@@titledprince almost as if they lowered rates to ridiculous levels in the first place, without regulating how excessive borrowing could be used, expecting the current outcomes.
The economy is doing terrible because interest rates have been too low since 1990 or 1981. Japan destroyed their entire country with 30 years of zero interest rates policy and now they finally figured it out and are raising interest rates as the Yen implodes.
I almost forgot how 0% inflation (originally defined as excess money supply but then redefined as the current/downstream symptomatic “prices”) is “bad” for the consumer until I remembered that we exist in a fractional reserve lending paradigm where the house of cards collapses unless new debt is issued to extinguish older debt
That's nonsense. Inflation will never drop to zero in Canada, and 4.5% is already considered low. Borrowing comes with costs! This person clearly doesn't do grocery shopping or car repairs to understand how expensive things are right now.
I prefer inflation rates of 3-4% over 0-1%. Higher inflation encourages new business development and economic growth, which are essential for a healthy economy.
One lesson I've learnt from billionaires is to always put your money to work, and diversifying your investments. I'm planning to invest about $200k of my savings in stocks this year, and I hope I make profits.
You are right. The best approach I feel is to diversify investments- by spreading investments across different asset classes like bonds, real estate, and international stocks, they can reduce the impact of a market meltdown.
@@Victoria-io7qb I really want to get in with a financial advisor this year, especially as all markets are hitting highs. I don't want to be too optimistic and end up losing everything.
We're still waiting on the flood of mortgage renewals from the people who took out 5 year fixed terms during 2020-2021 housing boom. I don't think the interest rate effects will be fully realized until that occurs.
That’s is BS inflation will never go Zero in Canada LOL and 4.5% is already low…borrowing has cost! this guy never do grocery shop and fix his car how expensive it is right now!
Governmental calculation “inflation” is different from the reality we everyday people experience. This was laid out in the books they the government is allowed to manipulate variables in the equation in order to produce a more “accurate” number for the narratives. If you ask me, my overall household expensive have more than tripled in the past 5 years. That’s 300% overall, and I laugh every time I hear 2.7%-2.9% 🤣
Also my friend who was born and raised in Burlington Ontario made the decision of moving to the UAE 5 years ago, he came back for a short visit just this past 2 weeks. When he saw the prices of everything, it was safe to say his jaw not only fell to the floor but also dug itself a few feet deeper in denial.
@@APICSKH It's common knowledge the U.S. stock market is the most overvalued ever on record and when it finally implodes it will affect most of the worldwide stock markets like the TSX.
@@parkerbohnn I don’t consider it over valued. I would love to invest in TSX but not in monopolies of banks, telecommunications, government funded airlines. You exactly know what I mean with one exception of shopify. Got burnt with Nortel, BB, and now afraid to loose my shirt in TD and all other banks. Least I say the best.
Your guest saying Canada is going back to the low rates is simply wrong. Unless the BoC is designing this economic crisis, that would be the worst decision ever. Free money is a terrible idea.
I agree. With the enormity of the inflation that has happened over the last 5 years, it will be impossible for the average joe to just absorb it going forward. A certain amount of deflation is required at this point. Or big raises for everyone, but we know that's not going to happen because it would mean a 50c loonie.
@@Michael-pg7rv Jumping the gun on rate cuts (currently), is just putting us back into high inflation and causing reactionary adjustments. These cuts are the BOC last ditch effort to try and recover some revenue before the floor falls and we are in full-fledged recession.
@@nicholasbaker8158 at this time, I don't see the bond market co-operating to the point where lower BOC rate would translate to equal lower fixed rate mortgages anyway. One thing that is proactive are the markets that support the CAD. It's going down, and will continue to do so in anticipation of 2 more cuts that seem to be a certainty. By Christmas when the local Canadian harvest has come and gone, food inflation will come back in full force. People don't see it right now so they sweep it under the rug until it happens.
Why is it that the BoC and other central banks for that matter always stick to 0.25% intervals. Why not 3 rate cuts 0.35% + 0.35% +0.3% to get a total of 1% in cuts over 3 meetings.
Annual wage gains are coming in at 5.1 percent. The Bank of Canada rate must be higher than that 5.1 percent or this will lead to a wage price spiral and double digit inflation.
After watching ur vdos here I couldn't sleep whole night... You're so generous with sharing your knowledge in trading. I firmly believe I can be financially free by learning from you. Looking forward to trade with you. Unlimited love and respect from my side..️️️
Negative interest rates destroyed all of Europe and destroyed the entire banking system there. It also made everyone there poor or poorer as they couldn't earn any rate of interest on their money.
Yes, and you will lose your job too. Wake up and smell the coffee, you won't see prices of eggs, bread, milk going back to the prices in the last century. Assets are not inflated, it's inflated because the money printing machine was on and the price just readjusted itself.
@@larchdental although I agree with your comment but when the average person can not make those payments with the increased interest rates. Assets will have no where to go but down.
John is my celebrity free pass just putting it out there. I could have picked Chris Hemsworth or Hugh Jackson but no it's John for me. Also please not another financial crisis :O
The govt is NOT hostile to homeownership. It is precisely because they encourage investors/ speculators to enter the market that people are priced out. You could I stead say they are hostile to homebuilding, which is the only true long term solution
@@obesia1873 except for the financially responsible people. It's insane that people have made their wealth off of holding assets and over leveraging themselves.
Under free market capitalism goods and services should decline in price not increase. The 2% inflation target you people are all brainwashed with was put in place to facilitate a fake fiat currency and to inflate away endless government deficits.
@@shaneatkinsonsa It's not over leveraging if a bank believe it's worth lending you the money ... It means the investment project is deemed safe enough from a bank's perspective. You just sound jealous.
The BoC unprofessionalism and dependence on Communist regime in this country has already ruined Canadian economy. I guess that was Justin's plan, the one he gets paid to implement by WEF.
The reason to drop interest rates (at any time) means the economy is doing terrible... otherwise you wouldn't need to!
almost as if they raised interest rates to achieve that outcome
@@titledprince almost as if they lowered rates to ridiculous levels in the first place, without regulating how excessive borrowing could be used, expecting the current outcomes.
The economy is doing terrible because interest rates have been too low since 1990 or 1981. Japan destroyed their entire country with 30 years of zero interest rates policy and now they finally figured it out and are raising interest rates as the Yen implodes.
1% GDP growth. And that's with a million new replacements coming in every year. What a country.
There will be 8 cars in every lawn/driveway and you will like it.
RUN FAST TO THE US: THE ECONOMIC POWERHOUSE
a country run by a freaking part time drama teacher... what the f did you expect?
@@jasperalberts7647 I got a sneak peak of the bug recipes Trudeau has cooked up, he called it the Davos special.
They brought in all those people, look at the worker-to-retiree ratio in 1984 and 2024.
Canada needs millions of young people 😂😂😂
I almost forgot how 0% inflation (originally defined as excess money supply but then redefined as the current/downstream symptomatic “prices”) is “bad” for the consumer until I remembered that we exist in a fractional reserve lending paradigm where the house of cards collapses unless new debt is issued to extinguish older debt
Bingo
Completely agree with you. 0% inflation is GREAT !!
That's nonsense. Inflation will never drop to zero in Canada, and 4.5% is already considered low. Borrowing comes with costs! This person clearly doesn't do grocery shopping or car repairs to understand how expensive things are right now.
I prefer inflation rates of 3-4% over 0-1%. Higher inflation encourages new business development and economic growth, which are essential for a healthy economy.
One lesson I've learnt from billionaires is to always put your money to work, and diversifying your investments. I'm planning to invest about $200k of my savings in stocks this year, and I hope I make profits.
You are right. The best approach I feel is to diversify investments- by spreading investments across different asset classes like bonds, real estate, and international stocks, they can reduce the impact of a market meltdown.
@@Victoria-io7qb I really want to get in with a financial advisor this year, especially as all markets are hitting highs. I don't want to be too optimistic and end up losing everything.
'MARGARET ELLEN WHITLOCK' is the licensed advisor I use. Just research the name. You’d find necessary details to work with to set up an appointment.
Telling me you're holding long duration bonds without telling me you're holding long duration bonds.
We're still waiting on the flood of mortgage renewals from the people who took out 5 year fixed terms during 2020-2021 housing boom. I don't think the interest rate effects will be fully realized until that occurs.
Thats the reason why they are lowering rates. It’ll be 2.75 by dec 2025
@@Plumber60423agree w necessity but get a good laugh that your target is the same as the boc projected target based on supply backlogs. Aka hot air
@@steveunderhill5935
Lol some economist think it can be as low as 1.75% . @ 4.5% im already cash flow positive $10 a month @ 2.75 id be $410
How will it be 0% inflation as we import inflation as our $ drops
CAD usually goes up when US cuts rates triggering faster economies
Even if they cut .25 for 10 times, definitely no growth.
rosenberg feels that 4.5% is too high with a zero supply housing market. when we hit 2% inflation, then they can lower it.
That’s is BS inflation will never go Zero in Canada LOL and 4.5% is already low…borrowing has cost! this guy never do grocery shop and fix his car how expensive it is right now!
Governmental calculation “inflation” is different from the reality we everyday people experience. This was laid out in the books they the government is allowed to manipulate variables in the equation in order to produce a more “accurate” number for the narratives. If you ask me, my overall household expensive have more than tripled in the past 5 years. That’s 300% overall, and I laugh every time I hear 2.7%-2.9% 🤣
Also my friend who was born and raised in Burlington Ontario made the decision of moving to the UAE 5 years ago, he came back for a short visit just this past 2 weeks. When he saw the prices of everything, it was safe to say his jaw not only fell to the floor but also dug itself a few feet deeper in denial.
Agreed.
Leave rates AS IS.There is NO reason to lower rates , the housing sector needs to implode and let the chips fall as they may.
Rosenberg = bag holder
Probably invested in Canadian looser equities 😂
@@APICSKH It's common knowledge the U.S. stock market is the most overvalued ever on record and when it finally implodes it will affect most of the worldwide stock markets like the TSX.
@@parkerbohnn I don’t consider it over valued. I would love to invest in TSX but not in monopolies of banks, telecommunications, government funded airlines. You exactly know what I mean with one exception of shopify. Got burnt with Nortel, BB, and now afraid to loose my shirt in TD and all other banks. Least I say the best.
Your guest saying Canada is going back to the low rates is simply wrong. Unless the BoC is designing this economic crisis, that would be the worst decision ever. Free money is a terrible idea.
A lot of people are going to get hurt by Tiff's dithering and Justin's spending.
Nope, no cuts should be made until inflation is resolved.
I agree.
With the enormity of the inflation that has happened over the last 5 years, it will be impossible for the average joe to just absorb it going forward.
A certain amount of deflation is required at this point.
Or big raises for everyone, but we know that's not going to happen because it would mean a 50c loonie.
It takes 12-18 months for interest changes to make it fully through an economy. You need to be proactive and not reactive.
@@Michael-pg7rv Jumping the gun on rate cuts (currently), is just putting us back into high inflation and causing reactionary adjustments. These cuts are the BOC last ditch effort to try and recover some revenue before the floor falls and we are in full-fledged recession.
@@nicholasbaker8158 at this time, I don't see the bond market co-operating to the point where lower BOC rate would translate to equal lower fixed rate mortgages anyway.
One thing that is proactive are the markets that support the CAD. It's going down, and will continue to do so in anticipation of 2 more cuts that seem to be a certainty.
By Christmas when the local Canadian harvest has come and gone, food inflation will come back in full force.
People don't see it right now so they sweep it under the rug until it happens.
It will never be resolved as the Canadian dollar plummets with runway inflation right around the corner.
Rate cuts ==> Weaker CDN $ ==> Higher inflation
Which leads to runaway inflation then hyperinflation.
you gotta do what you gotta do when you have a drama teacher running our country. 😢😭
Why is it that the BoC and other central banks for that matter always stick to 0.25% intervals. Why not 3 rate cuts 0.35% + 0.35% +0.3% to get a total of 1% in cuts over 3 meetings.
Tradition. Decades ago, even stock prices were quoted in 1/8th dollar increments.
READ MY LIPS,NO CUTS!!!!!!! 🙂
Tiff Macklem is an imposter. He told every one to get variable rate mortgages, then overreacted with rate increases, and we are all now paying for it.
"He told every one to get variable rate mortgages", is that right eh?
The real imposter is the joker we have in Ottawa........ what a disgrace to this country!
Rosenberg is a boss and has been calling it out for months now. This guy is gold.
This guy is a scam!
One tool praising another tool 😂😂😂😂😂😂
@@priuss6109 the REAL tool is in Ottawa.
KEEP CUTTING, DOWN GOES THE Canadian $$$$$$
Causing Even More Inflation
Once the currency goes the country goes.
We'll take our chances!
I would rather have inflation at 3-4 than at 0-1. Country needs to promote new businesses and growth
Always Great to hear this both gentlemen, what they said last year was all make sense now.
Annual wage gains are coming in at 5.1 percent. The Bank of Canada rate must be higher than that 5.1 percent or this will lead to a wage price spiral and double digit inflation.
Are you sure it's 5.1%, what's the unemployment rate then?
If the so called experts or financial advisors have the side job as a house flipper or multiple mortgage holder they shouldn’t be here for interview!
Where were all those people.calling for rates to stay the same or higher now?
After watching ur vdos here I couldn't sleep whole night... You're so generous with sharing your knowledge in trading. I firmly believe I can be financially free by learning from you. Looking forward to trade with you. Unlimited love and respect from my side..️️️
Close down the Bank of Canada
Cut it by 1 %
GDP has been 0-0.2% from Nov '23 so 1% is really optimistic lol .. rates need to go down to -0.5% lol
We need negative interest rates.
that would just cause a pump and more expensive assets... good for the investor.. bad for the home owner and farmer
Negative interest rates destroyed all of Europe and destroyed the entire banking system there. It also made everyone there poor or poorer as they couldn't earn any rate of interest on their money.
Need to hold so we can see some price corrections; this needs tome to wogk. Dropping now essentially bails out a bunch of inflated asset owners.
What an idiot..
Yes, and you will lose your job too.
Wake up and smell the coffee,
you won't see prices of eggs, bread, milk going back
to the prices in the last century.
Assets are not inflated, it's inflated because the money printing machine was
on and the price just readjusted itself.
@@larchdental Personally my job is secure for a bunch of years (fully funded health-tech startup); I hope it can last past this recession phase.
@@larchdental although I agree with your comment but when the average person can not make those payments with the increased interest rates. Assets will have no where to go but down.
Surprise surprise. Behind the drag curve as usual Bank of Canada
Boomers wants to kick the can
John is my celebrity free pass just putting it out there. I could have picked Chris Hemsworth or Hugh Jackson but no it's John for me. Also please not another financial crisis :O
What gives me a bone is if the Chinese would sprinkle a little stimulus spending. I can't wait for the copper price to go erect.
That would just sink an already falling Yuan meaning no there would be no one to buy Vancouver real estate.
Big recession hitting, everyone can pony and get a second cottage... not.
This guy dropped the ball on this one, what a pair of muppets
Howbout oil shock..stagflushin
Not going to solve the larger systemic issues in our economy. Government policy and hostility to business and home ownership is at the core of this.
The govt is NOT hostile to homeownership. It is precisely because they encourage investors/ speculators to enter the market that people are priced out. You could I stead say they are hostile to homebuilding, which is the only true long term solution
@@shsal110 it's hostile to home ownership to over inflate the demand side of the equation
We need inflation to go anyway 0 or negative
Inflation going to zero is great. Negative is even better.
The economy would completely collapse and you won't have a job.
That's extremely naive. It means unemployment in the tens and far more human misery than what inflation causes.
@@obesia1873 except for the financially responsible people. It's insane that people have made their wealth off of holding assets and over leveraging themselves.
Under free market capitalism goods and services should decline in price not increase. The 2% inflation target you people are all brainwashed with was put in place to facilitate a fake fiat currency and to inflate away endless government deficits.
@@shaneatkinsonsa It's not over leveraging if a bank believe it's worth lending you the money ... It means the investment project is deemed safe enough from a bank's perspective. You just sound jealous.
Says bag holder investor
😂
The neutral rate should be around 5%
What an idiot
Leave Rosie aloone!! o/
Brilliant. Great conversation
Someday Rosie will be right
He is right. Just becuase newspaper headlines don't state it doesn't mean it's happening. You are already in a recession
What a genius,smh
Rosenberg is so redundant and predictable. One of the few pundits you can replace with automation/ai
Don't worry PP is on the case😂😂😂
2.5 %! Lets goooooooo!!!
This tool needs to retire
The BoC unprofessionalism and dependence on Communist regime in this country has already ruined Canadian economy. I guess that was Justin's plan, the one he gets paid to implement by WEF.
🤡🌍