Housing crash in Canada could cost mortgage lenders almost $12 billion, Moody’s warns
There are “systemic vulnerabilities” in the Canadian mortgage market that would be exposed if the country were hit by a U.S.-style housing meltdown, according to a report from Moody’s Investors Service.
A crisis on that scale could result in combined losses of more than $17 billion for the Canadian banks and mortgage insurers, with house prices falling by as much as 35 per cent, the ratings agency said in the report, published Monday.
Among the vulnerabilities cited in the analysis is the potential for downward pressure on prices emanating from a sub-group of lightly regulated mortgage lenders that have slipped through the regulatory cracks and do not face the tighter underwriting standards imposed on deposit-taking banks and some credit unions.
To begin, I'll focus on the present consumers of 70% of the worlds crude, the OECD+China+Russia+Brazil. And if we check the annual change to their combined 0-64yr/old population (blue line in the chart below), 0-64yr/old population growth has decelerated 90% since the '88 peak and cumulatively turns to outright annual declines by 2019. The annual declines accelerate indefinitely from there. I also show total 0-64yr/old annual global growth (black columns) and 0-64 growth among the RoW or Rest of the World (red line).
But the rising rent on their one-bedroom apartment — more than for their three-bedroom rental in Pittsburgh — made it impossible to save enough to buy a home. With their rent going up again, the couple moved to a cheaper suburb in hopes of repaying their student debt and saving for a starter home.
Baby boomers tell you there is a way out: a college education has always been the key to a good job. But that doesn’t seem to happen anymore. The college graduates you know are drowning in student debt, working for minimum wage, or toiling in unpaid internships. Prestigious jobs are increasingly clustered in cities where rent has tripled or quadrupled in a decade’s time. You cannot afford to move, and you cannot afford to stay. Outside these cities, newly abandoned malls join long abandoned factories. You inhabit a landscape of ruin. There is nothing left for you.
BP Moving Fast On Egyptian Gas
British energy company BP said Monday it was putting a deepwater natural gas project in Egypt on the fast track to development. BP and its regional partner, the Egyptian Natural Gas Holding Co., sanctioned a fast-track scheme to bring 300 million cubic feet of natural gas per day to the domestic Egyptian market from the deepwater Atoll development by the first half of 2018. “BP is proud to progress the acceleration of the Atoll project which will bring critical gas to the Egyptian market,” BP Regional President Hesham Mekawi said in a statement. BP at one time produced almost 40 percent of the oil in Egypt through its regional partnerships and nearly 30 percent […]
