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A wave of ratings downgrades to hit developed countries in coming years will spare Canada, says...

A wave of ratings downgrades to hit developed countries in coming years will spare Canada, says Citi's Mike Saunders. The 2012 federal and provincial budgets - while maybe putting a drag on near-term growth - should strengthen the country's already sound fiscal position.
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Comments (3)
  • Dogpound
    , contributor
    Comments (141) | Send Message
     
    Until our government is downgraded from our coming housing collapse.

     

    At least our banks will be in good shape! Thanks to CMHC the first 25% loss on housing will be the taxpayers.
    19 Apr 2012, 03:34 PM Reply Like
  • mogando
    , contributor
    Comments (313) | Send Message
     
    It's great that Canada is doing well, but it sucks for someone who loves visiting the country frequently (like me), since the CAD will get even more expensive than before.

     

    God I miss the good ole' days when USD-CAD was 1.6. Now parity is the norm.
    19 Apr 2012, 03:41 PM Reply Like
  • Conventional Wisdumb
    , contributor
    Comments (1802) | Send Message
     
    I wonder if there is a bubble in real estate in Canada. As an expat I am totally blown away by how much the price of housing has gone up in Toronto. "Shacks" that no one would have touched 10 years ago are now selling well above asking price.

     

    Compare the price of a home sold in 2002 versus now and if you are unfamiliar with the metrics, I am sure it will blow you away. Disposable income does not even come close to keeping up with price appreciation and mortgage debt is at a record high. Sound familiar?

     

    The thing about a real estate bubble is that you don't know you are in one until it bursts and then everybody realizes it was "obvious" in hindsight.

     

    The last time this happened in Canada was the 88-90 period which coincided with a US bust and the effects were devastating to the economy. I think the potential for an event like this occurring in Canada is being grossly underestimated.
    19 Apr 2012, 03:56 PM Reply Like
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