{"id":3909,"date":"2015-01-02T19:17:04","date_gmt":"2015-01-03T00:17:04","guid":{"rendered":"http:\/\/olduvai.ca\/?p=3909"},"modified":"2015-01-02T19:17:04","modified_gmt":"2015-01-03T00:17:04","slug":"the-canadian-housing-bubble-makes-california-real-estate-look-sensible-crash-in-energy-prices-will-put-pressure-on-home-values-up-north-as-canadians-go-into-maximum-leverage-dr-housing-bubbl","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=3909","title":{"rendered":"The Canadian housing bubble makes California real estate look sensible: Crash in energy prices will put pressure on home values up north as Canadians go into maximum leverage. \u00bb Dr. Housing Bubble Blog"},"content":{"rendered":"

The Canadian housing bubble makes California real estate look sensible: Crash in energy prices will put pressure on home values up north as Canadians go into maximum leverage. \u00bb Dr. Housing Bubble Blog<\/a>.<\/p>\n

As the year comes to a close, it is useful to put things into perspective.\u00a0 Sure, California has a love affair with real estate and we go through our traditional booms and busts.\u00a0\u00a0$700,000 crap shacks<\/a>now litter the landscape but there are fewer and fewer lemmings taking the plunge.\u00a0 In Canada there was no correction.\u00a0 In fact, households continue to go into deep debt to purchase real estate.\u00a0 The argument goes that mortgage standards are much tighter in Canada so therefore, they are much more enlightened when it comes to financing homes.\u00a0 People forget that the bulk of the7,000,000 foreclosures in the US<\/a>\u00a0came in the form of\u00a0standard loans<\/em>.\u00a0 Garbage loans imploded in more dramatic fashion but people lost their homes because the economy shifted.\u00a0 At that point, it merely meant covering the monthly nut.\u00a0 We were housing dependent and that market contracted aggressively.\u00a0 Canada is housing and oil dependent.\u00a0 And oil just got a big kick to the shins.<\/p>\n

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In Canadian debt we trust<\/strong><\/p>\n

There was an inflexion point for US markets when household debt surpassed household income.\u00a0 People kept saying it was a liquidity crisis initially but it was truly a solvency crisis.\u00a0 People took on too much debt and were walking on a financial tightrope.\u00a0 In the US, this peaked above 120 percent.\u00a0 Canada is well on its way above 160 percent:<\/p>\n

\"Canada-US-debt\"<\/a><\/p>\n

<\/p>\n

<\/a>…click on the above link to read the rest of the article…<\/span><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

The Canadian housing bubble makes California real estate look sensible: Crash in energy prices will put pressure on home values up north as Canadians go into maximum leverage. \u00bb Dr. Housing Bubble Blog. As the year comes to a close, it is useful to put things into perspective.\u00a0 Sure, California has a love affair with […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[103,406,2340,1775],"class_list":["post-3909","post","type-post","status-publish","format-standard","hentry","category-economics","tag-canada","tag-housing-bubble","tag-housing-market","tag-oil-price-collapse"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/3909","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3909"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/3909\/revisions"}],"predecessor-version":[{"id":3910,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/3909\/revisions\/3910"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3909"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3909"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3909"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}