Quote (Hizkuntza @ Apr 15 2020 01:28am)
To change away the conversation from the US... you guys check real estate stuff often? I'm flabbergasted at what I see coming up in rentals in my town (Victoria). Landlords and former AirBnB hosts charging rates as if the economy was still humming along. International tourism has essentially died a temporary death, international students are fucked too and BC Ferries just reported ridership was down 92%. Yet there are still people wanting $80/night or $1800/month for a small 1-bed... condo prices seem largely unchanged, the few sells though are usually below ask.
Reality hasn't sunk in for a lot of people yet. The worst is yet to come, once CERB runs out and the masses from the business that won't reopen can't pay rent/mortgages there will be a massacre. The government will be helpless because they already blew their load with historical bailouts and rock-bottom interest rates. And with energy prices in the shitter I don't think even printing money at the cost of inflation would help because the exchange rate would be murdered and make most things expensive anyways.
What pisses me off the most is a co-worker of mine cancelled their BNB to Nanaimo in that was to take place in May only to to find out it was booked again on those days just two days later. They checked out of curiosity.
So it would appear these homes are still being used to facilitate non-essential travel at inflated prices despite market conditions and the health risks.
Society is right fucked....
What many do not understand about CERB is the fact that it is not initially taxed. It will have to reported as income and the normal deductions that are taken have not been applied. Imagine getting a paycheque with no taxes taken off when it is issued, but all those taxes are going to be owed down the line.
Many do not see the consequences of that either or just want to ignore it.
With the federal programs being offered the qualification process is relaxed to get the money out as soon as possible. The catch is If you do not qualify you have to pay it ALL back.
Imagine how many are going to be completely ruined by this. Wage garnishments, harassing phone call, endless collections mail. Have fun with that. The feds have stated they won't charge interest on moneys owning stemming from these cases but it will still be crippling.
How is this going to be paid back when people are already financially strapped?
I agree with you. Many do not seem to appreciate the severe financial ramifications.
This post was edited by Killingyouall on Apr 15 2020 08:06pm