Stephen Poloz says up to 30% overvalued housing big risk to economy

This.

TSX dumped 350 points.

Oil should drop below $60 next day or two.

I think some shit just hit the fan.

Oil below $60??? WTF did I miss yesterday?

Nothing. The House of Saud are having temper tantrums.

I can never figure out the relationship of price per barrel to price per litre at the pump. If oil went down nearly 50% shouldn't the price per litre not follow suite, or is it all taxes?

No no. You see, since the gasoline at the pumps and the gasoline that's still waiting to be distributed to those pumps was refined when the price of oil was higher, if they lower the price at the pump before that "reserve" is gone, they will lose money. That's their explanation for it anyway.
Problem with their explanation is, when the world price of oil goes up, it takes all of about 10 seconds for the inevitable price increase to show up at the gas pumps.

Stop borrowing against your imaginary equity. Smart people should be getting ready to buy distressed properties. Just look for the houses with 30-somethings inside and multiple seriously expensive automobiles parked outside. She's a gonna implode eventually. it ALWAYS happens, eventually.

Bingo.

Live within your means! The vast majority of people these days confuse "afford" and "finance". One does not mean the other. When you can pay for something cash, you can afford it. If you're financing it, you can't afford it, you're just too impatient to wait for it (mortgages excluded - that's one there's really no way around).

I just hope when the crash hits, the interest rates haven't gone through the roof already. Could be a great opportunity for investments.

Got a pile o cash at hand waiting for the crash. Bring it on Baby! Gonna Be Arizona 2009 crash Alberta style!


Condo owners like Boots in Edmonton are up shit creek.

I remember when interest rates were really high back in the early 80s... inflation was going through the roof too, so it was "normal" that house values were following inflation... even though potential buyers were a bit cautious because of the morgage rates. On the plus side, a lot of us were getting 12-14% yearly pay hikes during that period.

Seeing prices going up at more than 10 times the inflation rate, unless they were seriously underpriced, is not a good thing... and the longer it goes on, the worse it will be when that bubble bursts.


FYI - The first house I bought cost me the equivalent of about 1.5 times my yearly salary... and I'm not including what my ex was making.

The normal ratio should be about 3 or 4 times yearly salary.
These days, it's up around 8 or 9.

No no. You see, since the gasoline at the pumps and the gasoline that's still waiting to be distributed to those pumps was refined when the price of oil was higher, if they lower the price at the pump before that "reserve" is gone, they will lose money. That's their explanation for it anyway.
Problem with their explanation is, when the world price of oil goes up, it takes all of about 10 seconds for the inevitable price increase to show up at the gas pumps.

No, because the costs to manufacture that gas from oil, and ship it and sell it all remain the same, as do some taxes, if they're not percentage based. You want to buy your own barrel of oil and refine it yourself, yes, you'll save 50%. The price has dropped quite a bit across the country. I don't know what it is with people, one minute they're arguing that labor is 100% of the cost of a product, the next it's raw material.

Not that PA is wrong about the bullshit tricks the gas stations play.

The normal ratio should be about 3 or 4 times yearly salary.
These days, it's up around 8 or 9.
...and I wasn't a high ranking banker at the time... I was a 20 something teller.

My ex had a part time job and was going to school at the same time.

Well it certainly won't be the 20% that the 80's gave us.

But even getting a rate of 4-5% could cause a lot of people to default.

Plus job losses in the oil fields, you know those only 22,000 jobs...

Dunno, doesn't look that good, definitely not a time to buy.

Well it certainly won't be the 20% that the 80's gave us.

But even getting a rate of 4-5% could cause a lot of people to default.

Plus job losses in the oil fields, you know those only 22,000 jobs...

Dunno, doesn't look that good, definitely not a time to buy.


Wait for that predicted 30% downward adjustment. I remember when that happened in Vancouver back in the 80's.