Toronto, apparently in some kind of time warp, has gone full mania

Submitted by Rich Toscano on April 10, 2017 - 9:51am

This really brought me back:

http://www.macleans.ca/economy/realestat...

("Just jump in" was a thing a realtor actually said to me back in 05 or so).

It's a full on speculative mania (to resurrect a term I was fond of back in the day). Except this time, the exact same KIND of bubble burst horrifically just 10 years ago.

People just never learn... or, maybe more accurately: they never stop just believing whatever they feel like.

Just thought this would be a fun link for the old timers...

(category: )

Submitted by Rich Toscano on April 10, 2017 - 9:53am.

oops

Submitted by FormerSanDiegan on April 10, 2017 - 5:24pm.

I see a new higher plateau in Toronto's future.

Submitted by Escoguy on April 10, 2017 - 9:45pm.

I was last in Toronto in 1990 and recall my Canadian friends telling me then how expensive it was.

While cooler, the feel of the city reminded me much of Houston.

At that time Montreal had a much more "in" scene with better nightlife.

Fast forward, during our bubble, the Canadians prided themselves as having "sound banking" and "good lending practices".

It may turn out in hindsight that deflating a smaller bubble earlier would have caused less problems.

I get it that some of the money is from China/Vancouver and just looking for a place to go but at some point, it would seem locals would just say, Eh, i can move to Arizona and buy three houses. "Of course, I'd have to leave the great white north". But hey hoser! You can have your beer in Arizona and fly north for the summer. Eventually even the Chinese will figure out that Toronto is not SF or Vancouver or Hong Kong but just an over rated inland city which can sprawl out.

Have fun in the meantime. Life's short!

Submitted by ucodegen on April 24, 2017 - 5:08pm.

Humm, I wonder where the exposure is - who is holding those notes?

Submitted by spdrun on April 25, 2017 - 1:49pm.

Hopefully, lots of US-based banks...

Submitted by Escoguy on April 26, 2017 - 9:25pm.

Here's who holds the paper:

http://business.financialpost.com/news/e...

69% held by 6 largest Canadian banks

Cracks appearing (see below link)

http://business.financialpost.com/person...

Submitted by dumbrenter on April 28, 2017 - 8:26am.

Is it because the rents increased at a faster rate in the US since '07?

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