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    This past Thursday marked the one-year anniversary of the US stock market’s death when stocks saw their last high. Market bulls have spent a year looking like the walking dead. They’ve...

Looney Plunges As Canadian GDP Collapses Most Since 2009

Tyler Durden's picture




 

Who could have seen that coming? It appears, for America's northern brethren, low oil proces are unequivocally terrible. Against expectations of a flat 0.0% unchanged September, Canadian GDP plunged 0.5% - its largest MoM drop since March 2009 and the biggest miss since Dec 2008. With Canada's housing bubble bursting, it's time for the central planners to get back to work and re-invigorate the massive mal-invesment boom (and ban pawning of luxury goods).

In the past year, we have extensively profiled the collapse of ground zero of Canada's oil industry as a result of the plunge in the price of oil, in posts such as the following:

Since then it has gotten far, far worse for Canada... GDP is down 0.5% MoM (and unchanged YoY - the worst since Nov 09)

 

The initial reaction is a tumbling looney...

 

Charts: Bloomberg

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Tue, 12/01/2015 - 09:44 | 6860350 Latina Lover
Latina Lover's picture

Interesting choice of bird to adorn the Canadian 1 dollar coin, one that dives down steeply into water for its food. Loon also describes anyone who pays any attention to anything Canadians have to say, EH?

Tue, 12/01/2015 - 09:58 | 6860381 Looney
Looney's picture

... Looney Plunges???  ;-)

I gotta get me a new plunger... ;-)

Looney

Tue, 12/01/2015 - 10:03 | 6860437 -.-
-.-'s picture

Who could have seen that coming? 

 

Now, that is exactly how I was hoping that you would open up this article based upon its title!

Tue, 12/01/2015 - 10:13 | 6860465 BobPaulson
BobPaulson's picture

Wait, I can't remember today if it is better when currencies go up or when they go down...

Tue, 12/01/2015 - 10:26 | 6860528 Rock On Roger
Rock On Roger's picture

Loonie has been going down since I started stacking. The cost averaging of my stack remains flat in us dollar terms.

 

Notice how I spelled loonie, eh?

Tue, 12/01/2015 - 10:47 | 6860576 BaBaBouy
BaBaBouy's picture

The New Boy Wonder Trodeau, Spending like Druncken sailor +++ Many Billions, Bringing 25K Syrians By Charter Plane By Feb...AS PROMISED IN ELECTION..

Does He Want 50 Cent Dollar ???

Tue, 12/01/2015 - 11:48 | 6860888 zuuma
zuuma's picture

I'd like a 50 cent CDN dollar.  If it goes there soon, I'll go pick up a couple thou in cash for my trip to NS next summer.

My own little, personal forex hedge.

.50 would almost make gas affordable for a drive.  It would be roughly the same in USD as we are paying right now  $1.85

 

 

Tue, 12/01/2015 - 12:03 | 6860957 Laowei Gweilo
Laowei Gweilo's picture

last quarter GDP for Canada was an improvement.... it was just the 1 bad month

 

hey, not saying it's good but ummmm technically this quarter was better than last quarter. weird to single out the single month so much.

 

and "canada's housing bursitng" is just... incredibly disengenious. VAN and TO are still growing almost double digits, annualized, per quarter ! lol so 1 city crashing = canada.... come now guys =p

Tue, 12/01/2015 - 12:08 | 6860993 Joe Trader
Joe Trader's picture

I converted all my CAD to USD in July of 2014 - it's been a nice ride, I hope we're just getting started ;)

Tue, 12/01/2015 - 12:27 | 6861110 coinhead
coinhead's picture

Buh Bitcoin!!!!!!

Tue, 12/01/2015 - 12:14 | 6861040 robertocarlos
robertocarlos's picture

How much longer can it grow at double digits with flat incomes? The rent is already too high!

 

Wed, 12/02/2015 - 00:07 | 6864196 Laowei Gweilo
Laowei Gweilo's picture

incomes have been flat so long now that it's clear they're not a major variable anyhow

Tue, 12/01/2015 - 14:15 | 6861616 Abbie Normal
Abbie Normal's picture

"lol so 1 city crashing = Canada"

You live in a community; the houses in the next street are on fire; soon the ones across the street are smouldering; but yours is in no danger because the Chinese fire brigade is coming to buy it out. Good luck with that.

 

 

 

Wed, 12/02/2015 - 00:06 | 6864188 Laowei Gweilo
Laowei Gweilo's picture

your problem is you think canada housing in any way represents a community

 

Vancouver has more in common with Arcadia California than Calgary

Tue, 12/01/2015 - 10:42 | 6860565 BaBaBouy
BaBaBouy's picture

People Buying HOUSES As protection against plunging paper CDN Fiats...

PS... The US runs much higher Deficit, Same Fate Down Da Road...

 

Tue, 12/01/2015 - 13:53 | 6861531 Reichstag Fire Dept.
Reichstag Fire Dept.'s picture

Looney, stop going down on me!!!

Tue, 12/01/2015 - 09:53 | 6860398 NEKO
NEKO's picture

Looney Tunes - That's all folks.

Tue, 12/01/2015 - 10:10 | 6860457 FranSix
Tue, 12/01/2015 - 10:33 | 6860559 GoldenDonuts
GoldenDonuts's picture

That coming from a resident of a country with a bald eagle.  A bird quite happy to scavenger rotting carcases.   So fuck you.  But yes there are a lot of delusional people here who think that real estate can never go down.  Vancouver and Toronto are definitely in a bubble.  Watch out below if mainland Chinese ever stop trying to get their currency out of china.

Tue, 12/01/2015 - 12:31 | 6861123 Deathrips
Deathrips's picture

Are you suggesting that the bird that your owners chose for your debt slavery makes you superior?

Interesting thought train.

 

RIPS

Tue, 12/01/2015 - 18:02 | 6862768 GoldenDonuts
GoldenDonuts's picture

No Just throwing bombs back over the wall.

Tue, 12/01/2015 - 11:20 | 6860749 TRM
TRM's picture

As a Canuck I can only say "I hope the rest of you Canucks prepared for this". It will get much worse. First (and thank you captain obvious) will be the resources getting killed (again). So Alberta, BC, far eastern provs, will get clobbered. Then the malise will spread to manufacturing so Ontario and Quebec will get hit.

At that point the government will try to do something (and fail) because all federal govs get elected or thrown out by central Canada. The rest of the country is window dressing to the politicians.

Of course by then it will be too late. That is what you get for being a colony. Huers of wood and drawers of water.

Tue, 12/01/2015 - 14:06 | 6861577 Reichstag Fire Dept.
Reichstag Fire Dept.'s picture

Speaking as a Canadian and formerly working in Canada's oilpatch (now in gold mining) I can fully asure you that it is the UNITED STATES of AMERICA that is responsible for the over production of oil in the world. To the extent that they let ISIS produce oil too.

Obama's "Energy Independence Plan" (which appears to include ISIS) was clearly a backhanded way for the US to attempt to bankrupt Russia...they will bankrupt Canada. In turn, this act of war was also against Canada. But who gives a dick about Canada, right?

I'm sure I speak for many Canadians when I say that I would happily detonate a nuclear bomb in your White House.

Don't forget who it was that burned down the White House in the war of 1812. It was us.

Whichever retard American it was that wanted to buikld a wall between the US & Canada...elect that cunt. Build your fuckin' wall...it will save us the trouble. Just because we're polite to you doesn't mean you are welcome here. 

Tue, 12/01/2015 - 09:45 | 6860356 Groundhog Day
Groundhog Day's picture

Speaking to a canadian a few weeks ago that thought the real estate market will never slow down in canada....Idiot

Tue, 12/01/2015 - 10:02 | 6860434 FranSix
FranSix's picture

This is mainstream media. You would have wade through a lot of presentations before finding cogent opinions on the housing market:

http://www.bnn.ca/Video/player.aspx?vid=760243

The following chart has been reliable:

http://www.gettingtechnical.com/01_home/market_commentary/can_en.html

Tue, 12/01/2015 - 11:03 | 6860669 asteroids
asteroids's picture

As a Canadian, the coming collapse of the Looney is inevitable. I see it going to 50 cents to the US dollar. The reason is simple. The banks in Canada will NEVER allow real estate to fall, why? Simple, doing so would affect their mortgage holdings and therefore their capital and cash flow structure. The banksters and the boyz will never ever allow that. Therefore, in order for real-estate in Canada to match comparables in teh US, the Looney has got to fall, A LOT!

Tue, 12/01/2015 - 11:35 | 6860777 mtl4
mtl4's picture

The issue with mortgages in Canada is that they are full recourse, meaning that if you hand over the keys to the bank you can't just walk away from it like you can in most of the US (lending risk is transferred from the banks to the consumers).  This is a serious problem because if the RE market crashes then everyone who has any substantial debt will be instantly enslaved by the banks.  People may joke about being debt slaves now but that would be deadly to Canada's economy as well.  The very protection banks feel they have may also be their utimate undoing as well (ie it's likely that full recourse would make any RE recession far,far worse that it would be otherwise).

Tue, 12/01/2015 - 11:42 | 6860859 FranSix
FranSix's picture

Sell short your own house to yourself.

Tue, 12/01/2015 - 12:35 | 6861133 Deathrips
Deathrips's picture

You dont understand in full recourse...theres no sale till the defaulted owner pays it off. If they file BK it may or may not help..but how are you supposed to buy the shortsale after BK and 0 assets left?

 

RIPS

Tue, 12/01/2015 - 13:55 | 6861523 FranSix
FranSix's picture

Then you cover before you default over and over and over.

I would assert that lending your house for a short sale would defer bankruptcy and you would only default if your house price winds up higher than you originally bought it for.

Tue, 12/01/2015 - 09:46 | 6860363 SoilMyselfRotten
SoilMyselfRotten's picture

Looney, paging Looney

Tue, 12/01/2015 - 09:59 | 6860393 Looney
Looney's picture

I am plunging! Damn toilets!  ;-)

Looney

Tue, 12/01/2015 - 10:35 | 6860568 SoilMyselfRotten
SoilMyselfRotten's picture

So glad that promotion came thru  :-)~

Tue, 12/01/2015 - 09:46 | 6860365 Unix
Unix's picture

any country that puts a looney bird on their coinage is doomed to fail...they do have a lot of oil though.

Tue, 12/01/2015 - 10:22 | 6860499 Grandad Grumps
Grandad Grumps's picture

The bald eagle on the other hand has a diet that is mostly fish and eats both fresh and carrion.

Tue, 12/01/2015 - 09:50 | 6860384 buzzsaw99
buzzsaw99's picture

BULLISH!

Tue, 12/01/2015 - 09:51 | 6860385 commishbob
commishbob's picture

Canada, also known as the "Maple Leaf State," sure is having some difficulty, eh?

Tue, 12/01/2015 - 09:55 | 6860411 buzzsaw99
buzzsaw99's picture

the looney down --> maple syrup exports up

A WIN-WIN!

Tue, 12/01/2015 - 09:54 | 6860388 FranSix
FranSix's picture

Canadian gold mining companies in a country that has not yet diversified out of $U.S. into gold.

Tue, 12/01/2015 - 09:54 | 6860404 Panic Mode
Panic Mode's picture

Yes, yes but as long as we have moral highground, nothing else matters.

Tue, 12/01/2015 - 09:56 | 6860418 overmedicatedun...
overmedicatedundersexed's picture

ZH, get a clue, canada closes for the winter..of course production is off, they are all in Florida & Arizona.

Tue, 12/01/2015 - 10:16 | 6860480 northern vigor
northern vigor's picture

Every premier, mayor, bureaucrat and dog catcher is in Paris right now on Trudeau's dime, er...I mean the taxpayer's 7.5 cents.

Tue, 12/01/2015 - 10:44 | 6860612 FranSix
FranSix's picture

You mean fartcatcher.

Tue, 12/01/2015 - 13:31 | 6861404 northern vigor
northern vigor's picture

I should have said..."every Trudeau, Liberal  leg humper".

Tue, 12/01/2015 - 14:06 | 6861582 FranSix
FranSix's picture

I would not get caught in public catching Rona Ambrose's 'ambrosia'

Tue, 12/01/2015 - 10:39 | 6860582 bluskyes
bluskyes's picture

What are you talking about? Real estate booms in the winter. That's when the eskimos can get the good ice to build their igloos.

Tue, 12/01/2015 - 09:57 | 6860419 margincall575
margincall575's picture

There goes the NHL salary cap down the drain. speaking of. Whatever happened to EMK? LongSoupline? I missed Longsoupline. Could have used him in that Bernake book review last night. Nothing like 20 F bombs on a long Monday night !

Tue, 12/01/2015 - 09:59 | 6860424 Holleyman
Holleyman's picture

http://www.cbc.ca/beta/news/business/canadian-economy-returns-to-growth-...

Yet the communist broadcasting company states that GDP is positive and all is well, the "mini recession " is over. 

 

Tue, 12/01/2015 - 13:56 | 6861545 pitz
pitz's picture

Too much of that high-grade Canadian cannabis was likely smoked over at the CBC and Statscan before they came up with that nonsense.

Tue, 12/01/2015 - 10:13 | 6860449 Signs of the end
Signs of the end's picture

Toronto has become Shanghai of the West. As long as the Chinese money keeps flowing in, Toronto will keep growing like weeds and Chinese bidding up RE to heights unheard of in the land of the loons. Besides Toronto is now THE hub for the RMB trade in North America. So the Chinese money is a much bigger factor than oil in the health of the Canadian Economy. Oil effects Alberta a great deal but not Ontario as much. People forget that Toronto's main business is money, like Wall Street, and Bay Street has dep pockets and long tentacles that reach far further than just oil. Canada is not a one trcik pony like Saudi Arabia. We have a secret weapon, it's called Chinese money (and Russian and Iranian and ..) A preceived safe haven is much valued in this world and Canada sits atop of the Safe Havens list. 

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