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Guest Post: Tough Day To Be Canadian
Via Kevin Muir of “The Macro Tourist” fame
Today is a tough day to be Canadian.
Coming just a few days after the Ontario government made the atrociously timed decision to impose a foreign buyer tax on Toronto real estate (The world’s worst market timer), this morning, alternative home lender, Home Capital Group, announced they were forced to borrow $2 billion at a 10% interest rate to fund their short term needs.
The stock market clubbed HCG’s stock price like a baby seal (I know, I
This may actually work out (or “work oat”, as you say in Ontario) well for Canada. Knucklehead half-wit Stephen Poloz can’t figure out how to pop the real estate bubble and keep the Loonie weak at the same time. This could be the solution. If the Loonie tanks against the USD, then Poloz can raise interest rates to get the Loonie back up to its current 75-ish cents USD. The higher CAD interest rates will tap the brakes on the real estate bubble without resorting to the foreign buyer tax.
Could be a win-win. If this falls into idiot Poloz’s lap, he might not be too dumb to take “yes” for an answer.