WHY CANADA DIDN’T CRASH

MOST POPULAR ARTICLES

COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary CLICK HERE TO GET COMBO TITLE AND SECURITIZATION REPORT

“What we need is the a return to the rule of law, a culture of fairness and justice and a politics of the country rather than pure personal aggrandizement. We are only going to get there if we stop lying to each other and stop public officials from lying to us about the cause of this catastrophe in which 6 million homes were essentially destroyed, with at least another 6 million on the way. We need referees back on the playing field, and if they should err, then it should be in favor of protecting our financial system rather than the profits of those who exploit it.” Neil Garfield, Livinglies.me

SEE WATCH MY PENNY, WATCH YOUR WALLET:

Banks Defrauded Investors and Homeowners, not Government

EDITOR’S NOTE: In the article below from ctvNEWS you can see that the narrative in Canada is about normal things like the world-wide recession, people taking on more debt than they should, and the drag on the economy. No talk about a death spiral, or about criminal prosecutions, or even a 5 year sinking housing market. Why not?

Canada’s financial system is essentially run by about a dozen banks of which 5 are the 800 pound gorillas. One might expect then with so few banks and so little competition that the Banks would have gone on a binge of power and money, playing the securitization roulette game to the ultimate. But they didn’t. In fact, Canadian banks and regulators agreed that securitization of mortgage loans etc. was a bad idea and could only lead to massive losses and destabilizing the economy and the currency of the country. The only winning move was not to play.

Sometimes “boring” is a lot smarter than exciting. There is always the risk, as the article points out, that a herd mentality will take over and that housing prices might get bloated. But the Canadian culture is more reserved than the U.S. culture and it seems unlikely that they could ever get in nearly as trouble as we do.

The moral of this story, I think, is that we should strive to bring back the regulations that were thrown out in the 1990’s, despite the obvious lessons of the 1980’s savings and loan crisis, and to impose the restrictions that were denuded in large part by Fannie and Freddie lobbying efforts in 1991-1992.

THE BIG LIE is that government did it. The BIG TRUTH is that the Banks did it and they will do it again. We know that because after the S&L crisis, they did it again. And the S&L crisis was after the 1927-1929 crisis, most of which was caused by the Banks.

Government doesn’t go out and defraud people to put money in its pocket by selling bogus securities and loan products. Banks do that. If anyone wants to go back to boring banking where you can actually predict and project outcomes down the road, then you must impose controls on the Banks. The Wall Street spin is that less regulation will clear up our mess. What they are suggesting is that a basketball game would go far more smoothly if the referees were taken off the court and sent to other jobs — permanently. Players would work things out amongst themselves and would abide by the rules they created and bullying and power-brokering would have nothing to do with it, or if it did, then that would be a good thing.

Anyone with a brain in their heads capable of remembering back 5 years ago knows full well that the Banks trashed our country, took control of government, made what was illegal perfectly proper and denuded the regulatory agencies and their personnel with graft, promises of jobs and out right intimidation. We know it even if the the government puppets of Wall Street tell other stories.

What we need is the a return to the rule of law, a culture of fairness and justice and a politics of the country rather than pure personal aggrandizement. We are only going to get there if we stop lying to each other and stop public officials from lying to us about the cause of this catastrophe in which 6 million homes were essentially destroyed, with at least another 6 million on the way. We need referees back on the playing field, and if they should err, then it should be in favor of protecting our financial system rather than the profits of those who exploit it.

If we need better ideas we should go out and find places that are working right in the areas of commerce where we are weak. Canadian Banks elected to steer clear of the entire securitization scam because they considered it wild and dangerous with no controls or ways to limit risk. They were teased and at times humiliated by other exuberant financiers and pundits around the world who said Canada was being left in the dust. They saw the securitization of mortgage loans as an exciting innovation that would produce trillions in profits, which it did — for a few people, while the rest crashed and burned. We can learn from Canada in this way — that if you put the Country first, the rest of the scenario falls right into place.

Finance and governing is not supposed to be sexy and exciting. It is expected to be effective and pragmatic in making sure the Country is on the right path. Let’s get boring. Leave sexy and exciting to the movies.

REAL ESTATE SLOWDOWN IN CANADA EXPECTED IN 2012

BY SUNNY FREEMAN, THE CANADIAN PRESS

SEE FULL ARTICLE ON CTV.CA

TORONTO — Francesca Asante-Frempong, a self-described “late bloomer,” believes buying her first home at age 35 will have been worth the wait if economists are right about dwindling competition and ultra-low mortgage rates persisting into 2012.

“It’s encouraging to know that, as far as being able to afford something, any time from now would be a good chance to do that,” the newlywed said in an interview from England, where her husband is living until they find a home.

Asante-Frempong, a registered nurse in Toronto, says she’s optimistic she can take her time searching for an affordable starter home in the city, one of Canada’s hottest and most expensive real estate centres.

And the likelihood that mortgage rates will remain low well into next year means she doesn’t have to rush out of her parents home and into a bidding war, she added.

“I think that at least, although I didn’t invest in a condominium say four years ago, I’m ready to go right into a house where my friends (who did) may not be able to at this point.”

First-time homebuyers like Asante-Frempong are poised to comprise an even bigger proportion of real estate activity next year. Sales and prices are expected to stabilize as demand from owners intent on upgrading while mortgages are cheap dries up after more than two years of stimulative interest rates.

Low overnight lending rates at the Bank of Canada — which have been at one per cent since September 2010 — affect variable mortgage rates and other loans tied to banks’ prime rates. Meanwhile, government debt crises in Europe and the U.S. are keeping fixed rate mortgages at ultra low levels by depressing the bonds that back them.

Mortgage rates had been expected to rise in 2011, increasing the cost of home ownership and keeping house prices in check. That was supposed to lead to a slowdown in the housing market, according to the predictions of several top economists at the end of 2010.

They were wrong. Now they believe that easing is coming in 2012.

A looming economic slowdown, tepid wage growth, unaffordable home prices and record consumer debt levels could put downward pressure on the market next year.

But those troubling signs, as well concerns about the domestic impact of turmoil outside Canada’s borders should also push the Bank of Canada to leave interest rates on hold, fostering a friendly environment for home buyers.

13 Responses

  1. Candian Banking affairs – this is one royal wasted discussion

  2. i assume that everyone really knows whats going on by….ah…
    propaganda??!! , right about now i think whatever we know it must be both suspect & made for consumption.Think about it,
    and think about everything NOT told as is about the opposite of everything revealed so far by the information whores & banksters.
    stories & lies to rule by

  3. Canadian values are what effectively prevented the North American Union promoters from destroying her sovereignty. Under referendum, Canadians were supposed to vote on whether Quebec was to secede, because the french-speaking province was made to believe the rest of the country hated them, thanks to stage managing and posturing by the political forces in power. A small group of patriots from all over the country traveled to Quebec and spent a week begging them not to secede from the union, and they agreed not to, keeping the country intact. It’s always the “divide and conquer” axiom in play with the oligarchs who orchestrate these terrible events. We have been teetering on the edge, ourselves. It’s time to take our country back and do exactly what Canada did; refuse to get involved in schemes.

  4. OBAMA NEEDS TO BE VOTED OUT OF OFFICE. A VOTE FOR OBAMA IS A VOTE FOR A BANKSTER

  5. Canada is not corrupt like the United States. It has nothing to do with capitalism or socialism It has to do with

    CORRUPTION.

    NEVER AGAIN

  6. “the only winning move was not to play”————

    really????????????

    the state bank called the Bank of North Dakota did the same———–

    I have been only mentioning this here for quite awhile now……….but everybody we vote in office speaks with forked tongue,,,,,,,they are paid liars…………and that includes the local level

  7. “Finance and governing is not supposed to be sexy and exciting. It is expected to be effective and pragmatic in making sure the Country is on the right path. Let’s get boring. Leave sexy and exciting to the movies.”

    “Canada’s financial system is essentially run by about a dozen banks of which 5 are the 800 pound gorillas. One might expect then with so few banks and so little competition that the Banks would have gone on a binge of power and money, playing the securitization roulette game to the ultimate. But they didn’t. In fact, Canadian banks and regulators agreed that securitization of mortgage loans etc. was a bad idea and could only lead to massive losses and destabilizing the economy and the currency of the country. The only winning move was not to play.”
    ——————————

    Lets talk about this statement—-

    “Canada’s financial system is essentially run by about a dozen banks of which 5 are the 800 pound gorillas”

    Now why on Earth or how on Earth is that possible?

    Why can’t Canada be the bank?

    Why do we need PRIVATE banks traded on Wall Street?

  8. I understand that the Canadian banks require 20% down , they have real underwriting and the banks hold the loans they write. I also believe that they have a max of 30 years (20 being the norm) and most loans are fixed rate.

    Canada also has a real economy making real products … oil , lumber and natural resource products .

  9. THE BOTTOM LINE IS CANADA ALWAYS STAYS WITH THE MIDDLE CLASS WORKING PEOPLE IN THE COUNTRY

  10. TD Bank is going to be the new big boy on the block

  11. Canadian firms sold some MBS to the pensions up there as well. Although, reserves are much more healthy in Canadian banks, they have significant exposure due to dollar swaps. That is why Toronto Dominion is gobbling up everything out in NY. They need the real-dollar deposits to leverage back to the FRC, Swapping Canadian dollars simply costs too much.

    You will continue to see a weakening US Dollar vs. CAD as the FRC is forced to pump another 350 billion into the Euro Arena – to further protect US Banks against (my new favorite term used instead of default) “credit events”. The sovereigns are not willing to take the IMF money with the austerity strings that will enslave their people for the next 50 years. The US Fed is propping the market to allow reserve system banks to quietly move out of dollar assets. The targeted investments of the major US Financial institutions are not directed at mature economies – they are population driven. India, Brazil and all of Central America are hot spots for investment.

    Canadians will be buying property here in a couple of years faster than Europeans and Chinese. That is why they are having their banks set up shop in a big way across the states. BAC and Citi are still going to fail without another huge Fed intervention. Jamie Dimon and Blankfien are licking their chops and are already talking to the FDIC for the rip-out number.

    What a wicked web we weave.

  12. We have a culture in the good ole US of A of running wild when it comes to money. Here, they believe that anything that makes you money is a good thing no matter how illegal, immoral or just plain stupid. When securitization was created, it helped the culture of extortion, theft, and lying. If you have no skin in the game anymore, because you sold the liability, now you’re really the proverbial wothless p%^&e of s$%t. MERS and Securitization needs to press the “delete” button.

  13. Canada didn’t crash simply because Canada didn’t have the arrogance of the U.S. with respect to the “old Europe”. Canada looked at what worked (regulations and social programs) while still being a capitalist country. Canada didn’t deregulate, Canada didn’t “reinvent” the old true and tried systems. Canada kept the best of both worlds.

Leave a Reply

%d bloggers like this: