 Guys, what did I say before? What did I say before? The housing debt bubble is going to burst. I just made a video earlier today and I've been saying it for a very long time. We're entering turmoil times, where we have both economic uncertainty. We have inflation and the Fed printing millions of dollars and we have COVID or I should say we have the government locking down our ability to earn. And don't get me started when it comes to housing. Housing issue started way before any of this stuff. It never finished in 2008. People think it corrected, it didn't. We're saying old bullshit happening since 2008, but let's continue with this. It's really important for you to pay attention to this. Okay, so based on present mispayment rates, consumers will accumulate at least $100 billion in housing debt by January 2021. The following model described is that of linked health social economic events. These events are likely to unfold in the next six months and uncontrolled wave of virus infection drives a cascading economic impact. Virus growth uncontrolled goes to economic activity which contracts, which equals unemployment rises. I'll tie in the government doesn't give you the ability to earn because small businesses such as restaurants, gyms, Airbnb, small hotels, they can't do business. So even if you take COVID out of this or COVID has reduced almost like 0.001%, you're still not physically allowed to provide for your family. What I digress, next it goes, personal income fails. Then consumers miss rent mortgage payments. Then rent and mortgage payments, mortuary and fails. Then consumers use credit cards to make the payments. Hopefully you don't. Then small business apartment landlords and homeowners default on their mortgage. That bubble burst. Yes, everything's connected. Our whole economy is connected. We're very fragile as it seemed to leave talks about. We're not anti-fragile. We have such a fragile ecosystem. It's not funny. And people are already over leveraged over debt. Canada's a little bit different when it comes to real estate because it's much more difficult than the United States. But even then, when you look at the debt that people take on real estate, it's obscene. And I'm not saying don't buy real estate. That is not what I'm saying. What I'm saying is people are taking debt that they can't manage. Interest rates go up. They lose a job. Economy slows down. Maybe their buffer margin is maybe 2%, 3% a month. And that's it. If they alter from that buffer margin, they lose everything. This is how people are living on a day-to-day basis. Like it's ridiculous. People aren't in the negative. They're not saving. They're in the negative. And they've been scammed the whole time. Hey, go into debt. This $800,000 house. But it's not gonna return the same thing as your parents did at all. Think about it. So look at this. Unemployment rises. Of course it does. The latest report from the Department of Labor for state unemployment claims and continuing benefits show a high level of unemployment continuing. I made the video the other day. 20 million more people claiming for unemployment benefits. This is just a start. Just wait till we get the cascading effect. I think this flow chart's really good. I'll take out the virus uncontrolled thing, more like governments forcing you to stay in your house. That's ridiculous. But look at these US continuing job claims from February till now. But what's more interesting is the emergency and extended programs are on the rise. And I know whether it's Biden or Trump, they will release another stimulus program. Canada is talking about, they're just releasing more stimulus programs. But they've hydrated from CERB, which is kind of like an EI into new hybrid EI. So people are relying on the government handouts right now to just even live on a month-to-month basis. So money's running out, guys. Unless the government comes in and tries to unfuck their own fuckery, oh, this is screwed. In my mind, we're screwed already. Like, that's it. Like, I don't know. Like I keep on telling people, like don't put yourself in precarious situations that if something, if anything goes out of the ordinary, meaning if you miss a payment, you're screwed. Or if you don't have at least six to eight months of savings. Or if you're relying 100% on a contract, that if that contract dries up, you're screwed. You need to get yourself out of this fragile situation. And it's not gonna be easy. And I'm telling you, I'm not giving you a panacea. What I'm saying is, start figuring things out. It's gonna be hard, but the sooner you do this, the better it is. We continue. Consumers miss rent and home mortgage payments. The Mortgage Bankers Association reports for the second quarter of 2020, rental income losses of $9.1 billion and mortgage payments missed of $16 billion. $16 billion mortgage missed. For the third quarter, rental losses were over $9 billion and $19 billion in missed mortgage payments. For the fourth quarter, we forecast a continuing of $35 billion total for both miss rental income and mortgage payments. The total forecast for both rental income losses and missed mortgage payments by 2021, which is like two, three months away, is almost $100 billion. Insanity. And of course this ties into credit card payments. To small businesses, annual change. Payments to rental managers and agents and all other payments. Look at that. Look at that. Look at that. It's not good, guys. It's not good at all, okay? Like ridiculous. And then I bring this up to you. And this, everything ties in together. So I mentioned restaurants. I mentioned hotels. I mentioned gyms. I mentioned bars. I mentioned clubs. This is part of the travel industry. Well, look at this. Another 90,000 airline jobs set to disappear by year end as national lockdown looms. The daily number of passengers screened at TSA checkpoints in the US from March, 2019 to now November, 2020 remains half. Half from earlier March levels as a second wave of the virus comes in, right? So here it is. Half. Half the people aren't flying anymore. But this is a cascading effect. Like what this means, if people aren't mobile, and they're not allowed to go to restaurants and bars and hotels and clubs, this cascades into the rest of the world because what I said before, there's two economies, okay? Let me bring this up too. There's two economies. There's a stock market and there's a real economy. The real economy is a catch economy. People that work at restaurants, people that work at bars, hotels, et cetera, they make tips and cash on the side. This catch then is you go back into the marketplace, whether that is for travel, whether that is for purchasing something, but they don't have that anymore. Everybody is not working right now. And so this is just gonna start. You think even, let's say magically tomorrow, COVID never happened, the zeitgeist is out there. Governments have already shut down borders. Governments are making it very difficult for people to travel to point B. People aren't gonna travel. They're just afraid of the whole hassle. If you got a quarantine here, you gotta do this. And where am I gonna go? Let's say I wanna go somewhere else in Canada, like Vancouver. What am I gonna do there? I can't go to restaurants. I can't go to outing. I can't go to good hotels properly. The experience is horrible. And so this is gonna cascade to the rest of the economy. Look at these airline tickets. Look at this. That's insane. Absolutely insane. I think you guys really need to, if you guys are watching this, you need to really, really start auditing where you're at. If you have a mortgage and you can't make payments, try to liquidate, man, sell that shit. Cause I think both the United States and Canada included and obviously each city is a little bit different. But I think the housing system is gonna completely, I wanna say collapse down to zero cause that's not what's gonna happen. But it's gonna cool down a lot and it's gonna become much more difficult to sell. I already see now here in Toronto, there's agents offering 10% to sell condos as brokerage fees because it's so difficult and there's such high supply out there. So you need to figure out how you can lessen your debt burden right now. And then you gotta figure out if you're relying on just one stream of income, how can you get other streams of income? And I'm not here to tell you how there's many different things. I made a video about that before, but the reality is we are in a very, very fucked up economic situation coupled with many different variables and it's not just local to us, meaning Canada and the United States, this is a geo geographical issue, geopolitical issue. And for you to protect you and your family, you need to really be honest with yourself, like how can I eliminate as much risk in my life right now? As Warren Buffett says, the first rule of investing is never lose money. The second rule is look to rule one. While your rule in life, his first rule is how do I make sure that I keep my roof over my head and to make sure that there's food on the table? All right guys, leave a comment below this video and I'll talk to you soon. Oh yeah, P.S., make sure to subscribe. Peace out.