It is often lonely to be a contrarian. Bears who see the Canadian RE bubble for what it is are emotionally depleted and extremely frustrated. This bear exhaustion is sometimes taken by contrarians to be a sign of a market top. To be fair to the bullish argument, however, is to note that some bears in Vancouver have been exhausted for years.
This from Jonas at greaterfool.ca 30 Nov 2009 at 12:06 am –
“I was at a dinner party and a stupid couple that recently bought were there. Someone other than me had the sense to ask “What if the rates go up?”. (There is a god, I thought.) Then the morons actually said they think that rates will go down from here, and stay down for years. Give me strength and stop me from stabbing them both with my fork. I attempted to explain that rates were basically zero and Carney has already alluded to the plan that he will begin to raise rates at some point in the summer, but why fricking bother? About half of the people thought that prices will continue to rise as the economy continues to grow. I tried to explain that rates are historically low, will not go lower, and that incomes are flat to down, and that employment is down and getting worse. I asked them where they thought house prices would be when the variable rate is 5% and rising, and the fricking dumba$$ actually said higher. I swear to god it’s like living in a bad zombie movie. They are every where, stupid people without a brain that God gave a gnat. These will all be the same people with their hands out when the shit hits the fan, and [every] last one of them with a surprised stupid look on their faces will collectively say “Wow, huh… I didn’t see that one comin’”