Sunday, August 23, 2015

It's simple math - be it for our housing bubble or the American National Debt

When it comes to our housing bubble, it's simple math.

Any boom created by excess credit will always bust. And our housing boom was created by excess credit.  CMHC has gone from $100 Billion in 2006 to $600 Billion today.

Canadians are in debt to an extent never before seen in Canadian history.Much of this debt is invested in home ownership.

In 1980 the ratio of household debt to personal disposable income was 66%; that ratio is now in excess of 164%.

It doesn't require a sage to foresee where we are headed.


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  1. Wow, welcome back!!

  2. Was a bit surprised to see an entry - welcome back!

  3. Wow, where did everyone go?

  4. Welcome back and exactly, massive amounts of debt blew the air in this bubble and pressure to pay back that debt will cause the bubble to burst

  5. you're not dead? i thought the real estate cartel silenced you!

  6. FYI: If you think that one blog post every 8 or 10 months will maintain any significant following, it won't.

    The only reason I noticed this entry was because I am going through my stale links to delete them...which I'll bet most people did several one months ago.

  7. Not sure if you are on sabbatical or letting things slide, but I Googled foreclosure properties which brought me back to your blog. Hope you are ok...

    The problem I have with "bubble" theory, is the investment horizon of the prophets. Was it a bubble back when we first interacted in 2012? in 2013? 2014? 2015? or, did we all not take a long enough view. As it is said by economists: "if I am wrong, the horizon was not long enough, but I will eventually be right". In the mean time, many people made a whole lot of money whilst the bears bitched.

    You may be a lot closer to being right now than at any previous time. But it is still nuts out there.