I, for one, welcome our new Canadian Banking Overlords

[notyoueither]

Originally posted by Oncle Boris


Thanks, I've watched the economic part of the debate.

Not a single word from Stephane Dion about banks crumbling.

Asher, where are you?

What do you call repeatedly mentioning Canadians' concern for their savings? Fear of inflation? Concern for what, in the context of American banks imploding?

Layton was more of a troll near the beginning. He was in full 'save' our financial system mode. Save it from what, Jack? You?

[Ben Kenobi]

Totalitarian governments also have sound banking systems and resistance to global economic meltdowns

QFMFT!

[notyoueither]

Originally posted by Comrade Snuggles
That's only for now. As Canada's exports drive to a screeching halt because no one can afford to buy their products anymore, Canada will come tumbling down.

Are people going to stop eating?

Stop driving?

Stop turning on their lights?

Yes, there will be some disruption and dislocation here. But, tumbling down? Is there a green tinge to what you are saying?

Originally posted by Comrade Snuggles
It doesn't effect the banks directly, but when those goods can't be sold, the owners can't pay back their loans, and that's when Canada's banks will be facing a crisis.

If there is one good thing about the Canadian Wheat Board, it is the ability of a centrally pooled, government backed entity to make good on contracts to deliver and an ability to finance deals that not many other sellers enjoy. We'll sell our wheat.

Now, if that is not enough to bring KH back, I don't know what is.

[Ben Kenobi]

Yay, glad you are back in the fold NYE!

[Thorn]

Benny old pal am i on your ignore list?

[Kidlicious]

How much did Canadian banks loan to oil companies?

[Thorn]

Come to think of it how many people's ignore list am I on?

[Colon™]

It's a constant that commodities are very volatile (a quick glance at commidities indexes ought to tell you as much - crude oil fell from ~$140/barrel to ~$80/barrel in just several months, the story with cereals, metals etc is similar) and so are the growth rates of the countries that are heavily dependant on exports of those. Canada and Russia are bound to get hit harder than the US and Europe, just as they benefited disproportionally from the upswing.

[notyoueither]

Originally posted by Kidicious
How much did Canadian banks loan to oil companies?

Quite a bit, I would imagine. However, the amounts involved for something like the oilsands would be global.

[Ben Kenobi]

Benny old pal am i on your ignore list?

No.

You don't merit it. Only Wittlich and Commie Tribune are there.

[notyoueither]

Originally posted by Colon™
It's a constant that commodities are very volatile (a quick glance at commidities indexes ought to tell you as much - crude oil fell from ~$140/barrel to ~$80/barrel in just several months, the story with cereals, metals etc is similar) and so are the growth rates of the countries that are heavily dependant on exports of those. Canada and Russia are bound to get hit harder than the US and Europe, just as they benefited disproportionally from the upswing.

How long did the recent commodity boom last?

[Kidlicious]

Crude Calculations: Oil Prices Keep Falling; Is $50 Realistic?

Like the value of your retirement nest egg, oil prices continue to march steadily downward. Thursday, crude futures fell almost $2 to $87 a barrel. Where will it end?

If there’s any consensus to be found among oil-market analysts, who are scrambling to revise downard earlier bullish forecasts for the price of oil, crude should settle down at about $75 to $80 a barrel. Unlike some of the scarier, triple-digit forecasts of yore—and the Treasury Department’s pricetag for the Wall Street bailout—those numbers aren’t pulled out of thin air.

Increasingly, analysts are looking at what it costs oil companies to produce the most expensive barrel of oil. That’s the barrel of oil—and not the easy pickings in Saudi Arabia or Iraq—that sets the “marginal cost of production” for crude oil. When oil falls below that price, it no longer makes economic sense for oil companies to drill offshore, or squeeze oil out of tar sands.

Analysts and economists at BNP, Goldman Sachs, Toronto Dominion, and Bernstein Research have all said this week crude should be priced between $75 and $80 a barrel. Others, like Canada’s CIBC World Markets, think marginal production costs are the ticket, but that the floor price is a little higher, around $90 a barrel.

That doesn’t make it an exact science. Where is the marginal barrel of oil, anway? In Canadian tar sands? At deepwater rigs off the coast of Brazil or Angola, or tiny wells operated by small U.S. producers onshore?

And historically, oil prices overshoot the marginal cost of production going up and coming down. When demand for oil is strong and the supply situation is sketchy, oil prices can be 60% higher than marginal costs, Bernstein said in a recent report. When the tables are turned—oil supplies are plentiful but demand does a walkabout—then oil prices can collapse to well below marginal costs, like what happened in the 1980s.

That will make OPEC’s emergency meeting next month in Vienna all the more interesting. If the cartel seriously cuts production to keep prices stable, it risks whacking the global economy while it’s down and destroying demand even faster. But if it keeps oil output more or less intact, history suggests, crude could plummet below $50 a barrel.

[notyoueither]

And?

Suncor and Syncrude were developed at less than $30/bbl. They were the first, and I think remain the largest, oilsands projects.

The technology has improved since ~1970 when they started digging around Ft McMurray. The cost to produce is lower. The cost to build is what has gone through the roof as we even have a shortage of Mexicans.

The oilsands are not going anywhere, except into a pipeline to feed the US and China. yes, China. They are here too, looking for safe, secure sources of energy.

[Kidlicious]

Just some information. I think I read that some oil pumped in Canada costs $70 a barrel.

[notyoueither]

That is erroneous information, I suspect.



Your information would have us believe that Canadian oil only became viable in the last six years.

The first oil shock is what brought big oil to the oilsands. There had already been a lot of oil pumping since ~1950 from conventional sources.

But anyway, oilsands development continued after the OPEC shock. It is viable at less than $40 (then). That price would be lower now with improved technology and realistic wages. Wages are currently less than realistic )or more than, depending on your POV).