No Crash for Canada Real Market, CIBC said it again

catty

Canadians haven't put themselves deep enough in debt to cause a U.S.-style housing market bust, a CIBC World Markets economist says.

- a. H, _9 v9 W( m& l1 Q, I: eIn a report issued Tuesday, Benjamin Tal asks: "Where's the trigger for a Canadian house price crash?" He concludes there isn't one.
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"To be sure, house prices in Canada will continue to ease in the coming months," he says. "But the triggers that led to a free fall in Canadian real estate markets in the early 1990s and today in U.S. markets are nowhere to be found."
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As he sees it, Canadian home buyers never got as reckless as Americans.

) ^" c! _7 v9 S  T. Q& c, p2 H"By almost any measure, American households entered the current housing crisis from a more vulnerable position relative to their Canadian counterparts — carrying a heavier debt load and a much lighter net worth position. And when it comes to real estate speculation, Canada was not really a player.
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3 E- Q' v; C; B$ D"But even more important than the absolute and relative level of debt is the distribution of debt. At the peak of the cycle, subprime and Alt-A mortgages accounted for no less than 33 per cent of originations in the U.S. market. In Canada we estimate that at the peak, non-conforming mortgages reached 5.4 per cent of originations."

3 k. [& W* V! o5 T3 ?0 G* YSubprime mortgages are those given to the least creditworthy borrowers. Alt-A mortgages are considered a step higher, although the category includes so-called liars' loans in which borrowers are not required to verify their earnings or assets.

Tal says the U.S. meltdown is basically a subprime story.
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# t: ^  Q, ?. u) S  r6 |5 h* ["Eradicate subprime from the U.S. housing market and, instead of the most severe house price meltdown since the great depression, you get a trivial moderate cyclical slowing — something along the line of what we are currently experiencing in Canada."
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* V( [5 ~/ J$ q; y6 S当然，历史已经证明CIBC他自己在市场预测上没有信誉拉，现在关键的是哪个是导致灾难的Trigger.
; j* v* A. s. T+ B4 Y看到有个同学已经转过次文章啦，没看到，抱歉。
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  g1 K4 }& [: M8 J3 E! b/ O[ 本帖最后由 catty 于 2008-10-1 09:32 编辑 ]