Quote:
Originally Posted by Firebot
Those comments were made less then 2 years ago! He's deliberately caused a new asset bubble and these people bought into this bubble and are screwed now. The damage will be extraordinary.
The Bank of Canada head literally told people to go out and buy houses and take on historic debt to do it. The BoC directly misled many people into likely losing their houses and lose everything they have in the upcoming years. That's not scary?
Crypto investment most certainly can be part of an investment strategy in the long run, which is currently hampered by bans and limitations by Canadian banks. Is it a good idea to promote it to financially illiterate Canadians? No, but we just had the BoC telling the same financially illiterate Canadians to splurge on housing with debt.
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While I agree that they really screwed the pooch here by keeping rates so low for so long, did they really have the option to raise the rates while the USA and everyone else didn't? What would that have done?
I don't agree however that they are purely to blame, misleading Canadians into buying houses etc. That is on those people as well, the BoC simply contributed but are not 100% at fault here. It doesn't take much to realize that things were getting so heated that something was going to fall. Just 3 months ago literally everyone I knew thought I was stupid for not taking money out of my house for reno's, investment cash, etc at time of my renewal. If at any point you believed that housing has nowhere to go but up and rates will always be super cheap.... then I have a bridge to sell you. At what point will people ever accept personal responsibility for their choices? The BoC did not make people do anything, it was their choice to over leverage.