Canada Housing/Debt: Trust me, I'm a landlord.

The Something Awful Forums > Discussion > Debate & Discussion > Canada Housing/Debt: Trust me, I'm a landlord.

namaste friends: Sep 18, 2004; by Smythe

http://www.cbc.ca/radio/thecurrent/...using-1.2962268

quote:

In the heart of downtown Toronto, 290-square-foot units are on sale now for around $250,000 dollars. Developers say going small gives young people an affordable way into the market, but micro-condos are also raising some big concerns.

lol 250k for 300sqft. That's $833/sqft, retards

# ? Feb 20, 2015 02:07

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# ? May 26, 2024 13:19

etalian: Mar 20, 2006

Cultural Imperial posted:

http://www.cbc.ca/radio/thecurrent/...using-1.2962268

lol 250k for 300sqft. That's $833/sqft, retards

At least it's sustainable :smugbird:

https://www.youtube.com/watch?v=vuLJLJZ69zI

# ? Feb 20, 2015 02:09

Juul-Whip: Mar 10, 2008

Rime posted:

You know it's been Schedule 1 for years and they largely refuse to prescribe it now due to the hassle involved, right?

You just haven't been asking the right doctor.

# ? Feb 20, 2015 03:14

namaste friends: Sep 18, 2004; by Smythe

http://business.financialpost.com/2015/02/19/mortgage-firms-tighten-lending-standards-in-calgary-as-housing-boom-turns-sour/

quote:

Mortgage firms tighten lending standards in Calgary as housing boom turns sour

The oil that fuelled Calgary�s housing boom has created the conditions for a bust.

Genworth MI Canada Inc., the country�s largest non-government mortgage insurer, said last week it�s preparing for more losses this year and into 2016. Home Capital Group Inc., the largest non-bank mortgage lender, is tightening standards in the oil-rich province of Alberta to reduce the risk to the company of falling housing prices.

�The warning signs are out,� said Gerald Soloway, chief executive officer of Home Capital. �It�s only prudent for everybody who participates in that market to heighten their alertness.�

More than five years of rising oil prices spurred thriving sales of million-dollar trophy homes in Calgary and a doubling of home prices in the last decade. As the oil crash forces energy firms in Alberta to cancel projects and fire workers, housing sales fell the most on record in December and January, with price declines expected to follow. Home Capital has begun to factor in a 10% drop in Alberta home values when making loans, Soloway said.

Alberta �has gone from the top spot in the economic growth rankings to second from last on the provincial leader board,� said Derek Burleton, deputy chief economist at Toronto-Dominion Bank, in a note to clients. �A significant softening in job markets will set the stage for a second major housing correction in Calgary and Edmonton� not seen since 2008.

quote:

The more than $100 billion invested in the province�s oilsands in the decade to 2012 has transformed Alberta�s biggest city, Calgary. Its population jumped 16% to 1.2 million in the five years to January while the growth in energy, manufacturing and retail jobs kept unemployment below the national average. The provincial revenues from oil allowed Alberta to build a billion-dollar hospital and expand its airport.

With the price of oil plummeting more than 50% since June, the Alberta economy is grinding to a halt. CIBC said this month that the province may enter a temporary recession. Citigroup Inc. forecasts that West Texas Intermediate crude, which currently trades at around $50 US a barrel, could fall to the $20 range amid a global supply glut.

Suncor Energy Inc., Canada�s largest oil company, said in January it would cut 1,000 jobs and lower its 2015 capital budget, which could limit new hires. Royal Dutch Shell Plc is firing as many as 300 employees from a project in northern Alberta, and Civeo Corp., a Houston-based owner of energy-worker camps, said it had eliminated 30% of its Canadian staff.

Home Capital, which has 5.1% of its $22.6 billion of mortgages in Alberta, is curtailing lending in the province. The Toronto-based company will continue to avoid some areas completely, including Fort McMurray, the heart of the province�s oil industry, CEO Soloway said. The lender will also examine applications from energy industry workers more critically in the wake of the region�s job cuts, he said.

Oakville, Ont.-based Genworth MI said in its fourth- quarter conference call that it�s planning to cut the size of its Alberta portfolio. The insurer said it�s testing more rigorously borrowers� ability to repay a loan and examining more closely the collateral backing that mortgage.

The insurer expects its costs to cover bad loans to rise, paying 20 cents to 30 cents in claims for each premium dollar earned in 2015, according to the conference call. Last year the company paid 20 cents.

That expense may increase to as high as 34 cents by 2016, according to Bank of Montreal analyst Paul Holden, who adjusted his earnings forecast for the company on higher delinquency and lower sales in Alberta this year and next. Genworth has 24% of its $356 billion of insurance in Alberta, Saskatchewan and Newfoundland, the three regions most dependent on oil.

�We foresee storm clouds on the horizon in the more oily parts of the country, namely Alberta, which we expect will put more significant pressure on the loss ratio,� Holden wrote in a Feb. 11 note. �The housing market fundamentals in Calgary do not look good.�

Genworth MI shares have plunged about 24 per cent since Nov. 6 when its parent company, Genworth Financial Inc., posted a record quarterly loss and its credit was downgraded.

Genworth MI divides Alberta into about 20 economic regions and is monitoring each for sensitivity to oil at $35 a barrel, chief financial officer Craig Sweeney said on the Feb. 11 conference call. The insurer said it�s expecting a three per cent to five per cent drop in house prices in Alberta starting in the middle of this year.

�The likelihood of a regional economic slowdown has increased,� Sweeney said.

quote:

Vince Degiuseppe, a real estate agent in Calgary who sells about 20 homes a year, said demand is falling. Degiuseppe listed a home for a couple for $500,000 in November amid oil�s slide, and they�ve cut the price several times to $480,000. At an open house this month, the few offers were all below the listing price.

The number of homes changing hands in the province plunged 44% in December and January, the most for the two-month period since 1988 when the Canadian Real Estate Association began tracking the data. Royal Bank of Canada, the nation�s second-largest lender, lowered its forecast this month and now sees sales of existing homes in the province sliding 16 per cent this year. Toronto-Dominion Bank, the largest bank, said sales in the province would drop 31% this year and forecasts a 5.1% average price cut.

As the housing market declines, demand is rising for rental properties, according to Mainstreet Equity Corp. Alberta was the fastest growing province for rental revenue in the quarter ended Dec. 31, according to the Calgary-based property manager.

Average vacancy on the company�s units in Alberta declined to 5.8% in the quarter from 7.6% in the year-ago period, and rent jumped 10% to $1,022 per month. Mainstreet has about 60% of its properties in Calgary and Edmonton, according to financial documents.

Residents of Calgary recall living through this boom and bust cycle during past swings in oil prices.
�We�ve seen this show before,� said Ted Zaharko, a real estate broker who�s been in business for more than four decades. �Albertans are a hearty bunch and we�ll get through this again.�

He said this downturn won�t be as severe as the one in the 1980s, when the oil services industry suffered from both a global recession and oil price decline. At the time, energy companies folded and unemployment jumped to 11 per cent, while mortgage rates of more than 15% made homes unaffordable.

Today, those rates are at record lows after the Bank of Canada cut its lending rate to 0.75% this year, with the country�s six largest lenders also reducing borrowing costs.

�It�s a little bit like driving through a snowstorm,� said Soloway of Home Capital. �You don�t expect it to be permanent, but it�s going to be around for a while and you just slow down and drive carefully.�

Reposting this from FP because graphs.

# ? Feb 20, 2015 05:22

Heavy neutrino: Sep 16, 2007; You made a fine post for yourself. ...For a casualry, I suppose.

Haha I love how every province that has some shred of a manufacturing sector left has a positive forecast, presumably due to cheaper exports. Except Newfies for some reason (???)

# ? Feb 20, 2015 05:27

etalian: Mar 20, 2006

Cultural Imperial posted:

http://business.financialpost.com/2015/02/19/mortgage-firms-tighten-lending-standards-in-calgary-as-housing-boom-turns-sour/

Reposting this from FP because graphs.

lmao I love how for Alberta they are trying to sell the soft landing narrative and harping on how it won't be real bad like the 1980s meltdown.

I guess they don't see the connection between the oil bubble starting the financial sector crash.

# ? Feb 20, 2015 05:30

PC LOAD LETTER: May 23, 2005; WTF?!

Whiskey Sours posted:

How do you make money flipping houses?

You normally can't. You have to be in a bubble or boom or get drat lucky on the home price to re-sell it for enough to make the risk worthwhile.

If you want to invest in real estate and have a decent amount of cash, and you have to have a decent amount of cash to flip homes anyways, you do REITs. Far safer and far more sane.

# ? Feb 20, 2015 06:17

Albino Squirrel: Apr 25, 2003; Miosis more like meiosis

Heavy neutrino posted:

Haha I love how every province that has some shred of a manufacturing sector left has a positive forecast, presumably due to cheaper exports. Except Newfies for some reason (???)

Newfoundland also produces oil. Although the lower dollar does help manufacturing exports, it is difficult to export non-existent fish.

# ? Feb 20, 2015 07:20

OhYeah: Jan 20, 2007; 1. Currently the most prevalent form of decision-making in the western world

2. While you are correct in saying that the society owns

3. You have not for a second demonstrated here why

4. I love the way that you equate "state" with "bureaucracy". Is that how you really feel about the state

quote:

�The likelihood of a regional economic slowdown has increased,� Sweeney said.

Pay close attention to the wording. Even when talking about negative subjects you change the syntax in a way that you can inject a positive word in there ("increase").

# ? Feb 20, 2015 12:39

Saltin: Aug 20, 2003; Don't touch

Albino Squirrel posted:

Newfoundland also produces oil. Although the lower dollar does help manufacturing exports, it is difficult to export non-existent fish.

I have convinced myself Newfoundland is being dragged down by Alberta because so many newfies worked up in the Fort and now not only has the money tap been turned off back home, but they have to actually go home and there hasn't been an economy there since fishing went upside-down.

# ? Feb 20, 2015 14:29

Professor Shark: May 22, 2012

My girlfriend's dad is preparing to be fired again after having only been back out West for 3 months.

With the tickets he'd already purchased for his turn around, as well as the tickets he had to buy in order to get there in the 2 days they gave him, PLUS the hotel money he's had to pay during his days off, he'll have made very, very little money and not enough hours for a new EI claim

Working Class Maritimer :canada:

# ? Feb 20, 2015 14:48

namaste friends: Sep 18, 2004; by Smythe

http://www.theglobeandmail.com/repo...rticle23112439/

quote:

The Canadian dollar moved lower Friday morning as retail sales data for December widely missed expectations.

The loonie was down 0.25 of a cent to 79.76 cents US after Statistics Canada reported that sales fell two per cent to $42.1-billion, the largest decline since April, 2010. Economists had generally expected a dip of 0.4 per cent.

Declines were led by a 7.4 per cent slide in sales at gasoline changes, reflecting sharply lower fuel prices.

Performance was also impacted by a one per cent drop in sales at new car dealers.

The biggest increase came from food and beverage stores, up one per cent.

Investors also focused on a meeting of euro zone finance ministers that will discuss Greece�s request for a six month extension of bailout money.

The meeting is the third among finance ministers from the 19-nation euro zone in just over a week as Greece�s European bailout program is due to expire on Feb. 28. In the short term, if no solution is found, Greece could be left to handle its debts alone from next month.

It�s hard to know what the outcome of the meeting will be since the proposal from Greece�s new left-wing government did not promise to continue all of the budget cuts and reforms that the euro zone � particularly Germany � has been adamant it should stick to.

Oil prices advanced after falling Thursday in the wake of the latest data showing sharp rises in American inventory levels. The April contract in New York was up 24 cents to US$52.07.

Metals were mixed with March copper off four cents to US$2.58 a pound while April gold gained $4.70 to US$1,212.30 an ounce.

To sum this up:

https://twitter.com/MikePMoffatt/status/568766691905138689

I wonder if people are trying to cut down their discretionary spending or they just don't have as much access to cheap credit.

# ? Feb 20, 2015 16:53

Sassafras: Dec 24, 2004; by Athanatos

Sassafras fucked around with this message at 17:03 on Feb 23, 2015

# ? Feb 20, 2015 17:09

namaste friends: Sep 18, 2004; by Smythe

http://www.bloomberg.com/news/artic...00aedddebf73161

quote:

Canadian retail sales fell at the fastest pace in more than four years in December as consumers scaled back holiday gift purchases, a sign the effects of lower crude oil prices are spreading through the world�s 11th largest economy.

Sales fell 2.0 percent to C$42.1 billion ($33.6 billion), the most since April 2010, Statistics Canada said Friday in Ottawa. Economists surveyed by Bloomberg News forecast a 0.4 percent decrease, based on the median of 18 projections.

�It�s tricky to find any upside to this report,� said David Tulk, chief Canada macro strategist at Toronto-Dominion Bank�s TD Securities unit, whose prediction of a 0.8 percent decline was the most accurate among forecasters. �Holiday spending plans might have been curtailed out of a sense of prudence and uncertainty.�

Receipts fell by 5.6 percent for clothing and accessories stores and 9.2 percent at electronics and appliance retailers. Gasoline sales fell 7.4 percent in December as prices fell, the sixth straight decline and the largest since December 2008. Economists had pointed to cheaper gas a potential relief to consumers who are grappling with record debt loads.
Broad Declines

�Most store types typically associated with holiday shopping registered weaker sales in December, more than offsetting November gains,� Statistics Canada said.

Canada�s dollar fell after the report, which may suggest consumer confidence is deteriorating after crude oil prices plunged by about half through the second half of 2014. The Bank of Canada cut interest rates last month in a surprise move that policy makers called insurance against the oil shock, which will probably hamper business investment and weaken consumer incomes and home sales.

Target Corp. said last month it would liquidate its Canada operations, meaning as many as 17,600 job losses. Suncor Energy Inc. also unveiled plans to fire 1,000 employees as the Calgary-based firm cuts capital spending.

Sales fell in nine of 11 categories making up 71 percent of retail trade in December, the agency said.

Friday�s retail sales report also suggested falling oil prices are hurting consumer spending in Alberta, the heart of Canada�s energy industry. Sales fell 2.5 percent in the western province, the third straight decline, Statistics Canada said.

Seasonal Patterns

Motor vehicle and parts sales fell 1 percent in December. Excluding that category, retail sales fell by 2.3 percent. Excluding motor vehicles, parts and gasoline, retailers reported a 1.3 percent drop in receipts.

Canada�s dollar reversed gains after the report, weakening by 0.3 percent to C$1.2529 per U.S. dollar at 9:49 a.m. Toronto time. Federal government bonds rose. The yield on benchmark five-year debt fell 11 basis points to 0.74 percent.

Some of the the December decline may reflect a shift in seasonal spending patterns as more Canadian stores offer sales around the November U.S. Thanksgiving holiday, said Benjamin Reitzes, a senior economist at BMO Capital Markets in Toronto.

�There�s no denying the breadth and depth of the weakness in the December retail figures, but they come with some big caveats,� including the drop in gasoline prices, Reitzes wrote in a research note.

I know I'm doing my part. I spent zero dollars in Canada last Christmas. gently caress you Canadian retailers.

# ? Feb 20, 2015 17:14

tsa: Feb 3, 2014

sbaldrick posted:

You can make money outside of a bubble flipping houses if you can let your investment sit for a while and don't have to take the first offer that comes along because you can't afford the mortgage.

Flipping houses are by definition not something you sit on (that's where the "flipping" comes from), what you are talking about is an investment property which is also a loving terrible idea because predicting which areas are going to bubble up is throwing darts. No different than buying a single stock really except at least stocks have liquidity. Honestly investment properties are probably a much worse idea than trying to flip if you had to choose.***

But yea, selling very quickly is the name of the game, you definitely don't want to sit on something that is costing you money every month and only appreciates historically at .1% per year. Even if you paid in cash there's insurance and other costs including opportunity costs. Actually when rates are this low paying in cash is the wrong move because now you are tying up hundreds of thousands that you could have plopped into an index fund or something that actually makes money.

Whiskey Sours posted:

How do you make money flipping houses?

If you buy a house for $100k and spend $20k on renovations, you should only get $120k for it because the buyer could have done the same thing.

If you do the renovations yourself and it only costs you $15k, you probably could have made the $5k profit in the same time working as a carpenter.

If you manage to sell the house for $140k because housing prices are rising, you probably could have sold it for $120k without doing any renovations.

I understand that people do make money flipping houses, but I don't understand how it can be lucrative in the absence of a housing bubble unless done on a large scale.

First of all people making money off things a person could do themselves is nothing new. People go out to eat at restaurants that have worse food and triple the cost they could have made it for. You are paying money for the convenience. The vast majority of people do not have the time or money for major renovations, they want to move into a place and live. There's of course many ways people make money off of it but *** targeting places that are undervalued because they need lots of work or are a huge pain in the rear end is one of them.

Also people aren't robots, they don't go beep boop 100+25 = 125. Basically what you are missing is that this is like everything else in the world, people pay more for a final product than the sum of its parts.

# ? Feb 20, 2015 17:39

Baronjutter: Dec 31, 2007; "Tiny Trains"

Yeah bubbles and poo poo isn't the only way to get ahead flipping. One of my old neighbours was a life long flipper, it was his career. He'd buy really lovely houses and fix them up and sell them at a good profit, he specialized in heritage houses no one wanted to touch. He put in a lot of hard work him self, lost his shirt on a couple of them, but overall has done quite well for him self. He's been doing it consistently since about the 80's.

# ? Feb 20, 2015 18:37

Wasting: Apr 25, 2013; The next to go

Baronjutter posted:

Yeah bubbles and poo poo isn't the only way to get ahead flipping. One of my old neighbours was a life long flipper, it was his career. He'd buy really lovely houses and fix them up and sell them at a good profit, he specialized in heritage houses no one wanted to touch. He put in a lot of hard work him self, lost his shirt on a couple of them, but overall has done quite well for him self. He's been doing it consistently since about the 80's.

I know a couple guys like this. They do it in the good times and the bad and actually take pride in their work.

The problem with a bubble is the fly-by-night flippers it attracts: they aren't necessarily concerned with reputation or quality.

# ? Feb 20, 2015 19:20

Rick Rickshaw: Feb 21, 2007; I am not disappointed I lost the PGA Championship. Nope, I am not.

Baronjutter posted:

Yeah bubbles and poo poo isn't the only way to get ahead flipping. One of my old neighbours was a life long flipper, it was his career. He'd buy really lovely houses and fix them up and sell them at a good profit, he specialized in heritage houses no one wanted to touch. He put in a lot of hard work him self, lost his shirt on a couple of them, but overall has done quite well for him self. He's been doing it consistently since about the 80's.

Well, real estate has gone way up since the 80s, though.

I think the issue at hand is whether someone could actually be successful if they were to start now, for example, in our inflated market. If poo poo crashes while you're holding a couple of properties, obviously that would be bad. But even if we don't experience a crash - just a long period of next to no price increase - I can't imagine flipping houses would be overly lucrative.

I still commend anyone who's able to do it, especially since they probably enjoy doing renovations. I just don't particularly enjoy renovations or buying houses on the regular because of the massive sums of money involved. It makes me want to quiver in fear. I like stocks. And using my spare time to live an efficient, simple life; when I'm doing renovations I drink too much beer and eat too much take-out.

Rick Rickshaw fucked around with this message at 19:26 on Feb 20, 2015

# ? Feb 20, 2015 19:22

ocrumsprug: Sep 23, 2010; by LITERALLY AN ADMIN

From Garth Turner's blog yesterday.

Albertan search trends.

# ? Feb 20, 2015 22:25

etalian: Mar 20, 2006

Saltin posted:

I have convinced myself Newfoundland is being dragged down by Alberta because so many newfies worked up in the Fort and now not only has the money tap been turned off back home, but they have to actually go home and there hasn't been an economy there since fishing went upside-down.

Yeah it's basically similar to how many countries like Mexico are really dependent on workers in other countries keeping the local economy going via remittance payments.

For Mexico remittance payments are the the number 3 overall income generator for the economy.

Things like Alberta commodity crash will most likely have a effect on other provinces since the crash means less honey money being used to pump up the local economy in the maritime provinces.

# ? Feb 21, 2015 00:34

Saltin: Aug 20, 2003; Don't touch

etalian posted:

Yeah it's basically similar to how many countries like Mexico are really dependent on workers in other countries keeping the local economy going via remittance payments.

For Mexico remittance payments are the the number 3 overall income generator for the economy.

Mexico has a massive loving economy so they must be doing something right - they are like the 10th largest in the world I believe. Mexicans also score highest in the world in hardest working, however there is still loads of income disparity there. It's easy to believe Mexicans Stateside are sending money back home in droves, but Mexico has an actual robust economy, quite unlike the entire Maritime region which is completely propped up by the GTA, Alberta and Quebec.

I love Mexico and would consider retiring there if they ever sort out the whole corruption thing.

# ? Feb 21, 2015 18:30

namaste friends: Sep 18, 2004; by Smythe

And guess who's currency is beating the cad. Their manufacturing is singlehandedly destroying southern Ontario

# ? Feb 21, 2015 18:35

etalian: Mar 20, 2006

Saltin posted:

Mexico has a massive loving economy so they must be doing something right - they are like the 10th largest in the world I believe. Mexicans also score highest in the world in hardest working, however there is still loads of income disparity there. It's easy to believe Mexicans Stateside are sending money back home in droves, but Mexico has an actual robust economy, quite unlike the entire Maritime region which is completely propped up by the GTA, Alberta and Quebec.

I love Mexico and would consider retiring there if they ever sort out the whole corruption thing.

I guess NAFTA was such a good idea.

If anything the Mexican economy is better diversified than the canadian economy:

# ? Feb 21, 2015 18:41

Saltin: Aug 20, 2003; Don't touch

etalian posted:

I guess NAFTA was such a good idea.

If anything the Mexican economy is better diversified than the canadian economy:

To be completely fair they benefit greatly from the massive amount of cheap labour that is available there. That is why they do so well in manufacturing - that is where the jobs went. They are doing an ok job of trying to build a middle class, but it's a tightrope - raise wages and the manufacturing jobs will go elsewhere. There are definitely some Mexican owned manufacturers - Bimbo, the food guys come to mind - they actually just recently swallowed up Canada Bread/Dempsters/etc not too long ago, and are massive - but the majority of manufacturing jobs there are foreign companies that have moved there for the cheap workers.

Because there is so much disparity there, it's nothing to applaud quite yet.

# ? Feb 21, 2015 18:59

etalian: Mar 20, 2006

Saltin posted:

To be completely fair they benefit greatly from the massive amount of cheap labour that is available there. That is why they do so well in manufacturing - that is where the jobs went. They are doing an ok job of trying to build a middle class, but it's a tightrope - raise wages and the manufacturing jobs will go elsewhere. There are definitely some Mexican owned manufacturers - Bimbo, the food guys come to mind - they actually just recently swallowed up Canada Bread/Dempsters/etc not too long ago, and are massive - but the majority of manufacturing jobs there are foreign companies that have moved there for the cheap workers.

Because there is so much disparity there, it's nothing to applaud quite yet.

But Mexico is actually attracting foreign capital and investment in large amounts for sectors like manufacturing unlike Canada.

In terms of economy it's more diversified compared to Canada's current holes and houses economy.

# ? Feb 21, 2015 19:46

Gorau: Apr 28, 2008

etalian posted:

But Mexico is actually attracting foreign capital and investment in large amounts for sectors like manufacturing unlike Canada.

In terms of economy it's more diversified compared to Canada's current holes and houses economy.

The reason that Mexico is attracting foreign capital so easily is because it has both very low labour costs compared to the U.S. and Canada (if I remember correctly the average manufacturing wage is something like a 10th of Canada's and an eight of the US) as well as the fact that Mexico has far better access to Asian and South American markets compard to Canada in addition to its access to North America. If you were a multinational deciding where to invest in, where would you go?

Edit: vvvvvvv

Canada can try but there is absolutely no financial reaaon for multinationals to set up their North American headquarters in any Canadian city. There are no real tax advantages and you make it more difficult to deal with your American branches which will be the larger part of your business. The only places where you'll really see multinationals put their North American headquarters in Canada is occasionally Calgary with specific oil companies (and even then it's a toss up over Houston). Otherwise most companies will put their North American headquarters in the U.S. and a branch office in Canada.

Gorau fucked around with this message at 20:05 on Feb 21, 2015

# ? Feb 21, 2015 19:54

etalian: Mar 20, 2006

Canada also had tried to desperately lure multi-national corporate headquarters for North America to Canada without success.

# ? Feb 21, 2015 19:58

MickeyFinn: May 8, 2007; Biggie Smalls and Junior Mafia some mark ass bitches

etalian posted:

But Mexico is actually attracting foreign capital and investment in large amounts for sectors like manufacturing unlike Canada.

In terms of economy it's more diversified compared to Canada's current holes and houses economy.

I get the houses bit. What does the holes mean? Porn?

# ? Feb 21, 2015 20:53

apatheticman: May 13, 2003; Wedge Regret

MickeyFinn posted:

I get the houses bit. What does the holes mean? Porn?

Resource extraction.

# ? Feb 21, 2015 20:56

Terebus: Feb 17, 2007; Pillbug

MickeyFinn posted:

I get the houses bit. What does the holes mean? Porn?

Oil and to a lesser extent mining im guessing.

# ? Feb 21, 2015 20:56

Kafka Esq.: Jan 1, 2005; "If you ever even think about calling me anything but 'The Crab' I will go so fucking crab on your ass you won't even see what crab'd your crab" -The Crab(TM)

Mining is huge in Canada, we have something like 70% of the mining companies in the world headquartered here, don't we?

edit: Yep. 75%.

# ? Feb 21, 2015 21:35

Terebus: Feb 17, 2007; Pillbug

Kafka Esq. posted:

Mining is huge in Canada, we have something like 70% of the mining companies in the world headquartered here, don't we?

edit: Yep. 75%.

Does mining represent more capital in Canada than oil?

# ? Feb 21, 2015 21:42

Kafka Esq.: Jan 1, 2005; "If you ever even think about calling me anything but 'The Crab' I will go so fucking crab on your ass you won't even see what crab'd your crab" -The Crab(TM)

Capital investment in energy specifically will be higher because the projects are mostly undeveloped. As a percentage of GDP, "energy" is 10%, but that includes coal and other fossil fuels separate from the tar sands. Mining of ores alone is 4%.

Unless you're trying to pull a gotcha here. I was just stating that Canada relies on the mining sector across the country.

edit: here's a 2011 report on it that states that coal and uranium mining are lumped into energy. If you separate those, it seems half of the GDP from energy is oil and gas, the other half is coal and uranium.

Kafka Esq. fucked around with this message at 21:58 on Feb 21, 2015

# ? Feb 21, 2015 21:52

etalian: Mar 20, 2006

Kafka Esq. posted:

Mining is huge in Canada, we have something like 70% of the mining companies in the world headquartered here, don't we?

edit: Yep. 75%.

lol, I guess my joke about Canada being the cayman islands was spot on

quote:

The other side is that Canada provides very favourable conditions. The listing requirements for the TSX are pretty lax, the disclosure requirements are pretty lax, you don�t have to have Canadian directories or Canadian shareholders to be a Canadian company... and the Canadian government doesn�t ask too many questions about whether you�re paying your taxes in other jurisdictions (i.e. foreign countries where the mines are operating).�

basically foreign mining company come to Canada because the TSX stock listing requirements and regulations are much less stringent compared to many other stock markets.

At least for stock market classification there's energy and materials. Energy obviously covers things like oil extraction, while materials covers things such as mining, raw material processing and also forestry products.

In terms of sector composition by cap, Canada has a poorly diversified economy thanks to Dutch Disease:

etalian fucked around with this message at 22:35 on Feb 21, 2015

# ? Feb 21, 2015 22:32

Rime: Nov 2, 2011; by Games Forum

Kafka Esq. posted:

Mining is huge in Canada, we have something like 70% of the mining companies in the world headquartered here, don't we?

edit: Yep. 75%.

Unfortunately, 75% of those are investment scams with no actual production or revenue. The other 25% are responsible for gross human rights abuses. :v: