Ron Butler asks the tough question: are the problems in Canada’s private credit market an indication of a financial contagion?
We have Easy Financial. The stock price fell 50% in one day. Is this the private credit contagion?
Um, they’re restating earnings from over a year ago. What? What? What? What sense does that make?
I think something is wrong because you don’t want to see the CEO of a independent financial lending organization both quit within the same two year period.
“…an indication of a financial contagion?’ Well, yeah, if you play the same games as others, you can probably expect the same issues. This situation isn’t somehow limited to the States, nor is somehow the 48th a magical boundary against woes.
Easy financial is a company that has constantly had a revolving door in its management suite. No surprise they would have screwed up again.
Canadians better hope that it’s not a contagion that spreads to real estate. The financial sector and real estate industry are two big components of the Canadian economy. I’ve read that Canada’s real estate bubble today is bigger than the USA real estate bubble was in 2008. Like the USA in the 2008 crash, there’s lots of mortgage fraud and sketchy loans.
Personally, I think a housing crash is necessary. There’s no way buyers, especially young people, can afford a home at the today’s high prices. Even at a 30% drop, most boomers will still make money when they sell their homes. There should be a law against corporations buying up single family homes and townhouses so it’s not just another wealth transfer to corporations buying up houses after a real estate crash.
This seems to be a more appropriate place to put this link than Reader Tips because it’s related.
‘The Ragona Sisters: Canadian Real Estate and Market Talk’ puts out a lot of videos, which mostly,I think,
align with Ron Butler. Lots of real estate topics to choose from if one is interested.
https://www.youtube.com/@RagonaSistersTv
Meh.
The “Private Credit” as in mortgages for those who cannot meet the standards of credit required for a mortgage from the regulated banks.
Every indication points to the Banks being the silent partners in the “Easy credit” at extortionist interest rates.
Just more white collar crime made legal by Can Ahh Duh’s Kleptocracy.