Happy Monday Morning! In what seems like a recurring theme of late, inflation came in hotter than expected in the US this past week. Consumer prices increased 0.4% for the month and 3.2% from a year ago. Meanwhile, core CPI rose 0.4% on the month and was up 3.8% year-over-year. The last mile on getting inflation back within the feds 2% target is proving increasingly difficult.
Our son just graduated from university and even with what I would call a decent starting salary, he is completely defeated about any prospect of owning his own home. And there's not much he can do about it. I have suggested he think about leaving the country if he wants to get ahead. What a sad state of affairs.
It has to end badly and crush the groups that caused / created this. There is no easy way to fix this with out severe decline and reset. When the bond market decides Canada is untenable to invest then we will see the pain. Watching the USA congress and Senate realize they can not pay their debt , having to inflate their way out is staying the course to the eventual reset. How much track does each country have before the train hits the wall? Watch the bond markets for the "UK revolt" .
Watching anger explode in the rest of the world (Ireland is in a similar boat and has seen huge anti immigration protests - seeing signs Irish Lives Matter is hilarious) but what I don't understand is why something similar hasn't happened here. Seems as long as you're a homeowner (and strong majority are) people don't care. Very odd indeed
The travesty of central banks is manifested by the graph showing housing affordability in Vancouver going from 40% in 2000 to 110% today. The policy of ultra low interest rates allowing asset holders to get something for “nothing” is now showing the fallacy of this strategy.
Our son just graduated from university and even with what I would call a decent starting salary, he is completely defeated about any prospect of owning his own home. And there's not much he can do about it. I have suggested he think about leaving the country if he wants to get ahead. What a sad state of affairs.
It has to end badly and crush the groups that caused / created this. There is no easy way to fix this with out severe decline and reset. When the bond market decides Canada is untenable to invest then we will see the pain. Watching the USA congress and Senate realize they can not pay their debt , having to inflate their way out is staying the course to the eventual reset. How much track does each country have before the train hits the wall? Watch the bond markets for the "UK revolt" .
Watching anger explode in the rest of the world (Ireland is in a similar boat and has seen huge anti immigration protests - seeing signs Irish Lives Matter is hilarious) but what I don't understand is why something similar hasn't happened here. Seems as long as you're a homeowner (and strong majority are) people don't care. Very odd indeed
Good morning Steve
The travesty of central banks is manifested by the graph showing housing affordability in Vancouver going from 40% in 2000 to 110% today. The policy of ultra low interest rates allowing asset holders to get something for “nothing” is now showing the fallacy of this strategy.
Cheers Rick