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Correct. I live just outside of Toronto (GTA). Housing prices have doubled every 10 years for the last 50 years. I keep hearing about this bubble blah blah blah.Originally Posted by Bozzie
Bought my place for 235 in 2003. House next door sold for $1,035,000. And it needs work lol.
There hasn't been a bubble in Toronto....ever. Small 10-15% corrections at most.
I couldn't afford to live here if I bought now.
I often tell my wife, "How do people do it?!?" I don't get it. Not everyone makes big money - or is a high income earner. Not every house is a doctor, lawyer, big money sales rep, business owner, etc. Not everyone gets family money. I know a lot of people live over their means. But it's ridiculous!
I make over $200K (I'll top $250K in 2021...hopefully) and have made over $120K since at least 2007. I have no debt other than my mortgage and whatever I spend on my credit card each month (I pay it off every month). I can't afford a million $$ home. No way. Especially the costs of maintaining a million $$ home - property taxes, insurance, usually larger utility bills, etc.
Where the F&CK are people getting the money??
Coach, ----debt. Mountains and mountains of debt. And if shit hits the fan and a major lender wont lend? go to a lower tier lender.
Boz, Vcr and Toronto?
outlier territory and basically.........one word for ya bro..................KAPUT. Citizens in Hong Kong r bailing (cause of china control), so maybe even more housing price pressure? who knows. Basically if you bought 25 yrs ago its kinda like winning the lottery , tax free too. Can sell in TO and buy on the east coast and pocket a $1,000,000 , ..true story
Vancouver and Toronto in top 5 most unaffordable for homes globally
https://ca.finance.yahoo.com/news/va...203525296.html
Wow, great timing
I agree with Coach , current mortgage rates r largely to blame and irresponsible.
I see this shit as sad , not a chance the younger generation has it easier .
I say the same thing, I just don't see how people do it who've got kids... imagine sending multiple kids to college these days.
I agree I just happen to fall up in this case ..I'd be priced outa this house had I not bought it when I did...it's bad for the next generation.
After I bought my house in 2008 I kept getting crushed took 13 years to win big on the sale.
Global Market Comments
February 26, 2021
Fiat Lux
Featured Trade:
(REVISITING THE GREAT DEPRESSION)
(EXPLORING MY NEW YORK ROOTS)
Revisiting the Great DepressionWhen I first arrived on Wall Street during the early 1980s, some of the old veterans who worked through the 1929 stock market crash were just retiring and passed their stories on to me before they left.
One was my old friend, Sir John Templeton, founder of the Templeton funds, who often hosted me for dinner at his antebellum-style mansion in the Bahamas. John told me he was really excited when hired in ‘29 to handle the surge of brokerage business. After that, things got really boring for a decade.
The downturn we are experiencing now has many similarities to that epic event. In some ways, it's far worse. The 1929 downturn was spread over 34 months. Ours happened almost instantly, in a mere four weeks.
We all know about the Roaring Twenties, with flappers, bathtub gin, and a soaring stock market. Then, individuals could buy on ten to one margin. The high-flying tech stocks of the day, like RCA Radio and General Motors (GM), and Ford (F) soared. From 1921 to 1929, the Dow Average rocketed six-fold. The working class was sucked in.
Industry followed suit, taking the sign of rising stocks as proof of an economic boom. They massively boosted production in all sectors. That meant they went into the Great Depression loaded to the gills with inventory.
The Dow peaked on September 3, 1929 at 381. A slow burn of profit-taking ensued. Suddenly, a cascading waterfall of SELL orders hugely accelerated on “Black Monday” when the Dow plunged by 13%. It was followed by “Black Tuesday” when stocks lost another 13%.
Margin calls triggered a run on the banks as investors tried to withdraw cash to cover margin calls. This spawned a financial crisis where eventually 4,000 banks went under.
By November, the Dow had fallen by 48% to 198. JP Morgan stepped in to stabilize the market, prompting a short-term rally. It was to no avail. The market continued its slide, eventually hitting bottom at 41, or down an astonishing 89% from the top by July 8, 1932. The market then moved sideways in a wide 150-point range until the outbreak of WWII. It didn’t recover its 1929 peak until 1959.
A few years ago, I had lunch with the former governor of the Federal Reserve (click here), who did his PhD dissertation on the causes of the Great Depression. The big mistake the Fed made then was to raise interest rates to damp down stock speculation. They ended up destroying the economy, inadvertently making the depression deeper and longer.
The world has learned a lot about central banking since those dark days. For a start, the theory of Keynesianism has been adopted whereby governments borrow and spend during economic downturns and run balanced budgets or surpluses during good times.
With QE Infinity in progress, the modern Fed won’t be making the same mistake twice. The Fed almost immediately took interest rates down to zero. Our central bank has also responded with monetary stimulus that is a large multiple of what we saw in 2008-09, essentially buying everything that is out there in fixed income land, some $120 billion a month. The money supply, M2, is growing at an unprecedented 26% a year.
The Senate is about to pass a $1.9 trillion bailout bill. Add it all up and the amount of QE outstanding everywhere in the world over the last decade is about to rise by double in the coming months.
It’s important that you don’t use selloffs to resort back to last year’s playbook. Cyclical recovery stocks are the play here, the sectors no one owns that haven’t moved in a decade. Save a return to tech for the future.
My grandfather never participated in the stock boom of the 1920s. When the market crashed, he had to finish his basement in Brooklyn, New York so that several relatives who had lost homes could move in. We lost many equity investors for good in the 2018-09 crash. No doubt we will lose many more in this cycle.
What did grandpa do with his money? He poured it all into real estate, including the land on which the Bellagio Hotel was eventually built, which he picked up in 1945 for $500 an acre. His estate sold it in 1978 for $10 million creating one heck of a family ruckus.
He never bought a stock during his entire life.
Grandpa on Right
Exploring my New York RootsWhile in New York waiting to board Cunard’s Queen Mary II to sail for Southampton, England, I decided to check out the Bay Ridge address near the Verrazano Bridge where my father grew up. I took a limo over to Brooklyn and knocked on the front door.
I told the owner about my family history with the property, but I could see from the expression on his face that he didn’t believe a single word. Then I told him about the relatives moving into the basement during the Great Depression.
He immediately let me in and gave me a tour of the house. He told me that he had just purchased the home and had extensively refurbished it. When they tore out the walls in the basement, he discovered that the insulation was composed of crumpled up newspapers from the 1930s, so he knew I was telling the truth.
I told him that grandpa would be glad that the house was still in Italian hands. Could I enquire what he had paid for the house that sold in 1923 for $3,000? He said he bought it as a broken-down fixer-upper for a mere $775,000.
As I passed under the Verrazano Bridge on the Queen Mary II later that day, I contemplated how much smarter grandpa became the older I got.
I hope the same is true with my kids.
Queen Mary II Passing Under the Verrazano Bridge
Quote of the Day“Lower yields, for longer, and lingering. I don’t think we’re going to get to an end for some period of time. The money that has been pumped into the system is going to keep equities high,” said Mark Grant, managing director of Hilltop Securities.
Someone should write a story proactively with a few SPAC disaster stories.. conversely the ballooning blank check wild card in the world of M&A...I like that part and it's the attraction for many.
Pretty interesting the players across politics and media...Worth the read...SPACs scare the shit outa me...Zero transparency with most.
https://www.nytimes.com/2021/02/27/style/SPACS-celebrity-craze.html?action=click&module=Features&pgtype=Homepage
I'm not into social media but....This will be massive.
Dispo, Possible series A upcoming. Worth keeping an eye on.
https://www.tubefilter.com/2021/02/2...ion-valuation/
Last week, The Information reported rumblings the Series A, noting that Dispo was in talks with Sequoia Capital, Andreessen Horowitz, Benchmark, and others in a round that could value the startup at $100 million or more. (It remains to be seen who else participated in the reported Series A beyond Spark Capital). Dispo already raised $4 million in a seed round in October that was led by Reddit co-founder Alexis Ohanian through his nascent Seven Seven Six venture capital firm.
https://www.nytimes.com/2021/02/25/s...amera-app.html
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