I've long contended that the supposed "strength" of Canadian banks was a mirage enabled by the explicit debt guarantees from the CMHC. Without these guarantees, mortgage lending in Canada would not have been so reckless and robust, and growth in property values would not be so far out of whack with income growth. Mish appears to support this thesis with help from others in the following must read post. Lot's more after the jump:
Monday, March 29, 2010
Mish's Global Economic Trend Analysis: California USA vs. Ontario Canada - Which State (Province) Is In Worse Shape? Canadian Banks vs. US Banks Comparison
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