via WSB:
Housing prices in Canada are so absurd that young people and new immigrants can no longer afford rent/mortgages. The current rate hike cycle will become the tipping point that pushes thousands of mortgages into default.
Already food bank use in Canada is skyrocketing. Refugees are sleeping on the streets because shelters are already full of homeless people.
At least one of the major Canadian banks (RBC, CIBC, TD, BMO) will fail and like a falling house of cards will bring down other banks with them.
The CMHC, the govt housing corp that’s supposed to insure mortgages will run out of cash within 6 months.
All it will take is a mild recession + the current rate hike cycle and the Canadian economy, which is driven by real estate and associated mortgage banking, will crash.
I’m shorting RBC. Wallstreet bets wales and gold fish, this will be worse than the US housing crash of 2008. Place your bets. I’m placing mine.
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