Today, I was reading about a river that vanished overnight. Costa Rican earthquake. Not the first time this kind of weird stuff has happened, either.
Then, something as weird occurred to me.
I live in a City where the average house is 14 times the average wage *depending on whom you ask, or, gulp, believe - and there are virtually no big industries here. Yes, there are Mining Company headquarters because of the Casino in Junior Stocks. Yes we ship stuff, and we have tourists on the Cruise ships (*because of the stupid 2 flag law in the States - don't start me on that).
Yet people cruise this burg like Rockefeller. The Jags and Porsches. How do people afford iron like that?
Here's a dirty secret - most of them can't.
The HELOC and LOC has killed a lot of home flippers and ne'er do wells, here in Vancouver, just like it has happened in the States. They just don't realize it yet.
Borrow big on record low rates. Bid up junk High rise stuff and flip it - don 't work - get a shell company, you will make a fortune. Sure.
Chickens are coming home to roost.
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