Toronto housing bubble: personal debt treadmill at maximum speed

Take a look at this screen grab of the real estate headlines at (Canadian Propaganda 24 hours a day):

RBC says housing affordability measure worst since 1990. Toronto hits worst level ever; Toronto-area housing prices may already near bottom: RBC economist

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 earnings plus interest, to satisfy their current spending habits.

With no promise of an increase in future earnings, debt begets more debt. With the cost of living exponentially heading upward, the debt treadmill is reaching peak speeds.

This contradicts the notion that housing prices may be near a bottom. What the propaganda is telling potential home buyers is to buy now or forever be priced out of the market — the usual persuasion tactic to keep the Ponzi scheme going.

At some point the consumers will fall off the debt treadmill and faceplant. It will be as painful as it sounds.

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