easy reading

[sumdumguy]

This housing crash is not over. I was talking to a
young dealer at Monte Carlo Casino. She told me
they just moved into a beautful new home more
than twice the size of their last one- the one that
they gave back to the bank. Wonder how they
qualified to buy a house in guard-gated
Tuscany? Now they bought it in her name. When
will the banks learn that they are about as likely
to make the payments on this one as they did on
the last one?

[FarmRanger]

The U.S. allowing mortgage interest to be a tax deductible expense was part of the beginning of the end. Fanny Mae, and Freddy Mac policies of lending to people who shouldn't have qualified for loans. Top it off with massive deficit spending and huge unfunded liabilities. Taken together, we are seeing the natural results.

Huge bureaucracies enforcing over-regulation, and an increasing anti-business sentiment are not going to help a recovery.

[FarmRanger]

Trade is good Wilagro. Restricting trade ultimately lowers everyone's standard of living.

How does killing business ever increase the wealth of anyone?

[mustardman]

So Farmranger you think the banks should be deregulated in Canada like the states? Your thinking this might help our economy?

[cottonpicken]

You need to keep perspective on things.


Free trade is good,but when the americans flood the
market with cheap subsidized corn(example),the
system is screwed.

Our banks have some skeletons and our system is not
immune.They are levered and exposed and it only
takes a few points to make them insolvent.

[FarmRanger]

….Canada’s regulatory approach is undoubtedly simpler than America’s, and probably smarter. But it is not noticeably tighter. It sets limits on banks’ leverage ratios, requires them to be adequately capitalized, but avoids the sort of micromanaging in which U.S. federal and state governments have habitually indulged since the days of Andrew Jackson.
<A HREF=”http://www2.macleans.ca/2010/02/08/our-banking-rules-are-smarter-not-tighter/”>from a Macleans article from Feb 8, 2010</A>

[cottonpicken]

Sort of a side track but....

The us is a mess,the europe is a real mess,japan is
screwed,the china is a wild card,the rest of the
world is maybe to small to worry about.

Europes economy is the size of china and the us put
together.

Sometimes i wonder if we are not starring right at
the most obvious thing ever.

And we cant see the forest because the trees are in
the way.

[malta]

Many people considered poor in the USA are doing quite well. I don't remember the exact numbers so these are from my memory, but around 50% of the poor own a home. Over 90% have a microwave. Over 80% have a cell phone. Over 80% have more than 1 TV. It was up in the 80-90% who had cars. There was a lot more but I can't find the article right now. The author pointed out that the left shows people on the street then quotes povery stats. When our guilt kicks in they get to perpetuate the welfare, nanny state mentality. After all who could be against the government helping "poor" children. Over 30,000,000 people in China still live in caves, now thats poor.

[mustardman]

Malta maybe so, but then they don't have mortgage payments.

[grassfarmer]

Malta I think if you looked into the Chinese cave dwellings you would find they are generally a better type of accomodation than what the first nations people in that Northern Ontario community on the news recently live in. I'd rather live in a house tunnelled into a hillside than a tent or a shack in a -40C climate.

[cottonpicken]

I wonder if the cup is half full crowd would still be rosy
if it was their bank that evaporated overnight with
their savings?

"its a rescession when your neighbour losses their
job,its a depression when you do"

[crusher]

How do some of you guys sleep at night?
Focus on what you can control not what the EU or the yanks are doing. Phone up some buddies this week and go for a beer. Talk about your kids Christmas concert, that monster canola crop down by the river or that trip you're taking in January. Relax already tis the season to celebrate!! Merry Christmas and Happy New Year!! The glass is half full .

And for those that want more depressing news google 'kyle bass'.

[furrowtickler]

We can no longer afford to give new housing to those who trash it within weeks. They need a much different solution.