Results 1 to 1 of 1
Thread Information
Users Browsing this Thread
There are currently 1 users browsing this thread. (0 members and 1 guests)
Threaded View
-
12-29-2010, 08:19 PM #1
- Join Date
- May 2007
- Location
- South West Florida (Behind friendly lines but still in Occupied Territory)
- Posts
- 117,696
Max Keiser on Canadian Housing Bubble: Ireland-Like Dynamic
Wednesday, December 29, 2010 3:06 PM
Stoneleigh and Max Keiser on Canadian Housing Bubble: "Expect Enormous Comeuppance, Tremendous Sense of Denial, Ireland-Like Dynamics, 90% Price Drops
Inquiring minds are watching a superb interview with Max Keiser and Nicole "Stoneleigh" Foss regarding the Canadian Housing Bubble. The interview starts at 13:42.
Video: http://www.youtube.com/v/sevM5IstFFY?version=3
Interview Snips
•Canadian banks are not as "bulletproof" as everyone thinks.
•When the housing bubble bursts there will be tremendous consequences to Canadian banking system.
•We are in a massive bubble and there will be an enormous comeuppance.
•Canada housing bubble currently peaking.
•When you are in a bubble, the psychology is such that you cannot see it for what it is. Talking to Canadians about the housing bubble is like talking to Americans in 2006. There is a tremendous sense of denial.
•People pay 50-70% of their income for mortgage costs in places like Vancouver, but it's not just Vancouver. Such things are absolutely characteristic of a bubble.
•Canada will play catch-up to the downside in the fairly near future.
•Ireland-like dynamics absolutely coming to Canada.
•There is also a tremendous commercial real estate problem that will affect Canadian banks.
•Canadian banks have also acted as reinsurers in the derivatives market for a number of extremely risky things. So in a number of cases "the bucks stops with the Canadian banks".
•Real estate prices will fall about 90% on average. Deflationary credit collapse coming.
"Stoneleigh" lives in Canada and is author of the popular Automatic Earth Blog. Also see Stoneleigh and Max Keiser Flatten the Canadian Economy
I agree with everything "Stoneleigh" said in the above bullet point list except I do not see a price collapse of 90% on average. I think 50-60% in some areas is more like it. Even 40% would be devastating and that would be my best case scenario.
Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot. ... adian.htmlJoin our efforts to Secure America's Borders and End Illegal Immigration by Joining ALIPAC's E-Mail Alerts network (CLICK HERE)
Migrants Breach Fortified Border Barrier, March Through Texas...
05-16-2024, 08:20 PM in illegal immigration News Stories & Reports