Global tensions and house prices may stroke inflation: Macklem
HTML-код
- Опубликовано: 29 сен 2024
- Warren Lovely, chief rates strategist and managing director at National Bank Financial, Etienne Bordeleau-Labrecque, vice president and portfolio manager at Ninepoint Partners and Christine Tan, portfolio manager at SLGI Asset Management, join BNN Bloomberg to discuss the latest BoC rate decision.
Subscribe to BNN Bloomberg to watch more videos: / bnnbloomberg
Connect with BNN Bloomberg:
For the latest news visit: www.bnnbloombe...
For a full video offering visit BNN Bloomberg: www.bnnbloombe...
BNN Bloomberg on Facebook: / bnnbloomberg
BNN Bloomberg on Twitter: / bnnbloomberg
BNN Bloomberg on Instagram: / bnnbloomberg
BNN Bloomberg on LinkedIn: / bnn-bloomberg
--
BNN Bloomberg is Canada’s only TV service devoted exclusively to business, finance and the markets.
Because so many people overpaid for homes even while loan rates were low, I believe there will be a housing catastrophe because these people are in debt. If housing costs continue to drop and, for whatever reason, they can no longer afford the property and it goes into foreclosure, they have no equity since, even if they try to sell, they will not make any money. I believe that many individuals will experience this, especially given the impending mass layoffs and rapidly rising living expenses.
I advise you to invest in stocks to balance out your real estate, Even the worst recessions offer wonderful buying opportunities in the markets if you're cautious. Volatility can also result in excellent short-term buy and sell opportunities. This is not financial advice, but buy now because cash is definitely not king right now!
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
Would you mind providing details on the advisor who helped you? saving for a pension through a corporate program since the age of 18. I hit greater tax along the road, so I increased my company pension with a SIPP (tax benefits). I'm now 50 and would love to expand my finances more aggressively; there are a few automobiles I still want to drive and a few mega-vacations that I still want to take.
Finding financial advisors like Melissa Terri Swayne who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
I located her, sent her an email, and scheduled a call; hopefully, she will reply because I want to start the new year off financially strong.
The rate cut won't last long. Macklem's comment is pointing in that direction, the cuts are TEMPORARY.
Intensifying global geopolitical tensions in Europe, West Asia (Middle East), and East Asia would lead to HIGH INFLATION, Global Energy and Supply Chain Crises, and ultimately follow the MASSIVE RATE HIKES.
The rate HIKE will be set way higher than 5%.
The rates will be settled around 6 - to 7%.
1970s Vietnam era inflation = 2020s Ukraine era inflation.
So stagflation?
So stagflation?
Fucking RUclips blocking comments
Nope, wrong.
Cuts will continue throughout 2024.... coming down to 4 percent by summer 2025.
money printing to bail out bankers
causes inflation.
For the last 6 years, with the low rate and free money, it was easiest and more reward to buy and resale than to take the risk of building new homes or condos! Regulation for new buildings in big cities is a nightmare!
Rate cut cheer leaders are all out today oh my gosh!
Tinkering with interest rates won't solve the problem:
Far too many people chasing far too few homes.
had to get this out ASAP forgot to spell check that stroke, huh
From September will get 40 years mortgages again and affordable housing 😊
These fools are PR folks. They can't predict anything
i realised that a long time ago.
Holy fuck has it been 4 years already. Damn.. I’m done cutting stuff I need. More rate cuts soon please. Tired of this depression
CLOWARD-PIVEN
Bitcoin has grown 40% year on average for the last 10 years. Simple savings strategy.
Absolute losers
Trolls who don't understand economics, blamed Trudeau for the high interest rate, are they going to give him credit for it being lowered?
Actually Trudeau has nothing to do with either. BoC is independent of Federal government.
I thought Trudeau said the bank of Canada was its own identity. They operate on their own.
We all know that’s just a lie but just saying.
Yes their decisions help raise or lower interest rates.
@@freedomlife3623I'm aware but trolls aren't
@@freedomlife3623 Since 1938 they have been a Crown corporation belonging to the federal government.
Wtf are you talking about.
The only way Canada survives is by crashing the huge bubbles in the economy but then Canada might be the bubble itself.
Our economy is struggling with uncertainties, housing issues, foreclosures, global fluctuations, and the pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.
With the US dollar losing value to inflation and other currencies gaining traction, uncertainty looms. Yet, many still trust in the dollar's perceived safety. Worried about my $420,000 retirement savings losing value, I seek alternative security for my money.
With my demanding job, I lack time for investment analysis. For seven years, a fiduciary has managed my portfolio, adapting to market conditions, enabling successful navigation and informed decisions. Consider a similar approach.
This is definitely considerable! Do you think you could suggest any professionals or advisors I can get on the phone with? I'm in dire need of proper portfolio allocation.
Just research the name Desiree Ruth Hoffman. You’d find necessary details to work with a correspondence to set up an appointment.
I appreciate it. After searching her name online and reviewing her credentials, I'm quite impressed. I've contacted her as I could use all the help I can get. A call has been scheduled.
The cheaper way of life in Canada was meant to offset the shit and depressing cold weather for 8 months a year. That's no longer the case so why stay?.
Bull's eye ❤. Makes no sense to live here
100% right
I’m preparing to leave.
@@ladyjade6446where you gonna go pretty lady
It's horrible that in Canada they don't let people get those fixed rates for 3 years. When the rates were under 2% many in the USA managed to secure 2%/30years fixed rate now they are set for life while we getting raped by the mortgage system of Canada.
You mean "fixed rates for '30' years"., right?
We are governed by a mafia.
Pay cash for a house and don't worry about rates albeit lower rates pushes up home prices and capital leaves the country in search of better returns elsewhere. Money only flocks to countries such as Mexico were the currency appreciates in value not where the currency depreciates in value like in Canada.
Extremely irresponsible to cut rates at this time. Take a look around. Prices for all the essentials are still rising quickly and the average Canadian is struggling. Responsible thing to do would be to take the pain, let the pop happen, struggle and then rebuild on an at least somewhat stable foundation. Instead the towel gets thrown in and we kick the can down the road for and even larger disaster down the road. No guts. For myself I will do fine. I positioned myself to benefit from rate cuts but most Canadians will not be able to do this..
Wages gains just came in today at 5.1 percent year over year. With a rate cut Canada is looking at a wage price spiral and runaway inflation as well as a depreciating currency the same way Argentina initially went in the wrong direction.
@@parkerbohnn Just scary.... Country being driven into the ground.
“Relatively good shape”? What country is that putz living in?
JUSTIN TRUDEAU WILL BE REMEMBERED AS THE WORST PRIME MINISTER CANADA HAS EVER HAD..............1,000 REASONS WHY A COUNTRY SHOULD NEVER ELECT A DRAMA TEACHER TO RUN A COUNTRY..............ENOUGH IS ENOUGH..............CANADIANS ARE TIRED AND FED UP WITH DRAMA
Maybe get a job
Hey look, someone who doesn’t know what he’s talking about…. Crazy….
CHILLL OUUUUUUUTTT EVERY GOVERNMENT WORLDWIDE ARE DEALING WITH SIMILAR ISSUES.................... ONCE IN A LIFETIME PANDEMIC .................... MANYYYYY GEOPOLITICAL ISSUES ................ THIS IS MESSING THINGS UP ............... PIERRE POILIEVRE WOULD NOT HAVE DONE MUCH BETTER AND BTW HE HAS BEEN IN OTTAWA THIS ENTIRE TIME..............
Trudeau will go down in history as the Prime Minister that tried to fix everything all at the same time which ended up making everything exponentially worse. He never learned for every winner there's a loser he just tries to make everyone a winner.
Us households hold less debt, make more money and the dollar has more value.
They have Mexicans pumping houses like no tomorrow! Where’s our Mexicans!
And they pay less taxes on their ydaely income and also in consumer tax at shops. They need to pay an healthcare insurance but it gives them I stand service of the best quality. Here you wait forever and can die or get at the least at lot worst before getting treated.
They also get to write off thier mortgage interest on primary residence
@@yingyang1875true? wow, and yesterday we got a netflx prime streaming tax 😮😮😮
@@argeldelacruz9545no mexicans...only Indians.
How does our dollar tanking help inflation somebody explain?
by making the borrowing $ cost more, it's means less circulation of $ currency, which means as the supply goes down, the value goes up.
if they didn't do this, we would all face hyperinflation like in Argentina for example, and would hold worthless paper.
it sucks either way, but it was the only shitty option... thank COVID and printing $ during that time for this.
these are the post COVID issues playing out
@coreyvanular6195 that’s a short sighted mindset. Yes the cad will decline in short run but cutting earlier will simulate economic activity and eventually bringing in foreign investors sooner and thus improving currency in long run.
@@CanadaTop5
Foreign investors don't like Trudeau's policies.
They are not going to consider Canada until he's gone, which is still a long time from now.
It’s called balance
@@barsenovic printing money while SIMULTANEOUSLY shutting down a ton of business. Economic suicide, and we warned them.
Nothing makes sense in Canada! We’re in a yo yo. High Risk !!
Just sharing some facts on why Canada is a mess and why so many young Canadians would chose America:
Median Canadian income 2023 is $41,650/yr. Half of Canada makes less than that... hence, median.
The average salary is a lie because the wealthiest 10% bring the average up to $61,000 per year. The vast majority of Canadians do not make $61,000 per year. As median income indicates, 50% of Canadians make less than $41,650/yr... so probably 70% of Canadians make less than the average salary per year.
Many government employees make 90k/yr or more, and their incomes are paid by taxes generated from private sector Canadian employees who make half what the government workers make. Literally the poor feeding the rich... and the government employees aren't rich, they are just holding on to middle class.. barely.
Canada is failing most of it's citizens today. Specially the young, who enter the workforce in the lowest paying jobs and look at mile high rent and housing that is untouchable. Leaving your country is not easy, and is not a decision to be made lightly, but almost 100,000 people chose to do so last year. Several thousand of them were young doctors newly trained in Canada.
I know a Canadian who went to medical school in the US and became a doctor in the US and when she wanted to return to Canada, Ontario told her she had to qualify and that would cost her $70k. In other words, Ontario said that her American credentials were not good enough when we are short of doctors. What a joke. She chose to stay in the US. Canada is a has-been country resting on its laurels.
@@George-z4dresting on laurels is very apt
@@George-z4d America takes Canadian doctors and recognizes all Canadian training as equal to American training. America makes it seamless and easy for Canadian Doctors to become American citizens and start practicing their profession almost as soon as they arrive.
Canada could learn some lessons on how to attract talent and make them feel welcome.
I hope the inflation comes right back next year so that it bites him right before election. Young people are destroyed in this country.
Why they cut rates? All prices, housing....etc are up. why?
He'll get destroyed regardless. Young people will be old people if/when things recover.
There's no future in Canada.
I’m not wishing that but good. Then I can sell my house. Just want my mortgage to go back to normal. 1000 dollars less again.
Young people will be just fine. Unless they listen to negative people like you.
@@maxpayne7419 yes, they will be fine buying crappy real estate with mortgages that their children will have to pay off while having to work 2x as much as boomers because someone has to supplement their rental income with increased CPP benefits. get lost
Their cutting rates shows you how weak the weak the economy is. Despite the inflation, they need to cut rates, and allow the dollar to decline, increasing the huge debt they created, and raising taxes. They are giving people some air to gasp, but in the long term those same people will be on life support.
People can’t pay their bills because of inflation, so that’s why they are taking these measures. But in the long term they have made things far worse because they will be forced to raise rates once inflation spikes again.
This is a minute by minute repeat of the seventies, where the exact same thing happened. They cut rates, despite inflation, saying it was temporary inflation. At the final end they had to raise rates to an unbelievable, never before imagined, 20 percent. We have the same situation happening now.
Translation of title: “don’t blame my cowardly interest cut. Blame Russia. “
I've purchased USD, and I will continue to divest from CAD after Mr. MacKlem's assertion of 'latitude' for divergence on BoC rates from US Fed Policy rates.... FREE MONEY !
And if anyone believes a .68 Loonie isn't inflationary..... Good Luck !
LOL you bought into USD? The collapsing USD is why the CAD is collapsing. If you were so intent on investing in things other than gear and food stockpiles, then you would be wise to be hedging AGAINST the USD with gold or silver.
I'm surprised that international faith hasn't been shaken by Trump yet. Al Capone only got three felonies afterall.
If Trump cooked the books in the USA, just imagine what numbers he cooked up for international trade.
Maybe that makes the USA gangster (stronger) or maybe that just makes the USA a haven for USD thug (weaker)
Is the USD gangster or thug?
@@vovin8132
Gold/Silver are always a good holding within any portfolio....including mine... 5% to an absolute Max of maybe 7-8%.... after which you better buy bullets to protect it because it's too heavy to carry around and you can't eat it now can you ?
Methinks you best Pay attention the USD/CAD over the next while.... it's a can't lose out of the CAD into USD on any subsequent divergence Mr. MacKlem feels he can enact from US Fed Policy ?
In a room full of blind people the 'one-eyed' USD man is King.... with the CAD being the worst of the worst BLIND person in the G20/G7 by FAR !
NO CHARGE !
BTW, "Gear and Food stockpiles" ????? like WTF are you on ?
May “stroke” inflation? Cmon…. That was done on purpose!
Double digit inflation and a 50 cent dollar here we come. Just when you don't think things can get any worse they will. All the retirees will retire in Mexico instead of Canada to earn 11 percent interest on their money that appreciates not depreciates against the U.S. dollar.
I don't see rents, food....etc prices down.
They will never come down. Prices won't go up as fast that's it
@@audittheauditors so why they cut rates? does not make sense.
@@desmomotodesmomoto2033 because prices aren't going up as much anymore
Go fishing! Learn to hunt!
@@argeldelacruz9545only a matter of time before that is restricted due to wildlife population.
Generally this though- Inflation hurts wage earners; they never catch up on average, helps equity ‘intrepid’ heavy Citizens. Even more so after a housing bubble removes the low rate benefits for mortgages and creates huge inter generational, equity owning class wealth transfer. Housing bubble prices destroy the leverage via low rates unless prices can “balloon” for ever; and here comes European housing/ unending mortgages. I’m Great; grand kids, nieces, nephews not so good.
Like how he snuck in 3% as the new 2% goal. Media- It’s all a grift baby.
Stoke
Sunny ways....sunny ways..... 🤣
Sunny ways my friends sunny ways
It's way too early to assert that Canada has been able to withstand 5% interest rates. It takes about 2 years for monetary policy changes to filter through the economy. BOC's rate hit 5% about a year ago. Many mortgages holders are still set to renew next year and the year after, at rates that will still be considerably higher than before the rates were increased. The pain has only just started. These panelists are either delusional, or were hand picked to promote optimistic BS.
absolutely bought and paid for. THere is no reason to be optimistic and, especially in canada, nebulous about our very real, poor, financial situation and how that causes homelessness, mental health illness, addictions, and crime. These factors WILL soon affect ALL canadians so that includes our crooked political parties (Liberal and PC are the big bads, both right wing in policy, but NDP has also been bought and is pro corporate in it's policies like every party but green, they havent' been bought because they don't need to be.)
Level of most canadians are developing high blood pressure or having strokes because u dont see the tunnel 😮😮😮
Its sad how much can u offered. The moment of people asking for money in the streets ...food bank shortage.....amount of homeless but yet new people are getting money for rent.😮😮😮
Now 40 year old people r being layoff not being hire instead now they got to get their saving out or be debt n go back to school. Its disappointing how canadian are now being affected n it was nothing like this in before covid. Investors money u bearly see any growth. The economy has been hard. Young canadians are finding it hard to find Walmart or groceries store to work cause adults have taken over.....its hard definitely on everyone 😮
The amount of people living in patks or in the middle of streets. The amount of crime n thefts n who is really solving any of these issues. The landlord n tenants need hire more people 2 years waiting is unacceptable. CRA call centers need hire more u got to in 4 hoyr call just to ask a quwsrion n they not even polite really nothing like this where are the good organized leaders of this country😮
We are in a recession. Job loss coming. Real estate crash confirmed. .25% does nothing
we lost our economy when trudeau took office. Business are leaving canada like an exodus now, spending only comes from new migrants who has to buy a car, supplies for living etc.
All good I have 2 jobs now. So does everyone else with a mortgage prolly.
What do you want make it 0 % so that everyone is priced out
this guy is deflecting attention
from his own bad decision making
with caused massive inflation.
also inflation is 10%, not 2%.
Inflation, welcome back to Canada! Good job BOC!
good blame it on global inflation, then y people able to afford housing in lot of places in neighbouring cntries 😮😮😮
Why people buy house my question have you ever ask yourself this question. While children don't stay with their parents property tax mantinance heating bills cutting grass snow removal even if you paid of morgage still houses are so expensive to afford and end of the Day if you wana live Alone Then Rent a Bachelor Apartment why you take that much Headache . You don't even need car . take uber or Rent a car once a while .nobody will call you a poor because nobody know you or care about you any more
you must not need to commute to work.
Dude has stoked the flames before the embers appeared. LOL. Good luck.
so, we don't care about inflation is finally true. first we did immigration more than before in inflationary environment and we are lowering rates in inflationary environment
Stroke inflation? At least someone is getting stroked.
What a bunch of BS. Vietnam, Iraq 1&2, Afghanistan… none of these affected inflation.. all of a sudden conflict causes inflation.
They want the economy to crash to scare people into believing that it is Russia's fault in order to drum up war support, and every single day more news comes out that this war is happening sooner than later.
the guy is looking to divert attention
from his own bad policy
which caused massive inflation.
money printing is the real cause of inflation.
i.e. bailing out bankers gambling in all kinds of markets with leverage with that money.
also inflation is 10% at least, not 2%.
Printing money creates inflation. Buy bitcoin.
Toronto real estate prices won't change much until the end of 2024. Though I expect through 2025 there will be a gradual increase however it is not going to see its March 2022 peak. Toronto inventory on House Sigma is all-time high and 0.25% decrease and a total 0.75% until the end of 2024 won't have too much impact on affordability. The agents will try to promote this rate decrease to you as a golden opportunity and they will tell you to buy before it's too late. Yes, it's an opportunity but don't buy the FOMO they try to sell. Until December 2024, I expect prices to stay flat with a lot of inventory to choose from which then translates to good quality property. Good luck everyone!
>Please, let's stop all the illusions about inflation. We have been suffering not from inflation but from the devaluation of our currency. Since 1971 our governments have been spending in deficits and pushing these into debt. This has devalued our currency. So, it takes more of these devalued dollars to buy something, anything. That is why we see prices where they are.
>A dollar today is worth about three cents compared to 1971, and with no end in sight. Worse, salaries since then have not kept pace with all this devaluation. Whereas a little bungalow in 1971 could be bought for $10,000 that same house today would cost $300,000.
And there is no plan on the horizon to correct this except more debt and, with that, more devaluation.
We are one of the richest countries in history and we have people living in tents in our streets!!!
Terrible.
Comments welcome.
long live the Gold standard.
criminal central bankers and their fiat currency scams need to go.
they are cheating the working class out of the fruits of their labor and turning it into the working poor.
Resiliency? Really? Wait until mortgage renewals come up this year and next year and then ask if Canadians can cope. I think BoC realized this and that is perhaps why they cut rates.
More free money! Record profits 📈 always. It's like the stupid leading the blind.
What do you think is going to happen to housing prices. As rates go down housing prices will go up The young person who wants to buy a home and thinks lower interest rates are going to help them it's just fooling themselves. Lower interest rates are only going to help the people on the top.
When housing prices go up even people will own homes are going to have to pay more in taxes.
The answer to housing prices is keep interest rates high and build more homes. Once you have it oversupply of homes you can lower interest rates but not until then
Everyone in this video is full of bullshit. Please take time to understand this is almost propaganda.
Now let’s see from September 40 years mortgages again 😮
Dalary need to be increase n mote hiring need to be done. This is low n its nothing. Banks are profitting big time n so car insurance n big corporate store. More people r being kick out their apartments because u got greedy landlord. If u rent for 20 years they want u out but they dontbrealize that people salaries r not going up. Its so shocking how many canadians are in debt n their mental stability is differently in crisis n children r now feeling. Its sad how things have changed after covid.😮
make usury illegal again!
I hope my properties go up a lot in value so I can sell and leave communist Canada.
900K studio as now the reality lol use condollo to dodge it
Crooks will say anything it's enough with Taxs and rate hikes
Give your house to bank simple solution
Nonsense inflation will come back 😂😂
This will only put inflation up again imo
lol bunch of cowards
Real estate is set to go past the moon.
Don't cherry-pick data, and inflation would still be high.
This is another political Stunt to save Drowning Trude putting Canadians the last as always
uninformed talking heads -- vacuous commentary.
Thank you to these eloquent guests for coming on the show. Very informative.
It did well while banks allowed people to pay interest only on their marriages and extend amortization.
May . Tiff is truly a muppet. Hiw does this goof get appointed
we need longer terms than 5 years. Why Canada is so backwards.
who would buy such money losing bonds.
inflation is at least 10%, not 2%.
the bond would have to pay 12% minimum for people to buy a 10 year version of it.
Lower interest yet, we dont have money to buy house still. Lower rents!!
We haven't seen anything yet. This is the calm in the eye of the storm.
It's the 70s all over gold dump the dollar
Canada cannot stand a real state crash!
Canada needs a real estate crash. Unless we get one our country is done for. We have spent years pouring our entire economy into real estate, it isn't healthy. We should have allowed to crash in 08 or even earlier. The longer we go, the worse crash is going to be, better to get it over with then to keep putting it off and making it worse
@@Green__one totally agree , my point is government does its best to postpone the crash because RE has become the only Canadian industry and its crash would bring down the whole house of cards !
never hold your wealth in cad
Thanks for the continuous update! Bitcoin is on its way to breaking records, getting closer to hitting new high prices, showing that it's gaining more value and could go even higher than we've seen before. I am super excited about how my crypto investment is going so far, making over $35,700k weekly is an amazing gain..☺
How do you all make that much monthly?
I'm 37 and have been looking for ways to be successful, please how??
Yeah, since meeting expert Charlotte, I now agree that with an expert managing your portfolio, the rate of profit high, with less risk.
I'm surprised that this name is being mentioned here, I stumbled upon one of her clients testimony on CNBC news last week.
Please do you mind sharing any means of reaching out to her easily?
Sure! She interacts on what's Apk using the digit below👇
Canada has to cut interest rates because Canadian private debt stands at 270% of GDP.
For reference, American private debt is 150% of GDP.
A lot of that has to do with the size of the average Canadian's mortgage relative to their income, vs their American counter parts.
Macklem's decisions make no sense whatsoever.
Growth 👏 is 👏 back 👏 on 👏 the 👏 menu
God bless these nations of North America 🇨🇦 🇺🇸 🇲🇽
RUclips economists are out in full force today. 😂
This is good news for Canada.