Comments on: Canadians Are More Indebted; Low Rates Did Not Improve Real Estate Affordability: BoC

By: D

Wed, 08 Dec 2021 22:54:05 +0000

Realistically I only see two solutions:

1)the government/central bank saves the commercial bank and the dollar, immediate consequence is that mortgagees go bankrupt and lose their home, economy collapses but there will be a recovery
2)government does not save banks or dollar, entire economy collapses, Canada will become more like Argentina and there will be mass emigration of skilled people leading to brain drain

By: JamesXK

JamesXK — Wed, 08 Dec 2021 22:41:33 +0000

No worries! The federal (Liberal) government will have mortgage relief programs ready for all, continue to subsidy/import new housing customers at a rate of 400k per annum, shrug off declining cad values as good for Canadian producers /exporters (and jobs), and re-direct market-exiting capital to increasing the housing supply through corporate-friendly tax-reduction schemes. The cake is already baked – everybody gets a slice.

By: riksaga

riksaga — Wed, 08 Dec 2021 15:51:12 +0000

The plebes are trying live like the elites – financialization of capital & debt vs productive industrialization – can an economy sustain this – hmmm/

By: Scott

Scott — Wed, 08 Dec 2021 11:19:28 +0000

When I become King of Canada, I know who I’ll tap for my Governor. Thanks! Insightful as always…

By: Alex

Alex — Wed, 08 Dec 2021 03:24:56 +0000

In reply to Average Man. Agreed.

By: Average Man

Average Man — Wed, 08 Dec 2021 01:23:30 +0000

In reply to J_Morrow. Yes. I don't think housing will collapse, I think the entire economy will collapse under the weight of the housing market. We've missed all the logical off ramps. This will inflate for another few years and then it will break everything.

By: J_Morrow

J_Morrow — Wed, 08 Dec 2021 00:02:37 +0000

In reply to common man. Do you think this will be the first bubble in history that doesn't pop? This only ends in collapse or confiscation. I'm not pretending I know which or when.

By: common man

common man — Tue, 07 Dec 2021 21:31:20 +0000

If the government creates an illusion that the house prices will never come down and incentivizes to buy/keep houses , and govt does not keep a check of money laundering , the house prices will reach new highs every year probably another 25 % by next year.
No one wants to invest in businesses or companies as everyone feels housing is the best and profitable investment.

By: Doomcouver

Doomcouver — Tue, 07 Dec 2021 20:06:58 +0000

In reply to Investor. Why do you think Canada's banks have been aggressively diversifying outside of Canada? They know what's coming.

By: Baron

Baron — Tue, 07 Dec 2021 19:03:48 +0000

Banks have no risk in Canada.