Basically, it's quite simple:
Harper and Flaherty brought 0 down/40 year mortgages to Canada - Canada's very own "sub-prime" imitation...
In Garth's words: "They allowed no-money-down purchasing of houses. Even CMHC approved a 100% financing program, which meant that people who could not walk out of a Future Shop with a free $1000 plasma television could buy a new home in a Toronto suburb worth $450,000 - for nothing."
Think about it.
We keep talking about weathering the storm, and what will happen next. How many 20-somethings do you know with an $800,000 mortgage ($350,000 home amortized over 40 years - do the math)? How many of them have guaranteed jobs?
How long will this last? What can a government do to fix this? We can't let people with no money keep these homes. Banks are sitting on all this bad debt...
It's gonna get worse before it get's better.
Thanks Harper and Flaherty. Thanks an f'n lot!