The Keys to the Shadow Banking System: THE COMING COLLAPSE OF CANADIAN REAL ESTATE MARKET...

The Keys to the Shadow Banking System: THE COMING COLLAPSE OF CANADIAN REAL ESTATE MARKET...: WHAT HAPPENED TO THE CANADIAN ECONOMY? THE CANADIAN ECONOMY WAS ABLE TO WITHSTAND THE AMERICAN REAL ESTATE BUBBLE OF 2007 AND GO AFTER ...

THE COMING COLLAPSE OF CANADIAN REAL ESTATE MARKET 2016!

WHAT HAPPENED TO THE CANADIAN ECONOMY? THE CANADIAN ECONOMY WAS ABLE TO WITHSTAND THE AMERICAN REAL ESTATE BUBBLE OF 2007 AND GO AFTER GREAT BARGAINS IN THE USA.

 NOW, THE TABLES ARE IN  REVERSE AND THE AMERICAN INVESTOR CAN GO TO CANADA AND RECEIVE GREAT BARGAINS!   WE ARE LOOKING AT 90% DECLINE IN CANADIAN REAL ESTATE VALUES. THE CANADIAN INVESTORS IN ARIZONA ARE SELLING AT RECORD RATES IN ORDER TO CASH IN ON THE CURRENCY CONVERSION BONUS!

HOW DID THIS COMING COLLAPSE COME ABOUT? THE  CANADIAN FINANCIAL SYSTEM AND  CANADIAN REAL ESTATE BROKERS SET UP A VERTICAL INTEGRATION FOR HARVESTING  BUBBLE PROFITS.

 STEP ONE:  THE MORTGAGE CUSTOMER WAS ALLOWED TO BORROW ON LOW RATES FOR 35 TO 40 YEARS. THIS ALLOWED FOR THE CREATION OF A LOAN COLLATERAL AND EQUITY FLIPPING BUBBLE.

 CANADIAN BORROWERS WERE ABLE TO USE THEIR PENSIONS, LIFE INSURANCE, CREDIT CARDS AND HELOC TO INVEST IN REAL ESTATE. THE OVERHEATING OF VANCOUVER, TORONTO, AND MONTREAL HAS NOW LED TO SUPER INFLATED REAL ESTATE PRICES.

STEP TWO: THE MORTGAGE BROKER WAS ABLE TO PROCESS THESE REAL ESTATE SALES AND USE THE BANKING SYSTEM FOR INSTANT LIQUIDITY. THE RECORD LOW INTEREST RATES CREATE THE INCENTIVE FOR EASY MONEY TO BE SPENT ON LARGE ESTATE IN VANCOUVER. THE AVERAGE HOME PRICES ARE AT $ 1 MILLION IN VANCOUVER. 

STEP THREE: THE RAPID APPRECIATION OF HOMES AS FIXED INCOME COLLATERAL WAS USED BY INVESTMENT BANKS TO BUNDLE THESE INTO CREDIT INSTRUMENTS KNOWN AS CREDIT MARKET. THESE COULD BE BUNDLED  AND SOLD FOR INTERNATIONAL INVESTORS. 

STEVE EISMAN OF NEUBERGER BERMAN GROUP SEES THE CANADIAN HOUSING CRASH PARTY AS A GREAT OPPORTUNITY. THE REALITY IS THAT PARTY IS OVER FOR THE CANADIAN REAL ESTATE FUN BUS AND THE GAME IS NOW A GREAT MONEY MAKER FOR HEDGE FUNDS. IN A WORLD OF 2% GROWTH, THE CANADIAN SHORT IS WORTH A FORTUNE.

STEP FOUR: THE CANADIAN REAL ESTATE MARKET CREATED A SUPPORT SYSTEM THAT NOW IS IN ECONOMIC DANGER.

 THE SUPPORT INDUSTRIES CONSISTS OF REGIONAL BANKS, HOME BUILDERS, TITLE INSURERS, INVESTMENT COMPANIES, CREDIT INSURERS, FURNITURE MAKERS, APPLIANCE AND TOOL MAKERS, CONSTRUCTION AND ENGINEERING COMPANIES,  AND CONSUMER FINANCE COMPANIES. IT TOOK THE AMERICAN ROOM STORE 8 YEARS TO EVENTUALLY FILE FOR BANKRUPTCY IN 2015.

 ALSO, ADD TO YOUR LIST OFFICE AND COMMERICAL REITS, AND RETAIL REITS. ALL OF THESE AREAS HAVE BEEN INTEGRATED INTO A DOWNWARD INVESTMENT. THE LOSSES WILL BE STAGGERING. THE CANADIAN REAL ESTATE MARKET HAS CREATED THE SHOCK TO THE SYSTEM.

STEP FIVE: THE MACRO-ECONOMIC FEATURES WILL FORCE A 8 YEAR DOWNWARD PRESSURE FROM LOW OIL PRICES, FALLING COMMODITY PRICES, AND LOWER VALUE OF THE LONNIE. THE CHINESE ECONOMY WAS RESPONSIBLE FOR 1/3 OF THE WORLD GDP AND THIS IS GONE! THE WORLD GDP IS LESS THAN 2% GROWTH. 

THE FINAL DEFLATIONARY  REALITY FOR CANADA IS THAT IF THERE IS NO QUANTITIVE EASING OR FORCED BANK LIQUIDITY THEN THE ECONOMY WILL COLLAPSE. THERE WILL BE NO GROWTH ONCE THE FINANCIAL FUNDAMENTALS KICK IN AND RESULT IN DEFLATIONARY DELEVERAGING. 

THE ONLY WAY TO SURVIVE IS TO BORROW FROM FUTURE GROWTH BY USING QUANTITIVE EASING.  THERE IS NO OTHER WAY. THE FINANCIAL  GAP HAS TO BE CREATED IN ORDER TO CREATE FINANCIAL LIQUIDITY. THE USA MODEL SHOW MULTIPLE BEAR RALLIES CREATED BY BANK LIQUIDITY. THIS WILL ALLOW INVESTORS TO MAKE MONEY IN THE CANADIAN STOCK MARKET. THIS WILL BAILOUT THE CANADIAN BANKS AND MORTGAGE BROKERS.

 THE CANADIAN ECONOMY IS NOW CREATING PART-TIME JOBS AND LOWER PAYING JOBS. CANADIANS ARE HEADING TO SUBSTANDARD LIVING STANDARDS. THE MANUFACTURING SECTOR IS RAPIDLY FALLING AND BLUE COLLAR JOBS ARE SCARCE. THE MIDDLE CLASS IS FACING THE SAME CRISIS AS IN THE UNITED STATES.

STEP SIX: THE PROBLEM IS THAT THE CANADIAN ECONOMY IS NOW STARTING A  LONG PERIOD OF ASSET DELEVERAGING. THIS FLAT LINING IS THE KEY TO UNDERSTANDING THE FUTURE OF CANADA. CANADA IS A GREAT COUNTRY WITH MANY RESOURCES BUT IS NOW HEADING FOR THE 99 CENT STORE!

THE FED PUTS THE ECONOMY IN REVERSE!

THE FEDERAL RESERVE HAS RAISED THE COST OF MONEY BY .25 WITH A GOAL OF 2% OVER 2 YEARS. THIS IS LIKE PUTTING A CAR IN REVERSE AND HOPING IT WILL GO INTO DRIVE. THE TRANSMISSION CABLE IS BROKEN AND CANNOT BE REPLACED BY A DEFECT PART.

  THIS STRANGE ECONOMIC  PARADOX THAT FEDERAL RESERVE INFLATIONARY GOAL OF  2% IN A DEFLATIONARY ECONOMY. THIS  IS THE START OF A NEGATIVE CYCLE.  THE  FEDERAL RESERVE FINANCIAL CHAIN REACTION IS DESIGNED TO JUMP START A SLOW MOVING TURTLE INFLATION.

WE ARE NOT IN AN INFLATIONARY ECONOMY. WE ARE ABOUT 5 YEARS FROM AN INFLATIONARY ECONOMY. THIS MOVE IS COUNTER-PRODUCTIVE BECAUSE IT DECREASES THE DEMAND FOR MONEY. THE BANKS HAVE NO MAJOR COMMERICAL DEMAND FOR MONEY DUE TO THE FACT THAT THEIR IS NO PRICING POWER AND MORE EMPLOYMENT CUTS ARE THE NEW NORMAL.

THE NEGATIVE CHAIN REACTION WILL HIT THE STOCK MARKET, COMMODITY MARKETS, CURRENCY MARKETS AND INCREASE LOAN DEFAULTS. THE U.S.A. INFRASTRUCTURE IS STILL BEING HELD HOSTAGE BY CONGRESS AND MIDDLE EASTERN MILITARY POLICY HAS COST THE USA ABOUT $ 3 TRILLION DOLLARS. WE ARE NOT IN A NEW ERA:

 WE ARE STILL DELEVERAGING ASSETS! THERE  IS A MIXTURE OF GOOD AND BAD DEFLATION. CHINA IS READY TO EXPLODE DOWNWARD. CHINA CAN ONLY MOVE TO CURRENCY PROTECTIONISM AND INTERNATIONAL TRADE PROTECTIONISM TO PROTECT ITS CONSUMER MARKETS. THIS IS A PROTECTIONIST FINANCIAL CONTAGION.

WE HAVE OVER 1 MILLIONS HOMES IN SURPLUS AND THERE IS NO CONSTRUCTION LABOR AVAILABLE. THE NEW ECONOMIC IMMIGRATION MODEL WILL RESULT IN A COLLAPSE OF UNSKILLED AND SEMI-SKILLED EMPLOYMENT POOLS. THERE IS A MASSIVE SHORTAGE OF UNSKILLED LABOR AND THE MINIMUM WAGE NOW HAS MADE THESE MARKETS HARD TO STAFF. THE AMERICAN UNDERCLASS IS NOW ON WAGE EQUIVALENT ENTITLEMENT BENEFITS.

THE AMERICAN PEOPLE NEED A TAX CUT AND $2,000.00 REBATE FROM THE NEW TAX CODE. THE PROBLEM INHERENT WITH A DEFLATIONARY ECONOMY IS THAT AMERICANS ARE WORRIED ABOUT SAVINGS AND NOT INVESTING.  THE FEDERAL RESERVE DOES NOT KNOW HOW TO PUT MONEY BACK INTO THE HANDS OF THE PEOPLE. THEY CAN ONLY CREATE PRICE STABILIZATION AND SOME TYPE OF DEMAND FOR MONEY. THERE IS NO COMMERICAL DEMAND FOR LARGE LOANS AND CONSUMERS ARE STILL WITHOUT SAVINGS OR HOME EQUITY. THE CONGRESS CANNOT MOVE THE MARKETS BECAUSE THEY HAVE CREATED FINANCIAL GRIDLOCK.