How Chinese gangs are laundering drug money through Vancouver real estate

One of the best articles regarding Canadian real estate I’ve read in a long time can be found by going here:
https://globalnews.ca/news/4149818/vancouver-cautionary-tale-money-laundering-drugs/
This is something I didn’t even think about, you see this is the problem with socialism, marxism leftism in general. It’s not to say that Socialism and all it’s derivatives can not work, but if you want socialism at the very least it’s required that municipalities have more power than the federal government. If you want a socialist paradise there must be elements of competition as well as free market allowances for it to have any hopes of sustaining itself.

The real estate problem in Canada has to collapse, it’s the only way it will fix itself, there are two many elements contributing to its destruction and you have to understand that it’s the taxpayers funding it, to such a degree that if this laundered money left the system and the economy crashed it’s a very real possibility that the government would not be able to sustain itself.

I’ve heard calls especially in Vancouver for rental prices to go up, so that real estate investors could cover their mortgage costs, well this report shows that the mortgage prices are gig up because of laundered money, so if a legitimate real estate investor purchased a mortgage at an inflated cost and is passing those costs onto consumers, which also means that rental properties nearby paying similar property taxes and offering the same size unit, the Vancouver tax payer is funding all of this mess.

I can’t stress this enough, if the housing market wasn’t insured from Canadian taxpayer via CMHC all this stuff wouldn’t mean much, but what makes Canadian real estate in general a safe bet is that it’s protected by the federal government. Companies give out loans because they know Canadian banks are backed by the federal government, this protects schedule 2 and schedule 3 subprime lenders from a total loss in their investments.

Furthermore it’s a much more rigorous process in Canada to qualify for a mortgage, thus adding that extra layer of protection for fraudsters, because as long as Canadians continue to make the minimum payments for their homes this scheme will continue. I keep tell people the Canadian real estate market can’t be stagnant and can’t go do, if it does it will collapse. Canadians pay their mortgages because they believe they have flexibility to sell for profit. If that idea of selling their million plus dollar homes for a profit disappears it’s game over.

To give you an idea of how this works in the United States when their housing market crashed what the rich did was they stopped making their mortgage payments. Flipping a million dollar home is hard to do, taking a loss for a million dollar home is hard on the banks, so what the banks did was, THEY DID NOTHING! The banks wouldn’t foreclose on the million dollar homes because they were scared they’d spook the market, the banks also didn’t report the millionaires and billionaires who defaulted on their mortgage loans. Now Vancouver’s housing problem is worse now than California’s was then and again our mortgage market is backed by the federal government. I will say this again, the Canadian housing market can’t become stagnant for a prolonged period of time and prices can’t go down. The housing market will collapse!

This article however is eye opening because this means that the reality is that the financial back of this housing boom is rotting and the decay from it can only get worse, there is no correcting this issue, if they correct it depending on how massive it is we’re talking about billions of dollars lost and massive declines in the housing market.