StockBullz.com

A very interesting situation is occurring in Vancouver right now. Because of the economic crisis, the city of Vancouver is being held accountable for the projects, which was not the original idea of course.

Vancouver may have to borrow C$458 million ($375 million) or more to finish the 1,100 units by November, Mayor Gregor Robertson said at a news conference this month. That would almost double the city’s debt to about C$928 million, said Stephen Ogilvie, an analyst at Standard & Poor’s in Toronto. The credit- rating company said Jan. 13 that it might cut Vancouver from AA+.

The city took over financing of the C$1.1 billion housing complex after New York-based lender Fortress Investment Group LLC halted funding to the builder when costs ran C$125 million over budget. Taxpayers are reminded of Canada’s last Olympic-sized fiasco: The 1976 summer games in Montreal, which left Quebec with a C$1.5 billion debt that took decades to pay.

I want to highlight a situation that I haven't seen addressed yet (that I know yet). This is the fact that nearly ALL the oil companies are slashing spending by HUGE amounts.

Calgarians will see more layoffs, canceled projects and losses on investment this week and over the next several weeks as oil and gas companies deliver what analysts are predicting will be the worst fourth-quarter results in years.

The contrast with the third quarter, when many companies reported record profits, couldn't be more stark. As oil prices plunged from all-time highs last summer and credit markets tightened, trust companies have chopped distributions to investors, stock prices have plummeted and 2009 spending plans have been cut to the bone. (More here.)

Now I'm not oblivious to the fact that Oil prices are down about 70% from their peaks but why is EVERYBODY doing the exact same thing?