Canada Bracing for Housing Crash Caused by the Same Illegal Practices as US

The US was a trial run and it worked perfectly for the investment banks. They got money from investors in exchange for what investors thought were RMBS. As they sold more and more of the junk “mortgage bonds” the Ponzi scheme grew geometrically and has now been  institutionalized in the US.

Globally the loan standards decreased to virtually zero because nobody involved in underwriting had any risk. Global investors purchased derivatives based upon derivatives that were based upon mortgage loans that didn’t exist within the chain.

The reality of the bogus mortgage bonds has hit the Pension markets where there is a shortfall, reported thus far, of over $1.5 Trillion. Managers don”t want to report it because it might cause them to lose their job. But the reality is that the money is simply not there and so pension managers are looking for the same  kind of bailout that was given to the banks. If they don’t get it, many workers and former workers are likely to get a letter in the mail telling them their pension benefits have been reduced or eliminated.

In Canada, all this is starting to hit and the banks are smug in their expectation that no action will be taken against them for creating an obvious bubble caused by their manipulation of the currency market making it possible to lend money (i.e., other people’s money) without risk and then sell the loan to multiple buyers in several layers of derivatives to the benefit of the investment banks and to the detriment of the investors and the putative borrowers.

But Canada is not the U.S.. How Canadian regulators, Parliament and the Canadian courts might handle this might be very different from the U.S. Unless the courts receive and accept the policy judgment that the banks must be saved at all costs, the Canadian courts are likely to demand  proof of claims just like any other civil case. That is going to be a problem for foreclosing parties who have no claim, much less proof of it.

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4 Responses

  1. What little I know of Canadian laws regarding mortgage obligations means that homeowners will be just as deeply harmed as they were in Ireland… I know people in Vancouver that I warned of this a few years ago (when the Chinese money was beginning to slow down) that will likely be destroyed when this implodes. This could be good for us in the USA if it brings us to the point where we get real reform and action against the banksters.

  2. Lets schedule a conference call with all American attorneys and advocates in a week or two to discuss a general litigation plan to help those to the North.
    SN at CRD 818.453.3585

  3. Neil and All Borrowers in Canada:
    If we can help, reach out to us at Consumer Rights Defenders at 818.453.3585. Helping litigants nationwide and now internationally!

  4. Let’s see how Canada handles this fraud. Will judges care more about their self? United States Courts Justice System…….oh wait there is no Justice System.

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