February 16 2010

The bizarre scenario of condo buyers queuing around the block during the biggest recession since the Second World War to engage in what Canadian Finance minister Jim Flaherty terms "Reckless Speculation" has finally driven the fear level in the Canadian government to the point that it is willing to incur the wrath of the voting public to save them from themselves.

Despite plenty of evidence to the contrary, Flaherty still refuses to provoke alarm in his pronouncements:

"There's no clear evidence of a housing bubble, but we're taking proactive, prudent and cautious steps today to help prevent one"

but his actions speak volumes and tend to indicate that he really concurs with Stephen Jarislowsky, chairman of Montreal-based investment adviser Jarislowsky Fraser Ltd who has stated that he is

"...convinced there is a housing bubble in Canada"

In announcing these changes---which will not take effect for another two months---Flaherty is engaging in the established practice of democratically elected governments from time immemorial. That is: too little, too late.