It's better to be a dog in a peaceful time than be a man in a chaotic period.
These are interesting times to be sure. Everyone breathe. I feel that morbid fascination that one feels as they pass a funeral procession, or approach a train wreck. You know something is up when you see flashing lights ahead. The lights have been flashing for quite a while now, and the visceral thrill of regarding the carnage is building.
The markets are still crashing - despite the massive cash infusions of the central banks. Markets post big losses as credit concerns persist.
Bad paper is knee deep, and investors are sitting things out (aside from cashing out).
Shares of Toronto-based finance company Coventree Inc. plunged 72 per cent Tuesday as it warned it may face lawsuits — one day after the Canadian financial company said it couldn't find buyers for $250 million of its asset-backed commercial paper.That's asset backed paper, and nobody is biting.
Financial market turmoil could lead to lower interest rates, economists say.
I think this mess is going to be with us for a while, and I think that RE prices will become less dependent on interest rates, but will subside due to fatigue and uncertainty. Unemployment is low in the west (Alberta 3.3%, BC 4.1%) and gets higher as you head east. Ontario is at 6.5%, and by the time you hit NFLD, it's 13.6%. The east could use lower rates. We don't want them here. And, someday they will return to historic norms (7-8%). Maybe they haven't sucked everyone in yet.
Chaotic times indeed.
The lights are still flashing.
Update - Thursday, August 16
TSX wipes out 2007 gains
Globe and Mail Update
August 16, 2007 at 1:25 PM EDT
Canada's benchmark stock market
plunged more than 575 points Thursday, as the mounting uncertainty in credit
markets knocked it further into official correction territory.
The fat lady has not begun singing yet...