Carney hands out BILLIONS in bailouts to condo developers

Could the City of Toronto be next for developers getting a taxpayer -funded condo bailout?Well, it's possible.The Kearney government is facing some backlash after bailing out condo developers in Vancouver.Those developers were stuck with 2 ,200 empty, overpriced condos.The business interests, who also happen to be supporters of Mark Kearney, are getting a $3 .2 billion bailout courtesy of Canadian taxpayers.The Prime Minister claims it's all about affordable housing, but the leader of the Conservative Party, Peter Polyev, is not buying it.

Developers do not want to lose money.

All right.Well, they took a risk.They decided they wanted to build those condos at a time that we were in a housing bubble, but now they're selling those houses, those homes at a time when the housing bubble has burst.So the risk did not pay off and they would lose money.Well, Somebody's going to lose money here because if the condo goes from expensive to less expensive, who's going to pay the difference?Well, Mark Carney wants you, the taxpayer, who's struggling with mortgage payments, grocery bills, and high gas prices, to pay those losses instead of the developers who took the risk in the first place.

He wants to privatize the profit and socialize the losses.In other words, make you pay the price.This is a transfer of wealth by Mark Carney.It is a transfer of wealth from the have -nots to the have -yots whom Mark Carney wants to bail out.

A similar bailout in Toronto could be twice as much for taxpayers.The other economic news is inflation.It's been up.It was up in May to $3 billion.That was due mainly to higher gas prices.Our guest today is Dan McTigge, President of Canadians for Affordable Energy and former Liberal Member of Parliament.

About 18 years on the Hill.Dan, welcome to the show.Good to be here, Mark.Thank you.Okay, let's talk a little bit about this bailout out west and whether or not it could happen in Toronto.According to one source, there are almost 4 ,300 newly completed but unsold condo units waiting to get confirmation on that number.

And that's just in the GTA Hamilton area.And that's a record high, more than double the level from just a year earlier.We saw what happened in Vancouver with a $3 .2 billion bailout of developers left holding the bag for a number of condos that they just couldn't sell because they didn't want to lose money.Prime Minister came out and said, we'll help you out.Picked up the tab.Is it possible that we may see the same thing in the GTA?

I think it's definitely going to happen, especially as we know the mainstream media isn't covering this.And that's hardly a shocker given that they receive bailouts themselves.But this is a more serious attempt at trying to paper over a real crisis, a crisis not just in terms of people who speculated, but more importantly, in a complete collapse and confidence in the very thing that most Canadians have tried to work for.Obviously, prices went to the roof.We saw the danger of migration, excessive inflation created by handouts during COVID.All these things are now coming back to bite us.

And what the federal government's answer is to everything that most social activists ask for, give it to us, make it free.Give us free food, give us free dental care, give us free housing.It looks a whole lot like what you would find the five -year plans in Soviet Russia of a century ago.than you would a Canada that was once to pride itself on affordability, work towards those kind of things, made sure that the cost of everything was in line with what people could possibly buy and costs wouldn't go through the roof.But we've created a real problem here.And to close Pandora's box, we're willing to spend billions more to buy and bail out condo owners who frankly shouldn't have been in the position of trying to address a speculative bubble, which is now completely burst with Canadians holding the bag.

Yeah, I mean, we're looking at, say, 2200 or so condos in Vancouver, and I mean, there's double that in Toronto.So, I mean, it stands to reason, and I realize that there are variances here in the housing values, but if it was 3 .2 billion bailout Vancouver, then it could very well be double that to bail out the GTA.I mean, this is setting quite a precedent here.And unfortunately, it really looks like the prime minister is bailing out friends of the Liberal Party, people that he knew.And they came to him and said, you know, we don't want to lose money.And I mean, to Pierre Polyeff's point, yeah, nobody wants to lose money.

But these people invested their own capital in order to take a risk, roll the dice in, you know, a pretty frothy market.They got burned, and it's taxpayers that are left holding the bag.I mean, it's absolutely ridiculous.

It is, and it suggests that the federal government believes, and those who adhere to this kind of stuff believe, the ability for the government to bail everyone out is bottomless.Automotive sector to housing now, and media, take your pick.Everyone's got an angle.Everyone's got their finger in the pie.The problem is the pie has disappeared.We don't own what we have.

We have massive debt, which the next generation is going to have to be burdened with.We have inflation going through the roof.We've blocked pipelines.We've told people not to come to this country.Don't invest in this country if you want to buy things that you actually truly need, oil, gas and manufactured products.We've discouraged people from wanting to do any business in here.

And those who are doing business are being told, hey, if you're part of the favorite group, you're losing money.Don't worry.We got your back.We'll spend more.borrowed money because we're allowed to with a majority, an unearned majority as most of us know.And foolish Canadians who were elbows up a year ago are now ankles up and now are prepared to give the government license to do just about anything it wants.

Forget censorship, just ruin the economy while you're at it.

I mean, it sends a terrible message.I mean, to real estate speculators, donate to the Liberal Party of Canada.And if your investment fails, don't worry, we'll pick up the tab.I mean, it's, it's bizarre.He says, well, these condo investors in Vancouver don't want to lose money.Well, all well and good.

Why the taxpayers problem, you know, why should taxpayers lose money?You know, they're not the ones who invested here.They're not the ones who rolled it, rolled the dice on an investment that didn't work out.And yet we're the ones having to pick up the tab for their lousy investment.It's absolutely ridiculous again.But, uh, I mean, he's coming out and saying, well, this is really about affordable housing.

We can take those 2200 units and, you know, for people who want.

Why don't they do it?Why Mark?Why doesn't the, why don't the condo owners, those who built this, why don't they turn them over to rentals?Why does the federal government have to bail them out?No, there's something wrong here.And there's something very shady with what's going on.

If those condos are not going to go away,then convert them.As I'm saying, in Milton right now, there are three major apartments.One they sold, the rest they couldn't.So they converted them.They made them and transitioned them over to rental units.

That's the way you should go.Why does the federal government have to come in and look after people who made some really dumb decisions knowing how you know, the volatility of this market, assuming that the prices would go up forever.You know, we've never done this in the past.We've always created incentives for people to want to buy, for people to want to build, but we've never actually gone as far as outright ownership.That's something even CMHC in its wildest, most proletarian Marxist views could ever have imagined.I know I worked for the housing minister back, two of them actually, one in 1981, 82, 83, Paul Cosgrove, when we had 21 % interest rates, and Alton Curling later on in 87, 88.

So, you know, I know a little bit about housing, about subdivisions, and I can tell you, this sets an alarming precedent that I think should wake everybody up.If you're not doing well right now, get the federal government to bail you out.But that can only go so far.There's only so much mooching the country can afford.And right now, we're in a recession.Right now, we have a massive debt.

Right now, we have a major unemployment problem.Right now, we have people leaving the country.I'm not sure how worse it can get.before one has to finally throw in the towel and say, all right, 40 % of you out there think nothing's wrong because you likely have government jobs and everything's just fine and dandy.And it doesn't matter, your country is going to be taken over by authoritarianism, Chinese style, if not directly with the kind of imports that they're bringing in.It's quite another thing to say you can afford to do these things.

And right now, I think we're very close.And I think we're going to see this this year to financial insolvency as a country.And I think that's something that that's an unearned, you know, label.But it's one that we have certainly welcomed.And for Canadians who believe the government can do everything.and the government is everything and can buy everything and do everything, good luck with that, because there's the Pied Piper's going to come and they're going to charge a sentence.

So any matter of time before bond rating agencies step in and say, this is not, this is not, this is not solvable.This is not viable.And these kinds of things are extraordinary steps by government that I think are a step with financial and fiscal reality and the reality of the hardship.that they've inflicted on Canadians.

Yeah, I mean, if Carney really wanted housing prices to fall, to become more affordable, he would let the market correct and let real estate find a bottom.Instead, he's bailing out the developers and the lenders.So what he's doing is essentially trying to reinflate the bubble, the real estate bubble, because he knows that so many of his voters, the elbows up crowd, own their own home.They don't want to lose value.They don't want to wake up one day and find that their net worth has fallen by, you know, another 25, 30, 40 percent because, of course, then they won't support him and they won't continue to back whatever he's doing.And so it seems to me that this is an attempt really to try and keep those housing values at this inflated level, which runs counter to the idea that they want affordable housing.

But there's just no other explanation for this.What do you think?

No, and I just want to know how far one's prepared to go in bailing everybody out.And apparently the ability for governments to do this is simply snap a finger and it can happen.But I'm not sure that many people are going to be able to understand the full implications of the only thing getting done in the country is one where there's government support and government money being spent.If the only thing that's incentivized is anything of significance to be developed in Canada,is a massive amount of taxpayer money.Well, it's a little bit like the next door neighbor's dog having to come to play with the lonely child and the mother has to tie a pork chopper on his neck to make it popular.

The reality is that Canada is in a very, very serious situation.By the way, Mark, I looked at a number of numbers here.pennies to buy a U .S.dollar, 42 pennies to buy a U .S.

dollar.The situation is going from bad to worse and no doubt decisions like this, which pretend it's still 2015, everything's just fine, belie the fact that Canada is in an economic crunch and I would hope that people understand to make such an irresponsible undertaking of bailing out developers who out of known better that can be easily transferred to the private sector anyways through rentals is about to wreak major havoc on one of the last areas where people could actually say it was worth keeping.Your housing is going to be worth nothing.And as a result, all the debt banks and others have put in, maybe Brookfield has an angle here.Maybe Brookfield owns some of those condos.Who knows?

I'm being cynical.But given the massive litany, serial conflicts that Mark Carney finds himself with and the languages used to keep him away from it, nothing surprises me anymore.What surprises me is the extent to which the major networks who are reliable in terms of providing up -to -date information completely ignored this.And I don't think it's by omission.It's very much a deliberate, because at the end of the day, they too are recipients of grift.

Yeah, well, let's see what Doug Ford does, Premier of Ontario, because in the BC case, you had negotiations between the feds and the David Eby government in order to facilitate that bailout.And well, let's see if Doug Ford says, yeah, me too, you know.I hope not.But you know,it's quite possible.

We'll have to see.Well, it wasn't Pierre Trudeau who said he can't turn around and be the last caterer, you know, catering to the wishes of every province and every problem that's out there.I mean, the country is nearing bankruptcy and we can't continue this.And the fact is, Many of these decisions that we find ourselves in today were the result of very poor decisions, government policies pursued by Canadians and their governments over the past decade.And so net zero, massive immigration, DEI, all of these things are now coming back to haunt us.And I think that's one of the main reasons why so many people are now choosing, unfortunately, to leave the country.

With the minutes we've got left, I do want to ask you about the inflation increase.Now we've seen it go up again.It went up 0 .4 % to 3 .2%.So Canadians are feeling the pinch and whatever measures the government is doing to try and alleviate things and make things more affordable, they're just not buying, they're not playing out, you know, unless you're talking about the odd grocery rebate here.It's just, it's just not working.Gas prices continue to take a bite out of consumers' pockets.

Dan, what do you make of this?

Well, if the Canadian dollar behaved the way it did in the past, when we didn't tell people to scram when it came to investing in our oil and gas sectors, we've done for 10 years, and you know you voted for it in many of these cities where I live in Canada and whatnot across the country.The Canadian dollar is as strong as the U .S.greenback, and you'd be saving $0 .38 a litre.You'd be paying less today had we had a petrol loonie than you were when the war started.My point is simply, There's a cost to being an Albozo.

You brought this upon yourselves, and I can get as upset as I want, but the reality is I saw you.I knocked on your door.I didn't vote Liberal in the last election, and I challenged many people in Milton,and Burlington, various rights across the country.I served that party for 18 years, part of it as a privy councillor.I didn't vote for them.

Why the hell were you?And there they were, elbows up.Oh, it's Donald Trump.This is not Donald Trump.This is you.This is about people in this country who ignorantly follow the latest recipe.

And as a result, we're now in a situation where we have an inflationary problem, the likes of which Canada, having a lot of energy, could have avoided, could have been a solution to the world, could have created jobs in the world, could have financed all of our social programs, your hospital, your healthcare, et cetera.But no, we chose the narrow view of the world.Let's continue down that road.Let's have EV mandates.Let's have climate bedwetting.You've done this to yourself.

Do not blame anybody else when you see those numbers coming up, shocking as they are, because you followed the Pied Pipers.Those Pied Pipers have led you right over a financial and fiscal cliff.

Dan, thank you so much for coming on the show.We appreciate it as always.Good to be here.Thanks, Mark.Canadians for Affordable Energy.That's the name of the organization that Dan heads.

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