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The BoC is relatively technocratic and they won't lower interests purely to help homeowners. However, given how much leverage Canadians carry, a shock to the ho
by ttul 3y ago
The BoC is relatively technocratic and they won't lower interests purely to help homeowners. However, given how much leverage Canadians carry, a shock to the housing sector would probably bring about a recession, which would force the bank to cut rates... at which point you do have to wonder whether house prices would just head back up to the stratosphere in short order.
- pcthrowaway 3y ago> at which point you do have to wonder whether house prices would just head back up to the stratosphere in short order Not sure why you're assuming they'd ever come back from the stratosphere in the first place. All another rate cut would do is untether housing prices entirely from earth's gravitational field, as they disappear into space, like the prospect of homeownership for most people.
- ttul 3y agoAnd then you have to wonder how long young Canadians will stay in the country, when better prospects can be had nearly anywhere else. Japan? Their housing costs have been falling for decades. How about almost anywhere in the USA? If you seek a high degree of social welfare, go to Finland. Canada is broken for young people. They should leave.