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Wednesday, May 03, 2017
Signs of Canada's asset bubble burst worthy of attention
ANBOUND

Under the risk of the property market bubble, Canada's largest non-bank mortgage supplier Home Capital Group is suffering liquidity crisis; a total of $ 591 million continues to flow out from the company's high interest savings accounts. The market worries about whether Canada will experience "subprime mortgage crisis." We believe that after the financial crisis, central banks around the world have generated the global capital surplus to promote the global asset prices. As Canada's market capacity is small with less population and good investment environment, bubbles are then produced. As urbanization can create the dual bubbles of excess capital and high asset price, the possibility of large-scale burst of asset bubbles is worthy of attention

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