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The comprehensive index of every blog post, magazine story and restaurant review that appears on Torontolife.com

All stories relating to Recession

The Informer

To Market, To Market

4 Comments

Bubble trouble: the Toronto condo boom may (or may not) soon go bust

Is the Toronto condo market in a bubble? Who knows! Yesterday, the Bank of Canada warned that the condo boom is about to get seriously less boomy (apparently, “the supply of completed but unoccupied condominiums is elevated, which suggests a heightened risk of a correction in this market”). Sure, that may sound gloomy, but some indicators of the market’s health aren’t even tracked. For instance, although rumour has it that foreign investors are buying all the condos they can, according to the Globe and Mail, Canada doesn’t track foreign investment in its real estate market. Meanwhile, National Bank analyst Stefane Marion believes a recession is the real threat to the housing market, and Urbanation predicts 2011 will actually be a record year for Toronto condo sales. If you’re not sure what to think, don’t worry: we’re pretty sure nobody really knows (not even The Economist). Read the entire story [Globe and Mail] »

(Images: Toronto skyline, Seekdes (Mike in TO); bubble, Rhett Maxwell)

The Informer

To Market, To Market

1 Comment

Ontario developer risks $15 billion taking the lead in monumental Manhattan transformation

The Manhattan site where an Ontario developer is proposing to build 5,000 new apartments (Image: Roblawol)

Manhattan Island was long thought to be fully built out, but apparently Canada’s largest real estate developer aims to conjure an entire neighbourhood on top of a 26-acre rail yard nonetheless. Oxford Properties—the real estate arm of the Ontario Municipal Employees Retirement System—has an ambitious vision of 5,000 new apartments, but it will first need to construct a $1.5 billion platform above the Hudson train yards in the island’s west end. It’s a Herculean task: New York City hasn’t seen such a transformation in over 100 years, when a similar platform was erected over Park Avenue and Grand Central Station. Oxford only took charge of the $15 billion project after some of the biggest names in U.S. real estate and finance pulled out, including Goldman Sachs and Tishman Speyer. The recession has bruised the American real estate sector to the degree that many companies can’t stomach the risk involved—especially since thousands of layoffs have left plenty of free office space in New York. The modest Canadians, however, still have the cash and cojones for such ventures. Construction starts next year, and hopefully the gamble pays off; the fund that sustains hundreds of thousands of Canadian pensions depends on Oxford’s success. Read the entire story [The Globe and Mail] »

The Informer

From the Print Edition

15 Comments

The Loaded List: we catalogue the astronomical salaries of Toronto’s ruling class

The Loaded List
It’s not particularly polite to ask rich people what they earn. But tact is overrated, and we wanted to know, so we asked anyway. When they told us to get lost, we got sneaky. We dug up disclosure documents, annual reports and the tax filings of charitable organizations. When those trails went dry, we surveyed industry insiders who know what other people make—headhunters and consultants and analysts and colleagues—and asked for an educated guess. After hundreds of calls and emails and deep-throat meetings in dark alleys, we phoned the high earners back and told them what we found. Again, with feeling, they told us to piss off.

What follows is our shamelessly gawking, as-precise-as-possible examination of the highest-paid people in the city’s top industries. When the information was available, we included bonuses and perks and, in some cases, exercised stock options. Our findings verified that a high earner in finance is almost always on a different plane (a private jet, usually) than a high earner in, for example, the lowly arts. One major discovery: Heather Reisman took a pay cut. One truth reconfirmed: no matter how rich you are, there’s always someone who makes a helluva lot more.

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VIEW BY INDUSTRY » GOLD ARTS AND ENTERTAINMENT FUND MANAGERS SPORTS SHOP OWNERS MEDIA LANDLORDS BAY STREET PUBLIC SERVANTS

VIEW BY SALARY » SEE 69 OF THE RICHEST PEOPLE IN THE CITY’S TOP INDUSTRIES, SORTED BY SALARY FROM HIGHEST TO LOWEST

The Informer

From the Print Edition

31 Comments

Destination Munkistan: A look at Peter Munk’s new Adriatic playground for the super-rich

The latest project of the gold magnate Peter Munk is a seaside resort and tax haven for fellow billionaires in the post-Soviet backwater of Tivat, Montenegro. A delirious tour of a world of champagne-drenched parties, supersize yachts and the recession-proof Ultra-High Net Worth Individual

Captain Fantastic: Peter Munk on his 40-metre yacht, the Golden Eagle, which has a full-time staff of five. (Image: Jim Ross)

Captain Fantastic: Peter Munk on his 40-metre yacht, the Golden Eagle, which has a full-time staff of five. (Image: Jim Ross)

There are birthday parties, and then there was Nathaniel Rothschild’s party this past July. The financier, scion of the prominent banking family and future baron was turning 40 and spent £1 million on the weekend-long extravaganza. The venue: Porto Montenegro, a newly developed luxury resort and marina in the Montenegrin coastal town of Tivat, on the southeast side of the Adriatic Sea. It was the sort of gathering that marks the end of an era or the birth of an empire—and in a way, for Europe’s youngest and smallest democracy, it was both.

Four hundred guests arrived at the village airport on private jets or stepped off the fleet of super-yachts that washed ashore from the world’s most glamorous tax havens—the Grenadines, Gibraltar, Grand Cayman. The attendees were described in the Guardian society pages as “200 ugly rich people and their poorer but more attractive partners,” or, as one guest more generously put it, “plutocrats and the women who love them.” A number of the partiers were so fantastically rich they could bankroll whole armies (which the birthday boy’s family, in its heyday, once did): Russian oligarch Oleg Deripaska (who arrived on his £70-million yacht, the Queen K); the wealthy Egyptian Sawiris family (who have embarked on their own Montenegrin development nearby); King Leruo Molotlegi, ruler of a tiny, platinum-rich part of South Africa, who hit the dance floor in a fabulous dashiki; British politician Lord Peter Mandelson; Jimmy Choo honcho Tamara Mellon; the historian Niall Ferguson and his Dutch-Somali partner, Ayaan Hirsi Ali, a feminist critic of Islam. There was a healthy smattering of European royalty, as well as members of the Guinness and Goldsmith clans.

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The Informer

Opine for Business

1 Comment

Paul Krugman squares off against Lawrence Summers on the economy at the next instalment of the Munk Debates 

While the Occupy protestors entrenched in St. James Park are proof enough that times are bad, four high-profile economists are set to debate whether we’re clawing our way out of the recession or if we are, indeed, truly sunk. “Be it resolved, North America faces a Japan-style era of high unemployment and slow growth” is the topic of November’s Munk Debates, in which New York Times columnist Paul Krugman and Gluskin Sheff’s David Rosenberg argue for and former Treasury Secretary Lawrence H. Summers and Eurasia Group’s Ian Bremmer argue against. These titans have more Wall Street cred than Scrooge McDuck, so the discussion should be one to watch—and maybe by the end we’ll know whether we’re in brioche or gruel for the next decade. Read more at the Munk Debates website »

The Informer

From the Print Edition

1 Comment

How Israeli developer Gil Blutrich built his empire of vacation destinations for the yachting class in southern Ontario

Gil Blutrich

Gil Blutrich. (Image: Christopher Wahl)

Gil Blutrich believes in destiny. When he was a boy growing up in Ra’anana, a town north of Tel Aviv, he spent a lot of time fantasizing about what he wanted for his bar mitzvah. While most of the boys in his class opted for expensive stereo systems or family vacations in Europe, Blutrich chose to redecorate his room. It was the early ’70s, and photographic wallpaper murals were all the rage. Blutrich passed over the tropical beach scenes and snow-capped mountains for something different: a summer landscape with a lush green meadow and a reedy frog pond. It was, he now believes, a postcard of southern Ontario, cosmically mailed back in time by his future self. “I looked at that wallpaper every day until I was 18, and it’s only now I realize I was looking at Canada and thinking about Canada before I even knew it. If that’s not destiny, I don’t know what is.”

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The Informer

Election Whoas

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Reaction Roundup: sailing metaphors, locker room talk and ignoring Toronto. The skinny on what happened at last night’s provincial election debate

Given the amount of chatter generated by Dalton McGuinty’s erratic hand gestures last night, it would seem that the provincial election leader’s debate was the uninspiring affair that most suggested it would be. Aside from a few exciting moments and a couple of strange ones (like Andrea Horwath’s locker room anecdote), the debate was predictable enough to get any viewer properly buzzed—and we don’t mean on the political intrigue. Of course, even if uneventful, the debate could still play an important role in the final stretch of the campaign. With that in mind, we give you our summation of the ink that’s been spilled on the subject, after the jump.

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The Informer

My Name Is Lucre

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Finding no buyers for its last few stores, Blockbuster concedes an inevitable, crushing defeat 

In the long, drawn-out saga of Blockbuster Canada’s demise, today marks a grim day for the national movie rental chain: already under a court-ordered receivership, the company is set to shut down all of its few remaining operations. Blockbuster’s folding isn’t just the work of YouTube, Netflix and piracy (we’re pretty sure that the worldwide recession did a lot of the heavy lifting), but it is a fairly impressive sign of how the film market is changing. HMV, for one, is downsizing, including the store at Yonge and Dundas, YouTube Canada just announced it will start renting movies and, in general, the movie retail industry doesn’t look much in 2011 like it did in 2001. Read the entire story [CBC] »

The Hype

From the Print Edition

25 Comments

How the music now ruling the rap charts became so decidedly middle-class

Organzied Rhyme

(Image: Gluekit; D-Sisive by Melanie Moore; Shad by Christine Lim; Drake by Christian Lapid/CP Images; Airplane Boys by Justin Create)

At 3:46 a.m. on December 12, 2010, a post titled “Introducing The Weeknd” appeared on the blog of Toronto’s most famous rapper, Drake. Two songs—“What You Need” and “The Morning”—revealed a new R&B singer to the world and kick-started a rabid following. The Weeknd’s free nine-song release House of Balloons garnered 200,000 downloads in its first three weeks, and his videos have been watched on YouTube hundreds of thousands of times. It’s been a rapid rise, like that of his mentor, Drake, whose 2010 full-length debut Thank Me Later went platinum in the U.S. just over a month after its release. This is Toronto’s hip-hop moment, and the city’s steadfast identity as safe, stable and middle-class—once the basis of its lack of rap credibility­—is the reason.

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The Informer

My Name Is Lucre

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TMX-LSE merger cancelled, Bay Street bankers rejoice

(Image: Fabian Fischer)

The proposed merger between the Toronto and London stock exchanges is apparently dead in the water. News broke shortly before 1 p.m. this afternoon that the proposed marriage between the TMX Group and the London Stock Exchange is off after Toronto investors gave it a less-than-wholehearted endorsement ahead of the vote scheduled for tomorrow. With the deal’s collapse, we’re pretty sure we could hear the shouts of glee coming all the way from Bay Street.

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The Informer

To Market, To Market

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While the rest of the market sinks, million-dollar cottage sales are making a comeback

(Image: sookie)

Inclement weather may have stalled cottage sales in general, but somehow, luxury properties in cottage country are still going strong. According to real estate agents who wheel and deal in Lake Muskoka getaways with big-dollar price tags, the luxury offerings in the recreational market—like this one—have picked up thanks to softening prices and lower interest rates. It’s great news, of course, for those high-end realtors, the Torontonians who want to blow their wad on a cottage this summer and American property holders seeking to cash in on the strong Canadian dollar. But Toronto condo dwellers looking to step out of their shoeboxes and into cottage country’s open spaces may have to wait a little longer than they’d expected for the right property to come on the market.

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The Informer

From the Print Edition

2 Comments

50 Reasons To Love Toronto: No. 3, Jim Flaherty saved Bay Street

No. 3: Jim Flaherty is the saviour of Bay Street

(Image: Philip Burke)

Jim Flaherty is a pugnacious little jerk. Short in stature, he has the cruel eyes of a fighter, and the bent nose to go with it. Torontonians never warmed to him as a Harris-era minister at Queen’s Park, and many were unpleasantly surprised when, in 2006, he was elected to Ottawa and became Stephen Harper’s finance minister. Then he weasled his way into our good graces.

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The Informer

To Market, To Market

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Like Ontario’s sun-deprived residents, Muskoka cottage sales suffered through a depressing spring

A Muskoka cottage (Image: Mathew Ingram)

Word is that Canada is in for a long, hot summer, but so far southern Ontario has been forced to weather (guffaw) a prolonged grey and dreary spring. While the wet weather is a boon for some—grass comes to mind—it’s pretty depressing for the rest of us, including sun-loving Torontonians of all stripes and, apparently, cottage owners. It turns out that the cold, damp environs are making it difficult for those looking to sell their second home in Muskoka.

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The Dish

From the Print Edition

9 Comments

The sipper club: meet the city’s competitive cabal of top sommeliers

Will Predhomme belongs to a competitive cabal of top sommeliers who sniff, sip and spit their way through hundreds of bottles a week. They do this to help you decide what to drink with your dinner, while making you think it was your idea all along

One hundred and fifty-one people have reservations at Canoe tonight. Among these are many Bay Streeters, a couple celebrating their 25th wedding anniversary, dozens of people on dates, including the bar manager from Crush, and a young woman who plans to propose to her boyfriend over dinner. The two private dining rooms are fully booked.

Canoe, part of the ever-expanding Oliver and Bonacini empire, is routinely considered one of the finest restaurants in the city. Last summer, in a rigorous competition held by the Canadian Association of Professional Sommeliers, known as CAPS, Canoe’s head sommelier, Will Predhomme, was proclaimed Ontario’s best. Predhomme has devoted a third of his life—he’s 29—to wine scholarship. He now knows more about wine than almost anyone in Toronto.

Just after 5 p.m., the bar area begins to fill up with commuters sipping cocktails as they wait for the traffic on the clogged Gardiner, 54 floors below, to dissipate. One of the restaurant’s first guests, a retired trial lawyer, arrives. As a young female host escorts him to his large corner table, he puts an arm around her shoulder. “I don’t like to pay bills,” he says. “I want a fucking account. Last time I was here, I offered those ladies”—referring to the hosts who greeted him at his last visit—“$300 and told them to set up an account for me. And I still don’t have one.” He and his three dining companions, Canoe regulars, have brought in several bottles of their own wine, including a cabernet franc from the ex-lawyer’s private vineyard in Tuscany. When Predhomme arrives at the table to discuss the wine, the ex-lawyer, captivatingly bratty in a way that only the rich and sort-of-powerful can be, repeats his complaint. “Look, I spend about $50,000 a year at Bymark, and I’d do the same here if I had a fucking account.” Predhomme is unmoved, but gracious. “If you give me your contact information,” he says, “I’ll make sure that it gets to the right people.”

“You’ll get me an account?”

“I’ll look into it.”

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The Informer

Opine for Business

4 Comments

Air Canada to launch new low-cost airline

(Image: Bill Abbott)

Canadians looking for cheap fares to Cuba and Mexico will be getting more flight options—it’s just not clear when or under what circumstances. According to the Globe and Mail, the Canadian aviation giant is looking to squeeze into the low-cost holiday-package market space that’s already crowded by Westjet, Transat and Sunwing.

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