canada

Trader: This Market Is Sending An Important Message About How Bubbles Are Treated Since 2008

"So yeah, maybe Canadian housing is stupidly overpriced, but so is almost every asset under the sun. "

"So yeah, maybe Canadian housing is stupidly overpriced, but so is almost every asset under the sun. "
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2 comments on “Trader: This Market Is Sending An Important Message About How Bubbles Are Treated Since 2008

  1. and the best way to short it?
    currently short WBK. same issue as above.
    sb

  2. I’m not sure that this author has ever attempted to buy a home in a housing market like the one in BC. It can be really tough to buy a home in markets like that because regular buyers (people financing a home to live in) are forced to compete with folks who can pay cash and are willing to forgo the usual inspections and repairs that are involved in a financed purchase. Raising interest rates would just make it that much tougher for regular people to buy a house in BC.

    I agree with the author that this policy may cause speculators to leave the market. However, I think that’s a great thing. It’s honesty getting to a point that there are whole cities that regular people simply can’t afford to live in. I often wonder how places like San Francisco are going to continue to function if housing prices continue to rise. How in the hell do you continue to provide services that rely on low wage labor if there’s no place for those laborers to live?

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