Canada's BANKING SYSTEM ABOUT TO CRASH??????? HEADS UP CANUCKS

Last Wednesday The Home Capital Group Inc crashed 66% and the next day another 20%. Home Capital Group is Canada's biggest non-bank mortgage lender. WHY?????

Last week, securities regulators accused the company of misleading investors… When customers got wind of the news, they started frantically pulling money out of Home Capital. They withdrew $472 million last Wednesday alone. They pulled out another $290 million on Thursday.
By Friday, the bank had just $521 million in its high-interest-rate savings accounts. That’s down from $1.4 billion as of last Monday. And there is no sign of this stopping.

After all, Standard & Poor’s just downgraded the company’s credit rating to "junk" status. This means the company is at high risk of defaulting on its loans. That’s the last thing any investor or depositor wants to know. Plus, the company's director just resigned due to a "conflict of interest." These are major red flags. You usually only see this stuff happen right before a company collapses.
As off now Home Capital is in survival mode and just took out a 2 billion dollar line of credit and pays interest of 22% for the first billion and after that 15% on the second billion.

This isnt the only lender to do this.

Equitable Group (EQB.TO) is also bleeding cash…

Equitable Group is another mortgage lender in Toronto.

Between last Wednesday and Friday, customers pulled C$225 million out of the company’s accounts.
This led the company to secure its own $2 billion credit line on Monday. It did this even though management called the outflows "elevated but manageable."

Now I'm not a Banker or anything but i know healthy companies don't take out multibillion dollar LOC because everything is HUNKY DOWRY, They do it cause it is there last option, or else there won't be any liquidity in the system.

ON TOP OF THIS CANADAS Major Cities like Vancouver and Toronto are going thru a never seen before housing bubble.

Look at this Piece OF WORK In Toronto.

That SHACK SOLD FOR $1,050,000

YES YOU READ THAT RIGHT. OVER 1 MIL

That’s 63% more than the property was appraised for in January 2016. As if that weren’t crazy enough, this property sold for C$370,000 above list price after only being on the market for ten days.

A bidding war actually broke out for the tiny house in Toronto’s east side.

Here’s another example.

This house was only on the market for six days before it was scooped up. The buyer paid C$988,018 for it. That’s twice as much as the owner was asking.

Just Look at this HEAP

This is happening all over Toronto...

Last month, the average home in the Greater Toronto Area sold for C$916,567. The average detached home sold for C$1.6 million.

Real estate should be somewhat expensive in Toronto. But home prices in Toronto aren’t somewhat expensive right now. They’re insanely expensive.

• Toronto housing prices have gone parabolic…

They’ve risen 14 months in a row.

Last month, the average price of a home in Toronto surged 33% from a year ago. That’s the biggest jump in one month since February 1989.

Prices are now rising so fast that a lot of people are buying homes without doing a home inspection. In fact, one local inspection company recently reported a 30% drop in home inspections.

This is a serious red flag.

It means the market is so hot that many buyers can’t even wait an extra day or two to complete a home inspection. If they do, someone else could come along and buy the property from underneath them.

The scariest part is that this is happening all across Canada…

Just look at this chart of the Canadian House Price Index from Teranet. This index tracks housing prices in Canada.

You can see that Canadian home prices have skyrocketed. The average home in Canada now sells for 58% more than it did at the peak of the last North American housing boom.

It has NEVER BEEN THIS EXPENSIVE TO BUY A HOUSE IN CANADA.

Canada’s economy clearly isn’t fueling the country’s booming housing market.
Debt is.
In short, people across Canada are borrowing huge sums of money to buy homes they have no business owning.

The following chart drives the point home.
This one compares the level household debt in Canada with the average level of disposable income.
As you can see, the average Canadian is now more indebted than the average American at the peak of the last U.S. housing boom.

This bubble is so big that it Can ever help trigger U.S next financial crisis. U.S investors cannot ignore what is going on with Canada.

To Help protect against financial calamity here are the following actionable suggestions.

• Short Big Canadian Banks like Royal Bank, TD etc

• Get into Cash

• Lighten up on Real Estate especially if it isn't a good cashflow property that can whether devaluations and still provide income, otherwise get rid of it while their is still BUYERS

• Own some physical Gold and Silver. Either buy Bullion From from www.Silvergoldbull.com or if you want to store and use it abroad easily while still have full ownership and an option for delivery, try the GoldMoney service. The app can be found on the app store.

Hope this helps anybody that it may find.

Until Next Time Fellow Steamians

BE PREPARED And Keep the Crypto REVOLUTION BOOMING.