How bad is the economy going to hit the fan

How long a term ?

 

Oil hit $42 / barrel today

http://www.cbc.ca/news/business/oil-dives-to-fresh-6-year-low-above-42-then-rebounds-1.2999815

 

Yet gas has climbed about 10% at the pumps... What a joke.

 

5 year fixed.

I saw gas under a dollar last night and got excited, 98.9 in south west ontario, was about 103.9 the day before. Makes me concerned about how much gas will be when the price of a barrel goes back up. If it hits $100 a barrel again are we going to be paying $2 or $2.50 a liter?

 

Cool

They did mention in the report on that BofM rate that that was the advertised rate and some people actually qualified for a lower rate

Almost makes me wanna buy another house

 

With these kind of rates it almost doesn't make sense not to and just sell it again once it's paid off.

Our math based on what we make (fiancé and I) says we can pay it off within that 5 years and still be able to travel and do other things.

 

What's the average house cost where you are ? Here it's about $500K

 

Alberta faces $5B long term deficit even if oil rebounds

http://www.cbc.ca/news/business/alb...eficit-even-if-oil-rebounds-td-says-1.3001177

 

My 1250 sq ft bungalow is worth about 275K where I live. The prices are going up though since commuters are starting to move in. It looks like BMO, who currently holds my mortgage, will approve me for a better than advertised rate so I will be locking in soon.

 

How big is the lot ?

 

It isnt quite that simple. If oil goes up, the Canadian dollar will probaby get stronger so the price of gas shouldnt rise to crazy high ranges.

When oil is high alberta is booming and the Canadian economy is strong, making it cheaper to purchase refined gas. When oil is low the dollar is generally weak and buying refined gas is expensive. They balance each other out a bit.

 

I can't remember the exact footage, but it's over 100 feet on all sides. It's what they used to call a standard double lot in Alberta. The lot is more than big enough for my Labrador and I to play fetch easily. I have a 10x20 shed, a triple length single door garage, and a large deck too.

I bought the house out from a divorce that had gone on too long. I paid under market value during the last recession.

 

All good points. The only thing that is crooked is that when oil crossed $50 a barrel gasoline was 79.9/L locally. Now gas is 89.9/L and oil is at $42 a barrel

 

A lot of that is because the oil price dropped fast and then canadian dollar dropped after.
Unfortunately it will probably be the opposite if oil goes up. Gas prices will skyrocket until the canadian economy can catch up.

Thats the price we pay in a country with an economy so closely tied to oil.

 

Just a thought - you don't always want a strong domestic currency. Stronger domestic currency means less domestic exports, which can in turn mean less growth and lower returns for your domestic companies.

 

Nice

 

True but you also don't want a domestic recession

 

In the last 5 years we closed all of our Candian manufacturing plants but one in Toronto, we consolidated production in the US sites which are more attractive cost wise ...we'll see what will happen in the future - good luck everyone up there!

 

Toyota has increased production out of there Cambridge plant and Ford will be building several of there new models, including the GT, in Markham, ON due to the current economic conditions. The low dollar is attracting the Auto companies and hopefully creates some good full time jobs

 

Also a good point. Has the Canadian dollar been trending like the US? I'm worried the U.S. dollar is getting too strong.