We have discussed in past reports the ongoing strength in the Canadian housing markets being largely attributed to excess liquidity and credit creation that was manufactured out of Ottawa. Commercial bank credit creation is running hot, thanks to Federal Government Guaranteed loans that have simultaneously been supported by the Bank of Canada’s Quantitative Easing Program. If this all sounds confusing, let me simplify. Essentially, banks are being asked to create new loans, with the full support of the government and the central bank. This has spurred new money creation, with the money supply in Canada growing by 19% year-overyear as of February. And so, it should hardly come as a surprise that national home prices, as measured by the Canadian Real Estate Associations home price index, is now up 20%. It appears policy makers might have overstimulated and they are now trying to reign in some of that generous support. In April we saw policy response from OSFI (the banking regulator),