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Grabbing a slow falling knife would describe the situation here.

In reality this is going to be a very good thing after the garbage has been thrown out. Finally young people will be able to buy a house at affordable prices, which will also be the start of the next long term bull market in house prices. Of course that includes up and downs.

In the 1930's I am sure that was the start of the I can afford a house now situation. We are in the reset of gold is great and after that we go forward generation.
 

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I agree that there is nothing wrong with zero-down mortgages where the mortgage lender has recourse against the borrower's other assets and future income and the borrower has a high enough net worth relative to the loan. That doesn't apply to many borrowers, though, especially many of the borrowers who got such loans in Canada. They tended to be first-time buyers who could barely afford the property. That's a recipe for disaster.
 
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