Lost in the News

[jdobbin]

http://canadianpress.google.com/article/AL...wIlafk-47wLaEmQ

The East-West economic divide in Canada is widening, a new study of the country's largest cities has found.

The Conference Board's metropolitan outlook study, released Thursday, shows that the seven fastest growing cities in Canada are all in the West, led by Saskatoon and Calgary.

Meanwhile eastern economic powerhouses such as Toronto are operating well below their potential as the strong Canadian dollar squeezes exports to the United States and further cuts into the manufacturing sector based in Ontario and Quebec.

Restructuring of the North American auto industry has also hurt the Big Three carmakers operating in Ontario, with thousands of job cuts in the last two years.

Western economic growth has been strong for several years, notes Mario Lefebvre of the Conference Board, but "2007 is turning out to be a year in which the east-west disparity in economic growth is the greatest."

The western provinces have especially benefited from the growth in the oil and gas sector, as crude oil prices continue to rise and oilpatch companies spend billions of dollars to expand the oilsands deposits of northern Alberta, new oilfields in southern Saskatchewan and natural gas deposits in northeastern British Columbia.

In addition, companies involved in mining, agriculture and processing have also benefited from rising commodities prices and growing demand from Asia, especially China.

Producers of coal in B.C. and Alberta, uranium in northern Saskatchewan and other base metals across the West are cashing in on record prices and helping offset the loss of jobs in the battered forestry industry.

Shipments of everything from wheat and barley to coal, potash and chemicals are flowing through Vancouver and other ports along the West Coast to China, Japan and elsewhere.

In most Western cities, residential and commercial construction tied to the strong growth in resources has also helped boost local economies.

Saskatoon has been the star for the last couple of years due to better prospects in the province as well as returnees from Alberta coming back and plunking their money down on real estate.

Ontario does have growth but the manufacturing sector continues to have some problems which could spell volatility in elections. It remains to be seen whether Ontarians are affected by uncertainty at present and whether it will affect their vote now or in the future.

Some business analysts were wondering aloud last week if Canada was now bullet proof in regards to a possible recession south of us. The Canadian dollar is now getting close to parity with the U.S.

It might be possible that Canada will be continue to avoid falling into recession but it doesn't mean that the growth will be nation-wide. At the moment, it looks like the four western provinces are still surging while things are definitely slowing in the east.

Edited September 16, 2007 by jdobbin

[Michael Bluth]

Ontario does have growth but the manufacturing sector continues to have some problems which could spell volatility in elections. It remains to be seen whether Ontarians are affected by uncertainty at present and whether it will affect their vote now or in the future.

It might be possible that Canada will be continue to avoid falling into recession but it doesn't mean that the growth will be nation-wide. At the moment, it looks like the four western provinces are still surging while things are definitely slowing in the east.

The current situation could mean a long-term shift in power westward. With oil approaching $80 a barrel it would have to take a massive collapse in oil prices, to under $50 to seriously hurt the economy now.

I think Ontarians need to recognize this shift and get a little humility. I met a Toronto is the centre of the universe type who yesterday lives in Edmonton because she has a higher paying job with more responsibility than she said she would have a shot at back home. But still she denigrated people here as hicks, there's nothing to do, no culture, nobody in Ontario has heard of any universities west of Ontario.

Hey Ontarians we don't mind you coming to help fill the job shortages, but please at least be grateful and show a little respect. Is that too much to ask?

[Rovik]

A lot of people here in Newfoundland weren't to happy about the fact that this was yet another Canadian study that spanned from Halifax to Victoria. Newfoundland and specifically St. John's was omitted. If they included St. John's in their study, they might have found that St. John's is doing very well indeed from benefits of the offshore and may have well been the top city from the East in GDP growth. Of course, we don't know since it wasn't included in the study.

Though I do admit, sadly, other than a couple of exceptions, rural Newfoundland isn't in great shape

Edited September 16, 2007 by Rovik

[old_bold&cold]

St John's may be doing well by eastern standards but compared to the west it would not even be on the list. Yes they are now seeing a small tiny amount of investment from offshore oil, but wait and see when you get the full amounts. The smallest homes in St John's will sell for $500,000.00 etc. Luxury homes will be in the millions. The city may now be doing well with jobs and things, and to most that is a welcome change. The offshore oil will be big, as long as Canada can protect its waters and claims etc. If not then offshore oil will not be nearly as big if international oil companies can take it over and run from foreign lands. Many newfoundlanders have traditionally voted Liberal, and that will not give Canada the security it needs to protect our waters. Maybe thay should be looking more toward the CPC, as that way they will get better protection for things to come, even if they are mad at Harper now, they will see the wisdom of it all soon.

[geoffrey]

If St. John's is doing so good, they can afford to stop milking poor Ontario tax payers in equalisation for a bit, hey.

[jdobbin]

A lot of people here in Newfoundland weren't to happy about the fact that this was yet another Canadian study that spanned from Halifax to Victoria. Newfoundland and specifically St. John's was omitted. If they included St. John's in their study, they might have found that St. John's is doing very well indeed from benefits of the offshore and may have well been the top city from the East in GDP growth. Of course, we don't know since it wasn't included in the study.

Is there anywhere that the GDP growth of St. John's is listed? I think you are correct that it might be leading in eastern Canada.

Edited September 16, 2007 by jdobbin

[fellowtraveller]

Saskatoon has been the star for the last couple of years due to better prospects in the province as well as returnees from Alberta coming back and plunking their money down on real estate.

Nope. The single biggest factor in the leap in Saskatoon prices has been Alberta investors buying houses that can still show a positive or even neutral cash flow. Those days are pretty much gone in Alberta, but still possible in some parts of SK.

Don't believe me, ask any realtor there.

Much the same in the Okanagan for recreation properties and much of Vancouver Island.

[ScottSA]

Nope. The single biggest factor in the leap in Saskatoon prices has been Alberta investors buying houses that can still show a positive or even neutral cash flow. Those days are pretty much gone in Alberta, but still possible in some parts of SK.

Don't believe me, ask any realtor there.

Much the same in the Okanagan for recreation properties and much of Vancouver Island.

It's drying up in the OK...my wife's daughter had a wait a whole month to sell, and had to drop $5000. Last year at this time the listing was just a formality to provide a starting point from which buyers would bid upwards.

[jdobbin]

Nope. The single biggest factor in the leap in Saskatoon prices has been Alberta investors buying houses that can still show a positive or even neutral cash flow. Those days are pretty much gone in Alberta, but still possible in some parts of SK.

Don't believe me, ask any realtor there.

Investors don't account for Saskatoon's rise in population in the last year. People are actually buying and moving into properties not just buying them and renting them out.

http://www.canadaeast.com/business/article/73625

Record-high prices were recorded in Saskatoon, where the average price of a resale home was $253,000, a 56.4 per cent increase from the same period last year.

...Saskatoon and Regina are seeing real housing booms due to a population influx...

[jbg]

If St. John's is doing so good, they can afford to stop milking poor Ontario tax payers in equalisation for a bit, hey.

That would get Danny Boy "flippin' mad", wouldn't it?

[fellowtraveller]

Investors don't account for Saskatoon's rise in population in the last year.

I didn't say they did, I told you that they were the main reason behind the big bump in sales and prices.

News flash: people can move without buying a house....

And who do you think is moving back to SK and Manitoba?

Skilled workers who command a big buck in trades in AB and BC, or people who just can't make enough to thrive because they have no skills?

And would those folks be more likely to rent or buy in SK.

Or, just ask any realtor in saskatoon where all the gravy is coming from.

He or she will tell you what I just did.

[jdobbin]

I didn't say they did, I told you that they were the main reason behind the big bump in sales and prices.

News flash: people can move without buying a house....

And who do you think is moving back to SK and Manitoba?

Skilled workers who command a big buck in trades in AB and BC, or people who just can't make enough to thrive because they have no skills?

And would those folks be more likely to rent or buy in SK.

Or, just ask any realtor in saskatoon where all the gravy is coming from.

He or she will tell you what I just did.

Here is what was in the Globe today: Saskatoon is a boom city.

http://www.theglobeandmail.com/servlet/sto...y/National/home

It used to be hard to find anyone in Saskatoon who would speak ill of this tranquil city on the south Saskatchewan River. It might not have been as well-heeled as other centres, but it was a pretty place, a city of bridges, somewhere you could afford to buy a house, you knew your neighbours, and could drive clear across town in 10 minutes.

Now business is good, house prices are soaring and a new sense of confidence has taken hold. Saskatoon is officially a boomtown, and that's where the complaints begin.

"When they use the phrase, 'Saskatoon is the new Calgary,' there's a lot that goes with that," said Tony Bassett, 37, a communications manager who has lived in the city for 15 years.

"The roads issue is going through the roof, because the infrastructure is just not able to handle the growth. The city is really struggling to keep its head above water."

For the first time in more than a decade, more people are moving to Saskatchewan than leaving. Saskatoon has been the primary beneficiary of that growth, as uranium, potash, oil and gas, and record wheat prices have all fuelled the city's resurgence.

The Conference Board of Canada said last week that Saskatoon, population 202,000, would have the country's fastest growing economy this year, knocking Calgary from the top spot.

[jbg]

Skilled workers who command a big buck in trades in AB and BC, or people who just can't make enough to thrive because they have no skills?

And would those folks be more likely to rent or buy in SK.

The same sorts of people that return to the fisshing outports of Newfoundland. People who want to try their luck in Saskatchewan's booming seal and whale slaughter.

[Shakeyhands]

I think its great that the "West" is booming, not sure where all this regionalism comes from, I can't say as though I have ever begrudged the success of any province. Think back to that great quote from Trudeau

Canada will be a strong country when Canadians of all provinces feel at home in all parts of the country, and when they feel that all Canada belongs to them.

Any success in this country should be celebrated across it.

[jdobbin]

The same sorts of people that return to the fisshing outports of Newfoundland. People who want to try their luck in Saskatchewan's booming seal and whale slaughter.

I suppose they could go to New York and own one of those fine banana plantations too.

[jbg]

I suppose they could go to New York and own one of those fine banana plantations too.

New York isn't quite that warm. None other than Rick Mercer touted Saskatchewan's maritime charms to Americans.

[jdobbin]

New York isn't quite that warm. None other than Rick Mercer touted Saskatchewan's maritime charms to Americans.

I suppose that's true. But for rich Albertans, I hear New Yorkers are always willing to sell bridges to them.

[Rovik]

St. John's is not Newfoundland, one city does not make a province. St. John's is getting the bulk of the benefits of the offshore oil. Most other parts of the province are not seeing any direct benefits. One way the province is trying to help these other parts of Newfoundland is to maximize the benefits from the offshore including increasing royalties so they would have extra money to maintain infrastructure and healthcare and education standards in these other parts of Newfoundland.

If St. John's is doing so good, they can afford to stop milking poor Ontario tax payers in equalisation for a bit, hey.

[Rovik]

One thing you should know. There is no whaling fishery in Newfoundland, not since 1972. In fact, whale-watching is playing a big part in Newfoundland's tourism. Perhaps you shouldn't have given the impression that whaling is going on in Newfoundland when it hasn't in a long time.

Second, the seal hunt is a regulated hunt with set quotas. The seal population is at very healthy levels in fact. With your logic, perhaps you are also against moose and caribou hunting..maybe even snaring rabbits and shooting ducks for consumption. In addtion, the seals are killed much more humanely then what they do to chickens and cows, before they are killed to be sold as burgers or fried chicken at fast food joints. Have you ever saw chickens been force fed to fatten them up quicker; not very pretty.

For all those who put down the seal hunt yet eat burgers and chicken dinners, as far as I am concerned, they are hypercrites.

The same sorts of people that return to the fisshing outports of Newfoundland. People who want to try their luck in Saskatchewan's booming seal and whale slaughter.

[jbg]

One thing you should know. There is no whaling fishery in Newfoundland, not since 1972. In fact, whale-watching is playing a big part in Newfoundland's tourism. Perhaps you shouldn't have given the impression that whaling is going on in Newfoundland when it hasn't in a long time.

Second, the seal hunt is a regulated hunt with set quotas. The seal population is at very healthy levels in fact.

**********

For all those who put down the seal hunt yet eat burgers and chicken dinners, as far as I am concerned, they are hypercrites.

The Saskatchewan seal hunts and whale watching are far superior, according to a CBC newman I talked to.