I think one also has to consider the persistent low interest rates that has happened in the last 20-30 years and how this has incentivized for assets to not only skyrocket in value, but also make people think that money is ‘cheap’. What’s even crazier is that the banks and various private lenders were more than willing to give out large mortgages and loans to people until they realized the problem got so big and risky that they had to introduce stress tests.

The feds have a difficult job ahead of it if they try and unwind the gravy train - the economy would have to run red hot so that the interest rates can be raised slowly over time by the BoC. If the BoC’s rates were somehow managed differently when it came to housing, there might be an easier way out.