Another Housing Market Bubble About to Burst, Alarms Leading Financial Web Site Profit Confidential

Canadian home prices have increased steadily since the financial crisis hit and Michael Lombardi, lead contributor to popular financial newsletter Profit Confidential, believes that Canada is potentially setting up for a very nasty fall in home prices.

In his recent article, Canadian Housing Market Reminiscent of U.S. Housing Market of 2006, Lombardi outlines the basics of this thesis.

“Canadian banks are responding to the slowing housing market and are trying to reinvigorate home prices and the housing market,” suggest Lombardi.

Lombardi states that, unlike the Federal Reserve’s response in 2007, the Bank of Canada is extremely worried about the housing market in Canada, repeatedly warning that Canadians are getting into too much debt.

“When the housing market finally popped toward the end of 2007 here in the U.S., the average American’s debt-to-income level was 127%,” suggest Lombardi. “In Canada, the average Canadian is setting record levels of debt-to-income among industrialized nations at 151%.”

According to Lombardi, there are more condo buildings going up in Toronto—with over 100 planned—than any other city in the world.

“People are buying into the Canadian housing market believing that home prices ‘can’t go down,’” suggest Lombardi. “This is similar to the feeling in America before U.S. housing prices started to collapse.”

Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market...before it plunged.

Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.

To see the full article and to learn more about Profit Confidential, visit www.profitconfidential.com.

Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit www.profitconfidential.com.

Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.

Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter.

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This release was published on openPR.