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Are We Worrying Ourselves Into A Housing Crash?

October 22, 2012

Over the past year at MonsterMortgage.ca, we have debated the concept that the federal government, with the help of the media, are actually (inadvertently) creating a housing market crash. Garry Marr from the Financial Post wrote a good article on this very topic this past weekend. If you missed it you can read it by clicking here.

It is no secret that the media loves negative news over positive news and since 2008 they have been writing stories with headlines like the following that strike fear into the heart of Canadians about the future of the housing market:

“Housing Market Set to Crash”

“Consumer Debt Bigger than the US”

“Interest Rates Set to Rise”

“The Sky is Falling the Sky is Falling”

OK…I made up the last one.

Garry Marr’s article from this past weekend prompted me to share what I think is some great insight from a popular American financial newsletter that was shared with me.

Below is an excerpt from an article entitled the “9 Financial Rules You Should Never Forget” that reinforces Mr. Marr’s message:

Tune out the majority of news.

A 24-hour news cycle is built for people who can’t see more than 24 hours ahead. That’s why a
long, slow, but very important rise in domestic energy production is rarely mentioned, but when
the Dow falls 20 points, it is MUST-READ BREAKING NEWS.

Most people’s relationship with daily business news should be either:

Atlantic writer Derek Thompson recently wrote: I’ve written hundreds of articles about the economy in the last two years. But I think I can reduce those thousands of words to one sentence.
Things got better, slowly.
That’s all you needed to know. The rest was noise.

Click on the following link to view the entire list of the 9 Financial Rules You Should Never Forget. It is a fun and insightful read.