Calgarypuck Forums - The Unofficial Calgary Flames Fan Community - View Single Post - The ongoing financial turmoil and financial discussion thread

Nancy · 11-29-2008, 08:59 AM

A couple more "depressing" things I heard this week.

One was a spot on the news hilighting a collapse in international shipping. The amount of goods being shipped from Asia has dropped off significantly. It's so bad that charter rates have fallen from $200,000 a day to $2,800, or so claimed the other. Translation: Chinese exporters must be hurting like heck.

Another was from the web site that I found the above video on. On that site, they have guys tracking and forecasting Vancouver RE prices for the month, and they are predicting that the average single family home price in Vancouver will decline by 8% to 10% this month alone, and the median could decline by 5% or more. Months of inventory is now 21. (Calgary, by comparison, has 8 months of inventory.)

The thing about Vancouver that has me wondering: how can Vancouver prices be so high relative to personal incomes (which are much lower than Calgary) and there NOT be subprime lending going on there? If Vancouver real estate follows the same collapse as San Diego's, how can this NOT take down at least one Canadian mortgage lending institution? In other words, which Canadian financial stocks should I be shorting right now?

11-29-2008, 08:59 AM	#660
Nancy Powerplay Quarterback Join Date: Feb 2006 Location: Sunnyvale nursing home Exp:	A couple more "depressing" things I heard this week. One was a spot on the news hilighting a collapse in international shipping. The amount of goods being shipped from Asia has dropped off significantly. It's so bad that charter rates have fallen from $200,000 a day to $2,800, or so claimed the other. Translation: Chinese exporters must be hurting like heck. Another was from the web site that I found the above video on. On that site, they have guys tracking and forecasting Vancouver RE prices for the month, and they are predicting that the average single family home price in Vancouver will decline by 8% to 10% this month alone, and the median could decline by 5% or more. Months of inventory is now 21. (Calgary, by comparison, has 8 months of inventory.) The thing about Vancouver that has me wondering: how can Vancouver prices be so high relative to personal incomes (which are much lower than Calgary) and there NOT be subprime lending going on there? If Vancouver real estate follows the same collapse as San Diego's, how can this NOT take down at least one Canadian mortgage lending institution? In other words, which Canadian financial stocks should I be shorting right now? Last edited by Nancy; 11-29-2008 at 09:02 AM.