Mortgage News

In the midst of the huge Fannie Mae and Freddie Mac bailout story here in the U.S., it is easy to forget that other countries have mortgage markets that are similarly tied to the vagueries of fiat money systems, but it should not surprise us that they may be facing their own financial crises very soon.

That message was restated in an article in The Province in which Export Development Canada's chief economist, Peter Hall is reported to have said, "Canada's turn may come soon." The article reports Hall saying that housing starts were down 56 per cent year-over-year during May in the United Kingdom, 18 per cent during the first quarter of the year in Spain and 17 per cent year-over-year in May in France.

High-risk mortgage offerings and subsidization is not just a U.S. phenomenon. Most countries offer their own version of it. Add in the fact that the dollar has long played a role as the world's currency, and it seems clear that the financial crisis is only just beginning.