January 28, 2011

David Foot, of “Boom, Bust and Echo” fame is still following the boomers impact in our lives.  The first Canadian boomer born in 1947 will turn 65 in 2012.  The following video clip has him sharing his views on what we may expect.

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Canadians sitting on cash

The most dramatic 2008/09 decline experienced in many years was followed by one of the most dramatic recoveries experienced ever.  Despite the recovery, Canadians and American’s have not completely returned to purchasing securities for their retirement and instead are holding onto piles of cash.  One has to wonder what will happen to prices once it’s realized equities have returned to growth.

Benjamin Tal – CIBC world Markets comments on the cash Canadians have yet to invest

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Two Hundred countries, Two Hundred years

 The following clip is a graphic demonstration of the improvement in the world’s living standards over the last 200 years.  It plots income level and average life span between countries as measured each year over the last 200 yrs.  The message from this we need to take from this is that although the pace of growth was different between countries, all countries living standards have continued to improve..


Canada’s employment rate – not to hot/not too cold

 No employment report is ever without its blemishes but there were very few in the January 7th Canadian jobs report, which portrays an economy that is still operating at a very high level even if the pace is off the mini-boom that immediately followed the depths of the recession. The only blemish was that the workweek was down 0.3%, and the average duration of unemployment made a new 12-year high of 20.1 weeks, but once again, no report is perfect. Overall employment rose 22k in December; a tad above expectations, but the devil is always in the details, which were actually more impressive than the headline because all the gains and then some were in full-time jobs (+38k) as well as private sector payrolls (+52.5k). The official unemployment rate stayed at 7.6%; the consensus was looking for an up tick to 7.7%. A year ago, the jobless rate was sitting at 8.4% and at the peak it was 8.7% in the summer of 2009. That is otherwise known as progress.

Through the first nine months of the year, the Canadian economy was generating about 40k net new jobs per month and in Q4, that pace moderated to an average of 20k, which is as close to not-too-hot/not-too-cold as you can get. Nothing here for the Bank of Canada to get excited about, that is for sure. Growth has moderated, the expected closing of the output gap has been delayed by a full year and underlying inflation pressures remain well contained — as evidenced by the fact that median wage growth was basically flat last month.


Being in the middle of winter I’m comforted by two things;  first, the days are getting longer! And second, I’m planning my mid winter interlude somewhere south.  I’ll be gone the second week of February and thankful I have Nancy to take care of things.

This short clip arrived at the right time – since I’m a big coffee drinker, I opened it.  Life is like coffee.