Foodflation rears its ugly head again.Over to you...
While the BoC says that despite all the visible warning signs, inflation is, in fact, under control (yah right) and therefore likely won't be raising rates again in September.
Scotia Bank sees massive profit and claims little exposure to speculative ABCP markets.
Meanwhile RBC states ABCP risks tally to $1.1B; but remember that's barely 3% of annual operating profit.
CHIP finally has some legal competition in the "we'll steal your hard earned home right out from underneath you seniors' unsuspecting eyes" market.
South of the border, new home sales beat expectations, but sales of existing homes drag prices down 3.6%.
Closer to home, BC tops in RE prices, but income gains, not so much, despite record unemployment. BC's average income = $39,500 annually. Income growth gains are LOWEST IN ALL CANADIAN PROVINCES.
This is eerily similar to a certain name we all know and love, non?
"Ingenious" would-be landlords "bend" rules of the RTA to take advantage of uneducated, unsophisticated, first-time renters in a tight market: who would of thunk it?
Tuesday, August 28, 2007
Tuesday News Hunt
Just some highlights from a RE/money market-filled news day:
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3 comments:
Lest we forget this little nugget:
http://tinyurl.com/288x5n
The Bank of Montreal says it has received inquiries, requests for documents and subpoenas from securities, commodities, banking and law enforcement authorities, in connection with $680-million in losses from commodity trades that the bank announced earlier this year.
BMO said the inquiries are in the early stages, and it is unable to determine whether any proceedings against the bank will result. It said it is co-operating with all of the authorities.
The bank did not name specific regulators or law enforcement authorities.
I wonder if the BoC can lower rates. Costs of oil, food, and everything else we use daily has continued to climb. It's only a matter of time until that inflation works it's way into core CPI numbers. With China/India economy's growing and absorbing resources, even with a recession I don't see it stopping the rise of prices in those items. Eventually, I would expect that to filter into the WalMart $50 DVD player getting a bump in price to cover resource cost increases.
I really view the BoC in a tough spot. Raise rates and fight inflation, propping up Canadian dollar and hurting eastern Canada manufacturing base. Or hold/lower(?) rates and let this inflation/stagflation take some real roots into the economy. I tend to believe the latter has already taken place.
On a side note, me and the fiancee were married over the weekend.
congrats village,
I tend to agree with u. I think the inflation rate is much higher than claimed, but i see no action on interest rates as being as problematic as a drop. To me they have to reign in the "buy now pay later" mentality that has become the norm for every purchase including, lately, new condos.
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