Quote:
Originally Posted by donk.
Only one thing will cause a crash. Interest rates rising. Its starting in the US, but it has not hit canada yet.
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The feds know this, and it has to terrify them. The US raising it's interest rates is going to have a negative effect on the Canadian dollar. We're already at a 10 year low with the loonie, so another hit is going to hurt us all in the wallets.
But the thought of a Canadian interest rate hike isn't even on the average citizens radar. We're holding a 1.65:1 debt ratio on the national average, and people aren't suspending their purchases. Everywhere you turn folks are driving new cars, and wearing new Jordans. It's insanity. The gov't couldn't turn away foreign money, as it was the only thing keeping our economy going. Of course there is more to a country than it's economy...
I know we have been saying this for years, but something has to give and that is interest rates. Combine a higher rate with a drop in foreign investment and we're in a world of hurt.