After warning about excessive mortgage debt, CMHC hoists the white flag

When Michael Burry saw the impending collapse of subprime mortgages in the US. The industry ignored him and tried to suppress him. Market collapses don’t happen immediately. They take time to unravel, usually much longer than expected, before the domino effect kicks in. Only when the black swan hits, we start looking back. Too late. In this case, the government stimulus to avert an economic collapse may have deferred a downturn in the real estate market. In this case, the stimulus accelerated the demand and prices. If you believe in the efficient market hypothesis, the market will adjust. The question is when and what will be the trigger. When will “the trend no longer be your friend.”