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 [5], 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 [6]).
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:
- "Canada Crude Contagion: Calgary Home Prices Drop Most In 2 Years [7]"
- "Canada's Biggest Oil Casualty To Date: Calgary's Nexen Shutters Oil Trading Desk [8]"
- "The Canadian Housing Bubble Has Begun To Burst [5]"
- "Canada's Oil Patch Confidence Crashes [9]"
- "Canada Mauled by Oil Bust, Job Losses Pile Up – Housing Bubble, Banks at Risk [10]"
- "The Stage Is Set For A Massive Housing Market Correction in Canada's Oilpatch [11]"
Since then it has gotten far, far worse for Canada... GDP is down 0.5% MoM (and unchanged YoY - the worst since Nov 09)
[12]
The initial reaction is a tumbling looney...
[13]
Charts: Bloomberg
