Friday, November 21, 2008

Why so glum?

I read an article the other day that Albertans are gloomier than most Canadians about the home prices. My question is why? The market is stable and compared to what is going on in the rest of the world very healthy.

It seems to be a case of think it and it will be real. According to economist Canada is actually in pretty good shape. I think as Canadians we have been financially tied to the U.S for so long that we automatically assume that their financial crisis is ours.

However in world terms Canada is doing very very well.

"Canada is a financially conservative country where consumers are able to meet the terms of their mortgages, and buying decisions are based on affordability,"

"This contributes to a solid real estate market that will not experience the same drop-off we see south of the border." Will Dunning, Canadian Association of Accredited Mortgage Professionals' chief economist

If you think Alberta is in a bad way listen to this BBC special on Iceland. Iceland went from the fifth richest country in the world to a devastated economy where national debt is 12 times the national GDP.

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