Economist warns homeowners of bubble trouble

The often controversial former chief economist of CIBC World Markets says there’s another bubble building — in interest rates -— which could be on the rise by the end of next year. That will squeeze homeowners who took out variable-rate mortgages, betting they would stay at rock-bottom for a long time.

 

The author of “Why Your World is About to Get a Whole Lot Smaller: Oil and the End of Globalization” told Reuters that long-dormant inflation rates will soon pick up, thanks to energy prices, leaving central banks little option but to start tightening.