Tag Archives: banks

Friday Free-for-all!

Hey, it’s the end of another work week!

You made it to the weekend and that means it’s time for another Friday Free-for-all!

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

A petition for change
A variation
No more goofy superstitions
Reverse mortgages popular
Mo Debt
Royal Bank scraps limit
Uncle and Aunt-ecdote
Times they are a changin’

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

Should bank CEOs be worried about housing market?

Who should worry most about an overheated housing market?

Overstretched owners with big debt? Renters who want to buy? Government?

What about Bank CEOs?

TD CEO Ed Clark says that bank CEOs ‘should be worried’ about the Canadian housing market.

While he isn’t worried about a full-blown bust, Mr. Clark believes chief executives simply can’t ignore warning signs in the market – particularly the sudden run up in prices for real estate of all stripes. “If you run a bank, you should be worried about it,” he told the audience at a bank conference in Toronto.

Now if banks start to worry about insured mortgages, maybe the taxpayers insuring them should be worrying a bit too.

Of course other bank CEOs have said that there is no problem and lending has been prudent and restrained.

That article ends up with possibly the weirdest last paragraph of the year so far:

Mr. Clark’s comments Tuesday weren’t the first he’s made on the topic, but this time he went into more detail on how his bank is changing its behaviour.

“We’re saying ‘no’ lots of times” to potential real estate borrowers,” he said, some of whom are big, lucrative clients. Mr. Clark wouldn’t name names, but he noted that in one instance, Tim Hockey, the bank’s head of Canadian retail and commercial banking, was “virtually in tears” for having to turn the client down.

The austerity! it hurts!

FFFA! That was February 2013

Well, well, will you look at the time?

It’s Friday already!

And that means it’s time for 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:

Sales plunge, prices fall
The Price Graph
The Inventory Graph
VHB daily sell/list stat data dump
A $10 Million price drop
You can still get a cash-back mortgage
What’s the deal with foreign buyers?
Heroic gov victorious over bubble
Flaherty worries for US style mortgage war
Time to short the banks?
US foreclosure timelines in years
Bubble Fatigue

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

Moody’s down on Canadian Banks

In one fell swoop the credit rating agency Moody’s brought down the credit rating of six Canadian banks.

RBC was the only big bank to escape this downgrade cycle.

So why is Moody’s picking on us?

“High levels of consumer indebtedness and elevated housing prices leave Canadian banks more vulnerable than in the past to downside risks the Canadian economy faces,” David Beattie, vice-president at Moody’s said in a note.

Canadian consumer debt has risen to a record-high 165 per cent of disposable income in the third quarter of 2012, up from 137 per cent in mid-2007. Bank of Canada governor Mark Carney has repeatedly warned about these levels, but they remain stubbornly high.

Sure, Mark Carney has warned about this, but he’s gone now… doesn’t that mean the problem is gone too?

As always Mr. Flaherty is there to reassure us Canadas banks are the ‘soundest in the world’.

In other news… it’s not a bubble, it’s a balloon.

Image source: wreckonomics at Vancouver Peak.

 

 

FFFA! Ben! CMHC! BOC! Fear! Fraud!

It’s that time of the week again! Let’s do our regular end of the week news roundup and open topic discussion thread for the weekend. Here are a few recent links to kick off the chat:

North Americas #1 Bubble
Who will be the next BOC head?
Fear, not foreign investment
Historical inventory graph
Cooling house prices not bad
Rabidoux/lepoidevin talk impressions
CMHC MI levels drop 37%
Short the banks?
RBC 22% profit increase
Flaherty asks for budget input
Flipping and fraud

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