Comments on: The Bank of Canada Has Been Studying If Telling People A Bubble Exists Makes It Worse

By: Rene Albert

Rene Albert — Sun, 11 Jul 2021 01:02:33 +0000

In my opinion, the bubble in housing and stock markets will burst as it is based on pure hype and greed and not sustainable. Before the Great Depression about a century ago few people believed it could happen, and the same applies now…

By: D

Sat, 10 Jul 2021 22:35:11 +0000

In reply to David. The CCP wants deflation. They have the money to buy up everything in a deflation.

By: Paul

Paul — Sat, 10 Jul 2021 22:28:28 +0000

In reply to David. ⬆️ Someone is worried about not making enough money on the sale of property…

By: Dar Robbins

Dar Robbins — Sat, 10 Jul 2021 12:08:19 +0000

In Central Banking parlance: To lie or not to lie, that is the question.

By: Bob Walter

Bob Walter — Sat, 10 Jul 2021 03:08:21 +0000

If a purchase an overpriced house and nobody talks about it, its not a bubble. Genius.

I guess if people don’t talk about their mortgage payments either that is not going to be a problem in the future either.

By: David

David — Sat, 10 Jul 2021 02:40:01 +0000

The price of housing is in canadian dollars, CAD are backed by trust in the Canadian government.

In the last year+ the bank of canada has increased the amount of canadian dollars in existence by 500%+, (google “m0 money supply canada”, look at 10 year and 25 year graphs, m0 is canadian dollars in existence, easy to google to confirm)

In last year+ the canadian government has been going in debt per month what used to be considered bad amount to go per year. It isn’t really government printing money to pay for the debt like what brought Germany 1920s to hyperinflation, but even dumber… the banks buy the canadian bonds from canadian government then quickly resell them back to bank of canada for a small profit, so government is really paying others a commision (making private bankers richer) to print money to pay for the debt.

Housing is a bubble because the alternative, cash/currency is also a bubble. US, EU are doing similar creating vast amounts of money out of thin air.

Meanwhile China, Russia, Sweden are not creating vast amounts of money or going crazy into debt… so they will likely benefit. China is doing more trading than US, and the gap has widened lots in last year+ with covid, so good chance China Yuan will replace USD as the reserve currency which will make the people of China 10%+ richer, the people of US 10%+ poorer and give China the 2% business competitive advantage that US used to have for not needing to convert currency when doing international trading.

In real value, Canadian housing may go down in value, but likely not as fast as canadian currency will go down. One downside of housing, if you don’t live in the house you own… in canada capital gains taxes (including on housing) is not indexed to inflation like US, so if crazy inflation, you will be paying lots of taxes on increase of house value if you sell even if value of house really went down because of inflation.

By: Jupiter

Jupiter — Fri, 09 Jul 2021 22:42:22 +0000

Toronto and Vancouver are huge bubbles, but there are other cities with higher median income with way lower prices. The government will not raise rates because unemployment rate is still horrible. Which means, its a better idea to invest in other cities where the median income is higher. They have the potential to see greater gain than Toronto.

By: Tom Wolfe

Tom Wolfe — Fri, 09 Jul 2021 21:46:17 +0000

In reply to Tom Wolfe. Like a junkie that needs a fix - the problem isn’t just going to go away regardless of wagging fingers, warnings, or expectations.

By: Tom Wolfe

Tom Wolfe — Fri, 09 Jul 2021 21:24:39 +0000

In reply to Gerald Haw. I agree it may lower expectations but, as I see it, the problem is now fulfilling an unsustainable need. #snowball

By: D

Fri, 09 Jul 2021 20:58:45 +0000

Indirect admission by the BOC of what’s going on.