Housing Bubble about to burst

Hi Bob

I've just been reading about the current federal government's actions

that may lead to our bankruptcy.

Since the article appeared in the magazine Counterpunch

we break no known laws by reading it.

Apparently the government is breaking no laws either

although it is difficult not to perceive this as an act of terrorism.

http://www.counterpunch.org/2012/09/11/canadas-housing-bubble-set-to-burst/

The CMHC has been buying-up mortgages so fast that the Harper government has had to raise its legal borrowing limit twice just since the Conservatives took power, and will soon raise it a third time as it nears its new limit of $600 billion. In proportionate terms, it is now larger than Fannie Mae (at its peak), and this occurs as a Euro Pacific Capital report reveals that, “once small, Canada’s sub-prime mortgage industry is now booming.” It goes on to report that there are now $500 billion in “high-risk mortgages” in Canada’s housing market — nearly half of the entire mortgage market.

Meanwhile, the obscene “home equity” loan market has also exploded in Canada. These “HELOC” loans (once known as “second mortgages”) have exploded by more than 170% in Canada over the past decade. This massive increase in needless debt inevitably and substantially increases the magnitude of any housing-sector implosion.” (“The Canadian Housing Bubble Nears Implosion”, ETF Daily News)

Let's not forget Canada that CMHC is a Crown Corporation as such we Canadians are responsible for the debt so when the Harper government tells you the deficit is now 32 billion dollars remember the nearly 600 billion that we are on the hook for at CMHC. Granted, if the bubble bursts not all the mortgages will default however a substantial number will.

In 1977 homes here in Ontario were defaulting and being repossessed, not just on their first or second mortgage but on their third and forth mortgage and homes were in the 50 to 80 thousand dollar range at that time, now they are in the 300 to 500 thousand dollar category.

Thanks Ed B ..... I said it before and I'll say it again in 2008 the Harper government made billions available to the Canadian banking sector through CMHC to cover their high risk loans and told us this money would be recovered by the sale of bonds since then we have heard nothing but silence from both CMHC and the Conservatives. Our government insisted that the Canadian banks were not involved in the bundled mortgage scandal that caused the collapse in America yet our banks lobbied Washington for a bailout. CIBC was sued by the shareholders for failing to inform them of their participation.... the shareholders lost but none the less it confirms that our banking industry in 2008 was on the precipice and the Harper government bailed them out and lied to Canadians.

Flaherty as Finance Minister in the Harris government proved he was incapable of doing the job yet Stephen Harper failed to see his incompetence and continues to allow him to remain as Minister of Finance. We cannot expect better from Harper since he fails to clean his cabinet of the idiots.

Can Canada apply for a Euro bailout?