BTW, I don't think that the insurance by CMHC will make any difference. We are already taxed to the max, and adding the equivalent of the entire foreign debt to prop the loans by CMHC insurance will surely lead to extreme protests and social unrest.
Bottom line is: Either banks get saved saved and we get total anarchy from the young generation, or banks fail and boomer assets collapse.
Chose you poison, dear Canucks.