Again you are talking nonsense. It has taken place before in Ireland and other countries. What do you think the seventies and eighties here were? Their was inflation everywhere. I know you are old enough to remember that!
What people say time and again that unless France and in particular Germany need inflation to reduce debt, it will not happen in the euro. There is no evidence so far that they do. Nobody is saying it could never happen in Ireland; what people are saying is that it is unlikely to happen in the euro and while we are in the euro it is therefore unlikely to happen here.
Other countries vary. Britain has already embarked on exchange rate mechanisms to increase competitiveness as has the US. In the US they are actively trying to foster inflation and failing. Interest rates know bounds… deficit spending and finally monetization are their remaining tools. But they are hitting a political wall as the solvent refuse to bail out the insolvent.
Besides all that, we’ve already had our great inflation. The last ten years…
Getting a little nervous for some, though as we are at the start of any bubble in my neighborhood not too worried. I put 25% down back in 2006 after selling my 1st home from 2001. The market will need to drop 50% for me to be in negative equity, but unlikely as the bubble has just started.
Mine was 20 year, with accelerated bi-weekly payments, making something like 17yrs. with 25% down payment, which I carried over to my new house and took a 2nd one for the increase in price of the new home.
This would be a fairly typical mortgage, and considered long-term. A lot of friends take 15 year mortgages, 10 or 15 years would be shorter. 15 - 25 longer, and 25+ extended.
The typical long term you usually find is 25 yrs, though they did introduce the 35year one recently, but there is a lot of unease about this in the press & public, and even the banks don’t encourage it. The government banned <5% down mortgages after a short trial a few years ago.
If you put less than 20% down and you have to get the mortgage insured through the CMHC.
Most try to pay off their mortgage in under 20 years to be sure.
Hopefully Canadian banks will maintain their conservative approach. Canadians pride themselves on the fact they did not make the same mistakes as the USA.
I suppose there isn’t a chance in hell that Lenny or Clowen, or even Col. Mustard* are reading this, it’s a nice summary of their actions and results to date.
With most of the debt securitised, you could short whoever is holding the unguaranteed stuff (I’m presuming it is only new issuance that has been guaranteed). But the unguaranteed stuff is probably better quality than the recent issuance. Probably shorting canadian government bonds would be more effective since they’d have to make up the difference? Still, so far, anyone who’s tried to short a big government issuer has been handed their ass in a sling as far as I can see. So far that is!
edit: thinking about it, the usual suspects apply - commercial and C&D. They’ll probably go last and first…
NO! Read Peter Mathews on the reason for the downfall of the Irish banks. It was the “fractional reserving” policy that did it. Canadian banks only lend approximately 85% of customer deposits - well under the 150% plus that the Irish banks lent.
