FFFA! Debt! Toilets! Interns! Renting! Growth!

It’s that time of the week again!

Friday Free-for-all Time!

Let’s do our regular end of the week news roundup and open topic discussion for the weekend.

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

Household debt hits new record
Return to ‘natural economic growth’
Poloz has best drugs?
Rent by the hour
Flipping not as easy as on TV
Blackberry laying off employees
Learn how to get 100 hours of free work
Lots of new townhouses in East Van

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

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Don Lapre
Member
Don Lapre

FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!FIRST!!!

ILoveCharts
Guest
ILoveCharts

I’ve been cooking spaghetti all night and I’m still confused.

If you fill the crater within the pot of spaghetti sauce with liquidity (more spaghetti sauce,) then when you reach the other side, won’t you still be in more spaghetti sauce? How would you get out of your rowboat? Even when you row to the very edge of the pot you will be surrounded by vertical stainless steel walls. The only real solution is to get on a meatball but he seemed to suggest that we were trying to avoid the meatballs.

I’m basing some fairly important financial decisions on this so any advice would be appreciated.

George
Guest
George
Regarding the comments some made on the last thread about crime/poverty and the skytrain: I do not believe skytrain spreads crime. I have a long memory of the Lower Mainland having lived here all my life and having heard stories from my parents and grandparents. What areas along the skytrain have crime? Surrey Central. New Westminster Station. Columbia Station. Broadway and Commercial. Downtown stations. All of those areas had crime LONG BEFORE the skytrain was ever built. Whalley was actually way worse before the skytrain came there. Columbia Street in New West had beer parlours and drunks and druggies and was always a place to watch your back. East Van was way worse in the 70s. The skytrain has helped gentrify East Van and Surrey and probably made those areas safer. Have we seen big increases in crime along the… Read more »
Confusions
Guest
Confusions

Very well written @ George. I wish more people could present thoughtful arguments like yours.

jesse
Member

Pause button hit on 2 community plans
http://www.vancourier.com/developing-story-city-of-vancouver-staff-recommend-delays-for-two-community-plans-1.627670

I like the creative use of the term “single family home”.

Confusions
Guest
Confusions
But to get back to the sphagetti sauce. Filling the crater with more sphagetti sauce is what Greenspan did in 1987 and it worked out for him famously. As a result all these central bankers adopted this as standard practice in response to bubbles. So when dot.com turned into a bomb and exploded, we (us central bankers tried to so the same), but now the game has changed. Now the politicians have become savvy to the fact that this river of liquidity if directed a certain way via regulation can win votes and supporters. And lo and behold, instead of the capital infusion going to the next inventor or small business, it all went to the retail investor. Theory being that ultimately the retail investor will buy property and cars which will foster the organic growth. But in the meantime… Read more »
patriotz
Member

I know it’s not a RE story but it’s so “Vancouver” I couldn’t resist 🙂

http://www.theglobeandmail.com/news/news-video/video-ctv-bc-who-gets-the-ring/article14431452/

Bailing in BC
Member

Yesterdays Foreclosure numbers for the 17-19 of September were 55.

I have been collecting foreclosure numbers somewhat sporadically since April. To put this number in context the average is 28 and 56 is the record.

The numbers yesterday are relevant to me for two reasons 1.) It’s the second highest I’ve recorded 2.) It’s the first time since I started skimming the names of those involved in the cases that I stumbled upon someone I know personally 🙁

rp1
Guest
rp1

“The only reason currencies have not lost more value is because all the other major currencies are going through the same cycle.”

Currencies have lost a ton of value as measured by asset prices. The cost of consumer goods falls as productivity increases, so without including asset prices you get a distorted view of inflation. The purchasing power of a dollar when it comes to buying houses, stocks, bonds, is at a generational low. This is hardly surprising in light of demographics.

It is a terrible time to grow your nest egg safely. On the bright side, it is a wonderful time for venture capitalism and entrepreneurship, because there is more money floating around than society knows what to do with.

Bailing in BC
Member

Patriotz

That’s class, that is.

Thanks for sharing!

patriotz
Member

@9: “The cost of consumer goods falls as productivity increases, so without including asset prices you get a distorted view of inflation. ”

The real point is that there is no such thing as “inflation” per se. There is consumer price inflation, asset price inflation, and wage inflation (or deflation) all of which are different things. A gold bug would say “inflation” is simply a rise in the price of gold.

You can’t roll them into a single number in any meaningful way. Consumer price inflation with wage deflation is a lot different than consumer price deflation with wage inflation, for example.

Bailing in BC
Member

ILoveCharts

Is the spaghetti wholewheat?

Aggregator
Guest
Aggregator

MLS Phantom Listings Distorting House Prices http://www.huffingtonpost.ca/2013/09/20/mls-phantom-listings-house-prices_n_3957237.html

“In a later interview, CREA chief economist Gregory Klump could not say if CREA’s data included double-counted houses. But he estimated the phantom listings account for no more than 0.8 per cent of the housing supply available.”

Ahhh, so when it’s time for CREA to put their ass on the line and say something ‘on record’ that can or will be used against them in the court of law or tribunal, they decline and run like rats.

emmi
Guest
emmi

Patriotz at 11, worse yet, if you treat cost-push inflation as if it were inflation due to excess money printing you will decimate industries and employment that rely on discretionary spending. I hate it when people throw the work inflation around without specifying which kind. You can be assured that they are just trying to manipulate emotions, not propose workable policy.

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

hey guys, what’s the latest bugaboo that you’re hoping will cause the vancouver real estate collapse? it keeps changing i have a hard time keeping up.

is it burrowing demand from the future? is that what will surely cause the real estate market to crash?

here is my list of past catalysts that were supposed to cause the market to crash. i’m sure there are many more please feel free to add or change the list.

china collapse, too much debt, global economy collapse, rates rates rates, cmhc rule changes, market falling under it’s own weight

space889
Member
space889

@BPOM – so basically you admit that you hate Chinese for the sake of hating them…as you can’t even articulate an answer to a simple question about behavioral motivation and reward.

YVR
Guest
YVR
Vancouver City Hall who claim to be trying to make housing in Vancouver more affordable appear to be doing the opposite. Or at least making housing less desirable for 99% of the people who would not want most of these things in their house. The City of Vancouver is planning a new building bylaw that, for the first time in Canada, will require all new homes to be adaptable for seniors and people with disabilities. Among the changes the city wants to make: • Widening hallways to 900 millimetres, or 35.4 inches. • Widening doorways to 800 millimetres, or 31.5 inches. • Widening stairways to 915 millimetres, or 36 inches, to allow for mechanical lifts. • Two peep holes in front doors, one at wheelchair height. • Lever handles on all plumbing fixtures. • Lever handles on all doors. •… Read more »
YVR
Guest
YVR
HAM Solo
Guest
HAM Solo

New BC Foreclosure Cases Filed Sep 18-20

Vancouver: 13
Kelowna: 3
Victoria: 3
Prince George: 2
Nanaimo: 2
Kamloops:1
Other: 3

“Countrywide Cup” Foreclosure Lenders League Table

CIBC: 7
TD: 4
First National: 2
Northern Savings CU: 2
Paradigm Quest:2
Royal Bank: 1
BMO: 1
Scotia: 1
Other: 6

Bull! Bull! Bull!
Guest
Bull! Bull! Bull!
Simon
Guest
Simon

Vancouver’s Record $39 Million Sale to Royal Signals Peak.

http://www.bloomberg.com/news/2013-09-20/vancouver-s-record-39-million-sale-to-royal-signals-peak.html

I’m sure Softy, Bull!Bull!Bull! et. al have already seen this article while perusing Bloomberg for information on their investments. Ha!

Choice Quote:

The strong housing data is a “dead cat bounce,” said Sadiq Adatia, chief investment officer of Sun Life Global Investments Inc., who manages about C$6.4 billion. “As real estate values drop, and the debt levels continue to be where it’s at and you have the push on the employment side, consumers are going to get worried — you get a downward spiral with that.”

Pdub
Guest
Pdub

Speaking of inflation, none of that in BC. We remain in deflation (I think that is now 4 of the last 5 months have been negative CPI). Housing replacement costs are negative this month too.

http://www.statcan.gc.ca/daily-quotidien/130920/dq130920a-eng.htm?HPA

patriotz
Member

@17: “Some of these things might make sense but requiring a bathroom on the lowest floor of every house?”

I think that’s the most moot requirement of the lot. Don’t you think every new house built in Vancouver today has at least one bathroom on each floor?

taylor192
Member

@#2 George

It doesn’t matter what you believe, it matters if you have stats to back it up. Stats show crime is more prevalent with density, and mass transit encourages density.

Best place on meth
Member
Best place on meth

” Even when you row to the very edge of the pot you will be surrounded by vertical stainless steel walls.”

This is an excellent point.

So what if you’re nimble enough to scale the walls of the pot and get to the top?

Then you climb down the other side and get fried on the burner.

I don’t think the governor of the Bank of Canada has completely thought his theory through.

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