A new report out by Bank of America Merrill Lynch says that Canada’s oil and gas sector has caused a dutch disease in the country.
This idea of dutch disease is nothing new, and what it’s implying is that the oil industry has in fact driven up the value of the loonie to the point that it is hurting other export-reliant industries.
The term “dutch disease” has been a political trigger point in recent years, but it was shot down by the Bank of Canada, saying that the oil and gas industry should jump at the chance to expand.
There is no doubt that the oil and gas sector has had a positive effect on the Canadian economy, but there is no denying that it has had a negative impact on other areas of the economy as well. But as long as the price of oil stays high, I don’t see things changing any time soon. And I feel this report will fall on deaf ears, especially in western Canada.
To read the whole story on the Bank of America Merrill Lynch report, head over to HuffPost Canada.
A new report shows that Canada is one of the leading nations in over valued housing.
I can’t say I am particularly surprised by this. We’ve seen pricing rising in major centres like Toronto, Montreal, and Vancouver. But we’re also starting to see it on the prairies in Calgary, Edmonton, and even Saskatoon.
Some people expect the Canadian housing market to have a soft landing. I on the other hand, am beginning to fear the worst.
The people I really feel sorry are young couples and young families who are being squeezed out of a housing market and being forced to either buy in an undesirable neighbourhood, or they’re forced to rent.
To read more about the overvalue in the real estate market, head over to HuffPost Canada.
Well this certainly didn’t take long. Canadian coffee giant Tim Horton’s has agreed to be taken over by Burger King. The price tag of the takeover? $12.5 billion. Warren Buffet put up $3 billion to help finance the deal, but will not have any say in the new company, who’s name is expected to be released by the end of business Tuesday.
For further break down of the “whopper” (sorry I couldn’t help myself) of a deal, here’s more coverage from CTV News.