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03-06-2024, 11:26 AM
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Join Date: May 2007
Posts: 3,972
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Something tells me we should be SCARED
On the drive in this morning a radio commercial from Government of Canada telling people that the Government understand the financial stress people are under (Laughed so hard I almost **IT myself!).
Then, and this is the part that scares me, the Ad tells people to go talk to their bank about their Mortgage situation so that the BANK can HELP (yeah, that is pretty funny too!) with options to reduce the financial pressure.
OK, When the Government is trying to get in front of a problem, you know it is a big problem, and it is in the rear view mirror and coming up Fast.
Maybe this is a National Ad, as I don't see foreclosure problems being on the forefront in Alberta, but there clearly is a worry somewhere in the Feds about a backlash in the next few months.
Maybe we will find out that the Bank of Canada has to do another rate increase, on the reason that Inflation is still out of control. Maybe the Bank of Canada is having trouble attracting Bond purchasers in the international Markets.
Whatever it is, for the Government of Canada to recognize that there is a foreclosure problem approaching fast, and then tries to give "advice", to the soon to be beleaguered, it means we are in alot of trouble.
Wait, I know the solution. MORE Carbon Tax. After all, the problem is Climate Change. If you do not agree, well then you are a RACIST.
It must be great having a Trust Fund offshore with jet setting friends to drink champagne with.
Drewski
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03-06-2024, 11:41 AM
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Join Date: Apr 2010
Location: Communist Capital of Alberta
Posts: 3,784
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Why don't they just print a bunch more money and hand it out to any one with a hand out?
Should solve everything like it did During Covid, no?
God help us. Especially the kids.
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Social acceptance is NOT effective therapy.
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03-06-2024, 11:50 AM
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Join Date: Jul 2016
Posts: 3,450
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I'm shocked! Well, not really...
It has the potential to be a valuable lesson; MMT is not going to save them.
It is possible that the well-meaning progressives and their mewling cadre of useful idiots are finally getting to experience the unintended consequences (aka painful repercussions) of their agenda.
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“One of the sad signs of our times is that we have demonized those who produce, subsidized those who refuse to produce, and canonized those who complain.” - Thomas Sowell
“We seem to be getting closer and closer to a situation where nobody is responsible for what they did but we are all responsible for what somebody else did.”- Thomas Sowell
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03-06-2024, 12:07 PM
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Join Date: Sep 2021
Posts: 3,837
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Woe unto them that join house to house, that lay field to field, till there is no place, that they be alone in the midst of the Earth.
Isaiah 5:8
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03-06-2024, 12:08 PM
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Join Date: Jan 2009
Location: Airdrie
Posts: 2,378
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Not exactly sure if it is another indicator or what might be coming but gold has been in a tear this last week up more than $100 an ounce. central banks might know something we don’t as that’s the only reason I can think of for gold spiking like this.
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03-06-2024, 12:26 PM
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Join Date: Feb 2012
Posts: 2,312
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For people who have to renew their mortgage this year, it is no laughing matter. I wouldn't want to be in their shoes.
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03-06-2024, 12:33 PM
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Join Date: Jul 2009
Location: GP AB
Posts: 16,264
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Buy gold, bitcoin, and Nvidia. You'll be fine...
__________________
'Once the monkeys learn they can vote themselves a banana, they'll never climb another tree.'. Robert Heinlein
'You can accomplish a lot more with a kind word and a gun, than with a kind word alone.' Al Capone
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03-06-2024, 01:23 PM
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Join Date: Feb 2009
Location: Sunset House
Posts: 1,257
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“Interest rates are at historic lows, Glen”
If you read this out loud make sure to say it in the most condescending way possible to keep it accurate
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03-06-2024, 02:39 PM
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Join Date: May 2007
Posts: 3,972
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As an afterthought, there is one BIG problem for a bunch of Mortgage Defaults and Foreclosures where properties end up selling for less than the property is worth: Canada Mortgage and Housing Corporation.
You see, if it is a CMHC Insured Mortgage, and the house sells for less than the Mortgage amount on foreclosure, CMHC covers the losses for the Bank and then sues the Borrower for the difference.
Increasing Interest rates to stop inflation and cool the housing market is now the poison pill that could result in massive CMHC payouts. On renewal the people do not have the money to pay down the Mortgage to what the property is worth (think 20 % loss of VALUE ON A MILLION DOLLAR MORTGAGE IN VANCOUVER AND TORONTO).
As it is a Crown Corporation, the Taxpayers then get to suffer as the Government of Canada is the ultimate insurer of CMHC.
Thanks Justin.
For all those who lose all their equity AND CANNOT RENEW, and end up having to assign themselves into Bankruptcy because they cannot pay the shortfall that CMHC sues them for, again...
Thanks Justin.
Drewski
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03-06-2024, 04:16 PM
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Join Date: Oct 2010
Location: Near Drumheller
Posts: 6,780
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Dare say the housing situation is scary for a lot of people, banks will be a lot tighter about mortgages, but, I think what the banks are possibly more worried about is commercial real estate, they have a lot of issues with it, and a double whammy coming from housing and commercial could be a real issue for them. Commercial vacancy rates are pretty high due to the stay at home and work crowd, lots of space has been let go due to that and companies reducing rental footprints across the board. Maybe more so in the US than here, as the anchor stores in a bunch of major centers are closing up shop. NYC, Chicago, SF, LA and others, have whole blocks of streets, and malls, that are vacant of stores due to rents and theft. How much exposure Cdn banks have in US, is a big question, as I see some stuff about bigger chain stuff closing up a lot of sites, and Cdn banks liked a lot of mall investments, probably some big building stuff too. Seems to be some question on underwriting on mortgages too, people pulling money out on that.
It is a question in my mind anyway, what is what on lots of that financial stuff, that I don't know squat about.
__________________
You should also be a member;
CCFR
CSSA
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03-06-2024, 04:29 PM
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Join Date: May 2010
Location: edmonton
Posts: 3,860
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Quote:
Originally Posted by Twisted Canuck
Buy gold, bitcoin, and Nvidia. You'll be fine...
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Little late for that…. The banks are setting aside billions for loan lost provisions in every quarterly report.
CHMC just cancelled the first time buyer incentive.. last month
Last edited by fishtank; 03-06-2024 at 04:37 PM.
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03-06-2024, 04:39 PM
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Join Date: May 2010
Location: edmonton
Posts: 3,860
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Quote:
Originally Posted by slough shark
Not exactly sure if it is another indicator or what might be coming but gold has been in a tear this last week up more than $100 an ounce. central banks might know something we don’t as that’s the only reason I can think of for gold spiking like this.
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Bitcoin is the new gold …new ATH every week
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03-06-2024, 04:49 PM
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Join Date: Jun 2007
Posts: 1,961
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Quote:
Originally Posted by Twisted Canuck
Buy gold, bitcoin, and Nvidia. You'll be fine...
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Just saw Costco is selling 1oz gold bars or coins for $2980. 2 per account. I don’t know if it is worth it or take that $2980 and invest it something with a better return.
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03-06-2024, 04:57 PM
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Join Date: May 2010
Location: edmonton
Posts: 3,860
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Quote:
Originally Posted by tbiddy
Just saw Costco is selling 1oz gold bars or coins for $2980. 2 per account. I don’t know if it is worth it or take that $2980 and invest it something with a better return.
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Better to buy Costco stocks or buy a index fund like sp500… with gold you paid a premium to buy and to sell ..
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03-06-2024, 05:30 PM
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Join Date: Nov 2023
Posts: 160
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Nine scariest words to hear. " I'm from the government, and I'm hear to help".
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03-06-2024, 05:57 PM
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Join Date: May 2013
Posts: 3,221
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Quote:
Originally Posted by Drewski Canuck
As an afterthought, there is one BIG problem for a bunch of Mortgage Defaults and Foreclosures where properties end up selling for less than the property is worth: Canada Mortgage and Housing Corporation.
You see, if it is a CMHC Insured Mortgage, and the house sells for less than the Mortgage amount on foreclosure, CMHC covers the losses for the Bank and then sues the Borrower for the difference.
Increasing Interest rates to stop inflation and cool the housing market is now the poison pill that could result in massive CMHC payouts. On renewal the people do not have the money to pay down the Mortgage to what the property is worth (think 20 % loss of VALUE ON A MILLION DOLLAR MORTGAGE IN VANCOUVER AND TORONTO).
As it is a Crown Corporation, the Taxpayers then get to suffer as the Government of Canada is the ultimate insurer of CMHC.
Thanks Justin.
For all those who lose all their equity AND CANNOT RENEW, and end up having to assign themselves into Bankruptcy because they cannot pay the shortfall that CMHC sues them for, again...
Thanks Justin.
Drewski
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If I was in these shoes, I'd let the place go to foreclosure. That's a rather easy thing to deal with if you know how. But you can't do it from inside a bankruptcy.
The much bigger problem is section 21 of the Bank Act. It's wierd, and strange. It'll either be a bank holiday, with something new coming up for the banks, or the implications will be absolutely terrifying for the average person.
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