Good morning,
First of all, Happy Belated Father’s Day to the wonderful men that took responsibility in their lives to have children. Of course, not all men are cut from the same cloth. Growing up in an Italian household, the Father usually was the breadwinner and disciplinarian. Mom, on the other hand, would stay home managing the household. The facade, he thought he was actually in charge but we all know who carried the weight on their shoulders while controlling decisions. Let’s not kid ourselves. Today we live in a whole new dynamic.
Nonetheless, I awoke this morning to the chirping of chickens laying eggs. It was music to my non-deaf ear as I was hoping the neighbour would deliver a dozen soon. I was salivating, thinking, sunny side up, scrambled with cream, eggs Benedict or French toast. Then I thought to myself, why not try them all? My cholesterol levels are in line.
Speaking of chickens, it seems people in financial constraints might feel the urge to lay their own eggs. In today’s reality, they are probably more inclined to chard themselves, especially those carrying mortgages. Click below and get a reality check for what is happening in our country using Toronto as an example.
https://www.instagram.com/reel/CttrRUNgYcJ/?igshid=MTc4MmM1YmI2Ng==
There are 35.5% of Canadians holding mortgages and two-thirds of this number or 66% are experiencing financial stress. As Mr. Vince Gaetano from Owl Mortgages states so clearly, these statistics are the result of data provided up until December 2022. The recent rate hikes up until now have most likely exasperated the issue but people in general won’t show their weakness. In fact, they may be dipping into their savings or other more expensive options like lines of credit or credit cards to save themselves from embarrassment.
The outcome will force people to make alternative decisions with respect to lifestyle. The dream of home ownership could become a dream once again forcing them to abandon their present home and seek shelter in the rental market to maintain their standard of living. Again, Mr. Gaetano brings awareness and facts to the table, stating that 60% of condos built in the last 5 years are now rentals. Rents have exploded higher because the landlord needs to recoup the carrying costs for the investment made.
Click below to get more insight:
https://www.instagram.com/reel/CtwHQcXg5xd/?igshid=MTc4MmM1YmI2Ng==
Today, the Federal Reserve Chairman once again takes the mic to explain the decisions made and the future that lies ahead. He states the following:
- While rates can be painful, it slows demand
- A very strong labour market is driving the economy
- Inflation is moving down gradually
- The thing that really troubles people is inflation
- Need price stability so people don’t worry about it
- Still, a long way to go to get there
Therefore, what he is saying is that they will be vigilant despite inflation and people’s personal situations. Inflation is the great evil that needs to be slayed, as such rates can continue to rise at a more moderate pace. It sounds like people don’t count. Another point he made was the importance of the USD to remain the benchmark of the world economy. There is too much at stake.
Meanwhile, the Europeans(ECB) are hell-bent on raising rates, and the Bank of Canada (BOC) might do the same as the economic data they produce provides them with the ammunition to make their decisions seem justified. My question is how did we get into this financial predicament to begin with? In the end, who is responsible for the stewardship of the economy and citizens’ ability to improve overall lives while providing opportunities to become self-sufficient?
The USD Index though lower from the previous week remains buoyed around the 102.50 level. Words are powerful even though actions may be delayed. It is the threat, that creates a reaction as fear causes paralysis. Consequently, this small surge in USD strength has seen Gold slip toward the $1930/oz level and Silver slip below the $23/oz mark. Meanwhile, Oil rebounds heading toward the $73/B level and the Canadian Dollar looks poised to test the 0.76 cent level unless some black swan event curtails its move.
I think I love you!