CMHC is “walking a tight rope” on mortgage insurance: Hilliard MacBeth, Author of ‘When the Bubble Bursts: Surviving the Canadian Real Estate Crash’ 

Posted on by

“Hilliard MacBeth says the Canada Mortgage and Housing Corporation (CMHC) is becoming increasingly serious about sharing the risk of insuring mortgages, but the author and portfolio manager warns that asking lenders to put more skin in the game could be risky for Canada’s already vulnerable housing market.

“I’m sure the CMHC feels like they are walking a tightrope on this one,” said portfolio manager at Richardson GMP and author of When the Bubble Bursts: Surviving the Canadian Real Estate Crash in an interview with BNN.

“They would like to reduce the subsidy to the Canadian banking industry, but the problem is they have to be careful how they do it.”

Macbeth, who has been pounding the table about an impending correction in the Canadian housing market for years, says unwinding this uniquely Canadian arrangement would be an uphill battle, and could ultimately prove negative for a housing market the agency says is becoming increasingly vulnerable. The insurance backstop the CMHC provides is seen as an essential motivator for lenders to offer favourable financing to homebuyers.

“There is no other market in the world where the government, and therefore the taxpayer, takes the full hit on the first 25 percent of the losses. It’s an amazing situation,” said MacBeth, who called for Canada’s housing bubble to burst this past summer.

CMHC revealed the results of its latest stress test for the first time Tuesday, outlining the worst scare scenario for the housing market where prices plunge 30 percent after unemployment spikes by 5-percent, brought on by global economic deflation, a more profound oil shock, or an earthquake on the West Coast.

The fallout would be an eight-fold increase in insurance claims amounting to more than $13 billion over five years. The agency’s $7.5-billion profit would sink to a $2.8-billion loss.

CMHC president and chief executive officer Evan Siddall called the release of the stress test a “next step in our transparency” – openly acknowledging the disproportionate risk exposure he says the CMHC is saddled with.

“These losses are [to be] fully borne by us, with no losses taken by the banks and lenders that originated the loans,” said Siddall in a behind-closed doors speech to a Bay Street audience on Tuesday.

“Insurers would not design a situation this way, if done from the start. Good insurance practice includes skin in the game by the insured to align behavior and incentives and avoid moral hazard. As I said, we are exploring ways to share these risks (and profits and losses) more equitably in the financial system.”

The Crown Corporation insured 175,169 new home loans last year worth $41.7-billion, that’s roughly 54 percent of the market. That number has fallen to about 50 percent in 2015, according to the agency.

“Without that CMHC subsidy, the banks might find it impossible to offer the amount of financing and mortgages that they do now. That could really hurt the housing market,” said MacBeth.

Source: CMHC is “walking a tight rope” on mortgage insurance: Author – BNN News

Scientists Invent Liquid with Permanent Porosity | Chemistry, Physical Chemistry | Sci-News.com

Posted on by

A team of chemists, physicists and material scientists has invented a porous liquid and found that it can dissolve large amounts of gas.

“Materials which contain permanent holes, or pores, are technologically important. They are used for manufacturing a range of products from plastic bottles to petrol. However, until recently, these porous materials have been solids,” said Prof. Stuart James of Queen’s University Belfast, co-author of a paper published this week in the journal Nature.

The new liquid dissolves unusually large amounts of gas, such as methane, the main component of natural gas, which is absorbed into the ‘holes’ in the liquid.

“This invention is a proof of concept and much work is needed to compete with porous solids. But it is an exciting direction, and liquids have a major advantage in that they can flow,” said co-author Prof. Andrew Cooper, from the University of Liverpool.

“Industrial chemical plants are often designed to use liquids and gases, rather than solids, because they can be moved around through pipes. But nature abhors a vacuum, and it proved very challenging to make a liquid with holes in it.”

The scientists have prepared a ‘porous liquid’ by taking rigid organic cage molecules, each of which defines a molecular pore space, and dissolving them at high concentration in a solvent that is too large to enter the pores.

“What we have done is to design a special liquid from the bottom-up. We designed the shapes of the molecules which make up the liquid so that the liquid could not fill up all the space,” Prof. James explained.

“Because of the empty holes we then had in the liquid, we found that it was able to dissolve unusually large amounts of gas.”

“These first experiments are what is needed to understand this new type of material, and the results point to interesting long-term applications which rely on dissolution of gases,” Prof. James said.

“We have managed to demonstrate a very new principle – that by creating holes in liquids we can dramatically increase the amount of gas they can dissolve. These remarkable properties suggest interesting applications in the long term.”

Source: Scientists Invent Liquid with Permanent Porosity | Chemistry, Physical Chemistry | Sci-News.com

Message of love from the sea

Posted on by

AUSTRALIA-When Tom Tilney went for a regular morning stroll along Moore Park Beach, he found something out of the ordinary washed up on the shore that brought tears to his eyes.

The Moore Park local said he was walking his dog yesterday morning when he came across a wooden toy boat decorated with a flower and a small note wedged inside.

“It had been washed up and was sitting at the high tide mark,” he said.

“I dried off the note and when I read the story I was really touched but what it said.”

 

The note reads:

Dear Poppy,

Happy Birthday.

I hope u have the best birthday of your life.

Hope u get a chance to make a wish of your choice to come true.

Me and Charlie can’t wait for you too come home from fishing. We all miss you so much and love you so much too you and back.

My heart misses you so much. Today made me sad.

The first November with out u and thinking of that makes me sad.

Roses are Red

Violets are blue

and I know I miss u

Love from your Angel Charlie and Deago

P.S Please come back soon

xoxo

*The note has been copied as it was written.

 

Mr Tilney said it was the relationship he had with his own grandchild that really struck a chord with him when he read the letter.

“My granddaughter calls me poppy so that really hit a soft spot,” he said.

“I thought, that is love. That’s two kids who really want their poppy back, they want him to come home.”

“I am not a sook but that definitely brought tears to my eyes.”

Mr Tilney said he had kept the boat and letter safe in case the children wanted their items back.

The NewsMail can be contacted for further details on 4153 8572.

Source: Message of love from the sea | News Mail

NHL MORNING SKATE – NOV. 12, 2015

Posted on by

 

b204eb21-be47-4cd6-9b8d-373cc10746b3

 

NHL MORNING SKATE – NOV. 12, 2015

Welcome to the “NHL Morning Skate,” a daily collection of the latest news and notes from around the League.

WEDNESDAY’S RESULTS
Home Team in Caps
PITTSBURGH 4, Montreal 3 (SO)
Edmonton 4, ANAHEIM 3 (OT)

CROSBY, PENGUINS RALLY PAST CANADIENS

Sidney Crosby collected two assists – including the primary helper on Patric Hornqvist’s tying goal with 6:25 remaining in regulation – and scored the clinching goal in the shootout to lift the Penguins to their 10th victory in their past 12 games following a 0-3-0 start to the season.
* The Penguins, who faced a 3-2 deficit after 40 minutes, won when trailing after two periods for the first time since Jan. 5, 2014 at WPG, snapping a streak of 37 consecutive losses in that scenario. They also improved to 10-3-2 in their past 15 meetings with the Canadiens dating to the start of the 2011-12 season (MTL: 5-5-5).
* Crosby has posted 17-23—40 in 30 career games vs. MTL, including at least one point in 16 of 17 meetings in Pittsburgh (12-14—26). He also improved to 32-for-72 (44.4%) in his shootout career; his 32 shootout goals are tied for 10th in NHL history (w/ Joe Pavelski).
* Marc-Andre Fleury, who briefly left the game after taking a stick to the face, stopped 32 shots through overtime and both attempts he faced in the shootout to improve to 8-5-0 in 13 appearances this season (2.01 GAA, .931 SV%, 2 SO). All eight of those victories have come in his past 10 outings (1.79 GAA, .937 SV%, 2 SO).

STARTING QUICKLY

Penguins forward Pascal Dupuis, who missed the past two games for precautionary reasons, scored 13 seconds after the opening face-off to spot the team an early lead.
* Dupuis notched the second-fastest goal to begin a game this season – Wild forward Jason Zucker scored 10 seconds after the opening face-off on Oct. 25 at WPG.
* Dupuis’ goal was seven seconds shy of the fastest goal to start a game in Penguins history, scored by Jean Pronovost on March 25, 1976 at STL (0:06).
* The fastest goal from the start of a game in NHL history is five seconds, achieved four times:

Fastest Goal From Start of a Game, NHL History
0:05 – Merlyn Phillips, Mtl. M., Dec. 29, 1926 at CHI
0:05 – Doug Smail, WIN, Dec. 20, 1981 vs. STL
0:05 – Bryan Trottier, NYI, March 22, 1984 at BOS
0:05 – Alexander Mogilny, BUF, Dec. 21, 1991 at TOR
* Via Elias, there have been 57 goals scored in the opening minute of any period this season (229 GP) – 11 in the first period, 24 in the second period, 15 in the third period and seven in overtime.

DRAISAITL, PURCELL POWER OILERS OVER DUCKS

Leon Draisaitl registered 1-2—3 and Teddy Purcell scored at 1:16 of overtime to lift the Oilers to their first win at Honda Center since April 1, 2012, halting a six-game skid at ANA (0-6-0).
* The Oilers overcame three separate one-goal deficits to force overtime (1-0, 2-1 and 3-2), including two such margins in the third period.
* Draisaitl, the third overall selection in the 2014 NHL Draft, has posted 4-6—10 (and four multi-point performances) in six games since being recalled from the Bakersfield Condors (AHL) on Oct. 29. He had 2-7—9 (and one multi-point game) in his first 37 NHL appearances.
* Purcell collected his 13th career game-winning goal and third in overtime (both firsts w/ EDM). His other two overtime goals, both with the Lightning: April 7, 2012 at WPG (3-0—3) and Nov. 9, 2013 at DET.

MILESTONES & BENCHMARKS

* Ducks forward Corey Perry (2-0—2) scored his 299th and 300th NHL goals (all w/ ANA) to tie Paul Kariya for second place in franchise history, behind only Teemu Selanne (457). Perry, the 28th overall pick in the 2003 NHL Draft, also became the third member of his draft class to reach the 300-goal milestone. The others: Eric Staal (316) and Thomas Vanek (304).
* Ducks forward Shawn Horcoff (1-0—1), a fourth-round selection (99th overall) by the Oilers in the 1998 NHL Draft, registered his 500th NHL point while facing his former team (182-318—500 in 964 GP). Horcoff compiled 162-285—447 with Edmonton from 2000-13 (796 GP).

TEAM EUROPE ADDS STAFF FOR 2016 WORLD CUP OF HOCKEY

The NHL and NHLPA announced the appointment of Team Europe’s scouting staff for the 2016 World Cup of Hockey: Peter Bondra, Sean Burke, Lorne Henning, Vaclav Nedomansky and Ricky Olczyk. They also announced the appointment of Paul Maurice as an assistant coach on Team Europe.
Click here for more information.

LOOSE PUCKS

The Ducks extended their point streak to six games (4-0-2) after starting the season 1-7-2 . . . Canadiens goaltender Mike Condon (31 SV) has earned at least one point in each of his first eight NHL appearances (6-0-2, 1.73 GAA, .936 SV%) . . . Canadiens defenseman P.K. Subban (0-2—2) registered his 14th and 15th assists of the season to move into first place in the NHL, one ahead of Stars forward Tyler Seguin (14) . . . ICYMI: Rangers goaltender Henrik Lundqvist stopped pumpkin pies as part of a guest appearance on The Tonight Show Starring Jimmy Fallon . . . Various NHL teams donned special apparel in honor of Veterans Day in the U.S. and Remembrance Day in Canada . . . The TALON HAZMAT Robot, accompanied by the 9th Civil Support Team, dropped the ceremonial opening puck prior to the Oilers-Ducks game.

ANAHEIM, CA - NOVEMBER 11: The 9th Civil Support Team stands by as the TALON HAZMAT Robot drops the puck to start the game between the Anaheim Ducks and the Edmonton Oilers on November 11, 2015 at Honda Center in Anaheim, California. (Photo by Debora Robinson/NHLI via Getty Images)

SNEAK PEEK AT THURSDAY’S ACTION

All Times Eastern
Colorado @ Boston, 7:00 p.m., ALT, NESN
St. Louis @ NY Rangers, 7:00 p.m., FS-MW, MSG
Washington @ Philadelphia, 7:00 p.m., CSN-DC, CSN-PH
Minnesota @ Carolina, 7:00 p.m., FS-N, FS-WI, FS-CR
Vancouver @ Ottawa, 7:30 p.m., SNV, TSN5, RDS
Calgary @ Tampa Bay, 7:30 p.m., SNF, SUN
Buffalo @ Florida, 7:30 p.m., MSG-B, BELL TV, FS-F
Toronto @ Nashville, 8:00 p.m., TSN4, FS-TN
New Jersey @ Chicago, 8:30 p.m., MSG+, CSN-CH
Winnipeg @ Dallas, 8:30 p.m., TSN3, FS-SW
Edmonton @ Arizona, 9:00 p.m., SNOL, FS-A
NY Islanders @ Los Angeles, 10:30 p.m., MSG, FS-W

RANGERS, BLUES LOOK TO CONTINUE RECORD-SETTING STARTS

The Rangers and Blues – two teams that have equaled their best 15-game starts to a season in franchise history – look to improve upon their record-setting runs when they face off at Madison Square Garden. At 11-2-2 (24 points), the Rangers have matched their best 15-game start to a season – in terms of wins and points – in the franchise’s 89-year history (also 1990-91: 11-4-0 and 1971-72: 10-1-4). At 11-3-1 (23 points), the Blues have equaled their best 15-game start to a season – in terms of wins – in the franchise’s 48-year history (4x, most recently 2013-14: 11-2-2).

Both clubs are coming off shutout victories on Tuesday: Henrik Lundqvist made 33 saves to lead the Rangers to a 3-0 win vs. CAR, while Jake Allen stopped all 24 shots he faced to guide the Blues to a 2-0 triumph at NJD. The Rangers also are on a 10-game point streak (8-0-2), including six consecutive victories, while the Blues have won six of their last seven outings.

This marks the first of two meetings between these teams in 2015-16 and their lone contest at Madison Square Garden. Last season, Vladimir Tarasenko scored a highlight-reel goal, picked up an assist on the tying marker with 5:27 remaining in regulation and then potted the decisive tally in the shootout to lead the Blues to a 4-3 victory on Nov. 3 at NYR. Overall, St. Louis is 8-0-1 in its past nine visits to Madison Square Garden dating to Oct. 12, 1998 (NYR: 1-7-1).

Follow us @NHL and @PR_NHL | Like us on Facebook | Follow us on Instagram