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Apparently (its official) none of it was true.

http://www.theglobeandmail.com/news/opinions/the-…

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"Freelance reporter, Olympic critic turned back at Canadian border

By soundoff Sun, Feb 7 2010 COMMENTS(132) Soundoff

Martin Macias, an independent reporter from Chicago, was detained by officials at the Vancouver International Airport before being deported, anti-Olympic activists say. Macias was set to cover the political events during the Olympic Resistance Network's anti-Olympic convergence until Feb. 11.

Katie Mercer"

Zieg Heil Canada

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"We’ve gotten a lot of press this weekend"

No doubt because the rest of the world is beginning to realize that we're NUTS!

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http://www.calculatedriskblog.com/2010/02/new-hou…

We've gotten a lot of press this weekend.

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Yeah, I'd happily lend out money too if someone else guaranteed that they'd cover the loss in case of default.

I'm getting a really bad feeling about what this year is going to bring us.

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http://online.wsj.com/article/SB10001424052748703…

Excerpts from the article:

Housing Rebound in Canada Spurs Talk of a New Bubble

In Canada, nearly 40% of gross domestic product historically is generated by exports, mainly to the U.S., where economic weakness persists. To stimulate its economy, the government has focused on the domestic slice. In an effort to boost internal consumption, it has kept a key interest rate near zero—resulting in exceptionally low mortgages rates—and has offered various financial incentives and tax credits.

Consumers have responded. Average home prices in Canada have risen 23% from their trough in January 2009. Home-sales volumes are up 70% over the same period.

Canada's central bank and finance ministry say there isn't currently any reason for alarm.

But some economists who are concerned point out that home prices are rising far faster than other measures of economic health. The 2009 price increase of more than 20% came as personal income in Canada fell nearly 1% and total employment was 1.4% lower than the year earlier. In a December report, the Bank of Canada warned that household debt—largely mortgages—was 1.42 times disposable income during the second quarter of 2009, a record high.

Another possible danger: Because Canadian banks typically reset adjustable-rate mortgages every few years, those who are buying now at low rates will likely see increases soon. Toronto-Dominion Bank forecasts suggest that the rate to which many Canadian mortgages are pegged, the prime rate, could nearly double by the end of 2011. The Bank of Canada warned in its December report that if interest rates increase as expected, by mid-2012 about 9% of Canadian households could have so much debt that they'd be "financially vulnerable."

"This is exactly what happened in the U.S., when affordability had moved way out of whack with prices," says David Rosenberg, an economist who witnessed America's housing bubble at Merrill Lynch in New York, and now sees similar trends up north from his post at Toronto-based wealth-management firm Gluskin Sheff.

In October 2008, the Bank of Canada made the first of a series of rate cuts that eventually lowered the target for its key overnight lending rate to 0.25%, which in turn reduced banks' prime rate—the basis for calculating variable-mortgage rates in Canada—to 2.25% by April 2009. In Canada, nearly all mortgages have rates that adjust at least every few years. Currently, rates on some loans have fallen to 2% or lower.

Ms. Gerard has been buying and renting out apartments for years. In 2009, she went into overdrive, buying six units in six months, with mortgages at rates ranging from 2.45% to 3.95%. She says she "maxed out" on the last mortgage, which pushed the family's ratio of debt service to income into the mid-40% range—above the level many Canadian lenders are comfortable with.

Ms. Gerard says she bought all the properties for below the asking prices. "Money is growing on trees these days, lending rates are so low," Ms. Gerard wrote in December in an online forum for real-estate investors. "There are loads of properties to choose from, and the banks want to lend!"

Ms. Gerard, the housewife in Red Deer, says she hopes to buy a seventh unit in a few months—after she pays down enough of her credit-card debt to qualify for another mortgage.

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The rents are tanking hard and fast, even downtown

Note that the last time nominal rents declined in any sector in Vancouver was the 1930's.

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I don’t think BC can hope for this in real or nominal terms because prices are so far gone. Canada-wide, maybe there’s a better chance.

Can't happen for a Canada-wide average, and I doubt even for the median, because BC, Alberta, and Toronto amount to well over 1/2 the RE valuation in the whole country. And Ottawa and Montreal have gotten pricey lately too.

If you mean there might not be a nominal decline going forward in Thunder Bay or Trois Rivieres, yes that may well be the case.

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