Top Canadian Bank says Toronto Real-Estate Not Healthy.

RBC CEO says Toronto’s real-estate market is not sustainable (Financial Post), which is another way to say it is not healthy and won’t go the distance. What this means financially is that if a private family is to buy at some peak price, a bubble might burst and their house price will fall. If that happens, they will owe the bank (through a mortgage) more than what the house is worth. The bank is owed all the same, so the CEO is aware of this situation as his bank is making ‘record profits’. There’s no point ‘talking shit’ about the bank, might as well talk shit about God for creating this whole mess called Life [obviously the shit-talkers ain’t Black either].

The reasons he cites are:
1. Foreign-money, shifting from the Vancouver market to Toronto, ever since Vancouver passed new laws taxing foreign-owners (people who don’t live in Canada full-time, what have you – ask a Lab-rat genius what they might mean).
2. A lack of the more desirable detached homes, so purchases now are all ‘in-between’ purchases with a view to up-sizing and this feeds into the notion that many purchases are ‘speculative investments’ instead of long-term family dwellings as is the natural outcome of planning ahead.

There’s another notion, this CEO wouldn’t dare comprehend and it is one that many ‘minorities’ suspect. The notion is this, ‘rich White white-collar professionals’ are more in debt than up-start minorities and first-generational grads from poor families.

once-affluent white-collar workers pushed into debt and unemployment by the recession. (Guardian)

Debt can make you anxious. To combat the feeling, be proactive. (“6 ways debt can wreak havoc with your emotions“)

ganja-puffing teachers, TV execs and businessmen (“The biggest potheads aren’t who you’d guess“)

It runs against all official surveys, which indicates high asset (net-worth) to ‘Whites’, low asset possession to Blacks, and income inequality for women, who carry more debt as singles. But the prevailing stereo-type of the hard-working ethnic immigrant family has yet to dominate these surveys. They’re still ‘Pepsi’ to ‘Coca-Cola’, except is ‘Coca-Cola’ still the original recipe?

This group, the ‘Pepsi’ group as I just called them, are quick to buy in new areas far from the city core, in former rural areas. That other city life, popularized in sexy TV shows is a ‘White thang’.