Critical Alert: The Swine Flu Pandemic – Fact or Fiction?

April 29th, 2009

Critical Alert: The Swine Flu Pandemic – Fact or Fiction?

By Dr. Mercola

American health officials declared a public health emergency as cases of swine flu were confirmed in the U.S. Health officials across the world fear this could be the leading edge of a global pandemic emerging from Mexico, where seven people are confirmed dead as a result of the new virus.

On Monday April 27th, the World Health Organization (WHO) raised its pandemic alert level to four on its six-level threat scale,1 which means they’ve determined that the virus is capable of human-to-human transmission. The initial outbreaks across North America reveal an infection already traveling at higher velocity than did the last official pandemic strain, the 1968 Hong Kong flu.

swine fluThe number of fatalities, and suspected and confirmed cases across the world change depending on the source, so your best bet — if you want the latest numbers — is to use Google Maps’ Swine Flu Tracker.

Several nations have imposed travel bans, or made plans to quarantine air travelers2 that present symptoms of the swine flu, such as:

  • Fever of more than 100
  • Coughing
  • Runny nose and/or sore throat
  • Joint aches
  • Severe headache
  • Vomiting and/or diarrhea
  • Lethargy
  • Lack of appetite

Top global flu experts are trying to predict how dangerous the new swine flu strain will be, as it became clear that they had little information about Mexico’s outbreak. It is as yet unclear how many cases occurred in the month or so before the outbreak was detected. It’s also unknown whether the virus was mutating to be more lethal, or less.

Much Fear Mongering Being Promoted

I suspect you have likely been alarmed by the media’s coverage of the swine flu scare. It has a noticeable subplot – preparing you for draconian measures to combat a future pandemic as well as forcing you to accept the idea of mandatory vaccinations.

On April 27, Time magazine published an article which discusses how dozens died and hundreds were injured from vaccines as a result of the 1976 swine flu fiasco, when the Ford administration attempted to use the infection of soldiers at Fort Dix as a pretext for a mass vaccination of the entire country.

Despite acknowledging that the 1976 farce was an example of “how not to handle a flu outbreak”, the article still introduces the notion that officials “may soon have to consider whether to institute draconian measures to combat the disease”.

WHO and CDC Pandemic Preparedness Seriously Broken

The pandemic warning system has failed as it simply doesn’t exist, even in North America and Europe. To improve the system, massive new investments in surveillance, scientific and regulatory infrastructure, basic public health, and global access to common sense interventions like vitamin D optimization are required.

According to the Washington Post, the CDC did not learn about the outbreak until six days after Mexico had begun to impose emergency measures. There should be no excuses. The paradox of this swine flu panic is that, while totally unexpected, it was accurately predicted. Six years ago, Science dedicated a major story to evidence that “after years of stability, the North American swine flu virus has jumped onto an evolutionary fasttrack”.

However, maybe this is precisely what public health authorities desire.

This is NOT the First Swine Flu Panic

My guess is that you can expect to see a lot of panic over this issue in the near future.  But the key is to remain calm — this isn’t the first time the public has been warned about swine flu. The last time was in 1976, right before I entered medical school and I remember it very clearly. It resulted in the massive swine flu vaccine campaign.

Do you happen to recall the result of this massive campaign?

Within a few months, claims totaling $1.3 billion had been filed by victims who had suffered paralysis from the vaccine. The vaccine was also blamed for 25 deaths.

However, several hundred people developed crippling Guillain-Barré Syndrome after they were injected with the swine flu vaccine. Even healthy 20-year-olds ended up as paraplegics.

And the swine flu pandemic itself? It never materialized.

More People Died From the Swine Flu Vaccine than Swine Flu!

It is very difficult to forecast a pandemic, and a rash response can be extremely damaging.

As of Monday April 27, the worldwide total number of confirmed cases was 82, according to WHO, which included 40 cases in the U.S., confirmed by the Centers for Disease Control.  But does that truly warrant the feverish news headlines?

To put things into perspective, malaria kills 3,000 people EVERY DAY, and it’s considered “a health problem”…  But of course, there are no fancy vaccines for malaria that can rake in billions of dollars in a short amount of time.

One Australian news source,3 for example, states that even a mild swine flu epidemic could lead to the deaths of 1.4 million people and would reduce economic growth by nearly $5 trillion dollars.

Give me a break, if this doesn’t sound like the outlandish cries of the pandemic bird-flu I don’t know what does. Do you remember when President Bush said two million Americans would die as a result of the bird flu?

In 2005, in 2006, 2007, and again in 2008, those fears were exposed as little more than a cruel hoax, designed to instill fear, and line the pocketbooks of various individuals and industry. I became so convinced by the evidence AGAINST the possibility of a bird flu pandemic that I wrote a New York Times bestselling book, The Bird Flu Hoax, all about the massive fraud involved with the epidemic that never happened..

swine fluWhat is the Swine Flu?

Regular swine flu is a contagious respiratory disease, caused by a type-A influenza virus that affects pigs. The current strain, A(H1N1),  is a new variation of an H1N1 virus — which causes seasonal flu outbreaks in humans — that also contains genetic material of bird and pig versions of the flu.

Interestingly enough, this version has never before been seen in neither human nor animal, which I will discuss a bit later.

This does sound bad. But not so fast. There are a few reasons to not rush to conclusions that this is the deadly pandemic we’ve been told would occur in the near future (as if anyone could predict it without having some sort of inside knowledge).

Why a True Bird- or Swine Flu Pandemic is HIGHLY Unlikely While in my opinion it is highly likely factory farming is responsible for producing this viral strain, I believe there is still no cause for concern.

You may not know this, but all H1N1 flu’s are descendants of the 1918 pandemic strain. The reason why the flu shot may or may not work, however, from year to year, is due to mutations. Therefore, there’s no vaccine available for this current hybrid flu strain, and naturally, this is feeding the fear that millions of people will die before a vaccine can be made.

However, let me remind you of one very important fact here.

Just a couple of months ago, scientists concluded that the 1918 flu pandemic that killed between 50-100 million people worldwide in a matter of 18 months — which all these worst case scenarios are built upon — was NOT due to the flu itself!4

Instead, they discovered the real culprit was strep infections.

People with influenza often get what is known as a “superinfection” with a bacterial agent. In 1918 it appears to have been Streptococcus pneumoniae.

Since strep is much easier to treat than the flu using modern medicine, a new pandemic would likely be much less dire than it was in the early 20th century, the researchers concluded.

Others, such as evolutionary biologist Paul Ewald,5 claim that a pandemic of this sort simply cannot happen, because in order for it to occur, the world has to change. Not the virus itself, but the world.

In a previous interview for Esquire magazine, in which he discusses the possibility of a bird flu pandemic, he states:

“They think that if a virus mutates, it’s an evolutionary event. Well, the virus is mutating because that is what viruses and other pathogens do. But evolution is not just random mutation. It is random mutation coupled with natural selection; it is a battle for competitive advantage among different strains generated by random mutation.

For bird flu to evolve into a human pandemic, the strain that finds a home in humanity has to be a strain that is both highly virulent and highly transmissible. Deadliness has to translate somehow into popularity; H5N1 has to find a way to kill or immobilize its human hosts, and still find other hosts to infect. Usually that doesn’t happen.”

Ewald goes on to explain that evolution in general is all about trade-offs, and in the evolution of infections the trade-off is between virulence and transmissibility.

What this means is that in order for a “bird flu” or “swine flu” to turn into a human pandemic, it has to find an environment that favors both deadly virulence and ease of transmission.

People living in squalor on the Western Front at the end of World War I generated such an environment, from which the epidemic of 1918 could arise.

Likewise, crowded chicken farms, slaughterhouses, and jam-packed markets of eastern Asia provide another such environment, and that environment gave rise to the bird flu — a pathogen that both kills and spreads, in birds, but not in humans.

Says Ewald:

“We know that H5N1 is well adapted to birds. We also know that it has a hard time becoming a virus that can move from person to person. It has a hard time without our doing anything. But we can make it harder. We can make sure it has no human population in which to evolve transmissibility. There is no need to rely on the mass extermination of chickens. There is no need to stockpile vaccines for everyone.

By vaccinating just the people most at risk — the people who work with chickens and the caregivers — we can prevent it from becoming transmissible among humans. Then it doesn’t matter what it does in chickens.”

Please remember that, despite the fantastic headlines and projections of MILLIONS of deaths, the H5N1 bird flu virus killed a mere 257 people worldwide since late 2003. As unfortunate as those deaths are, 257 deaths worldwide from any disease, over the course of five years, simply does not constitute an emergency worthy of much attention, let alone fear!

Honestly, your risk of being killed by a lightning strike in the last five years was about 2,300 percent higher than your risk of contracting and dying from the bird flu.6 I’m not kidding! In just one year (2004), more than 1,170 people died from lighting strikes, worldwide.7

So please, as the numbers of confirmed swine flu cases are released, keep a level head and don’t let fear run away with your brains.

So is the Swine Flu Getting More or Less Dangerous?

On Sunday, April 26, The Independent reported that more than 1,000 people had contracted the swine flu virus in Mexico, 8 but by the afternoon that same day, Mexican President Calderon declared that more than two-thirds of the 1,300 thought to have contracted the disease had been given a clean bill of health and sent home.9

Additionally, the number of actual confirmed cases appears to be far lower than reported in many media outlets, leading me to believe that many reporters are interchanging the terms “suspected cases” and “confirmed cases.”

Interestingly Mexico is the ONLY country in the world where someone has actually died from this disease.Mexico has reported 152 fatalities in flu-like cases in recent days, seven of which have been confirmed as swine flu. Another 19 patients have been confirmed as having swine flu but surviving. About 2,000 people have been hospitalized with symptoms.

By contrast, the United States has had 64 confirmed cases, five hospitalizations and no deaths from US Citizens. On April 29th CNN reported the first swine fatality in the US, however this was actually a child from Mexico that died in Texas. According to the World Health Organization’s Epidemic and Pandemic Alert and Response site; as of April 27, there are:

  • 64 laboratory confirmed cases in U.S. — 0 deaths (reported by CDC as of April 29)
  • 26 confirmed cases in Mexico — 7 deaths
  • 6 confirmed cases in Canada — 0 deaths
  • 1 confirmed case in Spain — 0 deaths

Additionally, nearly all suspected new cases have been reported as mild.

Personally, I am highly skeptical. It simply doesn’t add up to a real pandemic.

But it does raise serious questions about where this brand new, never before seen virus came from, especially since it cannot be contracted from eating pork products, and has never before been seen in pigs, and contains traits from the bird flu — and which, so far, only seems to respond to Tamiflu. Are we just that lucky, or… what?

Your Fear Will Make Some People VERY Rich in Today’s Crumbling Economy

According to the Associated Press at least one financial analyst estimates up to $388 million worth of Tamiflu sales in the near future10 — and that’s without a pandemic outbreak.

More than half a dozen pharmaceutical companies, including Gilead Sciences Inc., Roche, GlaxoSmithKline and other companies with a stake in flu treatments and detection, have seen a rise in their shares in a matter of days, and will likely see revenue boosts if the swine flu outbreak continues to spread.

As soon as Homeland Security declared a health emergency, 25 percent — about 12 million doses — of Tamiflu and Relenza treatment courses were released from the nation’s stockpile. However, beware that the declaration also allows unapproved tests and drugs to be administered to children. Many health- and government officials are more than willing to take that chance with your life, and the life of your child. But are you?

Remember, Tamiflu went through some rough times not too long ago, as the dangers of this drug came to light when, in 2007, the FDA finally began investigating some 1,800 adverse event reports related to the drug. Common side effects of Tamiflu include:

  • Nausea
  • Vomiting
  • Diarrhea
  • Headache
  • Dizziness
  • Fatigue
  • Cough

All in all, the very symptoms you’re trying to avoid.

More serious symptoms included convulsions, delirium or delusions, and 14 deaths in children and teens as a result of neuropsychiatric problems and brain infections (which led Japan to ban Tamiflu for children in 2007). And that’s for a drug that, when used as directed, only reduces the duration of influenza symptoms by 1 to 1 ½ days, according to the official data.

But making matters worse, some patients with influenza are at HIGHER risk for secondary bacterial infections when on Tamiflu. And secondary bacterial infections, as I mentioned earlier, was likely the REAL cause of the mass fatalities during the 1918 pandemic!

Where did This Mysterious New Animal-Human Flu Strain Come From?

Alongside the fear-mongering headlines, I’ve also seen increasing numbers of reports questioning the true nature of this virus. And rightfully so.

Could a mixed animal-human mutant like this occur naturally? And if not, who made it, and how was it released?

Not one to dabble too deep in conspiracy theories, I don’t have to strain very hard to find actual facts to support the notion that this may not be a natural mutation, and that those who stand to gain have the wherewithal to pull off such a stunt.

Just last month I reported on the story that the American pharmaceutical company Baxter was under investigation for distributing the deadly avian flu virus to 18 different countries as part of a seasonal flu vaccine shipment. Czech reporters were probing to see if it may have been part of a deliberate attempt to start a pandemic; as such a “mistake” would be virtually impossible under the security protocols of that virus.

The H5N1 virus on its own is not very airborne. However, when combined with seasonal flu viruses, which are more easily spread, the effect could be a potent, airborne, deadly, biological weapon. If this batch of live bird flu and seasonal flu viruses had reached the public, it could have resulted in dire consequences.

There is a name for this mixing of viruses; it’s called “reassortment,” and it is one of two ways pandemic viruses are created in the lab. Some scientists say the most recent global outbreak — the 1977 Russian flu — was started by a virus created and leaked from a laboratory.

Another example of the less sterling integrity of Big Pharma is the case of Bayer, who sold millions of dollars worth of an injectable blood-clotting medicine to Asian, Latin American, and some European countries in the mid-1980s, even though they knew it was tainted with the AIDS virus.

So while it is morally unthinkable that a drug company would knowingly contaminate flu vaccines with a deadly flu virus such as the bird- or swine flu, it is certainly not impossible. It has already happened more than once.

But there seems to be no repercussions or hard feelings when industry oversteps the boundaries of morality and integrity and enters the arena of obscenity. Because, lo and behold, which company has been chosen to head up efforts, along with WHO, to produce a vaccine against the Mexican swine flu?

Baxter!11 Despite the fact that ink has barely dried on the investigative reports from their should-be-criminal “mistake” against humanity.

According to other sources,12 a top scientist for the United Nations, who has examined the outbreak of the deadly Ebola virus in Africa, as well as HIV/AIDS victims, has concluded that the current swine flu virus possesses certain transmission “vectors” that suggest the new strain has been genetically-manufactured as a military biological warfare weapon.

The UN expert believes that Ebola, HIV/AIDS, and the current A-H1N1 swine flu virus are biological warfare agents.

In addition, Army criminal investigators are looking into the possibility that disease samples are missing from biolabs at Fort Detrick — the same Army research lab from which the 2001 anthrax strain was released, according to a recent article in the Fredrick News Post.13 In February, the top biodefense lab halted all its research into Ebola, anthrax, plague, and other diseases known as “select agents,” after they discovered virus samples that weren’t listed in its inventory and might have been switched with something else.

Factory Farming Maybe Source of Swine Flu

Another theory as to the cause of Swine Flu might be factory farming. In the United States, pigs travel coast to coast. They can be bred in North Carolina, fattened in the corn belt of Iowa, and slaughtered in California.

While this may reduce short-term costs for the pork industry, the highly contagious nature of diseases like influenza (perhaps made further infectious by the stresses of transport) needs to be considered when calculating the true cost of long-distance live animal transport.

The majority of U.S. pig farms now confine more than 5,000 animals each. With a group of 5,000 animals, if a novel virus shows up it will have more opportunity to replicate and potentially spread than in a group of 100 pigs on a small farm.

With massive concentrations of farm animals within which to mutate, these new swine flu viruses in North America seem to be on an evolutionary fast track, jumping and reassorting between species at an unprecedented rate.

Should You Accept a Flu Vaccine — Just to be Safe?

As stated in the New York Times14 and elsewhere, flu experts have no idea whether the current seasonal flu vaccine would offer any protection whatsoever against this exotic mutant, and it will take months to create a new one.

But let me tell you, getting vaccinated now would not only offer no protection and potentially cause great harm, it would most likely be loaded with toxic mercury which is used as a preservative in most flu vaccines..

I’ve written extensively about the numerous dangers (and ineffectiveness) of flu vaccines, and why I do not recommend them to anyone. So no matter what you hear — even if it comes from your doctor — don’t get a regular flu shot. They rarely work against seasonal flu…and certainly can’t offer protection against a never-before- seen strain.

Currently, the antiviral drugs Tamiflu and Relenza are the only drugs that appear effective against the (human flu) H1N1 virus, and I strongly believe taking Tamiflu to protect yourself against this new virus could be a serious mistake — for all the reasons I already mentioned above.

But in addition to the dangerous side effects of Tamiflu, there is also growing evidence of resistance against the drug. In February, the pre-publication and preliminary findings journal called Nature Precedings published a paper on this concern, stating15:

The dramatic rise of oseltamivir [Tamiflu] resistance in the H1N1 serotype in the 2007/2008 season and the fixing of H274Y in the 2008/2009 season has raised concerns regarding individuals at risk for seasonal influenza, as well as development of similar resistance in the H5N1 serotype [bird flu].

Previously, oseltamivir resistance produced changes in H1N1 and H3N2 at multiple positions in treated patients. In contrast, the recently reported resistance involved patients who had not recently taken oseltamivir.

It’s one more reason not to bother with this potentially dangerous drug.

And, once a specific swine flu drug is created, you can be sure that it has not had the time to be tested in clinical trials to determine safety and effectiveness, which puts us right back where I started this article — with a potential repeat of the last dangerous swine flu vaccine, which destroyed the lives of hundreds of people.

Topping the whole mess off, of course, is the fact that if the new vaccine turns out to be a killer, the pharmaceutical companies responsible are immune from lawsuits — something I’ve also warned about before on numerous occasions.

Unfortunately, those prospects won’t stop the governments of the world from mandating the vaccine — a scenario I hope we can all avoid.

How to Protect Yourself Without Dangerous Drugs and Vaccinations

For now, my point is that there are always going to be threats of flu pandemics, real or created, and there will always be potentially toxic vaccines that are peddled as the solution. But you can break free of that whole drug-solution trap by following some natural health principles.

I have not caught a flu in over two decades, and you can avoid it too, without getting vaccinated, by following these simple guidelines, which will keep your immune system in optimal working order so that you’re far less likely to acquire the infection to begin with.

This is probably the single most important and least expensive action you can take. I would STRONGLY urge you to have your vitamin D level monitored to confirm your levels are therapeutic at 50-70 ng.ml and done by a reliable vitamin D lab like Lab Corp.

For those of you in the US we hope to launch a vitamin D testing service through Lab Corp that allows you to have your vitamin D levels checked at your local blood drawing facility, and relatively inexpensively. We hope to offer this service by June 2009.

If you are coming down with flu like symptoms and have not been on vitamin D you can take doses of 50,000 units a day for three days to treat the acute infection. Some researchers like Dr. Cannell, believe the dose could even be as high as 1000 units per pound of body weight for three days.

  • Avoid Sugar and Processed Foods. Sugar decreases the function of your immune system almost immediately, and as you likely know, a strong immune system is key to fighting off viruses and other illness. Be aware that sugar is present in foods you may not suspect, like ketchup and fruit juice.
  • Get Enough Rest. Just like it becomes harder for you to get your daily tasks done if you’re tired, if your body is overly fatigued it will be harder for it to fight the flu. Be sure to check out my article Guide to a Good Night’s Sleep for some great tips to help you get quality rest.
  • Have Effective Tools to Address Stress . We all face some stress every day, but if stress becomes overwhelming then your body will be less able to fight off the flu and other illness.

    If you feel that stress is taking a toll on your health, consider using an energy psychology tool such as the Emotional Freedom Technique (EFT), which is remarkably effective in relieving stress associated with all kinds of events, from work to family to trauma. You can check out my free, 25-page EFT manual for some guidelines on how to perform EFT.

  • Exercise. When you exercise, you increase your circulation and your blood flow throughout your body. The components of your immune system are also better circulated, which means your immune system has a better chance of finding an illness before it spreads. You can review my exercise guidelines for some great tips on how to get started.
  • Take a good source of animal based omega-3 fats like Krill Oil. Increase your intake of healthy and essential fats like the omega-3 found in krill oil, which is crucial for maintaining health. It is also vitally important to avoid damaged omega-6 oils that are trans fats and in processed foods as it will seriously damage your immune response.
  • Wash Your Hands. Washing your hands will decrease your likelihood of spreading a virus to your nose, mouth or other people. Be sure you don’t use antibacterial soap for this — antibacterial soaps are completely unnecessary, and they cause far more harm than good. Instead, identify a simple chemical-free soap that you can switch your family to.
  • Eat Garlic Regularly. Garlic works like a broad-spectrum antibiotic against bacteria, virus, and protozoa in the body. And unlike with antibiotics, no resistance can be built up so it is an absolutely safe product to use. However, if you are allergic or don’t enjoy garlic it would be best to avoid as it will likely cause more harm than good.
  • Avoid Hospitals and Vaccines In this particular case, I’d also recommend you stay away from hospitals unless you’re having an emergency, as hospitals are prime breeding grounds for infections of all kinds, and could be one of the likeliest places you could be exposed to this new bug.  Vaccines will not be available for six months at the minimum but when available they will be ineffective and can lead to crippling paralysis like Guillain-Barré Syndrome just as it did in the 70s.
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WOW! an unexpected rate cut by the Bank of Canada this morning!

April 21st, 2009

WOW! an unexpected rate cut by the Bank of Canada this morning! I will let you know what happens with Prime rate as we hear later today.

OTTAWA – The Bank of Canada has taken its influential target interest rate to the lowest practical level in an effort to combat what it says is deeper and more widespread global recession.
The central bank sliced the overnight rate in half to 0.25 per cent – the lowest it says is practical – and signalled strongly it will have to keep it there until at least mid-2010.
In addition, the bank has extended the term of its purchase and resale agreements it uses to inject liquidity into money markets from one-and-three months to six-and-12 months, while setting minimum and maximum bids that correspond to the historically low target rate.
The bank said it will target a daily level of settlement balance in the financial system at $3 billion, a move it says will help drive the overnight rate to the bottom of the trading band.
The Bank of Montreal (TSX:BMO) was the first of Canada’s major banks to announce that it would lower its own prime rate in step with the central bank, dropping the benchmark around which it calculates variable mortgages and other loans to 2.25 per cent.
Shortly after, Royal Bank (TSX:RY) said it too would lower its prime rate to 2.25 per cent, signalling that the other chartered banks would likely follow suit.

The dramatic actions – and more are expected Thursday when bank governor Mark Carney unveils options for increasing the money supply – signal a new and darker view of the global and domestic recession than the Bank of Canada has previously admitted to.
“In an environment of continued high uncertainty, the global recession has intensified and become more synchronous since (January),” Carney wrote in an unusually lengthy note accompanying the interest rate decision.
“Deteriorating credit conditions have spread quickly through trade, financial and confidence channels. While more aggressive monetary and fiscal policy actions are underway across the G20 (countries), measures to stabilize the global financial system have taken longer than expected to enact.”
As a result, Carney has basically thrown out the playbook for the Canadian economy that he outlined in January.
Then, the recession was supposed to be over by the summer and accompanying growth was to built in the third quarter on the way to a robust recovery in 2010, with output growth of 3.8 per cent. Total economy shrinkage this year would be limited to 1.2 per cent.
Now Carney says the economy won’t stop falling until at least the fourth quarter and in total will contract three per cent this year. That is in line with the Organization for Economic Co-operation and Development projection and that of a growing number of private sector economists.
Carney remains a relative optimist on how strong the rebound will be, however, predicting a bounce-back of 2.5 per cent next year and 4.7 per cent in 2011. While lower than his previous prediction of 3.8 per cent growth in 2010, it is still far ahead of the OECD’s 0.3 per cent flatline forecast for next year.
“Given significant restructuring in a number of sectors, potential growth has been revised down,” he says.
“The recovery will be importantly supported by the bank’s accommodative monetary stance.”
The new pessimism, or realism as some economists would call it, has increased the odds that Carney will do more than outline options for so-called quantitative easing later this week – a technical way of saying printing more money to get credit markets functioning better – but that he will soon move into the uncharted territory.
The central bank sees no immediate danger of inflation for all the stimulus it is injecting into the dormant economy.
In fact, Carney said he expects inflation to be minus 0.8 per cent in the third quarter and not to return to the central bank’s desired two-per-cent target until the third quarter of 2011.

Take care,

Mark Fidgett
“Your Personal Mortgage Consultant….For Life!”

PS – Please Don’t Keep Me a Secret
A REFERRAL is when you INTRODUCE someone you care about to someone you TRUST!

T 604.273.2002 | F 604.522.2072
W http://www.notapennydown.com

An independent Mortgage Specialist associated with the Verico Mortgage Network.

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How to Find the Best Interest Rate

April 17th, 2009

Last Thursday I had lunch with my good friend Paul. During the course of our conversation he asked what most people ask me about. He asked me about interest rates.

Often a stranger won’t ask me about rates, for fear of getting overwhelmed with ‘sales talk’ about mortgages. Paul happens to know that’s not my way, so he asked. What I told him I later summarized below, ‘How to Find the Best Interest Rate.’ My answer may surprise you.

The Best Interest Rate

Don’t Shop Until They Drop

Looking for the lowest interest rate seems awfully easy, doesn’t it? “What’s your interest rate?” sounds like such a straightforward question. If it were true you would be able to jump on the Internet and easily look up interest rates offered by mortgage companies without any problem. But it’s not that simple.

Yet most people spend more time looking for a comfortable pair of shoes than they spend looking for a mortgage that best meets their needs.

It’s just not that simple. Like the great variety of shoe styles and sizes, there are many different factors that can affect a person’s ability to qualify for a mortgage. If you’ve ever been frustrated with finding a pair of shoes that fit you just right, you can well imagine the difficulty in finding a mortgage with a perfect fit. It isn’t just a matter of looking for a pair in your size.

Here’s how it works, from a lender’s perspective.

Over time we’ve discovered common themes associated with why people do not completely pay back the money they borrow. Let’s call them “risk factors.” What are the common risk factors? Credit score, debt-to-income ratio, occupancy type, and loan-to-value ratio. Other factors include being a first-time homeowner, property type, and location of property.

Quite simply if a person doesn’t meet all risk factors for a loan, the interest rate is increased. The worse the risk, the higher the interest rate.

Complicating matters further is that different lenders have slightly different loan qualifications, or underwriting, guidelines. What you may not realize is that different lenders cater to people with different risk factors. Just because the bank down the street won’t give you a mortgage does not mean that another lender won’t.

Risks are summarized in complex tables, called rate sheets. Since there is no standard for rate sheets, every lender has a different format. Oh, and by the way, rate sheets are updated sometimes more than once a day. What we mortgage consultants and loan officers have to do when “pricing out a mortgage” (figuring out an interest rate) is to check rate sheets for the many different mortgage programs from over 130 different lenders against the qualification of the person and the property.

Many people will tell you to compare loans before making a choice. The easy part is asking for a quote. The hard part is having two or more loan quotes based on the same list of assumptions and having a quote be made at the same point in time. With rate sheets constantly being updated, a low rate today may be a very high rate tomorrow.

Expect that when you call for an interest rate quote you won’t be guaranteed an interest rate. You’ll get, at best, wishful thinking. Lenders who will give out quotes have to make educated guesses. It not only takes a lot of time to do a thorough investigation of all possible loans, but also because interest rates are a moving target.

Some people might even quote you a low rate just to get you to stop looking and work with them.

It’s similar to calling up a number of shoe stores and asking if they had white tennis shoes in a size 8. Of course they do! A salesperson will assure you that your hunt is over. They have many white tennis shoes in size 8 on sale. How convenient! Yet when you finally try them on, none of them fit. They’re all too narrow.

Rather than trying to find the lowest rate on a mortgage that you qualify for, why not allow us to find a mortgage that fits you as well as your favorite pair of shoes? We will find you the best loan for your unique situation, taking into consideration your income, other debt, credit history, and other factors.



Mark Fidgett | 604-273-2002


“Your Personal Mortgage Consultant….For Life!”

PS – Please Don’t Keep Me a Secret
A REFERRAL is when you INTRODUCE someone you care about to someone you TRUST!

T 604.273.2002 | F 604.522.2072
W http://www.notapennydown.com

An independent Mortgage Specialist associated with the Verico Mortgage Network.

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B.C. housing starts down 70 per cent from a year ago, reports CMHC

April 9th, 2009

Housing starts across British Columbia remained depressed in the first quarter of 2009, falling almost 70 per cent from the same quarter of 2008, Canada Mortgage and Housing Corp. reported Wednesday.

While housing starts ticked up slightly in March on a national basis, builders in B.C. started work on 2,517 new homes in the first three months compared with 8,532 in 2008.

Locally, the declines in starts ranged from almost 93 per cent in Kelowna, where builders started on 72 new homes compared with 985 in the first quarter last year; to 31 per cent in Nanaimo, where builders started on 170 new homes vs. 247 in the same months a year ago.

New-housing construction slipped in March to a pace that would see builders across urban B.C. start work on 10,000 units in 2009, compared with a pace of 12,000 units seen in February.

In the Lower Mainland, Metro Vancouver saw starts fall by two-thirds, 1,829 units compared with 5,131 in the first quarter of 2008.

Robyn Adamache, senior analyst for Canada Mortgage and Housing in Vancouver, said the drop in starts now is a lagging response to the dramatic fall-off in sales that the Lower Mainland and other regions experienced through last summer and fall.

Comparing the current real-estate market correction to the past couple of market cycles, Adamache added that “it seems like builders have responded a little bit more quickly to the downturn in the resale market.”

Across Metro Vancouver, West Vancouver saw the steepest drop in the first quarter at 92 per cent, with the Tri-Cities and Surrey not far behind at 91 per cent.

Delta was the only municipality to see an increase in housing starts. Builders there started work on 81 new housing units, an increase of 55 per cent in the first quarter from a year earlier.

B.C., and Metro Vancouver in particular, did see a significant rise in the value of building-permit applications in February, which signals higher levels of building in future months.

Adamache added that current housing starts are well below her forecast for Metro Vancouver, so the permit numbers are evidence backing her expectation for “things to start improving a bit by the end of the year.”

Peter Simpson, CEO of the Greater Vancouver Home Builders’ Association, said record attendance of almost 900 participants at his organization’s seminar for first-time homebuyers indicates to him that there is demand in the market that will support more housing starts later on.

“That [seminar], for me, was the litmus test of where we are,” Simpson said in an interview.

If the seminar had low attendance, coupled with low housing starts, “I’d say that’s going to be a long-term [situation],” Simpson added.

In the meantime, however, Simpson said the low level of starts does not bode well for employment in the construction sector.

Adamache said rising unemployment in B.C. is one factor that will weigh on housing in the months to come.

Douglas Porter, an economist with BMO Capital Markets said, “You are starting to see very real job losses in B.C. B.C. is, unfortunately starting to catch up with Ontario on that front.”

On the bright side, Porter said falling prices and lower interest rates have made homes more affordable, which will help mitigate the effects of higher unemployment.

Across Canada, home construction rose unexpectedly in March, led by Ontario and Quebec, CMHC said.

There were 154,700 housing starts on an annualized basis during the month, up from a revised 136,100 units in February, the government agency said. Many economists had expected housing starts to dip to 130,000 units in March.

Don’t miss out – Get Pre-approved today www.notapennydown.com

Take care,

Mark Fidgett
“Your Personal Mortgage Consultant….For Life!”

PS – Please Don’t Keep Me a Secret
A REFERRAL is when you INTRODUCE someone you care about to someone you TRUST!

T 604.273.2002 | F 604.522.2072
W http://www.notapennydown.com

An independent Mortgage Specialist associated with the Verico Mortgage Network.

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Rising number of Vancouver condo developers feel the pinch

April 6th, 2009

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VANCOUVER — The number of real estate sales may have bounced back in March compared to February, but they are still well below levels of a year ago, and so are prices. What is clearly up, however, is the number of condominium developers seeking creditor protection or going into receivership.

It started in June 2007, when the Riverbend condominium project in Coquitlam was the first to succumb and the Bowra Group was appointed receiver. Since then the Bowra Group has been involved in 11 more developments that are struggling and in creditor protection until they can restructure or have gone into receivership.

“I think it’s just a sign of the economy. The forest industry has been in trouble for some time and has its casualties, and the real estate industry has been challenged for a while now,” Bowra group president David Bowra said in an interview.

Most of the developments follow the same pattern. The developer runs out of money, the lender goes to court and has a receiver appointed and the receiver finishes the building and gets the best price it can for the units. Others seek creditor protection, asking the court for time to get their financial houses in order before the lender comes knocking.

Many developers got into trouble when credit markets seized up in 2008, said Larry Prentice, senior vice-president at Ernst & Young Inc., which is acting as receiver for the Resort at Copper Point in Invermere.

Money just wasn’t available, or those who had money were being choosier about who they lent to, he said. And some developers “were reliant on there being more money to keep it afloat.”

“[It’s] like the Warren Buffett quote that you don’t know who’s swimming naked until the tide goes out,” Prentice said. “The tide kind of went out towards the end of 2008.”

The Sophia condominium project on East 11th Avenue in Vancouver was pushed into bankruptcy when cost overruns of $4 million meant the pre-sale prices asked when the units were marketed in 2005 and 2006 — between $364,000 and $689,000 — wouldn’t cover costs. When the Bowra Group stepped in, purchasers were given two options: pay more for their units or get their deposits back. About half chose to stay, half chose to go, Bowra said.

Earlier this week, the remaining units went on sale for prices starting as low as $295,000. At that price, most of the units have already sold.

“If I can buy a one-bedroom condo in the Lower Mainland for under $300,000 including GST, I think that’s a great price,” Bowra said.

Prices charged in receiverships have to be approved by the court, so they can’t be too low.

“At the end of the day, we price them to sell,” Bowra said.

“I think often receiverships do represent opportunities,” he added.

And more opportunities are just around the corner with a number of developments in receivership just a few months from completion, including the Mountaineer in Squamish and the Amadeo in New Westminster.

There are some things to think about if buying a condo from a receiver. First, the Bowra Group requires offers to be subject-free, so buyers have to do their homework and get pre-approved for a mortgage before they make the offer, Bowra said.

Also, there is no real estate commission, but the Bowra Group does pay a referral fee of $5,000 to realtors, so realtors are welcome.

One thing that isn’t different is the quality of the building, Bowra said. Under B.C. law, all developments have to provide a warranty and whatever company agrees to do that is going to ensure the quality is sound, he said.

“I think the real difference [between condos in and not in receivership] is the price,” Bowra said.

“Some people think a receivership’s a gimmick, that it’s deliberate to let people think they’re getting a deal,” Bowra said.

“The one piece of advice I would suggest to a buyer is, if you’re not sure, talk to your realtor.”

© Copyright (c) The Vancouver Sun

Take care,

Mark Fidgett
“Your Personal Mortgage Consultant….For Life!”

PS – Please Don’t Keep Me a Secret
A REFERRAL is when you INTRODUCE someone you care about to someone you TRUST!

T 604.273.2002 | F 604.522.2072
W http://www.notapennydown.com

An independent Mortgage Specialist associated with the Verico Mortgage Network.

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April 4th, 2009

“There are 3 kinds of lies: Lies, Damned Lies, and Statistics”

- Mark Twain:

Over the past 6 months, the public has been inundated with sensationalist information in the media that has contributed to our current housing slowdown. Just like in the run-up in housing prices through the 2000s, the media has been a large contributor to a market psychology that is decoupled from market fundamentals.

The difference being that the story is now negative.

Below are the 3 most commonly MISUSED STATISTICS in the media:

1) Housing starts drop 70%!
(http://www.vancouversun.com/Business/story.html?id=1369898)

This shouldn’t really matter to buyers or sellers out there. Sure, this is related to the Real Estate market, but really, we’re already overbuilt and it only makes sense for developers to stop when prices are no longer escalating.

Remember, these are CONSTRUCTION figures. Not sales or pricing figures. Unless you’re a construction worker or materials supplier, this type of information is largely irrelevant to your real estate decision-making process.

2) Home sales drop 42%!
(http://www.cbc.ca/canada/british-columbia/story/2008/10/02/bc-real-estate-values
-vancouver-september.html
)

This kind of information is important for buyers and sellers to know and also helpful for realtors to use. Gone are the days when a realtor could put up a sign and sell it $20,000 over list price in 12 hours. Back then, product was king and realtors spent most of their time trying to convince sellers to list with them. Now, with more product available and time-on-market figures increasing, the market is more balanced.

That said, a drop in sales has no bearing on price. Remember, these are UNIT SALE figures, not price figures. As an example, in December, the number of home sales dropped off in Kelowna; however, the average home sale price increased.

3) Average House Prices Expected to Drop 11% in 2009!
(http://www.economicnews.ca/cepnews/wire/article/239026)

This is the most damaging type of media reports that come out. Yes, it is technically true that Average Canadian Home Prices in 2009 will likely show an 11% drop from the Average Price in 2008; however, it does not take into account the fact that the market already turned in the middle of 2008, with the average price falling drastically since then. Also, the number of units sold in a given period has a huge effect on how averages are calculated.

A simple example:

2008 Jan – June > 100 Units Sell at $200,000 Average
2008 July – Dec > 50 Units Sell at $170,000 Average

What is the Average for 2008? $190,000

Of course, at the beginning of the year in January 2009, prices are ALREADY at the December 2008 figure of $170,000, or 11% BELOW the 2008 Average of $190,000. In this example, the slowdown began in the middle of 2008.

So even though the average price in 2009 are expected to be 11% below the average price in 2008, the January price already reflects this difference and a further drop in prices is not expected.

Using these predictive models, we can see how average prices over the year can really skew the figures.

For a more complete explanation of these statistics, please feel free to contact me at the email address or phone number below.

Remember – what comes down must go up.

5 year is currently at 3.99%

Don’t wait – apply today www.notapennydown.com

Take care,

Mark Fidgett
“Your Personal Mortgage Consultant….For Life!”

PS – Please Don’t Keep Me a Secret
A REFERRAL is when you INTRODUCE someone you care about to someone you TRUST!

T 604.273.2002 | F 604.522.2072
W http://www.notapennydown.com

An independent Mortgage Specialist associated with the Verico Mortgage Network.

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World leaders pledge US$1-trillon in aid

April 3rd, 2009

World leaders pledge US$1-trillon in aid

World markets applaud

Simon Kennedy and Kitty Donaldson in London, Bloomberg

World leaders agreed on a regulatory blueprint for reining in the excesses that fed the worst financial crisis in six decades and pledged more than US$1-trillion in emergency aid to cushion the economic fallout.

The Group of 20 policymakers, meeting in London, called for stricter limits on hedge funds, executive pay, credit-rating firms and risk-taking by banks. They tripled the firepower of the International Monetary Fund (IMF) and offered cash to revive trade to help governments weather the turmoil resulting from the surge in unemployment. They avoided the divisive question of whether to deliver more fiscal stimulus to their own economies.

The statement amounts to an effort to rewrite the rules of capitalism to address an integrated world economy that has outgrown the ability of nations to keep it in check. The assembly echoed — on an international stage — the introduction in the U.S. of securities regulation after the 1929 crash.

“By any measure the London summit was historic,” President Barack Obama said after the talks. U.K. Prime Minister Gordon Brown said, “we have reached a new consensus that we take global actions together to deal with the problems we face.”

The measures to fight the recession and reform finance helped push U.S. stocks up, extending a global advance, and Treasuries down. The Dow Jones Industrial Average exceeded 8,000 for the first time since Feb. 10, before settling up 216.48 points, or 2.79%, at 7,978.08, while the S&P 500 rose 23.30 points, or 2.87%, to 834.38. In Toronto, the S&P/TSX composite index rose 131.32 points, or 1.47%, to close at 9,073.14, marking its highest closing level since Jan. 9.

Even as the G-20 leaders said they will maintain power over their own markets and companies rather than cede it to a cross-border regulator, they closed ranks behind “greater consistency and systematic co-operation” to flesh out a new regulatory order first outlined at a November meeting in Washington.

The crackdown is “a major step forward,” Nobel laureate Joseph Stiglitz, a professor at Columbia University, said in an interview. “It’s a historic moment when the world came together and said we were wrong to push deregulation.”

Blaming “major failures” in regulation as “fundamental causes” of the credit crunch, the G-20 said national regulators will be revamped to better monitor threats to the international system.

A new Financial Stability Board will be established to unite regulators and join the IMF in providing early warnings of potential threats. Once recovery is underway, work will begin on new rules aimed at avoiding excessive leverage and forcing banks to put more money aside during good times.

Hedge funds that are “systemically important” will be subjected to greater oversight, as will all key financial instruments, markets and instruments, the G20 said. That signals a setback for German Chancellor Angela Merkel and French President Nicolas Sarkozy, who wanted all of the investment funds brought under the spotlight.

That didn’t stop the funds’ lobby from complaining the US$1.4-trillion industry had been made a “scapegoat” for the market meltdown. “Although we agree that any entity that provides banking services should be regulated as a bank, the vast majority of hedge funds do not fall into this category,” Andrew Baker, chief executive of the London-based Alternative Investment Management Association, said in an interview.

Principles will also be introduced on pay and bonuses to create “sustainable compensation schemes” after concern that executive remuneration rewarded short-term risk-taking over the long-run interests of companies. Accounting-standard setters were urged to improve valuation methods and credit-rating companies will be forced to meet a code of good practice.

Having proved a sticking point at the talks, the G20 said it will impose sanctions on tax havens that do not provide enough information. Officials split over the Organization for Economic Co-operation and Development publishing a list of such nations, agreeing in the end not to block it after Mr. Obama and Mr. Sarkozy hashed out a deal with Chinese President Hu Jintao.

After bilateral meetings around London on Wednesday, Thursday’s summit was held at East London’s barn-like Excel Center, within sight of the Canary Wharf, which houses Citigroup Inc.’s Citibank, Barclays PLC, HSBC Holdings Plc and Bank of America Corp. After a one and a half hour breakfast meeting, the group spent most of its time in a circular room, taking breaks for one-on-one chats in a separate lounge, a U.K. official said.

During the plenary sessions, the leaders wore microphones and got simultaneous translations for any of the 13 languages spoken. When one wanted to speak, he or she pressed a button, set off a light and waited for his or her turn.

After a lunch of filet of beef and talks that went 30 minutes beyond schedule, the room erupted in applause when the final text was agreed upon.

The G20′s pact to impose tougher regulation marks a narrowing of differences after Ms. Merkel and Mr. Sarkozy entered the summit demanding Mr. Brown and Mr. Obama endorse a more detailed response to the crisis than that initially planned.

“We never thought we would find an agreement this large,” Mr. Sarkozy said. Ms. Merkel called it a “victory for common sense.”

Having committed US$2-trillion in fiscal packages to save their economies, the leaders said Thursday they would “deliver the scale of sustained fiscal effort necessary to restore growth,” while ensuring sustainable budgets and price stability in the long term. With banks still bogged down by toxic assets, the G20 promised “to take all necessary actions” to restore the availability of credit and protect major institutions.

Mr. Obama and Mr. Brown have pushed for more spending, only to run into resistance from Ms. Merkel and Mr. Sarkozy, who argue they’ve done enough, have bigger social-safety nets and don’t want to bust budgets. The IMF will gauge the policies taken, which should accelerate the recovery of the global economy to its long-term trend, the G20 said.

Inundated with record requests for loans from troubled economies, including Pakistan and Hungary, the IMF was told its war chest will be boosted by US$500-billion and it will receive another US$250-billion in special drawing rights, the agency’s synthetic currency. Multilateral development banks, including the World Bank, will be enabled to lend at least US$100-billion more.

“It’s historic, there’s no question about it,” said Colin Bradford, an economist at the Brookings Institution in Washington.In return for their contributions, emerging markets such as China and Brazil will receive more of a say in the fund, the G20 said. The IMF will also use revenue from sales of its gold reserves to aid the world’s poorest countries, and its next leader will no longer automatically be a European.

The G20 members are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the United States, the U.K. and the European Union. Officials from Spain and the Netherlands were also present. The leaders will meet again in New York in September, Mr. Sarkozy said.

Take care,

Mark Fidgett
“Your Personal Mortgage Consultant….For Life!”

PS – Please Don’t Keep Me a Secret
A REFERRAL is when you INTRODUCE someone you care about to someone you TRUST!

T 604.273.2002 | F 604.522.2072
W http://www.notapennydown.com

An independent Mortgage Specialist associated with the Verico Mortgage Network.

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Don’t Pay Another Cent in Rent To Your Landlord . . .

April 2nd, 2009

Don’t Pay Another Cent in Rent To Your Landlord . . .


“If you’re like most renters, you feel trapped within the walls of a house or apartment that doesn’t feel like yours.”


It’s a dream we all have – to own our own home and stop paying rent. But if you’re like most renters, you feel trapped within the walls of a house or apartment that doesn’t feel like yours. How could it when you’re not even permitted to bang in a nail or two without a hassle. You feel like you’re stuck in the renter’s rut with no way of rising up out of it and owning your own home.


Don’t Feel Trapped Anymore

It doesn’t matter how long you’ve been renting, or how insurmountable your financial situation may seem. The truth is, there are some little known facts that can help you get over the hump, and transfer your status from renter to homeowner. With this information, you will begin to see how you really can:

• buy with ZERO DOWN
• stop lining your landlord’s pockets, and
• stop wasting thousands of dollars on rent.

6 Little Known Facts That Can Help You Buy Your First Home

The problem that most renters face isn’t your ability to meet a monthly payment. Goodness knows that you must meet this monthly obligation every 30 days already. The problem is accumulating enough capital to make a down payment on something more permanent.

But saving for this lump sum doesn’t have to be as difficult as you might think. Consider the following 6 important points:


1. You can buy a home with ZERO DOWN

This innovative program is accessible to qualified homebuyers with no down payment. !

2. You may be able to use your RRSP’s to help purchase your home

To find out how the Home Buyers Plan (HBP) works click here


3. You may be able to find a seller to help you buy and finance your home

Some sellers may be willing to hold a second mortgage for you as a seller take-back. In this case, the seller becomes your lending institution. Instead of paying this seller a lump sum full amount for his or her home, you would pay monthly mortgage installments.

4. You may be able to create a cash down payment without actually going into debt

By borrowing money for certain investments to a specified level, you may be able to generate a significant tax refund for yourself that you can use as a down payment. While the money borrowed for these investments is technically a loan, the monthly amount paid can be small, and the money invested in both home and investment will be yours in the end.

5. You can buy a home even if you have problems with your credit rating

We have some great new programs that will enable you to buy a home with NotaPennyDown, even if you’ve experienced some credit problems. Former bankrupts need a fresh start, and we can help. Applicants with explainable credit problems need guidance to turn things around. We can help. If you can demonstrate your intention and ability to repay, we can find ways to get you back on the right path. We will be there with you throughout the entire process of re-establishing your credit and returning you to a good credit rating. To find out if you qualify.. click here

6. You can, and should, get pre-approved for a home loan before you go looking for a home

Pre-approval is easy, and can give you complete peace-of-mind when shopping for your home. We can obtain written pre-approval for you at no cost and no obligation, and it can all be done quite easily on-line. More than just a verbal approval from your lending institution, a written pre-approval is as good as money in the bank. It entails a completed credit application, and a certificate which guarantees you a mortgage to the specified level when you find the home you’re looking for. We are professionals who specializes in mortgages. Enlisting our services is FREE and can make the difference between obtaining a mortgage, and being stuck in the renter’s rut forever. To find out how much you qualify for … click here

There are many important issues you should be aware of that affect you as a renter. Why on earth would you continue to lose thousands by throwing it away on rent when you could take a few minutes to discuss your specific needs so that you can stop renting and start owning.

This conversation costs you nothing. And, of course, you shouldn’t have to feel obligated to buy a home at the time you review this. But by taking the time to explore your options, and learn about the ways you can afford to buy a home, think how prepared and relaxed you’ll be when you are ready to make this important step.

Find out how much you qualify at

www.notapennydown.com

PS – Discover how to beat other buyers to the “Hot” New Listings. FULL STORY…

Take care,


Mark Fidgett

“Your Mortgage Consultant….For Life!”

PS – Please don’t forget, the life blood of my business is your referrals. Who do you know that is in need of a great lender! Please give me a call. As always, I promise to deliver such great service that your clients will thank YOU for referring them to me.

T 604.273.2002 | F 604.522.2072
E mark@notapennydown.com
W www.notapennydown.com

An independent broker associated with the VERICO Mortgage Brokers Network and a member of the Canadian Institute of Mortgage Brokers and Lenders. Copyright NotaPennyDown.com 2007. All rights reserved

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