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Home Capital scandal may presage a slowdown: Don Pittis
Home Capital scandal may presage a slowdown: Don Pittis Is false income data a symptom of an industry that has run its course? Could the scandal at Home Capital just be the beginning? The Canadian alternative mortgage company halted its shares after it was revealed that some of its brokers had been falsifying information on the income of […]
Liar Loans Pop up in Canada’s Magnificent Housing Bubble
Liar Loans Pop up in Canada’s Magnificent Housing Bubble For a long time, the conservative mortgage lending standards in Canada, including a slew of new ones since 2008, have been touted as one of the reasons why Canada’s magnificent housing bubble, when it implodes, will not take down the financial system, unlike the US housing […]
Largest “Alternative” Mortgage Lender in Canada Plunges, Denies “Systemic Problem” in Housing Market
Largest “Alternative” Mortgage Lender in Canada Plunges, Denies “Systemic Problem” in Housing Market Home Capital Group, Canada’s largest non-bank mortgage lender, focuses on “alternative” mortgages, as they’re called euphemistically, that is high-profit mortgages to risky borrowers with dented credit or unreliable incomes, such as self-employed folks or new immigrants, who don’t qualify for mortgage insurance […]
Diminishing Returns on Central-Planning Policy Extremes = 2016 Crash
Diminishing Returns on Central-Planning Policy Extremes = 2016 Crash The problem with these policy extremes is that they are so painfully visibly acts of central-planning desperation. It is perhaps fitting that I am posting a call for a financial crisis that fails to respond to the usual central-planning manipulations on Bastille Day. There are two main lessons […]
Chinese stocks: When mispricing becomes more important than pricing
Chinese stocks: When mispricing becomes more important than pricing Defenders of the free market faith tell us that price conveys a great deal of information, enough that you can base an entire economic system on it without any central planning or coordination whatsoever. Whether extreme devotion to this principle is wise may not be so […]
Australia’s Housing Bubble—–The Mania Down Under
Australia’s Housing Bubble—–The Mania Down Under Australians are being “irrationally exuberant” and borrowing too much to invest in housing, exposing the economy to financial shocks, global bond fund giant PIMCO says. In a detailed statistical study that compares Australian borrowers to those in other countries, PIMCO researchers found that Australians’ decision to borrow is driven […]
Canadian Mortgage Insurer Tells US Hedge Funds Why Canada’s Housing Bubble Is Immortal. Hilarity Ensues
Canadian Mortgage Insurer Tells US Hedge Funds Why Canada’s Housing Bubble Is Immortal. Hilarity Ensues Home prices in Canada’s two largest metro areas have been red-hot for years. In May, the average selling price for all types of homes in the Greater Toronto Area jumped 11% from a year ago to C$649,600 on a 6% […]
“Bernanke & Greenspan Have Destroyed America” Schiff & Maloney Warn “People Don’t Realize What Is Coming”
“Bernanke & Greenspan Have Destroyed America” Schiff & Maloney Warn “People Don’t Realize What Is Coming” Ali and Frazier, Laurel and Hardy, Mayweather and Pacquiao, Liesman and Santelli, and now Schiff and Maloney. Peter and Mike join clash of the titan-like to discuss their investment strategies and expose the charts the government doesn’t want you to seeas […]
House prices may stay high in Canada: Here’s why
House prices may stay high in Canada: Here’s why Seemingly insatiable overseas demand is one of main reasons the gloom-mongers have been wrong A friend of mine sold her Toronto house because prices were so high. She didn’t want to get caught in the downdraft. If you’ve been listening to all the warnings from foreign […]
Short-Sighted Politicians Are Fuelling Canada’s Housing Crisis
Short-Sighted Politicians Are Fuelling Canada’s Housing Crisis The latest example of Canadian politicians’ (in)action in regard to real estate prices getting out of control is the recent decision by the B.C. Premier Christy Clark, to reject the idea of raising taxes for overseas investors — despite a petition from her constituents that attracted some 25,000 signatures. “By […]
How Soaring Housing Costs Maul the Real Economy
How Soaring Housing Costs Maul the Real Economy How many years would it take first-time homebuyers, earning a median household income, to save enough money for the standard 20% down payment on a median home? Are you sitting down? In many cities an impossibly long time, Lindsay David of LF Economics (and a contributor on WOLF […]
High End Real Estate in Canada in Frenzied Bubble Blow-Off
High End Real Estate in Canada in Frenzied Bubble Blow-Off Throwing Caution to the Wind We have discussed the dangerous housing and consumer credit bubble in Canada in these pages on several previous occasions in some detail (see “Carney’s Legacy” and “A Tale of Two Bubbles” as examples). Since we first wrote about Canadian real […]
Canada has the Most Overvalued Housing Market in World
Canada has the Most Overvalued Housing Market in World Canada has the Most Overvalued Housing Market in World [Chart] The Chart of the Week is a weekly feature in Visual Capitalist on Fridays. In every inflating bubble, there’s usually two camps. The first group points out various metrics suggesting something is inherently unsustainable, while the second […]
How Insane Is Canada’s Housing Bubble? 42% of “Second-Time” Buyers Need (a lot of) Money from Mom & Dad to Buy a Home
How Insane Is Canada’s Housing Bubble? 42% of “Second-Time” Buyers Need (a lot of) Money from Mom & Dad to Buy a Home A housing bubble is a huge party. Everyone gets drunk and has a good time. The economy booms because housing, particularly construction, is a very local business. It creates local jobs. People […]
Canadian house prices 35% overvalued, Economist magazine says
Canadian house prices 35% overvalued, Economist magazine says Cheap borrowing costs are driving up prices in markets around the world In a survey of housing costs around the world, the Economist magazine says Canada’s housing prices are 35 per cent overvalued when compared to Canadian incomes. Against the level of Canadian rents, housing prices come […]
