Quote:
Originally Posted by Twisted Canuck
BOC announced their rate cut, they went a full 50 bps. I was wondering if they would follow fed all the way or just go 25 bps....
I think in the long term this is gonna bite the economy, and the markets, in the butt, but what do I know. Cheap money and people just pile up more debt seems like. Not a sustainable model.
In the meantime my (small) mortgage is up for renewal in June, and they were already offering me a pretty good rate for early renewal. I told them I was holding off because I expected a rate drop (this was a month ago)....glad I waited. Should get something very good in the next month or so.
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The problem for the economy right now is that the people under 40 can't build up cash the same way as their parents did. Low interest rates are going to cripple the economy at some point when the house of cards fall. People need real wealth, created by real capital. Not more debt to make a bigger issue down the road.
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“If all mankind minus one, were of one opinion, and only one person were of the contrary opinion, mankind would be no more justified in silencing that one person, than he, if he had the power, would be justified in silencing mankind.” John Stuart Mill
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