Comments on: Callous media? http://vancouvercondo.info/2007/01/callous-media.html?utm_source=rss&utm_medium=rss&utm_campaign=callous-media Bubble? What Bubble? Wed, 23 May 2012 13:36:04 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: patriotz http://vancouvercondo.info/2007/01/callous-media.html#comment-1945 patriotz Tue, 23 Jan 2007 23:16:00 +0000 http://vancouvercondo.info/?p=172#comment-1945 There has never been any government bailout of homeowners in previous housing crashes in Canada - Toronto early 1990's, Vancouver/Calgary early 1980's, etc. It's just not going to happen.The fact is that the homeowners in trouble are a small minority even in their own cities. No politician with any sense would try to tax the majority to bail them out.Nor has there been any bailout of lending institutions. Of course insured depositors <b>have</b> been compensated by CDIC - that's not a bailout, but an honouring of a contractual obligation which the depositors pay for through lower interest rates.When the Northland Bank and the Commercial and Industrial Bank (Alberta based) failed in the 1980's, uninsured depsitors were also compensated by the Mulroney government - which I disagree with. But the banks themselves were liquidated, and the owners got squat. The Bank of BC also failed and was taken over by HSBC, which honoured all deposits. <p class="top-comments">Current score: <span class="top-comments-karma" id="karma-1945">0</span> <small>(to vote for this comment, please visit the site)</small></p> There has never been any government bailout of homeowners in previous housing crashes in Canada – Toronto early 1990's, Vancouver/Calgary early 1980's, etc. It's just not going to happen.The fact is that the homeowners in trouble are a small minority even in their own cities. No politician with any sense would try to tax the majority to bail them out.Nor has there been any bailout of lending institutions. Of course insured depositors have been compensated by CDIC – that's not a bailout, but an honouring of a contractual obligation which the depositors pay for through lower interest rates.When the Northland Bank and the Commercial and Industrial Bank (Alberta based) failed in the 1980's, uninsured depsitors were also compensated by the Mulroney government – which I disagree with. But the banks themselves were liquidated, and the owners got squat. The Bank of BC also failed and was taken over by HSBC, which honoured all deposits.

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]]> By: scoop http://vancouvercondo.info/2007/01/callous-media.html#comment-1944 scoop Tue, 23 Jan 2007 21:54:00 +0000 http://vancouvercondo.info/?p=172#comment-1944 dingus,Yes, consider that my "Modest Proposal". Tongue firmly in cheek.It's absurd to look to greater government regulation to get us out of this situation or to prevent the same thing from happening in the future. One of the costs of having free markets is putting up with speculative excess. <p class="top-comments">Current score: <span class="top-comments-karma" id="karma-1944">0</span> <small>(to vote for this comment, please visit the site)</small></p> dingus,Yes, consider that my "Modest Proposal". Tongue firmly in cheek.It's absurd to look to greater government regulation to get us out of this situation or to prevent the same thing from happening in the future. One of the costs of having free markets is putting up with speculative excess.

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]]> By: wg2c http://vancouvercondo.info/2007/01/callous-media.html#comment-1943 wg2c Tue, 23 Jan 2007 19:06:00 +0000 http://vancouvercondo.info/?p=172#comment-1943 wannaget2calgary (=wg2c) said:<i>So what's the solution for those that innocently got in over their heads? Government bailout? That will be interesting.</i>I'm reassured by the responses. My fear is that the scale of it all will be such that a political solution along the lines of a bailout (of somebody: borrowers, lenders) may be deemed necessary by those who wish to stay in power ... In the end, you and I (who presumably have been prudent with our money) will pay. <p class="top-comments">Current score: <span class="top-comments-karma" id="karma-1943">0</span> <small>(to vote for this comment, please visit the site)</small></p> wannaget2calgary (=wg2c) said:So what's the solution for those that innocently got in over their heads? Government bailout? That will be interesting.I'm reassured by the responses. My fear is that the scale of it all will be such that a political solution along the lines of a bailout (of somebody: borrowers, lenders) may be deemed necessary by those who wish to stay in power … In the end, you and I (who presumably have been prudent with our money) will pay.

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]]> By: Warren http://vancouvercondo.info/2007/01/callous-media.html#comment-1942 Warren Tue, 23 Jan 2007 14:00:00 +0000 http://vancouvercondo.info/?p=172#comment-1942 Here are some people who deserve what they get. Nobody should be confused about how credit cards work in 2007.There are so many choice quotes in this article, these people are exactly what is wrong with America:<a href="http://abcnews.go.com/2020/story?id=2804927&page=1" rel="nofollow">Morons.</a>Of course, they learn from the <a href="http://articles.moneycentral.msn.com/Investing/JubaksJournal/StateOfTheNationBroke.aspx" rel="nofollow">pros.</a>I hope those links worked. <p class="top-comments">Current score: <span class="top-comments-karma" id="karma-1942">0</span> <small>(to vote for this comment, please visit the site)</small></p> Here are some people who deserve what they get. Nobody should be confused about how credit cards work in 2007.There are so many choice quotes in this article, these people are exactly what is wrong with America:Morons.Of course, they learn from the pros.I hope those links worked.

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]]> By: dingus http://vancouvercondo.info/2007/01/callous-media.html#comment-1941 dingus Tue, 23 Jan 2007 13:48:00 +0000 http://vancouvercondo.info/?p=172#comment-1941 "No person shall buy a home costing more money than the person can afford. Contravention of this regulation shall be an indictable offence." I assume this is tongue in cheek. Seems a tad simplistic -- criminal penalties are pretty clumsy regulation. You'd have to be a bit specific about what "afford" means. If it's a numbers game, many people do stretch and survive. If it's outcome based -- ie the proof is in the foreclosure, then we're back to debtors' prisons. Which wouldn't solve the problem before it occurs, and would just punish the stupid for being stupid. No prosecutor would ever want to try one of these. What about the lenders, brokers, and agents? Lending affordability standards? Minimum downpayments? Verificiation of income requirement? Turfing CMHC so real risk premia are introduced to lending rates? Penalties on lenders with high default rates (over and above market discounting of their securities)? Limits to bankruptcy protection for residential investment losses (like, for example, you can't declare bankruptcy on student loans, for reasons that aren't clear to me). Lotsa stuff. I think on the US much stricter lending standards are on the way. Non traditional loans are a looming disaaster. It seems mortgage fraud has been rampant and foreclosures are spiking. <p class="top-comments">Current score: <span class="top-comments-karma" id="karma-1941">0</span> <small>(to vote for this comment, please visit the site)</small></p> "No person shall buy a home costing more money than the person can afford. Contravention of this regulation shall be an indictable offence." I assume this is tongue in cheek. Seems a tad simplistic — criminal penalties are pretty clumsy regulation. You'd have to be a bit specific about what "afford" means. If it's a numbers game, many people do stretch and survive. If it's outcome based — ie the proof is in the foreclosure, then we're back to debtors' prisons. Which wouldn't solve the problem before it occurs, and would just punish the stupid for being stupid. No prosecutor would ever want to try one of these. What about the lenders, brokers, and agents? Lending affordability standards? Minimum downpayments? Verificiation of income requirement? Turfing CMHC so real risk premia are introduced to lending rates? Penalties on lenders with high default rates (over and above market discounting of their securities)? Limits to bankruptcy protection for residential investment losses (like, for example, you can't declare bankruptcy on student loans, for reasons that aren't clear to me). Lotsa stuff. I think on the US much stricter lending standards are on the way. Non traditional loans are a looming disaaster. It seems mortgage fraud has been rampant and foreclosures are spiking.

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]]> By: patriotz http://vancouvercondo.info/2007/01/callous-media.html#comment-1940 patriotz Tue, 23 Jan 2007 13:32:00 +0000 http://vancouvercondo.info/?p=172#comment-1940 <i>So what's the solution for those that innocently got in over their heads?</i>Same as it's always been - bankruptcy. Why should someone who borrowed 500K to make a foolish investment in a house be treated any differently from someone who borrowed 500K to make a foolish investment in a business? <p class="top-comments">Current score: <span class="top-comments-karma" id="karma-1940">0</span> <small>(to vote for this comment, please visit the site)</small></p> So what's the solution for those that innocently got in over their heads?Same as it's always been – bankruptcy. Why should someone who borrowed 500K to make a foolish investment in a house be treated any differently from someone who borrowed 500K to make a foolish investment in a business?

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]]> By: Real estute http://vancouvercondo.info/2007/01/callous-media.html#comment-1939 Real estute Tue, 23 Jan 2007 13:28:00 +0000 http://vancouvercondo.info/?p=172#comment-1939 "It's not really the attribute that marketers are going to trumpet and going deeply into debt is the American way."Isn't it also the CANADIAN WAY? <p class="top-comments">Current score: <span class="top-comments-karma" id="karma-1939">0</span> <small>(to vote for this comment, please visit the site)</small></p> "It's not really the attribute that marketers are going to trumpet and going deeply into debt is the American way."Isn't it also the CANADIAN WAY?

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]]> By: scoop http://vancouvercondo.info/2007/01/callous-media.html#comment-1938 scoop Tue, 23 Jan 2007 13:15:00 +0000 http://vancouvercondo.info/?p=172#comment-1938 <i>Gov't should set tough regulations so that people don't get into these situations in the first place... get to the root cause.</i>Regulation 101.9(2), enacted January 23, 2007 under the Housing Affordability Act:"No person shall buy a home costing more money than the person can afford. Contravention of this regulation shall be an indictable offence." <p class="top-comments">Current score: <span class="top-comments-karma" id="karma-1938">0</span> <small>(to vote for this comment, please visit the site)</small></p> Gov't should set tough regulations so that people don't get into these situations in the first place… get to the root cause.Regulation 101.9(2), enacted January 23, 2007 under the Housing Affordability Act:"No person shall buy a home costing more money than the person can afford. Contravention of this regulation shall be an indictable offence."

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]]> By: scoop http://vancouvercondo.info/2007/01/callous-media.html#comment-1937 scoop Tue, 23 Jan 2007 13:08:00 +0000 http://vancouvercondo.info/?p=172#comment-1937 <i>So what's the solution for those that innocently got in over their heads?</i>Admit you made a bad choice, suck it up, and work your way out of it however you can. Take responsibility and learn a lesson. Teach your kids what you learned about investment risk. Don't look for someone to blame or bail you out. <p class="top-comments">Current score: <span class="top-comments-karma" id="karma-1937">0</span> <small>(to vote for this comment, please visit the site)</small></p> So what's the solution for those that innocently got in over their heads?Admit you made a bad choice, suck it up, and work your way out of it however you can. Take responsibility and learn a lesson. Teach your kids what you learned about investment risk. Don't look for someone to blame or bail you out.

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]]> By: WoodenHorse http://vancouvercondo.info/2007/01/callous-media.html#comment-1936 WoodenHorse Tue, 23 Jan 2007 11:30:00 +0000 http://vancouvercondo.info/?p=172#comment-1936 Guberment shouldn't get involved....at all. <p class="top-comments">Current score: <span class="top-comments-karma" id="karma-1936">0</span> <small>(to vote for this comment, please visit the site)</small></p> Guberment shouldn't get involved….at all.

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