Some kind of dirty bird showed up on Canada's thawing pond last week when that country's biggest home loan lender suffered a 60 percent pukage of shareholder equity and had to be bailed out -- not by the Canadian government directly, but by the Ontario Province's Health Care Workers Pension Fund, a neat bit of hocus pocus that amounts to a one-year emergency loan at ten percent interest....

The situation across Western Civilization is as follows: virtually every major financial institution has become a check-kiting operation or a Ponzi scheme, and we've reached the point where they can only pretend to be rescued. Bailout or not, the Toronto-based Home Capital Group is still stuck with shit-loads of non-performing sub-prime mortgage loans -- its specialty -- and Canada's spectacular real estate bubble has hardly begun to pop. The collateral is starting to turn, like dead meat in the May sunshine, and the odium will waft across the border.

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