As PP says in a recent podcast; the Liberals will be borrowing $40 billion to carry their reckless deficit. But it’s worse, because they need to borrow $ 400 billion on the roll over of existing debt . They will be paying much higher rates for that and it causes inflation… a viscous circle.
When interest rates were effectively zero its easy to borrow, with zero rates I could carry a $1 billion loan... I was lucky, I have 2 properties and took out 5 year mortgages in 2020 and 2021 @2.39 and @1.94, so not too worried. Zero debt and collecting divs and interest. There are lots of people like me with assets invested in interest bearing securities, They have money to spend...especially with homes paid off, or smallish locked in mortgages... Might help the economy. My Big Concern is inflation, the easiest way for the feds to get rid of the loans are print money = Inflation, many provinces and cities are really starting to hurt..
ive been buying 1 year GIC's every month for 13 months now, the interest rate curve is slowly normalizing. An inverted curve is a bank killer. Im getting close to moving my monthly buys out to 18 and/or 24 months. For Canadians, EQbank is great for GIC's, great rates, great platform etc etc..
A tip for people with multiple bank accounts (I should have thought if it years ago)
Moving money around(Cdn$)
1. Sending money to a broker account I use bill payments, I have sent well over $10K in 1 transaction.
2. Sending money to my regular bank accounts, I have 3 different accounts and use Interac, I set the default for each of my 3 emails to 3 different accounts direct deposit(EG I have a yahoo, Gmail and Apple email) Usually the daily max is $3K, but I had mine raised to $5k.
I have had smaller sums of money go though in under 3 seconds. (Easy Peasy)
Another way to do efficient banking, when I want to change Cdn$ to US$ or back for larger sums I use my brokerage account. Ill use an example of a company mentioned here, BTE.
Today I wanted some US$, I hold BTE shares which I bought on Toronto, I sold them on NY today. Instead of paying 1-3% for exchanging money it costs 2 commissions a buy and sell. I have been doing this for over 10 years and works like a charm, usually I use a large, liquid, inter listed company like Royal Bank etc..
As PP says in a recent podcast; the Liberals will be borrowing $40 billion to carry their reckless deficit. But it’s worse, because they need to borrow $ 400 billion on the roll over of existing debt . They will be paying much higher rates for that and it causes inflation… a viscous circle.
When interest rates were effectively zero its easy to borrow, with zero rates I could carry a $1 billion loan... I was lucky, I have 2 properties and took out 5 year mortgages in 2020 and 2021 @2.39 and @1.94, so not too worried. Zero debt and collecting divs and interest. There are lots of people like me with assets invested in interest bearing securities, They have money to spend...especially with homes paid off, or smallish locked in mortgages... Might help the economy. My Big Concern is inflation, the easiest way for the feds to get rid of the loans are print money = Inflation, many provinces and cities are really starting to hurt..
ive been buying 1 year GIC's every month for 13 months now, the interest rate curve is slowly normalizing. An inverted curve is a bank killer. Im getting close to moving my monthly buys out to 18 and/or 24 months. For Canadians, EQbank is great for GIC's, great rates, great platform etc etc..
A tip for people with multiple bank accounts (I should have thought if it years ago)
Moving money around(Cdn$)
1. Sending money to a broker account I use bill payments, I have sent well over $10K in 1 transaction.
2. Sending money to my regular bank accounts, I have 3 different accounts and use Interac, I set the default for each of my 3 emails to 3 different accounts direct deposit(EG I have a yahoo, Gmail and Apple email) Usually the daily max is $3K, but I had mine raised to $5k.
I have had smaller sums of money go though in under 3 seconds. (Easy Peasy)
Another way to do efficient banking, when I want to change Cdn$ to US$ or back for larger sums I use my brokerage account. Ill use an example of a company mentioned here, BTE.
Today I wanted some US$, I hold BTE shares which I bought on Toronto, I sold them on NY today. Instead of paying 1-3% for exchanging money it costs 2 commissions a buy and sell. I have been doing this for over 10 years and works like a charm, usually I use a large, liquid, inter listed company like Royal Bank etc..