Canadian Economy Shrinks For First Time Since 2009; Recession Next?

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Wed, 08/31/2011 - 09:14 | 1618495 MichaelG
MichaelG's picture

"People should not pay too much attention to this number. It does not represent the real health of the Canadian economy," which is actually much much worse.

Wed, 08/31/2011 - 09:20 | 1618517 russki standart
russki standart's picture

We must be getting closer and closer to the Labor day weekend when news from Canada is considered news. People should not pay too much attention to Canada, anyways. Who carez what happens in the great white north, anyways? Other than Poutine and  French Girls, what does Canada have to offer anyways other than Canadians (boring).

Wed, 08/31/2011 - 09:24 | 1618531 Mactheknife
Mactheknife's picture

I don't know either but I do know that I'm going to short the shit out of this green opening.

Wed, 08/31/2011 - 09:35 | 1618561 wang (not verified)
wang's picture

coundown to another ZH feature in the Globe and Mail

Wed, 08/31/2011 - 09:48 | 1618591 sushi
sushi's picture

Another ZH feature in the G&M?

The G&M keeps running the last ZH feature. They just change the release date. News re-use is cheap. Saves on labour costs in the face of recession.

 

http://www.theglobeandmail.com/globe-investor/investment-ideas/fabrice-taylor/take-bloggers-bank-warning-with-several-grains-of-salt/article2147693/

 

 

Wed, 08/31/2011 - 10:03 | 1618647 bankrupt JPM bu...
bankrupt JPM buy silver's picture

Recession?  Ha!  ZIRP!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Wed, 08/31/2011 - 10:31 | 1618739 eisley79
eisley79's picture

@russki

both of those are from quebec, so why dont you stick to there.

At the end of the day 51% of Canada's economy is selling stuff to the US.  When the US finishes obliterating itself, they will take us down with them as well.  There is no alternative.  But, we will forever be locked at the hips, we provide all the natural resources, they provide all the military...

Wed, 08/31/2011 - 10:56 | 1618844 russki standart
russki standart's picture

I like Quebec, I have spend a few nights on Ste.Catharine checking out the local clubs and making temporary new friends.  The people are really nice when you pay with USD.

Unfortunately, I have to agree that US will ultimately drag Canada down. Too bad.

Wed, 08/31/2011 - 11:05 | 1618889 unerman
unerman's picture

Lol, we don't like USD here. Good one!

Wed, 08/31/2011 - 11:27 | 1618983 russki standart
russki standart's picture

I beg to differ. When I offered to pay with USD, she said Oui Oui, I now have moneee for florida. 

Wed, 08/31/2011 - 11:48 | 1619053 B-rock
B-rock's picture

Don't judge the country based on a gracious host.  We know the US$ is a piece of shit.

Wed, 08/31/2011 - 10:23 | 1618718 Gully Foyle
Gully Foyle's picture

http://en.wikipedia.org/wiki/Hibernia_oil_field

Production commenced on November 17, 1997 and Hibernia has proven to be the most prolific oil well in Canada, with initial production rates in excess of 50,000 barrels of oil equivalent per day from a single well. A dedicated fleet of shuttle tankers continuously operates between the platform and an onshore transshipment facility at Whiffen Head, adjacent to an oil refinery at Come By Chance.

The development of Hibernia involves a considerable amount of drilling services. As of January 1, 2007, over 50 development wells have been successfully drilled from the platform, including several world record "extended reach drilling" wells.

http://en.wikipedia.org/wiki/Terra_Nova_oil_field

Terra Nova is an oil field development project 350 kilometres off the coast of Newfoundland. Discovered in 1984 by Petro-Canada, the field is the second largest off Canada's East Coast. Terra Nova is the first harsh environment development in North America to use a Floating Production Storage and Offloading (FPSO) vessel, the Terra Nova FPSO. Production from the field began in January 2002.

The oil is produced from the Late Jurassic-aged sandstone within the Jeanne d'Arc Formation. The reservoir was deposited as a large braided fluvial system. The discovery well was Terra Nova K-08 drilled in 1984 by Petro-Canada.

http://en.wikipedia.org/wiki/White_Rose_oil_field

White Rose is an oil field development project 350 kilometres off the coast of Newfoundland. Husky Energy is the operator and 72.5 per cent interest holder in the White Rose oil fields.

Discovered in 1984, the White Rose offshore oil field is located in the Jeanne d'Arc Basin 350 km east of St. John's, Newfoundland and Labrador, Canada. The field consists of both oil and gas pools, including the South White Rose oil pool. The oil pool covers approximately 40 km2 and contains an estimated 440 million barrels of recoverable oil. White Rose is the second harsh environment development in North America to use a Floating Production Storage and Offloading (FPSO) vessel, the SeaRose FPSO. Production from the field began on November 12, 2005.

(Watch the first season of Ice Road Truckers. The hauling to gas and oil sites is very interesting.But I'm too lazy to search out information on those fields.)

Wed, 08/31/2011 - 10:42 | 1618779 BigInJapan
BigInJapan's picture

Yes, and if I'm not mistaken, every well is in decline...

Now keep in mind that I am from Gander, and I do live in the other side of the world now, but I'm pretty sure "She's all in decline now, By's".

 

Now if somebody reeeeeallly wanted to look for something in Newfoundland... well the old Hopebrook gold mine on the south coast is still there... mothballed...

Wed, 08/31/2011 - 11:26 | 1618978 fonestar
fonestar's picture

"Who carez what happens in the great white north, anyways? Other than Poutine and  French Girls, what does Canada have to offer anyways other than Canadians (boring)."

 

How about fishing, beef, natural gas, bitumen, copper, zinc, nickel, gold, silver, phosphate, iron-ore, highest grade diamonds on Earth, fur, grain, water, raw timber.... did I miss a few hundred others?

Read much?

Wed, 08/31/2011 - 11:31 | 1618995 russki standart
russki standart's picture

Tsk, tsk Fonestar, you have no sense of humor. Canada is a good country to live in, and I have in vested in countless gold mines, junior oil and gas plays, base metal mines, I even shorted  SinoForest.  You assume boring is bad... would you rather live in the middle east, where life is always interesting?

Wed, 08/31/2011 - 11:34 | 1619009 fonestar
fonestar's picture

I guess there's worse ways to be than boring.

Wed, 08/31/2011 - 12:36 | 1619217 gerryscat
gerryscat's picture

russki standart, your an idiot, or at least have a bad sense of humor.

Wed, 08/31/2011 - 09:35 | 1618562 SheepDog-One
SheepDog-One's picture

Right, nevermind these numbers, we've got the Bernank doing the 'QE carrot on a stick' for the last 8 months, which will never actually be delivered.

Wed, 08/31/2011 - 09:13 | 1618496 Gully Foyle
Gully Foyle's picture

Goddamnit! If the fucking ice roads lasted longer the Canuck economy would be growing.

Did you check out those oil tanks the Polar Bear and his buddy Rick hauled way out to fuckmeintheassmiddleofnowhere Canada?

Fuck of a lot of oil storage for a tiny little town.

Wed, 08/31/2011 - 09:23 | 1618524 russki standart
russki standart's picture

Hey Gully Foyle, any ideas on how to sell the Canadian Real Estate market short? I plan to allocate at least .0125 percent of my lunch money to this trade. 

Wed, 08/31/2011 - 09:35 | 1618563 Financial Newbie
Financial Newbie's picture

Seeing as how the Canadian Mortgage and Housing Corporation (CMHC) is backstopping every sh*t mortgage here in Canada, and the CDN government (read: CDN taxpayer) is on the hook for all of the CMHC's debts, you may wish to pass on shorting the CDN real estate market and just short the whole damn country...

 

-FN

Wed, 08/31/2011 - 09:38 | 1618570 wang (not verified)
wang's picture

HXD

Wed, 08/31/2011 - 10:57 | 1618851 russki standart
russki standart's picture

What is HXD? TSE symbol?

Wed, 08/31/2011 - 11:11 | 1618915 pitz
pitz's picture

HXD is a short on the TSX, not 'the entire economy'.  The TSX actually bears very little resemblance to the Canadian economy, and many firms (ie: the banks) are set up quite nicely for an economic downturn. 

Use HXD at your own peril (its motherfucking expensive too....)

Wed, 08/31/2011 - 11:33 | 1619004 russki standart
russki standart's picture

Thank you.

Wed, 08/31/2011 - 11:45 | 1619067 Jaciems
Jaciems's picture

quite obvious now why you're called financial newbie...

Wed, 08/31/2011 - 09:20 | 1618498 hugovanderbubble
Wed, 08/31/2011 - 09:30 | 1618550 Financial Newbie
Financial Newbie's picture

Sounds like a good plan... but any downsides/risks to holding an inverse product like HIF? I've been told to avoid the leveraged inverse version (HFD)...

 

Thanks,
-FN

Wed, 08/31/2011 - 09:14 | 1618500 rocker
rocker's picture

Buy the Dip.  LOL  With your money 

Wed, 08/31/2011 - 09:15 | 1618501 DefiantSurf
DefiantSurf's picture

I wonder if this will cause Shark Tank to be cancelled, I really like watching those crazy Canadian inventors

Wed, 08/31/2011 - 09:33 | 1618558 sabra1
sabra1's picture

tonite it's back to back beachcombers, forest rangers, and rainbow country! closer to midnite, reruns of the pig and whistle!

Wed, 08/31/2011 - 09:15 | 1618504 Boilermaker
Boilermaker's picture

A contracting ecomony from the largest importer of our <what's left> domestically made goods has to be a good thing.

Wed, 08/31/2011 - 09:18 | 1618512 SheepDog-One
SheepDog-One's picture

I believe they call this 'moving sideways' and the obvious solution here in New Bizarro World is to print more fake money. That helps.

Wed, 08/31/2011 - 09:25 | 1618535 Boilermaker
Boilermaker's picture

...that helps some people.

Wed, 08/31/2011 - 09:16 | 1618507 SheepDog-One
SheepDog-One's picture

Uh oh, eh?

Wed, 08/31/2011 - 09:16 | 1618508 falak pema
falak pema's picture

How can Canada shrink with its four western states, paradise on earth, according to Count 'whats his name' who posts so superbly on ZH, and its TAr sands mountain of black wealth that the USA guzzles like an enfamished Leviathan...?

Something I'm missing, unless the Real estate ponzi, the prize plum of sterile FIRE economy, has now invaded the mindset of staid, run of the mill, Canadians. Gezzaks, are the Mounties now as dumb as their American counterparts?

Wed, 08/31/2011 - 09:30 | 1618552 Global Hunter
Global Hunter's picture

The police up here seem to be on the same steroid and amphetamines programs that their American counterparts are on, not sure if they're quite as dumb as the Americans though.

Wed, 08/31/2011 - 13:52 | 1619261 GoinFawr
GoinFawr's picture

@ falak

This year the idiot Canuckistanians gave a majority to the oxymoronic 'Progressive Conservatives', again.  Their members are all cut from the same cloth as the rest of the worlds' bought and paid for oligarchs, and have a long history of undermining Cdn. sovereignty, yet the duped electorate keep buying their constantly reneged promises. 

Also, Mark Carney, the Governor of their Central Bank, is a 13 year GS vet...

Does that help paint the red on the maple leaf a bit?

Wed, 08/31/2011 - 09:17 | 1618511 undercover brother
undercover brother's picture

No worries, Bernanke will "fix" their economy too.

Wed, 08/31/2011 - 09:28 | 1618545 Savvy
Savvy's picture
  1. Naw, we have our own Bubbles and likes him better

http://www.youtube.com/watch?v=41ZEanjORQI

Wed, 08/31/2011 - 09:36 | 1618567 SheepDog-One
SheepDog-One's picture

I LOVE TPB, best show ever!

Wed, 08/31/2011 - 09:19 | 1618513 Everybodys All ...
Everybodys All American's picture

Black swans getting ready to migrate south for the winter?

Wed, 08/31/2011 - 09:23 | 1618521 The Axe
The Axe's picture

That sucks if  you also have to own a bunch of Chinese restaurants in Canada...since rough rice just hit 17 dollars from 10 earlier this year....shit now thats inflation..

Wed, 08/31/2011 - 11:09 | 1618908 pitz
pitz's picture

Yeah but how much 'rough rice' does a Chinese restaurant use relative to its sales?  A few cents worth of rice is nothing when you're selling it for $5 as fried rice.

Wed, 08/31/2011 - 09:23 | 1618525 Josh Randall
Josh Randall's picture

Shrinkage like George Costanza just out of the pool

Wed, 08/31/2011 - 09:31 | 1618526 Johnny Lawrence
Johnny Lawrence's picture

We'd be negative too if it wasn't for all this stimulus/money-printing.  I'd rather have the Canadian economy than the American economy.  At least, Canada makes stuff.  Plus, they have a much healthier banking system, if I'm not mistaken.  Canada has survived this global economic crisis much better than the US and Europe.

Or maybe I'm wrong...I'm just an ignorant American.

Wed, 08/31/2011 - 09:32 | 1618556 SheepDog-One
SheepDog-One's picture

I guess.

Wed, 08/31/2011 - 10:08 | 1618674 russki standart
russki standart's picture

Johnny Lawrence,  Canada makes nothing. The manufacturing sector is practically non-existent. The banking sector is very highly leveraged.  The main asset of canadian banks are real estate loans. Canadian real estate pricing is in the midst of the mother of all bubbles. The average home in Vancouver BC sells for $1,000,000 USD, and is out of the reach of more than 95% of the population. Canadians are borrowing against their homes and buying cars, boats, second homes etc. If  the value of the loans backing canadian real estate dropped by 5% or more, the banks would be in distress. Sound familiar?

Wed, 08/31/2011 - 11:06 | 1618892 pitz
pitz's picture

Nearly all of the at-risk loans at the Canadian banks are backed by the federal government through the CMHC.  So failure of the loans ultimately results not in the bank going bankrupt, but rather, in the emmission of a whole shit-ton of national debt.    At some point, this sucks tremendous amounts of investment capital out of the system, and causes interest rates to eventually reverse and begin a long cycle upwards. 

Certainly not going to be pretty going forward, but I wouldn't worry too much about the big chartered banks.

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