Potential crises brewed in all corners of the world—including a bomb ticking in Canada’s commercial paper market. (G&M Saturday)Makes for some interesting reading, non? H/T to anon in previous thread for Journal article.
Bond traders are consuming paxil like it’s candy from a Pez dispenser. (G&M Saturday)
On Asset Backed Commercial Paper (ABCPs): call it a mutual fund of loans with a maturity date… as for the “asset-backed” part – that’s to give investors a sense of security, to compensate for the fact they have no clue what they’re buying. (G&M Saturday)
Our opinion is that natural economic cycles are bigger than anything the Fed can do and natural cycles always win—a cycle delayed only gets bigger and more dangerous. (G&M Saturday)
Taking out a mortgage with little or no down payment, interest-only payments, or an amortization period greater than 25 years is essentially the same as renting, unless you can deduct some of the interest against rental or business income. In fact, it may even be more costly than renting, if the property falls in value while you own it (Edmonton Journal, Today)
People with 40-year mortgages are also taking on car loans, lines of credit and making minimum monthly credit card payments which barely service the 22-per-cent interest they're paying. (Edmonton Journal, today)
45 per cent of Canadians underestimate the lifetime cost of a mortgage.Only one-fifth of respondents correctly answered that due to interest payments, the average Canadian homeowner will ultimately pay in the range of 151 to 200 per cent of the original loan amount over the course of a 25-year mortgage. (Edmonton Journal, today)
Canada's current real estate bubble is likely to burst within three to five years at the outside. (Edmonton Journal, today)
New on the horizon are 40-year, no-down-payment and no-interest mortgages, which produce little if any home equity. (Edmonton Journal, today) Seemingly celebrated here? (tongue in cheek)
In March, a lender said it was responding to "continued demand for flexible mortgage options that make buying a home easier for Canadians."
It also cited a Canadian Mortgage and Housing Corporation survey showing "40 per cent of Canadian mortgage consumers are willing to make higher mortgage payments if it means they can buy a home sooner with a smaller down payment.(Edmonton Journal, today)
Monday, August 20, 2007
Notable News Quotes: Y2ThisTimeIt'sDifferent
Catching up on news now that I'm back home. Here's some standouts from several hours of reading: