This week, Saskatchewan's debt will reach it's lowest level since 1991, with the accumulated debt being reduced to $6.9 billion. Minister Atkinson announced $400 million will be used towards the debt after the province experiences another quarterly surplus.
But while the Saskatchewan Government pays debt, consumers are spending more and taking on more debt. According to Stats Can consumer spending on retail sales grew by 6.4% in 2006 over 2005 figures to a whopping retail spending average of $11,974 per person in Canada. It must be said too though, that disposable income grew by 6.2% in the same period.
The scary part of all of this is that average disposable income (after tax) per person in Canada was $27,000 in 2005. So approximately 44% of our after tax income goes to retail sales...
IMHO, these levels are becoming dangerously high. The United States are experiencing a housing and consumer crisis that was derived from economic expansion and a housing boom. The difference is that their governments continue to rack up debt while ours reduce the debt. If the same issues arise in Canada (housing/spending), will we expect our government to bail us out?
Monday, July 30, 2007
Friday, June 1, 2007
Saskatoon and Regina have Momentum
CIBC's Metro Monitor released yesterday spells positive news for Saskatchewan. Regina and Saskatoon are on fire in terms of economic growth.
The CIBC report ranks the pace of economic momentum in Canada's largest Census Metropolitan Areas (CMA's). The index is comprised of 9 key variables that measure growth.
Out of 24 cities, Saskatoon and Regina are numbers 6 and 7 respectively. Saskatoon trails Vancouver by a hair in the rankings. Both Regina and Saskatoon are ahead of major centres like Hamilton, Quebec City, Halifax, and Ottawa.
In the report CIBC Economist Benjamin Tal says that "Saskatoon continues to surprise on the upside, reflecting a nation-leading labour market activity as well as the strongest housing resale market among all cities. A relatively low rate of consumer and business bankruptcies well below the national average."
These are positive and encouraging results for Saskatchewan as it solidifies economic strength and sound management in our province, both by provincial government and business. Low consumer bankruptcies is another encouraging sign because consumer spending is also up.
Consumer spending is up, average weekly earnings are up, and consumer bankruptcies are below the national average. Social mood keeps climbing...
The CIBC report ranks the pace of economic momentum in Canada's largest Census Metropolitan Areas (CMA's). The index is comprised of 9 key variables that measure growth.
Out of 24 cities, Saskatoon and Regina are numbers 6 and 7 respectively. Saskatoon trails Vancouver by a hair in the rankings. Both Regina and Saskatoon are ahead of major centres like Hamilton, Quebec City, Halifax, and Ottawa.
In the report CIBC Economist Benjamin Tal says that "Saskatoon continues to surprise on the upside, reflecting a nation-leading labour market activity as well as the strongest housing resale market among all cities. A relatively low rate of consumer and business bankruptcies well below the national average."
These are positive and encouraging results for Saskatchewan as it solidifies economic strength and sound management in our province, both by provincial government and business. Low consumer bankruptcies is another encouraging sign because consumer spending is also up.
Consumer spending is up, average weekly earnings are up, and consumer bankruptcies are below the national average. Social mood keeps climbing...
Wednesday, May 30, 2007
Moving Back to Saskatchewan
CBC is reporting that more nurses are moving back to Saskatchewan as a result of the Health Workforce Employee Retention Program. The Saskatchewan NDP's Minister of Health, Len Taylor started the program at the end of January of this year. 6 million dollars were set aside for retention and recruitment to lure nurses to Saskatchewan.
The NDP is showing great leadership with this initiative, by listening to the needs of health care providers and other professionals to develop a good program.
The social mood in Saskatchewan seems to be on the rise for the most part. Incomes are up, taxes are down, people are moving back, homeowners are enjoying gains, consumer spending is up, and corporate profits are up.
The NDP is showing great leadership with this initiative, by listening to the needs of health care providers and other professionals to develop a good program.
The social mood in Saskatchewan seems to be on the rise for the most part. Incomes are up, taxes are down, people are moving back, homeowners are enjoying gains, consumer spending is up, and corporate profits are up.
China Markets Pullback- More on the Way?
Last night I was watching CNBC very late in the evening, and the big story was China. The government in China decided to up the tax on securities transactions, from 0.1% to 0.3%. Not a huge jump when you think about it but investors began selling.
The Chinese index dropped 6.8 percent in one day, the largest drop in 3 months. All markets across Asia were shaken as well, with the Japanese and Hong Kong markets dropping as well. One investor, whom I won't name but does have credibility and manages millions says there will be a significant pullback after the Olympics.
But why would the market be so high, and why would it crash. Simple. Stories like this. This guy is featured in the Bloomberg article.
Li Shi, a 50-year-old retired factory worker, predicts the market will be in the doldrums for the next couple of months. He bought shares of property developer Beijing Centergate Technologies (Holding) Co. in April, resulting in a paper profit of 10,000 yuan ($1,308) before today's fall. The stock plunged by the 10 percent daily limit on the Shenzhen exchange today.
``I don't dare to sell because I'll have to incur a real loss if I do,'' Li said today in an interview at Tiantong Securities Co.'s Chaoyangmen branch in central Beijing. ``I've invested my entire life savings in the stock market.''
Scary. Following the herd is always problematic for retail investors. They're the ones who get burned because the big guys usually get out first.
The Chinese index dropped 6.8 percent in one day, the largest drop in 3 months. All markets across Asia were shaken as well, with the Japanese and Hong Kong markets dropping as well. One investor, whom I won't name but does have credibility and manages millions says there will be a significant pullback after the Olympics.
But why would the market be so high, and why would it crash. Simple. Stories like this. This guy is featured in the Bloomberg article.
Li Shi, a 50-year-old retired factory worker, predicts the market will be in the doldrums for the next couple of months. He bought shares of property developer Beijing Centergate Technologies (Holding) Co. in April, resulting in a paper profit of 10,000 yuan ($1,308) before today's fall. The stock plunged by the 10 percent daily limit on the Shenzhen exchange today.
``I don't dare to sell because I'll have to incur a real loss if I do,'' Li said today in an interview at Tiantong Securities Co.'s Chaoyangmen branch in central Beijing. ``I've invested my entire life savings in the stock market.''
Scary. Following the herd is always problematic for retail investors. They're the ones who get burned because the big guys usually get out first.
Thursday, May 24, 2007
Build the Kids a Park
Regina desperately needs a new skatepark. Skateboarding is a sport just like hockey or baseball, and they are athletes like any other.
Noel Wendt, president of SK8 Regina knows this better than anyone in the city of Regina so it's good so see progressives like Councillor Mike O'Donnell supporting the construction of a skatepark.
Regina City council is concerned about the project in that it will cost more than originally expected. So what's their offer for solutions?
1. reduce size by 75%
2. re-tender in 2008
3. deferring landscaping to 2008
-- all bad options
The park should be the original size and get built as soon as possible. It would be nice to see private business step up to the plate on this one and offer alternatives like more cash. In turn the private business gets sponsorship of the park...you know why this works?
Skateboarders are some of the most label conscious people around. It's a win-win.
Noel Wendt, president of SK8 Regina knows this better than anyone in the city of Regina so it's good so see progressives like Councillor Mike O'Donnell supporting the construction of a skatepark.
Regina City council is concerned about the project in that it will cost more than originally expected. So what's their offer for solutions?
1. reduce size by 75%
2. re-tender in 2008
3. deferring landscaping to 2008
-- all bad options
The park should be the original size and get built as soon as possible. It would be nice to see private business step up to the plate on this one and offer alternatives like more cash. In turn the private business gets sponsorship of the park...you know why this works?
Skateboarders are some of the most label conscious people around. It's a win-win.
Friday, May 11, 2007
Interest Rates Set to Rise
According to the Royal Bank's Financial Markets Monthly, May 2007 edition, the bank of Canada's overnight lending rate is expected to go up in December of this year. The Canadian economy grew by 0.4% or double the expected rate in February 2007. The economists at Royal Bank attribute increased wages, a tight labour market, and a larger-than-expected growing core inflation numbers to a growing interest rate.
Given that Saskatchewan is experiencing ALL TIME HIGH year-over-year wage growth at 7.6%, one would expect prices on most goods to rise shortly thereafter.
As well, year-over-year retail sales are up by 8.7%, meaning Saskatchewanians are spending more of their money.
I predict the not much social movement or concern with such a small rise in rates. Possibly a headline on the paper or evening news about "rising interest rates," but not much beyond that. Someone may talk about homes or cars becoming more expensive over time, but then the subject will be dropped.
Interest rates should not be a barometer of Canadian fiscal health, but society likes to view it that way. To understand what I mean, check out the intelligent comment by anonymous on my Saskatchewan Real Estate entry. Thanks for that by the way, whoever you are.
Given that Saskatchewan is experiencing ALL TIME HIGH year-over-year wage growth at 7.6%, one would expect prices on most goods to rise shortly thereafter.
As well, year-over-year retail sales are up by 8.7%, meaning Saskatchewanians are spending more of their money.
I predict the not much social movement or concern with such a small rise in rates. Possibly a headline on the paper or evening news about "rising interest rates," but not much beyond that. Someone may talk about homes or cars becoming more expensive over time, but then the subject will be dropped.
Interest rates should not be a barometer of Canadian fiscal health, but society likes to view it that way. To understand what I mean, check out the intelligent comment by anonymous on my Saskatchewan Real Estate entry. Thanks for that by the way, whoever you are.
High Debt, High Optimism
There seems to be something going on in society and with consumers that may lead to future problems. Debt. Most of us have it, and most of us rely on it to get us through. In a society where consumerism runs rampant, it has become second nature for us to "have it all." Why? Because it's possible to have it all.
There is a credit card for everything. There was a time when MasterCard and Visa were the main forms of credit. I remember as a kid seeing my parents use only those two cards. A sticker on the cash register would usually tell you what card you could use. Today, there are Canadian Tire cards, Sears, Pier 1, Rona, the Bay, and the list goes on. Private citizens take on debt.
The situation is much the same in the United States, consumers carry way too much debt. The US government is also carrying record debt. But the same is not true for Canadian governments. The Saskatchewan government has been paying down debt for years, Alberta is debt free and Canada continues to be one of the only G8 countries with budget surpluses.
So why do we as consumers take on debt and why do lenders provide us with credit? Simple. We are optimistic that we will be able to continue to make payments and creditors are optimistic they will be paid back.
How long can this continue? Or will people suddenly say one day, that's enough consuming for now, it's time to save. I guess you need high interest rates to be encouraged to save. I see a problem of the future, years away, when the prisoners of debt tell their governments to bail them out. Back to Bestbuy.com to find me a big screen.
There is a credit card for everything. There was a time when MasterCard and Visa were the main forms of credit. I remember as a kid seeing my parents use only those two cards. A sticker on the cash register would usually tell you what card you could use. Today, there are Canadian Tire cards, Sears, Pier 1, Rona, the Bay, and the list goes on. Private citizens take on debt.
The situation is much the same in the United States, consumers carry way too much debt. The US government is also carrying record debt. But the same is not true for Canadian governments. The Saskatchewan government has been paying down debt for years, Alberta is debt free and Canada continues to be one of the only G8 countries with budget surpluses.
So why do we as consumers take on debt and why do lenders provide us with credit? Simple. We are optimistic that we will be able to continue to make payments and creditors are optimistic they will be paid back.
How long can this continue? Or will people suddenly say one day, that's enough consuming for now, it's time to save. I guess you need high interest rates to be encouraged to save. I see a problem of the future, years away, when the prisoners of debt tell their governments to bail them out. Back to Bestbuy.com to find me a big screen.
Thursday, May 3, 2007
Saskatchewan Real Estate Market
As the real estate market in the United States deteriorates as a result of the sub-prime saga, we in Western Canada are experiencing rising prices for homes as demand grows faster than supply. Homes in the Saskatoon and Regina are now averaging selling prices of 150K and 200K respectively.
A combination of tight supply, low interest rates, and baby boomers children leaving the nest has helped push home prices higher in both regions and all over Saskatchewan for that matter. Incomes have increased in the last three years or so, especially in industries like uranium, oil, potash, and other goods.
I don't have the raw data, but frequent visits to MLS and Skhomes would suggest that prices began to rise rapidly early in the new year.
As the number of people who discuss real estate price increases grows, so to do the number of those talking about the bust. It is my belief that people in Saskatchewan tend to be more cautious and therefore mentally prepare themselves for downturns. However, judging by the coffee talk, this trend will continue to move in the same direction.
When things turn, and they will, it will likely coincide with baby-boomers making the transition to senior complexes or a rise in interest rates.
One scary stat I found was the amount of mortgage credit, more specifically the rise in residential credit outstanding. Mortgage credit grew by 215 billion from 1991 to 2001. But, from 2001 to 2006, credit expanded by a further $178 billion. By 2006, there was $624 billion in mortgage credit.
Not only do you get rich in housing booms, so do the banks.
A combination of tight supply, low interest rates, and baby boomers children leaving the nest has helped push home prices higher in both regions and all over Saskatchewan for that matter. Incomes have increased in the last three years or so, especially in industries like uranium, oil, potash, and other goods.
I don't have the raw data, but frequent visits to MLS and Skhomes would suggest that prices began to rise rapidly early in the new year.
As the number of people who discuss real estate price increases grows, so to do the number of those talking about the bust. It is my belief that people in Saskatchewan tend to be more cautious and therefore mentally prepare themselves for downturns. However, judging by the coffee talk, this trend will continue to move in the same direction.
When things turn, and they will, it will likely coincide with baby-boomers making the transition to senior complexes or a rise in interest rates.
One scary stat I found was the amount of mortgage credit, more specifically the rise in residential credit outstanding. Mortgage credit grew by 215 billion from 1991 to 2001. But, from 2001 to 2006, credit expanded by a further $178 billion. By 2006, there was $624 billion in mortgage credit.
Not only do you get rich in housing booms, so do the banks.
Thursday, April 26, 2007
New Earth-Like Planet Discovered
Astronomers from the Swiss Observatory in Geneva, Switzerland may have discovered the first earth like planet, possibly capable of supporting life.
"We have estimated that the mean temperature of this super-Earth lies between 0 and 40 degrees Celsius, and water would thus be liquid," said Stephen Udry, author of the report.
Space Daily
Scientists and astrologers believe the planet to be 5 times the mass of earth, 50 percent bigger, and orbit its sun every 13 (earth) days.
Is this the first step to find extra-terrestrial life? Will society choose to devote its resources to advancing space exploration and possibly making contact?
Our own planet has so many issues, deciding how to prioritize this will be interesting.
I would also venture to guess that from this, new religions or cults may arise, and some may try to capitalize on this. No matter what happens, I think life has become a little more interesting.
"We have estimated that the mean temperature of this super-Earth lies between 0 and 40 degrees Celsius, and water would thus be liquid," said Stephen Udry, author of the report.
Space Daily
Scientists and astrologers believe the planet to be 5 times the mass of earth, 50 percent bigger, and orbit its sun every 13 (earth) days.
Is this the first step to find extra-terrestrial life? Will society choose to devote its resources to advancing space exploration and possibly making contact?
Our own planet has so many issues, deciding how to prioritize this will be interesting.
I would also venture to guess that from this, new religions or cults may arise, and some may try to capitalize on this. No matter what happens, I think life has become a little more interesting.
Wednesday, April 25, 2007
Record Highs, Crash Cries
The Dow Jones hit 13,036 yesterday, the highest level ever. Although it did not close above 13,000 this is still significant news, but yet you won't hear much on it.
Just yesterday on this side of the border we hear the grunts of the bears. Alberta is projecting lower oil revenues and GDP growth at only 4.1 percent for 2007, 2.9 percent below last years figures.
Reduced drilling activity, smaller capital spending budgets by oil companies, and less consumer spending is to blame. **The Star Phoenix April 24th edition article, "Alberta Economy to Weaken..."
Since when was 4.1 percent GDP growth a cause for concern? Saskatchewan has been growing at roughly 3.5 percent over the last several years, yet some will say, "we can be more."
From a social point of view, it is scary to think that 13,000 on the dow, record highs on the TSX, and red-hot economies are still not good enough. Where should we be?
Just yesterday on this side of the border we hear the grunts of the bears. Alberta is projecting lower oil revenues and GDP growth at only 4.1 percent for 2007, 2.9 percent below last years figures.
Reduced drilling activity, smaller capital spending budgets by oil companies, and less consumer spending is to blame. **The Star Phoenix April 24th edition article, "Alberta Economy to Weaken..."
Since when was 4.1 percent GDP growth a cause for concern? Saskatchewan has been growing at roughly 3.5 percent over the last several years, yet some will say, "we can be more."
From a social point of view, it is scary to think that 13,000 on the dow, record highs on the TSX, and red-hot economies are still not good enough. Where should we be?
Tuesday, April 24, 2007
Just One More Voice
After much thought, I've decided to join the world of blogs. Like so many others, I have something to say. I guess you could say blogs have given 'us' the people a voice. Our ego is allowed to free flow across the pages of the internet, forever in history.
I am here to interpret, decipher, and comment on news or events that affect society. Society reacts, and shapes itself and the events occuring everyday around us. Politics, business, sports, pop culture, and trends are a product of us.
See your way through the madness.
I am here to interpret, decipher, and comment on news or events that affect society. Society reacts, and shapes itself and the events occuring everyday around us. Politics, business, sports, pop culture, and trends are a product of us.
See your way through the madness.
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