Bank of Canada Holds Firm Again

The Bank of Canada has held its overnight rate range at 0.75%-1.25%. I have highlighted the sections of the press release that have changed since the last release at the end of May:

The global economic expansion is proceeding broadly as projected in the Bank’s April Monetary Policy Report (MPR), with modest growth in major advanced economies and robust expansions in emerging economies.  The U.S. economy has grown at a slower pace than expected and continues to be restrained by the consolidation of household balance sheets and slow growth in employment. While growth in core Europe has been stronger than expected, necessary fiscal austerity measures in a number of countries will restrain growth over the projection horizon. The Japanese economy has begun to recover from the disasters that struck in March, although the level of economic activity in that country will remain below previous expectations.  In contrast, growth in emerging-market economies, particularly China, remains very strong. As a consequence, commodity prices are expected to remain at elevated levels, following recent declines. These high prices, combined with persistent excess demand in major emerging-market economies, are contributing to broader global inflationary pressures.  Widespread concerns over sovereign debt have increased risk aversion and volatility in financial markets.

In Canada, the economic expansion is proceeding largely as projected, although the expected rotation of demand is somewhat slower than had been anticipated. Household spending remains solid and business investment robust. Net exports remain weak, reflecting modest U.S. demand and ongoing competitiveness challenges, particularly the persistent strength of the Canadian dollar. Despite increased global risk aversion, financial conditions in Canada remain very stimulative and private credit growth is strong.

Following an anticipated slowdown in growth during the second quarter due to temporary supply chain disruptions and the impact of higher energy prices on consumption, the Bank expects growth in Canada to re-accelerate in the second half of 2011. Over the projection horizon, business investment is expected to remain strong, household spending to grow more in line with disposable income, and net exports to become more supportive of growth. Relative to the April projection, growth in household spending is now projected to be slightly firmer, reflecting higher household income, and net exports to be slightly weaker, reflecting more subdued U.S. activity. Overall, the Bank projects the economy will expand by 2.8 per cent in 2011, 2.6 per cent in 2012, and 2.1 per cent in 2013, returning to capacity in the middle of 2012.

Total CPI inflation is expected to remain above 3 per cent in the near term, largely reflecting temporary factors such as significantly higher food and energy prices. Core inflation is slightly firmer than anticipated, owing to temporary factors and to more persistent strength in the prices of some services. Core inflation is now expected to remain around 2 per cent over the projection horizon.  Total CPI inflation is expected to return to the 2 per cent target by the middle of 2012 as temporary factors unwind, excess supply in the economy is gradually absorbed, labour compensation growth stays modest, productivity recovers, and inflation expectations remain well-anchored.

The Bank’s projection assumes that authorities are able to contain the ongoing European sovereign debt crisis, although there are clear risks around this outcome.

Reflecting all of these factors, the Bank has decided to maintain the target for the overnight rate at 1 per cent. To the extent that the expansion continues and the current material excess supply in the economy is gradually absorbed, some of the considerable monetary policy stimulus currently in place will be eventually withdrawn, consistent with achieving the 2 per cent inflation target. Such reduction would need to be carefully considered.
This was a significant re-write of the Bank’s periodic overnight lending rate press release, not surprising given recent developments in the US and Europe. It looks as if the Bank is setting the stage for an eventual raising of rates but their required optimism surrounding the European debt situation is, well, a bit optimistic in my view. Sorry, savers!

90 Responses to “Bank of Canada Holds Firm Again”

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    pendantic Says:
    1

    i see you've figured out how to make letters red.

    Like or Dislike: Thumb up 0 Thumb down 0

    i thought that was just the blood from my eyes

    Like or Dislike: Thumb up 0 Thumb down 0

    Hat-tip Worldhousingbubble: China executes sentences on corrupt officials:

    Two former senior officials in the Chinese government were on Tuesday executed following convictions on corruption charges, marking the highest punishment meted out to corrupt officials in recent years as the ruling Communist Party moves to tackle a rampant graft problem.

    The officials, who were former vice mayors of the prosperous eastern cities of Hangzhou and Suzhou, had been accused of taking millions of dollars in bribes in awarding contracts in the cities’ booming real estate markets.

    Xu Maiyong, who served as the vice mayor of Hangzhou, had used his official power to interfere with project contracts and help companies acquire land, the Supreme People’s Court said in a statement. He had accepted 145 million yuan (US $ 22 million) in bribes, and embezzled 54 million yuan (US $ 8.3 million) from a government-managed property company. Xu was removed from his post in April 2009….

    In an unrelated case, Jiang Renjie, the vice mayor of Suzhou, another prosperous southern commercial centre, was convicted of taking 108 million yuan (US $ 16.6 million) in cash from property developers.

    Like or Dislike: Thumb up 0 Thumb down 0

    @jesse:

    would be nice if goldman sachs execs got the same treatment

    er, isn't the communist party tackling a corruption problem sort of like trying to eat one's own head?

    https://downandoutinvancouver.wordpress.com/2011/

    maybe the wildlife will deal with it?

    Like or Dislike: Thumb up 0 Thumb down 0

    real_professional Says:
    5

    WHOA!

    Interesting news – A real estate appraiser in Abbotsford told me that the banks have been strong arming them to "inflate appraisal values" in order to "make the numbers work". He mentioned that RBC is the worst of the bunch.

    He was saying that other than West Van, the Westside and other HAM areas the market is cold. He also went on to say that in Abbotsford if you bought a condo post 2007 you have pretty much lost money now.

    He pointed to the following example: A condo which went for $220k a year ago was foreclosed by the bank, that same condo was then sold by the bank for $120k. It was put back on the market a "little while" ago at $175k and is now has the ask dropped to $150k…. The problem, no bids.

    He also mentioned that he has gone to appraise some properties and will see, as an example, a 1.5MM+ property (remember this is abbotsford) with a hummer parked outside. But the owners are trying to secure a $40k loan… why?

    Things are bad. Rotten and stinking.

    Like or Dislike: Thumb up 0 Thumb down 0

    Best place on meth Says:
    6

    @jesse:

    Hooray!

    Two less immigrant investors settling in Shaughnessy.

    Keep those heads rolling, Wen!

    Like or Dislike: Thumb up 0 Thumb down 0

    space889 Says:
    7

    @jesse: Wow those numbers are pretty mind blowing!! I wonder how much bribes their mistresses got to keep. I think the immediate family probably got nothing as all family assets are likely to be seized. But cash and bank accounts held by mistresses, that would be an interesting question.

    Like or Dislike: Thumb up 0 Thumb down 0

    900kCrackHouse Says:
    8

    @Best place on meth: Lol, had a good laugh over this one.

    Like or Dislike: Thumb up 0 Thumb down 0

    900kCrackHouse Says:
    9

    @space889: Speaking of mistresses, did you see Murdoch's asian wife punch out the guy who tried to stick a pie in Murdoch's face. Read her wiki, its an interesting tail. Gold digger!

    Like or Dislike: Thumb up 0 Thumb down 0

    Van MD Says:
    10

    [update from the frontlines]

    this is my most recent foray
    http://translate.google.com/translate?hl=en&i

    If I go to the mortgage broker right now, i can easily put 25 +% DP and buy my current rental 2BR sub-penthouse condo unit at current price. But I don't, because I can calculate and think.

    I rather preserve my capital, wait until a reasonable price correction, then go in and buy at: I rather preserve my capital, wait until a reasonable price correction, then go in and buy at:

    1. lower price 1. Lower price

    2. 40-50% DP 2. 40-50% DP

    Why not? Why not?

    Now, my friends are above-average income for young main-stream Canadian. If you think even a top-1% income-earner have "problem ith financial ability", then what about the several hunded-thousand 25-30s year old Canadians? You would think they'd have more "problem with financial ability", wouldn't you? Now, my friends are above-average income for young main-stream Canadian. If you think even a top-1% income-earner have the strength of the problem, then what about the several hunded-thousand 25-30s year old Canadians? You would think they'd have more strength issues, wouldn't you?

    and you expect them to absorb all those homes that come on sale in the next few years, if the price keep rising and the income does not? and you expect them to absorb all those homes that come on sale in the next few years, if the price keep rising and the income does not?

    You may be over-estimating the effect of overseas/new immigrant buyers/investors. They cannot help Vancouver continue the housing bubble for long. (we'll see who is right in the next year to 3 years) You may be over-estimating the effect of overseas / new immigrant buyers / investors. They cannot help Vancouver continue the housing bubble for long. (We'll see who is right in the next year to 3 years)

    Like or Dislike: Thumb up 0 Thumb down 0

    @900kCrackHouse:

    i was just reading that the other day

    i especially like the part where after an American couple sponsored her to immigrate from China, she started fucking the husband, nearly 30 years her senior. Once she realized he couldn't pay for her grad school, she found someone else who could.

    Like or Dislike: Thumb up 0 Thumb down 0

    Brittany Says:
    12

    Yup.Keep the rates low. That'll fix the problem. Just ask Japan. Its gonna be a slow long burn.

    Like or Dislike: Thumb up 0 Thumb down 0

    http://www.westca.com/News/article/sid=200811/lan

    in china they call her 'the milk of god' apparently

    LOL

    i remember seeing my first boobies, too

    Like or Dislike: Thumb up 0 Thumb down 0

    Van MD Says:
    14

    [Update from the frontlines - late entry]

    Resident pumper Mr.Ma started a new thread re: MLS# V890362

    http://www.realtor.ca/PropertyDetails.aspx?Proper

    "few weeks ago it was on sale for $899k, now it's going for $938k; in 2009 it was only listing for $570k. Can a realtor help me check what the sale price was in '09? Let's make the housing bears taste the bitterness of not having bought in time!"

    it drew the following responses:

    "if this house is listed for $977k in 2 weeks, will you buy?"

    "the owner must be thinking that price will go down, that's why he's selling now"

    "don't fool us with just a single high listing"

    "this house looks alright, but it's right below the flight path"

    Then I responded with a translation of the VCI post few days ago re: the house in richmond that can't be sold or rented out.
    http://translate.google.com/translate?hl=en&i

    It seems like my posts have had a toxic effet on these pumper-originated threads. Sorta just killed those type of threads, lol.

    and if you look closely at the bottom of my post, someone gave me 2 flower baskets for my useful post. I hope it came from a pretty lady : )

    Like or Dislike: Thumb up 0 Thumb down 0

    Van MD Says:
    15

    and if you have time, do read my translated post

    Perhaps you will enjoy the way I told the story, and perhaps you'd think it's better than the original version : )

    Like or Dislike: Thumb up 0 Thumb down 0

    Vansanity Says:
    16

    Just saw a piece last week on "Brain Drain" that the city of Vancouver will be facing, moving forward. Did they ever call it!

    Already this week I've had the conversation with 3 friends that are planning on moving away due to the disproportionate ratio between the cost of living:income.

    One is going to Calgary and the other two are going to UK and Australia (Australia has its own housing bubble to deal with but it sounds like the incomes are higher in their field).

    Like or Dislike: Thumb up 0 Thumb down 0

    Best place on meth Says:
    17

    @Van MD:

    Please tell Mr. Ma that the few houses that are still selling in Richmond are routinely going for 10% below ask.

    Like or Dislike: Thumb up 0 Thumb down 0

    Best place on meth Says:
    18

    @Best place on meth:

    Having just said that, one of the most expensive houses ever sold in Richmond just changed hands today.

    Asking $8.5M, sold for $6.85M

    Note the "refrection" pool.

    Like or Dislike: Thumb up 0 Thumb down 0

    painted turtle Says:
    20

    I went to Safeway (Point Grey) and noticed a HAM lady driving a brand new Land Rover.

    She came to buy a bottle of shampoo with her teenage daughter. But she had forgotten her Safeway card, so she was asked to pay full price and forget about the $0.50 discount. She refused to pay full price, tried everything to convince the cashier. Finally she left pretty upset without buying anything.

    I just could not help laughing out loud ;)

    Like or Dislike: Thumb up 0 Thumb down 0

    Van MD Says:
    21

    @Best place on meth:

    Hey Meth, is your source of the 8.5M mansion a realtor/someone involved then? (because I may need to quote a source to make my post believable…or maybe I don't have to )

    I better grab a screen cap ASAP when I get home before they pull this listing from MLS. Thanks!

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    VanCity Guy Says:
    22

    @painted turtle:

    If only she knew that she could have just given her phone number to the cashier to receive the Safeway club discount… but there was likely language barrier.

    I just find it amusing that she burned more than 50c worth of gas to get to and from the Safeway… but she returned home with nothing. Wow.

    A scene of things to come?

    Like or Dislike: Thumb up 0 Thumb down 0

    gordholio Says:
    23

    Re Abbotsford: I'm still on the realtor hot sheets for Abbotsford because we were toying with the idea of low-balling an offer out there before we got smarter and opted to rent again. And I can tell you this: Maybe 25% of the homes we've looked at in the past YEAR have sold. Nice places on the east side, up the mountain, that are *still* listed after being on the market for months – many, many months. More than that though are the price reductions. They're everywhere. I get a fresh new batch every day.

    It's dying out there, just like it died in Chilliwack before that, the Okanagan before that, etc.

    And to that I say: GOOD! DIE, DIE, DIE! Bring your death a little closer to greater Vancouver. It's tentacles are already in Langley and Surrey. I can sense it. Now BRING IT ON!

    Like or Dislike: Thumb up 0 Thumb down 0

    Mainland Chinese Dip Says:
    24

    Yes…we not want crooked peepulz.

    Maybe execution too harsh….

    I think date with Libby Davies worse !

    Maybe not…..

    Like or Dislike: Thumb up 0 Thumb down 0

    @painted turtle:

    passive aggressiveness is what we canadians do best

    Like or Dislike: Thumb up 0 Thumb down 0

    Best place on meth Says:
    26

    @Van MD:

    I put a screenshot here:

    http://vancouvercondo.info/forum/topic/post-your-

    Like or Dislike: Thumb up 0 Thumb down 0

    @Van MD:

    i hope you enjoy my contribution

    lulz ensue

    http://i56.tinypic.com/2d7g0lk.jpg

    Like or Dislike: Thumb up 0 Thumb down 0

    Bank Of Canada ?

    Joke !

    Should be putting a damper on…like did in 1982.

    Bizarro universe !

    Like or Dislike: Thumb up 0 Thumb down 0

    @VanCity Guy:

    "I just find it amusing that she burned more than 50c worth of gas to get to and from the Safeway… but she returned home with nothing. Wow."

    this is a sign that we are assimilating them.

    Like or Dislike: Thumb up 0 Thumb down 0

    Runawayscreaming Says:
    30

    keeperofthederp, that is absolutely hilarious!

    http://i56.tinypic.com/2d7g0lk.jpg

    Ha, ha!

    Like or Dislike: Thumb up 0 Thumb down 0

    20 Hard Facts on Toronto’s Condo Market

    http://www.theredpin.com/blog/canada/20-hard-fact

    * the market

    Investor Behaviour

    * 50%-60% of the units are purchased by investors up from 35% from five years ago

    * Some of the reasons why so many investors are attracted to the market include the fact that condo prices have gone up 7%-9% year over year over the past five years, strong Canadian Dollar, and relative political stability in the country

    * Canada has what the world is looking for: Food, Fuel, Fertilizer and Forestry. According to REIN, that’s the main reason why investors are attracted to Canada

    * As many as 25% of investors look to assign their units. This translates into approximately 3,000 units of 20,000 total units sold in 2010

    * Investors are from all backgrounds including: Honk Kong, Mainland China, East Indian, Persian

    * Investors at times buy real estate properties including new condominiums not to necessary rent out (for cash flow) but to simply hold their money. For example, instead of buying gold, they choose to buy Real Estate. This will lead to increase in vacant units

    ==============

    So nobody in T.O. gives a shite for ocean or mountains.

    Like or Dislike: Thumb up 0 Thumb down 0

    tpfkaa Says:
    32

    Thumbs up if VanMD is your new hero!!!!!

    Like or Dislike: Thumb up 0 Thumb down 0

    Li Kai Shing Says:
    33

    Rupert Murdoch get my sloppy seconds….

    S"he" have operation….and Rupert not even find out yet ?

    Like or Dislike: Thumb up 0 Thumb down 0

    Anonymous Says:
    34

    June Months of Inventory (MOI) calculations for each of BCREA's sales regions. Inventory and sales data from bcrea.com.

    BC Northern

    Inventory: 3215

    Sales: 418

    MOI: 7.7

    Chilliwack

    Inventory: 1828

    Sales: 230

    MOI: 7.9

    Fraser Valley

    Inventory: 8169

    Sales: 1508

    MOI: 5.4

    Greater Vancouver

    Inventory: 16194

    Sales: 3317

    MOI: 4.9

    Kamloops

    Inventory: 2301

    Sales: 206

    MOI: 11.2

    Kootenay

    Inventory: 3441

    Sales: 232

    MOI: 14.8

    Okanagan Mainline

    Inventory: 6928

    Sales: 499

    MOI: 13.9

    Powell River

    Inventory: 265

    Sales: 38

    MOI: 7.0

    South Okanagan

    Inventory: 2275

    Sales: 145

    MOI: 15.7

    Northern Lights

    Inventory: 356

    Sales: 43

    MOI: 8.3

    Vancouver Island

    Inventory: 6676

    Sales: 672

    MOI: 9.9

    Victoria

    Inventory: 4108

    Sales: 596

    MOI: 6.9

    Provincial Totals

    Inventory: 55816

    Sales: 7904

    MOI: 7.1

    Not much change in the last couple of months. Vancouver continues to have relatively low MOI numbers, consistent with its ever-rising prices. If you subscribe to Mohican's famous 6.0 = balanced market tipping-point, then its starting to look like brown trousers time for homedebtors beyond the LM. Note the Okanagan, where persistent MOI numbers well over 10 for the past several months indicate a market well past its Wile-E-Coyote moment.

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    @Runawayscreaming:

    absurd times call for absurd measures

    Like or Dislike: Thumb up 0 Thumb down 0

    Li Kai Shing Says:
    36

    Meth man…..

    …..pass the hat !

    Lai gets last chance to remain in Canada

    Read more: http://www.richmond-news.com/gets+last+chance+rem

    Fisher also said his source saw Lai allegedly with two known members of the Asian crime group the Big Circle Boys, as well as a son-in-law of another known gang member.

    One of the conditions of Lai's release in Canada was to not communicate with known criminals.

    Lai arrived in Canada in 1999 and has been fighting deportation back to China ever since.

    China has accused him of masterminding a $10-billion importation racket by bribing importation officials.

    Lai seemed to have run out of appeals after the Immigration and Refugee Board ordered his removal from Canada earlier this month.

    But he will get one last appeal at a hearing on Thursday when his lawyers will argue he can't get a fair trial in China, and that he can't depend on the assurances extracted from the Chinese government by Canada that he will not be tortured or arbitrarily executed.

    Like or Dislike: Thumb up 0 Thumb down 0

    Best place on meth Says:
    37

    @painted turtle:

    >>>But she had forgotten her Safeway card, so she was asked to pay full price and forget about the $0.50 discount.<<<

    TLC really needs to do a Mandarin version of their show "Extreme Couponing".

    Like or Dislike: Thumb up 0 Thumb down 0

    paulb. Says:
    38

    New Listings 244

    Price Changes 152

    Sold Listings 141

    TI:16274

    http://www.laurenandpaul.ca

    Like or Dislike: Thumb up 0 Thumb down 0

    Goooonnnnnaaaa

    Bbbbbbbbb

    Bad

    Crash coming

    Like or Dislike: Thumb up 0 Thumb down 0

    gordholio Says:
    40

    VanMD: I said it before and I'll say it again – you are my hero. You are the wind beneath my wings.

    The Hindenburg shot is CLASSIC!! OMFG LMFAO.

    Like or Dislike: Thumb up 0 Thumb down 0

    gordholio Says:
    41

    Oh wait, that was you, keeper? My bad. Still TOTALLY AWESOME though.

    Like or Dislike: Thumb up 0 Thumb down 0

    ReadyToPop Says:
    42

    Total CPI inflation is expected to return to the 2 per cent target by the middle of 2012 as temporary factors unwind, excess supply in the economy is gradually absorbed, labour compensation growth stays modest, productivity recovers, and inflation expectations remain well-anchored.

    Rather rosy prediction in my opinion. Someone over there should be wearing a more neutral shade of sunglasses. In my opinion, the longer they delay raising rates, the more/faster they're likely going to have to raise them later….RTP

    Like or Dislike: Thumb up 0 Thumb down 0

    space889 Says:
    43

    @900kCrackHouse: Just saw an article from Yahoo about it. I read a quick intro on her from another website a collegue send when we were, ironically, talking about gold diggers in China.

    At least this one is earning her keeps rather than just being arm candy. :P

    Like or Dislike: Thumb up 0 Thumb down 0

    Rupert Murdoch Says:
    44

    F*ck off

    I only marry virgins.

    Hey….can I listen in on your conversations ?

    Like or Dislike: Thumb up 0 Thumb down 0

    @gordholio:

    click on my blog for more bullshit

    Like or Dislike: Thumb up 0 Thumb down 0

    @space889:

    you can learn all about rupert murdoch here

    you won't bother, but if you do, you'll realize what a piece of shit he is and how he stabbed his wife in the back.

    http://www.bbc.co.uk/blogs/adamcurtis/2011/01/rup

    Like or Dislike: Thumb up 0 Thumb down 0

    Van MD Says:
    47

    @keeperofthederp:

    re: http://i56.tinypic.com/2d7g0lk.jpg

    HAHAHA your Chinese is pretty damn good! I almost laughed off my chair! the poster below you (Mr. Ma/Horse, ie. the pumper) said "hey! you upstairs, are you the king of communist anthems?"

    Lol good work, now let the havoc-wreaking begin!

    @Best place on meth

    Thanks tons BPOM, that would be Most Useful!

    @gordholio/tpfkaa/everyone

    PaulB and VCI host are my heros :D I'm just a messenger delivering what I've learned here these 2 years into the place that needs it most :D

    Like or Dislike: Thumb up 0 Thumb down 0

    @Painted Turtle, why did she not just give the cashier her phone number? Why did the cashier not ask?

    Like or Dislike: Thumb up 0 Thumb down 0

    @Van MD:

    vanMD i spent a year in asia including taipei and HK and one of my little hobbies besides learning chinese culture is collecting little curios of chinese propaganda

    i have buttons, badges, little red books

    the other day i found my old 'tael' coins (probably all fake) and my replica 5 million dollar bill from the american bank of shanghai ca. 1928.

    anyways, i really enjoy this website of chinese propaganda posters:

    http://chineseposters.net/

    you will be seeing these shortly – we're a two man operation now – i'm flava flav to your chuck d.

    Like or Dislike: Thumb up 0 Thumb down 0

    Rupert Murdoch Says:
    50

    Ahhh Chairman Mao

    Now that guy told some good round eye jokes from the back of his Rolls Royce while calling Bethune a quack.

    Like or Dislike: Thumb up 0 Thumb down 0

    Best place on meth Says:
    51

    @keeperofthederp:

    That's a hilarious screenshot you got of Choi.

    http://kecute.files.wordpress.com/2007/11/dog-smi

    Like or Dislike: Thumb up 0 Thumb down 0

    Best place on meth Says:
    52

    @keeperofthederp:

    Oops, wrong file.

    http://downandoutinvancouver.files.wordpress.com/

    Like or Dislike: Thumb up 0 Thumb down 0

    Li Kai Shing Says:
    53

    Where is Lavishing Lick?

    Is he banging Rupert Murdoch's wife ?

    Naaahhhhhh

    Like or Dislike: Thumb up 0 Thumb down 0

    900kCrackHouse Says:
    54

    Can someone fill me in on the term HAM?

    Like or Dislike: Thumb up 0 Thumb down 0

    painted turtle Says:
    55

    @phil

    Because she hardly spoke English and kept saying "no no no phone number. Name? Name?"

    Like or Dislike: Thumb up 0 Thumb down 0

    painted turtle Says:
    56

    @900kCrackHouse H A M = Hot Asian Money

    May be somebody could tell me the meaning of lawn Asian…

    Like or Dislike: Thumb up 0 Thumb down 0

    people observer Says:
    57

    It seems to me that people in Van don't have a strong appreciation for the amount of wealth that is actually coming across the ocean currently and in past years. We can really only look at anecdotes here since it is not observed through income.

    I am heavily exposed to the current wave of asian immigrants – i could only dream of the wealth that I have seen and it honestly churns my stomach. Simple examples of new immigrants whom, on first glance I would never have known had that kind of wealth. The current wealth is much greater, and deeper than that from Hong Kong and Taiwan.

    1. family of three, wealth generated offshore (which is why there are semi-annual trips and wire transfers): two condos paid cash, looking for another house now –

    2. renter family I knew (new immigrants), thought they were lower – mid income, purchased house, cash for $900K, father is a a helicopter parent. family background in Asia – super rich. Wife has clearly said, she dresses down in Canada to not be noticed, in Asia everything is top tier Chanel, Gucci, etc. family drives a typical car here.

    3. Couple in building, seemed like a blue collar worker. Turns out they were recent immigrants from China that go back for business reasons a couple times a year. Turns out they bought 3 units in the building for cash, renting out two living in one.

    4. Girl I went to school with- realized she was wealthy, didn't know how much – just bought a maserati (daddy's money) – still owns a place in Van but generally travels the world

    this just scratches the surface. It makes me sick, but this is real wealth and it is here. Some try to hide it, others do not. when you look out on the street, and you see the Pradas, LVs, Chanels etc on girls in their mid teens and 20s, the maseratis, ferraris, mercedes slks driven by kids – remember that is real money, and those are purchased – not leased. It is play money for alot of them, and it makes me sick and tired, but it is real

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    Lick me bulls

    Like or Dislike: Thumb up 0 Thumb down 0

    Best place on meth Says:
    59

    @people observer:

    >>>It is play money for alot of them, and it makes me sick and tired, but it is real<<<

    Yes, it's real.

    Real dirty.

    Like or Dislike: Thumb up 0 Thumb down 0

    Li Kai Shing Says:
    60

    Dumb round eyes.

    You have no idea how much YUAN there is in specials …your choice of combo(3) items………and throw in egg rolls.

    Like or Dislike: Thumb up 0 Thumb down 0

    @people observer:

    Don't beat up on yourself..

    Ask the question….how many people are UNDER these rich HAMsters in some economic pyramid/ponzi scheme?

    F*ck…..I drive around and see all the conspicuous HAM bling…..it's all BULLSHIT. Pimple faced teens driving $50K cars…..gimme a break

    The Asians that have been here in Canada for 3+ generation could never achieve this BS bling….they'd have their short hairs taxed.

    It is all an OZ-ian delusion….Faux wealth and Faux prosperity….the average Canadain was better off 30 years ago…..pathetic mind candy since then.

    Like or Dislike: Thumb up 0 Thumb down 0

    people observer Says:
    62

    here's the thing. Regardless of what you think about that bling – it is real and sustaining wealth for the most part (even if the Chinese economy slows significantly). Debt is not part of culture – see minimum down payments in China. We are only seeing a sliver of the amount of wealth by those that can afford it.

    The previous Asian immigrants are essentially irrelevant. Even if the ultra wealthy are a tiny sliver of the population, the absolute number is enough to move these markets.

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    Devore Says:
    63

    Well, all the money we sent there buying cheap trinkets has to come back eventually?

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    @bubba:

    No…it skews the reality….aka it's a bubble.

    Our Gov'ts are addicted to the crack cocaine of this post 1997 ponzi scheme…yet it is faux bling…it is hollowing out the foundations of a stable society.

    The "educated" professionals leaving for better climes is a canary in the mine…setting us up for 3rd world economy.

    How many people on this blog are PO'd at the rug pull from underneath ?

    Their parents/ancestors didn't come here to struggle and try to build a better life for their progeny so that assholes in office could use the bogus HAM economy as a false flag for prosperity.

    This is gonna be a 4Q-ing disaster….

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    white payer Says:
    65

    @people observer:

    I look at the New Chinese Wealth differently – it's not how rich they are, it's how poor are we… these people are supposedly the new middle class.

    Enough said.

    Don't blame the Chinese as they are merely taking advantage of what is being served to them on a silver plater – blame your own government at all levels… your elected officials laughing at you all the way to the bank.

    The same government that lets all the dirty Chinese wealth in has stripped us locals of all the possibilities to build our own wealth through hard work and financial prudence. All there is left is Real Estate.

    Instant millionaires from China = instant millionaires from West End. It's a fucking miracle.

    How can something so genius possibly go wrong??!!

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    white payer Says:
    66

    @white payer:

    And one more thing – for a few rich ones to exist, there's gotta be thousand-fold more of poor suckers around.

    As the US is sinking deeper and deeper into a depression and peoples' misery riches new levels, few rich, fat fucks pay hundreds of thousands of dollars for some obscure classic cars at Las Vegas auction every weekend. There's no financial crisis there, no?

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    @bubba:

    bubba: amen

    that's why we must wage reverse psy-ops
    http://www.youtube.com/watch?v=PrkHtqjXpB0&featur

    woops that's glenn gould
    http://i54.tinypic.com/v5xz5f.jpg

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    Keeping An Eye On Th Says:
    68

    @people observer: Yea yeah, we get the picture.

    So why has mortgage debt grown to well over 1.1 trillion if so many rich people are buying cash?

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    Yahoo article on the Chinese HAM buyers.A "trader' buys a $4.3 Million house, because 'I want my family to be comfortable' while he is in Shanghai – 'trading'

    WTF is 'trading' anyway?? Trading what?

    http://ca.finance.yahoo.com/news/Vancouver-real-e

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    Anonymous Says:
    70

    I used to come to this site for intelligent banter with bulls and bears about the real estate bubble. Lately this place has turned into a place where trolls and racist roam. To me this is the sign that the bubble is truly over. I wish most of these people would grow up( most of you guys are 'adults') or at least act civil.

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    people observer Says:
    71

    actually I do not blame the chinese at all, despite the unease the amount of wealth being transferred. the immigrants are looking out for their families and providing what they can. One issue is the speed at which the capital flows have entered the relatively small Vancouver market. Things are shifting quickly and i don't think that will abate.

    Frank – It is Shanghai – so like New York, probably trading in equities.

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    @white payer:

    Well…..this has gotten out of hand…

    I'm not sure about anonymous' bitch….call a spade a spade.

    The powers than be have done a Roger Nielson…..waved the white flag ……and are saying in coded language or otherwise, that BC residents are peons to be tolerated…we'll use semiphor if need be to let Cathay Pacific flights in.

    The view is better and more peripheral if one's head's out of ass.

    Not racist…I don't care if its' Euro or Martian wealth.

    If this satellite $$$ BS goes on much longer , this berg is TOAST.

    Who the f*ck is gaining?,….answer = retarded politicians, bureaucrats and maybe 30 development companies. That's democracy eh….excluding 99.99999999% of the population. Talk about a gang bang

    Oh F*ck……..

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    paradox Says:
    73

    @ frank

    "WTF is ‘trading’ anyway?? Trading what?"

    there isno is no problem with the trading, we dont care what he trades in Shanghai.

    The issue is that according to our laws, this guy is the perfect case of the deemed resident for tax purposes and CRA must be after these guys to see if they declare their worldwide income for tax purposes in Canada as required by law.

    For some reasons, CRA seems to be turning a blind eye on the vast abuse of our system.

    The way I see it, is rather his wife , family , parents and grandparents are getting free health care here and child benefit payments as they dont work here and dont declare any income and there is no chance in hell that chinese making money in china will declare it to CRA and pay taxes. This makes me reflect on my civic duty to continue paying taxes in this country – the system must be fair to all to be sustainable for the future.

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    Oh geez…

    Don'tcha get it?

    Anecdote:

    An Asian gal we know was royally po'd

    3rd generation…spoke perfect English.

    At her kids' school , Principal assumed that she was HAM.

    She was insulted…via visual appearance.

    Principal was "upset" because if her kids were HAM aka ESL…the Gov't would have provided the scholl with about $3000 in extra funding.

    My Euro "trash" heritage, as DP's with F*ck all after WW 2, had to be sponsored to Canuck duh…and pay for "Engrish" lessons before allowed into Public School system.

    HAM/ESL is a gravy train for Public Sector.

    Boy..some of you VCI posters need Van MD services for a cranial enema…

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    Devore Says:
    75

    @Frank:

    WTF is ‘trading’ anyway?? Trading what?

    You know, import-export /wink /wink

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    @Frank:

    lol @ trader

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    Riba…..interesting lecture re usury.

    http://www.youtube.com/watch?v=8x9VbDOBpGc&fe

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    hold your applause

    https://downandoutinvancouver.files.wordpress.com

    shenzen tiger is a serious pumper bull douchebag, and so is his little cohort, mahakala – they're all over the place. we'll see how long this account lasts. then the process will begin anew.

    does anyone want a tutorial for more organized raiding? it can be tough to navigate because you can't google translate the button icons, but i figure if i screen cap the step by step process to setting up an account it would take anyone 1-3 minutes to slog through and start posting.

    @vanMD – are avatars only for donators on this board? i can't seem to find the setup option – can you steer me in that direction?? i am flying blind, but not doing too bad, IMO. ;)

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    Van MD Says:
    79

    @bubba:

    cranial enema? sounds like a good moneymaker if I can recruit some volunteers to help me on a study on that :)

    @keeperofthederp:

    hahaha your posts are so utterly,weirdly, out-of-place'ly, randomly awesome, I'm sure it's rendering those house-pumpers quite confused :D Good job. Now I'm not sure on the avatars, will attempt to get myself one later this week.

    @BPOM

    so I started a thread there re: the house in richmond that listed at $8.5M and sold at $6.85M. It was soon pointed out by several users that it was initially purchased at 4.8M. Sold at 2M profit, albeit not at the 8.5M price tag which it was fishing for. So after taking some jabs from the pumpers (and actually quite a few supportive voices from the rational/bearish crowd), I delivered my counter-attack:

    "haha, I'm just an outsider who got this piece of info from a source; I do not have the luxury of MLS access to fully check the price history. I did not exaggerate the title to state that the owner sold at a loss, but barely stated the fact that the asking price took a 20% haircut before being sold. However, this thread did prove to us that several of the house-pumpers here (who did not openly reveal their realtor status) are in fact realtors who have MLS access. Conflict of interest, anyone?

    All the current anecdotes of price drops you hear in greater Vancouver area are but a herald of things to come. By late 2011-2012, the real show will be on : )

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    @Van MD:

    you do the talking

    i'll post the shoops

    photos of the DTES will do nicely, mmm?

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    Anonymous Says:
    81

    Vancouver's economy now ranks 7th in Canada right behind that maple syrup export powerhouse, Quebec City.
    http://www.vancouversun.com/business/technology/T

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    Anonymous Says:
    82

    @Anonymous:

    At least they have maple syrop. What do we export?

    Like or Dislike: Thumb up 0 Thumb down 0

    Best place on meth Says:
    83

    @Frank:

    "Trading" dirty money for clean money.

    Some call it laundering.

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    Patiently Waiting Says:
    84

    About time. Most fraudulent citizens live outside Canada.

    "Ottawa intends to revoke the citizenship of 1,800 people it believes obtained their status through fraudulent means, Immigration Minister Jason Kenney says.

    The decision to revoke citizenship is rare, and a large-scale crackdown such as this one appears to be unprecedented. Fewer than 70 citizenships have ever been revoked since the Citizenship Act was passed in 1949."

    http://www.cbc.ca/news/politics/story/2011/07/20/

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    fixie guy Says:
    85

    @82 Anonymous: For those who want a little more than the typical press gloss, CIBC's report below.

    http://research.cibcwm.com/economic_public/downlo

    A little scary to think that, even weighing housing as much as they do in the narrative, Vancouver's performance is mid-pack. Take that away and…

    Check out the MLS Average Price chart on page 6 and have a nice day. ;)

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    space889 Says:
    86

    @keeperofthederp: Please put a not SFW warning next time!!

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    @Van MD:

    Re the Richmond House…

    Further down Gilbert…almost to the dyke….was a rancher home that I beleive that Chinese guy they are trying to deport for the last 10 years

    http://www.bclocalnews.com/richmond_southdelta/ri

    Thousands of kilos of methamphetamine was found in the spacious three-car garage at 13451 Gilbert Rd., directly across the street from the Lulu Island Wastewater Treatment Plant. That home had previously been owned by alleged smuggling tycoon Lai Cheong Sing, also known as Lai Changxing, though investigators insist the drug investigation was not linked to him.

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    midnite toker midnite toker Says:
    88

    @Anonymous: I'll give you a "phatty" clue… Something growing in all these rented houses and remote forest ranges.

    Like or Dislike: Thumb up 0 Thumb down 0

    [...] people observer at vancouvercondo.info 19 Jul 2011 8:34pm – “It seems to me that people in Van don’t have a strong appreciation for the amount of wealth that is actually coming across the ocean currently and in past years. We can really only look at anecdotes here since it is not observed through income. I am heavily exposed to the current wave of asian immigrants – i could only dream of the wealth that I have seen and it honestly churns my stomach. Simple examples of new immigrants whom, on first glance I would never have known had that kind of wealth. The current wealth is much greater, and deeper than that from Hong Kong and Taiwan. 1. family of three, wealth generated offshore (which is why there are semi-annual trips and wire transfers): two condos paid cash, looking for another house now – 2. renter family I knew (new immigrants), thought they were lower – mid income, purchased house, cash for $900K, father is a a helicopter parent. family background in Asia – super rich. Wife has clearly said, she dresses down in Canada to not be noticed, in Asia everything is top tier Chanel, Gucci, etc. family drives a typical car here. 3. Couple in building, seemed like a blue collar worker. Turns out they were recent immigrants from China that go back for business reasons a couple times a year. Turns out they bought 3 units in the building for cash, renting out two living in one. 4. Girl I went to school with- realized she was wealthy, didn’t know how much – just bought a maserati (daddy’s money) – still owns a place in Van but generally travels the world This just scratches the surface. It makes me sick, but this is real wealth and it is here. Some try to hide it, others do not. when you look out on the street, and you see the Pradas, LVs, Chanels etc on girls in their mid teens and 20s, the maseratis, ferraris, mercedes slks driven by kids – remember that is real money, and those are purchased – not leased. It is play money for a lot of them, and it makes me sick and tired, but it is real.” [...]

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    [...] Vansanity at vancouvercondo.info 19 Jul 2011 3:40pm – “This week I’ve had the conversation with 3 friends that are planning on moving away due to the disproportionate ratio between the cost of living:income. One is going to Calgary and the other two are going to UK and Australia (Australia has its own housing bubble to deal with but it sounds like the incomes are higher in their field).” [...]

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