Canada tightens mortgage rules to stop housing bubble

[Cliffy]

Maybe, back about 1981 when mortgage rates were at 21%, savings accounts were paying about 17% and we didn't go into any deep depression, But I still think the whole situation was stupid.
Anyway banks don't really set anything, beyond making the final button pushing moves. People have to start realizing that money is "live" and finds it's own levels.

Money is a worthless fiction. Only about 4% of all available wealth worldwide is circulating as currency. The rest is just 0s & 1s in cyber space. Every time you borrow $10, the bank receives $100 in credit. They don't even have to have $.01 in their vaults anymore to backup their cash deposits.
You might want to download this free ebook to get the real picture on how banks actually operate: http://www.spiritualeconomicsnow.net/solutions/How_I_08.pdf

 

[Kreskin]

Inflation is one of the drivers behind interest rates, and in the last year or 2 we've had negative inflation. That's one of the core reasons why cash on deposit is virtually nothing at the moment.

 

[JLM]

Inflation is one of the drivers behind interest rates, and in the last year or 2 we've had negative inflation. That's one of the core reasons why cash on deposit is virtually nothing at the moment.

Sounds sensible to me.

 

[darkbeaver]

Money is a worthless fiction. Only about 4% of all available wealth worldwide is circulating as currency. The rest is just 0s & 1s in cyber space. Every time you borrow $10, the bank receives $100 in credit. They don't even have to have $.01 in their vaults anymore to backup their cash deposits.
You might want to download this free ebook to get the real picture on how banks actually operate: http://www.spiritualeconomicsnow.net/solutions/How_I_08.pdf

Thanks Cliffy looks like fine readin. Fornicate the machine.

 

[Cliffy]

Inflation is one of the drivers behind interest rates, and in the last year or 2 we've had negative inflation. That's one of the core reasons why cash on deposit is virtually nothing at the moment.

No cash in the banks was legislated a while back. There is no real wealth, no commodity or service to back up our currency, thus it is a fiction - worthless paper circulating in the ether.

 

[Cliffy]

Thanks Cliffy looks like fine readin. Fornicate the machine.

Fornicating is actually a productive activity. Banking is not. You sir, have blasphemed!;-)

 

[darkbeaver]

We will be cooking our rabbits on bundles of worthless banknotes. If we are lucky.

 

[JLM]

No cash in the banks was legislated a while back. There is no real wealth, no commodity or service to back up our currency, thus it is a fiction - worthless paper circulating in the ether.

What about our natural resources? trees, gold, oil, copper, zinc, fish.

 

[Cliffy]

What about our natural resources? trees, gold, oil, copper, zinc, fish.

We get paid worthless cash for resources that don't belong to us. The whole system is fiction. Someone made it up, sold the idea to everyone even though they know nothing about what it means, and then they have the audacity to charge you interest and taxes to participate in the charade. We are all paying to play the game of monopoly and only the game owner ever profits by controlling the game. Our curency is worth about as much as Monopoly money - 0.

 

[darkbeaver]

Fornicating is actually a productive activity. Banking is not. You sir, have blasphemed!;-)

I was thinking of the unproductive fornications usually favoured by bankers lawyers and priests.;-)

 

[SirJosephPorter]

In economics 101 Cash is King so if the banks are unwilling to pay more interest then it's time to pull the money out and put it elsewhere where it will earn more money and then the banks will raise their interest rates to get the money back and in economics 101 this is called supply and demand.

Quite so, Liberalman. That indeed is the lesson of Economics 101. If you have cash on hand, don't put it in the bank in a savings account (and hope to get 8 or 9% interest). Invest it in stocks, bonds, mutual funds etc. prudently and you will reap the harvest in the long term.

 

[SirJosephPorter]

Maybe, back about 1981 when mortgage rates were at 21%, savings accounts were paying about 17% and we didn't go into any deep depression, But I still think the whole situation was stupid.
Anyway banks don't really set anything, beyond making the final button pushing moves. People have to start realizing that money is "live" and finds it's own levels.

We were in deep economic trouble at that time, JLM. Maybe it wasn't a depression, but we did have a recession at that time. Actually what we had was stagflation, a rare condition where we have high unemployment and high inflation at the same time.

 

[SirJosephPorter]

Inflation is one of the drivers behind interest rates, and in the last year or 2 we've had negative inflation. That's one of the core reasons why cash on deposit is virtually nothing at the moment.

Quite so, but give it time. Interest rates are definitely on the way up.

 

[TenPenny]

Quite so, but give it time. Interest rates are definitely on the way up.

They can hardly go down!

 

[JLM]

We were in deep economic trouble at that time, JLM. Maybe it wasn't a depression, but we did have a recession at that time. Actually what we had was stagflation, a rare condition where we have high unemployment and high inflation at the same time.

Surely not under Mr. Trudeau's leadership.

 

[JLM]

Quite so, Liberalman. That indeed is the lesson of Economics 101. If you have cash on hand, don't put it in the bank in a savings account (and hope to get 8 or 9% interest). Invest it in stocks, bonds, mutual funds etc. prudently and you will reap the harvest in the long term.

Absolutely- as long as you have a five year time horizon and at least moderate risk tolerance.

 

[SirJosephPorter]

Surely not under Mr. Trudeau's leadership.

And why not? I have never denied that Trudeau was terrible at economic management. He was the best PM Canada has ever had, in spite of his poor economic skills, not because of them. The contribution made by him to Canada (repatriating the constitution and giving us the Charter, standing up for individual rights etc.) will be remembered as long as Canada endures.

 

[SirJosephPorter]

Absolutely- as long as you have a five year time horizon and at least moderate risk tolerance.

Quite so, we are on the same page here. The money you need in the short term, earlier than five years, leave it in the current account or Money Market Fund (where it gets a bit more interest but still is as secure as in the current account). Anything over and above that, invest in a solid, conservative, diversified portfolio and you can’t go wrong.

 

[JLM]

And why not? I have never denied that Trudeau was terrible at economic management. He was the best PM Canada has ever had, in spite of his poor economic skills, not because of them. The contribution made by him to Canada (repatriating the constitution and giving us the Charter, standing up for individual rights etc.) will be remembered as long as Canada endures.

IN YOUR OPINION......:smile:

 

[JLM]

Quite so, we are on the same page here. The money you need in the short term, earlier than five years, leave it in the current account or Money Market Fund (where it gets a bit more interest but still is as secure as in the current account). Anything over and above that, invest in a solid, conservative, diversified portfolio and you can’t go wrong.

For short term safe investing I'd go into a mortgage fund or Gov't bond fund.