Quote:
Originally Posted by fotze
Aside from BP, can't see too many job losses on the horizon. Gas is starting to be bullish too. Interest rates may climb but people who over extended will see their salaries/bonus/stock option continue to climb.
Unless there is mass layoffs or interest rates climb to 10+% I have trouble seeing the problem, even with all the inventory data mashing.
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Really? From friends and classmates in the oil and gas industry it sounds like employment numbers are fairly stable or "silent layoffs of contract workers." Also not sure if the previously announced Suncor layoffs have already happened or not.
Calgary is still pretty heavy/substantially weighted to gas and at AECO at $4 . . . even the 16 week high isn't saying too much. With what I've read/seen about gas inventories and shall gas coming on stream it's more bearish than bullish. But I could totally be wrong.
Man if rates climb 10%, that 10:1 ratio means mortgage payments literally double on a monthly basis. (I don't really see that happening soon.) But even just a 2% raise in say a year or two would be a 20% jump - not sure many people would be getting enough of raise to keep up at that pace.