Bank of canada says recession over

[VanIsle]

OTTAWA - The Bank of Canada is declaring the recession essentially over in Canada.
The central bank says the economy will expand by 1.3 per cent during the summer months after three straight quarters of sharp contraction. The new forecast puts Canada at the front of the line of countries that are coming out of what economists have called the worst global recession since the Second World War.
The central bank predicts Canada's rebound will more than double that of the United States next year with a projected growth of three per cent, as opposed to 1.4 per cent south of the border.
That's because Canadian consumers are more confident of future conditions and better positioned to return to spending.
But the U.S. economy is also in a healing phase, the bank adds, and that will revive Canada's export sector, particularly in autos and forestry.

 

[strange]

Hope so. They've kind of been feeding us from the trough of - in the bast case- good intentions - worse case- well manicured falsehoods. Unemployment is pretty high and although we're not feeling it like our neighbors to the south i hope it's disingenuous to claim that the recession, as far as we're concerned is over. Also what does the central bank have to lose by projecting that?

 

[Liberalman]

the bank stocks are going up the stimulis worked

 

[sirlorenzo]

Once the car makers come back and the plants are full again, then we can call it over.

 

[Stretch]

be careful its mot a dead cat bounce...............

 

[AnnaG]

And then in a few years, we can look forward to it all happening again.The money people don't want change.
The banks will still be making billions, the gov'ts will still want taxes, people will still abuse the world, and another crunch will happen, the banks will whine because their profits are halved, the gov'ts will dole out more to the big outfits and let the little guys hit the shaft, etc.

 

[taxslave]

And then in a few years, we can look forward to it all happening again.The money people don't want change.
The banks will still be making billions, the gov'ts will still want taxes, people will still abuse the world, and another crunch will happen, the banks will whine because their profits are halved, the gov'ts will dole out more to the big outfits and let the little guys hit the shaft, etc.

I don't know about you but I would be happy with half of any Canadian banks profits.

 

[SirJosephPorter]

I don't know about you but I would be happy with half of any Canadian banks profits.

Taxslave, I have told people many items when they moan and groan about bank profits. Buy bank stocks. You won’t grumble about bank profits any more, to the contrary, you would want them to make more profit.

I have been investing in Canadian banks since 1994 and I have done very well out of it. I remember buying Royal bank for 7.5 and BMO for 15 dollars in 1994. The latest quote for Royal is 50.06 and for BMO 50 dollars. This is capital gains only, this does not include the substantial amount of dividend I collected since 1994.

It is fashionable to complain about the banks. However, our banks were the bulwark which sustained the economy during the recession. Unlike most previous recessions (where if USA caught cold, we would get pneumonia), we suffered a lot less than Americans this time, and I think Canadian banks were largely responsible for that.

 

[SirJosephPorter]

I am cautiously optimistic that the worst is over. Housing numbers look good in USA, stock market is on the rebound and we may be (touch wood!) coming out of the recession.

As to unemployment, I don’t see that coming down for six months or a year. Unemployment is a trailing indicator of the economic state of a country (stock market is a leading indicator). Unemployment is usually last to rebound.

But there are signs of hope, that the worst meltdown since the Great Depression (incidentally, both caused by Republican presidents) may at last show the signs of fading away.

[FONT=&quot]But we will know for sure only when unemployment starts coming down[/FONT]

 

[Toro]

I'm a little more cautious. We may be nearing the technical end of the recession but I think there is a significant chance we could slip back in next year or the year after.

There are still too many imbalances in the global economy and too much credit out there. Much of the rise has been driven by mind-boggling actions by the authorities which will either have enormous secondary effects down the road - from which the government might not be able to save us - or the effects of withdrawing all the liquidity will be to cap growth for years to come.

Either way, it is not good. There is still too much liquidity in the world, and I believe the responses will cause everything to end badly.

 

[AnnaG]

I don't know about you but I would be happy with half of any Canadian banks profits.

lol I can't remember which one it was but they had almost 1.5 billion in profits just a few years ago. You'd settle for half that? lol
I'd settle for 1% of that. lol UPDATE 1-Royal Bank of Canada profit climbs 19 percent | Reuters
Kinda makes you wonder if they make profits like that, why do they whine and snivel and hold their hands out to gov't when economies get ugly. What the heck do they do with the profits once they get them? They don't save for a rainy day? Nuts!

 

[Nuggler]

the bank stocks are going up the stimulis worked

There was no stimulus for Cdn. banks.

Not needed.

You shoulda bought TD at 32...............or BNS at,,,,,,,,,,,,,I forget

Cheep anyways.

Both of them have added $20.00 to their bottom.

WE gotsum

Gonna sell soon, as this ain't over yet.

Think???

 

[SirJosephPorter]

lol I can't remember which one it was but they had almost 1.5 billion in profits just a few years ago. You'd settle for half that? lol
I'd settle for 1% of that. lol UPDATE 1-Royal Bank of Canada profit climbs 19 percent | Reuters
Kinda makes you wonder if they make profits like that, why do they whine and snivel and hold their hands out to gov't when economies get ugly. What the heck do they do with the profits once they get them? They don't save for a rainy day? Nuts!

You have your facts confused Anna, Canadian banks have never done that. All the bailouts that you read about were for US banks, they were in terrible shape.

Canadian banks have always been in sound shape, they never needed government bailout. A few months ago IMF rated all the banks in the world, they concluded that Canadian banks were No. 1, the best in the world (Swedish banks were no. 2, US banks ranked no. 40).

So you are confusing Canadian banks with US banks. It is the US banks which needed the bailout, not Canadian banks.

 

[SirJosephPorter]

You shoulda bought TD at 32...............or BNS at,,,,,,,,,,,,,I forget

Cheep anyways.

You could have bought any of them and made a handsome profit, Nuggler. I bought BMO, CIBC and Royal banks in the east year; they have all gone up quite substantially.

Canadian banks are good, solid, long term investments giving both dividends and capital gains.

 

[AnnaG]

You have your facts confused Anna, Canadian banks have never done that. All the bailouts that you read about were for US banks, they were in terrible shape.

Canadian banks have always been in sound shape, they never needed government bailout. A few months ago IMF rated all the banks in the world, they concluded that Canadian banks were No. 1, the best in the world (Swedish banks were no. 2, US banks ranked no. 40).

So you are confusing Canadian banks with US banks. It is the US banks which needed the bailout, not Canadian banks.

Ok, I can admit when I am wrong. Either way, though, banks are usurious. We have stock, too, but that can't keep us from doing a little math with the $1.50 per trans at an ATM that isn't run by our banks among other "trivial" charges. Think how many millions that sucks out of our wallets in comparison to the few thousand it costs per machine plus maintenance. And then there's the credit cards they carry with the 20% per year PLUS the yearly charge for having the thing in your wallet. It's straight corporate greed. That's sure good for people isn't it? Meantime, food banks are in shortage because people don't have enough after taxes to buy food and stuff. The lucky ones of us middle class have two jobs to offset the taxes the gov'ts suck out of us. Yup, good system. It doesn't work simply because there are those that abuse it.

 

[AnnaG]

We used to have oil stock. We sold because we figured out that what we got in CGs and Divs didn't cover the fuel and oil we used in our vehicles, nor does the garbage do any good for the planet.
People's attitudes HAVE to change and start figuring out what is good for PEOPLE, not profit.

OK, ranting is over with.

 

[SirJosephPorter]

We have stock, too, but that can't keep us from doing a little math with the $1.50 per trans at an ATM that isn't run by our banks among other "trivial" charges. Think how many millions that sucks out of our wallets in comparison to the few thousand it costs per machine plus maintenance. And then there's the credit cards they carry with the 20% per year PLUS the yearly charge for having the thing in your wallet.

Anna, Canadian banks make the bulk of their money from the service charges. US banks made their money not from service charges (that was only a part of it), but from nefarious dealings such as sub prime lending. In the recent meltdown that model was proved horribly, disastrously wrong.

While American banks were in trouble and needed tens of billions of dollars of handout from the government, Canadian banks were standing tall, making profits (if somewhat down from before). That is the model that has proved successful.

Which would you rather do, pay 1.50 in ATM fees or pay 15 billion dollars to Royal Bank in bailout money? Other countries in the world (Ireland for instance) are trying to emulate the Canadian banking model.

Financially sound, well managed banks was one of the reasons the current meltdown did not hit us as hard as it did USA (or Iceland, Britain, if anything, British banks are in worse shape than American banks).

I for one don’t see anything wrong with the current banking model in Canada, it works.

 

[SirJosephPorter]

Anna, many of the bank charges are really fee for providing services that customer wants. There is nothing wrong in charging fair value for services rendered.

And nobody is forcing you to use ATM machine of some other bank. I never use ATM machine at all, never had any use for it. A couple of years ago my bank gave me a pin code to use ATM, it still remain unopened.

As to credit card, we always pay our bill in the time given, then we don’t pay any interest. I don’t care if the interest rate is 20% or 40%, it doesn’t affect me. I couldn’t even tell you what the interest rate on my credit cards is (I only make sure that annual fee is zero). If you are managing your household efficiently, soundly, you should not be carrying any credit card balances anyway.

Except for a checking account, none of the banking services are really necessary. I have only checking account and that is it, nothing more.

 

[Liberalman]

There was no stimulus for Cdn. banks.

Not needed.

You shoulda bought TD at 32...............or BNS at,,,,,,,,,,,,,I forget

Cheep anyways.

Both of them have added $20.00 to their bottom.

WE gotsum

Gonna sell soon, as this ain't over yet.

Think???

I got all those and when everybody was selling I hung on to mine just because I believed that saucy Irish Conservative MP.

We all have to remember that the Conservatives are wrong most of the time but sometimes they get it right

 

[kennyw98]

im telling you just trust obama give him some more time he works miracles he already fixed the problem here almost