Friday Free-for-all!

It’s the end of another glorious work-week and you know what that means here on VCI?

It’s Friday Free-for-all time!

This is our standard end of the week news round up and open topic discussion thread for the weekend, here are a few recent links to kick off the chat:

another rate cut?
different here
frustration over empty luxury
shield against mortgage meltdown?
developers aim for senior market

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

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Shut It Down Already
Guest
Shut It Down Already

How long until you all start bitching about the weather again? I can’t take the silence any longer…

Shlomo
Guest
Shlomo

The weather is so good, it’s hard to spend time indoors whining about the bubble.

You probably heard that Microsoft laid off 7800 people globally. Some people in Vancouver were affected. A few of them were around 50 with hefty mortgages owing on their places. You know how hard it is to get re-hired in tech once you’re over the age of 40, it’s insane. The future isn’t looking good for them.

Polozi Scheme
Guest
Polozi Scheme
Sounds a lot like the Van RE Casino http://www.theglobeandmail.com/news/world/chinas-market-crash-signals-crisis-of-faith-in-authoritarian-system/article25408744/?service=mobile China’s trading amateurs often had little idea what they were doing. One study found that among the most recent investors, roughly two-thirds were high-school dropouts, and fully 6 per cent were illiterate. They were beckoned into the market by a barrage of encouragement in state media and supported national policies that deliberately loosened the flow of money. It was a terrific success. Retirees crowded brokerages that set up computers for walk-in trading, and soon Chinese traders – 90 million – outnumbered members of the Communist party. One study found those investors were the most active on Earth, flipping stocks at a frenzied pace, convinced they could not lose. Websites cropped up to lend money for stock buying, and past failures were forgotten – prominent economist Wu Jinglian warned in 2001 that… Read more »
realist
Member
realist

from CNBC via Yahoo Finance:

Chinese selling homes to cover stock losses: local media

http://finance.yahoo.com/news/chinese-selling-homes-cover-stock-073727009.html

fanaticallybroke
Guest
fanaticallybroke

My biggest fear is that idiot Poloz cutting rates again. Result = another kick down to the CAD allowing money launderers even better rates on their dough, and a final boost to the over-stretched local borrowers.

Please God give Poloz half a brain.

joe
Guest
joe

@ Polozi Scheme

They were beckoned into the market by a barrage of encouragement in state media and supported national policies that deliberately loosened the flow of money. It was a terrific success.

A terrific success…until it’s not….

w
Guest
w

China’s rich seek shelter from stock market storm in foreign property

http://news.yahoo.com/chinas-rich-seek-shelter-stock-market-storm-foreign-102247908–sector.html

History
Guest
History

Taking shelter in foreign real estate is smart. There is never any downside. RE is precious beyond words. Having trouble with mortgage? Even if you are broke the government will give you welfare to keep you in your house. Not true for any other asset class.

Softy
Guest
Softy

“Even if you are broke the government will give you welfare to keep you in your house”

That’s true. Owner occupied real estate in not counted in the calculation for welfare eligibility in BC.

southseacompany
Member
southseacompany
“Canada’s surge in condo construction shows side effect of low rates”, Financial Post http://business.financialpost.com/personal-finance/mortgages-real-estate/canadas-surge-in-condo-construction-shows-side-effect-of-low-rates “Canada’s fastest pace of multiple-unit projects in almost three years led a surprise gain in housing starts for June, another sign of what the central bank dubs a side effect of cutting interest rates in a time of record consumer debt.” “Poloz may lower his benchmark rate again next week to 0.5 per cent after recent indicators showed unexpected declines in economic output and non-energy exports. ” ““The momentum in the housing market through the spring and into the summer is undeniable,” said David Tulk, chief Canada macro strategist at Toronto-Dominion Bank’s TD Securities unit. “While the issue of household leverage remains a concern, it is secondary to growth fears and the very real risk of a technical recession in the first half of 2015.”” “Poloz… Read more »
southseacompany
Member
southseacompany

“‘Fed’s Evans wants no U.S. interest-rate hikes until mid-2016”, Reuters

http://www.reuters.com/article/2015/07/09/us-usa-fed-evans-idUSKCN0PJ2EY20150709

“A top Federal Reserve policymaker known for his dovish policy views made the case Thursday for waiting until the middle of next year to raise U.S. interest rates, citing global risks and a domestic economy that still needs plenty of support.”

“Some, like San Francisco Fed President John Williams, believe that waiting too long will only mean that when the Fed does begin the process it will need to boost interest rates sharply to keep the economy from overheating.”

patriotz
Member

@9:

Try paying your mortgage on this:

http://www.eia.gov.bc.ca/mhr/ia.htm

doc
Guest
doc

@2
Microsoft engineers will bounce back quickly – good engineers are hard to find, even if they are >40.

Your opinion on this is characteristic of the lack of “common sense” that is exhibited here daily. Even in the face of irrefutable evidence, there continues to be a single mind set “group think” that does not believe that the typical “worker” *will* be priced out of the Vancouver market (if not already there).

It is in the .gov best interest to keep the status quo, and it will mean reducing interest rates at the earliest possible sight of a recession or even market correction (we are due), thus devaluing the currency and inflating RE prices (or maintaining)

joe
Guest
joe

First the Twitter lady…now we make the New York Post…Christy, I know that chair is comfortable but see that podium over there?
…it’s waiting for you…

Corrupt in Canada
Guest
Corrupt in Canada

So when the US bailed out the too big to fail banks after the financial crisis they were just a responsible government fending off economic collapse.

But when the Locusts regime try anything they are an authoritative dictatorship manipulating the markets.

Also all those sophisticated investors in the states somehow managed to create and explode a bubble.

But when these Locusts illiterates try to invest its a wild casino.

Gotcha.

hoy-poloz
Guest
hoy-poloz

https://ca.news.yahoo.com/china-stock-market-crisis-could-023021587.html

The best thing we could do is vote NDP.

These wealthy ex-communists do not like socialist governments who will ask them to contribute. Ever hear of Chinese investment in Sweden?

they like free wheeling, free for all countries which thanks to Harper and Clark we have become. Places where the banks, lawyers, realtors all bend over back-wards to help you launder your money and buy houses ahead of the locals and never bother you with demands for taxes.

crikey
Guest
crikey

#5 said ” My biggest fear is that idiot Poloz cutting rates again.”
Biggest fear, really?
Sure, it is incredibly irresponsible and would mean things would get worse, but at least it would be comforting to see that there is one less trick left for him to call on. There’s only so far that interest rates can fall.

Best place on meth
Member
Best place on meth

@15

If you can’t understand the difference between bailing out banks and not allowing investors to sell their stocks then you shouldn’t be commenting here with the adults.

Do you understand me, locust?

Corrupt in Canada
Guest
Corrupt in Canada

LOLOLOL. Going right into personal attacks instead of having a real discussion, very adult of you.
For the record, I AM NOT CHINESE, actually aren’t you Chinese?
But I for one welcome our new locust overlord (that’s a joke haha)

Best place on meth
Member
Best place on meth

It’s not a personal attack to call you out on your incredible stupidity.

And who else but a Chinese would defend that god awful shithole?

Well, maybe a laowai realtor or one of our traitorous politicians.

realist
Member
realist

@ 16 crikey “There’s only so far that interest rates can fall.”

I can understand why you might think that, but it is not true! Of more significance economically than the nominal rate of interest is the real rate of interest (nominal minus the rate of inflation; for econo-nerds, see the Fisher equation). True interest rates are in some cases already negative, and there is no barrier to their becoming more so.

realist
Member
realist

@ 16 crikey …continued

It doesn’t end with negative interest rates. Then there is “Helicopter money”. I’ll defer to Mr Ben Bernanke, ex-Chair of the Federal Reserve Bank, on that one! Shall we say, not-so-funny-money?

http://www.federalreserve.gov/boarddocs/Speeches/2002/20021121/default.htm

Brian Ripley
Guest
Brian Ripley

The bulls will love this chart: http://www.chpc.biz/bull-horse-mountain.html#Double

At the current rate of increase in average Vancouver SFD prices, another doubling of price since the April 2008 crash will occur in March 2019

But if you look at my 6 City Chart, you can see that real estate sales across Canada have just ticked above the last historic sales high in 2007-2008

It looks like an Eiffel Tower finish to me.

franko
Member
Active Member
franko

@15
Gambling is an unfortunate characteristic shared by all ethnic groups.
What makes it unique for the locusts is that it is so deeply engrained in their culture of superstitious nonsense.
All that feng shui crap, lucky numbers and colours defies any sense of common sense and logic. Not to mention aphrodisiacs like bear parts and rhino horns that are fueling the extinction of many species.
Too bad the ground up products of those unfortunate creatures couldn’t be laced with a dose of arsenic.

realist
Member
realist

@ 19 Best place on meth: “traitorous politicians”

We have no other kind. The journey has been astonishing. Who could think that nice charitable Christian-types promoting immigration to share Canada’s bounty, spiced with a little Tommy Douglas socialism, understandable repugnance to the horrors of World War 2 leading to social engineering e.g. multiculturalism, all aligning with Pierre Trudeau’s desire to disable English Canada, then the politicians (especially the Liberal Party) seeing the potential of the ethnic vote, meanwhile the corporations have never taken their eyes off the essentials of RE development, i.e. every body needs a bed to sleep in; more bodies=more profit, latterly coupled to the TFW program to boost profits & get more bodies. Crusty did not come out of thin air!

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