Canada's economy is suddenly the envy of the world

[dtotire]

(edited for copyright purposes-proud patriot Moderator Democratic Underground)


Canada's economy is suddenly the envy of the world

http://www.google.com/hostednews/ap/article/ALeqM5hM5MvpNJ2D2tMn8sVqk_qKObY8DwD9GF5JBO0

By ROB GILLIES (AP) – 5 hours ago

TORONTO — Canada thinks it can teach the world a thing or two about dodging financial meltdowns.

The 20 world leaders at an economic summit in Toronto next weekend will find themselves in a country that has avoided a banking crisis where others have floundered, and whose economy grew at a 6.1 percent annual rate in the first three months of this year. The housing market is hot and three-quarters of the 400,000 jobs lost during the recession have been recovered.

World leaders have noticed: President Barack Obama says the U.S. should take note of Canada's banking system, and Britain's Treasury chief is looking to emulate the Ottawa way on cutting deficits.

The land of a thousand stereotypes — from Mounties and ice hockey to language wars and lousy weather — is feeling entitled to do a bit of crowing as it hosts the G-20 summit of wealthy and developing nations.

"We should be proud of the performance of our financial system during the crisis," said Finance Minister Jim Flaherty in an interview with The Associated Press.

He recalled visiting China in 2007 and hearing suggestions "that the Canadian banks were perhaps boring and too risk-adverse. And when I was there two weeks ago some of my same counterparts were saying to me, 'You have a very solid, stable banking system in Canada,' and emphasizing that. There wasn't anything about being sufficiently risk-oriented."

The banks are stable because, in part, they're more regulated. As the U.S. and Europe loosened regulations on their financial industries over the last 15 years, Canada refused to do so. The banks also aren't as leveraged as their U.S. or European peers.

(snip)

Copyright © 2010 The Associated Press. All rights reserved

[PM Martin]

1. Don't speak too soon. Steve Harper is doing his best

Bush impersonation.
Martin did place this country in a strong position, but do not count on the Cons to maintain it.

[applegrove]

12. Oh if the conservatives had a majority they would have cut programs and taxes

like crazy. You betcha!

[Canuckistanian]

17. The funny thing is, Flaherty would deregulate our banks in a millisecond

If the Cons had a majority government. He was a rabid RWer when he was in the Ontario government under Mike Harris.

Now he's trying to to take credit for something that successive political generations of LIBERALS have set up.

[no_hypocrisy]

2. I'm suspicious. How come their politicians and corporations aren't corrupt

to the point of ruining THEIR economy?

[drm604]

4. I'd imagine that it has something to do with differences in their political and electoral system.

Maybe they actually manage to elect responsible representative government more often than we do.

I think it may also be due to cultural differences.

Unfortunately there's a real danger that the forces that have taken such control of our media and other institutions may have some success in doing the same in Canada. I sincerely hope that the citizens of Canada are more successful at resisting it then we have been.

[GreenPartyVoter]

5. Yes. I heard someone wants to make a conservative news network up there?

[CHIMO]

9. ‘Fox News North’ primed for launch

The official announcement of what has been unofficially termed “Fox News North” is coming Tuesday.

After reports last week that Quebecor Inc. (QBR.A-T34.441.143.42%) was poised to launch a 24-hour news channel aimed at more conservative Canadian viewers, the company called a press conference at the Toronto Sun building for Tuesday morning. Quebecor president and chief executive officer Pierre Karl Péladeau will “make an announcement in regard to new investment in Canadian media,” according to a statement.

The channel is expected to be built on a mix of straight news reporting and opinion, modelled on the wildly successful Fox News network in the United States. If there is an appetite for a similar platform in Canada, it could be lucrative for Quebecor. In its most recent quarterly earnings, Fox parent company News Corp. reported that revenues at Fox News increased 17 per cent in the three months ended March 31, compared with the same period a year ago.

The conservative-slanted channel brings in ratings more than twice as high as any of the other 24-hour news networks in the United States: In May, Fox News drew an average audience of 1.8 million viewers during prime time seven days a week, compared with 747,000 for MSNBC and 595,000 for CNN, according to Nielsen. Higher ratings are a powerful draw for networks seeking to woo advertisers in a tight market.
http://www.theglobeandmail.com/report-on-business/fox-news-north-primed-for-launch/article1603483/?cmpid=rss1

[Heywood J]

13. AKA "'News' for Albertans".

Fox is carried on many/most cable and satellite packages in Ontario. I don't know a single person who watches it, and I've never seen it on in a store or shop. Granted, there's a bit of sampling bias there, but still...

[glitch]

7. Do they still hand count paper ballots up there?

Could have something to do with the continued integrity of their system.

[CHIMO]

6. One Item

Individuals are permitted to contribute a max of #1,000.00 to a party per year. Corps are also limited.

The government gives about $1.75 per year per vote from the previous election to the parties.

Beyond that it has been luck. Slowly drifting to the US model.

[Demeter]

3. Pride Goeth Before a Fall

When the US catches a cold, Canada get pneumonia. And there's a lot of contagion out there.

[CHIMO]

8. CMHC

To be sure, our economy is adding jobs, our stock market has rallied sharply, our currency is close to reaching parity with the USD, commodity exports are up, everything looks great. A buddy of mine even told me that our currency is being bought by central banks around the world. Canada seems to be on a tear.

But things are far from perfect. For one, there is a housing bubble in the making that could last a lot longer than people think. Stephen Jarislowsky, one of Canada’s best known investors, says he believes government measures aimed at juicing the housing market has put the sector in a bubble:

“I am convinced there is a housing bubble in Canada,” Mr. Jarislowsky told Bloomberg News. “… I conclude that the prices of housing today in the U.S. are cheaper than they should be, and that the prices in Canada are far more expensive than they should be.”

Mr. Jarislowsky is not alone. Other economists have also fretted about a bubble given the stunning rebound in real estate after the slump, and projections for record sales and prices this year. Ottawa is now considering tightening some rules. Said Mr. Jarislowsky: “They have basically encouraged people to buy houses based on cheap mortgages. That has created the opposite effect of what was desirable.”
http://housing-analysis.blogspot.com/2010/02/cmhc-canadas-moral-hazard-corporation.html

[Art_from_Ark]

21. Don't forget, Canada's economy, like that of Australia,

is heavily dependent on resource extraction. There is currently a commodities boom, and Canada is well-situated to take advantage of today's high prices for metals, among other things.

[CHIMO]

22. That Is Correct

That is why we are diversifying resources from the US to China and manufactured goods to Europe.

Those are the new markets.

[GOPBasher]

10. This can't possibly be right. After all, Canada is very socialistic! They help the poor and stuff,

which means they can't possibly have a good economy! That's what all the good Republicans tell me!

[riverbendviewgal]

11. We are sensible and kind people

I was born in the USA but came to Canada 41 years ago. I'm a Canadian citizen now.

I remember a few years ago up some conservatives wanted to change our bank system to be like the Americans.
So many Canadians wrote their MPs and said no way. So we stayed where we are today.

We got our one payer health care in the 60's and refused to put it on the NAFTA table when AMerica wanted us to.

Try to take away our health care now and we will probably fight tooth and nail to keep it. My son and husband had cancer, had all the best treatments and then palliative care. They were denied nothing.
I did not go bankrupt from their treatment. When they died the Canadian government gave me 2k each to bury them.


We buy houses up here without the perk of deducting our mortgage interest from our income taxes, as Americans do. We must put down at least 20 percent down payment but it is encouraged to put down more.

When we sell our homes we are not taxed on the profit. I have had two houses since my husband's death and doubled my money in profit.

I heeded advise and got out of all my USA stock investments about 3 years ago. I was warned about the US housing crash and bank crises. It is weird to hear the big guys say they didn't know. How come me, a little old widow knew?

I made a good decision choosing Canada as my home and country. No regrets.

My friend, down in the USA, who is also a widow has none of the money left her husband left her. She has to work and pay $1400 a month for her health care insurance.
I pay nothing for the hospital and doctor and do pay $140 a month supplementary health insurance for semi private hospital room, prescription drugs, dental and eye care. When I turn 65 I will pay $100 annual fee and then all my prescriptions will be $2.00 each.

my taxes were 21 percent last year, that is federal and provincial.
Canada is a wonderful place to live.

[provis99]

14. you should have made this its own thread.

Delightful to read.

[Scuba]

16. Thanks. I think I'll head northwest (Vancouver is nice all year round)

[Art_from_Ark]

20. Actually, Vancouver is quite gray and wet in the winter

but the summers are mild

[grasswire]

15. I believe the Constitutional guarantees are different

US: Life, liberty, and pursuit of happiness.

Canada: Peace and good government.

[Art_from_Ark]

18. "Life, liberty and the pursuit of happiness" are in the Declaration of Independence

but are not mentioned in the Constitution as such. The closest the Constitution comes to "Life, liberty and the pursuit of happiness" is the due process clause of the 14th Amendment, which states, in part, "...nor shall any state deprive any person of life, liberty, or property, without due process of law".

[eridani]

19. Don't forget the health care! n/t