Actually our central bank went to the Fed discount window in the summer of 2007 to bail out our counterparties at risk to ABCP that wasn't rolling over and the only possible cash flow to cover is from the mortgage debt racket.

Every one of our big banks and the biggest pension funds in the country were at risk which was eventually rolled into CMHC MBS in the form of a massive CDO swap. Programs like the IMPP and the Montreal Accord basically offloaded all the risk and shady products to the taxpayers which will never come to light as disclosure and accounting rules do not apply to the CMHC.

As for liar loans not being in Canada, that's incorrect, I'm living proof. In the last 5 years I have never had to verify any income for any housing related project I was working on and as long as I had construction related debt, the leverage fairy kept calling wondering if I wanted more. This misallocation of capital has inflated one sector of the economy in the hope of boosting overall GDP at the risk of creating a massive real estate bubble.