Canada in recession, rate cut likely: TD. What the?
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Posted on: 15-07-15 11:44:19
This only increases and encourages more borrowing. Canadian peeps are already in debt, instead of using the low interest rates to pay down debt, they will just foolishly borrow more 
They already owe $ 1.70 for every $1.00 they make .
This penalises senior citizens and frugal people who have fixed low risk investments like GIC, Savings accounts etc..they get next to NOTHING interest on it ..they get even less than the 2 % - 3 % inflation
Three documentaries that EVERY Canadian needs to watch:
Money As Debt - Full Length Documentary
https://www.youtube.com/watch?v=jqvKjsIxT_8
The Biggest Scam In The History Of Mankind
https://www.youtube.com/watch?v=iFDe5kUUyT0
Oh Canada Movie - Our Bought And Sold Out Land
https://www.youtube.com/watch?v=UbACCGf6q-c
So this increases borrowing - for sure ... if Canadians are borrowing 1.7 for every $ they make , how will the situation transform when the rates rise ???
Foreclosures , distress sale .. what ?
And if that happens , would not the property prices go down ?
CAD is going down - does it make more sense to hedge in bullion or property ?
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Fido.
Quote:
Originally posted by Fido
So this increases borrowing - for sure ... if Canadians are borrowing 1.7 for every $ they make , how will the situation transform when the rates rise ???
Foreclosures , distress sale .. what ?
And if that happens , would not the property prices go down ?
CAD is going down - does it make more sense to hedge in bullion or property ?
It will be like the US in 2008, except Canadian lenders are stricter (aided by regulation ) and will squeeze the defaulters dry. Govt will probably print more notes and bail out some of the favoured consumers/debtors(wealthy bankers/corporate folks with connections, flat-footed lesbians, transgenders, refugees, single mothers etc.). The costs will absorbed by rest of us in the form of inflation.
If you got lots of loose cash laying around in checking, savings or GICs, maybe it is time to move it to India. Check out, using google, FCNR Rates, SBH India. Or SBI. During next two years rates will sag so you might as well put your cash away in Indian banks at 3.3 to 3.4 APY. I pulled half a mil out and moved it into SBH/SBI. If my take on the current TREND in global markets and finance holds any water (I trust myself, hence the sudden love for banking industry in the Long-Lost Homeland), in Sept-Oct, US will be visited by another Mr Big Recession. Naturally, Canada will shiver in the cold winds coming up North.
Unemployment is quite serious in the Merritimes. I know a pair of recent immigrants, one from India ad the other from S Korea, both piled high and deep (PhD) and working as cleaners. The S Korean is sporty calling himself a sanitation engineer, but the Indian is always in foul mood. I guess the Indian feels his work is far beneath his level! I tell them somehow to find fun in work, after all any work is better than none. Recently, the Korean started seeing light back home and is talking about returning. For the Indian, it is a matter of pride, it looks like. His constant worry is: what can I say to ppl in India about my status in society here, or with what face can I return to India!!! Well such is the situation and there don't seem to be any prospects in near future, since the institutions here are looking to CUT positions, not hire new people.
In the finance blogosphere, there were doubts about Greek deal but it seems to have been averted for now. I guess US rate hike is next possible incident that can wreak havoc but we are not sure that will happen either.... In any case, I have my own presence on market to minimum. I be waiting for 3 years before I worry about loose cash and yields.
How does it work out if we open a savings account in India with the high interest rates than the one here in Canada? What are the Tax implications in Canada & India, and after tax would there be a considerable savings/interest earned?
What is your view on buying a piece of land in India instead of opening an NRE/NRO account? Which one has better yield? I believe another option could be to buy one-two bedroom apartment (India) and rent it out.
I am seriously thinking about taking whatever savings I have to India for a better yield/return. In Canada, it's been a $hi++y investment unless one bought a freehold detached place a couple of years ago.
By the way, frenzy has already started. Saw a couple of houses two days ago that I wanted to make an appointment for. Turned out, they are all sold within a day with no 'subjects'. All these houses are no less than $650k (~3500 sq. ft - 3 level detached).
What is interesting is - almost all the buyers are either Indians or Chinese, while the native White folks are running for the Condo/townhouse route.
