Canada’s central bank head piqued the interest of economists, and not because of his dazzling personality. Speaking to lawmakers, the Bank of Canada (BoC) Governor Tiff Macklem explained quantitative ease (QE) has no impact on housing. He further explained demand and the cost of housing determines mortgage demand. The statement was odd, not because he […]
Pour one out for Canada’s cheaper-than-cheap flood of easy credit, because it’s on its way out. Today the Bank of Canada (BoC) announced their quantitative ease (QE) program is coming to an end. The program, which floods markets with cheap debt, was used to drive inflation and home sales higher. Now that these issues have […]
Canada’s central bank is closer to ending the program that added rocket fuel to home prices. The Bank of Canada (BoC) announced it will taper its quantitative ease (QE) program. QE has been a major contributor to the flood of cheap cash that’s helped push home prices higher. As the program gets close to an […]
About 6 years ago, deep-pocketed investors and institutions gathered at the Megatrends conference. Blackrock CEO Laurance Fink told them something that seemed unconventional in 2015. The two greatest stores of wealth internationally today is [one] contemporary art…,” said the $6 trillion asset manager. “And two… apartments in Manhattan, apartments in Vancouver, [and apartments] in London.” […]
We’re all in this together. Okay, we weren’t in it together — but we’re really sorry about one of the greatest transfers of wealth in history. That was the takeaway from a Bank of Canada (BoC) speech earlier this week, by Governor Tiff Macklem. In a totally not ironic speech on inequality, he suggested quantitative […]
The Canadian economy’s recovery is well underway, and that means easy money may be on the way out. Bank of Canada (BoC) updated its outlook earlier today. The central bank said the accelerated recovery will allow them to ease stimulus. To start, they’ll taper quantitative ease (QE), and speed up the end of their commitment […]
Canadian real estate prices are rising at rates even the banks are warning about. There’s a lot of reasons this is happening, but one rarely discussed is the supersized borrowing from the Government of Canada (GoC). A lot of cash was needed during the pandemic, but Canada’s discretionary spending topped the G20. To help facilitate […]
Quantitative ease (QE) is a simple concept, but not well understood by most people. Increasingly folks tell me, “QE inflates home prices,” and “prevents prices from dropping.” The first part is true, but the evidence on the second part is a little shaky. It can help to push home prices higher during a tight market, […]
