November 2009
- Thread starter Ally
- Start date
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Real Estate Industry weighs Outsider Listings Access
Wesley Brown was so sure his Calgary home – with its "spacious working kitchen and extremely large yard with soothing pond focal point" – would sell itself that he didn`t bother to hire a real estate
agent.
Two quiet weeks later, he realized he`d made a mistake. Without an agent, the property couldn`t appear on the Multiple Listing Service
– an Internet service run by the Canadian Real Estate Association that is responsible for about 90 per cent of all home sales in Canada.
The four-bedroom house is now for sale through an agent, with a price set at $529,000. It`s close to what he was asking, but he`ll make less as he pays a listing fee for the MLS service as well as a commission to his agent. With a typical 5 per cent fee, it means $26,460 less in his pocket.
"It`s a real numbers game, and that listing becomes really important if you`re going to get the eyeballs you need to get near your price," he said. "It`s really hard if you`re not on MLS."
The real estate industry has managed to keep the MLS system closed to non-agents ever since the Internet made it possible for anyone with a dial-up connection to post listings online.
Read the full article here.
Wesley Brown was so sure his Calgary home – with its "spacious working kitchen and extremely large yard with soothing pond focal point" – would sell itself that he didn`t bother to hire a real estate
agent. Two quiet weeks later, he realized he`d made a mistake. Without an agent, the property couldn`t appear on the Multiple Listing Service
– an Internet service run by the Canadian Real Estate Association that is responsible for about 90 per cent of all home sales in Canada. The four-bedroom house is now for sale through an agent, with a price set at $529,000. It`s close to what he was asking, but he`ll make less as he pays a listing fee for the MLS service as well as a commission to his agent. With a typical 5 per cent fee, it means $26,460 less in his pocket.
"It`s a real numbers game, and that listing becomes really important if you`re going to get the eyeballs you need to get near your price," he said. "It`s really hard if you`re not on MLS."
The real estate industry has managed to keep the MLS system closed to non-agents ever since the Internet made it possible for anyone with a dial-up connection to post listings online.
Read the full article here.
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Real Estate Fees could be slashed
Canadians in the housing market will pay less in realty commissions and fees if the federal Competition Bureau has its way.
In a landmark investigation, the bureau has concluded the Canadian Real Estate Association has anti-competitive rules and must change its ways, according to documents obtained by the Star.
Details of a settlement have yet to be decided, but the bureau`s findings are expected to have a profound impact on the real estate industry – by permitting more innovative discount brokers into the market while allowing sellers to list their properties less expensively on the Multiple Listing Service.
With a membership of more than 96,000, Ottawa-based CREA is the largest real estate organization in Canada and represents the majority of the nation`s realtors.
"The Bureau is concerned that CREA`s rules have restricted consumer choice and limited the scope of alternative business models," says an internal memo by CREA president Dale Ripplinger. "Unfortunately, the Bureau seems to believe that CREA`s rules ... create restrictions and barriers."
Read the full article here.
Canadians in the housing market will pay less in realty commissions and fees if the federal Competition Bureau has its way.
In a landmark investigation, the bureau has concluded the Canadian Real Estate Association has anti-competitive rules and must change its ways, according to documents obtained by the Star.
Details of a settlement have yet to be decided, but the bureau`s findings are expected to have a profound impact on the real estate industry – by permitting more innovative discount brokers into the market while allowing sellers to list their properties less expensively on the Multiple Listing Service.
With a membership of more than 96,000, Ottawa-based CREA is the largest real estate organization in Canada and represents the majority of the nation`s realtors.
"The Bureau is concerned that CREA`s rules have restricted consumer choice and limited the scope of alternative business models," says an internal memo by CREA president Dale Ripplinger. "Unfortunately, the Bureau seems to believe that CREA`s rules ... create restrictions and barriers."
Read the full article here.
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EI Proposal is about Fairness
`The other parties will be kicking themselves that they didn`t think of it first," chuckled Michael Prince, a professor of social policy at the University of Victoria.
He was referring to new legislation to extend some Employment Insurance benefits to self-employed Canadians the Conservatives will introduce in Parliament today.
The new legislation is a textbook example of the strategy that has delivered Stephen Harper two election victories and provides a model Michael Ignatieff`s Liberals would do well to adopt -- namely, the tailoring of policy to attract specific clusters of voters.
While some of the specifics are still under wraps, enough is known to suggest the new provisions will appeal to key audiences the Conservatives covet -- for example, middle-aged men not covered by sickness benefits like the 50-year-old roofer who worries about falling off a ladder; and younger self-employed women who have delayed having a family for want of maternity or paternity benefits.
The extension of EI to the self-employed will not cover "regular" Employment Insurance -- that is, payments received when a worker loses his or her job. But the new policy will extend to "special" EI -- maternity, paternity, sickness and compassionate benefits -- on a voluntary basis.
Read the full article here.
`The other parties will be kicking themselves that they didn`t think of it first," chuckled Michael Prince, a professor of social policy at the University of Victoria.
He was referring to new legislation to extend some Employment Insurance benefits to self-employed Canadians the Conservatives will introduce in Parliament today.
The new legislation is a textbook example of the strategy that has delivered Stephen Harper two election victories and provides a model Michael Ignatieff`s Liberals would do well to adopt -- namely, the tailoring of policy to attract specific clusters of voters.
While some of the specifics are still under wraps, enough is known to suggest the new provisions will appeal to key audiences the Conservatives covet -- for example, middle-aged men not covered by sickness benefits like the 50-year-old roofer who worries about falling off a ladder; and younger self-employed women who have delayed having a family for want of maternity or paternity benefits.
The extension of EI to the self-employed will not cover "regular" Employment Insurance -- that is, payments received when a worker loses his or her job. But the new policy will extend to "special" EI -- maternity, paternity, sickness and compassionate benefits -- on a voluntary basis.
Read the full article here.
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CMHC Important for Canada
Re: CMHC Bubble 100% Made In Canada, Diance Francis, Oct. 22.
I would like to express our disappointment regarding Diane Francis` column, and take this opportunity to clarify CMHC`s important role within the Canadian housing sector.
CMHC, as well as Canadian financial institutions, apply stringent requirements at all levels of down payments to ensure borrowers are able to manage their debts prudently within the minimum requirements for insured loans.
There are fundamental differences between the Canada and U.S. housing markets. A lack of sub-prime issues, strong economic fundamentals and low interest rates have all contributed to a stable housing market in this country.
Also, the Government of Canada action to limit amortization periods to 35 years and requiring a minimum 5% down payment further protects and strengthens the Canadian housing market.
As part of CMHC`s commitment to support affordable housing for all Canadians, CMHC is Canada`s only provider of mortgage loan insurance for large multi-unit residential properties, including rental developments, retirement residences and nursing homes. These mortgages also form part of our total insured mortgages. While CMHC is able to insure up to $600-billion in mortgages, it currently insures $480-billion.
CMHC maintains capital reserves and premium reserves for future losses in accordance with guidelines set out by the Office of the Superintendent of Financial Institutions (OSFI), Canada`s mortgage insurance regulator. In fact, CMHC maintains capital reserves that are twice the minimum required by OSFI.
CMHC is subject to stringent government oversight, including annual independent financial audits and periodic economic and reporting requirements to Parliament in accordance with the Financial Administration Act.
Unlike many other countries, Canada`s prudent lending and mortgage insurance practices have allowed Canadians to continue to enjoy the benefits of homeownership.
Karen Kinsley, President and CEO, Canada Mortgage and Housing Corporation.
Re: CMHC Bubble 100% Made In Canada, Diance Francis, Oct. 22.
I would like to express our disappointment regarding Diane Francis` column, and take this opportunity to clarify CMHC`s important role within the Canadian housing sector.
CMHC, as well as Canadian financial institutions, apply stringent requirements at all levels of down payments to ensure borrowers are able to manage their debts prudently within the minimum requirements for insured loans.
There are fundamental differences between the Canada and U.S. housing markets. A lack of sub-prime issues, strong economic fundamentals and low interest rates have all contributed to a stable housing market in this country.
Also, the Government of Canada action to limit amortization periods to 35 years and requiring a minimum 5% down payment further protects and strengthens the Canadian housing market.
As part of CMHC`s commitment to support affordable housing for all Canadians, CMHC is Canada`s only provider of mortgage loan insurance for large multi-unit residential properties, including rental developments, retirement residences and nursing homes. These mortgages also form part of our total insured mortgages. While CMHC is able to insure up to $600-billion in mortgages, it currently insures $480-billion.
CMHC maintains capital reserves and premium reserves for future losses in accordance with guidelines set out by the Office of the Superintendent of Financial Institutions (OSFI), Canada`s mortgage insurance regulator. In fact, CMHC maintains capital reserves that are twice the minimum required by OSFI.
CMHC is subject to stringent government oversight, including annual independent financial audits and periodic economic and reporting requirements to Parliament in accordance with the Financial Administration Act.
Unlike many other countries, Canada`s prudent lending and mortgage insurance practices have allowed Canadians to continue to enjoy the benefits of homeownership.
Karen Kinsley, President and CEO, Canada Mortgage and Housing Corporation.
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Gold surges to new heights
U.S. gold futures on the COMEX division of the New York Mercantile Exchange also hit record highs at $1,096.20 an ounce.
"At the moment, there is technical buying on the back of yesterday`s rally in the aftermath of the IMF/India transaction," said Alexander Zumpfe, a trader at Heraeus.
"The transaction... reduced the amount of gold that can be sold under the CBGA by 50 per cent for the first year.
"Technically, it is looking good and it seems like the market wants to test $1,100 now," he added.
The International Monetary Fund said on Tuesday it had sold 200 tonnes of gold to the Reserve Bank of India for $6.7-billion, quietly executing half of a long-planned bullion sale that had threatened to slow gold`s ascent.
Read the full article here.
U.S. gold futures on the COMEX division of the New York Mercantile Exchange also hit record highs at $1,096.20 an ounce.
"At the moment, there is technical buying on the back of yesterday`s rally in the aftermath of the IMF/India transaction," said Alexander Zumpfe, a trader at Heraeus.
"The transaction... reduced the amount of gold that can be sold under the CBGA by 50 per cent for the first year.
"Technically, it is looking good and it seems like the market wants to test $1,100 now," he added.
The International Monetary Fund said on Tuesday it had sold 200 tonnes of gold to the Reserve Bank of India for $6.7-billion, quietly executing half of a long-planned bullion sale that had threatened to slow gold`s ascent.
Read the full article here.
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Loonie may drag on Job growth
OTTAWA -- The missing link in the U.S economic recovery -- job creation -- could materialize in the coming months, analysts say, after figures released Friday indicated the pace of layoffs has eased considerably even though the jobless rate soared past the 10% market to its highest level in more than a quarter century.
The Canadian picture, however, is not so clear, as Statistics Canada reported Friday the economy shed 43,200 jobs in October after two straight months of solid gains. The outlook is cloudy, economists suggest, as the stronger Canadian dollar drags on growth. Further, there are concerns that the services sector – which generated job growth through the recession – could be "bloated" and set for trimming.
The reports from the Canadian and U.S. data agencies provided both optimists and pessimists with plenty of ammunition to choose from.
In the United States, what attracted the most attention was the eye-popping 10.2% jobless rate for October, a climb from 9.8% last month and the highest level since 1982. Indeed, the rate has surged sharply from 4.9% at the start of the recession, and the 4.4% low in March of 2007.
Meanwhile, non-farm payrolls dropped 190,000 jobs in October. Of note, however, was that August and September data were revised and, as a result, 91,000 jobs were added. Average monthly non-farm payrolls are now falling at half the pace that they were earlier in the year, and at a far cry from the 700,000-plus plunge recorded in January
Read the full article here.
OTTAWA -- The missing link in the U.S economic recovery -- job creation -- could materialize in the coming months, analysts say, after figures released Friday indicated the pace of layoffs has eased considerably even though the jobless rate soared past the 10% market to its highest level in more than a quarter century.
The Canadian picture, however, is not so clear, as Statistics Canada reported Friday the economy shed 43,200 jobs in October after two straight months of solid gains. The outlook is cloudy, economists suggest, as the stronger Canadian dollar drags on growth. Further, there are concerns that the services sector – which generated job growth through the recession – could be "bloated" and set for trimming.
The reports from the Canadian and U.S. data agencies provided both optimists and pessimists with plenty of ammunition to choose from.
In the United States, what attracted the most attention was the eye-popping 10.2% jobless rate for October, a climb from 9.8% last month and the highest level since 1982. Indeed, the rate has surged sharply from 4.9% at the start of the recession, and the 4.4% low in March of 2007.
Meanwhile, non-farm payrolls dropped 190,000 jobs in October. Of note, however, was that August and September data were revised and, as a result, 91,000 jobs were added. Average monthly non-farm payrolls are now falling at half the pace that they were earlier in the year, and at a far cry from the 700,000-plus plunge recorded in January
Read the full article here.
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The Housing Bust - The Final Chapter
11/05/09 Gaithersburg, Maryland – I was in New York earlier in the week for the Value Investing Congress. Among the more valuable presentations were those of Sean Dobson at Amherst Securities and Whitney Tilson and Glenn Tongue of T2 Partners.
They were valuable because they helped frame where we are in the mortgage crisis, which has been the main shark in the water over the past couple of years. You should know where that shark is and whether or not it is hungry. The chart below shows you the ferocious fish may still have an appetite.
It shows you that we are past the viscous subprime crisis, when that shark chewed through the balance sheets of a number of banks and financial institutions, in some cases devouring them whole. However, it is not yet safe to get back in the water.
There are these other slices of mortgages that are not quite as risky as subprime that reset in the next couple of years. Years 2010 and 2011 face big resets in so-called Alt-A and Option ARM loans. What this means is more write-downs and more losses for banks and others who hold these mortgages.
Making all this worse is the fact that the housing has not yet recovered. The T2 duo made the case that the current "stabilization" of the housing market is a head fake. Mostly, it`s due to huge government support of the housing market. But there is still a large inventory of homes out there. And with these resets coming due, we`ve still got a large amount of foreclosures on the horizon.
Read the full article here.
11/05/09 Gaithersburg, Maryland – I was in New York earlier in the week for the Value Investing Congress. Among the more valuable presentations were those of Sean Dobson at Amherst Securities and Whitney Tilson and Glenn Tongue of T2 Partners.
They were valuable because they helped frame where we are in the mortgage crisis, which has been the main shark in the water over the past couple of years. You should know where that shark is and whether or not it is hungry. The chart below shows you the ferocious fish may still have an appetite.
It shows you that we are past the viscous subprime crisis, when that shark chewed through the balance sheets of a number of banks and financial institutions, in some cases devouring them whole. However, it is not yet safe to get back in the water.
There are these other slices of mortgages that are not quite as risky as subprime that reset in the next couple of years. Years 2010 and 2011 face big resets in so-called Alt-A and Option ARM loans. What this means is more write-downs and more losses for banks and others who hold these mortgages.
Making all this worse is the fact that the housing has not yet recovered. The T2 duo made the case that the current "stabilization" of the housing market is a head fake. Mostly, it`s due to huge government support of the housing market. But there is still a large inventory of homes out there. And with these resets coming due, we`ve still got a large amount of foreclosures on the horizon.
Read the full article here.
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In Texas, Oilsands Firms fight for their share
here is an air of disquiet along the Gulf Coast of the United States, an industrial strip that could have a profound influence on the future of Canada`s oil-fuelled economy.
The refineries that dot the coast represent a major new market that could fuel the expansion of Canada`s oil sands
producers, as well as a major pipeline player. And indeed, on the surface, growth appears to be the order of the day. But after a brief golden age, there is a growing fear along refiners` alley that the bubble has burst.
In the muddy fields adjacent to Motiva Enterprises LLC`s sprawling Port Arthur refinery, teams of contractors toil on stainless steel vessels and refining modules that resemble so many giant Lego pieces, all waiting for assembly in a $7-billion (U.S.) expansion of the plant.
Motiva – a joint venture
between Royal Dutch Shell PLC and state-owned Saudi Aramco – is doubling its refining capacity to 600,000 barrels a day. The site will also add a coker so it can process the heavy grades of crude, such as bitumen from Canada`s oil sands, that make up a growing share of the world`s oil supply.
Because the U.S. is the only export market for Canadian crude, expanded U.S. refineries like Motiva`s are key to Alberta`s ambitions to double, or even triple, oil sands production over the next decade.
Read the full article here.
here is an air of disquiet along the Gulf Coast of the United States, an industrial strip that could have a profound influence on the future of Canada`s oil-fuelled economy.
The refineries that dot the coast represent a major new market that could fuel the expansion of Canada`s oil sands
producers, as well as a major pipeline player. And indeed, on the surface, growth appears to be the order of the day. But after a brief golden age, there is a growing fear along refiners` alley that the bubble has burst.In the muddy fields adjacent to Motiva Enterprises LLC`s sprawling Port Arthur refinery, teams of contractors toil on stainless steel vessels and refining modules that resemble so many giant Lego pieces, all waiting for assembly in a $7-billion (U.S.) expansion of the plant.
Motiva – a joint venture
between Royal Dutch Shell PLC and state-owned Saudi Aramco – is doubling its refining capacity to 600,000 barrels a day. The site will also add a coker so it can process the heavy grades of crude, such as bitumen from Canada`s oil sands, that make up a growing share of the world`s oil supply.Because the U.S. is the only export market for Canadian crude, expanded U.S. refineries like Motiva`s are key to Alberta`s ambitions to double, or even triple, oil sands production over the next decade.
Read the full article here.
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Canadian Home Builders scramble to meet demand
The Canadian housing market`s surprising turnaround is spreading to new home construction as developers scramble to respond to a supply shortage that has sent pricing soaring for existing homes.
But any increase in construction on the new home side will likely not surface fast enough to feed the demand for housing that continues to be spurred on by record low interest rates.
Canada Mortgage and Housing Corp. said Monday there were 157,300 units constructed last month on a seasonally adjusted annualized basis, a 5.4% increase from a month earlier. Annualized starts at dropped as low as 118,500 in April.
"There is not a lot of inventory around," said Gary Friend, president of the Canadian Home Builders` Association, adding his industry has been careful not to speculate. "We have to watch our Ps and Qs, as we try to meet this demand."
Any increase in supply would be welcomed as a shortage of new listings has lead to a spike in prices. The Canadian Real Estate Association said last month existing home prices across the country were up 13.6% in September from a year ago as a supply problem was evident in almost every city.
Read the full article here.
The Canadian housing market`s surprising turnaround is spreading to new home construction as developers scramble to respond to a supply shortage that has sent pricing soaring for existing homes.
But any increase in construction on the new home side will likely not surface fast enough to feed the demand for housing that continues to be spurred on by record low interest rates.
Canada Mortgage and Housing Corp. said Monday there were 157,300 units constructed last month on a seasonally adjusted annualized basis, a 5.4% increase from a month earlier. Annualized starts at dropped as low as 118,500 in April.
"There is not a lot of inventory around," said Gary Friend, president of the Canadian Home Builders` Association, adding his industry has been careful not to speculate. "We have to watch our Ps and Qs, as we try to meet this demand."
Any increase in supply would be welcomed as a shortage of new listings has lead to a spike in prices. The Canadian Real Estate Association said last month existing home prices across the country were up 13.6% in September from a year ago as a supply problem was evident in almost every city.
Read the full article here.
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Canada faces Decade of slow growth, TD warns
OTTAWA -- Even though there are recent signs of a recovery, the recession is likely to leave its legacy on Canada`s economy for the coming decade as growth in household and government incomes is set to slow considerably from historical norms, economists at Toronto-Dominion Bank warned Tuesday.
The sobering outlook, they said, was partly attributed to the time it will take to absorb a vast amount of unused capacity this recession has created. Further, the ageing population will lead to a smaller labour force, and Canada`s record suggests the country cannot produce the productivity gains needed to offset this development.
"This presents a `new normal` for the budgets of households and governments, as well as the returns on domestic capital investment," said the economists, Grant Bishop and Derek Burleton.
"Without attention to Canada`s languishing performance in technological innovation, a renewed emphasis on building a highly-skilled workforce, and a reduction in the regulatory barriers to competition, productivity growth will continue to stagnate relative to our international peers."
The TD report focuses on Canada`s potential growth, or the amount an economy can expand without generating inflation concerns. The economy can perform above its potential in the short-to-medium term, but accomplishes this heightened output by employing labour and capital beyond their optimum levels.
Read the full article here.
OTTAWA -- Even though there are recent signs of a recovery, the recession is likely to leave its legacy on Canada`s economy for the coming decade as growth in household and government incomes is set to slow considerably from historical norms, economists at Toronto-Dominion Bank warned Tuesday.
The sobering outlook, they said, was partly attributed to the time it will take to absorb a vast amount of unused capacity this recession has created. Further, the ageing population will lead to a smaller labour force, and Canada`s record suggests the country cannot produce the productivity gains needed to offset this development.
"This presents a `new normal` for the budgets of households and governments, as well as the returns on domestic capital investment," said the economists, Grant Bishop and Derek Burleton.
"Without attention to Canada`s languishing performance in technological innovation, a renewed emphasis on building a highly-skilled workforce, and a reduction in the regulatory barriers to competition, productivity growth will continue to stagnate relative to our international peers."
The TD report focuses on Canada`s potential growth, or the amount an economy can expand without generating inflation concerns. The economy can perform above its potential in the short-to-medium term, but accomplishes this heightened output by employing labour and capital beyond their optimum levels.
Read the full article here.
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Canada won`t change rebound predictions: Carney
Governor Mark Carney said today there`s nothing in recent Canadian economic data that would change the "profile" of the Bank of Canada`s projections, even though they may suggest a "softer" recovery.
The sum of the data "suggests a somewhat softer third quarter, but again the profile of the recovery with growth strengthening into the fourth quarter and into 2010 I would say remains in place," Mr. Carney said.
The comments come after reports over the past two weeks that showed employment unexpectedly fell in October, and the economy contracted in August.
Mr. Carney spoke to reporters following a meeting of finance ministers and central bankers from the Group of 20 nations in St. Andrews, Scotland.
"We`re at a turning point in the economic cycle, is our expectation, and the beginnings of the return to growth," Mr. Carney said. "The data is going to be choppy."
Read the full article here.
Governor Mark Carney said today there`s nothing in recent Canadian economic data that would change the "profile" of the Bank of Canada`s projections, even though they may suggest a "softer" recovery.
The sum of the data "suggests a somewhat softer third quarter, but again the profile of the recovery with growth strengthening into the fourth quarter and into 2010 I would say remains in place," Mr. Carney said.
The comments come after reports over the past two weeks that showed employment unexpectedly fell in October, and the economy contracted in August.
Mr. Carney spoke to reporters following a meeting of finance ministers and central bankers from the Group of 20 nations in St. Andrews, Scotland.
"We`re at a turning point in the economic cycle, is our expectation, and the beginnings of the return to growth," Mr. Carney said. "The data is going to be choppy."
Read the full article here.
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Cash for Gold not exempt from Tax
It seems everywhere you look, there is someone lining up to buy all that unwanted gold you`ve been hoarding. It started last year with the pawn shops and jewellery stores, some of which have taken to running non-stop TV ads in local markets depicting smiling owners and customers excitingly waving stacks of cash.
No doubt the meteoric rise in the price of gold over the past year, which hit a record high this month, topping US$1,064 an ounce, has prompted people to consider turning their unworn gold jewellery into cold, hard cash.
Last week, I got invited to my first cash-for-gold party, where party-goers are asked to bring their unwanted gold for a free, no-obligation appraisal. These "parties" are promoted as win-win-win: The buyer gets the gold, the seller gets cash and the host collects up to 10% of the total transaction value that night.
If this sounds tempting, consider the tax consequences of selling your gold for cash. Here`s a quick review of the rules:
While a coin dealer who purchases gold coins from an individual has an obligation to report the sale to the CRA and issue a T5008 tax slip to the seller, there is no such reporting requirement for gold jewellery.
Read the full article here.
It seems everywhere you look, there is someone lining up to buy all that unwanted gold you`ve been hoarding. It started last year with the pawn shops and jewellery stores, some of which have taken to running non-stop TV ads in local markets depicting smiling owners and customers excitingly waving stacks of cash.
No doubt the meteoric rise in the price of gold over the past year, which hit a record high this month, topping US$1,064 an ounce, has prompted people to consider turning their unworn gold jewellery into cold, hard cash.
Last week, I got invited to my first cash-for-gold party, where party-goers are asked to bring their unwanted gold for a free, no-obligation appraisal. These "parties" are promoted as win-win-win: The buyer gets the gold, the seller gets cash and the host collects up to 10% of the total transaction value that night.
If this sounds tempting, consider the tax consequences of selling your gold for cash. Here`s a quick review of the rules:
While a coin dealer who purchases gold coins from an individual has an obligation to report the sale to the CRA and issue a T5008 tax slip to the seller, there is no such reporting requirement for gold jewellery.
Read the full article here.
- Joined
- Mar 24, 2009
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Peak Oil: Still headed for Train Wreck
I am neither an alarmist nor a conspiracy theorist, but I have been extremely concerned about Peak Oil since long before I took on the VIX a pet project. Now that I occasionally find myself as an unofficial source of all things VIX and volatility, it seems I am also perpetually on the lookout for storm clouds on the horizon.
Where will the next big threat come from? Commercial real estate? Failed Treasury auctions? The dollar? Pakistan?
According to The Guardian, a sure bet is Peak Oil. In Key Oil Figures Were Distorted by U.S. Pressure, Says Whistleblower, Terry Macalister reports that the International Energy Agency (IEA) has been deliberately publishing overly optimistic oil production capacity data, largely due to arm twisting by the U.S. government. Macalister quotes two different unnamed IEA sources, including one who assesses the situation as follows:
"The IEA in 2005 was predicting oil supplies could rise as high as 120 million barrels a day by 2030 although it was forced to reduce this gradually to 116 million and then 105 million last year. The 120 million figure always was nonsense but even today`s number is much higher than can be justified and the IEA knows this. Many inside the organization believe that maintaining oil supplies at even 90 million to 95 million barrels a day would be impossible but there are fears that panic could spread on the financial markets if the figures were brought down further. And the Americans fear the end of oil supremacy because it would threaten their power over access to oil resources."
Read the full article here.
I am neither an alarmist nor a conspiracy theorist, but I have been extremely concerned about Peak Oil since long before I took on the VIX a pet project. Now that I occasionally find myself as an unofficial source of all things VIX and volatility, it seems I am also perpetually on the lookout for storm clouds on the horizon.
Where will the next big threat come from? Commercial real estate? Failed Treasury auctions? The dollar? Pakistan?
According to The Guardian, a sure bet is Peak Oil. In Key Oil Figures Were Distorted by U.S. Pressure, Says Whistleblower, Terry Macalister reports that the International Energy Agency (IEA) has been deliberately publishing overly optimistic oil production capacity data, largely due to arm twisting by the U.S. government. Macalister quotes two different unnamed IEA sources, including one who assesses the situation as follows:
"The IEA in 2005 was predicting oil supplies could rise as high as 120 million barrels a day by 2030 although it was forced to reduce this gradually to 116 million and then 105 million last year. The 120 million figure always was nonsense but even today`s number is much higher than can be justified and the IEA knows this. Many inside the organization believe that maintaining oil supplies at even 90 million to 95 million barrels a day would be impossible but there are fears that panic could spread on the financial markets if the figures were brought down further. And the Americans fear the end of oil supremacy because it would threaten their power over access to oil resources."
Read the full article here.
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Housing Starts continue to rise
OTTAWA — New home construction in Canada rose 5.4 per cent in October as the housing market continued to show signs a recovery.
Canada Mortgage and Housing Corp. said Monday that 157,300 units were started in October, on a seasonally adjusted annual basis, up from 149,300 in the previous month.
Economists had expected housing starts to increase by between 155,000 and 158,800 units during the month.
"The improvement in housing starts in October is attributable to improvement in the multiple starts segment," Bob Dugan, CMHC`s chief economist, said Monday. "Despite a small decline in single home starts in October, the level of single home starts remains at its second highest level since October 2008."
Urban housing starts rose 5.2 per cent on an adjusted annual basis to 139,900 units last month, with multiple-unit construction jumping 13.8 per cent to 72,600 units. However , urban single-unit starts fell 2.7 per cent to 67,300 units in October.
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OTTAWA — New home construction in Canada rose 5.4 per cent in October as the housing market continued to show signs a recovery.
Canada Mortgage and Housing Corp. said Monday that 157,300 units were started in October, on a seasonally adjusted annual basis, up from 149,300 in the previous month.
Economists had expected housing starts to increase by between 155,000 and 158,800 units during the month.
"The improvement in housing starts in October is attributable to improvement in the multiple starts segment," Bob Dugan, CMHC`s chief economist, said Monday. "Despite a small decline in single home starts in October, the level of single home starts remains at its second highest level since October 2008."
Urban housing starts rose 5.2 per cent on an adjusted annual basis to 139,900 units last month, with multiple-unit construction jumping 13.8 per cent to 72,600 units. However , urban single-unit starts fell 2.7 per cent to 67,300 units in October.
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Housing Market to improve in 2010: CMHC forecast
OTTAWA — Canada`s national housing agency has upgraded its forecast for the new-housing market next year on the grounds that low mortgage rates will continue to make home ownership affordable, the economy will be better that previously thought and there will be a spillover effect from the surging resale market.
Housing starts are forecast to reach 141,900 in 2009 and rise to 164,900 next year, the Canada Mortgage and Housing Corp. said Monday in its quarterly outlook. This year`s forecast is unchanged from the previous one issued in September, but expectations for next year`s numbers increased from about 150,000.
Such levels still pale to 2008`s final tally of 211,056, which marked the seventh straight year of more than 200,000 housing starts.
Bob Dugan, chief economist at CMHC, said the earlier part of this decade was an "exceptional period," that is unlikely to be matched in the foreseeable future
He explained that average new-household creation in Canada runs at about 175,00 annually, and the elevated rate of housing starts seen between 2002 and 2008 was not sustainable for the long term given that reality.
Dugan said by 2011 or 2012, housing starts should be close to equal with the household-creation rate.
Read the full article here.
OTTAWA — Canada`s national housing agency has upgraded its forecast for the new-housing market next year on the grounds that low mortgage rates will continue to make home ownership affordable, the economy will be better that previously thought and there will be a spillover effect from the surging resale market.
Housing starts are forecast to reach 141,900 in 2009 and rise to 164,900 next year, the Canada Mortgage and Housing Corp. said Monday in its quarterly outlook. This year`s forecast is unchanged from the previous one issued in September, but expectations for next year`s numbers increased from about 150,000.
Such levels still pale to 2008`s final tally of 211,056, which marked the seventh straight year of more than 200,000 housing starts.
Bob Dugan, chief economist at CMHC, said the earlier part of this decade was an "exceptional period," that is unlikely to be matched in the foreseeable future
He explained that average new-household creation in Canada runs at about 175,00 annually, and the elevated rate of housing starts seen between 2002 and 2008 was not sustainable for the long term given that reality.
Dugan said by 2011 or 2012, housing starts should be close to equal with the household-creation rate.
Read the full article here.
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Canada`s Boreal Forest Top-rated Carbon Warehouse
The boreal forest stores more carbon than any land-based ecosystem on the planet, according to a new report that says the Amazon is no match for Canada`s boggy bush.
North America`s boreal forest contains nearly twice as much carbon per hectare as tropical forests, says the report by Canadian and American researchers. And Canada, home to the largest blocks of forest left on Earth, has by far, the lion`s share of the carbon, it says, and a responsibility to ensure it stays locked in trees, soils and peatlands.
"Canada is unique in the world with its carbon stores and its intact ecosystems," says Jeff Wells, of the Boreal Songbird Initiative, and lead author of the report by Canadian and U.S. groups pushing for inclusion of the boreal in upcoming climate talks in Copenhagen and for the forest`s protection.
It`s been endorsed by an international panel of leading scientists who write in a forward that it is "imperative that the world`s policy-makers and public now make a concerted effort to ensure that both the boreal forest and its vast stores of carbon remain intact."
The report says Canada` boreal region sweeping from Newfoundland across to the Yukon holds a staggering 208 billion tonnes of carbon, or the equivalent of 26 years of the world`s carbon emissions that spew into the atmosphere by burning fossil fuels.
Read the full article here.
The boreal forest stores more carbon than any land-based ecosystem on the planet, according to a new report that says the Amazon is no match for Canada`s boggy bush.
North America`s boreal forest contains nearly twice as much carbon per hectare as tropical forests, says the report by Canadian and American researchers. And Canada, home to the largest blocks of forest left on Earth, has by far, the lion`s share of the carbon, it says, and a responsibility to ensure it stays locked in trees, soils and peatlands.
"Canada is unique in the world with its carbon stores and its intact ecosystems," says Jeff Wells, of the Boreal Songbird Initiative, and lead author of the report by Canadian and U.S. groups pushing for inclusion of the boreal in upcoming climate talks in Copenhagen and for the forest`s protection.
It`s been endorsed by an international panel of leading scientists who write in a forward that it is "imperative that the world`s policy-makers and public now make a concerted effort to ensure that both the boreal forest and its vast stores of carbon remain intact."
The report says Canada` boreal region sweeping from Newfoundland across to the Yukon holds a staggering 208 billion tonnes of carbon, or the equivalent of 26 years of the world`s carbon emissions that spew into the atmosphere by burning fossil fuels.
Read the full article here.
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Canada`s dirty Oil needed a Market: UN Report
The world needs Canada`s so-called dirty oil, the International Energy Agency said Tuesday even as it called on leaders to make decisive moves to slash greenhouse gas emissions at a United Nations-sponsored negotiating session next month.
"World leaders gathering in Copenhagen next month for the UN Climate Summit have a historic opportunity to avert the worst effects of climate change," IEA executive director Nobuo Tanaka said in a statement after releasing the agency`s annual World Energy Outlook analysis.
The IEA, which is funded by and provides advice to Canada and 27 other industrialized countries, said lower emissions are needed not only to protect the environment but also to enhance energy security during a period of soaring demand.
Without concrete actions to limit emissions, primarily through efficiency measures and new technology, energy demand will jump by 40 per cent between now and 2030, the IEA said in its report.
Canada, with 178 billion barrels of proven oil reserves that ranks second only to Saudi Arabia, plays an important role on the supply side, the IEA said.
Read the full article here.
The world needs Canada`s so-called dirty oil, the International Energy Agency said Tuesday even as it called on leaders to make decisive moves to slash greenhouse gas emissions at a United Nations-sponsored negotiating session next month.
"World leaders gathering in Copenhagen next month for the UN Climate Summit have a historic opportunity to avert the worst effects of climate change," IEA executive director Nobuo Tanaka said in a statement after releasing the agency`s annual World Energy Outlook analysis.
The IEA, which is funded by and provides advice to Canada and 27 other industrialized countries, said lower emissions are needed not only to protect the environment but also to enhance energy security during a period of soaring demand.
Without concrete actions to limit emissions, primarily through efficiency measures and new technology, energy demand will jump by 40 per cent between now and 2030, the IEA said in its report.
Canada, with 178 billion barrels of proven oil reserves that ranks second only to Saudi Arabia, plays an important role on the supply side, the IEA said.
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William Watson: Fix Toronto by taxing all of us? No, thanks!
It is well understood across the country, though not necessarily in the city itself, that Toronto regards itself as the centre of the universe. In the city, they`re unaware of much of the rest of the universe. There`s just Tee-Oh itself, as most major national media, headquartered there, subtly reinforce. The Canadian version of the famous Saul Steinberg poster of New York would show Yonge Street, Bay Street, University, Spadina, then at roughly the same scale, the Prairies, the Rockies, the Pacific Ocean, China.
How validating to Torontonians, therefore, to learn that no less a world player than the OECD is now interested in such things as how long it takes to get from downtown to the airport, how green the Toronto Islands development is and whether the Leafs will ever improve (well, not actually that last bit). All the attention comes in a new report on Toronto previewed Tuesday in the Centre of the Universe by the Secretary-General of the OECD.
Like most big thinkers these days, Secretary-General Angel Gurria is mesmerized by the idea that cities contribute to economic growth. They are, as the saying goes, the engines, the motors of growth (even if the engine-and-motor economy so important to the Toronto region for so many decades now sputters and dies). Cities are "growth poles." You want growth? Get yourself more cities. Or help them in any way you can. Be good to your cities and they will give you growth. Municipal politicians naturally love this line of argument. University presidents have a similar story regarding the "knowledge economy."
What`s the OECD`s solution for Toronto`s problems? "More strategic planning," says the Secretary-General. The phrase is ambiguous. Does it mean there should be more planning? Or does it mean that the planning that takes place should be more strategic? Strategic planners typically make good money so if you can populate your city with them, you`ll do very well — assuming you can find a tax base from which to pay all those high salaries. Taxing planners to pay planners probably won`t work.
But anyone who has watched Toronto`s evolution over the years will doubt whether insufficient strategic planning is the problem. "Planning is us" might be the city`s motto. Toronto benefits, using that word loosely, from federal planning, provincial planning, regional planning and municipal planning. Now maybe the city`s going to have to clear its plans with the OECD, too. There`s abundant planning. Planning has been a growth industry for years. What`s missing is decision-taking.
Read the full article here.
It is well understood across the country, though not necessarily in the city itself, that Toronto regards itself as the centre of the universe. In the city, they`re unaware of much of the rest of the universe. There`s just Tee-Oh itself, as most major national media, headquartered there, subtly reinforce. The Canadian version of the famous Saul Steinberg poster of New York would show Yonge Street, Bay Street, University, Spadina, then at roughly the same scale, the Prairies, the Rockies, the Pacific Ocean, China.
How validating to Torontonians, therefore, to learn that no less a world player than the OECD is now interested in such things as how long it takes to get from downtown to the airport, how green the Toronto Islands development is and whether the Leafs will ever improve (well, not actually that last bit). All the attention comes in a new report on Toronto previewed Tuesday in the Centre of the Universe by the Secretary-General of the OECD.
Like most big thinkers these days, Secretary-General Angel Gurria is mesmerized by the idea that cities contribute to economic growth. They are, as the saying goes, the engines, the motors of growth (even if the engine-and-motor economy so important to the Toronto region for so many decades now sputters and dies). Cities are "growth poles." You want growth? Get yourself more cities. Or help them in any way you can. Be good to your cities and they will give you growth. Municipal politicians naturally love this line of argument. University presidents have a similar story regarding the "knowledge economy."
What`s the OECD`s solution for Toronto`s problems? "More strategic planning," says the Secretary-General. The phrase is ambiguous. Does it mean there should be more planning? Or does it mean that the planning that takes place should be more strategic? Strategic planners typically make good money so if you can populate your city with them, you`ll do very well — assuming you can find a tax base from which to pay all those high salaries. Taxing planners to pay planners probably won`t work.
But anyone who has watched Toronto`s evolution over the years will doubt whether insufficient strategic planning is the problem. "Planning is us" might be the city`s motto. Toronto benefits, using that word loosely, from federal planning, provincial planning, regional planning and municipal planning. Now maybe the city`s going to have to clear its plans with the OECD, too. There`s abundant planning. Planning has been a growth industry for years. What`s missing is decision-taking.
Read the full article here.
- Joined
- Mar 24, 2009
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- 16,743
Realtors edge toward MLS alternative
The country`s four largest real estate companies are close to an agreement to share their listings, a move that comes as the industry is trying to negotiate a truce with the Competition Bureau.
The Financial Post has learned that Century 21, Royal LePage, Re/Max Ontario- Atlantic Canada and Coldwell Banker have met several times over the past 12 months to hammer out an agreement under which they could take sales listings from each other`s websites and post them to their own.
The realtors say the move is unrelated to the ongoing Competition Bureau inquiry into the Multiple Listing Service and its restrictive access, but it could provide the industry with an alternative to the MLS system if it is forced to radically change in the wake of the government agency investigation, which started in 2007.
The MLS is controlled by the Canadian Real Estate Association (CREA), but the four major players are now listing on the MLS through their various agents.
The Competition Bureau has requested CREA remove all rules that prohibit or impede the posting of property information on MLS systems. Currently, only licensed real estate agents who are members of local real-estate boards can post listings on MLS. The change is expected to provide the public with improved and cheaper access to the system, while potentially lowering real-estate agent commissions. CREA is considering a settlement on the issue.
Read the full article here.
The country`s four largest real estate companies are close to an agreement to share their listings, a move that comes as the industry is trying to negotiate a truce with the Competition Bureau.
The Financial Post has learned that Century 21, Royal LePage, Re/Max Ontario- Atlantic Canada and Coldwell Banker have met several times over the past 12 months to hammer out an agreement under which they could take sales listings from each other`s websites and post them to their own.
The realtors say the move is unrelated to the ongoing Competition Bureau inquiry into the Multiple Listing Service and its restrictive access, but it could provide the industry with an alternative to the MLS system if it is forced to radically change in the wake of the government agency investigation, which started in 2007.
The MLS is controlled by the Canadian Real Estate Association (CREA), but the four major players are now listing on the MLS through their various agents.
The Competition Bureau has requested CREA remove all rules that prohibit or impede the posting of property information on MLS systems. Currently, only licensed real estate agents who are members of local real-estate boards can post listings on MLS. The change is expected to provide the public with improved and cheaper access to the system, while potentially lowering real-estate agent commissions. CREA is considering a settlement on the issue.
Read the full article here.