tag:blogger.com,1999:blog-11719208.post5782087134947785879..comments2023-11-05T04:36:14.223-08:00Comments on The Mess That Greenspan Made: The new Canadian housing bubble?Timhttp://www.blogger.com/profile/16530974968126497397noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-11719208.post-41880426211509690312010-02-09T08:54:58.677-08:002010-02-09T08:54:58.677-08:00I have a hard time with this one while a housing b...I have a hard time with this one while a housing bubble is in its formative stages:<br /><br />"Full Recourse Mortgages — you can walk away from the house, but not the mortgage debt. Makes quite a difference in the way borrowers behave."<br /><br />I'd be shocked if more than 10 percent of homebuyers know or care if their loan is recourse or nonrecourse. <br /><br />RE: Prechter - I stopped taking his advice on gold seriously about ten years ago when he said it would never go above $400 an ounce.Timhttps://www.blogger.com/profile/16530974968126497397noreply@blogger.comtag:blogger.com,1999:blog-11719208.post-63870141580318749042010-02-09T08:18:39.176-08:002010-02-09T08:18:39.176-08:00Barry Ritholotz has some good reasons today why Ca...Barry Ritholotz has some good reasons today why Canada housing in not in a bubble:<br /> 1) Lending Standards were increasingly non-existent in the US from 2001-07. On the other hand, Canada never had the non-bank lenders that abdicated these standards en masse. There was no “Lend-to-Securitize” business model in Canada.<br /><br /> 2) Mortgage Insurance: Mortgage with less than 20% down payment are considered a high LTV ratio (This was 25% previously), and in these purchases, mortgage insurance is required. Over 80% of Canada’s homes have what was commonly known as PMI in the US.<br /><br /> 3) Full Recourse Mortgages — you can walk away from the house, but not the mortgage debt. Makes quite a difference in the way borrowers behave.<br /><br /> 4) Single Regulator, Lack of Regulatory Capture: The hodge-podge of Federal and State regulators encourages forum shopping; it also masks much of the massive lobbying effort by US banks and investment houses. Lobbying dollars don’t seem to be nearly as pernicious or corrupting North of the border.<br /><br />By the way Tim, in the links today you put up about Prector and he scares me, A) gold tanking and B) the market rolling over. I am getting bad vibes since he lives about 50 miles from here. Since you are further away any thoughts?menoreply@blogger.comtag:blogger.com,1999:blog-11719208.post-37856435448779223602010-02-08T20:59:57.328-08:002010-02-08T20:59:57.328-08:00Beauty, eh?Beauty, eh?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11719208.post-51077900405347367692010-02-08T14:03:52.280-08:002010-02-08T14:03:52.280-08:00I liked this bit from the WSJ piece:
"Bryce W...I liked this bit from the WSJ piece:<br />"Bryce Wilson, an elementary-school teacher in Toronto who bought two condominiums in December, says a 20% drop in the value of his mutual funds prompted him to shift money into real estate."<br />Not just one investment condo, but two.....Anonymousnoreply@blogger.com