Doom & Gloom about the economy, but Krystal might afford a house.

Submitted by Nancy aka money... on Wed, 03/26/2008 - 08:50.

I'm feeling a bit doom and gloomy about the economy. One possible bright side is that the people who live and work here in Vancouver, who make it a city and not a ghost town, may yet afford a place here. So take heart, Krystal.

It all has to do with this Asset Backed Commercial Paper problem. Don't run away from me. It won't be boring, I promise. And remember, I'm a money coach, I'm not an economist, so what follows may be way off base. But here's the future as I see it:

Joe wants to buy Sally's $300K condo. He doesn't have $300K available just then (he's not John Chow). So Joe goes to Friendly Credit Union or Big Bank to borrow the money.

B.C. Foresty, an economic powerhouse, is going to tank.

Submitted by Nancy aka money... on Tue, 09/04/2007 - 09:21.

I'm a money coach, not an economist, but my armchair take is that B.C. is going to feel the effects of the B.C. forestry industry's current woes. 

Forestry still accounts for 40% of our exports, but they face the following tough challenges:

  1. US housing crunch = plummeting demand for lumber, and the forestry industry isn't really diversified across the globe.
  2. Rising energy costs = harder to turn a profit
  3. Pine Beetle has destroyed a decade's worth of timber
  4. Our rising dollar = exports in general are less attractive.
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