Time for your cheat sheet on this week’s top stories.
Canadian Real Estate
What Canadian Real Estate Correction? Detached Market Surges Up To $52k Higher
Canadian real estate is showing signs of a firming market. The price of a typical single-family home across Canada fell 1.2% to $748,800 in December. Five markets bucked the trend, with Oakville-Milton seeing prices surge $50,000 higher. Just five markets and a single month, doesn’t make a trend. However, a big jump in home prices bucks the intentions of tighter monetary policy. It’s a big problem for the Bank of Canada, that’s desperately trying to cool expectations.
Canadian Real Estate Prices Expected To Fall Further: Bank of Canada
The Bank of Canada revealed they expect home prices to fall further in the near term. In its latest Monetary Policy Report, they shared their view that housing will be weak in the near term. Higher interest rates cool demand, limiting credit leverage. The reduced activity is forecast to drag GDP growth this year, and return to mild growth next year.
Bank of Canada Raises Rates, “Conditional Pause” Due To Strong Economy
The Bank of Canada raised interest rates to combat the overheated economy. A full rate hike of 0.25 points was made on Wednesday, bringing the overnight rate to 4.25 percent. The central bank said they’ll be pausing at this level, which is tied for the highest level in a generation. They warn the pause is conditional, pending ambitious targets for inflation reduction.
Canadian New Home Prices Stall, Stat Can Makes Baseless Bullish Price Forecast
Canadian new home prices stalled in December, according to the national statistics agency. The stall has helped to decelerate annual growth, though it does still show growth. More interesting was the agency sharing the belief home prices will rise in the second half of the year. The forecast didn’t provide much reason as to why they see the trend reversing. It also bucks most forecasts and historical data regarding these circumstances.
The Housing Market Explained By The Fed’s Bubble Expert
This week we interviewed Enrique Martinez-Garcia, the US Federal Reserve’s housing bubble expert. He took time from his role doing cutting edge bubble research, and broke down the current market for us. He also dives into the role of credit and immigration when it comes to home prices, and disassembles some myths.
Bank of Canada To Hike Rates, Leave Door Open For More: BMO
BMO Capital Markets is telling investors not to discount the possibility of future interest rate hikes. Earlier this week, they correctly forecast the BoC will raise the overnight rate by 0.25 points. The market is now expecting rate cuts, but BMO warned not so fast. If markets expect falling rates before inflation calms, it can be counterproductive. In this case, the BoC might be forced to hike rates again, the bank explained to investors. In other words, this might be the last rate hike, but don’t count on that.
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Once again the government is downloading its Canadian housing, inflation, and credit dilemma into Joe Public’s lap instead of going after the real culprits. The lack of affordable housing has been caused by providers of home building supplies, ie., jacking up of lumber prices without justifiable cause which lead to a cascading effect where other building supplies went up in consequence.
Then we have the BANK OF CANAD blaming Joe Public for the housing crises, but the B of C refuses to see that it is one of the main reasons that we have a high rate of inflation due to its lackadaisical attitude towards credit, and deceptive encouragement for mortgages. The B of C was lowering mortgage rates and keeping them low on purpose even to the point of encouraging people to take out mortgages as if the rates were going to remain low for a long time and if they were to go up it wouldn’t be by much, this is commonly known as entrapment. There should be a class action suite filled against the B of C and the Banks by the people who have variable rate mortgages as well as the people who had to and have to renew their existing mortgages to a reasonable fixed rate.
The B of C never tells us what the credit card debt is, credit card rates of 20% + which at one time were considered criminal are now taking place with the B of C and government blessing, how much of this credit debt is contributing to our rate of inflation? Why is it being allowed? And why are the once criminal usurious rates being allowed, why aren’t they pegged to the rate the banks pay their depositors, that would be more justifiable, in reality a more reasonable credit card rate of 2 x the mortgage rate would be morally more justifiable. Here morally a class action suite would be justified for the B of C and lending institutions lack of morals and insistence of stealing from Joe Public. Why is it that if one wants a mortgage there are all kinds of barriers before one can qualify for a mortgage yet if one wants a credit card one can have multiple cards without credit checks?
The smart credit card defrauder can screw the system so easily it makes one’s head spin …. get multiple credit cards then go on a money, silver & gold coin and stamp buying spree then declare bankruptcy, wait for your probationary period to run out the start all over again, I’ve seen it done.
The government and the law turn a blind eye to this because the B of C, Banks, and credit card issuers make easy profits at the cost of Joe Public.
Then we have energy producing companies and food wholesalers and distributers, and transportation companies who are allowed to raise their prices without any government restrictions, are these peoples charges $$$$ immune to our rate of inflation? Why the blind eye by the government? Now the biggest problem with affordable housing is that contractors have become greedy and lazy, instead of building 50 affordable units a year, they prefer to build 10 high end homes and charge what 50 units would cost or more for less financial and labor input. This is where the different levels of government could step in and issue building permits ie., for every 5 or 10 units of affordable housing built, a contractor is allowed to build 1 or 2 luxurious homes, as it is the contractors have no incentive to build affordable housing. The only way around that is issuance of building permits upon completion of affordable housing. Meaning if a contractor or builder wants to put up a mega condo or luxurious homes then he first has to completely build an allotted number of affordable housing units before he can build his allotted permit mega condos or luxurious homes.
Why is it that the Government chooses to blame Joe Public for our economic problems, Joe Publics real salary has not gone up since 1972 but if we look at Joe Publics the cost of living versus his real take home pay Joe Public has a hard time to make ends meet but if one looks at the 1% swamp and multinationals, their profits have gone up shamelessly since the late 1950’s and 1960’s. Why?
Because the 1% swamp and multinationals have lobbied our governments ( our elected members of government, the enablers of the 1% swamp and multinationals) into changing laws ( checks and balances ) to favour the 1% swamp and multinationals at the expense of Joe Public.
Shouldn’t we be asking questions like in the 1950’s taxes on profits were as high as 90% and now in many cases there is a minimal tax or no tax at all, why, where is that difference coming from? Joe Public!
Why isn’t Joe Public getting a better break? Why isn’t there universal complete health care? Why isn’t education better and free? Why are Joe Publics taxes so high and when compared, the 1% swamp and multinationals are so low or nonexistent?
It’s because the 1% swamp and multinationals and ( our elected members of government, the enablers ) work hand in hand to weaken Joe Public ( they have destroyed the unions ) to the point that Joe Public no longer has a voice and is subservient to the government, ( elected government members, the enablers of the 1% swamp and multinationals ), the 1% swamp and multinationals.
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