Tag Archive for: economic crisis

Don't look a gift horse in the mouth!

Ok I am not asking you to kiss your sister. There is nothing unpleasant here (for you or your sister). Heck it’s practically free. I am going to break with one of my golden rules and talk to you about mortgage rates. Now before you get too excited, I am doing it to illustrate an opportunity rather than as a price comparison tool.

In the 7 plus years that I have been a mortgage broker, I have seen rates go up an down. I have seen 5 year fixed rates as low as 4.5% to as high as 6.2% for the discounted AAA rated clients. The current turmoil in our financial markets has caused a liquidity crisis for many major lenders ( specifically in the US). This has made it necessary for the US government to inject Billions … Read more

How low can this go?

Over the past year or so our world economies have slid downward toward a recession. Now that we are in one, the question that comes to mind is how low can this go? Have we hit rock bottom or are we still digging deeper? Even though we may have very little impact on the general direction of the overall economy, we can however have a great impact on our own and even improve it for the better in spite of these challenging economic times. 

Ask yourself the following questions:

1) Have your personal finances been effected by the downturn?

2) Are you spending more or less? 

3) Has your employment status changed?

4) Do you think that your employer could make your position redundant?

5) Do you have a rainy day fund with 3 months income saved up?

If by … Read more

Bank of Canada sets key overnight rate to 1%

Well the Bank of Canada has done it again. They cut the key lending rate by another 50 basis points. So it is now at 1%. They are doing this because of the current world wide economic crisis, and the belief that our economy will shrink by another 1.2% this year. The central bank also said that the current global financial system must stabilize before any economic recover is to happen.

For those of you who have not been keeping track, the Bank of Canada has cut the key lending rate by 350 basis points ( or 3.5%) in the last 13 months. Some also say that there is a possibility for another rate cut at the next scheduled meeting in March.

The charted banks quickly reacted by lowered their prime rates from 3.5% to 3%. Even though they matched … Read more

Quickest way to recession proof your life!

We all would love to have the same level of comfort we were used to when the economy was booming. Now that things are less certain, the spectre of job losses impacting our own income is looming large. How can we protect ourselves before the worst happens?  What if there is an option available, one that does not require hours and hours of your time?      

We have looked around and found inspiration in the mindset many students have.  Not the ones who are stressed out trying to make their grades, the other ones: the ones who are making their grades and paying their way, the ones who don’t get stressed if the job at the store ends.  If that happens, they simply find another job to take its place or they don’t stress at all because that was their “fun”

… Read more

Bank's overnight rate drops to generational low!

The Bank of Canada just lowered it’s key lending rate by three quarters of a percentage point or .75 basis points. Assuming the banks follow the BoC lead ( they have not always the past few months) that will make the prime lending rate now 3.25%. This latest act of desperation by the BoC is to prevent us from dropping into a deeper and more prolonged recession, because of a world wide economic crisis and a troubled U.S economy.

This is all in an attempt to increase the flow of funds and to increase consumer confidence. In layman’s terms it is supposed to give you (and businesses) incentive to go out and spend some of your hard earned cash. This will not result in an immediate reversal of fortune, that will take some time. The immediate result they are … Read more