In Ottawa, members of the cabinet subcommittee overseeing the Strategic and Operating Review are said to be sifting through more than 600 proposals for savings, with a view to trimming $4 billion from spending over the next three years.

Because yes, it was those same governments who now plead they have no money to spend who couldn't spend it fast enough before all this. From fiscal 2006 through 2010, the Harper government increased program spending by 40 per cent, from $175 billion to $245 billion. Per person spending increased from $5,800 in constant 2010 dollars to $7,200. The McGuinty government's record was nearly as profligate - a 61-per-cent increase in spending, from fiscal 2004 through 2011 - enabled to no small degree by the more than doubling of federal transfers in that time.

While the Canadian situation is far different from the U.S. of 2006, the continued surge in condo constru

"While the Canadian situation is far different from the U.S. of 2006, the continued surge in condo construction and overall home prices to levels that are not consistent with the growth in domestic income is certainly raising questions about its sustainability and the fallout if it were to unwind."

"As well, foreign capital inflow has supported the Toronto and Vancouver housing markets for years. That factor has apparently been on a significant uptrend in Toronto in recent years. The outlook for that flow is uncertain, although arguably, Toronto will remain an attractive safe haven for foreign money. But how stable that money is remains a question."