Are The Posted Inflation Rates A Lie?

Inflation is a key factor when evaluating an economy. If inflation is at abnormally high levels, there are many negative side effects. These side effects may include the BoC (Bank of Canada) raising interest rates, which as we know, decreases the purchasing power. Inflation can be defined as a 'sustained increase in the general level... Continue Reading →

Real Estate is Making Our Economy Look Weak

Recently released first quarter numbers for economic growth in Canada might seem a bit underwhelming. Stephan Poloz, the Governor of Bank of Canada, outlined 2 reasons for this; a slowing of the housing market and weak exports. However, even with the unsatisfactory results from Q1, the outlook for Q2 is still fairly optimistic. Rather than... Continue Reading →

The Canadian Mortgage Conundrum

If we look back at recent history, we can all remember the global economic crisis of 2008. Of course, many of us know that this crisis was triggered by a bubble in residential housing propped up by the availability of sub-prime mortgages. The collapse of the housing market had such a widespread effect that there... Continue Reading →

How High Can Interest Rates Go?

For those of us that tune into the financial news regularly, we know that our central banks - both in the US and in Canada - are a little more hawkish than they've been in the past few years. In simple terms, they're raising interest rates. Slowly. Generally, interest rates only increase when economic fundamentals... Continue Reading →

Blog at WordPress.com.

Up ↑