Delusional Canadian Economists; Anger Mounts In Toronto Over Garbage Collection

Merrill Lynch economist Sheryl King is asking Are investors ready for 10% GDP growth?

Investors should brace themselves for explosive economic growth in the coming quarters as trade with the United States rebounds, Merrill Lynch said Tuesday.

Economist Sheryl King said the latest Bank of Canada report suggests the economy could bounce back with several quarters of 10 per cent growth in the next year. Her report is titled: “Are markets ready for 10 per cent GDP?” The answer to her question is a solid “no.”

She said the Bank's Business Outlook survey turned sharply in the second quarter, with a reading of 39 compared to -22 in the first quarter and “an epic” -34 in the fourth quarter.

“The markets are far too fixated on the slow, halting, return to growth scenario, in our opinion – especially since recoveries virtually never have that nice linear trajectory,” she said.

Anyone suggesting several quarters of 10% GDP growth in Canada or the US is delusional. Since Rosenberg left Merrill Lynch there is no one left at Merrill worth listening to.

Garbage Piles Up In Toronto

While on the subject of Canada, "NiceGuy767" on Silicon Investor is comparing the Detroit Public School system (see Detroit Public School System Ponders Bankruptcy) to the unionized garbage collection system in Toronto.

In a way, the problems of the Detroit public school system is the first wave to hit the beach representing how out of whack things have gotten for government "service" jobs

It may well be that the example of the broken Detroit Public school model is just a precursor of governmental broken models to come.

Today, in Toronto, we have garbage workers, being paid $20 to $50 an hour, out on strike for the 20th successive day leaving the city wallowing in garbage. Not only garbage workers but other related unionized workers, such as day care and park employees, are also out....In this economy, I don't get it. Any unemployed person would happily take on these jobs at 10% to 25% lower pay in this economic environment.

It is now time to enact Reagan-like air-comptrollers legislation and bring in new hires (again plenty of them given escalating unemployment ranks) to clean up the mess.

Strike Hits 24 Days And Counting

Today I asked "NiceGuy767" if the strike was still on. Here is his reply:

Thanks for asking.

Yes they are. 24th day and running.

Apparently there are a fairly large number of strikers, who are unhappy continuing with this strike, but union rules override their angst.

Also, I'm told that Facebook is replete with upset strikers who are compelled to tow the union line.

What is most galling to me is that strikers block the road to the drop off sites, ostensibly, to explain their side of the dispute, which is their legal right. Problem is that there are times when one vehicle is allowed to pass each 15 minutes. Obviously those who consequently wait 3 hours to drop off their refuse aren't too sympathetic to any rationale they can conjure up.

I don't get it! Bring in the scab workers at 80% of what these pikers are being paid, and you'll have an ecstatic lineup of well qualified currently unemployed individuals who would happily accept any reasonable "salary" let alone an incredibly generous pension plan.

The system is broken when we can have real unemployment pushing 20%, many with university and post university backgrounds, while the "sanitation workers, many without their high school credits, are striking and holding the city at ransom.

Time to mimic Reagan's air comptroller methodology, and boot these hacks out once and for all!

Paying $20-$50 an hour plus pensions for garbage pickup is insane given plenty of people would gladly take the job at half that or less, and with no pension. The system is indeed broken, in Canada as in the US.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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