Financial markets and the possibility of a crash! Series 3

Third in a series of articles about our financial markets

Quite probably, also as was the term Credit Crunch which was liberally used.And we think we invented everything.

Oddly enough, there were many rich investors on a ship on which J.P. Morgan had an office onboard, with a wireless connection to their NY office.

These investors who held huge positions on margin, when they left Southampton were rich, however when they arrived in NY they were wiped out,although they had been trying to sell all the way on their return voyage home.

Many of these people lost as much as $20 Millions each and one of the investors in NY offered and finally did put up $25 Millions of his own Capital, only to lose it.

Being somewhat entrepreneurial, he had saved some cash and bought back the $250.00 shares for 20 -30 CENTS EACH and held onto them.

His son was interviewed from his Long Island home a few weeks ago. Apparently, they have kept the fathers spoils of war, as they are not living in abject poverty.

The moral of the story could be: Hold Nortel and Bre-x, they just may come back

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com

• Thinking of selling your home in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• Power of Sales and Foreclosures
• If you have not already signed up to receive my monthly real estate newsletter, you may do so here: On-Line Real Estate Newsletter sign up
• See seasonal housing patterns
• Would you like me to send you a 2009 Calendar?

Real Estate Market Market Trends 2009

This is the latest press release from RE/MAX regarding the housing market in Ontario Atlantic Canada, all good news, of course!

Enjoy

Mark

Luxury housing sales edge higher as purchasers take advantage of buying opportunities in Ontario-Atlantic Canada, says RE/MAX

Mississauga, Ontario (November 3, 2009) - Luxury homes sales continue to accelerate as economic recovery takes hold in major markets in Ontario and Atlantic Canada, according to a report released today by RE/MAX.

The RE/MAX Upper End Report found that momentum is building in St. John's, Saint John, Halifax-Dartmouth, Ottawa, Kingston, Greater Toronto, Hamilton-Burlington, and London as purchasers realize that the best buying period in recent history is about to come to a close. Sales are already on par or ahead of last year's levels in 50 per cent of cities surveyed, while the remaining markets are set to reach 2008 figures by year-end.

"Twelve months of healthy home buying activity have clearly been crammed into five short months," says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada. "It's hard to believe that the transition in the market began in May. We've seen steady upward momentum since that time, with solid year-over-year gains posted each and every month."

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com

• Thinking of selling your home in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• Power of Sales and Foreclosures
• If you have not already signed up to receive my monthly real estate newsletter, you may do so here: On-Line Real Estate Newsletter sign up
• See seasonal housing patterns
• Would you like me to send you a 2009 Calendar?

Financial markets and the possibility of a crash! Series 2

Second in a set about the financial markets in Canada

Depression was a result of many factors.In that the Market had crashed, the companies who used to be traded, had now shares that had no monetary value ( read Nortel ).

In that the Banks had no faith in these companies, because they had nothing that would show a positive collateral value, they could not raise funds to operate.

The words "Credit Crunch" were used liberally on the old film clips. Additionally, as these companies also had no ability to produce product, their markets shrank or actually disappeared completely. This gave rise to a continuum of layoffs and plant closures.At that point in time, the general public lost faith and just stopped buying anything except necessities.

Additionally, at that time, Credit was becoming a household word, people had borrowed money to get into the "can't lose Stock Market" and now could not pay it back. This resulted in multiple foreclosures, no building, no buying.

The rest is History, save and except a few enterprising people who had stayed out of the Market and were Cash rich.

They went out, cash in hand and bought up any Real Estate that had a potential for recovery and also expensive Automobiles that they put away and sold at huge profits when the Economy returned to normal.

All too familiar....No?

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com

• Thinking of selling your home in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• Power of Sales and Foreclosures
• If you have not already signed up to receive my monthly real estate newsletter, you may do so here: On-Line Real Estate Newsletter sign up
• See seasonal housing patterns
• Would you like me to send you a 2009 Calendar?

Financial markets and the possibility of a crash! Series 1

This is a very good series of articles and this is the first of a series

of this past "crash".There were bailouts, injections of large amounts of cash, by both Banks and private individuals.Interestingly enough, there was no Government intervention.

The Fed's felt that the prevailing markets could best be served if left to their own devices.

Although many felt that this was the cause of the Great Depression, noted economists, both today and then,state that this may just have been a contributing factor, however, all agree it was not the cause.

Seems just like today, except the Government did the bailouts.

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com

• Thinking of selling your home in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• Power of Sales and Foreclosures
• If you have not already signed up to receive my monthly real estate newsletter, you may do so here: On-Line Real Estate Newsletter sign up
• See seasonal housing patterns
• Would you like me to send you a 2009 Calendar?

Financial Markets in Canada

What is the outlook for the financial markets in Canada?

This is a question that has been asked many times over in the past.

Here are some thoughts, Enjoy!

Mark

Our morning rant about the economy and it's possible demise. Again!!

Employment numbers are up as of this morning.

RE is up yet again, both in sales and avg. values.

The Cdn. Dollar is headed back to parity. Oh well, never mind that I bought a bunch of USD before it went to $1.05 now it's about $104.4

Gold is still on the upswing at $1096

Silver at $18.45

All these are out of sync.

When the dollar goes one way, metals usually go the other.

W hat is going on?. This is either a mirage which will disappear soon or is it really possible that real recovery is in progress.

Now the Prophet of Doom speaks....SELL, The end is nigh !!.

Hope you can answer any of this, because I sure cannot.

If you can make heads or tails of the markets, let me know your secret!
Mark

Residential real estate Tips for the week

This is a good tip from a lawyer, Bello Lagoudis

He states:

When acting on a residential property being used as a multiple family dwelling always insist on a buyer condition regarding the retrofit status of such property. This includes tenanted basements as buyers are depending more and more on this source of income generation, cities and towns are getting tougher on violators, and lenders are increasingly insisting on retrofit status.

Should the seller refuse the condition it would at least alert the buyer that the property is, in all likelihood, zoned for single family use.

I hope you find our hints helpful!

Please feel free to email any question you may have on residential real estate,

Mark

Why dogs do not like Halloween.......

Why dogs do not like Halloween.......
I posted this on my blog because this is just 'too funny'
If you have any other photos of dogs or pets in funny Halloween costumes, please post them here or send me the picture in an email and I'll post it on my blog.
Thanks and Enjoy!

Mark































































I've added a few more that people have just sent me!

Current Mortgage interest rates

These are the current posted and 'best' mortgage interest rates in the GTA

Please let me know if you need a mortgage broker contact, just email me.

Thanks

Mark

TERM	POSTED	"BEST" RATES*
6 Month	4.60%	3.65%
1 Year	3.75%	2.66%
2 Year	4.05%	3.05%
3 Year	4.60%	3.47%
4 Year	5.29%	3.89%
5 Year	5.78%	3.99%
7 Year	6.60%	5.10%
10 Year	6.70%	5.20%
Variable Rate		2.15%
Prime Rate		2.25%

* Rates may vary provincially and are subject to change without notice OAC.
Rates Last Updated: Thursday, October 29, 2009

How can Fixed rate mortgages increase when variable rate drop?

Hello

This was a great article that I received and thought I would pass along to you. It discusses why the short and fixed rates can be going in opposite directions at the same time.

Intuitively, this does not make sense, but once you read the article below, you will understand.

If you don't know whether to go long or short term, read this article:

http://www.mississauga4sale.com/Lock-In-Short-Term-Long-Term-Mortgage.htm

All the best,

Mark

How can fixed mortgage rates be going up when variable rate is coming down?
And how do you choose whether to go short or long term on your mortgage when it comes up for renewal?


Now just imagine the family dinner conversation where your brother or sister declares utter confusion at how the prime rate could drop on the same day that rates went up for fixed mortgages. This just doesn't make sense... or does it? Let's clarify how fixed-rate and variable-rate mortgages are priced and you'll see the difference.


Variable rates are tied to your bank's prime rate, which is based directly on the Bank of Canada rate. The Bank of Canada is our central bank, operating at arm's length from the federal government. The central bank uses its rate as a tool to achieve the goals of "Low and stable inflation, a safe and secure currency, financial stability, and the efficient management of government funds and public debt." Our central bank sets the trend for short-term interest rates and has a direct impact on short-term rates for mortgages and lines of credit, as well as rates paid on deposits and investment certificates.


Fixed-term rates, such as long-term mortgage rates, by contrast, are based on the bond market. Generally, a bond is a debt with a promise to repay the principal of that debt, along with interest. Bonds are issued by governments and large businesses. We've all heard of Canada Savings Bonds, right? And they are just one type of bond. The "yield" of the bond is the annual rate of return, expressed as a percentage. Bond yields can be volatile and fluctuate in response to various political and economic factors, such as inflation and unemployment figures, and developments in the stock markets. They are increasingly affected by global forces.

Long-term mortgage rates (3 years and longer) are based on bond yields, but are less volatile because financial institutions absorb the daily market fluctuations in order to create a more stable rate environment for their customers. Generally speaking, higher bond yields increase funding costs for banks, which in turn leads to increased long-term fixed rates.

Conversely, lower bond yields lower banks' funding costs and lead to lower long-term mortgage rates.

So, short-term rates move with the Bank of Canada's needs, while longer-term rates are tied to the bond market. The Bank of Canada can influence long-term rates, but it has no direct control over them. This difference in how rates are set is the reason we sometimes see short-term and long-term rates moving in unison, while at other times they diverge.


If it seems difficult to choose between a fixed and variable or long and short mortgage, you don't necessarily have to choose. Perhaps the easiest and best solution is to break your mortgage into pieces and diversify your borrowing across short and long terms. This is mortgage "laddering," a concept Canadians know and use to stagger their GIC maturities for diversification, but which surprisingly few of us use for our mortgages.

Diversification is an important principal that applies as much for borrowing as it does for investing. By blending different types of mortgages and staggering maturities, you can diversify your interest rate risk, and perhaps minimize your interest costs.

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com

• Thinking of selling your home in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• Power of Sales and Foreclosures
• If you have not already signed up to receive my monthly real estate newsletter, you may do so here: On-Line Real Estate Newsletter sign up
• See seasonal housing patterns
• Would you like me to send you a 2009 Calendar?

bank of Canada hold the line on the current interest rates

The Bank of Canada continues to say they will hold the line on the current interest rates. Thsi is very good news for buyers and investors, real estate should continue to do well in this climate of low interest rates.

Entire press release is below

All the best,
Mark

Bank of Canada repeats pledge on rates

OTTAWA (Reuters) - The Bank of Canada repeated on Tuesday a conditional pledge to keep interest rates steady through mid-2010, saying the Canadian dollar's strength would more than fully offset favorable developments since July.

Governor Mark Carney, in opening remarks to the House of Commons finance committee, said recent indicators point to the start of a global recovery and that a recovery is under way in Canada following three consecutive quarters of sharp contraction.

He also repeated that the central bank has "considerable flexibility in the conduct of monetary policy at low interest rates," language that means that the bank could, if necessary, engage in quantitative easing, essentially printing money.


For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com