“I wrote my MP and told him a nice story of a guy I know: $900k mortgage care of CMHC; 80% of the property rented to make the mortgage payments; less than $50k per year income.”

pricedoutfornow at vancouvercondo.info March 23rd, 2011 at 10:56 am“I wrote my MP and told him a nice story of a guy I know who has a $900k mortgage, thanks to the CMHC and the government of Canada. I pointed out that this guy has to rent out 80% of the property to make the mortgage payments, and still managed to qualify for a loan, despite the fact that he’s never made more than $50k per year in his entire working life. Problem? Nahh….Of course, if this same guy had approached a bank for a business loan in the same amount he’d be shown the door so fast. But because it’s a HOUSE he bought, the bank welcomes him with open arms, since who cares if he defaults? CMHC will take care of it. No problem! Of course no politician wants to admit that this could be a problem. But I’m sure they all see the writing on the wall.”

16 responses to ““I wrote my MP and told him a nice story of a guy I know: $900k mortgage care of CMHC; 80% of the property rented to make the mortgage payments; less than $50k per year income.”

  1. Writing an MP is pretty much the same as begging. Or worse. The politicians don’t care. Many of them probably have mortgages themselves. Most own homes. High prices and moral hazard are in their interest as well as in the interest of almost all existing debtors. Unless you consider the long term effects… but who cares about long term, right? The party is right now!

  2. I don’t think it matters what party is in power either. They all resort to the same useless (to voters) tactics and instead favor the useful (to politician) tactics. We have a fake democracy in Canada, which doesn’t appear to have a solution to fix.

    • Thus, the solution is not to vote them in but to vote them OUT before further damage is incurred. See what happened /is still happening to USA after 3 continuous terms of George Bush Jr, and el Grodo.

  3. From a career pol’s perspective, ordinary constituents are as close to the bottom of the political food chain as you can get… Occasionally useful, perhaps, for 6 o’clock optics – but more often than not, a nuisance.

    When you’re playing for keeps the ‘name of the game’ is, first and foremost, always ‘TheMoney’. Accordingly, if you want to play – you’ve gotta pay.

    For the empiricists among you – a recent, exhaustive/rigorous academic longtitudinal study of American Congressional/Senatorial voting records established clear/causal patterns/linkages to the role of campaign finance in influencing politicians’ voting records/legislative priorities… When I stumble upon it again… I’ll link to it here.

    • I think a system where central bankers have a lot less power or just plain don’t exist is probably better than what we have right now. I see the problem is the in the very nature of money itself is a cause of the political problems we suffer.

      Money itself has no value so going back to gold as a physical money is not a good idea. The purpose of money in my view is simply to gain the co-operation of others and in the process get what you and offer what others need. Perhaps in some future we will have better institutions with better ways of controlling the creation of money and distributing it.

      • Restaurant Unemployee

        it would help if the board of the BoC wasn’t comprised entirely of the boards of all the big banks, too.

        it’s a comfortable kind of hell. i think the truth is that everyone CAN understand the flaws/glaring problems, but there is a severe lack of political will to do so. they’d rather sip a chai latte and leaf through carpet samples than get out in the streets and take some kind of zealous, ethical stance on the complete orgy of greed all around us – that just doesn’t fit the mold of a ‘normal person’ does it?

        oooo nachos..

      • RU, I think you’re underestimating the ability and motive of the Bank of Canada. The mandate of the BoC (and any other central bank) isn’t to make social policy. Its job is to make sure that the economy of Canada isn’t being run into the ground. The tools by which the BoC can use to prevent this sort of shit are rather blunt and come in the form of monetary policy. Once in a while you’ll hear interesting stories like David Dodge summoning the head of the CMHC into his office to ask WTF (I think this happened in 2006 or 2007) but by and large the BoC has bigger problems on its hands like inflation, lending rates to other banks, and other shit related to fractional reserve banking.

        But you hit the nail on the head. Housing policy is political.

        Pass the nachos please.

    • How the world really works… at least, in the HillBillyRiviera… 😉

      [PentictonHerald] – Race to replace Day was rigged say some hopefuls

      “…a clear abuse of the electoral process.” – former fundraising chair for Stockwell Day Mischa Popoff – “It’s clear Albas had insider knowledge of Stockwell Day’s retirement. So did his two opponents (Neufeld and Ensign) who, like Albas, served for years on Day’s board…”

      “Day let all the (sic) three of these insiders know he was retiring and then made his announcement public so late that no one else could get into the race. Many highly qualified candidates were turned away simply because they didn’t get their paperwork in on time, a scheme that was deliberately orchestrated by (Sharpe).”

      http://tinyurl.com/6xb4bws

  4. Yeah, we’d agree with sentiment expressed:
    -Writing MPs is unlikely to have any effect (unless done with strong evidence that a large and powerful group of voters is behind the sentiment expressed. Not the case in this instance.)
    – The policies of the party in power have less effect on economic/market matters than extraneous factors such as economic cycle, market cycle, currency values, commodity prices, etc.

  5. Our system is an oligarchy lightly disguised as a democracy.
    Anybody know examples of better existing systems?
    So far, this may be about as good as it’s gotten.

    • Restaurant Unemployee

      the frustrating part is that it’s so ugly when you boil it down like that – then you step outside and the sun is shining and the birds are chirping, everyone is toiling away 9-5 to keep the whole thing running… it’s all so futile – yet if we were better educated, critical thinking people, would things be different?

      no one wants to hear it, no one wants to know.

      a friend’s mom just posted a ‘rant’ on facebook bitching about people who ‘complain’ that their lives are a disaster, have some personal responsibility you losers, etc. etc. and i can’t help but think.. you’re a florist that has a mortgage – let’s see how this plays out. but reading her sentiment and that of her friends sort of makes me think Steve-O is going to get his majority.

      i’ll never forget my personal ‘aha’ moment, sitting on the bus reading ‘manufacturing consent’ – then looking up at all the advertisements for Global News.. it was either that or the zoomers, not sure. 😉

    • Bingo, RU!!!… I’ll see your, ‘TwoEagles’….

      and raise you one, ‘Shaman’…

      http://tinyurl.com/4zu7qep

      and seven Diné…

      http://tinyurl.com/4gwtu67

      three Piegan…

      http://tinyurl.com/4zhxve8

      one Hupa….

      http://tinyurl.com/4pcuqed

      and, all in, with 3 Noatak….

      http://tinyurl.com/4jd363c

      Yes, ‘Nemesis’ is a great admirer of ShadowCatcher… and longs to get ‘back on the rez’… MonumentValley 😉

      • Ornamental Tepee Usury

        i’ve been familiar with the seminole wars and subsequent displacement to reservations in oklahoma but today i was reading about the ‘trail of tears’ – some of the routes taken are now marked along medians between strip malls, etc. really surreal – reminds me of seeing a passed out aboriginal man with a bottle of booze in his hand lying at the foot of a giant statue of queen elizabeth in brisbane.

        i remember a year or two ago there was a big outrage about the video signs along the #1 and #99 put up by the squamish band, and in response to accusations of damaging the landscape, the chief said during the meeting – or something to this effect “i think it’s a little late for that, don’t you?”

        we all had a hoot about that.

        if i can quote burroughs – ‘i am with the invaders, no doubt about that’ – but in my mind’s eye i can picture this continent pristine and a way of life completely foreign to us now, though far more valid.

        i’m rambling – flip that house! wooo let’s all buy X5s

  6. the MP might come back to you and ask if this guy can do it, why can’t you?

  7. Can’t say it better!

    metalhead Says:
    March 24th, 2011 at 7:39 am

    “the CMHC’s board of directors—a board that includes a political consultant, real estate developers, a small-town lawyer and even the owner of a plumbing company—though not one single economist or recognizable financial services professional.”

    Good article. I found this little tidbit interesting.
    This “board” is the cherry on top of the cow pattie that is the CMHC.

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