1) What is the author referring to as the depression of 2008? If the author predicted this in 1997, what do you think this means for the model's predictive validity?

2) Interpret the author's claim that monetary policy acts as a subsidy to real estate prices. Draw specific reference to

AD/AS

and the cost of credit. Has the central bank of Canada increased, decreased, or neutralized this subsidy since the COVID-19 pandemic?

3) Interpret the author's claim that fiscal policy acts as a subsidy to real estate prices. Please note that mortgage interest is not tax deductible in Canada, but the other claims, i.e. not paying capital gains on a primary residence, are accurate here as well.

4) The author argues for a real-estate bubble peaking in 2024. Given that the author wrote this in 2012, do you think his model has predictive validity? Why or why not?

5) Do you believe the author's claim that the upcoming crash will be more severe because government bonds will not be considered safe? If that were the case, describe the implications.

6) Do you believe a recession or depression is likely in the coming years? Defend your opinion.