CHMC is part of the problem not the solution

I'm back and I am not happy....about losing to the US in hockey and about the CHMC.

I cant do much about the hockey, except complain that they should have had Luongo in the net.

However we are having more success with the CHMC. The mainstream media is finally waking up to what we have been saying in the blogosphere for years. The CHMC is distorting the housing (and lending) market and is a huge added liability the tax-payer does not need.

Here's a good summary which many of you may have already read:

http://housing-analysis.blogspot.com/2010/02/cmhc-canadas-moral-hazard-corporation.html

$480 Billion in insured mortgages is an astronomical amount for a small country like ours! What is the Government thinking?? Are our politicians that numerically challenged?

We better hope that housing doesn't collapse or we will all be in deep....

$480 Billion would be $4.8 Trillion for a country the size of the US. It is almost as much as our national debt: http://www.debtclock.ca/

Now of course it isn't all at risk, but once again I say (for the hundredth time)...TO CONTINUE INSURING LOW DOWN-PAYMENT/HIGH LEVERAGE Mortgages WHEN

1) Housing is at all time highs in many parts of the country

2) Interest rates are at all time lows

IS JUST PLAIN STUPID. If there are any fiscally prudent politicians out there please stop this time-bomb.

Think about it...if you were going to buy a used car with next-to-nothing down and poor credit history, you go to one of many 'bad credit, no credit, no problem' lenders and they arrange a high-interest loan and you get the keys.

BUT THE TAX-PAYER DOESN'T INSURE IT!

There is a fear of changing anything in Canada, even when we have seen it fail south of the border.

Remember Canwest begging for a bail-out or newspapers and TV stations would all close down. The Conservatives were, in my opinion, very close to giving them some of your money.

But there was a grass roots revolt and they backed off, and now some channels have been bought by employees, others have been bought by Shaw and the newspapers will stand or fall depending on their locals markets.

The world did not end.

A moratorium on the CHMC will not end the property market.

There is no right to own a home. It is not a bad idea, if you want to and if you can afford it and if you assume the risk.

If you cant afford it, and we assume the risk. DONT OWN.

I dont own and I don't feel deprived. Lets spend those billions on better education and free food for poor kids which is something that is a right, in a reasonable society.

I am now going to put my head in the freezer for a few minutes to cool down.