Along with the preceptions of risk and risk factors is the substantial increase in delinquency rates in the sub prime mortgage markets - mortage lending of last resort of many. As interest rates have moved along their sorid path , along with devaluations of  U.S. currency rates via a vis the Yen and the Euro currencies as well as the British Pound Sterling.
Adjustable rates mortgages have had their risk adjustment mechanisms kick in , time and time again. Mortgage rates are on the rise with it currency adjustment a.k.a devaluation. As the experienced and renowned economist and currency trader notes “Its that Dodge character of Canada….Snowbirds…fall time.. summer time. Canadians are among the stupidest people in the world.”. Indeed as the authority pointed out it was well predicted that with a rise of only one point of the Canadian dollars vis a vis the American dollar rate the sky would fall. Indeed 86 % of Canada’s trade is directly with the United States invlving US greenbacks as the currency of record and standard. How is this currency dichotomy possible ?
The Canadian dollar has reached higher and hihger levels re the U.S. dollar currency rate and yet trade keeps expanding and increasing in scope and monetary volume. How is this so ? By the fall or even summer of 2007 it is estimated that a par dollar us via canadian will be the currency trading lievel by rhe respected authority H. M. Assor.
The answer lies in relative currency trading values of the U.S. , Canadian dollar against other major currencies of record - primarily Japanese Yen and the Euro. Relative to these currencies the Canadian dollar has not risen in value but mirrored the U.S. dollar. True trade with the U.S. is a good thing. In relation to other currencies the Canadian dollar has fallen. Hence while the value of the Canadian dollar has increased via the U.S. foreign goods ( Japanese m Chinese , European) have risen in price dramatically. Hence to the U.S. markets Canadian products as well as value added labor is priced at lower prevailing rates and in relative terms is a bargain.
