Is it a bubble? Is it about to burst?
Real estate anxiety is sweeping the country. But what's really going on in the housing market?
Read more here.
David Beeson
Provided by David Beeson
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David Beeson — Realtor
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Markets this Week > Weekly Market Commentary
Efforts to stimulate U.S. economy breathe new life into turbulent markets
January 25, 2008
Canada’s S&P/TSX composite index endured its steepest single-day decline in almost seven years Monday before a massive interest rate cut by the U.S. Federal Reserve triggered a complete recovery over the balance of the week.
Canada’s benchmark fell 4.8 per cent Monday, its worst drop since February of 2001, on concern that a U.S. recession could significantly slow global economic growth. Markets in Europe and Asia also suffered heavy losses on the day as investor sentiment dimmed over the outlook for the U.S. economy. U.S. markets were closed Monday for Martin Luther King Day.
The benchmark began its ascent Tuesday after Federal Reserve policy makers slashed the Central Bank’s overnight lending rate by three quarters of a percentage point to 3.5 per cent in view of a “weakening economic outlook.” The surprise decision, coming one week before policy makers were scheduled to meet, was the largest cut in the federal funds rate since 1982. It was also the first time since September of 2001 that Federal Reserve policy makers had changed their benchmark lending rate outside of a regular meeting. The Federal Reserve also lowered its discount rate, the rate at which it lends to commercial banks, by three quarters of a percentage point to 4 per cent....
This article of intrest was presented By Jocko Toic at the Investors Group. If you would like more one on one information, please feel free to contact him at:
Jocko Toic - Consultant
Investors Group Financial Services
2-2429 Dobbin Rd. Westbank, BC V4T 2L4
Ph. (250) 768-4546 Cell (250) 869-9636
Fax (250) 768-9005 Toll Free (866) 768-4546
Email jocko.toic@investorsgroup.com
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TD Economics Report
From TD Waterhouse, Investment Advice
North American markets heaved a sigh of relief Tuesday as central banks in Canada and the United States slashed interest rates and eased some of the tension building up over a possible U.S. recession.
But experts were quick to point out that the one-day revival was not a sign that the rocky ride is anywhere near over for global markets.
The moves to soothe investor anxiety helped the Toronto stock market recover a significant portion of the losses it logged on Monday in its biggest one-day drop in seven years.
On Tuesday, the TSX rose more than 350 points near midday - one of its biggest gains in five years - while Wall Street was down but avoided sinking as deeply into the red as some economists had expected.
The TSX moved up 360.08 points in trading to 12,492.21, reversing more than half of the previous day's losses.
Toronto's main index had plunged 605 points on Monday, losing 4.75% of its value, the product of a deep, widespread nervousness over just how bad the predicted U.S. economic downturn will be. The massive selloffs came on top of a 6% loss last week.
U.S. markets were in catch-up mode after being closed Monday for a holiday commemorating civil rights leader Martin Luther King Jr. The Dow Jones industrial average was down 156 points at 11,952 - recovering from a 457-point fall in early trading.
Bolstering the markets were the two major interest rate announcements - the U.S. Federal Reserve jumping in with an unscheduled and unusually large cut of three-fourths of a percentage point to its federal funds rate, the interest that banks charge each other on overnight loans, to 3.5%.
Reports said it was the biggest cut in that key rate in more than two decades.
And the Bank of Canada, in its regularly scheduled review of interest rates, cut its key overnight rate by one-quarter of a percentage point to 4%, leading the major banks to reduce their own borrowing costs by the same amount.
What's clear is that no one yet knows how much economic damage has been caused by the implosion of the U.S. subprime mortgage sector. Many economists have begun to change their tune on whether the dire numbers coming out of the U.S. housing sector have spread far enough to spark a recession in the world's biggest economy.
In the short term, European markets responded to comments from local officials who said their economies were positioned to weather the turbulence from the United States. London's FTSE 100 index gained 2.9% while France's CAC 40 rose 2.1% and Germany's DAX ended relatively flat with a 0.3% decline.
Asian markets closed before the U.S. Fed revealed its rate cut, so market reaction isn't expected until Wednesday, and they were clearly still rattled.Japan's Nikkei 225 index nose-dived 5.7% - its biggest percentage drop in nearly 10 years - to 12,573.05, a day after falling 3.9%. Australia's benchmark index sank 7.1%, its steepest one-day slide in nearly 20 years.
Hong Kong's Hang Seng index, which slumped 5.5% Monday, finished down 8.7%. In China, the Shanghai composite index lost 7.2% to 4,559.75, its lowest close since August. Since the start of the year, Asian markets have been on a downward spiral with the Nikkei tumbling nearly 18%, while the Hang Seng is down a stunning 22%.
Trading in Mumbai was halted for an hour when India's main stock market there fell 10% within minutes of opening. The Sensex rebounded some to close down 5% after plunging 7.4% Monday.
Steve's Rates
| Mortgage Term | Our Rates | Standard Rates |
|---|---|---|
| Variable Rate | 5.15% | 5.75% |
| 6 Month Closed | 6.75% | 7.35% |
| 1 Year Closed | 5.85% | 9.50% |
| 2 Year Closed | 6.20% | 7.50% |
| 3 Year Closed | 6.05% | 7.50% |
| 4 Year Closed | 5.95% | 7.54% |
| 5 Year Closed | 5.85% | 7.54% |
| 7 Year Closed | 6.20% | 7.85% |
| 10 Year Closed | 6.40% | 8.20% |
| 15 Year Closed | 6.40% | 0.00% |
| 18 Year Closed | 6.90% | 9.20% |
| 25 Year Closed | 7.00% | 9.50% |
Rates are subject to constant change, for the best rates call 1-866-993-8787.
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