Sunday, October 24, 2010

Noted solely for the convenience of pointing and laughing at later

Five Reasons Home Equity Growth is more likely than not local

Okay, leaving aside the awkward title . . . Come on, Buffalo? You're picking out Buffalo as some kind of bellwether of the current downturn? Strike one against demonstrating you have clue about your topic. Buffalo has been in rapid population decline since the 50s. Of course it has empty houses. That's what happens when 5,000 people a year move elsewhere, for 60 straight years.

But moving on.

1) Land Constraints. Sure, you have those, and that puts you in exactly the position of San Fran as long as the living remains desirable, as in: the earthquakes fail to materialize. But how many investment units are currently sitting empty? What's the overhang? Land constraints don't matter if you're already overbuilt and everyone tries to sell en masse to book their profit.

2) Large Infrastructure Projects. This one is on the money. But again, the construction cranes in the U.S. have moved onto massive federal spending projects on, guess what? . . . infrastructure. Clue in, please.

3) Job Growth. This can turn around in an instant. As soon as the bubble bursts. And again, nice un-cited dig at the U.S. for what reason, exactly?

4) Low Interest Rates "Mortgage rates are a bargain, period." Mortgage rates are ADJUSTABLE, period. "Some readers might remember when rates were 21 per cent." Yeah, and they can't go there again, why? Mortgage rates are the PROBLEM, period. 

5) Vancouver Canucks. Um WHAT?

Peter Simpson, The Minister for Property Propaganda President and CEO of the Greater Vancouver Home Builders' Association Goes on:
And while you are in smooch mode, plant a great big juicy one on our sound banking system -- including lenders, mortgage professionals and federal financial watchdogs -- whose responsible actions and reliable processes ensured that a U.S.-style mortgage and equity meltdown would not occur here.
So, explain why the Canadian banks have started commoditizing mortgages if they are so responsible? Why were they offering, however briefly, 100% financing?
 this region is still one of the best places on the planet. Americans must look northward with envy.
Ha ha ha. Yeah. With your obnoxious attitude, it's not envy you smell, that's the popcorn heating up so we can enjoy the show from down here.

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