Devlin, Rosenberg warn current levels of interest rates in Canada are unsustainable

[@ohcanadaeh]

Canada as a whole has been living beyond its mean. The more important issue is how to wean the country off from the addiction of low interest rate and endless borrowing and spending. Bailing people in financial trouble and cutting interest rate will not help. One way or another the economy will have to take a hair cut and builds itself back up. Cutting interest rate in Canada will devaluate our currency and push our inflation back up.

[@dougreed736]

Daddy needs a low intrest rate. Trudeau promotes spending and gender transformation

[@kennordsfan1494]

Trudeau with his uneducated fiscal policies of endless deficits and doubling the debt in 3 years has created this inflation. The latest fiscal statement Feeeland gave was disgusting no lack of austerity at all! What about the unsecured federal pensions with the bloated workforce? Trudeau hired 40,000 federal employees? And we wonder why inflation is going thru the roof? This is going to get worse really bad i think. At some point we need to shrink government and its spending. We didnt see that last week.

[@rishi505]

liberals are keep bringing 900k student every year . student also struggling . Citizen of Canada need to spend some time to spread message . no homes but population going up

[@brianbondy5667]

You want to know what was truely unsustainable? Our levels of DEBT!

[@michaelscratch1]

You can read into the frustration the Bank of Canada faces with each monetary policy update. Every move they make is nullified by the government of Canada's spending stimulus and open imm policy. Until there is some federal fiscal restraint and a reasonable restriction on new population levels, the BoC will be forced to use it's one and only tool of rates to counter an inflation that is outside it's policy mandate range of 1-3%. Problem hasn't been with the BoC, except their 8 month covid snooze (zzzzzz) when inflation was going up and rates stayed at all time lows; it has been the GoC policies and spending plan. And for the record, I love new Canadians from all countries, like everything, we need moderation in our national approach.

[@isaiahsmith8523]

If 5% is unsustainable, then we are in some huge trouble....

[@berardoferrari]

people with middle of the road credit ratings have mch higher interest rates than 5%!!!!!

[@kimscott8176]

A landslide of mortgage defaults will make my day. I want see a sea of housing foreclosures in Vancouver and Toronto. He said ridiculous immigration- huge population growth and no increase in GDP. All critics tell Trudeau he is wrong and he doubles down on doing opposite of what anyone says is a good idea. He even dreams up new ideas to do even worse: ideas that nobody else thought .

[@parkerbohnn]

Savers and retirees have been robbed since 2008 to fund this housing fiasco.

[@MrWookie1981]

It is not the rate that is unstainable. It is how fast it went there. No one had time to adjust their habits.

[@berardoferrari]

@@kimscott8176 all very true!!!!! but just now i heard the GDP is 1.1% negative this 3rd quarter and no increase but decrease!!! the faster it burns down the better!!!

[@samcity5050]

Beyond the financials - isn't this really a philosophical question? I get that there's perception that the residential debts are too big to fail, but if we collective bail out these Canadians with lower rates, aren't we condoning this high leverage and speculative behaviour indefinitely? Let them feel the pain, liquidate assets, and value financial responsibility now and for future Canadians.

[@blakeacheson9387]

If only we lived in utopia … if we do what you describe here you’d be out of a job as well

[@darex0827]

You realize this country is run by politicians, right? The governing party that messes this up to that degree will lose an entire generation of voters, i.e. it would be political suicide.

[@Brian-dg3gh]

Can’t we say the same thing about anyone who receives free money from the government which let’s be honest is a lot of people and a big part of why taxes are so high and why so many middle-class earners are struggling. Sure, get the government out of the way and let people sink or swim but that works both ways.

[@MrMusashiMusashi]

​@@blakeacheson9387 That thinking is a bit black and white. Yeah, maybe they'd be out of a job, but that isn't a reason to do nothing. If we used that approach, no one in history would have done anything about nearly anything. Changes come with some hardships. Sam has a point that the lack of action regarding overleveraging is supporting this insane market. And, it is a philosophical question of whether we should save ourselves from ourselves. Personally, I think that temporary pain is something that has to happen to save the majority of the population from collapsing. We really shouldn't have a fundamental need like housing become a vehicle for investment if what it causes is predatory behaviour. At the very least, something has to be done to regulate and balance the outcomes. If you're concerned about being out of a job, shouldn't you also be for what Sam is proposing? What do you think happens when a handful of Canadians own the majority of the countries assets to the point where the population is homeless and employed? Do you think they'll stick around? Like they say, socialism for the rich, capitalism for the poor. That's the scam these rich people are pushing; it's like a forced Ponzi scheme. If these investors are all in on capitalism, why is it that they keep asking to get bailed out? Shouldn't they be FOR unregulated interest rates?...

[@shaneatkinsonsa]

Completely agree. I bought my house when I was 21 @4.8% interest rate and I've stayed in this dump of a house to keep myself financially stable. If people get bailed out I'm going to be pissed that I wasted my time being financially responsible.

[@grabbingbythe12345]

These people in BNN are going crazy over rate cuts! Apparently, they got addicted to the depraved taste of free money that is actually the root cause of all the problems that we are facing nowadays like inflation, unequal distribution of wealth, shrinkage of middle class and the rise of homelessness.

[@jtome84-91]

Why would Bloomberg care either way ?

[@dougpatterson7494]

I hope these economists are wrong and rates can be held up for a few years.

[@BA-kp1us]

By root cause you mean government spending and immigration right? The low interest rates weren’t a problem between 2008 and 2015 but what happened in 2015??? Oh yeah rampant government deficits (after inheriting a surplus) and then the largest immigration and population growth ever…not saying interest rates aren’t an issue (they are) but the macro and history says the problem became exacerbated by government behaviour more than rates themselves.

[@coolioso808]

Money is the root cause of all the problems. Full stop. Name any problem and it is connected to money. Monetary-market system is structurally unsustainable. It's LONG past its usefulness and it won't get any better the more we use an out-dated system. Time for change. System change. And it starts in communities, working together to co-own and operate the means of production for the betterment of everyone. With the One Small Town Contributionism strategy, this is possible. Others like it might pop up, but for now, what else? Seriously, if people have better ideas, I'd like to know.

[@parkerbohnn]

@@jtome84-91 Rosenberg probably has all his money in the fraud ponzi U.S. stock market that's more overvalued today than it was in the summer of 1929.

[@goodflop255]

If the economy is so far behind the population growth why doesn't the government pause the immigration until we are in better shape with housing, health care system, jobs, affordability, etc. The finance minister keeps saying in Parliament that Canada is in the best shape of all in the G7 in many areas. Do you agree? Savers should get at least 5% on their deposits, that keeps the balance better than zero percent interest where seniors get nothing on their money.

[@parkerbohnn]

In the past it was a given that the worst savers could do was a ten percent return on their money. Things have constantly gone straight downhill worldwide since those days.

[@goodflop255]

@@parkerbohnn So the interest rates should be kept at least at 5% to keep inflation in check and give a fair return on deposits. Zero per cent interest warps the economy as we have seen.

[@underscr0e]

@@goodflop255 and pause immigration until housing, healthcare, and the economy catches up and stabilizes.

[@rshrestha1588]

Putting hold on immigration will help a lot. It is creating excessive demand on housing and grocery. How can the price of groceries and house come down when there is too much demand. This is why interest rate hikes weren’t working fast enough. BoC should know this. We have a government policies working against the economy.

[@Boss302ATC]

They are buying votes with the immigration. Current voters and training new ones. People calling for the curbing of massive immigration aren't there voter base!

[@krynndotca]

What Rosenberg is trying to accomplish is to have two wrongs make a right. The wrong policy was to have rates so low in the first place . Dropping it yet again is a wrong policy intending to “having two wrongs make a right”. Like many others in the comments have already pointed out, the problem is the level of debt not the interest rate being “high”. I don’t see how Rosenberg can consider him a contrarian when he thinks exactly the same way as every other economist in the world.

[@GETLITUP69]

Rosenberg has a alternative motives for wanting lower interest rates. People can simply lower there housing prices or save and not live on credit. We need people to go bankrupt so prices drop!!! NOT my problem if people can't live within there means. So lower rates to appease people who can't rain in their spending.

[@wickedywack69]

@@GETLITUP69I hope the rates lower as predicted so I can invest even more into multi family rental properties, I love giving people a place to live at a fair rent, while my assets skyrocket in value.

[@ItsMe-on6tt]

20 years ago I was screaming about this problem. The people with land/homes loved the appreciation, there was no appetite for questioning the end result of a housing bubble.

[@MentionBiscuit]

greed now they will be bailed out

[@beautanner8409]

There will be a reckoning. @@MentionBiscuit

[@ItsMe-on6tt]

@@beautanner8409 the fact that the housing crisis got this bad before the government even thought about responding is crazy. I was asking the question years ago, where will future workers live in the greater Toronto and Vancouver areas? It’s stunning that Canada let this get so bad, and the same people who caused the problem, or now trying to create the remedies

[@coolioso808]

If you were screaming about this problem 20 years ago, did you do any deep systemic research in that time to find out what is the root cause of inequality, poverty, homelessness, unemployment, drug addiction, violence, waste and political corruption? If you found the mountains of evidence that the monetary-market system itself is unsustainable, then good for you. If you still haven't found that out, there is still time. Plenty of sources out there for anyone to see, like Culture in Decline series by Peter Joseph or Second Thought or Our Changing Climate channels, for example.

[@ItsMe-on6tt]

@@coolioso808 I’m a big fan in Chris Hedges, a topic he covers a lot is the decline of empire. All the signs of a population’s decay are evident in what we see today. Hopelessness and depression leads people to check out of a system that clearly isn’t working. I’m a firefighter in a major U.S. city now, I experience all the social ills up close. The drug problem alone is unbelievable.

[@camclarke9952]

And house prices are?

[@boblatzer]

Too bad our finance minister doesn’t know anything about finance.

[@A-star445]

LoL how is it possible that a finance minister doesn't have an economics or finance background

[@berardoferrari]

the ding bat was a journalist.... what do you expect!

[@risitas5874]

mIIIIIIsTerR Speeeeeeeker

[@brian2973]

we have a drama teacher and a journalist running our country. madness.@@A-star445

[@berardoferrari]

@@risitas5874 her voice is cringe!!!!!

[@mend9850]

Ha! Interviewer damn near shat himself when the guests had the guts to call out the ridiculous immigration policy.

[@bibop224]

The immigration policy is a solution for the aging population (less and less young people in proportion of total population), and someone has to pay for retirement of older people. Immigration isn't a problem in itself especially when Canada brings in people on work permit, the problems I believe are 1/Why Canada needs to do that to avoid collapsing, 2/ Why is housing supply not following up and 3/ why the GDP per capita goes down (ie - individually, Canadian are getting poorer). My guess would be high taxes cause capital to go in other countries, causing competitiveness to go down and thus wealth goes to other countries (eg USA)

[@beautanner8409]

Current levels of home prices in Canada are also unsustainable.

[@dougpatterson7494]

I hope interest rates stay above 5% for a few years and home prices go down. I just bought a home last month so I have skin in this game. This said, my city averages about 1/3 the price of Toronto or Vancouver. I also don’t view my house as a “growth asset”.

[@parkerbohnn]

That's not to say they can't go a lot higher. Where I live in Markham home prices are going nowhere but higher as months of inventory keeps falling.

[@randyhuke3773]

If interest rates drop 2 % next year, then house prices will skyrocket along with rents making a bad situation even worse.

[@rustyscrapper]

Rents won't go much higher from here. When houses appreciate landlords are ok with lower cash flow since they are making a lot from appreciation. When prices fall, landlords get quite upset at losing equity. So unless their rentals have high cash flow its a double loss and many will sell them off. So what I'm saying is, in the current market landlords want their units to have cash flow and that's why rents were jacked to ridiculous amounts. They are depending only on rents to make a profit. If the house appreciated by 50k every year, it's not as important to them if the rent is covering their expenses or not.

[@georgesilva6816]

If rates drop by 2 percent people might actually be able to buy and leave the rental market. In 2021 I took a mortgage of 760k and my monthly payment was about 2500 a month that same mortgage today is 4500 a month . Rates need to drop or else canada will enter a situation far worse than the USA in 2008 .

[@scrambaba]

Have never seen an analysis of how much of the housing crisis is due to excessive demand due to immigration, foreign investment, domestic investment vs. insufficient supply. This analysis must be pegged to different central bank interest rates.

[@kochan0410]

You will never see that data. Federal govt holds all that data tighter than a momma to her baby.

[@parkerbohnn]

The problem since 1981 is interest rates have been far too low.

[@JEdwarrd]

Immigration is one part of the puzzle. For yrs BOTH Provincial & Federal gov failed to keep topping up home building stock. Then AirB&B came along, not to mention all the foreign $ laundering that many politicians (on a bi partisan level) ignored for yrs. The pandemic created a wealth transfer from the middle class to the top 5% earners in the last 3 yrs. All the variables have compounding effects. No?

[@scrambaba]

@@AmericanScout-USA Its a demand problem, there’s already a gazillion trees being cut down, educate yourself about the reality here.

[@nafizhasan4349]

Unsustainable because people got used to endless borrowing

[@manjushapraveen2285]

People think that it's the govt debt crisis because when I was earning 3 times lesser than what I earn today, I could still put food on my plate and afford daycare. Now it's a luxury to just have a roof over my head. It's definitely the govt policies that were flawed and didn't control spending, didn't make a forecast on how to generate money vs tax people to death, instead focused on putting money into their hush hush schemes. If the govt had proper migration policies in place, our economy wouldn't be bleeding. No border control, nothing makes sense to the Liberals, except tax everyone to cover up for poor decisions made. Pls don't be supportive of the Liberals actions, who have no roadmap as to what they're doing the next day. It just feels we've elected a bunch of high school back benchers...tsk tsk...

[@Bigjohn928]

The economy is built by people’s borrowing money at low interest rate 😂😂😂

[@barrybrand2970]

In a disfuctional economy.

[@jonathanandrew2909]

Yes, for about the past 50 years. Are you expecting that to change now?

[@risitas5874]

Any cut in interest rates now will cause inflation to resurge and house prices to keep climbing. This will permanently lock out an entire generation from housing.

[@ginor8416]

Took the words right out of my mouth.

[@shibbyrick]

The lack of supply is the problem. Higher rates won't bring down home prices, they just put more money into the pockets of the banks and investors.

[@daiseman]

Duh. These emergency rates have been around for so long that their unsustainability is evident in the fact these economists think a return to historically normal rates are unsustainable. SMH! Higher for longer is needed to return to some semblance of normalcy, in which Canadians are accountable for their financial choices.

[@rachelk8368]

everyone in canada needs to hear this interview and realize the implications- cut your costs, move down etc. Get rid of debt. move out of the country.

[@michaelscratch1]

Government and Bank of Canada need to be working together. Every move the BoC makes is negated without the government rethinking it's open policy to increase the population without looking at the statistics of how costly it is to all.

[@backwooddesignco]

Yeah that’s not a conflict of interest at all..

[@Bufford2024]

Triple the debt ... and then think prices will not skyrocket? Loons.

[@jacksprat9896]

My groceries are still 100% more than they were 2 years ago so what do you mean inflation is less than 2 %

[@jamess9670]

All the conditions that led up to the 2008 subprime mortgage crisis in the US are currently in place in Canada. I’d be very surprised if things don’t play out the same way

[@ST-fk3jz]

not immigration rates

[@rustyscrapper]

It's not the same whatsoever. There was over supply in 2008. There's shortages now. Rates were low in 2008. They are sky high now. (Compared to inflation measures) the economy was booming in 2008. It's abysmal now. This is a devaluation of the currency. The interest rate hikes are just papering over the inflation temporarily and keeping prices in dollars flat . There's definately a recession coming though. But it won't be a deflationary recession. It's going to be stagflation, which means lower wages at the same time as higher prices and higher unemployment. How is that possible? The currency has been devalued and the effects will be felt on both ends.

[@parkerbohnn]

No they're not the Chinese are keeping home prices propped up and they're the backstoppers of any price drop. This is 100 percent unlike the housing market in American in 2008. Where I live in Markham home prices keep rising as months of inventory falls if you check that out on google.

[@JEdwarrd]

@@parkerbohnn It's a money laundering problem. Not a Chinese problem. For years the BC & Federal gov have known about all the $ laundering but failed to uphold our laws. Instead of Pierre exposing this, he looks for other wedge issue to divide. How do we solve $ laundering when our established political parties can't seem to just be honest!? They were all making $ which is why they are silent abt all the laws that were broken & ignored.

[@melhudson6832]

Food and transportation inflation are independent of housing inflation. While there is a personal debt crisis, food and transportation might have a more direct relationship to consumer strain than being suggested here.

[@MrPatrick1414]

Current rates are unsustainable but so will rising inflation if rates aren't raised. BOC is in a tight spot!

[@jimmason8502]

Inflation is not rising, it's going down. The danger now as these experts agree, is a slowing economy.

[@jackbrown8052]

In the 80s in Canada we had mortgage and interest rates in excess of 12% for several years. We survived.

[@aceseling]

The household and government debt in the 80's pales in comparison to the debt load today. It is not an apples to apples comparison.

[@jackbrown8052]

@@aceseling True but it is a different world and economy today. Plus we're only talking about 6% - 7% mortgage rates currently. Far higher than the 3% - 4% mortgage rates before covid but a long way from the mortgage rates of the 80s..

[@Rich-wx3tx]

@@jackbrown8052you forget the teacher making 40k in the 80’s bought her house for 120k. That house is 1.7 million today and she’s making 70k. I’d happily trade in my mortgage today for its equivalent in 1985 at 18%

[@ShitWrangler]

@@Rich-wx3tx It'll take the great 2024 vaccine event to put an end to the 80's comparisons

[@cp312]

@@jackbrown8052 a 12% interest rate on $200,000 is still a lot less money to pay than 6% on $800,000

[@parkerbohnn]

Savers and retirees are already getting destroyed by interest rates that are far too low.

[@amoosavi]

👆 two overleveged guys. I hope the interest rates gets higher and flushes all asset speculators down the toilet. Then the nature will heal.

[@LawofMoses]

1981 or so, the rates were ten percent and overnight they went to 18 to 20% interest. There is nothing new under the sun.

[@Spliteyemoto]

I think the general sentiment around using the BofC interest rate to quell inflation is like using a sledge for a fly swatted. It’s an aggressive tool, necessary, but aggressive.

[@Contribuable85]

I rent currently and I am waiting for some people not beeing able to pay their mortgage to buy a house at a reasonnable price.

[@alexmuzio23]

The real question is why did boc keep interest rates at record lows for so long to create this nightmare scenario?

[@unbuzzd]

LOL --- to get as many people into debt as possible they may have raised too fast and now need to adjust which will be done in the following months. Remember 2024 till 2026 we have the most people renewing into new mortgages forget 2.78 locked for 5 yrs going forward 5 to 6% and this is where they want all the people at.

[@hsbd-hl7gn]

Doesnt seem like interest rates are coming down. Looks like these 2 are struggling with debts abd wsnt to pass this message. Should have looked at malls n plaxas at black Friday

[@tommcd8471]

5% is nothing, last time we had to fix the messes made by his father it took 19% and 14% interest rates.

[@ADobbin1]

Interest rates aren't the problem. High prices aren't the problem. The problem is the annual interest charged. The interest costs 3 times what the principle does and by the time you've finished payments in 30 years you will have paid between 600 and 900k in interest on top of the original loan of 300k for a total north of 1M. Your 300k house will actually cost you north of 1M by the time you've paid it off. The entire banking system has screwed everyone over and people have no idea what is being done to them.

[@TJames69]

Dave laughs off housing inflation like people aren’t spending +60% of their take home pay on shelter.

[@DW-xt7vz]

He’s not laughing it off - he’s saying that using it as a measure for what the BoC needs to do is going to have the opposite effect. If we hike rates because of high inflation that is coming from housing costs, it’s only going to create more inflation because housing costs will increase. That’s what is laughable.

[@TJames69]

@@DW-xt7vz so the normalization of interest rates is causing inflation to increase and not the 50% rise in rents attributed to ZIRP? Is that what you’re saying? And if interest rates come down inflation will come down despite rents not coming down? Do I have that right?

[@DW-xt7vz]

@@TJames69 we aren’t normalizing interest rates, they are above normal. Owned accommodation is a larger component of the shelter category of CPI than rent, but in both cases higher rates will raise the cost of shelter. The former by higher mortgage costs and the latter by disincentivizing building.

[@shammusomalley8986]

the central bank isnt going to back off interest rates. They want mass defaults, and they want small and medium banks to go under and be drawn and quarterd by the big banks

[@parkerbohnn]

Laurentian Bank will be the first one.

[@rustyscrapper]

I can already see rents topping in some areas. Rents have gone up crazy amounts in alberta this year but i suspected it was more then people can afford. So now i am seeing rentals listed too high just dont get rented out because nobody can simply pay that much. It took a while for inventory to start becoming available again. Now im seeing a lot of rentals going up for rent as peoole are having to move out, and very few people interested in paying these prices. Where did all the people go you ask? Double and tripling up with room mates. Leaving the country, living with parents, living in vans, homeless, etc.

[@rishi505]

liberals are keep bringing 900k student every year . student also struggling . Citizen of Canada need to spend some time to spread message . no homes but population going up

[@Riderdownn]

I wonder if this is the only unsustainable thing about Canada currently? 🤔

[@gtatreeservices860]

Birth to death dont have to work if u have 5 kids no need to work

[@ddaman5764]

Don’t play dumb. It’s the great reset

[@Alanom2007]

No no need to cut interest rates, increase it more. We need a market correction now instead of bigger pain later. People who borrowed like crazy need to learn thats not how things work

[@dougiep2769]

It’s a total depression

[@shawnhunter2085]

Too optimistic on rate cuts for next year.

[@Eric-lx8hp]

Rich powerful people scared they won’t be as rich as they were before😂

[@jonathanandrew2909]

They need low interest rates more than anyone.

[@billblendick9780]

Welcome to Liberal Land ! What do you expect with a finance minister like Freeland !

[@grabbingbythe12345]

Rates should never go below 5%. Low interest rates over the last two decades unleashed our greed- we are consuming at the expense of our future generations. Low interest rates also created this so-called investors who are nothing but opportunistic parasites; gamblers who buy and sale false assets (stock, crypto etc.) but don't add any real value to our economy. Low rates are the reason for our housing becoming eventually unaffordable.

[@Sidneycrosby19]

When it comes to housing its because of supply, the Gov miscalculated for the last two decades (libs & Conservs) on how many homes we really need. Since we missed that mark homes are way over priced than they should be...

[@JayandSarah]

Stocks are false assets? You realize they are proportional ownership positions in a business, right?

[@MustyBastard]

No dumb dumb, population growth and demand caused that. My house in Edmonton I bought new in 2014 is worth less now than almost 10 years ago. Not even in the height of covid and near zero interest did my house go back to its original price. This is what happens when 40M people want to live in the same two cities in the second biggest country in the world. Don't blame interest rates.

[@grabbingbythe12345]

false because they are rigged by the gambler investors@@JayandSarah

[@BA-kp1us]

Why weren’t low rates an issue from 2008 to 2015? Not saying rates aren’t an issue but house prices have doubled under the Liberals as has the federal debt…that wasn’t interest rates…government policy is the biggest factor in what has drove inflation, interest rates and overall “life” affordability in Canada

[@parkerbohnn]

The only way to bring down rents is higher interest rates.

[@Tygearianus]

Banks said let me hold your money for you - and then used our money to buy the world from under our feet

[@christinarosed.p.1967]

Axe the tax! Put more money back in our pockets!

[@roncgc8428]

Government manipulates the CPLie and the BoC responds in turn. Interest rates should be doubled. Everything is 40% minimum higher than what Government claims.

[@Icecold0505]

Nah. He’s wrong. I totally see myself working 2 jobs forever at this rate.

[@gregbowman3808]

The leading driver of inflation today is interest rates. The fight against inflation is causing inflation.

[@frankiefaithful]

That's possibly the dumbest thing I've ever heard in my life.

[@williammahone7830]

your video and sound are almost always off, they are not in sync.

[@ozahmed4523]

If you are a thief anywhere in the world and you have stolen money in your country of origin, where do you think the money will come? In English speaking prosperous countries or the Middle East where money talks. What is the first logical long term asset that a smart mafioso would buy? Real Estate! 🤔

[@tonykennedy1615]

This guy is claiming inflation is at less than 2%. Lol. Yes, inflation is going down along with the housing market and a bunch more stuff. Cash is king. Bargains incoming :)

[@mqii]

Good, let some greedy investors go bankrupt so the housing price balance out

[@Azel247]

The family with 2 kids a one home will go bankrupt before those investors do. And when those families are forced to sell their home, who's going to buy? The investors.

[@LawofMoses]

The banks are insured by CMHC, they always get paid.

[@sloburnjo]

PREACH ! DAVID preach !

[@nicholasbaker8158]

Said perfectly!

[@katp3583]

I'm saving this so I can watch it in a year and see if these 2 men still have jobs

[@almontoya5703]

Rates near 0% for many many years was dumb

[@nickcheema907]

watch for a minimum 25% haircut on home prices. It's coming

[@Rich-wx3tx]

You do realize house prices have gone up literally hundreds of % don’t you? A 25% drop won’t even be noticeable when you look back on the graphs in 10-15 years. My parents bought a home in 2000 for about 220k, it sold last year for 1.9 million. Everyone who doesn’t own has been sitting on the sidelines watching for years for prices to crash as they’ve shot to the moon, then celebrate when they get a 15-20% dip lol

[@shammusomalley8986]

The canadian housing prices are going to come down sharply

[@parkerbohnn]

In Markham where I live months of inventory has fallen to 2.7 months and home prices are going nowhere but up.

[@sliekerstar]

I live on a boat, let rates go up!

[@ibrahimseth8646]

If Debt=10T Loan=30T Leverage(Debt=1:3=Loan) Loan=30T Yield(Max)=5% Year=10 Loan(10 Year)=30T*1.05^10 Loan(10 Year)=49T Insurans: Premium=? Yield(Min)=10% Year=10 Premium=49T/1.1^10 Premium=19T(Loan Pay=49T) Balance=Loan-Debt-Premium Balance=30T-10T-19T Balance=1T(Debt=0). Thank you.

[@shammusomalley8986]

They wont cut rates until the housing prices are already in freefall

[@shammusomalley8986]

These guys are speaking the truth, but their naive in thinking the central bank is going to back off interest rates. The point is you will own nothing and be happy, and they wont back off until that's a reality

[@christophertoddgaska4465]

What quarter will the "kitchen sink" come?

[@johnmath0965]

So when rates were almost 0% it wasn’t unsustainable? Where was Rosenberg with his warning back then ?! I’ll tell you what he was doing cashing in ! Now that his portfolio is hit he’s mad and worried

[@lukelewkowicz2233]

Banks puĺled a pocker game strategy. Seems like a huge numbers did entered into a casino with a strong understanding that there is no way to loose in the end . Chips were for free or near to it. Decks are stuck and the dealers are in a total control. What is desired is a stampede for the exit on the like of 2008 in US. It did not take place in Canada as was expected and now criteria of the game is on a higher $ level.😊

[@Bharatnamo]

Canada .. it seems how good u speak English seems to be a yardstick a phobia to skill talent productivity good job . Etc etc Fact is in today's world top 10 economy only 3-4 speak or care for English! All that is in focus is English speaking international student to do menial labor jobs....to serve baby boomers is focus. All the industrial investment are geared to packaging warehouse and transportation And ofcourse real estate based economic target.. so once interest rate up.. the country is doomed... Even the talent immigrant soon leaves the country as they figure out the economy is hollow optics based ... No depth

[@businessmike2371]

truth to real targeted immigrants with talents are gone in no time, brain drain of talent is a massive issue to innovation and economic movement here. I dont understand what the government is trying to accomplish with the current gambles on human resources.

[@mikebuchanan7610]

English, or French if you like, is our language. We are not just an economy. Our cities and towns do not exist simply so that foreigners can take them over and pretend they are still in the country they left with a better standard of living. Brampton and Markham are in Canada not India and China. How does it benefit the locals socially by feeling like they are foreigners in their own communities, or economically when the cost of housing goes through the roof? Our government's job is to represent OUR interests. It is the Canadian government not the United Nations.

[@emrahtestere5372]

​@mikebuchanan7610 make more babies and vote for the far-right.

[@Bhgjjj]

It’s a 6 figure paycheque to paycheque recession. Sucks to be a fake rich guy these days.

[@justtruth6812]

Great speech by both experts, this video should have longer version, more realistic and inside talk , compare to BOC with same speech and dialogue every time they come up, sadly but true , BOC always talk about being independent when comes to the interest rate but they more collaborate with Current Government, and surely as Federal election comes they will again lower the interest .

[@rishi505]

liberals are keep bringing 900k student every year . student also struggling . Citizen of Canada need to spend some time to spread message . no homes but population going up

[@batralawgroup6354]

Even economists want interest rates on downside because housing equity is being enjoyed by all old citizens. 😢😂

[@parkerbohnn]

Older citizens lose a fortune to falling interest rates as they're on fixed incomes.

[@JonathanRogler]

Kind of the point

[@Bufford2024]

Canada is now a tofu nation, which crumbles on contact.

[@TT-fq7pl]

Tofu doesn't crumble on contact.

[@Bufford2024]

@@TT-fq7pl it does ... when you use a Liberal sledgehammer.

[@TT-fq7pl]

@@Bufford2024 with any kind of sledgehammer, it still wouldn't crumble on contact; it would separate but not crumble. I have no problem with attacks on any current politicians, but don't go disparaging tofu!

[@Bufford2024]

@@TT-fq7pl I gotta get your recipe. Mine just crumbles. Must be cause I use a lot of ganja oil?

[@kimscott8176]

Speaking sense to a Woke Justin Trudeau is a waste of breath. Whatever is the most mindless direction - that’s his choice.

[@kylechristofferson349]

It is hard to take someone like this seriously… Saying that the citizens are the reason why there is a debt crisis is ludicrous. There is so much debt among the citizens because of high interest rates, high taxes, carbon, tax, high, inflation, and poor wages. Also, he is completely wrong. There is a debt crisis in the government. The government will spend more money servicing its debt next year than it will spend on healthcare. And that is according to the budget that they put forward. Why is anyone even listening to these two guys?

[@ougmass]

Do not blame it on immigrants. The housing, the Gdp the recession problems are here, or caused before immigrants come in to the country. And such problems are the result of incompetent oligopoles in Canada who who are afraid to loose their grip on the political and economic power in Canada.

[@magnang]

Interest rates are neutral and that's fine.. What isn't sustainable is the home prices.

[@brianw612]

I have been hoping rates stay high. Time to convert some short term GIC's to long term while the rates are still attractive.

[@parkerbohnn]

Long term corporate bond yields have fallen about half a point since October 27th this year but that's the best place to put money.

[@parkerbohnn]

The Bank of Canada rate is half a point below the Fed funds rate and real estate and rents are once again inflating in price. The minimum wage will have to be raised to $25 an hour if interest rates are not raised.

[@smartypantsinc.gameon6978]

That’s right 🎉

[@Boss302ATC]

Jeez, what do we want here? Find a way to stifle inflation or lock inflation in forever and continue to print cheap money again? It's one or ther other people! All this talk off getting inflation down - they aren't talking negative, which is what it should be doing. They are simply locking in the disaster of 2021 prices and just moving on... we can't afford that!

[@BrandonSchleifer]

Obvious wishful thinking is obvious.

[@backwooddesignco]

Heading INTO a recession? We’re fully in a recession right now

[@davindersangha3761]

You got to be kidding me! The Im old enough to remember 18%.

[@davidcoren2705]

Our current PM isn’t sustainable either ….

[@TheCristo68]

Buy gold before they lower interest rates , lower interest means high inflat😅ion .

[@ShedrackJames11]

*My greatest concern is how to recover from all these economic and global troubles and stay afloat especially with the political power tussle going on in US. The government has really called things more difficult for its citizens, and we can't sit back and bear all the consequences of the bad governance. We need to take our financial life serious….. I recommend stock market investment and digital currencies*

[@chrisbaldwin4511]

So much about her I was watching her interview on FOX when she said "Crypto investment is profitable with a good professional broker'' I quickly contacted her, I started with 3k now I have almost 175k in my coin base

[@KimCastro-qu2vm]

Honestly, I’m surprised that this mrs eleanor nelson ,is mentioned here, came across a testimony about her from one of the beneficiaries on the CNBC news, she seems to be doing extremely well….

[@PhoebeShantel-to3pq]

She’s earned my trust since last year October when I hit my 140k YTD monthly trading profit target.❤️

[@RobertHohn]

I am from Denver Colorado USA I connected with her and she has helped me a lot,she makes so much profit for me she is a FINRA agent, the best I can invest with so far ever since I came across expert Eleanor Barnes, my bad turned out being good and profitable. She's made success earlier than we thought.

[@RodNiy-dr5no]

So delighted seeing my broker talked about on KZbin This was exactly how i got recommendation about Mrs Eleanor Nelson, at first i was a bit skeptical but eventually i gave her a trail with my little investment i got huge profit

[@kenvandeburgt1232]

What happens when you vote for a Trudeau government.

[@kathyhenry2362]

Thank you for speaking to the realistic downsides of immigration.

[@georgesilva6816]

Keeping rates higher will do alot more damage than lowering rates . I bought my house back in 2021 and mortage was 2500 for a 760k morgtage that same mortgage today is 4500 a month . I was paying what people are paying today for 1 bed apartment in toronto. Not only will rents increase , but many people will lose jobs if people start loosing there homes . Once construction stops then canada will come to a stand still

[@kennordsfan1494]

The slowdown has already started unemployment is creeping up full time jobs especially more part time jobs out there as companies are trying to save money. That means no benefits and over time. It is getting ugly out there.

[@GM4ThePeople]

You Nisga'as keep tryna mess with Big Rosie. But you don't wanna mess with Big Rosie.

[@theoffspring07]

Rates need to stay elevated to flush out the bad debt

[@georgehiotis]

I am confident that Mr. Rosenberg is correct; however, Tiff Macklem will raise the interest rates as the first opportunity that arises. The BoC objective is only to ensure that Trudeau's nest egg grows, and doesn't have a worry in the world about inflation.

[@derek04151]

They're doing everything they can to avoid a decline in house prices, but high house prices are the root cause of most of our problems. It needs to correct, but it would gut the middle class. So we continue to kick the can down the road by immigrating massive numbers of people to keep the demand for housing high, in order to avoid the real estate collapse that should have already happened or be happening now.

[@rickylafleur1446]

lol