FED raises interest rates another 75BPS fooling even Economic Woes
Its going to get worse before it gets better.
Things are getting nasty in the real world of Canadian real estate and they are getting even uglier on RE Twit. Many people seem to have gone bananas. It is a sign of the times right now. People are scared about the future of the economy and they are getting pissed.
Unfortunately I am sure that things are going to get a hole lot worse before they start to get any better. There is starting to be some blood in the streets. But there is most certainly about to be more. And then some more after that.
We still haven’t felt the last few rate hikes and those were the big ones.
Most in the industry were thrown for a loop last week when the BoC raised their interest rates by ONLY 50bps. The expected 75bps was happily forgotten quickly by all, only to realize that there must be a good reason for this surprise TINY 50bps raise.
“We must be pivoting” thought everyone in the industry regardless of Bear or Bull identity on social media.
“I fucking hope so.” said Darryl. “This sucks!”
“I wonder what the FED will do?”
“They must be working in tandem with the BoC.”
“Right?”
Even the super famous “Economic Woes” account on twitter was sure that the FED would only raise 50bps and keep lock step with the BoC. His logic was detailed. “Few” and “Fuckery”. He was even willing to leave Twitter “Forever” if he was wrong.
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Well as it turns out the FED gave the BoC and Economic Woes a giant kick in the balls. The real question for me is….. Why the fuck did the BoC only raise 50bps when they knew that the FED was going to raise another 75bps.
Much smarter people are telling me, this will cause the CAD to lose strength against the all mighty USD. It seems that the USD is destroying every other currency out there right now. It is causing other countries to inject more stimulus into their economies. We don’t want the UK pension funds to all disappear simultaneously now do we? That would be bad. What about the Chinese Real Estate market. That wont have an affect here.
Don’t worry. We have 500,000 new people coming soon to strain a government system that affects you. Oh and maybe your shelter cost.
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