Getting Ready For Hard Times

Well sort of, I mean I know that bad times are definitely ahead of us, but I'm ready.

Lest you think we're rich buying that much wine, let me assure you it was cheap. It's home make plonk actually and costs about 4 bucks a bottle. And we actually like it. We put up 60 bottles of the stuff, half Riesling and half Gewuertztraminer and it's very drinkable. At least to this non wine snob.
I am overwhelmed by the bad news out there. Job losses in Ontario are staggering. The national unemployment rate is 7.2% but in Ontario it's 8%. this is the largest job loss in 30 years. Now I know that Michigan for example, has unemployment rates in the 10% range but that is because the big three auto makers call that state home. They are, unfortunately responsible for their own near demise. I have owned and still drive a North American vehicle but I did have the pleasure of having German car once. My North American vehicles never lasted more than 10 years maximum and that's with spending mega bucks on repairs. And they want a bailout? I had my German car for 20 years and it looked as good as the day I bought it, not one rust spot.

Sales of homes in Toronto are down 48% over last year yet our city fathers wont rescind double taxation to help the situation (Ontario land transfer tax is double in the city). Most of my friends are in real estate and they are feeling the pinch. These are also the people who don't qualify for unemployment benefits. These are the very people who, when times are good spend lots of money to keep the economy moving. They won't be spending too much anytime soon.

Both our government and the American government are going to pour BILLIONS of dollars into bailouts and job creation programs. I've been watching the debate with interest. Some of the things that were in the American bill and were cut belie belief. How would some of these things create jobs?

Protectionism isn't fully off the table yet and that may make things much worse. Here's an interesting commentary on the subject. Canada and America are so entwined trade wise any kind of protectionism would be bad for both countries. I would hope though, that since Canada is America's largest stable foreign supplier of oil, and Canada also takes $100-billion more of America's exports than does any other country the people who are debating the stimulus package remember that. For both our countries and the world's sake.

In our recent stimulus budget there were some interesting things on offer. There was an increase in the personal exemption which is always a good way to reduce tax but the one that affects us directly in the Home Renovation Tax Credit. This allows a home owner to do a little work like maybe a new bathroom, kitchen or maybe even a new deck. There is a 15% tax credit up to $10,000. So that give you another $1,350 bucks tax deduction. This little goody is only good for one year and already we've had two bathroom jobs and a fence job booked. That tells me there are still people with money to spend. Unfortunately Steve may not be able to take the jobs since he is has been waiting for hand surgery since October with no date booked yet.

The automakers will get their pound of flesh too but they might have to re negotiate some contracts and take pay cuts. Maybe they will start making cars that people want to buy. If not, they deserve to go under and I'm sorry for all the lost jobs. But really, can we afford to support an industry to makes cars that nobody wants to buy and just sit unsold in parking lots? I desperately need a new vehicle as does my husband but we are loath to buy one now, we'll just make do. We also need to replace the tv which seems to have lost three inches of the picture in recent months but again, waiting is the order of the day.

Around here there will be less yarn purchased for a while and when I get groceries I concentrate more on ways to save money than buying things we want. Luckily for me having been poor before is now serving me in good stead, I really know how to stretch a buck. I don't like it, but what the heck, this too shall pass.

As long as I don't loose my vision, nothing else matters much. My fateful appointment with the Retinal Specialist is Tuesday, wish me luck.