Inflation - Too much (or too cheap) money chasing finite quantity of goods

A) Liberty Mutual's Kelly Says Inflation May Rise to 9%  by Devaluing Currency
From Bloomberg Feb 17/2011


B) House prices to match inflation: CMHC
from BNN Feb 17/011

So ..... if we see 9% annual inflation in a few years ..... House prices will ?follow?  or ?not follow?

In late 70's we had 5-10% inflation, but prices were flat (after a doubling in 1972-1974)
Interest was 12% on first mortgages.

In early nineties we had 1-5% inflation (falling rates of annual change) and prices fell 25% from 1990-1996 (after running up from 1985 to 1989) -
Interest on first mortgages was 7-10%.

Where are we now?

today to treb etc

Robert Ede

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Organized Real Estate and the TSX LSE 'merger'

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Robert Ede Thu, Feb 17, 2011 at 8:05 AM
To: Von Palmer , trebpres , Jim Flood -OREA- , info@crea.ca, "Klump, Gregory"
Bcc: rGmailrobertede Ede
Von,
cc Bill et al,

A well-informed friend of mine changed my opinion on the "benefit" to Toronto of this merger last night when I popped in with some Home Show tickets.

My new opinion is that the Deal is bad for Bay St - tremendous loss in direct employment, collateral service jobs/industries resulting in loss of huge customer/client segment for real estate.

Take away the Big Brokers and their ancillary staff (thousands upon thousands of big$$ jobs) and who's buying the 5 star condos? and snapping up the pre-sales at $4-500/sqft? who's buying the Forest Hill/North Toronto reno'd mansions? who's buying King/Caledon? muskoka/Haliburton?

We might take this as the first step passed just "reportage of facts" into "advocacy/interpretation" with a thoughtful, co-ordinated public policy commentary on this Core-TO, GTA, Ontario & Canadian issue

Heck, theTD, BMO, Scotia etc all have their own commentators on real estate (to assure their current investors and subtly dissuade same from pulling money out of the Bank/Brokers hands and into real property)


1) Newcomer Thomas Cloet is compensated by "deal making" -maximizing value for the parent company- this benefits him personally (shades of Wall Street, compensation-driven "deals" resulting in GFC)

2) The other tout-on-TV Caldwell, is not making money with his own stock packages & products - but will make money on this too (I forget my friend's exact explanation on this)

Friend feels merger will hollow-out Bay St - all the top guys/gals will head to headoffice in London
Hotels, restaurants, consultants, caterers, service-to brokerages industries etc here will be left with no big-important customers

Says TSX is world's best at mining ventures- exploration, financing, taking stock to market. Canada has no manufacturing, all the IT went with Nortel (anything good is on Nasdaq) and the TSX is the trading centre for Canada's specialty -mining.
To lose it to London ... will mean Bay St has nothing(much less) to do ....big deals will be in London (Hemlo, Voisey's, Barrick ...) + BreX of course too

Friend say the TSX outsmarted themselves with high fees - the Big Cdn banks have apparently created an "alternative trading system" Aphla Group that they use to trade (invisibly) between themselves - to avoid the TSX's trading fees.

TSX has lost all that volume .... could recover it by reducing tSX exchange fees

Says all the TSX reports are too expensive too - data that costs $1 exchange fee from NYSE costs $12 ftom Toronto

TSX has no competition ... so it got fat and lazy on the Bank's trading .... then the banks pulled out ... the fees dropped

Now 'deal maker' Kloet is feathering his own nest .... maybe he wants to retire with one last score ... then he doesn't care anymore


Robert Ede,
Sales Representative,
RE/MAX Hallmark Realty Ltd.,
Brokerage
T. 416.494.7653
F.416.494.0016
Direct 416.819.7333

Anticipate Currency Devaluation & Resultant Inflation
- Buy Tangible Assets -- -- Consider asset classes that provide present & future functional utility i.e. a place to live and/or income; price appreciation; & built-in debt retirement.


Realty Listing WebSite: www.robertede.com
Realty Questions and Answers: Nobody ever Explained it like that!



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