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What Canada is doing right

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#16 vcfan

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Posted 17 May 2014 - 05:38

I might have moved there, but the long cold winters keep me away.

Vancouver winters are pretty mild. the only thing is, it rains all the time.




#17 Arpit

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Posted 17 May 2014 - 05:51

gotta say, comparing to US really doesn't mean much in terms of how 'great' canada is

 

yeah the banks didn't need bailing out but thousands of people still lost their jobs and companies have been slow to hire since.  the millennials are finding it harder than ever to find jobs, living costs are increasing beyond inflation but the salaries aren't.  healthcare is free but that comes at the cost of spending hours in the waiting room.  taxes are 13% in ontario and similar in all provinces except resource rich alberta.



#18 compl3x

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Posted 17 May 2014 - 05:54

American political ideologies seem to get pretty extreme: if you are critical of crappy business practices you are an anti-American traitor because business should be all powerful and almost revered for its contributions. If you support welfare programs which actually are useful and helpful you are a socialist wacko who is trying to bring down the system. All sense of compromise between the political parties seems to be non-existent. There are irrational fears about your leader and his motives (He's a Commie, secret Muslim, wasn't born in the U.S., racist advocate of blacks over white etc.).



#19 -Razorfold

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Posted 17 May 2014 - 06:21

Never have figured out why the government bailed the banks out? I mean, if you're a bank with a constant income like they have, how can you possibly go broke, and if you do, tough! About the same with the auto makers.

What about all the money that people have stored in banks?

The problem is the banks don't necessarily have all that money stored in a giant vault somewhere. Most of it is loaned out, it's essentially how mortgages, auto loans, etc etc etc all work. You really think the bank has $5-10 trillion (total mortgage debt in the US) sitting in their own bank account to loan out to customers? No it comes from money other people deposit into the bank.

Now imagine if all those banks failed, tons of people would have lost everything. Sure you can claim but but it's backed by the FDIC! Yeah...I highly doubt the FDIC has enough money to recover everything that was lost. Hell one of the main reasons so many banks failed was because of ###### ######ing policies put into place by both administrations in the 1990s. They basically forced the banks to give out mortgages to people who simply couldn't afford mortgages. Now these mortgages were packed into securities and balanced with less riskier loans so that, in theory, if one part of that security fails, it shouldn't take down everything with it. Now banks knew those loans were insanely risky and that they will be defaulted upon, so they repacked it again and sold it because well Fannie Mae would back up that security thus giving you some insurance on that ultra ###### loan. Eventually a ton of those ###### mortgages defaulted and there simply wasn't enough money to pay out.

If those loans were never made (thank you Bush Sr and Clinton) then the rest may not have happened.
 

All sense of compromise between the political parties seems to be non-existent.

Because that's what the US people have been wanting. The two party system was created to balance out extremist views. Instead now all it does is fuel extremist views. And people lap it up and vote for the same party every single time.

For a lot of people it doesn't matter how ####ing crap their political party is, they'll still vote for it every election. Then you have the people who never bother truly researching the candidate they're voting for and just trust their ###### biased news sites (be it Fox, CNN, MSNBC). And what do political parties do? They pander to those type of people for votes.

#20 trek

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Posted 17 May 2014 - 06:23

Vancouver winters are pretty mild. the only thing is, it rains all the time.

 

And has one of the most expensive housing markets in the country.



#21 +LogicalApex

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Posted 09 June 2014 - 20:28

Canada is far from perfect. Canada is due for a very painful housing market correction and it will likely happen when the US starts to return to normalcy and end its money easing programs that are also benefiting Canadians. I see this every time I visit Canada. The country has a population the size of California... Yet almost every other mile I drive past between Niagara Falls and Toronto is undergoing new home construction with homes costing over $500K each...

 

Watching an in-law buy a house in Canada I also learned how vastly different their market is to the US... Essentially, every mortgage in Canada is an ARM! ARM mortgages are largely credited with causing the US housing market to collapse as interest rates increases could lead to drastically higher mortgage payments. The long term fixed rate mortgages we are used to here in the US don't exist in the Canadian market. They are fixed only for a very short term, up to 10 years I believe.

 

I wouldn't look to Canada as a beacon of success until we see how painful their housing correction is.

 

The root of the issue is w/ our Fractional Reserve System. By law, the banks are only required to keep 10% of their money (your money) in the bank and are allowed to further lend the other 90%. More so, they're legally allowed to create more money out of nothing from that 90%. This runs rampant when banks are allowed to throw money around, becoming more and more leveraged. That is, they have way more money lent to people than they have in the bank. Suddenly, when you have, say $1bil in your vault (so to speak) but have $1tril in loans, the system cant support itself.

 

So, if you give your bank $1000, they are legally allowed to loan out $900 of that, and further print another $810 from nothing. From there, they are required to keep $81 of that, and can lend $729 of it. this goes on and on...

 

The fiat currency in our country needs to end. It's backed by absolutely nothing and the Fed is still printing $45bil of new money each month! this is down from the astounding $85bil they were printing last year, every month. On top of this, the Fractional Reserve System needs to end as well.

 

And yes, in a free market economy, we should have let all that crap fail. All of the auto industry, all of the banks. Unfortunately we dont have a free market economy anymore. Instead, we have a plutocracy w/ more and more government intervention. This led to the bailouts, then let the Fed run rampant with the worthless programs like QE1, 2, 3 and 4, ZIRP, Twist and TARP. These have done nothing to help our economy, we're still in a recession, and have only increased the Fed's balance sheet and led to accelerating inflation.

 

Just look at the Fed's balance sheet in this graph. It remains relatively stagnant until 2008 when it shoots up. It's over $4 trillion now!

You're asking for the ending of banking in all forms...

 

The sole purpose of banking is to move capital from areas of surplus to areas of need. In its most basic form this is accomplished with loans. To eliminate the secondary, and deeper, monetary supply would require the banning of all loans that aren't 100% capital backed. This would essentially kill lending and banking across the board...



#22 xpablo

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Posted 09 June 2014 - 21:09

.... every Canadian citizen has government-provided health insurance.....

 

 

Well as a Canadian Citizen, this is not exactly true and this is a common conception in the USA that government healthcare in Canada is Free!

 

You pay for healthcare with your income taxes, in British Columbia you have to PAY for MANDATORY healthcare separately as well as pay provincial Income taxes.

 

 

From: http://www.health.go...en/premium.html

 

In B.C., premiums are payable for MSP coverage and are based on family size and income.

Effective January 1, 2014, monthly rates are $69.25 for one person, $125.50 for a family of two and $138.50 for a family of three or more.

 

These rates are monthly.



#23 notchinese

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Posted 09 June 2014 - 21:20

The immigration comparison is completely ridiculous. Last I checked the only large country bordering Canada is the US.



#24 Bigkaye

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Posted 09 June 2014 - 21:29

Well as a Canadian Citizen, this is not exactly true and this is a common conception in the USA that government healthcare in Canada is Free!

 

You pay for healthcare with your income taxes, in British Columbia you have to PAY for MANDATORY healthcare separately as well as pay provincial Income taxes.

 

 

These rates are monthly.

 

Health insurance isn't healthcare. They are different. generally provincial medicare covers the average Canadian for most things, which is funded by taxes. Theres very few things the average Canadian has to pay for out of pocket regarding the actual process. Surgeries, operations, doctor visits, hospital stays, are all covered under the medicare. 

 

" In 2012, total health care spending in Canada is expected to reach $207 billion, averaging $5,948 per person." - http://en.wikipedia....anada#Economics

 

Each province operates differently to nab this deficit. The working class of BC apparently get shafted, but does that mandatory charge cover anything extra that someone without a job/couldn't pay in would get? Like prescriptions or semi-private rooms? Or do those people just not get any healthcare period?



#25 Lord Method Man

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Posted 09 June 2014 - 21:30

Well as a Canadian Citizen, this is not exactly true and this is a common conception in the USA that government healthcare in Canada is Free!

 

You pay for healthcare with your income taxes, in British Columbia you have to PAY for MANDATORY healthcare separately as well as pay provincial Income taxes.

 

 

These rates are monthly.

 

Damn that's almost quadruple what I pay for health coverage in the US currently.



#26 LUTZIFER

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Posted 09 June 2014 - 21:45

Canada does everything right. Nuff said.



#27 .Neo

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Posted 09 June 2014 - 22:17

Canada does everything right. Nuff said.

Well, you do have those terrible looking power lines and poles all over the place in populated areas. Yuk.  :x  We've done away with those decades ago.



#28 Matthew_Thepc

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Posted 10 June 2014 - 00:28

Well as a Canadian Citizen, this is not exactly true and this is a common conception in the USA that government healthcare in Canada is Free!

As an American who's always wondered about this, do Canadians/the rest of the world think America has free-market health care?



#29 -Razorfold

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Posted 10 June 2014 - 00:40

Watching an in-law buy a house in Canada I also learned how vastly different their market is to the US... Essentially, every mortgage in Canada is an ARM! ARM mortgages are largely credited with causing the US housing market to collapse as interest rates increases could lead to drastically higher mortgage payments. The long term fixed rate mortgages we are used to here in the US don't exist in the Canadian market. They are fixed only for a very short term, up to 10 years I believe.

I'd say that the shorter fixed term mortgages are actually a better thing than the 30 year ones we have here.

Most people lack the ability to do basic maths and just go "ooooh I can afford that $450k house for only $2500 a month with interest? DEAL!" And then they don't even realize that hey if you take 30 years to pay off your mortgage at a decent 5% rate, you're basically buying more than two houses for the price of one.

A 10 year one actually forces you to think whether or not you can really afford that house because the monthly payment is twice as much, but in the long run you save almost 400k:

$1,038,401.03 - Total of 360 Payments @ 5% interest
$629,003.78 - Total of 120 Payments @ 5% interest

Damn that's almost quadruple what I pay for health coverage in the US currently.

Are you being sarcastic lol?

#30 linsook

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Posted 10 June 2014 - 00:54

I'd say that the shorter fixed term mortgages are actually a better thing than the 30 year ones we have here.

Most people lack the ability to do basic maths and just go "ooooh I can afford that $450k house for only $2500 a month with interest? DEAL!" And then they don't even realize that hey if you take 30 years to pay off your mortgage at a decent 5% rate, you're basically buying more than two houses for the price of one.

A 10 year one actually forces you to think whether or not you can really afford that house because the monthly payment is twice as much, but in the long run you save almost 400k:

$1,038,401.03 - Total of 360 Payments @ 5% interest
$629,003.78 - Total of 120 Payments @ 5% interest

Are you being sarcastic lol?

 

amortization != term.

 

The typical Canadian will mortgage a house on a 25-30 year amortization period, the rate (variable or fixed) can be locked in, which is called a term. This is usually between 1 - 5 years but 10 year terms are offered, however at a higher interest rate.  Nothing wrong with ARM mortages, they allow people to be able to borrow money at an affordable rate, otherwise no average working person/family could afford to buy a house unless they can pay for 80% of the value of the property as the interest rate would be too high and too restrictive otherwise.

 

I just got a mortgage on a fixed 3 year term @ 2.69%, 30 year amortization.  The posted 10 year term fixed rate is 6.50%.  Do the math.  

 

A 10 year term or more is risky for all parties involved (mainly on the borrowers side), nobody can foresee rate changes/fluctuation, whether they go up or down 10 years from now.