Merrill Lynch Economists Has Doomsday Forecast For Canada's Housing Market

Toronto, Ontario (AHN) - Merrill Lynch Canada economists David Wolf and Carolyn Kwan warned Ottawa that the country is in danger of suffering the same fate as the U.S. housing market.

In a report issued Tuesday, the two pointed out Canada is headed for a housing and mortgage crisis because many Canadian households have been financially overextended, worse than their American counterparts.

Wolf and Kwan said the tipping point is almost on hand and Canada's housing and credit industries will go down the drain similar to what happened in the U.S.

Their forecast goes against the prediction of many Canadian economists who say the country's housing and banker sectors are more stable than the U.S. and may only go through a slowdown, not a crash.