Quote:
Originally posted by Krazzyfour
Traders, Not Investors, Fueling This Stock Rally: NYSE Chief
Wall Street's stunning six-week rally has been fed more by traders looking to take advantage of quick swings in the market than investors with a long-term view. Because of that, the rally likely is to run out of steam as low volume eventually comes back to the bite the market, he said.
"It feels to me we're in a trader's market and not an investor's market," Niederauer said in a live interview from the exchange floor.
new report says hundreds of thousands of Canadians headed into this recession without the same social safety net Canadians relied on in every other recession since the 1930s.
http://www.calgaryherald.com/business/Canada+with+unparalleled+force+recession+Report/1543563/story.html
----------------------------------------------
Calgary's number of jobless doubles to 11,700
http://www.calgaryherald.com/Business/Calgary+number+jobless+doubles/1545011/story.html
The number of Calgarians receiving employment insurance doubled in just one year, with more than 11,700 now on government assistance after losing their jobs.
The number of EI recipients in Alberta rose by 67.9 per cent from October 2008 to February 2009, according to newly released figures from Statistics Canada.
---------------------------
http://www.greaterfool.ca/2009/04/28/the-rube-report/#comments
Americans let real estate prices inflate without any attempt at correction by the central bank, and so did we.
* Americans relaxed lending standards with subprime teaser mortgages and liar loans. We dropped them with forty-year ams, zero-downpayments and self-recognition mortgages.
* US banks got lazy and greedy and approved almost all lenders. Our banks okayed mortgages based on postal codes.
* American household debt levels are extreme. So are ours.
* At the height of the American housing bubble, people were spending six times their incomes for houses. In Vancouver they were spending 10 times their incomes.
* The US housing meltdown has lasted for more than 4 years. Ours is one year old.
* The American economy crashed by a stunning 6.2% annualized rate in the last reporting period. Ours plunged by 7.3%.
* The Americans regressed from the worst federal budget deficit ever to an even-worse one. We bungee jumped to one of our worst-ever deficits, from a surplus.
* GM is losing a third of its workforce in the States. In Canada, half the guys on the line will be gone.
http://www.huffingtonpost.com/dave-johnson/todays-housing-bubble-pos_b_195217.html?ref=patrick.net
People still think that what we are going through a temporary "correction" and that real estate prices are going to "go back up," that houses are "cheap" now, that they should "snap them up" before they are "priced out." They still think real estate is the path to wealth, instead of somewhat of a burden that should only be undertaken under certain circumstances. Namely, when you plan to live there for a long, long time, and you'll pay less (including closing costs, taxes, insurance, maintenance, possible price depreciation, etc.) than rent.
Option ARM rates are going to be recasting soon and in increasing numbers. That's the magic moment when people can no longer make minimum payments, when they can longer make interest-only or neg-amortization payments.
When that magic moment comes, all of those people are going to look at how high their now unaffordable mortgage payments are. Then they'll look at how much their house is actually worth relative to how much though owe. Then, maybe, they'll try one of the various initiatives to modify their mortgage terms. And then, quite likely, they'll jut walk away. [. . .] as the chart tells us, hasn't even really started yet.
What that chart shows is that the foreclosure problem is about to get a lot worse. Two more huge waves of "resets" are coming. Many, many, many more homes are about to reach a point of unaffordability for a lot of their owners, one way or another those homes will also be for sale, on top of the huge inventory that already sits unsold, and this will drive prices down even further, which will trigger even more problems.
Here is what I am saying: As long as a house is considered an "investment" instead of a place to live for a long time, we will continue to be in a world of hurt. Real estate does not always go up.
Here is why prices can't go up any time soon: There is a huge inventory of unsold houses. The houses that were built in the last decade are too big for regular people to be able to afford to heat and cool -- and energy prices are going up. The water for the lawns will cost more and more. The gas to get to the malls and any jobs that might exist (good luck) will cost more and more. The "boomers" are retiring and selling their houses. The median price in many areas is still way above affordability by a medium-income family. You won't get sufficient "positive cash flow" over your payments from the rent you'll receive if you are renting the house.
------------------------------------------------------------------
My take: People are in denial. We're not going to go back to bubble pricing no matter what the govt., RE agents, banks do (or doesn't do). We're just not.
I find it amazing that this guy won't give up convincing the world that all is lost, it's doomsday, and the real estate prices will never go up. I wish I was a psychologist - perhaps I would be able to delve into his mind and find out why he has this compelling obsession to always dwell on the negative, see nothing but dark clouds on the horizon and pervading darkness everyone.
I am just wondering if he has a vested interest in seeing real estate go down further or stay at where it is...... is there a lobby that works behind this genius of a crystal gazer? Have you ever wondered why things happen, even when there is no credible cause? Ever wondered that it is not always logic at work, when things happen?
Why not leave all these logic, statistics, and facts, just to believe that even the impossible (according to the OP) can happen? What do you lose by staying positive?
What do you lose by NOT spreading negativity?
If you need help start by reading books by Norman Vincent Peale, Dale Carnegie, and Brian Tracy. You won't be disappointed, and will turn a new leaf!
Quote:There's nothing wrong with having that opinion - a lot of people these days believe the same.
Originally posted by ILOVENA
I find it amazing that this guy won't give up convincing the world that all is lost, it's doomsday, and the real estate prices will never go up.
-----------------------------------------------------------------
"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
Quote:
Originally posted by ILOVENA
I find it amazing that this guy won't give up...
I think I need help from ILOVENA (psychologist) and others to understand negative and positive market.
We all love to pay low price on gas, food, car, restaurant, flight, hotel, electronics, prescription and everything. how many would liked to pay $2+/litre gas price when oil price was $145 except who is getting big bonuses in energy companies. We all knew that speculation and wrong marketing (we are out of oil) brought $145 oil price.
We saw house price got double in last 4 yrs. You don’t think speculation, flipper, marketing (house price never go down, immigration, right time to buy), subprime and low interest rate played that game. When we are seeing house price going back to normal (down) like oil and other commodity price then why it's called negativity. Now banks are not giving 500k mortgage to kids who are living paycheck to paycheck with 0 down is not negativity. People can afford home than just monthly mortgage for 35 yrs is not negativity.
Looking help…
Negativity:
As per my understanding negativity is 200k+ employee are loosing job in manufacturing industry in North America by direct and indirect action of Chrysler and GM. Baby boomers lost 50% RRSP as they are near to retire in next couple of years. Family don’t have any saving for rainy days as 60% paycheck goes to house.
Quote:
Originally posted by ILOVENA
Why not leave all these logic, statistics, and facts, just to believe that even the impossible (according to the OP) can happen? What do you lose by staying positive?
What do you lose by NOT spreading negativity?
If you need help start by reading books by Norman Vincent Peale, Dale Carnegie, and Brian Tracy. You won't be disappointed, and will turn a new leaf!
Advertise Contact Us Privacy Policy and Terms of Usage FAQ Canadian Desi © 2001 Marg eSolutions Site designed, developed and maintained by Marg eSolutions Inc. |