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Guest Post: Mark Carnage

Tyler Durden's picture





 

From John Aziz of Azizonomics

Mark Carnage

The greater story behind Mark Carney’s appointment to the Bank of England may be the completion of Goldman Sachs’ multi-tentacled takeover of the European regulatory and central banking system.

GS1

But let’s take a moment to look at the mess he is leaving behind in Canada, the home of moose, maple syrup, Jean Poutine and now colossal housing bubbles.

George Osborne (who as I noted last month wants more big banks in Britain) might have recruited Carney on the basis of his “success” in Canada. But in reality he is just another Greenspan — a bubble-maker and reinflationist happy to pump the banking sector full of loose money and call it “prosperity” before the irrational exuberance runs dry, and the bubble inevitably bursts.

Two key charts. First, household debt-to-GDP.

household-debt-to-gdp-chart-canada

Deleveraging? Not in Canada.

The Huffington Post noted earlier this year:

Household debt levels have reached a new high, increasing the vulnerability of average Canadians to unexpected economic shocks just at a time when uncertainty is mounting.

 

Despite signs that Canada’s economic recovery is fizzling, data released by Statistics Canada Tuesday shows that the ratio of credit market debt to personal disposable income climbed to 148.7 per cent in the second quarter, surpassing the previous record of 147.3 per cent set in the first three months of this year.

Second, Canadian house prices:

2001-after-years-of-moving-sideways-home-prices-took-off

Famed analyst Jesse Colombo recently wrote:

Booming commodities exports and skyrocketing housing prices are encouraging Canadians to spend far beyond their means, while binging on credit, mimicking their American neighbors’ profligate behavior of six years earlier. (They’re thinking, “Canada is different!”) RBC Global Asset Management’s chief economist warns that Canada’s record household debt could “spell its undoing,” while Moody’s warns that Canadian banks face significant risk due to their exposure to overleveraged Canadian consumers. Maybe things really are different in Canada, where a group of under-21-year-olds got caught by the police for racing $2 million worth of exotic supercars, including Ferraris and Lamborghinis. Or not.

The age-old misperception that this time is different, that Chinese investors will continue to spend millions on crack shacks in Vancouver, that an industrial boom in East Asia will continue to support demand for Canadian commodities, that Canada’s subprime slush isn’t vulnerable, that hot inflows from capital rich low-interest rate environments like Japan and America will continue forever.

In the short term what is going on is that the ex-Goldmanite Carney has pumped up a huge bonanza of securitisation and quick profits for big banks and their management who are laughing all the way to the Cayman Islands (or in Carney’s case, Threadneedle Street). Once the easy money quits flowing into the Canadian financial system from abroad, defaults will begin to accumulate, cracks will quickly appear, and Canada will spiral into debt-deflation. Taxpayers in Canada (and in other similar cases like Australia) may well end up bailing out the banks profiting so handsomely now, just like their American and British and Japanese cousins.

The appointment of Carney is a disaster for Britain and a disaster for the Bank of England. Carney has already singled out Andy Haldane for criticism, an economist at the Bank of England with a solid understanding of the dynamics of complex financial systems, and a champion of simple and clear regulation. 

In a hundred years, people may be taking out zero-down mortgages against building geodesic domes on Mars or the Moon, and flipping them off to greater fools for huge profits. Because this time is different, right? And another crash and depression will follow.

 


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Sat, 12/01/2012 - 12:20 | Link to Comment lolmao500
lolmao500's picture

And nothing will be fixed since Harper the bankster neo-con shill is in there.

And no real opposition/party is there to change things.

But the biggest danger is that people REALLY think that things are different in Canada.

Sat, 12/01/2012 - 13:13 | Link to Comment jekyll island
jekyll island's picture

Zero down on geodesic moon domes? Where do I send a check?

Sat, 12/01/2012 - 16:00 | Link to Comment Zer0head
Zer0head's picture

first off citing the Huffington Post borders on blasphemy why not just quote Henry Blodget or Wikipedia

the chart that shows house prices is interesting, is that median or average, is it inflation adjusted?  Regardless I think if you were to superimpose for example a chart depicting California house prices (CA is similar in size to CA and has a good mix of urban and rural)  hmmm  a chart that shows California house prices from 1980...  I wonder how it might look if superimposed on the chart you have supplied above.

My guess is that it would have a similar look except that there would be a giant penis like erection in and around 2006 on the California chart far exceeding the more flaccid Canadian chart. I would even speculate that current California prices are simialar to those in Canada.  I have searched Huffington Post but could find no such chart so decided to slum a bit at the stlouis feds site 

bit.ly/U8tKUw

 

then you get to thinking about various CA markets like the OC where the avg price today is $460k, Santa Clara $560k, I mean damn you try and buy a dump in La Jolla, Del Mar, Westside LA, Coronado etc etc and even a Real Estate agent from Vancouver would blush at their 7 figure current averages.  

Now as for the Household debt issue in Canada, this is what Rosie had to say a few weeks ago

1) Canadian debt/income ratio isn’t as bad as it looks. Because Canadians pay for their health care through their taxes, their disposable income is distorted relative to the U.S. In terms of personal income, the ratio is actually closer to 118%, rather the scary 165%.

2) Canadian household debt relative to assets (19%) and net worth (24%) is below prior peaks of 20% and 25%, respectively. Rosenberg estimates Canada would need to see a 20% drop in the housing market to get net worth/income ratio down to the U.S. level.

3) Canadians have more equity in their homes — 69% of the value compared with 43% in the U.S. “This equity gap is a prime reason why Canadian household net worth/income ratio (at over 500%) is some 35 percentage points above U.S. levels,” Rosenberg writes.

4) Canadians are better able to service their debts. Canadian wage growth at 4% a year is about double what it is in the U.S. — a rise that pretty much matches the average interest rate they are paying. Meanwhile, debt growth has slowed to its slowest in a decade — showing that balance sheets are improving “without the painful deleveraging that has occurred south of the border.”

“To be sure, if the Bank of Canada feels compelled to raise rates that would be a different matter, but that is a long way off,” he said.

5) The debt-servicing ratio in Canadian households is now just over 7% — a level it has only been below in the past 15% of the time. So even though Canadian interest rates are 75 basis points higher than in U.S, it is not hampering our ability to handle debt.

http://business.financialpost.com/2012/10/30/five-reasons-canadas-househ...

Sat, 12/01/2012 - 16:29 | Link to Comment prains
prains's picture

The ticking time bomb is Canada's version of Fannie Mae called the CMHC, it now sits on over 500 Billion of Mortgage debt where as pre Sharter years this amount was 30 Billion. Canadians don't have 500 Billion, nor do their Banks. If that blows, the Maple Leafs will be for sale and they'll throw in Quebec for free.

Sat, 12/01/2012 - 17:06 | Link to Comment CPL
CPL's picture

There have been many recalls on Maple Leaf products in the past. 

 

Any Maple Leaf products, including their fans, may be returned to a local Loblaws, Superstore or Sobey's for a full refund during the hockey strike in preperation for a team that can skate, maybe pass a little and figure out how to place a small rubber object in a net.

 

ERGO, Go Habs, Go Devils.

Sat, 12/01/2012 - 19:59 | Link to Comment Matt
Matt's picture

And yet somehow, the Leafs are one of the most profitable sports franchises in the world.

http://www.forbes.com/nhl-valuations/list/#page:1_sort:6_direction:desc_...

Sun, 12/02/2012 - 09:21 | Link to Comment Pinto Currency
Pinto Currency's picture

 

Canadian banks received bail-outs comparable to those in Europe and the U.S.

The Bank of Canda, Canadian banks and the Canadian government dumped Candian bank mortgage trash on the CMHC and then they all lectured the world about their rectitude:

http://www.policyalternatives.ca/publications/reports/big-banks-big-secret

The name "Carney" (a person who works at a carnival) is most appropriate.

 

Mon, 12/03/2012 - 03:14 | Link to Comment TruthInSunshine
TruthInSunshine's picture

Some claim I tend to have anti-Rosy Glasses, but Canada's currently in a plateau of an Australian-like housing bubble that's as irrational as any, yet has resisted "popping" thus far because of debt-junky friendly policies of an amenable fractional reserve central bank and parliament, along with a resource-driven boom (see Alberta & Calgary) that's quite long in the tooth, bitchez (whereas Australia's largest trading partner is China, Canada's is the U.S.; Canada & Australia have incredibly similar economic structures and patterns of trade, especially on the export side of things).

By the time Canada's house of housing cards comes crashing down-- and it will-- Mark Carney (who David Rosenberg apparently has a ginormous man-crush on) will be on the "other side of the pond," drinking earl grey tea & eating the finest kidney pies in all of Britannia.

Vancouver has a pretty frothy real estate market that's being supported by the B.C. Bud grow house operations (soon to be killed by liberalization of mary jane laws all over the U.S.) and very intensely targeted hyping of "they aren't making more of this precious commodity 'housing' " to asians outside of Canada who are looking for places to dump their converted paper currencies into as an "investment."

Also, Toronto's real estate market is highly dependent on the banking/financial services sector, which will ultimately take a big shit when Canada's monetary mavens realize they need to thusly join the race to debase lest their manufacturing AND commodity sectors (in an era or massively declining demand ) get decimated (this has already begun in manufacturing; as just two examples, see Carlos what Ghosn & Sergio Marchionne have had to say about the "competitiveness" of Canada's automaking sector, along with global automakers' views on the "relevancy", and negotiating (non)leverage of the Canadian Auto Workers union.

Finally, for all of those who praise people like Mark Carnival Barker, such praise is quite premature. If people think that the U.S. is on an unsustainble path in terms of entitlement spending as a % of real domestic GDP (where GDP is far more relevant than broader GNP), yet who somehow believe Canada has more sensible, sustainable policy in this regard, they clearly have been eating too much gravy smothered poutine and wasted too much time at the Canadian Ballet. If one thinks the U.S. tax structure is crazy, Canada's is that multiplied by batshit (or bath salts).

 

Sat, 12/01/2012 - 17:22 | Link to Comment Zer0head
Zer0head's picture

actually the number is $575b up from $250b or so back in the early 2000s they are capped by law at $600b thus the legislation earlier this year to make mortgages tougher to get (not that it was anything like  the maddness of subprime)  I've been reading for at least three years how Canada is going to implode. I would suggest that a 50% decline would put it back to where dimMish, GarthTurnip et al were calling a top.  Vancouver has had a significant correction in recent months but compare some of the areas around West LA, San Diego or the Bay area to Point Grey, Shaughnessy etc ditto for Central Toronto.

To someone looking at this from bumfuck AZ or FL or their mom's basement in some desolate housing tract in the mid-west, the prices seem outrageous but from Corona Del Mar a move to Vancouver would leave cash on the table.

Sat, 12/01/2012 - 18:10 | Link to Comment bankerbackbacon
bankerbackbacon's picture

As a Canadian who lives well  in Vancouver, a lot of people don't understand the dynamics of the housing market. It is a little bit inflated but its also unique.

Toronto, Vancouver, Montreal, Calgary and Ottawa have completely different housing prices for different reasons. They are also, as far as cities go the best combination of city life and quality of life.  Joe the plumber can still get a house and a few yards of land in Ottawa and there are jobs (which is more than we can say for some American cities). 

Vancouver has no place to build, we are on the Tokyo model and we still have tons of minorities coming here to fill in for the lack of reproduction happening with white mulitgenerational Canadians (anti child government, child poverty stats not nice). All of these immigrants want to live in greater Toronto or greater Vancouver because they perceive the weather as being best and/or the economy. Vancouver is the only place in Canada where you don't get actual winter for example. It also has a lot of cache globally. The minorities (which come by the bushel yearly) bring money and we can't accommodate all of them so they inflate our housing. Toronto's housing can be explained by its climate, (relative to prairies) jobs, and wealthy immigrant influx as well.

There is no reason to think that Canada won't continue to have the best ratio of square miles per person, inbound wealthy immigrants, vast resources, quality of life, sandy oil for the Chine etc.

The inflation in relation to housing prices is a factor which I don't think is factored in well.

The debt to GDP which is a favorite stat for Canadoomers, and has started to scale back and as long as interest rate stay low (and we know central bankers are addicted to them) Canadians have the capacity to repay them.

Correction yes, apocalypse no.

Sat, 12/01/2012 - 18:13 | Link to Comment prains
prains's picture

Correction yes, apocalypse no.

 

apocalypse yes if china crashes and burns

Sat, 12/01/2012 - 19:02 | Link to Comment Global Hunter
Global Hunter's picture

125 miles northeast of Toronto and its a different world, life would continue on.  I honestly don't know what life will be like in Toronto, Montreal or Vancouver if the ATMs stopped working for a few weeks.  As the poster above noted, they are very multi-cultural and densely populated.  But in many rural areas it is cheap and there is A LOT of space.  Our major cities have been rapidly growing and changing but our rural areas amble on.

Sat, 12/01/2012 - 22:49 | Link to Comment Angus McHugepenis
Angus McHugepenis's picture

I've lived in all three. Thank fuck I got away from those cities and the chaos of working in them. I'll take my chances with a random grizzly bear or cougar attack where I'm at now.

Global Hunter: I grew up spending summers near Atikokan in Quetico National Park on a lake that was so small and remote we had to portage with our small 16' boat and 6hp outboard just to bring supplies in. It took a day just to transport and get everything set up. Ah the memories...

Mon, 12/03/2012 - 04:33 | Link to Comment TruthInSunshine
TruthInSunshine's picture

I've always tended to agree with you Angus (can I call you Angus? If not, I don't mind referring to you with the more formal Mr. McHugepenis. I don't want to be too presumptive).

Wed, 12/05/2012 - 22:44 | Link to Comment Angus McHugepenis
Angus McHugepenis's picture

Just don't call me Shirley.

Take care Mr. TruthInSunshine.

Sun, 12/02/2012 - 08:32 | Link to Comment Deliverator
Deliverator's picture

Wow. Yet another bozo trying to explain how it is somehow 'different' in Canada in general, and in Vancouver in particular.

Read carefully, SFB, the median family income in Vancouver, BC is $67,700. The median home price, not detatched single family home, mind you, no, this includes condos, townhouses, duplexes, etc., the median home price is $603,000.

It is going to end badly.

Sat, 12/01/2012 - 15:23 | Link to Comment 11b40
11b40's picture

Send a check?  What part of 'no money down' don't you understand?  ;-)

Sat, 12/01/2012 - 16:01 | Link to Comment Matt
Matt's picture

I think he wants to be an investor in Moon Bases, not a resident.

Sat, 12/01/2012 - 17:53 | Link to Comment Rogue Trooper
Rogue Trooper's picture

You listening FOOL...youse still git da Obamafone... wid da no down.... you wid me FOOL!

BTW  I just got me some real 'fly' chromes wid my EBT card as the DOWN>>>>>

/Raycist

Sat, 12/01/2012 - 13:29 | Link to Comment old naughty
old naughty's picture

Canada is not America.

Things are different in looney land.

Even if hot money flows out of this in-the-ground-resource-rich 52nd State, we still have quadrillion litres of fresh water !

 

Sat, 12/01/2012 - 13:38 | Link to Comment Seize Mars
Seize Mars's picture

Good point, but realize that Canada, USA and Mexico are all (very) in-the-ground resource rich.

It's politics that keep people poor.

Sat, 12/01/2012 - 15:52 | Link to Comment Bindar Dundat
Bindar Dundat's picture

Just like in WW1 and WW2!  The Americans and the Brits had to send the Canadians in to do the real work.  The Wanks and the Yanks  are such fucking whiners. 

Sat, 12/01/2012 - 16:22 | Link to Comment prains
prains's picture

It's actually the 1% who keep people poor using politicians as their starwmen

Sun, 12/02/2012 - 08:51 | Link to Comment midtowng
midtowng's picture

It's even worse than the article indicates. Mark Carney has more history than just Canada. Consider his track record in Russia in the early 90's.

http://www.digitaljournal.com/article/314642

These policies ended in a severe economic collapse, which just happened to profit Goldman Sachs tens of millions of dollars. In spite of their involvement in a 1.25 billion dollar bail-out of the Russian government, Goldman Sachs appears to have been betting against success.

Sat, 12/01/2012 - 12:21 | Link to Comment tooriskytoinvest
tooriskytoinvest's picture

Is This A Coincidence? Obama Calls For Additional $1 TRILLION Student Loan Bailout For His Bankster Buddies While Pelosi Said Congress Give Obama Power To Personally Lift Debt Limit To Infinity!
http://investmentwatchblog.com/is-this-a-coincidence-obama-calls-for-additional-1-trillion-student-loan-bailout-for-his-bankster-buddies-while-pelosi-said-congress-give-obama-power-to-personally-lift-debt-limit-to-infinity/

Sat, 12/01/2012 - 12:26 | Link to Comment CheapBastard
CheapBastard's picture

Mooseless recovery.

Sun, 12/02/2012 - 06:22 | Link to Comment Spitzer
Spitzer's picture

^^^Funny all the comments above are more or less saying "this time it is diffrent" hahaha

 

Guess what morons, this time is not diffrent and real estate will crater in real terms.

 

I am Canadian BTW

Sat, 12/01/2012 - 12:30 | Link to Comment woggie
woggie's picture

the beast is on the gobble
and all that matters is we're all headed for it's belly
http://youtu.be/ntmthFyaYzY

Sat, 12/01/2012 - 12:59 | Link to Comment imbrbing
imbrbing's picture

And he is going to start with you. Why this same post on every article here? Do you have any of your own thoughts you would like to express?

I ignored the first 50 of these I have seen, but sheesh.

Sat, 12/01/2012 - 13:26 | Link to Comment StandardDeviant
StandardDeviant's picture

Yeah, really.  If the conspiracy theorists are correct, and GS is so all-powerful and on such a roll, I have to wonder why the same people don't quit wasting their time in futile Internet rants and just buy themselves a big pile of GS shares already.

Sat, 12/01/2012 - 15:21 | Link to Comment Aziz
Aziz's picture

Hahahahaahahahaha!

Shareholders?

You mean muppets...

Sat, 12/01/2012 - 12:46 | Link to Comment Atomizer
Atomizer's picture

Will Taxing the Rich Fix the Deficit?

EAT THE RICH!

 

Will the American taxpayer's be seduced by another round of Central planners looting strategy?

Big Black - Ready Man

Sat, 12/01/2012 - 13:41 | Link to Comment Seize Mars
Seize Mars's picture

If we are all tired of being robbed, for us to say that it would be "more fair" to rob the "rich guy down the street" doesn't have any moral force. Why don't we outlaw robbery altogether, instead of arguing over who "ought to" be robbed?

Sat, 12/01/2012 - 14:17 | Link to Comment mkhs
mkhs's picture

Actually, I believe there are laws against robbery; yet, here we are.

Sat, 12/01/2012 - 15:51 | Link to Comment Seize Mars
Seize Mars's picture

Yes. And when I look at glaring things like Article 1, Section 10 of the US Constitution, it says "...No State shall ...make any Thing but gold and silver Coin a Tender in Payment of Debts..."

...and yet, here we are with an illegal banking system. You don't need to be a lawyer to understand. It's illegal. How does it stand? How can we get the Federal government to actually obey the law?

Sun, 12/02/2012 - 13:03 | Link to Comment mkhs
mkhs's picture

Perhaps it is time for a new magna carta.

Mon, 12/03/2012 - 08:30 | Link to Comment Seize Mars
Seize Mars's picture

Well I don't hink a new Constitution is going to work. They won't obey the one we have, obviously.

Look at the world we live in: we frantically try to pass laws to protect the constitutional rights we have? Like little "clauses" on top of NDAA so that we have a functional sixth amendment. WTF? Since when do laws supercede the Constitution?

Sat, 12/01/2012 - 12:41 | Link to Comment Canucklehead
Canucklehead's picture

The Americans can't change their banking laws and make them tougher as the global banks would move loose banking practises to London or Middle Eastern jurisdictions. Nothing would change.  With Mark Carney in London, he will be coordinating efforts to clean up the zig-zagging of banking regulation between the jurisdictions.

Haldane is carrying water for the TBTF (ex. JPM Chase).  There will be winners and losers in London.  Haldane will be a loser.  He will either tuck in his horns and be a team player or he will step aside and go on gardening leave...

Sat, 12/01/2012 - 12:47 | Link to Comment Rainman
Rainman's picture

It will be interesting to see what transpires with the loonie when the next BoC head is named.

 

 http://www.dailyfx.com/forex/fundamental/forecast/weekly/cad/2012/12/01/Dissuaded_by_Carney_Departure_and_Soft_GDP_Loonie_Looks_Uncertain.html

Sat, 12/01/2012 - 12:46 | Link to Comment topspinslicer
topspinslicer's picture

it's not what you know it's who you know

Sat, 12/01/2012 - 15:32 | Link to Comment Pseudo Anonym
Pseudo Anonym's picture

maybe:

it's not what you know it's who you know

but more likely what you know about and have on them

Sat, 12/01/2012 - 12:46 | Link to Comment zen0
zen0's picture

The Bank of Canada has warned about household debt for 2 or 3 years. Maybe they aren't in control of everybody and everything.

Sat, 12/01/2012 - 12:59 | Link to Comment apberusdisvet
apberusdisvet's picture

Fuck the Canuck Schmuck

(my apologies to French Canadians)

Sat, 12/01/2012 - 13:04 | Link to Comment hairball48
hairball48's picture

I live in a small town near the Canadian border. Canadians have been coming here to shop during the last few "boom" years. On some weekends there is(or was) a steady stream of cars and trucks with Alberta plates headed north on US 93...loaded up with stuff from the Home Depot, our Super Walmart, etc.

Personally, I'll be interested to see how  this new(ish) mall does when the Canadian economy crashes and that flow of Canadian dollars dries up. Some of us thought that the huge retail buildup in this area was stupid during the "go-go" years earlier in the decade. Questions were asked:

"Who's going to shop at all these new stores when the "old mall" was already dying with lots of empty retail space and few customers?."

Us "new mall skeptics" are about to be proved right. Now  we'll have two empty malls. Terrific planning!!

Sat, 12/01/2012 - 14:22 | Link to Comment W74
W74's picture

Do you live around Kalispell?  I've been thinking of heading out that way and setting up camp.  Would be a nice change from living here in liberalville.

Sat, 12/01/2012 - 16:43 | Link to Comment hairball48
hairball48's picture

Yeah, but keep in mind that neither MT nor Kalispell are all that "conservative" or "libertarian" anymore. Look who we have in the Senate and the Govenor's office. There is some libertarian presence but it's weak and has too many "whackjob libertarians" with whom I have little patience.

The main advantage of living here is a smaller population relative to most areas and we aren't near any major metro areas...a huge plus imo. You people living near large metro areas, especially back eastand the West coast,  are fucked when the final crackup-boom happens. And it'll be too late to move then. And you would not likely be welcome here after the crackup-boom. People here do like their weapons regardless of politics.

Many of you in large metro areas will become victims of roving gangs of the "baggy-ass/cockeyed hat", 12-30 year olds. Morons with no job, no skills, no education, nor morals, no nothing....except they still like to eat and sleep in a warm place. I can't wait :)

Hopefully, I'll be dead or a "mindless drooler", medicated to the hilt in a  VA hospital, before this area is overrun by newer folks :)

 No offense :)

Sat, 12/01/2012 - 15:51 | Link to Comment imbrbing
imbrbing's picture

Consumers love new shiny things, until they don't, then they will build a newer shinier thing. Vicious circle. Nothing but goldfish swimming around

in circles in a bowl. By the time they get around the bowl again they forget and start the circle over again. One of these times the trip around the bowl

is going to leave them with no more new shiny things and they will be wondering ..... oh geez, what happened?

 

BTW: I have a shiny thing I like too, guilty myself, it weighs about 1 troy ounce

Sat, 12/01/2012 - 16:05 | Link to Comment geminiRX
geminiRX's picture

Ohhh those Canadians......they take all the good parking spots and deplete our milk supplies....

Who knows but I think the money stream from other provinces may shrink (like BC where >70% of a family's income goes to the monthly morgage payment), but Alberta should remain pretty steadfast. I have a hard time fathoming oil going bearish with the middle east the way it is. If the middle east were to stabalize AND the world econonmy go into recession.....then sub 50 oil could be in the cards (then Alberta in big trouble).

 

 

Sat, 12/01/2012 - 18:27 | Link to Comment bankerbackbacon
bankerbackbacon's picture

"Personally, I'll be interested to see how this new(ish) mall does when the Canadian economy crashes and that flow of Canadian dollars dries up."

If the laws for cross border shopping get tightened, or there is a crash, or the CAD goes back to 60 cents US, you will see those malls turn into food kitchens for the homeless along the US side of the border.

Sat, 12/01/2012 - 13:03 | Link to Comment Bay of Pigs
Bay of Pigs's picture

Although it's just beginning, the Canadian RE bust is now underway. The Bear Mountain collapse in Victoria, BC is just one example.

On the flip side, over 90% of new buyers in Kihei, Maui are Canadian.

In other words, most don't see what's coming and will deny there are even any problems. Sound familiar?

Sat, 12/01/2012 - 13:37 | Link to Comment oddjob
oddjob's picture

The western communities in the CRD have always been shitholes.

Sat, 12/01/2012 - 15:04 | Link to Comment Angus McHugepenis
Angus McHugepenis's picture

Bay of Pigs: I forgot about the Bear Mountain project. I was in Victoria as it was just getting started years ago and had to listen to all the bullshit buzz about it. I Googled it and read a few articles due to you reminding me about it. I had no idea how far the mighty Bear had fallen.

Victoria, BC = home of the newly wed and the near dead.

Sat, 12/01/2012 - 15:20 | Link to Comment Bay of Pigs
Bay of Pigs's picture

They are even bulldozing part of the original golf course. Must be nice for those homeowners on those particular holes. The Westin Resort there must be bleeding horribly.

http://www.theprovince.com/news/bc/Radical+shift+plans+Bear+Mountain+golf+resort+Fewer+holes+lower/7547160/story.html#axzz2DpU2xRMB

Sat, 12/01/2012 - 15:53 | Link to Comment Angus McHugepenis
Angus McHugepenis's picture

I didn't see that article in my brief search. It's worse than what I read on other articles.

I never could figure out the allure of Vancouver Island (Victoria). I spent enough time there to know. Sure the scenery is nice, yada yada yada. I won't bore you with details, only to say that unless you're a government employee, a vendor of adult diapers, or useless artisan crafts, you better go somewhere else to make a living and learn how to produce things people need.

I knew several talented people on that island but all of them are somehow subsidized by gov't bennys during the winter months when tourism goes to zero and it gets too cold for the Swartz Bay ferry terminal outdoor market to operate.

Sat, 12/01/2012 - 13:16 | Link to Comment Bam_Man
Bam_Man's picture

Britain is already a disaster, with its economy completely financialized and hollowed-out. There is not much additional damage that Carney can personally cause. He will be the "lucky" guy that gets to preside over the full-blown currency crisis that they have waiting for them this year or next. He will eventually wish that he had never even heard of this job.

Sat, 12/01/2012 - 14:20 | Link to Comment W74
W74's picture

I wonder how the Afros and Pakis turning more and more parts of London into slums every day are going to take any kind of financial upheval.  Perhaps they'll demand more mosques and the legalization of rape...and the Brits will bend over and allow it to happen.  If you criticise it, of course, you'll be trown in prison for not being tolerant of others.

Sat, 12/01/2012 - 15:17 | Link to Comment Tinky
Tinky's picture

Ah, yes. The dark-skinned immigrants are at fault. Of course.

Sat, 12/01/2012 - 15:28 | Link to Comment chubbar
chubbar's picture

I don't think they are to blame but it sure as fuck doesn't help to allow a flow of immigrants (legal or otherwise) into a country that don't assimilate and proceed to use public welfare funds or steal in order to survive. When your society is sinking you plug all the holes, not just the politically correct ones. Same goes doubly true back here in the U.S.

Sat, 12/01/2012 - 15:42 | Link to Comment Tinky
Tinky's picture

Personal responsibility is always a part of the equation. But if you take a look at the broader context of how immigrants are received and treated in various countries (including the U.S.), less than stellar behavior on the part of a subset of the group becomes easier to understand.

By way of analogy, anyone who simplistically views black males in America as criminally inclined, and/or black women as welfare queens, doesn't have a clue about context.

Sat, 12/01/2012 - 16:54 | Link to Comment chubbar
chubbar's picture

What treatment of immigrants in the U.S. are you referring too? I'm not aware of any ill treatment of legal immigrants in the U.S. on any widespread basis. I'm sure there are isolated cases.

 I'm aware of the frustrations of millions of U.S. citizens, including latinos, who understand that the continued flow of millions across our borders is changing our cities and culture for the worse. FAIR has estimated that illegal immigrants cost our welfare/health care/legal system in excess of 200 billion/yr. This is more than what the president is going to get out of all the increases in taxes he's asking for as I understand it, assuming he gets what he asks. The second issue in this regard is why the state dept is issuing work visas with unemployment at an all time high, depending on what you believe the % of unemployed is. That being said, I don't have any problem with someone who goes through the immigration process and has been approved to immigrate to the U.S. It's not my position to judge the validity of their request. Some folks are persecuted in the country they've left and have pretty valid reasons for coming here. Did I get the context wrong?

Sat, 12/01/2012 - 17:11 | Link to Comment Tinky
Tinky's picture

Yes, you did get the context wrong. The distinction between legal and illegal immigrants is not relevant to this conversation (on this thread). 

People who espouse views like the one to which I originally responded are not distinguishing between illiegal and legal immigrants; they are distinguishing in a racist manner between their own ethnic group and others, and/or between themselves and those who are relatively new to the country in question.

The question of whether immigration policies are good or bad, or how they should be reformed, are separate issues.

I certainly don't believe that governments should become nannies to lazy immigrants, but the fact is that most immigrants are very hard working, and often struggle to make ends meet against all odds.

Sun, 12/02/2012 - 04:45 | Link to Comment StychoKiller
StychoKiller's picture

Open borders, or the welfare State -- pick one, you can't have both!

Sat, 12/01/2012 - 13:15 | Link to Comment No Euros please...
No Euros please we're British's picture

Economic recovery and rising house prices? I don't think Carney will have to worry about those in the UK.

No douby he'll be more concerned about protecting his bankster buddies in the square mile. And of course ensuring GS can safely short the UK.

Sat, 12/01/2012 - 13:34 | Link to Comment old naughty
old naughty's picture

Oh, good.

So you don't think he's leaving a sinking ship.

Sat, 12/01/2012 - 15:20 | Link to Comment No Euros please...
No Euros please we're British's picture

Maybe jumping off the Titanic? Guess he just fancied a change and a safe berth on the RMS Lucitania.

Sat, 12/01/2012 - 13:19 | Link to Comment Monedas
Monedas's picture

A Socialist mob out of control .... there is no downside limit to the decadence and despair their anti-life, mindless philosophy generates !   Don't forget .... today is World AIDS Anal Risk Awareness Day !  The loveliness of the Socialist filth !  Enjoy ! 

Sat, 12/01/2012 - 13:25 | Link to Comment Atomizer
Atomizer's picture

Watch my left-hand as my right-hand pulls a rabbit out of your asshole.

 

 

http://laws-lois.justice.gc.ca/eng/acts/B-1.5/page-1.html 

http://www.bis.org/about/biowrw.htm

Sat, 12/01/2012 - 13:31 | Link to Comment Clint Liquor
Clint Liquor's picture

The people of Canuckistan are willing participants. No sympathy.

How do I short Canadian MBS?

Sat, 12/01/2012 - 13:58 | Link to Comment CCanuck
CCanuck's picture

Really, willing participant???  Where do you live Clint??? Are you a willing participant of your community??

Your a Moron.

Ccanuck

Sat, 12/01/2012 - 14:05 | Link to Comment Clint Liquor
Clint Liquor's picture

It is: you are a Moron or you're a Moron.

Housing bubbles are created by PEOPLE borrowing money. Just because Banks will loan doesn't mean you have to borrow. People need to take some responsibily for a change.

Sat, 12/01/2012 - 14:41 | Link to Comment bullmarket
bullmarket's picture

You are right- people are people and most have no clue what is going on or what is right. They see RE as a better alternative to getting ahead and think they are different.

To the Finance Minister's credit, they have shortened the amortorization period, increased down payments for investment properties, reduced exposure to hel, etc. And get real docs to prove income, I believe??

Unfortunately, the biggest component, the interest rate, they cannot control as it is essentially US based and we know what's happening there.

 

 

 

 

Sun, 12/02/2012 - 00:48 | Link to Comment CCanuck
CCanuck's picture

+1 Bull you are correct. Interest rates are driving the excessive borrowing, and qulifications have been tightened, and were never really easy at any point, got a little stupid offering 40yr mortages, however still had to verify income and assets, and that was ended.

 

Sat, 12/01/2012 - 16:54 | Link to Comment hairball48
hairball48's picture

"People need to take some responsibily for a change."  Exactly right. Of course in our increasingly "United Nanny States of America" with all its moral hazard...that's hard to do.

Sat, 12/01/2012 - 18:39 | Link to Comment bankerbackbacon
bankerbackbacon's picture

Same with the US right Clint, housing bubbles are only created by ignorant people who deserve it right? Given we haven't had a crash and the US has it seems a little bit ignorant.

Then when we look at bank regulation, sub prime, predatory lending, fractional reserve lending.

Ya, they are willing clint, and they deserve it right? Ignorant tool.

When our government let foreign ownership happen, massive immigration and robbed the average Canadian of the dream of their own home. They deserved it right?

Are you sure who the moron is, have we forgetten that Private Banking in the western world is a cest pool?

 

 

Sat, 12/01/2012 - 20:07 | Link to Comment Matt
Matt's picture

Sounds like someone has entitlement issues. Citizens of a country have a RIGHT to own a home in a major metropolitan area?

I doubt anyone is claiming that consumers are solely, or even primarily, at fault. However, to say that people had no choice but to borrow more and more money to pay higher and higher prices for houses, and are not at all responsible for their choices, is a bit much.

Mon, 12/03/2012 - 02:07 | Link to Comment Toronto Kid
Toronto Kid's picture

I can empathize with homeowners in the US who have had the financial crap kicked out of them. They didn't see this comimg. But Canadians have no excuse - there were plenty of news stories coming out of the US about how much folks south of the border were suffering.

What did Canadians do? Turned the channel to HGTV, asked the bank for another 20 grand on the heloc, and went shopping.

"It's different up here!"

Sun, 12/02/2012 - 00:40 | Link to Comment CCanuck
CCanuck's picture

My Moron comment had more to do with your sweeping generalization, I am No willing participant, In fact I fight the system all I can. I rent, cause if I have to borrow money for longer than 2-3 years, to afford something then I can't afford it, I refuse to become enslaved to a Bank! I live debt-free, I rent, I save!! One day I will own property, I plan on swapping PM's for Land when the time is right. Have more and more friends doing the same too. Our system does not allow for McIncomes on loan applications. Cause In US there are Cadillacs in every driveway of the McMansion while residents are going to work for $8-$10 an hour, that shit don't happen here, minimum down payments required, some help for 1st timers, but Canadians don't get NINJA Loans. While I agree there are bubble's here, I don't think the same percentage of the population are in over their head. Again I agree that there is a shit storm headed our way, lots of people using their home as aCash Machine. Just not the same impact as US collapse, dumb fucks in the cities overpaying and underwater...However there are a lot of Unwilling participants living around these Bubbled Metro areas that are prepared, and have not borrowed just because we can, and our time will come.

Have fun Dr Grammar,,how many errors did youurrrre fine ittellect find in this post?.,Does that help you feel superior to point out grammar errors...on a blog post???? Why do you waste you're incredible talent here??? You should be editing somewhere mainstream.

I have simpathy for Good Smart Americans, trapped in a system that makes them unwilling participants. I hope they find the strength to fight back, prepare, and be able to build a future.

Your're stereo typing of Canuckistan?? and lack of sympathy, is what makes you a Moron.

Unwilling and fighting back

Ccanuck

Sat, 12/01/2012 - 16:38 | Link to Comment dogbreath
dogbreath's picture

speaking of morons.

I went to look at house in small town alberta.  It sold for low 80's in 2006 and the asking now is 100k.     That place in my opinion is worth 65ish.   There is a complete distortion of value that there are people who think their little shit box that needs to be gutted or bulldosed is worth that asking price and that someone thinks the place is worth remotely  that.   The buyers are working with  what the bank will lend them and their ability to service the debt.  The sellers all tryto find the sucker. 

Sun, 12/02/2012 - 04:53 | Link to Comment StychoKiller
StychoKiller's picture

"Some rich men came and raped the land,
Nobody caught 'em,
Put up a bunch of ugly boxes, and Jesus,
people bought 'em!
And they called it paradise
The place to be --
They watched the hazy sun, sinking in the sea." -- The Eagles, "The Last Resort"

Sat, 12/01/2012 - 14:00 | Link to Comment bullmarket
bullmarket's picture

If memory serves me correct, I think the banks was a good way to play it before. Go for it - bns, td, bmo, ry, cm - you can have your pick of the big 5. It still may be 2005-2006 or maybe 2001 or maybe. Can't recall the last good investment advice on here except just buy gold - I guess we'll see how that plays out as everything will have it's day. good luck in your shorting.

Funny thing is, the big US banks are looking to break out once again when they kick the can down the road.

 

Sat, 12/01/2012 - 16:09 | Link to Comment Matt
Matt's picture

Forget the "Canadian Taxpayers MAY bailout the banks" part. Since the CMHC is explicitly backed by the Federal Government, unlike the wishy-washy Fanny Mae / Freddie Mac etc, the government absolutely will (must?) bailout the banks if there is a problem with mortgages.

Sat, 12/01/2012 - 14:36 | Link to Comment Angus McHugepenis
Angus McHugepenis's picture

In the past 3 years many American franchise businesses are hopping the border to set up shop in Canada. Target and various fast food joints are literally Popeye-ing up here. I guess they are willing participants also. Might want to short them too.

Sat, 12/01/2012 - 13:41 | Link to Comment Peter Pan
Peter Pan's picture

With the appointment of Carney I wonder what the squid pro quo will be for those who appointed him.

BOE will no longer stand for Bank of England.

It will stand for BET ON EVERYTHING and BAIL OUT EVERYTHING

God Save the Queen

Sat, 12/01/2012 - 14:02 | Link to Comment Aziz
Aziz's picture

We're fucked.

Sat, 12/01/2012 - 16:53 | Link to Comment Yen Cross
Yen Cross's picture

3 syllables and 11 up votes! You are on to something my Friend!

Sat, 12/01/2012 - 13:50 | Link to Comment orangegeek
orangegeek's picture

Well over half of Canada's workforce are government workers.

 

And without a housing collapse, Canadian governments are already under massive debt loads. 

 

So when housing collapses because Canadian government debt issues override employing lemmings into dead end government jobs, all hell's going to break loose.

 

And there's little government cash to back the banks with the monumental piles of underwater mortgages and personal bankruptcies.

 

And when commodities deflate, it's going to be even worse.  Don't worry Canada, Australia is in the same boat.

Sat, 12/01/2012 - 14:08 | Link to Comment W74
W74's picture

Wow, we in the western world really fucked ourselves didn't we?  Oh well, maybe we can take solace in that fewer invaders will pour across our borders.  Perphaps we can even convince some of them to go home.

Sat, 12/01/2012 - 18:57 | Link to Comment bunnyswanson
bunnyswanson's picture

We can only hope we have a home, that we are not taxed out of the ability to exist on our homeland, cordoned off from our property. 

 

http://www.themaninchina.com/site/selling-out-canada-and-home-stretch-on-the-new-crown/

 

Rick Mercer's Rant - http://www.cbc.ca/player/Shows/Shows/The+Rick+Mercer+Report/ID/2301561316/

 

Business deals are being made that are taking into account everything but the impact on the citizens of the country.  Vast sums of money are being made as well by politicians while doing so.  Treason would be what most would call this 20 years ago but now that the Media has been sold as well, it's "our only hope."  Propaganda machine is working.

Sat, 12/01/2012 - 19:18 | Link to Comment Global Hunter
Global Hunter's picture

That was a great Rick Mercer rant!  He has some really really good important ones from time to time.

Sat, 12/01/2012 - 15:10 | Link to Comment bullmarket
bullmarket's picture

"Well over half of Canada's worforce are government workers"

Where did this number come from? The well over half department?

 

Sat, 12/01/2012 - 16:24 | Link to Comment Matt
Matt's picture

90% of the facts on the Internet are made up.

According to Statistics Canada Statistiques, there are 17.3 million workers:

http://www.statcan.gc.ca/tables-tableaux/sum-som/l01/cst01/econ40-eng.htm

and there are 3.6 million public sector workers:

http://www.statcan.gc.ca/tables-tableaux/sum-som/l01/cst01/govt62a-eng.htm

That includes federal, provincial, municipal, etc. according to this:

http://www23.statcan.gc.ca/imdb/p2SV.pl?Function=getSurvey&SDDS=1713&lan...

so 3.6/17.3 * 100 = 20.8%

Sat, 12/01/2012 - 18:53 | Link to Comment Zer0head
Zer0head's picture

matt,  you spoiled the discussion by introducing facts

but I would be interested in where orangegeek came up with that figure (as long as it wasn't blown out of his ass)

Sat, 12/01/2012 - 18:54 | Link to Comment bankerbackbacon
bankerbackbacon's picture

"Well over half of Canada's worforce are government workers"

 

Really? Guess this graph I provided is wrong versus your word?

http://etatscanadiens-canadiangovernments.enap.ca/en/nav.aspx?sortcode=2...

 

Lets face it, our American brothers, kinda want us to crash with them, or so it seems. But we still love them.

We still love that retarded little hegemonic kiddy country which wants to take us down with them.

Sat, 12/01/2012 - 19:29 | Link to Comment Global Hunter
Global Hunter's picture

OK but when the government funds or partially funds the construction of something, a solar energy park for example, a lot of the people employed building it are hired by private contractors.  So the percentage of people that indirectly receive a salary or a portion of their salary from government contracts is quite high.  I've heard numbers higher than 50% used if people consider all the indirect money that flows to private companies and contractors.  The paving of the roads in Ontario I've noticed is done by private contractors also for an example.

http://canmetenergy.nrcan.gc.ca/renewables/solar-photovoltaic/562

Sat, 12/01/2012 - 20:16 | Link to Comment Matt
Matt's picture

And if you count when a contractor hired by a government contract, purchases a sandwich at Subway, then you're surely talking closer to 100%.

Sat, 12/01/2012 - 20:44 | Link to Comment Global Hunter
Global Hunter's picture

Matt: Nah more like 66% :)

Sat, 12/01/2012 - 22:19 | Link to Comment bullmarket
bullmarket's picture

Don't kid yourself- they go,we go

Sat, 12/01/2012 - 13:54 | Link to Comment magpie
magpie's picture

When the appointment was announced, i already wondered what this bodes for the UK, Goldman's famous Greek style home cooked accounting for the Euro accession, or prepping for the exit and tax haven status - not really sure about that one but don't think the status quo will be maintained much longer.

Sat, 12/01/2012 - 14:39 | Link to Comment bank guy in Brussels
bank guy in Brussels's picture

Re 'tax haven status', it is interesting what is going on in the UK, re its relationship with both the EU and the US

The British establishment is rumbling against both directions ... they are trading more with the old British Commonwealth countries than with the EU now, and the Brits don't want to go under Continental-style banking regulation

UK has long been a tax haven for foreign billionaires etc who have a residence in Britain as well as in their home country ... plus the UK is ultimately sovereign over Cayman Islands etc

Banks are everything in Britain, it's not like the European Continent where we still have both farming and industry

The Brits might be thinking of something radical when the sh*t hits the fan ... UK might be thinking of cutting loose from both EU and USA ... and trying to become the new Western Switzerland

Before it's too late and all the big money ends up in Singapore and Hong Kong

Funny that investment savings are safer in Hong Kong under overall Communist China supervision ... than in the USA where they have the bribed judges helping steal customer billions in the MF Global type schemes

Sat, 12/01/2012 - 15:21 | Link to Comment Tinky
Tinky's picture

"Funny that investment savings are safer in Hong Kong under overall Communist China supervision ... than in the USA where they have the bribed judges helping steal customer billions in the MF Global type schemes"

That is arguably one of the most important, yet least known (by the broader American public) facts.

Sat, 12/01/2012 - 13:58 | Link to Comment Yen Cross
Yen Cross's picture

"Merve the swerve King" was always good for 50 pips to the downside (gbp/usd), when he opened his mouth at BoE meetings. It will be interesting to see how the markets react to Carney...

Sat, 12/01/2012 - 14:15 | Link to Comment Atomizer
Atomizer's picture

Lloyd Blankchequefein's canary in a coal mine has unexpectedly passed away late yesterday evening. This loyal GS canary grew to be a 5 year veteran, who smoked out new high risk unsecured debt obligations.  Local sources are unsure of the nature of this seasoned professional death tragedy. Funeral and burial arrangements have been provided by Goldman Sachs. Services will be closed to the public.

 

Bank of International Settlements| Goldman Sachs

Sat, 12/01/2012 - 14:30 | Link to Comment hawk nation
hawk nation's picture

I just heard obama give a speach where he states or implied all the usa needs to do is increase taxes on the rich and all will be saved. I cant believe he gets away with this and the ignorant public believes it

The collapse of the worldeconomy will be epic i think and make the great depression look like a cake walk

I still dont understand how goldman saks can be encouraging this behavior and to what ends?

Is it the old evil trading philosophy that its not enough that i make money but you have to loose money for me to feel good

Man we are living in dark times and it lookslike it willget alot darker

Sat, 12/01/2012 - 18:32 | Link to Comment bunnyswanson
bunnyswanson's picture

What Obama says and what Obama actually does, as we know, are two entirely different things.

 

http://www.asppanews.org/2012/11/26/asppa-launches-campaign-to-save-401k-plans-from-tax-reform/

 

According to data from the Employee Benefit Research Institute (EBRI) more than 70% of workers earning from $30,000 to $50,000 participate in their employer 401(k) plans, compared with only 5% who save for retirement without a plan at work. Given these plans growing importance—when families have a retirement savings account—those savings represent more than 65% of their financial assets.

“We understand Congress needs to reduce the debt and raise revenue but raiding the tax incentives for 401(k) plans will put American workers’ retirement security at risk. Tens of millions of Americans participate in these retirement plans, and 80% of them earn less than $100,000 per year. This is a battle that American workers simply can’t afford to lose,” said Graff.

Members of the public, retirement plan professionals, employers and ASPPA members are being asked to contact members of Congress to urge them to preserve the retirement savings tax incentives that encourage employers to offer 401(k) plans and employees to utilize them.

Sat, 12/01/2012 - 14:35 | Link to Comment ebworthen
ebworthen's picture

Goldman Sachs - the engineers of Greece's collapse.

So much government spending in Canada that housing there is even more a bubble than the U.S.

Financial terrorists = Goldman Sachs and shadow banking.

Sat, 12/01/2012 - 16:25 | Link to Comment Pareto
Pareto's picture

I've never understood how Carney became such a hero.  There is nothing complicated about holding rates near zero.  I've received nothing on my savings for over 3 years.  Carney is a Keynesian monetarist plain and simple.  He could have choked off the spiralling household debt to GDP.  He could have forced government to stop spending money it doesn't have to keep people in jobs overproducing crap that nobody wants.  He could have curbed the misallocation of resources and the malinvestment, but, chose not to.  I have a brotherinlaw.  Just bought a house on 9 acres just outside of Calgary for $800K and change.  He's sitting on both homes, and is now realizing he aint gonna get what he thought he was gonna get for his existing home.  My thought is that he will end up with $400K or better mortgage.  Nice.  He will be cash poor for the rest of his life.  He has a mortgage of 3% now.  But, in 5 years...... nuu uhhhh.  And this is in a climate where its -20 for 5 - 6 months out of the year.  It was an asinine decision as far as I am concerned but, nobody listens to the family economist.

 

For the last 4 to 5 years housing in Canada has gone vertical.  Its fucking goofy.  There is this over estimated thought, in my opinion, that the commodity boom is going to keep on going, so the thinking is that there is little threat to servicing the abundance of debt.  But, we are already seeing chinks and cracks in the eastern parts of the country.  Inventory is starting to stack up in the West.  And big oil and gas projects are being shelved as commodities retreat.  So, unless the Bernanke goes batshit crazy with negative rates (and he probably will), I think Canada is in for a rude awakening.  So, other than PM's there is no place to hide.  Actually, thats not true.  The ag sector is doing really well and I think there are opportunities there.  But, the massive debt to GDP isn't built on productive debt unfortunately.  It has been built on primarily unproductive (consumption) debt.  Nope,  its not different this time.  No here.  Not anywhere. 

Sat, 12/01/2012 - 18:12 | Link to Comment Rogue Trooper
Rogue Trooper's picture

Excellent Pareto.

Same deal downunder in NZ and Australia.

Rails are coming off the Lucky Country's exponential GDP 'growth'.  The commodity boom is still expected to go on forever and NZ will of couse ride on the spoils.  I agree that the ag sector will do well as folks gotta eat.  Another positive is that in NZ we can feed ourselves and the population density is low.  Housing? in Auckland, prices have gone nuts again over the last year and we are back to 2007 prices and some change.

This time it's different the local 'experts' preach... time will tell :/

Sat, 12/01/2012 - 20:24 | Link to Comment Matt
Matt's picture

But what else could he have done? If the Bank of Canada kept interest at 4% in Canada while it was 0.25% in America, what would that have done to CADUSD? Then there would be a massive outcry from exporters when Canadian goods cost way more than competitors, possibly with major job losses. 

Maybe a CHMC bailout was the plan all along, to drive CAD down to $0.80 or less, to get more manufacturing, tourism and movie jobs.

Either way, kind of a rock-and-a-hard-place situation.

 

Sat, 12/01/2012 - 14:42 | Link to Comment buzzsaw99
buzzsaw99's picture

Austin Powers: Only two things scare me and one of them is nuclear war.
Basil Exposition: What's the other?
Austin Powers: Excuse me?
Basil Exposition: What's the other thing that scares you?
Austin Powers: Carneys. Goldman folk. Squids, you know. Smell like cabbage. Smooth hands...

Basil Exposition: Austin, the Cold War is over!
Austin Powers: Finally those capitalist pigs will pay for their crimes, eh? Eh comrades? Eh?
Basil Exposition: Austin... we won.
Austin Powers: Oh, smashing, groovy, yay capitalism!

Sat, 12/01/2012 - 15:00 | Link to Comment Slartibartfast
Slartibartfast's picture

ZIRP is great for banks, now it's time to give consumers a break at the other end of the equation by capping credit card rates at 10% and lopping 25% off mortgage rates. Thats real money going back into the economy to spend, pay down debt, save and reinvest. Time for consumers, who are the biggest job creators, to demand a break. No new taxes or tax breaks needed...end the blatant usery. The banks pay nothing to make credit and charge loanshark rates. It's nothing new...it's pure 'stealth tax' via unproductive 'rentier'.

Sat, 12/01/2012 - 15:03 | Link to Comment Yen Cross
Yen Cross's picture

 Thank God for Z/H! I would have thrown myself in front of the "choom wagon" long ago, if it wasn't for you Guys & Gals...

  Between Atomizers "rabbit out of your ass comment", and "buzzes Austin Powers comment"... You guys made my Sunday morning!

Sat, 12/01/2012 - 15:37 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Funny how Lizzy doesn't show up to discuss this happening but she will jump all over "Yanks" when there is blood onthe hands of WS in America.  The fact of the matter is the banking cabal is global, and they are shoving it in our faces now by putting the BoC Chair in as the BoE Chair.  There are no boundaries in the world of finance now and we should recognize that and stop bitching about "Yanks" and "Brits" and understand that the bankers are a global cabal.

Sat, 12/01/2012 - 15:47 | Link to Comment Yen Cross
Yen Cross's picture

ditto that thought ;-) well done!

Sat, 12/01/2012 - 16:13 | Link to Comment Angus McHugepenis
Angus McHugepenis's picture

Banksters and stupid RE bubble participants know no boundaries.

Does anyone know what a mud hut in Swaziland is going for right now? I'd like to get in at the bottom.

Sat, 12/01/2012 - 16:56 | Link to Comment Yen Cross
Yen Cross's picture

 That ( post name is PRICELESS)! I can't stop laughing. Is that Fat Bastard? Love it!

Sat, 12/01/2012 - 17:32 | Link to Comment Shigure
Shigure's picture

+ 1 for "banking cabal is global", but maybe Lizzy does something else on her Saturday afternoons! ;)

Sat, 12/01/2012 - 19:01 | Link to Comment Zer0head
Zer0head's picture

Lennon please do us all a favoUr and when (s)he does show up please post a link to your comment (if you have the cajones that is)

Sat, 12/01/2012 - 16:15 | Link to Comment ItsDanger
ItsDanger's picture

The domination of the big banks in Canada was a result of the early 90's trust debacle.  Long before Carney ever got to the scene.  He certainly hasnt helped in encouraging any changes to that model but lets be honest here.  The current situation was an evolution from the recession 20 yrs ago (the last real estate crisis in Canada).

Sat, 12/01/2012 - 16:19 | Link to Comment markar
markar's picture

We see the Canadians en mass here in the Palm Springs area, buying up big chunks of the dwindling housing inventory(with cash) and tooling around for the season in the most expensive luxury cars and massive, gas guzzling trucks. They truly believe what happened here can't happen to them.

Sat, 12/01/2012 - 16:57 | Link to Comment Angus McHugepenis
Angus McHugepenis's picture

No need to go to Palm Springs to see that. We can see it right here in Alberta. Kids working the oil patch making a shitload of money get bored with buying the newest 4x4 diesel with a 10" lift kit and want to piss their money away elsewhere so they can impress the latest squeeze bag they're fucking by telling her he owns property in Florida.

I've never actually seen one, but many years ago during another Alberta boom/collapse, there was a bumper sticker that was seen on many vehicles. It said: "Please Lord, bring back the boom, I promise not to piss my money away again".

Sat, 12/01/2012 - 17:10 | Link to Comment dogbreath
dogbreath's picture

Please god, let there be another oil boom and I promise not to piss it all away this time.  fixed it for ya

The youngsters are as foolish this time as their parents were last time.  I think those that worked hard through the tough times and survived the divorce  did very well in the last 15 years.  A house that was 100k in 1996 is now 400k.

 

Sat, 12/01/2012 - 17:36 | Link to Comment Angus McHugepenis
Angus McHugepenis's picture

dogbreath: Thanks for the correction. It's been too many years of faded memories so I'm glad you knew the correct version.

Sat, 12/01/2012 - 17:43 | Link to Comment dogbreath
dogbreath's picture

I remember seeing it and remember laughing so hard.  Canadians don't do the bumper sticker thing much except the coexist/fem leftist shite.

It made a brief appearance in the last few years.  I saw one again a few years ago.  I just googled it and there seems to be some regional variations.  I made a mistake......should have been  ........ away next time

Sat, 12/01/2012 - 17:57 | Link to Comment Angus McHugepenis
Angus McHugepenis's picture

You forgot the "Baby On Board" signs. Those were popular years ago but I rarely ever see some wanker with on of those stuck to the rear window now. I wish I had invented it. I'd be a fucking gazzillionaire rather than a mere mundane.

Cheers and have a good weekend. I gotta go do some real work. By the way, your breath stinks.

Sun, 12/02/2012 - 05:03 | Link to Comment dogbreath
dogbreath's picture

I thought " baby  on board " was standard equipment on a dodge caravan

Sat, 12/01/2012 - 17:03 | Link to Comment jonjon831983
jonjon831983's picture

"Potentially flawed data used by banks and lenders bump up house prices" (in Canada)

 

http://m.theglobeandmail.com/report-on-business/potentially-flawed-data-...

Sat, 12/01/2012 - 17:17 | Link to Comment hairball48
hairball48's picture

Just a note...they need those 4x4 diesels to haul all the shit they're buying down here in Montana back home :)

There's lots of business people here who believe the Canadians will never stop coming and spending here in the Flathead. I think they're wrong.

Sat, 12/01/2012 - 17:28 | Link to Comment dogbreath
dogbreath's picture

Products available in canada are more expensive than in the US.  The savings can pay for the short vacation.   Disposable income also allows canadians to dream of warmer climates.  You should see how full the "park and fly" lots are.  Talk about a gold mine.

 

Sat, 12/01/2012 - 17:51 | Link to Comment Angus McHugepenis
Angus McHugepenis's picture

I know a few people that have family in MT. Guess where they spend Christmas? In Calgary... as they bring a shitload of cheaper goods across the border for their families in Alberta.

Heaven in Alberta (All Hell for a Basement) - Big Sugar www.youtube.com/watch?v=pUN0tQ5BINU

Volume must be cranked up loud.

Sat, 12/01/2012 - 18:37 | Link to Comment EscapingProgress
EscapingProgress's picture

An unverifiable source confirms that Mark Carney wears gimp suits and kills babies with the queen.

http://www.youtube.com/watch?v=3rewKIVsqwI

Be afraid of Mark Carney.

http://www.youtube.com/watch?v=cjhnc6EpJQg

Sat, 12/01/2012 - 19:16 | Link to Comment bankerbackbacon
bankerbackbacon's picture

Fact: Carney is a GSACH private cartel douche who can't fix broken UK and certainly isnt the man for the job.

Fact: There are only about 10 million more people in Canada than in the greater New York metropolitan area. 

Fact: Canada can crash and its wee little economy and resource rich nation will just build up again like Iceland. It will be like a mouse taking a shit, nothing to see or hear.

Verdict: The US is a service based, debt crazy economy with an order of magnitude more population than Canada (300+ million) where 2/3rds of the population is a fat moron with a shitty education. Hope remains with the 33% albeit a lot of dead weight to carry.

Verdict: Two different outcomes IF there is a crash.

I'm more worried about Barry rolling in the tanks and annexing us than a crash. Oh wait, Free trade.

 

 

 

Sat, 12/01/2012 - 19:30 | Link to Comment Zer0head
Zer0head's picture

Correct, no need for tanks half annexed already but if America gets sufficiently thirsty for those frozen lakes a couple of dozen drone waves would likely do the job. 

Sat, 12/01/2012 - 22:45 | Link to Comment JimmyCDN
JimmyCDN's picture

Our new Chinese overlords will protect us now from Barry et al.  All it takes is a FIPA and a pipeline...

Sun, 12/02/2012 - 14:55 | Link to Comment El_Puerco
El_Puerco's picture

I think, this girl got it right, this time!...

 

http://www.youtube.com/watch?v=_ae7h8FioX0 }...

 

Suerte Canadians, " The PONZINAMI is near you!...

Mon, 12/03/2012 - 10:40 | Link to Comment Abrick
Abrick's picture

Canadians cannot write off the interest on the mortgage of their principle resisdence. A Huge difference from the US. We also have  more disposable income and less chance of catastrophic medical bills, because of public health care.  The population has also proven resilient to austerity and come out alright plenty of times before. Even if housing corrects dramatically, not much will change.

Tue, 12/04/2012 - 06:25 | Link to Comment tosmooth
tosmooth's picture

For More Coverage on Mrak Carnage hers is an excellent link covering his tax policy advice : http://caiti-online.blogspot.ca/2012/11/lest-we-forget-mark-carney-destr...

Do NOT follow this link or you will be banned from the site!