Quote:
Originally Posted by Flash Walken
Because the assets can fluctuate wildly and are largely based on the massive real estate bubble in the country fueled by the arguably too-low interest rates.
How does asset accumulation happen without a corresponding increase in relative wage value? Debt.
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Source data - Source: Statistics Canada, BMO Capital Markets Economics
Source data - Statistics Canada, BMO Capital Markets Economics
Since we've had 25 years in this situation (falling interest as a % of income, asset value rising faster than debt), it's irrational to expect that this is a bubble that is due to pop.