Tuesday, August 6, 2013

US to phase out their own catastrophic CMHC...

President Obama, arguably to the left of PM Harper, has decided to phase out Fannie Mae and Freddie Mac, their own two versions of our CMHC which insure mortgages.

Our own dithering fools in Ottawa were anti-CMHC except when it suited them. And it did in 2008/9. Even as they watched the US equivalents pull hundreds of Billions out of tax-payers pockets, they cynically doubled our own CMHC, loaded it up with a weak board (IN MY OPINION) and allowed it to have poor risk management and operate opaquely (in the opinion of Nomura and IMF and other non-Major-bank economists). 

Now hopefully they will do the right thing before this monster endangers our financial future further...and wind it down!

BTW- there was a great BNN interview with Ian Lee, an Academic who has been sounding the alarm on CMHC liability which he calls gargantuan! Says the banks are using CMHC!

Try this link.

Click on the second video 'CMHC to take stream out of housing market'. All bulls and bears should listen to this interview