Canadian housing has nearly tripled in 10 years. A single detached house has gone from about $200K CAD to over $800K CAD.
CMHC has $20B in assets and $946B in liabilities >50:1 leverage
Banks have lent out a trillion dollars in mortgages for hyperinflated crackshacks while removing any risk of default for them by offloading them to the CMHC (mortgage insurer). At one point, the CMHC allowed 40 year mortgages (in 2008 60% of all new mortgages were 40 year terms), with 0% down (cashback mortgages were a thing with 7-10% cashback), and no maximum loan value. In 2008, over 90% of mortgages were insured by the CMHC (read:
>the entire Canadian housing market is subprime
CDIC = FDIC
Insures up to $100K.
CDIC has $3.4B in assets CDIC has $679B in liabilities >200:1 leverage
Both CMHC and CDIC are backstopped by the government.
A 20+% correction would wipe out the CMHC and at least one major Canadian bank as they have uninsured mortgages (already happening with Home Capital, the Canadian CountryWide). A bank being wiped out would wipe out the CDIC.
The CDIC and CMHC being wiped out would require the Canadian government to issue hundreds of billions of loonies in new debt, sending the loonie to sub-50 cents, possibly to 20-30 cents or even hyperinflating.
What's about to happen is going to be so big that it is going to results in people starving to death. They want a correction before winter in order to minimize loss of life and violence.
Lucas Nguyen
OH
Lucas Bell
Ok But when will it all crash? Give me a timeframe
Cameron Rodriguez
Bumpu
Kayden Morris
Fuck, this could be terrible.
Mass unemployment in Canada would lead to Sup Forums getting flooded with black cock posting, cuck love and more islam apologists
Kevin Johnson
im a retard and don't understand economics what does this mean and why did it happen?
Kayden Jenkins
>tfw a bunch of fucking leafs set off the global financial happening
Joseph Hughes
>im a retard and don't understand economics what does this mean and why did it happen?
Chinese money won't top flowing, pricing leafs out of their own country and also there is no law against giving bogus investment advice. You can give bogus financial advice legally in canada. Saves money on lawyers.
Alexander Wilson
Most financial advice is bogus anyway, and in the US all you have to do to give bogus financial advice is add a disclaimer that you're not giving financial advice.
Leafs have it right on that one. Fuck Jew lawyers. That's not a profession to be proud of.
Ayden Sanders
You're insane m8.
Isaiah Collins
Rockefeller Jew doctor is also not a profession to be proud of.
Charles Carter
lol Ontario Fuck off Tabarnak
Caleb Williams
OH HELL NO
Hudson Sanchez
I cannot wait and hope housing plummets. I want to buy a house and there's no way I'm buying one in a market like this.
Jonathan Watson
>40 year mortgages >in 2008 60% of all new mortgages were 40 year terms >0% down >cashback mortgages were a thing with 7-10% cashback >no maximum loan value Burn it all down.
Nicholas Lewis
The latest builds are all low quality. You think you'll snap up a cheap house but you're in for a surprise once you see how long those badboys are built to last.
Adam Fisher
>tfw have 20k saved up for after the bubble pops
Jeremiah Williams
In a hyperinflationary environment, savers are also wiped out. But the housing bubble can't keep going, it has to pop and soon as it's become a total joke in most major cities. All propped up by dirty foreign money for at least the past decade.
Noah Nelson
People do funny things when they get desperate, though. Just think about how many people almost got thrown overboard in 2007, and now they're back at it, thinking >fool me once shame on you >fool me twice... >uh... >fool me shame... >well you're not gonna fool me again!
Gavin Robinson
It's not a bubble/crash.
They put in rules to prevent chinks from ballooning prices meaning the chinese have no reason to buy properties anymore.
This will just lower pricing and keep the market going, instead of popping the bubble.
Henry Perry
Buy a house in Burlington or Hamilton. Much cheaper
Jose Wright
i hope it hurries up and happens, i want to buy a house
Nathaniel Powell
why start a business or hire anymore employees when you can just buy a house and watch that mofo gain $800 per day AND that's before you count the profits from renting it to students.
Free money! What could go wrong.
Xavier Reed
ITS FREE
Isaiah Roberts
Seriously why didn't I do this instead of falling for the hoax of doing something productive for a living?
I was shopping for a rental once and I met this kid, probably about 20 showing me around and we got to talking. His landlord had a small empire of properties and decided it was time to fuck off to an island and retire, and handed the empire to this kid just because he had is act together. So now this kid, assuming he knows how to run the operation, is going to basically get rich for free.
I'm no commie, but it's the kind of a business that really makes you stop and think. At the very least, a house should correctly be seen as a fundamentally depreciating asset almost all of the time, just like a computer or a car or a pair of pants. To turn it into an investment vehicle based on a fake loan is really making the worst of an already strange situation.
William Powell
manna from heaven my dude
Blake Wright
FINALLY.
BEEN SITTING ON MY 80 K DOWN PAYMENT WAITING FOR THIS DAY TO COME.
I HOPE IT BURNS ALL DOWN AND I GET SOMETHING NICE. MAYBE A 3 BEDROOM.
But if it could recover later thatd be great.
Camden Rodriguez
>a house should correctly be seen as a fundamentally depreciating asset almost all of the time, just like a computer or a car or a pair of pants. To turn it into an investment vehicle based on a fake loan is really making the worst of an already strange situation.
There is a new UN report on how devasting financialization of housing is for the poor (which is most people)
> >In “hedge cities”, prime destinations for global capital seeking safe havens for investments, housing prices have increased to levels that most residents cannot afford, creating huge increases in wealth for property owners in prime locations while excluding moderate- and low-income households from access to homeownership or rentals due to unaffordability. Those households are pushed to peri-urban areas with scant employment and services.
Alexander Scott
*devastating
Gavin Diaz
And just think, if the economy weren't predicated on endless bullshit bubbles, there might not be such desperate capital flight to whatever bubble might be the safest next bet.
The market is supposed to provide useful liquidity, not be parasitic speculation. I blame the Jews.
Joshua Green
pic related is the only leaf who sticks it to the bastards properly. everyone else sucks the teat.
