YOu have it backwards. A large government has plenty to distribute, which modifies people's incentives and want to make them get some of that pot.
Take the crisis of 2008: if was created through government regulation to MAKE banks give loans without thorough checks on "minorities", otherwise they were fined or blackmailed. Canada didn't have these incentives, and the housing bubble was much less inflated
Let's agree to disagree....and remain friends.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Not anymore though. BoCanada's slashed interest rates and the dollar is very low. Chinese investors who want to hide their money in assets are influencing the bubble. Then the government says "look at us, we're making it illegal for them to invest too much. Thank us". My house, bought in 2007 for $500k is now worth $1.2million. Chinese investment is a part of it (more recently than before, due to the low dollar), but interest rates have also gone down by 4%+ since then
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I take it you are from Vancouver? Then please tell me about the extend of land restriction I hear so much about. I hear THAT has a much larger influence than the Chinese speculation
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I live in Ontario in the suburbs of greater Toronto (not Toronto itself). In downtown urban Toronto specifically, housing prices are roaring because Vancouver put laws against Chinese investors
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
According to an economics class I had, the "green belt" policy is also pushing prices in the GTA upwards. And with you present Premier, it shouldn't be long before SHE puts the same restrictions
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit