Friday Free-for-all!

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

This is our regular 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:

Thumb-twiddling pays $47 / hour
Premier warns on shadow flipping
No God-given right to live here
BC parents delay birth
Down in USD?
Unsolicited offers?
Credit fueled bubble
Shark jumped

On a side note, we’re curious.. why spend time manipulating comment voting when it has no effect on the comment?  And why do so many of you only want to discuss racial stereotypes?

There have been a number of requests for IP bans, even though they are more of an inconvenience rather than something fully effective. that said we’ve thrown a poll in the side bar, so vote away on who you want to ban!

Sort by:   newest | oldest | most voted
patriotz
Member
B.C. cities must cut red tape for affordable-housing funds: minister B.C. communities that want to dip into the province’s new affordable-housing fund will have to show they can get construction for such projects approved quickly, says the minister responsible for the file. Rich Coleman says cities must cut the red tape that he argues is bogging down development if they want some of the $355-million his government has dedicated to building and renovating at least 2,000 affordable housing units over the next five years. Finance Minister Mike de Jong also complained about red tape during this week’s budget launch. “The biggest piece of this is: How fast can you get it zoned and ready to build?” Mr. Coleman said in an interview. “If your zoning process is three years, then I’m not worrying about matching you in 2016 … because… Read more »
space889
Member
space889

So? It doesn’t mean what Rich Coleman says is incorrect. If a city takes 18 months just to approve something then they really aren’t interested in building social or affordable housing, and there is no point in the Provincial gov’t giving them money to build something that wouldn’t even break ground for 2 years.

patriotz
Member

Coleman is confusing (IMHO deliberately) the average time for approval of private sector developments with the approval time for the affordable housing which his government has promised to finance. Robertson pointed out (in the story linked above) that CoV already owns and has approved multiple sites for affordable housing and needs only financing to proceed. Given the entire program is for only 2000 units, the CoV properties would likely accommodate all the allocated units for the Lower Mainland for two years or more going forward.

Vanco
Guest
Vanco

Let’s play a guess the poster game.

[mla] no god given right to live in Van.
[mysterious poster] What he is saying is that people who lived in Vancouver have no right, but (rant about foreigners buying land, etc.). This guy is one sick fuck (tirade…)

[mp] nobody ever said people born in Vancouver have a right….

Yes, he is really that stupid.

Best place on meth
Member
Best place on meth

You conveniently forgot to finish the sentence, cherry picker.

Let’s guess who keeps perpetrating this lie: “Bears all think they’re entitled to own a detached house in Vancouver”.

space889
Member
space889

If you can’t afford a condo in Vancouver then you can afford a SFH in Vancouver even if prices falls 50% or 75%. In such case, whether there is massive foreign buyers or not doesn’t really matter to you since you can’t afford it either way. So why are you so mad about not being able to live in Vancouver? Maybe you should spend your energy on improving yourself to make more $$$.

Oh wait, I forgot, that’s a lot harder than blaming foreigners. And really? Bears don’t want to live in SFH? That’s all you people complain about.

Vanco
Guest
Vanco

Its based on the fact that while SFH appreciated significantly, the condo market hasn’t changed much. I think vangrl proudly noted that she sold a couple of condoes a few years ago and the prices were flat or lower now. So isn’t the anger really about not being able to buy SFH?

Best place on meth
Member
Best place on meth

Then take it up with vangrl, don’t put words in my mouth and call me stupid.

space889
Member
space889

Geez…why so sensitive and angry about other people pointing out obvious undertones and implied points in your posts. I thought you always said people should take constructive criticism and hard to swallow truth gracefully. Follow your own advice!

Also, if your complaint isn’t about able to afford Vancouver SFH, then what the heck are you so angry about? Unless you are saying you can’t afford Vancouver unless condos are going for $200/sq ft or cheaper?

Bird
Guest
Bird

Why is it for some people it all comes down to arguments of ‘can afford’. That’s just a side issue – the real question is ‘is it worth it?’

Best place on meth
Member
Best place on meth

The argument Vanco started was about what the MLA for Chilliwack-Bethlehem stated, which was that nobody has the right to “live” in Vancouver.
Somehow the word “live” got misconstrued into “buy” by the real estate cheerleaders on this board.

Maybe the MLA misspoke and actually meant “nobody has the god given right to buy in Vancouver”, which I would agree with.

vangrl
Member
vangrl

Totally agree. It’s not worth it to pay 1.5 mil for a crappy house on a crappy street. Easy choice.

vangrl
Member
vangrl

Well condos have gone up this year, finally. Still happy I sold, way further ahead in stocks.

Dave
Member

Yes, cities must cut red tape. I’ve been saying this for years and I can see the effects first hand. It’s basic economics. When government interferes and increases costs as much as they have, then you end up with less supply. This is very damaging to consumers.

southseacompany
Member
southseacompany

Housing Supply;

“Housing completions is the most reliable measure of the increasing the
supply of housing across the region.
Data reported by CMHC for the period 2005 to 2014 (10 years) shows
170,134 completions, with an annual average of 17,013 completions
per year.”
http://www.metrovancouver.org/services/regional-planning/PlanningPublications/MV_Housing_Data_Book.pdf

Housing Demand;
“The net change in households between 2001 and 2011 is 133,160 households,”
http://www.metrovancouver.org/services/regional-planning/PlanningPublications/Census2011-Families.pdf

2001-2011: 170k new homes for 133k new households. Doesn’t sound like there was any shortage of supply during a period when home prices were seeing huge gains.

Best place on meth
Member
Best place on meth

It doesn’t matter how much you build if the supply gets gobbled up by speculators and money launderers.

Dave just won’t let go of the red herring.

Dave
Member

Meth, I’m on your ‘team’ now. If our team wants lower housing prices, then we have to want more supply. If we want more supply, then municipalities have to speed up approvals and enable more density rather than taking 75% of your profits for extra density, as is the case in Vancouver. No right minded capitalist would take that deal and they’re not for the most-part BTW.

Trust me on this.

Best place on meth
Member
Best place on meth

Dave, I will reiterate:

“It doesn’t matter how much you build if the supply gets gobbled up by speculators and money launderers.”

There is plenty of housing available right now but it’s being hoarded, more supply will just result in the same groups of greedy people buying it up.

There are thousands of houses and condos sitting empty and this has been further complicated by AirBnB taking rental stock off the market.

And do you really think that cutting costs for developers will lower prices for buyers? The units will still be sold at whatever the market price is and the end result will just be fatter profits for developers.

The only solution is to discourage speculators and money launderers which the BC Libs refuse to do because they’re raking it in, both personally and tax-wise.

patriotz
Member

If our team wants lower housing prices, then we have to want more supply”

Right Dave, and do you know how the provincial government could instantly increase supply and bring in tax revenues too? Change the tax system to force those owning empty properties to sell them or rent them out.

But that might bring prices down, so the provincial government can’t do that, right?

space889
Member
space889

What’s wrong with building more condo towers?? Are we like running out of sky to put up those towers?

How does your solution actually generate any jobs or economic activities?

vangrl
Member
vangrl

Great, empty Towers like the Ghost cities in China….but hey jobs

Shut It Down Already
Guest
Shut It Down Already

There aren’t enough empty properties to put a dent in supply or demand….. Unless you have numbers to suggest otherwise without resorting to anecdotes of towers with some lights off one evening when you walked past one?

Best place on meth
Member
Best place on meth

Playing dumb is no way to go through life.

You really should take a cue from bestplaceonearth and move along.

bullwhip29
Guest
bullwhip29

Globe and Mail: Canada’s retail sales fall most since 2010 in December
http://www.theglobeandmail.com/report-on-business/economy/canadas-retail-sales-fall-most-since-2010-in-december/article28811270

>>> more signs that the Cdn consumer is feeling the pinch

bullwhip29
Guest
bullwhip29

Globe and Mail: Inflation rate jumps as impact of declining loonie takes hold
http://www.theglobeandmail.com/report-on-business/economy/canadas-inflation-rate-hits-2-per-cent/article28811207

>>> not surprisingly, the rate of inflation in BC is the highest in the country

Dave
Member
No big surprise, but inflation is up (CPI at 2%) and consumer spending is down (dropped 2.2% in January). And of course, we’re not seeing a bump in exports from our low dollar. Who could have guessed it would play out that way? 🙂 But, by all means, let’s keep cutting those interest rates and take the dollar down even further. I think pushing real estate values up over this past year was a historic mistake by the Bank of Canada. We’ll see if that plays out over the next couple years. If the US economy continues slow growth and if the global economy (China) and hence commodities don’t recover, then they’ll cut a couple more times, which buys real estate another year or two. And if at the end of about two years, we’re still in the same economic… Read more »
Hyper-mega-Bull
Member
Hyper-mega-Bull

‘We’re just licking our chops,’ says film agent as B.C. industry profits from low Canadian dollar

http://www.cbc.ca/news/canada/british-columbia/canadian-dollar-film-manufacturing-bc-1.3392704

Dave
Member

I’m sure the film industry will start handing those subsidies back to the government now that times are good.

Hyper-mega-Bull
Member
Hyper-mega-Bull

i had the exact same thought.

Ulsterman
Member

Save BC Film! Something needs to be done! Oh, err, what was that? You’re all raking it in once again? OK, carry on. Nothing to see here.

bullwhip29
Guest
bullwhip29

The powers that be went ALL IN on RE. Now the industry is too big to fail. By Canada remaining in denial about this mess since the financial crash of 2008-09 we wound up not only repeating many of the same mistakes the US made, but actually made the problems much worse. We’ve been acting like a delusional bunch of drug addicts who pretend everything is fine and refuse to acknowledge there is a problem. Instead of intervening, the central planning dept has been doing everything in their power to improve both the potency and availability of the drugs while at the same time introducing other measures to lower costs for their patients. You all know how this will eventually end. Not well.

bullwhip29
Guest
bullwhip29

SCMP: Sensitive financial data ‘missing’ from central bank report on capital flowing out of China’s slowing economy
http://www.scmp.com/news/china/economy/article/1914007/sensitive-financial-data-missing-central-bank-report-capital

>>> as the Three Wise Monkeys say, “…see no evil, hear no evil, speak no evil…”

猴 2016

franko
Member
Active Member
franko

How long will it take those investors from China to convert the Bentall Centre from offices to condos, and market them to other individual buyers from China?
http://globalnews.ca/video/2527229/Chinese-investors-buy-bentall-centre

space889
Member
space889

The buyer is an insurance company, so unlikely unless it needs a big wad of cash in the near future. If the buyer is a company like Brookfield then yes, conversion to office condos structure is extremely likely as they would rather just charge a straight management fee.

vangrl
Member
vangrl

ya because Chinese insurance companies aren’t into selling Real Estate

“Chinese investors being offered zero-deposit home loans over Australian apartments will be charged credit card interest rates, raising fears of increased offshore speculation in the already heady property market.

The privately owned Ping An Insurance, which is offering the zero-deposit home loans, will charge clients an annual interest rate of 14 per cent.

Eddie Yuen, the Shanghai-based manager of property agency Austpac, which is promoting the scheme to clients, said the loan had a two-year term and was to fund the initial 10 per cent down payment for an off the plan apartment.”

http://www.domain.com.au/news/nodeposit-home-loans-attract-credit-card-interest-rates-of-14-per-cent-20151027-gkji1y/

Bestplace4nazis
Guest
Bestplace4nazis

This is the most cherry picked “research ” I’ve ever heard
Which hate group sewer did you crawl out from Van “girl” ?

bullwhip29
Guest
bullwhip29

These wont be converted, they’ll be knocked down (eventually) and rebuilt at 2x or 3x the height once height restriction laws are “amended”. In the meantime I wonder how many govt related offices and other co’s dealing with sensitive IP will be considering a change of address? http://www.cbc.ca/news/world/obama-snubs-waldorf-astoria-hotel-amid-chinese-espionage-fears-1.3238907

space889
Member
space889

Whatever….there are easier way to hack into gov’t data than spending $1B+ to buy some controlling interest in office towers. Seriously, $100M would pretty much get you the best hackers out there.

As for the Waldorf hotel, ZeroHedge said that Chinese bought it cuz they don’t trust the hotel they used to stay at for fear of US espionage. So that street go both ways. Do you really believe US doesn’t pull the kind of crap they accuse China of doing?

Lurker
Guest
Lurker

It would cost a fortune to knock those down for condo’s. My god you know nothing about development. They’re a little old but worth way more standing. Jesus I think that’s the stupidest thing I’ve heard this year.

Bestplace4nazis
Guest
Bestplace4nazis

You are retard Nazi fuck

bullwhip29
Guest
bullwhip29
more on Cdn retail sales… http://www.vancouversun.com/canadians+back+spending+prices+rise/11730629/story.html >>> The people running the show have got to be concerned about the lacklustre sales data given the new lower loonie environment we are currently in. Looking back a couple of years or so, what were all those thousands of ppl lined up at Cda’s three busiest borders bringing back into Cda? and why are they not spending even a portion of this money in Cdn stores now? What is happening? IMHO there seems to be a big disconnect here that is worth mentioning. Maybe Cdns were simply blowing money they didnt have south of the border when times were supposedly better and have either opted to cut back on buying more unnecessary “stuff” due to increasing prices of many essentials OR worse yet, have had to cut those charge cards into little pieces… Read more »
gordholio
Member
Hey bullwhip. I live down here close to the border, and it’s not like there are no Canadians going south to shop anymore. There aren’t as many, but there are still quite a few. Remember, our dollar has tanked, but at the same time prices for a lot of stuff have risen in Canada. So, you either buy stuff in the US with a weaker dollar or buy even more expensive stuff in Canada. I changed a bunch of money over at $.85, so I still shop down there. Gas, for one, is still a good deal. It’s about a 40% savings over buying up here, even after today’s exchange rate. But yes, from what I can gather, we’ve also been a bunch of debt pigs. Mortgage, maxed LoC, couple of maxed credit cards – pretty par for the course.… Read more »
bullwhip29
Guest
bullwhip29

Border lineups are short now. many ppl i know reconsidering nexus renewal (which has gone up). You factor in less x-border shopping by cdns (maybe a lot less), soaring RE prices (which are supposed to be good thing), big bump in tourism $ north of border, supposedly a bazillion dollars in HAM flooding into Cda and yet Cdn retail spending is not picking up.

gordholio
Member
Is there a big bump in tourism dollars here? I’m asking because I really don’t know. I know if I was a “global” tourist, I’d want to see a lot of places before Raincouver. As for Americans coming up here to shop, well, that just doesn’t make sense to me. Even with the low Canadian dollar, prices are still pretty much a wash. Not to mention selection. I bought a Chromebook the other day. It’s made by Asus, and it’s called a “Chromebook Flip” (basically a low-power laptop that flips around to become a tablet). I use it for couch surfing and Netflix. Anyway, it’s a very popular model with a lot of good reviews. It was released several months ago – except you *still* can’t get it in Canada. I went into NCIX in Richmond the other day, and… Read more »
space889
Member
space889

People were lining up outside Holt Renfrew to score Keyne West shoes at $250+ a pair. I would say there is a lot of $$$ sloshing around for retail.

Pookie
Guest
Pookie

That’s so they can flip them on ebay for $1000.

OpenCourse
Guest
OpenCourse

wes keynes shoes are selling at ALIBABA site for an average price-range of low to mid-two digits. if they purchase a dozen pairs using their credit cards every time, go figure.

space889
Member
space889

People line up for days

Ulsterman
Member
A friend works at YVR and talks to pilots frequently. Said the Las Vegas traffic has dropped dramatically. There’s a popular Westjet flight that returns to YVR around 1am daily and holds about 185. For years he said it was full night after night. Recently it’s been flying back with as few as 30 people. I just flew back from Las Vegas last week on Allegiant Air via Bellingham. Chatted to the flight attendant and she reported a significant drop in passengers. Said normally they get ready for March Madness (her phrase) and they are super busy, making lots of overtime. Not this year. She said she can’t even get full time. Most people I’ve spoken with who normally do a Las Vegas, Hawaii, or California trip are reconsidering their options this year. Final point, on my way back i… Read more »
bestplaceonearth
Guest
bestplaceonearth

IP ban as the poster does not agree with your point of view? that is very pathetic, people. it’s time to fold this blog like the rest of them.
i told you couple months ago, buy your condo! now that you would save the PTT,
and prices will keep going up.
this summer, you will be official priced out even condo and town house market. if you think your lives are sucked now, you have not seen anything yet.
Good bye VCI and all the miserable souls! May real estate god be with you!

Dr. Strangelove
Guest
Dr. Strangelove

Good riddance motherfucker, now fuck back off to the shithole.

bestplaceonearth
Guest
bestplaceonearth

“motherfucker”
you do that, really? are you one?

“now fuck back off to the shithole”
how do you suppose to do that? why don’t you show an example !

and of course, vci would welcome this dr. with open arm, regardless of the foul language.

Best place on meth
Member
Best place on meth

One down, three to go.

Shut It Down Already
Guest
Shut It Down Already

If space quits you’ll be top of the IPban list.

vangrl
Member
vangrl

nah cuz the only folks that voted for him are the ones with the highest votes. Plus, Space probably rigged it somehow.

OpenCourse
Guest
OpenCourse

the spacefockers can go back to their usual digs (*) where they trash the blacks, the bananas, the hispanics and the whites. posters of chinese origin from Macau and Hong Kong at those sites were attacked verbally and called names “british dogs” etc.

the only reason she is here to police VCI is that she works for the real estate industry and to protect the interest of certain vested group.

Bestplace4nazis
Guest
Bestplace4nazis

Down your own hole
Base dweller loser !

Brian Ripley
Guest

The Monthly Absorption Rates for the 6 biggest Canadian cities are looking a bit tired but the rates for Vancouver and Toronto are still putting in higher seasonal lows.

Chart: http://www.chpc.biz/mar-moi.html

The trend is still friendly to sellers in Vancouver and Toronto where very low Months of Inventory prevail.

bullwhip29
Guest
bullwhip29
squeak
Member
squeak
Re: Ulsterman: ” I know a few people pulling their hair out trying to get into the SFH market and being pushed further and further into the suburbs, and into areas they’d never dreamed of living in. They have a few hundred in equity and are desperate. Their shopping logic is: go to broker and get the highest qualification possible, add existing equity, take money from RRSPs, gift from family. They come in to work on Mondays and report gloomily about open houses with 100 other people bidding massively over asking.” What an awful position to be in. They are trying so damned hard but don’t even stand a chance. That is the danger of starting a career in Vancouver for young great minds, they get stuck in lower paid jobs and have to endure lousy housing conditions or mortal… Read more »
Ulsterman
Member

You’re right, it is an awful position to be in. There are the work colleagues who’ve owned for years looking on with relief and people like me who have honestly given up on owning, at least in this region. Then there are the couples I referenced on weekly pilgrimages to packed open houses. Each week they try further and further from Burnaby, working hard to justify the bridges and the commute. The saddest part is the strain it puts on marriages. Often one partner is happy with a townhouse (where they may currently live) but for the other it’s the manic desire for a SFU with a garden for kids and BBQ’s.

space889
Member
space889

test

space889
Member
space889

Apparently simple words like “shoes” trigger Spam filter.

space889
Member
space889

Apparently simple words trigger Spam filter.

space889
Member
space889

Like “sh*e” and “b*y”

space889
Member
space889

But f word, and similar profanities do not

crabman
Guest
crabman

Can we please add “space” to the SPAM filter?

Best place on meth
Member
Best place on meth

Just add the dumb shits three favorite words, “uhmm”, “cuz” & “geez”.

He’ll never be able to post again.

WInner: VCI

Bestplace4nazis
Guest
Bestplace4nazis

How about best place on meth for bitter Nazi losers ?

paulb
Member
Active Member

New
203
Sold
188

TI:8045

For weekly sales and/or new listings info on a specific neighbourhood/city of your interest, email me and I will customize a weekly update for you. The daily sales numbers only mean so much. Each neighbourhod and market segment can be quite different.

http://www.paulboenisch.com

Clockbike
Member
Clockbike

A government’s job is to give incentives for land and people to work efficiently. They seem unwilling to put limits of foreign ownership, but what about shifting the tax burden from income tax to property taxes? Employment would be more gainful, allowing people to save and invest more into the local economy. At the same time speculators who sit on land without utilizing it would be penalized by being further in the red and (some) would be forced to either rent out or sell.

space889
Member
space889

When’s the last time a gov’t did a 1:1 tax swap that actually benefited the average family? I can’t think of any instances. More like, the property tax will simply become one more source of revenue to feed the bottomless pits of gov’t waste and union wage & benefits.

Also, the RE problem is really only in GVRD/Fraser Valley, rest of the province isn’t nearly crazy. But regardless, translink is looking for more revenue, a lot more, so higher property taxes and region wide tolling (excluding Whistler off course cuz we can’t hurt “tourism”) will be coming.

Royce McCutcheon
Member
Royce McCutcheon

“Also, the RE problem is really only in GVRD/Fraser Valley, rest of the province isn’t nearly crazy.”

Yeah, it’s only a problem where nearly 60% of the population resides. Phew. Also, that’s wrong. The Victoria area – home to another 7-8% of the population – has affordability problems. So it’s only about 2/3 of British Columbians living in areas affected by affordability issues. I for one am RELIEVED.

patriotz
Member

The whole of Southern BC, including Vancouver Island, is overpriced relative to the strength of the local economy. Kelowna and the Okanagan ridiculously so, although not as much as before the 2008 downturn. Compare to Washington State. Ironically Trail, which is about the only town with a preponderance of real jobs, is among the cheapest.

It will be interesting to see the impact that the RE market in Alberta, which is still levitating Wile E Coyote style, will have on the Southern Interior. Alberta starting falling in 2007 and this led to a crash in the recreational property market, and falling prices in the towns and cities.

southseacompany
Member
southseacompany
“‘White-hot’ Vancouver, Toronto housing markets could be dragged down by rest of Canada, report says”, Financial Post http://business.financialpost.com/personal-finance/mortgages-real-estate/white-hot-vancouver-toronto-housing-markets-could-be-dragged-down-by-rest-of-canada-report-says “A new report from Moody’s Analytics says Canada’s two priciest markets could eventually be dragged down by housing results in the rest of the country.” “Moody’s Analytics says the bifurcation in the market could work against the overall Canadian housing market at some point.” ““This split will make it difficult to manage the market in the event of adverse shocks, and a continued slowdown in smaller metro areas could eventually drag down the overall market,” says the report.” “Lowy also predicts rising interest rates will take a bite out of the Canadian housing market. “Mortgage rates will almost certainly rise by the end of the year as the U.S. Federal Reserve continues its rate hikes, driving up longer-term government bond yields in… Read more »
wwwww
Guest
wwwww
Best place on meth
Member
Best place on meth

The thumb twiddling link is really something.

It sums up the economy of this giant laundromat that Krusty is so proud of and bleats incessantly about.

What economic drivers will Vancouver have left when the thumb twiddling economy comes to an end? Maybe qaudruple the number of chinese students?

Bestplace4nazis
Guest
Bestplace4nazis

Or double the numbers of inbred losers like BPOM ?

Ted
Guest
Ted

To curb speculation, in February 2013 the government introduced a double stamp duty for buyers of second homes or through a company. They also imposed an extra 15 per cent buyers’ stamp duty on non-local residents. In 2012, the government introduced a special stamp duty of 10 to 20 per cent to penalise speculators flipping flats within three years.

The Hong Kong Monetary Authority in February last year ordered banks to tighten mortgage lending. The loan-to-value ratio for residential properties under HK$7 million was capped at 60 per cent, down from 60 to 70 per cent.

Best place on meth
Member
Best place on meth

These measures enacted by Hong Kong are racist and amount to a thinly veiled HEAD TAX against the chinese.

Just ask Gordon Clark or Victor Wong, they’ll tell you.

Bestplace4nazis
Guest
Bestplace4nazis

BPOM calling someone racist ? The kettle is so far up your ass its turning… black

ChinaOne
Guest
ChinaOne

I keep post short. More my cosin and month come in through Foreign student program. My cousin no more need investor program. Thank you

ChinaOne
Guest
ChinaOne

Small post again. My cousin MSP premium should be based on Asset in BC. He have 2 house bigger than us. million dollar . We have also house. We not want pay MSP in future. my cousin no income in Canada.

Bestplace4nazis
Guest
Bestplace4nazis

Why don’t you stop sleeping with BPOM and you will write better than you play banjo trailer boy ?

southseacompany
Member
southseacompany
“The larger fear that lurks beneath debate over negative interest rates” Globe & Mail https://www.google.ca/url?sa=t&rct=j&q=&esrc=s&source=newssearch&cd=1&ved=0ahUKEwjmxYSslIfLAhVQ_WMKHcpJA4sQqQIIGygAMAA&url=http%3A%2F%2Fwww.theglobeandmail.com%2Fglobe-investor%2Finside-the-market%2Fa-larger-fear-lurks-beneath-the-debate-over-negative-rates%2Farticle28820424%2F&usg=AFQjCNGLCQA-o22YLh8MGD9ZjCNLCeDxZw&bvm=bv.114733917,d.cGc “The larger fear lurking beneath the negative-interest-rate debate is that negative interest rates – which were widely deemed impossible only three years ago – is a signal that central banks are grasping at straws and have reached the limits of their ability to support developed market economies. This declining credibility implies that asset markets, driven higher by central bank monetary policy explicitly designed to do so, will succumb to gravity and head sharply lower.” “Central banks have successfully boosted asset values but the global economy has remained sluggish and corporate investment muted” “Investors should expect market volatility to continue. Central banks, after bailing out the global financial system, have acted as a financial and psychological backstop for investors, boosting confidence and equity buying. As confidence… Read more »
wpDiscuz