So, here we go again. article Merrill Lynch warns of Canada housing bubble predicts national price drop of five per cent in 2012 “We estimate housing prices nationwide are about 10 per cent over valued,” the report says.  

I wrote a detailed letter to The Toronto Star and some economists who made their predictions this time last year.   They successfully scared potential real estate investors out of buying with their 10-15% prediction on price drops. I was just wondering if they would consider reimbursing these people for the lost appreciations that were made in housing markets.  None of them commented. 

Last year they indicated a 10-15% drop, in Toronto, we noticed increases of 7-10%. As I use their predictions as one of my main bellwether indicators for future growth, I find myself thinking that the appreciaiton of homes should infact be 15% for 2012? 

God only knows what would happen to the housing markets if they predict an even to positive outcome.  We may go early into the artificial increases I have mentioned in previous posts.  I still think that is 3 years off.

I predict there will be several more predictions from economists and Banks whom are clearly more interested in having you deposit your remaining savings with them in the hopes that they can avoid any further bail outs.

Last time I checked Merrill Lynch was not in the business of Mortgage Investments in Canada.  Were they not the ones who were involved in the creation of that mortgage default swap?