What's the problem?

If there is no housing bubble, why worry?

reportonbusiness.com: globeinvestor.com - Don't tighten mortgage rules, Ottawa urged

The head of ING Direct Canada is warning against Ottawa mandating tighter restrictions, because "everyone" wants to avoid a swooning housing market.

The Bank of Canada already said that they will not raise interest rates until much later this year, why? Because apparently they do no consider a house to be good. House prices rose 19 per cent nationally last year, but according to the CPI, housing became more affordable. (Dear Bank of Canada? Don't you find it odd that reducing interest rates would reduce inflations? Could it be because inflation should measure the prices of goods, not the amount it costs to finance that good?)

So why would the head of a bank not want the government to intervene? Because the mortgage industry is a huge gravy train for banks. If it were up to the banks, they'd offer 60 year mortgages, with a negative down payment. The longer your mortgage mortgage lasts, and the more money you borrow, the more money they will make, especially if the government is there to insure you.

Of course, the saddest part is that the longer the Bank of Canada and the Federal Government let this go on, the bigger this bubble will get, and the bigger it is, the harder and the faster this deflate