After telling us for a year there would be a surplus, then a small deficit, then a moderately large deficit, the Harper Government finally had to come out and told the truth. We are heading into an enormous $50 Billion hole, and very likely don't know is that is the bottom either.
The 'good news' was that big chunks of money were being rapidly dispatched from Ottawa to build things that we may or may not need.
Add this to the Provincial debts, and in one year , we are back to the Mulroney days of unsustainable deficits.
Such is human nature- here in Canada and everywhere. When things are hot, the politicians take the credit, when they are not they point at the sad state of affairs in the world as the cause.
When the asset rise was red hot, they did nothing but watch and in fact made sure fiscal measures where so lax as to ignite the asset fire even more.
Now that the pyramid has collapsed of it's own weight, they are doing the only thing they know how, which is throw more money at it.
Back to housing. Housing is just one asset. As you noticed all assets have been roaring back since March...RE, stocks, Oil , copper and gold. They were in free-fall. This is a good thing, the alternative is that we all KYAGB. However I think this is an interlude. I don't think this is a new bull market in any of these assets.
When things go up, we can see nothing but blue skies ahead, when they dropping, we see the pits of despair. Such is human nature.
No one can deny that RE has shown strength for the last 3-4 months and prices have stabilised. Some buyer's have got panicked into bidding wars, buying well over listed. Where they smart? In a few months we will find out.