Comments on: Bank of Canada Is Misleading, Low Rates Drove Real Estate To Bubble Territory: BMO

By: JIMMY

JIMMY — Tue, 08 Mar 2022 20:20:09 +0000

Out-and-out gaslighting from the Bank of Canada they’re just like every government organization now they just get up there and blatantly lie they don’t even care anymore

By: lachman

lachman — Tue, 08 Mar 2022 07:53:28 +0000

better late than never,never late is better- Drake

By: Faisal

Faisal — Tue, 08 Mar 2022 01:17:46 +0000

Hey BoC, There is no supply you can provide to meet the demand when a country converts its real estate into an economy and allows investor whales to jack up prices. On top of it , you have foreign capital floating in which is also going into real estate instead of a proper industry. I am seeing so many houses nobody is living in. Investors are buying and parking them. Most buyers in my city Calgary these days are from outside the city. In a nutshell I do agree with banks on this.

By: Charles

Charles — Tue, 08 Mar 2022 00:45:53 +0000

In reply to RW. People uphold the incoming asset as the chicken laid the gold egg and also think the supply is low demand is high. When the chicken won't laid anymore gold egg people will surprise the chicken is tooooo much. As what I see, all invest property. All morgage fraud and risk everywhere.

By: Tammy Roggie

Tammy Roggie — Tue, 08 Mar 2022 00:23:58 +0000

As an average Canadian living in a formerly affordable area of Canada (Eastern Ontario), the real estate market and this economy disgusts us. Disgust is not too strong to describe the failure of this country to listen to and respond fairly to its citizens. We live in a city that has a 10 year wait for affordable housing! Perhaps you can try to imagine the conditions families find themselves in. People from the GTA flooded the market here beginning in 2020 and have driven prices beyond what most people in this area can afford. Our property tax rates and rents are on par with the GTA in an area known for high unemployment, a plethora of seasonal jobs, and stunned communities of people who are having to decide if their employment insurance, social assistance, or pitiful wages should pay rent/mortgage and outrageously priced utility bills or feed themselves and their families. Common decency and goodness fled this country a long time ago, not to be found in Parliament or in any of the business sectors, public or private. I believe that these people who make policy decisions and sit in their offices cut off from the reality of daily life for most Canadians should be given a “livable wage” of $2000 a month and then be forced to find safe, healthy places to live and ways to feed their families. What is the solution? There is nothing here that should surprise any Canadian as we look at what’s happening in this country, which is not anything close to the “land of the free”.

By: Scott

Scott — Mon, 07 Mar 2022 22:41:49 +0000

18-24 months before the effects are felt. There will be an election in 12-18 so the timing’s about right. Hard to believe there’s absolutely no government interference in all of this. Can the BOC be this bad?

By: Oldguy

Oldguy — Mon, 07 Mar 2022 19:37:49 +0000

I have been following all of this nonsense for years and can now conclude with certainty that the BofC, in conjunction with the government, have decided to support an inflation spiral for the foreseeable future. The consequences are too complicated to get into here, but there will always be winners and losers, and in this case folks on fixed incomes will be decimated. Of course, this will mean that the government will save these people with a few crumbs and they will be forever indebted.
Or maybe, just maybe, people will wake up and see how they are being managed.
Bit I doubt it. Sad.

By: Omar

Omar — Mon, 07 Mar 2022 19:22:44 +0000

This is a very salient point about investor demand. If low rates are driving demand for investors who will then add a premium to the cost of the housing supply they’ll add to market, isn’t that a credit inefficiency?

A wealthy person is being given more short-term debt to bid up the price of a home, and then charging a perpetual rent to the person they’re taking it from supported by the low interest rate making it profitable to squeeze the renter on purchase.

It’s predatory regardless of how this is processed.

By: Trader Jim

Trader Jim — Mon, 07 Mar 2022 19:19:32 +0000

We all have to admit that this is pretty funny to see a bank say they’re creating too many loans, what are you doing?

If demand doesn’t exist without ultra low interest rates, does it even really exist? People aren’t standing outside with their $800k deposit, unable to find a home.

By: Hugo

Hugo — Mon, 07 Mar 2022 19:17:33 +0000

The Bank of Canada might have been able to pull this ten years ago maybe, but everyone now has a pretty good understanding of how monetary policy works.

r/WallStreetBets is a generation of kids who realized the system was rigged and took advantage of these policies. Trying to put the cat in the bag by outright telling everyone it isn’t happening won’t go over well with anyone but those who interpret a monetary issues (which is non-partisan) as a partisan issue.

If the Bank of Canada is “independent,” then this is Tiff’s fault and no one else.