The Bank of Canada hiked a dovish 50bps this week, contrary to market expectations for a larger move. Is the Bank of Canada the first to throw in the towel? What are the implications for the Loonie? Meanwhile, new home sales are tanking in Canada, falling more than 90% in Toronto. Financial stability risks are increasing as we await another jumbo hike from the US Fed next week.
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Super Bock!!!!!!
I was listening a year ago Rich and I have managed to sell my house in Kelowna Bc at the peak and wait a bit to buy in Alberta, a smaller property cash. So now the question is, what do we do with our cash boys ? Nothing seems trustworthy right now.
The economy is falling apart because of stupidity & corruption for decades as well as the end of this fake fiat currency life cycle. The raising rates are just exposing it…not causing it. Get with the program…. #TheGreatReset #Gold #Silver #BTC #CashOutCanada
If you were such a genius & bought a $400,000 home for $1,000,000 you deserve to lose that home simply based on stupidity. Those of us with brains chilled & are waiting on the sidelines for those without brains to lose those homes…
Can’t fix stupid
Honveeeeeeerrrrrrrrrrr LOL. Great episode
It takes about 6 months to see the effect every time the Bank of Canada raises interest rates, so essentially, we haven't felt the effects yet from the last rate hike let alone this one.
Regarding Riche's recap about high investment in Canada in the real estate sector being a non productive investment, doesn't this happen as a consequence of the high rate of immigration which is due to the Liberal government's desire for a high rate of immigration?
properties are not valued based on mortgage prices. If the is an attractive long term fixed transferable mortgage on the property, that would affect value.
Here are a few points on why the market will crash next year due to large inventory and negative market sentiment.
Please prove me wrong….
1. Market sentiment will be at a all time low in March when the year over year data is -20+%.
2. Investors forced to sell there property. Most big market investors charge rent less than there Mortage payment, )cash negative month over month). They rely on house values going up 10-30% a year to make up for the monthly losses. Those days are gone.
3. Record high unemployment. With new construction sales down 96% in the GTA and 1% of the GTA are real estate agents, where are they going to work. We could see double digit unemployment summer 2023.
4. 40% all all home listing in the GTA took there house of the market. They will be relisting in spring 2023 when the realize that it isn’t going to get any better.
Look over hear, look over there, look at this but don’t you dare look at the actual issues. We are a commodity based economy that is under producing. Go back to a gold standard based on an actual FREE market pricing. BoC should be mothballed.
*Wave the white flag, not waive.
Good show, all. I think you're still overlooking how much shelter inflation is set to rise, even Rich who brings it up every time. All the consumer spending that gets redirected into rising mortgage payments? Won't register as a drop, because mortgage interest still counts as consumer spending in the Canadian CPI.
all mortgages are 100% fraudulent when you loan money from a bank its actually a mirror act of the loanee not of the bank's?
Rich sounds like he’s from Alberta 🙂
Gaz
BOC can just as easy step on the gas in December because it's the most expense time of the year causing inflation to rise, as well as cost of energy, then in January we could see other 0.50 to 0.75 if inflation stay up 6.9%, many are saying BOC will start to drop interest in 2023, I don't see this happing cause that would cause inflation to rise
You guys are amazing and doing a fab job… love keith’s sarcastic jokes and Rich aligning the puzzles with great facts and technicals. ✊
Rich with the Super Bock lol, cheers 🍻
Awesome show!!
I think kieth should get a double twinkie penalty next time
BoC pivoted?
Buddy is delusional!..lol!
You hate the starbucks frosting?? wow disappointed..
I am in the construction industry and our company does almost exclusively government funded projects. Schools, police stations, water treatment plants and things of that nature. We have not yet seen a slowdown. However government construction is usually lagging by 1 year as all projects go out for tender and close February/march. I expect to see last years projects still go ahead and next year’s projects slow. This will lead to job losses 18 months out.
Rich, let’s not forget that while energy policy has a significant impact on the cost of energy, OPEC has ultimate control when it comes to the price of oil.
I’m in the building trades in BC, new build spec starts have stopped! We are finishing current projects, 3-6 months out will really show how painful this will become. Our economy doesn’t work with5-6% rates. Hold on to your hat!
Great show boys!
Rates are not too high, conversely the problem is people who have borrowed more than they can afford to.Another problem is most people that purchase a home are gifted money to purchase that home, which means they can't afford that home. Neither of these groups mind the fake profits when QE is at its height .