a must read...

Here are some snippets:

"Just to be clear, the Bank of Canada wasn't alone in spurring this huge – and unanticipated – housing boom. Canada Mortgage and Housing Corp. (CMHC) relaxed underwriting criteria in ways that made housing tremendously more affordable for marginal borrowers. Those home buyers could get a mortgage with almost no money down at near-zero short-term interest rates"

and

At the peak of our own mania last fall, home prices soared more than 20 per cent on a year-on-year basis and home sales skyrocketed 70 per cent. These data points all have a “U.S.A. circa 2005” feel to them

Here is the article

Now to be fair, Rosenberg has been calling for a drop in the stock market for almost a year now. I used to read his weekly up-dates, but found that there were soo gloomey, that it kept me from buying any stocks and I missed a good run-up.

However he make some very valid points in this article.