PrimeNumber Posted January 30, 2015 Report Share Posted January 30, 2015 Oh I don't think you will have to wait long for that to happen. It's already happening to other Oil companies http://business.financialpost.com/2015/01/27/brace-for-capex-cuts-across-the-board-as-oil-companies-kick-off-q4-releases/?__lsa=872d-9bf5 Canadian Oil Sands Ltd. will be the first out of the gate, after markets close on Thursday. RBC expects the company, the largest investor in the Syncrude Canada oilsands consortium, to cut its dividend by 75% to 5¢ per share, and lower capital expenditure to $564 million, from $937 million in 2014, partly as the company wrapped up a major spending program last year. Quote Link to comment Share on other sites More sharing options...
PrimeNumber Posted January 30, 2015 Report Share Posted January 30, 2015 So your point? That the price of oil effects more than just 8% of the economy. Hence eggs---->basket. Quote Link to comment Share on other sites More sharing options...
Derek 2.0 Posted January 30, 2015 Report Share Posted January 30, 2015 So why is the Canadian economy slowing? Could it be oil? I guess Derek 2.0 is better economist than any of the analysts hired by JP Morgan. Looks like they think the price of oil is having a negative effect on more than just 8% of the economy. I never said the price of oil didn't effect our economy........The drop in the Canadian dollar, like the Euro, is a direct result of the growth of the US economy......... Quote Link to comment Share on other sites More sharing options...
Derek 2.0 Posted January 30, 2015 Report Share Posted January 30, 2015 Oh I don't think you will have to wait long for that to happen. Be sure to let me know.... Quote Link to comment Share on other sites More sharing options...
On Guard for Thee Posted January 30, 2015 Report Share Posted January 30, 2015 And according to a report out just today, th GDP has dipped as has the manufacturing sector, which was the one supposed to offset the drop in oil revenue. Apparently the oil sector isn't buying from the manufacturing sector. Hence eggs----->basket. Quote Link to comment Share on other sites More sharing options...
PrimeNumber Posted January 30, 2015 Report Share Posted January 30, 2015 (edited) I never said the price of oil didn't effect our economy........The drop in the Canadian dollar, like the Euro, is a direct result of the growth of the US economy......... And the price of oil. Edited January 30, 2015 by PrimeNumber Quote Link to comment Share on other sites More sharing options...
Derek 2.0 Posted January 30, 2015 Report Share Posted January 30, 2015 That the price of oil effects more than just 8% of the economy. Hence eggs---->basket. Riiiiiight.......So by that reasoning, Canada is putting even more eggs in the real estate and manufacturing basket, since both sectors comprise a larger percentage of our GDP... Quote Link to comment Share on other sites More sharing options...
Derek 2.0 Posted January 30, 2015 Report Share Posted January 30, 2015 And according to a report out just today, th GDP has dipped as has the manufacturing sector, which was the one supposed to offset the drop in oil revenue. Apparently the oil sector isn't buying from the manufacturing sector. Hence eggs----->basket. What report? Quote Link to comment Share on other sites More sharing options...
PrimeNumber Posted January 30, 2015 Report Share Posted January 30, 2015 And according to a report out just today, th GDP has dipped as has the manufacturing sector, which was the one supposed to offset the drop in oil revenue. Apparently the oil sector isn't buying from the manufacturing sector. Hence eggs----->basket. Denial is more than just a river in Egypt. Can you explain how this works to Derek 2.0 he seems to not understand how the flow of money through an economy works. Quote Link to comment Share on other sites More sharing options...
PrimeNumber Posted January 30, 2015 Report Share Posted January 30, 2015 Riiiiiight.......So by that reasoning, Canada is putting even more eggs in the real estate and manufacturing basket, since both sectors comprise a larger percentage of our GDP... Well no because those eggs are still in the Oil basket as it's those working in the oil sector that increase the housing bubble and it's the oil sector itself that is effecting the manufacturing sector. You still don't understand the way money flows from that 8% to the other 92% do you? Quote Link to comment Share on other sites More sharing options...
Derek 2.0 Posted January 30, 2015 Report Share Posted January 30, 2015 Denial is more than just a river in Egypt. Can you explain how this works to Derek 2.0 he seems to not understand how the flow of money through an economy works. I do quite well.......I'm not the one claiming a sector representing 8% of our economy represents all our economic eggs placed in a single basket Quote Link to comment Share on other sites More sharing options...
PrimeNumber Posted January 30, 2015 Report Share Posted January 30, 2015 I do quite well.......I'm not the one claiming a sector representing 8% of our economy represents all our economic eggs placed in a single basket No you are not, because you obviously don't understand how that 8% effects the other 92%. You've made that fairly evident. Quote Link to comment Share on other sites More sharing options...
Derek 2.0 Posted January 30, 2015 Report Share Posted January 30, 2015 Well no because those eggs are still in the Oil basket as it's those working in the oil sector that increase the housing bubble and it's the oil sector itself that is effecting the manufacturing sector. You still don't understand the way money flows from that 8% to the other 92% do you? The Oil sector is big in Toronto, Montreal and Vancouver? And the manufacturing sector was helped by a strong Canadian dollar? Quote Link to comment Share on other sites More sharing options...
Derek 2.0 Posted January 30, 2015 Report Share Posted January 30, 2015 No you are not, because you obviously don't understand how that 8% effects the other 92%. You've made that fairly evident. By all means explain......... Quote Link to comment Share on other sites More sharing options...
On Guard for Thee Posted January 30, 2015 Report Share Posted January 30, 2015 What report? The one from Statisitcs Canada. Quote Link to comment Share on other sites More sharing options...
On Guard for Thee Posted January 30, 2015 Report Share Posted January 30, 2015 http://business.financialpost.com/2015/01/30/canada-gdp-falls-0-2-below-economists-expectations/ Quote Link to comment Share on other sites More sharing options...
PrimeNumber Posted January 30, 2015 Report Share Posted January 30, 2015 The Oil sector is big in Toronto, Montreal and Vancouver? And the manufacturing sector was helped by a strong Canadian dollar? Well no they obviously have no oil industries in those cities. But the manufacturing and financial sectors are being effected by oil. Toronto may see a rise while Alberta implodes but only time will tell at this point. http://business.financialpost.com/2015/01/27/will-oils-big-drop-pop-canadas-housing-bubble/ How much does Alberta matter? Well, as with any good native Albertan (full disclosure – born and raised), my knee-jerk tendency is to say “way more than the rest of you bastards combined.” But in the current Canadian economy, that’s alarmingly close to accurate. Alberta contributed one-third of Canada’s economic growth last year, and is by far the fastest-growing province in the country again this year. Since the beginning of 2013, nearly half the jobs created in the country were in Alberta. . . . The oil sector has not only been leading the way in Canada’s export recovery, it has also been the big driver in business capital investment in the country. That means the sector has been leading the way in the two key areas that the Bank of Canada has repeatedly identified as critical to sustaining Canada’s recovery. Lower prices could stifle energy’s contribution on both fronts; they are not only an automatic drag on the value of exports, they are also a notorious capital-spending killer. Quote Link to comment Share on other sites More sharing options...
PrimeNumber Posted January 30, 2015 Report Share Posted January 30, 2015 By all means explain......... I already did. But I'll humour you. Those people that are hired by the oil industry spend money on all other sectors of the economy. They make up a large portion of the middle class. When they don't spend their buckets of cash on things the GDP of those other sectors drops. The oil companies themselves spend money on the manufacturing sector, when they aren't spending as much money on the manufacturing sector, it's GDP drops. Understand? Quote Link to comment Share on other sites More sharing options...
Derek 2.0 Posted January 30, 2015 Report Share Posted January 30, 2015 http://business.financialpost.com/2015/01/30/canada-gdp-falls-0-2-below-economists-expectations/ Good, a report stating declines in the oil and gas industry........that of course was never in question. Well done. Quote Link to comment Share on other sites More sharing options...
Derek 2.0 Posted January 30, 2015 Report Share Posted January 30, 2015 Well no they obviously have no oil industries in those cities. But the manufacturing and financial sectors are being effected by oil. Toronto may see a rise while Alberta implodes but only time will tell at this point. http://business.financialpost.com/2015/01/27/will-oils-big-drop-pop-canadas-housing-bubble/ Does Real Estate and manufacturing not make up a greater percent of our GDP? Quote Link to comment Share on other sites More sharing options...
Derek 2.0 Posted January 30, 2015 Report Share Posted January 30, 2015 (edited) I already did. But I'll humour you. Those people that are hired by the oil industry spend money on all other sectors of the economy. They make up a large portion of the middle class. When they don't spend their buckets of cash on things the GDP of those other sectors drops. The oil companies themselves spend money on the manufacturing sector, when they aren't spending as much money on the manufacturing sector, it's GDP drops. Understand? Sure, and what percent of Canada's GDP does the oil and gas industry make-up again? Inversely, what effect does a lower Canadian dollar make on the manufacturing sector as a whole? Edited January 30, 2015 by Derek 2.0 Quote Link to comment Share on other sites More sharing options...
On Guard for Thee Posted January 30, 2015 Report Share Posted January 30, 2015 Good, a report stating declines in the oil and gas industry........that of course was never in question. Well done. I guess you missed the part about the concurrent decline in the manufacturing sector which contributed to the drop in GDP. Quote Link to comment Share on other sites More sharing options...
Derek 2.0 Posted January 30, 2015 Report Share Posted January 30, 2015 I guess you missed the part about the concurrent decline in the manufacturing sector which contributed to the drop in GDP. A decline related to the oil and gas sector........as already noted. Quote Link to comment Share on other sites More sharing options...
On Guard for Thee Posted January 30, 2015 Report Share Posted January 30, 2015 A decline related to the oil and gas sector........as already noted. It seemed you didn't quite get that to begin with. Quote Link to comment Share on other sites More sharing options...
Derek 2.0 Posted January 30, 2015 Report Share Posted January 30, 2015 It seemed you didn't quite get that to begin with. I do all to well........a lower Canadian dollar is better for the larger Canadian manufacturing sector, which makes up a far greater percent of Canadian GDP.... Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.