Poloz Sounds Alarm on Toronto, Vancouver Housing Risks

The transcript discusses the Canadian housing market, focusing on the warnings issued by the Governor of the Bank of Canada about unsustainable price gains in Vancouver and Toronto. The Governor highlights the risks of a dangerous cycle of rapid price increases and larger mortgages, which could lead to a significant portion of the mortgage market being underwater if prices fall. Despite these concerns, the Governor's primary focus remains on controlling inflation, leaving housing risk management to government regulators and private entities. The discussion also touches on the coordinated response from bank leaders and the Finance Minister, emphasizing the need for consumers to be aware of potential market imbalances.

What are the economic fundamentals that the housing price gains are not supported by?

What is the main goal of the governor of the Bank of Canada despite the housing risks?