Comments on: Bank of Canada Warns The Era of Low Rates Is Over

By: Andrew Baldwin

Andrew Baldwin — Tue, 20 Jun 2023 01:50:54 +0000

Stephen Puwasi writes: “An important side note on the last one is that Canada doesn’t have its own neutral policy rate. It uses the US neutral rate estimate, which seems wreckless for a sovereign issuer of a convertible currency.” Obviously “reckless” was intended.

By: Omar

Omar — Wed, 14 Jun 2023 12:16:51 +0000

This was all calculated. They have the public over leverage. Have them default. Kill the middle class. Scum bags that work for the elite not for the populations.

By: J

Mon, 12 Jun 2023 19:05:06 +0000

In reply to Dar Robbins.

It’s called fundamentals – when there are no more liquidity or qualified buyers for X products. Prices have to go down or a new lower cost product must take its place.

While record rents put sizeable dent into down-payments for renters, which drags out the slump even longer as those potential buyers are delayed into the first time home buyer market.

The only salvation is from money laundering players who may put a floor on the slide. However, they’re not stupid to over do their operations to get the financial police all up their business.

A cliff is coming. If you want/have to to sell, sell soon (call this speculation; I call it math).

By: JCH

JCH — Mon, 12 Jun 2023 00:26:05 +0000

Nah, the real estate bubble will be protected no matter what. Too many vested interests in Canada have too much net worth tied up in RE.

I’ll bet this kind of ‘rates will stay high’ talk is mostly to try to talk the RE bubble into halting further expansion, (which feeds inflation), by bringing to market some of the properties hanging on by the skin of their teeth for the promised pivot that will save them.

Then once the market stops rising yet again, they’ll pause further int rate increases, call inflation stable and on its way back to 2%, and get ready to pivot all the way back to zero as soon as the RE market starts to actually deflate more than few pct from present values.

You can’t unwind a Ponzi, and significantly falling house prices would be an existential threat to gov of Canada, banks, homeowers, retirees etc, so money will be printed and real interest rates will stay negative til the end of time to avoid any retracement of house prices to any sane level.

Young people should vote with their feet – there’s no opportunity here any more. Time to find a better country, one that rewards hard work with a reasonable cost of living and better quality of life.

By: Dar Robbins

Dar Robbins — Sun, 11 Jun 2023 22:31:55 +0000

And you believe them?

By: Cheon

Cheon — Sun, 11 Jun 2023 20:50:26 +0000

In reply to Dale Ritch. So? Real estate is unaffordable for most native horns. Average gta home price is 10-11x average gross household income. The peak of the bubble in the late 80’s to early 90’s was 5x.

By: Dale Ritch

Dale Ritch — Sun, 11 Jun 2023 15:11:19 +0000

The ultra low interest rate policies of the BOC have created a real estate bubble which the BOC has now blown to smithereens!

New condo sales in the GTA have collapsed in the past 10 months soon to be followed by massive construction layoffs.

This will lead to another great depression in Canada!

By: Ike

Ike — Sat, 10 Jun 2023 07:21:30 +0000

Bye bye Liberals

By: Bob Vila

Bob Vila — Sat, 10 Jun 2023 01:47:37 +0000

Absolutely scathing commentary on central bank incompetence. One would hope this article crosses Paul Beaudry’s desk. All the misdirection from BoC seems intentional at this point. Omitting the obvious faults in his argument does not mean it is immune from you pointing them out.

By: YURIY

YURIY — Fri, 09 Jun 2023 22:34:20 +0000

Author of this article forgot to clarify reasons for inflation.
Reason number one!
Government irresponsible spending! Government sector is growing while private businesses are dying.
Reason number two.
Taxes! Carbon tax brings costs of goods and services up! Government control and regulate every aspect of business. Jobs are leaving Canada!