Happy Monday morning!
The risk is that naive buyers get long RE on the interest rate dip with out consideration to the possibility of a longer term secular cycle.
Despite the Kabuki theatre you see, central bankers always *follow* the bond market they’ve actively manipulated with
their bag of tricks and propaganda.
A currency devaluation or sovereign default would be catastrophic here !
The only way to stem capital out flows would be much higher interest rates and/ or more authoritarian policy measures.
Price is what you pay - Value is what you receive. The Risk vs. Reward calculus remains extremely poor !
Great post as usual. Best line...”condos under construction are mysteriously catching fire”.
I don't have any faith in Tiff or BoC. They have proven themselves incompetent. They do not have control over the external problems of the global meltdown... so I won't be betting on anything they say... in fact, I'll be shorting their predictions.
Great review/analysis Steve. Thanks again.
The risk is that naive buyers get long RE on the interest rate dip with out consideration to the possibility of a longer term secular cycle.
Despite the Kabuki theatre you see, central bankers always *follow* the bond market they’ve actively manipulated with
their bag of tricks and propaganda.
A currency devaluation or sovereign default would be catastrophic here !
The only way to stem capital out flows would be much higher interest rates and/ or more authoritarian policy measures.
Price is what you pay - Value is what you receive. The Risk vs. Reward calculus remains extremely poor !
Great post as usual. Best line...”condos under construction are mysteriously catching fire”.
I don't have any faith in Tiff or BoC. They have proven themselves incompetent. They do not have control over the external problems of the global meltdown... so I won't be betting on anything they say... in fact, I'll be shorting their predictions.
Great review/analysis Steve. Thanks again.