Cut rates, you CANNOT without destroying Canadians, especially the younger generation standard of living. we have a 3% inflation print, with 2% of the 3% coming directly from shelter costs, unemployment is under 5%, and stock market is at all time highs, no room to cut really....the first thing that needs to be done is on the FISCAL side, the Feds needs to stop running up debt, and slow immigration right back down to 250k a year.
Let's face the facts. Food prices have risen by an average of 30% to 50%, services by over 25%, gas prices are up, rents have increased by over 30%, and even car prices are climbing. Just because inflation appears to be under control doesn't justify reintroducing cheap debt into the system. This is exactly what led to inflation surges like those seen in the 1980s. The combination of cheap debt, unchecked immigration, and rampant speculation is what got us into this predicament.
Lots of Einsteins in the comment section that think they understand what high interest rates long term does to a Country. Wait until you lose your job after the company you work for closes their doors maybe then you'll understand why.
So... fix those systems. Likewise in the US, but if the rates are cut like they were in 2021-2022. That is what got the US into their mess. For every 1 percent move down means a 10K price hike. Unless you have a depression level of housing and little to no people or firms willing to hold the bag in hopes just not to lose all the rest. If you can reasonable buy safely then your fine. But that can be any time high or low rates, prices, shortages. I was looking at a home low-median income range. There were 10 other bids in a so-so area in the US. The market is wayyyyy to hot. We need to build 6 new homes for each 1 rental property, or control immigration, or foreign investors, or investors in general committing Usery in the ranges of 80K-310K single family homes is disgusting.
The influx of temporary residents, including students, led to a significant surge in the housing Market. However, the current trend of escalating mortgage costs and a declining number of these temporary residents is likely to pop this housing bubble.
Ben Tal is preaching to the choir here. He's saying exactly what realtors want to hear. Imagine Tal being invited to talk to the realtors and say hey the best thing we need for this economy is a real positive interest rate rather than the notional interest rate that we have been living with for 15 years? The fall out of that is simple. Housing is poor investment in that environment.
Basically like how the B o C is picking from multiple inflationary indicators to fit their policy with the narrative that they want to pursue? 🤔 Your perspective is valid, I mean we did acknowledge this fact during the video. But aside from that observation - to create a stimulating discussion - pick apart Ben’s points that you perhaps disagree with and let’s start there. And truly - do you think that any environment with high interest rates would benefit anyone paying for cost of livelihood in general? Where do you see a reality where high costs of living (food clothing shelter) benefit citizens vs those who produce and sell such things?
@@johnderperez the reality is that the BOCs rate isn’t going to mean much when sovereign debt (massive amounts of which will be issued) will do their job for them. US treasuries yielding 4-5% are going to keep the cost of capital that high, no matter what the BoC does. So imagine this, the BoC drops rates, the overnight rate is 3.5. Im a bank, I’m competing with other banks in an auction. I’m going to bid that bond at a risk adjusted rate to the US bond. So if I’m getting that rate from a treasury, what am I going to price mortgages (which compete for the same dollars) at? Higher In short, Ben Tal is kind of lying to y’all. He knows all this stuff, but he wants to sell the narrative y’all already bought.
@@johnderperez the real question for tal is what will the US bond market do. What will the 10s be priced at. That is the issue and I don’t know the answer to that, wish I did, I’d be a trillionaire.
@@randysalerno6274high in a relative sense - compared to cheap, not so long ago rates these are high. Compared to double digit rates in the 90s, we’re low. So a matter of perspective depending on who’s looking at it and with what lens they’re seeing it.
I don't trust realtors assessments or suggested actions towards the overall economy of Canada. CREA members have a vested interest in keeping housing sales and property values high in order to maximize their members commissions. I realize there are ethical realtors that see the big picture, however most are more interested in their own personal sales numbers and income. Most would let the rest of the country fall further into economic despair in order to maximize their own commissions.
Any real estate organization that relies on sales - yes you should carefully analyze, observe and challenge the logic of what’s being presented. Do what’s right for you and don’t buy blindly.
Cut rates, you CANNOT without destroying Canadians, especially the younger generation standard of living. we have a 3% inflation print, with 2% of the 3% coming directly from shelter costs, unemployment is under 5%, and stock market is at all time highs, no room to cut really....the first thing that needs to be done is on the FISCAL side, the Feds needs to stop running up debt, and slow immigration right back down to 250k a year.
Let's face the facts. Food prices have risen by an average of 30% to 50%, services by over 25%, gas prices are up, rents have increased by over 30%, and even car prices are climbing. Just because inflation appears to be under control doesn't justify reintroducing cheap debt into the system. This is exactly what led to inflation surges like those seen in the 1980s. The combination of cheap debt, unchecked immigration, and rampant speculation is what got us into this predicament.
The guy on stage must have his house on sale and not getting the Feb -2022 pick rate😂.
😬😬😬
They will cut rate only in the event of heavy recession.
Lots of Einsteins in the comment section that think they understand what high interest rates long term does to a Country. Wait until you lose your job after the company you work for closes their doors maybe then you'll understand why.
So... fix those systems. Likewise in the US, but if the rates are cut like they were in 2021-2022. That is what got the US into their mess. For every 1 percent move down means a 10K price hike. Unless you have a depression level of housing and little to no people or firms willing to hold the bag in hopes just not to lose all the rest. If you can reasonable buy safely then your fine. But that can be any time high or low rates, prices, shortages. I was looking at a home low-median income range. There were 10 other bids in a so-so area in the US. The market is wayyyyy to hot. We need to build 6 new homes for each 1 rental property, or control immigration, or foreign investors, or investors in general committing Usery in the ranges of 80K-310K single family homes is disgusting.
The influx of temporary residents, including students, led to a significant surge in the housing Market. However, the current trend of escalating mortgage costs and a declining number of these temporary residents is likely to pop this housing bubble.
Ben Tal is preaching to the choir here. He's saying exactly what realtors want to hear. Imagine Tal being invited to talk to the realtors and say hey the best thing we need for this economy is a real positive interest rate rather than the notional interest rate that we have been living with for 15 years?
The fall out of that is simple. Housing is poor investment in that environment.
Basically like how the B o C is picking from multiple inflationary indicators to fit their policy with the narrative that they want to pursue? 🤔
Your perspective is valid, I mean we did acknowledge this fact during the video.
But aside from that observation - to create a stimulating discussion - pick apart Ben’s points that you perhaps disagree with and let’s start there.
And truly - do you think that any environment with high interest rates would benefit anyone paying for cost of livelihood in general? Where do you see a reality where high costs of living (food clothing shelter) benefit citizens vs those who produce and sell such things?
@@johnderperez the reality is that the BOCs rate isn’t going to mean much when sovereign debt (massive amounts of which will be issued) will do their job for them.
US treasuries yielding 4-5% are going to keep the cost of capital that high, no matter what the BoC does.
So imagine this, the BoC drops rates, the overnight rate is 3.5. Im a bank, I’m competing with other banks in an auction. I’m going to bid that bond at a risk adjusted rate to the US bond. So if I’m getting that rate from a treasury, what am I going to price mortgages (which compete for the same dollars) at? Higher
In short, Ben Tal is kind of lying to y’all. He knows all this stuff, but he wants to sell the narrative y’all already bought.
@@johnderperez the real question for tal is what will the US bond market do. What will the 10s be priced at.
That is the issue and I don’t know the answer to that, wish I did, I’d be a trillionaire.
@johnderperez the problem is,these aren't "high" interest rates.
@@randysalerno6274high in a relative sense - compared to cheap, not so long ago rates these are high. Compared to double digit rates in the 90s, we’re low. So a matter of perspective depending on who’s looking at it and with what lens they’re seeing it.
I do like Ben's comments on immigration, housing and mickey mouse schools... he's right on that and good for calling it out
I don't trust realtors assessments or suggested actions towards the overall economy of Canada. CREA members have a vested interest in keeping housing sales and property values high in order to maximize their members commissions. I realize there are ethical realtors that see the big picture, however most are more interested in their own personal sales numbers and income. Most would let the rest of the country fall further into economic despair in order to maximize their own commissions.
Any real estate organization that relies on sales - yes you should carefully analyze, observe and challenge the logic of what’s being presented. Do what’s right for you and don’t buy blindly.
Cut rates now. We need to preserve house prices.
lololol
Preserve the wealth for the wealthy!
Yes, bring interest rates way down! What could go wrong?
LOL not waaaaay down... maybe just a tad bit. Take away mortgage interest costs from CPI and inflation ain't that bad... so maybe just a touch.. 🤷♂
realtors are in recession.
Witty.
Cut rates will lead to more inflation. Canadian dollar will tank and with that ALL imports will increase in price. Inflation is our future,
this Tal guy seems silly. hey Tal why not print more and borrow more money too.
He didn’t say to print more money nor borrow more money though.
@@johnderperez shut up silly woman
you seem to not comprehend rhetoric. like Tal does not comprehend economics. @@johnderperez
@@Junctionist no I don't.