The author of BoomBustOlogy “Spotting Financial Bubbles Before They Burst”, explains why he’s shortselling Canadian Real Estate. Below are some bullet poiints from the compelling 9 minute BNN interview, worth listening to – Editor Money Talks
Canadians have extremely higher debt to income ratios than Greeks do.
Canadian housing prices have diverged extremely upward from the U.S. experience without a corresponding correction.
The Canadian economy is at risk from the oil sell off.
Canadian sub-prime loans could be as high as 25% of new loan creation.
Canadian hubris, over confidence and fear:
1) Canada is different,
2) foreign buyers want Canadian real estate,
3) real estate prices will continue to rise (the inflation argument),
4) have to buy now before being priced out.
Click on image to listen to the 9 minute interview (begins after commercial)