TSX gives up 6%, and with it, all of the gains of the last year. Gold way down, oil down, and like the TSX, RE has pretty much given up its gains YOY. This game has not even started yet.
The bulls are not saying any more that there will be no losses, now a bullish statement seems to be "we'll see a 10% correction, then the cycle will start again", or other such drivel. What happened to flat prices, and plateaux?
How quickly the MSM reports the turn-around. The US is in its economic death throes, and will see no recovery in their economy until the RE market finishes unwinding. It has been said that they are only half-way there! The US government has finally had to take Fannie Mae and Freddie Mac into "preservership" (WTF is that?), and so add another few trillion to the national debt. Egads.
So what for us? Well, we just follow in the footsteps of our corpulent cousins, so in the next couple of years, there will be lots of social housing owned by CMHC, unless, of course, there is no government left to meet CMHC's liabilities. Harper has committed the ritual hari kari, and we are on our way to a "new" government, of some sort. What a freaking mess. Nobody is steering any of the ships of state anymore, except for guys like Putin, Ahmenibidijab (or whatever), Zeng Chow Min (Ka-pow, or whatever), lots of nut-bars here and there, and a deep ennui, and hypnosis in most of the "free world". The media directs us (as a society), and that has been evident so often. It will be interesting to see who wins this election, but judging from what I have heard so far, I fear that it is a foregone conclusion.
The media hyped the RE market up, and will now hype it down, and it is going down fast already, down 4-something% since May. My neighbour has now taken her place off the market because she cannot sell it without taking a loss. I presume that bankruptcy looks better. There is always the CMHC, I guess.
Just a random, unattributed quote for dessert;
Adrian Mastracci, president of KCM Wealth Management, said this may not be a time to panic, but it is a time to be cautious. "...a global slowdown and investors are waking up every day to a new piece of data" which affects markets. His advice is you don't like the risk, stay out -- at least for now. Bebee suggests re-examining your tolerance for risk. "How much money can you really lose and still sleep at night?" she asks. She also advises if you have money to invest, consider using it to pay off debt, especially high-cost debt like credit cards..."Sounds good to me.