What Canada is doing right?

[Joy Pathak]

What Canada is doing Right? - CNBC

The Canadian economy is roaring forward

http://www.reuters.com/article/idUSN0926234020100709

A few reasons why Canadas economy is better than the U.S. economy | FP Posted | Financial Post



Just coming back from Toronto today after a quick visit, it seems like the Canadian economy is stronger than ever and it seems to be the common consensus. The banks are heavily regulated in Canada which might not get them the enormous profits seen by American investment banks nor is there trading at the levels seen in US, but can we expect Toronto to be a financial power-house comparable to New York? It is already the third largest financial center in North America after New York and Chicago with the Big 5 Banks of Canada all headquartered in Toronto.

 

[bigbadwolf]

"... but can we expect Toronto to be a financial power-house comparable to New York?"

No. New York is the financial centre of a global hegemon. The dollar is still the world's reserve currency. US multinationals dominate the planet. The US has at least 850 military bases all over the world. US military and financial power prop each other up -- as one would expect in an empire. Canada is not on the map geopolitically, militarily, financially. Canada is a US vassal state. Toronto is not going to supplant New York. Even if American power collapses, the imperium implodes, Toronto will not supplant NYC. Beijing might.

 

[Joy Pathak]

No. New York is the financial centre of a global hegemon. The dollar is still the world's reserve currency. US multinationals dominate the planet. The US has at least 850 military bases all over the world. US military and financial power prop each other up -- as one would expect in an empire. Canada is not on the map geopolitically, militarily, financially. Canada is a US vassal state. Toronto is not going to supplant New York. Even if American power collapses, the imperium implodes, Toronto will not supplant NYC. Beijing might.

"... but can we expect Toronto to be a financial power-house comparable to New York?"

I did not insinuate that Toronto will surpass. Will it be COMPARABLE is the question. I agree whole heartedly about the dominance of New York and USA on the grander scale. I am not saying Toronto will replace NYC.

The notion about Toronto/ Canada being a strong dominant force in the world in all aspects has already been accepted and there is no doubting it.

 

[atreides]

"... but can we expect Toronto to be a financial power-house comparable to New York?"

I did not insinuate that Toronto will surpass. Will it be COMPARABLE is the question. I agree whole heartedly about the dominance of New York and USA on the grander scale. I am not saying Toronto will replace NYC.

The notion about Toronto/ Canada being a strong dominant force in the world in all aspects has already been accepted and there is no doubting it.

Please see the link below for your viewing pleasure


Despite all their wealth and prosperity, Canada does a very good job on staying out of the spot light

 

[joel_b]

I wouldn't say that the economy is stronger than ever, there was some effects, but largely most people in Canada were not that affected by the downturn. We just had to convince people not to freak out and take all their money out of the system.

We were well positioned to weather a financial meltdown, for many factors which I'm sure are covered in the articles, things like:

- strict banking reserve requirements, and regulations on what the banks can put their money into.
- comprehensive goverment housing insurance program
- the simple fact is it's not easy to get a mortgage in canada. no such thing as sub-prime in the US sense..the gov't via the big banks drive due diligence on debt requirements.
- very few canadians, and canadian institutions were invested in the risky securities that imploded, I consulted to a $80 Billion fund company...they didn't have ANY ACBP/CDO stuff, and that's where all Canadian savings are, big fundcos
- there's virtually NO market for CDS on Canadian government debt, or insurance.
- 80% of our exports go to the US, including supplying US with 20% of their oil imports. So regardless of the mess the US is in they have to keep consuming = less impact to us
- CAD has appreciated heavily since the downturn vs the USD, so the same Canada export dependency has brought more dollars in, there are just not convenient short-to-midterm alternatives for US importers.
- Canadian government doesn't have the same structure as the US, was able to push through Stimulus spending very quickly, plus we were on something like our 10th+ straight SURPLUS budget before this happened.

There's so many factors, but it starts with smart banking regulation, and ends with being a resource rich nation sharing a friendly border with a nation that is black hole of consumption.

bigbadwolf, saying Canada is not on the map geopolitically, militarily and financially is just nonsense. I agree we have a good deal, we get a ton of benefits being a major partner with the US, but we rarely have to deal with the problems that the US has to either. The other side of the deal is we have to move mostly in lockstep on US policy and military intervention, but it's the nature of our relationship.


However, if you want to think that we have no global reputation and presence, fine by me. I can live in the US being from Canada and appreciate my neighbour (note spelling, lol) for it's good qualities. Plus we make a great hat for America!

Toronto will never become a global financial powerhouse, the market isn't big enough. They can't even suck it up and build new subways to allow it to become a modern densely packed city that has effective public transit. And Canadians aren't interested in becoming a financial powerhouse, they want to make 'good enough' money and hit the cottage on the weekend.

I just don't see it as part of our culture, generally. We like to stay relatively quiet, do things right, and have people realize it later, or not. Doesn't matter to us, life is good!

 

[bigbadwolf]

bigbadwolf, saying Canada is not on the map geopolitically, militarily and financially is just nonsense. I agree we have a good deal, we get a ton of benefits being a major partner with the US, but we rarely have to deal with the problems that the US has to either. The other side of the deal is we have to move mostly in lockstep on US policy and military intervention, but it's the nature of our relationship.


However, if you want to think that we have no global reputation and presence, fine by me. I can live in the US being from Canada and appreciate my neighbour (note spelling, lol) for it's good qualities. Plus we make a great hat for America!

Canada is a "junior partner" -- like Britain. Canadian GDP must be less than 10% of US GDP -- in that sense it is not on the financial map; Canada is not a rival to the US and like Britain and Australia is content with its "junior partner" status. Unlike China or Russia it will not make independent moves. I've lived in Ottawa a couple of years myself and I think the quality of life -- at least when I was there -- was superior to that of the US generally. But it seems to have gone the same neoliberal route as the other Anglo countries -- i.e., an assault on its social welfare state.

 

[joel_b]

just under 10%, indeed.

I don't disagree with you on that assessment, we won't be striking out on our own policy contrary to world powers anytime soon. Let's face it, 33 million people can only do so much. Like I said, we have a good gig with everyone as long as we cooperate, haha!

 

[joel_b]

Latest GDP growth projections

 

[Andy Nguyen]

After reading this topic and coming across another article today claiming 59% Canadians are living paycheck-to-paycheck, the picture isn't all that rosy.
Mish's Global Economic Trend Analysis: 59% of Canadians Live Paycheque-to-Paycheque; Implications of a Canadian Housing Bust; How Sound are Canadian Banks?

 

[joel_b]

It's kind of a curious survey question. It doesn't really say WHY they would be in trouble if their pay was delayed a week. It does not focus on causes of the situation.

Canada is a Debt nation, always has been, we generally have a higher tolerance to carrying debt, although it's a worrying trend given what's happening. Hah we even borrow a lot to save!

As a whole I think the country is doing ok, people just need to be smarter with their money.