05-21-2024, 09:39 AM
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#2141
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First Line Centre
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We will probably get a recession anyways. BoC will do 0.25% in June, a small cut like that will not change course.
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06-05-2024, 07:59 AM
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#2142
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Franchise Player
Join Date: Mar 2005
Location: Van City - Main St.
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25 basis point cut confirmed in today's announcement
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06-05-2024, 08:02 AM
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#2143
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#1 Goaltender
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Wow...save $100 per month on a typical variable rate mortgage. After a $1,900 increase. So much savings.
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06-05-2024, 08:05 AM
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#2144
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Franchise Player
Join Date: Mar 2015
Location: Pickle Jar Lake
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Quote:
Originally Posted by GullFoss
Wow...save $100 per month on a typical variable rate mortgage. After a $1,900 increase. So much savings.
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What would you prefer? Interests rates of 2% and more inflation?
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06-05-2024, 08:06 AM
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#2145
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#1 Goaltender
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I'd prefer they leave rates unchanged until inflation is at or below target.
Tiff "inflation is transitory" Macklem inspires zero confidence with this move, like many of his moves. While the media plebs and politicians will applaud it, if inflation ticks up, the BoC will lose even more credibility
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06-05-2024, 08:06 AM
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#2146
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Franchise Player
Join Date: Mar 2015
Location: Pickle Jar Lake
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Me too! I've been enjoying reasonable interest rates lately.
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06-05-2024, 08:16 AM
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#2147
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Franchise Player
Join Date: Sep 2008
Location: Calgary
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Semi-related: I got a letter from my bank telling me that my home equity line of credit interest rate would be increasing to Prime + 1.75% from Prime + 0.5%. "A recent review..." My HELOC is almost at zero anyway, but I wanted to nip this in the bud before it took effect.
So I called them, politely said that was nonsense as my debt is very low (and lower than it has ever been in my adult life), credit is spotless, etc. She put me on hold, talked to a supervisor, and they agreed to maintain the current rate if Prime + 0.5%.
So just a heads up that, as rates start coming down a bit, the banks might be trying to cover that by casually increasing your rates on borrowing products like HELOCs, etc. and hoping that you just accept it, or don't notice.
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06-05-2024, 08:16 AM
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#2148
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First Line Centre
Join Date: Feb 2010
Location: Mckenzie Towne
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Quote:
Originally Posted by GullFoss
I'd prefer they leave rates unchanged until inflation is at or below target.
Tiff "inflation is transitory" Macklem inspires zero confidence with this move, like many of his moves. While the media plebs and politicians will applaud it, if inflation ticks up, the BoC will lose even more credibility
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Well you take away mortgage interest and rent, and inflation is below target. What the BoC will monitor closely is what this decrease will do to real estate prices, as there are A LOT of buyers sitting on the sidelines waiting for rates to fall.
Curious to see what the Fed does on the 12th. Much more resilient south of the border, but there are some signs of a weakening economy.
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06-05-2024, 08:27 AM
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#2149
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#1 Goaltender
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If you cut out all goods and services, inflation is 0%
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06-05-2024, 08:31 AM
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#2150
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First Line Centre
Join Date: Feb 2010
Location: Mckenzie Towne
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Yea those aren't the same...
Monetary policy via rate hikes are the only thing keeping inflation above target. Bank of Canada can't cut rates to other goods and services.
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06-05-2024, 09:12 AM
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#2151
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Franchise Player
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The other thing is they do have inflation under control, you can't keep the rates this high for much longer.
Just because inflation is under control does not mean the goods and services are going down in price, it just means they are not going up. Things are still expensive and you tack on interest rates high as they are that a lot of people have not gone through life is difficult.
The poor banks had to put away some extra money for loan defaults, so that should tell you enough of what is going on. The poor CEO's of the big 5 will likely have to skip a few meals now.
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06-05-2024, 09:26 AM
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#2152
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Franchise Player
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Quote:
Originally Posted by Jimmy Stang
Semi-related: I got a letter from my bank telling me that my home equity line of credit interest rate would be increasing to Prime + 1.75% from Prime + 0.5%. "A recent review..." My HELOC is almost at zero anyway, but I wanted to nip this in the bud before it took effect.
So I called them, politely said that was nonsense as my debt is very low (and lower than it has ever been in my adult life), credit is spotless, etc. She put me on hold, talked to a supervisor, and they agreed to maintain the current rate if Prime + 0.5%.
So just a heads up that, as rates start coming down a bit, the banks might be trying to cover that by casually increasing your rates on borrowing products like HELOCs, etc. and hoping that you just accept it, or don't notice.
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Just wait for the banks to adjust prime on lending by .15% but start chopping GIC and Savings account rates by .50%
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06-05-2024, 09:31 AM
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#2153
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Franchise Player
Join Date: Mar 2015
Location: Pickle Jar Lake
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Quote:
Originally Posted by Paulie Walnuts
Just wait for the banks to adjust prime on lending by .15% but start chopping GIC and Savings account rates by .50%
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You aren't going to beat them, so might as well join them. Buy bank stocks.
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06-05-2024, 11:52 AM
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#2154
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#1 Goaltender
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Quote:
Originally Posted by MillerTime GFG
Yea those aren't the same...
Monetary policy via rate hikes are the only thing keeping inflation above target. Bank of Canada can't cut rates to other goods and services.
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So when rates are going down and it results in lower mortgage costs, we should count that in the data. But when rates are going up and it results in higher mortgage costs, we shouldn't count it.
Gotcha!
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06-05-2024, 12:00 PM
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#2155
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Powerplay Quarterback
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I don’t get why we don’t just tax the rich people more. Simple, easy and deserved.
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06-05-2024, 12:02 PM
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#2156
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First Line Centre
Join Date: Apr 2006
Location: Calgary
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Quote:
Originally Posted by Fuzz
You aren't going to beat them, so might as well join them. Buy bank stocks.
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Bank stocks have been garbage. You're better off in cash.
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06-05-2024, 12:04 PM
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#2157
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Powerplay Quarterback
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Quote:
Originally Posted by Regorium
Bank stocks have been garbage. You're better off in cash.
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Just don’t buy through computershare
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06-05-2024, 12:21 PM
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#2158
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Franchise Player
Join Date: Mar 2005
Location: Van City - Main St.
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Quote:
Originally Posted by fotze2
I don’t get why we don’t just tax the rich people more. Simple, easy and deserved.
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What's the magic number that makes someone rich and what's the magic tax rate that's simple and easily solves everything?
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06-05-2024, 12:23 PM
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#2159
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Franchise Player
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Quote:
Originally Posted by Winsor_Pilates
What's the magic number that makes someone rich and what's the magic tax rate that's simple and easily solves everything?
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Easy, anyone who has more money than me.
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06-05-2024, 12:25 PM
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#2160
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Franchise Player
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Quote:
Originally Posted by GullFoss
So when rates are going down and it results in lower mortgage costs, we should count that in the data. But when rates are going up and it results in higher mortgage costs, we shouldn't count it.
Gotcha!
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If mortgage interest inflation was -30% and was the only thing dragging the headline number into the target range, they absolutely would consider that in their rate decisions. Why wouldn't they?
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