BC, Canada, debt, economy

Investors bet against Canada

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43 Comments

Why is everybody picking on us?

Investors are betting against our dollar, equities, even our bank stocks.

Markets also see further declines for the loonie, which was quoted buying 84 U.S. cents at 11:35 a.m. and has dropped 8.4% against its U.S. counterpart over the past year. Wagers against the currency outnumbered those for it — so-called net shorts — by 17,087 positions as of Jan. 6, the most since Dec. 5,  according to data from the Washington-based Commodity Futures Trading Commission.

For Merrill Lynch, the risk is the slowdown in the oilsands will seep into a housing market “already saddled with near-record levels of household leverage.”

Canada’s ratio of household debt to disposable income rose to a record 162.6% between July and September, according to data released last month. Benchmark interest rates of 1% have fanned a house-buying frenzy that sent 2014 sales up 6.7% in Toronto and 16% in Vancouver.

Read the full article in the Financial Post.

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The Pirate Bay

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Extremly Rich Vavouver Chinese Home Owner

Don’t worry Vancouver is an excemption because of its predominant Chinese Population who have money and will to support the market for indefinite period,if they are friendly to Great China.

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Chong

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Slagathor

….“Investors are so nervous that they are basically willing to lose money when they buy some government bonds…..

Been saying it for years… losses are the new gains!

…
Hello deflation, my old friend
I’ve come to cry with you again
Because a dollar softly creeping
Left its parity while I was sleeping
And the debt that was planted in my brain
Still remains
Within the sound of defalcation…

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Shut It Down Already

Patritotz, maybe the Swiss franc is a more inviting safe haven?

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Post 33 Kabloona

Its negative rates because they think other currencies are going to fall much more via QE.

Its all being concentrated in the hands of the few. Thats why commodities are falling. Middle class out of money. The rich have it all and they are storing it in RE and Bonds.

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Bull! Bull! Bull!

NCIX is opening a lot of stores too.

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Mortgageslave

Softy, damn your dense. I know u only have 13 weeks post secondary education so i forgive u, the last “7 or 8′ (as u put it) mortgage chances reversed the ones that helped inflate the market. (Ie 40 year amortization). This is another reversal all with the same goal. Get it? Probably not but we dont really expect u to. I reallly dont want to argue with u, more help u see the light. Its really sad that your so blind.

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patriotz

@33:

Investors are buying at negative rates to get bonds in safe haven currencies, which the CAD demonstrably isn’t.

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kabloona

Warning: Bond rates are going negative
By Matt Egan January 15, 2015: 3:50 PM ET

http://money.cnn.com/2015/01/15/investing/interest-rates-negative-switzerland-ecb/index.html

NEW YORK (CNNMoney)

“Investors are so nervous that they are basically willing to lose money when they buy some government bonds.

It’s part of the latest fad in finance that’s all the rage: “going negative.”

The yields on government bonds in Europe and Japan have dipped into the uncharted waters of negative territory. That means buyers of those bonds are essentially taking a loss just to hold onto those assets. They think their money is better off losing a few cents than putting it elsewhere.

“It’s basically a fee for fear,” said Nicholas Colas, chief market strategist at ConvergEx. “Fear of deflation, fear of volatility in other capital markets and general fear of the known.”

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paulb

New Listings 199
Price Changes 44
Sold Listings 97
TI:10978

http://www.paulboenisch.com

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CBC

@mortgagslave

ustermann contributes well thought out posts whether agreeable or not. You on the other hand try to emphasize how right you are despite a pathetic track record. Its almost like you are trying to convince yourself that you have future of the market figured out. Have you considered typing in all caps? your message might get through better

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Average Vancouver Homebuyer

@#18 Did someone say interest rates were coming down? Hey, honey, now we can buy that condo!

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Softy

“This will have the same effect as the other 7 or 8 mortgage tightening moves over the past five or so years”

You mean the ones that they reversed that had inflated the housing market? God your ignorant.

Well, you just have to laugh at Mortgageslave calling someone ignorant when the he can’t even read. Either he can’t read or he actually thinks that the mortgage tightening (yes, “tightening”) moves of the last five years have been reversed.

I await your apology, Mortgageslave.

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Mortgageslave

@softy

“This will have the same effect as the other 7 or 8 mortgage tightening moves over the past five or so years”

You mean the ones that they reversed that had inflated the housing market? God your ignorant.

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space889

@bullwhip29 – With our current monetary setup, not everyone can all go saving at the same time. Save and debt are different side of the same coin.

GDP = C + B + G + X

If one of the variables fall (ie saving) then GDP falls or someone else has to take up debt, and all countries can’t all run export surplus at the same time either.

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space889

@bullwhip29 – I guess you don’t shop at T&T if you think Weston will close them down. The whole reason they bought T&T is to access the Asian market which by and large don’t do much grocery shopping in Superstore, as well as getting access to their supply network. If they close down T&T and Osaka, they not only kill a very well run and profitable business, but also lose most of their Asian clients. Mostly would simply go simply go back to other Asian markets like HMart, For Real, China Rice World, or independent grocery markets.

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bullwhip29

@ #23

don’t think so this time around. cmhc et al are trying to exit the business as quietly and discretely as possible. the more risk the banks have to take on themselves, the less likely the joe averages of the world will be approved for a mortgage (due to far more stringent guidelines and/or increased costs)

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bullwhip29

@ #18/19 as much as the powers that be will try to spin this as being a bullish thing, that couldn’t be any further from the truth. honestly, i am sick of hearing about all this BS regarding low rates, overborrowing and what not. imho, what we’re witnessing right now is a realization that much of the world is on the verge of succumbing to a japanese style deflationary collapse. that is the reason rates will stay near zero for a lot longer. people from all walks of life have had 6-7 yrs (post financial crisis) to get their finances in order and perform so called personal stress tests, but have for the most part done either nothing about it or perhaps made the situation even worse. well folks, it is just about time for the tide to go out.… Read more »

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Softy

“regulators have made it more difficult to qualify for mortgages, again yesterday.”

This will have the same effect as the other 7 or 8 mortgage tightening moves over the past five or so years.

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Mortgageslave

Again this rise in housing in fueled by #1 – debt. That won’t continue. Guess what else won’t continue. Not sure how much more obvious it can be…

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tedeastside

Canada is falling apart, everything closing, mass layoffs left right and center
Oilsands seeing mass layoffs , canada’s only industry falling apart,

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Mortgageslave

@Softy – doesn’t matter in regards to Mortgages. If you read Turner last night, regulators have made it more difficult to qualify for mortgages, again yesterday. I understand what you’re trying to suggest but this is nearly the same as a rate increase. The taps are shut off.

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