"Home Cap will be revealed as one of North America's great corporate fraud, lack of disclosure, un-shareholder friendly companies out there," and that Warren Buffett was in for a "loan-sharking deal."

Mr. Cohodes doesn't think the pain is over for the alternative lender and that the recent Buffett deal will just delay Home Capital Group's inevitable downfall. Mr. Cohodes stated, "I think if they run this thing like a legitimate outfit, the company will not make any money ... their loan-loss provisions will go through the roof."

Mr. Cohodes is clearly not a fan of the Oracle of Omaha, and he recently predicted that Buffett would get a "sweetheart deal to do other Canadian investments with a pat on the back from the Canadian government."

The average family makes about $80,000 a year and even if we double that, there is an affordability problem to begin with. And what's going on is that people who buy or participate in the market are going to become debt-servants for the rest of their life. Whoever lends money to anyone fully expects to be paid back. And when this market does tank or collapse, people will lose a whole generation of savings and/or equity and be debt slaves for a long period of time. So it is essentially subprime in my mind and it's fuelled by a money-laundering bubble.

I think the market is going to go down somewhere between 50-80% and it's going to affect everyone but it's going to cripple people who are highly leveraged. When someone says when, let's be real: China has capital controls on. China does not want what's going on in YVR and in Canada happening. They want the money to stay in China. What's going on is illegal and criminals are taking their money from China illegally and putting it into Canadian housing specifically Vancouver. So when's it going to happen? I don't know, all the signs are there. But people who live and work locally deserve better. When you're priced out of the market, it's sort of a blight on business. It's hard to hire people, it's hard to afford to live there. Costs go up and it's just not good. So when, it could happen in a week, in a month, it could happen in a year. But at some point, bubbles burst. And to say you know, it's not a supply and demand thing. It's follow the money, it's a money laundering vehicle and it needs to stop. And again, there's solutions out there to make this happen.