Monday, June 20, 2011

Talk Not Action for Carney in Canada

He claims he can not control one or two markets with national policy, ignoring that the bubble is nationwide and that 4% financing is ridiculously cheap anywhere, anytime.

Canada Household Debt Rises to New High
In a speech last week, Bank of Canada Governor Mark Carney said the housing market was set to cool, warning that certain pockets were exhibiting signs of "excess." He reiterated concerns Canadians were taking out too much debt, adding the level of personal savings provided "limited comfort."

1 comment:

jesse said...

Carney can practically do but one thing: adjust rates. But I highly doubt he's quiet when advising the government on policy and legislation. To that end, Bill C-3 in front of parliament is designed to give the government much more direct involvement in the mortgage insurance business.

I do not think his overview of the unsustainable position of house prices and debt was done because he was bored. There are material actions that are being taken, though I expect they will be out of the limelight through increased oversight behind the scenes.

I would not expect much resistance from Canada's Conservative base if highly-cosmopolitan (and left-leaning) enclaves are smashed to smithereens. It's for the greater good, they will say.