Instead of an educational system which seeks to elevate our status as human beings, and to maximize our potential, we have a system where the highest priority is to condition the “little people” to accept their “place” in society: gratefully thanking the elites for the crumbs of wealth which “trickle down” to them – and never seeking to challenge the status quo.
Some people think the experience of the Weimar Republic in Germany in the interwar years, when paper money was made so worthless by the central bank that the bills were literally used as fuel to heat homes, is entirely impossible in the United States.
We think we are immune from such a calamity, but we are not.
-Ron Paul (End the Fed)
In an effort to prop up the real estate market in 2008 (when affordability nosedived), the Harper government directed the CMHC to approve as many high-risk borrowers as possible and to keep credit flowing. The approval rate for these risky loans went from 33% in 2007 to 42% in 2008. By mid-2007, average equity as a share of home value was down to 6% — from 48% in 2003. At the peak of the U.S. housing bubble, just before it burst, house prices were five times the average American income; in Canada today that ratio is 7.4:1, almost 50% higher.
This is fairly interesting to me, and I wonder how accurate it is. I’ve had a couple of decent looking opportunities drop on my plate recently to purchase a couple of condos, but my gut keeps telling me to be patient, that I need to wait for a substantial and not-yet-here correction in real estate prices.