“Our province is a place of relative calm and stability, but we are surrounded in almost every corner of the world by economic turmoil” – BC Premier Christy Clark [The Vancouver Sun, 23 Sep 2011], unveiling a plan she hopes will make BC “one of the country’s fastest-growing economies by 2015″.
“We’re caught up in a very challenging global economic situation. We are in for a rough time and the provincial government can’t fix that.” - Jock Finlayson, economist for the Business Council of B.C., G&M, 18 Sep 2011
The world is experiencing deflationary effects that are the result of forces related to the deleveraging of excessive debt. BC has thus far largely remained blissfully removed, by virtue of having kept the speculative mania in RE going, by ongoing debt-fueled consumption, and by importing money. We can’t see how local RE related activity can insulate us for much longer. BC will, unfortunately, be swept up in the wave. This will occur regardless of local policy; the forces are simply too great for relatively minor ‘in house’ adjustments to alter the course of much larger external forces. This decade, a Real Estate bear market will be Vancouver’s defining social and economic event. – vreaa