Recession Talk

[diva]

We can even call it an "Economic Downturn" if you like.

Are you worried about your job? Is it secure?

Discuss.

[Alex]

no. I work on 100% commission. Economic 'down turns' are historically better for sales. It's when the economy turns back up and people have more money, that they cling to it and stop buying(saving for the next 'down turn' or large purchases)

[b0ld]

Not so worried about the job... More worried about the money in the bank... will the banks flip flop? who knows..

[Alex]

Sales- smaller purchases. Not so much for larger purchases(i.e houses, high end cars etc)

[ebbomega]

Originally Posted by Alex

no. I work on 100% commission. Economic 'down turns' are historically better for sales. It's when the economy turns back up and people have more money, that they cling to it and stop buying(saving for the next 'down turn' or large purchases)

Yeah, that sure worked for the states.

[Alex]

Doesn't the Gov't supply insurance of up to 100k for bank accounts in canada?

Also our bank's arne't doing too badly I do believe(in comparison)... Unlike the States even though our bank's offered the idiotic 40 year mortgages, down payments were still required.

[hardstylin]

im not worried about anything.

[diva]

Originally Posted by Alex

Doesn't the Gov't supply insurance of up to 100k for bank accounts in canada?

Also our bank's arne't doing too badly I do believe(in comparison)... Unlike the States even though our bank's offered the idiotic 40 year mortgages, down payments were still required.

Yes, our deposits (up to 100k) are insured.


Our banks were offering 40 year, no money down mortgages until this month--basically the Canadian version of subprime mortgages. The Canadian government passed legislation (this summer) to ban them. You now need a minimum 35 year with 5% down.

[Alex]

ummmm, 'down turns' as in the great depression. ATM we're at the very start of a serious down turn. Sales thrived during the depression. The best Sales men learned the trade during the depression, wrote books about it. When people don't have very much money, they tend to spend what little they have(thinking saving is futile). They make more small purchases, and eventually the economy improves, people start earning more, their lives become better, but they still remember. They remember the hard times, and they're optimistic of the future. They cling to their money, budget themselves, and save save save.

[Alex]

I thought most of our main banks didn't offer the no down option? I did some banking changes a while ago opened some new accounts and was beaking about the 40 year mortgage, and the lady who was helping me set my stuff up told me that most banks in Canada didn't offer the 40 year no dp option, and that my bank(RBC) were hesitant to even give 40 year mortgages in general because they were too risky, and were overhauling to offer only a 25 year mortgage as the longest.

[ebbomega]

Then why is it that major retailers are bottoming out right now down south?

[rawb]

the tech sector is less effected by this economic downturn since we already had a bubble burst about 8 years ago. now that the internet is usually an essential part of a lot of business' sales, infrastructure and marketing divisions, its seen more like a utility than a shiny needless feature. though i have noticed that vs a year ago, people are starting to buy more for value rather than paying a markup to be bleeding edge.

[diva]

Originally Posted by Alex

I thought most of our main banks didn't offer the no down option? I did some banking changes a while ago opened some new accounts and was beaking about the 40 year mortgage, and the lady who was helping me set my stuff up told me that most banks in Canada didn't offer the 40 year no dp option, and that my bank(RBC) were hesitant to even give 40 year mortgages in general because they were too risky, and were overhauling to offer only a 25 year mortgage as the longest.

Most banks offered the zero down, 40 year mortgages. Over the last couple of years, most new home buyers choose this mortgage option. Especially in Vancouver because they were basically the only way most ppl could get into the market. The government made them illegal as of Oct 2008 because they were afraid of a housing meltdown similar to the one the US is going through.

Credit squeeze hits 40-year mortgages

http://www.greaterfool.ca/2008/07/12...wn-zero-house/

[Courtney]

if you have nothing, there's nothing to worry about!

[SEAN!]

even bankrupt mufuckahs need accountants

[Courtney]

thats what piggy banks are for!

[Alex]

Are you slow? Do I have to state again we are at the very beginning of this down turn? I used the Great depression as an example, a down turn that lasted ~10 years. The market is crashing and people are panicking. Trading is being done on emotion, not logic. People aren't spending because they're fearing their jobs. Panic. Emotion. Most people in North America realistically still have the same budget/spending power as they did a couple of years ago, the crisis hasn't really touched the average household(except the idiots who bought homes they couldn't afford, at high interest rates over ridiculous amortization periods. They deserve to be bankrupt) Give it time for the ripples to reach coast to coast, for everyone to have less money. Panicking will stop, people will adjust. Most will stop saving for that large purchase(i.e. new home, nicer car...) because it will seem out of reach. This will actually mean the average person will have more disposable income, because they're saving less for bigger purchases, spending less on large payments, etc... They'll start buying buying buying(small things) wasting more money eating out, buying clothes etc. The economy will recover, and people will pinch their penny's harder than ever.

[Courtney]

what would karl marx say about all this?
he knew it would happen eventually- he called it
take that you capitalists (myself included)

[SEAN!]

Originally Posted by diva

Most banks offered the zero down, 40 year mortgages. Over the last couple of years, most new home buyers choose this mortgage option. Especially in Vancouver because they were basically the only way most ppl could get into the market. The government made them illegal as of Oct 2008 because they were afraid of a housing meltdown similar to the one the US is going through.

Credit squeeze hits 40-year mortgages

http://www.greaterfool.ca/2008/07/12...wn-zero-house/

the 40 year no dp thing dosn't even really qualify as subprime when you look at the abusive practices that were going on in the states. mortgage originators there didn't even give a fuck about who they were lending too because they made a fee on the transaction and didn't have to carry the risk on their balance sheet.

they had a special name for some of the loans they were giving, they called them ninja loans. no income no job no assets.

[Alex]

40 year mortgages are so stupid it's unbelievable. You end up paying for your home 3x. If you had found a place for decent rent, and *saved* the difference for the 40 years(or simply kept saving for a larger DP and shorter amortization period), you'd be significantly farther ahead. People want what they want, and they want it now. Greed on all fronts.

[Ragga_Wh0re]

the flucuating markets especially for 2 commodities that profoundly effect our company (lead and plastic) have made us increase our prices a few times over the past year and a half. thankfully though for the past 3 months the price of lead has been going down, unfortunately we stocked up when lead was at a higher price. As a result we've lost big accounts, as a result have more inventory vs sales and the bank isnt too stoked on that.

For plastic, Ive been passed countless price increases from my suppliers totally more then 20% in a 3 month period. Thats HUGE. the failing economy has also effected sales negatively, not our branch inparticular but those in the east more so. There have been people laid off in QC as well as one person here, I have nothing to worry about. But, I beleive in being proactive and have been actively searching for the past 2 months.

Its shitty, I generally like my coworkers. O wells, onto greener pastures.

[SEAN!]

Originally Posted by Courtney

what would karl marx say about all this?
he knew it would happen eventually- he called it
take that you capitalists (myself included)

karl marx probably said i told you so during the panic of 1873 and he was still wrong.

we'll get through this. stock market crashes don't cause recessions, the trouble in the financial sector can but thats an entirely different story.

[Courtney]

sean...your intelligence is sexy
keep it up

[diva]

Originally Posted by SEAN!

the 40 year no dp thing dosn't even really qualify as subprime when you look at the abusive practices that were going on in the states. mortgage originators there didn't even give a fuck about who they were lending too because they made a fee on the transaction and didn't have to carry the risk on their balance sheet.

they had a special name for some of the loans they were giving, they called them ninja loans. no income no job no assets.

I called it the Canadian version of subprime because the 40 year zero down allowed the same kind of people to get into the market. People who basically had no business buying houses.

"Subprimes, like 40-year amortizations here, dropped the bar for home ownership and let people buy, who otherwise would not have been able. Because every real estate boom needs new suckers willing to swill debt for the privilege of being last in, the system allowed it. Hell, even blessed it."

The Turner Report Canadian subprime

"NINJA loans" were also called "liar loans"
Stated income loan - Wikipedia, the free encyclopedia

you're right, it's very hard to get those kind of loans in canada.

[ppcock]

Can I pick up that TV tonight?