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Mortgage Broker News | 23 Dec 2010, 12:00 AM Agree 0
While he still hasn’t ruled out tightening mortgage rules next year, Canadian Finance Minister Jim Flaherty thinks it is up to banks and not government to slow lending as household debt continues to rise, aided by low interest rates.
  • Trish Hart, AMP Invis | 24 Dec 2010, 04:27 AM Agree 0
    It is not the mortgage payment that will sink the consumer in the cycle of increasing rates. The misc payments (i.e. vehicles, finance companies, lines of credit) that consumers have taken on is what I see on a daily basis creating financial stress.
  • mortgage needs | 24 Dec 2010, 11:37 AM Agree 0
    Hi Trish, you make a good point there. Consumer credit cards, auto leases and such are generally at higher rates and/or worse terms than a mortgage. However, those are also much smaller ticket items, but I guess they do add up.
  • mortgage needs | 24 Dec 2010, 11:48 AM Agree 0
    (1) Government cannot always be expected to step in, or government may get the blame for messing with the "natural" cycle of things - no one knows for sure where the peaks and the bottoms are;
    (2) Government cannot interfere too much in the lending process or it may be blamed if bail-outs become necessary;
    (3) As well, lenders will be expecting bail-outs if they act on frequent directions from the government;
    (4) Lenders, and those managing lending corporations, being accountable to their shareholders, have to be responsible for sound lending practices;
    (5) Question: Are taxpayers being asked to bail out both sides of banks' Balance Sheets ? That is, are we seeing bail-outs of both Bank Liabilities [ i.e. the Deposits (Savings) placed with them by their banking customers ], as well as Bank Assets ? We may have a better system if Government only bail out Average Joe's Deposits at 100%, and not be there to bail out Bank Assets or other liabilites. What do you guys think ?
  • EM | 26 Dec 2010, 04:35 AM Agree 0
    The finance minister's name is Jim Flaherty, not Flahery - who's writing this stuff??
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