Successful Home Builders Are Essential To Nova Scotia’s Growth – Bill Black
When top tier investment bank Lehman Brothers collapsed in 2008, it was unable to fulfill thousands of securities trades. The other big banks stopped accepting transactions from each other. The whole system froze up.
The root of the problem was an overheated housing market fueled by an epidemic of irresponsible mortgage loans. That drove house prices well beyond their replacement costs. When the inevitable crash occurred, homes in the tens of thousands became worth less than their outstanding loans and were abandoned.
Today we have a very different kind of housing crisis. Prices rose sharply in most parts of Canada. We have seen unprecedented increases in Nova Scotia, especially in Halifax.
This is not driven by irresponsible lending. It is driven by three other factors. …[Read More]