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Bank Of Canada Slams Sudden Optimism
Someone needs to up the Kool Aid consumption of Bank of Canada staffers:
- 21 Jun 2010 15:29 BST *DJ BOC: Overall Level Of Risk To Financial Stability Has Increased
- 21 Jun 2010 15:29 BST *DJ BOC: Risk Of Another Period Of Severe Stress In Financial Markets, Global Banking Sector
- 21 Jun 2010 15:29 BST *DJ BOC: Steps Taken In Europe In May Fall Short Of Lasting Solution To Fiscal Woes
- 21 Jun 2010 15:29 BST *DJ BOC: Countries Need Realistic Plans To Achieve Sustainable Fiscal Positions
- 21 Jun 2010 15:29 BST *DJ BOC: Europe Fiscal Woes A Risk To Timely Resolution Of Global Imbalances
- 21 Jun 2010 15:29 BST *DJ BOC: More Flexible Exchange Key In Resolving Global Imbalances
- 21 Jun 2010 15:29 BST *DJ BOC: Sees "Transitional Challenges" Form Implementation Of Bank Capital Rules
- 21 Jun 2010 15:29 BST *DJ BOC: Downside Risk To Canada Financial System From Global Downturn Has Risen
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Slammed, bitchez
You forgot this part:
21 Jun 2010 15:29 BST *DJ BOC: Purchasing More Gold and AAPL Stock
Yup,
RBC and Co. have been scrambling around the Middle East for a while trying to get the physical.
i've been waiting 3 weeks for a maple. central fund will get it's newest issue filled in about 6 mos. russia buying can and aussie dollars! i would say for buying gold on the qt.
2 of the last 3 orders I have mailed in, have been LOST.
(USPS Priority,Certified,Sig Req'd.)
I am thinking something is going on.So, I have lost my buy price, and have to wait 90 days for Cashiers Check Funds to be put back into my account.
Wire Transfers folks..........appears the USPS is being played.
This has really pissed me off.
Hey, didn't Leo use the BOC as an example of bullish outlook?
BOC = central bank
NBOC = private bank
Leo forgot that Bank of Canada Governor Mark Carney (Formerly of Goldman Sachs... who also assisted in the Russian collapse and asset grab BTW...) was appointed by geniuses Prime Minister Harper and Minister Flaherty both complete scumbuckets.
Mark abandoned his extremely profitable Goldman gig to 'serve' the people of Canada for a pitance in comparison. He is either extremely civic minded or up to no good. You decide.
The choice was criticised when it was made as his central bank qualifications were sub-par when compared to the other candidates.
I do know what I am speaking of as I have met personally with those who worked directly under his predecessor Dodge from other business relationships.
Carney's predictions have always been extremely rosy and not based in any kind of reality. To see this now means he knows (probably from his Goldman buddies or perhaps Ben and Timmy) that things are going to deteriorate quickly from here on in. He needs to hedge before he loses his credibility and his job by changing the message in advance.
This is very bad news.
This is the truth and I am ZerO
Might I propose we drop 100 Honda Civics from very high altitude on his residence and if none hit the house then the Gods have determined that he does not attract Civics and is not civic, but a scumbucket?
Let's leave civics out of this shall we... I am clearly against violence to fuel efficient vehicles!
Let's conduct the same experiment to either determine the existance of God or his predisposition towards Ex-Goldmanite central bankers and use Hummers instead as they soon will become obsolete.
Since no doubt one test will prove inconclusive as to the determination of either, this experiment may be needed to be repeated elsewhere on the planet. If still inconclusive we shall reassess the design of the test.
One does not release such bad forecasts on such a rosy day in the markets.
Best time to release it. Market couldn't care less about statements like these on a day when guys like Joe LaVorgna are calling for 1375 on SPX by EOY.
Say what you will about Harry Wanger... At least he knows the difference between "Couldn't care less" and "Could care less..."
Well at least there is one realistic central bank on the North American continent.
Shocking, just shocking, given that the BoC is run by--what else--another GS alumnus.
well he's selling bad news in a rising market .
at least he learned something at gs
he has to be able to say," i told you so", when canada's house of cards collapses.
Quite possibly. The real estate bubble reinflated in Canada after it looked like it might burst. Now the pin is making a second pass at the balloon. The bubble isn't everywhere, but a number of major cities (Vancouver, Calgary, Edmonton, and Toronto) are in the seriously unaffordable range. There is also a false perception that mortgages in Canada were managed far more responsibly than in the US.
Agree about the housing bubble (that HASN'T popped) but to say our banks weren't more fiscally responsible than yours is bullshit.
1% teaser rates? ARMs? Balloon mortages, cash-back mortgages, easy-money mortages?
Go into a Canadian in 2008 and ask for one of those and they'd laugh you out. The lowest i heard personally was of a 5% FIXED rate mortgage with 5% down. Today its closer to 20% down, and im happy to say i hear the same of the States. At least money down wise, im sure some similar pressure tactics and refin's are still being used.
Zero,
"and im happy to say i hear the same of the States"
Too late now, we have so many empty,and foreclosed homes we could move all of Canada into them, and have spares.
The county I abide in, for the last 3yrs, had more new residents than any in the state of Texas, and the median income for the county was 2x's+ over the rest of the states 253 counties.
Now, latest news, +41%Foreclosure rate over 2009.............
Oh please! CMHC. 40-year amortizations with no money down. ARMs, effectively, because there's no such thing as a 30-year mortgage in Canada (which is actually where I currently reside). Very low interest rates that propped up the bubble. Rampant speculation on condos.
Sure, maybe Canadian banks were a bit more responsible, and the behaviour here wasn't quite as egregrious. And religion is creeping in (no more 40/0's, and BoC hiked 0.25%). But the horse is gone.
Agree about the housing bubble (that HASN'T popped) but to say our banks weren't more fiscally responsible than yours is bullshit.
We have variable rates that will reset when people lock in (ARMS)
We have 40 year, 0 down mortgages
Banks were giving out HELOCs like free candy on Halowween without even getting appraisals on properties. I know many homeowners that are underwater. It's only a matter of time.
Also, the banks aren't taking on any new mortgage risk (no one buys without CMHC anymore). They package everything and sell it to CMHC MBS, and CMHC sells it to other investors with the full backing of teh Canadian tax payer are mortgage bonds.
What incentive is there for the banks to ensure they are making prudent lending decisions when they sell all the risk to CMHC and keep the spread???? Fanny Freddie anyone?
The fact is that Canada has among the most financially sound banks on the planet.
"For the second year running Canadian banks have scored the top spot in Moody’s annual ranking of banks around the world, ahead of Singapore and Hong Kong.
Sitting well below Canada are former behemoths such as the United States at number 24 and Britain at 30. At the bottom is Kyrgyzstan, just below Iceland.
Published in September, the Moody’s report ranks the once-powerful U.S. banking system in 24th spot, between Italy and Mexico.
Think tanks and experts of just about every stripe been expounding on Canadian banks, most notably the World Economic Forum, which declared last October they are the world’s soundest."
http://www.financialpost.com/story.html?id=2083313
The US has a foreclosure pandemic, NOT Canada.
Canada's tax code does NOT allow mortgage interest deductions for your primary residence, therefore, the goofy ARM, Sub-Prime, Alt-A mortgages do not exist in Canada, as they have no market.
"The fact is that Canada has among the most financially sound banks on the planet."
I don't know what you call that, but I call it "damning with faint praise".
Moody's? The clueless twats who rated all that MBS stuff triple-A?
The World Economic Forum? The clueless pricks who caused the current mess?
Foreclosures in Canada aren't here yet because the bubble has barely started to burst. The first signs of it, more listings and longer times on the market, have just started to appear.
... dude, I am pretty sure the bubble burst almost 2 years ago ... I guess you weren't paying attention !
+1 breezer
Irresponsible moves by the BoC (5% or no money down, 1% variable mortgages, new home buyer programs, free money for the banks) have inflated the real estate bubble (prices leveled off late 2008 and exploded 20% in 2009) in Canada. Multiple leaks as we speak... about to spew all over the fabled Canadian economic miracle!
Imagine. Sounds like the truth, eh?
Plus, HW, I think AAPL is one of the 25 stocks blessed to be traded by the HFTs (C, GE, BAC, IBM, etc.).
Amen on AAPL. That's my market indicator. The minute that turns red (if it ever does again) that's the time to jump in short SPX with all your ammo.
GOOG may lead AAPL and QQQQ on the way down.
Already truned red...
As the ES rallies higher on light volume.
Same shit, different day.
If the old adage of "don't fight the Fed" was true when they only managed interest rates, why am I fighting the Fed when they directly manage the stock market?
Amen, brother.
Exactly.
I think learning about all the problems going on in the world has actually made me fare worse in the past year
ZH should also post actually optimistic posts when they are legitimately positive so that we get both sides of the story. Unless the world is 100% going in the crapper, every article should not be a "the world is going to end" article.
In fact ZH is so pessimistic comments usually get junked when they present a different side of the story. Guaranteed my comment is junked.
You make a good point. BTW, I read about a fund manager who accurately foretold the crash of 2008 (I think he ran the FPA income fund). ANyway, he was spot on, all the way through. He was early in readjusting his fund. He was selling Fannie and Freddie when no one else thought to. His reward? Clients dumped him because of below par performance. Except, happy ending, his fund outperformed all peers and indexes (in real terms, he made money) during 10 year time frame. Good investing works, but it's hard to stick to your (our guns).
Well, don't get too carrried away. This rally will only continue until HarryWanger flips back over to being bullish. Then, SELL SELL SELL!
Harry ... you flipped on AAPL ... right? Covered your short and went long?
I think we all recognise that trying to beat a fascist stock market intra-day or week is pure folly. This is a game that will play out the way they want it to including all the games like plunging markets to get their legislation made into law and panicking the public (all those on food stamps at least!) into the loving arms of the state. However, this does not mean we should not trade the big picture and protect ourselves. Contrary to their wishes they can not control where this will end up. Sorry it's already out of the can and they are running out of time. They are well aware that this will end in utter collapse and are merely managing it in a way that will totally strips the middle class of 50 years of hard work in order that there be no rival to the making order out of chaos.
This is not the end of the world but it is certrainly the end of something old and the start of something new.
Bull-Market.. you are correct - in reality the only asset of value that any of us has is time (you'll understand that when the Dr. gives you the terminal news). The sun will rise tomorrow - you're healthy, your kids are healthy - that plus three meals a day and a roof over our head - this entire crazy money chase is madness.
Check out this BS from Bloomberg (goosin' the bull):
http://noir.bloomberg.com/apps/news?pid=20601087&sid=aa605imZYiNU&pos=3
Anyone else notice that Bloomberg recently stopped listing the price of gold? At least it's no longer on its home page.
That sums up Mike Bloomberg..you know the bloke that wants to take away the First Amendment.
Mike you're on the list.
It is still displayed...
i do wish i'd checked before raging about that scumbag!
Where?
http://www.bloomberg.com/
Tyler, you seem to miss the fact that Kool-Aid is in deficit supply - mostly due to the demand requirements at The Market Ticker - and it is just not that easily obtained.
Hey, CFTC, where the hell are you bunch of worthless taxpayer-paid FRAUDS? Is this NOT a commodity?
BLAME CANADA! BLAME CANADA!
http://www.youtube.com/watch?v=SW_N81YtcRU&feature=related
Sorry, couldn't resist.
Now that the banks in Canada are positioned to 'insure' the housing bubble, you can't possibly have a rosy outlook.
Sounds just about right to me.
Oh please, the Financial System Reviewis excellent but it was written PRIOR to China's latest move. Watch, in six months, liquidity and global risks will decrease.
Once a bulltard, always a bulltard.
I'll let you in on a secret, Leo. China's "latest move" is not a move at all. Like everything else orchestrated by the FED....eeer, the G20 I mean, is an illusion. It's coordinated euphoric buzz will soon wear out and then the sovereign debts issues take front stage again.
The problem is, Leo, they are running out of illusions. Reality has a way of eventually asserting itself.
Yes liquidity will reduce and any risk of being paid will be reduced as well.
I know he can get the money but can he collect the money.
http://www.youtube.com/watch?v=LnLDMqPBeKQ&feature=related
Good lord Leo...
How is China unhooking their currency bra from the US dollar going to improve things. At this point the chinese are doing it because the USD is a lead life jacket. It only makes sense for them to strategically move off of the USD peg so they don't sink like a stone and start to recoup the 19% inflation.
oops - comment moved to Brown Bros. story
They're just highlighting the central banks' position for the upcoming G-20 meeting.
Et tu Canada...poor bennie loosing support for his ponzi scheme
The CPTB are annoyed that despite going from being called a token third world economy by the WSJ in the 90s to being the healthiest G7 economy by the end of the naughts it seems to have all been in vain as the ROW (rest of the world) is going to take us down regardless proving that good guys finish last.. or at least they go down last.
Take off! To the Great White North! Take off! It's a beauty way to go. TAKE OFF! YOU. HOSERS.
Whenever they say 'take off' they really mean to say f* off. Didn't you figure that part of the Doug and Bob Mackenzie movie out yet?
Take off eh? Any hosehead knows that! And you don't need none of those fancy lookin' stars on ZH. So if I wanted to say fuck off I would say it.. But "take off" is much more polite eh?
Have a good one.
I resemble that remark.
Major Bubble forming in Canadian Real Estate
Since 2003 the average house price in Canada (before inflation) has increased at the staggering even death defying annual rate of 6.5%.
May 2010 average price $346,000
May 2009 average price $319,000
May 2007 average price $314,000
May 2003 average price $220,000
Source: CREA.ca
__________
The comments about a real estate bubble in Canada generally propagated by permabears a la Rosenberg, Mish, GreaterFool (aptly named) et. al. along with members of renters anonymous are mostly light on basic data like the change in the average price. (granted to generalize about a country with 33m people strung out over 3,000 miles of frozen tundra is not ideal)
There appears to be this need to compare the Canadian real estate market to the worst examples of the US, think CA, FL, AZ. The reality is that the bubble that formed in those markets had dynamics that did not and do not exist in Canada. Is the Canadian economy in great shape, no. Is its housing in a bubble, well I guess if you consider 6.5% annual growth before inflation to be a bubble than I guess Canada is in a huge real estate bubble.
Those wacky CIA guys and their 10 safe houses per emloyee.