Stoneleigh and Max Keiser on Canada Housing Bubble

[traelin0]

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.

More here:
globaleconomicanalysis.blogspot.com/2010/12/stoneleigh-and-max-keiser-on-canadian.html