B.C. economy springs back from recession

The Globe and Mail- British Columbia’s economy is picking up steam, with housing prices rebounding faster and higher than expecting, more people finding work and shoppers spending as if the recession never happened.

But the province’s better-than-expected economic performance will likely not mean much this year for the fiscally strapped provincial government, which is spending $1.7-billion more than it is taking in.

Government revenues usually lag behind an economic recovery, B.C. Finance Minister Colin Hansen said Thursday in a brief interview.

Financial losses over the past two years will reduce corporate and personal tax bills for awhile yet. The government will not start to see increased revenue from taxes “until the red ink has worked its way through,” Mr. Hansen said…

B.C. economy springs back from recession – The Globe and Mail

Mortgage changes target ‘reckless’ buyers: Flaherty

Times Colonist-  Jim Flaherty, the Finance Minister, says he is targeting “reckless” speculators who buy up multiple condominium units in the country’s biggest cities with new rules introduced yesterday that will make it tougher for Canadians to get a mortgage.

The reforms were submitted after nearly a week of non-stop warnings from people ranging from a prominent money manager to former Bank of Canada governor David Dodge about an impending housing bubble. The concern was that the real estate market was getting ahead of itself, as buyers took advantage of record-low interest rates to acquire homes.

In introducing the tougher mortgage requirements, Mr. Flaherty said there was “no clear evidence” of a real estate bubble in this country, the kind of which sideswiped the U.S. economy and sparked the worldwide financial crisis…

Mortgage changes target ‘reckless’ buyers: Flaherty

Bank of Canada won’t raise rates to cool housing

The Globe and Mail- The Bank of Canada won’t raise interest rates to cool the country’s hot housing market, a spokesman said Monday, preferring to leave any tinkering to the country’s Finance Minister.

“Some observers – those who see a housing bubble forming – have said that since low interest rates have stimulated housing market activity, the Bank should now raise interest rates to dampen that activity…”

Bank of Canada won’t raise rates to cool housing – The Globe and Mail

Nobody misled on harmonized sales tax during B.C. election says finance minister

 Times Colonist, Victoria, BC – He admitted new home purchasers face tough times. The NDP says the tax will be $36,000 on an $800,000 home; Hansen put the amount at $20,200…

Nobody misled on harmonized sales tax during B.C. election says finance minister

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