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I think your right...a burst housing bubble will put a lot of people out on the streets. The US was worse off due to a higher prevalence of sub-prime mortgage lenders. However, the idiots who allowed their mortgage payment to exceed 50% of the family income and used sub-prime lenders to facilitate that, have no one to blame but themselves.Quote:
Originally Posted by rick_iles
Living beyond your means is harder when the chickens come home to roost. :)
Sub prime/mortgage brokers. Fanny Mae and Mac.
A lot of truth to that, however the bigger issue ( right term?)? Was the way the world really works
Lenders took the “mortgages” and farmed out their risk. In a variety of ways. One way, was to pool the money/ payments and sell it as Asset ( houses/RE) Backed Commercial Paper. ABCP.
The swap book I ran at the time was worth about 10 billion. And for context, we were tiny players,,minuscule. Most of the swaps I had on the books, we had exposure with interest rates. CDOR.
To hedge that risk, I would buy ABCP which paid 35 basis points above CDOR. So it didn’t matter what the rate was. I owed X, was getting paid X plus 35bp.
Hundreds of millions of dollars worth. Hardly a day went by when I wasn’t rolling 30, 50, 200 million dollars worth ABCP.
I also bought BAs and BDNs. Bank issued debt, they used to borrow money. That paid a spread to CDOR. X plus 5BP.
that ALL then was used as collateral elsewhere…to secure our loans..what we borrowed..
When things started to go South in 2007, early 2008. The real trouble began with Lehman Brothers and Solomon.
It was called the “financial crises”…..
In our world. A credit crunch.
Everyone reacted, tightened credit. To everyone…everywhere…
Choked off the worlds lifeblood.
could that be the catalyst ?
yep…
In reality, Canadians in general are much too much passive, awe the it'll work itself out attitude, or it'll get better attitude. We just keep paying and paying through the nose for everything. Wood for example, food, gas, insurance, cell phone charges. The list goes on and on. What's it going to take for everybody to pull as one and do something...
with alot of unemployment mixed inQuote:
Originally Posted by rick_iles
3030.
I don’t know what to make of unemployment just yet. In large part, because economist seem to be all over the map. No general consensus as yet.
This is unlike any other time. There are those that think, the economy will roar back. In part, because this is/has been intentionally inflicted. In part, because the haves have been watching their savings grow, hoarding cash. In part because while we don’t have the means thanks to stupid spending by JT, and previously McWynne. But Bernie does, and he’s planning to throw trillions at stimulus spending.
But with jobs and spending will come more inflationary pressure. Then there are those who think…maybe not…
And don’t forget, consumers borrow to spend, governments borrow, companies borrow for this and that.
Who remembers the G20.
What was that about?
From what I've noticed in the last 5-10 years in my circle at least, is not many people followed politics. I have friends and and family who didn't know the difference between conservatives, Libs, NDP etc.....but...the ones who were public service, always voted lib as they soaked up whatever they're unions were preaching right before elections. (Lay offs if you vote Con.....etc)....I started reading the paper when I was around 12ish, as that was my dad's thing. I remember asking why he read the sun mon to fri, and the Star on the weekends. He told me it was so he could see the lying from both sides....lol....Ive done the same for 30 odd years now. What I'm seeing now is....people who never really followed politics, are now forced to see it with covid, the States, the protests.....etc.....and the ones who had no knowledge....are soaking in what they're told from the TV.....social media...which unfortunately is the mainstream.....its as though the last few years....the loudest of the parties get heard the most....with adults who have a fresh slate to pick sides.....I've got to the point that I don't even waste my time when someone brings up things I know are lies, or control tactics....as I'm getting tired of trying to convince brainwashed minds......I usually nod, say cool opinion.....I'm going fishing........
Your Dad was a smart man. My Dad did the same thing as do I. I,too,have stopped trying to convince the brain dead..............sorry,I meant washed. There are none so blind as those who won't see.Quote:
Originally Posted by LiveBates
Well said! And pathetically so true!Quote:
Originally Posted by LiveBates
Personally consider the Star and Sun trash. The worst of the worst, though once in a blue moon they can both get something right.
I read different sources. Take it all with salt. The last 5-10 years more stuff from outside Ontario/Canada. Get the outsider looking in perspective.
Go back just a few years ago. The Left and left side of the electorate howled, just howled about Harpers secrecy (ummmm) , muzzling of scientist ( ummmmm) use of omnibus bills (ummm). The left has a serious distrust of the institution too. And we have worsening polarization.
G20
Was it it about Wall Street and abuses. Evil capitalist on the right? Or, about youth and discontent with the system.
Stuff like this, no sitting house through most of Covid, a handful of other things that could be mentioned.
JT and his merry band make Harper look like a Saint.
Or back bacon, beer ... those two things are completely untouchable.Quote:
Originally Posted by trimmer21