Friday Free-for-all on the new site!

Hello everybody, it’s Friday and you know what that means.. It’s Free-for-all time, our end of the week news roundup and open topic discussion thread.

Here are a few recent stories to kick off the chat:

BOC warns of ‘debt shock’ if house prices drop
Inventory graph: growth slowing but still steep
RRSP contributions shrink to 1970s levels
Mortgage fraud blooming in Canada
Our debt vs. pre-meltdown levels in USA
Housing Collapse in mississauga. literally.
Shill article linked by Forbes gone from Vancouver Sun?
First time buyer bonus to make a difference in suburbs

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Please post any issues in the comment section.  We can’t promise they’ll all be addressed, but we’ve been pretty good about responding to requests so far.

A few new things of note:

Formatting Numbers:

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That’s about it for now, let’s get on with the conversation.

So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent weekend!

 

Update: Patriotz linked to this image of the Macleans March 5th cover, it’s a doozy:

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oneangryslav
Member
oneangryslav

Just a note regarding the real-estate media complex. I accompanied my significant other to the Carol Burnett appearance at the Orpheum Theatre last weekend. I was absolutely stunned by the ovation received by the two co-hosts–Global TV anchors, whose names I didn’t catch. After a brief introduction it was they who would go on to introduce Carol to her adoring fans.

These Global TV anchors were greeted like rock stars!

Starving Artist
Member

I’ve had enough of waiting for the Canadian RE market to correct, hell will freeze over before I buy at these multiples. I’m seriously considering relocating to Pheonix (cheap, warm, hub) or Hawaii (not so cheap, warm, closer to Asia). Florida and LV aren’t really my scene.

Can anyone recommend some relatively unbiased blogs that publish regular data for those markets, AZ and HI?

patriotz
Member

Hat tip to VW at HHV:

http://www.pdfmagazines.org/magazines/3966-macleans-05-march-2012.html

Just this time I think the magazine cover indicator is not contrarian. 🙂

Patiently Waiting
Member
Patiently Waiting

Yet another story of doom and gloom:

http://www.cbc.ca/news/canada/story/2012/02/23/household-debt-house-prices.html

“Canadians are relying too much on home equity loans for their borrowing, the Bank of Canada warned Thursday.

In four research papers looking at trends over the last dozen years, the central bank says Canadians are increasingly exposed to a correction in house prices because they have increased their borrowing amid a sharp increase in house prices — and equity.”

patriotz
Member

@Patiently Waiting:
“And debt to household equity has risen as well even as home prices have soared”

This is the key sentence. Even with a record increase in house prices, equity has declined relative to debt, i.e. debt has been increasing even faster than house prices. Which of course means it’s a Ponzi scheme.

Compare to the US in 2007:

http://www.calculatedriskblog.com/2007/06/percentage-of-household-equity-falls-to.html

“Despite the significant increase in valuations in recent years, the percent equity has been dropping – and is now at an all time low of 52.7%.”

YLTNboomerang
Member

PLZ vote this down, just making sure my user is working and still active.

vangrl
Member
vangrl

“Carney issues fresh warning on debt ”

this article in the Globe and Mail has almost 300 comments, all comments are basically trashing Carney for yet another warning without actually doing something. Almost every other article in every other publication regarding our debt issues have common comments.

Does he or his P.A’s not read these at all? is everybody wrong in thinking that he should do something NOW to curb the spending?

Don Lapre
Member
Don Lapre

Global TV is absolutely horrendous. From Michael Levy, to Michael Campbell to the anchors themselves; it is “The Province” of newscasts.

N
Guest
N

@patriotz:

Ah, good old media, making it worse on the way up, and making it worse on the way down.

Self fulfilling prophesy of the week: It’s officially time to panic.

People who didn’t really believe in the power of the market and could see no reason why prices would ever go down, forgot about the impact of headlines like these (and failed to factor in the impact of opposite headlines on the way up).

Groggins
Guest
Groggins

@patriotz: Whoa! We’ve seen a few bubble related covers, but that one takes the cake.

patriotz
Member

@vangrl:
“is everybody wrong in thinking that he should do something NOW to curb the spending”

Carney cannot do anything about household debt without putting more industrial workers out of work, mostly in Central Canada, due to a higher CAD.

Flaherty and Harper can.

vanpire
Guest
vanpire

@oneangryslav:
They ARE the equivalent of rock stars around here. That’s all we’ve got in this backwater shitty town after all… Global’s shills are Vancouver’s idols. Can’t get more pathetic than that…

vanpire
Guest
vanpire

@patriotz:

Hello, didn’t anyone notice? That article is about Canada and we are Vancouver ,/b> so, obviously, it is not going to happen here. Duh…

vanpire
Guest
vanpire

@vanpire:

Ooops! … I mean, Ooops!

VMD
Member

@patriotz:

Mclean’s trying to match Canadian Business magazine in dramatic cover pages lol.

http://s7.postimage.org/6iyybxcy3/Crash.jpg

VMD
Member

@patriotz:

It seems like Mclean’s trying to match Canadian Business magazine in dramatic cover pages lol.

http://alturl.com/zkwe3

registered
Member
registered

@6 vangrl: The feds don’t give a shit about you or me and follow their own agenda. They’re 100% behind corporate interests, domestic and foreign, to the point of trashing democracy for the benefit of Hollywood:

http://www.michaelgeist.ca/content/view/6335/125/

Canada’s spineless corporate Taliban. For all his countless faults even Chretien had the balls to tell the American entertainment industry to screw themselves.

Many Franks
Guest
Many Franks
Guest

(A heads-up to the bear gods: I had a comment get stuck in moderation yesterday, probably due to the number of links in it; I’ve reposted it on this thread and now it’s stuck here.)

Anonymous
Guest
Anonymous

Regard the $10,000 “tax credit” for 1st home buyer.

“Tax Credit” is used here to mislead home buyers to think they were to get a $10,000 chq in the mail from the Gov.

The correct tax term for this is “Tax Deductions” as it just reduces one’s tax income.

http://www.kiplinger.com/columns/ask/archive/2007/q0319.htm

This is Accounting 101, yet Finance Minster couldn’t get it right.

mflat
Member
mflat

You can’t make this sh*t up. I posted a week ago about the insanity of the East Vancouver market giving the example of a builder who converted a 33×120 lot into a house with a strata titled main floor and basement, as well as a lane house. The main house is up for sale, with the lane house still to be completed.

Well, the basement of the main house has sold.

Best place on meth
Member
Best place on meth

@Anonymous:

A $10k tax credit actually amounts to about $2500 less tax paid doesn’t it?

Anonymous
Guest
Anonymous

No, Only BC rate is apply. It you are at the lowest rate in Province tax, it is about $500

FiveNeatGuys
Guest
FiveNeatGuys

@Many Franks:

Wolf!

WOLF!

WOOLLFF!!

I think everybody is just used to these warnings so they disregard them now. Kinda like the boy who cried wolf.. what happens at the end of that story again?

Oh yeah, everyone gets devoured by the warning they’ve learned to ignore.

Not much of a name...
Member
Not much of a name...

@Anonymous: It’s interesting that the gov’t in their own information handouts use the term “bonus” more often than “tax credit”.

http://www.bcbudget.gov.bc.ca/2012/homebuyers/2012_First_Time_Home_Buyers_Fact_Sheet.pdf

I’ve also read somewhere that the gov’t has estimated that this program will cost about $24M. That sounds more like people will be receiving a cheque up to $10k rather than a tax credit with a value of $500.

But again, who knows, by the time anyone gets to see any of this credit, it will be past the election next year anyway. Hmmmm….pulling the wool over the eyes of prospective buyers me thinks…

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