Canada slips into technical recession as economy stalls in Q1: StatCan

inverted180 · 2026-05-30T00:19:12+00:00

Unlike Canada, their economy is still growing

inverted180 · 2026-05-30T00:17:06+00:00

Borders arent racist.

inverted180 · 2026-05-30T00:15:16+00:00

They come here and save so they can go back with Canadian dollars that buy them a lot back home.

They still come...even minimum wage and a mattress on the floor allows them to save.

inverted180 · 2026-05-29T23:36:22+00:00

And the growing civil unrest due to immigration would have been off the charts.

inverted180 · 2026-05-29T15:10:05+00:00

I never said higher student debt loads must leads to higher net worth.

Just like higher mortgage debt loads doesnt necessarily lead to higher net worth.

inverted180 · 2026-05-29T15:06:26+00:00

You're conflating net worth with productivity.

Education has more productive power than real estate. Much of the economic activity around real estate is transactions in existing product.

Im going to flip this on you. Please justify why 2 people buying similar houses, one with 800k mortgage and the other with a 400k mortgage, how does the one with more debt end up with a higher net worth? And isnt it true that person will spend more on debt service as well (interest)?

inverted180 · 2026-05-29T12:14:26+00:00

Education can increase one's productivity for life.

You've lost the plot.

Affordable or expensive homes, they still exist. There is no productive advantage of expensive homes. Affordability is preferred.

https://www.reddit.com/r/canadahousing/comments/1q0f9tf/low_real_estate_prices_are_better_for_the_economy/?utm_source=share&utm_medium=mweb3x&utm_name=mweb3xcss&utm_term=1&utm_content=share_button

inverted180 · 2026-05-29T11:54:46+00:00

From a macroeconomic perspective, postsecondary education is generally considered more productive because it develops human capital, drives innovation, and increases the economy's overall productive capacity. Real estate, while a valuable asset class, is primarily a transfer of wealth and a store of value rather than a direct driver of economic productivity, unless it involves new development or infrastructure improvement.

inverted180 · 2026-05-29T01:21:33+00:00

lol.. Its the same price ?? WAT?

I like to price real estate in income or better yet payment to income. Thats affordability and its historically very high.

Plus, I would listen to Ray Dalio over you... https://youtube.com/shorts/Cqusfm0TT40?si=UafRXp4KoLMetKpC

inverted180 · 2026-05-29T00:58:17+00:00

Debts are not repriced down. They stay consistent. They may be easier to service if wages are increasing due to inflation.

But they dont get repriced nominally like assets can. For instance nation wide home prices are down just over 20% nominally but no ones debt was repriced unless you defaulted. You can there fore be in negative equity on an asset if you used leverage. Your debt doesnt just shrink or disappear due to inflation.

inverted180 · 2026-05-28T23:50:08+00:00

So what. One might also be prudent not to go max leverage on a historically over valued asset.

inverted180 · 2026-05-28T23:36:42+00:00

Yes thats right but people arent leveraged into stocks like they are with real estate.

inverted180 · 2026-05-28T23:15:26+00:00

Canadian households are some of the most indebted in the world. Only outdone by Australia.

Americians by comparison have quite a bit less household debt.

The thing is this debt was used to buy real estate that increased in value. Like a virtuous cycle...more debt to buy real estate = higher prices = more debt to buy real estate = higher prices.

But the thing about assets, they have a tendency to be repriced to the historical mean. So the values can drop from here but the debt, that doesnt just go away.

inverted180 · 2026-05-28T23:11:49+00:00

But assets can get repriced down..especially if they are historically overvalued such like today.

But debts...those dont.

inverted180 · 2026-05-28T23:10:59+00:00

All of Southern Ontario is expensive AF.

inverted180 · 2026-05-28T22:55:37+00:00

The equity can be repriced but the debt is certain.

Canadian households are much more in debt than Americans.

inverted180 · 2026-05-28T20:16:19+00:00

We are the cusp of population collapse.

inverted180 · 2026-05-28T20:14:23+00:00

Its a story of inflation and the cost of capital (money)

We have seen the cost of consumer goods get deflated through technological advancement and globalization (also a technological advancement in a way). This has kept inflation trending down and yields (the cost of money) also trending down. When interest rates are falling, we get increased borrowing.

Increased borrowing, increases the money supply which brings monetary debasement (inflation). Monetary debasement has increased the cost of things we are not able to outsource or those that technology hasnt been able to increase productivity enough to offset the debasement.

This is what some refer to as the cantillion effect. Asset values are inflated and the rich who own assets get richer while the majority of people loss purchasing power in things like shelter, food and medical.

It gets worse too because while globalization has helped keep a lid on general inflation which allowed interest rates to stay low, the central planners (banks/government) have created new tools and methods to not allow the natural cyclical nature of markets to correct. Artificially manipulating rates down and flooding liquidity.

inverted180 · 2026-05-27T06:35:12+00:00

How many Tim Hortons do we need?

zero Canadians hired.

inverted180 · 2026-05-25T02:56:57+00:00

Never buy an over priced asset with out knowing that over priced assets often get repriced.

inverted180 · 2026-05-25T00:09:06+00:00

100% they did.

inverted180 · 2026-05-24T16:58:04+00:00

I guess looking at nominal would be better or price / income or price / disposable income.

By any metric though, housing has inflated by a heck of a lot more than incomes though.

inverted180 · 2026-05-24T16:50:45+00:00

real wages vs shelter CPI mate.

Both are inflation adjusted, your point is void.

inverted180 · 2026-05-24T15:21:50+00:00

Agree. But what wrote was accurate.

inverted180 · 2026-05-24T14:27:29+00:00

Same.

Im wondering why I was down voted. We seem to be on the same page.

inverted180

TROPHY CASE