FFFA! Bears! Condo! Fail! Trump! Yields! Obsessed!

Hey, wake up.. it’s FRIDAY!

And that means it’s time for our regular end of the week news round up and open topic discussion thread for the weekend.

Lets do it. Here are a few recent links to kick off the chat:

Presales sales fail costs $750k
Crash won’t hurt banks at first
Rates and bonds
BOC on housing market?
Trump name sold to Holborn
Toronto Trump tower CEO resigns
Nasty bear loving?
Debt income ratio falls
Yields rise, as does insurance
Cost driving students out?
Canadians obsessed with RE
Condo depreciation reports

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

 

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patriotz
Member

TD Bank to Paul Krugman: You’re wrong about ‘vulnerable’ Canada

“Meanwhile, while mortgage delinquency rates in Canada and the U.S. were similar during the 1990s, the per cent of mortgages in arrears 90 days or more in Canada is about a third of what they were in the U.S. leading up to the 2008-2009 crisis.”

The TD spokesperson is ignoring the fact that the US housing bust started in 2006, when mortgage arrears were at historic lows, not in 2008. Mortgage arrears are a lagging indicator of falling prices.

Lots more “it’s different here” for your enjoyment.

Billy Bob
Guest
Billy Bob

For all the “China will rule the world” folks…

“China’s centrally planned economy inevitably means massive corruption and a massive misallocation of capital,” he said, pointing to increasing funding problems for Chinese companies. “Interbank lending rates have shot up and many companies are facing a cash crunch.”

http://business.financialpost.com/2013/06/20/china-is-a-crash-waiting-to-happen/

Anonymous
Guest
Anonymous

Bob fwiw guys like Pettis are predicting sub 4% GDP growth for China over next decade. I don’t know how many here are old enough to remember Japan in the 90s… but that for ten years.

China’s not going away but people were using too powerful a telescope to estimate its future potential.

Billy Bob
Guest
Billy Bob

I clearly remember how Japan was going to “rule the world” with predictions way out into the future. I doubted it then and I doubt it with China now. Everyone back then always talked about the demise of the US too which also was completely wrong. Never discount the innovation of the US.

Anonymous
Guest
Anonymous

@Billy Bob

Chinese people are hard working think long term, unlike N. Americans. They aren’t thinking years ahead, they are thinking decade and centuries ahead.

specialfx3000
Member
specialfx3000

Two years ago, I was in an RBC branch to contribute RESP for my kids and was helped by one of the acct managers.

Yesterday, she called me out of the blue to ask if I’m looking to buy a house. I said that I have the desire but the prices are stupidly high.

Ignoring what I said, she asked me to come in today to lock in a rate because rates will rise on Monday.

I said cool. I asked her if she could promise me that rates will continue to rise because it’s about freakin’ time.

Then I politely ended the call.

Billy Bob
Guest
Billy Bob

Anonymous Says:
June 21st, 2013 at 7:26 am

Please… They are short term just like everyone else and that’s why they are blowing their brains out building everything they can today to keep the economy humming (and people happy)!

Anonymous
Guest
Anonymous

I have this fantasy that China hits a hard landing, the regular people riot and the government is forced to cut off all the corrupt oligarchs from exporting their ill-gotten gains.

Then these leeches of their own people are forced to sell their huge homes to the locals (of whatever race) who live here, pay taxes and run this city for them .

And then I wake up!

ChinaOne
Guest
ChinaOne

Houses 5 percent cheapa than last week in my currency. Canadian dollars falling currency. My cousins will buy houses in Vancouver sooner. Houses 5 percent cheapa.

Anonymous
Guest
Anonymous

China posts early today. Chinaman has a point. Our government is selling us out by destroying our currency. Greta, we have 2 billion Indians and Chinese thinking a sale just happened. Raise Canadian rates now!!

Mr. X
Guest
Mr. X

The possibility of a China collapse seems more real today than it has ever before.

Despite what the media is saying ( as many of you already know and have said ) yesterdays correction was mostly because of a cash crunch in China, rather than the fed.

big trouble in little china
Guest
big trouble in little china

The price of pig snouts and chicken feat has plunged. That tells me that that there are more issues waiting to surface. Stay tuned.

Son of Ponzi
Guest
Son of Ponzi

I remember reading an article about 5 years ago that said:
China will get old before it get’s rich.

Billy Bob
Guest
Billy Bob

Where are the racism accusations due to the doubt about China?

motherland
Guest
motherland

Billy Bob Says:
“Never discount the innovation of the US.”

oh yeah they are quite “innovative” in electronic snooping in peoples bedrooms.

GAL
Guest
GAL

“Where are the racism accusations due to the doubt about China?”

poor white boy is a victim of false racist accusations even when there aren’t any.

Billy Bob
Guest
Billy Bob

GAL – who said I was white you racist!

Ok, Let's play that game
Guest
Ok, Let's play that game

This is a good opportunity to compare Canadians with Americans. The Canadian government is snooping just as much as the American. However, here you have no whistle blower, no outrage, no anger. Just a bunch of loyal subjects who willingly obey their betters.

The fact that the spy scandal is being exposed in the USA and that people are upset doesn’t tell us what’s wrong with America, it tells us what’s right with America and wrong with the rest of the western world.

motherland Says:
June 21st, 2013 at 9:16 am 15
oh yeah they are quite “innovative” in electronic snooping in peoples bedrooms.

gokou3
Guest
gokou3

Somewhat related to #6 about rising interest rate, I was on the phone with a TD CSR last night. I am offered a few products: overdraft protection, increase in my credit card limit, a line of credit, and a car loan.

I am mildly interested in another line of credit, so I asked for details. I am told the interest rate is P+5%. I told her outright that it’s too expensive, as I have P+3% with another bank. Mind you, they are unsecured line because i am only a renting second-class citizen.

However, I wonder if anyone can get *unsecured* line of credit at a lower rate than P+3? Which bank?

motherland
Guest
motherland

at least waterboarding and kangaroo courts are not included in canadian version of democracy.

bon jovi
Guest
bon jovi

Scotia is calling me at least once a week asking me to increase credit card limit. and i told them not every time but apperantly they do not take a no as an anwser.

Moneybags
Guest
Moneybags

I have an unsecured line of credit with TD at P+2.75.

George Soros
Guest
George Soros

I don’t want to throw water on the higer interest rate talk as longer term rates are moving up.

That said, the next move for the BOC might be a rate cut. The guy who took over for Carney is all about exports and he knows lower rates will make our dollar weaker. A rate cut would actually make Canada more competitve. I want higher rates as much as the next guy but don’t bet on it until the Canadian and US economy improve. This blip up might be a head fake. The next few weeks will tell the tale.

Anonymous
Guest
Anonymous

Canadian dollar can only get weaker compared to US dollar, as there will be very little growth in Canada for the next few years, except banking.

Ok, let's play that game
Guest
Ok, let's play that game

Maher Arar. How soon we forget. It’s sad that Canadians lack the self confidence to look at their own faults. This is the first step to improving them.

motherland Says:
June 21st, 2013 at 9:52 am 20
at least waterboarding and kangaroo courts are not included in canadian version of democracy.

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