Comments on: High Debt, Asset Bubbles, and An Increased Probability of A Hard Landing Warns BIS https://betterdwelling.com/high-debt-asset-bubbles-and-an-increased-probability-of-a-hard-landing-warns-bis/ Canada’s Fastest Growing Real Estate News Source Tue, 28 Jun 2022 19:35:50 +0000 hourly 1 By: Views From The Bubble https://betterdwelling.com/high-debt-asset-bubbles-and-an-increased-probability-of-a-hard-landing-warns-bis/#comment-84037 Tue, 28 Jun 2022 19:35:50 +0000 https://betterdwelling.com/?p=21064#comment-84037 The only way to not see a hard landing in Canada is to trade it for a financial crisis in two more years and then replace the currency. It’s more reckless than the idea of a hard landing.

]]> By: Simon Chan https://betterdwelling.com/high-debt-asset-bubbles-and-an-increased-probability-of-a-hard-landing-warns-bis/#comment-84034 Tue, 28 Jun 2022 19:32:46 +0000 https://betterdwelling.com/?p=21064#comment-84034 Food shortages and riots are already going viral in Sri Lanka. Yes, there are pressure point factors that blew up in February but that’s why we shouldn’t have been at 3x inflation going into that scenario.

This is clearly a case of being reckless and assuming nothing can go wrong, and now there’s no easy way out.

]]> By: Kate Wright https://betterdwelling.com/high-debt-asset-bubbles-and-an-increased-probability-of-a-hard-landing-warns-bis/#comment-84033 Tue, 28 Jun 2022 19:28:00 +0000 https://betterdwelling.com/?p=21064#comment-84033 In reply to Trader Jim.

MMT might work, but what government is dumb enough to tax the middle class gains in home inflation? None, so they went for it and kept the gains.

]]> By: Han Thanh https://betterdwelling.com/high-debt-asset-bubbles-and-an-increased-probability-of-a-hard-landing-warns-bis/#comment-84032 Tue, 28 Jun 2022 19:26:38 +0000 https://betterdwelling.com/?p=21064#comment-84032 Canada, Australia, New Zealand’s toast in this scenario.

]]> By: Omar https://betterdwelling.com/high-debt-asset-bubbles-and-an-increased-probability-of-a-hard-landing-warns-bis/#comment-84030 Tue, 28 Jun 2022 19:24:43 +0000 https://betterdwelling.com/?p=21064#comment-84030 In reply to Dar Robbins.

Which is what higher interest rates would provide. Unfortunately governments appoint the people who are the most comfortable devaluing our labor, not the people most qualified to make hard decisions.

]]> By: Trader Jim https://betterdwelling.com/high-debt-asset-bubbles-and-an-increased-probability-of-a-hard-landing-warns-bis/#comment-84029 Tue, 28 Jun 2022 19:23:18 +0000 https://betterdwelling.com/?p=21064#comment-84029 In reply to Mark Bayly.

Don’t tell the government. They’ve explained many times it’s not like a credit card, it doesn’t have to be paid. Now that the central bank’s boss disagrees, we have a different narrative being played in public.

]]> By: Dar Robbins https://betterdwelling.com/high-debt-asset-bubbles-and-an-increased-probability-of-a-hard-landing-warns-bis/#comment-84021 Tue, 28 Jun 2022 15:22:17 +0000 https://betterdwelling.com/?p=21064#comment-84021 Decades of government deficit spending, consumer credit issuance and debt monetization by the BoC all of which have caused the purchasing power of the Canadian dollar to depreciate which ultimately painted Canadians into a corner. Raising interest rates above the inflation rate will cause an economic depression and more QE may very well trigger hyper-inflation which is even worse.

The solution involves a long term credit diet for governments and consumers. Anything more radical will be painful and if history is any guide, our politicians will seek to blame some guy across the pond.

]]> By: Mark Bayly https://betterdwelling.com/high-debt-asset-bubbles-and-an-increased-probability-of-a-hard-landing-warns-bis/#comment-84015 Tue, 28 Jun 2022 03:06:10 +0000 https://betterdwelling.com/?p=21064#comment-84015 What a surprise you can’t print money to pay your bills forever 😲

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