The Mortgage Minute - Why is the BOC 'Talking Down' the Market?
While Ben Bernanke is trying to 'talk up' the US Market, his Canadian counterpart is doing the opposite. Mark Carney and the Bank of Canada are yet again sending out strong warnings about the need for Canadians to reign in their lines of credit and not get overburdened with 'cheap' debt - in other words - he's 'Talking Down' the market. Why? Because ongoing global issues are making it impossible to raise rates. So the only thing Carney or Flaherty can do is talk down the market or tinker with mortgage rules. The result - Look for more rule changes coming down the pipe - this and more in this week's Mortgage Minute.