This year’s CAAMP economic roundtable in Vancouver included chief economists from Scotiabank (Warren Jestin), National Bank (Stephane Marion) and Laurentian Bank (Carlos Leitao).
Most of their discussion revolved around risk in some way or another. Here’s a quick rundown of 10 comments they made that stuck out:
- “The biggest risk to the financial sector would be politicians.”—Marion
- “If we get any (economic) surprise in the U.S. it’s going to be an upside surprise.”—Jestin
- “2013 will still be a year of transition, with somewhat higher mortgage rates.”—Jestin
- “Economists are scaring you. Rates aren’t going anywhere.”—Marion
- “Fiscal austerity may collide with housing policy” in Canada.—Marion
- As a percentage of GDP, residential construction is 7%, which is “unsustainable”—Leitao
- The worry about household debt is “hugely overblown.”—Jestin
- CMHC is not at risk like Freddie and Fannie (in the U.S.), largely because those two “were forced to lend to meet their mandate.”—Leitao
- “Unsecured debt is “not the problem” in Canada—Leitao
- People used to buy houses near good schools. With a rapidly aging population, you may want to “Buy near a good hospital.”—Jestin
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Last modified: April 26, 2017
#10 is the winner! :”)
People used to buy houses near good schools. With a rapidly aging population, you may want to “Buy near a good hospital.”—Jestin
Good advice for investors
Check out recent numbers from the US. Once they get past the fiscal cliff, I think US growth will shock the bond market. If the US bond bubble bursts, we’ll be paying over 4 per cent for a five year fixed by next year this time.
I love the opinions of these people, they’re always optimistic. Never the gloom and doom scenarios vehiculed by the mainstream medias outlets !! I love these guys !! Thanks for sharing Rob, keep up the good work !!
Today’s bank economists are essentially public relations spokespeople who communicate the Corner Office’s messages.
The last “real” bank economists were Jeff Rubin and David Rosenberg (although Merrill wasn’t a “bank” in the strictest term).
10.”buy near a good hospital” I would like to ask Warren Jestin about his thoughts of buying near a cemetary, hehehe.
Better buy close to a public toilet ;)
If you take all the economists in the world and line them up end to end, they’ll span the globe… but they still won’t agree.
See #3 vs #4 and #6 vs #7.
I wonder what #9 means. Secured debt is the problem?