, but I suspect something similar. Calgary, prices are high because there are a lot of high paying oil jobs, and people seem to be fine paying more. There are still places with dirt cheap prices, but they are places where there are few jobs: e.g.: Elliot Lake, Ontario, and a lot of the small farm towns. The same house in Calgary would be $400k+, in a small farm town might go for $230k.

- Dropping crude prices could really go two ways: there are some saying that production is still staying high in Alberta because now they need to make/refine more in order to bring in the same profit, resulting in keeping prices low for the average consumer. Other people seem to think that this isn't sustainable, and production will drop, resulting in a lot of lost jobs. It'll be interesting to see what pans out.

- The average consumer is stupid. People are buying way too much stuff they don't need and can't afford - including houses and new vehicles. I often wonder how people manage to afford such new vehicles. In short: they don't. They either lease something that they can barely afford or they spend a ton of money, but have to borrow to afford it. The last numbers I remember seeing a few years ago said that the average Canadian consumer is something like $27k in debt. I'm not sure if that number includes mortgages or not. Either way, people can't keep borrowing money forever. If people would learn a little self control, they'd be a lot better off in the end.

Really, if there is a bubble burst, I could certainly use it to my advantage. I currently have no debt, no mortgage, and have been saving up for a house. Should housing prices tank, I'd be set to swoop in and buy while the price is low. People seem to forget the first rule of business: Buy low, sell high. Not the other way around.

StoneCold > For Sweden 04/04/2015 at 14:52

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He that can control the Hellcat can control the universe

For Sweden > BaconSandwich is tasty. 04/04/2015 at 15:02

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How dare you feast on the tears of our future Hellcat-free existence ;_;

BaconSandwich is tasty. > For Sweden 04/04/2015 at 15:22

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They could always move Infierno Gato production to Mexico.

NoneOfYourBiz > bob and john 04/04/2015 at 18:33

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Naw, taxes are alright. Yes, we're taxed more but we don't need "Health Savings Accounts" because doctor's visits and hospital trips are covered by our universal healthcare plan.

Ya' gotta compare apples-to-apples.

Housing prices are doing what they did in the USA: low interest rates resulted in elevated housing prices.

We may (or may not) see a similar housing price crash as you guys did in the USA. There's a lot of speculation about up here but only time will tell.

bob and john > NoneOfYourBiz 04/04/2015 at 18:34

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(i'm not on team USA. it should be THOSE guys in the USA)

Stephen the Canuck > Viggen 04/04/2015 at 21:18

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The Camaro is still made in Ontario so it works.

SLR999 > BaconSandwich is tasty. 04/07/2015 at 23:32

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No, that supercharged 10 year old German sedan is *ours*, damnit.