Canadian Banks warned to stress test for housing market downturn

[Ernie Nemeth]

http://www.cbc.ca/news/business/osfi-stress-test-1.3695691

Some of Canada's banks must stress test their ability to withstand a 50 per cent drop in housing prices in Metro Vancouver area and a 40 per cent drop in the Greater Toronto Area, the country's banking regulator says.


The Office of the Superintendent of Financial Institutions also said Tuesday that the banks must all test for a 30 per cent downturn in valuations for all other areas of the country.


Wonder what they know that they're not telling?

[Carmody]

collapse of the Chinese buy market, perhaps.

For those not aware, Vancouver is being bought up by the Chinese rich, who are trying, as hard as they can, to bring any part of their capital gains outside of China.

Like Frightened birds in flight, looking for a place to live, looking for a place to land, looking for a place to raise children and have a life in a world that is familiar (The Chinese are taking over Vancouver areas, they are comfortable there --so far....), they are bringing everything they can carry to this particular area. Paying twice as much as they should for a given property is not an issue in the face of all that they are dealing with.

If there is anything that affects the Chinese capital flight situation, be it Western actions or Chinese government actions, or economic actions/change...whatever the situation may be...anything that strangles the Chinese capital flight situation --- will collapse the Vancouver real-estate market.

And that market is highly over inflated, due to the one single mentioned thing. Which is obvious when you look at the extant scenario.

When their forced march/flight and 'buy at any cost' world shifts or ends -- so does the west coast prime real estate pricing bubble.

There is also the probability that trump may win the election. How he survives after that with a Pence globalist/militant for VP ... that can jump into the oval office at any time, well, that remains to be seen.

As trump nears the presidential offices, the flights and motions will change with the seeming coming tides and changes. Who and what is running the show now, will begin gaming the scenario that Trump may be presented with. They will piss in the baby's milk, which will be the least of the given globalists offenses.

After all no group of sociopath globalists goes down or allows change of their position in life without a fully blown totally off the rials sociopath rant. No matter which group of sociopaths may be in which given position.

The current run of globalists in charge, have enough control and wealth that they have no real issue with running the world down. Even if their properties and controls drop in value by lets say 75%, all that is meaningless to them, if they've positioned themselves to remain on top in any uptick or downturn. It's just a number to them, but a real life scenario to everyone else.

What this means is that it is no skin of any kind off their back, if they have to starve the world as a form of a lesson to the world for 'disobeying' their controls and commandments.

Parasites will harm the host in order to maintain control. That is the history of parasites, their way of being. As being a host for a parasite... is the definition of harm itself.

After all is said and done, it will still probably be a case of 'meet the new boss, same as the old boss'.

It may end up feeling new and open, for a few minutes/months/year... as the torture porn of global economy manipulation may cease (and shift directions) for a seeming few years.... as flow is reestablished.

But it will be a simple case of new directions in parasitism... moving over/toward some sort of eventual human cliff. Like it always is. Desire and fear, the cornerstones (carrot and stick) of human manipulation.

The trick is to face the fear of the globalists and their control matrix systems (which are designed to act on fundamental fears) and tear them down wholesale. To remain in vigilance forever, in every breath.... against a parasite that will always be in emergence.

[Flash]

I agree Carmody with pretty much eveything you write in this post, it is a shame that only Canadians may read it (because of the thread title and Amrerican propensity to read mostly Trump and Clinton stuff - kidding here).

I know that the housing markets are inflated by Chinese here in some Canadian cities. For example, a new neighbourhood was built near mine, and it is entirely filled with Chinese (like 400 homes). Brossard, a Montreal suburb, is pretty much all Chinese as well. They are not bad neighbours, but they keep to themselves pretty much, we do not hear them.

I also know that we have to relinquish any kind of fear in order to deal with the actual "boss" and make sure it is not replaced by the same.

However, I see a few problems:

1. The population submit to fear in general, how should we help stopping this?
2. Once the old boss are gone, the window to block access to similar bosses is tiny. What should be done and how to implement it fast to ascertain no sociopath never has power again.
3. We are not organised at all, and cannot be without being infiltrated of plainly stopped if not dealt with in a much harsher way. Therefore, we will never be ready. How do we do it, I wonder.
4. On avalon, the average age is quite high - an old bunch of arthritic beings talking of slamming the power that are. lolllllllllllll (olh, except for Thunder whose thanks are below your post). No wonder we are not taken seriously. What is happening with the younger crowd. Up to now, I do not see much readiness nor consciousness for what is going on.




collapse of the Chinese buy market, perhaps.

For those not aware, Vancouver is being bought up by the Chinese rich, who are trying, as hard as they can, to bring any part of their capital gains outside of China.

Like Frightened birds in flight, looking for a place to live, looking for a place to land, looking for a place to raise children and have a life in a world that is familiar (The Chinese are taking over Vancouver areas, they are comfortable there --so far....), they are bringing everything they can carry to this particular area. Paying twice as much as they should for a given property is not an issue in the face of all that they are dealing with.

If there is anything that affects the Chinese capital flight situation, be it Western actions or Chinese government actions, or economic actions/change...whatever the situation may be...anything that strangles the Chinese capital flight situation --- will collapse the Vancouver real-estate market.

And that market is highly over inflated, due to the one single mentioned thing. Which is obvious when you look at the extant scenario.

When their forced march/flight and 'buy at any cost' world shifts or ends -- so does the west coast prime real estate pricing bubble.

There is also the probability that trump may win the election. How he survives after that with a Pence globalist/militant for VP ... that can jump into the oval office at any time, well, that remains to be seen.

As trump nears the presidential offices, the flights and motions will change with the seeming coming tides and changes. Who and what is running the show now, will begin gaming the scenario that Trump may be presented with. They will piss in the baby's milk, which will be the least of the given globalists offenses.

After all no group of sociopath globalists goes down or allows change of their position in life without a fully blown totally off the rials sociopath rant. No matter which group of sociopaths may be in which given position.

The current run of globalists in charge, have enough control and wealth that they have no real issue with running the world down. Even if their properties and controls drop in value by lets say 75%, all that is meaningless to them, if they've positioned themselves to remain on top in any uptick or downturn. It's just a number to them, but a real life scenario to everyone else.

What this means is that it is no skin of any kind off their back, if they have to starve the world as a form of a lesson to the world for 'disobeying' their controls and commandments.

Parasites will harm the host in order to maintain control. That is the history of parasites, their way of being. As being a host for a parasite... is the definition of harm itself.

After all is said and done, it will still probably be a case of 'meet the new boss, same as the old boss'.

It may end up feeling new and open, for a few minutes/months/year... as the torture porn of global economy manipulation may cease (and shift directions) for a seeming few years.... as flow is reestablished.

But it will be a simple case of new directions in parasitism... moving over/toward some sort of eventual human cliff. Like it always is. Desire and fear, the cornerstones (carrot and stick) of human manipulation.

The trick is to face the fear of the globalists and their control matrix systems (which are designed to act on fundamental fears) and tear them down wholesale. To remain in vigilance forever, in every breath.... against a parasite that will always be in emergence.

[WhiteLove]

Great sharing Ernie, thanks!

[Ines]

As David Icke has always said: "Their actions are so predictable." Yes, they use their old tricks, over and over through out century to century... and people never learns. PROBLEM-REACTION-SOLUTION.

Some time, old generations try warning, but younger generations "know better" how to handle things. We are slaves of our own paradigms, created by us, or imposed on us. Really sad human story.

[Clarity]

Vancouver is being bought up by the Chinese rich, who are trying, as hard as they can, to bring any part of their capital gains outside of China.


I know that the housing markets are inflated by Chinese here in some Canadian cities. For example, a new neighbourhood was built near mine, and it is entirely filled with Chinese (like 400 homes). Brossard, a Montreal suburb, is pretty much all Chinese as well. They are not bad neighbours, but they keep to themselves pretty much, we do not hear them.


It's not just Canada, this is happening in New Zealand too.

[DeDukshyn]

 
Hopefully this housing bubble will burst. I cannot believe how long it has held on in Canada ...

The problem in Vancouver is that everyone believe the house prices will continue to skyrocket forever ... this has resulted in thousands and thousands of empty homes either being held onto, or being offered at insane prices on the market - while there is a housing crisis in Vancouver - these rich wealthy people don't care - they want to make millions just like Shkreli - same attitude.

Vancouver is trying to pass legislature that will see huge taxes imposed on people with uninhabited houses. The hope is that these taxes will be strong enough to thwart these evil dicks that are keeping the market inflated artificially and pop the bubble. hope it works.

It's easy to blame the Chinese but its not just them, its everyone and their dog (including real estate companies) who have enough money to make these purchases on the hopes of selling in ten years and retiring rich.

[Ernie Nemeth]

I don't pretend to understand the situation in any depth, but it seems there are colluding entities involved. The CHMC, the Canadian housing and mortgage corporation, is the largest part of the problem, it seems to me. They make sure not enough housing starts are initiated in order to inflate the price of the inadequate number of existing homes. The free trade agreement with USA and Mexico is another player, allowing foreign investment in domestic markets without public disclosure, ensuring that our politicians have the old "plausible deniability" gambit to foist on the unaware public. The other big player, or force, in the upward spiralling house price fiasco is the real estate companies themselves, that imbue fear into the buyer and confidence into the seller, further inflating the average price of a home. There are other forces involved, like developers, manufacturing, forestry, and many others. But those mostly follow the trends of the big players.

I like to point out to others, that each time a house is sold, the bank profits ten-fold on the money lent, immediately! If you read between the lines in the article you might see that they almost let the cat out of the bag when they mention perhaps reducing the leverage of the major banks. The leverage is the scam. The leverage is the unfair advantage of the banks. Leverage is not interest but the ability to basically split a currency not in half but in tenths - much like a stock split but far more lucrative. Right now the commercial banks have a 10:1 ratio, the amount of money that they may lend out as opposed to how much they must keep in their vaults. So every $1 borrowed allows the bank to lend out a further $10! I am making it as simple as I can, there are of course more subtlety to the system than as I describe. And I am far from the resident expert.

I think it is fairly obvious that the banks and government love the high cost of homes because they directly profit from it. And through them the central bank and the central bank of the central banks.

One World Government , anyone?

[KiwiElf]

The "average" price for an "average" house in Auckland NZ is now teetering on $1 million - totally unaffordable for first home buyers who have to cough up a 20% deposit. The govt & banks here have raised the criteria for investment properties to 30% but they don't get it: the majority of the foreign buyers, (mostly Chinese), don't need a loan from the local banks - they pay cash! Furthermore, they don't even need to occupy the property (yet). Very easy profit for those who can afford it.

https://nz.news.yahoo.com/a/32174922/you-suck-ray-white-kiwis-threaten-boycott-after-agency-signs-deal-with-chinese-company/#page1

[CurEus]

Under the Harper regime Canada instituted bank " Bail ins" for the Tier 1 national banks. Their "stress testing" is not made public. This specific action in the article is for smaller regional banks, credit unions and "Caisse populair" etc.

Although it was suggested that depositor monies are "safe" which is an outright LIE. Failing banks can now use "select liabilities" (read deposits) to recapitalize themselves if the need arises. This mechanism is VERY similar the Greek "haircut" where depositors lost 30-70% of their savings.

What remains unclear to me is

1. Are Federal or Provincial Savings Bonds immune to this action?
2. Are precious metals, stocks/bonds/GIC's etc immune to this action?

Why hasn;t everyone pulled their money out like..YESTERDAY!