The low prices of commodities are hurting Canada, Trump is reducing investments and encouraging car and other American factories to move back to USA, oil price was at it's lowest for over 4 years and even today around USD 80 is about 35%-40% below the highs of 2014, Canadian Loonie is at 0.77 cent, it peaked in 2012 around 1.02 and has been declining ever since.
Now the hottest news in Canada this weekend:
Second largest mall of Canada is a ghost town!
All western media are completely biased when they use words like collapse and ghost towns for China but when it comes to US or Canada, they go silent and try to spin like it's alright and very normal.
Th is brand new mall has 500 stores of small sizes and about 99% was sold to individual investors at a total cost of more than CAD 200m.
Now the developer is out but the investors will lose it all if they cannot rent it.
This new massive empty mall is right across from another massive mall - CrossTown mall of Calgary.
See what the people are using the empty $200m mall for?
The mall developer is paying 5,000$ for the owner to rent and lease their units, according to the CBC link above.
Select references on how Canada is turning into an unemployed zombie country.
Refugees are piling in, immigrants are piling in, jobs are being lost and wages are dropping while costs are sky high, crime is rising, real estate cannot be sold while prices are dropping, malls and retailers are empty, Saudis just pulled out 16,000 well to do students, patients and tourists from all over Canada.
Is Canada rapidly turning into a third world country over the last few years?
24 Jan 2018 - 'A truly sad day': Campbell shutting down Toronto soup plant, cutting 380 manufacturing jobs
13 Jun 2018 - Royal Bank of Canada to cut branch space by at least 20% over the next five years, cutting up to 500 jobs
18 Sep 2018 - Capcom Vancouver officially shut down; ‘Dead Rising’ developers let go as part of restructuring
20 Sep 2018 - Some other thinkers have the same view of Canada.
2 Oct 2018 - Metro Vancouver September home sales plunge 40% vs. same time last year: real estate board
This article is only focusing on one city in Canada - Calgary and use the oil bust to make assumption of this O&G dependent city to benchmark against the economy state of the entire Canada.
ReplyDeleteOf the claim of high unemployment across Canada,please check the latest statistics. Alberta is probably one of the highest but other major cities are of record low.
Also,the shut down of Sears is because Sears has gone into their own financial problems and to avoid bankruptcy, they are closing outlets that are unprofitable, including those in the states, including KMart stores.
You also failed to mention the Cross Iron Mill Mall (not Cross Town mall) had been so successful. This is typical planning problem of the New Horizon Mall developer that caused this unoccupied mall. Plus, these 2 malls are way far from the city (no public transportation to this mall). Unless you have solid anchor tenants, it's destined to fail.
You should do more research instead of making an empty mall the bellwether of the overall Canadian economy.
Did you bother to read about RBC or how newspapers are firing or shut downs of stores or restaurants all around?
DeleteHave you seen the Canadian currency over the past 5 years? This post is on the projection of the future.
Canadian currency will go towards 0.50-0.55 level in the next year or so and real estate will drop massively.
So remember to come back in 1 year and we shall discuss again.
Thank you for visiting and for your comment.
I live in this city. I know the city, I know the country. It takes more than reading newspaper clips to understand the economy, or else everyone on the street will be economist. I own and operate my own business. I speak to customers on how are they doing. I monitor how my business is doing month on month, year on year basis.
ReplyDeleteNewspapers? Tell me how many people in developed and developing countries are still reading prints. Newspapers are goners. See their advertising revenue.
Every retail outlets in the world are being impacted because of e-commerce in the likes of Amazon, eBay, Alibaba. Tell me how Macy's, JC Penney, Kroger... and other US based retailers are doing for the past 3 years? Those who have done well are diversifying into e-commerce like Walmart.
Stores and restaurants in Calgary are not going well because of the direct impact of the O&G sector and the implementation of the carbon tax. However, it does not imply the entire country's economy is collapsing.
Do you know how many times the interest rates have been raised past 2 years? If economy is not doing well, will any central bank in the world increased interest rates?
CAD against USD to drop to 0.55-0.50? With this crystal ball, I will put my money where my mouth is and sell everything in my stable and short CAD to USD. I'd be multi millionaire in no time.
From the 5 year chart I read, the CAD hit 5 year low in Jan, 2016 and had made steady recovery since. It had made higher high and higher low than previous. Ask anybody if my chart analysis is correct.
With rates hike, cool down of real estate is expected. In fact this is intended for major cities like Vancouver and Toronto to make pricing more realistic. More affordable for the locals.
I do not having illusions of the western Canada's economy doing well but I am certain that the overall Canadian economy has done better since the past 2 years. This is the bottom but the bigger question is when will it make a comeback for the western provinces.
Thank you for your comment.
Deletehighly informative and relevant.
ReplyDeleteThank you very much. Really appreciate your support.
DeleteThis is something that everyone should read.
ReplyDeleteThank you Mr Aadil,
DeleteWe also hope more people read because such information is really not available in the main media in the way that we present.
Thank you for your support.