The Canadian Fannie Mae

Mises Canada href="http://www.mises.ca/posts/articles/the-canadian-moral-hazard-corporation/">features a very informative piece on Canadian Mortgage and Housing Corporation by Chris Horlacher.

As of 2009 the CMHC guaranteed over $900 billion in mortgages, about 90% of the market…The CMHC has about $9 billion in net assets to cover theirs, with the ratio working out to a staggering 100:1.  To make matters even worse, 74% of the CMHC’s assets are invested in those very same mortgage-backed securities.  If the Canadian housing market ever took a dive the CMHC would be bankrupt in the blink of an eye.

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