CANADA CRASH ALERT: Toronto Condo Sales plunge 47 percent

CANADA CRASH ALERT: Toronto Condo Sales plunge 47 percent

Truth is, Mike Whitney's article here gives crucial information as to the state of the Canadian housing market and prospects for the future. It is not a pretty sight.

And his conclusion is just as powerful:

Keep in mind, that the Canadian government guarantees 100% of roughly $640 billion in mortgages under the Canada Mortgage and Housing Corporation (CMHC). (which is another lamebrain idea by the shifty Finance Minister Flaherty) Eventually, a large percentage of these mortgages will default, which will send foreclosures skyrocketing, boost unemployment, push down prices, widen the deficits and set the stage for the kind of vicious "reforms" that right-wing budget hawks and austerity nutjobs love.
It's all part of the "social counterrevolution" that journalist Patrick Martin speaks of in a recent piece titled “Obama Spearheads Social Counterrevolution”. Martin says:
“In every country, the representatives of finance capital, having plundered national treasuries to bail out the banks and speculators, are now demanding that the working people pay the price…. Under conditions of deepening economic crisis, the ruling class is seeking to defend its wealth through a historic retrogression in the living conditions of the vast majority of the people.”
Well put, Patrick. Bravo.
While I am less a fan of the Republicans, Obama is constrained by the wealthy and does not have the power to fight back in any meaningful way. About the only thing he is doing is trying to limit speculation. But as long as QE goes to the wealthy and not to main street, Obama or any other president will be powerless to help main street in any meaningful way. 


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