Economy 52,861 Posted September 1, 2015 Share Posted September 1, 2015 http://www.macleans.ca/economy/economica--lysis/if-the-economy-worsens-get-ready-for-quantitative-easing/ Although Canadas housing bubble has reached gigantic proportions with an average house costing 9X of a typical median income (was 7X at peak of US housing crash) and general consumer debt reaching a wooping 166% of income... "Quantitative Easing" to force bond yields lower and make credit even cheaper is now on the table Even with mortgage rates at 2% Canadians are sacraficing RSPs and stretching themselves to the limit to buy real-estate and the housing bubble could pop at any time even without rates rising... With Canada now in recession and no end in sight to low oil prices, it was suggested by experts and even Bank of Canada that Canada may need to force credit even cheaper and sustain the credit and housing bubble for now to prevent a downward spiral until other sectors compensate even though the imbalances will keep getting worse. Link to post Share on other sites More sharing options...
Pablo 8,586 Posted September 1, 2015 Share Posted September 1, 2015 Scary, I remember the US crash and it wasn't pretty. Don't visit my profile Link to post Share on other sites More sharing options...
Economy 52,861 Posted September 1, 2015 Author Share Posted September 1, 2015 Scary, I remember the US crash and it wasn't pretty. Americans talking about our housing bubble Link to post Share on other sites More sharing options...
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