My Carney Goes To Charlottetown
If our economy is so weak that it can only survive by keeping rates at less than 1% and forcing the prudent to abandon their ways, and join the speculators then we have really got ourselves in a mess. There is nothing else left in the bag of tricks.
That could be it for a while.
Low rates are theft. Plain and simple. It goes from savers who get nothing from their hard earned savings except devaluation, and is a gift to speculators and banks.
Meanwhile the Government is fretting about how little Canadians save for their retirement. is it any wonder?? When all they can get in a secure investment is a fraction of 1%?
The solution??? Increase CPP payments! And guess who is going to pay for that? You and I. So smoke, buy a gas guzzling truck, booze away to your hearts content..don't bother saving because the next generation, already encumbered by huge debts will carry your ass too!
Now in case you think I am just attacking working class free-loaders, here's some balance. One wealthy family moved $2 Billion out of the country in 1996, with the knowledge of the then Government who closed the loop-hole after it was done.
That's a Billion loonies they saved, and we lost, when a Billion loonies meant something. Anyone know who the family was?
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Meanwhile News1130 was touting an economist who said BC may experience stronger growth than the rest of Canada...I missed his/her name.
That would not be good for the bears. Interest rates are set based on what happens in central Canada. BC is seen as a boom or bust outlier and so weaker growth there and stronger growth here will NOT strengthen our cause.
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All is not lost bears. We have weakening house sales, rising inventory and flattening of prices. If this was a normal market-place...when inventory rises and sales goes down..what happens? Things go on sale! Not in the manipulated, CMHC, cash-back mortgages, zero rates world of housing.
This is the most manipulated market in the world. Unfortunately, we have not learnt from the US experience...Despite Greenspan and Bernanke's assurances that there was no housing bubble (didn't the B of C just say that too).. the bubble burst and the result was carnage. We are all destined to follow the American Experience it seems.
BTW some real estate bozo on the radio 'blamed' the drop in sales on the following:
1) Changing mortgage rules
2) Fear about rising rates
Like somehow, the Government did something wrong by trying (even now when the horse has bolted) to close the gate on excess.
No mention of lack of affordability and wages not keeping up with home prices.
Schiller, the God of RE, says wages and RE have to get back into historic line, which means another 10% drop in prices in the US. Where it puts us, I have no clue.
Lower sales, higher inventory, flat prices = 5th wave divergence in my book.
