I read a report that Eisner, president of a Toronto mortgage brokerage firm, told the Financial Post that he recently discovered a large number of suspicious employer income certifications on mortgage applications submitted by Greater Toronto Area residents, some of which are the most clever forgeries he has seen in his years in the business. It seems that Toronto’s hot real estate scene has spawned a new industry of counterfeiting.
No one would not believe it if they said 2021 has been a crazy year so far. In several countries, including Canada, the CCP virus outbreak is actually worse than last spring. Pharmaceutical companies have accelerated the development of a vaccine only to run into an even more dangerous variant of the virus, and it is unknown if the vaccine will beat the virus. The economies of many countries are locked up again and again, people have been on government assistance for more than a year, and countries have been effectively bankrupt for a long time. Bizarrely, the economies are moribund, businesses are closing in massive bankruptcy, and the stock market and real estate are on fire. This is true in both the United States and Canada. Houses in some areas of Toronto have actually gone up 20% in a month!
The 2008 financial tsunami was triggered by subprime mortgages in the U.S., when the stock market was in tatters, people’s pensions were wiped out, and 8 million people in the U.S. lost their homes and had to wander around, living in tents and cars. The current economic crisis triggered by the Chinese Communist virus pandemic is several times worse than the subprime mortgage crisis, but the stock market is at record highs, housing prices are skyrocketing, and people are grabbing houses like crazy, even resorting to fake employer letters to get bank loans. What’s going on?
There is a Western proverb: the devil is in the details. And now the anomaly is that the devil is in the government. The government is the driver of all these anomalies. Western governments are inherently socialist, full of welfare, living on a crumbling diet, and in debt. During the plague, the economy was blocked and people were given handouts, which would have put the government at risk, but, this time, governments were much shrewder than in 2008, and they printed money without caps. The economy is shut down, not enough money? It does not matter, there are money printing machines, how much to have as much. So now the Canadian government can boldly come up with a budget deficit that is 40 times higher than in the past.
These excess bills printed, circulated to the market, will greatly dilute the original value of your savings, naturally, there will be inflation. Now many of the raw materials used to build houses have gone up in price, which is an ominous sign. Of course the people are not stupid and know what the consequences of the government spreading money around are. In order to keep the value of money, there are only two ways, buy stocks or buy a house. But after all, stocks are a relatively risky thing, minutes can fall from the clouds to the ground, most people go to play, there is only waiting to cut leeks. But the house is different, after buying, self-occupied or rented or, always a real thing there, so people are crazy to grab the house; so, it gave birth to a fake employer certification letter this “new industry”.
If you can really afford to buy a house, naturally the house is a good tool to fight inflation; but if you can not afford to buy a house, but also to create a fake employer letter to cheat the bank loan, it will push people to the abyss. This kind of speculation, is full of hope that prices will go all the way up, when the loan can not afford to sell the house. But this trick was already played by millions of people in 2008, and in the end the financial tsunami turned them into real “vagrants”, which became the material for Chinese-American director Zhao Ting’s “Land of the Unwanted” more than 10 years later, which won her an Oscar. Repeating history, would the ending be different?
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