Budget 2009- Canadians react

The Globe and Mail took an interesting approach towards their coverage of the Federal Budget that was released earlier this week.

A laid-off retail manager, a self-employed consultant, a young mother and a small businessman reflect on the recession as Finance Minister Jim Flaherty delivers the buuget. Check out the video and hear what some Canadians think about Budget 2009.

You can also read an interesting article revealing that a new Globe and Mail-CTV poll shows that many believe Prime Minister Harper would never have unveiled this week's stimulus budget if it weren't for opposition pressure. Be sure to check out the comments from other readers and leave your thoughts as well.


BACK TO ... WWW.THEDREAMHOMESYSTEM.COM

Bank of Canada suggests Canada will emerge from recession ahead of peers

Canada will emerge from recession on a stronger footing than other major economies that are burdened with weaker financial systems, Bank of Canada Governor Mark Carney said on Tuesday.

While Canada's recovery in part will depend on the progress of other major economies, domestic growth will outpace growth in other countries reeling from the global economic slowdown, Carney said after a speech in Halifax, Nova Scotia.

"In terms of growth in 2010, we expect, subject to the stabilization of the global financial system ... that most of the major economies are going to grow," Carney said.

"We expect Canadian growth to be stronger than those other economies in part because we don't have those overhangs of imbalances and lagged effects of a recovery in our financial system than those other economies have."

Carney, speaking a week after the central bank lowered its key overnight rate to a 50-year low of 1 percent, said the domestic economy will begin recovering later this year as a series of interest rate cuts begin to take hold.

His comments mirrored projections released by the bank last week when it unveiled its quarterly economic update. The bank said Canada's economy would contract by 4.8 percent annualized in the first quarter, 1 percent in the second and then return to growth.

Carney also said additional measures to shore up financial systems in a number of other jurisdictions are still necessary, but added that Canada does not have the same fundamental problems.

Continue reading this article...


BACK TO ... WWW.THEDREAMHOMESYSTEM.COM

GDP signals deepening recession

Canada's economy shrank more than expected in November as businesses across most sectors clipped back production, suggesting the recession that started in the fourth-quarter is steeper than expected.

The economy contracted 0.7 percent in the month, the biggest drop in five years, as feeble global demand forced cuts and layoffs in manufacturing, construction, wholesale and real estate industries, Statistics Canada said on Friday.

In the worst year-over-year performance since August 1991, the economy shrank 0.8 percent compared with November 2007. The Canadian dollar strengthened slightly after the data.

Economists, surprised by the swift deterioration from a 0.1 percent decline in October, now expect the fourth-quarter contraction of close to 3 percent. That compares with the Bank of Canada's latest projection of a 2.3 percent decline.

"The prognosis for fourth quarter GDP is not looking particularly good," said Charmaine Buskas, senior economics strategist for TD Securities.

"The decline in economic activity has been increasingly broad based and suggests that recession's grip on the Canadian economy is indeed, strong," she said.

Analysts in a Reuters poll had called for a 0.4 percent decline.

The Canadian data came at the same time the United States reported its economy shrank at its fastest pace in nearly 27 years in the fourth quarter. GDP plummeted at a 3.8 percent annual rate.

Click here to read the rest of this article.


BACK TO ... WWW.THEDREAMHOMESYSTEM.COM

Canada's banks signal credit thaw- at least for now

TORONTO (Reuters) - A decision by Canada's biggest banks to pass along all of this week's central bank interest rate cut to customers suggests its credit markets have begun to thaw even as lending in many countries remains in a deep freeze.

Within minutes of the Bank of Canada cutting its benchmark rate on Tuesday by a half percentage point to 1.00 percent, Canadian banks lowered the rates they offer to their best clients by an equal amount.

Canadian banks, which have remained profitable even as the global financial crisis has ravaged their foreign peers, were criticized in the last quarter of 2008 when they twice decided not to pass along the full rate cuts made by the Bank of Canada, a decision they justified on the grounds of tight credit markets.

That was then; this is now. The fresh willingness of banks to follow the leader in easing borrowing conditions could mark the beginning of the end of a crisis that has threatened to stifle the Canadian economy for months or even years to come.

"The fact that we saw the match from the banks with the Bank of Canada rate is probably consistent with the view that there has been a slight improvement in tone with the markets," said Craig Wright, chief economist at Royal Bank of Canada.

Click here to read the remainder of this article.

BACK TO ... WWW.THEDREAMHOMESYSTEM.COM

Sellers asked to be realistic as market cools

The greater Toronto real estate market continued its slide in the first half of January, according to figures released today.

Total house sales were cut in half compared with the same period last year, while $35,000 was knocked off the average value of each sale, a drop of almost 10% on 2008.

Toronto Real Estate Board president Maureen O’Neill said the cooling will take some getting used to, but expects growth once potential sellers and buyers adapt to the new economic conditions.

“Consumers have had it very good for the last 10 years. They can’t remember seeing prices going down,” she said. “People need to be more realistic and respect the current market.”

GTA realtors reported 888 sales in the first two weeks of this year, down from 1,776 in 2008. The average price fell from $367,574 to $332,495.

Gilles Duranton, a professor of economics at the University of Toronto, said nobody knows when the good times will return, but greater Toronto is better placed than most markets.

“We have to remember this is a downturn that is affecting the whole continent, if not the world,” he said. “We haven’t seen the kind of explosion in price here that happened in other North American cities, so the correction won’t be as severe,” he said.

If you're looking for more information about the market, and seeking advice come out the The Dream Home System's FREE educational seminar- Are you lost in the market? On Saturday, February 7th from 11:00am to 1:00pm. Click here for more information.


BACK TO ... WWW.THEDREAMHOMESYSTEM.COM

Get your FREE tickets to the National Home Show!

As a thank you to all of my clients, family members, friends and business-to-business partners, I'd like to invite you to be my V.I.P. Guest at the National Home Show taking place from February 20-March 1, 2009 at the Direct Energy Centre in the GTA.

The Dream Home System wouldn't exist without your continued support, so I'd like to take this opportunity to show you a token of my appreciation.

My V.I.P. ticket for you includes:

• Exclusive V.I.P. Entrance with complimentary coat check
• Front row seating at the "Little Project Stage presented by HGTV
• Front of the line access to the Dream Home
• Complimentary Wine Tasting in the Dream Gardens
• Chance to enter the RE/MAX Ultimate Viking Kitchen Contest ($25,000 value)

To request 2 FREE tickets to the show, click here, and fill out the form. Then I'll send you your tickets!

*Please note: Tickets are limited, and distributed on a first come, first served basis. Tickets are also exclusively for current clients, family members, friends and business-to-business partners.



BACK TO ... WWW.THEDREAMHOMESYSTEM.COM

Credit card debts hurting Canadians

With job losses expected to increase throughout 2009, chances are more Canadians are going to defaults on their credit cards or loans.

A study by the Vanier Institute found that average household debt in Canada surged to more than $90,000 in 2008, while the total debt to disposable income ratio climbed to 140 per cent.

Many industry insiders are noticing that certain creditors have increased interest rates for people who have missed more than two monthly payments, which is making it harder for people to pay down their debts.

If you find that you're unable to keep up with your monthly payments be sure to contact your credit card company and let them know about your situation. They should be able to come up with a compromise that is somewhere in the middle so you both benefit.

A recent poll by Manulife Canada found that 35 per cent of Canadians who responded say their top financial priority in 2009 is paying off debts and reducing their mortgages.

About 24 per cent said that consumer debts, such as credit cards, are their greatest concern.

If you're struggling financially and considering meeting with a debt consolidation organization, be sure to review the tips on Industry Canada's website to ensure that you know what to look for. For tips on how to avoid credit card debts click here.

BACK TO ... WWW.THEDREAMHOMESYSTEM.COM

FREE Educational Seminar- Are you lost in the market?

It's no secret that the global economy isn't in the greatest shape right now. From government bailouts for large corporations to falling house prices- it seems like just about everything is feeling the affects of the market.

But have no fear! The Dream Home System would like to invite you to a FREE educational seminar to learn more about the current state of the market, as well as potential opportunities that may arise in a declining market.



Seminar topics of discussion will include:

• What caused the financial crisis?
• What does the market look like here in Canada?
• What types of opportunities are there in a declining market?
• Plus much more!

The seminar will take place on Saturday, February 7th from 11:00am to 1:00pm at the RE/MAX Omega head office, located at: 1140 Stellar Drive in Newmarket, ON.


This is an open event, so please feel free to invite any friends, family or co-workers to attend.

To register for this free seminar, please contact tiffany@thedreamhomesystem.com or call (905) 898-1211.

Light refreshments and snacks will be served.



BACK TO ... WWW.THEDREAMHOMESYSTEM.COM

Put your inaugural knowledge to the test!

In just a few hours President-Elect Barack Obama will be sworn in as the 44th President of the United States of America.

With so much excitement in the air surrounding this historic event, it's hard to remember past inaugurations. That's why the folks over at CNN.com have put together a fun quiz to test your inaugural knowledge. Take this quiz and put your presidential knowledge to the test!

There's still a lot of events taking place on Tuesday, January 20th, 2009 for the inauguration. To keep up-to-date with the latest events, check out www.pic2009.org

Chances are that you might be stuck at work during the inauguration ceremony. But fear not- you can always watch the events online by visiting CTV.ca.

Twenty years from now you can say that you witnessed a moment in history along with the rest of the world!



BACK TO ... WWW.THEDREAMHOMESYSTEM.COM