Long term repercussions from Covid-19 what will they be?

[Acajack]

Originally Posted by kwoldtimer

I've wondered about that - won't many of the major events/festivals find that time will be too short to reorganize for later in the year? Or, if they do so, perhaps on a much smaller scale?

Depending on the nature of the event, a large portion of the organization is already completed at this stage, no?

[Corndogger]

Originally Posted by kwoldtimer

I've wondered about that - won't many of the major events/festivals find that time will be too short to reorganize for later in the year? Or, if they do so, perhaps on a much smaller scale?

Unless this clears up very soon Calgary is going to get a huge kick in the nuts if the Stampede gets cancelled. The City has already cancelled all events, parades, etc. until the end of June and the Stampede officially starts the first Friday of July.

[LakeLocker]

Originally Posted by Corndogger

Unless this clears up very soon Calgary is going to get a huge kick in the nuts if the Stampede gets cancelled. The City has already cancelled all events, parades, etc. until the end of June and the Stampede officially starts the first Friday of July.

No construction, no immigration, no automotive sales, no retail, resturants, and now no stampede.


Celebrate the year of Gutenberg!!!!!

[Coldrsx]

https://www.foodandwine.com/fwpro/restaurants-are-the-keystone-species-of-the-american-ecosystem

[kwoldtimer]

I guess it's too soon for thinking to evolve beyond "disaster if we don't go back to our pre-covid status" to "those days may gone, how might we adapt". Not that the latter excludes adapting to a disastrous situation, but still ...

[Corndogger]

I won't be surprised if this happens in Canada very soon.

JPMorgan Chase to raise mortgage borrowing standards as economic outlook darkens

Published Sat, Apr 11 20206:27 PM EDT
Reuters

Key Points

• From Tuesday, customers applying for a new mortgage will need a credit score of at least 700, and will be required to make a down payment equal to 20% of the home’s value.
• The change highlights how banks are quickly shifting gears to respond to the darkening U.S. economic outlook and stress in the housing market

...

Source: https://www.cnbc.com/2020/04/11/jpmorgan...andards-as-economic-outlook-darkens.html

[misher]

Originally Posted by Corndogger

I won't be surprised if this happens in Canada very soon.

JPMorgan Chase to raise mortgage borrowing standards as economic outlook darkens

Published Sat, Apr 11 20206:27 PM EDT
Reuters

Key Points

• From Tuesday, customers applying for a new mortgage will need a credit score of at least 700, and will be required to make a down payment equal to 20% of the home’s value.
• The change highlights how banks are quickly shifting gears to respond to the darkening U.S. economic outlook and stress in the housing market

...

Source: https://www.cnbc.com/2020/04/11/jpmorgan...andards-as-economic-outlook-darkens.html

Canada already has higher standards I believe. Just like we have higher insurance premiums and lease rates. More competition in the US due to a 10x bigger market pushes rates lower.

[theman23]

^Uh, you don’t need 20 percent down to buy a house in Canada and plenty of people with credit scores less than 700 get mortgages.

[misher]

Originally Posted by theman23

^Uh, you don’t need 20 percent down to buy a house in Canada and plenty of people with credit scores less than 700 get mortgages.

Mercedes USA, finance at 0%

https://www.mbusa.com/en/special-offers

Canada is like 3-5%.

[theman23]

That genuinely made me laugh

Wow

[Rollerstud98]

Did he just compare car financing to home mortgage

[misher]

Originally Posted by Rollerstud98

Did he just compare car financing to home mortgage

Because its a great example of the differences between our nations. Americans have lower rates, easier credit, and more options. The average down payment for someone under 35 in the US is <8% and they have programs offering 0 down.

First-time buyers between July 2016 and June 2017 typically financed 95 percent of the purchase price, according to the Aspiring Home Buyers Profile data. These buyers made a down payment of just 5 percent. In 2016, the average down payment for all mortgages in the U.S. was 11 percent, and for borrowers younger than 35, less than 8 percent...

A number of lenders offer their own zero down payment mortgage products, notably credit unions. In most (but not all) cases, loans are only available to credit union members, so you would need to check membership eligibility requirements. Below are a few examples of credit unions, large and small, that offer zero down payment mortgages.

https://loans.usnews.com/mortgage-with-no-down-payment

[whatnext]

Originally Posted by Rollerstud98

Did he just compare car financing to home mortgage

Rather par for the course.

[ssiguy]

I think one of the biggest long-tem consequences will be end of the entire underlining of our financial system..........The US$ as the world's reserve currency.

The US debt was already over 105% of GDP before the crisis began and that doesn't include state & municiple debt. Now with the US economy plunging along with government revenues and massive stimulus {aka bailout} spending, the US debt levels is going to soar to astronomical levels that would make Italians shudder.

From whom are they getting this "money"? Well, absolutely no one, they're justing printing it out of thin air. All they are doing is cranking up the printing press from normal to heavy duty just like your washing machine. Ditto for Canada and the EU.

As the economies and stock markets crash in non-Western countries and their people suffer far greater damage to their economies than we will they will increasingly be demanding an end to the US$ reserve status. They will point to the US as a government that is just writing huge cheques to everyone to keep their economy afloat but somhow they can't do the same. Their people need the money more than Americans but they are going to get pounded simply because their printing machines use the wrong font & ink.

[GreaterMontréal]

Originally Posted by ssiguy

I think one of the biggest long-tem consequences will be end of the entire underlining of our financial system..........The US$ as the world's reserve currency.

The US debt was already over 105% of GDP before the crisis began and that doesn't include state & municiple debt. Now with the US economy plunging along with government revenues and massive stimulus {aka bailout} spending, the US debt levels is going to soar to astronomical levels that would make Italians shudder.

From whom are they getting this "money"? Well, absolutely no one, they're justing printing it out of thin air. All they are doing is cranking up the printing press from normal to heavy duty just like your washing machine. Ditto for Canada and the EU.

As the economies and stock markets crash in non-Western countries and their people suffer far greater damage to their economies than we will they will increasingly be demanding an end to the US$ reserve status. They will point to the US as a government that is just writing huge cheques to everyone to keep their economy afloat but somhow they can't do the same. Their people need the money more than Americans but they are going to get pounded simply because their printing machines use the wrong font & ink.

MMT now in effect. Instead of raising interest rates (0%) to fight inflation, you raise taxes. What Canada is doing is exactly that. ''job guarantee'' $2,000/month or $12.5/h full time. In MMT, there is no unemployment, when you lose your job in the private sector, you don't go on EI, you enter the JG workforce.

[mcminsen]

From the Vancouver Sun...




===============

COVID-19: City of Vancouver at risk of bankruptcy, says mayor
Author of the article: David Carrigg



Vancouver Mayor Kennedy Stewart says the city is at risk of insolvency. FRANCIS GEORGIAN / PNG
source: https://vancouversun.com/news/covid-19-c...cm/8fd95f9e-2cd0-4d67-b83d-c19ee6fe284d/



The City of Vancouver is at risk of going bankrupt, says the mayor, citing a recent poll showing more than half of property owners are not expecting to pay full property taxes this year as COVID-19 financial woes take hold.

…“If 25 per cent of homeowners do end up defaulting on their property taxes, we could shed up to an additional $325 million in revenues,” Stewart said. “Losing more than half-a-billion dollars in operating funds in 2020 would devastate the city’s financial position, forcing us to liquify assets and exhaust every reserve fund we have — just to avoid insolvency.”

Property taxes make up the bulk of the city’s revenues at $874 million in 2019.

…The poll also found that 68 per cent of Vancouver home owners did not pay their full mortgage on April 1, and that 55 per cent were not expecting to make their full mortgage payment on May 1.

…The Research Co. survey also found Vancouver renters were being hit hard, with 30 per cent not able to make their full April rents and 63 per cent not expecting to make full rent in May.

…The survey found that 46 percent of those living in the city had either lost their jobs or experienced a reduction in hours. This has led to half of all households reporting an overall decrease in income, with 24 percent experiencing a significant decrease.

[casper]

Originally Posted by mcminsen

From the Vancouver Sun...




===============

COVID-19: City of Vancouver at risk of bankruptcy, says mayor
Author of the article: David Carrigg

Vancouver Mayor Kennedy Stewart says the city is at risk of insolvency. FRANCIS GEORGIAN / PNG
source: https://vancouversun.com/news/covid-19-c...cm/8fd95f9e-2cd0-4d67-b83d-c19ee6fe284d/



The City of Vancouver is at risk of going bankrupt, says the mayor, citing a recent poll showing more than half of property owners are not expecting to pay full property taxes this year as COVID-19 financial woes take hold.

…“If 25 per cent of homeowners do end up defaulting on their property taxes, we could shed up to an additional $325 million in revenues,” Stewart said. “Losing more than half-a-billion dollars in operating funds in 2020 would devastate the city’s financial position, forcing us to liquify assets and exhaust every reserve fund we have — just to avoid insolvency.”

Property taxes make up the bulk of the city’s revenues at $874 million in 2019.

…The poll also found that 68 per cent of Vancouver home owners did not pay their full mortgage on April 1, and that 55 per cent were not expecting to make their full mortgage payment on May 1.

…The Research Co. survey also found Vancouver renters were being hit hard, with 30 per cent not able to make their full April rents and 63 per cent not expecting to make full rent in May.

…The survey found that 46 percent of those living in the city had either lost their jobs or experienced a reduction in hours. This has led to half of all households reporting an overall decrease in income, with 24 percent experiencing a significant decrease.

I don't think we are going to see many people default. The banks are basically being extended zero interest money from the government and pushed to find a workable solution. The last thing they want is to take possession of a property in the middle of this that they have no hope of selling for months.

Looking longer term they may be the catalyst for a major shift in thinking.

The great depression caused a generation of people who were very frugal with money. They did not go out to dinner much, they saved money, they put a strong value of not having debt. Perhaps we are going back in that direction.

That does not sounds like a great outcome for retail or hospitality.

Working from home will slowly become more acceptable and common. After this over most will go back to the office but not all. That may have make homes in more rural and smaller counties more desirable.

[giallo]

Not even a month in to quarantine, and Vancouver is already talking about bankruptcy? It's incredible how delicate it all is.

If we aren't back to some semblance of normalcy by the summer, we're most definitely heading in to a depression.

[Innsertnamehere]

^luckily it’s looking like we will be. Even the US was talking about relaxing restrictions mid May yesterday, and they are obviously in much worse shape than us.

My bet is end of May we see the economy start to ramp up again and social distancing regulations start to be relaxed.

Though key word there is *start*. This won’t be over for a while, but the economy should start humming again and offices should be able to mostly re-open.

[kwoldtimer]

Originally Posted by mcminsen

From the Vancouver Sun...




===============

COVID-19: City of Vancouver at risk of bankruptcy, says mayor
Author of the article: David Carrigg



Vancouver Mayor Kennedy Stewart says the city is at risk of insolvency. FRANCIS GEORGIAN / PNG
source: https://vancouversun.com/news/covid-19-c...cm/8fd95f9e-2cd0-4d67-b83d-c19ee6fe284d/



The City of Vancouver is at risk of going bankrupt, says the mayor, citing a recent poll showing more than half of property owners are not expecting to pay full property taxes this year as COVID-19 financial woes take hold.

…“If 25 per cent of homeowners do end up defaulting on their property taxes, we could shed up to an additional $325 million in revenues,” Stewart said. “Losing more than half-a-billion dollars in operating funds in 2020 would devastate the city’s financial position, forcing us to liquify assets and exhaust every reserve fund we have — just to avoid insolvency.”

Property taxes make up the bulk of the city’s revenues at $874 million in 2019.

…The poll also found that 68 per cent of Vancouver home owners did not pay their full mortgage on April 1, and that 55 per cent were not expecting to make their full mortgage payment on May 1.

…The Research Co. survey also found Vancouver renters were being hit hard, with 30 per cent not able to make their full April rents and 63 per cent not expecting to make full rent in May.

…The survey found that 46 percent of those living in the city had either lost their jobs or experienced a reduction in hours. This has led to half of all households reporting an overall decrease in income, with 24 percent experiencing a significant decrease.

Not sure I see the problem - the Province, surely, will just lend the municipalities the shortfall, pending repayment of taxes in arrears.