In this conversation, Alex McFadyen delves into the troubling practices within the Canadian mortgage market, particularly focusing on the use of inflated property values to back mortgages. He discusses the concept of blanket appraisals, the implications for buyers, and the advantages that developers gain from this system. The conversation highlights systemic risks, the differences between power of sale and foreclosure, and the potential consequences for buyers who find themselves underwater on their mortgages. Ultimately, McFadyen argues that the Canadian housing market is experiencing a managed decline rather than an honest correction, with regulators facilitating a transfer of risk from developers to individual buyers.