$1 USD, that's like $1 CAD?

[Andrew]

97.48 CAD for 1 USD.

Almost parity again. Wonder if Canadians will flock to US border to buy stuff again. Better be cheap electronics in Canada.

DJIA made it to 10,000. But USD lost 17% value against Canada dollar in 6 months, and subtract inflation, DJIA still sucks.

[Andrew]

Gold has been breaking records.

India purchases 6.7 billion USD in gold

Uh oh!

Asians are moving away from USD.

[Andrew]

Canada's job market in deep freeze

Canada lost 43,000 jobs in October. Aug/sept we gained jobs. This was a huge surprise. Full time jobs increased. Part time plummeted, mostly from retail.

Large local international producer of french fries has shut down for 2 weeks. Maybe this is the second wave of recession in Canada?

The article has AWESOME graphic in it (for Canada/USA). Press play button to see job growth/loss from 2002-2009. Pretty cool. You can see hurricane Katrina killing jobs in New Orleans. Detriot has been losing jobs the entire time.

190,000 Americans lost jobs last month.

US jobless rate is 10.2%. 26 year high.

Four more banks fail - 119 for the year

Gold still high.

[Khan]

That graphic is pretty cool. It reminded me of the end of wargames.

[chatfsh]

Canada's job market in deep freeze

The article has AWESOME graphic in it (for Canada/USA). Press play button to see job growth/loss from 2002-2009. Pretty cool.

Yes, quite the visual -- almost like unemployment spreading like a virulent disease.  With unemployment up to 10.2% in the US, it does feel like a much bigger threat than swine flu.

Yet, the talk of economic recovery persists with the

[Andrew]

As a number of us have stated repeatedly, the high levels of consumerism in the US were based upon an illusion and that bubble has burst most precipitously.  As a result, employers have and will continue to shed jobs to adjust to this new normal – the new equilibrium.  Welcome to this sobering reality, folks.

Mhmm, much as predicted.:)

The government and large corporations will do everything possible to prevent smart consumerism. Expect more aggressive advertising, which will cost more $ and thus larger % of product cost is for advertising and not about quality product. Government will happily spend more, increase debt, increase taxes etc. No long term solution is being used. Let's go back to infinite growth where everyone is taking part in pyramid scheme where you constantly have to upgrade to newest thing. Houses apparently are not meant to be lived in long term. Buy/build house. Sell in 5 years make profit, upgrade to bigger house. This is still going on where I am. People intentionally plan on building a house and only living there 5 years. Always happens with cottage market. Not many long term family owned cottages anymore. All property flippers trying to sell to people not in the province (I think Americans have been cashing out past 2 years with high CAD and recession).

With people being more productive (more output per person) with aid of technology (computers/machinery), it's easy to see people losing jobs during recession. Getting rid of excess employees. Only question is what will all the people that lost jobs in past 2 years do in future? What job market (industry) will take them in? There was tech bubble in 2001, they lost jobs, then everyone moved into house bubble, that's gone, hurt construction/selling houses, and banking industry. Not sure what industry will get a bubble now (I'd guess some form of tech+? combo, probably online advertising overvaluation, who pays for that crap?). Maybe a tourism crash because of recessions and flu (and lets say high travel costs due to high oil)?

With more manufacturing jobs leaving USA because people can output more (manufacturing output has steadily been increasing every year), will people continue to move into retail and other 'low' end jobs? There's only so much retail/fastfood can do.

I'm sure all the pundits will be talking a lot about this Christmas season and if it looks bad, then we're screwed. If people save money and don't spend on crap, jobs will be lost. Won't someone think of Santa!?

Worst job recession since 1980s. And USA still losing 200,000 jobs each month. When will it stabilize? Might create some jobs for Christmas season, but then fall in January. Might not be until Spring before positive jobs, and how fast will the job recovery be? Will everyone stop looking for jobs and thus the unemployment rate will look great?

That french fry producer I mentioned in previous post, provincial government is already talking about giving them money...

Yah bailout for failed business plans. Why didn't they have money saved up from their decades of success of being one of the largest private employers in Atlantic Canada? Hmm.

[Andrew]

U.S. trade gap widens 18.2 percent in September

The U.S. trade deficit widened in September by an unexpectedly large 18.2 percent, the largest increase in more than 10 years, as oil prices rose for the seventh straight month and imports from China bounded higher.

Huh? Chinese imports are increasing? I would think with devaluing USD, imports would decrease (OK China pegs fixed exchange rate), and since the government is spending $$$ that it would increase domestic purchases. Guess not. USA becoming even more reliant on China during a recession. So it's only going to get worse. And with USA cutting lots of jobs, China is happy to pick up any cheap manufacturing jobs. USA not going to get them back, and the promised dotcom bubble and tech bubble to save America busted many years ago, and now the housing bubble economy blew, so what will Americans work at?

Heh, I didn't even read most of article but they say similar thing as I did

Some analysts had expected more of an export boost because the drop in the value of the dollar against other major currencies makes American goods more competitive overseas.

But "the overall upturn in U.S. demand is trumping the fall of the dollar," said Craig Peckham, an equity trading strategist with Jefferies and Company in New York.

So demand is increasing and non American products is what is being consumed? USA not supplying any of the new demand? :(

At least oil prices went down today.

[Andrew]

U.S. Fund for Bank Deposit Insurance Falls Into the Red

FDIC has run out of money. Expect an increase in money supply(inflation) to replenish it.

[Dante]

'Robin Hood' banker gets suspended sentence

Oldish news, but I figured this was pertinent, given the current climate.

[Dunenewt]

Considering the size of the bonuses being issued in banks, and the fact this person was not making any profit for themselves, this should almost be applauded.

[Wolf]

You know, I was reading earlier, that at current interest rates, the immediate interest of US stimulus/health care spending will hover around $200B, but in as little as a year, could skyrocket (with the interest rate) to $700-800B. That's like an entire other health care bill--but only in interest! How long can we keep burning money and taking out loans before we just let the People's Government of China run things?

[Dante]

You wait, we'll be bartering again in no time. Money is an idea, worth only as much as is agreed upon. A single apple, in that context, is worth considerably more.

On a more flippant note, I do occasionally consider the consequences were the world at large to wake up one day with the realisation that little bits of paper rule their lives. Not even that, the idea of little bits of paper. A word, a number, a noncorporeal promise. That's all money is, and sometimes I consider we'd be better off without it.

[Andrew]

Yah, my provincial government just changed property tax increases (valuation) to coincide with whatever inflation is (to a max of 5%).

If they have half a brain they know inflation will be high in future. But they are saying it is a good thing and that taxes won't increase this year because inflation is so low. Most are opposed to it, but mostly because the vocal internet people always attack whoever is in power. They actually froze property taxes for 2 years (crazy election promise), and everyone is expecting taxes to skyrocket shortly to make up for the freeze.

Yah, we're screwed. The only solution seems to be inflate money supply to fix overvalued assets that got devalued. Crazy.

Gonna be fun to see what Gold does. Is it a bubble, or will it keep going up? Oil has gone all over the place since 2008.

[Andrew]

It's been a while.

TARP stabilized system, but bailed out banks lend less; more foreclosures soon

Basically just delayed the financial apocolypse. and banks don't care because government will bail them out.

It also warns that another housing bubble is being created. Duh, housing prices corrected themselves, and no one wanted that (property flippers, banks, real estate agents, government taxes on property assessment), so inflation to the rescue.

[Andrew]

Good news everyone!

824,000 jobs will disappear February 5

[chatfsh]

Yeah, I saw that story and just shook my head in dismay.  How in the world can anyone have any confidence in the labor statistics when the economists keep revising the numbers? 

[chatfsh]

Moody

[chatfsh]

Meanwhile

[Dante]

If you're in a tower high enough to observe them from, perhaps...

[Andrew]

FDIC Says 702 Banks Now in Danger of Collapse

Nice.

There are total of 21 Schedule I banks in Canada (5 important). 702 in danger in USA looks bad. Is there like a different bank for every town and city?

[Andrew]

Canada Budget released today.

Budget fights deficit with freeze on future spending ->marketing headline

Real headline: "The Conservative government hopes to rein in federal spending, including planned funding to the Canadian Forces, to cut a deficit that has soared to $53.7 billion."

53.7 billion deficit (why yes that is nothing compared to USA but for Canada it is HUGE).

That sucks. And there goes all the money saved over past 15 years. Good thing Conservatives cut taxes and spent lots of money before the recession.

Says they will have deficit gone in 5 years. For that to happen big decisions will have to be made (tax increases + budget cuts, or awesome economy).

But really with upcoming election, Conservatives will continue spending, and if they lose election they can blame Liberals/Coalition for having to cut spending and increase taxes. If conservatives win (majority), they will then be forced to really do something about deficit.

Surprise! NDP Layton says he won't support budget. ::) Blocs might not as well, leaving libs to make decision to collapse government or not, and they won't because it would make them look bad.

Olympics got crapload of funding.

Liberals will not vote down. They will vote against, but not enough to cause election (would be funny if someone did the math wrong and accidentally triggered election :P).

[Andrew]

Ah, yes, remember how I complained about 54 billion deficit in Canada?

CBO: Huge deficits to average $1 trillion per year over the next decade

LOL.

[nemafakei]

http://www.cbc.ca/money/story/2010/03/08/loonie-up.html

Wait, the Canadian dollar is called the loonie?

[Mahdi]

It started as a nick name due to its having a picture of a loon on it.  Our two dollar coin, introduced several years after the loonie, is called a toonie (again, started as a nickname).

[Andrew]

Also, looks like Canada is switching to plastic bills.

Canada to switch to plastic bills next year

Should be fun.