ZH is full of it again... "Biggest mortgage lender"? Really? Firstly, HCG is small, as people have mentioned. Secondly, the reason for their liquidity situation isn't that they're being denied funding by the market. It's that they are being squeezed by provincial regulators to curb some particularly egregious practices. So how on Earth is this similar to the subprime crisis?
unlike the US, Canada doesn't have an immigration problem or a race problem or a debt problem(although the PM is trying to create one +global warming may be good for agriculture in Canada.
Not sure what you mean by Canada does not have a "race problem" ??? I live here in Quebec and I've lived in the U.S. There's a lot of racism here in Canada but not like it is in the U.S. Most of what I see as a racism problem is towards the native Canadians (Indians) in very subtle ways but very common. Yet, with all the problems...more people are willing to help when they do see injustice in comparison to the U.S. There's also a common growing debt problem here in Canada that's frequently discussed on the Canadian TV and I do see many hints of it when I shop. Last year the banks were saying its near record high levels.
Metro Toronto has a far more diverse community then most areas of Canada and I don't see a "lot of racism" here. So if we are talking about why Toronto's housing market is expensive, one factor is that this is a great place for many immigrants with families to live. And the immigration numbers confirm this; 120K new residents in this city every year. That's a lot of people. Some rural areas of Canada and certain small cities can have a much different experience. I'm pretty confidant I can say that Metro Toronto doesn't have a "race problem", and compares favorably to several large cities in the US that said immigrants may choose instead.
It really should read "biggest non bank mortgage lender" right? Is that true? IDK I'm not from Canada nor some canadian banking expert. I'm just a dude who copy and pasted a headline.
Yes, the qualifier would help... The whole thing with the "housing bubble exploding" is a little bit too melodramatic for my taste as well.
In the story they speak of losing high interest deposits. So I think that they needed money on the deposit side. (Home Capital has to bring in deposits to lend out money - they are not a bank). I do not think the story is about mortgage defaults. Certainly it could be a heads up on the potential, but I think it is about a matching problem of deposits to mortgages. Without new deposits they can't issue new mortgages and that kills growth in revenue. If the total money on deposit is dropping then they need new money to match against loans (I believe).
Mostly because the conservative government kept the banks out of subprime loans, They had much more control as there is only 5 banks in Canada. They then balanced their budget again quicker than any government in the G7. Trudeau promptly blew a gigantic hole in the balanced budget. I cant say for sure that Canada has a problem with debt/GDP because i simply cant find it anywhere, but here is the first link that comes up when you type debt/GDP in Canada. http://www.budget.gc.ca/2017/home-accueil-en.html This should be comforting too all Canadians, when you google about the debt and you are confronted with social justice warriors playing a fucking banjo, you should have full faith in the people running the ship, even when they explode the deficit.