How bad is the economy going to hit the fan

Bank of Canada lowers key interest rate this morning

http://www.cbc.ca/news/business/ban...rkets-with-cut-in-key-interest-rate-1.2921370

 

I'm just working on renewing my mortgage right now lol. That being said our dollar is now going to crash and burn. That should help attract more manufacturing and it's good, overall, for agriculture.

 

I doubt the dollar will crash , however this statement by the Bank of Canada is most definitely at odds with the Conservatives' " everything is fine , don't worry " pre-election mantra

 

Yup. Let's be honest though, this is the same move either side of the aisle should make. Usually lower interest rates help encourage manufacturing and it's easier to move the rates now proactively before the world economy likely hits the shitter. Let's protect what we have and try to attract a few more companies right before times get tough. If you move the rate to late you're trying to correct an issue rather than prevent it. From my limited economic knowledge this looks like a good move.

Plus lower mortgage rates help me . Though I think the housing market is in trouble with negative price increases occurring this month is several cities.

 

The Governor of the Bank of Canada makes his own decisions

Lowering the rate by a quarter percent is probably not going to stimulate anything that wasn't going to happen anyway but does signal that the Bank of Canada is concerned about our economy and inflation

 

Interest rate cut doubles effect of falling oil price

http://www.cbc.ca/news/business/int...ect-of-falling-oil-price-don-pittis-1.2919539

 

Followed by "Elect us again in this fragile time because only we can weather us through this storm." Fuckers...

 

Let's not turn this political . Every politician has an answer for every problem, and yet there are still problems in the world....

 

I like the sounds of that from a selffish point of view. The housing market sounds like it will be getting more affordable for those like me trying to buy our first house!

 

It's only more affordable till the interest rates go back up which is inevitable

 

Buy a house at a more reasonable rate, get locked in at a relatively low interest rate and pay it off in 5 years. Fiancee and I both work good jobs (Nurse and Engineer) fulltime and are looking for houses in the price range of one full time working wage. With two incomes paying off a mortgage on a reasonable house rather than an "excessively more than we need house because that's what the bank will allow us to buy" we can easily pay the mortgage off in 5 years before it needs to be renewed with what will likely be higher interest rates. For someone in my situation this economic downturn is a benefit in the immediate future.

 

If you have the ability to pay off a mortgage in 5 years I don't see why you would need to wait for a quarter percentage drop in the key lending rate and fixed mortgages haven't dropped

and how cheap are houses in your area ? Here the average home is $500-600K

 

. I have only had a mortgage for 3 years and my remaining balance is less than $180K. I paid mid $200K on my house with a sizable down payment (equity to work with is always a good idea). The advantage of not living in major cities in Alberta is that the housing costs are still very reasonable.

 

Houses in this area of Ontario will go from $160-$800, so there's lots of selection all over the map. We're looking in the $220-260 range but may be willing to spend closer to 300 to get an ideal place.

It's not the interest rate that I'm interested in, it's that housing value will deflate a little bit back closer to where the house value should be, giving us a little more selection when it comes to finding our first home.

 

The key rate coming down a quarter percent is unlikely to drive housing prices down in a market where more buyers would qualify , not sure how you see that happening

 

Oil sector above all else

http://www.cbc.ca/news/politics/nafta-probe-of-alberta-s-tailings-ponds-blocked-by-canada-1.2935004

 

Looks like TD Bank figure the Bank of Canada will drop rates again in March

 

Canadian Workforce at lowest level in 14 years in 2014

http://www.cbc.ca/news/business/canadian-workforce-at-lowest-level-in-14-years-in-2014-1.2934616

 

Banks lower prime lending rates

http://www.cbc.ca/news/business/banks-lower-prime-lending-rates-1.2933499

 

CBC = Possible agenda in an election year? Sad but true.