turmoil.....continues

as outlined last month - the canadian finance minister outlined tax cuts to keep everyone happy. The canadian dubloon continues to stay above par in respect to the us greenback - oil is nearing 100 per barrell- gold is over 800 and yet the markets are dropping like stones as the financial institutions and others admit to their transgressions with respect to the mortgage market and subprime market.
This will continue for a few more months - but rest assured people will grow tired of this news and focus on something else shortly.
for now - if you want to refinance call us - its time to get rid of credit card debt / consolidate to lower payments and batten down the hatches.

greygoose
out

fed moves - flaherty budget update.....

tomorrow the fed reserve in the US will likely reduce the interest rates by 1/4 of 1 percent
this has caused the canadian dollar to spike in anticpation near the 1.05 level.
and finance minister James Flaherty will spew more information tomorrow after the market close - will he destroy the market further like the trust unit debacle of last halloween..or will he reduce personal and corporate taxes.
my bet is he will propose lower taxes of some sort - since they are raking in a surplus of 1 billion per month or more.
wait and see
greygoose out....

topsy turvy which way to go ....?

In the past few months we have seen the US subprime debacle spill over to our own mortgage market. Many of the lenders who dabbled in subprime in Canada have pulled in their horns, cutting back on loan to values - increasing interest rates or ceasing lending altogether.
In the meantime the Canadian dollar (doubloom) has exceeded par against the US dollar.
The problem is this will hurt our manufacturing companies in Canada as they find it difficult to compete when our exports are expensive in the eyes of our trading partners - especially the US.
Recently the jobs numbers showed a major increase in new jobs which has once again raised the spectre of 'Inflation'...duh.... no kidding
just check your pocket book after you pay auto expenses - hydro - food costs etc -
Rumour has it the bank of canada may increase rates to slow the loonie and the economy hopefully - this anticipation is welcomed by the lending institutions as they are raising interest rates in advance of any move - from 5.79% to 5.99% as of tomorrow.
Keep watching - see if they raise again when the bank of Canada moves......

the world is unfolding as it should

It would appear interest rates have stabilized for the moment - the bank of canada would love to increase rates and slow our economy -but that would cause the loonie to rise and destroy our manufacturing sector...catch 22
i suspect the bank will hold rates steady and let the US drop rates - hoping we can then keep the loonie under control
time will tell

reality check

well - i guess i was ahead of my time. I predicted a credit crunch -but did not think it would materialize this quickly.
The past week has been a real stomach churner. But realize the world is not coming to an end.
it would appear now a slow down is upon us - a recession is possible.
Rates will likely stabilize and possibly drop
keep your head - pay down the debt as quickly as you can

greygoose out

time flies - its the end of july

time flies - and interest rates have held steady for a few weeks - will they go higher ????
Probably -but likely not more than 1/2 of a percent.
the canadian dollar will likely do the majority of the work for the bank of canada and slow the economy - but a disturbing item is the current retail sales which showed a dramatic increase.... to me that means our exports are expensive due to the dollar and the imports are cheap - so people are buying - but are they paying cash or using credit ??? My gut says credit and that will eventually cause a credit crunch - payoff debt - consolidate - reduce your monthly costs - batten down the hatches and await the coming storm - it may not be this year - but likely sometime next year we will see problems arise
greygoose out

back from san antonio

We just returned from the Kiwanis International Tournament in San Antonio Texas
What a great spot - if you get a chance to go and visit the Riverwalk - Go..its a great spot.
Hot - Humid
Now back to reality
Interest rates have moved up - but how far will they go ?
Prime increased by 1/4 of 1 per cent to 6.25 - and the bond market has priced in another increase in September - but i dont see interest rates skyrocketing.
Now is the time to consider either locking in - if you are nervous
or take Prime less .90 on a variable rate which would equal 5.35
in any event rates are not high by historical standards -
greygoose out