There’s lots of crazy stuff going on in the world these days, both global finance and geopolitics-wise, but one of the crazier elements of the former has been the continuation of what, for many years, has appeared to be an unstoppable asset bubble (yes, that’s an oxymoron) in Canada’s housing market that, recently, appears to be veering toward a pin.
This chart of home prices from Vikram Mansharamani serves as a timely reminder of how nuts it’s been north of the border and how much potential currently exists for an unpleasant change in direction for that light violet curve.
Surging household credit, soaring home prices, tumbling oil prices, and now an admissionby the Bank of Canada that they really don’t understand what’s been driving Canada’s housing market make this a situation that is just begging for a resolution of some sort.
Images: via Flickr (licence attribution)
About The Author
As you may have already deduced, this is not your typical financial blog, accompanied by some run-of-the-mill investment newsletter, and I’m not your typical financial writer.
In fact, I spent my entire working career as an engineer before retiring back in 2007 at the tender young age of 46. Two years prior to that in 2005 I started writing a blog – The Mess That Greenspan Made – mostly just to poke fun at the housing bubble and the policy makers who had led us down that path.
Details about the investment newsletter and information about the performance of the associated “model portfolio” can be found here and if there are any questions that I can help answer, just send mail to firstname.lastname@example.org.