Friday Free-for-all! Crazy market edition.

Well hello there!

Looky here, it’s the end of another week already and you probably already know what that means…

Friday Free-for-all time!

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

But first a note. Many news sites have moved to a subscription model which limits views of articles (hello Globe and Mail!). This is a bit of a downer for a news and link round-up feature since you might use up your monthly limited article views on articles that don’t interest you beyond their headline.

So with that in mind we’re switching most of our FFFA links to the original VCI comment that pointed them out.  This means you get the context with selected quotes or excerpts to decide if you want to follow the link to the original article and you can see who here originally pointed out the article, but it means you need to click an extra link to read the full story.

Does this change drive you crazy as an overbred purse dog or are you west-coast chill about it? As always your comments about this change are welcome.

OK! Now here are the links to kick off the chat:

Did you short Genworth at the right time?
There will be fewer hungry realtors this month
All about those rates?
Vancouver is the next… Calgary?!?
Economy shrinks
Over 55? Stop paying property tax sucker!
Who ya gonna blame for this crazy market?
What is the Difference between bulls and bears?
An orderly correction please.

So what are you seeing out there?

Post your news links, thoughts and anecdotes here and have an excellent long weekend filled with bunnies, eggs and chocolate!

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Enigma
Guest
Enigma

@space889: “…I mean tulip is a flower that dies after a few weeks or months…”

People were buying the bulbs, not cut flowers. The bulbs last a long time.

space889
Guest
space889

@southseacompany – Ok one thing I could never get with the tulip bubble is what happens after the people buy the tulip? Do they resell it or what? I mean tulip is a flower that dies after a few weeks or months, so what heck do people do with the damn flower that you spend several years of income on?? Resell it before it withers and dies? To who??

southseacompany
Member
southseacompany

I came across this Business Insider book review from back in 2000;

“When the Tulip Bubble Burst- TULIPOMANIA, The Story of the World’s Most Coveted Flower”
http://www.businessweek.com/2000/00_17/b3678084.htm

Interesting to note, when it came to the busting of the tulip bubble, there was no trigger, no rise in interest rates, no change in foreign buyers. it simply came to this;

“It began in Haarlem, at a routine bulb auction when, for the first time, the greater fool refused to show up and pay. Within days, the panic had spread across the country. Despite the efforts of traders to prop up demand, the market for tulips evaporated. Flowers that had commanded 5,000 guilders a few weeks before now fetched one-hundredth that amount.”

southseacompany
Member
southseacompany

“”Why low interest rates are hurting investors of all stripes”, Financial Post

http://business.financialpost.com/investing/why-low-interest-rates-are-hurting-investors-of-all-stripes

““When you combine ignorance and leverage, you get some pretty interesting results.” – Warren Buffett”

“There is a lot to be said for low interest rates: The majority of global equity markets have recovered and many are testing new highs; global bond markets have sent yields to new lows; and U.S. housing prices have bounced back nicely, while the Canadian housing market has made a fool of all the doomsayers by continuing to push to record highs.”

“The problem is that low interest rates leave investors feeling rather comfortable in doing things they normally would not do and they encourage excessive risk taking.”

Oracle
Guest
Oracle

You guys are correct. Our loonie is on its way to about 60 cents.

No way Harper will allow rising rates. For bond yields , expect Mortgage QE.

If Trudeau wins the election, no way he would raise rates either.

So having a low loonie HURTS homeowners as well because their monthly costs go up. Their food, imported goods, cars, etc. that is a shock that could destabilize housing in non HAM cities.

space889
Guest
space889

Looks like the Express Entry system is not filling its quota and lowering the score for entry….still going to hit the goal of 200K+ immigrants/year.

http://www.theglobeandmail.com/news/national/ottawas-new-express-entry-immigration-system-slow-off-the-mark/article23801745/

The Chinese are coming, the Chinese are coming!!!

VanRant
Member
VanRant

@ 49
Buy US dollar!!! China Challenges Dollar Hegemony With New Infrastructure Bank. The US will have to raise interest rate rapidly to keep the petro-dollar from collapsing. No matter what, interest rates are going up and good grief to those that are holding a million dollar mortgage.

http://www.forbes.com/sites/greatspeculations/2015/04/06/chinas-infrastructure-bank-challenges-dollars-world-hegemony/

kabloona
Member
kabloona

@49 – I’m guessing Polly might wait to see if the Fed raises the overnight rate in June; if they do I think he’ll just stand pat.

If not, I’m guessing he’ll cut another 1/4 point off our rates…

Just my $0.02…

Randy Randerson
Guest
Randy Randerson

http://www.theglobeandmail.com/report-on-business/economic-hit-spreads-beyond-oil-patch-bank-of-canada/article23804287/

BOC is coming out and saying Canada’s economy is going down the toilet because oil price has dropped to a record low, and the effect is spilling out into other parts of Canadian economy.

Well duh! It doesn’t take a genius to figure out that when a rigpig is out of a job, he’s not buying new trucks, condos, fancy groceries, vacations, booze, and etc. Our GDP is mostly propped up by FIRE and O&G, and barely a sliver of manufacturing. With O&G suffering, it’ll affect the FIRE sector, and so it spreads.

Looks like BOC is giving people a strong hint that they’ll likely drop rate again later this year. Time for me to buy some USD.

space889
Guest
space889

@southseacompany – Given that people are willing at pay $1K/month or more to live in Downtown Eastside MicroSuite, I’m guessing it’s news item more than infomercial. I don’t know why people would pay that much to live in the worst area of the city, with drug dealers and users right in front, in such tiny apartment that you can’t even have more than 3 guests over. Maybe there is just some cool factors or advantages I’m blind too.

southseacompany
Member
southseacompany

News item.. or info-mercial?:

“Vancouver’s tiny condos filling a bigger market niche”, Globe & Mail

http://www.theglobeandmail.com/life/home-and-garden/real-estate/vancouvers-micro-condos-living-small-in-the-big-city/article23804646/

patriotz
Member

@40:”Vancity said its outlook is meant to sound the alarm on an already expensive market becoming even more mind-boggling.”

Says the lender who brought us the “partner” mortgage some years back.

If Vancity thinks there’s a problem with the market being overvalued, why is it lending at current prices?

Loon
Guest
Loon

@: Tedeastside low church attendance

Religion and RE go hand in hand.

I was at church having an after service coffee and overheard one of the senior folks talking about selling his house, he said it sold in one day. I stepped in and quipped that his asking price was probably too low and he just laughed !

Being West Van the old guy is probably a multimillionaire now.

southseacompany
Member
southseacompany

“Boring no more: Poloz sends Canadian volatility to two-decade high”, Calgary Herald

http://calgaryherald.com/business/local-business/boring-no-more-poloz-sends-canadian-volatility-to-two-decade-high

“With an unexpected interest-rate cut and sometimes shifting takes on the economic outlook, Poloz has injected something rarely seen in Canadian markets: volatility.”

southseacompany
Member
southseacompany

“Has your home been fraudulently overpriced?”, Globe & Mail

http://www.theglobeandmail.com/globe-investor/personal-finance/mortgages/has-your-home-been-fraudulently-overpriced/article23776938/

“Indeed, there are all kinds of ways unethical home buyers and sellers dupe their way into a bigger mortgage or better selling price. Whether driven by greed, desperation or opportunity, fraudsters have been caught doing everything from inflating salaries on mortgage applications to posing as a legitimate property owner, taking out numerous mortgages and fleeing with the cash while the real owner is left picking up the pieces.”

“Yet there’s another real estate scam that tends to fly under the radar, but can still have serious ramifications: mortgage valuation fraud.”

“Also known as appraisal fraud, it’s used to artificially and deliberately raise a property’s value by having it appraised above its market value.”

southseacompany
Member
southseacompany

“The outlook for Canada’s housing market in a low-rate environment”, Globe & Mail, Carrick Talks Moneyvideo

http://www.theglobeandmail.com/report-on-business/video/video-carrick-talks-money-low-rates-high-hopes-for-housing/article23354663/

southseacompany
Member
southseacompany

“Genworth hikes mortgage insurance premium, matching CMHC move”, CBC News

http://www.cbc.ca/news/business/genworth-hikes-mortgage-insurance-premium-matching-cmhc-move-1.3022236

“On Monday, Genworth announced it would match the CMHC’s move on Friday to hike the premiums it charges to home buyers who borrow at least 90 per cent of the purchase price of a home. Starting June 1, those borrowers will pay about 15 per cent more for mortgage insurance.”

“For a first-time home buyer who’s putting five per cent down and applying for a $300,000 mortgage, the new rules would add $6 to their monthly mortgage payment — assuming it’s a 25-year mortgage at 2.79 per cent, “

southseacompany
Member
southseacompany

“Fresh warning bells sounded over Vancouver’s hot housing market”, BNN with video.

http://www.bnn.ca/News/2015/4/6/Fresh-warning-bells-sounded-over-Vancouvers-hot-housing-market.aspx

“An eye-popping projection by Vancouver City Savings Credit Union calls for the average detached price within Vancouver’s city limits to skyrocket to $4.4-million in 2030, if pricing trends of recent years continue unabated.”

“Real estate industry officials say the price projection is theoretical and fantastical, but Vancity said its outlook is meant to sound the alarm on an already expensive market becoming even more mind-boggling.”

Oracle
Guest
Oracle

Time to retire this blog…we know that foreign money is to blame for high prices. But no matter, I’d rather move to a British character city rather than stay in an Asian dominated one.

Maria
Guest
Maria
wowoow
Guest
wowoow

Filipino nanny awarded $50,000 after fleeing humiliation, sexual assault in Richmond hotel

Woman had been ‘domestic help’ for Hong Kong couple and their family while they set up a home in the city

http://www.richmond-news.com/news/filipino-nanny-awarded-50-000-after-fleeing-humiliation-sexual-assault-in-richmond-hotel-1.1812615

wowowo
Guest
wowowo
Corrupt in Canada
Guest
Corrupt in Canada

http://imgur.com/a/MUu0t?gallery

Happy Easter! Get out there and be somebody!

patriotz
Member
@20: “It was bought by the provincial government for $60 million in 1980 and used for the world fair Expo 86… $240 Million profit in 8 years. Not to mention the millions in revenue from taxation of condo owners.” How is that giving it away?” 1. The BC government spent years and far more than the purchase price turning the land, which had been railyards and industrial sites, into the site of Expo 86. Those site preparation costs would have been borne by a private developer if they had purchased the land directly from the CPR. The BC government got a wasteland. Concord got a ready to build site. 2. The BC government paid for the BC Place stadium and Skytrain which made the property more valuable. The original intention was to use the proceeds from the sale to help… Read more »
@26
Guest
@26

” …… the future of Vancouver. They don’t need space, require very little exercise, consume less food.”
Sure they have big appetite – http://tinyurl.com/q97algl