Location: carl sagan's universe
Posted on: 15-10-09 09:54:20
Interest rates to be hiked?Reaction to an article in the Star.
This ain't no nothing on financial planning just being a fanfaron- that's all!
Please read article(short and sweet)
http://www.thestar.com/comment/article/710394
and did you know only the super rich can save us or so Ralph Nader says?
http://mybreakingnews.cp24.com/mediadetail/1509034?collection=528&offset=32&siteT=
Quote:I don't know U did U write that article?
Originally posted by investpro
This ain't no nothing on financial planning just being a fanfaron- that's all!
Please read article(short and sweet)
http://www.thestar.com/comment/article/710394
why shouldn't Canadian govt raise interest rates?
to fund all these bailouts and stimulus we need foreign investment
Location: carl sagan's universe
Posted on: 16-10-09 04:54:28
If Canada raises intereest rates- that would make the CAD dollar more attractive and drive up its price even more and hurt the industries thriving on export leading to job losses.
Why will foreign investment come in? Are you suggesting that Canada raises interest rates and also issue new treasury bills so that rich sovereign countries can hold its debt?Or as the industry says- hold the country by its b*lls?
That is the rhetoric being used to describe the relationship between US and China. China needs US to thrive and spend to drive its export oriented economy for the time being so it is lapping up new US treasury bills and the word out there is that it holds 70% of all new US debt. If the US has China by the neck, China has the US by the b*lls.
Unless of course the US decides not to honor its debts.
keeping interest rates artificially low for long periods of time doesn't guarntee growth, quite the opposite.
look at japan for the last 20 yrs or so.
the only way to control this real estate boom madness is to raise interest rates.
the mortgage madness and leverage madness will reduce, home prices will reduce and the madness will end.
just my opinon, take it or leave it
Location: carl sagan's universe
Posted on: 16-10-09 21:30:49
I agree that low interest rate for mortgages spur home sales and thereby the real estate prices, so why not increase the mortgage rates?
Slightly over a year ago, I used to clinch deals for people at prime minus 1%. As the turmoil grabbed the markets, the mortgage rate went to prime +1% then slowly as the markets got better it went down to prime and even as low as prime-.10%. Again they are on the way up.
So mortgage rates can be independent of prime rates. Why not jack up mortgage rates to prime+3%? But leave the overnight rate at .25% for the time being o/w the revivial of the economy will sputter out.
Location: carl sagan's universe
Posted on: 21-10-09 23:23:49
well looks like the BoC has decided to leave interest rates put jes like I opined they should.
Many say that banks should charge the posted rate for mortgages instead of discounting them so as to stem the spurt in home prices and sales.
However the flip side of that is that will lead to banks making more money than they are already.
However the first school says that to offset that, they should cut away ATM drawing charges, account handling charges, reduce interest rates on credit cards..etc. etc.
Oh well endless debate...
