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A "lost decade?" The U.S. has already had that and more, argues Stephen Gordon, who shows real...

A "lost decade?" The U.S. has already had that and more, argues Stephen Gordon, who shows real per capita net worth is back to 1999 levels. Housing is even uglier, with per capita equity retreating to 1978's figure. A Canadian, Gordon compares the data to his country, and happily declares, "Canada is not the U.S."
Comments (12)
  • losbronces
    , contributor
    Comments (617) | Send Message
     
    Not yet anyway. Checked housing prices in Vancouver, Toronto or even Saskatoon lately? How many people can actually afford those prices?
    22 Jun 2011, 05:26 PM Reply Like
  • montanamark
    , contributor
    Comments (1434) | Send Message
     
    you saying those prices are high or strong?
    22 Jun 2011, 05:36 PM Reply Like
  • losbronces
    , contributor
    Comments (617) | Send Message
     
    I am saying that housing prices are getting out of reach for the average person in Canada. When you get to the point where the prices are too high to be affordable, a major correction is inevitable. I know the lending standards are better than in the U.S., but $1 million doesn't buy much in either Vancouver or Toronto.
    22 Jun 2011, 05:40 PM Reply Like
  • Zigg
    , contributor
    Comments (55) | Send Message
     
    The wealthy Chinese laying a strategy to flee China can afford those prices
    22 Jun 2011, 09:30 PM Reply Like
  • bob adamson
    , contributor
    Comments (4555) | Send Message
     
    losbronces -

     

    The global financial crisis and resulting recession has been difficult for all advanced economies and each has experienced problems and had to respond in its own unique way. Canada, all will agree, has navigated itself well in these circumstances to date but at the cost of generating high residential housing prices and high mortgage and consumer debt levels. As you suggest, this may well pose difficulties for Canada and its people if a prolonged double dip in the global economy now occurs.

     

    Even so, Canada should continue to manage well going forward and, on balance, her people prefer to have the challenges they now face (and face going forward) to those faced in most other countries including the US.
    24 Jun 2011, 10:23 PM Reply Like
  • losbronces
    , contributor
    Comments (617) | Send Message
     
    Canada is also helped by having a strong resource-base (oil, natural gas, hydro-power, coal, phosphates, lumber, etc.) boosting their economy given current global growth.

     

    I wish you well, I have friends and family in Vancouver and Toronto. I just see similiarities between those housing markets and what I observed in Phoenix and Las Vegas.
    26 Jun 2011, 09:02 AM Reply Like
  • golongcheckdownmkt
    , contributor
    Comments (40) | Send Message
     
    Canada would be Germanada, show the USA some respect Canadia
    22 Jun 2011, 05:26 PM Reply Like
  • bob adamson
    , contributor
    Comments (4555) | Send Message
     
    golongcheckdownmkt -

     

    Am I to understand your comment as a reference to the roles of Canada (my country) and the US during WW II?
    24 Jun 2011, 10:12 PM Reply Like
  • kcr357
    , contributor
    Comments (557) | Send Message
     
    If per capita net worth is low, then we just measure something else, such as per capita iphones. Voila, the US is back on top, baby!
    22 Jun 2011, 05:38 PM Reply Like
  • SA Editor Stephen Alpher
    , contributor
    Comments (540) | Send Message
     
    Ok, that was funny!
    22 Jun 2011, 05:46 PM Reply Like
  • 1980XLS
    , contributor
    Comments (3314) | Send Message
     
    Please compare those stats to the average TBTF Bankster's 1999 numbers, since the repeal of Glass-Stegal, and you might find where all the money went.
    22 Jun 2011, 06:00 PM Reply Like
  • Rob Viglione
    , contributor
    Comments (331) | Send Message
     
    That's just really really sad...but to be expected. You don't manufacture real growth by massive government spending on credit and printing money to subsidize it.
    22 Jun 2011, 11:49 PM Reply Like
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