Fall 2012 Challenges Assignment

most people don't realize that income inequality effects us all and not just the poor. Our market-driven ideology has lead to the increasing income gap and needs to be changed. The reductions of income tax. Not only reductions of income tax and the disproportionate benefits to upper-income [individuals] takes away the money that's needed for post-secondary education, for health care, for Canada pensions, worsening the income gap.

Canadians are more than ever drown in debt. When it comes to comparing with the neighbor (US) we are carrying more debt than them. Market observers argued that Canadian consumers will no longer be able to hold up rising household debt.

According to a poll disclosed from CIBC, tells us that many Canadian are finding themselves in debt for longer periods of time then they had originally expected. 

Canadian debt loads grew at their fastest pace in two years during the summer Canadian instalment loan borrower debt grew 2.3 per cent over the third-quarter of last year to an average of $22,849

Consumer debt as a percentage of income is highest in BC, Alberta, and Ontario where house prices are highest

The S&P/TSX composite index rose 70.06 points to 12,404.40, as key commodities prices moved higher. The TSX Venture Exchange gained 2.11 points to 1,178.11. March copper declined about four cents to US$3.61 a pound while February gold bullion moved ahead $3 to US$1,673.70 an ounce. In Europe, the FTSE 100 index of leading British shares was up 0.6 per cent at 5,968 while Germany's DAX rose 0.2 per cent at 7,667. The CAC-40 in France was 0.4 per cent higher at 3,661.

Canadian Natural Resources Ltd. and Suncor Energy Inc. added at least 0.9 percent as crude rose to a three-month high. Yamana Gold Inc. gained 4.5 percent as gold rose the most in six weeks. The market today is moving primarily on the Chinese data, so gold is up and crude is up which is very good for the Canadian market," said John Kinsey, fund manager with Caldwell Securities Ltd. in Toronto. His firm manages about C$1 billion ($1.01 billion). "Those are the two areas that have been dragging." Yamana climbed 4.5 percent to C$17.06 and Eldorado Gold Corp. advanced 3.3 percent to C$12.61 as gold futures for February delivery gained 1.4 percent to $1,678 an ounce in New York, the biggest gain for a most-active contract since since Nov. 6.

The firm acquired 180 oil and gas wells, 150,000 net acres in mineral leases, a gas processing facility and a 262-mile gas gathering system from Houston-based Patara Oil & Gas, it said in a press release. Dubin was listed as number 285 on the Forbes 400 list of billionaires in September 2012 with a net worth of $1.7 billion; Tudor was number 108 on the same list, with $3.6 billion.

February crude was up 96 cents at US$94.24 a barrel and the energy sector was down 0.35%. Canadian Natural Resources (TSX:CNQ) gave back 35 cents to C$28.74. The gold sector was off about 0.4% while February bullion declined 70 cents to US$1,683.20 an ounce. Barrick Gold Corp. (TSX:ABX) faded 34 cents to C$33.69.

The S&P/TSX composite index fell 87.49 points to 12,453.32, giving back a good-sized chunk of last week's gain of almost two per cent, while the TSX Venture Exchange added 0.74 of a points to 1,228.96. The energy sector was down 0.8 per cent with the February crude contract on the New York Mercantile Exchange down 26 cents to US$92.83 a barrel. Suncor Energy (TSX:SU) shed 35 cents to C$33.22 and Talisman Energy (TSX:TLM) was 24 cents lower to $11.65. The gold sector slipped about 0.7 per cent February bullion fell $3.40 to US$1,645.50 an ounce. Agnico Eagle Mines (TSX:AEM) faded 79 cents to C$49.60 and Centerra Gold (TSX:CG) declined 14 cents to $9.20.

Unemployment itself has negative effects on people besides the obvious ones of having less money. People are more likely to become depressed, less likely to retain learned skills and it may even affect their children's earnings.

Household debt contributes to recessions and depressions, one major cause is banks lowering their lending requirements to make more money. Household debt can be reduced through income and savings, debt negotiations and inflation.

Canadian government article advising consumers about debt, such as recognizing danger signs, various methods to deal with it, and information on declaring bankruptcy in case consumers are unable to pay off their debts.

Some ways to deal with debt are limiting yourself, thinking before spending (do I really this?), using cash instead of credit cards and getting educated about finance to minimize debt when it has to be paid.

The article talks about strategies on how to save for things like education, on saving for a car, how to pay off your debt at lower rates as well. 

Should Canadians be worried about the financial stability of our banks?

Queensland resources council conducted a study that showed the mineral and energy has once again has increased its economic contribution to the state. resource companies have created 36 billion in gross regional product, due to gas and coal companies. it is a smart decision that auzi started to investing in producing a wide range of commodity resources. since the coal market struck a high. The challenge now is to ensure that there is a strong pipeline of projects across all commodities to sustain and grow the resources.

Question Do you think a country like Aus would have more success investing in resources and commodities than Canada?

- 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.

do you think that the new budget will make a difference in the commodities prices ?