Toronto housing goes full bubble

|By:, SA News Editor

Taking note of yesterday's news of a 33% Y/Y gain in Toronto housing prices, David Rosenberg calls its a "bubble of historic proportions." Among his recommendations is for the Bank of Canada to begin a gradual pace of rate hikes.

"I am concerned," says the country's Finance Minister Bill Morneau, vowing to take a "closer look."

RBC (NYSE:RY) CEO Dave McKay tells shareholders at the annual meeting that he's "increasingly concerned" about both Toronto and Vancouver.

Other interested lenders: Bank of Montreal (NYSE:BMO), CIBC (NYSE:CM), Scotiabank (NYSE:BNS), TD Bank (NYSE:TD).

A shift in monetary policy from the Bank of Canada would surely be of interest to bears on the loonie (NYSEARCA:FXC) with the currency not far from 13-year lows vs. the greenback.