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At some point it cannot continue this way. I wonder what will happen when those empty houses suddenly cannot sell for more than their purchase price. Will peopl
by foepys 5y ago
At some point it cannot continue this way. I wonder what will happen when those empty houses suddenly cannot sell for more than their purchase price. Will people start living there because now they aren't a burden to the new owner? Or will the market promply crash so even moderately wealthy people will lose their previously overvalued houses because they cannot pay their mortgages anymore due to rising interests?
- onlyrealcuzzo 5y agoWhy can't it continue this way? You can expand credit forever. Interest rates can go negative. It is NOT a free market. The Bank of Canada controls the price of debt. Debt is the majority of the economy. It will obviously lead to a sicker and sicker and more unequal (and unfair) economy. But the Bank of Canada isn't really accountable to anyone. It could continue its path for at least the rest of our lifetimes, in theory.