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Canadians Have Much More Disposable Income than US or UK

I have read a great economics article at Seeking Alpha and the Unconventional Economist.  It presents some great points on a number of recent reports and I'm going to present a personal summary of these arguments in my own words.  According to this article, and commentary by the Author, Canada's real estate markets are definitely not at their peak bubble, and still have a ways to go because of this spread in disposable income versus critical income.   This concept, however, is counteracted by the fact that we are not equipped for any "correction" or "levelling" of prices because, when push comes to shove, our reserves are inadequate in such circumstances.   I share five favorite points and elaborate on each one respectively.
1. This article does a great job of summarizing the two seemingly opposing think tanks -The Canadian Centre for Policy Alternatives (CCPA) and the C.D.Howe Institute - released papers/reports on the Canadian housing market.  What he manages to prove in this article is that household debt levels, which are at 147% of disposable income as at the 1st quarter of 2010, still have a ways to go BEFORE they reach the lofty heights achieved by the United States and United Kingdom prior to the onset of the ... more

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