A clip from The Unlimited Podcast (host Brian Ginsler) in which economist David Rosenberg argues that Canada's housing market represents a larger mortgage-driven credit bubble than the U.S. 2006–07 episode, notes the issue is global and places Canada among the top three vulnerable countries, and expresses a high probability of a recession (stating at least an 80% chance). The host frames Rosenberg's comment as another warning about a housing bubble in Canada.
Questions this video answers
He says he would see at least an 80% chance of a recession.
Chapters
When you take a look at Canadian household balance sheets and most of the debt is mortgage debt, it's a bigger credit bubble than it was in the United States back in 06 and 07, where I was pounding my fists on the table over the credit housing bubble in the U.S. brian. This is bigger in Canada, and it's actually, it's global. Canada's not alone, but we have. We're right up in the top three. This is truly national. And if you believe in the concept of mean reversion, remember, mean reversion is just a horizontal line. Mean reversion means that you go from one extreme to the other in both directions. And I know people say to me all the time, boy, you know, Rosenberg, you're the boy who cried wolf. To which I say, yeah, but the wolf does show up at the end of the story. You know, so you're asking me about the economic outlook. Look, I would say this is actually true. Globally going to be very weak for a long time. I'm not saying that we're going to be in a prolonged recession. I do see a recession staring us in the face. I'm not saying that's 100%. I said before, there's no such thing as 100%. I'd see at least 80% chance of recession. I'm more concerned, Brian, once we're in it, how are we going to get out of it?
Okay, well, I think what we might have just heard was David Rosenberg calling another housing bubble, but this time in Canada. You heard it here first on the unlimited podcast.
