What is it to be? One day after appropriately scaring the socks off the populus with warnings regarding precarious debt levels, the CBC marches out a mortgagee and two shills to reassure everybody that it’s perfectly fine to keep fighting the good fight and piling on the ‘Good Debt’ (by buying even more RE).
Watch the end of the clip for the mortgagee interrogation. Convinced? Neither were we. Note the eye roll, the verbal hesitation, the faux ‘strong’ stance. He’d earlier called his debt “daunting”. Also note the quirky phrasing: “an investment for real estate doesn’t make me nervous”. More like some kind of sacrifice; like dying ‘for’ a cause.
And then, to confuse everybody further, the CBC ends the piece with a warning about the interest rate ‘Wild Card’. Perhaps they’ll retract that tomorrow.
Some nice drive-by shots of very overpriced Vancouver westside homes.
The wise are nervous at this point.
CBC’s ‘The National’, 14 Dec 2010, a follow up to a piece the previous day that had echoed the harsh words of warning from BOC Governor Mark Carney. Reproduced verbatim and in entirety. [hat-tip 'Re-diculous' at VCI] -
“Well we hope we didn’t scare some of you last night with that story of how Canadian’s now carry more debt than Americans, and how debt here is more weighted to mortgages than credit cards. Some actually call that “Good debt”, but is it putting Canadians in a bad position?”
“Like lots of small business owners, Kevin Barrett has to watch his finances carefully, and even though his personal debt is more than $300,000, he’s not too concerned because almost all of that is his mortgage on his condo”
[Barrett]: “The number is a little daunting to think about, sometimes, but I think about it long term, I try not to think about it today. I think about what it’s going to mean to me five, ten years from now.”
“Barrett is an example, say some experts, why rising debt levels in Canada shouldn’t necessarily cause alarm. He’s building equity in his home as it rises in value.”
[Hannomansing]: “Of course the wild card is interest rates. At historically low levels now, the BOC Governor has pointed out there is no guarantee how long they’ll stay there.”