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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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?

Looney's picture

... Looney Plunges???  ;-)

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


-.-'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!

BobPaulson's picture

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

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?

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 ???

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



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

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 ;)

coinhead's picture
coinhead (not verified) Joe Trader Dec 1, 2015 11:27 AM

Buh Bitcoin!!!!!!

robertocarlos's picture

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


Laowei Gweilo's picture

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

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.




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

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...


Reichstag Fire Dept.'s picture

Looney, stop going down on me!!!

NEKO's picture

Looney Tunes - That's all folks.

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.

Deathrips's picture

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

Interesting thought train.



GoldenDonuts's picture

No Just throwing bombs back over the wall.

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.

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. 

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

FranSix's picture

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


The following chart has been reliable:


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!

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).

FranSix's picture

Sell short your own house to yourself.

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?



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.

SoilMyselfRotten's picture

Looney, paging Looney

Looney's picture

I am plunging! Damn toilets!  ;-)


SoilMyselfRotten's picture

So glad that promotion came thru  :-)~

Unix's picture
Unix (not verified) Dec 1, 2015 8:46 AM

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

Grandad Grumps's picture

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

commishbob's picture

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

buzzsaw99's picture

the looney down --> maple syrup exports up


FranSix's picture

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

Panic Mode's picture

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

overmedicatedundersexed's picture

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

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.

northern vigor's picture

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

FranSix's picture

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

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.

margincall575's picture
margincall575 (not verified) Dec 1, 2015 8:57 AM

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 !

Holleyman's picture


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


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.

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.