Subprime Mortgage Problem in Canada? Ask Merrill Lynch
October 31st, 2008OK, I know I may be a little harsh, but it gets to be a bit much reading and listening to the news daily, it is little wonder that the general feeling about the real estate markets in Canada is very negative.
In the Financial Post article, Canada’s housing market ‘traking’ U.S. boom and bust, a Merrill Lynch economist states that the Canadian housing market is tracking the U.S. market with a 2 year lag. OK, I am sure there is truth to this in some respects as is pointed out in the article, our housing market certainly is undergoing a correction for many of the same reasons as the U.S. did, but they seem to have forgotten about the sub-prime lending problem that allowed almost anyone to buy homes. Maybe this had something to do with the rapid increase in prices and the eventual collapse of the market in the U.S. Just a thought, I am not an economist so maybe I am missing something.
Sure would be nice to get the whole story sometime, but I must admit it is almost fun to read the daily headlines to see how stories can be slanted in any way possible, it’s like a sport.
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