In my opinion, I’ve been shocked at how resilient Canada’s condo market has been. Currently Canada faces worsening home ownership crisis with stalled condo sales, which stems from global deflation.
Joe Biden or “Bidenonomics” is basically a European style CORPORATIST economy that revolves around Federal governments in Western nations subsidizing what would otherwise be failing private business ventures.
Canada’s economy was designed poorly PRIOR to Justin Trudeau. However, Justin Trudeau accelerated the destruction of the Canadian economy at an accelerated pace because Justin Trudeau imagined that “economies fix themselves?
Before you imagine that Justin Trudeau is a one-off moronic Prime Minister, he’s really not; the problem is that Trudeau uses every political tool at his disposal to pursue his ideological objectives.
Canada and many other Western nations have a lot of DOMESTIC price control mechanisms, like the minimum wage law or the Rent controls. These price control mechanisms don’t allow PRICE DEFLATION.
So once the price or costs of things go over a certain threshold, inflation is inevitable, which equates to economic deflation because obviously wages can not keep pace with the Federal government borrowing money to cover its expenses.
Governments aren’t supposed to be in business; however, when they are, housing, which is a domestic, national problem, suffers the most. Canada is headed for an era of austerity; however, what’s unclear is what austerity will look like in Canada.
I’m not sure what a Pierre Polievre economy will look like, but in my opinion, Pierre Polievre or whoever becomes the next Prime Minister of Canada would be wise NOT to make any promises, especially now that Justin Trudeau and the Federal Liberals are very unpopular in Canada.
Canada is now competing with many countries that have a much lower cost of living, a much harder-working workforce, and a much smaller welfare state, so moving forward, Canada will have a difficult time attracting top talent, if drastic changes aren’t done to the Canadian economy.
a Condo market crash would be inevitable n Canada, however there’s a problem, it’s the price control mechanism known as the Canada Mortgage and Housing Corporation (CMHC) which is involved in the mortgage insurance, and bond markets.
Without government backing the CMHC is bankrupt as all at offers is the protection of investors that if there’s a housing market crash in Canada, the Canadian taxpayer is on the hook.
Well, in case you’re not paying attention, the Canadian taxpayer in 2024 can’t even finance the Justin Trudeau Federal government spending problem. The Federal deficit continues to rise in Canada, imagine if the housing market in Canada, crashed under those conditions?