WHY CANADA DIDN'T CRASH

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“What we need is the a return to the rule of law, a culture of fairness and justice and a politics of the country rather than pure personal aggrandizement. We are only going to get there if we stop lying to each other and stop public officials from lying to us about the cause of this catastrophe in which 6 million homes were essentially destroyed, with at least another 6 million on the way. We need referees back on the playing field, and if they should err, then it should be in favor of protecting our financial system rather than the profits of those who exploit it.” Neil Garfield, Livinglies.me

SEE WATCH MY PENNY, WATCH YOUR WALLET: [youtube=http://www.youtube.com/watch?v=3dl1y-zBAFg&feature=player_embedded#]

Banks Defrauded Investors and Homeowners, not Government

EDITOR’S NOTE: In the article below from ctvNEWS you can see that the narrative in Canada is about normal things like the world-wide recession, people taking on more debt than they should, and the drag on the economy. No talk about a death spiral, or about criminal prosecutions, or even a 5 year sinking housing market. Why not?

Canada’s financial system is essentially run by about a dozen banks of which 5 are the 800 pound gorillas. One might expect then with so few banks and so little competition that the Banks would have gone on a binge of power and money, playing the securitization roulette game to the ultimate. But they didn’t. In fact, Canadian banks and regulators agreed that securitization of mortgage loans etc. was a bad idea and could only lead to massive losses and destabilizing the economy and the currency of the country. The only winning move was not to play.

Sometimes “boring” is a lot smarter than exciting. There is always the risk, as the article points out, that a herd mentality will take over and that housing prices might get bloated. But the Canadian culture is more reserved than the U.S. culture and it seems unlikely that they could ever get in nearly as trouble as we do.

The moral of this story, I think, is that we should strive to bring back the regulations that were thrown out in the 1990’s, despite the obvious lessons of the 1980’s savings and loan crisis, and to impose the restrictions that were denuded in large part by Fannie and Freddie lobbying efforts in 1991-1992.

THE BIG LIE is that government did it. The BIG TRUTH is that the Banks did it and they will do it again. We know that because after the S&L crisis, they did it again. And the S&L crisis was after the 1927-1929 crisis, most of which was caused by the Banks.

Government doesn’t go out and defraud people to put money in its pocket by selling bogus securities and loan products. Banks do that. If anyone wants to go back to boring banking where you can actually predict and project outcomes down the road, then you must impose controls on the Banks. The Wall Street spin is that less regulation will clear up our mess. What they are suggesting is that a basketball game would go far more smoothly if the referees were taken off the court and sent to other jobs — permanently. Players would work things out amongst themselves and would abide by the rules they created and bullying and power-brokering would have nothing to do with it, or if it did, then that would be a good thing.

Anyone with a brain in their heads capable of remembering back 5 years ago knows full well that the Banks trashed our country, took control of government, made what was illegal perfectly proper and denuded the regulatory agencies and their personnel with graft, promises of jobs and out right intimidation. We know it even if the the government puppets of Wall Street tell other stories.

What we need is the a return to the rule of law, a culture of fairness and justice and a politics of the country rather than pure personal aggrandizement. We are only going to get there if we stop lying to each other and stop public officials from lying to us about the cause of this catastrophe in which 6 million homes were essentially destroyed, with at least another 6 million on the way. We need referees back on the playing field, and if they should err, then it should be in favor of protecting our financial system rather than the profits of those who exploit it.

If we need better ideas we should go out and find places that are working right in the areas of commerce where we are weak. Canadian Banks elected to steer clear of the entire securitization scam because they considered it wild and dangerous with no controls or ways to limit risk. They were teased and at times humiliated by other exuberant financiers and pundits around the world who said Canada was being left in the dust. They saw the securitization of mortgage loans as an exciting innovation that would produce trillions in profits, which it did — for a few people, while the rest crashed and burned. We can learn from Canada in this way — that if you put the Country first, the rest of the scenario falls right into place.

Finance and governing is not supposed to be sexy and exciting. It is expected to be effective and pragmatic in making sure the Country is on the right path. Let’s get boring. Leave sexy and exciting to the movies.

REAL ESTATE SLOWDOWN IN CANADA EXPECTED IN 2012

BY SUNNY FREEMAN, THE CANADIAN PRESS

SEE FULL ARTICLE ON CTV.CA

TORONTO — Francesca Asante-Frempong, a self-described “late bloomer,” believes buying her first home at age 35 will have been worth the wait if economists are right about dwindling competition and ultra-low mortgage rates persisting into 2012.

“It’s encouraging to know that, as far as being able to afford something, any time from now would be a good chance to do that,” the newlywed said in an interview from England, where her husband is living until they find a home.

Asante-Frempong, a registered nurse in Toronto, says she’s optimistic she can take her time searching for an affordable starter home in the city, one of Canada’s hottest and most expensive real estate centres.

And the likelihood that mortgage rates will remain low well into next year means she doesn’t have to rush out of her parents home and into a bidding war, she added.

“I think that at least, although I didn’t invest in a condominium say four years ago, I’m ready to go right into a house where my friends (who did) may not be able to at this point.”

First-time homebuyers like Asante-Frempong are poised to comprise an even bigger proportion of real estate activity next year. Sales and prices are expected to stabilize as demand from owners intent on upgrading while mortgages are cheap dries up after more than two years of stimulative interest rates.

Low overnight lending rates at the Bank of Canada — which have been at one per cent since September 2010 — affect variable mortgage rates and other loans tied to banks’ prime rates. Meanwhile, government debt crises in Europe and the U.S. are keeping fixed rate mortgages at ultra low levels by depressing the bonds that back them.

Mortgage rates had been expected to rise in 2011, increasing the cost of home ownership and keeping house prices in check. That was supposed to lead to a slowdown in the housing market, according to the predictions of several top economists at the end of 2010.

They were wrong. Now they believe that easing is coming in 2012.

A looming economic slowdown, tepid wage growth, unaffordable home prices and record consumer debt levels could put downward pressure on the market next year.

But those troubling signs, as well concerns about the domestic impact of turmoil outside Canada’s borders should also push the Bank of Canada to leave interest rates on hold, fostering a friendly environment for home buyers.

Tags: bankruptcy, borrower, Canada, countrywide, disclosure, foreclosure, foreclosure defense, foreclosure offense, foreclosures, fraud, LOAN MODIFICATION, modification, quiet title, rescission, RESPA, securitization, TILA audit, trustee, WEISBAND
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