Don Coxe: “I see a price bubble.” … Nicole Foss: “Me too, a very big one. I could see real estate falling 90%.”

For the chronological record, a bearish commentary (Coxe) and an ultra-bearish prediction (Foss) made the blogosphere news today:


“Canada continues to experience a real estate bubble” – Don Coxe, Coxe Advisors, Chicago [In ‘Basic Points’, 15 Dec 2010, distributed by BMO Capital Markets]


“We are in a massive bubble and there will be an enormous comeuppance. Canadians are tremendously in debt.” … “I could see real estate falling 90%”Nicole Foss, of the Agri-Energy Producers’ Association of Ontario, and author of The Automatic Earth blog, on Max Keiser’s Keiser Report (E105), Dec 2010

[We think 90%-off is too bearish. But the direction is correct, as is the concern that there are big challenges ahead. FTR, our estimates are 50-66% off for Vancouver. -vreaa]

3 responses to “Don Coxe: “I see a price bubble.” … Nicole Foss: “Me too, a very big one. I could see real estate falling 90%.”

  1. I would say that because Nicole Foss’ is esentially negative on everything thats a bit of a red flag for bad advice/bias.

    • I think I understand what you’re saying, but I’m not sure that it logically follows.
      Foss is an extreme deflationist, she foresees a second Great Depression, where all assets suffer very large price drops, and cash rules. Her arguments are internally consistent, rather than the result of her simply being pessimistic about everything.
      In other words, her being “negative on everything” has a rationale. She foresees outstanding debt overwhelming everything. It is a prediction that one may disagree with, but, if you do, you should best have good reasons for disagreeing.

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