Mark Carney, we hardly knew ye’

Can you believe this?

Mark Carney is leaving us for the Bank of England!

Carney said he and Flaherty had enjoyed an effective partnership and added he will miss the camaraderie and clear sense of purpose he experienced with the finance minister. He praised the strength of the central bank and reiterated his confidence in it.

A smiling Flaherty said this moment is “bittersweet,” and that the loss of Carney will be felt in Canada.

Carney’s rumoured appointment to the Bank of England was the source of published reports last spring, and at the time he and the Bank of Canada denied the reports.

“I’m totally focused on my two responsibilities: as governor of the Bank of Canada, and the Financial Stability Board,” Carney told reporters on April 18. “I can assure you they add up to more than every waking hour of the day.”

I’d leave a job that added up to more than ‘every waking hour of the day’ as well.

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patriotz
Member

@Guy Smiley:
” But if it’s in professionally managed rental pool, and not getting rented out, it is wracking up tax deductable losses. No?”

No. CRA will disallow any deduction for a “rental” property that sits empty more than is normal for the market, because as Guy pointed out, that means the owner is deliberately letting it sit empty by asking too much.

You can always rent out a property for the market rent, by definition (I mean of course a city like Vancouver, not a ghost town).

trackback

[…] normally post about events, but many readers here may be interested in this one.  Here’s a comment Ben left here […]

FlipFlop
Guest
FlipFlop

Patz says

“Note how nominal prices, real prices, and price/rent have all returned to the pre-2000 trends – something that the bulls were saying was impossible a few years back.”

I guess this means the US real estate market has finally recovered. Now if we could just get the MSM to report it that way!

Bo Xilai
Guest
Bo Xilai

@jesse: If Carney was that smart, he would have started his own hedge shop and shorted the shit out of Freddie Mac and Fannie Mae and bought deep out of the money put options.

I love Rosie, but I think he’s bought into the Mark Carney hagiography. Don’t get me wrong, I think Carney knew he should get out of Dodge while the getting was good, but I don’t think he’s some type of “spine tingling” genius.

Harry Wang
Guest
Harry Wang

http://www.canada.com/news/Robberies spawn charges/7614486/story.html

Robberies spawn charges

One of two men arrested for armed robbery was a real estate agent in Maple Ridge, and he has since lost his licence

Anonymous
Guest
Anonymous

@paulb: Gotta love that sold/listings ratio!

Anonymous
Guest
Anonymous

Rent It Furnished was established in 2009 prior to the 2010 Olympics. Here is how they are marketing a place:

http://rentitfurnished.com/downtown-vancouver-luxury-penthouse-for-sale-1006-beach-avenue/

“This luxury property has been rented by Rent it Furnished Realty for up to $11,000/month and we are now offering this exclusive property for sale in partnership with Blake Lilly, Remax.”

stagnate
Guest
stagnate

wouldn’t suprise me if carney had had enough of flaherty. carney is a bit of a visionary in that he knows government based reflation and debasement is going to be the wave of the future. canada was well positioned for this. flaherty appears as either a bit clueless or plays dumb or always has outdated ideology. take your pick.

Anonymous
Guest
Anonymous
Re: Furnished rentals. A couple of my comments. 1. You don’t have to advertise a place as a rental to claim a loss on an investment property. If your interest and expenses are higher than revenue it is a right off on other income regardless if you advertise it as a rental or just let it sit empty for sale. 2. These furnished rental agencies take about 35% of the monthly rent. The owner is not getting the full amount. Compare this to a regular property manager who might get 10%. 3. Most of the furnished rentals seemed to show up around the Olympics. There was obviously a market for furnished accommodations during the Olympics but I doubt most of these places are rented more than about a month per year now. There just is not enough demand in Vancouver.… Read more »
Sensible
Guest
Sensible

Jesse:

So it is safe to say that the Finance officials already know what crises lie ahead?

jesse
Member
Here’s an interesting one from BI: ROSENBERG: In 2007, I Had A Conversation With Mark Carney That Sent A Chill Up My Spine On U.S. Thanksgiving in 2007, shortly after he was named the next governor of the Bank of Canada, Mark Carney and I met at his office in Ottawa. After a bit of discussion about the economic backdrop, he asked me: “Who is the smartest person on mortgages over at the Merrill desk in New York that I can talk to?” I asked him why. He showed me reams of data from spreadsheets he had created and said, “Do you see these bracket signs at the bottom?” The brackets indicated negative numbers. I nodded. “This is Freddie Mac’s balance sheet,” he said. “It’s insolvent. And if it is, Fannie Mae isn’t far behind.” Needless to say, that finding… Read more »
G
Guest
G

speaking of food bank. Over the past few years, there have been so many people standing at busy intersection asking drivers for money.

TurtleHead
Guest
TurtleHead

I saw tonight on the news the number of the people coming into the food bank is up 10% from this time last year.

Some Guy
Guest
Some Guy
@space889: “or let the free market determine more of the cost of borrowing and allowing debts to be written off (default) with private investors taking the loss. That might be better than your method of high interest rate and printing money because it’s less likely for the new money to flow to those who don’t need it – eg) banking fat cats or those with the right connections.” Well, I agree with your concern about the money going to the right place. I’d advocate just sending equal cheques to every citizen with a condition that it has to be used first to pay any outstanding mortgage debt for those who have any. But the current system, in which all new money is created as debt (with interest payable to banks and wealthy bondholders) is pretty much optimal for fat cats… Read more »
southseacompany
Member
southseacompany

Interesting:

“Mark Carney: is he really that good?” Maclean’s Magazine;

http://www2.macleans.ca/2012/11/27/mark-carney-is-he-really-that-good/

“…have we been witnessing something of a Mark Carney bubble in the last few years?

I’m sorry to disappoint those in the Mark Carney fan club, but signs point to the latter. The odds are that history will not judge Carney as kindly as we are now.”

Balda
Member
Balda

Not related to Mark Carney, but very related to the first comment:)

Technically it’s an interesting project and totally doable, but can anybody explain how it may work from the legal perspective?

Tthey say ‘TREB’s VOW policy would be similar to the policy adopted by NAR’

http://lowes.inman.com/InmanINF/lowes/news/145830

but it looks like there is no password required to access listing info on ziprealty.com:

http://www.ziprealty.com/property/10605-SEOLA-BEACH-DR-SW-SEATTLE-WA-98146/74277446/detail

so what is this noise about password protected VOW’s?

Also, ziprealty.com is providing the prices from previous sales (see the link above) having different source specified (not MLS), i guess they are not allowed to specify MLS. Do we have something similar here (i.e. some source that can be specified when price is provided to the public)?

ReadyToPop
Guest
ReadyToPop

I see Many Franks already posted the Flaherty story. Oh well, let the speculation begin.

VMD
Member
Canada housing moving in right direction: BoC’s Murray Nov 27 “NEW YORK (Reuters) – Canada’s heated housing market appears to be cooling as desired, a senior Bank of Canada official said on Tuesday, although he noted that housing starts remain unusually high. Housing prices and construction in Canada roared higher in 2011 amid low interest rates, sparking fears of a U.S.-style bubble. The market started to slow after the government tightened rules on mortgage lending in July, and policy makers hope to see a gradual softening rather than a crash. “It’s still early days. But we’re certainly seeing evidence of movement and acceleration in the right direction,” Murray told a business audience after giving a speech in New York. “Some sort of smooth transition, at least on the housing side, is what we’re looking for,” he said. He said the… Read more »
ReadyToPop
Guest
ReadyToPop

OTTAWA — One going, and another one likely to follow soon.

It would seem inevitable that in the wake of Mark Carney’s imminent departure from these shores, his key backer and policy counterpoint would entertain similar thoughts of disengagement from Ottawa.

Flaherty next? After Carney departure, spotlight turns to finance minister

Guy Smiley
Member
Guy Smiley

@Vote Down The Facts:

Maybe. My thought though was that the prices were so high precisely because they don’t really want anyone to rent it.

Con-Rad
Guest
Con-Rad

100% sell-newlist.

Wait, this is the first time sell-newlist hit 100% this month, normally the sell-newlist goes over 100% mid-month, and there are only 3 days left?

Crap.

SunBlaster
Guest
SunBlaster

I remember in 2007 talking to my mortgage broker about buying a second place and 40yr mortgage. He strongly advice me not to get a second mortgage and defenitely not get 40yrs. Thinking back I had no clue about any of this and he had integrity to go against his business interests to give me that advice.

YLTNboomerang
Member

@Ben Rabidoux: I really wish I was in town for this but I’m in Houston all week for meetings. I hope at some point there is an opportunity to meet some of the folks behind the blogs as I’ve been around since the early days of VHB’s blog and have enjoyed the banter. At what point are we going to have the Vancouver Bubble meetup? It’s got to be once the crash is in full effect and it’s no longer worthwhile to blog “see, we were right”, bear opinions will be accepted and heated words of past forgotten (I know I’ve made some strong statements that pissed others off).

paulb
Member

New Listings 114
Price Changes 85
Sold Listings 114
TI:16993

http://www.paulboenisch.com

Vote Down The Facts
Guest
Vote Down The Facts

@Guy Smiley:

The example was listed at $4250/month. That’s about $140/night. Could it be targeted at people on business, staying for a few weeks?