Tuesday, August 6, 2013

US to phase out their own catastrophic CMHC...

President Obama, arguably to the left of PM Harper, has decided to phase out Fannie Mae and Freddie Mac, their own two versions of our CMHC which insure mortgages.

Our own dithering fools in Ottawa were anti-CMHC except when it suited them. And it did in 2008/9. Even as they watched the US equivalents pull hundreds of Billions out of tax-payers pockets, they cynically doubled our own CMHC, loaded it up with a weak board (IN MY OPINION) and allowed it to have poor risk management and operate opaquely (in the opinion of Nomura and IMF and other non-Major-bank economists). 

Now hopefully they will do the right thing before this monster endangers our financial future further...and wind it down!

BTW- there was a great BNN interview with Ian Lee, an Academic who has been sounding the alarm on CMHC liability which he calls gargantuan! Says the banks are using CMHC!

Try this link.

Click on the second video 'CMHC to take stream out of housing market'. All bulls and bears should listen to this interview


  1. CMHC had been given the okay by Ottawa to guarantee up to $85 billion of mortgage-backed securities for 2013, but an “unexpected increase in issuance volumes” resulted in those commitments having reached $66 billion by the end of July.


  2. The CMHC is the Big Banks' slave> picks up their risk and gives it to us.

  3. Nice...

    471 new
    237 price change
    207 sold

    7452 detached
    8869 attached

  4. Another good day...

    415 new
    207 price change
    207 sold
    7475 detached
    8888 attached

  5. As we know, no market moves in a straight line, be it up or down. And, it's early, so the next few days could still prove me wrong. But, it seems as though last month's sales strength is quickly losing its momentum?

    1. You may be right. Those who are interest rate/CMHC dependent are pulling back, whereas those who are not..a $7.5 M Mainland buy today, keep buying.

  6. 431 new
    164 price change
    241 sold

    7470 detached
    9816 attached

  7. From What I can deduce half of the WEst Van SFH dales today went to Mainland Chinese buyers. Including one over $4.5 M

  8. hmm...

    362 new
    173 price change
    219 sold

    7460 detached
    8928 attached

  9. Someone sent me an up-date from Alan Skinner, a realtor on the North Shore.

    His tone was more bullish but his numbers are balanced at best.

    Again to our 'Year to Date' figures for 2013. We now have 7
    months figures 2013 vs. 2012. These are helping define our
    current year. North Van detached homes sold are up 6% from
    last year, attached (t/hses) , same as last year (206 vs. 206) and apartments down by 16% from 2012.
    Detached average prices down 2% and inventory up by only 2% from 2012.
    Average prices down 5% (t/hses) and up 3% for (apts).
    Inventory (t/hses) 14% higher than July 31st 2012 and (apt) up from the same date by 3%.

    In West Van, detached number of sales YTD for 2013 has
    dropped by 3% from July 31st 2012. Average price of what has sold is down by 2% and inventory up 13% over July 31st 2012.
    On the condo side - attached (t/hses) sold 2013 are down by only 1% from 2012 at 51 vs. 52 units with no change in average price.
    Active listings are down year over year from July 31st 2012 by 10% (49 vs. 55).
    Apartments reflect 95 sold in 2013 vs. 113 (down 15%) from July 31st 2012; with average price up 12% from July 31st 2012 and active listings up 19% from July 31st 2012.

  10. Hopefully they will do the right thing before this monster endangers our financial future further. It should be resolve soon.

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