Let it fail.

Government intervention makes it worse. Prices rose across Canada *because* of the government.

They thought prices would fall 30%, and tried to stop it by pumping billions into the market.

The idiots overestimated the pandemic though, and sent prices soaring.
2/ If the government "saves" the market once more, Justin Trudeau's legacy will be ruining the lives of 2 generations.

This isn't a political exaggeration. The setup is similar to the cause of Japan's hikikomori.
3/ Hikkomori are middle class kids become socially withdrawn from society. They live with their parents, and don't rarely leave the home.

Why? Because what's the point. You can't make enough to have a life, or afford a home. That's for rich kids, that have a safety net.
4/ Interestingly, it's rare for poor people. Experts think this has to do with the fact they are required to leave the house, and don't have parental resources to support them if they didn't.

Any way, people think the real estate bubble goes back forever, but it started in 2016.
5/ Something happened in 2016. I wonder what it was... OH RIGHT. They elected a guy that appointed someone who literally referred to himself as a "bay street guy" to be finance minister.

It's a mystery why two generations were looked over in favor of banks growing their books.
6/ Anyway, take it take or leave it.

I don’t really care since my household isn’t cost sensitive.

... But you know, you’re kind of an idiot if you’re impacted by this and keep voting for it.

Don’t listen to the Boomers and Gen X. They’re looking out for themselves.

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More from @StephenPunwasi

23 Feb
Okay, quick lesson so you'll understand the economy better than politicians.

The velocity of money is the rate at which each dollar travels through the economy, captured in GDP.

A high velocity economy is what benefits the most people, and is the gold standard.

<thread> 🧵👇
2/ In a high velocity economy, every dollar you spend ripples through the economy quickly.

Let's say you go to a restaurant, and buy a sandwich. That $10 (it was a pricey sandwich) goes to the shop, who spends it on at the grocery store, who spends it at a wholesaler, etc..
3/ This is a high velocity transaction. Each dollar you spent had an impact throughout your local economy.

At some point (2000), Western economies got tired of increasing GDP by velocity. Instead, they decided they were going to try to grow it by *credit*
Read 5 tweets
19 Feb
A VC once told me to invest in anything that can be used for *legal* money laundering.

Not to make money from the launderers, but because the launderers will hide activity in businesses, boosting the likelihood of legit businesses hopping on.

Heck of an investment thesis.
2/ It turns out the whole gig economy was a great use case.

Renting a room that goes for $100/night in a hotel for $2,000/night on a short-term rental site doesn't set off any red flags, or capital currency controls.

It also isn't subject to laundering regs. 🤣
3/ Also incredible how simple the operations are.

Person A buys a house, and rents it.

Person B gets people to rent from abroad. Don't show up, just pay.

Person A uses the revenue to secure more assets, and expand operations. Brings a new meaning to ghost hotel.
Read 8 tweets
18 Feb
Doug Ford’s a master at playing the opposition and public.

Everyone’s focused on the idiotic things he says, and are now totally ignoring that he just took control of almost all of the land planning in the province.

“Doug’s such an uneducated fool! Let’s miss his biggest move this year, and focus on him apologizing.”

Yeah, someone’s a fool. He’s not as dumb as he looks, he just doesn’t care. Huge difference.

What happened:
- Doug consolidated power for planning revisions

- Doug “expanded” the conservation area.

- the expansion is on the condition a super highway is built.

A highway to nowhere, where you can dispute land use under his appointed roof. Probably nothing.
Read 4 tweets
18 Feb
Boomers: "You can't cancel $50k in student debt. I paid for my degree!"

It also only took you a summer to pay off your degree, and will take students 10+ years now.

This is also what they're doing with housing.
I say this as someone that paid their tuition (multiple times!) by having an after school, and sometimes before school, job.

What's the point of having advanced education, if they're so loaded with debt they can't take risks at new jobs? Student debt is a drag on growth.
I know some Boomer is going to read this and say, "they can do what you did!"

So many points, but I was one of those giftie nerds. I learn in a very short amount of time. Most people can't, and they shouldn't jeopardize a whole degree to reduce debt.
Read 7 tweets
17 Feb
Another one of capitalism's greatest hits.

Surviving the cold is only for the highest bidders.

2/ If this sounds Enron-ish, that's because Texas' whole energy system is based on Enron's playbook.

Enron tried to pass a bill that deregulated energy in Texas in 1991, and it was killed by Kevin Bailey (D). Enron then tried to kill Bailey's career as a warning to others...
3/ They eventually bought the whole state Republican party, and by 1999 under a party led by Dubya, they deregulated retail energy and created a joint venture called New Power Company...

... Enron collapsed before it was created. Tragic, really.
Read 4 tweets
17 Feb
Millennials are the only generation where housing affordability is 35% of a dual income household.

People will have to literally partner up for basic shelter. Most don't realize how problematic that is.

It's regression, sold as progress.
2/ It's going to be a lot worse for Gen Z too if governments still rely on expanding credit for housing.

People aren't going to have the luxury of finding a partner they like. They're going to find partners out of necessity, and can't leave unless they're rich.
3/ Overall this is going to be a long-term drag on social satisfaction.

What happens when you have angry people that realize they're in the same boat as everyone else, but they know their lives all suck?
Read 6 tweets

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