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| 2008 Crash |
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| 2015 Crash is startin
CIBC just broke a 6 year uptrend. Last time this happened was in 2008, just before the US housing bubble exploded and nearly took out the Canadian market. Had the Fed not enacted the QE program, a deflationary collapse would have entailed.
The Fed has ended it’s QE program. Deflation is beginning to take over. Canada’s housing bubble will pop this summer when the Fed increases interest rates. The full effect will not be felt until the winter months. I fully expect 2016 to be a bloodbath for Canadian real estate. When this bubble pops, the last refuge of the middle class will go down. An era of zero-sum austerity will set in. Unless a new monetary system is formed, the crushing Canadian debt will become unserviceable and the currency will collapse. The game has changed. Canadians borrowing money to out bid each other on poorly built houses in overcrowded cities with no productive economic potential are coming to a close. What a silly waste of capital. |
