Chinese Homebuyers Spreading Wealth Make Vancouver Pricier Than Manhattan

10 posts

Broseph
The picture holds true. My problem with social credit theory stems from:

1) A+B payments stuff doesn't hold/isn't true.
2) No understanding/respect for incentives.
3) Misunderstanding of trade, but still some decent insights
4) Printing money doesn't produce wealth. It just makes more money.
5) It's less a theory, and more just a bunch of critiques. I've read Douglas' work, but he brings about no real framework or economic policy. Just some suggestions.
Broseph
[​IMG]

For some insight into who's at the helm with all this:

From from the early 90's until 2004, we had Chretien with a majority. Until the end of 2005, Martin with a minority. Harper had minorities from feb 2006 to march 2011. Harper now has a majority.

Until the last month, I don't think a single MP has spoken about the CMHC. Actually, I still haven't heard any soundbites from them. I'm just speculating that they're now talking about this.
Broseph

Another good post by Garth: http://www.greaterfool.ca/2012/06/03/from-bull-to-bitch/

Broseph
Broseph
Niccolo and Donkey
Broseph

Couldn't tell you, but I'll keep my eyes peeled for more info.

President Camacho
It's an arbitrary term... in the US, a "high-risk mortgage" would typically be one that doesn't meet Fannie Mae's or FHA's underwriting guidelines, usually involving a low borrower credit score (ie, under 620) & debt-to-income ratio >50%, and/or certain other factors like if it's a manufactured (ie, trailer-trash) home, or if there is negative equity on the home, etc. These types of mortgages are very difficult to sell to the huge private investors (Citi, Wells Fargo, etc) and impossible to sell to Fannie & Freddie, so the bank that underwrites and funds the loan would either have to service the loan themselves or find alternative investors to assume the debt, usually at a discount because of these loans' statistically higher rates of default.

Does Canada have a huge secondary mortgage market like the US?
Broseph
I wouldn't say that it's nearly the size of the one the US had back in 2007, but it's grown substantially and visibly in the past 3-4 years.
Broseph