Quote:
Originally Posted by Azure
Container rates are mostly down because large corporate buyers like Walmart are sitting on tons of inventory on shore that they need to get rid of. Everyone know that was coming.
It doesn't necessarily mean that the supply chain has gotten better for things like computer chips, nor does it mean vehicle prices are coming down.
Now, I do expect that if you hammer away at this long enough, the economy will basically blow up, which seems to be what the BoC is going for.
But man, such a terrible policy if you have an economy with record immigration levels, housing prices that don't want to come down like they should, housing shortages, low unemployment, rising wages, and private sector job growth.
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A major issue is that the interest rates aren't affecting everyone equally. For example in the housing market, because there's not enough supply, anyone with cash is fine. Anyone who needs to borrow gets F-ed. The prices aren't coming down the way they should, but the payments for those who need to borrow are going up. With record immigration levels, far in excess of new housing builds, the problem will not rectify itself.
We actually need the immigration, because our labour force is so poorly trained for positions Canada needs. Maybe this is less of an issue in Calgary, but in Vancouver construction and maintenance workers are very hard to find. Getting simple repairs done is ludicrously expensive. For example, I needed a drain flushed out. The companies all charge $300 just to show up and then $150/hr once they arrive.
The fundamentals in the Canadian economy just seem way off. I don't place blame on the Liberals solely, this is a problem decades in the making.