Being a cool and slow Sunday I thought I might throw out something slightly different
I had always thought Canadian Banks were running
the show better than the "Too Many US Banks" but
maybe not so and we could be hit here sometime soon.
Murray Dobbin
Vancouver Sun
June 6th, 2010
The Canadian government borrowed and spent billions to backstop the banks lending during the recession and continues to do so. That borrowing is a cost to the taxpayer and many of the mortgages they bought up (starting with $75 billion in the fall of 2008 and then adding another $50 billion a few months later) could still go into default. If they do the taxpayer is still on the hook – not through the government but through the CMHC, a government backstopped crown corporation that had to be rescued by the taxpayer before. Over 375,000 Canadian mortgage holders are already “challenged” by their monthly payments. When interest rates hit 5.25 per cent, an additional 500,000 will be (challenged).
Read more in the Vancouver Sun blog
http://communities.canada.com/vancouversun/blogs/communityofinterest/archive/2010/06/05/a-response-to-the-bankers-association.aspx