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To: robert b furman who wrote (47859)	5/3/2012 12:32:42 AM
From: Johnny Canuck	Read Replies (2) \| Respond to of 69808

I think it is a illusion. that Canada is better off in all sectors then the USA. There is an article that suggested that the Bank of Canada lent 100 billions dollars to the Canadian banks during the crisis in 2008. The article suggest it would have been cheaper to buy the bank's stock on the open market and take them private instead of lending them the money. The banks are not as liquid and secure as the government and the banks would have you believe according to the article. Keep in mind the centre for policy alternative is either a left leaning or right leaning think tank. I can't remember which way their research is biased. policyalternatives.ca montrealgazette.com The reality is that the banking system is still broken. None of the loop holes that created the problems have been fixed and new loop wholes are being exploited. The profits are some of the banks are an illusion also as they can borrow at new 0% and easily make 3 to 4 % be leaning it to other organization at low risk. What happens when interest rates rise and the loan portfolio is locked in at lower rates?

To: robert b furman who wrote (47859)	5/3/2012 8:12:06 AM
From: Cogito Ergo Sum	Read Replies (2) \| Respond to of 69808

I bought my first house in Toronto for 97K.. (1986-87.. cannot remember exactly :o) (Town home self managed condo).. at one point it was appraised at 250K about three years later, the first bubble I was in. I sold @ 169k, still a nice profit and bought a single family home, nice neighbourhood, large lot for Toronto.. I paid 199K.. The folks I bought it from had paid 319K...We don't need subprime for bubbles LOL BTW Our CMHC (Fannie approximation) was pretty solid back then.. My first home was purchased with 10K down and CHMC backed.. so I paid a mortgage insurance premium.. As soon as I had enough equity paid down relative to mortgage value I lost the need for the CMHC on the townhome.. (2 years).. We are bubbly again but it has been less speculative.. When I bought my first home there was constant press and almost hourly updates on the housing market on radio... Every corner had assorted real estate mags.. folks were buying two or three homes to flip within months. or weeks even.. speculation was rampant.. it was like tech in the late nineties.. Demographics have changed the picture this go.. lots more condo apartments.. That is where the speculation is.. from flippers, baby boomers downsizing and foreign money.. I was prepared to buy a condo for my daughter as a financial planning vehicle to rent but I am waiting for a rollover :O) Hope I am right.. :O) Oh BTW my current home, modest for my neighbourhood is appraised at about 500K.. but that could be 300K in a few months LOL