Today's economy

Today’s economy media pack – 2009.08.07

By Kevin Press,

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More job losses, Dr. Doom’s double-dip and the great TFSA debate.

  • The Globe and Mail. Job losses deeper than feared. “The recession and the rain eliminated another 45,000 jobs in July, pushing the total job losses since the onset of the downturn to 414,000, Statistics Canada said.”
  • The National Post. Number of Canadian credit delinquents soars. “The number of Canadians falling behind on their credit card bills has soared 24% in the past year, a new report says.”
  • The Wall Street Journal. Dr. Doom sees double-dip recession risk, in remarks down under. “Advanced economies are showing signs of bottoming in response to massive financial and fiscal government stimulus but the global economy will stay in a recession until the end of the year, U.S. economist Nouriel Roubini said Monday in Kalgoorlie, Australia.”
  • The Financial Times. The Great Recession and the coming jobless recovery. “Confidence is slowly returning to the stock market and the S&P is back to the level it reached when President Obama took office in January. This is enough to prevent a further collapse in spending; the Obama stimulus package may even move us into positive territory for US gross domestic product growth. But these ‘green shoots of recovery’ are not enough to create the jobs needed to restore full employment in the US.”
  • The Canadian Finance Blog. Is the current market a return to normal? “I recently talked to Dr. Jean-Paul Rodrigue, from the Department of Economics & Geography at Hofstra University to discuss his research on business cycles and how it applies to our current economic situation. His work charted the phases of a bubble, based on hundreds of years of economic data.”
  • The Toronto Star. Even in an economic slump employees hold upper hand. “Canada’s economy could emerge from the recession this quarter, which means companies are facing a high-stakes challenge to ensure their employees stay motivated on the job.”
  • Ninja Forex. Canadian dollar slated to outperform other commodity currencies. “I’d like to use today’s post to look at another commodity currency – the Canadian Dollar. The Loonie, it turns out, has also benefited from the a recovery in risk appetite and concomitant boom in commodity prices; it has appreciated by 7% against the USD in the last month alone, en route to a ten-month high.”
  • Million Dollar Journey. Currency exchange – getting the best deal. “With the Canadian dollar again making an aggressive move towards parity with the U.S. Dollar, deal seeking Canadians are probably looking to pick up some of the cheap greenback. One hurdle though when purchasing USD are the fees involved.”
  • Canada Personal Finance Website. Do Canadians pay more? “Canadian shoppers are used to something of a price difference between shopping domestically and journeying south of the border to pick up some purchases. For various reasons, the dollar goes further in the States even when taking into account the exchange rate, and this has been known to drive some Canadians to visit family in the States, just happening to do a lot of high-value shopping while there. But just recently this price gap has leveled considerably, according to a study carried out recently.”
  • News N Economics. The oddities of this recession. “It is not a rule that the personal saving rate rises during a recession, just in this one. Take a look at the cumulative trajectory of the personal saving rate for this Great Recession compared to its predecessors, as represented by the ‘average recession’ since 1960.”
  • The New York Times. In with ‘recession,’ out with ‘depression.’ “Last winter, Americans were taking a crash course in the history of the Great Depression, with magazines, newspapers and television giving us a stream of stories and information about the calamities of the 1930’s. But in the last few months, that talk has mostly stopped.”
  • Econbrowser. Comparing the current recession and the ‘1980-82 recession.’ “At least one observer has argued that the current recession is not as bad as that of the 1980-82 recession.”
  • Four Pillars. How to value real estate. “Valuation of real estate properties is quite difficult – in fact it can really only be done within a fairly broad range since in my opinion it is just too hard to try to accurately predict the sale price of a house.”
  • Smart Girl Nation. The elephant in the room – inflation. “In today’s economy, with unemployment continuing to climb, leading economists don’t see a risk of inflation until 2011 or 2012. Of course, in the past, the economy was never injected with 800 billion dollars worth of adrenaline. It’s quite conceivable that a 7% unemployment rate may be the new 5%, given the current economic money supply.”
  • The Money Stop. Which age group has been most affected by the recession? “Although everyone has been affected by the recession in some way, recent research points to the fact that those between the ages of 45 and 60 have been hardest hit.”
  • The Financial 2 things I would do with my TFSA account. “We just entered August this week and you haven’t opened your TFSA account? What are you waiting for?”
  • The National Post. Retroactive TFSA room. “Malcolm Hamilton says Ottawa should give boomers retroactive TFSA room.”
  • Canadian Capitalist. Seven reasons why retroactive TFSA room isn’t such a good idea. “According to Mr. Hamilton, the move would help Canadians save more in a tax efficient manner to make up for the bear market losses just as defined benefit programs are allowed to boost contributions to make up for a pension plan shortfall. Here’s why I think this isn’t such a great idea after all.”

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P.S. On Monday, check out a guest post I’ve written at The Financial

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