“Let me be provocative and say that our real estate bubble has the same fundamental problem as the one in the U.S., which exploded gloriously, kicking off the financial crisis.” …
“The proof is in the pudding. For the 150-year period starting in 1800 and concluding in 1950, real estate prices followed a flat trend, which put them, overtime, in line with the general inflation trend. Then, starting in mid-1970s, throughout the western world, this underlying trend ended. It was replaced with a price appreciation trend in excess of the underlying inflation trend and, for the first time in measured history, developed a multi-decade trend divergence between income and price.” …
“Considering the average Canadian consumer has the highest debt-to-earnings ratio in the OECD (155%), there are many reasons to question the underlying assumptions of the Canadian banking system.”
- Mike Brock, ‘The hidden Canadian housing bubble’, his ‘Full Comment’ article headlined at National Post, 4 Oct 2011
Hidden to many, but not to us. Right, readers?
Another expose getting MSM space, things may be changing.
Note the vitriol from the bubble-deniers in the comment section of the article. “Hogwash”, etc.