The only reason Canadian Banks have held up so far is because
they've unloaded all their 5,10 percent 30-40 years mortgages onto
the CMHC. And the only reason RE has not collapsed (yet) in Canada
is because the CMHC has backstopped all the new 5-10% mortgages. I
guess we can call those Subprime Mortgages Eh! Story on
CMHC
Excellent point. I was just joking around but believe me, I
don't put Canadian bankers on a pedestal when compared to the
Americans. They can be just as arrogant/greedy and
short-sighted.
However, we must admit, the greatest trend follower investors
love the displacement these repeating historical human patterns
tend to create. Gov't intervention helps them make money also.
I hear ya, and I totally agree with your view about ' ...
investors love the displacement...'. Sometimes I have to remind
myself to just follow the money and watch the charts and and
not get all 'funny-mental'. It does make me sad as a Canadian
that we're just doing the same damm thing and a lot of my friends
have gotten sucked into the 5% down 30 year mortgages. Please keep
posting, I enjoy your views.
The amount of debt being issued is not sustainable - we have
simply shifted the bubble from the private to the public sector.
This clearly is my biggest concern longer term.
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In Case...
Posted by saturn6 on 30th of Nov 2009 at 12:35 pm
You wondered what the US National Debt looked like, The Uk's probably looks a lot worse...
Morgan Stanley fears UK sovereign
Posted by saturn6 on 30th of Nov 2009 at 01:00 pm
Morgan Stanley fears UK sovereign debt crisis in 2010
Us Canadians are going to
Posted by lpwise on 30th of Nov 2009 at 12:47 pm
Us Canadians are going to buy your country wholesale at this rate !
(Just kidding, but noticing Canadian banks have held up quite well inspite of Dubai)
The only reason Canadian Banks
Posted by huylam on 30th of Nov 2009 at 02:39 pm
The only reason Canadian Banks have held up so far is because they've unloaded all their 5,10 percent 30-40 years mortgages onto the CMHC. And the only reason RE has not collapsed (yet) in Canada is because the CMHC has backstopped all the new 5-10% mortgages. I guess we can call those Subprime Mortgages Eh! Story on CMHC
Excellent point. I was just
Posted by lpwise on 30th of Nov 2009 at 02:49 pm
Excellent point. I was just joking around but believe me, I don't put Canadian bankers on a pedestal when compared to the Americans. They can be just as arrogant/greedy and short-sighted.
However, we must admit, the greatest trend follower investors love the displacement these repeating historical human patterns tend to create. Gov't intervention helps them make money also.
I hear ya, and I
Posted by huylam on 30th of Nov 2009 at 03:13 pm
I hear ya, and I totally agree with your view about ' ... investors love the displacement...'. Sometimes I have to remind myself to just follow the money and watch the charts and and not get all 'funny-mental'. It does make me sad as a Canadian that we're just doing the same damm thing and a lot of my friends have gotten sucked into the 5% down 30 year mortgages. Please keep posting, I enjoy your views.
The amount of debt being
Posted by steve on 30th of Nov 2009 at 12:43 pm
The amount of debt being issued is not sustainable - we have simply shifted the bubble from the private to the public sector. This clearly is my biggest concern longer term.