Steve Eisman says “Canada is going to have some issues with their housing market.”
The money manager who predicted the collapse of the subprime mortgage crisis plans to short Canadian financials.
Basically, Eisman is betting that Canadian financial stocks are going to lose value because of the housing market:
“When asked in a Bloomberg Television interview in Hong Kong on Monday what his biggest short play would be right now, Eisman’s first answer was “short Canadian financials.” “The United States is in far better shape than it was,” he said. “I would say Europe is better, but not good enough. I think Canada is okay, but I think Canada is going to have some issues with their housing market.” He also recommended shorting Deutsche Bank AG shares and reiterated that he is still short Wells Fargo & Co.”
While Eisman didn’t comment on the growing investment collapse in Canada, his bet on upcoming issues in our housing market is only the latest warning sign about our economic and financial situation.
With debt piling up, the carbon tax and regulations destroying our competitiveness, investment fleeing, and growth slowing down, a crisis in our housing market would be a disaster for our country.