It means the jobless rate is now 6.6%. The construction sector led the tumble, laying off 44,300 workers - the highest monthly figure in that sector since 1976.
Like the Federal Reserve and several other major central banks around the world, the Bank of Canada is currently in rate-hacking mode itself. Last month, it slashed the base rate by 0.75% to 1.5% - the lowest level since 1958 - amid what it called a “broader and deeper” global downturn.
For Canada, this will result in the country’s first budget deficit in more than a decade and a 0.4% drop in GDP. Its major commodities like oil and wheat, which account for half of Canada’s annual export revenue, are also suffering from a lack of demand and falling prices.
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A Parade Of Ponzis
If you thought the Bernie Madoff fiasco was the last you’d hear about unscrupulous Ponzi schemes and investment fraud, think again.
On Thursday, authorities announced that they’ve uncovered two more shady Ponzi operations. And while they amount to only a fraction of the $50 billion that Madoff raked in - and subsequently lost - that isn’t much consolation to the people who invested in these latest two.
Meet Joseph Forte, 53, who allegedly accepted $50 million from some 80 investors. While he reported annual gains between 18.5% and 38% since he began the operation in 1995, turns out his mouth moved faster than his returns. Instead, he had to withdraw $23.1 million of the $50 million he raised to cover his consistent losses.
Unsurprisingly, Forte wasn’t registered with the SEC, who only learned about the fraud after Forte turned himself in late last month after he was unable to cover redemption requests from existing shareholders.
The second Ponzi scheme operator uncovered recently is 82-year old Richard Piccoli. His racket only dates back to 2004, so the total that he’s raked in comes to a “paltry” $17 million. And in true sleazebag fashion, Piccoli ran advertising in Catholic newspapers, thereby largely signing on clergy and religious charities.
Though he guaranteed a return of 7.1% or more by “buying high-quality residential mortgages,” he didn’t actually make any actual ventures into the real estate market.
As the downturn continues and people withdraw large sums of money from their investments, Joel Cohen of the Clifford Chance litigation and dispute resolution practice puts it best: “It’s consistent with previous times when markets are down. The rocks get exposed when the tide has washed away.”
Amid the fear, panic, and financial losses, beware of those who promise a lot, but deliver little as this recession continues.
