Friday Free-for-all!

It’s that time of the week again…

Friday free-for-all time!

This is our standard issue 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:

RBC downplays crash threat
An imbalance?
Thoughts from Ireland
Economists show concern
Sunshine coast stats

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

Brian Chen, it’s called the Smith Manoeuvre

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[…] –money laundering in RE –Poloz, king of the economy –Ready for another rate cut? –Calm down! –Keep market buoyant –the 30% pay cut –Bubbles and balloons –The bullish point of view – […]

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[…] Vangrl pointed out this story in the Province: […]

devoid of reaosn
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devoid of reaosn
Brian Chen
Guest
Brian Chen

@space. That’s true about getting unlimited leverage. But unsecured loans carry a high interest. Secured loans carry much lower interest. Like I said, I think you could probably use a secured loan on your property and invest it in the markets. But most people don’t do this.

VanRant
Member
VanRant

Wow, another early friday free for all on a thursday.

VanRant
Member
VanRant

According to my financial investment advisor, if Fintrac can plug the hole for chinese money laundering in real estate, Vancouver real estates will be toasted. Go Fintrac!

Shut It Down Already
Guest
Shut It Down Already

BBB, it is a dead cat bounce. Once the Olympics are over this market is toast.

Specuskeptic
Member

So, Harper lackeys include an executive of the CHMC. Arm’s length my ass….

“The Conservative campaign said Wednesday it couldn’t speculate on what current director of issues management Nick Koolsbergen was saying to his predecessor Chris Woodcock, who was in the midst of testimony in the Ontario Court of Justice….

…. Woodcock went on to become the chief of staff to then Natural Resources Minister Joe Oliver, before taking an executive job at the Canadian Mortgage and Housing Corp.”

http://www.huffingtonpost.ca/2015/08/26/in-aftermath-of-duffy-scandal-only-one-man-was-ever-persona-non-grata-in-party_n_8045390.html

Bull! Bull! Bull!
Guest
Bull! Bull! Bull!
look at the comments below and replace real estate with stock market. isn’t it interesting how much persona bias colors our analysis? the people calling real estate a ‘dead cat bounce’ were wrong. are people who think the stock market’s rally is more than a dead cat bounce wrong again? only time will tell. badnewsbear Says: April 6th, 2009 at 7:26 pm 25 Vancouver Real Estate Recovery – Market Bounce Back Already??? Should actually read: Vancouver Real Estate Recovery – Dead Cat Bounce. http://www.youtube.com/watch?v=Jt_bFHajzU0 What’s with people in this city? Once the bottom falls out everyone will be saying they saw it coming and how smart they were. And they sold their shoebox in the sky before it all happened. Boombust Says: October 15th, 2012 at 7:25 pm 61 “Current October sales rates are way above September’s. I don’t think… Read more »
southseacompany
Member
southseacompany

“Roaring US growth keeps interest rate rise in focus”, The telegraph, UK

http://www.telegraph.co.uk/finance/economics/11828144/Roaring-US-growth-keeps-interest-rate-rise-in-focus.html

“Stocks rallied and the dollar jumped on Thursday after official data showed the US economy grew at a faster pace than previously thought in the second quarter.”

“Economists said stronger-than-expected growth in the second quarter boosted the case for the Federal Reserve to begin raising interest rates this year, even as jitters in China raise concerns about global growth and low inflation.”

“However, markets believe a September rate hike remains unlikely.”

realist
Member
realist

“RE ownership functions as a form of forced savings, which has been its greatest gift to spendthrifts and financial incompetents through the centuries.”

I should have added, “and functions best as forced savings when RE is either unleveraged or much less leveraged than today’s zero down etc.”

Leverage allows forced dissaving. And no kinda leverage yet invented that don’t and can’t function both ways.

realist
Member
realist

@248 fanaticallybroke Says:

“This is why we cannot compete with laundered off-shore money
Because it is all being taxed away”

@249 Patriotz’s observation is correct, but not quite to the point. Taxed incomes can never compete with incomes from criminal sources, local or offshore. In Vancouver, we have plenty of both.

vangrl
Member
vangrl

Space,

The only stock halt i’ve had this year was when Regal got bought out at a 30% premium…

—————————————–

Well, that turned out to be a brilliant buying opportunity.

Nice work Stock peeps!

realist
Member
realist

@252 space889 Says:

“but whatever, you (vangrl) go ahead and believe in your stock market superiority and how it will keep going up when the housing market cracks, and pretty much everybody is already at 0% interest bound and doing QE already.”

Another sarcastic remark about a statement no one else wrote on this blog, until space889 did! Perhaps you should consider changing your name to “Straw Man”?

Bull! Bull! Bull!
Guest
Bull! Bull! Bull!
realist
Member
realist

@253 space889 Says:
“Actually, another big advantage of RE over stocks for the average person is percisely (sic) the lack of liquidity and tick by tick price info…so people tend to end up sticking with them and over the long term, they tend to make money, especially if they did the initial homework and bought a high quality cash flow rentals”

Correct…RE ownership functions as a form of forced savings, which has been its greatest gift to spendthrifts and financial incompetents through the centuries.

Bull! Bull! Bull!
Guest
Bull! Bull! Bull!
space889
Guest
space889
@Brian Chen – get an unsecured line of credit and then deposit the funds into a margin account and BAM, instant unlimited leverage right there…. As you said, it cuts both ways…when you are up, it’s like you are king of the world…when you are down…well, I’m sure you can imagine. Actually, another big advantage of RE over stocks for the average person is percisely the lack of liquidity and tick by tick price info. Most people buy or sell at the wrong time because they can’t handle the price swings and vol. You can’t really check RE price every other minute/hour/day or sell that easily, so people tend to end up sticking with them and over the long term, they tend to make money, especially if they did the initial homework and bought a high quality cash flow rentals.… Read more »
space889
Guest
space889

@vangrl – yes stocks are liquid….so liquid that it can crash 10%+ in a min and then liquidity just dries up and it gets halted…which only happened like 4500 times on NYSE Monday/Tuesday morning….

but whatever, you go ahead and believe in your stock market superiority and how it will keep going up when the housing market cracks, and pretty much everybody is already at 0% interest bound and doing QE already.

Brian Chen
Guest
Brian Chen
@Whistler, so I read some of the stuff that you write here about investments. It is actually quite sound. I agree with you that in reality, real estate has trailed the markets in terms of return. As much as we marvel that price of real estate has say doubled in the last five years, S&P has tripled off of its bottom. However, the one thing that I think people who use this argument fails to mention is that while investment for most people are rarely leveraged (unless you are like me who does options / three time leveraged ETF’s etc), real estate is almost always leveraged. Therefore, the returns are pronounced. Of course, leverage is a double edged sword that cuts both ways. However, given that brokerages usually don’t give me the kind of margins to leverage that real estate… Read more »
w
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w

China’s going to need something to distract it’s population and stimulate the economy. A war usually does the trick.

patriotz
Member

@248:

Their numbers don’t apply to actual taxpayers because they are averaged out over all households and incomes. For example according to them the “average family” (which includes singles) pays:

Income taxes 10,166
Payroll & health taxes 7,158
Total cash income $79,010

The “payroll & health taxes” is clearly too big relative to income taxes, even if you consider CPP contributions to be a tax.

fanaticallybroke
Guest
fanaticallybroke

Mr Harper and Mrs Clark

This is why we cannot compete with laundered off-shore money
Because it is all being taxed away

http://www.torontosun.com/2015/08/27/taxes-eat-up-42-of-average-canadian-familys-income-fraser-institute

patriotz
Member

China media slams Western ‘hype’ over economic slowdown

“Some people around the world have rather impatiently spoken of the so-called end of the China model, or of a hidden financial crisis in China,” The People’s Daily said.

“Of course, Chinese people are already unsurprised by the selective thinking in Western public opinion,” the paper said, noting that commentators on the U.S. economy were far less alarmist when the dot-com bubble burst in the early 2000s.

Dot-com bubble? Holy minimization Batman. Too scared to draw a comparison to the more recent and far more relevant RE bust in the US?

When politicians tell you not to worry, start worrying.