Quote Originally Posted by psycho44 View Post
lol thought this would be a dead thread. I took 2 years of Economics but neglecting theories I was just stating my opinion. Being an investor as a side job I do try to learn from others and try to weigh it with my meager understanding of economic theories. If we were to use prior history of massive government spending we could use the WW2 periods when massive government spending got the countries out of a recession but that was a different time and different circumstances.

When interest rates were in the double digits houses were cheaper cost of living was cheaper. People now hold more debts than before. You can use your HELOC to purchase another house or buy yourself some expensive toys. Interest rate will eventually go up to keep inflation low and it may be good to the investors but for all those that took out a mortgage of 35 years at below 4% they will feel the double digit interest rate and there will be lots of foreclosures.

On a side note I just went to the bank last week looking to buy another house and they offered me 3.49% over 4 year fixed. Think I'm going to pile on more debt lol. It's just so easy getting approved.
So interest rates should stay low so Canadians keep piling on the debt and housing prices continue to rise?