FFFA! Long weekend edition.

Hey! It’s Friday,  and for a lot of you its a long weekend.   This is our regularly scheduled end of he week news round up and open topic discussion thread.

-links to be added here later

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

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/dev/null
Member
/dev/null
Reposting Democrass’ link from the last thread: Local housing resales, prices will keep falling: prediction Outlooks says last year’s sales hit 12-year low VANCOUVER (NEWS1130) – A local economist predicts Greater Vancouver’s “listless housing market performance will persist through 2013.” Central 1 Credit Union‘s outlook for the BC housing market says sales last year hit a 12-year low. Economist Bryan Yu says the factors that contributed to the sales plunge and lower prices “are still in play.” He expects resales will fall another four per cent this year to 31,500 while the median price, the midpoint between highest and lowest, will slide six per cent to $474,000. Yu says “subdued immigration, stagnant employment growth and the most recent round of mortgage insurance rule tightening will weigh on purchasing… biting particularly hard in high-priced Greater Vancouver.” Looking at the province overall,… Read more »
midnite toker
Member
midnite toker

Long weekend, get out there and buy a house! Please?

An Observer
Guest

More fake real estate news stories. This time a nice elderly couple explains how wonderful it is to use their home as an ATM in the Financial Post. They then speak to an “expert” from Team Rob Regan-Pollock mortgage brokers. What they fail to mention is that the husband works for the mortgage brokers.

http://vreaa.wordpress.com/2013/03/28/more-undisclosed-re-industry-insiders-publicized-as-clients-in-1995-allan-and-karin-hoegg-were-mortgage-free-but-no-more-today-their-vancouver-home-is-a-valuable-source-of-income-as-they-plan-f/

http://whispersfromtheedgeoftherainforest.blogspot.ca/2013/03/thursday-post-2-another-media-scandal.html

Their facebook page:
https://www.facebook.com/teamrrp

Horse-sized Duck
Guest
Horse-sized Duck

This site seems stable now and the comment layout is way more useful, thanks Pope

AG Sage
Member

> from previous thread Canada Discusses Forced Depositor Bail-In Procedures for “Too Big To Fail”

If Canada really is going to enact this, then they should upfront tell depositors that some %, say 10% of every deposit is actually a purchase of shares in the bank and subject to losses and gains like any similar investment. That way Canadians would see clearly the stark choice of “deposits” in a TBTF and deposits in a small neighborhood bank, which would work normally.

Nothing wrong with this plan if it’s made clear upfront and the people are allowed to vote with their feet. Maybe that would shrink said banks down to size.

patriotz
Member

A bank deposit is insured or uninsured. If insured the deposit is guaranteed by the GoC. If not insured it’s a claim on the assets of the bank like any debt.

That’s the way it has been and will continue to be.

bubbly
Member
bubbly

@patriotz
True, but bank deposits are senior to shareholders, junior bond holders and senior bondholders.

Jenny Italia
Guest
Jenny Italia

Vancouver is different. Too many young people in their sexual prime.
Young men and women are restless and horny. You can only suppress their urges so long. They are about to explode and when they explode,
they will go on a home buying spree.They are sick of living in their parents basement. They need a place of their own , where they can get laid. Renting is percieved as money down the drain.

HOME OWNERSHIP IS A VERY POTENT APHRODISIAC.

http://money.cnn.com/2012/02/14/real_estate/dating_homeownership/index.htm

bubbly
Member
bubbly

@Jenny Italia haha, nice troll 🙂

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

@Jenny Italia

Renting is percieved as money down the drain.

And perception is far from reality.

patriotz
Member

“Renting is percieved as money down the drain.”

And perception is far from reality.

Well not that far – renting a mortgage for twice the cost of renting a dwelling is certainly throwing money down the drain!

Harry Bowles
Guest
Harry Bowles

@ Jenny Italia,

How true,
Buy Home, Get Laid.
New slogan for Rennie Marketing.
Should have listened to my parents 15 years ago.
Didn’t have balls then.

Joey Vancouver
Guest
Joey Vancouver

@ Jenny Italia

I find myself strangely attracted to you.

Short'em High
Guest
Short'em High
Deposit Insurance, “Who knew?” Edition Cyprus http://www.centralbank.gov.cy/nqcontent.cfm?a_id=8158&lang=en The maximum level of compensation, per depositor, per bank, is €100.000. Ooops! Quite a few very wealthy Cypriots didn’t read that part. Canada http://www.cdic.ca/DepositInsurance/FAQ/Pages/default.aspx CDIC insures eligible deposits at each CDIC member institution up to a maximum of $100,000 (principal and interest combined) per depositor We all knew that, but a few people probably didn’t read this part: There is no CDIC coverage for foreign currency deposits. One final thing about CDIC. Last time I asked, years ago, CDIC told me their insurance reserve was some small amount like $2B, so it would be up the current Minister of Finance or Parliament to decide if obligations in excess of the CDIC reserves would be borrowed and payed out. Don’t quote me on the $2B, as I can’t find that email at the moment.… Read more »
Short'em High
Guest
Short'em High

Other Canadian Deposit Insurance Pools

BC Credit Unions http://cudicbc.ca/

On November 27, 2008, the Provincial legislature passed amendments to the Financial Institutions Act to provide unlimited deposit insurance protection on all deposits in British Columbia’s credit unions.

Trading Accounts http://www.cipf.ca/Public/CIPFCoverage/WhatCoverageDoesCIPFProvide.aspx

When you open a customer account at a CIPF Member you may be eligible for up to $1 million of coverage if you suffer a financial loss because the Member cannot return the property in your account to you. Such financial loss must be caused by the insolvency of the Member.

Yes, both of these DO insure foreign demoninated deposits, but I would take BC’s unlimited guarantee with grain of salt. Any unlimited guarantee is only as good as the size of the reserve plus the size of the political will to borrow the excess obligation.

patriotz
Member
“We all knew that, but a few people probably didn’t read this part:” There is no CDIC coverage for foreign currency deposits. I still remember a TV clip of the 1993 (I think) election campaign where some depositors with BCCI (aka Bank of Crooks and Criminals International) Canada were pestering Chretien to promise them they would get their foreign currency deposits back. Depositors and other creditors of the Canadian branch of the Bank of Credit and Commerce International will receive a second payment shortly, the bank’s liquidator says. Melvin C. Zwaig, president of Arthur Andersen Inc., liquidator of the Bank of Credit and Commerce Canada, said last week that the second payment would be 10 cents on the dollar. An earlier payment of 10 cents on the dollar was made to depositors and creditors in December. About $18.68 million has… Read more »
bon jovi
Guest
bon jovi

@short
when i sold my house i had more than 100k in the bank.soon after that i got a call from the bank to help me out “restructure” into few different accounts under the some bank all under 100k limit.I can’t recall the conversation but it was explained to me that i could open checking, savings, trust and so on account and all of them would be covered under CDIC insurance. Do you know anything about that?

Jasmine
Guest
Jasmine

@ Jenny Italia,

Specially true for Asian girls.
Chinese parents and Korean parents cannot even think of the fact
that their unmarried daughters is sexually active.
They think that their little princess is a virgin on her wedding night.

patriotz
Member

” i could open checking, savings, trust and so on account and all of them would be covered under CDIC insurance ”

Quite simple, all the majors have subsidiaries that qualify as separate institutions with CDIC.

Also, even with the same institution each registered account is treated as a separate depositor (RRSP, etc). So it’s quite simple to have several hundred K all insured at the same bank.

Short'em High
Guest
Short'em High
@bon jovi, CDIC coverage is per institution, so the depositor’s total banking relationship in each bank excluding foreign denominated holdings is limited to C$100,000 coverage. Adding accounts/products at one bank doesn’t increase coverage at all. Restructuring probably refers to other interest bearing “stuff” like term deposits/strip bonds etc they want to sell you. Those, like extra accounts, don’t increase the depositor’s CDIC $100K per instition coverage either. To be safe, open accounts at DIFFERENT banks and keep each total under $100K including one year’s anticipated interest. Better yet, put some into the other deposit insurance pools like any BC credit union or any Canadian brokerage account. It costs nothing to do, and not doing it is completely crazy. When I heard about the Cyprus bail-in, I couldn’t believe so many were so careless about the institutional deposit insurance limit. I… Read more »
Short'em High
Guest
Short'em High
From the CDIC FAQ linked above: Which types of deposits are insured by CDIC? Which ones are not? CDIC insures eligible deposits at each CDIC member institution up to a maximum of $100,000 (principal and interest combined) per depositor (or, in the case of joint deposits, per set of joint owners), for each of the following: savings held in one name, joint deposits (savings held in more than one name), savings held in trust for another person, savings held in Registered Retirement Savings Plans (RRSPs), savings held in Registered Retirement Income Funds (RRIFs), savings held in Tax-Free Savings Accounts (TFSAs), and money held for paying realty taxes on mortgaged property. To be eligible for deposit insurance, deposits must be payable in Canada, and in Canadian currency. As a general rule, a deposit is considered to be payable in Canada if… Read more »
Vote Down The Facts
Guest
Vote Down The Facts

Who keeps their $100k in a mouldy savings account?

Short'em High
Guest
Short'em High

@VDTF Says: “Who keeps $100k in a mouldy savings account?”

In Cyprus 4.2 billions worth of despositors kept more than 100K in just one of their banks!

http://www.reuters.com/article/2013/03/25/us-cyprus-parliament-idUSBRE92G03I20130325

The raid on uninsured Laiki depositors is expected to raise 4.2 billion euros

patriotz
Member

“@patriotz, please give an example of any separately CDIC qualified registered product”

You just did, in the same post.

Anonymous1
Guest
Anonymous1

Lets settle that renting/owning debate.

Owning is better if you can get the place with a mortgage for less than 2X monthly renting cost.

***This assumes interest rates stay the same over the next 25 years (not likely) and house prices are at a fair level (not going down).

If these assumptions hold (not likely), then 50% of your monthly mortgage payment goes towards paying down the balance.

The wildcards are the gov (your adversary?) opening the immigration taps, letting inflation run wild (devaluing our currency)…

wpDiscuz