Close your eyes and load up on debt

This National Post commentary is one of the most direct attacks on Canadian personal debt levels I’ve seen in the mainstream media.

The takeaway is this: YOU are responsible for your own debts, don’t go whining to anyone if it gets you into trouble.

It’s mindboggling to think that an entire population can look at what happened in the US when personal debt levels got this high and shrug it off.

Analysts and economist are filled with forecasts of doom, and that was before the latest figures showed debt had continue to pile up over the past year to a record 163% of household income, which is where the U.S. was before the 2008 collapse, and about 10 points higher than anyone thought. As the housing market cools and home prices slip, a lot of people could find themselves making monthly payments they can barely cover for a house that isn’t worth what they thought it was. If you can’t cover the mortgage, you just have to pray the roof doesn’t start leaking or the furnace fail.

And borrowers won’t really have anyone to blame but themselves. The warnings are out there. The examples are rife: all anyone has to do is examine the experience of U.S. homeowners over the past few years. The dangers aren’t a secret, they’re just being ignored.

But people keep borrowing, because it makes them feel good to spend, because they’re too busy to think about it, because they figure they can cover the payments in the short term and will deal with the future when it comes. And because they can always blame it on someone else when the roof caves in.

Read the full article here.

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Bull! Bull! Bull!
Guest
Bull! Bull! Bull!

Hi Bears,

Has the market collapsed yet? No? Are things turning around? Yes? Oh. Looks like 2012 is a repeat of 2008. Looks like 4 more years higher real estate prices. Looks things aren’t different this time. 6 years of being wrong, bears. In the words of Shaq: “Tell me how my ass tastes”.

sickooo
Guest
sickooo

kansai92: “But when it comes to RE, they become brainless zombies.
Must buy, must buy! At all costs.”

i did not know that 70% of households that own in Canada are Asian!! Who knew.

Ben Rabidoux
Guest
Ben Rabidoux

@Simple

I’ll look into the possibility of a webcast. I’d also love to do seminars in Toronto, Ottawa, and Montreal….as the extreme weakness in the latter two markets should go mainstream in early 2013. Maybe one of those might work better.

We’ll see how this one goes…

Bailing in BC
Guest
Bailing in BC

@VMD:

Thanks VMD great info. It’s too bad that they lump Squamish in with Whistler though. They are obviously two separate markets with different dynamics and an average price will not be reflective of either market.

Anonymous
Guest
Anonymous

i want to unlike Paulb’s post but I would never do that to him

kansai92
Guest
kansai92

Asians are great at saving and entrepreneurial ventures.
But when it comes to RE, they become brainless zombies.
Must buy, must buy! At all costs.

patriotz
Member

@Anonymous:
“Some Great News from our neighbors down south”

Great news indeed – it took a drop down to 1/2 of Canada’s current prices for the US to hit bottom.

patriotz
Member

@Anonymous:
“Singapore, Australia, and now Hong Kong had passed laws to curb real estate speculation from foreigners”

All of the above have government policies which deliberately inflate the price of RE. That’s the real problem, not foreigners, and that goes for Canada too.

paulb
Member

New Listings 163
Price Changes 170
Sold Listings 143
TI:18743

http://www.paulboenisch.com

Anonymous
Guest
Anonymous

a realtor “friend” just posted this on facebook wall

“Some Great News from our neighbors down south which will impact Vancouver Real Estate in the months to come:”

with this link

http://money.cnn.com/2012/10/24/real_estate/new-home-sales/index.html?section=money_realestate&utm_source=twitterfeed&utm_medium=linkedin&utm_campaign=Feed%3A+rss%2Fmoney_realestate+%28Real+Estate%29

Really? we follow the states lead?? hasn’t felt that way in the last 6 years

Anonymous
Guest
Anonymous

@boogeybear: “Every conservative MP should loose their pension until the debt is paid back.”

Or better yet, force them to sell their tinfoil hats and return the crop circle and cattle mutilation implements.

sickooo
Guest
sickooo

“Sold Listings 144”

Sandy hit the bears!! hi-hi

Take A Gander
Guest
Take A Gander

@No Money Down: That’s the classic Caucasian On Credit mentality. Taking zero personal responsibility.

______________

Yup…just look at those pictures of lineups for the release of the new iphone or tablet…ooops…sorry…I forgot it is always the other version of “Caucasians on Credit”

Hairy Gerry
Guest
Hairy Gerry

@HFHC:

I’m betting those sales are all for big discounts.
Remember, it takes sales to bring averages down 🙂

boogeybear
Guest
boogeybear

@Deliverator:

I’d go one step further and say that the lenders and Conservatives actions were predatorial on home buyers. Every conservative MP should loose their pension until the debt is paid back. And every lender should have to eat the first 20 percent of the loss rather than the taxpayer.

Anonymous
Guest
Anonymous

@HFHC: Have not seem price changes surpassing listings and sells. Must be the message is getting around.

HFHC
Guest
HFHC

New Listings 168
Back On Market Listings 5
Price Changes 179
Sold Listings 144

looks like it will be a high sales day

keep in mind this is all lower mainland

Anura Femur
Guest
Anura Femur

@No Money Down: That’s the classic Caucasian On Credit mentality. Taking zero personal responsibility.

Anonymous
Guest
Anonymous

@Anonymous: Singapore, Australia, and now Hong Kong had passed laws to curb real estate speculation from foreigners, mainly to the Mainland Chinese. Wake up Canada before its too late. Write to Ottawa!

Anonymous
Guest
Anonymous
Deliverator
Member
Deliverator

@bubbly: The Cons added fuel to the fire with the US meltdown in full view. To me, that makes them especially culpable.

clone
Guest
clone

Are you really that dumb? “Most people in this city aren’t as stupid as you are, so you’re not very representative of your moniker.”

You said most people in Van aren’t that stupid? If that is the truth then they would not bid up the prices to this level. Duhh

patriotz
Member

@No Money Down:
Whiney Aussie: ”This was a disaster and for the sake of my young family I need answers,”

OK here’s your answer. You’re a fool who thought he could get something for nothing by paying a ridiculous price for a RE investment, and you lost money, which is what happens when fools pay ridiculous prices for investments.

b5baxter
Member

@Anonymous: “How can the PROPORTIONS for ALL categories have increased???”

The Vancouver Sun article is wrong when they use the term “proportion” for the increase. The % increases are for the number of absolute trips. So, car use is up 4% in absolute terms but down in porportion (since population increased by 6%).

The original press release form Translink (available on their website) makes this clear.

patriotz
Member

@Anonymous:
“Sometimes people have to think for themselves and not depend on the government to do it for them. A new concept for you?”

Hardly, it’s what I’ve been saying on this forum for years. And doing myself.

You are peddling the same line as the article itself – that this mess was simply the result of irresponsible consumers rather than the outcome of a deliberate government strategy.

Governments have a responsibility to act in the best interests of all citizens, present and future, regardless of how responsible some of today’s citizens choose to be.