"Call it Canada's "New Century" moment. We first introduced readers to the company we said was the "tip of the iceberg in Canada's magnificent housing bubble" nearly two years ago, in July 2015 when we exposed a major problem that we predicted would haunt Home Capital Group, Canada's largest non-bank mortgage lender: liar loans in particular, and a generally overzealous lending business model with little regard for fundamentals. In the interim period, many other voices - most prominently noted short-seller Marc Cohodes - would constantly remind traders and investors about the threat posed by HCG. Today, all those warnings came true, when the stock of Home Capital Group cratered by over 60%, its biggest drop on record, after the company disclosed that it struck an emergency liquidity arrangement for a C$2 billion ($1.5 billion) credit line to counter evaporating deposits at terms that will leave the alternative mortgage lender unable to meet financial targets, and worse, may leave it insolvent in very short notice." More at http://www.zerohedge.com/news/2017-...-biggest-mortgage-lender-crashes-most-history
When it does, watch out. Hongkouver will implode. For that to happen, USA has to give them a business incentive to move south of the border. Such as no tax on world wide income similar to Canada. They all prefer to be in USA to begin with.
Kind of funny how some of you still believe Zerohedge is a worthy source for anything at all. In what world is Home Capital Canada's biggest anything ? How much business do they even have in Toronto ? And what on earth is a "Canadian housing market" ? Such a stupid concept, this "Tyler Durden" group has to be the dumbest group of guys in the business. I know one of them quit in embarrassment a few years ago. Go ahead, find a way to make money off this "news". I could quote some joker on here who declared a bubble 5-6 years ago and strongly suggested shorting Canadian banks ( the real ones, not bit players like Home Capital ). Guess how that turned out.
I monitor EVERY major news outlet and they were the first I saw on my stream covering it. A large mortgage lender dropping 60% in one day is a big deal. If it were from BBG RTRS ect I would have posted that here too. TD and BNS among others were good for a short on this. So they're worth something to me.
So what part of the story was inaccurate? up until a couple months ago HCG had over about a 2 billion dollar market cap, given the fact that Canada has 1/10th the population of the states, that means the the HCG meltdown is almost on par with country wide financial, i bet in 2008 when country wide failed you thought that was irrelevant too and we all know how that ended up, lol.