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So household spending increases were the greatest contributor to GDP growth and were basically funded by a decrease in the household savings rate. I'm sure this is totally sustainable guys.
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# ? Aug 29, 2014 14:48 |
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# ? May 21, 2024 11:31 |
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I don't know what you're concerned about. As I recall it, in the US in the 1920's increasing standards of living were mostly funded by a rapid swelling of consumer credit and decreased household savings, and that just continued uninterrupted forever.
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# ? Aug 29, 2014 16:02 |
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peter banana posted:I like the "WIN AN INCOME PROPERTY WORHT OVER $60,000!!!!!" If you're older than 35, you need to have some property in order to become a senator, which is a job and that means you would have an income, therefore it is an income property.
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# ? Aug 29, 2014 17:57 |
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Grand Theft Autobot posted:I don't know what you're concerned about. As I recall it, in the US in the 1920's increasing standards of living were mostly funded by a rapid swelling of consumer credit and decreased household savings, and that just continued uninterrupted forever. Heh, I'm not sure if your textbooks went up this high, but you're missing out on a very important period of history where this was actually disastrous to the world. They called it the Great Depression, and people had to light oranges on fire, truckers gave large tips to the ones that didn't need it, and men drank from women's breasts because there was so little food
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# ? Aug 29, 2014 17:58 |
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Professor Shark posted:Heh, I'm not sure if your textbooks went up this high, but you're missing out on a very important period of history where this was actually disastrous to the world. They called it the Great Depression, and people had to light oranges on fire, truckers gave large tips to the ones that didn't need it, and men drank from women's breasts because there was so little food bro, it was (pretty hilarious) sarcasm
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# ? Aug 29, 2014 18:14 |
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Cultural Imperial posted:bro, it was (pretty hilarious) sarcasm
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# ? Aug 29, 2014 20:34 |
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http://www.financialpost.com/m/wp/n...date=2014-08-31 No one really knows if the foreigners have any effect on the canadian housing market. Surprise canadians are dumb as poo poo.
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# ? Aug 31, 2014 20:03 |
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Attention SJWs, don't click on this or read it at all because it's from a ~neoliberal source and not socialist people's revolution weekly or whatever. http://www.economist.com/news/finan.../pe/frothyagain quote:BEFORE the financial crisis of 2007-08 low long-term interest rates fuelled an extraordinary house-price boom around the world. That bubble was pricked in the crisis and subsequent recession. Since then, however, central banks’ attempts to crank up the recovery by pushing down long-term interest rates to new lows have had a predictable consequence in many property markets. House prices are now rising in 18 of the 23 economies that we track, in eight of them at a faster pace than three months ago (see table).
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# ? Aug 31, 2014 20:07 |
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Cultural Imperial posted:Attention SJWs, don't click on this or read it at all because it's from a ~neoliberal source and not socialist people's revolution weekly or whatever. You don't need to provide warnings for your sources, we just use your avatar as a system.
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# ? Aug 31, 2014 20:25 |
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Hey, now we've got Australia and New Zealand joining the bubble club.
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# ? Sep 1, 2014 18:11 |
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Professor Shark posted:You don't need to provide warnings for your sources, we just use your avatar as a system. If you don't have him on ignore by now you are doing this thread wrong.
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# ? Sep 1, 2014 18:48 |
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http://www.moneysense.ca/columns/did-i-just-make-a-big-mistake-by-buying-a-housequote:A few weeks ago—after spending much of the last decade warning readers against the perils of Canada’s overheated housing market—I did the unthinkable: I bought a place. When I told MoneySense investing columnist Norm Rothery, he was dismayed. Didn’t I know that homes in Toronto are way overpriced? Why would any sane person pay such a ridiculous sum for such a tiny shack? I love how houses aren't held to the same standard of scrutiny when ascertaining affordability. It's the only consumer good out there where you can justify measuring affordability by your ability to service the debt. This guy has admitted that the house is so expensive that he has convinced himself that it isn't an investment and it's ok to spend a shitload of money on it because he's buying it for the right reasons (whatever the gently caress they might be). loving dumb rear end e: great rebuttal http://www.holypotato.net/?p=1261 quote:Let’s replace “house” with some other thing that isn’t so loaded and traditionally linked with a mortgage and the point should be clearer: “I want to eventually retire with a paid-off boat.” Well now it’s clearer: you could buy a boat now with a boat loan and pay it down, or you could rent a boat, save up, and buy one with cash when appropriate. That makes even more sense if you think there’s a good chance boats might be 20% cheaper in the future and that renting is less expensive for now — how does buying now make sense if your goal is to have one at some point before retirement? If there was a big boat sale on then maybe it would make sense to take the plunge and get a loan if you needed to. Instead, it looks like many buyers these days are getting suckered by the no interest until 2018 promotional event. namaste friends fucked around with this message at 01:50 on Sep 2, 2014 |
# ? Sep 2, 2014 01:46 |
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tagesschau posted:Hey, now we've got Australia and New Zealand joining the bubble club. I've been hearing about Australia being in a bubble for like 2 years now.
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# ? Sep 2, 2014 13:59 |
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computer parts posted:I've been hearing about Australia being in a bubble for like 2 years now. ... so?
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# ? Sep 2, 2014 15:51 |
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eXXon posted:... so? That's not really "joining".
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# ? Sep 2, 2014 15:52 |
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http://datarific.blogspot.ca/2014/08/we-are-not-resource-economy.htmlquote:We Are Not A Resource Economy!! We're not a mere resource economy you guys!
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# ? Sep 2, 2014 16:02 |
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Good to hear we have a strong diversified economy.
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# ? Sep 2, 2014 16:36 |
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Cultural Imperial posted:Good to hear we have a strong diversified economy. I'm struggling to understand how real estate can be an economic driver on its own as opposed to a natural consequence of robust other economic activity (as occurs in the Bay Area, for example). e.g. It's not uncommon to hear the logic "real estate is doing well, so we have a robust economy" when it seems to me that the converse is the only thing that could possibly make sense as a statement.
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# ? Sep 2, 2014 17:53 |
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Lexicon posted:I'm struggling to understand how real estate can be an economic driver on its own as opposed to a natural consequence of robust other economic activity (as occurs in the Bay Area, for example). Home building creates a ton of jobs, which drives demand, drives up prices as the construction workers can afford to buy houses and etc. Home construction is one of the few full cycle industrial activities left. That said the reason the US, Ireland, Spain are and where so hosed is so many people worked in construction that a slow down of building caused layoffs which caused missed mortgages and foreclose that rippled into the rest of the economy.
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# ? Sep 2, 2014 18:15 |
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sbaldrick posted:Home building creates a ton of jobs, which drives demand, drives up prices as the construction workers can afford to buy houses and etc. Home construction is one of the few full cycle industrial activities left. But doesn't that ultimately just borrow demand from the future if there's not an underlying economy to support it? I simply don't see how house trading and house building can be causal of a strong economy. I can see how it is a consequence of one.
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# ? Sep 2, 2014 18:50 |
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I think it's been policy to shift focus on stimulating FIRE in order to hold Canada over until the US (and the rest of the world) recovered. As to how it'd land softly, I don't think anyone really cared back in 2008.
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# ? Sep 2, 2014 20:06 |
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Lexicon posted:But doesn't that ultimately just borrow demand from the future This is how capitalism works and why debt must always increase. Workers must be paid less than the product of their labor for profit to exist; so you have to steal demand from the future if you want there to be enough money around to pay for the products of today.
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# ? Sep 3, 2014 13:19 |
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Welp, I heard the craziest condo purchase plan from a coworker yesterday. He bought a condo in Thornhill, ON based off of plans and spec (he brought it up because he drove past the site on the weekend and they had broken ground!) which will be move in ready in January 2016. Instead of coming to the developer with a down payment he said, "I paid $5000 down, and I'll pay $1200 a month until move-in towards the down payment! What a great purchase plan!" But don't worry guys, the housing bubble in Canada is "different this time."
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# ? Sep 3, 2014 13:38 |
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Haha holy poo poo
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# ? Sep 3, 2014 13:58 |
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https://twitter.com/BenRabidoux/status/507220024596377601quote:
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# ? Sep 3, 2014 18:35 |
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peter banana posted:Welp, I heard the craziest condo purchase plan from a coworker yesterday. He bought a condo in Thornhill, ON based off of plans and spec (he brought it up because he drove past the site on the weekend and they had broken ground!) which will be move in ready in January 2016. Instead of coming to the developer with a down payment he said, "I paid $5000 down, and I'll pay $1200 a month until move-in towards the down payment! What a great purchase plan!" I wonder if they delay opening the condo if he just keeps on paying $1200 a month forever?
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# ? Sep 3, 2014 19:01 |
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Manufacturing and resource extraction generates incomes for many people which drives consumption. Credit generates incomes for many people which drives consumption. Capitalism requires consumption so in the absence of the former I guess the government can print money to drive the latter.
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# ? Sep 3, 2014 20:08 |
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Professor Shark posted:Heh, I'm not sure if your textbooks went up this high, but you're missing out on a very important period of history where this was actually disastrous to the world. They called it the Great Depression, and people had to light oranges on fire, truckers gave large tips to the ones that didn't need it, and men drank from women's breasts because there was so little food Just this morning I was at work and saw a front-page article talking about the labour shortage in
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# ? Sep 3, 2014 22:18 |
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Isentropy posted:Just this morning I was at work and saw a front-page article talking about the labour shortage in Let's all hope into our cars and journey there, fellow Mary's!
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# ? Sep 4, 2014 02:16 |
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Rutibex posted:This is how capitalism works and why debt must always increase. Workers must be paid less than the product of their labor for profit to exist; so you have to steal demand from the future if you want there to be enough money around to pay for the products of today. This is only true if the laborers are directly buying the things they make. You can have a bunch of laborers that build a rich guy's house, and they can still be paid enough to afford a modest house (though often they aren't). Also there's a question of scale - for a factory worker, if they get paid X to make a thousand toys, they don't have to buy a thousand toys (nor do they really have the inclination to), they just need one or two of them, if any.
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# ? Sep 4, 2014 02:21 |
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https://businessincanada.com/2014/09/04/canada-trade-balance-july-big-surplus/ Canada's exports are doing really really really well.
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# ? Sep 4, 2014 15:01 |
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Lexicon posted:But doesn't that ultimately just borrow demand from the future if there's not an underlying economy to support it? I simply don't see how house trading and house building can be causal of a strong economy. I can see how it is a consequence of one. At one point during the start of the boom there was a huge demand for housing after mass scale building stopped in the late 70's/early 80's. While building did go on it wasn't to the scale that went on from about 1995 to 2008 or so in the US and is still going on today in Canada. At least some of that building was pent of demand from the economy that snowballed boosting the economy as a whole. So yes, at least 5 or 6 years of building was supply/demand building. If you take a look at my city of Ottawa at least 300,000 people now live in areas of the city that didn't exist in 1995 (that is by the way a lowball estimate of population change in Ottawa-Gatineau)
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# ? Sep 4, 2014 20:09 |
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Cultural Imperial posted:https://businessincanada.com/2014/09/04/canada-trade-balance-july-big-surplus/ That's two quarters in a row of strong exports to Europe. Harper will surely take credit for implementing the still-unapproved CETA. How does this relate to the housing bubble though?
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# ? Sep 4, 2014 20:14 |
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It means the loonie will keep going down which means inflation may accelerate. If this keeps happening we might see an increase in interest rates sooner rather than later. This is all supposed to balance out with employment increasing and salaries increasing, however you can't export houses or any other FIRE products. I don't really see how this will help the largest contributing sector of the GDP as housing completion ramps up. Maybe some of the pros can weigh in on this. namaste friends fucked around with this message at 23:59 on Sep 4, 2014 |
# ? Sep 4, 2014 23:55 |
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The odd bit is that exports increased at the same time as unexportable industries became larger pieces of the GDP pie. Is there any explaination for the seeming contradiction?
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# ? Sep 5, 2014 00:44 |
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JawKnee posted:The horror! I believe we have a phase in period....
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# ? Sep 5, 2014 01:46 |
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Cultural Imperial posted:It means the loonie will keep going down... What, just because of a trade surplus? That seems backwards. Also, most of the increase was still from exports to the US. So if the US economy recovers at a similar pace and the price of oil doesn't drop much further, why should CAD keep falling?
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# ? Sep 5, 2014 02:09 |
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eXXon posted:What, just because of a trade surplus? That seems backwards. http://www.frbsf.org/education/publications/doctor-econ/1999/october/trade-deficit-import-export-imbalance-currency e: edited for snark namaste friends fucked around with this message at 02:21 on Sep 5, 2014 |
# ? Sep 5, 2014 02:19 |
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But the article you posted was about a record trade surplus
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# ? Sep 5, 2014 02:29 |
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# ? May 21, 2024 11:31 |
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eXXon posted:But the article you posted was about a record trade surplus I'm not sure what you mean.
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# ? Sep 5, 2014 02:48 |