The bank CEOs on one side and the Regulators on the other....Carney, Flaherty and Dickson of OFSI.
The bank CEOs like Clark of TD are pretty much begging the regulators to DO something. Tighten the rules, raise rates, rein in the CMHC...do something to stop us from lending!
Meanwhile Carney et Co are asking the lenders to show restraint.
The message from the CEO's is simple. We cannot hold back. We have to push the envelop. please staple the envelop so we don't push it as far. We can't help it. the music is playing, we have to dance!
Neither are doing anything.
Neither did anything to stop this bubble from reaching huge proportions and it could have been prevented.
We had the example of the US to see exactly What-Not-to-do, and yet we did it. Same crap.
Insured high leverage mortgages, cash back mortgages, CMHC expanded even as Freddie and Fannie were going bankrupt in the US, CHMC insurance for rental and investment properties, document-lite mortgages- you name it , we did it.
Now the chips will fall where they may.
