Inside job is a documentary about the 2008 Global Financial Crisis that costs tens of millions of people their jobs and homes. It is about the economic meltdown in the United States that wreaked havoc on many parts of the world. If you have not viewed this film it is definitely worth the 108 minutes of your life to view it. View the trailer or View the entire film online or on Netflix.
Why should be care about the past? Too many times lessons have been identified from a variety of crises and when these are not learned and applied they are generally doomed to be repeated. While Canada fared better than the US during this crisis, several things have happened since then that are cause for concern. First, our dollar has declined dramatically against the US dollar. Second the price of oil has fallen dramatically.
What happens in other parts of the world can and does affect us as Canadians. Consider the drop in world oil prices and the effect on Alberta and real estate markets like Calgary. Listings are up and sales and prices are on the way down. Where it will go remains to be seen but the Conference Board of Canada predicts a $3B loss along with 8000 jobs lost for the province. They also forecast a recession for Alberta
Like it or not, as the world’s only superpower, what happens in the US can and does affect other countries. Consider, for example, that Canada sends about 85% of what it exports to the United States and about 25% of what the US exports is brought into Canada. Consider the impact that the recent slide in the Canadian dollar has had relative to the US dollar. Commodities of most types in Canada are now costing us more. When it comes to real estate, the Vancouver market should be instructive. It is now considered the second most expensive real estate market in the world and the lower dollar is an incentive for foreign investors to buy more, and in doing so, drive up prices even further.
As Canadians, we need to be informed on what is going on in the world and in particular, the United States, so that we can buffer ourselves from adverse effects to the degree possible when it comes to the financial and real estate markets. To do that we need to understand the lessons of the past in order to try and avoid future mistakes. Watching inside job is a good starting point. This documentary discusses things such as:
- Wall Street greed and corruption
- Personal gains at massive public loss
- Conflict of Interest
- Lack of personal integrity
- Financial deregulation
- Government lobbyists
- How US major financial sector companies played a major role
- How US government politicians, officials and academics played a role
- How current US politicians and government officials contributed to the massive losses
Real estate markets in Canada are not immune from what is happening around the world and to the south of us. Being better informed as consumers is important especially when it comes to, for most of us, our most important investments – our homes. Knowing local real estate markets is also important. This is where Brett can help for the Comox Valley real estate market. Aim high and contact him before you buy or sell. And, enjoy watching Inside Job.