In a desperate attempt to get re-elected at any cost, the BC premier has sent a lump of coal Christmas gift to British Columbians.
First she applies a 15% property transfer tax surcharge to foreign buyers to quell the rampant real estate escalation.
Then her donor real estate friends “suffer” under less than maniacally increasing profits. SadTrombone.com.
So she decides to stimulate demand again by offering interest-free down payment loans to first time buyers.
The 2008 global economic crash came from this post-9/11 kind of thing: offering mortgages below the prime rate to stimulate demand, offering mortgages to people with no jobs or insufficient income.
As you can see below, Bank of Canada economists warn against huge mortgages and growing housing debt. Yet the premier, to suck up to the real estate sector and people eager to buy real estate, is putting us all at risk.
For the love of all that is good and holy, even Stephen Harper backtracked on his zero-down, 40-year mortgages after the 2008 crash. Harper even! But in BC, Christy Clark has set the table for this vulnerability for all of us.
It’s simple economics. These tweaks don’t fix an affordable housing crisis. Capitalism has created the housing crisis. Tweaks won’t solve it. This one in particular will create a new class of precarity: those who are over-extended on their first real estate purchase.
Rewind to 2008 to see how this ends. If you’d like to see what kind of economic rapists created the 2008 crash, watch Margin Call over the holiday season to see who’s really running our politicians.
— Peter Kelly 🇨🇦 (@PeterKellyBC) December 15, 2016