Monday, June 19, 2017

Vancouver Will Implode

Don't worry. It is contained to the Chinese economy, the Canadian Banking system and anyone within  11,000 miles of either.

“Price increases in Vancouver and Toronto have an element of speculation to them,” Bank of Canada Governor Stephen Poloz said last week, while issuing the bank’s biannual financial system review. The review showed “riskier characteristics are increasingly evident” in new mortgages.
A December 2016 Bank of Canada report estimates shadow lenders now account for $1.1 trillion in debt — about half as much as the traditional banking sector — and that over the past decade “these new players have become more important and have changed the face of the Canadian mortgage market … (as) tightening bank regulation can lead to migration of activity from the traditional banking sector to the shadow banking sector.”

Read more:  http://vancouversun.com/news/local-news/vancouver-real-estate-in-the-red?cn=bWVudGlvbg%3D%3D&cn=cmV0d2VldA%3D%3D

Apologies for the poor posting format.

77 comments:

Cinco-X said...

11,000 miles? Whew! That's a close one

Rob Dawg said...

Maple syrup smuggling will return.

Lawyerliz said...

So if Zillow goes down, I'm toast.

Rob Dawg said...

Nah. You'll just be lower middle class like the rest of us. 🤥

Lawyerliz said...

Actually, it doesn't matter, it's paid for and I'm not going anywhere.
You are upper middle or lower upper. I can tell by you postings.

Lawyerliz said...

Who is.buying these expensive houses? Chinese, USians Canadians? How hot is granting them loans? People who want to get a rate over 5? 4?

Rob Dawg said...

I just talk rich. Ask Cinco. I live well but not high but by being cheap not wealthy.

Lawyerliz said...

No, you talk poor. Ask Cinco

Lawyerliz said...

Illinois is going broke again. Broker than Cali, I think

Cinco-X said...

Agreed. Your house probably puts you in the upper quintile, but the rest is solid middle class. And here in New England, it's called thrifty, not cheap. Anyone know what happened to Vermont Codger?

Cinco-X said...

What do you expect from a Socialist Paradise? Sooner of later you run out of OPM

Rob Dawg said...

Chicago is literally taxing the productive class out of the state. If they were geographically isolated like CA it would be easier for them to keep the victims still while jamming another tap into an artery. Ask Oregon about being too close.

Rob Dawg said...

Mish has dozens of articles on Chicago and Illinois. Recommended.

Rob Dawg said...

Let's see. Obama's home. Virulently anti Trump and anti Republican. The terms of the Federal bailout are going to be brutal.

UMDan said...

Not good news if you're hoping that high paid coal mining job is coming back -

"Solar power forecast to shut down coal plants faster than expected"

http://www.chicagotribune.com/bluesky/technology/ct-bsi-blm-solar-power-coal-plants-20170617-story.html

And they are calling our erstwhile lawmakers back to Springfield to try to get a budget in place, and its only costing us IL taxpayers $50K a day to have their lard asses sit their and do nothing.

Outside of Chicago and some other locales the state is more Trump leaning that one might think, not that it matters much.

Cinco-X said...

Maybe they could raise money by selling tickets to the "negotiations"...

Cinco-X said...

http://nypost.com/2017/06/16/the-real-answer-to-the-democracy-killing-administrative-state/

To the extent that rule-making is taken out of the hands of the politicians and placed in the hands of a priesthood of expert regulators, we’re no longer a self-governing people or a country of laws and not of men.

Rob Dawg said...

They have do do only one thing and it is the one thing they will not do. Pension reform.

I know all about the power imbalance in the state. Chicago plus misc.

My kid sometimes consults in the south with agriculture research questions. Makes jokes about a steak dinner. Tall beer. Salad is a quarter head of iceberg lettuce and four beefsteak tomato quarters. Ranch instead of Italian special request. Petite cut means it doesn't hang over the plate. Like CA Central Valley.

Rob Dawg said...

New world where the Post carries more weighty and relevant content than the Times.

Cinco-X said...

Check out that huge swath of red in the Central Valley

Cinco-X said...

How would reporting that hello there banks? They're probably hedging those potential losses on the banks of pension funds as we speak... How bad is calpers exposure?

Cinco-X said...

Rob,
Are you coming East this Summer?

Cinco-X said...

Ack!!! Help the banks and backs of pension funds

Rob Dawg said...

Just starting "First Vacations". Might do a foliage trip.

Just got back from easy adventuring in the 115 heat. Ethel M chocolate is a quick tour but neat cactus garden.

The region is mostly recovered. Outlying area has lots of not occupied space either prepared lot or empty building.

Lawyerliz said...

Hub sez, When do the Natural cycles.turn to cooling?

LBD said...

124F in Bulhead/Laughlin today. Normal for there and gets even hotter. Nice 80+ day here in the mile high city. :)

Lawyerliz said...

Good morning.😀 woke up too early.
So, don't wakey.
.

Lawyerliz said...

House went up another 100! $!

Lawyerliz said...

It has gone up 11k $ since I got the Zillow app.

Lawyerliz said...

I think my step brother in law lives there
Poor baby.

Lawyerliz said...

Hey Dawg, what do you think about the rush to get the health care bill through before our "representatives" have read it?

Rob Dawg said...

It's a health insurance management bill and the insurance management hands are all over it. People won't be healthier and it won't be cheaper. Changing the carpet so the elephant in the room is less obvious.

LBD said...

Good Morning!

Governement is always helping you out of your hard earned money.

Cinco-X said...

If you get the paid app it goes up even faster...

Cinco-X said...

What did you think about it the last time?

Cinco-X said...

Word

Lawyerliz said...

Hahahahaha.

Lawyerliz said...

Well, I would be in bad shape indeed if I had to pay for everything. My Glacoma Drug has no generic, and medicare doesn't cover it, and it is quite expensive, bot everything else is free or very reasonable. Blue Cross/BC is the back up. If the medicare age was reduced to 55 and reduced another year every year until 55, plus the Repubs bill, it might be ok. The older are sicker and the insurance companies would be freed of that. Keep young people on their parents' insurance til 28. And you get one pre existing condition

Or, single payer. Best of all.

Lawyerliz said...

Until 50

LBD said...

What ever happened to being a grown up and money was for responsibilities and not all fun coupons?

Rob Dawg said...

Independent self supporting productive adults tend not to vote for an ever larger State.

Cinco-X said...

https://www.universetoday.com/136080/aerospike-engine-considered-shuttle-never-flew-thats-change/

“By sending the Demonstrator 3 rocket in space using a super cold engine, with only 250 °C instead of 3500 °C in the reaction chamber, paired with the aerospike technology, we are going to demonstrate the impressive potential of the aerospike.”

Running cooler is nice because it obviates the need to build rockets out of Unobtanium...

Cinco-X said...

http://labblog.uofmhealth.org/lab-report/how-to-stop-lurking-toxoplasmosis-parasite-target-its-stomach

...in people with weak immune systems or pregnant women, the infection can cause problems immediately or after cysts awaken, damaging the brain, eyes or a fetus they carry. Even healthy people can experience repeated retina damage if the parasite dwells in their eyes. Some evidence even links it to mental illness.

Hmmm...
Liberals prefer cats,
Cats carry toxoplasmosis,
Toxoplasmosis may cause mental illness...
Just sayin'...

Lawyerliz said...

Virtual no uninsured individual can pay for medical care the way it stands, no matter how productive, and some of them can't either. Back when Paine and Patrick Henry were writing, Dr's could set a broken bone, knew about some Herbs that worked knew little about hygene etc. So many died so young.
They drank a lot possibly because of pain and ubtreatrd dental issue. You can have it.

Lawyerliz said...

Dawg prefer cats, therefore Dawg is a liberal.

Rob Dawg said...

So liberal I'm damn near a Californian.

Rob Dawg said...

California Piwer has declared a "flex alert" meaning some of the most expensive energy in the nation isn't expensive enough to be reliable.

Cinco-X said...

Is reefer legal in FL yet?

Cinco-X said...

Pretty sure it was the local barber that took care of such matters back then...

Cinco-X said...

Can't they just increase gas taxes to pay for it?

Rob Dawg said...

There is a line item charge on my Edison bill compensating them for the costs and lost profits for a nuclear plant they never built and would be retired by now. CA is running out of things to spend gas tax money on except roads of course.

Lawyerliz said...

Somebody should sue.

Cinco-X said...

https://finance.yahoo.com/news/amazon-least-one-fed-official-181004682.html

News that rocked the retail world last week is coming at just the wrong time for U.S. central bankers already puzzling over why inflation is conspicuously absent.

Lawyerliz said...

Rumors Spicer s days are number. At what point will nobody work for him?

Lawyerliz said...

Him is Trump, not Spicer.

Lawyerliz said...

Do the Chinese pay cash for their houses? Did they ever?

Rob Dawg said...

The horrible thing is that china has both weak banking regulation AND a shadow banking system. People with phantom appreciation/equity will cash out equity and loan it to relatives who will call that their down payment and repeat. A margin call in Chinese real estate will be felt across the globe.

Lawyerliz said...

Oooo-ooooo

Regulation good?

What to do?

Rob Dawg said...

Do? Nothing. And by nothing I mean stop suspending GAAP & FAS Regs.

Doing something would be requiring lenders to hold loans for seven quarters and 20% of all their originations on a maturing basis to term.

Rob Dawg said...

Looks like Chicago/Illinois have reached the "Golden Bear Chit" stage like California a few years back except with no resession to blame or recovery to save them.

Lawyerliz said...

Hahahahaha Never happen. But.you knew that. Why are so many willing to have fiscal suicide visited on others and maybe themselves, for a little temporary advantage? A Darwinish pox upon them.

Rob Dawg said...

Handel wins GA-6 giving the Dems another serial loss. This keeps up and they might suspectva pattern.

Cinco-X said...

'night y'all

Rob Dawg said...

Decaying infrastructure:

http://www.foxnews.com/us/2017/06/20/baltimore-steam-explosion-2-hurt-in-blast-near-camden-yards.html

Cinco-X said...

Hmmm...I wonder where Mary ended up after the demise of HCN?

Lawyerliz said...

I don't.

Lawyerliz said...

She wasn't even fun to argue with.
Good morning.😀 all.

Cinco-X said...

Anyone stop over in Mudville to gauge the mood?

Lawyerliz said...

Not me.

Cinco-X said...

https://fivethirtyeight.com/features/where-can-democrats-win-georgia-6-ossoff-handel/

Meanwhile, Democrats are already engaging in a series of recriminations about why Ossoff faded down the stretch run in Georgia, and whether they should have poured more resources...

Lawyerliz said...

Am track being cut by trump. People protesting for various reasons, but nobody was suggesting that ticket prices be raised by one cent. How about a raise merely to close the gap by half. If.theY are so enthusiastic they should be willing to pAy.

LBD said...

Good Morning!

Hot today maybe 100F.

Am Track is just another let some one else pay and leave my fun coupons alone!

Walt Tucker said...

Property taxes here in Chicago are going up 10% again this year and will go up another 10% next year. Yeah, pension fund reform will probably happen sooner than later, but steps are being taken to match revenues to spending this year.

Walt Tucker said...

Major cities pay a lot more in taxes than they get in benefits. If we got as much as we pay, I wonder how much difference that would make. How about getting back some of the money we paid in previous years, (lots of tax deductions are carried foward...) but got less spent on our city and state? I suspect that would be quite a lot of money.

LBD said...

Stoped at the TESLA showroom and they had 3 cars. Poor young kid clueless as usual had never heard of the Isle of Mann motorcycle TT event and didn't know E Bikes competed. Blank look when I suggested Elon could have captured the average persons interest with a TESLA motorcycle. He like he others doesn't own a TESLA. Rich guys toy with tax incentives.

Rob Dawg said...

E-cycles are such an obvious entre. That's how Honda got started.

LBD said...

Honda was an amazing man. I think he started making piston rings. MIss the old days of garage inventors, they are about all gone.

Even a TESLA sales kid could affor a E-Cycle. Tax incentive would have flooded the market and sales would lead upwards to a car. IMO