One of the biggest dark clouds on the horizon is Canadian real estate, which is peaking after a tremendous rise (via Mish)
Max Keiser holds an excellent interview with Nicole Foss on why the real estate bubble will bust and could take out 90% in value.
Foss says the crash was deferred due to a flood of petrodollars that turned desolate towns into hotspots, like in Ireland. Now people are paying over 50% of their income to mortgage costs. As prices stop rising, delinquencies will surge.
You know the rest. Banks mark down housing derivatives, take enormous loses, stop lending, and limit the housing market to people who can buy in cash. Thus a price collapse of 90% could happen in an instant.
Interview starts at 13:42.
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