Did you know that many manufacturers have been using techniques to deliberately reduce the life of a product to increase its replacement rate and sell you the same thing again? It’s called planned obsolescence.
UBS published its latest global real estate “bubble index” on Thursday, listing the major cities most at risk of housing bubbles.
Concerns over asset bubbles have regained steam as improved world economic growth, low unemployment and ultra-low interest rates have pushed up asset values
"Bubble risk seems greatest in Toronto, where it has increased significantly in the last year. Stockholm, Munich, Vancouver, Sydney, London and Hong Kong all remain in risk territory"
UBS noted that Toronto and Vancouver weren’t “dragged down” by the global financial crisis, as a weaker Canadian dollar cushioned the blow. “Overly loose monetary policy, for too long, in addition to buoyant foreign demand, unmoored their housing markets from economic fundamentals—and both markets are now in bubble risk territory.”
“A strengthening Canadian dollar and further interest rate hikes would end the party,”
UBS Global Real Estate Bubble Index