Comments on: Canadian banks not the best? http://vancouvercondo.info/2009/07/canadian-banks-not-the-best.html Bubble? What Bubble? Thu, 09 Feb 2012 02:53:26 +0000 hourly 1 By: Ahab http://vancouvercondo.info/2009/07/canadian-banks-not-the-best.html#comment-49179 Ahab Sun, 05 Jul 2009 00:48:50 +0000 http://vancouvercondo.info/?p=1242#comment-49179 <I>No, that’s the true strengh of the RE market, not the banks. Making a government insured loan is a no-lose proposition for the banks, and the risky loans are almost all insured. The banks aren’t stupid (well CIBC is stupid, but they are prevented from making stupid loans on Canadian RE). The taxpayers are holding the bag, not them. You're ignoring commercial real estate.<p class="top-comments">Current score: <span class="top-comments-karma" id="karma-49179">2</span> <small>(to vote for this comment, please visit the site)</small></p> No, that’s the true strengh of the RE market, not the banks. Making a government insured loan is a no-lose proposition for the banks, and the risky loans are almost all insured. The banks aren’t stupid (well CIBC is stupid, but they are prevented from making stupid loans on Canadian RE). The taxpayers are holding the bag, not them.

You’re ignoring commercial real estate.

Current score: 2 (to vote for this comment, please visit the site)

]]> By: doug r http://vancouvercondo.info/2009/07/canadian-banks-not-the-best.html#comment-49165 doug r Sat, 04 Jul 2009 18:59:00 +0000 http://vancouvercondo.info/?p=1242#comment-49165 Another 7 US banks failed Thursday: http://www.fdic.gov/bank/individual/failed/banklist.html<p class="top-comments">Current score: <span class="top-comments-karma" id="karma-49165">0</span> <small>(to vote for this comment, please visit the site)</small></p> Another 7 US banks failed Thursday:
http://www.fdic.gov/bank/indiv.....klist.html

Current score: 0 (to vote for this comment, please visit the site)

]]> By: patriotzed http://vancouvercondo.info/2009/07/canadian-banks-not-the-best.html#comment-49109 patriotzed Fri, 03 Jul 2009 10:53:16 +0000 http://vancouvercondo.info/?p=1242#comment-49109 <a href="#comment-49108" rel="nofollow">other ted</a>: The difference is if I think the stock market is overvalued I can short sell (or implement an equivalent option strategy) and make a bundle if I'm right. I can also sell off my stock holdings in any amounts I like if I feel they are getting overpriced. You can't do that with RE. If stupid people are willing to pay too much, there is nothing smart people can do but wait for prices to fall.<p class="top-comments">Current score: <span class="top-comments-karma" id="karma-49109">0</span> <small>(to vote for this comment, please visit the site)</small></p> other ted:
The difference is if I think the stock market is overvalued I can short sell (or implement an equivalent option strategy) and make a bundle if I’m right.

I can also sell off my stock holdings in any amounts I like if I feel they are getting overpriced.

You can’t do that with RE. If stupid people are willing to pay too much, there is nothing smart people can do but wait for prices to fall.

Current score: 0 (to vote for this comment, please visit the site)

]]> By: other ted http://vancouvercondo.info/2009/07/canadian-banks-not-the-best.html#comment-49108 other ted Fri, 03 Jul 2009 08:42:50 +0000 http://vancouvercondo.info/?p=1242#comment-49108 patriotz says "And I really don’t care what a magazine survey says, I care what the market says, and BMO for example has recently traded at twice its low of $25 earlier this year. All the banks have also had sold-out issues of new preferreds in the last few months. This is money talking. " Good point but some bulls will point out that thet don't care what we say but what the market says about real estate.<p class="top-comments">Current score: <span class="top-comments-karma" id="karma-49108">1</span> <small>(to vote for this comment, please visit the site)</small></p> patriotz says
“And I really don’t care what a magazine survey says, I care what the market says, and BMO for example has recently traded at twice its low of $25 earlier this year. All the banks have also had sold-out issues of new preferreds in the last few months. This is money talking.

”

Good point but some bulls will point out that thet don’t care what we say but what the market says about real estate.

Current score: 1 (to vote for this comment, please visit the site)

]]> By: asalvari1 http://vancouvercondo.info/2009/07/canadian-banks-not-the-best.html#comment-49107 asalvari1 Fri, 03 Jul 2009 08:06:05 +0000 http://vancouvercondo.info/?p=1242#comment-49107 Vansanity, Thats fine, nobody knows either. Don't beat yourself on this, just try not to bet on particular outcome.<p class="top-comments">Current score: <span class="top-comments-karma" id="karma-49107">0</span> <small>(to vote for this comment, please visit the site)</small></p> Vansanity,

Thats fine, nobody knows either. Don’t beat yourself on this, just try not to bet on particular outcome.

Current score: 0 (to vote for this comment, please visit the site)

]]> By: DEFAULT NAME http://vancouvercondo.info/2009/07/canadian-banks-not-the-best.html#comment-49103 DEFAULT NAME Fri, 03 Jul 2009 06:13:36 +0000 http://vancouvercondo.info/?p=1242#comment-49103 Yeah, but come on, how likely is it that rates will go up to 4 percent...oh shi....<p class="top-comments">Current score: <span class="top-comments-karma" id="karma-49103">2</span> <small>(to vote for this comment, please visit the site)</small></p> Yeah, but come on, how likely is it that rates will go up to 4 percent…oh shi….

Current score: 2 (to vote for this comment, please visit the site)

]]> By: patriotzed http://vancouvercondo.info/2009/07/canadian-banks-not-the-best.html#comment-49102 patriotzed Fri, 03 Jul 2009 05:45:26 +0000 http://vancouvercondo.info/?p=1242#comment-49102 <a href="#comment-49093" rel="nofollow">observer</a>: <i>The only way to determine the true strength of Canadian banks is to see what would happen if a sizeable percentage of their RE loans (not insured by CMHC) defaulted.</i> No, that's the true strengh of the RE market, not the banks. Making a government insured loan is a no-lose proposition for the banks, and the risky loans are almost all insured. The banks aren't stupid (well CIBC is stupid, but they are prevented from making stupid loans on Canadian RE). The taxpayers are holding the bag, not them. Any sensible person should be up at arms at our "Conservative" government for allowing this idiocy to go on, in the face of the consequences seen south of the border. Getting rid of the 0/40 (which they instituted in the first place) is just window dressing. And I really don't care what a magazine survey says, I care what the market says, and BMO for example has recently traded at twice its low of $25 earlier this year. All the banks have also had sold-out issues of new preferreds in the last few months. This is money talking. And yes I am a bank shareholder, although I have taken some profits lately.<p class="top-comments">Current score: <span class="top-comments-karma" id="karma-49102">2</span> <small>(to vote for this comment, please visit the site)</small></p> observer:
The only way to determine the true strength of Canadian banks is to see what would happen if a sizeable percentage of their RE loans (not insured by CMHC) defaulted.

No, that’s the true strengh of the RE market, not the banks. Making a government insured loan is a no-lose proposition for the banks, and the risky loans are almost all insured. The banks aren’t stupid (well CIBC is stupid, but they are prevented from making stupid loans on Canadian RE). The taxpayers are holding the bag, not them.

Any sensible person should be up at arms at our “Conservative” government for allowing this idiocy to go on, in the face of the consequences seen south of the border. Getting rid of the 0/40 (which they instituted in the first place) is just window dressing.

And I really don’t care what a magazine survey says, I care what the market says, and BMO for example has recently traded at twice its low of $25 earlier this year. All the banks have also had sold-out issues of new preferreds in the last few months. This is money talking.

And yes I am a bank shareholder, although I have taken some profits lately.

Current score: 2 (to vote for this comment, please visit the site)

]]> By: Vansanity http://vancouvercondo.info/2009/07/canadian-banks-not-the-best.html#comment-49101 Vansanity Fri, 03 Jul 2009 05:19:30 +0000 http://vancouvercondo.info/?p=1242#comment-49101 “But we don’t have a lot of [wiggle] room,” Morettie said. “We can go up to four percent, but then we’re done.” This is particularly scary considering variable rate mortgages (on average) were around 5.60% waaaayyy back in good ol' November of '07! I keep hearing a lot about deflation, inflation, hyperinflation and stagflation... each with its own impact on interest rates. I don't have a clue what to expect anymore.<p class="top-comments">Current score: <span class="top-comments-karma" id="karma-49101">2</span> <small>(to vote for this comment, please visit the site)</small></p> “But we don’t have a lot of [wiggle] room,” Morettie said. “We can go up to four percent, but then we’re done.”

This is particularly scary considering variable rate mortgages (on average) were around 5.60% waaaayyy back in good ol’ November of ’07!

I keep hearing a lot about deflation, inflation, hyperinflation and stagflation… each with its own impact on interest rates. I don’t have a clue what to expect anymore.

Current score: 2 (to vote for this comment, please visit the site)

]]> By: Bilbo Bloggins http://vancouvercondo.info/2009/07/canadian-banks-not-the-best.html#comment-49100 Bilbo Bloggins Fri, 03 Jul 2009 04:57:33 +0000 http://vancouvercondo.info/?p=1242#comment-49100 Skye (#4) - we're also more expensive than the OC (Orange County) and Hong Kong, but then again we the OWE-lympics.<p class="top-comments">Current score: <span class="top-comments-karma" id="karma-49100">3</span> <small>(to vote for this comment, please visit the site)</small></p> Skye (#4) – we’re also more expensive than the OC (Orange County) and Hong Kong, but then again we the OWE-lympics.

Current score: 3 (to vote for this comment, please visit the site)

]]> By: zoogle http://vancouvercondo.info/2009/07/canadian-banks-not-the-best.html#comment-49099 zoogle Fri, 03 Jul 2009 04:45:56 +0000 http://vancouvercondo.info/?p=1242#comment-49099 <a href='http://albertabubbleblog.blogspot.com/' title='' rel="nofollow">zoogle</a><p class="top-comments">Current score: <span class="top-comments-karma" id="karma-49099">-1</span> <small>(to vote for this comment, please visit the site)</small></p> zoogle

Current score: -1 (to vote for this comment, please visit the site)

]]> By: gvrdpropertyowner http://vancouvercondo.info/2009/07/canadian-banks-not-the-best.html#comment-49098 gvrdpropertyowner Fri, 03 Jul 2009 04:08:46 +0000 http://vancouvercondo.info/?p=1242#comment-49098 “But we don’t have a lot of [wiggle] room,” Morettie said. “We can go up to four percent, but then we’re done.” Ladies and gentleman you are witnessing the birth of the sub-prime borrower who will become the third wave of foreclosures. Wave-one of foreclosures, over-extended (negative cash flow) investors after the Olympics- where are all the foreign buyers that my real estate agent told me would come and buy my condo? Wave-two (this is actually sad) unemployed people who just can't make that $4000.00 a month mortgage payment. The sub-primers will become the third-wave after the rebound in the world economy causes interest rates to rise- of course, B.C.'s lagging economy will still be in recession. This article posted by Ulsterman, provides evidence that sub-prime doesn't cause bubbles- or collapses- bubbles cause sub-prime. Run out of legitimately qualified buyers to prop up an over inflated market? No problem: lend anyone any amount.<p class="top-comments">Current score: <span class="top-comments-karma" id="karma-49098">8</span> <small>(to vote for this comment, please visit the site)</small></p> “But we don’t have a lot of [wiggle] room,” Morettie said. “We can go up to four percent, but then we’re done.”

Ladies and gentleman you are witnessing the birth of the sub-prime borrower who will become the third wave of foreclosures.

Wave-one of foreclosures, over-extended (negative cash flow) investors after the Olympics- where are all the foreign buyers that my real estate agent told me would come and buy my condo? Wave-two (this is actually sad) unemployed people who just can’t make that $4000.00 a month mortgage payment. The sub-primers will become the third-wave after the rebound in the world economy causes interest rates to rise- of course, B.C.’s lagging economy will still be in recession.

This article posted by Ulsterman, provides evidence that sub-prime doesn’t cause bubbles- or collapses- bubbles cause sub-prime. Run out of legitimately qualified buyers to prop up an over inflated market? No problem: lend anyone any amount.

Current score: 8 (to vote for this comment, please visit the site)

]]> By: Ulsterman http://vancouvercondo.info/2009/07/canadian-banks-not-the-best.html#comment-49096 Ulsterman Fri, 03 Jul 2009 02:08:27 +0000 http://vancouvercondo.info/?p=1242#comment-49096 This is the problem... First-time buyers profiled in the Georgia Straight this week http://www.straight.com/article-237609/firsttimers-rates Here are a few choice excerpts: <b>"What really helped? The 2.75-percent interest rate they were offered. It ultimately allowed them to move from a $1,800-a-month apartment into their own home. “But we don’t have a lot of [wiggle] room,” Morettie said. “We can go up to four percent, but then we’re done.”</b> XXXXXXXXXXXXXXXXXXXXXXX <b>"Similarly, the executive director of the Mortgage Brokers Association of B.C. said interest rates are not something to worry about. “I don’t think anyone wants to see what happened in 1981,” Tamera Olsen told the Straight. “The lenders are aware; they don’t want to see anyone lose their homes.…What I’m hearing is that any increase in rates will be gradual. Very gradual.” She also said that 10 years is too far away to worry about"</b> Like the lenders have any control of rates!<p class="top-comments">Current score: <span class="top-comments-karma" id="karma-49096">11</span> <small>(to vote for this comment, please visit the site)</small></p> This is the problem…

First-time buyers profiled in the Georgia Straight this week

http://www.straight.com/articl.....mers-rates

Here are a few choice excerpts:

“What really helped? The 2.75-percent interest rate they were offered. It ultimately allowed them to move from a $1,800-a-month apartment into their own home.

“But we don’t have a lot of [wiggle] room,” Morettie said. “We can go up to four percent, but then we’re done.”

XXXXXXXXXXXXXXXXXXXXXXX

“Similarly, the executive director of the Mortgage Brokers Association of B.C. said interest rates are not something to worry about.

“I don’t think anyone wants to see what happened in 1981,” Tamera Olsen told the Straight. “The lenders are aware; they don’t want to see anyone lose their homes.…What I’m hearing is that any increase in rates will be gradual. Very gradual.”

She also said that 10 years is too far away to worry about”

Like the lenders have any control of rates!

Current score: 11 (to vote for this comment, please visit the site)

]]> By: VultureBoy http://vancouvercondo.info/2009/07/canadian-banks-not-the-best.html#comment-49095 VultureBoy Fri, 03 Jul 2009 01:54:06 +0000 http://vancouvercondo.info/?p=1242#comment-49095 Interesting, but I have seen other articles which place Chinese banks in the very high risk category. They are financing companies which do not even return their cost of capital. Such companies will not exist forever. The accounting standards for Chinese banks have much to be desired too.<p class="top-comments">Current score: <span class="top-comments-karma" id="karma-49095">2</span> <small>(to vote for this comment, please visit the site)</small></p> Interesting, but I have seen other articles which place Chinese banks in the very high risk category. They are financing companies which do not even return their cost of capital. Such companies will not exist forever. The accounting standards for Chinese banks have much to be desired too.

Current score: 2 (to vote for this comment, please visit the site)

]]> By: observer http://vancouvercondo.info/2009/07/canadian-banks-not-the-best.html#comment-49093 observer Fri, 03 Jul 2009 00:25:43 +0000 http://vancouvercondo.info/?p=1242#comment-49093 The only way to determine the true strength of Canadian banks is to see what would happen if a sizeable percentage of their RE loans (not insured by CMHC) defaulted. This is what brought down the banks in other countries so until something like that were to happen here, one can't really make a fair comparison.<p class="top-comments">Current score: <span class="top-comments-karma" id="karma-49093">3</span> <small>(to vote for this comment, please visit the site)</small></p> The only way to determine the true strength of Canadian banks is to see what would happen if a sizeable percentage of their RE loans (not insured by CMHC) defaulted. This is what brought down the banks in other countries so until something like that were to happen here, one can’t really make a fair comparison.

Current score: 3 (to vote for this comment, please visit the site)

]]> By: Brittanny http://vancouvercondo.info/2009/07/canadian-banks-not-the-best.html#comment-49092 Brittanny Thu, 02 Jul 2009 23:57:00 +0000 http://vancouvercondo.info/?p=1242#comment-49092 It was greedy banks who lead the way of this ultimate financial armaggedon, and then supported by the lolly gagging gov't.<p class="top-comments">Current score: <span class="top-comments-karma" id="karma-49092">1</span> <small>(to vote for this comment, please visit the site)</small></p> It was greedy banks who lead the way of this ultimate financial armaggedon, and then supported by the lolly gagging gov’t.

Current score: 1 (to vote for this comment, please visit the site)

]]> By: Adb http://vancouvercondo.info/2009/07/canadian-banks-not-the-best.html#comment-49091 Adb Thu, 02 Jul 2009 23:29:57 +0000 http://vancouvercondo.info/?p=1242#comment-49091 EB: deflation as a cash-rich buyer is sweet...the long-term results (lower wages, more debt,etc.) ... scary as hell. more thoughts about Canadian banks: http://marketdepth.typepad.com/marketdepth/2009/06/sell-the-banks.html<p class="top-comments">Current score: <span class="top-comments-karma" id="karma-49091">2</span> <small>(to vote for this comment, please visit the site)</small></p> EB: deflation as a cash-rich buyer is sweet…the long-term results (lower wages, more debt,etc.) … scary as hell.

more thoughts about Canadian banks:
http://marketdepth.typepad.com.....banks.html

Current score: 2 (to vote for this comment, please visit the site)

]]> By: EB http://vancouvercondo.info/2009/07/canadian-banks-not-the-best.html#comment-49089 EB Thu, 02 Jul 2009 21:23:26 +0000 http://vancouvercondo.info/?p=1242#comment-49089 You don't think deflation is scary, kids?<p class="top-comments">Current score: <span class="top-comments-karma" id="karma-49089">0</span> <small>(to vote for this comment, please visit the site)</small></p> You don’t think deflation is scary, kids?

Current score: 0 (to vote for this comment, please visit the site)

]]> By: DEFAULT NAME http://vancouvercondo.info/2009/07/canadian-banks-not-the-best.html#comment-49088 DEFAULT NAME Thu, 02 Jul 2009 20:41:51 +0000 http://vancouvercondo.info/?p=1242#comment-49088 <I>"Flaherty was great on SCTV but he sucks as a finance minister."</i> Count Floyd apparently can't count :lol:<p class="top-comments">Current score: <span class="top-comments-karma" id="karma-49088">1</span> <small>(to vote for this comment, please visit the site)</small></p> “Flaherty was great on SCTV but he sucks as a finance minister.”

Count Floyd apparently can’t count :lol:

Current score: 1 (to vote for this comment, please visit the site)

]]> By: ABC http://vancouvercondo.info/2009/07/canadian-banks-not-the-best.html#comment-49087 ABC Thu, 02 Jul 2009 20:40:06 +0000 http://vancouvercondo.info/?p=1242#comment-49087 Canadians in a lot of debt? See here: <a href="http://worthwhile.typepad.com/worthwhile_canadian_initi/2009/06/too-much-debt-again.html" rel="nofollow">http://worthwhile.typepad.com/worthwhile_canadian_initi/2009/06/too-much-debt-again.html</a><p class="top-comments">Current score: <span class="top-comments-karma" id="karma-49087">0</span> <small>(to vote for this comment, please visit the site)</small></p> Canadians in a lot of debt? See here:

http://worthwhile.typepad.com/.....again.html

Current score: 0 (to vote for this comment, please visit the site)

]]> By: pricedoutfornow http://vancouvercondo.info/2009/07/canadian-banks-not-the-best.html#comment-49086 pricedoutfornow Thu, 02 Jul 2009 19:18:43 +0000 http://vancouvercondo.info/?p=1242#comment-49086 Re: Honolulu...that reminds me of about two years ago when a client of ours came back from travelling in the US-he commented that houses in Kamloops were more expensive than houses in Phoenix. Jeepers! How can anyone deny a bubble with info like that?<p class="top-comments">Current score: <span class="top-comments-karma" id="karma-49086">9</span> <small>(to vote for this comment, please visit the site)</small></p> Re: Honolulu…that reminds me of about two years ago when a client of ours came back from travelling in the US-he commented that houses in Kamloops were more expensive than houses in Phoenix. Jeepers! How can anyone deny a bubble with info like that?

Current score: 9 (to vote for this comment, please visit the site)

]]> By: Skye http://vancouvercondo.info/2009/07/canadian-banks-not-the-best.html#comment-49084 Skye Thu, 02 Jul 2009 18:31:07 +0000 http://vancouvercondo.info/?p=1242#comment-49084 I've been spreading the news around town that Honolulu is now more affordable than Vancouver. People's jaws drop. The message is starting to sink in. I think we bears underestimated how many people were waiting in the sidelines for any sign of a drop to jump in head first.<p class="top-comments">Current score: <span class="top-comments-karma" id="karma-49084">14</span> <small>(to vote for this comment, please visit the site)</small></p> I’ve been spreading the news around town that Honolulu is now more affordable than Vancouver. People’s jaws drop. The message is starting to sink in. I think we bears underestimated how many people were waiting in the sidelines for any sign of a drop to jump in head first.

Current score: 14 (to vote for this comment, please visit the site)

]]> By: best_place_on_meth http://vancouvercondo.info/2009/07/canadian-banks-not-the-best.html#comment-49083 best_place_on_meth Thu, 02 Jul 2009 17:52:34 +0000 http://vancouvercondo.info/?p=1242#comment-49083 Flaherty was great on SCTV but he sucks as a finance minister.<p class="top-comments">Current score: <span class="top-comments-karma" id="karma-49083">7</span> <small>(to vote for this comment, please visit the site)</small></p> Flaherty was great on SCTV but he sucks as a finance minister.

Current score: 7 (to vote for this comment, please visit the site)

]]> By: buff_butler http://vancouvercondo.info/2009/07/canadian-banks-not-the-best.html#comment-49082 buff_butler Thu, 02 Jul 2009 17:11:13 +0000 http://vancouvercondo.info/?p=1242#comment-49082 "Flaherty will get you nowhere" lol... awsome.<p class="top-comments">Current score: <span class="top-comments-karma" id="karma-49082">13</span> <small>(to vote for this comment, please visit the site)</small></p> “Flaherty will get you nowhere”

lol… awsome.

Current score: 13 (to vote for this comment, please visit the site)

]]> By: visitor http://vancouvercondo.info/2009/07/canadian-banks-not-the-best.html#comment-49081 visitor Thu, 02 Jul 2009 17:07:21 +0000 http://vancouvercondo.info/?p=1242#comment-49081 yeah, best place on earth, best real estate, best banks, eventually all myths shall be broken to pieces...Why do all countries with big neighbours have this huge inferiority complex, I dont know. Canadians just BE HUMBLE and all will be fine.<p class="top-comments">Current score: <span class="top-comments-karma" id="karma-49081">15</span> <small>(to vote for this comment, please visit the site)</small></p> yeah, best place on earth, best real estate, best banks, eventually all myths shall be broken to pieces…Why do all countries with big neighbours have this huge inferiority complex, I dont know. Canadians just BE HUMBLE and all will be fine.

Current score: 15 (to vote for this comment, please visit the site)

]]>