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.

' ?: T( ]0 ]' D0 h; X* K* E4 @In 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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. w( }& e) V) E* z"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."

; M) v: W# d6 D+ o8 SAs he sees it, Canadian home buyers never got as reckless as Americans.
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3 _8 v  b" u/ s! l"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.

' `; m6 `1 s( A- t2 I6 v0 p"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."
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Subprime 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.

: _7 R# ~5 A5 @"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."

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.
看到有个同学已经转过次文章啦，没看到，抱歉。
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1 C! d/ ~$ k( x, j3 H[ 本帖最后由 catty 于 2008-10-1 09:32 编辑 ]