Finally The Obvious has been reported: Dirty money is driving up Toronto real estate prices – March 21, 2019,
Obviously, I’ve been writing about this topic for years in very specific easy to understand terminology. This entire problem stems from CMHC, sure it would probably exist without CMHC a crown corporation being the go-to insurance for mortgages, which obviously drives up housing prices the most, because more people and businesses are now able to qualify under the guise of first time homeowners or as people who are simply down on their luck and need a helping hand from the government.
The concept of a company backed by the Government being an insurance company that helps people put less money down on a house so that more Canadian banks can qualify them for a mortgage is ridiculous especially being that Canada supposedly has one of the best banking systems in the world, Canadians are also some of the best people in the world at servicing debt, so if this was really true, why in the hell would the government have to step and and put insurance on mortgages? Remember we’re not talking about building rental units or affordable housing we’re talking about building condos and houses, that are now economically out of reach for most middle-class people.
Now, common sense would tell you that Canadians didn’t need the government to inflate prices in any market, everybody that knows anything about a free market understands very quickly that what the free market does is it brings prices down. As an example, if there were no minimum wages in Ontario, wages would be driven down for certain jobs and up for others, because the free market is based on supply and demand, but you see the problem with a free market system is that larger the free market system is the more the people hold the government responsible for the disasters they create.
What really separates Canada from the United States is entrepreneurship, more Canadians per capita value job security over business ownership, which obviously leads to a large number of Canadians having a low economic IQ.
CMHC is such a problem that current Finance minister Bill Morneau has to give incentives for the housing market, now again, the CMHC is an incentive to purchase housing, so clearly it hasn’t worked. But you see the problem with the CMHC experiment are the number of people already sucked into this scam, they don’t want it to end, they want the rest of us to pay for their stupidity and make no mistake about it, these blood-sucking vampire CMHC debtors will vote for to keep this nonsense scam going.
The problem with Keynesian economics is that when it crashes it comes down hard and because most Canadians are believers in Keynesian economic theory when this crash hits, they’ll have no idea what happened. Unfortunately, economic change is coming to Canada, the warning signs are such now that even the mainstream media is pointing it out. I get it, I understand that many of you feel that this will never end and this is the new normal, but unfortunately for you people, you don’t understand how deficits work! So with that said prepare yourselves accordingly.
Dirty money is driving up Toronto real estate prices, report says – Toronto Star Via MSN
Interesting times ahead.
