And this distortion of the bond market also feeds into this whole CMHC thing. Keeping rates at artificially low levels and backstopping lenders has increased the hazard of people taking on more debt than they can handle, especially if the bond market finally forces up interest rates on the long end of the curve. Many people stretched to handle the debt they have now, will be screwed if rates rise anywhere close to what they should be with the level of inflation. That also goes for governments and corporations. We are in a debt trap and who knows where it ends. On the housing front we could end up in the same place as the States did in 2008.
__________________
There are some who can live without wild things, and some who cannot. Aldo Leopold
|