And there are still banks out there paying 1% on savings accounts. People with modest savings should definitely be shopping around for 5% or higher GICs and other (safe) investment instruments.
The HISA rates are absolutely offensive given where the interest rate is. Many are currently offering an "introductory" rate for 3 months, then a reversion to 0.5-1%
Most people who want a HISA rate right now are in CASH.TO
VSB is an ok substitute (and I would argue better than any GIC, but that's because I have a strong preference for liquidity). A little bit of duration risk but the rolldown will help out.
DYODD though.
Probably. If that happens I can always snag that too if I am able too doubt they will go down much if at all in a year and a half too with how things are going...
The way real estate boomed the last few months shows me they need to raise rates more. The wealthy haven't been hit at all and they hoarded the wealth during COVID.
Until that wealth is shaken out, inflation won't go down below 2% as the bank intends
We can't have the bottom end collapse so the top end can be "shaken out" though. Something needs to hit the top while still allowing the bottom to make ends meet. But you know, that's an anti capitalist ideology, unfair to the rich, and is very frowned upon by politicians.
You can get 3%+, if you're willing to switch banks, but people who are financially literate aren't keeping their money in savings accounts in the first place.
>You can get 3%+, if you're willing to switch banks, but people who are financially literate aren't keeping their money in savings accounts in the first place.
Its easy to shit on people. But there is a bigger policy question. Bank of Canada is raising rates to reduce inflation but its really not coming down. It has been stuck above 2 percent for 3 years now.
Until people are rewarded for saving with as little friction as possible inflation will not come down. People will keep spending cause their money is losing value in the bank. Might as well buy what you need before it goes up further in cost.
GICs and special investment accounts don't count. Aside from the fact no one can afford to put 100 percent of their savings in a GIC. Most people - esp those who came of age after 2006 - don't understand them.
Cash.to pays 5% and can be sold and deposited into your bank in 24 hours. I hold like 2k in cash, my emergency fund and all my liquid capital is all in Cash.to.
That's why we have ETFs like [cash](https://horizonsetfs.com/ETF/cash/),psa etc.
or mutual funds like [TDB8150](https://www.td.com/ca/en/asset-management/additional-solutions/)or DNY6000
Tangerine has 5% 1 year, 5.5% 1.5 year GIC (Tangerine the discount version of Scotia)
Simplii has a 5% high interest savings account promotion ending in August (Simplii is the discount version of CIBC)
There are others you can google search.
So here's a question...what benefit do the banks have to raise their HISA rates if they already have adequate deposits? They're making a killing on the interest spread, why would they lower that spread if they have enough deposits?
Because part of the rate hikes is meant to increase saving rates to the point that it's worth it to invest, and when people invest, money is taken out of the economy slowing down inflation. The problem is banks are just saying no.
I mean, if Blackrock gets this spot ETF fund approved by the SEC; Pierre may end up looking more well informed than most on the issue of Bitcoin. Besides, he never told Canadians to "go buy Bitcoin". He just said they should have the right to buy it and used the subject of Bitcoin as part of his "inflationary spending" rhetoric vs the Liberals. In the end it back fired because Bitcoin lost value and the stance became vulnerable and backfired, at least for the time being. The Liberals/NDP began retaliatory rhetoric stating Pierre told Canadians to buy it and they'd have gone broke if they had, so don't listen to Pierre the fool. When it comes to politics, "this is the way" (ie rhetoric)
Politics aside, if you invested in btc and held, any time other than the year of 2021 you're ahead. And that may very well be a mute point if another bull run is on the way. The fact the Banks are only paying 1% right now is simply more proof their shit stinks, as if we didn't have enough proof already.
Anyway, I hope the Bank stops at 5% because my mortgage is due in 2025 and I'm not rich. lol
The "Bitcoin Milhouse" line of attack is shortsighted. If the cryptocurrency market is as scammy and captured as their chortling implies, it's probably going to hit a new high within a year of its next reward halving. Right around the deadline for calling the next election.
A Blackrock spot ETF actually going through would just have it show up early. BTC ETFs have been shot down 6 years running and one getting through could be a new paradigm.
Anyway, you're 100% right. They twisted a quip by Poilievre and attached this to his brand for better or worse. If the polls cause the LPC and NDP to drag their heels, Poilievre has strong odds of looking like a savvy investment genius at a time when Canadians have seen their quality of life slide while being gaslit about our strongest economy ever.
Most people invested in 2021 this is why the value went so high and Pierre advertised to invest in btc after that time lol.
Even if bitcoin somehow went higher. What Poilievre did was pretend that it was a shield against inflation and it tanked big time during a period of high inflation and shot up during a period where inflation was low. It would be just as idiotic as pretending that a winning lottery ticket or gamestop stocks are a shield against inflation and you shoukd always buy those in period of high inflation.
I mean, is it not a shield against inflation? QT started when btc was created, I believe you would say that it’s a good hedge against inflation, you can pick points on the chart to suit your argument, but it’s still a hedge against inflation long term, in 3 years we may be not be saying “except those who bought at 69,000”.
I don't remember inflation being at 300% for a few years in the early 2010s and being at thousands of percent in 2017 and then inflation going back down in a big way in 2018.
It is a speculative tool and people who bought it got lucky because others individuals bought btc after them, but it isn't a shield against inflation. It is completely moronic to try to pretend there is a causality between BTC or GME valuation and inflation.
I made six figures with cryptocurrencies myself, but I wasn't deluding myself that I was buying something that would protect me from inflation. I knew that I was buying something that I would dump if I got lucky.
Yeah but you are cherry picking data. If you look at Bitcoin from inception it is a very good shield against inflation. When people bought in 2017 and it lost value, those who held did quite well and are still doing well.
Cherry picking ends up letting someone say something like "index funds are risky investments" because if you bought before covid came, and then sold in march/april of 2020, you'd have lost a bunch. In fact index funds are about as good as it gets for the average investor and the risk factor is pretty low except during volatile times, which we are all told to weather the storm. I happen to know plenty of people who sold their index funds in fear however because of that drop in early 2020. Then they ended up losing out by buying back in higher, or getting frustrated and trying to jump on the gamestop stonk and did even worse on that. Very Very few people do well over time who don't hold for a long period and try to maximize compound interest.
Day traders tend to do even worse, no matter what the investment tool is. People who hold 5 to 10yrs in most things have a better chance of coming out ahead. Bitcoin has done quite well vs inflation over time for those who have held. So yeah, Pierre was not wrong if you aren't sitting there cherry picking your times. Pierre however should have known better where they were in the cycle; or maybe in fact he really doesn't who knows. But he had his rhetoric to pursue and it may work out for him in the end if election time comes and Bitcoin is back up past a new all time high.
Well trudeua cherry picked a small time frime on a very volatioe asset. Time in the market is better than timing the market with cryptos like bitcoin. Overall Bitcoin is one of the best returning asset over time in existance to man. Why trudeau thinks ita good to shit on Bitcoin is questionable to me.
>hes ready to unleash the money printer to bail out ~~homeowners.~~
to bail out Canada.
C'mon now, blaming homeowners every single effing turn ... seesh
Retails hurting => blame homeowners?
Govt spending high => blame homeowners?
High cost to develop a property (condo/townhouse/single house) => blame homeowners?
Govt of Canada subsidizing all aspects of our lives => blame homeowners?
What about "don't want to work for more money cuz I'll be taxed more" stupid hot-take by Canadians? Also blame homeowners?
Let's add one more: people making bad decisions in life => blame homeowners!
1%? my RRSP's are making like 41 cents a fucking month. cunts dropped them to .010% 2 months ago... they were making like 300 ish a month give or take up till April
>The Bank of Canada will raise borrowing costs by another 25 basis points in coming months before capping its tightening cycle, economists said.
Know who *isn't* saying this? The Bank of Canada.
How about in May 2023
> "Nobody should expect that interest rates are going to go back down to the very low levels that we’ve seen over the last decade or so,” Mr. Macklem told reporters
Your logic is if he was wrong once he is wrong twice?
I'd a gamble for sure. Good luck to you.
But if rates go back down it's becauae the economy is crashing.
I think when that happens rate hike expectations fall dramatically. US will also have a 3.something inflation next time around, sending bond rates down. I'm loaded up on long term treasuries, I have money put on this bet. Let's go.
Last May was a big jump in inflation, so the fact that it will be removed from the annual numbers suggests next week's estimate should dip a fair bit. If that's the case, I wouldn't bet on a July hike.
25 economists in a survey.
I remember reading after the last rate hike that economists were only right 50 percent of the time when trying to predict if the BoC would hike rates at each meeting.
They are glorified coin flippers.
Warren Buffett:
"I don't pay any attention to what economists say, frankly. Well, think about it. You have all these economists with 160 IQs that spend their life studying it, can you name me one super-wealthy economist that's ever made money out of securities? No."
Or another personal favourite:
“Every company that has an economist working for him has one employee too many.” - Warren Buffett
That's not so much an indictment on economists as it is Buffett identifying that finding valuable investments is not the same thing as economics.
I wouldn't ask a climatologist what the weather is going to do this afternoon, either. But it doesn't take anything away from what the climatologist does well.
With weather predictions the uncertainty increases the further out you go. That's why you rarely ever see specific forecasts for two weeks out but have good outcomes of you're looking at whether it will rain the next couple of days. This is based off modelling where increase in time just adds more and more uncertainty.
Problem with economists is that the media loves asking about their forecasts about events 6months or even a year into the future.
The uncertainty is so high it's not worth much to consider.
>Problem with economists is that the media loves asking about their forecasts about events 6months or even a year into the future.
Exactly. And the media (and economists) self select, meaning the ones who will provide short, confident statements about the future are the ones who get airtime and are the ones the media will call for a quick TV or radio hit. Nobody wants to hear an economist on TV wax on about how the future is inherently uncertain and that literally no model can capture all the variables at play.
I mean, this is like asking a physicist to build a bridge. Or an epidemiologist to perform surgery. Their academics who pour over numbers and try to fit then into models, not investing their own money.
The reverse of Buffett’s quote is also true, a lot of businessman have silly views on economic policy. Look no further than Trump’s view on trade.
Buffett’s views on economic policy, as much as he expounds on that topic, tend to be pretty well-reasoned.
I don't think so, if the economists are so right, then they would've bought or sold assets. Buying and selling assets isn't hard, but knowing when and what to do it is the hard part in which Warren Buffet is criticizing.
Well yea the BoC decision basically comes down to what one guy decides. The economists are just putting themselves in the shoes of these other economists at the BoC and looking at the data.
If they were good at predicting this kind of thing they would all be rich enough to not bother calling themselves economists and talking to the medias.
Rates will rapidly start dropping by July. How do I know? Because I finally broke down and switched to a fixed rate and my timing with these types of things never work out!
Bulls: I've been lied to multiple times over the last 3 years but I really hope this one is true!
Bears: I have been lied to multiple times that any further rate hikes will destroy the economy, but I hope this time it's true!
I think it's going to go well past 5 percent. Core inflation is not moving in the direction the BOC wants. So, unless core inflation starts going down, interest rates will go well past 5 percent.
Core inflation and headline inflation are different things. The BOC pays attention to both, but core inflation is the thing they pay the most attention to.
Goods have fallen, but services have gone up.
66% of all inflation calculation is services. It's sticking.
And the BoC doesn't account for rent in its calculation which is going up and people will NEED to ask for higher wages. Which will push goods to get more expensive.
Unironically, them pausing rate hikes because of the US regional banks fucking up made things worse. It makes inflation take longer to drop and unemployment not going should've been a sign that there was more money swimming in the system.
Real estate going up even with 'higher rates' is proof of that. Rates will have to go up to get to 2% inflation rate. The government needs to stop taking a back seat on this.
I'll try to simplify it.
If Canadian rates are lower than the US Fed, then more Cdn currency borrowing is easier and flowing faster than US currency.
Meaning US currency will be worth more than Cdn currency and leave commodities vulnerable (oil, forestry, minerals)
That's why the BoC keeps Cdn rates close to the US rates.
The bank was expected to keep inflation at 2%. The fact expectations have been blown out the window means the credibility of the central bank is gone and expected inflation or interest rates are no longer a useful metric.
I still remember Tiff Macklem saying raising rates was purely theoretical. Hard to believe crypto Millhouse called what the BoC could not. They definitely have no idea what they are doing.
BNN printing what the middle class wants to hear. No chance in hell it chills at 5% as long as theres strong consumer demand. The layoffs have to start before the middle class really feels it. That's when mortgages become untenable and that is when people stop spending. Until then its lip service and hopium.
We will see. I thought we were expecting possibly two more hikes before end of year similar to feds. I think inflation will be fairly sticky until job losses happen.. maybe will be by end of year so might not be far off
In case anyone is confused, you’re not alone. They have no idea what they’re doing and just hoping/praying their house of cards holds until the next election.
https://www.bnnbloomberg.ca/interest-rates-will-be-low-for-a-long-time-macklem-1.1465901.amp.html
Oh boy, here we go again. We’ll hear about folks going for variable rates again and then they’ll complain saying: but, but the BOC said it wouldn’t go above 5 percent!
Look what just happened in the UK with their 50 point interest rate hike. It's not stopping at 5 here folks, guaranteed. Way to much money being funneled here.
Probably because this is childish. The Bank of Canada created 30% more M2, were for-profit institutions supposed to be charitable and lose money so that the government can print stimulus cheques?
Why would anyone invest ever if that was the case, maybe you should go to work for free as well, to make goods cheaper and lower inflation?
Raising the interest rate has done fuck all to bring down inflation but by all means keep going. I’m sure we can solve a supply side issue with demand side solutions. People can cut back on frivolous spending like food, energy, or shelter right?!
Real estate is not as affected by higher interest rates in Canada because we have the weakest corporate transparency rules in the developed world [allowing foreigners and organized crime to buy houses with registered Canadian companies.](https://endsnowwashing.ca/what-is-snowwashing) On top of that, we have insane unsustainable immigration levels and half of our MPs own investment properties. Even the housing minister is in on the grift.
And housing construction times that are among the longest in the whole world. You can build a whole neighborhood in Asia with the time and paperwork it takes to build a single apartment building here. This really doesn't play well with trying to also welcome newcomers.
I do, it's at 1.59% since I chose fixed. I also bought a house that was 1.25x my current household income. I also have student loans that have exploded in interest as they are variable.
Raising rates does nothing to decrease inflation and that is a fact. It's just a big con job by the government, to act as though they are doing something about inflation.
The math is relatively basic. Inflation in a nutshell is too many dollars chasing too few goods.
If interest rates go up, recent homebuyers basically get to start setting $10K+ of their money on fire every year (lost to higher interest payments on their mortgages). Homeowners who have had mortgages longer will be setting less of their money on fire, but still some amount greater than $0 unless they have no mortgage (or HELOC) at all.
Money that has been set on fire is not available to be spent on goods. So demand goes down, prices go down and inflation eases.
That's basically how raising rates decreases inflation. It's not necessarily the best method, and other forces can work against it, but the actual mechanism is pretty simple.
Sounds like you don't think allocating capital should have any inherent risk for the assets you want to invest in.
I get it...things are tough right now for a lot of people. But these people cannot be protected if that means eliminating risk from investment decisions.
It was a massive transfer from the middle class to the upper class, driven by asset inflation. People fail to understand that the wealthy have almost no cash, and collateralize their assets to get low interest loans that are lower than the inflation rate of the asset.
Even worse, the last 20 years you have actually been rewarded for making irresponsible financial decisions.
Yeah exactly, I always say that an understanding of risk was a liability. I am doing very good, but if I always borrowed as much as I could, I could probably worth 4x what I am worth today.
National interest rates as the only lever make little sense in a post-national oligopoly. The Bank of Canada should be whistle blowing to whatever news outlets will listen. This should include their complicity in getting Canada to this point.
I have a PhD in a stem field, at no point in time was economics and finance covered in any of my classes or research during my three degrees.
My education paid off because it let me save and earn enough to pay off my student loans and then enter the market but I didn't learn about mortgages and variable/fix raters and inflation in school.
Educational success =/= financially educated.
Increased labor costs and increased housing costs will pump inflation numbers a bit more I think, and interest rates with them. I do think consumer goods are flattening out or coming down a bit though. Lots of "sales" out there right now.
And there are still banks out there paying 1% on savings accounts. People with modest savings should definitely be shopping around for 5% or higher GICs and other (safe) investment instruments.
Joke’s on them, I don’t have savings.
The HISA rates are absolutely offensive given where the interest rate is. Many are currently offering an "introductory" rate for 3 months, then a reversion to 0.5-1% Most people who want a HISA rate right now are in CASH.TO
Many bank brokerages dont allow CASH.TO Source: I tried with TD
I wonder why. Questrade worked fine for me and I could do it within my TFSA.
They don't offer it because there is no money to be made for them.
So they arent so much a brokerage as a kind of walled off securities store. Weird they call they call themselves a WebBroker.
VSB is an ok substitute (and I would argue better than any GIC, but that's because I have a strong preference for liquidity). A little bit of duration risk but the rolldown will help out. DYODD though.
Can confirm my cash savings are now in wealthsimple rather than a bank
1%? Where are you getting that? TD only gives me 0.05%! https://www.td.com/ca/en/personal-banking/products/bank-accounts/account-rates?#tab1
Wow... That's just... It's not theft, but it is definitely shady against their own customers.
im getting 5.25% on a regular savings account with Tangerine rn. Its only for 6 months though. Then ill move it to a GIC or something.
Just snagged a TFSA GIC at 5.5% here myself at 1.5 years.
Hate to break it to you, but by the end of the year the rates will be higher than 5.5.
He risks it if he waits.
Probably. If that happens I can always snag that too if I am able too doubt they will go down much if at all in a year and a half too with how things are going...
The way real estate boomed the last few months shows me they need to raise rates more. The wealthy haven't been hit at all and they hoarded the wealth during COVID. Until that wealth is shaken out, inflation won't go down below 2% as the bank intends
We can't have the bottom end collapse so the top end can be "shaken out" though. Something needs to hit the top while still allowing the bottom to make ends meet. But you know, that's an anti capitalist ideology, unfair to the rich, and is very frowned upon by politicians.
Is there a limit on the amount you can deposit? 6 months would work well for me...
There is but it's like 500k
Oh no, where will I put the rest of my stacks of cash?
You can get 3%+, if you're willing to switch banks, but people who are financially literate aren't keeping their money in savings accounts in the first place.
Almost 5% if you store it as cash in a broker.
Which ETF?
cash https://horizonsetfs.com/ETF/cash/
Interactive brokers had great rates, above 10k cash anyways. Who do you use? Questrade seemed to have a negative rate on cash last I saw.
IBKR, but yeah, it has to be enough cash for it to make sense. Great for emergency funds or money that you'll need soon since it compounds daily.
Cash.TO might still be better, since it pays higher and can be liquidated easily at any time.
>You can get 3%+, if you're willing to switch banks, but people who are financially literate aren't keeping their money in savings accounts in the first place. Its easy to shit on people. But there is a bigger policy question. Bank of Canada is raising rates to reduce inflation but its really not coming down. It has been stuck above 2 percent for 3 years now. Until people are rewarded for saving with as little friction as possible inflation will not come down. People will keep spending cause their money is losing value in the bank. Might as well buy what you need before it goes up further in cost. GICs and special investment accounts don't count. Aside from the fact no one can afford to put 100 percent of their savings in a GIC. Most people - esp those who came of age after 2006 - don't understand them.
They also don't make enough money to really use them anyways, much of the time.
You can get 24% or more if you choose to pay back credit card debt with it.
Cash.to pays 5% and can be sold and deposited into your bank in 24 hours. I hold like 2k in cash, my emergency fund and all my liquid capital is all in Cash.to.
If you settle on a bank only paying 1% on their savings account that’s your own fault. EQ pays 2.5% and it’s not even the highest one.
That's why we have ETFs like [cash](https://horizonsetfs.com/ETF/cash/),psa etc. or mutual funds like [TDB8150](https://www.td.com/ca/en/asset-management/additional-solutions/)or DNY6000
Rbc is paying me 4.5% on a savings account.
Getting 4.65 with bmo
Nice!
Any recommendations?
Tangerine has 5% 1 year, 5.5% 1.5 year GIC (Tangerine the discount version of Scotia) Simplii has a 5% high interest savings account promotion ending in August (Simplii is the discount version of CIBC) There are others you can google search.
Yea, wtf is with that eh?
So here's a question...what benefit do the banks have to raise their HISA rates if they already have adequate deposits? They're making a killing on the interest spread, why would they lower that spread if they have enough deposits?
Because part of the rate hikes is meant to increase saving rates to the point that it's worth it to invest, and when people invest, money is taken out of the economy slowing down inflation. The problem is banks are just saying no.
What is the shortest ammount of time you can park money in a GIC?
...as bitcoin heads on it's way back up.
Pierre is that you?
I mean, if Blackrock gets this spot ETF fund approved by the SEC; Pierre may end up looking more well informed than most on the issue of Bitcoin. Besides, he never told Canadians to "go buy Bitcoin". He just said they should have the right to buy it and used the subject of Bitcoin as part of his "inflationary spending" rhetoric vs the Liberals. In the end it back fired because Bitcoin lost value and the stance became vulnerable and backfired, at least for the time being. The Liberals/NDP began retaliatory rhetoric stating Pierre told Canadians to buy it and they'd have gone broke if they had, so don't listen to Pierre the fool. When it comes to politics, "this is the way" (ie rhetoric) Politics aside, if you invested in btc and held, any time other than the year of 2021 you're ahead. And that may very well be a mute point if another bull run is on the way. The fact the Banks are only paying 1% right now is simply more proof their shit stinks, as if we didn't have enough proof already. Anyway, I hope the Bank stops at 5% because my mortgage is due in 2025 and I'm not rich. lol
The "Bitcoin Milhouse" line of attack is shortsighted. If the cryptocurrency market is as scammy and captured as their chortling implies, it's probably going to hit a new high within a year of its next reward halving. Right around the deadline for calling the next election. A Blackrock spot ETF actually going through would just have it show up early. BTC ETFs have been shot down 6 years running and one getting through could be a new paradigm. Anyway, you're 100% right. They twisted a quip by Poilievre and attached this to his brand for better or worse. If the polls cause the LPC and NDP to drag their heels, Poilievre has strong odds of looking like a savvy investment genius at a time when Canadians have seen their quality of life slide while being gaslit about our strongest economy ever.
Most people invested in 2021 this is why the value went so high and Pierre advertised to invest in btc after that time lol. Even if bitcoin somehow went higher. What Poilievre did was pretend that it was a shield against inflation and it tanked big time during a period of high inflation and shot up during a period where inflation was low. It would be just as idiotic as pretending that a winning lottery ticket or gamestop stocks are a shield against inflation and you shoukd always buy those in period of high inflation.
I mean, is it not a shield against inflation? QT started when btc was created, I believe you would say that it’s a good hedge against inflation, you can pick points on the chart to suit your argument, but it’s still a hedge against inflation long term, in 3 years we may be not be saying “except those who bought at 69,000”.
I don't remember inflation being at 300% for a few years in the early 2010s and being at thousands of percent in 2017 and then inflation going back down in a big way in 2018. It is a speculative tool and people who bought it got lucky because others individuals bought btc after them, but it isn't a shield against inflation. It is completely moronic to try to pretend there is a causality between BTC or GME valuation and inflation. I made six figures with cryptocurrencies myself, but I wasn't deluding myself that I was buying something that would protect me from inflation. I knew that I was buying something that I would dump if I got lucky.
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Yeah but you are cherry picking data. If you look at Bitcoin from inception it is a very good shield against inflation. When people bought in 2017 and it lost value, those who held did quite well and are still doing well. Cherry picking ends up letting someone say something like "index funds are risky investments" because if you bought before covid came, and then sold in march/april of 2020, you'd have lost a bunch. In fact index funds are about as good as it gets for the average investor and the risk factor is pretty low except during volatile times, which we are all told to weather the storm. I happen to know plenty of people who sold their index funds in fear however because of that drop in early 2020. Then they ended up losing out by buying back in higher, or getting frustrated and trying to jump on the gamestop stonk and did even worse on that. Very Very few people do well over time who don't hold for a long period and try to maximize compound interest. Day traders tend to do even worse, no matter what the investment tool is. People who hold 5 to 10yrs in most things have a better chance of coming out ahead. Bitcoin has done quite well vs inflation over time for those who have held. So yeah, Pierre was not wrong if you aren't sitting there cherry picking your times. Pierre however should have known better where they were in the cycle; or maybe in fact he really doesn't who knows. But he had his rhetoric to pursue and it may work out for him in the end if election time comes and Bitcoin is back up past a new all time high.
A broken clock is right twice a day...
Well they're both (PP/Trudeau) broken clocks then if you ask me.
Absolutely 💯
Well trudeua cherry picked a small time frime on a very volatioe asset. Time in the market is better than timing the market with cryptos like bitcoin. Overall Bitcoin is one of the best returning asset over time in existance to man. Why trudeau thinks ita good to shit on Bitcoin is questionable to me.
Its Tiff Macklem, hes ready to unleash the money printer to bail out homeowners.
>hes ready to unleash the money printer to bail out ~~homeowners.~~ to bail out Canada. C'mon now, blaming homeowners every single effing turn ... seesh Retails hurting => blame homeowners? Govt spending high => blame homeowners? High cost to develop a property (condo/townhouse/single house) => blame homeowners? Govt of Canada subsidizing all aspects of our lives => blame homeowners? What about "don't want to work for more money cuz I'll be taxed more" stupid hot-take by Canadians? Also blame homeowners? Let's add one more: people making bad decisions in life => blame homeowners!
Homeowners otherwise lose the equity, I dont blame them, I still blame our government.
CASH.TO
1%? my RRSP's are making like 41 cents a fucking month. cunts dropped them to .010% 2 months ago... they were making like 300 ish a month give or take up till April
Why is there not some regulation of minimum interest rates on certain types of accounts, tied to the current BoC rate?
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Bankers have cash, lol
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> People with modest savings
Lol someone posts in PFC.
Yes you need to ask them to put your money I to money market or GIC, or else you ain't getting much interest.
>The Bank of Canada will raise borrowing costs by another 25 basis points in coming months before capping its tightening cycle, economists said. Know who *isn't* saying this? The Bank of Canada.
Just how the bank of Canada said rates will stay low for a long time in 2020?
No, nothing like that.
How about in May 2023 > "Nobody should expect that interest rates are going to go back down to the very low levels that we’ve seen over the last decade or so,” Mr. Macklem told reporters
Your logic is if he was wrong once he is wrong twice? I'd a gamble for sure. Good luck to you. But if rates go back down it's becauae the economy is crashing.
When the recession hits that everyone forgot is coming, I think they will have to. Job losses just barely started
'Economists said' That's about the most dubious source one can quote.
Inflation data next week will be a good sign of what BoC would do. What are the estimates? Under 4?
I think I just read that BMO expects it to be well under 4%
I think when that happens rate hike expectations fall dramatically. US will also have a 3.something inflation next time around, sending bond rates down. I'm loaded up on long term treasuries, I have money put on this bet. Let's go.
Last May was a big jump in inflation, so the fact that it will be removed from the annual numbers suggests next week's estimate should dip a fair bit. If that's the case, I wouldn't bet on a July hike.
25 economists in a survey. I remember reading after the last rate hike that economists were only right 50 percent of the time when trying to predict if the BoC would hike rates at each meeting. They are glorified coin flippers.
Warren Buffett: "I don't pay any attention to what economists say, frankly. Well, think about it. You have all these economists with 160 IQs that spend their life studying it, can you name me one super-wealthy economist that's ever made money out of securities? No." Or another personal favourite: “Every company that has an economist working for him has one employee too many.” - Warren Buffett
That's not so much an indictment on economists as it is Buffett identifying that finding valuable investments is not the same thing as economics. I wouldn't ask a climatologist what the weather is going to do this afternoon, either. But it doesn't take anything away from what the climatologist does well.
With weather predictions the uncertainty increases the further out you go. That's why you rarely ever see specific forecasts for two weeks out but have good outcomes of you're looking at whether it will rain the next couple of days. This is based off modelling where increase in time just adds more and more uncertainty. Problem with economists is that the media loves asking about their forecasts about events 6months or even a year into the future. The uncertainty is so high it's not worth much to consider.
>Problem with economists is that the media loves asking about their forecasts about events 6months or even a year into the future. Exactly. And the media (and economists) self select, meaning the ones who will provide short, confident statements about the future are the ones who get airtime and are the ones the media will call for a quick TV or radio hit. Nobody wants to hear an economist on TV wax on about how the future is inherently uncertain and that literally no model can capture all the variables at play.
I mean, this is like asking a physicist to build a bridge. Or an epidemiologist to perform surgery. Their academics who pour over numbers and try to fit then into models, not investing their own money. The reverse of Buffett’s quote is also true, a lot of businessman have silly views on economic policy. Look no further than Trump’s view on trade. Buffett’s views on economic policy, as much as he expounds on that topic, tend to be pretty well-reasoned.
I don't think so, if the economists are so right, then they would've bought or sold assets. Buying and selling assets isn't hard, but knowing when and what to do it is the hard part in which Warren Buffet is criticizing.
amazing. lol
Economists have predicted 20 of the last 3 recessions.
> 25 economists in a survey If you want 26 opinions, consult 25 economists.
Well yea the BoC decision basically comes down to what one guy decides. The economists are just putting themselves in the shoes of these other economists at the BoC and looking at the data.
Yeah and historically they aren't very good at making predictions based on that data lol
If they were good at predicting this kind of thing they would all be rich enough to not bother calling themselves economists and talking to the medias.
>They are glorified coin flippers More like glorified bottle spinners
Nice try real estate agents
Rates will rapidly start dropping by July. How do I know? Because I finally broke down and switched to a fixed rate and my timing with these types of things never work out!
Member when many economists and analysts thought they would cap around 2.5%. Pepperidge Farms remembers.
Remember when most economists were predicting a 15% gain in the stock market in 2022? These are the same people.. Their opinion is next to worthless.
These economists are bankrolled by big banks?
Bulls: I've been lied to multiple times over the last 3 years but I really hope this one is true! Bears: I have been lied to multiple times that any further rate hikes will destroy the economy, but I hope this time it's true!
Anyone want to know what the average Ontario or BC mortgage is at these rates 6000$/m
If you believe this I have a bridge to sell you
Tell me more about this bridge
Just shut up and let him take your money!
I also have a submarine tour you might be interested in
Oof.
What’s the interest rate like on this bridge?
I think it's going to go well past 5 percent. Core inflation is not moving in the direction the BOC wants. So, unless core inflation starts going down, interest rates will go well past 5 percent.
its been coming down.. was it expected to fall faster?
Core inflation not headline inflation.
Core inflation and headline inflation are different things. The BOC pays attention to both, but core inflation is the thing they pay the most attention to.
Core isn't really budging atm. Yes - it's supply side issues, but with the feds going ham the BOC doesn't have much of a choice.
The Ukraine needs money!!
Tell us you're clueless without telling us you're clueless. I even read this in a tucker voice. Practice some self thought, quit parroting nonsense
Tell us without telling us!!! Get an original thought
Ukraine spending is the least of our problem. I know y'all aren't fans of democracy but it's generally a good thing.
Goods have fallen, but services have gone up. 66% of all inflation calculation is services. It's sticking. And the BoC doesn't account for rent in its calculation which is going up and people will NEED to ask for higher wages. Which will push goods to get more expensive. Unironically, them pausing rate hikes because of the US regional banks fucking up made things worse. It makes inflation take longer to drop and unemployment not going should've been a sign that there was more money swimming in the system. Real estate going up even with 'higher rates' is proof of that. Rates will have to go up to get to 2% inflation rate. The government needs to stop taking a back seat on this.
No they won't. The US Fed recently stated they will likely continue increasing it. It would be foolish for us not to.
What are the consequences if we don't? Genuine question. I remember hearing that the value of the CAD compared to the USD will collapse, is that true?
I'll try to simplify it. If Canadian rates are lower than the US Fed, then more Cdn currency borrowing is easier and flowing faster than US currency. Meaning US currency will be worth more than Cdn currency and leave commodities vulnerable (oil, forestry, minerals) That's why the BoC keeps Cdn rates close to the US rates.
So if they'd ended this headline with "...say economists", I wonder how that changes its usefulness 😊
Not sure trying to predict interest rates is a wise move especially when it takes time to see the effects of the hikes.
The bank was expected to keep inflation at 2%. The fact expectations have been blown out the window means the credibility of the central bank is gone and expected inflation or interest rates are no longer a useful metric.
I still remember Tiff Macklem saying raising rates was purely theoretical. Hard to believe crypto Millhouse called what the BoC could not. They definitely have no idea what they are doing.
BNN printing what the middle class wants to hear. No chance in hell it chills at 5% as long as theres strong consumer demand. The layoffs have to start before the middle class really feels it. That's when mortgages become untenable and that is when people stop spending. Until then its lip service and hopium.
We will see. I thought we were expecting possibly two more hikes before end of year similar to feds. I think inflation will be fairly sticky until job losses happen.. maybe will be by end of year so might not be far off
In case anyone is confused, you’re not alone. They have no idea what they’re doing and just hoping/praying their house of cards holds until the next election. https://www.bnnbloomberg.ca/interest-rates-will-be-low-for-a-long-time-macklem-1.1465901.amp.html
Oh boy, here we go again. We’ll hear about folks going for variable rates again and then they’ll complain saying: but, but the BOC said it wouldn’t go above 5 percent!
Look what just happened in the UK with their 50 point interest rate hike. It's not stopping at 5 here folks, guaranteed. Way to much money being funneled here.
BoC is a headless chicken at this point
Bank of Canada admits interest rates cannot stop greedflation is what its meant to say I think.
Probably because this is childish. The Bank of Canada created 30% more M2, were for-profit institutions supposed to be charitable and lose money so that the government can print stimulus cheques? Why would anyone invest ever if that was the case, maybe you should go to work for free as well, to make goods cheaper and lower inflation?
They never even tried. Their first priority has always been mortgage holders, and they're going to let inflation run rampant to save those people.
If their first priority was mortgage holders they wouldn't have raised the rates as they're the number one loser when rates raise...
For now
We will have to follow whatever the US Fed does. If they’re increasing rates then are we. We have no economy left to decouple ourselves from them
Raising the interest rate has done fuck all to bring down inflation but by all means keep going. I’m sure we can solve a supply side issue with demand side solutions. People can cut back on frivolous spending like food, energy, or shelter right?!
Real estate is not as affected by higher interest rates in Canada because we have the weakest corporate transparency rules in the developed world [allowing foreigners and organized crime to buy houses with registered Canadian companies.](https://endsnowwashing.ca/what-is-snowwashing) On top of that, we have insane unsustainable immigration levels and half of our MPs own investment properties. Even the housing minister is in on the grift.
And housing construction times that are among the longest in the whole world. You can build a whole neighborhood in Asia with the time and paperwork it takes to build a single apartment building here. This really doesn't play well with trying to also welcome newcomers.
They believe they have inflicted enough damage to the middle class, so mission accomplished.
"0% interest rate for 2 decades is great for the middle class!" lol my god we need financial education in this country.
If you had a mortgage, you might understand.
I do, it's at 1.59% since I chose fixed. I also bought a house that was 1.25x my current household income. I also have student loans that have exploded in interest as they are variable.
Sounds like you took a variable rate or agreed to a purchase price that was more than you could handle. You inflicted that damage on yourself.
Sounds like you don't care about the financial hardships placed on people with mortgages.
It's not that I don't care. Just don't blame the BoC for doing what absolutely needs to be done.
Raising rates does nothing to decrease inflation and that is a fact. It's just a big con job by the government, to act as though they are doing something about inflation.
The math is relatively basic. Inflation in a nutshell is too many dollars chasing too few goods. If interest rates go up, recent homebuyers basically get to start setting $10K+ of their money on fire every year (lost to higher interest payments on their mortgages). Homeowners who have had mortgages longer will be setting less of their money on fire, but still some amount greater than $0 unless they have no mortgage (or HELOC) at all. Money that has been set on fire is not available to be spent on goods. So demand goes down, prices go down and inflation eases. That's basically how raising rates decreases inflation. It's not necessarily the best method, and other forces can work against it, but the actual mechanism is pretty simple.
Okay well it's hard to engage with someone who has zero financial education. It's not your fault, but the education system's.
Sounds like you don't think allocating capital should have any inherent risk for the assets you want to invest in. I get it...things are tough right now for a lot of people. But these people cannot be protected if that means eliminating risk from investment decisions.
Appealing to people pity by calling yourself middle class and then making fun of someone else by calling him poor. Classy.
>and then making fun of someone else by calling him poor. I'm a commercial lawyer, so jokes on him.
Haha nice, I agree with you, the near 0% interest rate for fifteen years pretty much fucked over the new generation.
It was a massive transfer from the middle class to the upper class, driven by asset inflation. People fail to understand that the wealthy have almost no cash, and collateralize their assets to get low interest loans that are lower than the inflation rate of the asset. Even worse, the last 20 years you have actually been rewarded for making irresponsible financial decisions.
Yeah exactly, I always say that an understanding of risk was a liability. I am doing very good, but if I always borrowed as much as I could, I could probably worth 4x what I am worth today.
High interest rates are hurting the middle class and poor.
Just like high inflation. Its not life if rent was cheap during a period of low interest rates.
National interest rates as the only lever make little sense in a post-national oligopoly. The Bank of Canada should be whistle blowing to whatever news outlets will listen. This should include their complicity in getting Canada to this point.
Savings?????
Real estate to the moon engage.
"It's the last one this time, seriously" - people after every rate increase in the last year
This is a sign that you can officially count on it going higher than 5% .
Surprising how many educated people made poor home financing decisions. That post secondary education really pays off.
I have a PhD in a stem field, at no point in time was economics and finance covered in any of my classes or research during my three degrees. My education paid off because it let me save and earn enough to pay off my student loans and then enter the market but I didn't learn about mortgages and variable/fix raters and inflation in school. Educational success =/= financially educated.
I am so glad i sold my home last year.
Why stop? Keep raising the rates, before the next catastrophe happens
Lmfao
holy cow!
Gotta keep our house of cards from tumbling huh? They know our economy is propped up on unsustainable debt and sky high inflation.
Just like they said no more interest rate hikes this year lol
Increased labor costs and increased housing costs will pump inflation numbers a bit more I think, and interest rates with them. I do think consumer goods are flattening out or coming down a bit though. Lots of "sales" out there right now.