RE:RE:RE:RE:RE:RE:RE:The value of a financial entity without liquidity is $0.00Say what? That the price of homes are jumping in toronto and vancouver because of how many people are moving there? TRUE
That this is completely different than USA 2008? TRUE!
Whether some of the money is dirty coming from china doesnt really matter.... the truth is vancouver and toronto are still UNDERPRICED compared to like cities around the world.
The ONLY leg you have to stand on is Cost of Living to Wages.... And if you look back through history wages lagging behind growth is normal.... it takes a while for everything to equalize.
This is not a country that can build down payments into the purchase price of the house..... or set a 2-3 forward looking houose price when getting a mortgage.
Secondary lenders cant basket mortgages and sell them on the open market to expand the amount of capital they can use.... in fact their INABILITY to do this is WHY THEY ARE IN TROUBLE.
If the market crashes its because of fear and sentiment.... not fundimentals