4570 replies to this topic

[Nparker]

How will this affect the dream of "tech-toria"?

[Mike K.]

It’s going to be way worse than 2008?

Sounds like some people have some serious short positions.

[AllseeingEye]

How will this affect the dream of "tech-toria"?

 

Never particularly liked that handle myself: VIATec - 'Cultivating the most cohesive tech community in the world'. Really. For starters how is 'cohesiveness' gauged, measured or evaluated? Why is that is a difference maker and why would it make the Victoria technology sector special or stand out? While its great that tech has really emerged especially in the last two decades in this city, serving to diversify the economy and even surpass tourism by a great margin, the tech landscape here remains tiny compared to most major markets, even Canadian ones. Never mind internationally. Dreaming big and having aspirational goals is perfectly fine, even admirable, but Victoria is way down the tech hub list no matter how you slice it.

[spanky123]

It’s going to be way worse than 2008?

Sounds like some people have some serious short positions.

 

Well 2008 wasn't actually that bad for tech. In fact you could argue that the asset shift away from real estate was good for the sector. 2000 was the killer however. 

 

The problem with tech right now is that like 2000, there has been a huge run up in valuations across the industry over the past few years as covid money combined with low interest rates had investors chasing yield in growth stocks. The unwinding we are seeing now is large in terms of dollar value, but prices in many instances are still higher than what they were previously because they ran up so much. 

 

The issue in Victoria is that many of the tech companies are either subs of international companies or startups. Both groups tend to get hit hard in a downtown as investment money dries up and companies look to consolidate and downsize.

[Ismo07]

Unfortunately Victoria will be hit particularly hard due to the large number of smaller tech startups here. Will certainly ease pressure on home and rental pricing and keep office space utilization low.

 

Big hit in store for Canadian tech sector as wave of layoffs looms, industry players say - The Globe and Mail

 

A wave of layoffs and hiring freezes in the American tech sector is set to hit Canada hard, industry watchers say. They warn that although job cuts have already happened here, bigger reductions lie ahead. “The message everyone is receiving is: ‘Protect your capital.’ There will be many more layoffs, no question,” said Jacques Bernier, managing partner with Montreal “fund-of-funds” firm Teralys Capital. “It’s going to be a bloodbath,” said billionaire Vancouver investor and entrepreneur Markus Frind, who owns a majority of online furniture seller Cymax Group Inc. and backs several venture capital firms, all of whom are telling their companies to review their spending plans. “It’s going to be way worse than 2008,″ when the credit crisis sparked a recession.

 

Is this due to Covid?

[spanky123]

^ It is due to the end of free money and rising inflation which is tied to rising interest rates. Money is moving from growth to value/stability.

[Mike K.]

I wonder, would a low-cost lending solution have been the more reasonable way to proceed, with a longer-term amortization? Of course lending is not taxable, but the interest on the government loans would have recouped all or a big portion of the loan amount in lieu of income taxes.

With the job market being the way it is, people with those loans would have the opportunity to pay them down sooner, if they so chose.

Would that have had a different effect on the economy today, in lieu of “free money” in 2020 and 2021? Businesses had similar loans, although with a portion being “free.”

[spanky123]

When I say free money I am referring both to benefit payments like CREB and the various business loan programs but as well as a 0.50% interest rate which allowed banks to borrow and loan money very inexpensively and their customers to leverage up.

 

Speaking of loans though, it will be interesting to see what percentage of companies repay their $40K loan and if the Feds windup having to extend the deadline again or just write it off.

[Ismo07]

I wonder, would a low-cost lending solution have been the more reasonable way to proceed, with a longer-term amortization? Of course lending is not taxable, but the interest on the government loans would have recouped all or a big portion of the loan amount in lieu of income taxes.

With the job market being the way it is, people with those loans would have the opportunity to pay them down sooner, if they so chose.

Would that have had a different effect on the economy today, in lieu of “free money” in 2020 and 2021? Businesses had similar loans, although with a portion being “free.”

 

Not bad, a loan, maybe just with portions tacked on to taxes annually?

[Spy Black]

In business for 65+ years, I just drove by SG Power on Hillside near Douglas and see that they're now permanently closed. 

Big Honda power products dealer, along with a large marine department around the back.

 

They started business as Mullins Marine on Fort Street back before I was born.

Mullins Marine was operated for decades by the legendary Ma Mullins, It was then sold to Bernie Simpson, who eventually moved the operation to the current location on Hillside.

I bought a Yamaha 175 Enduro from Ma Mullins back in the early '70's.

 

It's pretty sad to see these long time Victoria stalwarts shutting down, and they note that staff shortages are one of the primary reasons for their closing ... although there's usually far more to it than just that.

https://www.sgpower.com/

 

... anyway, another one bites the dust.

[Victoria Watcher]

Crazy.

[spanky123]

 ... although there's usually far more to it than just that.

 

You are right!

[Victoria Watcher]

As provinces move to drop most COVID-19 restrictions and mask mandates, many employees are returning to the workplace — whether they like it or not. 

 

And an Angus Reid/CBC poll conducted in March suggests many do not. More than half of respondents (56 per cent) said they would look for another job if asked to return to the office, with almost a quarter (23 per cent) saying they'd quit immediately. 

 

Over and above work-life balance, some are simply worried about being exposed to COVID-19 by being in indoor spaces that might not have adequate ventilation and which no longer require masking or vaccination. 

 

"You're now finding yourself sitting cheek-to-jowl with individuals who are not wearing masks, who are, you know, uncertain in terms of what their vaccine status is, who are now travelling on a daily basis on the GO train or the subway," said Mark Kozicki, a senior manager within a financial institution in Toronto.

 

Even the federal government wants to maintain the hybrid model for Parliament due to COVID.

 

"This pandemic continues and so does the need to have flexibility," said House leader Mark Holland.

 

 

 

 

https://www.cbc.ca/n...demic-1.6496342

Edited by Victoria Watcher, 22 June 2022 - 04:45 AM.

[dasmo]

That’s the coersitizing part of the article. This is the more important highlight that tells us why we are seeing the ripple effects now.
“ Public health restrictions forced many businesses to close, and many Canadians lost their jobs. More than one-third of Canadians (35%) say they left or quit their job during the pandemic. That includes 14 per cent who quit, 12 per cent who lost their job and one-in-ten (9%) who retired or took a time out from the workforce

Many who were forced out of their position, or who stayed on with lower pay or fewer hours, are still feeling the financial and mental health effects. Three-in-ten (30%) of those who lost their job or lost hours during the pandemic say their mental health is ‘a lot’ worse than two years ago. That’s double the number of those who stayed at the same job with no change or a promotion who say the same.”

[Victoria Watcher]

So 23% quit or retired or took a time out from the workforce.

[Victoria Watcher]

CityNews Vancouver:

 

 

 

 

 

Canada's inflation rate skyrockets to 7.7%, highest since 1983

 

Statistics Canada says the annual inflation rate skyrocketed to its highest level in nearly 40 years in May, fueled by soaring gas prices.

The agency says its consumer price index in May rose 7.7 per cent compared with a year ago, its largest increase since January 1983.

Edited by Victoria Watcher, 22 June 2022 - 04:59 AM.

[dasmo]

Looks like it. And 12% fired.

[dasmo]

CityNews Vancouver:





Canada's inflation rate skyrockets to 7.7%, highest since 1983

Statistics Canada says the annual inflation rate skyrocketed to its highest level in nearly 40 years in May, fueled by soaring gas prices.

The agency says its consumer price index in May rose 7.7 per cent compared with a year ago, its largest increase since January 1983.

This might bring some back out of retirement

[Mike K.]

That leaves only Kenco in Sooke as a south Island motorbike dealer, then?

[Victoria Watcher]

Barnes:

 

https://www.barnespo...m/inventory/v1/

 

Island Motorcycle:

 

https://www.islandmoto.ca/

Edited by Victoria Watcher, 22 June 2022 - 06:18 AM.