FFFA! Farewell Flaherty.

It’s the end of another work week, and that means it’s time for another Friday Free-for-all post!

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

Rest in Peace Flaherty
Tal defends canada from bears
Clark not paid to promote company
Ranks of homeless seniors grow
Market faces spring test
The kids still want to buy
265 sq feet oughta do it
Whats happening on the coast?

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

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Bo Xilai
Member
Bo Xilai
I don’t mean to speak ill of the (recently) deceased, but there’s a lot of revisionist bullshit about “Flaherty’s legacy” going on in the media… 1. He’s the one who was so concerned about the housing bubble… Bullshit. He’s the one who introduced the 0% down, 40 year amortization CMHC insured mortgage. He just backtracked after that, realizing it was a stupid move, but couldn’t admit it. 2. He was “fiscally” prudent. BS. Flaherty was responsible for the biggest deficit in Canadian history and added more than 170 billion to the national debt. Call him lots of things, but fiscally prudent ain’t one of them. 3. He was a wise finance minister. BS. He lowered the GST from 7% to 5% over two years starting in 2006. The Canadian economy was doing well and didn’t need this type of stimulative… Read more »
T
Guest
T

4. Replacing income trusts with TFSAs was the best thing he did during his tenure. Puts everyone on equal ground in investing terms. Also gets rid of the inheritance tax loophole.

Boombust
Guest
Boombust

You’re absolutely right, Bo Xilai; he changed a LOT of people’s lives in a very negative way.

So, poo on those CON spin doctors.

However, 64? Wow. It just proves that “Easy Street” can be very “elusive” for most people.

T
Guest
T

5. Mark Carney didn’t really do much on the surface. Housing wise, he only affected it through interest rates. It was mostly 1 and 2 that caused the housing situation.

Carney was in charge of the bank of Canada. Everything non interest rate related he does isn’t disclosed so us outsiders can’t really judge.

patriotz
Member

@2: ” Replacing income trusts with TFSAs was the best thing he did during his tenure. Puts everyone on equal ground in investing terms.”

I like the TSFA, but it’s not a “replacement” for income trusts but an account to put any kind of investment in. Also income trusts are still very much around and I own them. What’s changed is that they now have to pay corporate income tax, which a shareholder in a non-registered account (e.g. me) gets back in the DTC anyway.

“Also gets rid of the inheritance tax loophole.”

Don’t know what you mean since Canada has no inheritance tax nor did it under prior governments.

would-be buyer
Guest
would-be buyer
Johnny-boy
Guest
Johnny-boy

I forgot to mention that yesterday of the three SFH that sold in West Van from Park Royal to The Sea to Sky…IMVHO (inserted for those who want DNA evidence before they believe it)..all 3 were bought by HAM buyers.

These guys have slowed down but they have not stopped.

The are lots of ways to stop this property hoarding (China wisely bans it not just by outsiders, but even by locals now) but we never will.

nufio
Guest
nufio

with 70% ownership (or anything above 50) and majority of the populations assets tied to real estate dont expect any government to do anything to pop the bubble. politicians have ZERO incentive to look at long term benefits for society.
If rates have to stay low forever it will. But eventually the bubble will deflate like in japan.
If someone knows of any financial instrument that is short real estate directly (not shorting bank stocks) I would really appreciate that information.

Simon
Guest
Simon

@ nufio

If you think that the Bank of Canada will keep interest rates low forever in order to protect homeowners then the most obvious way to profit is by shorting the Canadian dollar.

King bob
Guest
King bob

Nufio, short REITs.

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

SUCCESS admits mistake in posting Chinese-only signs

http://blogs.vancouversun.com/2014/03/18/success-apologizes-for-chinese-only-signs/

i think it would be easier if we all followed Son Of Ponzi’s example and learned manderin. that’s the canadian thing to do

space889
Member
space889

@Johnny-boy – Canada has something call the Constitution and Charter of Rights, I’m sure any plans to ban/limit house ownership will likely run into a charter challenge and likely ruled unconstitutional.

Also, any such limits are easy to get around.

@Simon – Japan had pretty much 0% interest rate for close to 2 decades now and anyone who shorted JGB or Yen got slaughtered. So no, lower interest rate doesn’t guarantee currency will fall. But you are welcome to try, or you can actually read up on some actual academic and emperical research on FX trading before spouting your mouth off about things you think you are expert in but aren’t. The true pros will tell you there is not certain thing/trade in investing world, only favorable probabilities.

space889
Member
space889

Well thsi will help preventing those bad bad Asians from buying in Vancouver and help to drop demand and prices:

city staff recommends no more tree cutting allowed on private property:

http://www.vancouversun.com/technology/Vancouver+looks+unwarranted+tree+removals/9726431/story.html

Talk about freedom…you can’t even do what you want on your own private property with regard to a tree!!! Don’t sound very free to me….

Also I guess 100% tree canopy will be even better cuz then we would be all green all the time?? People will just see a sea of green tree tops with a few condo towers peeking out here and there when they fly over Vancouver?? That’s the goal to be the greeniest city in the world???

Simon
Guest
Simon
@ space889 You are right. I am not a professional FX trader. However, I have yet to find any academic or empirical evidence that falling interest rates are correlated with rising currency values. Perhaps you could enlighten me further. With regard to your Japanese example – it would seem that the Yen has fallen dramatically against the USD over the past two years. I am not sure that making over 20% on your money should be considered a “slaughter”. Again, I am not an expert. Perhaps I am interpreting the data incorrectly. I know you would never “spout your mouth off about things you think you are an expert in but aren’t”. Would you care to enlighten me on the USD/JPY movement? Of course, if the point of your post was “there are no certainties in the investing world”, I… Read more »
mac
Member
mac

Heard herd,

Question for you. How is it possible you have so many friends?

Joe Mainlander
Guest
Joe Mainlander

@#1

To be fair, it is important to point out that home prices started rising far before Flaherty or the Cons were in power. The CMHC started relaxing their standards in 1999 when they lowered the minimum DP to 5%, and then continually lowered standards through the early 00’s during both the Liberal and Conservative regime. Most of Vancouver’s price gains happened between 2003 – 2008. Flaherty became FM in 2006, and Carney was appointed in 2008. They came along after the fire was started. Others started it.

Son of Ponzi
Guest
Son of Ponzi

#8
If someone knows of any financial instrument that is short real estate directly (not shorting bank stocks) I would really appreciate that information.
————-
Your rental agreement with your landlord.

UBC in crisis mode
Guest
UBC in crisis mode

Van West weekend open houses (nice weather!):

Total: 431

> $1.5 million, 121 (last weekend 113)
> $3.0 million, 40 (last weekend 39)

Son of Ponzi
Guest
Son of Ponzi

# 18
431 open houses.
Wait for tomorrow’s numbers.
Probably more than over 500.
Could be a record.

Harry Wang
Guest
Harry Wang

Panic after Chinese city declares tap water toxic

Residents of provincial capital in west China flock to supermarkets to stock up on mineral water after government admits water supply contaminated by potentially deadly toxic chemical

http://www.telegraph.co.uk/news/worldnews/asia/china/10760027/Panic-after-Chinese-city-declares-tap-water-toxic.html

Royce McCutcheon
Guest
Royce McCutcheon

@16: “Most of Vancouver’s price gains happened between 2003 – 2008. Flaherty became FM in 2006, and Carney was appointed in 2008. They came along after the fire was started. Others started it.”

I completely agree that this issue predates our current government and the quoted statement is valid. But I think it downplays the current government’s 1) introduction of the most egregiously relaxed rules related to mortgage lending and 2) role in a ~35% INCREASE in nominal pricing here AFTER the arrival of the global financial crisis. This deeply cynical maneuvering played a large role in the move to a majority government (“sound economic leadership in tough times”) and set this country back 5 years (and counting) in terms of sorting out this mess and moving forward.

The Conservative government is the primary author of the Canadian housing bubble.

RFM
Guest
RFM
Open houses rarely sell houses. Few sellers understand that an open house usually does not sell that particular property. Open houses benefit agents. Real estate agents pick up buyers at open houses. It’s a tradition in the real estate industry. Hold an open house. Meet some good buyers. Take them out to look at homes. Make a sale. New real estate agents are the ones who usually hold open houses. Seasoned, professional agents are too busy listing and selling properties to hold open houses. Open houses are a security risk. If a stranger knocked on your door and asked to come into your home would you let him in? Of course not! Yet at open houses, real estate agents open the doors of your home to strangers without knowing anything about them or their background. It’s impossible to keep an… Read more »
UBC in crisis mode
Guest
UBC in crisis mode

There are 701 properties on Van West listed for > $1.5 million, with 121 open houses, that’s more than 17%. Very high?

Many Franks
Member
Active Member

A Yaffe article that didn’t make me want to cry. Nothing new, but good to see her calling on local politicians to pay attention.

Barbara Yaffe: Absence of data on Vancouver real estate market ‘mind boggling’

C.Junta
Guest
C.Junta

#2 @T

“Mark Carney didn’t really do much on the surface. Housing wise, he only affected it through interest rates.”

“Only”? That was a lot imo. Also, he was one of those who approved the Great Canadian Bank Bailout in 2008-2009.

F and C clearly saw the signs of the bubble but did close to nothing to stop it.

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