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Originally Posted by MacDougalbry
Yes, but oil has been up there for a while now. What happened starting last August to drive housing prices up by 43% year over year? Also , a collapse of the housing market in the states is sure to bring on a fairly painful recession down there; which will definitely impact the price of oil in some way.
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The US is not the only country with massive oil demands. Unless we see a global recession, having a slowdown in the US might have a short term impact on global prices but longterm it should stabilize(IMO). Although I don't have figures in front of me, China alone is probably at par with the US (or will be shortly) as far as demand goes, and when you add that to India's requirements the US is far from the only place we can send our resources. The US is the most convenient place for us to do business, but if the market dried up there would be countries literally lining up to set up in Alberta. 10-15 years ago I might be worried about it, but not now.
I agree with what you're saying about leveraging your home equity though.....it works great in a hot market but if that market goes south get ready for a lot of bankruptcies. I wonder how much money is floating around because of all the HELOC's that were utilized to buy new boats, cars, cottages, businesses, etc etc? Even a slight downturn in housing prices could cause problems that could cause ripple effects throughout the province......
Thinking out loud here, but it's possible, no?