”Gentlemen of the shade,minions of the moon.”
The differences between the housing bubble 'pop' in the US and the about to burst bubble in Canada are profound.
Firstly, all mortgages in Canada are "Recourse" versus "Non-Recourse" in the US.
Secondly, the Canadian land titleing and mortgage registration process is much more stringent than in the US.
Thirdly, the "bundling" of debt instruments into derivatives are strictly regulated under Canadian banking regulations.
No doubt that the Canadian housing bubble 'pop' will be very, very painful. But will not lead to a systemic failure as it has done in the US. Canadian bank bond holders and the tax payer will take 'big' hits, as will the unfortunate house owners with big mortgages.