--- In FairfieldLife@yahoogroups.com, "shempmcgurk" <[EMAIL PROTECTED]> wrote: > > I've read several reports in the Phoenix area over the last year that > suggest that Canadians are responsible for anywhere from 10% to 20% of > all real estate purchases in the area. > > This has been an ideal time for Canadians to purchase American "second > homes": (1) the Canadian dollar has never been stronger than at any > time in the past 30 years; and (2) real estate prices are at very low > prices. > > But the bailout may rescue the real estate market, bringing prices up, > making purchases more expensive for Canadians. > > Gosh, I wonder whether this is a violation in any way of NAFTA? I'm > only half joking when I say that because I know there are oodles of > provisions in it and other trade agreements between the two countries > regarding "unfair" subsidies. > > Would this be an unfair subsidy and, if so, is it prohibited under > NAFTA? >
Funny point. But highlights a major problem with the bailout. it indirectly props up housing prices above levels consistent with the fundamentals. this imbalance with continue to create problems and haunt the economy and tax payer until housing prices are left to fall to fundamentals-based levels.
