“Severe tightening of mortgage rules risks downward spiral

Analysts talk about “pro-cyclical lending” — a tendency of lenders to make credit more available during good times (which causes economic peaks to be even higher than they might be) and to make credit less available during periods of weakness (which makes downturns more severe than they would otherwise be).”

 

Click link to read article in its entirety:

http://opinion.financialpost.com/2012/11/19/mortgage-regulation-terms-are-pro-cyclical/

 

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