"Canada's big housing markets in 'Goldilocks moment." CBC News, October 12, 2017
Mr Soper, president and CEO of Royal LePage also declared that Canadian housing is 'just right' if we are to use his metaphor:
Canadian housing is enjoying a Goldilocks moment — not too hot, and not too cold.
- Vancouver’s ‘renovictions’ driven in large part by vacate clause - via Business Vancouver August 2018
- New Westminster renovictions leave low-income renters feeling desperate - via CBC News June 2017
- Cook Street Victoria apartment tenants face ‘renovictions’ - via Times Colonist March 2017
- Tenants facing 'renoviction' went up against a powerful Vancouver developer and lost - via Metro September 2016
- Rent law changes coming, but not for ‘renovictions:’ Coleman - via Metro September 2016
- Renters of Vancouver: “It’s a new kind of renoviction” via Straight September 2016
Look for headlines soon to come out of Toronto documenting their experience of renovictions. Everyone has to pay more for housing now because of 9 years of ZIRP & NIRP
FROM Alberto Gallo, Bloomberg, August 2017
Economists are split on why inflation has lagged gains on growth and unemployment. The Fed has reassured low inflation is temporary, but many believe structural factors will keep inflation lower for longer than traditional models suggest. We are in that camp.
The scars left on the economy by the prolonged recession -- such as workers permanently dropping out of the workforce, new technologies that maximize sharing of existing resources, falling demographics, and a general weakening of labor bargaining -- are all responsible for keeping inflation subdued.
If inflation is likely to remain low due to structural factors, then QE may be less useful than previously thought. In fact, continuing QE can expose markets and the economy to two risks.
The first is that over time, persistent low interest rates may become self-defeating. Absent a fiscal policy stimulus, low interest rates may lose their impact or even become deflationary: aging populations save more to make up for lower returns, firms invest in new technologies employing fewer workers, and workers who were trained in sectors that were booming during the crisis remain permanently out of the workforce.
The second risk is that QE will generate dangerous side effects, including asset bubbles, rising wealth inequality, and a misallocation of resources in the economy. Negative or zero rate polices have pushed investors into search-for-yield strategies, distorting the risk premium in credit and volatility. QE has favored the haves over the have-nots, contributing to wealth inequality and to an asset-rich, wage-poor recovery.
Finally, NIRP/ZIRP can encourage resource misallocation by keeping alive zombie companies.
Capitalism Doesn't Work at 0%
"It would pay to travel to Mars because the returns here on Earth are very very low."
Bill Gross, June 2016