In just about an hour and a half Premier Christy Clark will unveil her full “Jobs Plan” with the Vancouver Board of Trade.
The timing isn’t the best because today the assembled guests are watching their companies tank on the TSX, S&P and the Dow as the Global economy is hit with more evidence that we are in a double dip recession.
It’s unlikely Clark will have the room’s full attention as tables of suits, Blackberries in hand, watch the value of their companies and holdings drain away. At just after mid-day the TSX is off over 400 points, or over 3% of its value. The Dow is running about the same.
And the big losers? Energy and Mining stocks. The big losers include all the names in those sectors: Suncor, Barrick, Enbridge and Teck. BC’s own Teck Corp. has suffered some of the largest losses with its shares losing 6% of their value.
Mining and Energy are two of Clark’s big targets for new jobs. Not going to happen.
Worldwide the markets are moving into bear territory for one reason… and its not debt. The markets are tanking because people aren’t buying their products. The sell-0ff started with new European data on demand, pointing to a new recession. It intensified with new higher than expected jobless claims in the U.S., again pointing to a new recession.
And when nobody is buying it means nobody is buying things made out of the commodities BC sells.
Copper (along with coal) Teck’s bread and butter is falling in price as Asian companies stop buying. Coal has hit an unexpected low as demand falls amongst steelmakers. The same is true for just about every commodity BC sells.
The news is no better in the energy sector. Without BC Hydro, there are no buyers for BC’s run of the water energy companies. And the news is no better for oil.
So the question for Clark is ‘what if you unveiled a non-stimulus based jobs plan and nobody came to play’? What if, as is likely, she ends up with job losses instead of job gains at election time?
Despite all the ooing and awing she’ll face today in her controlled media event Clark is on very dangerous ground. She has completely misread the direction of BC’s economy and the associated human needs. Her government is looking for cuts with no room for stimulus, meaning more job losses.
Clark’s insignificant job plan is geared to 2020, not now. It would unlikely achieve much in the long run. It will achieve nothing in the short run. And the people who will pay for her inability to focus on the here and now are the average working people of BC.
Say hello to growing job losses and a spreading recession in Christy Clark’s BC.