April 19th has come and gone- good riddance. The worst of the lending excess will be curtailed.
Of course in my opinion the whole CMHC should be shut down, or at least put on ice. The tax-payer has no business being exposed to the liability of insuring mortgages that the private sector wouldn't provide otherwise.
It is just adding liability on top of all the other liabilities we have burdened the future generations with.
At least put the huge behemoth on ice until there is a correction. I would have thought that was obvious. The last thing you want, is to insure mortgages at all time high prices and all time low rates.
Wait until it hits the fan - rates are higher, prices are down and no-one can borrow money. Then you can bring the carcass of the CMHC out of the deep-freeze to help get the wheels of RE moving again. It would make more sense and reduce the liability risk. But that would be too logical.
Talking of not being logical, the Bank of Canada basically said today that it is thinking of raising rates- PLEEEEZE!
Either raise them or shut up.
We are at 0.25%. Would the world have come to an end if we had gone to say...0.5%?? Of course not! It would have just sent a message that they care about savers and borrowers better be careful.
But by trumpetting this possible, maybe, we'll see rate change, they give every last speculator time to load up on debt, preferably government insured.
I think Mark Carney spent too long at that den of speculation (and possibly fraud) Goldman Sachs.
Larry Yatter is showing some nice price drops in Cambie and Kits. Inventory is moving up nicely. Anyone buying from now on, better try and get a good deal, as the winds are blowing in your face.
