CMHC: Canada’s very own ticking economic time bomb
Filed Under Main Content · Tagged: Assets, Banking System, Borrowers, Cmhc Canada, Disasters, Economic Time, Economy, Hiccup, International Banking, Investment Vehicles, Investors, Job Canada, Low Mortgage, Mortgage Rates, Mortgages, Ninja, Real Estate Market, Time Bomb
The Star- For the past few years, Canada has been basking in the glow of international economic praise.
Our banking system is the best in the world. There has been no need for government bailouts. True, we have recently been running large deficits. But they are manageable in terms of the size of our economy. Our dollar is strong. Investors want to invest in Canada. Best of all, our real estate market, with a short hiccup in late 2008 and early 2009, has been moving steadily upward. Historically low mortgage rates have made housing affordable to practically anyone wishing to purchase.
Not for us the housing disasters that have occurred practically everywhere in the world. No toxic investment paper, as was created in the U.S., by bundling mortgages into investment vehicles that had very poor underlying security. Not for us the “ninja” borrowers (no income, no job, no assets)…
CMHC: Canada’s very own ticking economic time bomb – thestar.com
