The Canadian economy has been quite resilient lately, and the foundations of it are pretty sound, this thing notwithstanding. However, the death of Benazir Bhutto (and the effect of the resultant turmoil in Pakistan on oil prices), slow U.S. holiday sales, disappointing U.S. durable goods numbers, jobless claims up over 300,000 per week...that's a lot of hits to take on a single Thursday morning.
And when the U.S. economy goes into the tank, the Canadian economy gets wet.
Luckily, most Canadian housing markets have not climbed into bubble territory (in Toronto, for example, the average annual price increase has been about 6 to 8 per cent since 1996, rather than the double digit advances leading up to the crash of 1990), and the whole concept of "Ninja mortgages" (No Income, No Job or Assets) never did get off the ground. But when your Federal finance minister tells you things are going to suck in 2008, they probably are.