“Profit is private and loss is public”

At least I expect-" attack the logic not the person". It’s not about a win or loss. US Fed chairman is still saying -low interest does not bring US RE crash.

Only way these prices can be sustained:

1. "Govt. keeps throwing cheap money or mortgage reset to 50 yrs"
There is a limit and govt. doesn’t have ability to create another bubble. How long foreign lender keep lending at cheaper rate?

2. "High paying jobs are created"
Saving current job is not easy in this market

3. "20%-40% rise in salary."
If we have job then we are lucky

4. "Govt. drops all the taxes."
Tax can go high only someone has to pay the price for free money

5. "Rich immigrant starts investing everywhere."
We know richness of newly immigrants in Canada.

"The real estate crash is imminent, and everyone will be reduced to poverty".

Flipping the RE or spending money that we people don’t have is not richness. Someone (tax payers/higher taxes/last buyers??) has to the pay price. When available money is carried into over price asset then there is no money left for research, startup companies, industrial growth, new ideas and job creation by industry. Govt role is not controlling the market or throwing cheap money but regulate the market. If Govt keeps bubble longer then more people sucked into illusive wealth. The longer the bubble is worse the result.

Quote:

---

Originally posted by ILOVENA

rahul_singh23: sick and tired of your doomsday predictions, and your never ending faith in evil. your pessimism, and your unshakable faith, let us agree that.

1. The real estate crash is imminent, and everyone will be reduced to poverty.

---

It might seem like a personal attack, but It wasn't. That you are not even remotely connected with the real estate industry, is apparent from the way you express your ideas. Your ideas are indeed illogical, ill-conceived, and I wish you had a balance in your posts. Any professional would say \" well this is what I say, yada, yada, yada, however, in a changing scenario, this is what would happen......yada. yada yada\".......

Unfortunately, you take upon yourself the arduous, but simple task of being the bearer of nothing but bad news, based on the ubiquitous \"cut and paste\" formula, which is tasteless, to say the least. Agreed that doomsday is here (or when it is, in 2012) should we worry about our mortgages, our rate of interest, or another double dip recession? Human civilization as we know, will cease to exist, so why worry about all those things?

On the other hand, should you be even remotely wrong, so much can happen. First the Mayans have 26000 years of predictions on their hand wrong. Perhaps they could be wrong but I seriously doubt you could be!

I am still at a loss to understand what you mean by \"cheap money\". Obviously you need to delve deeper into the world of economics rather than throw about poorly coined phrases. Interest rates are decided by the state of the economy - inflation, money supply,, balance of trade, or even deflation.

I am sure Ben bernanke and others in the Fed would not be pleased with your suggestion that the amortization period be increased to 50 years. On the other hand the opposite of that is true - the amortization period is down from 40 years, and I wouldn't be surprised if it was pegged at 25 years. Did you know that longer the amortization, the lesser the borrowers equity and repayment?

What do you mean by \"high paying jobs\". Perhaps you do not know that these terms are very relative and surely only one who has a higher debt compared to his income has to worry a great deal - and that is true, in any time.

When was the last time you got a 20 - 40 % raise? Perhaps here again you prove your fundamental lack of knowledge of economics. Have you heard of the quantitative theory of money that ties the relationship between money supply and inflation? Simply stated, the rate of inflation is directly proportionate to the availability of money in the system. Should each corporation and the government give a raise of 20 to 40 % each each (as recommended by you), a double digit inflation would not be far away. You do not have to look too far. Look at the inflationary tendencies in India, with respect to commodities, and real estate (be it renting or owning a house). Also remember that the average raise in some corporations in India is around 15 %............ Learn anything?


As for your suggesting that Government drop taxes, it is a laughable suggestion, to say the least. We live in a society, where the welfare of people is paramount. That said, where will the government find the money to go ahead with these \"schemes\", if they stop collecting taxes.

Lastly what do you mean by \"rich immigrant starts investing everywhere\"? what do you consider by affluence, and do you think it prudent to suggest that someone fresh out of the boat, invest in real estate, instead of looking for work?

I applaud you because you have the \"never-say-die\" attitude to believe that there is evil everywhere, and doomsday is round the corner. You have churned hundreds of posts with your \"cut and paste\" propaganda (not being a real estate professional). I have two choices - to simply agree with your theories or believe in the Mayans that 2012 will bring the end of the civilization.

I prefer to believe the Mayans - I have no longer got to worry about mortgage, interest rates, and so forth........... because then there will be no life on the planet!!!

ILOVENA: I think you forgot to read this sentence of Rahul's post : ""Only way these prices can be sustained"".

By the way your earlier post seems to be a personal attack on Rahul. He is writing his views on property prices and you are most welcome to write your views.

Quote:

---

Originally posted by ILOVENA

It might seem like a personal attack, but It wasn't. That you are not even remotely connected with the real estate industry, is apparent from the way you express your ideas. Your ideas are indeed illogical, ill-conceived, and I wish you had a balance in your posts. Any professional would say \" well this is what I say, yada, yada, yada, however, in a changing scenario, this is what would happen......yada. yada yada\".......

Unfortunately, you take upon yourself the arduous, but simple task of being the bearer of nothing but bad news, based on the ubiquitous \"cut and paste\" formula, which is tasteless, to say the least. Agreed that doomsday is here (or when it is, in 2012) should we worry about our mortgages, our rate of interest, or another double dip recession? Human civilization as we know, will cease to exist, so why worry about all those things?

On the other hand, should you be even remotely wrong, so much can happen. First the Mayans have 26000 years of predictions on their hand wrong. Perhaps they could be wrong but I seriously doubt you could be!

I am still at a loss to understand what you mean by \"cheap money\". Obviously you need to delve deeper into the world of economics rather than throw about poorly coined phrases. Interest rates are decided by the state of the economy - inflation, money supply,, balance of trade, or even deflation.

I am sure Ben bernanke and others in the Fed would not be pleased with your suggestion that the amortization period be increased to 50 years. On the other hand the opposite of that is true - the amortization period is down from 40 years, and I wouldn't be surprised if it was pegged at 25 years. Did you know that longer the amortization, the lesser the borrowers equity and repayment?

What do you mean by \"high paying jobs\". Perhaps you do not know that these terms are very relative and surely only one who has a higher debt compared to his income has to worry a great deal - and that is true, in any time.

When was the last time you got a 20 - 40 % raise? Perhaps here again you prove your fundamental lack of knowledge of economics. Have you heard of the quantitative theory of money that ties the relationship between money supply and inflation? Simply stated, the rate of inflation is directly proportionate to the availability of money in the system. Should each corporation and the government give a raise of 20 to 40 % each each (as recommended by you), a double digit inflation would not be far away. You do not have to look too far. Look at the inflationary tendencies in India, with respect to commodities, and real estate (be it renting or owning a house). Also remember that the average raise in some corporations in India is around 15 %............ Learn anything?


As for your suggesting that Government drop taxes, it is a laughable suggestion, to say the least. We live in a society, where the welfare of people is paramount. That said, where will the government find the money to go ahead with these \"schemes\", if they stop collecting taxes.

Lastly what do you mean by \"rich immigrant starts investing everywhere\"? what do you consider by affluence, and do you think it prudent to suggest that someone fresh out of the boat, invest in real estate, instead of looking for work?

I applaud you because you have the \"never-say-die\" attitude to believe that there is evil everywhere, and doomsday is round the corner. You have churned hundreds of posts with your \"cut and paste\" propaganda (not being a real estate professional). I have two choices - to simply agree with your theories or believe in the Mayans that 2012 will bring the end of the civilization.

I prefer to believe the Mayans - I have no longer got to worry about mortgage, interest rates, and so forth........... because then there will be no life on the planet!!!

---

What does one mean by \\\"\\\"Only way these prices can be sustained\\\"\\\"? If these prices are not affordable, how do real estate transactions take place, day in, day out?

Does that mean indirectly that on each transaction, there is a nexus between the purchaser, his Realtor, the mortgage agent, and the bank? Does that mean that for the most part, the transactions take place on the basis of lies, and deceptions on everybody's part? That would be a serious charge, involving fraud, and probably other criminal acts in Canada.

I am sure that the thousands of transactions are not based on deception.

On second thought why worry? Wait until the 21st day of December, 2012!

For some it's time to buy home when they made lot of money by selling current RE and they are downgrading to small town or cheaper house.

http://www.greaterfool.ca/
“The only reason we have a functioning economy right now is government drugs – the steroids of stimulus spending, the meth of bailouts and the crack cocaine of cheap money. Were it not for crazy people borrowing their brains out with 3% mortgages and governments walking into more debt than could be imagined just a year ago, we’d be back on the edge of the abyss.”

http://patrick.net/housing/crash.html

"Realtors ALWAYS GET FIRST DIBS AT EVERY HOUSE even before it is listed. Realtors always have a shot at the best deals. In fact, IF A LISTED HOUSE WAS NOT ALREADY PURCHASED BY A REALTOR OR one of their buddies---that means IT IS A BAD DEAL?? If it were a "good" deal---they would have bought it."

http://www.cbc.ca/fifth/2009-2010/house_of_cards/

Quote:

---

Originally posted by ILOVENA
What does one mean by \\\"\\\"Only way these prices can be sustained\\\"\\\"? If these prices are not affordable, how do real estate transactions take place, day in, day out?

---

Quote:

---

[
Does that mean indirectly that on each transaction, there is a nexus between the purchaser, his Realtor, the mortgage agent, and the bank? Does that mean that for the most part, the transactions take place on the basis of lies, and deceptions on everybody's part? That would be a serious charge, involving fraud, and probably other criminal acts in Canada. I am sure that the thousands of transactions are not based on deception.

---

Rahul, for heaven's sake, stop telling spreading canards. If you don't know, just keep off subjects that are not your cup of tea. I heard that you were an IT professional, and not a real estate agent. Your knowledge of the media here, seems to be limited, to say the least Atleast, do not spread lies with an air of confidence.

I am a media professional, that interacts with others in the business - Having said that, I have no choice but to correct factual errors, be that be accidental or those lies you are spreading on purpose.

I would invite you to stop doing a cut and paste job to justify your half-baked theories, that are baseless. In the most recent example, you have tried to tie two issues which are not connected with each other at all : Peter Schiff was fired (and not banned as mentioned by you) on 24th November 2008 from CNN. He was NOT FIRED because he had something adverse to say about Canadian real estate.

" Peter Schiff was being interviewed live on C.N.N. about the state of affairs, and he gave his opinion clearly and without reservations.He mentioned that he opposed the bailout, and would let failing corporations like AIG and CITI simply fail because "there´s a reason they failed"........... He said that "We should also not promote public spending or boost the economy, this is exactly why the U.S. economy failed in the first place".

As for the link about DAVID WOLF, it reads "Canada's housing bubble could SOON burst, and it is dated 24th September 2008.......... what is the meaning of SOON? Is 16 months "soon"? Why do you try to convince the world that it is falling apart, using a link that is 16 months old?

Funny thing is that in one paragraph, you actually say that "in the central bank's view it is premature to be talking about a housing bubble in Canada." Then you paste the above mentioned link.............. are you not contradicting yourself?


As for the other factual errors, CANWEST the parent company of GLOBAL tv has been financially ill for a couple of years, The last major layoff of staffers was in November 2007 - twenty six months ago. This has nothing to do with the imminent " real estate crash"......

As for your saying that these TV stations depend merely on the real estate board for their revenue, that is factually incorrect. If you need more information about their advertisers, you can write to them at the contact address provided on their website. Alternately please send me a pm, and I can send you the information.

It is unjust for you to insinuate that these TV stations are misleading the public or lying about the state of the real estate industry, because they get advertising support from them. That will amount to bribery, and you can write to the CRTC, should you have proof of that. alternately you can write to the Canadian broadcast standards council at this address:

Good luck with your crusade!

Everybody has got their opinion on RE, so Rahul can post what he likes. So why dont you stop cribing ?

Have you bought a house or something ? Fear of losing money ?

His opinion is more or less correct !!

Quote:

---

Originally posted by ILOVENA

Rahul, for heaven's sake, stop telling spreading canards. If you don't know, just keep off subjects that are not your cup of tea. I heard that you were an IT professional, and not a real estate agent. Your knowledge of the media here, seems to be limited, to say the least Atleast, do not spread lies with an air of confidence.

I am a media professional, that interacts with others in the business - Having said that, I have no choice but to correct factual errors, be that be accidental or those lies you are spreading on purpose.

I would invite you to stop doing a cut and paste job to justify your half-baked theories, that are baseless. In the most recent example, you have tried to tie two issues which are not connected with each other at all : Peter Schiff was fired (and not banned as mentioned by you) on 24th November 2008 from CNN. He was NOT FIRED because he had something adverse to say about Canadian real estate.

" Peter Schiff was being interviewed live on C.N.N. about the state of affairs, and he gave his opinion clearly and without reservations.He mentioned that he opposed the bailout, and would let failing corporations like AIG and CITI simply fail because "there´s a reason they failed"........... He said that "We should also not promote public spending or boost the economy, this is exactly why the U.S. economy failed in the first place".

As for the link about DAVID WOLF, it reads "Canada's housing bubble could SOON burst, and it is dated 24th September 2008.......... what is the meaning of SOON? Is 16 months "soon"? Why do you try to convince the world that it is falling apart, using a link that is 16 months old?

Funny thing is that in one paragraph, you actually say that "in the central bank's view it is premature to be talking about a housing bubble in Canada." Then you paste the above mentioned link.............. are you not contradicting yourself?


As for the other factual errors, CANWEST the parent company of GLOBAL tv has been financially ill for a couple of years, The last major layoff of staffers was in November 2007 - twenty six months ago. This has nothing to do with the imminent " real estate crash"......

As for your saying that these TV stations depend merely on the real estate board for their revenue, that is factually incorrect. If you need more information about their advertisers, you can write to them at the contact address provided on their website. Alternately please send me a pm, and I can send you the information.

It is unjust for you to insinuate that these TV stations are misleading the public or lying about the state of the real estate industry, because they get advertising support from them. That will amount to bribery, and you can write to the CRTC, should you have proof of that. alternately you can write to the Canadian broadcast standards council at this address:

Good luck with your crusade!

---