Just when I think I have heard it all….The Governor was asked by Macleans magazine if his institution bears any responsibility for the ongoing speculation in the housing market?
His answer was an emphatic NO. Apparently when housing prices are expected to increase dramatically, the level of rates that people would borrow to finance their investment becomes irrelevant. I would think that higher rates might act to reduce the available leverage to a prospective speculator based on income but I don’t have a Phd. No, the answer was clear. “It’s not low interest rates that are fuelling speculation.”
No siree, Bob. And for the record, it’s not alcohol that fuels intoxication.
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