CMHC and Rent Controls NOT COVID-19 are putting pressure on small-town Ontario Canada rents – August 1, 2020,

In Canada, we’ve entered into a period in which I call late stage socialism, why I call this period in Canada late-stage socialism is because Canadians are so economically illiterate that they can’t comprehend how their government is screwing them over by bailing out these mortgage holders.

Now, there’s no getting around it, a whole lot of Canadians just defaulted on their rent and mortgage payments, now really think about this for a moment, a lot of the Canadians who have had their mortgage or rental payments deferred could have paid their rents or mortgages, but instead, they stocked up on things like toilet paper.

Now, the Canadian government along with their minions in media for obvious political reasons created a narrative excusing delinquency by basically allowing every Canadian to qualify for CERB and also default on rental and mortgage agreements.

One of the reasons there is so much fraud in CERB was because of the way Trudeau’s Liberals rolled it out. Now mortgage deferrals in Canada, I learned the most by reading it on the CMHC website

What is mortgage payment deferral?

What is mortgage payment deferral?
Mortgage payment deferrals can help you during times of financial hardship — like unemployment or reduced employment due to the Coronavirus (COVID-19) outbreak.

The deferral is an agreement between you and your lender. Typically, the agreement indicates that you and your lender have agreed to pause or suspend your mortgage payments for a certain amount of time. It’s also known as a mortgage payment deferral agreement or mortgage forbearance agreement and it’s a temporary measure.

After the agreement ends, your mortgage payments return to normal and the missed payments — including principal and accumulated interest – repaid.

How mortgage payment deferrals can help you?
A mortgage deferral helps you when you’re struggling to make your payments by allowing you to skip your mortgage payment for a specified amount of time.

COVID-19: Understanding Mortgage Payment Deferral
What you can do about your mortgage payment during the pandemic. | CMHC Website

 

Mortgage Payment Deferral is the perfect example of Late Stage Socialism in Canada

 

Because there are so many Canadians on mortgage deferrals, there is no way banks or the government of Canada can investigate how these mortgage owners spent their money leading up COVID-19. This isn’t or won’t even be a topic of discussion in the future, but it’s a clear sign of late-stage socialism in that the responsible are financing the lives of the financially irresponsible

 

This was about Justin Trudeau buying votes, and it worked, it worked so well that the article below, doesn’t mention anything about why rent prices are going up. Rent prices are going up because the government is financing the rent and mortgage markets, the Trudeau government is spending money like crazy and that free money has provided a cushion for owners of mortgage-related debt as well as inflated asset values.

All of a sudden a whole lot more Canadians have better credit than they otherwise would have had, all of a sudden Canadians can pay bills and buy stuff they otherwise couldn’t have bought, this is what I call late-stage socialism because Canadians in almost every sector of the economy are imagining themselves to be wealthier than they really y are.

If there was no money printing, if let’s say the world was on a gold standard, COVID-19 ould be a deflationary event, I personally I have no problem with owners of property raising their prices, rent controls can’t stop a person from listing a higher price, my problem is that in a market economy, a market economy meaning no or little government intervention into the housing market, right now would be a deflationary rental and mortgage market.

But because Canadians are so accustomed to the government intervening, what’s happened overnight is that the Canadian government has gotten bigger and the private sector is now paying fewer taxes because a lot of private Canadian companies are broke and are on government welfare themselves.

This is a very risky environment for holders of mortgages and entities wanting to rent you an apartment. I don’t blame them for wanting more money from the end consumer, but in a market economy, a lot of these people and entities raising rents would have to lower them, because their customer base has no money, when I was growing up in the 1980s and 1990s you rent out your home after you’ve paid off your mortgage.

Only really sophisticated investors used debt to become landlords, why? Because first of all rent controls are problematic when interest rates were normalized and secondly, the government didn’t bail out housing markets. If a pandemic hit and you made a bad bet, you suffered the consequences, in this modern economy, everybody gets a bailout and this is nothing new, this happens in every non-market-based socialist nation which kills the incentive for people to work hard and smart for money.

Canada has entered into late-stage socialism and I can see it clearly simply by reading some articles. The mainstream media is writing like this is just how things are now, get used to the new normal, but the main point I’m trying to explain about late-stage socialism is that wages aren’t keeping pace with rents and mortgage payments.

When the government rewards bad behavior, the private sector pays for it, I don’t see austerity measures in Canada’s future, what I see is the devaluation of the Loonie and being that we have a developed nation, this equates to a zombie-like economy because last time I checked a lot of unionized government-employed people have wages that keep up with inflation, what this means is that if public sector bills in Canada are paid by printing money, it will be very hard for the private sector to see profitability.

I highly recommend Canadians prepare themselves accordingly!

COVID-19 putting pressure on small-town rents: ‘I can’t afford to live in the city I grew up in’ | globalnews.ca

Interesting times ahead!