Bubble

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Canada’s AAA Rating Is on Thin Ice

But Fitch Ratings is warning that the country’s prized standing in the eyes of creditors may suffer because of protectionist measures proposed by U.S. President Donald Trump. In a report Friday, a Fitch research team led by James McCormack wrote that nations with close ties to the world’s largest economy, such as Canada, are “most at risk” of damage to their credit fundamentals.

DYI:  Bloomberg what total bull crap!  The real reason for the possible loss of Canada’s AAA rating – as DYI has reported – our northern neighbor’s debt bubble is in the process of bursting.

Residential single family real estate in their principal cities will have prices – on an inflationary adjusted basis – CUT IN HALF!  Condos could very easily drop as much as 70% - again principal cities after inflation.  Why???  The natural resource boom has now gone bust.  When the world economy goes into a recession this will end Canada’s high flying real estate markets for one or two generation.  Without a world economy going bust Canada’s high flying real estate debt bubble will go bust just the same - only slower.

Markets of all types regress either up or down gravitating around their mean and Canadian's are realizing they are NOT the exception.  Of course markets can and do overshoot in either direction bringing on great bargains for purchase or sale for the historical value based investor.  Keep this in mind - and so will DYI - when Canadian real estate begins its bottoming process REIT (Canadian) shares will have very competitive yields along with safety as the worst will be over.   

Bloomberg this is nothing more than a cheap shot at Trump.  The article states nothing about Canada’s debt and real estate bubble.  More fake news from the main stream press.

 DYI