Mike Shedlock – “I get taunts from Canadian readers all the time. 100% without a doubt, Canada is in the midst of an immense housing bubble.”

“All major Canadian exports including energy, autos, agriculture, forest products and machinery-and-equipment collapsed in the latest report. Canadian analysts are shocked by the news. I sure am not. For my reason, look at happenings in China, a huge recession in Europe, and even a recession in the US that surprisingly few have even figured out yet.” …
“100% without a doubt, Canada is in the midst of an immense housing bubble. The Canadian bubble outlasted bubbles in China and Australia. Because it did, I get taunts from Canadian readers all the time.
I received one just yesterday. It went something like this “So Mish, where’s your Canada Housing Collapse?”
The answer, as always is “I don’t know”. That said, bubbles pop by definition. Moreover, the longer the bubble lasts, the bigger the implosion.
Australia is in the midst of a big property bubble collapse, a big retail collapse, and a big export mining collapse all at the same time.
Canada will follow suit at some point and given taunts out of the blue, now is as good a time as any.”

– from ‘Canadian Exports Collapse, Expect Plunge in GDP; China Factor; US Recession Factor’, Mike Shedlock, Global Economic Analysis, 11 Sep 2012

There is no doubt that the Vancouver RE market represents a bubble.
– vreaa

12 responses to “Mike Shedlock – “I get taunts from Canadian readers all the time. 100% without a doubt, Canada is in the midst of an immense housing bubble.”

  1. “There is no doubt that the Vancouver RE market represents a bubble”

    I think it’s more complicated than that but I have little doubt Vancouver is in a “bubble”. I write about it here:
    http://housing-analysis.blogspot.ca/2012/09/bubbles-valuations-and-speculation.html

    • It’s not that complicated at all. Prices have completely run away from fundamentals, that’s a speculative bubble and it will only end with a burst.

    • jesse -> Nice article, thanks for the link.
      As I think I’ve mentioned before, I have my own article on ‘speculation’ that has been brewing (festering?) for many months now… will have to finish it and kick it out the door… should complement yours nicely.

      • Some people over at VCI don’t like McBride’s definition of a “bubble”. I cannot attest to know any better but even under his stricter definition it isn’t looking too good for the deniers.

  2. Canada has a bubble for sure. But for exports of oil and gold, I think we will have no problems exporting cuz the prices will stay high. Australia has LNG, which is quite cheap right now.

    • About those oil exports…Alberta is not getting the world price from exports to the US because of a surplus in the Midwest. And if BC gets it’s way to prevent any new pipelines or even pipeline expansion not much oil will be going to China.
      With increasing US domestic oil production and falling consumption with their recession don’t bet on oil exports saving Canada

      • Wait until the next provincial election. The pipeline issue is just political fodder. Anything that can be blamed on Albertans and/or oil companies is easy pickings for BC politicians.

  3. Hmmm…. Speaking of ‘Bubbles’… our VeryGoodFriends in HongKongOCTS™ [OneCountryTwoSystems] … have been having rather a lot of fun with today [OK Ed, I know, yesterday]…

    …with Bubbles!

    [ChinaDaily] – Bubble show wows Hong Kong people

    http://tinyurl.com/9u2287v

    [NoteToEd: “Bubbles” – not to be confused with Michael Jackson’s former ChimpanzeeCompanion {now suicidal, apparently} – nor Ronald Reagan’s SceneStealingSimian CoStar; who, for all you MonkeyFans who do not troll TurnerClassics in the WeeHours, was Bonzo…]

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s