Follow Plan B Economics by Email

April 25, 2015

The Canadian housing bubble ready to burst: PAA Research

No comments:
Bradley Safalow, Founder & CEO, PAA Research joins BNN to discuss why it's time to short the Canadian housing market.

Oil's fall took a bite out of this Calgary home's sale price

No comments:

April 24, 2015

Surviving the Canadian Housing Crash

No comments:
What can Canadians do to be prepared financially for retirement and to take advantage of the "once in a lifetime" buying opportunity that will follow the bubble bursting? All these answers can be found in When the Bubble Bursts.

Canada's Housing Market Most-Overvalued Relative to Rents in the World

No comments:
Canada’s housing is the most overvalued in the world when compared to rental rates, and the third-most overvalued when compared to incomes, according to The Economist.

Government Support for Canadian Banks During Financial Crisis

No comments:
Canadian banks have strong balance sheets, right?

Canadian banks are conservative, right?

Canadian banks eased through the financial crisis unaided, right?

Does the table below change your mind?

This shows the government support (Bank of Canada, CMHC, US Federal Reserve) received by the big Canadian banks during the crisis. More importantly, this shows the proportion of support to market cap. It turns out that some banks received support that EXCEEDED the market value of their equity.

Moral of the story: the bursting of the Canadian housing bubble could have a serious impact on the Canadian financial system.

Read the full report