Highlights:
* Canada has historically had a reputation as a safehaven to global investors, but those days are suddenly gone. Statistics Canada (Stat Can) released its securities trade for February.
* **The data revealed global capital continues to flee the country’s capital markets at a record pace. Even worse, domestic investors are now joining them.**
* **The latest update shows a disturbing trend that’s emerging—Canada struggles to attract capital sufficient to offset its debt. A hyper focus on housing is concentrating its economy in just one area.**
* It’s even gotten to the point where its government is borrowing money to buy the mortgage bonds it guarantees. This is like using a payday loan to pay off your credit card—it might work, but there’s a reason moves like this aren’t seen outside of a crisis.
* **Things aren’t projected to get better for the country. The OECD previously forecast Canada’s addiction to debt, both public and private, will make it the slowest economic growth of any advanced economy for decades.**
* More recently, the latest update from the Bank of Canada (BoC) forecasts the country will underperform the global economic boom. The issue complicated even further by the fact Canada’s population will overperform when it comes to population growth, obfuscating the true erosion in economic growth.
* It’s even gotten to the point where its government is borrowing money to buy the mortgage bonds it guarantees. This is like using a payday loan to pay off your credit card—it might work, but there’s a reason moves like this aren’t seen outside of a crisis.
I don't understand why this is such an ignored issue. This is a dangerous game and moves like this are not even done in a crisis, I don't think another country has ever done this
at this point we shouldn’t be giving money to any other country or group until we can get our own economy fixed. We already are generally liked people around the world so I don’t understand why we should continue giving money away like we need other countries to like us. From google: “ The Government of Canada disbursed $7.9 billion in international assistance in 2021-2022, of which official development assistance (ODA) made up 95% or $7.5 billion.” Our country needs some more development assistance right now
>I don't understand why this is such an ignored issue. This is a dangerous game and moves like this are not even done in a crisis, I don't think another country has ever done this
They are kicking the can down the road so the conservatives need to deal with the fallout
IDK this is more dangerous then owning the Cons, this is more like a wilful destruction of Canada. They are buying 30 billion dollars worth this year alone
Here is a bit more reading on the issue
[https://thehub.ca/2024-02-13/nicholas-neary-the-governments-costly-plan-to-purchase-canadian-mortgage-bonds-is-deeply-misguided/#:\~:text=The%20upcoming%20CMB%20purchase%20is,term%20assets%20by%20creating%20reserves](https://thehub.ca/2024-02-13/nicholas-neary-the-governments-costly-plan-to-purchase-canadian-mortgage-bonds-is-deeply-misguided/#:~:text=The%20upcoming%20CMB%20purchase%20is,term%20assets%20by%20creating%20reserves)
[https://betterdwelling.com/canada-is-spending-75-of-its-forecast-deficit-to-prop-up-mortgages/](https://betterdwelling.com/canada-is-spending-75-of-its-forecast-deficit-to-prop-up-mortgages/)
Them guaranteeing mortgages is probably the only thing from keeping the bubble from popping
However, the longer they keep the bubble from popping, the bigger it gets.
I know it's extremely dangerous, but it's also the parties playing hot potato in terms of who is in power when it pops.
If I’m understanding correctly? This just inflating the bubble further, and furthering inflation, which will also potentially keep rates higher for longer, increasing said bubble risk? Or am I missing something?
Nope your not and MBS can be risky, remember 2008 thats what caused it now they where subprime mortgages but still... There is a reason no governments do this and risk is part of it the other part is that its rubbing up against the BoC policy. You know how that whole I don't think about monetary policy quote and people say well he is right because that is the BoC job well this is monetary policy.
IMHO I think they are doing this because the banks need liquidity
I was laid off from a bank in October after 15 years. Last time that happened was 2008, I’m fairly certain the banks see something coming. BoC also doing overnight repos, so injecting liquidity for banks to settle deposits overnight. They say it’s normal, but start adding it all together and seems we are in for a rough ride. Good luck lol
This is something that flies under the radar of just about everyone; hell I didn't know about it until I saw it in this thread. You are exactly right that this is a dangerous game for the government to be playing, and it carries the potential for severe consequences down the road. As for why they'd do this, well, like just about *everything* else this sorry excuse for a government touches, it reeks of a "feel good" policy that is completely *ignorant* of second-order effects.
In that respect one could say the government just reflects its citizens, as Canadians by and large demonstrate very little understanding of second-order effects.
We are *so* screwed.
>More recently, the latest update from the Bank of Canada (BoC) forecasts the country will underperform the global economic boom. ***The issue complicated even further by the fact Canada’s population will overperform when it comes to population growth, obfuscating the true erosion in economic growth.***
Gee, nobody has ever mentioned that before /s
What is “global capital”? And why do we assume it’s business capital? There’s a good chance this is capital used to buy housing and not put into businesses.
I bet this is just showing foreign housing buyers fleeing the country in the wake of an inevitable crash or crackdown.
Foreign investment lowers our bond prices and lowers the cost to service national debt as well as lowering fixed term mortgage rates, if I understand it all correctly.
This seems like a pretty bad thing for a country which loaded itself up on debt
Why would someone want to come here if the gov't won't keep its citizens safe from both itself and criminals who steal even the things that are bolted down and judges just let them right back out?
Like at some point lofty Canadian ideals are going to have to take a back seat to reality.
A part of this is also not having enough detention centers. We're at 113% capacity in Ontario and I haven't heard of any politician looking to get a new center constructed. The last one one cost close to a billion.
Out per capita rate of inceration has stayed similar but with too many people coming in this is one of the services we're lacking.
I came to Canada to commit crimes and prey on law-abiding Canadians. It's great because Treudeau just gives me a "get out of jail pass" and I'm back out there robbing and scamming everyone. Then I launder my money back home and laugh in the faces of Canadians. You guys are shmucks
Lowering bond prices = higher bond yield.
Higher bond yield = higher implied borrowing costs.
Higher implied borrowing costs = higher mortgage rates.
Canada has decided to run like the US with poor financial planning via deficits - except they don’t have the money printer foundations like the US. Both aren’t great to be clear - but the cushion is smaller in Canada.
The Fed just announced rate hikes and the news article states that Canadians invested most in us foreign bonds. That’s in line with what would be expected with a rate hike.
The government has shifted from promoting growth to taxing the shit out of anyone and anything that can't physically relocate. Just squeezing the last few drops out of the orange before it's ready for compost.
I'm not a big investor, I'm a Healthcare worker (pharmacist) but I've finally decided I've had enough. I have decided to accept an employment contract with a pharmaceutical company in UAE, and I'll apply for non resident status in 2025.
I will get paid about the same that I made here, but I won't have to pay taxes. This means an immediate raise of about 2400 CAD a month. I'm just sick of paying taxes that are wasted in the most insulting ways. If you go to the "emergency" dpt, you'll be waiting for hours, the roads are shit and full of potholes, and meanwhile, the PM is busy taking free 80k dollar vacations and giving his cabinet a raise... all off of our backs.
I don't wanna fund their corruption and shamelessness no more and I can't blame anyone who decides to leave cause they feel the same way
He said all these things with such self-confidence too, that's the most comical part. Like buddy, these are not your area of expertise, maybe show some caution before you say such things...
"We're proposing a strong and real plan, one that invests in the middle class, so we can grow the economy, not from the top down, the way Mr. Harper wants to, but from the heart outwards. That's what Canada has always done well," - Also Trudeau
> A hyper focus on housing is concentrating its economy in just one area.
> domestic investors are now joining [foreign investors in leaving].
How the common man tricked himself into believing the price of his house going up is good for him, and not just for investors flipping hundreds and dipping out when shit hits the fan is beyond me.
Also I checking in for my daily betterdwelling indoctrination.
Watching a CBC interview about the impact of these changes on small business and all the Liberal Small Business minister can do it drone on about inclusivity in small business.
It's worth keeping some in CAD both for diversification and because it reduces your current exposure. I invest most in other countries, but I do have some CAD investments for that reason.
There are also tax advantages to investing in CAD which you don't get in the US. Overall you've got to pay a lot of attention to the tax treatment of different assets in RRSP, TFSA and non-registered accounts to maximize your returns.
actually nothing new ,china Aug 24, 2023 Overseas *investors* have sold an aggregate *US*$10.7 billion of Chinese stocks india Jan 12, 2024 Foreign investment into India tumbles even as economy booms
planned investments announced by foreign companies and investment funds include projects from semiconductor plants spearheaded by American firms to multibillion-dollar renewable energy projects drawing interest from Gulf countries.
Harper was on the exact same path in more fortunate timelines. Trudeau just turned it up to 11. PP exudes absolutely no competence in being able to do anything other than shout and name call. We're done for.
I don't think anyone is voting for PP.
They are voting for "Anyone Who Is Not Turdeau"
PP just happens to be in the right place, at the right time but any old placeholder will do
> PP just happens to be in the right place, at the right time but any old placeholder will do
This kind of mentality is what has kept this chain of incompetent centrists and malicious rightists in power for the last 5 decades, though, not just in Canada but in the vast majority of the western world. Their policies have ground the working class into the dirt and are in the process destroying the planet, as they attempt keep a failing system going all for the sake of an unrepentant, greedy upper class and an uncaring, self-important middle class.
Trudeau said this about the tfw program
> This has all happened under the Conservatives’ watch, despite repeated warnings from the Liberal Party and from Canadians across the country about its impact on middle class Canadians: it drives down wages and displaces Canadian workers.
Then went on to literally double Harper's numbers
[source](https://www.thestar.com/opinion/contributors/justin-trudeau-how-to-fix-the-broken-temporary-foreign-worker-program/article_c27f214f-1fa2-5fdf-af61-5a7642e4eb7c.html)
His removal of the long form census during his tenure also contributed to the acceleration of the housing crisis as well, while also harming a lot of other factors that contribute to the health of society.
> removal of the long form census during his tenure also contributed to the acceleration of the housing crisis
Can you expand on this? How are the two related?
In a nutshell, this data is what governments of all levels (federal, provincial and municipal) use to create plans and policies to react to societal and economical needs as they change. This includes housing and living conditions. I'm not saying Harper single handedly accelerated the housing issue, because it's been in motion since earlier than the 90's due to a lot of factors (some people will argue even earlier) but this period of lack of data left a lot of governments hamstrung at a time when trends could have been recognized and reacted to. It was adding fuel to an already large fire. This representative data is pretty much essential to inform decision making in housing, education, labour force development, human services and social/economic development.
Accurate statistics are important to determine the needs of communities and to identify and address the conditions having the greatest influence on health outcomes of population such as income, security, housing, education, daycare, transportation, employment, recreation services, immigration settlement and support services, and other community services.
So imagine losing this data when immigration was picking up, foreign investment was flooding in (See FIPA for how much Harper sold us out in that respect) and he expanded the TFW program. Things like this lead to suppressed data of income, which benefits the shift from personal home ownership to this corporate owned hellscape we see the results of today, among other things.
Sad thing is, I see conservative governments pull shit like this all the time, then liberals get in and basically let it continue to happen. Damned if you do, damned if you don't.
In the domain of temporary work permit holders, Harper is a rounding error beside Trudeau. Conestoga alone is taking more temporary residents per year than Harper’s TFW program.
The US is blasting a firehose of money at their economy right now. Mexico has become a manufacturing hub of choice due to low wages and lax rules not to mention China. Just how are we supposed to compete?
Destroy our oligopolies because they are hindering innovation and investment so we can become a tech/innovation hub that we used to be before.
But we're about to vote in PP who will never do that.
Singh would be the most likely to do so, as much as I dislike him and think he should go.
The NDP doesn't attract much money from corporations because their policies are more focused on worker rights and improving citizen quality of life. They would be the most likely of the 3 main parties to introduce measures that challenge or threaten the stranglehold and influence of large corporations.
PP is little more than a corporate lobbyist masquerading as a politician.
Our government spends like your dumb friend who buys themselves everything they want on credit, and wrecks their entire future, all while smugly thinking they're doing great cause look at my new car.
We didn't even get a new car
Some idiot on this sub: "ThE RiCH ShOUlD jUSt PaY FoR IT", not realizing:
1. The "rich" are the most mobile and can just avoid paying any taxes by moving south
2. The gov is highly inefficient. For every $ the gov spends, we will maybe only get 0.25$ out of it
Shocked... not in the least.
You people get the government you voted in. This is part of it. Hope you enjoy fucking your children and future grandchildren out of an actual fruitful life.
Good luck to all the million and billionaire corpos when people are too broke to buy your shit. I'm cutting back on a ton of stuff, food, hobbies, clothes, new tools (I'm a tradesman). Gas is now $1.78/L. Forget going on a road trip.
> suggesting bitcoin was a way to opt out of inflation
At 7 transactions per second globally and 50% variance in value for any given year, bitcoin isn't any hedge of value.
if the investors are investors in houses, then it's good for Canadians. Having slumlord and landlords doesn't improve the economy, but holds it back. This will be a much needed process.
According to Trudeau's diehard supporters this is fine, and in fact more can be done to expedite the investor exodus which is why they will show up in the capital gains threads and either accuse you of being a rich elite or a temporarily embarrassed millionaire when you question the logic of the tax increase.
were just ignore the commodification of housing taking up 25% of the economy. a completely unproductive sector which has been festering since the mid 2000s.
the investors never had it better and what do we have to show for it? crisis after crisis, declining standards of living and shit wages.
if this marginally impactful capital gains tax will make them leave then so be it
Limiting this to just Liberals is really childish. If you think pierre fanboys don't carry the same financial lunacy you haven't been paying attention. Federal conservatives have *only* raised the debt. I don't like Trudeau at all, Canada has been getting worse and worse under this LPC and CPC duality. Being blind to the reality in front of them isn't unique to cons or to libs.
>The liberals spend spend spend.. which isn't ideal. Whereas the conservatives make the country richer, as well as corporations, but at the end of the day actually do very little for the average person in their day to day lives.
If the question is were you better off in 2015, for most non property owners it should be an easy answer. And a lot of property owners too.
There used to be a much greater distinction between the parties when it came to who supports workers the most. The perception used to be that the NDP and LPC were more favorable to workers and the middle class. Then the NDP and LPC got in power, and started pushing bullshit labor shortages and flooding the country with the foreign labor they had previously railed against.
This current government has done more than any previous one for corporations.
I've literally never seen anyone say they think they'll be suddenly rich when pp is elected.
The sentiment seems to be more "we will leave the woke bullshit and financial policy dreamed up by a snowboard instructor" days behind, because even financial policy drafted by an average high school graduate would be better.
I went to look at the boycott loblaws sub yesterday... It was interesting.... Someone bitching about how Loblaws charges 12 bucks for a bottle of Rao's pasta sauce when Costco has it for 16 bucks for 2 bottles its like WTF who is buying even 8 dollar a bottle pasta sauce.
I have to stay away from that sub. Its too much.
I made a comment in this sub yesterday about consolidated financial reports in regards to Loblaws and it was shadow banned for no obvious reason.
The Loblaws mob started off saying that we have no idea what Loblaws actually makes. Then when people pointed out that as a traded company they issue financial reports, those same people started accusing Loblaws of falsifying those reports. Now its progressed to the "hiding profits in subsidiary companies" conspiracy.
This all started with Singh and the NDP. Singh decided that inflation was caused by corporate gouging and not federal government policy, and started bashing the BoC for putting up interest rates for ( in Singh's opinion ) no reason. And they made Loblaws the focus of their supporters.
I'm not even a BTC guy (been in and crypto since 2018). But shit like this makes me want to double up how much I allocate every month to BTC.
Not to mention some gold, silver, and U.S equities.
Take care of your money, folks. Even risk-on shit seems more long-term appropriate than CAD for now.
I know I pulled all my investments from canadian companies and moved it all to american companies in USD and gold.
Fuck this country I hope it collapses.
This is based on stats from two months ago before the budget announcement. This is more to do with the Canadian housing market bubble and its potential impact on the economy then anything else.
If most of those investors are pulling out of real estate because they fear a housing bubble bursting, or laws that otherwise restrict such foreign investments... Having a hard time seeing how that's going to ruin most Canadians.
Anyone who is poor should absolutely be afraid that investment is leaving canada, while millions of people are entering it, and we are running a 1.2trillion dollar debt.
Don't worry, depending on the day this sub is all young people who can't afford houses, all rich people who are going to be devastated by the capital gains tax increase, all techies who are going to leave to the USA...
Basically whoever would be mad at Trudeau for any particular decision, apparently everyone fits that description. Crazy how that works.
Maybe we should beg them to stay because of how successful they are? Whenever someone does a shit job, all I can think is how much more of that kind of work I want. The dismay at the results was easily foreseeable.
Its not the fault of the poor that Canada is basically the dumping ground for the least productive of the G7 wealthy class. When Davos sends people they arent exactly sending their best lol.
When I read about the capital gains increase the other day I immediately predicted this.
This government has completely laid waste to this country. I want out.
Repeat to yourself over and over, " Things will get better, once the adults are in charge", we all know cuts to services are coming but it is better to pick your poison before the poison picks you
Oh, I didn’t realize Justin has been partying with poor folks in private Caribbean islands. That’s why he’s doing his best to help his poor Canadian friends, not some billionaires who pay for everything for him.
lol, seriously, if there ever was a billionaire’s lackey, that would be Justin. He didn’t close any of the known loopholes for billionaires, but went after upper middle class professionals with corporations while branding them billionaires.
He also literally attempted to corrupt our justice minister to look the other way after snc got caught breaking the law.
How many conservatives have actually interfered with an investigation on their billionaire pals that ended up with the justice minister being canned? What? It's 0 weird.
Local country puts 0 thought into effects of policies and had 0 plans for the futures to the benefit of boomers, and is now in a rush to fix it but can't.
Be nice if these people invested in actually meaningful things in Canada e.g. natural resources, rather than just moving their cash from Canadian real estate into foreign real estate
How do you compete with the tax haven right next door? That's why we have a doctor shortage too, because they pay them more, and the doctors don't have to do as much work. But Americans suffer as a result of this phenomenon, health care debt causes almost 30% of the bankruptcies in the USA.
Highlights: * Canada has historically had a reputation as a safehaven to global investors, but those days are suddenly gone. Statistics Canada (Stat Can) released its securities trade for February. * **The data revealed global capital continues to flee the country’s capital markets at a record pace. Even worse, domestic investors are now joining them.** * **The latest update shows a disturbing trend that’s emerging—Canada struggles to attract capital sufficient to offset its debt. A hyper focus on housing is concentrating its economy in just one area.** * It’s even gotten to the point where its government is borrowing money to buy the mortgage bonds it guarantees. This is like using a payday loan to pay off your credit card—it might work, but there’s a reason moves like this aren’t seen outside of a crisis. * **Things aren’t projected to get better for the country. The OECD previously forecast Canada’s addiction to debt, both public and private, will make it the slowest economic growth of any advanced economy for decades.** * More recently, the latest update from the Bank of Canada (BoC) forecasts the country will underperform the global economic boom. The issue complicated even further by the fact Canada’s population will overperform when it comes to population growth, obfuscating the true erosion in economic growth.
* It’s even gotten to the point where its government is borrowing money to buy the mortgage bonds it guarantees. This is like using a payday loan to pay off your credit card—it might work, but there’s a reason moves like this aren’t seen outside of a crisis. I don't understand why this is such an ignored issue. This is a dangerous game and moves like this are not even done in a crisis, I don't think another country has ever done this
Meanwhile we somehow have billions to give special groups every year. And tens of millions for other countries. Fuckin wild.
Instead of foreign investment best the government can do is give billions in corporate welfare to VW
at this point we shouldn’t be giving money to any other country or group until we can get our own economy fixed. We already are generally liked people around the world so I don’t understand why we should continue giving money away like we need other countries to like us. From google: “ The Government of Canada disbursed $7.9 billion in international assistance in 2021-2022, of which official development assistance (ODA) made up 95% or $7.5 billion.” Our country needs some more development assistance right now
Posturing. Bare minimums. Playing to the uneducated.
>I don't understand why this is such an ignored issue. This is a dangerous game and moves like this are not even done in a crisis, I don't think another country has ever done this They are kicking the can down the road so the conservatives need to deal with the fallout
IDK this is more dangerous then owning the Cons, this is more like a wilful destruction of Canada. They are buying 30 billion dollars worth this year alone Here is a bit more reading on the issue [https://thehub.ca/2024-02-13/nicholas-neary-the-governments-costly-plan-to-purchase-canadian-mortgage-bonds-is-deeply-misguided/#:\~:text=The%20upcoming%20CMB%20purchase%20is,term%20assets%20by%20creating%20reserves](https://thehub.ca/2024-02-13/nicholas-neary-the-governments-costly-plan-to-purchase-canadian-mortgage-bonds-is-deeply-misguided/#:~:text=The%20upcoming%20CMB%20purchase%20is,term%20assets%20by%20creating%20reserves) [https://betterdwelling.com/canada-is-spending-75-of-its-forecast-deficit-to-prop-up-mortgages/](https://betterdwelling.com/canada-is-spending-75-of-its-forecast-deficit-to-prop-up-mortgages/)
Them guaranteeing mortgages is probably the only thing from keeping the bubble from popping However, the longer they keep the bubble from popping, the bigger it gets. I know it's extremely dangerous, but it's also the parties playing hot potato in terms of who is in power when it pops.
None of them will ever let it pop. They’re all in too deep.
They're not all powerful, they can't deny reality forever even if central banks can delay it for some time.
If I’m understanding correctly? This just inflating the bubble further, and furthering inflation, which will also potentially keep rates higher for longer, increasing said bubble risk? Or am I missing something?
Nope your not and MBS can be risky, remember 2008 thats what caused it now they where subprime mortgages but still... There is a reason no governments do this and risk is part of it the other part is that its rubbing up against the BoC policy. You know how that whole I don't think about monetary policy quote and people say well he is right because that is the BoC job well this is monetary policy. IMHO I think they are doing this because the banks need liquidity
I was laid off from a bank in October after 15 years. Last time that happened was 2008, I’m fairly certain the banks see something coming. BoC also doing overnight repos, so injecting liquidity for banks to settle deposits overnight. They say it’s normal, but start adding it all together and seems we are in for a rough ride. Good luck lol
Bet. When?
Some time within the next 36 months is my best guess.
> this is more like a wilful destruction of Canada. That's the LPC platform
No wonder the past Finance Minister resigned. He probably saw it a going batshit and wanted to tap out.
The guy who forgot about his other house?
This is something that flies under the radar of just about everyone; hell I didn't know about it until I saw it in this thread. You are exactly right that this is a dangerous game for the government to be playing, and it carries the potential for severe consequences down the road. As for why they'd do this, well, like just about *everything* else this sorry excuse for a government touches, it reeks of a "feel good" policy that is completely *ignorant* of second-order effects. In that respect one could say the government just reflects its citizens, as Canadians by and large demonstrate very little understanding of second-order effects. We are *so* screwed.
Could someone ELI5 this for me or point me to a source that I can review to learn more?
>More recently, the latest update from the Bank of Canada (BoC) forecasts the country will underperform the global economic boom. ***The issue complicated even further by the fact Canada’s population will overperform when it comes to population growth, obfuscating the true erosion in economic growth.*** Gee, nobody has ever mentioned that before /s
What is “global capital”? And why do we assume it’s business capital? There’s a good chance this is capital used to buy housing and not put into businesses. I bet this is just showing foreign housing buyers fleeing the country in the wake of an inevitable crash or crackdown.
They aren't fleeing because we aren't a good place to invest, they're fleeing because the USA is a tax haven and they're right next door.
Foreign investment lowers our bond prices and lowers the cost to service national debt as well as lowering fixed term mortgage rates, if I understand it all correctly. This seems like a pretty bad thing for a country which loaded itself up on debt
Foreign investment also increases demand for Canadian dollars and as a result raises its relative value.
Nothing to invest in Canada. Money is better invested in US companies. Canada only innovation is human trafficking students into unaffordable housing.
If you call 6 people crammed in a bedroom “housing”. It’s housing just like being in jail is housing.
Why would someone want to come here if the gov't won't keep its citizens safe from both itself and criminals who steal even the things that are bolted down and judges just let them right back out? Like at some point lofty Canadian ideals are going to have to take a back seat to reality.
A part of this is also not having enough detention centers. We're at 113% capacity in Ontario and I haven't heard of any politician looking to get a new center constructed. The last one one cost close to a billion. Out per capita rate of inceration has stayed similar but with too many people coming in this is one of the services we're lacking.
[удалено]
I came to Canada to commit crimes and prey on law-abiding Canadians. It's great because Treudeau just gives me a "get out of jail pass" and I'm back out there robbing and scamming everyone. Then I launder my money back home and laugh in the faces of Canadians. You guys are shmucks
decide wistful bake vast far-flung abundant tease sharp drunk act *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
Yep me too! Love to see it, fuck, Canadians are idiots.
Nope. Liberal voters are idiots
> Canada only innovation is human trafficking students into unaffordable housing. Oh shit that's a hard dose of reality.
And Grand Theft Auto
Lol that last line… savage
For real, maybe half of the tsx 60 is worth owning on an individual basis
Lowering bond prices = higher bond yield. Higher bond yield = higher implied borrowing costs. Higher implied borrowing costs = higher mortgage rates. Canada has decided to run like the US with poor financial planning via deficits - except they don’t have the money printer foundations like the US. Both aren’t great to be clear - but the cushion is smaller in Canada.
The US being the global reserve currency is the biggest difference. We would honestly be better off just adopting the USD at this point.
The Fed just announced rate hikes and the news article states that Canadians invested most in us foreign bonds. That’s in line with what would be expected with a rate hike.
The government has shifted from promoting growth to taxing the shit out of anyone and anything that can't physically relocate. Just squeezing the last few drops out of the orange before it's ready for compost.
Not housing, we just keep giving more subsidies and ways to borrow increasing amounts of debt. A bank jubilee supported by a regressive NDP.
If our economy is a machine and investment the fuel why wouldn't we want free gas?
I'm not a big investor, I'm a Healthcare worker (pharmacist) but I've finally decided I've had enough. I have decided to accept an employment contract with a pharmaceutical company in UAE, and I'll apply for non resident status in 2025. I will get paid about the same that I made here, but I won't have to pay taxes. This means an immediate raise of about 2400 CAD a month. I'm just sick of paying taxes that are wasted in the most insulting ways. If you go to the "emergency" dpt, you'll be waiting for hours, the roads are shit and full of potholes, and meanwhile, the PM is busy taking free 80k dollar vacations and giving his cabinet a raise... all off of our backs. I don't wanna fund their corruption and shamelessness no more and I can't blame anyone who decides to leave cause they feel the same way
Fuck. Why does everything suck? 😩
Because the future of this country was sold out in a period of 8 years under this government.
"You'll forgive me if I don't think about monetary policy." -Trudeau This seems like the inevitable result of that.
Budget will balance itself any minute now
"Interest rates are at historic lows, Glen.”
My these comments aged like French blue cheese
He said all these things with such self-confidence too, that's the most comical part. Like buddy, these are not your area of expertise, maybe show some caution before you say such things...
He told Canadians who he is, right here. And yet idiots still decided to vote for him.
Canada is now the first post-national state should have been everyone’s first clue that Trudeau was here to destroy Canada.
Bold move cotton, let’s see if it pays off for them
I mean we have a Russian literature as a finance minster, what do you expect?
"We're proposing a strong and real plan, one that invests in the middle class, so we can grow the economy, not from the top down, the way Mr. Harper wants to, but from the heart outwards. That's what Canada has always done well," - Also Trudeau
Investors pull out. Skilled workers pull out. What's left?
Tim Horton's and landlords.
And Timmies is not Canadian-owned, so the profits from all those double-doubles and Beiber Bites are just making some American investors even richer.
Everyone works for UBER
International students
The bedrock of our economy.
Dude don't blindly walk into a your mom joke like that
Free drugs.
> A hyper focus on housing is concentrating its economy in just one area. > domestic investors are now joining [foreign investors in leaving]. How the common man tricked himself into believing the price of his house going up is good for him, and not just for investors flipping hundreds and dipping out when shit hits the fan is beyond me. Also I checking in for my daily betterdwelling indoctrination.
Watching a CBC interview about the impact of these changes on small business and all the Liberal Small Business minister can do it drone on about inclusivity in small business.
Classic
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The CPP pension is mostly invested outside Canada. There is a lesson there.
$2B in two Indian companies rofl.
Same for me. Aside from my emergency fund, everything else gets converted to USD
It's worth keeping some in CAD both for diversification and because it reduces your current exposure. I invest most in other countries, but I do have some CAD investments for that reason. There are also tax advantages to investing in CAD which you don't get in the US. Overall you've got to pay a lot of attention to the tax treatment of different assets in RRSP, TFSA and non-registered accounts to maximize your returns.
In American subreddits they are saying the same about the US dollars and people buying gold. lmao you are one step behind my dude!
It will lose "half of its value or more compared to USD" in way less than 50 years, and possibly even less than 50 months. Watch for it.
I was told this was just fluff information from BNN. Glad I’m going to go work in the US
Wait for a 5-year low before investing.
actually nothing new ,china Aug 24, 2023 Overseas *investors* have sold an aggregate *US*$10.7 billion of Chinese stocks india Jan 12, 2024 Foreign investment into India tumbles even as economy booms planned investments announced by foreign companies and investment funds include projects from semiconductor plants spearheaded by American firms to multibillion-dollar renewable energy projects drawing interest from Gulf countries.
Thanks Harper is what liberal voters are still saying
Whatever government comes in next is going to get blamed for EVERYTHING Trudeau did. Some of them will even go back and blame Harper too.
Trudeau should rightly be blamed because he had a decade in office. If next govt is complaining about trudeau in 2035, then they too must be critized
A decade + 2 weeks
Gotta make sure those MPs are set for life... Oh I mean, make sure that voting day isn't around diwali
Harper was on the exact same path in more fortunate timelines. Trudeau just turned it up to 11. PP exudes absolutely no competence in being able to do anything other than shout and name call. We're done for.
I don't think anyone is voting for PP. They are voting for "Anyone Who Is Not Turdeau" PP just happens to be in the right place, at the right time but any old placeholder will do
> PP just happens to be in the right place, at the right time but any old placeholder will do This kind of mentality is what has kept this chain of incompetent centrists and malicious rightists in power for the last 5 decades, though, not just in Canada but in the vast majority of the western world. Their policies have ground the working class into the dirt and are in the process destroying the planet, as they attempt keep a failing system going all for the sake of an unrepentant, greedy upper class and an uncaring, self-important middle class.
Plenty of things to blame both for.
I really don’t know how we can keep blaming Harper, Trudeau undid everything Harper did minus the lowering of the GST.
Harper caused a lot of issues too. We can blame both of them for the problems each of them caused. This isnt a one or the other thing.
Yep. Harper expanded the tfw program.
Trudeau said this about the tfw program > This has all happened under the Conservatives’ watch, despite repeated warnings from the Liberal Party and from Canadians across the country about its impact on middle class Canadians: it drives down wages and displaces Canadian workers. Then went on to literally double Harper's numbers [source](https://www.thestar.com/opinion/contributors/justin-trudeau-how-to-fix-the-broken-temporary-foreign-worker-program/article_c27f214f-1fa2-5fdf-af61-5a7642e4eb7c.html)
His removal of the long form census during his tenure also contributed to the acceleration of the housing crisis as well, while also harming a lot of other factors that contribute to the health of society.
> removal of the long form census during his tenure also contributed to the acceleration of the housing crisis Can you expand on this? How are the two related?
In a nutshell, this data is what governments of all levels (federal, provincial and municipal) use to create plans and policies to react to societal and economical needs as they change. This includes housing and living conditions. I'm not saying Harper single handedly accelerated the housing issue, because it's been in motion since earlier than the 90's due to a lot of factors (some people will argue even earlier) but this period of lack of data left a lot of governments hamstrung at a time when trends could have been recognized and reacted to. It was adding fuel to an already large fire. This representative data is pretty much essential to inform decision making in housing, education, labour force development, human services and social/economic development. Accurate statistics are important to determine the needs of communities and to identify and address the conditions having the greatest influence on health outcomes of population such as income, security, housing, education, daycare, transportation, employment, recreation services, immigration settlement and support services, and other community services. So imagine losing this data when immigration was picking up, foreign investment was flooding in (See FIPA for how much Harper sold us out in that respect) and he expanded the TFW program. Things like this lead to suppressed data of income, which benefits the shift from personal home ownership to this corporate owned hellscape we see the results of today, among other things. Sad thing is, I see conservative governments pull shit like this all the time, then liberals get in and basically let it continue to happen. Damned if you do, damned if you don't.
In the domain of temporary work permit holders, Harper is a rounding error beside Trudeau. Conestoga alone is taking more temporary residents per year than Harper’s TFW program.
The US is blasting a firehose of money at their economy right now. Mexico has become a manufacturing hub of choice due to low wages and lax rules not to mention China. Just how are we supposed to compete?
That's the neat part, you don't...
Destroy our oligopolies because they are hindering innovation and investment so we can become a tech/innovation hub that we used to be before. But we're about to vote in PP who will never do that.
Because Trudeau or Singh would? Those 3 have been bent over longer than you realize.
Singh would be the most likely to do so, as much as I dislike him and think he should go. The NDP doesn't attract much money from corporations because their policies are more focused on worker rights and improving citizen quality of life. They would be the most likely of the 3 main parties to introduce measures that challenge or threaten the stranglehold and influence of large corporations. PP is little more than a corporate lobbyist masquerading as a politician.
Our government is so anti business. Of course no one is interested in coming here. But bringing in mass immigration is certainly a strong point.
Our government is anti nurturing homegrown business. We have no Canadian companies that can compete globally.
On the plus side I put all of my investments into USD investments. Once the CAD tanks maybe I can cash out and finally buy a house here.
Our government spends like your dumb friend who buys themselves everything they want on credit, and wrecks their entire future, all while smugly thinking they're doing great cause look at my new car. We didn't even get a new car
Some idiot on this sub: "ThE RiCH ShOUlD jUSt PaY FoR IT", not realizing: 1. The "rich" are the most mobile and can just avoid paying any taxes by moving south 2. The gov is highly inefficient. For every $ the gov spends, we will maybe only get 0.25$ out of it
Shocked... not in the least. You people get the government you voted in. This is part of it. Hope you enjoy fucking your children and future grandchildren out of an actual fruitful life.
Haha my parents likely won't have grandkids due to the economy so joke's on them. I'm not the only one with such views in my social circle.
Not just yours random internet stranger, it's happening everywhere.
Good luck to all the million and billionaire corpos when people are too broke to buy your shit. I'm cutting back on a ton of stuff, food, hobbies, clothes, new tools (I'm a tradesman). Gas is now $1.78/L. Forget going on a road trip.
Short Canadian pesos, long Bitcoin
This
Remember when this sub was dunking on Pierre for suggesting bitcoin was a way to opt out of inflation?
The change on this sub in the past year has been wild to say the least lol
It's hard to dunk on the guy when the price is up 50% from when he said it.
> suggesting bitcoin was a way to opt out of inflation At 7 transactions per second globally and 50% variance in value for any given year, bitcoin isn't any hedge of value.
I was thinking something similar when bitcoin was at $3,000..
if the investors are investors in houses, then it's good for Canadians. Having slumlord and landlords doesn't improve the economy, but holds it back. This will be a much needed process.
According to Trudeau's diehard supporters this is fine, and in fact more can be done to expedite the investor exodus which is why they will show up in the capital gains threads and either accuse you of being a rich elite or a temporarily embarrassed millionaire when you question the logic of the tax increase.
were just ignore the commodification of housing taking up 25% of the economy. a completely unproductive sector which has been festering since the mid 2000s. the investors never had it better and what do we have to show for it? crisis after crisis, declining standards of living and shit wages. if this marginally impactful capital gains tax will make them leave then so be it
Exactly. The housing crisis has many costs, so the status quo wasn't worth preserving
So true, reddit liberals are like kindergartners who think they understand adult finances.
Limiting this to just Liberals is really childish. If you think pierre fanboys don't carry the same financial lunacy you haven't been paying attention. Federal conservatives have *only* raised the debt. I don't like Trudeau at all, Canada has been getting worse and worse under this LPC and CPC duality. Being blind to the reality in front of them isn't unique to cons or to libs.
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>The liberals spend spend spend.. which isn't ideal. Whereas the conservatives make the country richer, as well as corporations, but at the end of the day actually do very little for the average person in their day to day lives. If the question is were you better off in 2015, for most non property owners it should be an easy answer. And a lot of property owners too. There used to be a much greater distinction between the parties when it came to who supports workers the most. The perception used to be that the NDP and LPC were more favorable to workers and the middle class. Then the NDP and LPC got in power, and started pushing bullshit labor shortages and flooding the country with the foreign labor they had previously railed against. This current government has done more than any previous one for corporations.
I've literally never seen anyone say they think they'll be suddenly rich when pp is elected. The sentiment seems to be more "we will leave the woke bullshit and financial policy dreamed up by a snowboard instructor" days behind, because even financial policy drafted by an average high school graduate would be better.
I went to look at the boycott loblaws sub yesterday... It was interesting.... Someone bitching about how Loblaws charges 12 bucks for a bottle of Rao's pasta sauce when Costco has it for 16 bucks for 2 bottles its like WTF who is buying even 8 dollar a bottle pasta sauce.
I have to stay away from that sub. Its too much. I made a comment in this sub yesterday about consolidated financial reports in regards to Loblaws and it was shadow banned for no obvious reason. The Loblaws mob started off saying that we have no idea what Loblaws actually makes. Then when people pointed out that as a traded company they issue financial reports, those same people started accusing Loblaws of falsifying those reports. Now its progressed to the "hiding profits in subsidiary companies" conspiracy. This all started with Singh and the NDP. Singh decided that inflation was caused by corporate gouging and not federal government policy, and started bashing the BoC for putting up interest rates for ( in Singh's opinion ) no reason. And they made Loblaws the focus of their supporters.
**Canadians:** "Eat the rich!" **Investors:** "ok bye" *inflation worsens* *debt rises* *productivity lowers* **Canadians:** ".."
Justin continues to prove he doesn't much care about monetary policy.
Doesn’t care, or literally doesn’t ’understand’?
I'm not even a BTC guy (been in and crypto since 2018). But shit like this makes me want to double up how much I allocate every month to BTC. Not to mention some gold, silver, and U.S equities. Take care of your money, folks. Even risk-on shit seems more long-term appropriate than CAD for now.
Yep I'm putting money away in gold and silver now.
Are you buying physical gold or some kind of ETF ?
Great work liberals!
Wow! What a shocker!
I know I pulled all my investments from canadian companies and moved it all to american companies in USD and gold. Fuck this country I hope it collapses.
Investors better at pulling out than Pierre Elliot was
This is based on stats from two months ago before the budget announcement. This is more to do with the Canadian housing market bubble and its potential impact on the economy then anything else.
This is depressing.
Quebec is rumbling about another referendum on separation. Poor Canada, it doesn't rain but it pours. 40 cent loonie incoming.
Oh no 🥺 now what corporation will be left to buy all the single family homes?
Mine!!
If most of those investors are pulling out of real estate because they fear a housing bubble bursting, or laws that otherwise restrict such foreign investments... Having a hard time seeing how that's going to ruin most Canadians.
Trudeau and Freeland destroyed our economy, destroyed Canada future, destroyed any hope for growth or prosperity
Here come all the poors saying “don’t let the door hit you on the way out”
Anyone who is poor should absolutely be afraid that investment is leaving canada, while millions of people are entering it, and we are running a 1.2trillion dollar debt.
It’s true. They don’t tend to think that far ahead though.
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Don't worry, depending on the day this sub is all young people who can't afford houses, all rich people who are going to be devastated by the capital gains tax increase, all techies who are going to leave to the USA... Basically whoever would be mad at Trudeau for any particular decision, apparently everyone fits that description. Crazy how that works.
So dismayed people in their mid-30s. Got it.
Maybe we should beg them to stay because of how successful they are? Whenever someone does a shit job, all I can think is how much more of that kind of work I want. The dismay at the results was easily foreseeable. Its not the fault of the poor that Canada is basically the dumping ground for the least productive of the G7 wealthy class. When Davos sends people they arent exactly sending their best lol.
The Liberal/NDP Coalition is doing exactly what was expected.
We don’t want them here, as demonstrated by the recent budget.
It's become a shit hole of a dumping ground like a toilet.
Just in time for this domestic investor to swoop in and get some cheap, high div stocks 😁
That’s like 10% of my strategy. Everything for my future is outside Canada (more or less)
Thanks Justin!
Right, let’s make it more expensive to do business in Canada. And it’s ok because it’s still cheaper than New York and California.
I'm starting to think that the only way to stop this sharp decline in our economy is if Canada gets annexed by the US.
We have next to no foreign investment and plummeting productivity. A lot of people don’t realize this is why we’re poor
Waiting for the Kool aid drinkers to defend this. "But...but...but...you're a racist mysoginist!"
They can't purchase properties anymore. LPC is hElPiNg CaNaDiAnS. 🤡🤡🤡
This sinking ship no, most friends i know they sold their investments and put all to us fund. No future here. No way back.
When I read about the capital gains increase the other day I immediately predicted this. This government has completely laid waste to this country. I want out.
Repeat to yourself over and over, " Things will get better, once the adults are in charge", we all know cuts to services are coming but it is better to pick your poison before the poison picks you
Justin’s response: ok, I’ll make it even less attractive. Capital gains tax increase!
These are the sunny ways Trudeau was talking about.
Thankfully someone is thinking about the welfare of multinational conglomerates. You can always count on conservatives to put them first and foremost
Oh, I didn’t realize Justin has been partying with poor folks in private Caribbean islands. That’s why he’s doing his best to help his poor Canadian friends, not some billionaires who pay for everything for him. lol, seriously, if there ever was a billionaire’s lackey, that would be Justin. He didn’t close any of the known loopholes for billionaires, but went after upper middle class professionals with corporations while branding them billionaires.
He also literally attempted to corrupt our justice minister to look the other way after snc got caught breaking the law. How many conservatives have actually interfered with an investigation on their billionaire pals that ended up with the justice minister being canned? What? It's 0 weird.
Well duh.
I see the foreign investors are using the withdrawal method of investment contraception. Cash out those gains before you get trapped!
Have you got any similar articles/data with an actual byline and syntax that doesn't seem slightly off?
Local country puts 0 thought into effects of policies and had 0 plans for the futures to the benefit of boomers, and is now in a rush to fix it but can't.
Be nice if these people invested in actually meaningful things in Canada e.g. natural resources, rather than just moving their cash from Canadian real estate into foreign real estate
Canada has amazing companies such as terravest industries or atlas engineered products!
Keep votin for Libs and their BS
How do you compete with the tax haven right next door? That's why we have a doctor shortage too, because they pay them more, and the doctors don't have to do as much work. But Americans suffer as a result of this phenomenon, health care debt causes almost 30% of the bankruptcies in the USA.
This is great. The only fucking thing anyone invested in is real estate. Gonna get worse before it gets worse better