I don't agree with most of the doom and gloom stuff out there, but this one is bang on. CMHC is essentially a pre-arranged taxpayer-funded bailout for bank mortgages. A true disaster in the making. I don't normally get political on this hub, but

"this same government that in 2006 made it their first order of business to extend CMHC coverage to 40 year amortization, interest only and 95% financed mortgages!"

This was also the same government that wiped out Paul Martin's budget surplus during good economic times and had to go back to deficit financing when the recession hit. CMHC's 600 Billion in housing liabilities exceeds the entire federal debt! When our housing bubble finally bursts, it could get very bad indeed.

On the plus side, anyone with cash will be able to buy some really cheap houses in a few years....