Alexandre Pestov, whose insightful work of deconstructing the Canadian housing bubble has been presented on Zero Hedge on several previous occasions (link), has released his Fall update. In his words: "This paper is written as to address the paraphrasing of “housing market in Canada is not identical to that of the US" as “no housing bubble in Canada”. Instead of dissecting the US housing market crash for answers, this report examines our current housing bubble in Canada against the backdrop of the 1985-1989 housing bubble in Canada. In fact, our specific Canadian situation will most likely be the force behind housing market’s unwinding." As always, this is required reading for our Canadian readers as well as everyone else who trades the CAD, and has an interest in the Canadian economy.
The Elusive Canadian Housing Bubble: Fall 2010 Musings: Now and Then (pdf)