Housing Collapse: banks ok, consumers vulnerable

The head of the OSFI is warning about the dangers of a Canadian housing market correction.

Speaking on Monday Julie Dickson said that the OSFI would be preparing new guidelines for the mortgage industry.

“Consumers must be considered here because, while banks may be able to withstand shocks, consumers may not,” said Julie Dickson, the head of the Office of the Superintendent of Financial Institutions. “Banks have to set aside reserves for unexpected losses and are typically far better situated to deal with shocks than consumers — who may be highly indebted and therefore particularly vulnerable to significant increases in interest rates or unemployment.”

For more details read the full article over at the Financial Post.

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Guy Smiley
Member
Guy Smiley

Of course the banks would be fine. How about the CMHC (and the taxpayer)?

NOM NOM NOM
Guest
NOM NOM NOM

God, I wish I could pay $1,000,000- $2,000,000 dollars so that I earned the privilege of being able to have tenants.

http://www.break.com/video/angry-french-tenant-takes-revenge-landlord-with-sledgehammer-2544826

VanRant
Member
VanRant

OSFI on monday and IMF today… more screws tightening on the housing market.

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

THE END IS NEAR!

ILoveCharts
Guest
ILoveCharts

Damn, we need to wait until March just see the draft… this is not the fast action I was hoping for.

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

the government is taking these steps to prevent a crash. so why do you bears cheer them on?

they are ensuring that speculators and home owners will never be punished.

Frank
Guest
Frank

Well as long as the banisters are ok and paying up to $10 million for their top brass then we can sleep well
F$&( the rest if us!

RealityCheck
Guest
RealityCheck

Smoke and Mirrors!

Anyone without physical assets should be worried about this:

Dollar approaching 93 cents USD. Dropping like a rock against other world currencies. Indian rupee up almost 20% in 2 months….over a billion people there …

RealityCheck
Guest
RealityCheck

Soon, they will price our housing in USD dollars. Some on this blog will cheer this…totally naive!

RealityCheck
Guest
RealityCheck

And to those intellectually challenged people on this blog cheering flahertys cmhc announcement…

He will start by privatizing those loans that have at least 50% equity…not the more recent ones.

This will give him more room under the CMHC 600 billion cap.

Think things thru goddamnit!

mac
Member
mac

CBC’s Condo Game asks it all:

Is the average condo owner now a mere by-product of a fast-moving international money market? I say yes.

Diane Francis, “All this hot money swirling around the world looking for a place to land.”

It’s a high speed collision of consumer and corporate interests.

Everybody makes money, all the way up the line… poor Jonny Consumer in the end, gets what he’s given.

Why would anyone be surprised that the banks will be preserved and the taxpayer will each carry a bag of shit because of the CMHC and two bags of shit, if they also bought a condo.

Yunak
Guest
Yunak
jesse
Member

“All this hot money swirling around the world looking for a place to land”

So we have:
1) guy 1 has $1,000,000 in the bank, guy 2 has a house
2) guy 1 buys house from guy 2 for $1,000,000
3) buy 1 has a house, guy 2 has $1,000,000 in the bank

That swirling blob of money, a giant bowl of gazpacho soup. I don’t think it ever lands, and never did.

Son of Ponzi
Guest
Son of Ponzi

#13 who’s guy 1.
That’s the question.

Son of Ponzi
Guest
Son of Ponzi

Remember Chemical Ali or Baghdad Bob.
“there are no American infidels if Baghdad”.
While the Amercans were already helping the iraquis taking down Sadam’s statue.
Fast forward to 2013 Vancouver.
“There are no offshore investors buying RE in Vancouver” say the Data slaves.
Open your eyes, people.

RealityCheck
Guest
RealityCheck

Nice…. downvotes….

I know exactly how people on this blog think. Its very predictable.

I bet that most of the people here will die poor. Its not the things that go on around you…its the stuff in your head.

paulb
Member

New Listings 128
Price Changes 61
Sold Listings 98
TI:15222

http://www.paulboenisch.com

Son of Ponzi
Guest
Son of Ponzi

Cancelled/expired listings : 60

oneangryslav2
Guest
oneangryslav2

“I bet that most of the people here will die poor.”

What’s the difference–die poor or die rich–you’re still dead. Unless, of course, you’re a bible believing Christian. Then, it’s much better to die poor, no? Matthew 19:24.

Guy Smiley
Member
Guy Smiley

@RealityCheck

Check reality you crackhead:

Rupee vs CAD 10 yr

The indian rupee has a pretty obvious and consistent trend direction. But i understand that many bears suffer myopia when looking backwards.

Son of Ponzi
Guest
Son of Ponzi
YVR
Guest
YVR

RealityCheck: “Anyone without physical assets should be worried about this: Dollar approaching 93 cents USD.”

Those with Canadian houses should also be worried. You do understand your Surrey house is going down the same in USD terms as CAD cash don’t you? With leverage (a mortgage) that effect is magnified. A person who bought a house a few months ago with 5% down is wiped out in USD terms already. People with cash, stocks, bonds, etc can be diversified in multiple currencies and have made money.

Aggregator
Guest
Aggregator

I said it before and I'll say it again.. If you're not looking at prices in Hot Global Money terms, you'll never understand this market.

REBGV Detached in Select Currencies

Returns Since January 2008

+38.1%  REBGV Detached
+15.1%  China
+44.1%  Philippines
+68.1% Brazil
+111.5%  India
+267.0%  Iran

It's the exchange rate stupid!

YVR
Guest
YVR

@21 “HAM Deniers, The defense rests it’s case.”

LOL, the source is a real estate company. So if you are going to take a realtors word for it then why not take their advice and buy real estate now because prices will only go up from here.

RealityCheck
Guest
RealityCheck

Funny,

The war on this blog is between HAM believers and HAM deniers.

Son of Ponzi: don’t bother. The masses here seem to be brainwashed beyond help.

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