Canadian housing bubble and its economy may crash?
As a Canadian I think this country is screwed. Too many people not working and living good. A lot of workers can't compete with those getting .gov handouts.
The country can't afford this. I resent people having babies and getting $500 a month per child.
Canada's communist ideals aren't working. Everyone seems to be working for the government directly or indirectly.
July 13th, 2017 4:11pm
The best thing about canada may be there health care system where everything is free!
Even the $180,000 brain cancer treatment with radiation and chemo is free.
The down side is there is a 5 year waiting list to begin your cancer treatment.
July 13th, 2017 4:12pm
The monetary fund also said that financial stability risks could emerge if the housing correction is accompanied by a recession, but there was good news: the IMF noted that recent stress tests have shown Canadian banks could withstand a "significant loss" on their uninsured residential mortgage portfolio, in part because of high capital position.
Well, we are about to find out.
Meanwhile, house prices in Toronto and Vancouver have more than doubled since 2009 and the boom has fueled record household debt, a vulnerability that has also been noted by the Bank of Canada. As Reuters adds, some economists believe the rate hike this week was at least partly aimed at reducing financial system imbalances, which is admirable... the only problem is that the first casualty of a correction in imbalances will be the blue line in the chart at the top.
"The main risk on the domestic side is a sharp correction in the housing market that impairs bank balance sheets, triggers negative feedback loops in the economy, and increases contingent claims on the government," the IMF warned, sounding the loudest alarm yet on Canada's economy even if it was reiterating previous warnings about Canada's long housing boom.
There was another danger: Trump. The Fund also warned U.S. trade protectionism could hurt Canada's economy, and laid out a scenario for an increase in tariffs that could come with the renegotiation of the North American Free Trade Agreement. The IMF was also kind enough to quantify just how little it would take to send the local economy into a tailspin: the IMF said if the United States raises the average tariff on imports from Canada by 2.1 percentage points and there is no retaliation from Canada, there would be a short-term negative impact on real GDP of about 0.4%. Naturally, if tariff increases were higher, an outright recession was virtually guaranteed.
July 13th, 2017 4:14pm
> As a Canadian I think this country is screwed.
> Too many people not working and living good. A lot of workers can't compete with those getting .gov handouts. The country can't afford this. I resent people having babies and getting $500 a month per child.
...but this is bullshit. The real probably is that Canada doesn't have much in the way of actual industry. We're living off of foreign investment in real estate right now and it's insane.
We don't have an expense problem, we have an income problem.
> The down side is there is a 5 year waiting list to begin your cancer treatment.
That's not true at all; my Dad had stage 4 cancer and is fine now and he got treated promptly and effectively. There isn't some insanely long wait list for critical medical issues -- that's just propaganda from American's who desperately wish their non-system was in some way better than what the rest of the world has.
July 13th, 2017 5:13pm
I hope the bubble pops. I missed the boat 'cause I thought it was gonna pop five years ago.
Kenny the Robot
July 13th, 2017 5:40pm
@WR: You're Canadian? I thought you were from the US.
July 13th, 2017 8:31pm
Not Canadian. I just post a discussion from a stock trading group.
July 14th, 2017 9:30am