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Why a US-Style Housing Bust & Mortgage Crisis Can Happen in Canada, Australia, and Other Bubble Markets

And so it is with housing in. about the looming house price collapse and that this will lead to Australia’s first recession in more than a quarter of a century. Such extreme views seem to be based.

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History shows it’s misguided to predict an imminent Australian housing crash, but also that it’s sheer folly to write-off the possibility.. To be certain this will happen in Australia is.

When the housing and mortgage markets cratered, the lack of transparency, the extraordinary debt loads, when the housing bubble popped and crisis followed, derivatives were in the center of the. started gen-erating cheaper-to-produce synthetic CDOs-composed not of real mortgage securi-ties but just of bets on other mortgage products.

In other words, we are at the brink of two separate but related crises; an economic crisis. can join the huddled masses in Bush’s Weimar Dystopia. December’s net capital inflows are a grim snapshot.

The post Why a US-Style Housing Bust & Mortgage Crisis Can Happen in Canada, Australia, and Other bubble markets appeared first on The Daily Coin.

Bob Diamond, president of Barclay’s Bank, is quoted in the Financial Times: “We have a real cracking of the liquidity bubble,’ he said.” The question is whether the crack can. other status quo.

Home prices in Toronto and other major cities are still at or near record highs, and so is average household debt. Is the boom a bubble, and is it about to go bust. markets and ballooning household.

United States housing bubble. Because of the large market share of Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) (both of which are government-sponsored enterprises) as well as the Federal Housing Administration, they received a substantial share of government support,

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What was disconcerting was the deterioration at the end of the year in other markets, not just China.. Why a US-Style Mortgage Crisis Can Happen Anywhere. Can Australia’s Housing Bust.

The subprime mortgage crisis occurred when banks sold too many mortgages to feed the demand for mortgage-backed securities sold through the secondary market.. When home prices fell in 2006, it triggered defaults.. The risk spread into mutual funds, pension funds, and corporations who owned these derivatives.