ALWAYS CONSULT YOUR INVESTMENT PROFESSIONAL BEFORE MAKING ANY INVESTMENT DECISION
September 14, 2022 | Lower Prices Improve Affordability and Investment Prospects
Well before the rate increases this year, many would-be investment properties had rents insufficient to cover expenses, and owners were subsidizing the negative carry in hopes that capital gains would more than repay their costs over time. This helpful calculator allows us to compare relative numbers. In February 2022, with the average Canadian national sale price of […]
September 13, 2022 | EPB Macro: The Compounding Cost of Short-Term Thinking
This video offers an excellent overview of the compounding cost of short-termism and entitlement thinking in a world of corporations and households who expect endless government support and lower taxes. The U.S. Government is facing some serious fiscal and monetary issues that don’t seem to have a positive outcome. In this video we will see […]
September 12, 2022 | World’s Hottest Housing Markets Face Painful Reset
The rapid cooldown in real estate threatens to worsen a global economic downturn and is emerging as a key variable for central bankers who want to tamp down inflation. Here is a direct video link. Also, see The World’s Hottest Housing Markets Face a Painful Reset In Australia and Canada — two of the world’s bubbliest markets […]
September 10, 2022 | Synchronous Global Housing Downturn
This segment offers a good overview of the global housing downturn. Rather than thinking of it as a housing “crash” though, realists can see it as an inevitable mean reversion cycle following a massive speculative bubble. Home Prices across America are DROPPING FAST, according to New Data from Redfin. Metros like Austin, Dallas, San Jose, […]
September 9, 2022 | Mortgage Stress is International Saga
Recent Canadian mortgage data compiled by the Bank of Montreal gives a glimpse at the rate of change afoot for many Canadian property owners: Some 20% of all Canadian mortgages outstanding ($260 billion) are variable rate loans taken out near the interest lows at 1.5% into February 2022. With rates on offer now closer to 5%, many […]
September 8, 2022 | Desjardins: Canada the Most Debt Sensitive Economy in the World
Canada comes into this global downturn with a world-leading real estate bubble (property values accounting for some two-thirds of household net worth) and record-private debt levels at a whopping $7 trillion (households and businesses) in an economy tracking about $2.6 trillion in GDP. A bursting debt bubble in a poorly diversified economy largely dependent on […]
September 7, 2022 | Debunking the Volcker Myth
The USD Index (DXY shown below since 1980) above 110 this morning is a 20-year high not seen since April 2002. The Euro (58% of the dollar index) is below par and at the lowest since July 2002, while the Japanese Yen (14%) is at the lowest since 1998, and the British Pound (12%) is […]
September 6, 2022 | Quantitative Tightening is Supposed to Step up 5.5x This Month
Happy September!! Starting now, the US Fed is to run off its balance sheet (reduce liquidity in the banking system via ‘Quantitative Tapering’) by $95 billion a month–double the amount they were supposed to have been withdrawing (QT) since the start of June. In reality, though, rather than shrink its holdings by $45 billion a […]