Our Future Debt Problems.

[werner.reiche]

Could not afford the truck, to tow his boat or ATV? Sounds like he prefers his toys, to transportation. I have been looking at getting a new truck. Lots of new truck deals out there , that are better than last year, when I first showed interest, to be had.

I don't think so. I can sell my 2018 silverado 4x4 dbl cab for more today (with 72k on it) than I paid for it brand new. Paid 34,500 + tax. Same truck in a 2021 you can't touch for under 44,500 + tax. These aren't MSRPs - these are the best price a dealer will give you.

[MarkB]

Mark the stock market is like playing at a casino unless your one of the big boys. Real estate has been a no brainer and I think with 1.4 million immigrants coming over and no place to live, it will be for some time.

OK but what about affordability in the property market ... what happens when the interest rate is 6% or 7%?

[Gilroy]

OK but what about affordability in the property market ... what happens when the interest rate is 6% or 7%?

The Bank of Canada is not going to raise rates till at least late 2022. The stress test right now is already at 4.89%, I am not a big financial guy and I am sure JBEN will keep me on track in what I say.

[JBen]

Werner
“Yep”

We have trucks on our lot. What we are paying...........so guess what consumers are paying. And given the “times”...think margins are widening or tightening...
Just nuts.

Wranglers?
Crazy stupid. And American buyers are happy to pay CDN prices, in USD. Making a bad situation worse...

Even wholesale. Why would dealer A, sell to dealer B at cost plus a wee bit when demand>>>>>>>>>>supply. I’m nope, we like you but why would I make a few hundred when I can gross 10k. I have bills and people to pay too...

Anywho that’s just my world. And everything needs parts...be it vehicles or lumber, or hvac or A to Z
And no only did we stick our heads in the sand around 2008. Help MF down the toilet...

We’re doing it again, when we’re going to need it the most. And just cant tie his own shoe laces is going to hammer industry and consumers with Carbon Taxes, no plan, nada, but more and more debt....

[Gilroy]

Yeh there are a few parts being held up in the Suez Canal right now.

[MarkB]

The Bank of Canada is not going to raise rates till at least late 2022. The stress test right now is already at 4.89%, I am not a big financial guy and I am sure JBEN will keep me on track in what I say.

I think, despite the current stress test, if the mortgage rate did go to 4.89%, lots of people would be in big, big trouble.

[JBen]

The Bank of Canada is not going to raise rates till at least late 2022. The stress test right now is already at 4.89%, I am not a big financial guy and I am sure JBEN will keep me on track in what I say.

Lol, I don't much care what others think, say etc Terry. Do "care" when being chirped at and or something is plain redicluous

No real clue here what the BoC might do. If I was right 70% of the time I'd own my own Island or be helping helping with policy there. That said, the stress test aren't (imo) what we should focus on. The banks responses for prime rate, will almost certainly be based on inflation. More on this is a sec..

However, they like everyone else know if they push people and companies ( I'm sure there are companies out there now too, that are stretched thin) to far, it could touch off a snowball racing downhill no-one is safe from and all bets would be off on the outcome and where/how/when the dust might settle.

But basically, inflation won't happen (though were seeing some now) until the economy is in full swing or near capacity. Generally speaking there are 3 main causes of inflation.

Go back to 2008 and all the arguments about McGuinty spending his wad. Same discussions/fears...Just wait, rates will go up. I distinctly remember saying....Careful what you wish for....With growth in the economy and jobs, comes inflationary pressures.
Still waiting for both solid growth in the economy, and or hikes in rates.
/looks at "stuff"...Im thinking its going to be one heck of a long time before the economy is robust.

Regarding the vid and its not worth getting too in depth over. But he was talking about long terms bonds and what happens when the maturiting bond gets rolled . Well thats where yield curves come in ad potentially derivatives though to be honest I'm not sure how many/much the gov't utilizes structured products to mitigate interest rate risk. I'm thinking.....they do

[fishfood]

Just the middle class will get screwed lol. Keep raising them taxes keep making more taxes and see what happens . Keep paying for nothing?
A little song about the the middle class
https://youtu.be/Xo0MSJjUf2Y

Sent from my CLT-L04 using Tapatalk

[MikePal]

Good Visual of our future economy when we can no longer service our debt :


This image collage that visualizes Venezuelan Hyperinflation.
Those are the amounts of money needed to buy this pastry, from March 2019 (Top left) to April 2020 (Bottom right)

[JoePa]

There is no question that hyperinflation will appear at some time - the only question is when - when the government keeps printing money like it is doing it is just kicking the can down the road until the road ends - when that happens your money will be near worthless and it will be better to own things that are of value - I think one of the most stable and best things to have when that happens is having land