Mortgage crisis spreads beyond sub-prime
Condohype just sent in this link to the main story in todays New York Times: Mortgage crisis spreads beyond sub-prime. This story will be of interest to anyone who believes that our local economy is affected by the US, our largest trading partner.
As home prices fall and banks tighten lending standards, people with good, or prime, credit histories are falling behind on their payments for home loans, auto loans and credit cards at a quickening pace, according to industry data and economists.
Chip posted this link to a government of canada site in the previous thread which I believe neatly ties into why US economy stories relate to Vancouver real estate prices:
RSS 2.0 comments feed. Both comments and pings are currently closed.Canada’s economy is less than a tenth of the US economy and it is highly dependent on the US economy. Eighty-five percent of Canadian exports are destined for the US and about fifty-nine percent of its imports come from the US.
February 24th, 2008 at 9:18 am
It is without doubts that our local economy is affected by the US. It has to be. They are our neighbour and our largest trading partner. As you mentioned in your article “Eighty-five percent of Canadian exports are destined for the US and about fifty-nine percent of its imports come from the US”, so that’s quite an influence. I am not as familiar with the situation in Vancouver as you are, but here in Toronto neighbourhoods it looks probably similar. Some brokers used predatory lending to sell to people thet were not good candiates for mortgages, appraisals were over inflated to close on home, and resale values fell. Easy.
February 14th, 2008 at 9:08 am
“The outlook for the economy has worsened in recent months, and the downside risks to growth have increased,” Bernanke told the committee. “To date, the largest economic effects of the financial turmoil appear to have been on the housing market, which, as you know, has deteriorated significantly over the past two years or so.” Bernanke also said that the “virtual shutdown” of the market for subprime mortgages — given to people with blemished credit histories or low incomes — and a reluctance by skittish lenders to make “jumbo” home loans exceeding $417,000 have aggravated problems in the housing market.
I’m sure that lenders don’t have a problem lending large amounts to people that can pay it back. I suspect they just don’t want to give jumbo loans to deeply in debt people earning $35k a year so they can buy speculative overvalued property. Whats wrong with that picture?
February 14th, 2008 at 9:04 am
Forgot the link to the full story:
http://www.msnbc.msn.com/id/23164148/
February 14th, 2008 at 9:04 am
Federal Reserve Chairman Ben Bernanke told Congress Thursday that the country’s economic outlook has deteriorated and signaled that the central bank is ready to keep on lowering a key interest rate — as needed — to shore things up.
If stupidity got us into this mess, why can’t it get us out?
February 14th, 2008 at 8:17 am
Some better RE value perhaps?
http://www.ushomeauction.com/a.....ration.php
February 13th, 2008 at 9:51 pm
“I was driving by broadway and cambie I saw road block and a seen of recent explosion at 686 WB”
Keep trying….if you try and try again (your suicide bombing stunt) you will succeed one day. We are standing behind you….way behind you.
February 13th, 2008 at 7:01 pm
Wrong. RE prices are determined by the buyer, not the seller. What the seller thinks their house is worth is irrelevant.
February 13th, 2008 at 5:10 pm
Whoops, that’s STFU. Hey, this is fun! Why bother replying to a helmet wearing ‘tard? Only one response will do:
STFU!
February 13th, 2008 at 5:09 pm
Hey Krrish
SFTU.
February 13th, 2008 at 4:50 pm
Ohh Krissh, how clever of you to post as an anonymous poster.
February 13th, 2008 at 4:42 pm
Tony,Btk,Scullboy,
you guys are annoying dog barking if you don’t get it read the brand new post from the pope.You guys should post your opinion on related topics do not make this thread boring.
“Anyone here reading from NJ or NY”?-Tony
“Why do you ask”?-Scullboy
“Krissh1, you have never responded to anything”.-Bdk
krrish1
2008-02-07 18:14:03
but we have our own Canadian cities- we are not American cities those are victim of Natural Disaster,Threats,Subprime Mess,Gambling Addiction,and Field Wars.
No, since the wisemens are coming to know that they are drinking recycling water from glycol recovery shhhs those are running to buy in Vancouver B.C.
California stink with smell of marlboro and industrial gases now it’s right time for them to buy here.
bdk?Hello? and also check the link from MS kids on the fresh post,you guys refuse to believe,reject the truth too often don’t ya?
February 13th, 2008 at 4:21 pm
I third that SHUT THE F^CK UP KRISSH
*Krissh is too stupid to understand abbreviations.
February 13th, 2008 at 4:16 pm
I second that. Krrish, STFU.
February 13th, 2008 at 4:14 pm
I think this whole mentality is part of the problem. “Our house should be worth 600K because we say so.”
February 13th, 2008 at 3:31 pm
STFU
February 13th, 2008 at 2:19 pm
Yes, only up to $250K though.
February 13th, 2008 at 2:15 pm
Krissh1, you have never responded to anything.
You have written a bunch of borderline retarded regurgitated sales pitches with the occasional rap and incoherent tales about “wisemans”.
Imagine going into a Hyundai Dealership and the car salesman telling you that the Hyundai was as good as a Porsche, would you repeat this as truth? Would you then pay the same price for a Hyundai as a Porsce and start rambling incoherently on blogs about your “Porsche like” car?
So why would you, or the otehr troll on here, believe Vancouver is anywhere near the same league as New York? Because a realtor told you?
Has it occurred to you that realtors make commission off of sales?
What is it you do that makes you think you know anything?
You’ve never said anything that indicates you’re more than 12 years old.
Drachen, you’re right about the nickname. I’ve been watching too much Dexter..
I never intended to get into posting for more than a day but wanted to identify myself in case I was to reply and I think people posting under “anonymous” aren’t playing fair.
I never posted in a forum before but was driven to posting after reading ridiculously ignorant and repetitious postings from Trolls like Satv/Krissh and Dosh.