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02-27-2013, 11:45 AM
  #26
Ernie
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Quote:
Originally Posted by MountainHawk View Post
Some Canadian cities have severe housing bubbles that will pop like the US housing bubble did. This will happen independently of the US. Canadian mortgage laws will mean the recession won't hit as hard, but it will hit eventually.
No, they won't pop like the US housing bubble did. The reason that the US housing bubble blew up was because the mortgage and banking industry ran amok and leveraged themselves too thinly. Canada never had the same problem because of tighter banking rules.

Mortgage rules just got tighter and we're seeing some housing markets correcting. But slowly. People can and will keep paying their mortgages. As I said, the only thing that would threaten that is some cataclysmic external economic event.

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