In the US and in Europe where they were sooo irresponsible - where they spent more than they made and let their house prices run away to extreme levels...ha ha... fools.
We had solid banks, a great Finance Minister and an even better Bank of Canada Govenor. We had China. We had things people need like gold and water and wheat and copper, we would never catch the Great Recession.
Well it's here!
The TSX peaked in early 2011 and it is down, down down from there.
China is not happy and looks to be backing off it's 15 year run of hitting Blackjack again and again.
Our housing markets are at all time highs of lack of affordability, our household debt has surpassed the spend-and-live-for-today Americans when interest rates are at all time lows.
We have let a quasi-government outfit run by a very mediocre board run up a huge mountain of liability with inadequate over-sight and risk control (IMF's words - not mine)- I cannot even bear to type their name..
..and if it hits the fan...we cannot cut rates, coz they are already near enough zero, we cannot boost spending coz the Provinces are already laden to the gills with debt and some are having trouble selling their bonds - the biggest two that's who, and coming to a Province near us soon. The Fed's deficit is becoming 'structural' too, which means they are here to stay and any significant downward pressure on house prices will wipe out the CMHC's equity and the Fed's piggy bank will get raided.
In short, we have brought upon ourselves, the very thing we were chiding others for doing.
But if you believe this guy, there is nothing to worry about.
An insightful interview with Scott Bessent
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RenMac hosted an interview with Scott Bessent, who is Trump's announced
nominee for Treasury Secretary, in early 2021. While Bessent did not talk
about pol...
13 hours ago
Holy Smokes. Ham Central (OKA West Van) Zero SFH sales. Of course, the week-end purchases will probably show up in the next few days as listings take priority. Meanwhile there were 15 new listings and 7 price changes.
ReplyDeleteHousing prices in Singapore has come down significantly this year since foreigners have to cough out an additional 10% in property taxes. Locals have to pay 3% more for purchase of a third and subsequent private property.
ReplyDeleteWhen told that our mortgage loans are guaranteed vis–à–vis the taxpayers, our visitors (both in banking & finance) were shocked by the stupidity given that so much warnings and lessons to be gleaned from the boondoggles in the US 6-7 years ago.