Scotiabank lowers fixed 5-year rate to 2.97%???
You know I’m hoping I’m wrong on this… I really hope that I’m wrong but the language coming out from Schedule one Canadian banks is becoming more and more plain. Just like the oil sector the banking sector in Canada is pushing around the Canadian government and it appears that nobody seems to see the repercussions of this. Let me say this as plain as I can
Interest rates are the lowest in history
Because interest rates are so low housing prices are increasing
Because housing prices are increasing more and more Canadians aren’t qualifying for homeownership
CMHC was created so more Canadians could become homeowners right???
What am I missing here? Oh yea! Jobs are leaving Canada, inflation is a reality in Canada. Even though Canada has dirty oil sands its citizens pay ridiculously high energy prices. Outsourcing is happening because Canadian business owners pay a high minimum wage so they’re outsourcing. MCDONALDS! is outsourcing claiming it can’t find any qualified person to fulfill positions and other restaurants are doing the same because hey if Mickey Deez is doing it why can’t we??? Construction jobs are being outsourced “in Canada” meaning high paying jobs in Canada aren’t being given to Canadians? However in most instances they’re being sold to Canadians.
I’m not sure what to say all I’m saying to anyone reading this is try to stay out of debt because clearly the schedule one banks want to keep Canadians in debt. If America ever decides to raise interest rates again which they can do because Americans aren’t spending as much as they used too the Canadian dollar could drop to Brian Mulroney levels which would lead to inflation, possible hyperinflation and a very weird looking housing market which could instigate some kind of awkward slow moving collapse or stagnation depending on the government that inherits that mess.
The Canadian economy is unique because they’re lucky enough to have America as their neighbours however collapses have happened in Canada before so don’t think they can’t or won’t happen again and unlike the United States there is no one to save the Canadian economy. If the Canadian dollar loses too much of it’s value the price for EVERYTHING will go up and if you ask me I think the banks and homeowners will be bailed out which means the price of everything will rise.
Canadians are being screwed in three ways, energy prices, the banks and the Canadian government who put Canadian taxpayers on the hook for all those bills. Personally I think CMHC was a disastrous idea and now that it’s developed a taste for money and people got a taste for homeownership both will fight like h*ll to keep this debt dream afloat even if everyone pays for it which is how I see this thing playing itself out. I don’t think it will be a big bang; it will be one of those things where Canadians start to lose their wealth and they don’t understand why or how it’s happening.
Again interest rates are at RECORD LOW levels and banks are still having a hard time qualifying people for mortgages. Nobody’s talking about energy prices which affects the price of EVERYTHING! and nobody is talking about the mere chance that interest rates might one day rise? What do people think getting 0% – 3% on the money they have in their savings accounts is somehow normal? smh!
If you get the chance read this MSN article Scotiabank lowers fixed 5-year rate to 2.97% and then tell me with a straight face that the Canadian housing market isn’t in trouble?