Wednesday, July 7, 2010

The Canadian Housing Dream ....

very much intact and likely to remain so and it happens to be the envy of our neighbours down south.  Our conservatism has kept us from  the  housing freefall  still going at breakneck speed in the USA.   They can't believe that if anybody defaults on their mortgage in Canada, the banks and the insurers will go after them forever. In the USA, people are just walking away from their homes when they are no longer able to pay the mortgages and there are no consequences whatsoever.

Jonathan Macey, a visiting fellow at the Hoover Institution and a member of the Institution’s Property Rights Task Force, is the Sam Harris Professor of Corporate Law, Corporate Finance and Securities Law at Yale University and professor in the Yale School of Management. He discusses, on CNBC, whether the United States should use the Canadian housing market, in which people cannot walk away from loans and the banks keep 75 percent of the home loans on their books, as an economic/housing role model.

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