Re: Cracks Becoming Clearly Visible Now
I suppose it has to get that silly before the last "greater fool" lines up. If there is a 30% correction in the future it will strap a generation of Canadians with a mountain of full-recourse debt that must be repaid without tax relief. If this happens, the first market affect will be a nose dive in real estate sales as new buyers disappear and current owners remain unwilling to sell for less than they paid. Then some current owners will begin to sell for what they owe to get out from under the debt load and finally some others will sell at a loss and take on the equivalent of US student debt that they slowly pay off over a lifetime. None of this bodes well for Canadian real estate over the next decade and since this is the largest component of Canadian GDP, it doesn't bode well for the Canadian economy in general.
Originally posted by GRG55
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