What could possibly go wrong? The Toronto-based [Healthcare of Ontario Pension Plan (HOOPP)]is said to have given the struggling Canadian mortgage lender the loan to shore up liquidity as it faces a run on deposits amid a probe by the provincial securities regulator…
No worries ! If things go south they just convert deposits and the debt they owe into common stock . Problem solved ! Yes , really !
If you live in Ontario, Run!
“HOOPP President and Chief Executive Officer Jim Keohane sits on Home Capital’s board and is a shareholder of the mortgage lender. ”
Where is a nurse with a syringe…..or a pitchfork ?
These ARE the same health care workers who are heavily and militantly unionized, electing socialist and progressive governments for the past few election cycles? The ones who have no financial problems while making a very good living and have one of the best post-work benefits packages in the world?
When this collapses, there will be some gallows erected in the streets…
…or maybe not.
Wynne has their back, the taxpayers will share in their pain, all things being equal as they are in their progressive minds.
Ontario healthcare workers have defined benefit pensions … HOOPP pensions are guaranteed … nothing will happen to the retirees because this is only $2 billion in a pension plan that has performed well … but the infusion of cash will not save Home Capital Group which has been reduced to junk bond status … wait until HCG investors have pulled their deposits and people start defaulting on their mortgages … this is the tip of the iceberg … Marc Cohodes called this a couple of years ago …
“and as everyone knows, in Canada home prices never go down.”
I’ll buy a “yet”.
I believe HOOPP is big league into commercial real estate.
House prices in the GTA have skyrocketed over the past few months. It is really insane – even ridiculous commute-time cities and towns have seen big jumps in price. Yet people are still trying to get a piece of the action by paying exorbitant prices and thus taking on barely affordable mortgage payments. I think this bubble is about to burst and the poor folks that bought in at the high are going to be stung badly. It reminds me very much of Alberta in the late ’70’s and very early ’80’s.
Our wagon is hooked up to American horses. When their economy takes off (and it looks like it will) they will raise interest rates which Canada’s banks will follow. That’s when mortgage rates will rise and the bubble in Toronto and Vancouver will burst. Stock up on popcorn because the entertainment will last a while.
Taking a page from you guys, now it’s time to juxtapose!
April 24, 2016 – Why Home Capital Group inc is the stock of the year.
http://www.fool.ca/2017/04/24/why-home-capital-group-inc-is-the-stock-of-the-year/
April 26, 2017
Home Capital shares plunge after mortgage lender seeks 2 billion credit line.
http://business.financialpost.com/news/fp-street/home-capital-shares-plunge-after-mortgage-lender-seeks-2-billion-credit-line-as-deposits-decline
When its all over and done with HOOOPP will not suffer any pain, Wynne and her cabinet will make sure that the Ontario taxpayer picks up the tab.What a joke this idiot woman is as a premier, she has surrounded herself with people that know even less than she does about economics. Hell I have seen better cabinets at IKEA.
I was saying that yesterday. If they want to cool the housing market increase interest rates. I have had mortgages ranging from 8.25% to almost 15%. The problem that has been created by extremely low interest rates is the entire economy will collapse with a big jump.
@Frolix:
Fake news on your part.. The Motely Fool article was actually written after the Capital stock dive, not last year as you stated. The Fool is saying now is the time to buy when it is low.