wisdom

One should not look at the incident in isolation. PLA started building up troops in the Galwan valley after 40 odd years and this happened. Coincidence? This is most likely a plan by CPC to distract its population and create support for the CPC amongst all the economic hardship. The same is being experienced by countries from Taiwan, Vietnam to India. The only difference was that Indians responded unlike the smaller countries. The deal on HK has been thrown out. In diplomatic circles you see the wolf warrior policy in play - from Canada to Australia. This is all part of the larger plan for China to dominate the region and show it's power. CPC feels the time has come to take its position in the world and have things happen their way. The question to consider is whether they have calculated correctly or will the world respond if they upset enough countries. That will define what the next few decades look like.

+!

They like debt with warrants. You can play both sides that way.

bump - how are these doing in this market?

https://www.business-standard.com/article/companies/fairfax-financial-holdings-sells-5-in-icici-lombard-for-rs-2-562-crore-119092700048_1.html $500 mil

https://www.thomascook.in/press-release/statement-from-mr.-madhavan-menon-chairman-managing-director-of-thomas-cook-india-ltd./109 This may be a reason. Thomas cook plc going into bankruptcy. Another Indian company king & Cox is also struggling in the travel industry.

Not all the demand is real in a bubble. Once the demand corrects there will be plenty of supply. Those who thought they needed to own 5 homes will add to the supply when prices drop and the asset has negative cashflow. Just a matter of time.

In Vancouver, property taxes are subsidized for houses valued at $1.65 mil or under because the median household earns $70,000 (the lowest amongst major Canadian cities) and cannot afford to pay taxes having made interest only payments on their home equity line of credit. The average house in this city peaked at $1.8 mil and condos are around $650k. When prime was at 2.7%, it only cost $2,700 a month ($32,000 annually) in interest only payments on a $1 million mortgage to own. Which was around the same as rent. Even long time holders have large mortgages now as the bubble made them believe and they now own fancy cars, furniture, bought a revenue property or 10, helped their kids with down payments because they could not afford to buy. Looking around at the activity in the market this week - Vancouver is toast if it does not change soon. Hasn't been like this in years. R.I.P. PS. If the housing bubble goes, Canada will be in a recession.

https://www.bnn.ca/do-the-right-thing-laurentian-bank-s-ceo-urges-honesty-on-mortgage-applications-1.936257 First Home capital and now Laurentian uncovers misrepresentation on mortgage applications. Lying on mortgage application is systemic in Canada.

But this is Vancouver we are talking about. It is so special that the natural beauty and warmer winters make your mortgage payments. One does not require income/cashflow. All one needs to do is borrow more and you make money. Others will never understand. And yes, we are running out of land up here in Canada - population 36 mil and the 2nd largest country. No other city/country has such density.

http://www.cbc.ca/news/business/osfi-mortgage-rules-1.4358048 Mortgage rules tightening further - would be interesting to see how this impacts an already slowing market.

If I recall correctly the past peaks have been at 7%. US might have peaked at 5% in 2008. Canada is over 7%. Is it 8% or 12%? Doesn't really matter.

Vancouver is struggling - SFD sales are tough and often have no bids. But condos in Vancouver are still selling for the moment but the clock is ticking on them as well. Not sure what the bulls are referring to.

http://www.cbc.ca/news/canada/british-columbia/buyer-who-walked-away-from-real-estate-deal-ordered-to-pay-360k-1.4232844 buyer-who-walked-away-from-real-estate-deal-ordered-to-pay-360k Interesting precedent.

Piramal - https://en.wikipedia.org/wiki/Piramal_Group In particular, he was referring to Ajay Piramal - https://en.wikipedia.org/wiki/Ajay_Piramal