Movie Moment: Dr. HouseDebt


See the full-size version suitable for framing or using as desktop wallpaper here.

The Big Six Canadian banks (in unison): We’re concerned easy-money tax payer insured mortgages are encouraging people to go into more debt than they can handle and they won’t be able to pay off their uninsured debt.

The Finance Minister: Right now, there is no compelling evidence of a housing bubble in Canada.

The Big Six Canadian Banks (in unison): We fear the wide ranging economic fallout of a US-style binge-and-collapse in housing.

The Finance Minister: There are certain tools available to the government if we choose to use some or all of them.

The Big Six Canadian Banks (in unison): Please sir, let go of that lever.

The Finance Minister: Yee-haw!

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Carioca Canuck
Carioca Canuck
10 years ago

That image is perfect !!!!!!

CMHC = Canadian Moral Hazard Corporation

Drachen
Drachen
10 years ago

@averagejoe86:

I only have two things to say to people who feel like you.

1) Keep those feelings front and centre next election cycle.

2) Write to your representatives in Ottawa! We need to bombard these people with letters or they'll never get it through their thick skulls that people actually care about this stuff.

averagejoe86
averagejoe86
10 years ago

Flippers in my area had been taking advantage of the 5/35 and had been using it to buy, keep and flip. The house across had been flipped 8 times in about 15 years. Each time the price had gone up about 100 thous. Get rid CMHC!

Drachen
Drachen
10 years ago

Sorry right, I'd blanked Chipman from my mind, because of what a humongous prick he is I suppose. I'd actually forgotten all about him.

patriotz
10 years ago

@Gordon C.:

I say let’s get to the bottom fast and then we can start to re-build.

Which makes sense. People who bought high are screwed no matter how slowly prices go down, and the faster prices go down, the fewer people will buy high. I wonder why more people don't understand this.

Compare the quick bust in BC in the early 80's with the endless post-1990 bust in Japan. Which economy recovered faster?

patriotz
10 years ago

@Drachen:

Chipman’s been gone a year, his successor does a lousy job

You're thinking about Paul B. on the North Shore. Chipman is very much on duty on his blog. Which is worth reading, if you're interested in a not-totally-biased realtor's POV.

Gordon C.
Gordon C.
10 years ago

Its also David Dodge (formerly the BoC) and some of the lead economists of the World Bank that are worried about inflation and asset bubbles in housing. Countries like Canada and China could have serious consequences to a "pop" in house prices. Most of these economists want to let the air out slowly to get to bottom. Which implies that they have some control over the psychology of the masses. In otherwords, somehow they are going to keep people buying as prices decline. Now, that's a magic trick. My thoughts are different, I say let's get to the bottom fast and then we can start to re-build. Kind of like tearing a band aid off a cut.

Drachen
Drachen
10 years ago

@Vansanity:

Chipman's been gone a year, his successor does a lousy job.

Go to Agent Will for up to date stats and graphs.

Anonymous
Anonymous
10 years ago

Chipman's numbers are weekly. Posted every Monday.

Vansanity
Vansanity
10 years ago

Anyone know where I can see daily or weekly stats? Are we able to access MLS Xchange now?

I see Chipman's numbers are monthly and Paul's site is no longer tracking.

VRENGD
VRENGD
10 years ago

The Bay is selling condos in their Olympic souvenier shop. There was a 30 minute line up of hundreds of rich Asians and Europeans waiting eargerly for their chance to own "the ultimate 2010 souvenier".

One women showed her shoping list: red mittens, canada sweater and condo. And not just one of each item. She had was buying 6 of each to take back home and distribute to relatives.

Drachen
Drachen
10 years ago

@crabman:

Moe (harper) is the one who pulled the lever, Curly (Carney) jumped first to make sure Flaherty would have a softer landing (he plans to catch him before he hits the ground).

Boombust
Boombust
10 years ago

Nice to see F riding the rocket DOWN. Very telling.

crabman
10 years ago

I see Larry on that rocket, but where are Moe and Curly?

http://www.clown-ministry.com/images/have-rocket-