Comments on: Green Chair Talks

By: yattermatters

yattermatters — Sat, 05 Dec 2009 17:19:58 +0000

Manstey,

Fascinating insight within the link. The question that remains unanswered is what would our world be like if CMHC wasn’t here to do the job?

By: ManfredSteyn

ManfredSteyn — Thu, 03 Dec 2009 18:30:58 +0000

A little write-up on the CMHC that shows its gone from being helpful to hurtful very quickly:

http://americacanada.blogspot.com/2009/07/cmhc-and-our-government.html

Excerpt: “In 2008, Canadian home prices started to dip as affordability became the worst on record in many cities. CMHC admits that it was ordered to approve as many high risk borrowers as possible to prop up the housing market and keep credit flowing. 42% of all high risk applications were approved, a 33% increase over 2007.”

This is what is inflating the bubble.

By: yattermatters

yattermatters — Thu, 03 Dec 2009 05:16:48 +0000

Manfred,
The original premise of CMHC has helped thousands maybe millions of Canadians buy a home. Most of them appreciated the break and paid the loan. Many more are still doing the same thing. Unfortunately, there are always bad apples whether by choice or circumstance.

By: yattermatters

yattermatters — Thu, 03 Dec 2009 05:14:35 +0000

David,

Telling the folks in line – some people just gotta drink the juice. Any good poker player knows when to fold them.

I view these reports much like a railroad crossing sign. It’s telling you to stop and look both ways. If you can see the headlight of the train – it’s probably not a good idea to drive across the tracks. Having said that, many proceed at their peril. Sadly, many of us have seen the results of those decisions.

By: davers

davers — Thu, 03 Dec 2009 01:45:52 +0000

The problem with these reports is that the only people who read them already know these things and just like people telling them they are right. Try asking the people in the presale lineup on the weekend if they have heard any of the recent bank reports. I am betting you will get a resounding “WTF are you talking about, real estate only goes up!”

By: ManfredSteyn

ManfredSteyn — Thu, 03 Dec 2009 00:08:42 +0000

Larry,

Point taken – bankers never fret about their own personal welfare. Certainly with CMHC (ie, Canadian taxpayers) holding the bag on this bubble, what should they worry about?

By: yattermatters

yattermatters — Wed, 02 Dec 2009 23:55:28 +0000

Manfed,
Not so sure that they are nervous about their individual welfare as much as wanting everyone to understand that change will happen in the months ahead.

That being the case, I understand the cautionary tone being delivered from each bank as well as Carney, the BoC boss, as one that will preclude public backlash when the change occurs.

No consumer of bank services will be able to say “YOU didn’t warn us!”

Responsible marketing me thinks.

By: ManfredSteyn

ManfredSteyn — Wed, 02 Dec 2009 22:38:29 +0000

You know a massive correction is imminent when even the banking “professionals” get nervous.

By: Greater risk in Canadian housing markets remaining hot than cooling down: TD

Greater risk in Canadian housing markets remaining hot than cooling down: TD — Wed, 02 Dec 2009 16:10:56 +0000

[...] Thanks to Larry Yatkowsky of Vancouver’s Yatter Matters for the heads up on this report. See Larry’s overview, “Green Chair Talks.” [...]