Welcome to the summer of 25 year amortizations!
You’ve made it to the end of another weekend and that means it’s time for our regular end of the week news round up and open topic discussion thread.
Lots of ink spilled over the new mortgage regulations released yesterday.
Here are a few links to kick off the chat:
–New rules in effect July 9th
–How rules effect mortgage numbers
–How new rules will sink houses prices
–Final OSFI guidlines released
–Brokers not so happy
–Inventory growth takes a breather
–Be very afraid of the Canadian bubble
–Falling prices, no more home ATMs
–Moody’s downgrades RBC 2 notches
–USA 2006 “I’m not giving it away”
So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent weekend!
You’ve probably noticed lots of eye rolling around here anytime someone mentions how Canadian banks are so different from US banks. The Canadian Centre for Policy Alternatives is now pointing out in a report that Canadian banks actually received a multibillion dollar bailout from October 2008 to July 2010. The government is being accused of offering ‘liquidity support’ that is much higher than originally reported.
All told, the study counts $114 billion worth of guarantees and financial aid for Canada’s big banks from government agencies such as the Bank of Canada and the Canada Mortgage and Housing Corp.
MacDonald combed through financial reports from government institutions as well as quarterly reports from the banks themselves.
He says the government has been obfuscating the true cost of supporting the banks.
“A healthy and resilient banking sector cannot operate under a shroud of secrecy. Details of the massive taxpayer support Canadian banks received should be released in the name of transparency and accountability,” MacDonald said.
They also point out that the heads of Canada’s big banks received large raises during the time this ‘liquidity support’ was offered.