Vast Majority Of Canadians Want Feds To Intervene In Housing Market – Huffington Post -December 16, 2018,
Personally, I see the Huffington Post as an extremely left-leaning news and opinion website and blog, however, I always deemed it important to read their news, to keep updated about how the leftists are trying to socially engineer society. Being that Leftists typically believe that a big Government is an answer to all social problems in society, it’s only natural that they’ll ignore problems they create in order to create a whole new problem. So, in case people in Canada haven’t noticed our current housing market is already extremely regulated financially, not only is our housing market regulated, but we also have a Crown Corporation known as the CMHC that ensures Canadian banksters get taxpayer money in the event there’s a housing a collapse.
Now, prior to CMHC insuring mortgages, housing prices weren’t 1/5 of Canada’s GDP. One of the better Huffington Post articles I’ve read regarding Canada’s housing market problems can be seen by clicking the link below:
The above article written by a Huffington Post contributor is the result of years of Government intervention, the free market didn’t create this disaster, this is all the result of the Government picking winners and losers. If I’m watching a Hockey game and the referees of that Hockey game are blatantly doing everything in their power to make sure that the team they like wins, what this will do is it will attract the wrong kinds of fans, the wrong types of gamblers, the wrong types of investment, which will result in the wrong type of outcome.
If I’m an investor and there’s a mortgage insurance company called CMHC which basically renders Genworth Financial Canada and Canada Guaranty(the private mortgage insurers) almost useless, how long is it before investors start to find loopholes in CMHC? There’s something that Leftist, socialists need to understand if there are no loopholes in a legislation or regulation what you’re creating is a Venezuelan style socialist economy. Loopholes are why businesses and even individuals will allow governments to overtax them.
Loopholes are why Welfare recipients can actually make more money and earn more in benefits than a person who works a 40 hour a week. Loopholes are the only way to make socialism work. If you remove loopholes it’s only a matter of time before either there’s chaos on the streets or a dictator appears. The closer Government gets to Nationalising an entire industry which is basically what Crown Corporations are, the worst things will get.
I’ve written in length about another Crown Corporation known as Canada Post, Now because of the Canada Post monopoly, most private couriers don’t even bother trying to compete with Canada Post, it’s not worth the headache, UPS, FedEx, DHL all three have taken the exact same approach as Genworth Financial Canada, Canada Guaranty which is don’t even bother competing with Canada Post let’s focus on customers with special unique needs and avoid competing with the government monopoly.
What this has resulted in is record high postal prices, it’s actually cheaper for Canadians to send mail in Canada using the United States Postal Service. Why this happened is because there are no competitive forces at play lowering their cost send mail. Canada Post has no competition, The Canada Mortgage and Housing Corporation(CMHC) has no competition and they’re basically ensuring that Canadian banks and financial institutions big and small don’t fail if they’re using their services.
This is all the creation of government, government forces trying to solve a problem, now the worst part of all this is the homes and condos being built, similar to Canada Post who can’t find a way to properly measure what price they should charge their customers, because they have no competition, Developers in Canada don’t know what to build in order to meet the demands of the local populations. There actually has been adequate housing built in Toronto and even Vancouver, the problem is the people don’t want what’s being built, what family do you know want a 1 and/or 2 bedroom condo? But yet these condos are everywhere, they’re everywhere because CMHC doesn’t only invest in residential housing, they also invest in Rental Housing Solutions, consider clicking the link below and actually reading it with an open mind.
Not only does CMHC do this look at what else they do:
Developing and Renovating
Resources and funding for new builds, conversions and renovations. CMHC
Big deal you might say, well if CMHC a Federal Crown Corporation is helping and assisting the private sector, many of whom are already wealthy, imagine what happens when the CMHC goes head to head with Rent Controls which is a provincial Regulation? Recently in Ontario Doug Ford removed to some degree rental controls, now I’m all for the removal of Rental controls, the problem with removing rental controls now is that the CMHC(a Government Mortgage Insurer) is not only financially subsidizing Developers and Landlords they’re also helping to teach Landlords how to make their properties even more profitable.
Crown Corporations are still profit-driven industries and once they sink their claws into an industry, the inflation in that industry is going to rise rapidly and what makes Canada a unique case among the world is that we’re going to get screwed one way or the other. Either price remain high and consumers pay more than they’re supposed too or there’s a crash, which would result in a taxpayer-funded government bailout. This is why I’ve been saying for years that Canada is most likely going to have a very stagnant economy moving forward if these government-created monopolies don’t end.
I point all of this stuff out because according to the Huffington Post article:
Vast Majority Of Canadians Want Feds To Intervene In Housing Market – Huffington Post
The Government should find the solution? Well, in my opinion, the best solution is to get the government out of the housing market. With the exception of environmental concerns, the Federal Government should have no place in the housing market. If CMHC continues to be a thing, it should a provincial thing, Provinces that want CMHC should have one, provinces that don’t see the need for it should allow it in their Provinces at all. I personally would like to see CMHC stripped of its Federal powers, the program clearly hasn’t worked as planned and Canadian Taxpayers shouldn’t be on the hook for a mistake created by the government.
Interesting times ahead