Garth Turner on the Howe Street channel.
How we got here and how it is changing big-time!
For those who think 'we are different'. Garth explains the situation where banks gave cash-back mortgages...ie they gave someone with no skin in the game, the 5% deposit and the CMHC (tax-payer) insured the other 95%!
So no incentive for the lending institution to be sensible since they are throwing the risk right at the CMHC. The mortgage broker gets a commission IF the deal is done, not for being cautious. The bank manager builds up his book. The CMHC gets to pump up it's chest and the buyer, seller and realtor are all happy.
So who loses? We all do, when this ponzi scheme come apart.
Is there any more pop after the drop? - *Mid-week market update*: Is there any more "pop" after last week's drop? The market certainly had a big rally yesterday, and it is not unusual to see a pa...
4 hours ago