The rate of wage increases for Canadians YOY was...wait for it...3.9%.
That is HUGE!. It would be huge in an average year, but in a year with low inflation and low interest rates that is enormous and we can see now why the BoC was raising rates, even as others were singing the double dip recession song (like the guy in my previous post).
And this increase is despite the rise in unemployment. Much like the Vancouver Housing market really, where we have less demand but still high (or even higher) prices.
I suspect it the huge swings we are seeing in the economic landscape from the sudden fiscal and policy shifts that are being thrown at us ie..'pump up the CMHC- dang we have a housing bubble, reign it in, drop rates to zero- dang borrowing is exploding, raise rates'
In any case employment income is a lagging indicator, but we will have to keep an eye on it.
Look at the front page of the Vancouver Sun. I cannot bring myself to put a link. What us bears have been saying for some time, is finally being acknowledged by the what passes for media in this city and the Cof V. That incentives will be needed to unload that White Elephant - OKA as the Olympic Village.
Now the councillors are blaming the HST! First it was Ladner's council blaming the world financial chaos and now these guys say it is the HST.
Anybody but us seems to be the mantra at City Hall. How about this refreshing statement instead:
"We did NOT make a good deal here. We were badly advised and made some bad decisions and even now have no idea how much we are on the hook for. Oh, and BTW- we have already spent $XXXXX on legal advice and will probably spend a lot more. Sorry we know it is your tax money. At least you know that we weren't 'embarrassed' like they are in India now. And you can be happy that a lot of fun was had in the OV, remember they did run out of condoms."