Olympics are done, meanwhile the global recovery is threatened with the fallout from the "PIIGS", how much fallout will be determined this week with the EU still trying to figure out how to hold things together. This happens to be when the US is forced to deal with option arm and alt-a mortgages resets, which at that point are picking up speed with many of them already under water. With the real unemployment rates at over 20% in the US, how will there not be a second wave of defaults. As for how it will affect Vancouver's markets, look no further than what happened the first time around, housing starts and purchases stopped dead in their tracks. The Olympics in China pretty much marked the point of no return in the first economic crisis, as will this one.
I am not sure how things will finally play out with this scenario but things are getting interesting again...
As for the Olympics and my opinion, f*ck em. If things go south financially there is the option to just pack up and head for another province, preferably one which did not f*ck their citizens over. Hard to collect on a tax base that moves out of province.
The way economics works however, the top 1% of income earners are responsible for 50% of taxes collected where as the bottom 50% are responsible for 5% of taxes collected.
Thus the people who are most negatively affected by the Olympics and move out of province would actually cause a net increase available funds for the government as those are the same people who cost the most to the province.
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Why do you think the Olympics are a good thing for Vancouver? Or if not, why not?
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no subject
Date: 2010-02-11 02:42 am (UTC)Olympics are done, meanwhile the global recovery is threatened with the fallout from the "PIIGS", how much fallout will be determined this week with the EU still trying to figure out how to hold things together. This happens to be when the US is forced to deal with option arm and alt-a mortgages resets, which at that point are picking up speed with many of them already under water. With the real unemployment rates at over 20% in the US, how will there not be a second wave of defaults. As for how it will affect Vancouver's markets, look no further than what happened the first time around, housing starts and purchases stopped dead in their tracks. The Olympics in China pretty much marked the point of no return in the first economic crisis, as will this one.
I am not sure how things will finally play out with this scenario but things are getting interesting again...
As for the Olympics and my opinion, f*ck em. If things go south financially there is the option to just pack up and head for another province, preferably one which did not f*ck their citizens over. Hard to collect on a tax base that moves out of province.
no subject
Date: 2010-02-22 09:56 pm (UTC)Thus the people who are most negatively affected by the Olympics and move out of province would actually cause a net increase available funds for the government as those are the same people who cost the most to the province.