and so the world continues....

Well - President Obama visited Ottawa this week - and did more to promote Canada in 5 short hours than Stephen Harper and the Conservatives have done in the past year. He said- i love this country - and bought a beavertail (for those of you who dont know - its not an actual tail...its a pastry deep fried and topped with toppings like butter and cinnamon sugar or garlic and cheese).
Interest rates have dropped since i las posted -prime is at 3 per cent
5 year money is as low as 3.99 - the lowest i have seen in 30 years in the business.
The gloom and doom scenario continues to dominate the news - so lets think about this logically...if there is such a thing as logic.
If all property values drop - people will continue to pay their mortgages and their homes will be a place to live instead of a get rich quick opportunity. (It should have been treated as a place to live from day one).
The stock market values have plummeted and people see their RRSP values dropping by 50 per cent or more - especially the Canadian Banks (as i write this Bank of Montreal is paying an 11 per cent dividend). Are we in for doomsday ?
i dont think so...will it be a tough few years ?...absolutely
So why are the banks dropping - i would suggest its the American Investors selling shares to raise cash - and since there are 10 times the people in the USA they have more control over our stock market as their Mutual funds invest in Canadian Banks - albeit in small amounts - but when everyone is running from financials - the baby tends to get thrown out with the bath water.
I have been a huge proponent of gold and gold stockst moving up..and we are seeing that happen
and now i am buying Canadian banks in the belief that they will flourish over the next 3 years - and i will receive a great divident until it turns around
I also am of the mind- i dont care about the underlying share value as long as they keep paying me the dividends - i dont need the capital but i do like the cashflow from dividends
in any event - time to watch the oscars. ...let me know if you have questions
Refinance - to payoff debt and stay as liquid as possible - but dont forget the addage - buy when everyone else is selling
greygoose out.

Happy New Year 2009

Hi All
rates are stable at the moment and it looks like we will see another drop in the prime rate on January 20th when the bank of canada sets their rate.
currently the prime is 3.5% and variable rates are available at prime plus .50 to prime plus 1%
5 year money is in the range of 4.65 - 4.99%
the market has slowed down and we are constantly being bombarded by news of job losses and doom and gloom.
Now is the time to prepare for 2009 - refinance - make sure you have good liquidity and can carry your debts througn 2009 and 2010.
we may see a bounce but i dont see a major bounce in the economy until late 2010---- but that is just my humble opinion - would love to hear what you have to say....
greygoose out
ps. on a 15 day cleanse program -damn i miss coffee / wine and my greygoose..........

update - beam me up scotty

as the year draws to a close - we have seen the prime rate drop over the past few months as central bankers try to keep the entire financial system of the world -liquid.
We have seen the market slow down and i have seen many people in financial trouble before Christmas - this is very unusual - we dont normally see the 'cracks form until after january or february visa and mastercard bills hit the mail'
it will be a difficult winter - hunker down and stay tuned
until then
Have a Happy New Year and remember the sun will come up tomorrow - no matter what happens...
i am here if you need help or to chat

greygoose out...where are the olives ?

mayhem in october

as we near the end of october - we have seen market panic. Interest rates in Canada for the variable (floating) rates have moved from prime -1% to prime plus 1% and then the bank prime has dropped 3/4 of a percent....but really they have increased by 1.25% thus increasing the bank spreads.
fixed rates have increased by approximately 50 bp....the canadian banking system is in much better shape than many other countries, but we will not escape this mayhem.
the question remains..in the long term will consumer demand drop and cause deflation or will the massive amounts of money from the US treasurey cause inflation....that is the trillion dollar question as there are no more million or billion dollar questions - they are too small.

mortgage mayhem

the US mortgage market has come apart - and congress is now trying to negotiate a 700 billion dollar bailout - this may stabilize the market for a short time but will it work for the long run ?
the entire world will be affected - rates will rise but they cannot skyrocket - or the economies will stall and a major recession will occur.
try to payoff debts - refinance to reduce monthly outlay - will keep in touch
greygoose out.

govt steps in to chage canadian mortgage market

very interesting
the government has changed the lending regulations for insured loans as of October 15th
they are eliminating 100% financing and requiring a minimum 5% downpayment (no clarification yet on whether clients can still borrow the 5%)
reducing the amortization from 40 years to 35 maximum
adjusting the maximum ratio for qualifying to 45% of gross income (still too high in my opinion)
this is all a function of the US spillover - we certainly live in interesting times

greygoose out.....

steady as she goes

interest rates are holding relatively steady - but the major lenders are playing games. they will give you a pre-approval which is generally a higher interest rate than if you were actually purchasing or refinancing.
then they will give you a better rate 30-45 days prior to closing for 'real' transactions.
what is the downside ? - if you are renewing or looking to lock into a fixed rate from a variable or floating rate - you will likely get a higher interest rate than the lenders very best rate because they are keeping their' 'posted discount rates' higher.....instead of 5.15-5.29 you would likely get 5.39-5.49% - oh the games they play to try and take advantage of the consumer....