Post by
dart321 on Mar 14, 2023 9:28pm
Moody
just downgraded the U.S. banking system with six additional down grades to financial institutions and said more to follow. This has shut down high risk money raises. A week or so ago they put out a watch on the Canadian banks due to the upcomming remortgate season. CMHC has already noted that 38% of upcomming remortgages will see a failure rate due to nolonger being able to qualitfy at the higher interest rates and this rate is expected to rise to just over 46% of all their mortgages. If you want to understand what is likely to happen you have to look back to the early 1980's Alberta. When this happened there housing prices dropped over 50% from the frothy peak and took over 10 years to start the upward trend again. This time it's not just one province it's seven provinces that saw hyper specutated house prices. If it follow what Alberta did it will take 10 years before housing price state their long jorney up to the next bubble. What does this have to do with these type of stocks, simple nobody has any money for very high risk investments for years to come. The next time everyone is in a feel good state is when these high risk stock will come back into play again.