Proof comes when the speculative tide recedes.


Regarding retirement advice, middle-class Canadian families rely more on real estate agents than licensed financial consultants. This is likely because homes make up the bulk of net worth for these families. However, it’s important to note that realtors and mortgage brokers, like many financial consultants, are licensed salespeople who earn transaction fees. They do not have a fiduciary duty to prioritize the best interests of their customers over their profits.

In recent years, prices and transactions have been fueled by borrowed money, speculation, and money laundering. This has resulted in a significant cash flow for the financial sector. As this cycle inevitably ends, the question will be how many realtors, mortgage brokers, and financial experts used this boom period to pay off their debts and build up cash rather than the opposite. The answer is likely to be few.

As the bubble tide recedes, the truth will be revealed once more. Cash flows will decrease, foreclosures and defaults will rise, and repo men will take away expensive vehicles and possessions. Lawsuits, investigations, and charges for illegal activities are also likely to follow. It’s a familiar story that plays out with each cycle.

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