Could the City of Toronto be next for developers getting a taxpayer-funded condo bailout? Well, it s possible. The Carney government is facing some backlash after bailing out condo developers in Vancouver. We talk to Dan McTague, President of Canadians for Affordable Energy and former Liberal Member of Parliament, about the possibility of a similar move in Toronto.
00:00:11.520The Carney government is facing some backlash after bailing out condo developers in Vancouver.
00:00:18.180Those developers were stuck with 2,200 empty, overpriced condos.
00:00:23.120The business interests, who also happen to be supporters of Mark Carney, are getting a $3.2 billion bailout courtesy of Canadian taxpayers.
00:00:34.100The Prime Minister claims it's all about affordable housing, but the leader of the Conservative Party, Pierre Polyev, is not buying it.
00:00:44.520all right well they may they took a risk they decided they wanted to build those condos at a
00:00:51.780time that we were in a housing bubble but now they're selling those houses in those homes at
00:00:58.060a time when the housing bubble has burst so the risk did not pay off and they would lose money
00:01:05.420well somebody's going to lose money here because if the house the condo goes from expensive
00:01:12.500to less expensive, who's going to pay the difference? Well, Mark Carney wants you,
00:01:18.780the taxpayer who's struggling with mortgage payments, grocery bills, and high gas prices
00:01:23.640to pay those losses instead of the developers who took the risk in the first place. He wants to
00:01:31.680privatize the profit and socialize the losses. In other words, make you pay the price. This is a
00:01:39.640transfer of wealth by Mark Carney. It is a transfer of wealth from the have-nots to the
00:01:47.020have-yachts whom Mark Carney wants to bail out. A similar bailout in Toronto could be twice as much
00:01:53.860for taxpayers. The other economic news is inflation. It's been up. It was up in May to 3.2%.
00:02:00.900That was due mainly to higher gas prices. Our guest today is Dan McTague, President of
00:02:07.500Canadians for Affordable Energy and former Liberal Member of Parliament, spent 18 years
00:02:12.740on the Hill. Dan, welcome to the show. Good to be here, Mark. Thank you.
00:02:17.040Okay, let's talk a little bit about this bailout of less and whether or not it could happen in
00:02:21.480Toronto. According to one source, there are almost 4,300 newly completed but unsold condo units
00:02:28.440waiting to get confirmation on that number, and that's just in the GTA Hamilton area,
00:02:33.360And that's a record high, more than double the level from just a year earlier.
00:02:38.200We saw what happened in Vancouver with a $3.2 billion bailout of developers left holding the bag for a number of condos that they just couldn't sell because they didn't want to lose money.
00:02:51.840And the prime minister came out and said, oh, we'll help you out.
00:02:56.500Is it possible that we may see the same thing in the GTA?
00:03:00.060I think it's definitely going to happen especially as we know the mainstream media isn't covering this and that's hardly a shocker given that they received bailouts themselves but this is a more serious attempt at trying to paper over a real crisis, a crisis not just in terms of people who speculated but more importantly in a complete collapse in confidence in the very thing that most Canadians have tried to work for.
00:03:26.520obviously prices went to the roof we saw the danger of migration uh excessive inflation
00:03:31.760created by handouts during covid all these things are now coming back to bite us and what the
00:03:36.720federal government's answer is everything uh that uh you know most social actors ask for give it to
00:03:41.980us make it free you know give us free food give us free dental care give us free housing uh you
00:03:47.160know it looks a whole lot like uh what you would find of the five-year plans in soviet russia in
00:03:53.800of a century ago than you would Canada that was once prided itself on affordability,
00:03:59.700worked towards those kind of things, made sure that the cost of everything was in line with what
00:04:04.740people could possibly buy and costs wouldn't go through the roof. But we've created a real
00:04:10.560problem here. And to close the Pandora's box, we're willing to spend billions more to buy and
00:04:15.280bail out condo owners who frankly shouldn't have been in the position of trying to address a
00:04:20.280speculative bubble which is now completely burst with Canadians holding the bag yeah I mean we're
00:04:25.080looking at say 2200 or so condos in Vancouver and I mean there's double that in Toronto so
00:04:36.340I mean it stands to reason and I realize that there are variances here in the housing values
00:04:42.960but if it was 3.2 billion bailout Vancouver then it could very well be double that to bail out the
00:04:49.920GTA. I mean, this is setting quite a precedent here. And unfortunately, it really looks like the
00:04:56.580prime minister is bailing out friends of the Liberal Party, people that he knew. And they
00:05:02.520came to him and said, you know, we don't want to lose money. And I mean, to Pierre Polyev's point,
00:05:07.160yeah, nobody wants to lose money. But these people invested their own capital in order to
00:05:12.240take a risk roll the dice in you know a pretty frothy market they got burned and it's taxpayers0.96
00:05:20.540that are left holding the bag i mean it's absolutely ridiculous it is and it suggests
00:05:27.280that the federal government believes and those who adhere to this kind of stuff believe the
00:05:31.520the ability for the government to bail everyone out is is bottomless automotive sector to uh you
00:05:37.420know to housing now uh and you know media take your pick everyone's got uh everyone's got an
00:05:43.800angle everyone's got their finger in the pie the problem is the pie has disappeared we don't own
00:05:48.400what we have uh we have massive debt which the next generation is going to have to burden be
00:05:53.440burdened with we have inflation going through the roof we've blocked pipelines we've told people not
00:05:57.980to come to this country don't invest in this country if you want to buy things that you
00:06:01.780actually truly need oil gas and manufactured products we've discouraged people from wanting
00:06:07.220to do any business in here and those who are doing business are being told hey if you're part of the
00:06:11.620favorite group you're losing money don't worry we got your back we'll spend more borrowed money
00:06:18.960because we're allowed to with a majority an unearned majority as most of us know0.96
00:06:23.120and foolish Canadians who were elbows up a year ago are now ankles up and now are prepared to0.93
00:06:30.460give the government license to do just about anything it wants forget censorship just ruin0.99
00:06:35.240the economy while you're at it. I mean, it sends a terrible message. I mean, to real estate
00:06:40.580speculators, donate to the Liberal Party of Canada. And if your investment fails, don't worry,
00:06:47.100we'll pick up the tab. I mean, it's bizarre. He says, well, these condo investors in Vancouver
00:06:54.500don't want to lose money. Well, all well and good. Why is that the taxpayers problem? You know,