Vancouver Real Estate - BMO’s Iceberg May Be Ours
Posted August 26th, 2008 in Real Estate, Sharing the Experience
On the bright side of things
Tara Perkins of The Globe and Mail’s Report on Business, reported about BMO’s problem with US sub-prime loans.
Ms. Perkins writes that “BMO continues to be tripped up by a variety of complicated investment products, demonstrating that financial markets continue to sour.”
Then We Have
According to Perkins, Mr. Downe CEO of BMO then says that “the Canadian economy is expected to grow by the slowest rate since 1992, and the housing market is cooling. But he jumped in at the end of a conference call with analysts to inject a note of optimism.”
“It is good news that housing starts are at the low level where they are, and at some point people are going to come out of rental housing and move back into purchased housing.”
The Music Played
Now I don’t know how you take this, but here’s a guy who ran his shareholder’s ship into an U.S. sub-prime iceberg. With a degree of audacity he twirls to the music played telling us that it’s all going to be ok.
Below the Water Line
Most of us know that the majority of an iceberg’s mass is below the waterline. Are we to rely on the depth of wisdom from industry leaders like Mr. Downe and should we believe he is telling us the whole story or in fact, is most of the chill hidden below the water line?
I’m just sayin…..
Got a Vancouver Real Estate question? Always happy to answer it. Call or send me an email or twitter me @yattermatters.
Larry
Mr. Downe’s “note of optimism” isn’t very reassuring. If I can make sense of what he’s saying, it’s that markets are cyclical and therefore we have reason to believe things will come around. Yikes.
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