Bombardier Inc. T.BBD.A

Bank of Canda raises 1/4 point

[clubhouse19]

More seems to be expected.

Not so good for the CDn Economy

[flamingogold]

They raised because the economy is still running too hot. A slow down is desired and needed in fact. Home prices up. Food prices up. Wages up. This is not sustainable long term. We need to get back to 2% inflation. 

[clubhouse19]

There is going to be lots of pain to get back to 2 % as prices continue to rise and so are wages.  More and more moneys will be used to pay for rising mortgage payments leaving less and less for everything else.    China is doing much worse than expected as there exports fell more than their imports and their trade surplus declined considerably.   If it wasn't for Europe

[flamingogold]

"Pain" is exactly what Powell warned about (and our economy normally follows the US). The pain is only just now reaching the heavily indebted. If it wasn't for Freeland secretly allowing banks to extend amortizations for those under water on their mortgage payments to 40 years, even some to 80 years,, the housing market would have collapsed here.

[1ProStar]

https://www.cbc.ca/news/business/bank-of-canada-rate-decision-1.6868206 Sadly the Feds to be blamed as the Bank of Canada creates definitively the inflation. 

[Truthifest]

So, what do u guys think are the implications for BBD, if any? 

[1ProStar]

The shareholders and investors also the traders are apparently madly in rage and unhappy as the Bombardier heavy loans will cost way much more in interest expenses thereby leading heavy turmoil and bankers and financial analysts are expecting another despicable raise at the next B of C meeting in July.

[Micmar]

BBD loans are all at a fixed rate there is no relation with actual rates. They won't cost more.    

[flamingogold]

You don't know what you're talking about. BBD was proactive on their debt 2 years ago by paying down ther debt and now have a long runway before the next debt comes up. This is why S&P just gave the company a credit rating UPGRADE. BBD is not the average highly indebted consumer who is barely able to keep up wth the monthly payment on their newest iPhone.

[Mauserintime945]

Those who have been consuming excessively for some time. Today they will have an awakening that will hurt a lot. I remember in 1990 interest rates had risen to more than 14.45%. Yes, you read that right 14.25%.

[Shamhorish]

yes, and those days some mortgage rates were going for 18% i think if interest rate reach above 8-9% it will be catastrophic

[clubhouse19]

The boc average rate for 79-81 was 14.30 %   which was roughly 2 times higher than the average rate for the previous 10 years of 7.36 %   We are now 4.75% at 3 times or more higher than the previous average the last 10 years or so.   We may be worse off now than back then as I remember, salaries kept up easier then than they are now..at least in Canada.  Back then I was

[jx7000]

I remember very well that a married w/children co-worker was boasting back in circa 1988 that he got a mortgage for a fixed-rate of 14.75% interest when everyone else was paying 15%. Of course house prices were lower back then, but he still got help from family for the down payment so maybe that's why he got a break on the lower rate.  Today's B of Cda rate would've been

[johnney]

That's right!

[MyNameIsNobody]

'madly in rage", 'another despicable raise' ... this doesn't look very serious.  Where does this come from? (link?)

[Shamhorish]

imagibe at todays mortgage rate from scotia  a 400,000 condo at 5.74% with 20.00 down payment will cost 2,468/ month add to that munic + school tax 425-450$/month + condo fees of about 450$/ month + insurance + + 300/month  3668 a month for small 1 bdr condo add to that electricity, heating, cable tv, internet at least another 300-400$  so you will need at least 4000/ month to

[Noredneck]

shamhorish... at this cost it's MUCH better to move out of any big city (Montreal), find a real house not far from activities (skiing, lake, cycling...) do your work from home, have a MUCH better life, quit your job if you have too...  Anyone that live in a 1 bdr appartment with horrible condition on top of that and pay that kind of money deserve to have a rough life and should never