Canada's Housing Bubble

Jan 6, 2010 Jonathan Tonge  americacanada.blogspot.com

The trusty economists say there is no bubble and lots of room for growth. From their track record of failure you'd expect people to be running to the hills. But they are not. Proving once again that nobody learned anything from 2008:

Globe and Mail commented on a BMO report that home sales are "stellar":

"It appears that the real estate market closed out 2009 on a strong note, ending a year that saw a short slump followed by a remarkable rebound. While national figures will not be released until mid-January, some regional numbers are being reported. And, BMO Nesbitt Burns noted this morning, the numbers are "stellar." Sales in Vancouver rose 172 per cent in December from a year earlier, and prices rose 16 per cent. Calgary reported a 77-per-cent jump and Edmonton 54 per cent. In the first half of the month, sales in Toronto were up more than 100 per cent from a year earlier."

Expect speculation, flipping and obsessive ponzi behavior to mark the coming  year. It's not sustainable but it feels great while it's happening. It's exactly what the fed, BOC, Government of Canada,Washington, and about every other major organization in the world wanted. Just expect it all to crash in the near future and expect these self elected individuals to step up to the plate once again and make the exact same decisions that will end the exact same way.