Looking at the press on the “tweaking” of the mortgage rules you have once again the Canadian spin on the world. Everything will be fine. Don’t worry. Be happy. Years ago a friend of mine told me that Canada is a plantation with kind masters taking care of the people that need taking care of. How true it is.
“If you’re worried that housing prices are too high, the single rate that the Bank of Canada targets is too blunt an instrument,” says University of British Columbia economist Tom Davidoff.
Great to see this commentary from Professor Davidoff. This is commonly referred to as a meaningless statement. Interest rates have historically been used to adjust the economic temperature. There is nothing new here and it has now become a blunt instrument. These guys prefer the incessant tweaking that has gotten the Canadian economy absolutely nowhere.
The Canadian government has gotten us into this conundrum. The economy stubbornly refuses to grow. And the Bank of Canada has a great talent for finding excuses for it. Whether it’s the fires in Northern Alberta, Donald Trump and whatever excuse they can create. Where is the Prime Minister on all this? Nowhere to be seen.
Of course, Poloz was speaking before last night’s presidential debate, but in his Monetary Policy Report, the bank governor drew a dotted line from poorer-than-expected Canadian exports to low business investment in the U.S. to uncertainty over American politics.
Wow. Can Poloz never take responsibility for anything? Dump it on the Americans, dump it on Trump. Meanwhile, the US stock markets are stable and from time to time bumping into new high, Canada languishes.
These guys are great at passing the buck.
As to real estate, it is overpriced. It is too expensive, it is out of control because of the wrong-headed policies of the Government of Canada.
When will they ever learn, when will they ever learn. Sounds like an old song.
Good luck to us Canadians, we are going to need it with this lame government and even lamer central bank.