After posting today's numbers.
Keep the fires of hope burning. I know there is a lot of bear fatigue out there..'where is this crash already!'
Well, we are still in a correction from the highs. And even though we have had some days of higher sales to listings (more lower lists than higher sales) as long as we stay above a MOI of 6 we are in correction. We are also going into the slow season for RE sales.
Fingers crossed and see you in a week.
BTW if you are bored have a read of John Hussman's latest commentary. He is one of my favourite commentators. As he says banks have made windfall profits on the backs of savers and the prudent due to ZIRP (zero interest rate policies).
The senior executives have done very well. Many making $5-10 Million a year or more (this is in Canada not the US where number are even higher).
I have noticed that even with the rise in Interest rates, the banks have barely budged in offering higher GIC rates, even as mortgage rates have ticked up.
Are they keeping the wider spread for themselves? Are they preparing for more write downs when RE deflates?
Maybe they are saving up money to help out the CMHC when it hits the fan. That would be the right thing to do. Because in Canada not only have had ZIRP but we had a built in sucker to pass risk off to, the tax-payer, and now it would only be right if the banks threw some money into a fund to help bail the CMHC out.......maybe some of those $10M a year executives could throw in a few million too!
