Fake employment records, bank statements and T4s offered to would-be homebuyers-
https://www.cbc.ca/news/business/marketplace-mortgage-fraud-1.6614132
https://www.cbc.ca/news/business/marketplace-mortgage-fraud-1.6614132
Mortgage fraud a contributor to Canada's housing bubble
- Thread starter The_Krakenite
- Start date
The problem with that, is the tax-payer yet again foots the bill. It is costly to take care of crooks in prison.
Anyhow, IIRC Dr. Burry kept a close watch on this very same thing just before the housing bubble burst in 2007. He had known from history that this type of fraud takes off like a rocket just before the eventual burst, and sure enough, it did. This helped him gain more conviction in his shorts.
Looks like here we go again! For some reason, we haven't learned a damn thing. Or simply forgot due to the 10-year bullrun. We are back at it all over again!
Gonna see how it plays out.
Saw a crazy valuation on one apartment recently in my city.
And few mins ago this on YT.
Nice. I just watched The Big Short the other day for the first time. I wasn't a fan of Burry but now I understand his eccentricities and love him.
Canada barely corrected during the last bubble
The Canadians I know could barely afford the houses they purchased with 5/1 ARMS at historic low rates and will have to get a second job when the rate resets. It seems an unavoidable disaster. The entire Canadian housing market is an implicit bet on exactly what has happened with rates not happening.
I don't know what they will really be able to do with monetary policy since if they deviate much from the Fed , CAD will devalue and cause its own issues. The entire economic situation of Canada seems kind of like a disaster.
Canada barely corrected during the last bubble
The Canadians I know could barely afford the houses they purchased with 5/1 ARMS at historic low rates and will have to get a second job when the rate resets. It seems an unavoidable disaster. The entire Canadian housing market is an implicit bet on exactly what has happened with rates not happening.
I don't know what they will really be able to do with monetary policy since if they deviate much from the Fed , CAD will devalue and cause its own issues. The entire economic situation of Canada seems kind of like a disaster.
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The reality is Canada's housing market is one of most conservatively financed asset groups on the planet; Canadian banks take far less risks then American ones. If anything the banks are too tight. We get these bs themes every so often from people who don't really understand the realities involved. Canada wasn't touched in 2009 for a reason.
I don't know who hasn't "learned a damn thing" except perhaps people on this Canada's housing is in a bubble kick. Such fraud has never been a significant issue in Canada; not now not in 2009. So what exactly are we "back at it all over again" ? Not something you've imagined something supported by meaningful numbers that amount to more then a rounding error on the market.
Nice. I just watched The Big Short the other day for the first time. I wasn't a fan of Burry but now I understand his eccentricities and love him.
Canada barely corrected during the last bubble
The Canadians I know could barely afford the houses they purchased with 5/1 ARMS at historic low rates and will have to get a second job when the rate resets. It seems an unavoidable disaster. The entire Canadian housing market is an implicit bet on exactly what has happened with rates not happening.
I don't know what they will really be able to do with monetary policy since if they deviate much from the Fed , CAD will devalue and cause its own issues. The entire economic situation of Canada seems kind of like a disaster.
What is it about some of you and your conspiracy theories and doomsday theories ? Your analysis is brutally bad here. You've totally misrepresented the state of Canadian real estate. Calling the Canadian economy a "disaster" is just ignorant.
For the record, Canadian banks in 2007 were still not allowed to deal in the same derivatives that brought down LehMan Bros, Bear Stearns, etc. The reason being is the regulators considered them too new and too risky.
For once it paid to be too late to join the party.
On the flip-side, today it seems the US regulators are very hesitant to allow the issuance of spot crypto Exchange Traded Funds. (Only a futures version is allowed at this time). Meanwhile, Canada has beat the world to the first, and as of a little less than two years now, has had about a dozen or so on the TSX. You can even trade options on some of them. Some even have built in wrappers for covered calls to pay out dividends for your registered / retirement accounts.
How times have changed...
For once it paid to be too late to join the party.
On the flip-side, today it seems the US regulators are very hesitant to allow the issuance of spot crypto Exchange Traded Funds. (Only a futures version is allowed at this time). Meanwhile, Canada has beat the world to the first, and as of a little less than two years now, has had about a dozen or so on the TSX. You can even trade options on some of them. Some even have built in wrappers for covered calls to pay out dividends for your registered / retirement accounts.
How times have changed...
Again, Canadian banks are some of the most ultraconservative banks on the planet. You can look up any stat on it. The chances that any of them would have got involved in the derivatives to any significant degree was minimal. You can post pointless shit hinting at some extreme risk taking going on but it's not real. Go ahead, look up Canadian foreclosure rates versus the US, or the balance sheets of the big banks in Canada. You know, real data, not pointless hyperbole.