Alberta headed for record deficit

[Bertuzzied]

Originally Posted by troutman

My clients just bought a property in BC. They have to pay $11,000 as a "property transfer tax". Welcome to BC!

We will see true BC'ers in action when the Telus collective bargaining begins later this year.

[Azure]

Originally Posted by Olao32

That’s probably true. While I like many things that the WAP stands for, I am undecided if they are ready to take the reins and run the province.

Well, I'm hoping they win enough seats to provide a legitimate opposition.

I don't want them to rule the province either. At least not yet.

[Shazam]

CUT! CUT! CUT!

And when NG goes back up:

SPEND! SPEND! SPEND!

[Frequitude]

Dinning should have won.

[bizaro86]

Alberta has always had political dynasties. A party rules for decades, and then when it gets complacent, it gets replaced by someone new. And every Alberta government has been replaced by a party considered more right-wing than the party that governed before it.

Michael

[Shazam]

Originally Posted by Frequitude

Dinning should have won.

I don't think he could've done any better.

Until Alberta can set oil and gas prices, we're at the mercy of international markets.

[Slava]

Originally Posted by bizaro86

Alberta has always had political dynasties. A party rules for decades, and then when it gets complacent, it gets replaced by someone new. And every Alberta government has been replaced by a party considered more right-wing than the party that governed before it.

Michael

I guess we should just vote for the Nazis and cut to the chase then?

Originally Posted by Shazam

I don't think he could've done any better.

Until Alberta can set oil and gas prices, we're at the mercy of international markets.

I still think that with some prudent management you could put away some money to even out the booms and busts to a large extent. For many of us this is the second boom and bust of our short lives, and won't be the last...you would think that we could act a little more rationally.

[Shazam]

But they did put away money. That's the part that puzzles me. They actually saved money... And are now using it to keep things going. And they get criticized. Of all the terribly inept things this gov't has done, this was probably the one thing that they got right.

I suppose they could've saved more or something some such, but unfortunately just because every member of CP has a second house, maxes out their RRSP and TFSA room and has a 15 inch dick, doesn't mean the gov't can do the same.

[Azure]

The Heritage Fund should be setup in a way that we can generate $5 billion in revenues strictly on investments to pay for any projected deficit that we MAY run at any time in the future.

Of course that would mean we'd have to have billions more saved up, but that should be something we should have shot for to begin with.

[Shazam]

So, you'd need a $100b fund that generates 5% to get $5b a year.

You think that's feasible?

[Azure]

Originally Posted by Shazam

So, you'd need a $100b fund that generates 5% to get $5b a year.

You think that's feasible?

Well, you would want to work to that point. Or something near it. Idea is to get the fund to the point where it can generate the money we need to fund our budgets during a time of recession.

[Shazam]

It's a lot harder than it looks. If you want a guaranteed risk-less return, then you're looking closer to a 2% return. So $250b.

[SebC]

Originally Posted by Shazam

CUT! CUT! CUT!

And when NG goes back up:

SPEND! SPEND! SPEND!

Yeah. And spend more in total because catching up costs more than staying on top of things (e.g. selling hospitals at a huge discount to private interests, then building new ones because you don't have enough).

[Slava]

Originally Posted by Shazam

It's a lot harder than it looks. If you want a guaranteed risk-less return, then you're looking closer to a 2% return. So $250b.

Sure, but Aimco doesn't invest in purely areas for risk free return. IIRC they mange the Heritage Trust fund?

In any event if the powers that be have taken all of that money and put it in a GIC because they're afraid of risk then that is a major travesty.

[WilsonFourTwo]

Originally Posted by Shazam

I don't think he could've done any better.

Until Alberta can set oil and gas prices, we're at the mercy of international markets.

That's 100% true, and completely addresses one side of the equation.

Spending on the other hand.......

[Resolute 14]

Originally Posted by Shazam

I don't think he could've done any better.

Until Alberta can set oil and gas prices, we're at the mercy of international markets.

The idiotic changes to the royalty program were not made at the mercy of the markets. Stelmach killed the oil patch before the recession even hit.

[The Yen Man]

All I can say is, if this results in them introducing a PST, then I am so done with this frickin' government.

http://www.edmontonsun.com/news/albe.../15142011.html

[WilsonFourTwo]

Originally Posted by Shazam

So, you'd need a $100b fund that generates 5% to get $5b a year.

You think that's feasible?

Yes - I think it is entirely feasible that the Heritage Savings could be generating $5 Billion per year at this point.

The fund was supposed to receive 30% of Alberta's resource revenues......and it was setup 35 years ago. Anyone that thinks we couldn't have saved (at least) an average of $2 Billion per year over the last 35 years is kidding themselves. The problem is that we stopped saving many years ago, and at one point even started spending the money.

[WilsonFourTwo]

Originally Posted by Shazam

It's a lot harder than it looks. If you want a guaranteed risk-less return, then you're looking closer to a 2% return. So $250b.

Who wants a guaranteed risk-less return? The time horizon of the fund is indefinite......risk is absolutely acceptable and should be encouraged. Norway's sovereign wealth fund is shackled by the "Do-Gooder" investment strategy and still grows by leaps and bounds.

Since we're talking about Norway's fund.....started in 1990, now worth $440 Billion. Run a little differently than the Heritage fund (they actually put money in....), but it's an example of what can happen.

[HeartsOfFire]

Originally Posted by Bertuzzied

We will see true BC'ers in action when the Telus collective bargaining begins later this year.

What has that got to do with the thread?