Inflation or Deflation- What Will be the Ultimate Outcome?
Economists really do not have a consensus as to what will happen in the next little while. At the moment, they cannot agree whether inflation or deflation is the bigger threat. Deflationists believe that the cooling economy will lead to decreased consumption. This, combined with lower gas prices, lower housing prices, and the plummeting stock […]
Housing Prices Tumble in Metropolitan Canada
It was bound to happen. Housing prices are beginning to fall in metropolitan Canada. In the Greater Toronto Area, housing prices have tumbled the first time in over a decade, down by 3% from last year’s levels. Average existing home prices dropped to $368,549 in September, from the $380,132 recorded in the same month last […]
Increasing Government Spending Will Stimulate the Economy
Keynesian Economics, or “The New Economics,” holds that governments should vary taxes and spending to offset both rising inflation and staggering output. Free-marketers argue that the cost of periodic crashes is worth it, in order to preserve the freedom of capital movements. At the moment, the former notion is prevailing. Before the 2008 financial crisis, […]
Manufacturers Can Breath Sigh of Relief With Lower Canadian Dollar
The loonie took a beating alongside stocks last week, falling 7.77 cents or 8.4 per cent this past week, and 2.59 cents alone on Friday. The loonie has now dipped below 90 cents against the U.S. greenback. The silver lining is that non-resource manufacturers will likely benefit from this drop because their main customers tend to be in the […]
Federal Government Provides $25B Injection to Lending Industry
Finance Minister Jim Flaherty announced Friday that the federal government will buy $25 billion worth of mortgage debt from Canadian banks in a bid to stabilize the lending industry and encourage lower interest rates. Due to the subprime mortgage crisis, financial institutes are reluctant to lend money, and if they are, they’re charging significantly-higher rates. […]
How Will The Federal Election Impact the SR&ED Program?
[ Image courtesy of the Toronto Star ] During the Leaders’ english debate on October the 3rd, one issue that was broached was the federal SRED (Scientific Research and Experimental Development) business incentive program. Under the existing federal SR&ED program, non-profitable corporations with large revenues may receive research and development tax credits that cannot be applied. Liberal leader […]
Businesses Need To ‘Go Green’ To Stay Competitive In New Economy
Due to the economic downturn, many traditional industries are in peril because resources are no longer in demand, consumers are scrimping instead of spending, and the financial institutions are in disarray. To survive as a business, it’s paramount that now, more than ever, businesses need to innovate. We’re on the cusp of a new economy and only the […]
Ways to Increase Cashflow in Your Business
Entrepreneur.com outlines 50 ways to save money in your business. Here are some of my ideas on how to increase your cashflow: Call in your Account Receivables the moment they’re due. Waiting to collect your AR reduces your cash flow substantially. Collect a portion of the payment up-front, prior to services being rendered. Stretch out the […]
Look For Alternative Forms of Financing
The cost of borrowing money just went up. Unlike their US counterparts, Canadian banks that held positions in high-risk US mortgages will likely not receive a bail-out package. The net impact of the mortgage crisis is that Canadian banks will have to increase their lending rates to make up for their losses. This is a […]
It Doesn’t Always Pay To Build The Better Mousetrap
A year ago it looked like game over for Nintendo’s storied console business. The Nintendo Entertainment System had ushered in the modern age of video games, but was not bleeding market share due to newer, more powerful systems from Sony and Microsoft. Nintendo’s response was the handheld DS, followed by the Wii. The DS two-screen […]