Economic recovery – u r doing it rong

Well with S&P downgrading the US from AAA to AA, that should send interest rates for a ride. Yup, interest rates just went for a ride all right, and hard. Below is the Government of Canada 5 year note one-year chart:

Yes, interest rates fell when, normally, a ratings downgrade would increase yields. The story to pay attention to isn’t the S&P downgrade, it’s comments like this from Hon. Jim Flaherty on continuing government-led austerity measures in countries that are not running at full capacity:

European and American leaders have demonstrated they have the “will to act” but more needs to be done to rein in global debt and deficits, Canada’s Finance Minister Jim Flaherty says.
In an interview Monday, Flaherty told Amanda Lang of CBC News that he is most concerned about European sovereign debt, though he noted that the U.S. also needs to tackle its debt and deficit.
“These are fiscal issues; they’re not bank issues, they’re not monetary issues,” Flaherty said. “And it’s very important that Italy, Spain and the others — Portugal, Ireland and Greece — go ahead and implement the programs that they’ve committed to, the fiscal restraint programs, the reforms they’ve committed to. They have to get it done.”

Just throwing it out there… comments like these from Flaherty and others, along with the pudding of actually cutting said governments’ expenditures, may actually be why global stock markets are taking a rather large poo.

What will all this mean for Vancouver and its real estate? Dunno, but two things look baked in for the next few quarters: lower mortgage rates and more employment weakness.

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Anonymous
9 years ago

@jesse:

THIS MARKET IS MORE LIKE THE GUY THAT CUTS YOU OFF, AND THEN ROARS OFF, ONLY TO HAVE TO SLAM ON THE BRAKES 30 SECONDS LATER FOR THE RED LIGHT.

sorry, caps for emphasis, because that's the typical vancouver driver.

Anonymous
Anonymous
9 years ago

Check this out:

2579 SAPPHIRE PL, Westwood Plateau, Coquitlam,

V901568

Sold on 30/Apr/2010 $842,000

and currently listed for $858,000

Do you think it will sell even for $800,000?

space889
space889
9 years ago

@jesse: Very likely given that the various governments hyped the hell out of this development about how green and LEED platinium it is.

Maybe the idea is that the buildings using geothermal, heat exchanges, rain water collection, etc would reduce the energy usage to minimal? But the residents may not be getting any credits for the energy that's generated? Regardless it seems to be pretty confusing and I do feel that there is something fishy going on with the billing, especially for stuff that are normally covered by strata fees which aren't cheap to begin with.

space889
space889
9 years ago

@Best place on meth: I guess another year of this and it's property tax increase time. Or maybe those units gets turned over to housing society with the city washing its hands clean of future special assessments bills that will for sure come up. Well one can always wish….

space889
space889
9 years ago

@Best place on meth: Uhm…I don't see any pictures of the bathroom or even where it could be located? Unless that desk doubles as a bathtub?

Best place on meth
Best place on meth
9 years ago

@space889:

Last I heard a third of the OV units were still not sold.

vanpire
vanpire
9 years ago

They called me from my bank yesterday to ask what to do with one of my term deposits that's maturing. They offered 0.85% interest on a redeemable GIC.

I am now 100% convinced they are trying to make us all go broke so they can own us and use us as slaves, possibly to produce cheap energy using our body heat, while we hang suspended in slimy cocoons.

I think I will gather my family all my guns and plenty of ammo and head for the mountains very shortly as this place appears totally fucked.

space889
space889
9 years ago

More reports about the Olympic Villiage utility billing fiasco. Seems like nothing can go right with this.

Btw, how's the sale going? There seems to be no news about it at all since the last new price testing pre-sale thing that Renee did.

http://www.vancouversun.com/news/High+utility+bil

patriotz
9 years ago

@fixie guy:

And since RE can only return its rental income to its owners collectively, an owner who buys when it's more expensive than renting can only come out ahead by selling at a price even more out of proportion to renting, to a buyer who can only come out ahead by selling at a price still more out of proportion to renting, etc.

Country Joe voice: What's that called?

500,000 voices: A PONZI SCHEME!

fixie guy
fixie guy
9 years ago

185 fixie guy Says: "…but they can’t return rental income.,,,"

Ugh, they CAN return real income.

fixie guy
fixie guy
9 years ago

@179 BRITANNY Says: "Consumer sentiment is what makes prices rise and fall. Whether it is RE,gold,cabbage patch dolls etc. It used to be supply and demand, but that is old economics."

That's like saying 'the old mathematical principles no longer hold.' Sentiment can only temporarily distort markets, at day's end the iron rule of earnings still hold: theoretically assets can't appreciate in real terms forever but they can't return rental income. The last ultimately sets their long term value. Your cabbage patch example is perfect.

patriotz
9 years ago

@paradox:

The 5 year fixed will be definitely below 3% soon.

Aint that free money?

No, because even at those rates it would cost WAY more to buy than to rent.

WFT?
WFT?
9 years ago

@Anonymouse:

On what basis so you make that conclusion?

Anonymouse
Anonymouse
9 years ago

Who is offering 3% 5yr fixed?

Anonymouse
Anonymouse
9 years ago

Inventory has just about peaked. On an earlier thread I said it would top out at 17500, but I now don't think it will get that far.

Li Kai Shing
Li Kai Shing
9 years ago

Aha…. I give present to friends sent back to Mainland China on bogus charge of laundering Billion$$$ of round – eye YUAN They are " Investors" …..trying to save humanity from basement suite troglodytes. Anyway…while I smuggle in Nuclear Device in DQ Dilly – bar "…..I get this joke on Al Gore Inc. Internet. ============================================================== > > A refuse collector in Cairns , Australia , is driving along a street > > picking up the wheelie bins and emptying them into his compactor. > > > > He goes to one house where the bin hasn't been left out, and in the spirit > > of kindness, and after having a quick look about for the bin, he > > gets out of his truck goes to the front door and knocks. There's no > > answer. > > >… Read more »

BRITANNY
BRITANNY
9 years ago

Consumer sentiment is what makes prices rise and fall. Whether it is RE,gold,cabbage patch dolls etc. It used to be supply and demand, but that is old economics.When the US RE market crashed, it didnt decrease blackberry sales. The gov't knows this. Thats why they hang their hat on the one positive thing and pump the shit out of it and avoid the 100 negative things going on. The general public could make an effort to keep themselves informed but that would take effort so scratch that idea.Sometimes I wish I was an idiot so I could be accidently hugely successful and chaulk it up to my above average intelligence. You know, like Donald Trump.

Thurston Howell
Thurston Howell
9 years ago

@Keeping An Eye On The Pimps:

That is why Flaherty, let the banks unload the junk onto CMHC.

But the bag of tricks has got to be empty now.

Dan
Dan
9 years ago

“Think about it, last figure of inflation rate was 3.7% for Canada and we can get a 5 year fixed for 3%. Who is getting screwed here?"

I wouldn't be surprised to see a minus -3% inflation rate this month with how hard commodities and other markets are getting hit.

Best place on meth
Best place on meth
9 years ago

The pathetic A-holes in the mortgage broker business keep whining and whining and even more whining that the banks should drop their mortgage rates. It's just not fair, say the parasites.

Looks like banks had enough of their shrillness and will throw them a bone.

http://www.canadianmortgagetrends.com/canadian_mo

PallB
PallB
9 years ago

@lol cats:

Winnepeg?

Nothing but whores and linebackers there.

PS what position does your " udder 1/2 " play?

Keeping An Eye On Th
Keeping An Eye On Th
9 years ago

"Think about it, last figure of inflation rate was 3.7% for Canada and we can get a 5 year fixed for 3%. Who is getting screwed here?"@paradox:

Have you looked at the stock prices of banks and where they are headed?

Eventually they will go bankrupt, you can suspend gravity for only a while.

The banks cannot lend money for less than inflation for ever.

But if they can capture the last of the greatest fools- power to them.

Best place on meth
Best place on meth
9 years ago

10 U.S. housing markets that could fall the hardest in 2012.

http://finance.yahoo.com/banking-budgeting/articl

The current prices already look low, but another 10-16% down next year?

lol cats
lol cats
9 years ago

PallB must live in a real shithole based on post # 20. keep dreaming stoner… or move to Winnipeg.