Canada Emergency Commercial Rent Assistance (CECRA) has been a flop, and it’s the precursor for the Canadian Dollar Debasement – September 26, 2020,

The one great thing about the U.S economy is its housing market. The U.S housing market revolves around State laws. San Fransisco as an example has a housing bubble, primarily because of regulations, the same is true in New York City, but as you move around the U.S you’ll see that population is NOT the main contributing factor to a particular State or particular cities having inflated housing markets.

The influence the Federal Government has on Canadian commercial and residential real estate is enormous, even some small towns in Canada have real estate bubbles. Because of the influence, the federal government has over Canadian real estate, badly run cities like Calgary as an example have some serious commercial real estate problems.

In Canada, if you have a bad mayor, it will show up in your commercial real estate market almost immediately, there’s little wiggle room for error in Canadian commercial real estate which unlike the residential real estate market has more market components.

As an example, there aren’t any rental controls in commercial real estate, if the landlord has to pay more so do the tenants and if there’s a scarce supply of commercial real estate good luck to the small business owner. In Toronto’s commercial real estate market, a lot of commercial property is waiting to become the next condominium project, meaning the owners in certain respects don’t even care if the property is leased out.

The cost of government plus market fundamentals have created a disaster in the commercial real estate market. I write about the disaster that is the Canada Mortgage and Housing Corporation (CMHC) all the time, I don’t think people get it, but they will, eventually.

I honestly don’t think there is anything the Federal Government can do to fix Canada Emergency Commercial Rent Assistance (CECRA) because all of the prices are inflated and they’re inflated because both the Bank of Canada(BoC) and the CMHC are working together to make sure the residential housing market doesn’t crash.

Socialism for mortgages is one of the dumbest things I’ve ever heard of, but it’s here and it’s going to be one of the largest contributors to Canada’s commercial real estate debacles. All roads lead to dollar debasement, which is bad news for the poor and middle class.

Austerity measures for the foreseeable future are off the table and a ‘green new deal’ which is the angle Justin Trudeau, Jagmeet Singh, Elizabeth May, the Bloc Quebecois, and to a certain degree the Conservative Party of Canada are moving us towards all revolve around more regulations for the commercial real estate market.

More regulations on the private sector are deflationary, maybe it will prop up asset prices, but the problem with propping up asset prices is you eventually run into a cash flow problem in the private sector not subsidized by government. Getting people into debt is all about the person or business’s ability to service the debt.

This topic really isn’t worth any more of my time, because if you can’t see the obvious writings on the wall, that’s your problem, not mine!

Small businesses hopeful federal government will retool loan program to cover mounting rental costs |

Interesting times ahead!