tag:blogger.com,1999:blog-5908830827135060852.post224808910152027623..comments2024-03-01T02:40:14.946-05:00Comments on Bond Economics: Canadian Housing And Perpetual MotionBrian Romanchukhttp://www.blogger.com/profile/02699198289421951151noreply@blogger.comBlogger26125tag:blogger.com,1999:blog-5908830827135060852.post-42069687601530025272023-01-04T06:21:37.245-05:002023-01-04T06:21:37.245-05:00This comment has been removed by a blog administrator.online casino Singaporehttps://www.blogger.com/profile/03006358697887202259noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-54561303634299414602022-06-30T16:28:23.181-04:002022-06-30T16:28:23.181-04:00This comment has been removed by a blog administrator.elrayan2050https://www.blogger.com/profile/14109320698568230431noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-77014071460272409262021-12-25T23:50:36.998-05:002021-12-25T23:50:36.998-05:00This comment has been removed by a blog administrator.Levi Brydehttps://www.blogger.com/profile/05065640740736174282noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-19591298075925626092021-12-08T08:24:10.141-05:002021-12-08T08:24:10.141-05:00This comment has been removed by a blog administrator.oliverhttps://www.blogger.com/profile/16286349158090828934noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-57325284997281329542021-11-22T03:38:54.480-05:002021-11-22T03:38:54.480-05:00This comment has been removed by a blog administrator.Levi Brydehttps://www.blogger.com/profile/05065640740736174282noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-62869561935955938212021-10-10T07:43:50.286-04:002021-10-10T07:43:50.286-04:00This comment has been removed by a blog administrator.Coopehttps://www.blogger.com/profile/14627867218258113518noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-49363346692765732292021-08-01T03:54:33.073-04:002021-08-01T03:54:33.073-04:00This comment has been removed by a blog administrator.carrydeolhttps://www.blogger.com/profile/04171976436713460954noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-35782332788218910322021-07-29T04:15:09.898-04:002021-07-29T04:15:09.898-04:00This comment has been removed by a blog administrator.cooking copyhttps://www.blogger.com/profile/10868742553239602805noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-59713638741147552212021-02-15T10:39:29.661-05:002021-02-15T10:39:29.661-05:00This comment has been removed by a blog administrator.Olivia Wilsonhttps://www.blogger.com/profile/16902082951197781166noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-87678186344890764492020-10-21T17:54:31.311-04:002020-10-21T17:54:31.311-04:00This comment has been removed by a blog administrator.rhvhttps://www.blogger.com/profile/15259655519778279970noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-32113837900400276562020-08-22T01:54:07.585-04:002020-08-22T01:54:07.585-04:00This comment has been removed by a blog administrator.Sarah Silvahttps://www.blogger.com/profile/03843935794925176939noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-66283984420604400962020-07-27T10:42:15.139-04:002020-07-27T10:42:15.139-04:00This comment has been removed by a blog administrator.Olivia Wilsonhttps://www.blogger.com/profile/16902082951197781166noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-24310800674685276282020-07-06T02:56:02.230-04:002020-07-06T02:56:02.230-04:00This comment has been removed by a blog administrator.Ellie Saundersnoreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-58228211049199753712020-06-07T07:59:18.695-04:002020-06-07T07:59:18.695-04:00This comment has been removed by a blog administrator.eman gamalhttps://www.blogger.com/profile/01500922885154679124noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-79148331430310976622020-06-05T22:38:18.859-04:002020-06-05T22:38:18.859-04:00This comment has been removed by a blog administrator.Daniel Bryanhttps://www.blogger.com/profile/03273791517955358425noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-62578580440499289022020-03-25T22:24:54.770-04:002020-03-25T22:24:54.770-04:00This comment has been removed by a blog administrator.Annanoreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-35372236403786655952020-01-14T13:04:05.063-05:002020-01-14T13:04:05.063-05:00This comment has been removed by a blog administrator.mariyamkhanhttps://www.blogger.com/profile/02796797004207353013noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-67946686610074085752019-12-10T22:47:21.947-05:002019-12-10T22:47:21.947-05:00This comment has been removed by a blog administrator.Kathyhttps://www.blogger.com/profile/17651113437051600125noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-58434974713771217222018-05-21T07:15:14.669-04:002018-05-21T07:15:14.669-04:00I think it’s similar to FHA insurance (although th...I think it’s similar to FHA insurance (although there are presumably technical differences). I drew the analogy to CDS since the firms writing CDS protection blew up during the Financial Crisis.Brian Romanchukhttps://www.blogger.com/profile/02699198289421951151noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-39472953834968915502018-05-21T02:46:56.857-04:002018-05-21T02:46:56.857-04:00Cool, that clarifies things.
Also, you wrote that...Cool, that clarifies things.<br /><br />Also, you wrote that CMHS insurance is a Canadian analog to CDS insurance in the US. But couldn't we say that FHA insurance is a more direct equivalent? Or is there a difference between CMHS insurance and FHA insurance?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-51127353633194066792018-05-20T08:37:48.741-04:002018-05-20T08:37:48.741-04:00My comment was cryptic, and mainly aimed at non-ba...My comment was cryptic, and mainly aimed at non-banks. Banks need liquidity buffers as well, but that discussion gets more complicated. (I put the comment in as a marker to myself that the point may need to get expanded if it goes into a book.)<br /><br />Take a non-bank mortgage lender. It has to have a small pool of bank money to start off with. Assume is $1 million. The lender then makes $1 million in loans. It then sells the mortgages into securitisations to get its $1 million back. (This “refreshes” the liquidity buffer.)<br /><br />It can then keep repeating the process. The limit is the “velocity” of its transaction: how many times can it turn over its liquidity pool? In practice, the velocity is large, and so we do not really run into this limit; the limit is the capacity to administer the lending process.Brian Romanchukhttps://www.blogger.com/profile/02699198289421951151noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-88076429116461643932018-05-20T02:28:09.866-04:002018-05-20T02:28:09.866-04:00“Admittedly, there would need to be a certain amou...“Admittedly, there would need to be a certain amount of initial liquidity to allow the transaction to proceed, but it is refreshed as the financing flows through the system.” <br /><br />Could you clarify what you mean by "refreshed"? <br /><br />And why does there need to be initial liquidity for the transaction to proceed? Say a homebuyer takes out a mortgage at bank A but the seller has an account at bank B. If bank A has insufficient reserves to the clear the payment to bank B, the payment will just result in an overdraft at bank A’s account at the Bank of Canada, right?<br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-68440806079678846422018-05-18T05:14:25.830-04:002018-05-18T05:14:25.830-04:00This comment has been removed by a blog administrator.Jonnyhttps://www.blogger.com/profile/17358753557575696267noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-50399873056206388882018-05-16T22:58:44.061-04:002018-05-16T22:58:44.061-04:00One big source of long term investment in the USA ...One big source of long term investment in the USA seems to be the result of unbalanced imports. I try to capture the phenomenon in this article https://mechanicalmoney.blogspot.com/2018/05/how-does-exim-money-circulate.html<br /><br />I was never completely satisfied with my presentation but posted anyway.<br /><br />Money based in foreign economies played a big role in past American home finance but I don't know the magnitude today, nor do I know where to find such information. My article focuses on government financing, not home financing. It is much easier to find info on government funding.Roger Sparkshttps://www.blogger.com/profile/01734503500078064208noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-61579496872569103012018-05-16T16:27:29.932-04:002018-05-16T16:27:29.932-04:001) I showed the data vs. GDP, but debt growth is a...1) I showed the data vs. GDP, but debt growth is also outstripping disposable income growth (ratio going to the moon). Probably a better chart.<br /><br />2) As long as CMHC standards are met, lenders are 100% covered. Those standards specify a debt service maximum. (The coverage may be less than 100% for the private sector competitors of CMHC, assuming that they still exist. They had a tiny market share when I last looked at the sector years ago, and I am not exactly current.)<br /><br /> [If the initial downpayment is greater than 20%, there is no need for mortgage insurance, and the lender is fully liable. I’ve seen grumblings to the effect that banks do more do diligence if you have such a large downpayment, although technically they are not supposed to act that way, so the phenomenon will be offically denied by everyone.]<br /><br />3) On the borrower side, everyone with an old school attitude like myself think that Canadians are collectively insane when it comes to borrowing. Canadians used to be far more debt averse than our American cousins; that cultural characteristic disappeared some time in the 1990s. (Although I like to blame everything — including bad winters — on the CMHC, this cultural shift pre-dated their monkeying with mortgage insurance standards.)Brian Romanchukhttps://www.blogger.com/profile/02699198289421951151noreply@blogger.com