Canadian Housing Bubble

• b
• Finance Minister Jim Flaherty is being pressured to do any or all of the following:  increase minimum down payments, reduce amortization, and tighten lending standards.
• David Dodge says “… that the relation of house prices to Canadian’s income is right at the high end…”, and Stephen Jarislowsky, is ‘convinced’ that there is a housing bubble in Canada.

Central Banks

• b
• The Fed is going to drain $1 trillion from the financial system.
• The European Union is trying to find a way to solve the debt problems in Greece without setting a precedent.
• China tightens for the second time this month.

Taxes

• b
• Leaders from the world’s top economies are close to agreeing on a global bank tax, according to British Prime Minister Gordon Brown.
• The US is looking at increasing cigarette taxes by $1 per package; this could raise more the $9 billion a year for states.

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Angus Watt

Managing Director, Individual Investor Services