That will show them. Heh.
Federal Finance Minister Jim Flaherty shrugged off housing worries in Canada on Wednesday, saying there is no bubble. He did, however, continue to express concern over mortgages with 40 year amortizations and very small down payments.
"There is no bubble here," he told reporters after speaking to roughly 400 people at Chamber of Commerce event in Calgary.
He reminded the audience that the government last week introduced plans to ditch government-backed mortgages with amortization periods longer than 35 years, and require that down payments total at least 5% of the purchase price.
Separately, Mr. Flaherty said he is satisfied that Canadian banks are "well capitalized and strong" as subprime mortgage woes hammer financial institutions in the United States, as well as north of the border.
Further, while he acknowledged that the economy is going through "turbulent times," it remains healthy. "Our economy is strong," he told the audience.
It is characterized by rapid increases in valuations of real property such as housing until they reach unsustainable levels relative to incomes and other economic elements.Didn't happen here people. Remember. You've been told.