An investigation by Globe reporters uncovers a burgeoning subprime mortgage problem that many, including Prime Minister Stephen Harper, have insisted does not exist in Canada
Greg McArthur and Jacquie McNish
Saturday, March 14, 2009
From the ramshackle, plywood deck on Brad Goodyear's rural Vancouver Island home, most people see piles of trash, a mattress, abandoned appliances and heaps of salmon fishing nets.
Mortgage lenders, however, have looked at the same property and, until recently, seen nothing but cash.
But after two decades of continually borrowing up – plowing through mortgages from Royal Bank, private lenders and credit unions, until settling on two subprime lenders – the 46-year-old fisherman has landed in a foreclosure proceeding.
Peacenik missed this article in Saturday's Globe and Mail. Peacenik has always thought it was strange that Canada seems to have missed the worst of the banking/real estate crisis. Peacenik went for a walk on Sunday and "sold" signs were popping up everywhere. Life seemed great. But remember this article. And don't forget that while Harper is touting the health of the Canadian banking sector, he conveniently forgets to mention that this same sector has already received $75 billion in taxpayer funded bailouts.
The auto industry has long been one of the main engines of the Canadian economy. The auto industry is shrinking. Where are new jobs going to come from? Who is going to buy Canadian resources when the world is in a recession? Are the banks telling Peacenik the truth? Is Stephen Harper telling Peacenik the truth? Peacenik doesn't think so.
