All my Canadian home owner or home owner to be friends, please study the following articles and be vigilant. All the best! Canadian Government Blows-Up Housing Bubble Jeff Nielson Stephen Harper’s Ultimate Crime is almost complete. His campaign to destroy Canada’s economy began with his relentless, meticulous efforts to duplicate the disastrous U.S. housing bubble in Canada (along with piling up years of record deficits). We can be absolutely certain of Harper’s criminal intent here because he chose to duplicate the U.S. housing bubble in Canada after that market had already collapsed in an orgy of fraud-and-foreclosure. But creating a bubble he intended to blow-up was only Harper’s first step in this malevolent plan. Step Two was preparing for after he blew-up his own bubble. Canada is the first – and only – Western nation to write “bail-in” provisions into its own, current budget. For those readers, who were snoozing during the Cyprus Steal (and the details revealed about that crime in its aftermath); let me refresh your memories. The governments of Europe (under the control/direction of the One Bank) staged a carefully-planned “bank robbery” in Cyprus. Of course it wasn’t the bank which was robbed. It was the bank which was doing the robbing (with the assistance of the Cyprus government), and the innocent depositors who were “held up” – after all the Big Money had been quietly warned to move their wealth out of Cyprus banks. Immediately after this bank-robbery, we had the Corporate Media, the banking cabal, and the Traitor Politicians all proclaim that “a precedent had been set”; and they all immediately went about setting up their own “bail-in” frameworks, so they could rob their own populations. Some Western nations have done this surreptitiously, but not Stephen Harper. Not only did Harper plant “bail-in” rules right into Canada’s most-recent budget, he explicitly stated that these rules were “based on” the template written by the One Bank itself, via one of its mouthpiece organizations, the (cynically titled) “Financial Stability Board”. Regular readers are familiar with my analysis of that policy-paper (No Paper Is Safe From A Bail-In: FSB): 6.5 As a last resort…some countries may decide to have a power to…recover any losses incurred by the state from unsecured creditors or, if necessary, the financial system more widely. [emphasis mine] That’s right. The bail-in rules Stephen Harper planted into Canada’s Budget allow the government to steal any kind of paper out of any kind of account, from any part of the Canadian financial system. As I said at the beginning, “Ultimate Crime.” So first Stephen Harper created Canada’s housing bubble. Then he (preemptively) put in place rules allowing the bankrupted banks to steal anything-and-everything from the Canadian financial system (i.e. ordinary Canadians). All that remained for Harper to complete his crime was to detonate the bubble he created. The Corporate Media informs us that Stephen Harper has now done this as well. How? To understand this requires briefly backtracking, in order to explain to readers who didn’t read my original commentary how the Canadian Housing Bubble was manufactured. The centerpiece to Harper’s plot was/is the Canadian Mortgage and Housing Corporation. The CMHC is an exact clone of the U.S.’s notorious fraud-factory, “Fannie Mae”. It provides virtually unlimited funding for the Big Banks to write-up fraudulent mortgages. How are these mortgages “fraudulent”? As a result of the fact that every penny of these mortgages are 100% guaranteed by Chump Taxpayers, the loans are either intended to fail (as with all the infamous Liar’s Loans in the U.S. bubble), or else the banks simply don’t care if the mortgages fail – because they aren’t standing behind any of this debt themselves. How does one make the leap from reckless mortgages to “fraudulent mortgages”? Indeed, no single one of these reckless mortgages could be considered an act of fraud. The act of “fraud” is the deliberate, cumulative act of piling-up $billions, and $billions, and $billions of such reckless mortgages – well past any possible saturation-point in the market. At the same time that the U.S. government is (reluctantly) putting to death its own fraud-factory(ies), the Harper government allowed the CMHC to swell to a mountain of fraud as large or larger than Fannie Mae at its peak (in proportionate terms). Stephen Harper didn’t simply copy the U.S. housing bubble in style, he copied it in magnitude as well. This year alone, Canada’s Big Banks (subsidiaries of the One Bank) have piled up another $66 billion of these fraud-mortgages, and the year was barely more than half over (as compared to $75 billion for all of 2012). That’s when Stephen Harper chose to detonate the bubble. Without public warning, the Conservative government directed the CMHC to choke-off most of the funding to the Canadian housing bubble. After allowing these Big Banks to cumulatively gorge on nearly $10 billion per month of this free money; these credit-addicts have now been told they will be rationed to only $350 million apiece – an (approximate) 75% strangulation of the principal source of funding for Canada’s housing bubble. Naturally the Corporate Media is characterizing this somewhat differently: Ottawa is taking new steps to cool the country’s housing market. Really? A 10 – 15% reduction in the primary source of funding for the housing market could be considered “cooling”. A 25% - 50% slashing of such financing could be thought of (merely) as an effort to stop the market dead in its tracks. A 75% reduction is obviously nothing less than a deliberate attempt to blow-up the market. The only reason the sadistic Conservatives didn’t cut-off all funding entirely is to create a tiny bit of “plausible deniability” that they didn’t destroy the Canadian housing sector on purpose. The CMHC’s original “mortgage maximum” for the entire year was $85 billion, and it is in the process of coming up with a “formal allocation process” for the remainder of the year. There has been no raising of the overall threshold, meaning these Big Banks will be rationed to under $20 billion in free money for the last 5 months of the year – and likely much less, based on these new rules. There is no ambiguity here. First the Harper government unleashed a tidal wave of reckless mortgages onto the Canadian housing market, with financial responsibility for the vast majority of this deliberate fraud foisted onto the shoulders of taxpayers. This time-bomb of reckless debt was then deliberately stoked to grossly excessive size, and at an exponential rate. At the time the Conservative government staged this detonation (in cooperation with the Baig Banks), the Big Banks were deliberately gorging on this debt at record rates. Then credit is dramatically reduced from that same market. Just like the drug-addict suddenly faced with a “surprise” reduction of 75% of his “supply”; the reaction of these credit-addicts to having 75% of their own supply cut-off is as obvious as it is inevitable: withdrawal. What happens when a massive housing bubble experiences “withdrawal”? Déjà vu. We just finished watching this movie in the U.S. (and are about to watch it again south of the border). A total collapse in housing prices. Massive numbers of foreclosures. And fraudulently over-leveraged Big Banks screaming for infinite hand-outs – on the justification that they are Too Big To Fail. There are only two details separating the scripted bubble-and-collapse in the U.S. housing market from what Stephen Harper has now duplicated in Canada. There is not nearly as much overt fraud and/or “securitization” in the Canadian market, but that only means a tiny cushion in the magnitude of the carnage. The other difference between the aftermath of the U.S. housing-bubble and the Canadian bubble is the stealing to follow. There were no “bail-in” rules when the U.S. bubble was detonated. Thus all the $15+ trillion in hand-outs, “loans” (at 0% interest), loss-guarantees, and tax write-offs for the bail-out of the Wall Street cabal had to come directly from the public Treasury. But the One Bank has already cleaned-out all the public Treasuries of Western governments, and so the “bail-in” was born: the Big Banks provide their lists of asset-holders (and precisely what each individual holds), they tell the government which assets they want to steal to bail-out their own fraud, and then the government rubber-stamps the demands of these Too Big To Fail banks. When I wrote “Stephen Harper’s Cyprus Blueprint For Canada” back in April, I predicted precisely this scenario. It didn’t take long for the Conservative government to live-up to that prediction. The following is another article written by the same author: I am far from the first writer to report that Canada’s housing-bubble is nearing some dramatic rupture. Indeed, I may be the last writer to have covered this topic – despite being based in Canada. Why have I been the last scribe to jump on the media’s “bubble-mania” bandwagon concerning Canada’s housing market? Because there has been little to report here other than soaring debt-levels, which also exist throughout the Canadian economy; and, indeed, throughout all Western economies. The building bubble itself has not been even slightly newsworthy. Lost in the mainstream media’s disjointed reporting on individual markets is a simple truth. As long as the West’s psychopathic banking cabal continues their policy of insane, destructive, near-zero interest rates; every housing market of every Western economy will be in a perpetual cycle of building bubbles or bursting bubbles. Period. Thus reporting that a “Canadian housing bubble” had formed had all the “news value” of announcing that the Sun had risen again in the morning. What has finally caused me to jump into this topic are two factors. First of all we have very strong evidence that “the end is near.” Secondly, there is the entirely suicidal manner in which Canada’s current government has (deliberately) constructed this housing-bubble. Regarding the former point, almost always an asset-bubble will telegraph to the market when it is about to burst with an unequivocal signal: falling sales. To understand why this is such an obvious warning-sign requires at least a rudimentary understanding of the mania which fuels such asset-bubbles. In the case of housing-bubbles, that “mania” is composed of a mixture of the greedy and the fearful. For the greedy, the soaring prices which characterize any/all asset-bubbles are like a clarion call: “get rich quick.” For the fearful, soaring housing prices cause an anxiety attack: if they don’t “buy now”, they will never be able to afford to make a purchase. Allowing emotions to enter into one’s important financial decisions is an inevitable recipe for disaster. What falling sales tell us is that the mania is over, and a point of “capitulation” has been reached. This occurs when both the greedy and the fearful say to themselves “too expensive” – the death-knell of any/every bubble. In Canada’s housing market, two of the largest urban markets (Toronto and Vancouver) are reporting dramatic drops in sales. In Toronto, urban sales are now down 13% year-over-year, while in Vancouver sales have plunged by 17% over the same period, and are now at lows not seen since 1998. The end is near. This brings us to the second factor: the made-for-collapse manner in which Canada’s housing market Ponzi-scheme has been constructed. Here two people merit 100% of the blame: Canadian Prime Minister Stephen Harper, and the man he appointed to run Canada’s central bank – Mark Carney. As an ardent admirer of all things “American”; Stephen Harper wasn’t content with having just an ordinary housing bubble in Canada’s housing market. He wanted a Canadian bubble of epic proportions, just like Uncle Sam’s. Consequently, Harper’s Conservative government has totally unshackled Canada’s banks, and allowed them to run wild with reckless lending; exactly as occurred in the U.S. just before its own bubble burst (for the first time). Only three short years ago; Canada’s financial system was the envy of the entire world. Today its financial sector is just another bankers’ Ponzi-scheme. At precisely the same time that the U.S. is belatedly dismantling (fraud-ridden) Fannie Mae, Harper’s government has been rapidly building Canada’s own “Fannie Mae”: the Canada Mortgage and Housing Corporation. The CMHC has been buying-up mortgages so fast that the Harper government has had to raise its legal borrowing limit twice just since the Conservatives took power, and will soon raise it a third time as it nears its new limit of $600 billion. In proportionate terms it is now larger than Fannie Mae (at its peak), and this occurs as a Euro Pacific Capital report reveals that, “Once small, Canada’s sub-prime mortgage industry is now booming.” It goes on to report that there are now $500 billion in “high-risk mortgages” in Canada’s housing market – nearly half of the entire mortgage market. Meanwhile, the obscene “home equity” loan market has also exploded in Canada. These “HELOC” loans (once known as “second mortgages”) have exploded by more than 170% in Canada over the past decade. This massive increase in needless debt inevitably and substantially increases the magnitude of any housing sector implosion. Mission accomplished, Stephen Harper! One might ask how the Harper government has been able to engage in this massive program of sabotage of the entire Canadian financial system – while the Canadian people remain fast asleep. It’s very simple: the mainstream media lies for the Conservatives. Canada’s largest newspaper recently described the Conservative’s banking policies as representing “an ultra conservative financial system.” What the Globe & Mail should have written was that this is an “ultra Conservative” financial system: a totally parasitic system dedicated to serving Canada’s Big Banks at the expense of everyone else. But this still leaves one question unanswered. Why would the Conservative government take the world’s strongest, safest financial system and turn it into a U.S.-style, house-of-cards? Why would Canada’s “strong, safe” banks destroy themselves by amassing massive portfolios of Ponzi-mortgages? Because Stephen Harper and Canada’s Big Banks have now set themselves up for the same “too big to fail” Orgy of Mooching which took place in the U.S. in 2008. The same banks which deliberately took on all of these made-to-fail mortgages, in a grossly over-heated housing market will all go scurrying to the government in mock “surprise” when the Ponzi-scheme they intentionally constructed implodes. And Stephen “Blank Cheque” Harper will be waiting. Those Canadians with functional memories will recall that as Canada’s economy crumbled in 2008 that Stephen Harper did nothing but fiddle – and stuff vast amounts of money into the vaults of the world’s strongest, safest banks. It wasn’t until 2009 that the Harper government actually took notice of the remainder of Canada’s economy, the last major government to announce a stimulus program. If Stephen Harper was happy to stuff money into the vaults of Canada’s Big Banks when they didn’t need a penny, what will he do when they need $100’s of billions to avoid drowning in their own financial feces? That’s right: lots and lots of blank cheques. While most would not believe it (including myself); at least the U.S. government could pretend that it didn’t actively aid-and-abet the U.S. banking cabal in constructing the world’s largest housing bubble. The Harper government cannot possibly engage in similar pretension. It has duplicated the blueprint for the U.S. housing-bubble – and deliberately done so after the U.S. bubble had already burst. This goes far beyond any possible claims of negligence or incompetence. This is an intentional betrayal of the Canadian people, which will inevitably lead to a massive, taxpayer-funded bail-out of Canada’s “too big to fail” Bank Oligarchs. Standing by, eager to print-up as much paper as necessary is Goldman Sachs Alumnus (and Bank of Canada Governor) Mark Carney. As the architect of Canada’s near-zero interest rates, Mark Carney can be thought of as the man pouring gasoline all over the dry tinder. Even B.S. Bernanke had belatedly begun raising U.S. interest rates to try to cool off the U.S. housing market before its manufactured bubble collapsed. Not Mark Carney. It’s “pedal to the metal” all the way…all the way until he and Stephen Harper have driven Canada’s economy off of a cliff. And all this destruction and misery being inflicted on Canada’s entire population is solely to facilitate a heinous looting of the Canadian Treasury by a handful of Big Banks.
Posted on: Tue, 13 Aug 2013 19:54:01 +0000
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