Bits and Pieces...

So, as expected (by fish10) Carney backs away from further rate hikes. They are not a foregone conclusion..which means I am already pissing in my pants about the 0.25% we just did, the dollar is getting too strong again and I have received some nasty phone-calls from my buddies on Bay Street.

My Carney Goes To Charlottetown

If our economy is so weak that it can only survive by keeping rates at less than 1% and forcing the prudent to abandon their ways, and join the speculators then we have really got ourselves in a mess. There is nothing else left in the bag of tricks.

That could be it for a while.

Low rates are theft. Plain and simple. It goes from savers who get nothing from their hard earned savings except devaluation, and is a gift to speculators and banks.

Meanwhile the Government is fretting about how little Canadians save for their retirement. is it any wonder?? When all they can get in a secure investment is a fraction of 1%?

The solution??? Increase CPP payments! And guess who is going to pay for that? You and I. So smoke, buy a gas guzzling truck, booze away to your hearts content..don't bother saving because the next generation, already encumbered by huge debts will carry your ass too!

CPP Suckers

Now in case you think I am just attacking working class free-loaders, here's some balance. One wealthy family moved $2 Billion out of the country in 1996, with the knowledge of the then Government who closed the loop-hole after it was done.

That's a Billion loonies they saved, and we lost, when a Billion loonies meant something. Anyone know who the family was?

.......................................

Meanwhile News1130 was touting an economist who said BC may experience stronger growth than the rest of Canada...I missed his/her name.

That would not be good for the bears. Interest rates are set based on what happens in central Canada. BC is seen as a boom or bust outlier and so weaker growth there and stronger growth here will NOT strengthen our cause.

........................................

All is not lost bears. We have weakening house sales, rising inventory and flattening of prices. If this was a normal market-place...when inventory rises and sales goes down..what happens? Things go on sale! Not in the manipulated, CMHC, cash-back mortgages, zero rates world of housing.

Slump in sales

This is the most manipulated market in the world. Unfortunately, we have not learnt from the US experience...Despite Greenspan and Bernanke's assurances that there was no housing bubble (didn't the B of C just say that too).. the bubble burst and the result was carnage. We are all destined to follow the American Experience it seems.

BTW some real estate bozo on the radio 'blamed' the drop in sales on the following:

1) Changing mortgage rules

2) Fear about rising rates

Like somehow, the Government did something wrong by trying (even now when the horse has bolted) to close the gate on excess.

No mention of lack of affordability and wages not keeping up with home prices.

Schiller, the God of RE, says wages and RE have to get back into historic line, which means another 10% drop in prices in the US. Where it puts us, I have no clue.

Lower sales, higher inventory, flat prices = 5th wave divergence in my book.

I'm Still Here

Just wanted to let all my lovelies know that I am still here:o) We have been busy...insanely busy. I have been working on a few projects between outings, but can't really post anything b/c I don't have pictures yet, and there are a few of which need some finishing touches. I'm going to be working on some Father's Day crafts as well. Here's a pic of something I have worked on in the past and just made one for S.R. Waiting on it to be monogrammed.

The lining of hers is a different color, but the main fabric is the same. I have a few other sewing projects I have been working on and I will fill you in on those once I get them back from the lady who is monogramming them for me. Hope you guys are enjoying your summer. I am having a blast, but I am ready for things to slooooooow down:o)

Putting Some of the Rich Chinese Investor Myth to rest

Some of the Bear blogs are hitting almost a frenzy over the rich Chinese investors who are buying up the whole lower mainland.

Couple of things I have to throw into this pot:

1) It isn't just the Chinese or other visible minorities. I went to an open house for a fancy suite last week and the two out of town couples looking were form Russia and South Africa. The Asian couple were Canadians who had moved from Calgary. So appearances can deceive.

2) Nevertheless there is significant buying from the Chinese Mainland. However these are generally expensive properties in expensive areas (West Van, Van West, Coal Harbour and Yaletown) . They aren't buying in Maple Ridge or Coquitlam or New West. (generally speaking- I know there were some guys laundering money through Real estate- but that is rare)

So while they may be pricing out the locals on the higher end of the market, they have no effect at the middle or lower end, except by displacement.

And we have all time price highs in Ottawa, Toronto and Montreal- is that from Rich Chinese buying too? I doubt it.

There are some good points associated with these Airport-shuttle buyers - they are paying with cash- No CMHC mortgages for these guys, they buy lots of pricey furniture, cars and pay property taxes and strata fees which goes back into the local economy.

Now if they would only move here and pay tax on their worldwide income, things would be perfect.

They also provide employment for locals who built, and then have to repair the badly built units all over again - some days our city looks like half the buildings are under tarp!!

They provide employment for workers to demolish the quaint westside homes and build McMansions in their McPlace .

On the bad side, they often leave the units empty. Now while the City and Province probably regard them as ideal occupants, and wish we could all be like them- pay taxes but stay away and don't use services too much- the truth is that unoccupied units stresses the housing supply in a City with limited space and degrades the standard of living for those that remain.

So Vancouver City officials reading this blog (I know some do) think out of the box- add a 30+% property tax surcharge for any unit unoccupied by owner or a renter for greater than 6 months a year. It would be very simple to verify this from utility bills. Use the money for social/subsidized housing- ooops I forgot there's the Olympic Village bills coming due. Ok use it for that, and the locals would be a lot happier with their rich off-shore neighbours.

The Swiss are the world's safe bankers. They CHARGE you to hold your money. If were have become the world's safe Real Estate bank. lets at least get something in return and not just screw ourselves for a few bucks, lets do it for serious dough :)

Also, Campbell and Harper, please make sure that the chunks of money you are inviting in don't come from theft or bribery or other malfeasance, we already produce enough dirty drug money in our Province, without getting other country's dirty laundry too.

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In fact in Coal Harbour there is some social housing, which, from what I understand, was built by the developer to be allowed to put up the luxury units. They sit cheek-by-jowl, right next to each other- different quality of course and one-side is full ++, and the other is almost unoccupied. You can guess which it is.

I sometimes think us bears are not just whining about prices, but hanker for the old Vancouver. Quiet streets, empty trails and about half the number of people we have here now. But for better or worse, we are a large international cosmopolitan city, where a lot of us derive our income directly or indirectly from visitors, ESL students, rich buyers of RE, outside investors etc etc.

It happened elsewhere. Hong Kong was a sleepy fishing village that the Brits decided to make their Far east commercial hub. Taiwan was an equally peaceful sparsely inhabited Island, until mainland Chinese Nationalists moved in en masse.

I am sure those locals weren't too happy with the changes either. We have to go with the flow.

Am I buying RE here though? Nope.

Do I wish I had when I moved here (from another part of BC) nearly a decade ago or even searched for a bargain in the 2008 flash-crash? - Yup (Chad)

I think I will get another chance, Mainland Chinese buyers notwithstanding.

What would be the best scenario for the bears...

I know everyone has waited patiently for soooo long for this danged correction, that they want it NOW and they want it HARD DOWN.

But actually that would not be the best situation for the bears.

Think 2008/9. We were down hard and sudden and the donut-heads in Ottawa and Victoria panicked and pulled out some bedraggled rabbits out of the hat and up we went again.

If we go down hard, the calls to 'do something' will be deafening and the politicians and Carney will 'do something'..God help us.

So a slow steady decline would be very nice, thank you very much.

Something that doesn't cause panic, that slips under the radar, that allows the Bank of Canada to maybe- if they are feeling very brave- raise rates another 0.25%.

But a decline that keeps giving.

Anyway you wouldn't want a sudden huge drop, imagine those poor Realtors and Mortgage Brokers with cardboard signs at red lights saying..'Spare $5, Mercedes lease payments to make'. Have a heart.

I think another month with declining price, hopefully in all sections and measurements, will start the new trend.

Old Bench Beautified

I am so pleased about this bench. You have no idea how happy I am with the results. The hubs really came thru on this project. I told you that I found this bench during my fabulous yard sale weekend. You can see the before pic in that posting. I believe that I deleted the picture from my computer...oops:o) Anyway, when I made this purchase, I knew the exact location that it would reside...at my breakfast table.

Isn't she a beaut? Before, it was covered in a not so attractive chippy paint and had been used as a place to put on shoes on a back porch. I am a big fan of chippy paint IF it's the right color, and in this case, it wasn't. So the hubs pulled it apart, stripped and sanded for hours on this puppy. He was near the point of hating this piece. He actually put it back together, and thought it looked like junk, so he pulled it apart again, finagled a little bit and put it back together again. He is so proud of it...now:o)

You can actually see the beautiful wood grain now. It can "comfortably" seat two adults...who are medium sized that is;o)

Now my two sweet little precious ones are definitely not allowed on this bench. There are cracks that can easily collect food droppings. We'll see how long this lasts;o)

Are you digging the flowers? 

Hubs picked those up from Costco the other day. No, he didn't get them on his own accord, but it is amazing what fresh flowers motivates you to do. I have been cleaning like a mad woman. Those flowers have really made me feel happy. I walk in and see them, and I am like "AWWWW they're so pretty, I think I'll go scrub a toilet." Weird, I know. There was enough in the bouquet to make two vases.

 So these are residing on my coffee table. The kids love seeing them too:o)

E made his mark on the table before I was able to get a shot of it:o) Oh well...

I hope that you all have a wonderful Tuesday. I will be spending a good portion of my morning at the chiropractor, and then off to the pool. E has swim lessons, and he is doing so good:o)

Fiddling While Rome Burns...

What's with Harper and Flaherty??

They are spending all their waking time trying to shoot down a world-wide bank tax. Harper talked it over with the British PM, Flaherty has been campaigning to get the G20 to drop it.. you can google hundreds of articles and video pieces on it: here's a couple

Article

Video

Boys, it's one thing to go to bat for the banks, but there is a frigging crisis out there. European countries are near default, Canadians have been pulled into the worst debt binge EVER, commodities are faltering... and all you can worry about is the bank tax!

GET REAL.

I guess the boys think that they can't do anything about the other issues, so at least make sure they keep their friends in high places happy.

The banks have already had it REAL good. All the toxic mortgages have been insured by us, while they get to eat the difference between what they pay borrowers (ZERO) and what they lend it out at (4-5%)... sounds good to me.

Where can I sign up for that please?

Hence wind-fall profits.

And now we have the G20 meeting in coming up in Toronto at a cost of $1 Billion..huh! No-one heard of video-conferencing. Of course you wouldn't get those TV shots of our leaders riding up in limos to be welcomed in nice new suits, solving the world's problems, saving humanity, fighting the bank tax...

Yuck!

Froggy Outfit

Sorry that I have been absent from the blogging world for the past few days. That sinus infection really kicked my tale. While I have been away from you lovelies, I have been working on a few projects. I can't wait to share them with you this week. Tomorrow's post is super awesome, thanks to the hubs. He's my hero:o) So anyway, here is a new outfit I made for S.R. While on all the meds for my sinus infection, I had a weird reaction and couldn't sleep...at all. So, at midnight Wed. night, I cut out the pattern and fabric for this outfit. I eventually got to sleep at 4 a.m. the next morning:o) I needed an outfit to match the froggy hairbow that a friend had given to S.R. Don't you just love the froggy buttons??

Staying true to my vow of not purchasing anything for crafts unless absolutely necessary, I used fabric I had on hand from when I made this bag. I had just enough to do the top part of the shirt...I mean barely enough:o)

I love the skirted bottom of this shirt. It is so sweet:o)

I absolutely love making shorts. They are the easiest thing to make....EVUH!

S.R. modeling her new outfit while brushing her pearly whites.

View of the back side.

I had planned on embroidering her name on the front, but for some reason my machine was acting a little cra-zay. I think I am going to take it somewhere and have "Ribbit" embroidered across the chest in the curly font, so when S.R. grows out of it, I can sell it.

Stay tuned for tomorrow's post. I am revealing the bench makeover from this post. It's G-R-R-R-REAT!