Comments on: Canadian Banking Regulator Warns Members To Prepare For Rising Vulnerabilities

By: Tommy

Tommy — Fri, 13 Dec 2019 16:16:40 +0000

In reply to Ricky Amebo. They didn't rise here in the US, after interest rates were cut from 2006 through 2012.

By: Ricky Amebo

Ricky Amebo — Thu, 12 Dec 2019 18:36:13 +0000

Won’t housing prices rise if an expected rate cut comes in the New Year?

By: Tom Wolfe

Tom Wolfe — Wed, 11 Dec 2019 21:09:13 +0000

In reply to Tom Wolfe.

The reason its going to *be epic, is because, not only have people leveraged – and spent – the maximum value of their real estate but they have done so publicly, on social media, far more pervasively than in 2007. That is a new development and contributing factor. Should a collapse materialize it will mess with the economy first and then with people sense of identity. With real estate values declining and mortgages not renewing because the equity is just not there, people are going to suffer because they loaded up with debt that they thought they could afford.

Similar lessons were learned in the 60’s-70’s when the drug-pusher was vilified for getting people hooked on drugs that would destroy their lives. In 2010+ it was banks taking advantage with gateway drugs like HELOCs.

Could CIBC have been wrong? We weren’t actually richer than we thought?

By: Harold

Harold — Wed, 11 Dec 2019 20:13:49 +0000

And these are “national” concerns. In most parts of Canada real estate prices are only slightly elevated. Ground zero is Toronto, which like Vancouver is 2-3 times over-valued based on fundamentals. When the economy caves, and jobs start disappearing, it’s going to make 1990 look like a picnic. Think 1929 and Japan.

By: straw walker

straw walker — Wed, 11 Dec 2019 18:11:50 +0000

In reply to Rick Abrams. And if there every is a financial reckoning... those that lived modesty.. will pay for the lifestyles of those that continued to lived beyond their means.

By: straw walker

straw walker — Wed, 11 Dec 2019 18:07:54 +0000

In reply to SUMSKILLZ.

Vancouver is seeing an increase in housing sales, as sellers are now more willing to lowering their expectations.
These are the homes that were bought since mid 2015 and are under water. Many are second homes bought using heloc loans, and have negative cash flow.
These homes have to sell..therefore sales are increasing, and it looks like a recovery.

By: Rick Abrams

Rick Abrams — Wed, 11 Dec 2019 16:57:01 +0000

Not to worry. We can continue to make bad decisions and they will never ever crystallize into a disaster. The history of economics has shown that there is a straight line of ever increasing prosperity to be had if you simply build, build, build for the 1% and destroy the financial base of everyone else.

By: Marc

Marc — Wed, 11 Dec 2019 16:33:20 +0000

“Never have asset valuations been so far beyond underlying incomes to support those valuations as now.”

https://twitter.com/DiMartinoBooth/status/1204350286644559872?s=20

Dollar stimulus is failing to transmit to households, and is being retained entirely by the investor class. Investor class being those with $10m or more in assets, not the guy driving an Uber to subsidize rent on a condo he rents out.

By: MC

MC — Wed, 11 Dec 2019 16:28:17 +0000

In reply to SUMSKILLZ. Been hearing agents advise investor clients they might make more in the spring, but they shouldn't look a gift horse in the mouth, since the big increase in sales. If it's the mortgage industry's B-20 cohort forecast, this doesn't last until the end of next year.

By: SUMSKILLZ

SUMSKILLZ — Wed, 11 Dec 2019 16:14:09 +0000

Three houses on my daily dog walking course have: been put up for sale, sold, and the homeowners moved out, all in less than 30 days. Since beginning of November. This morning, 2 new listings. Who posts homes for sale in mid December?

Its giving me the heebie jeebies.