But Canada is similar to Australia, with a speculative property sector, with too many people over-extended in debt. Already in Sydney, there is news banks are severely rationing mortgages based upon post-codes.
Once Canada’s consumers understand the seriousness of the recession and the risks to jobs, expect consumer demand to react negatively and for the Canadian economy to enter a deepened and prolonged recession. If the property bubble bursts, it could get ugly.
For Canada, short-term, there are two hopes. Firstly, there could be s rise in commodity prices which seems unlikely. Secondly, the Canadian government could stimulate demand with economic policies – we’ll have to wait and see.
Smart Canadians should act now, ahead of the crowd.