First up today is more bubble denial. Today's treatsie first came to me via our friends at VREAA (although I am told it was posted earlier on the chatboard Real Estate Talks by contibutor SethM).
Back on September 7th, 2010 Pierre Marchildon, of Marchildon Property Investment Partners, posted a video commentary, The Vancouver Real Estate “Bubble”. Marchildon dismisses all this bubble talk and explains how there are merely ups and downs in the market. No crash, no collapse.
“A bubble is when there is a major dramatic drop… but you can see there is a bunch of ups and downs on their way up. Every decade, real estate doubles… that’s the point of this exercise. Don’t try to time the market.”
Translation: Buy now or be priced out forever!
Here is Marchildon's analysis (and don't tell Pierre that the entire graph he's pointing to is the first half of the bubble)...
Meanwhile Gonzalo Lira has come out with another post on Hyperinflation titled "Was Stagflation in 1979 really Hyperinflation?"
As I said two days ago, the biggest and most confounding debate that's going on right now in all of finance is determining what the final outcome of the US Federal Reserve's market manipulative actions will be.
Once again Lira has made some interesting points and, if the topic interests you, I invite you to visit his blog and read his lengthy post.
Finally some insight from an article in Macleans magazine.
In an article in the latest issue titled 'Canada should take no solace from America's woes', comes these tidbits...
- Canadian economists Derek Holt and Gorica Djeric of Scotia Capital recently observed that most commentators are “overly sanguine with respect to the state of Canadian household finances.” Debt as a share of personal disposable income for Canadian households is at record levels, they note. While the U.S. reduces its household debt load through forced austerity measures, Canada’s number keeps getting bigger. And by some measures, the trajectory of house prices in Canada appears strikingly similar to that in the U.S. prior to the bust.
But that's okay, it's different here (TM).
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