Billy Speary, Pugilist
I heard the news today, oh boy, RBC has raised it's rates, and the other big boys are gonna raise their's too.
Yawn. A fifth of a point. They didn't raise them enough, and the variables didn't change at all. BOC is sitting on it's hands too. A commentator on CBC today likened it to Goldilocks. Everything is just right - except the dollar is falling. Is that an issue? I would think it would be good for Central Canadian manufacturers - who are hurting a bit.
Low interest rates and marketing are what drove this insanity. When I step back and look at the big picture, I wonder who really benefits. Hmm. Banks have increasingly record profits - obscene ones. Oil companies are making like profits. Bub Rainbladder is doing well. The developers are getting obese. There is a lot of money floating around, but it's not homeowners that have it. It's an enormous Ponzi scheme. When they do hike rates meaningfully, it will crush many.
I wonder why they did not hike variables. Is it another manipulation to catch those last dregs of those "afraid of being priced out forever"? (I do understand that variable mortgages are linked to Prime BTW)
I say bring on 6%, 7%, 8% discounted rates. Let's get this over with fer crassness sake.
I'll take it on.