Max talks to Nicole Foss about the unbusted real estate bubble in Canada. some canadians still live in denial bob chapman gerald celente nouriel roubini Jim Rogers Marc Faber economic collapse Peter Schiff Obama gold silver federal reserve crisis michael maloney gata inflation alan greenspan benbernanke LTCM max keiser stacy herbert comex GATA dollar fiat amero currency bretton stock market crash rothschild jp morgan goldman sachs credit hyperinflation weimar government

25 Responses to “Nicole Foss : Canada’s real estate to collapse by 90 percent”

  • flagship21:

    The head turn was classic

  • intrigid:

    @707hoser People who talked about housing bubbles 25 years ago were morons because the interest rates were very high. Housing bubbles and catastrophic housing collapses are what happens when interest rates are far too low for far too long and banks allow mortgages to occupy 40% of a household’s income instead of a more sane 20%.

  • 707hoser:

    @intrigid Yes, housing bubbles can be caused by very low interest rates in addition to corrupt and predatory lending practices. Interest rates are low in Canada but the banks are governed by much stricter standards than in the US. Plus, the Canadian government has made moves to tighten mortgage standards even further recently. I don’t see interest rates rising rapidly anytime soon in these disinflationary conditions. Would you agree?

  • intrigid:

    @707hoser I was talking to two of my co-workers at lunch today. One co-worker and her husband own a condo in one city and a house in another. Combined, their mortgages are $500k for 35 years. Their combined income is about $90k. The other co-worker makes about $35k, and last year she was approved for a mortgage for $225k. Their finances are maxed out. These are just two examples but if they’re approved for these mortgages then others are as well. In what UNIVERSE are these “strict” standards??

  • intrigid:

    @707hoser Regarding your comment “I don’t see interest rates rising rapidly any time soon.” All this means is the disaster will happen later and it will be far worse. Low interest rates are like the crack cocaine of an economy. The longer we’re addicted to them, the more brutal the detox will be. If interest rates remain low for 5 years then there will be that many more people entering the real estate market at ridiculously inflated prices. Interest rates WILL go up. Then the chaos will happen.

  • intrigid:

    @707hoser Furthermore, pointing to the fact that the U.S. had worse lending standards is an incredibly flawed argument. This is because the U.S. experienced a 30% collapse in real estate values WITHOUT any rise in interest rates. They have much further to fall. Also, U.S. mortgages allow locking in the interest rates for the entire mortgage. Canadians cannot do this beyond 5 year terms and thus a far greater percentage of Canadian households than U.S. are vulnerable to rising interest rates.

  • 707hoser:

    @intrigid Well, I said Canadian bank lending standards are stricter than in the US, didn’t say they were perfect. Why are these people taking two mortgages they can’t afford? Common sense would suggest renting in one location, not buying in both. Yes, there will a correction in the Canadian housing market, probably 10%, not 90%. You are free to disagree, time will show us who is wrong.

  • intrigid:

    @707hoser Canadian standards aren’t just “not perfect,” they’re abysmal. You asked me why they’re taking on two mortgages they couldn’t afford. Well, they can afford it, but they’re sacrificing everything else and leaving no margin for error. She moved to a bigger city to buy the condo and they’re having trouble selling the house. The matter at hand is that home values are determined by what people can afford, which is determined by what banks are willing to lend. This is why it’s a bubble.

  • intrigid:

    @707hoser To suggest that a “correction” of 10% is in order.. well… I don’t know what to say about this. It just demonstrates such a lack of understanding of the current situation that I don’t even know where to begin enlightening you. And yes, we will see what will happen when either A) interest rates rise to a certain threshold, maybe another 2 percent, or B) banks run out of liquidity. Either one of these scenarios may be what ignites the fireworks factory.

  • 707hoser:

    @intrigid I’m so flattered that an expert like you would feel the need to ”enlighten” me. You’ve shown your complete lack of ability to enlighten anyone. First of all, Canadian banks won’t ”run out of liquidity”, do you know anything about the banking system? Second, interest rates rising at a controlled rate should not cause a collapse in prices of 90%, maybe a small correction. As for your friends, that’s a silly example to bring up. They are sacrificing as a CHOICE!

  • intrigid:

    @707hoser I’ve illustrated point by point why this is a bubble. What have you done to actually refute my points? Nothing. All you did was get sensitive and throw a fit. Also, do you realize how you just contradicted yourself? First, you stated that there is no problem in Canada because we have “much stricter” standards. Then, when I pointed out that people can obtain outrageous mortgages in Canada, you said “they are sacrificing as a CHOICE.” So which is it? They can or they can’t get them?

  • hannag23:

    90%? What a wingnut…I think she’s been smoking too much BC Bud.

  • chadberry75:


  • c00per69:

    She misses the point about the tar sands. At $200.00 barrel of oil you can use coal at $2.00 barrel to heat and extract it. Who is this ignorant lady ?

  • jahnotdead:

    At the end of the day, if people’s salaries aren’t rising and property prices are skyrocketing, it HAS to be a bubble caused by overleveraging.

  • trinikid2k2:

    There’s definitely a bubble in housing prices in Canada, anyone living here would know that. Here in Toronto prices are ridiculous. “Really, that peace of shit property costs $500,000?” I say that every week ….

  • Clichyabarbes22:

    I agree with some of what she has to say, but the bubble is confined to certain regions & towns like TO&Van. Sask is sitting on oil, potash, & is a huge agricultural producer & a small population @ a time when ag prices r going up. We’re not overbuilt like the US, yet & we didnt have as risky lending. Also u cant walk away fr ur debt in Canada, u still owe. I agree thr will be pain when a correction comes, but 90%?? Not sure about that. Also mtgs pymts r not tax deductable.

  • mookixox:

    I’m in central Canada, In the past 5years I’ve seen min wages go up about 1.50 and 80,000 dollar home prices skyrocket to 250,000-300,000. Does this make ANY sense in a healthy economy what-so-ever? I can drive down the street and see between 1-3 new constructions of homes and large renovations on nearly every block. I know dozens of people who are newly hired roofers, framers, brick layers etc…This is the peak of the bubble, or what America saw in 2007 before the collapse.

  • elimar008:

    @mookixox we dont have that problem in quebec though, we could get hit but not as much as the west

  • mookixox:

    @elimar008 I just saw a page dedicated to the Vancouver housing bubble. It turns out thousands of Chinese are playing economic ‘hot potato’ with each other that is keeping this giant scam afloat, Some families are buying 5-6 different homes and condos each. When the dust settles the Chinese will be left holding the bag, they will flee the coutry and let our bank carry the tab (which will come out of tax payer pockets like what happened to the Americans).

  • jebrucker1:

    Nicole Foss is an interesting speaker. Too bad the interviewer interrupts her so often, choosing to inject his own take on the situation (disguised as a long question) instead of letting her talk.

  • JohnnyHorton:

    Sorry Max, your guest is an idiot. The U.S. economy is brought down by fraud and prices are down about what 50%. How can Canada, which is mainly a commodity based economy, lose 90%. Also how can Canadian dollar weaken compared to the super inflated U.S. dollar. Honestly….. you should ditch this episode. It’s making you look bad.

  • islandsylph:

    Max is a very rude host. He’s boorish and bad mannered.

  • VeryCanadianNews:

    A one bedroom condo in Edmonton in a well built high rise sold for $250,000.00 in 2008. The same condo is on the market with an asking price of $82,000.00 in May 2011.

  • MrJackassjerry:

    She is hot.

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