Question: The global real estate market has now turned into a gambling casino with extreme valuations. Canada and Australia are at the top of the valuations chart. As a Canadian living in Vancouver, I have a working colleague where her husband runs a mortgage broker business and her husband summarized Canadians like drug addicts to real estate. Her husband described Canadians as having an investment mindset of Donald Trump. Many Canadian real estate experts believe that the Canadian real estate market that we have today is too big to fail simply believing the Liberal Government will bail these people out and the Liberal Government under Finance Minister Chrystia Freeland had begun buying up subprime mortgages, so the banks don’t have to be on the hook. The Liberal Government is also known to encourage neoliberal policies in real estate, encouraging Canadians to become landlords through loading up with easy money. Is the Canadian real estate market and the global real estate market too big to fail? And many experts say that the worst we will only have with a real estate market crash is a soft landing as the worst-case scenario. Can the masters comment on this and provide any teachings for this gambling addiction to real estate?
Answer from the Ascended Master Saint Germain through Kim Michaels. This answer was given during the 2023 American webinar.
Well, even though I said in a previous answer that real estate is a relatively safe investment, this is of course only the case when you have a real estate market that is growing based on a traditional growth rate, a sustainable growth rate that is not driven by speculation. In a speculative market it is certainly not a market to invest in if you want to preserve your retirement money. What you see both in real estate, in the stock market, in many financial instruments is that this is all driven by the untamed greed of the top financiers, the people in the top of the power elite. They know very well that they have enough money to create an artificial bubble where prices go up, whether it is stock, real estate, financial instruments, commodities, whatever it may be, that could create a situation where the prices go up artificially and once the, so to speak, middle class of investors see that prices are going up in a certain area, they jump in and put their money there so that they can get part of the profit.
And the top of the power elite, they know this, so they deliberately drive markets into this spiral. And then, when the middle class of investors jump in, prices go even higher and then it has a self-reinforcing effect so that more and more people among this middle class of investors put their money into this area. And even some that are not traditional investors may decide to jump in. Now the fallen beings, or the top of the power elite, they know that this is a pyramid scheme. They know that this is not sustainable. But they do not care because they started buying when prices were lower. And when they evaluate that prices have gone as high as is sustainable, they will sell. And they will therefore make a huge profit, having bought relatively cheap and selling at a much higher price. They also know that when they start selling, prices will start falling. And this will again become a self-reinforcing effect which in many cases leads to a crash. Whether or not there is going to be a crash depends on how the majority of these middle class investors react. Will they take a ‘wait and see’ attitude and say: “Ah, prices are probably going to stabilize at some point”. Or will they panic and say: “I have got to get my money out now while I can still get something for my stocks or my real estate or whatever it is”. If they panic, there will be a crash. If not, there may be somewhat of a soft landing. The reality is of course that the fallen beings have created this situation partly to enrich themselves but also, some of them, just to create chaos in the long run. There is no rational explanation for this other than of course attempting to concentrate money towards the top. What you see in many nations is that the cost of housing, the cost of having a place to live has gone to a level that is unsustainable given people’s salaries. On the one hand you can say: “Well, there is a real estate bubble driven by greed and there could be a soft landing or not a soft landing but in the long run the rise in real estate prices is not sustainable because it will destroy the entire economy”.
If a nation allows this continued growth in real estate prices, it will destroy the economy. Why? Because it is a proven observation that you can see repeated many times in history that if the cost of housing goes beyond a certain percentage of people’s income, varying slightly from country to country, then they will stop spending money on other things which will then cause those businesses to fold, jobs are lost, people cannot afford to pay their mortgage, houses are lost, they have to default on their mortgage and it just spirals until the economy either crashes or the government steps in and does something about it. And you will see right now how China is struggling with this very issue. Unbridled greed has caused this crisis and the communist government simply does not know what to do about it. You will see this repeat all over the world where there will come a downward trend where real estate prices will have to go down to a level that people can afford based on their salaries. I have talked before about the gambling economy and I have said that it simply is not sustainable.
And it would be wise for people who are, we might say, not in the power elite to not buy into these markets. I know very well it is tempting because you can, in many cases, make a quick profit. But the question is: How many people will be pulled into this dream of easy money? That is the dream of the fallen beings. And how many will look at what is sustainable? And if the majority of the people in the country are pulled into this dream, or at least the critical mass of them, then there will be a bubble and there will be a crash because that is the only way people are going to learn. Perhaps they will not learn that way as Americans have not learned from previous mortgage crises, but eventually they will learn. To go back to the question: Is the housing market too big to fail? Of course not, especially not if you are into neoliberalism, then nothing is too big to fail. But of course, if you are not, then you will realize that the government, at some point, a democratic government, has to step in and take measures to ensure affordable housing.
Whether it is building apartment buildings and renting them out, or taking other measures, it is not only the right of a democratic government to do this, it is the obligation, the responsibility of a democratic government to do this. Because a democratic government has to protect the majority of the people, and this real estate investment scheme is really created by the elite to enrich the elite by taking money away from the people. And it is the duty of a democratic government to prevent this, to stop this. This, of course, has not been seen by many governments, but that is why I am saying there are likely to be some crashes, because how else are the governments going to be willing to acknowledge this?
Copyright © 2023 Kim Michaels