FFFA! OECD, BOC, SHORT, TRUMP, CORRECTION

Hey! It’s that time of the week again!  Friday Free-for-all time!

This is our regular end of the week news round up and open topic discussion thread for the weekend.

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

OECD Chief: Not a bubble, just extremely overvalued
Remember how we got here
Trump expected to announce project
BOC warns of ‘abrupt correction’ in Toronto condos
F You, I’m short your house
CMHC gets serious about risk management
Sobeys buys Canada Safeway
Laneway houses counted by statscan as detached
Sechelt developments ’03-07

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

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หี
7 years ago

hi!,I like your writing so so much! share we keep up a correspondence more about your article on AOL? I require an expert on this space to unravel my problem. May be that is you! Having a look ahead to look you.

sexy girls
7 years ago

I do not even know how I finished up here, however I thought this put up was great. I don’t know who you are but certainly you’re going to a famous blogger when you are not already. Cheers!

barb rennie
barb rennie
7 years ago

You are right by comparing Turner to Jehovah’s witness, but I think he is moe like Church of Scientology where the followers just have to believe. Ask Katie Holmes – no epidural during labor, its just medicine man messing with you. Ask Garth Turner – you don’t need to own a home, renting is much better.

JSON
JSON
7 years ago

#95 I dont’ know your situation, but moving within the province turned out to be a great move for me. If your income is portable it may make a lot of sense. I found the environment I wanted to live in and house prices that are literally a quarter of Vancouvers. I rented first so see if I could handle living in a smaller town and found to my suprise that I prefered it. YMMV.

Anonymous
Anonymous
7 years ago

Turner is peddling his investment services, why would he encourage clients to put their savings into mortgages instead of a trading account where he earns a cut?

You should hear his basic portfolio. Why people pay him to do what Couch potato does for free is beyond me. But hey all the power to the man, these sheep are going to lose their money one way or another, might as well be to him.

Reality Check
Reality Check
7 years ago

Also Chilled,

Garth states that take a 10 year mortgage. Why not take a 5 year and the money saved in less payments be directed towards bank equities with dividends. Than at year 5, apply that amount in the investment account to your mortgage principal…..etc., etc., etc..

Reality Check
Reality Check
7 years ago

Chilled:

Turner has many followers. Unfortunately, they’re not very smart. He probably has inadvertently ruined many lives. Some folks definitely sold a few years back in Toronto after thinking he is a “God”…

He is successful (at a huge cost to others) by using the art/science of Coercive Persuasion. I was a denier of this tactic a long time ago but boy was I wrong. Experience has taught me that it works. i don’t know if he purposely does it (like Cults) but the results show it.

He can say that pigs are going to fly tomorrow and his followers will REALLY believe it.

I expect some on this blog are his followers as well and they will angrily downvote my post.

BULL! BULL! BULL!
BULL! BULL! BULL!
7 years ago

sssshhhhhhhhhhh there is househornies in the house

Maybe in 2014?
Maybe in 2014?
7 years ago

@94 No stay in province……..just to the north. The two economies you speak of depends on one’s line of work (and to some extent one’s initiative), this will not impact me. Have lived there before and usually get one or two offers per year that are equivalent or a little more than my current salary or could do better striking out on my own (have to weigh the risk with having a young family). Don’t get me wrong, I would prefer to stay down in Vancouver as I really do love it here but I am not willing to be mortgage poor after working to be in the position I am today. To me spending $900k on a house that will likely needs another $100-200k barring no surprises in the next 5 years is too steep a price. Not sure… Read more »

chilled
chilled
7 years ago

Maybe in 2014? Says: June 16th, 2013 at 4:59 pm 88 Think I’m done. Went to a few open houses in East Van today. My god people are idiots, how can people who make significantly less money than my family be comfortable with such debt. I think I’m going to enjoy the summer and start thinking about relocating this fall. I’ll make the same or more but have half the size of mortgage. ++++++++++++++++ I’m assuming relocation means another Province? If not, become astutely aware that BC has two economies; the lower insaneland and everywhere else. Everywhere else is much tougher to earn a living. Secondly, if the Mrs is from BC and you transplant her, you will be in for a world of hurt when she returns with your kids, most of your assets and a requirement for you… Read more »

chilled
chilled
7 years ago

Too funny reading Turners post this evening. NOW the interest rate armageddon has been bumped to 2018/2019 with his disciples muttering the same “this is going to be a slaughterhouse” chants as they did 4 plus yrs ago. I’m starting to believe Turner and his merry band of minions have taken their que from the Jehovah’s Witness’ – continually and repeatedly predicting for an end that hasn’t come. Turner has built a sand castle out of concrete, returns to the beach daily, trying not to look perplexed, justifying why it hasn’t washed away. Eventually it will, hopefully taking Turner with it.

BULL! BULL! BULL!
BULL! BULL! BULL!
7 years ago

oh and to add to my post garth turner’s blog was very helpful to my decision

Anonymous
Anonymous
7 years ago

What happened to all the talk about Bond yields???….”At this rate, 5 year Bond Yields will be at 102.5% in 6 months”… hahaha —> You guys just don’t get it.

BULL! BULL! BULL!
BULL! BULL! BULL!
7 years ago

TO WHOM THIS RELATES TO, I’VE SOLD EVEN MY PRIMARY HOUSE AT PEAK AND RENT A 1.2 MILLION dollar HOUSE FOR 2900 with no tenants to enjoy my privacy, I GET MY LAWN MOWED BY THE LANDLORD AND ALL BROKEN APPLIANCES etc. it has 3 levels, 3300 sf 9 years old. I would never buy a house here unless economics r there so i’m very happy. 90 percent of my money is earning me money in safe stocks so why would I ever buy something that’s not earning me money and yes all my family and friends know I rent

Inefficient Market Hypothesis
Inefficient Market Hypothesis
7 years ago

As an indicator of Cannie Mae (CMHC) MBS trouble, these rates could rise out of proportion to ordinary Government bonds.

Canadian Bonds on 2013.06.14
Coupon Maturity Date Bid $ Yield %
Canada Housing Trust 3.600 06/15/2013 100.00 1.77
Canada Housing Trust 2.200 03/15/2014 100.81 1.10
Canada Housing Trust 2.750 06/15/2016 103.83 1.44
Canada Housing Trust 3.800 06/15/2021 110.55 2.34

source: http://www.financialpost.com/markets/data/bonds-canadian.html

On the other hand, as #88 suggests, waiting for market efficiency in house prices has diminishing returns compared to simply moving away from a debt infested shithole.

Maybe in 2014?
Maybe in 2014?
7 years ago

Think I’m done. Went to a few open houses in East Van today. My god people are idiots, how can people who make significantly less money than my family be comfortable with such debt. I think I’m going to enjoy the summer and start thinking about relocating this fall. I’ll make the same or more but have half the size of mortgage.

bull! bull! bull!
bull! bull! bull!
7 years ago

#86
100% correct but these househornies do not get it thru their thick skulls. WE r doing a public service telling them

crooked system
crooked system
7 years ago

watch foreclosures, find out who or what is really taking up the underwater mortgage once the people have left, and the house sits empty. Prices are not at the level they are at because of supply/demand equilibrium, they gunned so high because of speculation fantasies .. you are seeing Krooked Accounting – Krashing Assets. ‘KAKA’ in your oatmeal..

lowrateofinterest
lowrateofinterest
7 years ago

The reason that the BoC cannot keep rates low in the face of rising US interest rates is because that most of the mortgages that are originating in Canada are being securitized- they get bundled up and sold as bonds to investors. I have seen them for sale to individual investors on their website. They are deemed safe because they are backed by the taxpayer. But if house prices are falling at the same time the risk free rate in the US is rising (when interest rates rise) what will people buy? Canadian real estate bonds or US Treasuries that pay more? If they don’t raise interest rates in Canada they will be unable to fund new mortgages and prices will fall. Foreign demand, domestic demand, soft landing, price, price reduction, debt levels, etc… all side shows to the real… Read more »

ChinaOne
ChinaOne
7 years ago

I sorry for posting now my cousins can’t come if CRA knows. Can you cancel ma postings please. We keep it secret so more of my cousins can come. Thank you please.

Brit
7 years ago

sounds familiar

motorcycle's are my passion
motorcycle's are my passion
7 years ago

FeelinGoodFreuden

both a credit card and debit card …loaded by the Government down at the welfare office, used to buy yummy at Soon-To-Be-Common druggie dispensing machines. The one side is debit, the reverse is credit, this way goo/motorcycle gang can measure the quota vs the over-quota

FrankensteinFreuden
FrankensteinFreuden
7 years ago

FrackinFreuden

a special credit card for Oil workers, gives a 1% off the lowest interest rates, because the wages are the highest in the work world, and the last pillar standing in the Sacred Commodity Economy…. These workers are like Gods!!!

FrankensteinFreuden
FrankensteinFreuden
7 years ago

we need more than SmallenFreuden card from Visa

FlipperFreuden.. buys another 30 days from the Repo man

RefiFreuden… Refinance yo house with RefiFreuden, and use the proceeds for vacations in ‘exotic’ locations, like Hawaii and Mexico..

ForecloseFreuden… A card that you get on Foreclosure to be used for legal services in the future.