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Canada’s Housing Bubble Could Spell Disaster for Trudeau

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According to experienced strategists, Canada’s housing market is in danger of collapsing since it has one of the greatest housing bubbles in history. The degree of debt that Canadians have taken on in contrast to their earnings has left many in a perilous situation if mortgage rates continue to climb, which is likely, according to Phillip Colmar, partner at MRB Partners, in an interview on Tuesday.

“Canada is probably sitting on the largest housing bubble of all time,” he said.

Colmar suggested that inflated housing prices in Canada are a result of the Bank of Canada’s monetary policy providing easy money for two decades for a variety of reasons. Currently, he sees risk in mortgage rates rising as Canadian bond yields rise, especially at a time when debt-to-income ratios are sky high.

“The worst part for a housing bubble is when you have [a] credit bubble underneath it,” Colmar cautioned. The amount of Canadian indebtedness in the system against income is tremendous — and debt servicing has increased dramatically.”

While Canadian banks are doing their lot to keep the property market from collapsing, Colmar predicts it will.

There is clearly a risk that if mortgage rates rise, unemployment rises, or we enter the next recession, this thing will wind up in a deleveraging cycle, he added.

Canada housing

Trudeau Hasn’t Helped in Canada’s Soaring Housing Cost

The rising cost of housing in Canada has become a key electoral issue for Prime Minister Justin Trudeau, as his main opponent focuses on generational frustrations over affordability.

This summer, Trudeau has played defence on the problem, naming a new housing minister and diverting some of the burden to other levels of government. However, with Trudeau’s party already slipping in recent surveys, housing has become a serious vulnerability for him.

“Failure to appear to be doing enough on housing could be politically disastrous for the Liberals,” David Coletto, CEO of polling firm Abacus Data told Bloomberg.

The issue is especially crucial for Canadians under 40, a critical group that Trudeau’s party could not have won the last two elections without, according to Coletto. His firm’s most recent survey showed Pierre Poilievre’s Conservatives leading the Liberals by ten points.

The average price of a home in Canada has more than quadrupled in the last decade, reaching $760,600 (US$572,470) in June. Trudeau’s government, which took office in 2015, has also steadily increased yearly immigration targets, with more than one million people coming last year, putting a strain on an already scarce housing supply.

Poilievre has pounded Trudeau on the issue, concentrating on young people’s rage. He told reporters outside the Parliament building in Ottawa on Tuesday that Canada’s home affordability is among the worst in the world.

“Rent has more than doubled,” he remarked. “Mortgage payments have doubled.” Down payments were required and doubled. All of this comes after eight years of Justin Trudeau.”

To be fair, rising housing costs have many causes outside of Trudeau’s control. Provinces and cities, which are in charge of land-use planning, zoning, and permitting, are to fault, as are real estate investors, overseas buyers, years of low loan rates, and other issues.

 

canada housing trudeau

Nonetheless, Canada’s aggressive immigration ambitions have outpaced housing construction, exacerbating the demand-supply imbalance. In the year to March, 4 to 5 international migrants landed in Canada for every new unit of housing construction that began. That is the highest ratio of new Canadians to new residences in statistics dating back to 1977.

Poilievre, on the other hand, dodged reporters’ inquiries on whether he will lower immigration targets on Tuesday.

Former Liberal member Adam Vaughan, who assisted in the development of Trudeau’s $82 billion national housing policy, said that the country is better off now than it would have been without his party’s policies. He claims that if the government had done nothing, federal spending on social housing would have been merely $1 billion this year.

More needs to be done, he says, and time would be better spent concentrating on solutions across levels of government rather than laying blame. Trudeau’s remark on Monday that housing is not a fundamental federal priority was “problematic,” according to Vaughan.

“It is a responsibility of the federal government, if not literally, then politically, and I would argue that it is morally,” said Vaughan, who now works at public relations firm Navigator.

Debt canada

According to Mike Moffatt, senior policy and innovation director at the Smart Prosperity Institute, the federal government has a number of instruments at its disposal to address the housing shortfall without increasing its debt.

These approaches include focusing immigration policy on construction workers, electricians, and others who could help increase housing supply, as well as postponing international student visa approvals until provinces order universities to provide additional accommodation for them.

If the government does act, “they had better act quickly because time isn’t on their side, and there’s a chance that one of the opposition parties could really start to own this issue,” Moffatt said.

Former Trudeau policy director Marci Surkes believes the government is working on a housing strategy as a core component of its fall budget update.

“This is ground that the Liberal Party should be occupying and owning,” said Surkes, who currently works as an adviser for the Compass Rose Group. “At this point, they should have been making more tangible progress.” And yet, given the economic circumstances, whatever progress has been made to date does not feel sufficient.”

The New Democratic Party’s Jagmeet Singh, whose party has agreed to support the Liberal minority government in Parliament, said on Tuesday that Trudeau’s “finger-pointing” will not fix the housing crisis, despite the fact that all levels of government bear some responsibility.

“We can’t ignore the significant levers that the federal government has,” he remarked. “The levers are so significant that I would say the federal government has incredible powers to actually solve this problem if they choose to do so.”

 

 

Geoff Thomas is a seasoned staff writer at VORNews, a reputable online publication. With his sharp writing skills and deep understanding of SEO, he consistently delivers high-quality, engaging content that resonates with readers. Thomas' articles are well-researched, informative, and written in a clear, concise style that keeps audiences hooked. His ability to craft compelling narratives while seamlessly incorporating relevant keywords has made him a valuable asset to the VORNews team.

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Israel Finds The Body Of A Teen Whose Disappearance Sparked A Deadly Settler Attack In The West Bank

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Al-Muhayyir, West Bank – Israel’s army announced Saturday that the body of a missing Israeli adolescent was discovered in the West Bank after he was slain in a “terrorist attack,” as violence erupted across the Israeli-occupied area, where tensions have been building for months.

israel

Israel Finds The Body Of A Teen Whose Disappearance Sparked A Deadly Settler Attack In The West Bank

The disappearance of 14-year-old Binyamin Achimair prompted Israeli settlers to launch raids on Palestinian towns on Friday and Saturday. The attack on al-Mughayyir hamlet on Friday killed one Palestinian and injured 25 others, according to Palestinian health officials. According to witnesses, Israeli troops held up the ambulance transporting the 26-year-old man’s body for burial for several hours on Saturday.

On Saturday, dozens of Israeli settlers returned to the village’s outskirts, burning down 12 homes and many cars. The Palestinian Health Ministry reported that three persons from the community were hurt, one gravely. Border police sprayed tear gas at the gathered locals, attempting to disperse them.

Israeli settlers set fire to many homes in the nearby village of Douma, according to the official Palestinian news agency Wafa. The Palestinian Red Crescent reported six persons hurt by gunshots but did not specify who fired.

Since the Israel-Hamas conflict in nearby Gaza broke out on October 7 as a result of a Hamas assault on southern Israel that claimed the lives of about 1,200 people and kidnapped 250 more, tensions in the West Bank have been particularly high. According to Gaza health officials, the Israeli offensive has killed more than 33,000 Palestinians.

Since then, Hamas has attempted to spark new fronts, especially in the West Bank, to increase pressure on Israel. Even though Israeli fire has killed more than 460 Palestinians in the West Bank since October 7, the majority of them in clashes sparked by army operations, but some by vigilante settlers, such efforts have largely failed.

There was no immediate claim of blame for the death of the Israeli teenager.

israel

Israel Finds The Body Of A Teen Whose Disappearance Sparked A Deadly Settler Attack In The West Bank

According to Israeli media, the teenager was last seen leaving Malachi Shalom, a settlement outpost, early Friday to care for cattle nearby. According to reports, the sheep returned to the outpost many hours later without him.

According to Israel’s Channel 13 TV, a drone spotted Achimair’s body. The broadcaster stated that he was not shot but did not clarify.

Israeli Prime Minister Benjamin Netanyahu has denounced the incident. “We will get to the murderers and their accomplices as we do to anyone who harms the citizens of Israel,” he said in a statement released by his office.

The kidnapping and execution of three Israeli teenagers in the West Bank in 2014 fueled tensions, resulting in a 50-day Israel-Hamas war in Gaza, the deadliest phase of conflict between the two sides to date.

Consecutive Israeli governments have increased settlement construction in east Jerusalem and the West Bank, places where Palestinians hope for a future state alongside Gaza. Some are well-developed and resemble Israeli city suburbs, but other outposts may have a few caravans.

isarel

Israel Finds The Body Of A Teen Whose Disappearance Sparked A Deadly Settler Attack In The West Bank

While Israel has constructed numerous settlements throughout the occupied West Bank, the outposts are not allowed, despite the government’s tacit support. The international world regards all West Bank settlements as unlawful and impediments to peace.

Over 700,000 Israelis now live in the occupied West Bank and East Jerusalem, regions acquired by Israel in 1967.

SOURCE – (AP)

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Posthumous Memoir By Russian Opposition Leader Alexei Navalny To Be Published Oct. 22

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NEW YORK — Alexei Navalny’s memoir, which he began working on in 2020, will be released this fall. “Patriot,” which publisher Alfred A. Knopf describes as the late Russian opposition leader’s “final letter to the world,” will be released on October 22.

Navalny’s widow, Yulia Navalnaya, said in a statement released Thursday by the publisher, “This book is a tribute not just to Alexei’s life, but to his unshakeable devotion to the battle against dictatorship—a war for which he devoted everything, even his life. Through its pages, readers will learn about the guy I adored—a man of tremendous integrity and unwavering courage. Sharing his tale will not only respect his legacy, but will also motivate others to fight for what is right and never lose sight of the most important ideals.”

navalny

Posthumous Memoir By Russian Opposition Leader Alexei Navalny To Be Published Oct. 22

Navalny, 47, died in February while serving a 19-year prison sentence on extremism charges, which he saw as politically motivated. He was imprisoned after returning from Germany in January 2021, where he was recovering from the 2020 nerve agent attack, which he blamed on the Kremlin, and has since received three prison sentences.

He perished in a distant correctional colony located above the Arctic Circle. Russian officials have categorically denied participation in both the poisoning and his death.

According to Knopf, Navalny began working on the book in Germany and continued to write it in Russia, both inside and outside the prison.

navalny

Posthumous Memoir By Russian Opposition Leader Alexei Navalny To Be Published Oct. 22

“In vivid, page-turning detail, including never-before-seen correspondence from prison, Navalny recounts, among other things, his political career, the many attempts on his life, and the lives of the people closest to him, and the relentless campaign he and his team waged against an increasingly dictatorial regime,” according to Knopf’s press release.

“Written with the passion, wit, candor, and bravery for which he was justly acclaimed, ‘Patriot’ is Navalny’s final letter to the world: a moving account of his last years spent in the most brutal prison on earth; a reminder of why the principles of individual freedom matter so deeply; and a rousing call to continue the work for which he sacrificed his life.”

In a post on X, formerly Twitter, Navalnaya claimed Thursday that she had hoped her husband would write a memoir much later in life when they were both “around 80” and had grandchildren.

navalny

Posthumous Memoir By Russian Opposition Leader Alexei Navalny To Be Published Oct. 22

She recalled that many people encouraged Navalny to begin writing after the poisoning, but he initially dismissed these suggestions: “What kind of memoir is it when you’re 44?” It’s just been slightly more than half (his) life. He wasn’t rushing because there was so much more to come. But things came out as they did. Horrible and extremely unjust. “It turned out there was no other half ahead.”

She stated that the memoir was translated into 11 languages and would “definitely” be released in Russian. It is unclear from her words whether the book will be published in Russia, where Navalny was convicted as a leader of an extremist group and his foundation and offices were prohibited.

SOURCE – (AP)

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The Masters Gets Underway With Nicklaus, Player And Watson Hitting Ceremonial First Shots

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AUGUSTA, Georgia—The Masters began Thursday after a 2 1/2-hour weather delay, with wind still whipping beneath an overcast sky. It marks the first time golf’s top players have competed on the same course since the British Open in July.

With his wife Barbara on the bag, six-time champion Jack Nicklaus joined three-time winner Gary Player and two-time champion Tom Watson as hundreds of spectators gathered around the first tee to witness them take the ceremonial first shots.

masters

The Masters Gets Underway With Nicklaus, Player And Watson Hitting Ceremonial First Shots

“It’s not so easy to put the ball on the tee now, is it?” The player inquired of the others before stripping one down the fairway.

“Watch out on the left and right,” Nicklaus said before driving it straight down the middle.

Erik van Rooyen and Jake Knapp were the first participants to tee off, with the PGA Tour and LIV Golf strong hitters spread out in highlighted groups throughout the day. Those with later tee dates, such as Tiger Woods, Jordan Spieth, and Dustin Johnson, would likely finish after dusk, forcing them to return on Friday to complete their first rounds.

This year’s tournament features 13 players from Saudi-funded LIV Golf, including defending Masters champion Jon Rahm, who quit the PGA Tour late last year for millions in guaranteed money. That’s down from 18 a year ago when people were still determining how the split between the breakaway league and the long-established PGA Tour would play out at Augusta National.

However, the ongoing schism is just one of many topics this year.

masters

The Masters Gets Underway With Nicklaus, Player And Watson Hitting Ceremonial First Shots

Scottie Scheffler, the 2022 champion and world’s number one player, has been the 4-1 betting favorite since Woods ruled nearly two decades ago, according to FanDuel Sportsbook. Rory McIlroy, who missed the cut last year, is attempting to complete the career grand slam for the tenth time. Woods is only playing for the second time this season due to illness and injury.

Scheffler and Sam Burns both have wives who are expecting their first children. Both players have stated that they would retire if they heard their wives were in labor, which is difficult to believe given their advantage on Sunday’s back nine.

masters

The Masters Gets Underway With Nicklaus, Player And Watson Hitting Ceremonial First Shots

Last year, the rain stretched the third round to Sunday, and Rahm entered the long day four shots behind Brooks Koepka. He had halved it at the start of the final round, and Rahm became the fourth Spaniard to win a green jacket with a four-shot triumph against Koepka and Phil Mickelson, who finished with a 65 at the age of 52.

SOURCE – (AP)

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