LPOC Attack on Homeowners

[WestCanMan]

Interest rates just went up again today, some banks are requiring a 2% stress test to qualify for a 3-yr mtg at 6%, so that's a whopping 8% that buyers buyers need to qualify for. 

This will be the straw that broke the camel's back for a lot of homeowners who were already struggling to pay their mortgages. Prices are going to tank.

[Queenmandy85]

We have been warned for over ten years that interest rates were going to rise and to prepare for it. Many people chose not to heed the warnings. For those who have investments, the rise in interest rates is a welcome relief.

[WestCanMan]

6 minutes ago, Queenmandy85 said:

We have been warned for over ten years that interest rates were going to rise and to prepare for it. Many people chose not to heed the warnings. For those who have investments, the rise in interest rates is a welcome relief.

Warned for over ten years? WTF?

Interest rates were going down that whole time. Obviously they were wrong for the first 9 years. 

[Queenmandy85]

Yes. Interest rates have been very low since the 2008 down turn. Economists have been warning that rates would have to climb back to normal eventually. People were paying way too much to buy houses that they might not be able to afford when the rates return to normal. The problem is people have been spending too much and not saving and investing. That drives up prices which hurts seniors and people who are at the bottom end of the financial scale. 

[herbie]

In the meantime ignore the fact your bank is still paying 0% interest on your chequing account, 1% on your savings and 2% on term deposits. Ignore your 29% credit card interest while you're at it.

We all know Justin Trudeau is 100% responsible for inflation as it is happening nowhere else in the world and the damn socialists won't let us pave over all that wasted farmland in the Fraser Valley for single family dwellings.

[CdnFox]

9 hours ago, WestCanMan said:

Interest rates just went up again today, some banks are requiring a 2% stress test to qualify for a 3-yr mtg at 6%, so that's a whopping 8% that buyers buyers need to qualify for. 

This will be the straw that broke the camel's back for a lot of homeowners who were already struggling to pay their mortgages. Prices are going to tank.

No, it just means people who have no cash are screwed.  The wealthy and corps will still buy and the pricing will still stay up. It's just going to mean developers will slow down construction a little (already happened) and rents will continue to rise and the bottom earners will have no where to live.

[CdnFox]

8 hours ago, Queenmandy85 said:

Yes. Interest rates have been very low since the 2008 down turn. Economists have been warning that rates would have to climb back to normal eventually.

Nonsense.  Both justin trudeau AND the bank of canada stated dozens of times at little as 2,5 years ago that rates would remain low for the foreseeable future.  A lot of people bought because they claimed rates would stay low.  At the time i argued that was not possible with the covid response we were seeing but the liberals and the bank assured everyone that it was certain.

Your claim is simply not accurate.

[WestCanMan]

On 7/7/2023 at 1:41 PM, herbie said:

In the meantime ignore the fact your bank is still paying 0% interest on your chequing account, 1% on your savings and 2% on term deposits. Ignore your 29% credit card interest while you're at it.

We all know Justin Trudeau is 100% responsible for inflation as it is happening nowhere else in the world and the damn socialists won't let us pave over all that wasted farmland in the Fraser Valley for single family dwellings.

When the bank is lending at 1.3% it makes sense to have the low interest rate on the chequing, savings accts, etc. 

If you're paying 29% on your CC there's a huge problem for you.

Justin actually is responsible for inflation because increasing the price of energy drives the cost of everything up. While leftards were patting Justin on the back for his relentless attack on our domestic energy sector we told you many times that it was going to cost us in more places than just at the pump. 

Leftard covid hysteria also hurt the economy and caused inflation (reduced supply = higher costs). 

Now interest rates are being raised "to fight inflation".

Thank you leftards.

And interest rates just went up again today. That's twice in a week. As if they weren't high enough already. 

[BeaverFever]

On 7/7/2023 at 1:57 PM, WestCanMan said:

Interest rates just went up again today, some banks are requiring a 2% stress test to qualify for a 3-yr mtg at 6%, so that's a whopping 8% that buyers buyers need to qualify for. 

This will be the straw that broke the camel's back for a lot of homeowners who were already struggling to pay their mortgages. Prices are going to tank.

I’m feeling the pain of interest hikes too but thread has a poor title. LPOC, Prime Minister, Cabinet etc don’t control the Bank of Canada. It is an independent arms-length institution 

[BeaverFever]

On 7/7/2023 at 11:23 PM, CdnFox said:

Nonsense.  Both justin trudeau AND the bank of canada stated dozens of times at little as 2,5 years ago that rates would remain low for the foreseeable future.  A lot of people bought because they claimed rates would stay low.  At the time i argued that was not possible with the covid response we were seeing but the liberals and the bank assured everyone that it was certain.

Your claim is simply not accurate.

Sorry your post is not correct 

1) Trudeau doesn’t control interest rates or the bank, and no PM has ever made any such promises regarding interest rates 

2)  Nobody was expecting inflation 2.5 years ago and therefore nobody including BOC would have had reason to suggest rate increases wee in store however everyone knew the ultra-low pandemic stimulus interest rates would not be around for long

3) Everyone knows BOC raises and lowers rates in response to economic conditions and nobody has a crystal ball to predict what conditions will be. Bank of Canada never pledged that it would never ever raise interest rates, or that rates would “stay low” but obviously 2.5 years ago (which was about 9 months before the start of the inflation trend) they didn’t have a reason to believe that there would be a need to raise rates. 

[BeaverFever]

2 hours ago, WestCanMan said:

When the bank is lending at 1.3% it makes sense to have the low interest rate on the chequing, savings accts, etc. 

If you're paying 29% on your CC there's a huge problem for you.

Justin actually is responsible for inflation because increasing the price of energy drives the cost of everything up. While leftards were patting Justin on the back for his relentless attack on our domestic energy sector we told you many times that it was going to cost us in more places than just at the pump. 

Leftard covid hysteria also hurt the economy and caused inflation (reduced supply = higher costs). 

Now interest rates are being raised "to fight inflation".

Thank you leftards.

And interest rates just went up again today. That's twice in a week. As if they weren't high enough already. 

You should move to one of those conservative countries where there’s no inflation and where the economy wasn’t affected by covid. Oh wait that doesn’t exist because your “blame the leftards for the weather” diatribe is not based on reality. 

[herbie]

Doing the same as Mulroney did, hiking interest without also hiking income taxes and pumping the GST to 12%. That would stop inflation in it's tracks, wouldn't it?

 

 

[Moonbox]

On 7/7/2023 at 11:23 PM, CdnFox said:

At the time i argued that was not possible with the covid response we were seeing but the liberals and the bank assured everyone that it was certain.

The BoC never, ever communicates in certainties, nor does any economist worth anything, so that's just dumb.  

The average homebuyer barely even knows what the BoC is, let alone how it operates, so the percentage of them who based their decisions on its guidance is tiny, and even then, most of the folks who are feeling the pain now are the ones who bought fixed rates 4-5 years ago, or the geniuses who opted for variable when rates were rock-bottom and had only one direction to go.  

[WestCanMan]

2 hours ago, BeaverFever said:

You should move to one of those conservative countries where there’s no inflation and where the economy wasn’t affected by covid. Oh wait that doesn’t exist because your “blame the leftards for the weather” diatribe is not based on reality. 

Was covid based on reality Beave?

Why was it such a big deal in 2020 when 15,000 people died that we had to see covid on the news 24/7, and then in 2022 when over 19,000 people died we weren't hearing about covid on the news at all anymore?

Why did the MSM try to pretend that covid was killing everyone for two years and then finally acknowledge that "only the very elderly with co-morbidities are dying of covid" when the vaxed started dropping like flies? 

I have all the historical covid death data on my computer to prove that young healthy people were never dying of covid. In fact, people under 20 started dying almost 6x as fast after we started vaxing them. 

It's almost a certainty that more vaxed people died in 2022 than the total number of covid deaths in either previous year, I just can't prove it because Health Canada stopped giving out that data in Sept 2022. 

I would love to live in a country with a MSM that wasn't 100% bought and paid for by big pharma and a liberal gov't. 

[BeaverFever]

6 hours ago, WestCanMan said:

Was covid based on reality Beave?

Half the Republican Party believes it’s a hoax created by Bill Gates or George Soros to enslave the world or something so you tell me. 
 

6 hours ago, WestCanMan said:

Why was it such a big deal in 2020 when 15,000 people died that we had to see covid on the news 24/7, and then in 2022 when over 19,000 people died we weren't hearing about covid on the news at all anymore?

Why did the MSM try to pretend that covid was killing everyone for two years and then finally acknowledge that "only the very elderly with co-morbidities are dying of covid" when the vaxed started dropping like flies? 

I have all the historical covid death data on my computer to prove that young healthy people were never dying of covid. In fact, people under 20 started dying almost 6x as fast after we started vaxing them. 

It's almost a certainty that more vaxed people died in 2022 than the total number of covid deaths in either previous year, I just can't prove it because Health Canada stopped giving out that data in Sept 2022. 

I would love to live in a country with a MSM that wasn't 100% bought and paid for by big pharma and a liberal gov't. 

So you make many misrepresentations about COVID and about what authorities said about covid but since those have be rehashed to death let’s just refocus on your original point in this thread which is that Justin Trudeau and “leftards”are exclusively responsible for inflation and the economic damage caused by covid. In order to support your statement, you need to show us a conservative-run country where there was no inflation and no covid economic damage. Otherwise your argument is like blaming Trudeau for the weather. Get it?

[Nationalist]

9 hours ago, BeaverFever said:

I’m feeling the pain of interest hikes too but thread has a poor title. LPOC, Prime Minister, Cabinet etc don’t control the Bank of Canada. It is an independent arms-length institution 

Responding to the fiscal mess Pixie-Dust has ushered in.

[ExFlyer]

3 minutes ago, Nationalist said:

Responding to the fiscal mess Pixie-Dust has ushered in.

Fact is Canada has one of the lowest  central bank rates in the world, certainly in the G20...

https://www.cbrates.com/

 

Edited July 13, 2023 by ExFlyer

[Nationalist]

13 minutes ago, BeaverFever said:

Half the Republican Party believes it’s a hoax created by Bill Gates or George Soros to enslave the world or something so you tell me. 
 

So you make many misrepresentations about COVID and about what authorities said about covid but since those have be rehashed to death let’s just refocus on your original point in this thread which is that Justin Trudeau and “leftards”are exclusively responsible for inflation and the economic damage caused by covid. In order to support your statement, you need to show us a conservative-run country where there was no inflation and no covid economic damage. Otherwise your argument is like blaming Trudeau for the weather. Get it?

Russia.

[Nationalist]

6 minutes ago, ExFlyer said:

Fact is Canada has one of the lowest  central bank rates in the world, certainly in the G20...

https://www.cbrates.com/

 

Is that supposed to make people feel better?

Canada and all the western nations, bought into this "money for nothin" escapade and blamed The Rona for it all. Hell many still hide behind the skirt of The Rona.

The spending was stupid. The shutdowns were stupid. Now we pay for the stupid...while silly little nonses run around crying, "It was The Rona!" Such alarmist horseshit.

[ExFlyer]

49 minutes ago, Nationalist said:

Is that supposed to make people feel better?

Canada and all the western nations, bought into this "money for nothin" escapade and blamed The Rona for it all. Hell many still hide behind the skirt of The Rona.

The spending was stupid. The shutdowns were stupid. Now we pay for the stupid...while silly little nonses run around crying, "It was The Rona!" Such alarmist horseshit.

Nope but ya can stop whining about your poor situation.

Canada is better off than most countries and if you cannot come to grips with that, then there is no hope for you LOL

Get over your "Rona" phobia. It ain't gonna make things better nor is it gonna change.

We pay for the "stupid" people that over spent and cause the central banks to increase the rates to prevent them from spending more.... all economists will tell you that but hey, you know better LOL

"According to the federal agency, household debt as a ratio to disposable income rose to 184.5 per cent in the first quarter of 2023, up from 181.7 per cent in the fourth quarter of 2022.J"  https://www.thestar.com/business/2023/06/14/how-much-do-canadians-owe-in-consumer-debt-for-every-dollar-of-income-latest-numbers-expected-wednesday-morning.html

That has nothing to do with "Rona" and everything to do with overspending citizens. 184% increase in debt in one quarter alone....

Edited July 13, 2023 by ExFlyer

[CdnFox]

10 hours ago, BeaverFever said:

Sorry your post is not correct 

It is.  As we'll see.

Quote

1) Trudeau doesn’t control interest rates or the bank, and no PM has ever made any such promises regarding interest rates 

If by 'control' you mean absolute authority then no - but they do HEAVILY influence them.

First off, it is well known that the boc is in fact influenced by the prime minister.  All prime ministers.  That's a thing. The bank isn't entirely independent as it would appear to be on paper.

But more importantly the gov't is well aware that it's spending policies are going to affect inflation and inflation means the bank will raise interest rates, Other fiscal policies also affect interest rates. To pretend that gov't spending and policy has no affect on interest rates is laughable.

So yeah - he exerts a fair bit of control over interest rates.

And he's said numerous times  that his fiscal planning was based on the fact that interest rates were going to be low so it's a good time to borrow.

The interest rate problem is MOSTLY a result of trudeau's policies which lead to excessive inflation.

 

Quote

2)  Nobody was expecting inflation 2.5 years ago and therefore nobody including BOC would have had reason to suggest rate increases wee in store however everyone knew the ultra-low pandemic stimulus interest rates would not be around for long

Tonnes of people were.  There were newspaper articles commenting that trudeau can't trust on low interest rates for long.  EVERYBODY knows that when you dump hundreds of billions of unearned dollars into our economy THERE IS GOING TO BE INFLATION.  

Pierre pollievre was speaking about it constantly. That's why when inflation came out of the blue 1.5 years ago he said the BoC boss should be fired.

The BOC admitted they screwed up and got it wrong on inflation and didn't do the right things back in 2021, That's 2 and a half years ago isn't it?

The libearls and media didn't want to talk about it but EVERYBODY WITH A BRAIN knew that it was a very serious threat.

 

Quote

3) Everyone knows BOC raises and lowers rates in response to economic conditions and nobody has a crystal ball to predict what conditions will be. Bank of Canada never pledged that it would never ever raise interest rates, or that rates would “stay low” but obviously 2.5 years ago (which was about 9 months before the start of the inflation trend) they didn’t have a reason to believe that there would be a need to raise rates. 

They had every reason to believe they would need to raise interest rates.  It was obvious that inflation was going to be a problem.  It was a very serious concern BEFORE covid with the way gov't was spending money.  But it was blatantly obvious to all once covid spending started that it was a real risk.

It is revisionist history to claim nobody had reason to believe interest rates would go up or that nobody talked about it.  And the bank and the gov't frequently sent the message that interest rates were low and would remain there

Here's macklem saying interest rates will be low "for a long time" in 2021.

https://www.bnnbloomberg.ca/interest-rates-will-be-low-for-a-long-time-macklem-1.1465901

 

Bank of Canada Governor Tiff Macklem assured Canadian households and businesses that borrowing rates will remain at historic lows for the foreseeable future.

“Our message to Canadians is that interest rates are very low and they’re going to be there for a long time,” Macklem said at a press conference Wednesday.

His comments came after the central bank announced it is holding its key interest rate at 0.25 per cent in response to what it calls an “extremely uncertain” economic outlook due to the COVID-19 pandemic.

[Nationalist]

24 minutes ago, ExFlyer said:

Nope but ya can stop whining about your poor situation.

Canada is better off than most countries and if you cannot come to grips with that, then there is no hope for you LOL

Get over your "Rona" phobia. It ain't gonna make things better nor is it gonna change.

We pay for the "stupid" people that over spent and cause the central banks to increase the rates to prevent them from spending more.... all economists will tell you that but hey, you know better LOL

"According to the federal agency, household debt as a ratio to disposable income rose to 184.5 per cent in the first quarter of 2023, up from 181.7 per cent in the fourth quarter of 2022.J"  https://www.thestar.com/business/2023/06/14/how-much-do-canadians-owe-in-consumer-debt-for-every-dollar-of-income-latest-numbers-expected-wednesday-morning.html

That has nothing to do with "Rona" and everything to do with overspending citizens. 184% increase in debt in one quarter alone....

I'm not in a poor situation. I'll just raise my rents. So...we're a "better brand of bad" than other nations? Oh Goodie!

Why do you think household debt is rising? Could it be...that inflation is eating away at people's income and they use credit to maintain the same life-style?

[ExFlyer]

9 minutes ago, Nationalist said:

I'm not in a poor situation. I'll just raise my rents. So...we're a "better brand of bad" than other nations? Oh Goodie!

Why do you think household debt is rising? Could it be...that inflation is eating away at people's income and they use credit to maintain the same life-style?

For sure inflation is a problem but, it is a world wide problem and a small nation like Canada that relies on imports pays for it.

Inflation is also self preserving. The more prices go up, the more people spend to "hedge inflation".

I look at this somewhat realistically. Yes, prices are up, yes inflation is one of the causes but, while things cost more, people are spending on luxury stuff like vacations and new cars etc. I lived through real inflationary times (early 80's more than 14% and mortgages up to 18%) ) and I had to do without, and did, and survived. I learned to live with less, no vacations and 12 year old car.

I do blame banks to a certain extent. When they offer home loans that are clearly beyond the means of buyers, that is morally wrong but, when buyers accept this and buy a house with no margin for inflation or rising prices, the buyer has to accept a certain amount of responsibility for their dilemma. I personally would not be surprised to see a housing collapse or crisis like in the US a few years back.

Edited July 13, 2023 by ExFlyer

[Nationalist]

2 minutes ago, ExFlyer said:

For sure inflation is a problem but, it is a world wide problem and a small nation like Canada that relies on imports pays for it.

Inflation is also self preserving. The more prices go up, the more people spend to "hedge inflation".

I look at this somewhat realistically. Yes, prices are up, yes inflation is one of the causes but, while things cost more, people are spending on luxury stuff like vacations and new cars etc. I lived through real inflationary times (early 80's more than 14% and mortgages up to 18%) ) and I had to do without, and did, and survived. I learned to live with less, no vacations and 12 year old car.

Yes...the move off the gold standard along with the costs incurred by both the Vietnam war and the new social programs did create a huge bout of inflation. This was all caused by something called...overspending by the government. WAY overspending.

We have the same issue now. The governments have literally spent us into an inflationary cycle. And sure...people are going to try to stretch their credit for a while, till they start getting in trouble. But a new car or a vacation is not the primary cause of this inflation. Panic and insanity that appears to have been...planned...created this.

[Moonbox]

1 minute ago, Nationalist said:

We have the same issue now. The governments have literally spent us into an inflationary cycle. And sure...people are going to try to stretch their credit for a while, till they start getting in trouble. But a new car or a vacation is not the primary cause of this inflation. Panic and insanity that appears to have been...planned...created this.

"Planned panic and insanity" ??

George Soros Klaus Schwab WHO, MSM fake news, something something SPOOKS!