Canada has a housing bubble. It's going to be interesting to see how this plays out, because even though Canada is small compared to the U.S. it isn't like one of our states or a Spain or Ireland. I predict that when the bubble starts to pop the Canadian government will make a serious effort to devalue their currency to boost exports and make up for the decline in construction spending. One of Canada's chief exports is oil and if expanded production lowers world oil prices, so be it.
I'll end up being wrong about this.
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