Quote:
Originally Posted by JRW
"The central bank listed the country's climbing level of household debt and its persistently overvalued real estate market as key vulnerabilities in the financial system."
Maybe not the best time to shop, when your own national central bank tells you it's worried about the possibility of a widespread housing price correction.
Let's see what happens when the oil goes down below $50/barrel again, which is still very possible.
http://www.ctvnews.ca/business/debt-...-boc-1.2417289 |
Any actual numbers being thrown around for a housing bubble correction?
It seems like every time these articles come out there's always a "it should burst but... It seems to be going higher"...
EDIT: Just read the article... Sort of misrepresenting what Poloz said...
"The report said the steep drop in crude prices had left the country more vulnerable to any significant event that would lead to widespread job losses and falling incomes.
Quote:
The consequences would reduce the ability of Canadians to service their ever-rising debt loads and could set off a widespread housing price correction, the bank warned. It identified the country's climbing level of household debt and its persistently overvalued real estate market as key vulnerabilities.
The review also pointed to particular weaknesses in the crude-producing region of Alberta, where the proportion of highly indebted households is among the highest in Canada.
The document, however, also noted how the oil slump on its own was unlikely to set off considerable systemic stress and the probability of a severe recession remained low. It also said financial reforms underway in Canada and abroad have put the Canadian system on better footing to absorb economic shocks."
|
So what he's saying is the low oil prices combined with the debt and housing bubble could be a problem in the event that some sort of major economic shock occurred that caused widespread job losses but that the low oil prices are unlikely to cause such a shock.
So really, nothing that a normal person couldn't tell you already. If sh*t hits the fan, we're all ####ed.