Risk Of A Canadian Debt Crisis Has Come Down. A Lot. – The Real Estate Lobby Strikes Again! – March 13, 2019
It should be apparent to Canadians that the real estate lobby groups are in full swing trying to prop up the Canadian housing market, which for the most part has been exposed for fraud. It’s no secret that foreign investment into Canada’s real estate market is shrinking, home purchases for actual residents who plan to live in the homes they buy have remained steady all through this housing boom, sure I’d argue many of them paid too much, but that’s on them. What the real estate lobby is fearful of are the speculators in the housing market.
Why is Stephen Poloz not raising interest rates? Because speculators all those morons who the Real estate lobby is fighting for, all those idiots who are buying condos Canadians don’t want in hopes they’ll be able to flip them for a profit later, those morons who in many instances are domestic flippers who are using foreign capital in some capacity, these people are the ones the real estate lobby is fearful of, because when the market crashes, eventually the numbers are going to come out that most of the people who will be walking away from their homes and condos will be so-called real estate investors who simply can’t pay their mortgage bills.
I’ve been saying the same thing for years, stagnation is coming to Canada, even if the real estate lobby gets its way, stagnation is coming to Canada, the reason why the BoC is talking about Crown Corporations which is a topic I write about in almost all of my posts is because crown corporations CMHC being one of them aren’t reflective of the actual free market. Had CMHC not been insuring mortgages we’d have a different type of housing market, in New York and L.A, for example, they have a housing boom, but there exists no equivalent to CMHC in those 2 U.S States, furthermore Canada has a very strong banking system, it’s not uncommon for Americans to have 2 and 3 mortgages, because the Banking system in America isn’t full-blown Keynesian like Canada.
The American market is very different from Canadas, our Crown Corporate culture distorts not only job numbers but actual market numbers also. Stephen Poloz isn’t so much caring about the speculators in the Canadian housing market as much as he’s thinking about actual families whose debt servicing would skyrocket in the event he raised interest rates, yet and still and this is what the real estate Lobby doesn’t understand, it’s becoming increasingly apparent that Donald Trumps America is heading for recession.
Real estate boom right? Wrong! Again Crown Corporations don’t build anything, crown corporations actual inflate prices for everything, via CMHC the Canadian housing market is artificially inflated, via LCBO in Ontario, the price of liquor is artificially inflated, via Canada Post, the price for mail and parcels are artificially high because no courier company is legally able to compete with them.
In America no such equivalent exists and guess what, they’re still having economic problems, what the real estate Lobby isn’t understanding is that the run they had is going to get really ugly when the U.S market slows. Manufacturing jobs are leaving Canada at a record pace and they’re being replaced by the public sector and service sector jobs. What this means is Canada isn’t manufacturing anything that the world needs, this is going to push a lot of pressure not only on the BoC but also on Canada’s banks to show the world what they’re made of.
What’s likely going to happen is inflation, but not artificial inflation caused by Poloz lowering interest rates for really no good reason, which actually helped to fuel the real estate lobby’s desire to take debt to the Japanese zombie economy extremes, no I’m writing about real inflation caused by deficits, and the reality that will soon be realised by the market that Canada will not be able to pay its bills.
Sure the BoC can hold rates steady or even lower them, but real inflation means that prices will go up for everything imported, which of course means that even if a person is able to qualify for a mortgage because standards have been loosened, chances are they won’t be able to service that mortgage or buy other things, you know like other essentials like food, if the Canadian economy gets real inflation and the BoC doesn’t raise interest rates, it’s going to get really ugly and the hardest hit will be the real estate flippers. Below is a Huffington Post article I consider to be propaganda!
Risk Of A Canadian Debt Crisis Has Come Down. A Lot. – Huffington Post
interesting times ahead