Real estate euphoria is a HUGE problem. How many people do you know that are WAY over their heads with debt. It’s extreme because of the leverage used. If you go to the casino and gamble $5000 and lose it, you lost the 5k. But in real estate, you’re playing with serious leverage. a small swing makes a lot of damage. But I’m just a pessimistic fear monger. Let’s just party like it’s 1999!
Real estate isn’t quite in subprime crisis mode. There’s no panic and chaos. But the fraudulent paperwork, trillions in derivatives, and rising interest rates are all apparent in most places around the world. Some cities that were climbing higher in a straight line have either stagnated or more than likely fallen to some degree. With real estate making up a growing percentage of economies in many countries, such reliance becomes a very dangerous as things slow down.
Shutdown highlights that 4 in 5 US workers live paycheck to paycheck
House prices fall at fastest rate in 35 years as credit tightens, sentiment slips
Bank of Canada holds interest rate: Official statement | Financial Post
Bank of Canada maintains overnight rate target at 1 ¾ per cent – Bank of Canada
Monetary Policy Report – January 2019
BMO Capital Markets sets TSX target of 17,000 for 2019 – Video – BNN