Yes! It’s True! According to a report just issued by Central 1 Credit Union, the Recession in BC is finished! Rejoice!
Quick! Someone tell the Government they don’t have to cut funding to research on cancer and H1N1! And the rest of you get out there and buy stuff so we can get these ships moving again!
My landlords are great, they are local and live in a larger unit in the building. They had the place up for sale for the longest time unsuccessfully until we came and offered to rent. They wanted to put it back on the market when things started to rebound but waited until our 1 yr lease ran out as they felt it was not fair to us – how often do you see that???
@realpaul:
realpaul, just what are you getting all bent out of shape about?
Some countries are simply more expensive than others. A CAD will get you .57 GBP, and that does not buy you as much in the UK as a CAD buys you in Canada.
This is not the result of some conspiracy, but of complex macroeconomic and trade factors. Things have always been like this and always will be. It's natural.
There are lots of countries that are cheaper than Canada, for example your CAD when converted into Thai Baht will buy you a lot more in Thailand than here.
And also of course, there is a great difference in expenses even within countries or currency blocks. For example, Portugal is a lot cheaper than Finland, even though both use the Euro.
Get over it.
BTW, at the forex site you are using are you using the buy or sell currency rates which may explain the differance between my rate of 1.81 ( buy) and your 1.75. (sell?) And yes, they both pay $200 for the room in Vanc but the Brit bought his $200 at a discount so in fact his $200 cost him much less. Don't forget the exchange 🙂 "@realpaul: “Now in reverse , the Canadian comes to Vancouver and books a room for $200. Next in line is the Brit who has purchased $CDN with GB pounds, he pays $98.19.” RP: It will cost £114 BP to buy $200. They still have to pay $200 Canadian dollars for the hotel room." If , as you suggest , there is approx, parity between earnings ( which in fact I have stated that… Read more »
Well, if I understand you correctly, you are suggesting that the Brit is being paid the same as a Canadian, but we get paid in multiples of two instead? Does that also infer that if I make $100,000 in Canada I would be paid 50, 000 Pound equivalent in Britian, so we all make the same? I humbly beg to differ based on my own experiance. I'd be a very poor and unhappy lad indeed making 50K ( GBP) in London. My cab ride from Heathrow to Camden Town ( 40 mins) is about 80 pounds , thats CDN $145, and that is a contract price for a corporate ticket, open market prices at rush hour it could be much more. That is not that much differance from YVR to Coal Harbour is it? That and the $11 dollar Big… Read more »
@realpaul: "Now in reverse , the Canadian comes to Vancouver and books a room for $200. Next in line is the Brit who has purchased $CDN with GB pounds, he pays $98.19." RP: It will cost £114 BP to buy $200. They still have to pay $200 Canadian dollars for the hotel room. "A Brit goes to an average hotel in London and pays GP 200 on his visa card. Next in line is a Canadian who takes the exact same room next door and pays the same GB 200 on his visa card. When the Brit gets the bill he will have t pay GB 200, but the Canadian will have to pay $362.00." This is about right — the actual exchange rate would make the hotel room $349.90 Canadian dollars, but credit cards always gouge the tourists. That… Read more »
@Lilypad: On the face of it Lily , it would seem innocuous. But…a pound is only the local unit of currency as is the dollar and as such the pound spends just like a dollar, not at a discount or a premium. You'll pay 5.75 GB Pounds for a BIG MAC Meal in London which means that a Canadian will pay $10.40 for the same sandwich after converting to the local unit aka GB Pounds. That is 55% more costly for Canadians than locals for the same Big Mac, the same applies for everything. There is no adjustment for purchasing power parity. I'll offer an example. A Brit goes to an average hotel in London and pays GP 200 on his visa card. Next in line is a Canadian who takes the exact same room next door and pays the… Read more »
@checkup: I'm still waiting to do anything. We're close to an inflection point, and there still may be a parabolic blowoff top. As long as governments keep on priming the pump, money will flow to all asset classes. Remember that the stock market has absolutely nothing to do with the economy.
Why do some guys insist on marrying stupid women? Dont you try to figure out if she is a gold digger or keep up with the Jones's type before you sign a 60 year contract? If I was a guy these days, and not enjoying being flogged, I think some microscopy would come in handy. Why do I say this? b/c so many times I have seen girlfriends and mrs's having these ridiculous hollywood expectations. Ive heard young ladies blatantly without any hesitation stating they would not go out with guys unless they pay foreverything and getting gifts. Ive seen women "needing" special china, certain clothes, must have a house, a certain car, etc. Yes, this spills into housing too. I feel sorry for many guys, but at the same time ..stop being so stupid. Bling is not all that,… Read more »
The squealing is audible around the world.
http://www.financialpost.com/story.html?id=200361…
The $CDN is being held back even with the USD as it plummets. How low will we go even as real inflation is raging in Canada. How can they contain the loonie and not have house prices and groceries not triple in value? Zer Interest rates forever? Bwahahhahahahahahah
Cry Havoc and unloose the hounds of war.
Many will read this article and have no hope of understanding the bigger picture. Thats too bad, because the situation really has the BOC bent over in a most unflattering position.
Anyone else out there selling off stock right now? I'm not liquidating everything, but I'm not going to push my luck, it feels like we're in for another drop soon.
@m:
The body bag story sent Health Canada into damage control when the story went global. Too funny.
Of course the government never lies to us ….right? Bwahahahahahahahahaha.
Its been wonderful fun to hear the howls of wounded anger and derision from those who can't accept reality for what it is and not what they would like it to be.
669 new listings in the last two days. Nice.
I've found that the only use for economists is to burn them for fuel in an emergency.
The BOOM is here alright. I was just at london drugs and all the endless clearance signs were being taken down and the store was actually busy. The other day I was at Safeway and everyone was buying T-bones and lobster. My friend's brother's friend is an unemployed economist and he says the economy is setting up for a sky rocket boom like never before.
Excellent post on CMHC on a blog I've never heard of – check it out:
http://americacanada.blogspot.com/2009/07/cmhc-an…
It's "different" in Canada? Only in the details.
38 X rp:
Good point:
IMHO; if interest rates had been allowed to cycle through their historcal norms…this phoney boom wouldn't have happened and everyone would be better off.
It would have also forced Gov't's off their lazy asses, see where the real problems are, and looked at true economic stimuli.
All it has done is mortage the future of the country and its citizen, fooled those at or near retirement, and
kept younger generations in a fairy tale delusion that there is a free lunch.
@read on: Yes, 30,000GBP would be an great pension to live on in most of Canada or the UK (average household income in the UK is about 24,000GBP) but the point stands that many pensioners will gross nowhere near that.
@read on:
"Governments are supposed to increase spending during a recession".
Only according to Keynes. Not everyone agrees with his theories.
That's right. George W. Bush and his local sidekick Stephen Harper, and to a large extent Gordo, believed the opposite – in increasing spending, cutting taxes, and holding interest rates low during times of low unemployment.
Well look where that got us.
@Hovering: Find a nice rental, that's within your budget and allows you to put some money aside to buy in the future. Then, when you've nicely settled into your new rental, take your wife to a place that you would be able to buy –including all potential costs, taxes, mortgage, strata fees, insurance–with the same amount of money as you are currently paying for rent. It's not too much of a stretch to imagine that the difference in quality will be noticeable.
hmm
thanks all
I'll check out garth's book
recommend my wife read vci and greaterfool and i think I'll stalk craigslist for a better rental..
I have to agree with no-lympics that if you get yourself into a financial mess, divorce could be more likely. financial issues are one of the biggest factors in divorce and if the largest purchase in your life becomes difficult to float, things could get ugly. I dont think buying an asset that is subject to capital gains/losses is the main issue, but rather, your acceptable comfort level and financial security. If you can handle mac and cheese for the foreseeable future and living paycheck to paycheck, then leverage yourself to the hilt and go for it. Or you can play it safer and take on less debt by buying a less expensive place, or continue renting. My youngest brother is going through the same thing. He is going to open houses and such and when his wife sees what… Read more »
For what it's worth, during the nineties we had to pay 2 dollars Canadian for a British Pound, now it looks like we only have to pay $1.75, so our dollar goes 12.5% further now…
#36: Tell her that today's mortgage rates are artificially low and can't be maintained. Use a mortgage calculator and plug in 8%, which is the average rate for the last 25 years. Tell her if you can't afford that payment then you run a serious risk of losing everything you own.
36 X Hovering :
IMHO…a divorce may happen if you buy.
Have your wife read the various blogs.
I read both Garth's and VCI. After a while you start to get a better feel of what's going on. My view is that this is a dangerous game, a Gov't sponsored ponzi scheme backed by the BOC and CMHC.
Ask yourself who the bulls are…they have a vested interest in selling and wanting you to buy…are they buying? Likely not ! The bear's logic seems to make far more sense.
Look at the charts and you'll see that the RE season tends to slow down in the fall and winter.
I'm not happy that Garth is running under the Federal Liberal banner, but if you read his new political blog you can see how dirty politics at all levels is.
