Home » Posts tagged 'bank of canada' (Page 9)
Tag Archives: bank of canada
Overvalued housing prices and how to read them: Don Pittis
Overvalued housing prices and how to read them: Don Pittis
I was reading about baseball cards over the Christmas holidays and it made me think of Canadian houses.
From the Bank of Canada’s warning to last week’s devastating analysis from Germany’s Deutsche Bank that claimed a 63 per cent overvaluation, it seems we are being told once again that we think our houses are worth a lot more than they really are.
As we wait for the latest figures from the Canadian Real Estate Association (CREA) this week, homeowners and prospective buyers will be looking for concrete signals about what to believe.
- Bank of Canada says Canadian house prices up to 30% overvalued
- Fears of a Canadian housing bubble overblown
The article I read about collectible cards ostensibly had nothing whatever to do with houses. It was light and charming, an autobiographical feature in the Economist’s Christmas double issue, about how a childhood craze for collectible cards had turned into a serious financial speculation.
Baseball cards that had sold in the thousands began trading at absurd prices. Canadian hockey star Wayne Gretzky bought one card for nearly half a million dollars.
…click on the above link to read the rest of the article…
‘Canada Is In Serious Trouble’ As Debt, House Prices Climb, Deutsche Bank Declares
‘Canada Is In Serious Trouble’ As Debt, House Prices Climb, Deutsche Bank Declares
It was little more than a year ago that Deutsche Bank declared Canada’s housing market to be the most overvalued in the world, and on Thursday the German-based bank doubled down on its bearish assessment of Canada.
Residential real estate in Canada is overvalued by 63 per cent, according to research from Deutsche Bank chief international economist Torsten Slok.
Broken down, Slok sees the market as being 35-per-cent overvalued when compared to incomes, and 91-per-cent overvalued when compared to rents. That’s a more bearish assessment than most. The Bank of Canada estimates the market isovervalued by between 10 per cent and 30 per cent.
But those are similar numbers to those at the Economist magazine, which for years has been calling Canada’s housing market overvalued. It pegs the overvaluation at 32 per cent, when compared to incomes, and 75 per cent, when compared to rents.
“Canada is in serious trouble,” reads the title of a chart from Slok’s report, showing Canada’s household debt, as a percentage of income, climb to 50 per cent above current levels in the U.S.
…click on the above link to read the rest of the article…
Canadians Have Some Fat Debt, But Don’t Seem That Worried About It
Canadians Have Some Fat Debt, But Don’t Seem That Worried About It.
The percentage of households in Canada mired in extreme debt has almost doubled since 2000, and Canadians are pretty chill about it.
On Wednesday, the Bank of Canada said that 12 per cent of Canadian households — or as The Globe and Mail points out, one in eight — have a debt-to-income ratio that’s more than 250 per cent. That’s like making $40,000 a year and carrying $100,000 in debt — credit, mortgages, or loans, what have you.
Yikes.
And yet, a CIBC poll released Thursday found that only 16 per cent of Canadians are worried that they have too much debt.
That relaxed attitude is also coupled with optimism, as the poll — of 1,509 randomly selected Canadian adults — found that 71 per cent of those surveyed plan to axe their debt in 5 years or less. Thirty-six per cent think they can be debt-free in less than two years.
…click on the above link to read the rest of the article…
Oil Price Drop Expected To Surface At Provincial-Federal Finance Ministers’ Meeting
Oil Price Drop Expected To Surface At Provincial-Federal Finance Ministers’ Meeting.
The topic of sliding oil prices is expected to surface this weekend when provincial finance ministers from across Canada have their first face-to-face meeting with federal counterpart Joe Oliver.
Saskatchewan Finance Minister Ken Krawetz said the federal-provincial gathering begins Sunday with an informal get-together in the Ottawa area, followed by sessions Monday that will include a presentation by Bank of Canada governor Stephen Poloz.
Krawetz also expects the group to discuss the plunging price of oil, which threatens to erode public finances in several oil-rich provinces as well as the federal government’s bottom line.
Oil prices fell below US$64 a barrel this week — roughly a 40-per-cent slide since mid-summer.
“We are concerned about the loss of revenue, there’s no question about that,” Krawetz told The Canadian Press in an interview.
“We’re also concerned that if indeed there is a prolonged decline, what will be the effect across the entire nation with regards to oil?”
…click on the above link to read the rest of the article…
Oil Price Drop Expected To Surface At Provincial-Federal Finance Ministers’ Meeting
Oil Price Drop Expected To Surface At Provincial-Federal Finance Ministers’ Meeting.
The topic of sliding oil prices is expected to surface this weekend when provincial finance ministers from across Canada have their first face-to-face meeting with federal counterpart Joe Oliver.
Saskatchewan Finance Minister Ken Krawetz said the federal-provincial gathering begins Sunday with an informal get-together in the Ottawa area, followed by sessions Monday that will include a presentation by Bank of Canada governor Stephen Poloz.
Krawetz also expects the group to discuss the plunging price of oil, which threatens to erode public finances in several oil-rich provinces as well as the federal government’s bottom line.
Oil prices fell below US$64 a barrel this week — roughly a 40-per-cent slide since mid-summer.
“We are concerned about the loss of revenue, there’s no question about that,” Krawetz told The Canadian Press in an interview.
“We’re also concerned that if indeed there is a prolonged decline, what will be the effect across the entire nation with regards to oil?”
…click on the above link to read the rest of the article…
Canada’s Catch-22: Bankruptcies Could Soar If Economy Improves
Canada’s Catch-22: Bankruptcies Could Soar If Economy Improves.
There is a Catch-22 in Canada’s economy, which is this: When things get good again, it will cause things to go bad.
That’s because Canadians have taken on so much debt that a rise in interest rates could tip many borrowers at the margins into insolvency.
Many market observers expect interest rates in Canada and the U.S. to start rising next year, with the U.S. Federal Reserve leading the way as the U.S. economy enjoys a widespread recovery.
CIBC economist Benjamin Tal issued a report last week noting that interest rates typically rise when the economy improves, so bankruptcies tend to come down when interest rates go up.
But after five years of rock-bottom interest rates, Canadians have taken on record levels of debt that have pushed house prices to record highs and spurred large increases in auto sales.
That makes Canadian consumers very sensitive to changes in interest rates. “We might see bankruptcies rising alongside interest rates,” Tal concluded.
…click on the above link to read the rest of the article…
Canada’s Expansion Tops Forecasts as Exports Lead Growth – Bloomberg
Canada’s Expansion Tops Forecasts as Exports Lead Growth – Bloomberg.
Canada’s economy grew faster than economists forecast in the third quarter as exports of crude oil grew and consumers opened their wallets for cars and other big-ticket items.
Gross domestic product rose at a 2.8 percent annualized pace from July to September, Statistics Canada said today in Ottawa. While the gain exceeded all 21 forecasts in a Bloomberg economistsurvey with a median of 2.1 percent, growth slowed from the second quarter’s 3.6 percent expansion.
The world’s 11th-largest economy is making progress in what Bank of Canada Governor Stephen Poloz calls a needed rotation of demand to exports and business investment, which rose at the fastest pace in more than two years. Poloz’s view that substantial economic slack remains has been challenged by a jobless rate that’s fallen to a six-year low and inflation that rose above the 2 percent target earlier than the central bank forecast.
…click on the above link to read the rest of the article…
Youth Should Work For Free – Bank of Canada Recommends | Armstrong Economics
Youth Should Work For Free – Bank of Canada Recommends | Armstrong Economics.
What is seriously being overlooked here around the world politically is we are dealing with a revolution of the youth as a consequence of the collapse in Marxism. Pictured above is Bank of Canada Governor Stephen Poloz who has amazingly stated that the rising unemployment among the youth who are living in their parent’s basements, should just consider working for free. That’s right! Adult children stuck in their parents’ basements should take unpaid work to bolster resumes as they wait for the recovery to take hold, which does not appear to be until about 2020.
The Bank of Canada estimates about 200,000 young people want to work or work more in Canada, but this seems to be an under-estimation. Poloz actually said that they may be scarred by prolonged unemployment that prevents them from moving out on their own.
Here in lies the crisis and it is the product of Marxist-Socialism and raising the taxes on the hated “rich” who create the jobs, yet the average person pictures Warren Buffet not the owner of the local store selling bread and milk. Small business creates 70% of the work force – not the big corporations that banks and politicians cater toward these days. They keep raising taxes on small business preventing people from trying to expand or start a business and the tax revenues go only in the pockets of politicians – they do not lower taxes for the middle class. Great slogans that the rich should give back, but the problem is it goes nowhere but to fund the pensions of government workers – nothing to lower the taxes on the lower classes.
…click on the above link to read the rest of the article…
