BOC Cuts Rate

[GPIDEAL]

Not sure what precipitated the rate cut. I don't see it doing any stimulation to the economy to be quite honest.

As someone mentioned in another thread, especially if the PoS chartered banks keep half of the decrease like they did the last time.

Banks are making a killing and pay fuck all for any savings. They just want to sell riskier products to finance their loans with bigger spreads.

 

[GPIDEAL]

I think the start of the bust will come when they raise rates again. My guess would be early to mid 2016.

That makes sense because higher rates would increase mtge costs. When there are defaults, prices will come down.

 

[rhuarc29]

As someone mentioned in another thread, especially if the PoS chartered banks keep half of the decrease like they did the last time.

Banks are making a killing and pay fuck all for any savings. They just want to sell riskier products to finance their loans with bigger spreads.

The interesting part of all that is the reason why banks did what they did. It wasn't that their earnings are really hurting, it's because their share price is down. Investors don't want consistent earnings; they want consistently improving earnings. Though the drop in share price of Canada's bank's share prices has less to do with earnings, and more to do with external factors.

 

[FirstCaveman]

So business, and individuals with lines of credit and variable rate mortgages a get further reduction of 15 bps for the moment.
Is this the silver bullet that revives an economy when our political leaders placed all of their eggs in one resource-based basket?
For those saying that we are not in a real estate bubble, the BoC's pin is not very far from bursting it.

 

[fuji]

Not good for the Tories to be headed into an election during a recession they basically created.