The thing is...if mortgage defaults rise...are banks 100% insulated from this ?
"CMHC"....what do their books look like ?
What is the background of their funding and relation to GoC ?
No matter what they will take the loss and not the banks ?
What's up with us (taxpayers) subsidizing bank loans ?
Recently new/stricter mortgage lending guidelines have been put in place (? too late) but the fundamental cause of our possible housing bubble is over permissive lending by banks.If the spread is low just increase the volume.
Everyone drank the "low interest/rising prices forever" Kool aid.