CMHC CEO: big real estate risk on Canadian taxpayers

As in other countries, the institutions who have originated record levels of high risk loans have collected their rich commissions and fees up front and downloaded the risk of loss on to we the taxpayers. Brilliant business model for them.

Canada’s top housing authority has delivered some stunning warnings on threats facing Canada’s housing markets. CMHC chief executive Evan Siddall is warning that foreign investment could flee Canada, destabilizing housing markets in the process. And he also unveiled the results of internal stress-testing, showing insurance claims could balloon north of $13-billion if Canada suffered a U.S.-style housing crash. Here is a direct video link.

(co-host Mr. Taylor insists that none of this is cause for concern, the US and global growth are all improving and will keep Canada out of trouble according to him. Long-always Canadian stocks much Mr. Taylor?)

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