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Samson Luong

Brazil economy surprisingly weak, adds to global fears - The Globe and Mail - 0 views

www.theglobeandmail.com/...article5837722

brazil economy adds fears globe mail Stagnate Growth Samson Zhang

shared by Samson Luong on 04 Dec 12 - No Cached
  • Brazil has been stuck in a pattern of slow growth since Ms. Rousseff took office last year, as companies struggle with high costs and severe infrastructure and labour bottlenecks. Ms. Rousseff has tried to revive activity with numerous tax cuts and other stimulus, but Friday’s data showed that companies are not responding, as investment fell for a fifth straight quarter.
  • Friday’s data renews concerns that its slow growth is not a cyclical issue, but the result of deeply rooted structural problems after strong growth of the previous decade.
  • The measures that the government imagined would be capable of bringing Brazil out of the global crisis weren’t enough
  • ...3 more annotations...
  • Data indicates that many consumers have reached their debt limit, despite a massive year-long cycle of interest rate cuts, leaving few other strong motors to power Brazil’s $2.5-trillion economy.
  • far deeper changes to Brazil’s restrictive labour laws as well as its complex and onerous tax code, which many companies say makes investment prohibitively expensive.
  • Ms. Rousseff has won some plaudits from foreign investors for efforts to address Brazil’s supply-side bottlenecks
  • Samson Luong on 04 Dec 12
     
    Questions 1. What effects will interest rate cuts and expanding consumer credit have on Brazil's economy? 2. Would allowing the private sector to build and operate airports, highways and cutting electricity costs be good for Brazil's economy? Why?
  • anonymous on 06 Dec 12
     
    1- It might cause an economic recession. 2- It will be beneficial as long as there isn't one company operating all these areas(monopoly power) which leads to a market failure. It will bring money to the private sector. Netan
burmangabriel

Fiscal cliff: Obama, Boehner trade proposals - 1 views

www.abc15.com/...-obama-boehner-trade-proposals

Gabriel Ami trade proposals obama cliff

shared by burmangabriel on 12 Dec 12 - No Cached
  • prevent economy-damaging tax increases on the middle class at year's end, conferring by phone after a secretive exchange of proposals.
  • to reduce his initial demand for $1.6 trillion in higher tax revenue over a decade to $1.4 trillion
  • The longer the White House slow-walks this process, the closer our economy gets to the fiscal cliff," he said, declaring that Obama had yet to identify specific cuts to government benefit programs that as part of an agreement that also would raise federal tax revenue
  • ...14 more annotations...
  • attempts to avert a "fiscal cliff," across-the-board tax increases and cuts in defense and domestic programs that economists say could send the economy into recession
  • numerous proposals Obama has made to cut spending, including recommendations to cull $340 billion from Medicare over a decade and an additional $250 billion from other government benefit programs
  • Republicans "sent the White House a counteroffer that would achieve tax and entitlement reform to solve our looming debt crisis and create more American jobs
  • a deal to prevent damage to the economy,
  • Republicans struggle with Obama's demands to raise taxes, but Reid has privately told his rank and file they could soon be feeling the same distress if discussions grow serious on cuts to benefit programs
  • we need to strengthen Social Security, we need to strengthen Medicare for future generations, the current path is not sustainable because we've got an aging population and health care costs are shooting up so quickly
  • Republicans want to curtail annual cost-of-living benefits for Social Security and other government benefits, as well as raise the age of eligibility for Medicare from 65 to 67 beginning at some point in the future
  • president seems to think that if all he talks about are taxes, and that's all reporters write about, somehow the rest of us will magically forget that government spending is completely out of control and that he himself has been insisting on balance,
  • Obama's plan would raise $1.6 trillion in revenue over 10 years, in part by raising tax rates on incomes over $200,000 for individuals and $250,000 for couples. He has recommended $400 billion in spending cuts over a decade.
  • seeking extension of the Social Security payroll tax cut due to expire on Jan. 1, a continuation in long-term unemployment benefits and steps to help hard-pressed homeowners and doctors who treat Medicare patients
  • Obama last year signed legislation to cut more than $1 trillion from government programs over a decade, and was proposing $600 billion in additional savings from benefit programs.
  • health care law that Obama signed into law showed savings of $100 billion. Much or all of that funding came from Medicare, even though Obama's aides insisted during his successful campaign for re-election that he had not made any cuts in that program
  • Boehner's plan, in addition to calling for $800 billion in new revenue, envisions $600 billion in savings over a decade from Medicare, Medicaid and other government health programs as well as $300 billion from other benefit programs and another $300 billion from other domestic programs.
  • It would trim annual increases in Social Security payments to beneficiaries, and it calls for gradually raising the eligibility age for Medicare from 65 to 67, beginning in a decade
  • burmangabriel on 12 Dec 12
     
    1) Which proposal do you think is better? More cuts or more taxes 2) Do you think that going off the "cliff" is less detrimental than picking the other parties proposal?
  • Aron Joshua Tolentino on 14 Dec 12
     
    1.) More taxes because people in the lower bracket income won't get affected as much. Thus, not further hardening their way of life. 2.) No. they believe the measures negatively affect them. It would affect defense spending, domestic spending and taxes negatively. All the citizens of america will get affected. No exceptions.
  • Samson Luong on 17 Dec 12
     
    1. I believe more taxes would benefit the economy more because it would be geared more towards the higher income earners that have the foundation to deal with the taxes opposed to the lower incomes earners that already struggle. 2. Not exactly because going off the "cliff" affects several important factors such as federal tax, boarder tax, domestic spending, etc. Thus, it would seem that going off the "cliff" serves the economy and citizens more negatively than siding with the other parties' proposal.
JJ Igra

'Dead' cash to blame for Ontario's stagnant growth, task force warns - 2 views

www.theglobeandmail.com/...article5779990

JJ King Stagnate Growth

shared by JJ Igra on 03 Dec 12 - No Cached
  • JJ Igra on 03 Dec 12
     
    "A new status quo of slow or stagnant economic growth for Ontario's economy is developing," warns the Task Force on Competitiveness, Productivity and Economic Progress. "If economic growth languishes at less than 2 per cent annually, everything from government funding and programs to private sector competitiveness and employment will be impacted." The issue of dead money surfaced this summer when Bank of Canada Governor Mark Carney said Canadian companies are sitting on cash when they should be investing or returning it to shareholders - comments that sparked an avalanche of criticism from economists and executives. Canada's relative stability should make businesses more willing to invest. Instead, they are sitting on large cash reserves. Ontario's GDP per capita ranks 14th among 16 North American peer jurisdictions and lags the median of the peers by $7,500 Roger Martin, chairman of the task force and Rotman School of Management dean, in a release. "But the gap in GDP per capita with North American peers shows that Ontario needs to move now to push for more growth." Dead money could be used "to invest in the physical and human capital we need to increase our productivity and close the prosperity gap," he added. Key Concepts: GDP- gross domestic product Stagnate- Showing no activity; dull and sluggish: "a stagnant economy".
  • ...2 more comments...
  • JJ Igra on 03 Dec 12
     
    Questions: 1) What incentives can the government provide for businesses to invest in other company's? 2) Do you think the government should intervene more or should they let those company's do their own decision making?
  • anonymous on 06 Dec 12
     
    1) Subsidies so that businesses will be willing to take a risk and invest in other companies. 2) Canada is a mixed economy. Government should intervene if the situation is critical but it should also be up to companies to make the rational decision for their company. Netan
  • Cristina Raileanu on 07 Dec 12
     
    1) A crazy one would be to not corporate tax, them, if only for the beginning. Maybe subsidies the companies the government wants businesses to be involved in, and to be willing to invest into.
  • Valentina Padure on 14 Dec 12
     
    2.I think the government should not intervene in the decisions different companies make unless it greatly affects the country's economy.
Brijesh Patel

Canadas Economy continues to expand - 0 views

www.cicnews.com/...expand-create-jobs-012221.html

economy growth

shared by Brijesh Patel on 18 Jan 13 - No Cached
  • Brijesh Patel on 18 Jan 13
     
    In contrast to the financial woes of many countries, the Canadian economy has seen growth in a number of sectors, with thousands of jobs added in recent months. Immigration to Canada is expected to play a key part in expanding the country's population and financial wealth for years to come. Canada's upward trend of economic growth and job creation are good news for those looking to live and work in the country. Certain fields are in particular need of employees. At present, the most notable labour market shortages can be found in the realms of construction and natural resource management.
S C

As consumer debt grows, Mark Carney says ready to act if necessary | Debt | Personal Fi... - 1 views

business.financialpost.com/...ns-deeper-in-debt-than-thought

consumer debt personal finance

shared by S C on 16 Jan 13 - No Cached
  • emerging
  • While consumers are still spending and loading up more debt, Canadian corporate leaders are pulling back on their business plans because of weak global economic growth
  • debt-to-income ratio rose to 163.4%
  • ...9 more annotations...
  • Household debt is viewed as the biggest threat to the Canadian economy
  • much of that acquired through low mortgages rates
  • Monday’s survey showed 44% of companies plan to increase employment levels over the same period — compared to 59% in July — while 18% said those levels would decline.
  • In its autumn Business Outlook Survey, the central bank said companies “have tempered their expectations for business activity.”
  • Firms are generally more circumspect about near-term investment decisions and are focusing on minimizing costs,
  • ost businesses are evenly split at 35% between faster and slower sales growth expectations
  • That rate continued to rise to another record high in the first half of 2012, the federal agency said. In 2011, the ratio of household debt to income was 161.7%, up from 150.6%, under a new system of economic accounting adapted by agency.
  • Canadian households are continuing to pile on debt at a record pace, while corporate leaders are pulling back on their business plans because of weak global economic growth and uncertain demand.
  • While Canada’s economy is being affected by the global angst, the key areas of uncertainty abroad are all points of justifiable confidence here at home
  • S C on 18 Jan 13
     
    Consumer debt is becoming a larger threat to the Canadian economy as a whole. Meanwhile, businesses stopped expanding due to weak global growth.
Cristina Raileanu

Ford confident its hybrid fuel economy numbers will stand up - The Globe and Mail - 0 views

www.theglobeandmail.com/...article7368391

ford hybrid fuel economy canada commodities resources

shared by Cristina Raileanu on 17 Jan 13 - No Cached
  • Cristina Raileanu on 17 Jan 13
     
    This is a article about a new hybrid car, that should work in favor with the spiking of the oil prices.
Cristina Raileanu

Bank of Canada's Tiff Macklem warns on soft economic momentum | Economy | News | Financ... - 0 views

business.financialpost.com/...n-housing-market-consumer-debt

economy

shared by Cristina Raileanu on 17 Jan 13 - No Cached
  • “The strength and durability of the pick-up in growth through 2013 and beyond will depend critically on how successful we are in regearing our growth to exports, investment and innovation.”
  • Bank of Canada senior deputy governor Tiff Macklem said Thursday the economy is expected to pick up this year, but sounded a note of caution amid a soft housing market and weak export demand.
Brijesh Patel

40000 jobs added in december yet umemployment rate falls - 1 views

www.globaltvbc.com/...story.html

unemployment

shared by Brijesh Patel on 16 Jan 13 - No Cached
  • unemployment rate to its lowest in four years,
  • Statistics Canada reported last month that the economy grew just 0.1 per cent in October after a flat reading in September and a 0.1 per cent contraction in August.
  • December saw 41,200 new full-time jobs added, while the number of part-time positions fell by 1,400.
  • ...2 more annotations...
  • Compared with a year earlier, Statistics Canada said there were 312,000 more jobs, all in full-time work.
  • The gains were made in the transportation and warehousing segment which added 22,000 jobs, while the construction industry gained 18,000 jobs.Professional, scientific and technical services lost 42,000, while public administration dropped 13,000.
  • Brijesh Patel on 18 Jan 13
     
    Capital Economics, which has one of the most bearish outlooks on the Canadian economy, noted the strong jobs growth was in stark contrast to the other recent economy data. The federal agency said the national unemployment rate slipped by one-tenth of a percentage point to 7.1 per cent, its lowest level since December 2008 The recent strength of employment growth will probably convince the Bank of Canada to stick with its existing position that interest rates will eventually need to rise at this month's policy meeting
Erica Yeo

Canada's wage gap at record high: OECD - The Globe and Mail - 1 views

www.theglobeandmail.com/...article4099041

inequality canada challenges globeandmail skillsgap

shared by Erica Yeo on 23 Nov 12 - No Cached
  • gap between Canada’s rich and poor is growing
  • the income gap in Canada is well above the 34-country average, though still not as extreme as in the United States
  • Countries with greater income inequality tend to see shorter, less sustained periods of economic growth
  • ...21 more annotations...
  • Greater inequality raises economic, political and ethical challenges as it risks leaving a growing number of people behind in an ever-changing economy
  • the top federal marginal income tax rates tumbled – to 29 per cent in 2010 from 43 per cent in 1981
  • Canada’s growing gap: a widening disparity in labour earnings between high- and low-paid workers, and less redistribution.
  • Taxes and benefits reduce inequality less in Canada than in most OECD countries
  • Shifts in the labour market are a key reason why the gap is widening
  • Technological progress has been more beneficial to high-skilled workers, while the gap in men’s earnings in particular is growing ever wider
  • annual hours of low-wage workers in Canada have fallen to 1,100 hours from 1,300 hours, while those of higher-wage workers fell by less, to 2,100 from 2,200 hours
  • Rising self-employment
  • the self-employed typically earn less than other full-time workers
  • Taxation
  • Canada’s tax-benefit system was as effective as those of the Nordic countries in stabilizing equality, offsetting more than 70 per cent of the rise of market-income inequality
  • taxes and benefits now offset less than 40 per cent of the rise in inequality
  • inequality has been rising more rapidly in Canada than in the U.S.
  • social implications
  • income inequality with poor health outcomes
  • 11-year difference in life expectancy between men who live in its poorest neighbourhood and those its richest
  • Taxing the rich
  • closing loopholes
  • compliance with tax rules
  • education, skills training and job retraining programs
  • More and better jobs, enabling people to escape poverty and offering real career prospects, is the most important challenge
  • burmangabriel on 23 Nov 12
     
    1) What do you think are possible solutions for the rising inequality? 2) Since the rich are taking a higher percent of overall income and Canada is in debt, do you agree with lowering their taxes?
lebiez piranaj

Car loans drive Canadian consumer debt to record high $26,768 - The Globe and Mail - 2 views

www.theglobeandmail.com/...article5248875

consumer debt auto loans higher

shared by lebiez piranaj on 18 Jan 13 - No Cached
  • Canadian consumer debt hit a record high in the third quarter, driven by loans to purchase new cars
  • The average Canadian’s non-mortgage debt reached $26,768 in the third quarter
  • fastest pace of debt accumulation in nearly two years
  • ...6 more annotations...
  • ransUnion said Wednesday that consumer debt in the third quarter increased at its fastest rate since the end of 2010, jumping 4.6 per cent on an annual basis and 2.1 per cent from the previous quarter
  • the debt levels are certainly moving in the wrong direction
  • Auto borrowing debt climbed 11.25 per cent from a year earlier and 1.84 per cent from the previous quarter
  • One possible reason, Mr. Higgins said, is that during the recession, Canadians held off getting new cars and paid off their leases, driving auto loans lower
  • people have started thinking that it is time to get a new car
  • “Today, people can carry this debt, but if we do get a big shock, like higher interest rates or job losses, then we will get hit.”
  • lebiez piranaj on 18 Jan 13
     
    The article mentions about how auto loans have increased substantially in the past few years and that this may be because auto loans have lower interest rates. But it also mentions that the economy is recovering and another hit could affect us because we are borrowing so much. 
Brijesh Patel

Canadas Unemployment rates drops to 4 year low - 0 views

www.ctvnews.ca/...-drops-to-4-year-low-1.1100775

unemployment rate

shared by Brijesh Patel on 18 Jan 13 - No Cached
  • Brijesh Patel on 18 Jan 13
     
    The Canadian economy created 40,000 jobs in December -- all of it in full-time work -- and drove the unemployment rate to its lowest in four years, Statistics Canada said Friday. The federal agency said the national unemployment rate slipped by one-tenth of a percentage point to 7.1 per cent, its lowest level since December 2008 Statistics Canada reported last month that the economy grew just 0.1 per cent in October after a flat reading in September and a 0.1 per cent contraction in August. Compared with a year earlier, Statistics Canada said there were 312,000 more jobs, all in full-time work.
Erica Yeo

The widening gap in Canada's labour market - The Globe and Mail - 1 views

www.theglobeandmail.com/...article4104784

inequality canada challenges skillsgap solutions globeandmail

shared by Erica Yeo on 16 Jan 13 - No Cached
  • A fault line is splintering Canada’s labour market into those who can’t find work and those who can’t find workers.
  • employers across the country say they can’t find the right workers for all kinds of available jobs.
  • Groups with high jobless rates such as aboriginal people, recent immigrants and those with disabilities are struggling to land good jobs, limiting their ability to climb the economic ladder.
  • ...11 more annotations...
  • At the same time, employers from Newfoundland and Labrador to the Prairies say shortages are constraining their ability to grow, innovate and compete.
  • Structural shifts in the labour market mean “workers in declining industries may not have the skills or experience to match immediately the needs of employers in expanding industries,”
  • Unemployment is high, even as the number of job vacancies continues to rise
  • That means more-efficient partnerships between employers and universities and colleges,
  • Despite the presence of the local universities churning out tech graduates, he estimates there are about 1,900 current vacancies for technical jobs in the Kitchener-Waterloo region “that are unfilled and have been for some time.
  • Last month it called on the federal and provincial governments to work with employers to find strategies to overcome expected shortfalls.
  • It says improving skills and workplace training should become a national priority, and recommended more companies make a “strategic decision to take a direct role in creating the skilled workforces and talent pipelines they need.”
  • In Canada, part of the problem is that many people haven’t pursued careers in areas where all the job growth is happening. Mining and energy extraction are, by far, the fastest-growing segments of job growth in Canada over the past year, with employment gains of 5.7 per cent.
  • “The lack of young people pursuing further education in engineering and science and technology, is definitely a strain on our ability to grow,”
  • the labour market imbalance “is the largest threat to our economy,”
  • Without that effort, he estimates 1.5 million jobs could go unfilled in 10 years’ time.
faseehthemoonman

High unemployment to persist in Canada: analysts | CTV News - 1 views

www.ctvnews.ca/st-in-canada-analysts-1.581245

unemployment canada

shared by faseehthemoonman on 17 Jan 13 - No Cached
  • unemployment rate bobbing within a narrow band 0.1 percentage points above or below eight per cent.
  • unemployment rate will average 7.7 per cent next year and will still be above seven per cent in 2013, long after the economy has returned to normal.
  • rate of joblessness approaches 17 per cent
  • ...4 more annotations...
  • Although Canada has recouped the more than 400,000 jobs that vanished during the downturn, there are still more than 300,000 officially
  • He notes that the biggest hit on jobs since the 2008 crisis has been to manufacturing, warehousing and transportation -- three related industries
  • The new full employment level is likely a rate of about seven per cent, agrees Douglas Porter of BMO Capital Markets, as opposed to six to 6.5 per cent before the recession.
  • According to his forecast, Canada's unemployment rate will reach that level by the end of 2012, when the Bank of Canada estimates the economy will be back at full capacity.
tyler wiliams

Income inequality rising quickly in Canada - 1 views

www.theglobeandmail.com/...article618311

income inequality canada challenges

shared by tyler wiliams on 18 Jan 13 - No Cached
  • tyler wiliams on 18 Jan 13
     
    From the mid 1990's - late 2000's Canada had the fourth largest increase in income inequality among it's peers. Income inequality, along with corruption, were named as the two most serious challenges facing the world at this year's World Economic Forum in Davos. the impact of the growing income gap has gather little attention in Canada market forces and globalization are increasing disparity, along with institutional shifts such as dwindling unionization rates and stagnating minimum wages.
S C

Government finance suyang netan - 6 views

http://www.shawconnect.ca/NewsArticle/Money/6442516329_182/Cost_of_Canada_F-35_jets_to_soar,_Ottawa_eyes_alternatives_CTV_network/story.aspx Q1 How would buying these expensive jets affect the Can...

Government finance

started by S C on 12 Dec 12 no follow-up yet
A SN

The Wrong Inequality - NYTimes.com - 2 views

www.nytimes.com/...ooks-the-wrong-inequality.html

Article Regarding the Topic of Inequality

shared by A SN on 21 Nov 12 - No Cached
  • Blue Inequality
    • A SN
      A SN on 21 Nov 12
       
      One type of inequality.
  • Red Inequality
  • It’s between those with a college degree and those without.
  • ...8 more annotations...
  • Roughly 31 percent started or manage nonfinancial businesses. About 16 percent are doctors, 14 percent are in finance, 8 percent are lawyers, 5 percent are engineers and about 2 percent are in sports, entertainment or the media.
  • people similar to yourself, who may have gone to the same college, who are earning much more while benefiting from low tax rates, wielding disproportionate political power, gaining in prestige and contributing seemingly little to the social good.
  • New York City, Los Angeles, Boston, San Francisco, Seattle, Dallas, Houston and the District of Columbia.
  • Moreover, college graduates have become good at passing down advantages to their children. If you are born with parents who are college graduates, your odds of getting through college are excellent. If you are born to high school grads, your odds are terrible.
  • more likely to get married, they are much less likely to get divorced and they are much, much less likely to have a child out of wedlock. Today, college grads are much less likely to smoke than high school grads, they are less likely to be obese, they are more likely to be active in their communities, they have much more social trust, they speak many more words to their children at home.
  • But the fact is that Red Inequality is much more important. The zooming wealth of the top 1 percent is a problem, but it’s not nearly as big a problem as the tens of millions of Americans who have dropped out of high school or college. It’s not nearly as big a problem as the 40 percent of children who are born out of wedlock. It’s not nearly as big a problem as the nation’s stagnant human capital, its stagnant social mobility and the disorganized social fabric for the bottom 50 percent.
  • That’s because the protesters and media people who cover them tend to live in or near the big cities, where the top 1 percent is so evident
  • If your ultimate goal is to reduce inequality, then you should be furious at the doctors, bankers and C.E.O.’s. If your goal is to expand opportunity, then you have a much bigger and different agenda
  • A SN on 21 Nov 12
     
    Questions 1. Why does this article relate to economics? Honestly, why should we as economists really care about this matter? 2. Inequality is not only found in America, so how can American inequalities be compared to other inequalities found in the world? (This can include gender, race, geographical location, history, and more)
  • Valentina Padure on 28 Nov 12
     
    1. This article relates to economics because it discusses red and blue inequalities that exist and these are economic principles that economists need to pay attention to. The economy is based on efficiency and in order to be efficient economists have to take into consideration all types of inequalities that exist 2. An inequality is an unequal difference between two things, this article recognizes the inequality between the rich and the poor, or as they call it the red and blue inequality. Another type of inequality is gender inequality. In some countries girls are not allowed to go to school with the boys, and girls typically don't have the same rights as boys.
Erica Yeo

Divisions between haves and have-nots begin with having skills - or not - The Globe and... - 1 views

www.theglobeandmail.com/...article4906878

inequality divisions globeandmail challenges currentevents

shared by Erica Yeo on 22 Nov 12 - No Cached
  • Baby boomers are targeted because after struggling to get an education in skills that would land a job, and after decades of effort, they have accumulated some wealth.
  • To them, we symbolize intergenerational inequality.
  • Your future will be defined by how well you learn skills that match the needs of the job market. Those who gain useful skills will find higher paying, more rewarding jobs; those without that knowledge will face low-paying, unstable prospects.
  • ...9 more annotations...
  • fail to report what portion of their graduates find work that requires a university education.
  • large numbers of unfilled jobs co-existing with high levels of youth unemployment.
  • what if Canadian universities were the root cause of the skills gap, rather than the solution?
  • progressively widening inequality gap between members of your own generation.
  • 40 per cent of Canadian university graduates aged 25 to 29 were employed in “low-skill” jobs,
  • Canadian graduates turning to jobs-focused colleges for further training.
  • reduces Canadian productivity and prosperity
  • they just keep spending public money to produce graduates with few job prospects,
  • And the class of 2013 may come to realize that the most damaging inequality is not that of financial disparity, but rather the inequality of hope.
  • Erica Yeo on 23 Nov 12
     
    Discussion Questions: 1. Why should a widening financial income gap be concerning to the economy? 2. What are the economic differences of the baby boomer's generation (1940's-1960's) and the current generation? Do you think these differences affected the education requirement of today's jobs?
lebiez piranaj

Consumer debt loads grow at fastest pace in 2 years - 3 views

www.cbc.ca/...transunion-debt-credit.html

consumer debt fastest pace

shared by lebiez piranaj on 25 Nov 12 - No Cached
  • Canadian debt loads grew at their fastest pace in two years during the summer
  • Credit reporting agency TransUnion's latest quarterly analysis of Canadian credit trends found average consumer non-mortgage debt jumped 4.6 per cent year-over-year in the third quarter to an average of $26,768
  • Measured on a quarterly basis, debt grew 2.1 per cent in the summer from the second quarter of this year.
  • ...9 more annotations...
  • debt loads have increased 400 per cent more than the rate of inflation
  • — with inflation as measured by the Consumer Price Index up nine per cent and consumer debt jumping more than 37 per cent.
  • A 11 per cent uptick year-over-year in auto loans to an average of $19,228 was the main driver of the growth in overall debt
  • Canadian instalment loan borrower debt grew 2.3 per cent over the third-quarter of last year to an average of $22,849.
  • Borrowing on lines of credit fell 0.2 per cent year-over year, but grew nearly one per cent since the second quarter of the year and sits at an average of $34,050.
  • delinquency levels — those who are late or default on a loan— continue to remain low across all categories.
  • the number of Canadians missing or defaulting on loan payments fell to pre-recession levels
  • household market debt has risen to 163 per cent of disposable income.
  • "We're moving into the Christmas season so I anticipate we might see another high increase year-over-year when we get to the Q4 numbers
  • lebiez piranaj on 26 Nov 12
     
    1. Despite receiving warnings about Canadian debt issues , it turns out that the average credit card debt has actually decreased by one percent while the year-over-year auto loans are now the main driving force behind the overall growth of our debt, why do you think this is happening? 2. Thomas Higgins, TransUnion's vice-president of analytics and decision services said that he believes the reason why consumers continue to ramp up debt is due to the media spreading overly positive news regarding the economy and throwing the readers into a state false optimism. Do you believe this is the case and why?
Dyena Huynh

Study: Canadian consumer debt hits $26,768, highest in two years - 1 views

www.digitaljournal.com/...336848

shared by Dyena Huynh on 26 Nov 12 - No Cached
  • Canadian consumer debt grew at the fastest pace since the fourth quarter of 2010
  • Bank of Canada Governor Mark Carney has been warning households of its growing debt rate and officials are continuing to caution that household spending levels are starting to get out of control.
  • Dyena Huynh on 26 Nov 12
     
    1. Why do think consumer debt increased so much? 2. They say that getting consumers to spend more will help boost the economy, but is it beneficial when consumers are going into debt?
  • Brijesh Patel on 26 Nov 12
     
    1. i believe consumer debt has increased drastically because the generation is upgrading really quickly with new things, mainly technology and many people want to be caught up with the latest trends whether it is buying the latest iphone, clothing, real estate, buying a car etc. People begin to borrow heavy loans without thinking of a way to pay back therefore causing a big debt to themselves.
  • Samson Luong on 27 Nov 12
     
    1. I believe consumer debt has increased greatly due to the need to purchase luxuries and unnecessary goods because we live in a society where we live in a society where you feel incomplete if you do not possess a certain good. 2. I think spending money to a certain point is beneficial because it helps circulate cash, however consumers should not be spending to a point where they cannot pay back debts. Also people can spend money wisely rather on unnecessary and expensive goods.
Brijesh Patel

Commodities rise on budget talks - 0 views

www.businessweek.com/...-on-budget-talks-economic-news

commodities

shared by Brijesh Patel on 02 Dec 12 - No Cached
  • Brijesh Patel on 02 Dec 12
     
    - The price of commodities has been going up and down the past week as negotiations over the U.S budget continues. - Oil rose while natural gas fell. Silver rose 2%, gold raised $10.70, copper gained 6.8 cents, palladium ended up at $12.25 and platinum gained $7.80 - Investors are hoping a new budget is agreed upon so that tax doesn't increase - There is a possibility that the economist believe that U.S could be pushed back into recession if a budget is not agreed upon. - During the second quarter, the economy grew at a faster rate than initially thought by the commerce department. - More Americans starting buying homes due to the job gains and low mortgage rates. The National Association of Realtors said an index measuring pending contracts to buy homes jumped last month.
  • Brijesh Patel on 02 Dec 12
     
    do you think that the new budget will make a difference in the commodities prices ?
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