As far as TO valuations go, old houses are still selling for more than new so what does that tell you, it tells you we are in a bubble despite what some commentors will say to the contrary. Combine these necessary corrections back to reality and common sense, the valuations of lots themselves will drop and when it does, spurned on by unemployment caused by a drop in commodities, a realestate correction is destined in inflated areas.

We have two things going for us in Canada: banking regulations and banking regulations. But the banks themselves, CIBC being the most notable as of late, has made poor investments into subprime (10% exposure to their overall portfolio) and as their liquidity is reduced, so will liquidity be reduced in the markets. If valuations drop straight across the board into commodities, this country will be headed for a recession and there will be no mercy for Conservatives who jacked military spending, GST cuts and corporate tax cuts to reduce government income for the rainy days about to come.

That, folks, is just plain piss poor policy no matter how one looks at it. The government is supposed to know how an economy works. The policies by the Cons mirror the policies of the Republicans who through deregulation and spending on war, created the U.S. recession about to come by the creation of the bubble to begin with. To not know the inevidable result to deregulating the U.S. banking industry 5 years ago in relation to real estate bubbles is to not know as well, that bubbles also burst and create recessions.

Combine it with spending on war, and our current North American governments are to blame for the financial mess that is now unfolding. Its called deregulation, folks. Our current governments created it and are just adding more fuel to the fire.

My New Years resolution? Convince voters as much as possible to stop voting in corporate lobbyists. Maybe then and only then, will laws and bills be passed in this continent that makes sound sense as what we are seeing now, is corporations that are suffering from their own greed. Its why, dear readers, they need to be regulated and governments can’t be owned by them as they are now.

Content, intent and lack of clarification by a new poster indicates someone who posts to this blog does stoop that low. I have seen other posters complain about this as well.

I guess that is what some choose to do when they can’t formulate arguments and positions of worth.