Canadian housing bubble
Has a correction arrived and about to reverse course, or is the bubble just now feeling the pressure of the pin?
Let’s translate the numbers that came out from the Toronto Real Estate Board, a report that should be taken with a grain of salt considering the conflict of interest they have in reporting the truth:
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TORONTO — Canada’s largest real estate
New lending rules may have curtailed big banks from issuing risky loans, but Canadians in their everlasting effort to keep up with the Joneses, will go to any length to make sure they are as indebted as their neighbours.
Until this modern take of Keynesian economics is no longer pushed as the standard of financial “wisdom”, debt-fueled economies will continue to relive these progressively worse economic cycles, with every bubble burst being much worse than the last.
When an article was released by the Canadian Press last Wednesday advising us plebs what to do in the face of a meagre 0.25% rise in interest rates, one has to wonder how bad the economic situation really is in Canada under the debt-driven facade.
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TORONTO — Many consumers wi
The last couple of interest rate hikes in the U.S. had an unusual short-term effect on the stock market — the markets went up on both the rumour and the news.
Normally, by placing a higher value on cash and savings, there would be a flight away from leverage and speculation, resulting in a correction in the market. However, that never happened as the DOW and S… Read more
Like the postmodern movement, the rise of Keynesian theory in academia in the past century has led to government institutions wielding more power than they merit. The general public doesn’t really understand this recent interpretation of economics, so they are encouraged to trust a group of economic “experts” to sort it out for them.… Read more
A new Ipsos poll came out that shows Canadians are pretty much screwed no matter what the next Keynesian move is by the Bank of Canada:
Four in ten (43%) say they are concerned about the impact of rising interest rates on their financial situation, and nearly three in ten (28%) expressed concern that rising interest rates could move them towards bankruptcy.
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Take a look at this screen grab of the real estate headlines at CP24.com (Canadian Propaganda 24 hours a day):
Affordability is the worst, yet prices are near the bottom?
Nothing is technically “affordable” nowadays in a Keynesian powered economy. No one is encouraged to save, and everyone (government included) relies on debt, a.k.a. future … Read more
What can you get for $500,000 today? You could buy one “cozy” shoe box condo in the sky in a gentrified neighbourhood in chilly Toronto, or two detached houses on huge lots beside a golf course in sunny Florida. The strange thing is that Americans think that their prices are reminiscent of 2008 and they think that they are back in a ho… Read more
Despite the Canadian Press reading more like opinion pieces than objective news nowadays, these two articles are objective enough, and when taken at face value, paint a picture of the government supposedly doing their job.