Calgarypuck Forums - The Unofficial Calgary Flames Fan Community - View Single Post - Bank of Canada increases Bank Rate to 4.50% and banks follow. Prime now 6.25%

Claeren · 07-10-2007, 01:13 PM

^ Maybe my interests are different than yours??

While core inflation has been relativily under control across Canada there are two things that have not:
1) Inflation in Calgary/Alberta has not been under control
2) Housing prices have inflated at 30%-50%/year

(There is a third - American Governmental Borrowing - but it will drive interest rates up as opposed to being a reason our rates have been low, related but not the same.)

A rise in prime rates would reduce local inflation and housing inflation so that i could buy a house (with my super secure government services job) and would bring all sorts of things back into perspective for the spoiled people of Calgary.

I couldn't care less that thousands of engineers and oil field workers could lose their jobs or a few of their ~3 houses - just like they don't care that i currently cannot afford a home with my job.

It is a dog eat dog world - and i PERSONALLY (and my family as well, none of whom work in cycle-sensitive jobs) can do a whole lot more eating with high interest rates then with low interest rates.

Besides which 7% is not really a high interest rate historially speaking - we have just been 'spoiled' by unreasonably low interest rates lately. 5%-8% would be a normal range... it is a far cry from the 12%+ rates of 25 years ago...

Claeren.

07-10-2007, 01:13 PM	#11
Claeren Franchise Player Join Date: Jul 2003 Location: Section 218 Exp:	^ Maybe my interests are different than yours?? While core inflation has been relativily under control across Canada there are two things that have not: 1) Inflation in Calgary/Alberta has not been under control 2) Housing prices have inflated at 30%-50%/year (There is a third - American Governmental Borrowing - but it will drive interest rates up as opposed to being a reason our rates have been low, related but not the same.) A rise in prime rates would reduce local inflation and housing inflation so that i could buy a house (with my super secure government services job) and would bring all sorts of things back into perspective for the spoiled people of Calgary. I couldn't care less that thousands of engineers and oil field workers could lose their jobs or a few of their ~3 houses - just like they don't care that i currently cannot afford a home with my job. It is a dog eat dog world - and i PERSONALLY (and my family as well, none of whom work in cycle-sensitive jobs) can do a whole lot more eating with high interest rates then with low interest rates. Besides which 7% is not really a high interest rate historially speaking - we have just been 'spoiled' by unreasonably low interest rates lately. 5%-8% would be a normal range... it is a far cry from the 12%+ rates of 25 years ago... Claeren. Last edited by Claeren; 07-10-2007 at 01:18 PM.