Bias

Normally people are smart. Except when they’re not. When facts are bent by beliefs, logic turns into bias. And what a mess that can yield.

Recency bias, for example. It’s what really screws up investing as well as real estate. This is the conviction that what just happened (recenty) will determine what’s going to happen. For example, during a day or week when stock markets drop (that happened Monday) people think this is the new normal and they’ll plunge going forward. They get scared. They turtle.

But logic tells us at least 70% of the time markets go up because the economy grows. So periods of decline are actually buying opportunities and we should take advantage. But recency bias holds us back. It suggests markets will go to zero.

Same with real estate. W-a-y back in the spring of ’17 house prices were catapulting forward 30% year/year in the LM and the GTA. Folks looked at that, concluded they’d continue to escalate and jumped in for fear of missing out (FOMO). We know how that ended. Conversely today the Vancouver market’s in terrible shape with scant deals and falling prices. People now think this will go on indefinitely, so they fear buying – even when the same house costs tens or hundreds of thousands less than twenty months ago. Recency bias. It cuts both ways.

Then there’s the other one. Confirmation bias. Just as powerful, just as destructive. This is when people notice, embrace and believe information that confirms beliefs they already held. It can lead to racism, ageism or sexism. You might think refugees are dangerous, for example, so any news about a non-resident committing a crime confirms this belief. That could change the way you act or vote, even though logic tells you most in this group are peaceful.

We’ve just had a great example.

It seems a lot of people on the West Coast think offshore buyers from China have flooded in to buy properties, escalating prices and sending real estate beyond reach of the locals. They further believe a ton of this money is tainted, dirty, and that property deals are used to launder it. They blame Chinese gangs and criminals, and recently elected a bunch of people who work hard to confirm this bias.

In the last few days the NDP government told citizens that $7.4 billion in such funds were funneled through BC last year, with over $5 billion going into real estate, which raised prices by 5% overall and four times that in Vancouver. “Thousands of properties,” it said, may have been involved, and “China figures prominently” in this activity.

The information confirmed public suspicions, fueled by the media (reporters lapped it up) and people seeking election, plus it supported the government’s agenda. Human nature is consistent. Being a victim means we have a legitimate excuse for any shortcomings. It also allows the government to focus on external forces – us versus them – which is easier than, say, fixing the reason BC has a 3-year waiting list for a family doctor.

The reason this is worth mentioning is the government reports may be suspect. Or sloppy. Or perhaps just massively political and manipulative. Maybe this is a case of leaders telling people what they wish to hear.

A Bloomberg report days ago claims this:

  • There is little or no hard evidence of actual money laundering. If it did occur, the amounts involved are likely much smaller.
  • By far the largest source of any dirty money is the US, not China. In fact, it is six times larger.
  • The methodology of the government reports is suspect. Based on the ‘gravity method’ they guesstimated the amount of dirty money in the entire world, then extrapolated how much should be allocated to BC and locally, making assumptions about what criminals would do. This is not empirical.
  • The study said the amount of money ending up in residential real estate was between $800 million and $5 billion. The government publicized only the highest possible estimate.
  • A government news release claiming Van prices had been increased “upwards of 20%” because of dirty money apparently fabricated that number.
  • In looking at property records, over two thousand transactions were classified as “high risk” in terms of money laundering simply because they had mailing addresses in China or Hong Kong. Talk about confirmation bias.

Are these things correct? You (or I) have no idea where truth lies. But neither may the government. In the absence of facts and statistical verification, it seems allegations and bold accusations leveled at one ethnic group are brash. That the report was accepted at face value, embraced by the media, and now forms the basis of a costly public inquiry, speaks to the depth of bias within the public. Most people want to believe the market is rigged. That would explain a lot.

This won’t be a popular post. I get that. But blaming the tail for the dog fixes nothing. It still bites.

205 comments ↓

#1 jess on 05.16.19 at 3:49 pm

assigment flippers

https://www.theglobeandmail.com/news/investigations/the-real-estate-technique-fuelling-vancouvers-housing-market/article28634868/

Assignments are completely legitimate real estate vehicles. – Garth

#2 Dups on 05.16.19 at 4:00 pm

Face value punishment is like The Rolling Stop ticket = Blowing a stop sign completely. Gov likes these type of penalties. The law to them is blindly black and white!

#3 Marf148 on 05.16.19 at 4:01 pm

I see a lot of deleted comments coming. And a lot of hilarious ones.

#4 Mouldy Millenial on 05.16.19 at 4:02 pm

Hey Garth, what’s your solution then? The NDP is leagues ahead of the Liberal party when it comes to transparency and accountability within the real-estate industry. The purpose of the public inquiry will be to gather data and evidence. Surely this is something that you can get behind . . .

What a massive waste of money to tell you what might have happened in the past. Move on. – Garth

#5 Phylis on 05.16.19 at 4:03 pm

Dont forget the unconscious bias. (Behavioural patterns)

#6 Mouldy Millenial on 05.16.19 at 4:05 pm

“Assignments are completely legitimate real estate vehicles.” – Garth.

Legitimate property transactions pay Property Transfer Tax. Assignments do not.

Because they do not close. The contract is assigned. The ultimate buyer pays property tax upon closing. The assigner pays income tax on any added value. – Garth

#7 Noid_11 on 05.16.19 at 4:05 pm

Excellent post…you’ve hit the nail on the head! FOMO and speculation in large part led to this (now deflating) bubble market in YVR, however the majority of people here continue to fall for the media/government narrative that other mysterious external factors have lead to this real estate mess in the lower mainland (or ‘crisis’ has the NDP quite often like to use as part of their terminology). Now we will all pay the price.

#8 Victoria Real Estate Update on 05.16.19 at 4:12 pm

From CAPTAIN SARCASTIC’S collection of thought-provoking quips:

Ain’t no reason to worry about a housing hard landing in your Canadian city. Here’s why:

Canada will be the first bubble country to get through its huge housing bubble and big debt problems without a massive price correction and serious economic issues.

It will be smooth sailing ahead for Canada’s housing bubble. Our “manageable” bubble is different than any other housing bubble that has ever existed anywhere in the world and at any time in history. It’s true that every housing bubble in history has gone through a spectacular price implosions, but that won’t happen here.

I predict a slow melt/soft landing for Canadian housing. Why do I predict a slow melt? Well that’s easy – you’d have to be silly to think it isn’t different here.

Canada’s official “it’s different here” list is realtor approved and awesome!

* We have CMHC. And with CMHC there is no chance of a hard landing. Simple as that.

We had CMHC during those big price crashes in Victoria, Vancouver, Edmonton and Calgary in the 1980s and Toronto in the 1990s, but if you tell yourself it’s different here enough you’ll be able to forget all about those nasty facts.

* We have recourse mortgages in Canada. And these loans will guarantee a slow melt/soft landing.

BC and Ontario have recourse loans but that didn’t stop house prices from crashing in Victoria and Vancouver in the 1980s and in Toronto in the 1990s. Florida and Nevada have recourse loans but that didn’t stop foreclose rates from skyrocketing and prices from crashing in Miami, Tampa, Jacksonville or Las Vegas. Ireland has recourse loans but that didn’t stop prices from crashing there either. My advice is to ignore all of this and continue to think that it’s different in Canada.

If this factual information is preventing you from buying at the peak please call your realtor for a huge dose of “it’s different here” – it’s part of their job.

* Canadians are house horny. And this house horniness will prevent a hard landing.

Canadians were house horny in the 1980s and 1990s but that didn’t stop hard landings from taking place in Victoria, Vancouver, Edmonton, Calgary and Toronto.

However, several recent “house horniness” studies have revealed that house horniness in Canada has increased 22.8% since the 1990s, which puts us ahead of the US (18.6%), Ireland (20.3%) and Australia (21.4%). So we’re good. No chance of a hard landing with those numbers supporting our extremely overvalued housing markets.

– Captain Sarcastic :)

#9 Jay Currie on 05.16.19 at 4:12 pm

I think it is important to draw a distinction between the effect of overseas money and the effect of “dirty” overseas money.

There is little doubt that there has been a lot of overseas money coming into the Vancouver real estate market in the last decade. There are various studies to support that conclusion. That money has, to no one’s great surprise, led to a significant upswing in housing prices. More demand, constant supply, Econ 101 tells us prices will rise. [And if that demand dwindles for whatever reason – real estate taxes, crackdown on capital exports – prices will fall.

Dirty offshore money is going to represent a fraction of the overall overseas investment. How big a fraction is no more than a guess. However, this sort of money tends to be price insensitive. If you are trying to stash money in a safe jurisdiction you don’t care that much about the price of the asset you are buying. At the margins this tends to make price discovery more difficult.

Where overseas money comes with actual people attached to it those people are buying “homes”. If, on the other hand, the money comes but the people stay overseas, that money turns homes into financial assets.

It is perfectly reasonable for people who live in a city to object to the housing stock of that city being converted from homes into financial assets. Which seems to be the motivating factor behind the vacancy and speculation taxes being levied in BC. Blunt instruments to be sure, but they reflect the electorate’s discomfort with the hollowing out of actual neighbourhoods.

#10 Smartalox on 05.16.19 at 4:13 pm

I read the Bloomberg report too, and I didn’t find sufficient evidence to reject the hypothesis that the impact of money laundering in BC (or in Canada in general) has been significant.

I agree that the true extent of its impact is unknown, but insist that the absence of evidence is NOT the same as evidence of absence. The whole point of money laundering would seem to be to avoid detection via conventional channels – hence the “little or no hard evidence”.

The purpose of the inquiry is to uncover that evidence. Document it. Test it against the model. Validate or Invalidate. Identify deficiencies, revise the model, implement detection and prevention actions.

Even if the figures are at the low end of what’s been quoted, ($800M) the taxes evaded alone would (one would expect) pay for the cost of the inquiry.

And maybe also hire a few doctors.

And if money laundering isn’t found to be the root cause of Vancouver’s stratospheric Real Estate prices, so be it.

One would expect that we would still have improved detection and prevention actions, for actual money laundering, and maybe uncover a few sources of that income that are tied to criminal activity (drug production and distribution, human trafficking, corruption), and maybe put a dent or two in that, too.

#11 Mouldy Millenial on 05.16.19 at 4:17 pm

“The assigner pays income tax on any added value.” – Garth

Sure. Assuming they are actually paying the income tax. But of course, it’s hard for the CRA to collect when the buyer disappears from this country.

#12 Doc on 05.16.19 at 4:18 pm

Re the wait list for a family doc, I bought a home in Lake Country BC when I was a family doc in central Alberta in July 1993. I applied for a general license in BC Nov. 93 and I was told that since I wasn’t coming till March of 94 to start a practice, I should wait “till my arrival was imminent”. I thought that was odd, but I complied and then applied for my license in Feb. 94. I was then told that the rules changed Jan. 94 and all new GP’s coming to the Okanagan could only get a 50% billing number as the gov’t and BCMA had decided there were too many generalist doctors in the Okanagan and the lower mainland. It took 8 years for a subsequent court challenge to make its way to the Supreme Court and it was then reversed. I went back to Alberta and became a specialist because the BC gov’t thought there was stiil room for more of those.

I then moved back to BC. as a specialist. Could this account for the shortage of family docs here? How many were turned away besides me?

#13 TS on 05.16.19 at 4:19 pm

Agree the government is clueless, but they weren’t the only ones asleep at the wheel. 70% of Canadians are home owners ( I suspect among lower mainland politicians it is close to 100%) and who doesn’t like making money in your sleep. You say don’t wallow in the past, but we have just uncovered the tip of the iceberg. Nobody can say definitely why declared income and property values are inversely correlated in the GVR. These unknowns have answers, the issue is nobody has bothered to look for them.

#14 Larry B on 05.16.19 at 4:21 pm

One thing that is true is that the real estate cartel used the belief that Chinese money was flooding the market to drive up prices and inflame FOMO. Now, those same realtors are sucking air trying to pay their office fees and Audi leases. No one can feel sorry for them now that sales have tanked from a market that they manipulated to their benefit. The saying, what goes around comes around applies.

#15 Al on 05.16.19 at 4:27 pm

“Marf148
I see a lot of deleted comments coming. And a lot of hilarious ones.”
For sure. Although, Garth is probably 99% correct. This real estate bubble was created and sustained by the greed of the good ol’ Canadians and the brilliant politicians they elected.
As they say “To make a mistake is human, but to blame it on someone else, that’s even more human.”

#16 Smartalox on 05.16.19 at 4:33 pm

“A massive waste of money to tell you what might have happened in the past…”

As a former Revenue minister, what about the Canada Revenue Agency’s power to audit returns from prior years and assess penalties and interest on taxes that might be owed? Like from the assignment of condo sales contracts?

You’ve already critiqued (in the many years I’ve read the blog) how condo pre-sales people were NOT licensed Realtors. If car dealers are not reporting suspicious cash transactions to FINTRAC, do you think that condo pre-sales agents are? Let’s find out, shall we?

Once the contract is assigned, then the income appears to be legitimate: I sold something of value for money.

Years ago (circa 2005), I went to a condo pre-sales ‘event’. There, I saw a couple of guys whom I thought looked like gangsters. Too much time in the gym, big tattoos, the full bingo card. They were literally fondling the plastic model of the condo tower, talking about the units they’d bought. Sure, they might have been successful investors, but a few years later I recognized one of them in a picture on the cover of the Vancouver Province: “Dead” it said, “In a gangland-style hit”.

An anecdote is not a data set. My observation is fraught at best.

But it seems plausible that flipping condo assignments might have been an effective way to facilitate high value transactions without a lot of oversight and accountability. If that is the case, I’m all for some additional scrutiny.

#17 tccontrarian on 05.16.19 at 4:36 pm

“This won’t be a popular post. I get that. But blaming the tail for the dog fixes nothing. It still bites.”
—–

There must be something wrong with me – I agree with every word of this post!
Wasn’t it Mark Twain who said: “Don’t let the facts get in the way of a good [BS] story”?

It appears this has been going on for-ever; for as long as these psychological biases have existed.

TCC

#18 Stan Brooks on 05.16.19 at 4:40 pm

Don’t underestimate the stupidity of the sheeple.

Did you buy Uber? You should have.

#19 AGuyInVancouver on 05.16.19 at 4:51 pm

So you don’nt consider the 20% of new Vancouver condos purchased by Foreign Nations in 2016-2017 “a flood”? What does Noah need, 50% Foreign Buyers, 80%?!

BMO’s chief economist said years ago that 5% was enough to move a market. You of all people should be aquainted with the term “maginal buyer” and how it effects the market.

Your strange assertion that we should ignore what happened in the past because it won’t effect the future seems straight out of the BC Liberal playbook.

#20 The Wet One on 05.16.19 at 4:54 pm

Very well said Garth.

Bravo!

#21 jim on 05.16.19 at 4:56 pm

Are these things correct? You (or I) have no idea where truth lies. But neither may the government. In the absence of facts and statistical verification, it seems allegations and bold accusations leveled at one ethnic group are brash. That the report was accepted at face value, embraced by the media, and now forms the basis of a costly public inquiry, speaks to the depth of bias within the public.

There is little or no hard evidence of actual money laundering. If it did occur, the amounts involved are likely much smaller

***************

Garth, you just admitted that you don’t know where the truth lies…..another bullet point in your article says the amounts involved are “likely much smaller”…

Doesn’t the public deserve an investigation in order to know the hard numbers?

You are being played. – Garth

#22 Dave on 05.16.19 at 4:59 pm

What data is real then??? Stats Canada says 100k new jobs but no one believes them. $5B in dirty money feels right but that data is wrong??? Inflation is just less then 2% but everything I buy has increased far beyond that!!!

A jokes punch line – The CFO says to the CEO ” I can make that number anything you want it to be”

#23 Dunlop on 05.16.19 at 4:59 pm

Yea Garth!!! Keep it up please because we so badly need a voice that calls BS when it is fed to us. This BC gov’t is intent on controlling every aspect of our lives to benefit themselves and their close supporters. What a shame that in this world we almost never tell the truth and that everything we do it meant to manipulate us in some way. It can’t end well.

#24 Dunlop on 05.16.19 at 5:03 pm

Actually, what are we complaining about? If everybody else from our government down isn’t going to bargain in good faith, then why should we care if money spent on drugs etc. gets funnelled into the bank accounts of BC homeowners or businesses, where it gets invested by banks and provides returns to those same citizens and governments through taxation? Why stop the flow? We might as well get our share and stop being such a bunch of hypocrites. Just charge the highest price you can get.

#25 just a dude on 05.16.19 at 5:03 pm

Garth, for what it’s worth, I think this is an excellent post. Thank you for attempting to bring perspective to a highly charged topic. Methinks unfortunately that you will be crucified by the steerage section this evening. You are a brave man, Sir. Thank you for what you do.

#26 Tater on 05.16.19 at 5:07 pm

#18 Stan Brooks on 05.16.19 at 4:40 pm
Don’t underestimate the stupidity of the sheeple.

Did you buy Uber? You should have.
—————————————————————

How can anyone afford to take Uber rides if inflation is 8% and unemployment is 20% like you claim??

#27 yvr_lurker on 05.16.19 at 5:12 pm

I don’t believe Bloomberg for a moment. Quick-fire critique by a natural source that the conservatives will embrace. To make it quick myself, your picture of the dog with the towel covering its eyes is a perfect caricature of Christy’s Gov’t from 2011-2017; wilfull blindness to what was going on in YVR with the real estate market, all with a happy smiling, lapping it up face, with all those trips overseas with realtors in tow extolling the virtues of BC as the best place on earth. Couldn’t have come up with a better picture myself for your topic of today.

Hopefully you will print this and not censor me again.

#28 GreaterFool on 05.16.19 at 5:13 pm

Even if there is no money laundering, ANY FAKE NEWS THAT helps to cool down prices is very welcome, I don’t care anymore about anything as long as houses return to a fair price. Keeping this situation will only destroy more and more families when the debt crisis hits the fan.

#29 unbalanced on 05.16.19 at 5:14 pm

Ya think the Bloomberg report isn’t tainted. YA RIGHT !!!

#30 Koolaid Drinker on 05.16.19 at 5:17 pm

So A Bloomberg report is more reliable than the one released by the NDP government? Talk about being bias.

#31 Keyboard Smasher on 05.16.19 at 5:17 pm

Claiming that Vancouver RE is not a large money laundering operation for the financial criminals of the world and exiled oligarchs is a fringe theory that I think this blog promotes alone.

Not buying it.

#32 Hindsight on 05.16.19 at 5:22 pm

The simple truth is plainly evident in the streets of Vancouver every single day, and has been so for many years.
Try as they/you may, the best efforts in the world cannot minimise the truth and impact this has had on our society!!!
You may be “willfully blind” but your attempts cannot convince the people who actually live and work here…..nice try but your journalism in nothing more than “fake news ” !!!!

#33 jess on 05.16.19 at 5:23 pm

Europe Fines 5 Banks $1.2 Billion for Their Roles in Foreign Exchange Cartels

Traders at Barclays, Citigroup, JPMorgan Chase, Mitsubishi UFJ Financial Group and the Royal Bank of Scotland engaged in anti-competitive behavior, the European Commission found.

chat room called :
“Semi Grumpy Old men” operated from December 2009 to July 2012.
another “Essex Express ‘n the Jimmy”
https://www.nytimes.com/2019/05/16/business/european-commission-foreign-exchange-banks-fine.html

#34 Mapleridgeguy on 05.16.19 at 5:30 pm

And while looking to lay blame for our real estate bubble, let’s not forget two of the worst culprits, the real estate industry and the MSM. Some people would call them a dog and pony show but I think pimp and ho would be a better choice. I’ll let you decide who’s the pimp.

#35 Lost...but not leased on 05.16.19 at 5:33 pm

Life in North America’s ‘most Asian’ city — Richmond, B.C.

https://www.youtube.com/watch?v=upmsqth3Tfg

Richmond, B.C., has become the “most Asian” city in North America. Seventy-one per cent of its residents are of Asian descent — and 53 per cent are Chinese.

#36 under the radar on 05.16.19 at 5:35 pm

There was and always has been money laundering . Be it offshore or onshore, cash gets pushed into the banking system and gets cleaned and used to buy all sorts of goods and services. All lawyers in Ontario must report cash receipts in excess of $7500.00 . Not sure what the BC bar was doing to facilitate these nefarious deals but i suspect those that were complicit are running scared.

#37 Kebo on 05.16.19 at 5:43 pm

Garth, nobody in the bc government is attributing money laundering to a particularly ethnicity. Perhaps that is your own bias?

And the way to combat prejudice in our society is transparency, not to bury a topic because it might reveal uncomfortable truths. Something Mr Socks is learning the hard way.

#38 life is good on 05.16.19 at 5:48 pm

I’m near Cranbrook, B.C.
The “waiting list” in full here, they don’t even want to put my name on that “waiting list” !
For the last 2 years I tried to get my name on a waiting list for a doctor…and no, not possible they told me it’s full !

#39 Dolce Vita on 05.16.19 at 5:52 pm

Facts over Fear.

More money leaves Canada than comes in. We are in near 0% GDP growth MoM, Sept. 2018–>Feb. 2019. I worry by demonizing foreign currency into Canada we may make things worse for the economy by scaring that money away, and we will need it.

Foreign currency transfers into Canada are large numbers. Those in Garth’s Blog today (the “dirty” money) are small by comparison. Trudge thru the numbers below on your own (by StatCan). Basic definitions provided (by StatCan). Link below to verify.

Balance of International Payments covers all economic transactions between Canadian residents and non-residents. Comprised of:

1. Current Account: covers transactions in goods, services, compensation of employees, investment income and secondary income.

2. Capital Account: covers capital transfers and transactions in non-produced, non-financial assets.

3. Financial Account: covers transactions in financial assets and liabilities.

3rd Qtr 2018 Results (-‘ve is a deficit):

Current and Capital Accounts -11.555 Billion
Financial Account -6.019 Billion
————————
Total = -17.574 Billion

The Financial Account “Other Foreign Investment” category of the Financial Account, MOST of that was an increase in currency and deposits held by NON-RESIDENTS in Canada denominated in foreign currencies, generated a NET INFLOW of funds of (+’ve is a surplus):

+$21.9 Billion, 3rd Qtr 2018
+$47.7 Billion, 2016
+$56.9 Billion, 2017

That’s a lot of money to scare away by demonizing foreign currency and deposits into Canada.

Do we really want to Science Witch Hunt the heck out of this and scare that money away (it’s been -‘ve before)?

https://www150.statcan.gc.ca/n1/daily-quotidien/181129/t001b-eng.htm

Buonanotte e Ciao d’Italia.

#40 TS on 05.16.19 at 5:54 pm

Since nobody seems to really know what is going on, it seems like common sense to err on the side of transparency. Worried about tax evasion? Mandatory registration of real estate transactions with the CRA seems like a prudent idea. Final beneficiaries need to be on the registry, no numbered companies. Heavy fines for lawyers, agents, and banks who don’t follow fintrac guidelines. Rewards for reporting suspicious transactions. Real information (not these bs statcan and Bloomberg studies) and transparency would put the question to rest once and for all. There is no reason to oppose these measures unless you’re hiding something.

#41 Brett D on 05.16.19 at 5:54 pm

This is one of my favourite posts.

#42 Grazie on 05.16.19 at 6:05 pm

Thank you Garth for today’s post. You explained it very well and you are very fair in your assessment.

#43 Headhunter on 05.16.19 at 6:10 pm

Horses are gone. No use closing the barn doors now.

Learn to live in and game the system. Best one can hope for. Going to trade all your time for money?Rome went the same way. People just “opted out” Better to homestead or live of gov’t.

Phoenix payroll system over a Billion, so money is getting kicked back to someone, dont make me add more examples. The merger of state and corporate powers has always been around.. its just dresses different on occasion.

Enjoy the show. Enjoy the game.

#44 Blacksheep on 05.16.19 at 6:10 pm

You want Globalization for your diversified portfolios?

This is what it looks like.

Your money globally, seeks higher returns.

Their money globally, seeks safe havens.

But wait you say:

I should be able to invest and profit from businesses in foreign countries…but if people from those foreign countries come invest in RE in your back yard….

They must be criminals, confiscate their wealth post haste, with out trial!

https://www.youtube.com/watch?v=6EWqTym2cQU

#45 Caleb on 05.16.19 at 6:11 pm

Man… What do you call it when a Mainland Chinese Kleptocrat absconds with millions that have been pushed to a tax haven in to a blind corp, which then sets up another blind corp in BC to acquire and hold real estate. The money gets sent from a corrupt money laundering haven like the Isle of Mann or the Barbados to a lawyer’s trust account in Vancouver and then to the vendor’s bank – no AML checks, no Fintrac reporting – no enforcement. NOTHING. Is this not money laundering??? Of course it is.

#46 Drill Baby Drill on 05.16.19 at 6:16 pm

What I find really hilarious was Horgan’s and Edy’s edict about demanding answers on the money laundering schemes. And get this they will have it ready in 2 years !!!! BWahahahahaha

#47 Bob Dog on 05.16.19 at 6:21 pm

What is the definition of dirty money?

Let’s say 100,000 people in China each make a shit ton of money doing business in a way that would be totally illegal and unacceptable in Canada or any developed country.

Then the incompetent asshat clowns trying to run the Government of Canada invite those 100,000 people, who have broken no laws in China or Canada, to move to Vancouver.

Then a bunch of psychopaths running our corrupt criminal banking cartel, uses tricks and multiple accounts to funnel that money into Vancouver banks.

I think the result would be exactly what you see. $4,000,000.00 lots with burned down shacks in a city where the average family income is 70K. Streets full of exotic cars such as McLaren, Lamborghini and Ferrari. This money being spend just for the sake of spending it.

Ask a Canadian born and raised in Vancouver what they think a house if worth on the local market. Then ask a Canadian Chinese migrant, with a truck load of cash, what a country is worth on a globalized market.

I think you may get a different answer. Canadians are the biggest collection of losers the human race has ever produced.

You would know. – Garth

#48 Michael Lauga on 05.16.19 at 6:21 pm

Garth,

We have a terrible track record of enforcing financial crime. Look at the enquiry in Quebec and tell me that was a waste of money. Finally we are getting some answers and you are dismissing the issue as not important. I am fully aware that this enquiry is politics as usual. However, that doesn’t mean that this issue is not important. In 2 years time we will find out. I don’t think you are on the right side of this. We will see.

#49 westsider on 05.16.19 at 6:27 pm

I work at a studio next to the Lambourgini/Bugatti dealership in Vancouver which is next to the Bentley/Jag dealership, which is 2 blocks from the BMW dealership which is across the street from the Rolls dealership on Burrard. The average income in Vancouver is $70,000. The average price of any of these cars is about $250K+.At 3:30-4:00 p.m.after school I watch asian teenagers picking up any colours of race cars and putting on an “N” sticker. I saw it today and I have seen it for the past 10 years. They must have incredible after school jobs.

The politics of envy. Never fails. – Garth

#50 Reximus on 05.16.19 at 6:29 pm

most people don’t know what money laundering is. taking a bag of cash to a casino for a cheque isn’t a crime. and there’s lots of controls for that

I do AML oversight for a living. I have done this for many types of financial services companies. Bags of cash? seen many. Was it hard to determine the source? not usually, and if it was we reported it.to authority.

the BC casino video always made me laugh because the bags of cash were actually reported to FINTRAC and Global TV keeps playing it in their fake pursuit of that ‘scandal ‘

#51 The Real Mark on 05.16.19 at 6:32 pm

DELETED

#52 Raincity on 05.16.19 at 6:33 pm

The foreign money lit the fuse on the housing market, and the locals exploded it!
You’re just wrong!! Come to the West Coast, and see what’s happening. Money laundering thru Real Estate and high priced cars bought with cash!

#53 Smartalox on 05.16.19 at 6:36 pm

I was just thinking the other day, as the BC government announced its investigative commission, whether money laundering might constitute a ‘Black Swan’ event, int he context of the term coined by Nassim Nicholas Taleb:

Based on the author’s criteria:

1) The event is a surprise (to the observer).
2) The event has a major effect.
3) After the first recorded instance of the event, it is rationalized by hindsight, as if it could have been expected; that is, the relevant data were available but unaccounted for in risk mitigation programs. The same is true for the personal perception by individuals.

(from Wikipedia)

https://en.wikipedia.org/wiki/Black_swan_theory

Instead of all the speculation (about whether or not money laundering played a role in property speculation), let’s gather some credible data and know for sure, one way or the other.

#54 Sam on 05.16.19 at 6:36 pm

The NDP information regarding foreign money is accurate Garth. We need to embrace FACTS, has nothing to do with Confirmation bias. Canada is a haven for this

#55 The Real Mark on 05.16.19 at 6:37 pm

Usually Bloomberg / BNN is a fake news channel, but this time, they actually seem to have gotten things right. US citizens, by far, are the largest ‘foreign’ participants in Canada’s RE market.

Embarrassingly, Glow-Bull (Fake) “News” has taken up the cause of spreading fake news in Canada concerning the RE market. Probably because the company is n a sort of long-term financial failure mode. Recently they’ve been running news articles lobbying for foreign workers, when its clear that Canada has a huge glut of skilled workers.

Strange, but quite disturbing how things go these days… Used to be that you could trust any outfit that had enough money to get their “news” on the air, to a reasonable degree of certainty. But make no mistake, fake news is on Canada’s airwaves, and its not just the traditional complaints of leftist bias that have permeated the CBC for years.

#56 Dolce Vita on 05.16.19 at 6:37 pm

I wonder if Garth’s Blog is going to pass Justin’s DIGITAL CHARTER muster?

———————————————————————————–

In my ongoing Series of how the Liberal Party left me for SJW & Dilettante Justin (or Debutante).

@JustinTrudeau 5h ago on Twitter (he is that unique gift that keeps on giving):

“Canada is stepping up. Today in Paris, I announced we’ll be launching a Digital Charter to guide a new transparent digital policy, bring trust back into the digital world, and hold social media platforms accountable. More to come.”

Most of his Tweets get 300 or so Replies after a day or so. This one, a babe in the woods at 5 h old, already has 504 Replies (as you guessed, most of them are not kind).

Yup, if you loved Orwell this one is going to be a giant shit show if ever there was one in the making. And here are just a few Replies to his Tweet:

“Yeah.. right.. you confused Japan 4 China, couldn’t remember Alberta is a Province, peeved off almost every trading partner we have, but you want us to trust you’ll create the proper conditions for a digital policy?”…followed by 13 ROTFL emoji’s.

“Ministry of Truth, established 2019.”

“”trust” aaa ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha”

—————————————

First out of the gates to talk about this “Digital Charter” is Global News (they talk as if somehow they’re exempt, this is from their “digital” web site):

https://globalnews.ca/news/5283178/trudeau-digital-charter/?utm_medium=Twitter&utm_source=%40globalnews

—————————————

There was SNC Lavalin. Then Admiral Norman. And now, let’s muck about with Free Speech.

Ides of October.

#57 Dave on 05.16.19 at 6:43 pm

Drug dealer has too much cash, needs to clean it.
Builds a house
Pays every trade with cash. Trades luv cash work…no tax
Drug dealer sells new house
Outcome – 1 house over $1M in money has been cleaned and can go into bank account. Plus made profit in this transaction. Win/win
You tell me why wouldnt every illegal business NOT do this. Its a no brainer

#58 Eaglebay on 05.16.19 at 6:44 pm

Poor, poor Vancouver. Everybody should look in the mirror. Nobody has forced anybody to sign a purchase agreement or a mortgage for an overpriced real estate.
People did it to themselves and now, the blame game.
I think that Comrade Horgan is playing the electorate, buying your votes.

Garth, you’re doing excellent work with your blog.

#59 Basil Fawlty on 05.16.19 at 6:46 pm

So, “maybe” the government reports are suspect, or sloppy. While Bloomberg “claims” such and such.

If a bunch of claims and assumptions is all that’s necessary to justify scrapping an inquiry, why even have a justice system? John Doe may have robbed the bank, or maybe he didn’t. Right, best to just move on and save the cost of a trial.

Forget about it people, it happened in the past. We will just concentrate on something else. Maybe the money laundering will continue, maybe it won’t, maybe it never existed, who cares.

#60 That's All, She Wrote on 05.16.19 at 6:48 pm

“In the absence of facts and statistical verification […]”

Sure, buddy. But you don’t think we have a right to know who owns what, or where the money came from. So no facts or statistics possible.

Suck. Blow.

Suck.

#61 Alberta Ed on 05.16.19 at 6:56 pm

Sounds similar to the current climate debate; lots of confirmation bias, little objective data.

#62 1% Prepper on 05.16.19 at 6:57 pm

Individuals are smart but people are stupid.

It’s always easier to look for others to blame for your own problems that take a hard look at yourself. In no other part o the country dinpeople think it’s the norm to have a basement tenant and someone living in a lane way house in the back yard. All so you can use the “income” to bid up the purchase price of a home

#63 Cici on 05.16.19 at 6:58 pm

Thank you Garth for having the courage to say what most people are too blind to see.

#64 broke dick on 05.16.19 at 6:59 pm

looks like that dog has the wool pulled over his eyes.
sorta like people that think that foreign money and laundered money are having no influence on the Canadian housing market.
And from what I’ve read the money is also finding it’s way to Canadian farm land.

#65 will on 05.16.19 at 7:03 pm

Nice Venn diagram.

#66 Musty Basement Dweller on 05.16.19 at 7:13 pm

Sorry Garth that’s truly a pretty pathetic rebuttal to the reams of facts being presented on the foreign capital and money laundering files. Why don’t you just call it all fake news? I can already hear other head in the sand politicians reiterating nonsense just like your post today. I know.. it’s your blog and you have the right to post as wish. And I have the right to not read it anymore. Good bye.

#67 HT on 05.16.19 at 7:17 pm

“What a massive waste of money to tell you what might have happened in the past. Move on. – Garth”

Sure, Garth. We can also apply this logic to sexual assault and homicide cases!

Last I checked, we were a country where the rule of law exists, and a justice system to hold those who break it accountable. The public here in BC are more than happy to kick in a few bucks to get answers! Money well spent.

#68 acdel on 05.16.19 at 7:19 pm

Been following you for years, agreed and disagreed with much that you have said. But by far this is the “Worst”, post that I have ever read from you.

Is China paying you to always defend them?? Be careful what you wish for; gawd!!

Two innocent Canucks are being held just for the fact Haweii (or however it is spelled; will never buy one) just because Canucks were played but upheld there judijiduos duties to detain a person in question regarding possible trading infractions.

Do you even listen to the people who live on the West Coast and clearly see it first hand? Your numbers can be justified to any stat; the people who experience it are the ones that I beleive. Whatever!!!

It is not even about real-estate it is about people being played; for what, the next great war??

#69 Makes sense on 05.16.19 at 7:28 pm

Side with Bloormberg and not the govt

You sure confirmation bias hasn’t infected you Garth ?

#70 AK on 05.16.19 at 7:32 pm

This may be off topic. I remember walking into a COSTCO about 20 years ago during mid day hours, and saw very few people around.

Today, walking into COSTCO during mid day hours and both parking lot and store are completely jammed.

Doesn’t anybody work anymore ?

#71 Prince Polo on 05.16.19 at 7:33 pm

What’s not to love about this post? Jumping to conclusions is my favourite (non-existent) board game! Usually followed up by foot-in-mouth for dessert.

#72 crowdedelevatorfartz on 05.16.19 at 7:38 pm

@#46 Drill Baby Drill
“What I find really hilarious was Horgan’s and Edy’s edict about demanding answers on the money laundering schemes. And get this they will have it ready in 2 years !!!! BWahahahahaha”

*****

In 2 years….Just before the next election….
And I’m sure the dirt will be heaped upon the Liberals…..

#73 OffshoreObserver on 05.16.19 at 7:39 pm

Money laundering? Nothing new here:

https://www.nytimes.com/1986/11/09/business/the-poor-bronfmans-billions.html

https://www.cbc.ca/news/business/paradise-papers-paul-martin-1.4390174

#74 millmech on 05.16.19 at 7:41 pm

#60
But you do know who owns what and where it came from, it is very easy to be like every other person with limited intelligence that seems to quote” it is the Chinese”, and it is exactly 5 billion not a penny more.
Nothing more than clickable thinking skills going on here, it is amazing how those quotes are now known facts by all the new money laundering experts in the LML.

#75 will on 05.16.19 at 7:55 pm

#60 “Sure, buddy. But you don’t think we have a right to know who owns what, or where the money came from. So no facts or statistics possible.”

Help me parse this Garth. Trading and ownership of securities is anonymous. Is the same true of RE? Is there some public record of who owns what RE? I was in Winnipeg last year wandering around downtown waiting for my train and there is this very large building called the Land Titles bldg – something like that.

The answer is probably simple but I have to ask it: why do we have anonymous ownership of securities? Why do we insist on it? In the case of RE, do we in fact have anonymous ownership and is the price we pay for a house publicly unknown? Why would the knowledge of who owns what securities be any different from knowledge of who owns what RE?

#76 yvrguy on 05.16.19 at 8:12 pm

Garth has officially lost the plot.

When the market starts to crash and the lid gets blown off all the shady stuff happening in YVR, he resists, and fights tooth and nail, calling it fake news – even though he’s said for over a decade Van is overpriced.

Guess he didn’t get the memo that it’s the margins that set the comps. The herd chasing DIRTY MONEY with CHEAP CREDIT.

Yeah, totally normal when people are OVERBIDDING by $1mil and the MSM is lauding it, stoking the FOMO flames.

—-

Side anecdote. My realtor who’s a family friend told me of a local guy who scrimped, saved and used all his existing home equity and some cash to upgrade to a $1.7 mil shack here for his family.

He had the highest bid, but the sale went to an Iranian guy with a CASH DEPOSIT of $1mil. He saw the briefcase of money.

Local guy who bleeds to get ahead in this garbage market loses out to money launderer.

That’s just one story.

Nothing to see here.

One million in cash sitting in a bag, that the Iranian dude shows around, while making an offer. Yes, sure. We believe you. Honest. – Garth

#77 The Most Interesting West Coast Conspiracy Theorist in the World on 05.16.19 at 8:18 pm

Lets set the record straight.

The people of BC are reclaiming BC. It is that simple.

People are going to jail.

The bottom is going to fall out of BC real estate.

The problem right now is that the level of law application is not consistent across Canada, so these bad groups exploiting BC are migrating East (Calgary, Toronto, etc.) to exploit the weakness.

BC house prices down, the rest of Canada stabilizing and/or up like in Ottawa or Montreal.

#78 akashic record on 05.16.19 at 8:24 pm

“Are these things correct? You (or I) have no idea where truth lies.”

How come? Isn’t this a G7 country?

#79 js on 05.16.19 at 8:36 pm

Garth, why don’t you ever crunch the numbers for anyone without much savings to ENTER the real estate market and pay a mortgage, even low 300-400K and just show how that could be done on an average salary of 50K before tax? Also, if that person could pay the mortgage hypothetically what will be left over after all the expenses, fees, taxes and such? It will be an eye opener, I promise you!

#80 akashic record on 05.16.19 at 8:38 pm

How is it even conceivable that Bloomberg, a company knows better than the government, which has all the power and resources to collect all the data (in return for the taxes) she wants?

Should we hire Bloomberg and fire the government?

#81 Sail away on 05.16.19 at 8:38 pm

The more foreign money we see, the better. Keep it coming.

The smart play is to join the wealthy, rather than try to drag them down to your level. Blaming the rich for being rich might make a person feel better for a few minutes but it won’t change anything. Envy and bitterness are not recipes for success.

#82 Polozi Scheme on 05.16.19 at 8:42 pm

Well said: “Are these things correct? You (or I) have no idea where truth lies.” You have been wronger though :)

#83 Sail away on 05.16.19 at 8:44 pm

#76 yvrguy on 05.16.19 at 8:12 pm

He had the highest bid, but the sale went to an Iranian guy with a CASH DEPOSIT of $1mil. He saw the briefcase of money.

Local guy who bleeds to get ahead in this garbage market loses out to money launderer.

———————————–

Wow, biased much?

#84 Flop... on 05.16.19 at 8:44 pm

Right now Vancouver is an out of control Billycart.

Keep your arms and legs tucked in and no one gets hurt.

It’s been a wild ride and will continue to be for the foreseeable future.

We’ve come this far, let’s go all the way…

M44BC

#85 akashic record on 05.16.19 at 8:52 pm

DELETED

#86 brydle604 on 05.16.19 at 8:53 pm

#61 Alberta Ed on 05.16.19 at 6:56 pm
Sounds similar to the current climate debate; lots of confirmation bias, little objective data.

Touche

#87 yvr_lurker on 05.16.19 at 9:03 pm

Should we all defer to the comments of Bloomberg (which seem to have been crafted in a few days), or should we put our trust in a series of reports that has been months in the making and based on the data available. I know where I put my hat.

I am half-expecting that in the next few days we will see a Bloomberg editorial backing the decision to pardon Conrad Black. Rich priviilege at place here. Months and months of examination of evidence by the judiciary to be all negated by someone in the same privilege club (Trump). Independence of the justice system? (certainly not in this instance). “Free markets” unrigged by hidden forces? (unlikely as well).

In the end, people will believe what they want (climate change etc..etc..). Seems to be little need for evidence, collecting data, etc…. all partisan….

#88 The Great Gordonski on 05.16.19 at 9:06 pm

Talk about bias ?

https://business.financialpost.com/news/economy/bank-of-canada-identifies-climate-change-as-important-economic-weak-spot

Poloz is the most partisan, biased, obviously tainted BOC Gov in Canadian history. What an embarrassment to see another supposed “civil servant” flush his respect for our institutions down the toilet. Shame on him. Has Poloz nothing to learn from a pratfall like Wernick who resigned in disgrace, is his loyalty to Trudeau more important than his responsibility to Canada? No Stephen, it’s not your job.

On a happier note. Did anyone follow my CSCO pick a few months ago? Good for you if you did, otherwise boo hoo. Bought and logged at $34, yesterday at $53 USD. Garth calls me “lucky” , I’ll take that $20 p/s spread any day no matter what you call it.

But, in this case there was an element where fortune favored the bold. The balance sheet was in order then and is today, but I couldn’t know that Trump would ban Huawei, that was luck for sure.

I’m happy, I’m holding, but there’s no guarantees here.

#89 Bloom off the rose on 05.16.19 at 9:06 pm

Jesus Garth! Quoting Bloomberg is a step up from CREA but not by much.

You continue sticking to your guns on the money laundering issue, thankfully we will all know how deep and perverse the situation is with the report.

Lets put some light on the depth of the evil or admit that nothing happened here.

I anticipate many awkward moments and possible jail time for the heavy hitters in the government at the time that went along with this.

Its time to flush the toilets:)

#90 akashic record on 05.16.19 at 9:11 pm

#130 crowdedelevatorfartz on 05.16.19 at 8:40 am

@#98 Akashic Record

I’ve been looking around for a while and this company was making them for the Canadian market.

Anything that can generate solar heat in an Albertan winter gets my attention.
And no expensive batteries with a 5 year life span, no chopping wood, etc.

Just a vacuum tube.

https://www.latitude51solar.ca/residential-solar-water/solar-vacuum-tubes

Looks like they may have been bought out but the product seems well researched and developed.

Thank you! These tubes are maybe the most usable solar technology for this climate.

This company is more pricey than the ones I saw before, but they have fully integrated premium products. I like it – thanks for sharing.

#91 akashic record on 05.16.19 at 9:14 pm

#85 DELETED

Not a French Connection UK brand fan, eh? :)

#92 Al on 05.16.19 at 9:17 pm

There seems to be some confirmation bias going on here in this post using the Bloomberg report. It’s true that society is sorely lacking the tools to tackle this laundering, but the same folk who critisize any effort to tackle it will fight any reforms tooth and nails to give society the correct empirical tools.

#93 NumNum on 05.16.19 at 9:17 pm

You have to admit Garth that you too are deeply impacted by confirmation bias. You underplay and disregard every piece of evidence that supports the thesis that foreign money laundering is a significant contributor to our severely inflated housing market. BTW, I completely accept your main hypothesis that cheap money is the primary force behind the housing bubble but what made it much worse in Canada than US implies more factors in play.

#94 Reality is stark on 05.16.19 at 9:19 pm

As usual everyone has missed the obvious. The province of B.C. made a killing on the wealth effect of a rising housing market.
Those revenues have disappeared. The Feds have no money to give to B.C. because the Feds are broke.
So the Province doesn’t have any money to give to the municipality. The municipality always needs more so they have to raise property taxes. The economy is slowing so you have to suck tax money from the only area where there is still some wealth.
The B.C. homeowner who bought at the peak is not only facing a significant capital loss the government is about to rape him further.
The government is a vicious taxing machine in Canada. You do not realize that very few people can accumulate wealth when the government is confiscating at such an outrageous pace.
Whatever methodologies you are trying to accumulate wealth are mute since the government is getting more adept at taxing that money back.
A more affordable Vancouver home means little to the person living in Vancouver that recently lost their job as locals reduce their spending.

#95 millmech on 05.16.19 at 9:33 pm

Talk to realtors, talk to banks, talk to post office workers and they all filled out FINTRAC documentation and sent it to Ottawa where they had absolutely no one there to even look at it. So until the Feds say this is wrong and prosecute no one is at fault and no one will go to jail, they all followed the proper protocols, the posters saying jail time are hilarious. Money laundering is a federal crime so it is up to the RCMP to forward evidence to the Crown and the Crown to prosecute, but there was no one there to read the FINTRAC reports ,no one.
You have to blame the Federal Liberals who have now stated over 47 billion was laundered through Canada and not a single charge, good luck getting anyone in jail, just a bunch of sore losers complaining about nothing!

#96 Vampire Studies (post grad) on 05.16.19 at 9:34 pm

40 TS

“Final beneficiaries need to be on the registry, no numbered companies.”

What diff does that make? My company has a number, but also a name. Either way you can search a company summary on the corporate registry.

I set up my company for 100% lawful reasons.

Why is it any of your business?

#97 Slim on 05.16.19 at 9:40 pm

Name one major city in the world where there is no money laundering activity. So, I’m not sure why the NDP are acting like this is some earth shattering news. It’s like saying it snows in the mountains. Duh!

#98 Silent the people on 05.16.19 at 9:46 pm

Nothing to see here! Move on! Government
Seems to want that but we should demand accountability! The past is the roadway to our future!
Ignore what everyone says and open your own eyes!
Look what is going on in your neighbourhood and not what anyone else tells you! Garth/ media / and government have their version of events but you can decide what is the truth!

#99 georgist on 05.16.19 at 9:48 pm

> A Bloomberg report days ago claims this

Bloomberg get a lot of things wrong, a lot of the time

Here they are, totally certain of themselves, and heavily criticized in the tech community where expertise is better:

https://www.bloomberg.com/news/features/2018-10-04/the-big-hack-how-china-used-a-tiny-chip-to-infiltrate-america-s-top-companies

Bloomberg also relies on extensive access to banks and their money for their terminals.

Attack the content, not the provider. You just lost all creds. – Garth

#100 not 1st on 05.16.19 at 9:54 pm

If comrade Horgan says BC is dirty, I believe him.

#101 not 1st on 05.16.19 at 9:57 pm

Guess which group gets the next round of US tariffs. That’s right EU. Boy are your guys off your rocker over there greenlighting Chinese tech right into your network Say goodbye to NATO too. You chose corruption now lay in your bed.

Steel and lumber tariffs wont be removed from Canada either until we wake up. The minister of too tight dresses found that out in her trip to DC.

#102 IHCTD9 on 05.16.19 at 10:03 pm

This topic is a bit of a lightning rod!

There’s got to be at least a few happy ex home owning millionaire Vancouverites out there no?

Hey, I know a guy who sold an empty corn field out in the county for 600 g’s to a Chinese guy from Toronto. Just dirt, no house. 100 acres of Corn doesn’t pay that kind of money, and this field will still be just a corn field 100 years from now. Seller guy is one happy newly retired camper!

I heard of a local ex gas station owner who sold his station to Chinese guys for 2 mil. Chinese dudes ran it 2-3 years and went broke (just like the ex-owner was in process of doing prior to cashing in). This station is doomed to fail no matter who owns it, but buddy got 2 million for it.

I know a few other tales where locals have cashed in huge thanks to folks with tons of cash and an itchy trigger finger/no brains. Vancouver absolutely HAS to be the Canadian capital for good luck stories like these. Has to be thousands of new millionaires out there!

#103 Ronaldo on 05.16.19 at 10:06 pm

#70 AK on 05.16.19 at 7:32 pm
This may be off topic. I remember walking into a COSTCO about 20 years ago during mid day hours, and saw very few people around.

Today, walking into COSTCO during mid day hours and both parking lot and store are completely jammed.

Doesn’t anybody work anymore ?
——————————————————–

It’s all us retired boomers.

#104 meslippery on 05.16.19 at 10:07 pm

So recently celery costs $7.00 and now only $5.50 thats
suppost to be a goog deal? — Wrong—
Nothing is well almost nothing is as bad as being Ripped Off ( Gouged) .

#105 DON on 05.16.19 at 10:09 pm

Ok, Pump the Brakes.

I get the message of this blog but…

Confirmation bias is what happens when we lack the full information. Bias also results due to ideology and blind partisanship.

Vote the scandal ridden conservatives out, elect the formerly scandalous liberals and repeat and repeat…this is why I have no allegiance to any political gang and will continue to vote strategically (regardless if I am a conservative by nature).

If you do not follow BC politics on a regular basis I can understand the misguided thoughts. Look at all the out of Province critics jumping aboard the anti BC NDP wagon without researching the whole story. It just so happens they seem to be the Party of reason, along with the BC Greens (yup i said it). They are being more sensible. The price ceiling hit Vancouver in terms of law abiding incomes. But still the prices marched hire.

In the early 2000s the BC Liberals took over government and all of sudden housing took off. Old places on the West Side, Dunabar area, went from High 200K to 400+K and the other 100K to gut them (steep at that time). Connected parents (private schools) started to help their kids buy condos/town houses/houses. The intent was to flip them, as something was on the way. Then the frenzy slowly picked up pace.

On of my friends dated a girl who was one of many house sitters/renters with a grow op in the basement and lawyers on retainer. Local boys and girls who started buying the houses (to avoid impromptu landlord inspections) and installing caretakers.

Then the gangs turf wars started to take off.

As for Bloomberg news, one day there is an article saying the economy is improving and the next day the an article saying the exact opposite. Schizophrenia to a degree. But I use Bloomberg for the tickers. But take everything with a grain of salt when I see a lack of fulsome analysis.

Fact: The former BC Liberal/Conservative/Social Credit Minister of Solicitor General (also held the title of Minister of Housing). He switched Ministry in his career but always had Housing and Gambling in his portfolio. He disbanded the RCMP unit that dealt with white collar and money laundering back in the 2009.

The former BC Liberal/Con/Social Credit government was scandal plagued and sold off BC Rail in a scandalous way and stopped the criminal trial. People still want an inquiry.

So better to do your research before jumping on any band wagon.

Just like twinning the pipeline is supposed to bring cheaper gas prices to BC. Well that is not true and has been revised recently and has Ms. Vivian Krause’s analysis.

The former BC Liberal Premier who got forced out as he and his party lied to British Columbians about the HST and faced a strong rebuttal by all British Columbians forcing his resignation. Well, most recently he was advising Doug Ford about how to do what exactly? . Same formula that he used in BC is coming to a theatre near you, Ontario. Then his Manitoba Hydo contract got cut short as he was accused of metoo while he was the Canadian High Commissioner in London, England. You can’t make this stuff up.

And then there’s Christy Clark.

BC is a mess due to the BC Liberals reign of error – terror for some British Columbians. They welcomed all types of revenue. Do we want to talk about the opioids, casinos, etc?

People should be held accountable and an Inquiry would at least inform the people. We can’t rely much on the corporate press. BC basically became a banana republic in a Canadian manner.

The housing market had a price ceiling and a decline was always inevitable, but now crime is looking over it’s shoulder and the high end market is falling the fastest.

And of course there is politics involved who wouldn’t take advantage of a situation like this. Meanwhile the anti Inquiry folks are few and mostly blind partisans who would love to keep the status quo and the mountain of dirt under the carpet.

Nope… people need to be held to account.

Lessons need to be learned and justice served…best cold.

And didn’t the Quebec Inquiry make money?

Chumming the waters? Caught me!

#106 Wiseguy on 05.16.19 at 10:10 pm

DELETED

#107 DON on 05.16.19 at 10:18 pm

#72 crowdedelevatorfartz on 05.16.19 at 7:38 pm

@#46 Drill Baby Drill
“What I find really hilarious was Horgan’s and Edy’s edict about demanding answers on the money laundering schemes. And get this they will have it ready in 2 years !!!! BWahahahahaha”

*****

In 2 years….Just before the next election….
And I’m sure the dirt will be heaped upon the Liberals…..
***************

YUP, months before the scheduled election. Politics is politics. What party wouldn’t do this! Death of a party by a thousand cuts, no doubt that is the intention. Greens love this as they stand to gain Liberal votes.

#108 Bdog on 05.16.19 at 10:19 pm

Garth is a contrarian at heart and enjoys taking positions against the grain of popular opinion. He’s trolling us all.

#109 Ronaldo on 05.16.19 at 10:23 pm

#94 Reality is stark

A more affordable Vancouver home means little to the person living in Vancouver that recently lost their job as locals reduce their spending.
——————————————————————

What would constitute a more affordable home in Vancouver? I am willing to bet that the majority of homeowners with paid off homes in Vancouver and many that bought prior to 2009 would not qualify for a mortgage on the homes they now occupy due to the stress test. How much would prices have to drop to be affordable at current interest rates? What if rates were to go back to levels of 2008? How much would prices have to drop in that case? Prices have a long way to drop before this mess is cleaned up. A realtor friend tells me that prices in the east side are down around 20% since the peak and figures they will go down much farther.

#110 PHMIKE on 05.16.19 at 10:24 pm

I am not doubting for a second that its not a massive part of our Real Estate that is illegal chinese money, however I would say that there is a ton of money laundering in BC real estate… Sell your real estate for the bag of cash and quit whining…. i did. ;) But Garth you must know Vancouver especially being a port city and a major drug hub for North America there is a ridiculous amount of “dirty” money here however that is nothing new, there was billions a year in BC bud flowing since the 90s so everyone who is complaining you ill be crying when it leaves….

#111 meslippery on 05.16.19 at 10:25 pm

Oh just a point. Hearing aid for little loss in one ear.
$1500.00 or/ Sony 4K 65″ HD smart TV $700.00
Can you say Gouged?

#112 Theend Isneat on 05.16.19 at 10:28 pm

An airplane flying at 500 miles per hour is 100 per cent air worthy right up and until it hits a mountainside in dense fog.

Same with the economy . Everything is swell until it isn’t.

I have read the Garth grams now for 6 years or so. Thought many times that the Garth was wrong but his profitable batting average far exceeded mine and I am talking about real cash. Seven figures plus. He p.o.’ed me many times … snd still does … sometimed with alarming regularity. But he has been right more times than not. Don’t care to hug the guy,
but give credit where credit is due.

Back to the airplane analogy … economically it’s getting pretty foggy right now, and the raised-hair on my skin tells me there is a mountain out there somewhere and we are flying very fast.

So far all I hear from the steward is “another cocktail sir?”

Hmmmm. Looks good but doesn’t feel right. Buckle up.

#113 akashic record on 05.16.19 at 10:29 pm

Canada is not an off-shore corner of the world by any means, yet the Canadian government doesn’t have meaningful, verifiable money laundering data. Despite the country’s PR to be a leading player of FINTRAC, Magnitsky Act, etc. A company like Bloomberg can openly dispute the government data, which should be absurd if the government had verifiable data.

My theory is that the meaningful exploration of the facts by the government is politically crippled by the fear of the stigma of racism, xenophobia, etc. This would be as bad as if the reason was simple, deplorable corruption.

#114 DON on 05.16.19 at 10:45 pm

#46 Drill Baby Drill on 05.16.19 at 6:16 pm

What I find really hilarious was Horgan’s and Edy’s edict about demanding answers on the money laundering schemes. And get this they will have it ready in 2 years !!!! BWahahahahaha
*********************

That is because the former government will not release their cabinet documents on money laundering etc. Now the Inquiry can get them. BAWHahahaha.

Has Kenny returned Alberta to the glory days yet? When is he shutting off the taps to BC and big oil’s deliveries?

#115 Flop... on 05.16.19 at 10:49 pm

#102 IHCTD9 on 05.16.19 at 10:03 pm

I know a few other tales where locals have cashed in huge thanks to folks with tons of cash and an itchy trigger finger/no brains. Vancouver absolutely HAS to be the Canadian capital for good luck stories like these. Has to be thousands of new millionaires out there!

/////////////////////

Hey Trackie, it’s been a while since I responded to any of your posts since we had a bit of a falling out about you profiling people all day at work, but I’ll try to help you out since you only seem to be seeing one side of the story.

A large percentage of people who I have had real estate dealings with the last 17 years in Vancouver took their windfall and ploughed it back into the market.

Some went for higher quality, some went for quantity.

It was fish in a barrel stuff for a while, but now the bands have broken off the barrel and the fish are flapping on the ground.

A lot of money was made but as this blog preaches, diversification was lacking, such was the allure.

The full extent of all this most likely won’t be known for decades…

M44BC

#116 Rentin on 05.16.19 at 10:55 pm

People new to this forum should realize that Garth likes to push peoples buttons. Middle of the road journalism is a boring read and wouldn’t really ignite the comments section.

He more than happily threw this out for reading consumption years ago and was the first article I read:

https://www.greaterfool.ca/2008/10/09/crashing-in-kelowna/

The article couldn’t have been more wrong, but likely instilled fear in those that shouldn’t have bought, and in the end it was those who Garth wanted to save.

We just bought a house this week and based on the price curve its at a discount of 25% from the peak. A perfect house, 15 minute commute to work and 10 minute walk to school, 15minute to skytrain and 5 minutes to the largest park in the lower mainland. We have rented a house since 2006 been falsely evicted and saved countless dollars which we invested wisely, a bit more in stocks than Garth would recommend, but it worked well. In turn we now fork over the cash, maybe 50% of our net worth for a house and in 20 years from now it likely won’t matter what the price point was.

What will matter is that we didn’t spend our days stuck in a car commuting, will never get evicted, can walk the kids to school and enjoy the 1/4 acre property.

Better investment than stocks/bonds? maybe not, but certainly more rewarding.

Sometimes, money isn’t everything.

This site was a good read since 2008. Thanks Garth for trying to save those from financial disaster.

I will have to change my name……

#117 Sail Away on 05.16.19 at 11:01 pm

#40 TS on 05.16.19 at 5:54 pm

Since nobody seems to really know what is going on, it seems like common sense to err on the side of transparency. Worried about tax evasion? Mandatory registration of real estate transactions with the CRA seems like a prudent idea. Final beneficiaries need to be on the registry, no numbered companies. Heavy fines for lawyers, agents, and banks who don’t follow fintrac guidelines. Rewards for reporting suspicious transactions. Real information (not these bs statcan and Bloomberg studies) and transparency would put the question to rest once and for all. There is no reason to oppose these measures unless you’re hiding something.

————————————————

So many solutions and all from a single erudite poster. Yes, let’s all put our lives in the hands of the authorities because of government’s proven efficiency and infallibility.

It’s possible this fellow wouldn’t agree:

https://www.vancourier.com/inventor-says-taxman-has-ruined-his-life-and-business-1.23823700

#118 palebird on 05.16.19 at 11:05 pm

Great post Garth.

#119 Blacksheep on 05.16.19 at 11:11 pm

Not # 100,

“If comrade Horgan says BC is dirty, I believe him.”
——————————
“The report released last week from British Columbia’s expert panel on money laundering in real estate concluded that almost $47-billion worth of dirty money – the proceeds of criminal activity – was washed through the Canadian economy last year. Of that, more than $7-billion is believed to have flowed through B.C.’s economy, distorting the housing market and feeding the opioid crisis.”

“The report estimates that Alberta had the greatest amount of dirty money washing through its economy – $10-billion.”

“B.C.’s expert panel adopted the “gravity model” used in the Netherlands to estimate how much dirty money Canada is laundered within the country and how much moves between Canada and other countries. The panel describes its estimates as cautious and noted the model used by the International Monetary Fund – known as the “wet finger estimate” – provides a range of estimates between $43-billion and $147-billion a year in Canada.”

““Money laundering is a national issue requiring a combined federal and provincial response that involves all of the provinces across the whole country,” the Maloney report stated.”

“Law professor Maureen Maloney, the chair of B.C.’s expert panel on money laundering in real estate, acknowledged the limits of the modeling in an interview on Monday. The gravity model “is a good model, for the country,” she said. But the regional breakdown outside of B.C. is less granular. “None of our estimates are definitive,” she said, “but they are within a range.””

https://www.theglobeandmail.com/canada/article-alberta-questioning-bcs-money-laundering-report/
———————————-
Question:

Why are the NDP calling a provincial inquiry, instead of getting on the feds, along with the other premiers to take action and let them, foot the bill?

Answer:

To control the inquiry’s timeline to complete just before the next election. Garth’s right: “What a massive waste of money”

It would seem “never waste a good crisis” applies.

#120 georgist on 05.16.19 at 11:21 pm

> Attack the content, not the provider. You just lost all creds. – Garth

That is such a weird thing to say. Is Breibart equal to the FT? Hmm. Not a great example :-)

#121 Ponies Pilatus on 05.16.19 at 11:33 pm

This is crazy.
Just after 2 airplanes crashed due to software problems.
—–
https://driving.ca/tesla/auto-news/news/tesla-updates-software-after-parked-car-caught-fire-in-hong-kong
——-
Put an end to this madness.

#122 Howard on 05.16.19 at 11:37 pm

#88 The Great Gordonski on 05.16.19 at 9:06 pm
Talk about bias ?

https://business.financialpost.com/news/economy/bank-of-canada-identifies-climate-change-as-important-economic-weak-spot

Poloz is the most partisan, biased, obviously tainted BOC Gov in Canadian history. What an embarrassment to see another supposed “civil servant” flush his respect for our institutions down the toilet. Shame on him. Has Poloz nothing to learn from a pratfall like Wernick who resigned in disgrace, is his loyalty to Trudeau more important than his responsibility to Canada? No Stephen, it’s not your job.

—————————————-

Last year he was saying that Canada should have universal socialist daycare. You know, because apparently stay-at-home parents who sacrifice to raise their own kids should subsidize parents who leave their kids with strangers.

Where in God’s green earth did Stephen Harper find this guy and what made him believe he was qualified to run the Bank of Canada? Must be his worst decision as PM aside from 40-year/$0 down mortgages.

#123 Snowbird on 05.16.19 at 11:44 pm

According to CBRE Global Living 2019, the most expensive cities in the world are

1. Hong Kong 1,235,220 USD (average property price)
2. Singapore 874,372
3. Shanghai 872,555
4. Vancouver 815,322
5. Shenzhen 680,283

the rest of the top 10 are LA, NY, London, Beijing and Paris.

How can Vancouver make the top 5 based on economic fundamentals?

#124 Rocky on 05.16.19 at 11:45 pm

Garth, I was a regular reader years ago. Now, I occasionally drop by to see what is going on. It’s pretty clear to me that you’ve gone over to the dark side. The suggestion that we should just move on and forget about it when serious crimes have been committed in this country which have seriously affected your fellow Canadians both financially and emotional is incredibly arrogant and is revealing of the fact that you not only have a huge ego but also an agenda of your own that is not shared by many of your countrymen.

#125 Ponzius Pilatus on 05.16.19 at 11:50 pm

#72 crowdedelevatorfartz on 05.16.19 at 7:38 pm
@#46 Drill Baby Drill
“What I find really hilarious was Horgan’s and Edy’s edict about demanding answers on the money laundering schemes.

*****
In 2 years….Just before the next election….
And I’m sure the dirt will be heaped upon the Liberals…..
———
That’s where the shit should be heaped upon.
Crusty, people fell for her looks, worst Premier ever.

#126 fishman on 05.16.19 at 11:51 pm

I’ve been in the centre of this maelstrom for 40 years & I don’t care. First the Cantonese, then the Mandarins from Taiwan, & lastly the Mandarins from the mainland. The Chinese started coming for the Fraser gold in the 1850’s. Till the early 80’s 90% Cantonese because Hong Kong was British. Nobody complained much about the Taiwanese because they were the bourgeois class that escaped in 49. I mean we were the workers & peasants around their thousand years of good breeding.This last batch are nouveau rich. Peasants before “black cat / white cat, doesn’t matter as long as it catches mice” slogan. Babies growing up on a dirt floors, now fancy houses, flashy cars,clothes jewelry. Nobody taught them about Monet & “taste” in their hard scrabble post Mao upbringing. Darwin picks his winners.
Chinese money has disappeared for awhile, It’ll come back. Don’t fall asleep. Us regulars ain’t going nowhere. Waiting & watching with bags of liquidity. Jump back on the gravy train when the numbers start making sense. While maybe not me & my pals. We’re burnt out & too old to play the long game. Had it pulling permits from City Hall. Fun indoctrinating the kids though. Show them how & when to jump back on that locomotive of Van R/E.

#127 SeaRay on 05.16.19 at 11:52 pm

There is currently a world-wide real estate correction transpiring and most countries feeling the affects are blaming some foreign intervention. Is it all a coincidence? I think not!
That said, the Sparks may have been foreign investors but the fire was likely homegrown in most countries.
I think we owe it to ourselves and our kids to put protective measures in place to stop this ‘wild west’ speculation killing the Canadian dream. If you invest in stocks, you have to pay tax on that profit!!!! Right??

#128 Kat on 05.16.19 at 11:53 pm

They guestimated? I thought it was an actual study done, well goes to show you cannot trust the government.

#129 Ponzius Pilatus on 05.17.19 at 12:19 am

If you are a climate change denier.
For your own sake, please don’t read this:
https://www.richmond-news.com/bank-of-canada-identifies-climate-change-as-important-economic-weak-spot-1.23824411
———-
The report claims that F-150s are the greatest contributor to global warming.
Told you, get rid of them

#130 Cc on 05.17.19 at 12:21 am

Excellent post, you nailed it bud.

#131 meslippery on 05.17.19 at 12:22 am

Last post never been to BC / Vancouver live in GTA this Spring anyone is this Vancouver??
You know weather wise?

#132 Hawk on 05.17.19 at 12:47 am

I don’t get it!

I have a beautiful Bungalow in Etobicoke and I am getting old waiting for some chinese or Iranian dudes to pull up in their maserati with haversacks full of cash so that I can merrily sail into the sunset and sip pina coladas in the carribbean.

Maybe I should put up an ad in the South China Morning Post………..

#133 Vanreal on 05.17.19 at 12:48 am

Thank you Garth. I couldn’t agree more. The NDP are manipulating the public

#134 jane24 on 05.17.19 at 12:48 am

‘The only statistics I believe are the ones I doctored myself’.

Winston Churchill

#135 Bobby Bittman on 05.17.19 at 1:10 am

Hopefully all the valuable “ outsider “ knowledge about money laundering and yvr real estate transactions will enlighten the masses.

Could I request that you dedicate the next post to where you think the Leafs coaching staff went wrong in the playoffs?

#136 Marcus on 05.17.19 at 1:44 am

On the heels of a stunning report revealing over $7 billion in laundered money through British Columbia in 2018 (mostly in the form of Chinese oligarchs buying Vancouver real estate and using it to park money offshore), the province will finally hold a public inquiry into money laundering, according to CBC. The decision was announced by BC Premier John Horgan and Attorney General David Eby on Wednesday morning. They were joined by Finance Minister Carole James.

At the announcement, Horgan said: “It became abundantly clear to us that the depth and the magnitude of money laundering in British Columbia was far worse than we imagined when we were first sworn in, and that’s why we established the public inquiry today.” $5.3 billion was being laundered through the real estate market. The independent report released just days ago concluded that an astounding $7.4 billion was laundered in British Columbia in 2018, out of a total of $46.7 billion laundered across Canada throughout the same period. The report was published by an expert panel led by former B.C. deputy attorney general Maureen Maloney.

#137 Smoking Man on 05.17.19 at 1:47 am

Something creepy about Macron and T2s relationship.
Two goofs , b actors auditioning for the role in the movie screaw my people, I’m the biggest suck up contest.

Wow. The newfees voted for the libtards. Where are their sons.probably in Alberta living on a prayer.

Don’t worry men. Aliens got your back. This hardship is temporary.

Enjoy the tune

https://youtu.be/lDK9QqIzhwk

#138 Not So New guy on 05.17.19 at 2:04 am

Maybe people would have been willing to live and let live had the laundering elite not started throwing the poor, the crippled and the old out on the streets saying, “If you don’t like it, leave!”

#139 Smoking Man on 05.17.19 at 2:23 am

Garth I’m done soon. Stop censoring me you asshole.
Trade in the safe space of cowboy boots for a real mans unafraid exposed toes , flip flops. Walmart had a sale. I could not risist.

https://youtu.be/lDK9QqIzhwk

#140 Smoking Man on 05.17.19 at 2:35 am

I never got sucked into buying a time share condo. Too smart.
I got my prize. The better bull shitter wins.

Now these shity sales people are selling climate change.

Ear buds on.

Listing to this tune.

https://youtu.be/OLE9qXN8Sqo

#141 That's All, She Wrote on 05.17.19 at 4:31 am

“But you do know who owns what and where it came from, it is very easy to be like every other person with limited intelligence that seems to quote” it is the Chinese”, and it is exactly 5 billion not a penny more.”

Chinese? Please. I don’t know if you’ve noticed, but B.C. has had thriving homegrown criminal activity, e.g. marijuana production, opioid distribution, and contraband transshipment through a Hell’s Angels controlled seaport, for decades. All that generates significant cash which must be laundered into the legitimate financial system, somehow.

So B.C. money laundering is certainly not an issue exclusive to foreigners. Though I daresay B.C. banks, real estate developers, casinos and the government of the day rolled out the welcome mat, even going on junkets and opening up sales offices in exotic lands.

For people who have been watching, the evidence has been dribbling out, via court cases, SCMP reporting, and the yeoman work of people like Christine Duhaime and Andy Yan for many years now. And for just as long, vested interests have cried ‘Racism!’ at every turn. Didn’t the mayor stoop to calling Andy Yan racist, while his girlfriend’s mother was cooling her heels in the pokey over embezzlement and a corrupt land deal in China?

Yes, B.C. has been an endless source of tragicomic entertainment for those of us who only visit. As, quite frankly, have been Garth’s myopic and intransigent views on it.

#142 McSteve on 05.17.19 at 5:23 am

I live in a far flung suburb of the GTA and I have read this blog for years. I accepted Garth’s explanation that speculation and laundering in RE was over-stated. Until the first new subdivision in years was constructed in my sleepy town. 2 years in, at least half of the subdivision of very expensive detached homes sit vacant. 100% of the for sale signs feature an Asian real estate agent from Realtors I’ve never heard of. This is in a community which is pretty much 100% WASP. Anecdotal, for sure – but very curious….

News flash – the GTA has a huge community of Asian-Canadians. – Garth

#143 maxx on 05.17.19 at 6:53 am

What a massive waste of money to tell you what might have happened in the past. Move on. – Garth

Oh, I get it, “past performance is no guarantee of future returns.” Might, may, maybe, possibly……

Government, least of all, should definitely not “move on”.

As stated, when people can’t find a doctor, there are bigger issues that should consume government. – Garth

#144 dosouth on 05.17.19 at 7:33 am

Hate to say this Garth but this is a good response to your posts from the Ying/Yang of all this laundering…gov’t will not be able to control the report or investigation, so says Keith.

NDP government no longer in control of B.C. money-laundering issue

Governments always control inquiries the terms of which they set. You are being played. – Garth

#145 jess on 05.17.19 at 7:48 am

anonymous & privilege

money laundering :you don’t see it until you understand it

Placement
The first phase of money laundering, which gives rise to the bags of cash stereotype, is “placement.” Placement is the process of moving money earned from crime into the legitimate financial system. Depending on the crime, that money may be in the form of currency, because those paying money for drugs, illegal gambling, the sex trade or other services from criminals want to have no paper trail linking the money to the crime. Other crimes, such as fraud, may involve transfers directly between bank accounts or funds that are not in cash form. In both cases, money laundering uses transfers and transactions to distance that money from the crime and put it in a form that can be used for legitimate transactions
There are many techniques for placement, including:¡the casino approach so well documented in Vancouver;¡combining dirty cash with legitimate revenues in a cash business;¡smurfing, which involves many small cash deposits;¡false invoicing to make the money look like legitimate business proceeds.Some placement techniques can and do involve real estate. For example, using cash to make mortgage or rent payments could be a placement activity. Another example is paying cash to contractors for custom-built homes or renovations

Layering
The second phase of money laundering is known as “layering.” It is the process of taking money that has been placed into the financial system and further distancing it from any connection with the underlying crime. This is accomplished using a series of transactions that disguise beneficial ownership and look increasingly legitimate. Defining commonly used layering patterns is difficult. All of the complexity of the international financial system can be used in innovative ways to structure a series of transactions that can be difficult or impossible to trace back in practice. Techniques include the use of:¡cross-border transactions, especially in and out of jurisdictions that are tax havens, have strict banking secrecy or are jurisdictions in which it is difficult to gather evidence;¡trusts and corporations to disguise beneficial ownership;¡false import and export invoices to effectively move money across borders;¡borrowing in one jurisdiction for repayment in another;¡nominees or straw-owners who make it look like beneficial ownership has changed when in fact there has been no change.Aborted transactions – where money is placed in a professional’s trust account for a pending transaction and is returned when the transaction is aborted – can also hide the original source of the funds, especially when solicitor-client privilege is involved.Sophisticated layering processes usually require sophisticated professional advisory services from lawyers, accountants, investment bankers, securities dealers and other professionals

integration/extraction
The third phase of money laundering is known as “integration” or “extraction.” This phase makes laundered money available to fund expenditures or activities without giving rise to questions about the source of the funds. There are many integration techniques, including:¡paying wages to employees and dividends to shareholders, real or fake, of corporations used in money laundering;¡sale of assets purchased or built with dirty money that has been laundered to the point where it appears clean; and ¡legitimate returns on investments made fully or in part with laundered money, including returns on real estate investments, such as rents and mortgage payments

Justification

Van Konigsveld11 has suggested that a fourth phase of money laundering be defined, between layering and integration, known as “justification.” Justification refers to the process of making it look like the source of funds is legitimate so that transactions with those funds are “justified.” The concept differentiates between transactions designed primarily to make it difficult to trace the money back to the crime (layering) and ongoing use of laundered money that now looks perfectly legitimate and justified (integration or extraction). Justification transactions are between the layering and integration phases of money laundering and are necessary before funds can be used without concern. The distinction is useful because justification transactions may be a relatively vulnerable type of transaction to target for AML activity

http://www.oecd.org/tax/crime/

==

#146 gfd on 05.17.19 at 7:55 am

DELETED

#147 Danforth on 05.17.19 at 8:00 am

DELETED

#148 dharma bum on 05.17.19 at 8:07 am

Confirmation bias. Just as powerful, just as destructive. This is when people notice, embrace and believe information that confirms beliefs they already held.
– Garth
——————————————————————–
Listen, it don’t really matter to me baby
You believe what you want to believe
You see you don’t have to live like a refugee
(Don’t have to live like a refugee)
Yeah
– Tom Petty

#149 David Hawke on 05.17.19 at 8:13 am

WOW! That sure brought the Cons/tRumptards out from under their bridges, eh!

#150 dharma bum on 05.17.19 at 8:31 am

#71 Prince of Polo

What’s not to love about this post? Jumping to conclusions is my favourite (non-existent) board game!
——————————————————————–

LOVE the reference! My favourite movie!

https://www.youtube.com/watch?v=sDEL4Ty950Q

#151 jess on 05.17.19 at 8:33 am

another self reporting fail

“how the equipment was operated at sea in a manner designed to trick the equipment into reporting the discharge of oily bilge water at permissible levels.

Thursday, May 16, 2019
Greek Ship Management Company, Corporate Vessel Owner, and Chief Engineer Indicted for Falsification of Pollution Records, Obstruction of Justice

A federal grand jury in Wilmington, Delaware, returned a four-count indictment today charging Evridiki Navigation Inc., Liquimar Tankers Management Services Inc., and Nikolaos Vastardis with failing to keep accurate pollution control records, falsifying records, and obstruction of justice, the Justice Department announced.

According to the indictment, the charges stem from the falsification of records and other acts designed to conceal from the Coast Guard inspectors impermissible overboard discharges of oily bilge water from the Nigerian-flagged oil tanker, M/T Evridiki. According to the indictment, on or about March 11, 2019, Vastardis, who was the chief engineer for the ship, failed to maintain an accurate oil record book which fully recorded both the discharge overboard of bilge water that had accumulated in machinery spaces, and any failure of the ship’s oil filtering equipment. Additionally, when the ship’s pollution control equipment was inspected by the Coast Guard, Vastardis made false statements concerning how the equipment was operated at sea, and demonstrated how the equipment was operated at sea in a manner designed to trick the equipment into reporting the discharge of oily bilge water at permissible levels.

The vessel’s management company, Liquimar Tankers Management Services; the vessel’s owner, Evridiki Navigation; and Vastardis are all charged with failing to maintain an accurate oil record book as required by the Act to Prevent Pollution from Ships, a U.S. law which implements the International Convention for the Prevention of Pollution from Ships, commonly known as MARPOL. The defendants are also charged with falsification of records, obstruction of justice, and making false statements.

#152 Feebird on 05.17.19 at 8:33 am

@#139 Smoking Man on 05.17.19 at 2:23 am
Garth I’m done soon. Stop censoring me you asshole.

________________________________________

Please, please be done.
That would be amazing.
thanks in advance.

#153 crowdedelevatorfartz on 05.17.19 at 8:37 am

@#129 Ponzie Pirate
“The report claims that F-150s are the greatest contributor to global warming.
Told you, get rid of them”

*****
I was thinking of trading my F-150 for a bigger, 4 door , crew cab, diesel spewing F-350.

Thanks!

#154 jess on 05.17.19 at 8:44 am

Five of the named defendants reside in Russia and remain fugitives from justice. However, to overcome the inability to extradite the remaining defendants to the United States for prosecution, an unprecedented effort was undertaken to share evidence and build prosecutions against defendants in the remaining countries where they reside, including Georgia, Ukraine and Moldova. The prosecutions are based on shared evidence acquired through coordinated searches for evidence in Georgia, Ukraine, Moldova and Bulgaria, as well as from evidence shared by the United States and Germany from their respective investigations.

The GozNym network exemplified the concept of “cybercrime as a service.” According to the Indictment, the defendants advertised their specialized technical skills and services on underground, Russian-language, online criminal forums. The GozNym network was formed when these individuals were recruited from the online forums and came together to use their specialized technical skills and services in furtherance of the conspiracy.

https://www.justice.gov/opa/pr/goznym-cyber-criminal-network-operating-out-europe-targeting-american-entities-dismantled

Gennady Kapkanov, aka “Hennadiy Kapkanov,” “flux,” “ffhost,” “firestarter,” and “User 41,” age 36, of Poltava, Ukraine, was an administrator of a bulletproof hosting service known by law enforcement and computer security researchers as the “Avalanche” network. This network provided services to more than 200 cybercriminals, including Konovolov and Kazandjian, and it hosted more than 20 different malware campaigns, including GozNym. Kapkanov’s apartment in Poltava, Ukraine was searched in November 2016 during a German-led operation to dismantle the network’s servers and other infrastructure. Kapkanov was arrested for shooting an assault rifle through the door of his apartment at Ukrainian law enforcement officers conducting the search. Through the coordinated efforts being announced today, Kapkanov is now facing prosecution in Ukraine for his role in providing bulletproof hosting services to the GozNym criminal network.

https://www.justice.gov/opa/pr/goznym-cyber-criminal-network-operating-out-europe-targeting-american-entities-dismantled

#155 Felix on 05.17.19 at 8:47 am

Garth, please honour this feline hero on your blog this weekend.

https://www.cnn.com/2019/05/17/celebrities/grumpy-cat-dead-intl-scli/index.html

Perhaps shutting down the blog for a day of respect would also be an appropriate offering for this sad moment for our highly superior species.

Farewell, Grumpy. You will be forever in our hearts.

Meow :(

#156 NoName on 05.17.19 at 8:55 am

#129 Ponzius Pilatus on 05.17.19 at 12:19 am
If you are a climate change denier.
For your own sake, please don’t read this:
https://www.richmond-news.com/bank-of-canada-identifies-climate-change-as-important-economic-weak-spot-1.23824411
———-
The report claims that F-150s are the greatest contributor to global warming.
Told you, get rid of them.

—-

Recently inlisten a blog about dangerous efect of social media placebo, and another one about sugar pill that in some instances is as effective as real medication, and on top.of that doctors were giving theam and up front telling patients that it is placebo pill, all do patients and doctors knew that patients were suffering of incurable medical condition.
Very interesti, but social media placeboo is very scary, very scary.

What brings me to the point.
I was talking to colligue of mine and he is so proud that how with an advent of electric and hybrids smog levels in Toronto went down, and sad part is that he believes is in. Lest call that eloon placebo best and worst example of linear think ing. I was aboutbto brake a math for him but insted i pointed himnto gov web site where it states where majority of toronto smog pollutants come from. I didnt have hart to ask him what happened in 2005 so all of the sudden smog disapired.

What was title of the book about liner think ing that you mentioned other day?

Book ponzi book ponzi, what is it scared to share the knowledge?

#157 NoName on 05.17.19 at 8:59 am

Addendum to privious post.

Way back in a 50s maybe 60s pent a goon conucted a study about about climate change and how it may affect warfare. Do you se them radically changing of troups makeup and hiring more dolfins???

Answer me.ponzi waht is book title, i want to read it.

#158 Q2 Class No. 6131 on 05.17.19 at 9:16 am

Most Canadians believe everything the ‘government’ says. That’s why T2 will be re-elected this fall with a second majority. Canadians are astonishingly gullible.

#159 Oolican on 05.17.19 at 9:25 am

Houses being bought in cash by numbered companies. People walking into casinos with hockey bags full of money to launder. Drug profits from the the fentanyl crisis used to purchase real estate. And you think nothing’s going on? Aptly named blog.

#160 CHERRY BLOSSOM on 05.17.19 at 9:25 am

The dirty money laundering has been happening in Vancouver as of 1984, Since the Chinese found us at EXPO. We have all watched it happening. No matter what you say Garth.

#161 JWD on 05.17.19 at 9:34 am

Recency and confirmation bias. So true. Human nature. We all fight it everyday with limited success. One of the number one reasons to have an advisor.

In other news USD/CAD breaks 1.35

Some expensive broccoli and cauliflower coming this summer.

#162 Bigriders Nonno on 05.17.19 at 9:37 am

Today is National Real Estate Day ina dis wonderful country ofa da house loving people !!

How are you a making da celebration today(or tonight I mighta add winka winka) Garth ??

#163 IHCTD9 on 05.17.19 at 9:49 am

#127 SeaRay on 05.16.19 at 11:52 pm

I think we owe it to ourselves and our kids to put protective measures in place to stop this ‘wild west’ speculation killing the Canadian dream.
___

It’s not the government’s fault that folks have gone ga-ga over houses and have buried themselves in debt.

IMHO – everyone of those debt barons should burn. Then they can teach their children just like the US did. Whatever the government might do will cause more damage than repair.

Natural consequences are painful, but they get the message across in a way that can’t be ignored or easily forgotten, and they are always precisely targeted.

#164 Shawn Allen on 05.17.19 at 10:15 am

China’s dependence on U.S. exports

Andrew McCreath on BNN stated this morning that exports to the U.S. represent just 4% of China’s GDP. And that Exports in total are now down to 18% of GDP. That puts the total lie to the common understanding of how dependent China is on exporting to the U.S. or even on exports in general.

Meanwhile Canada’s exports are roughly 32% of GDP.

Canada is FAR and away more dependent on exports than is China! Who knew? And of course Canada is extraordinarily dependent on exports to the U.S.

#165 not 1st on 05.17.19 at 10:25 am

Yesterday was a dark day for democracy. If you think comrade Horgan looking art where you get your money from is something, then Trudeau and his EU cabal put that to shame with his digital charter which basically another clamp down on free speech. At the same time Trump opened a website to report internet censorship.

Your progressive govt has been weaponized against you and are using dog whistle issues to clamp down harder and harder. That says nothing of what they are doing with their regulatory and policing arms. More tickets, search and seizure and an unhinged CRA who will dog you for every last penny.

But most people are just boiling frogs and actually not that smart.

#166 IHCTD9 on 05.17.19 at 10:40 am

#153 crowdedelevatorfartz on 05.17.19 at 8:37 am
@#129 Ponzie Pirate
“The report claims that F-150s are the greatest contributor to global warming.
Told you, get rid of them”

*****
I was thinking of trading my F-150 for a bigger, 4 door , crew cab, diesel spewing F-350.

Thanks!
___

Yes better unload the F150 now as you don’t want the econazi’s singling out your truck for tire slashing.

I was thinking an old school 1 Ton 4 door 4×4 long box with a 6V-71 Detroit swap (to keep the mosquitoes away!) would be a very reliable and practical vehicle.

Great insurance rates too! :)

#167 James on 05.17.19 at 10:58 am

#139 Smoking Man on 05.17.19 at 2:23 am

Garth I’m done soon. Stop censoring me you asshole.
Trade in the safe space of cowboy boots for a real mans unafraid exposed toes , flip flops. Walmart had a sale. I could not risist.

https://youtu.be/lDK9QqIzhwk
_________________________________________
“Garth I’m done soon?” What did the cigarettes finally get you or is it the cirrhosis of the liver? Inquiring minds want to know!
Every-time you post I think this scene emulates your story.

https://www.youtube.com/watch?v=uVRmXc8PPqk

#168 AB Boxster on 05.17.19 at 11:00 am

#175 Gravy Train on 05.17.19 at 7:43 am

You’ve never taken any undergraduate courses in science or economics, have you? Be honest!


Ok.
Honors Science Degree + BCom Degree.
30 years work in Finance and IT.
Have you finished High school yet?

No, the 533 kWh is the power I’ve sold back to the power company (for $88.90); the power produced by the solar panels (in the past 50 days) is 1,442 kWh (for a saving of $240.52).


So it only costs $240.52 to save the world.
Just think how great it would be if everyone had a system like yours.
We could
all save $240.52, and the multi billion dollar power grid could be completely shut down.
Huh! Who knew?

My decision to invest in solar panels was based on facts and economics, not feelings or ideology.


Hardly. All of your comments are based upon feelings and ideology.

If solar was such an economical solution, then everyone would be rushing to ‘save money’ like you have.
Even with the huge government rebates you received your system will never be cost effective.
The fact that you are currently insulated from the true economic costs of ownership is more an indictment of virtue signalling government idiots than sound economic fundamentals. Yet, that you still think that this is a brilliant economic strategy, shows a lack of real world economics.

Ask someone in Ontario how well their great experiment in solar and wind power has worked out for them. Or more recently, have a look at the city of Medicine Hat.

https://calgaryherald.com/business/energy/the-gas-city-pulls-plug-on-money-losing-13-million-solar-power-project

Maybe give them a call and explain to them what they are missing out on.

#169 buffBart on 05.17.19 at 11:09 am

probably the same buffoons who thought RE crash and interest rate increases were imminent a decade ago

#170 SCD on 05.17.19 at 11:13 am

I agree with your post. I think Horgan is creating division amongst the people of BC. I’m also surprised by how complacent the people of BC are about the privacy violations, restrictions on freedoms, speculation tax (sharing of personal details etc relating to this) and the favouring of unions.

#171 dosouth on 05.17.19 at 11:18 am

“Governments always control inquiries the terms of which they set. You are being played. – Garth”

For now I will certainly give you the knowledge point but we will see when the report comes down…..game on!!

#172 PeterfromCalgary on 05.17.19 at 11:27 am

Oh well at least when they are blaming the Chinese for their problems and talking about “dirty” money they are not talking about “dirty” oil.

Maybe Alberta and the Chinese could form an alliance. The coalition of the “dirty”.

I am so sick of the leftist nonsense coming from Vancouver and Victoria. It is not the Chinese that are the problem it is the damn leftist hippies! BC needs another Bill Vander Zalm!

#173 Stan Brooks on 05.17.19 at 11:58 am

https://www.youtube.com/watch?v=_eLU5W1vc8Y

#174 That's All, She Wrote on 05.17.19 at 12:04 pm

“Andrew McCreath on BNN stated this morning that exports to the U.S. represent just 4% of China’s GDP. And that Exports in total are now down to 18% of GDP. That puts the total lie to the common understanding of how dependent China is on exporting to the U.S. or even on exports in general.”

80% of China’s external national debt is denominated in USD — $50bn/year to service. Plus USD subnational and corporate debt. And all this One Belt One Road stuff they want to build in Africa and Asia needs USD, because who accepts Yuan?

Plus, as someone brighter than me so succinctly put it, GDP in China is an input number, not an output. The Central Committee announces what it will be, and regional governments get busy with good investments, malinvestment and statistical sleight of hand to make it happen. How big is China’s economy, actually? Hard to tell.

If China truly didn’t need trade with the US, why are they screaming so loudly about how they can afford to live without it for a while?

China thinks Trump wants a deal, or they can threaten to outwait him and get a better deal from the next president, forcing him to act soon. But I think Trump has discovered that using “weak on China” as a cudgel to beat Democrat presidential contenders is working real well, keeping Mueller and tax returns off the front page, and the stock market is taking it surprisingly well. His opinion polls are (for him) comparatively good as well. If I was Xi, I wouldn’t hold my breath.

#175 Mattl on 05.17.19 at 12:09 pm

#123 Snowbird on 05.16.19 at 11:44 pm
According to CBRE Global Living 2019, the most expensive cities in the world are

1. Hong Kong 1,235,220 USD (average property price)
2. Singapore 874,372
3. Shanghai 872,555
4. Vancouver 815,322
5. Shenzhen 680,283

the rest of the top 10 are LA, NY, London, Beijing and Paris.

How can Vancouver make the top 5 based on economic fundamentals?

———————————————————–

Duh, cause of Canadian moisters and their lust for RE. Everyone out here knows that millennial’s pushed homes from 1MM to 3MM

#176 Montreal same problem on 05.17.19 at 12:10 pm

Much of the money laundering in real estate has also been happening in Montreal, the only difference being that less of it is Chinese and more from Russia, Iran, and Africa. And the Quebec government looking the other way, unlike that of BC. Please google on real estate and money laundering in Montreal, preferably in French, and you will see loads of stories of mansions bought by sons if dictators, Irian-fled govt embezzlers, and so on, notably in districts such as Outremont and Westmount.

#177 Robert Ash on 05.17.19 at 12:12 pm

I live in BC, and my impression, of the Provincial NDP is that they are a Party hanging on and very interested in maintaining their status ; This is a party that to Govern, was willing to cobble together a few other outside the belt Politicians, to form a Government. If we are well represented, and most BC residents, in the entire Province are supportive of the Pipeline, for example, then I question Why … no referendum. Why not ask the folks you represent… Well because Father Knows Best…
The inclusion of China in the WTO has resulted in 650 Million folks, entering the major markets of the world, in the last 35 years…. Why is anyone so surprised that from these 650 Million new workers, there wouldn’t be a lot of successful, business people, emerging from a Developing Country… A Country that was courted for their Inexpensive labor pool, by Multinationals… The interest of successful, foreign business people, in our Democratic countries, is of no surprise to me… and yes Vancouver is the focus for some Chinese to invest … but so is Sydney, Auchland, Melbourne, Perth, Bangkok, Kuala Lumpur, Hong Kong, London, Paris, Yangoon etc… Big surprise… Rich people travelling to invest in locations, they would like to live… This is addressed with a Foreign buyers tax… and it is in place…
I think Garth is correct, in that there are a lot of our Leaders, looking for a great story and cause to get behind, but this is really a lot of Marginal Leaders, trying to confirm their importance.

#178 NoName on 05.17.19 at 12:20 pm

Erlier i took younger one to see his doc, just regular checkups, and in parking garage we sea this. Poor soul surfers from incurable desise of self righteous entiltelmant of electrc car morbus (disise). I am not sayin all electric car driver are an ______, but this one definitely is, steeling a hydro from hospital…

https://imgur.com/a/oTQnFOb

Whats the name of the book pozni?

#179 AGuyInVancouver on 05.17.19 at 1:12 pm

#123 Snowbird on 05.16.19 at 11:44 pm
According to CBRE Global Living 2019, the most expensive cities in the world are

1. Hong Kong 1,235,220 USD (average property price)
2. Singapore 874,372
3. Shanghai 872,555
4. Vancouver 815,322
5. Shenzhen 680,283

the rest of the top 10 are LA, NY, London, Beijing and Paris.

How can Vancouver make the top 5 based on economic fundamentals?
_ _ _
It’s pretty clear looking at those top five cities what they all have in common. Some have just made a cottage industry out of denying it.

And really Garth, Screwed Canadian Millenial gets banned yet SmokingWreck gets to stay after #139??

#180 Entrepreneur on 05.17.19 at 1:17 pm

But, but, leaders of every level of government must keep in mind to protect the middle class, especially the lower end.

And every level of government must protect the people that live within borders that are the taxpayers.

The middle class needs to be encouraged to develop and increase, from the ground up.

And if not then what is the point of having communities (neighbours, schooling, etc.), having a nation with borders.

To me, taxpayers come first and the middle class held on a pedestal as they are the ones that make our country, foundation.

And one in leadership should keep all the data, facts and figures (and make sure everyone is following the protocol). No more mind games.

#181 James on 05.17.19 at 1:19 pm

#165 not 1st on 05.17.19 at 10:25 am

Yesterday was a dark day for democracy. If you think comrade Horgan looking art where you get your money from is something, then Trudeau and his EU cabal put that to shame with his digital charter which basically another clamp down on free speech. At the same time Trump opened a website to report internet censorship.

Your progressive govt has been weaponized against you and are using dog whistle issues to clamp down harder and harder. That says nothing of what they are doing with their regulatory and policing arms. More tickets, search and seizure and an unhinged CRA who will dog you for every last penny.

But most people are just boiling frogs and actually not that smart.
_________________________________________
Selfie boy will be gone in October. Even if we replace him with a cigar smoking monkey that types I would expect the country to sail on to better shores.

#182 Remembrancer on 05.17.19 at 1:21 pm

Not looking for Mil bashing, maybe there’s an opportunity here for buying / selling of pension assignments – Anonymous 30 YO G&M reader agrees to keep working and eligible for the pension, you pay her $680/month and she signs the pension over at some point with commuted value based on a set rate of return…

Takers?

https://www.theglobeandmail.com/investing/personal-finance/gen-y-money/article-asphyxiation-by-pension-amid-competing-financial-pressures-one/

OK, maybe there’s a little bit of bashing – give your head a shake lady but the worst is the G&M marketing dept for this bit of patting on the head and pandering…

>>>>>
-Millennial money-

“In recognition that young adults are saving differently than previous generations, we created the Real Life Money Launcher. It’s an online tool for young adults that helps them save and invest for multiple goals like travel, weddings, home ownership and retirement.”
<<<<<

Jeez, when has saving and investing for multiple goals not been a concern and an effort for people not independently wealthy?

#183 n1tro on 05.17.19 at 1:21 pm

#49 westsider on 05.16.19 at 6:27 pm
I work at a studio next to the Lambourgini/Bugatti dealership in Vancouver which is next to the Bentley/Jag dealership, which is 2 blocks from the BMW dealership which is across the street from the Rolls dealership on Burrard. The average income in Vancouver is $70,000. The average price of any of these cars is about $250K+.At 3:30-4:00 p.m.after school I watch asian teenagers picking up any colours of race cars and putting on an “N” sticker. I saw it today and I have seen it for the past 10 years. They must have incredible after school jobs.
————————–
Can someone enlighten me on the meaning of the “N” badge the kids are putting on their cars?

#184 AK on 05.17.19 at 1:25 pm

#174 That’s All, She Wrote on 05.17.19 at 12:04 pm

“China thinks Trump wants a deal, or they can threaten to outwait him and get a better deal from the next president, forcing him to act soon. ”
====================================

LMFAO. The Chinese leaders must be watching too much CNN and MSNBC, that they believe will be dealing with the next President.

They will find out on November 2020, that President Trump will be in office for another 4 years.

#185 AK on 05.17.19 at 1:29 pm

#174 That’s All, She Wrote on 05.17.19 at 12:04 pm
“Andrew McCreath on BNN stated this morning that exports to the U.S. represent just 4% of China’s GDP. And that Exports in total are now down to 18% of GDP. That puts the total lie to the common understanding of how dependent China is on exporting to the U.S. or even on exports in general.”
====================================
If McCreath believes these numbers coming from China, he must be suffering from TDS.

#186 James on 05.17.19 at 1:35 pm

Sock boy just earned himself (or should I say peopleself) a feather in his dunce cap.
Steel deal is now done and the US backed off!

#187 % on 05.17.19 at 1:35 pm

HSBC offers 10 year mortgage in Canada for 3.24%.

…could be that themonly adjustment tomthe stress test will be if borrowers get a 10 year.

Game on…

#188 Lost...but not leased on 05.17.19 at 1:45 pm

Former B.C. casino supervisor blows whistle on when Macau-style money laundering may have exploded

https://globalnews.ca/news/5215614/money-laundering-canada-bc-casinos-whistleblower-journal/

QUOTE:

Muriel Labine liked her job at the Great Canadian Gaming casino in Richmond, B.C.

She was a dealer supervisor, monitoring the integrity of the gambling happening around her. Labine hoped to work for Great Canadian until she retired.

But in May 1997, the NDP government increased bet limits from $25 to $500 per hand, introduced baccarat tables and extended gambling hours.

That’s when, she says, everything changed.

Within days, Labine noticed the VIP gamblers start to come in. But it was strange, she says, that these high rollers were almost always accompanied by young Asian men who gave them cash. Many employees in the Richmond casino started to call these young men “Human Teller Machines.”

====================

Excellent article:

Basic synopsis is that gambling in BC was relatively low key till late 1990’s…the NDP Gov’t allowed bets up to $500 as well as baccarat…(baccarat appears to be a favourite game for money launderers..hmmmm).

NOTE: Recall BC NDP has BingoGate scandal as well as Ex BC Premier involved in a casino license scandal.

From Sam Coopers article..this issue seems to go back 20+ years..it simply reached a head when RE prices in BC literally doubled a few years back.

Fallout:
City of Richmond cut from casino revenues peaked at around $20 Million (was barely $2 million 20 years ago)now in decline the past few years.

City of Vancouver PARQ casino…less than 2 years old is bleeding MILLION$$$

They are in the process of building another casino in Ladner….across river from Richmond.

#189 jess on 05.17.19 at 1:49 pm

WOW!

Ever wonder why mr. trump doesn’t say…” Russia if you are listening? Among the ones named these

…”Five Russian nationals charged in the Indictment who remain fugitives from justice include:

Vladimir Gorin, aka “Voland,” “mrv,” and “riddler,” of Orenburg, Russia. Gorin was a malware developer who oversaw the creation, development, management, and leasing of GozNym malware, including to Alexander Konovolov.

Konstantin Volchkov, aka “elvi,” age 28, of Moscow, Russia, provided spamming services to cybercriminals. Volchkov conducted spamming operations of GozNym malware on behalf of the conspiracy. The spamming operations involved the mass distribution of GozNym malware through “phishing” emails. The phishing emails were designed to appear legitimate to entice the victim recipients into opening the emails and clicking on a malicious link or attachment, which facilitated the downloading of GozNym onto the victims’ computers.

Ruslan Katirkin, aka “stratos,” and “xen,” age 31, of Kazan, Russia, resided in Khmelnytskyi, Ukraine, during the time frame of the charged conspiracy. Katirkin, like Krasimir Nikolov, was a “casher” or “account takeover specialist” who used victims’ stolen online banking credentials captured by GozNym malware to access victims’ online bank accounts and attempt to steal victims’ money through electronic funds transfers into bank accounts controlled by fellow conspirators.

Viktor Vladimirovich Eremenko, aka “nfcorpi,” age 30, of Stavropol, Russia, and Farkhad Rauf Ogly Manokhin, aka “frusa,” of Volgograd, Russia, were “cash-outs” or “drop masters” on behalf of the GozNym criminal network. Like Alexander Van Hoof, Eremenko and Manokhin provided fellow members of the conspiracy with access to bank accounts they controlled that were designated to receive stolen funds from GozNym victims’ online bank accounts. Manokhin was arrested at the request of the United States while visiting Sri Lanka in February 2017. Following his arrest, Manokhin was released on bail but was required to remain in Sri Lanka pending the outcome of his extradition proceedings to the United States. In December 2017, Manokhin unlawfully absconded from Sri Lanka and successfully fled back to Russia prior to the conclusion of the extradition proceedings.

Other agencies and organizations partnering in this effort include the United States Secret Service, the National Cyber-Forensics and Training Alliance (NCFTA) in Pittsburgh and the Shadowserver Foundation. The Justice Department’s Office of International Affairs provided significant assistance throughout the investigation and spearheaded the efforts to enable the United States to request searches, arrests, and extraditions in the foreign countries as well as the sharing of evidence with those countries through Mutual Legal Assistance Treaty requests.

The case is being prosecuted by Assistant U.S. Attorney Charles A. “Tod” Eberle, Chief of National Security and Cybercrime for the Western District of Pennsylvania.

https://www.justice.gov/opa/pr/goznym-cyber-criminal-network-operating-out-europe-targeting-american-entities-dismantled

=======
Why the hell is a Russian bank communicating with a server that belongs to the Trump Organization, and at such a rate?”

Why was the Trump Organization’s domain, set up to send mass-marketing e-mails, conducting such meagre activity? And why were computers at Alfa Bank and Spectrum Health trying to reach a server that didn’t seem to be doing anything?

Was this evidence of an illicit connection between Russia and the Trump campaign? Or was it merely a coincidence, cyber trash, that fed suspicions in a dark time?

https://www.newyorker.com/magazine/2018/10/15/was-there-a-connection-between-a-russian-bank-and-the-trump-campaign

#190 Where's The Laundry Greedeau? on 05.17.19 at 1:54 pm

Re: #40 TS on 05.16.19 at 5:54 pm
Since nobody seems to really know what is going on, it seems like common sense to err on the side of transparency. Worried about tax evasion? Mandatory registration of real estate transactions ook into the BIGGESTwith the CRA seems like a prudent idea. Final beneficiaries need to be on the registry, no numbered companies. Heavy fines for lawyers, agents, and banks who don’t follow fintrac guidelines. Rewards for reporting suspicious transactions. Real information (not these bs statcan and Bloomberg studies) and transparency would put the question to rest once and for all. There is no reason to oppose these measures unless you’re hiding something.
++++++++++++++++++++++++++++++++++==
And when we’re finished with this, we can look into the BIGGEST money laundry, THE STOCK MARKET. Company valuations not close to the real story.
If banks all over the world have been fined billions after being caught laundering money, and currency rigging (https://www.bbc.com/news/business-48292946) who’s to say that the stock market isn’t the same laundry?
Looking into ALL financial transaction markets where there MAY be a chance of laundering should be looked into.
Real estate is peanuts compared to the stock market…..How many numbered companies are there? Start there.
Oops, can’t say that, that’s Garth’s area, wooooooooo….

#191 n1tro on 05.17.19 at 2:35 pm

DELETED

#192 n1tro on 05.17.19 at 2:37 pm

DELETED

#193 bdwy sktrn on 05.17.19 at 3:04 pm

china trade talks stalled.

sale on stocks incoming.

#194 Yuus bin Haad on 05.17.19 at 3:05 pm

I’ve never had a problem with my AML forms when opening a new account – neither has my buddy Bob Loblaw.

#195 bdwy sktrn on 05.17.19 at 3:07 pm

Can someone enlighten me on the meaning of the “N” badge the kids are putting on their cars?
——————-
n=new driver
2 yr graduated lic.

#196 Susan McPhee on 05.17.19 at 3:08 pm

This blog’s arguments regarding housing would fall apart if the foreign money is true. So clearly it fights any suggestion of foreign money in Canadian RE.

Author, it’s too obvious. Be objective eh.

#197 That's All, She Wrote on 05.17.19 at 3:15 pm

Here’s to all the Cowboys celebrating a certain issue that looks like it may close down around 7% today. You know who we are.

#198 flatlander on 05.17.19 at 3:29 pm

Horgan’s own words: he’s interested in “how we got to here” both with money laundering and gas prices. The investigations he’s called are all about laying blame on the previous Liberal government rather finding a better way forward. Huge waste of public money for political ends.

#199 TS on 05.17.19 at 3:44 pm

#96

“Final beneficiaries need to be on the registry, no numbered companies.”

What diff does that make? My company has a number, but also a name. Either way you can search a company summary on the corporate registry.

I set up my company for 100% lawful reasons.

Why is it any of your business?

———————————-

If you set up for lawful reasons you have nothing to worry about right? It is only anybody’s business if you are leaching off the rest of society. The difference that transparency makes is making it easier for an institution with limited resources (CRA) to connect the dots for funny business. If you’re just a guy who reports poverty line levels of income you’re just a poor dude to the CRA. If you’re a guy who reports poverty level income but has 10 west Van properties, it may be worth figuring out why. The more layers this information has to go through to unwind, the harder it is to get to the bottom of. And this isn’t an exaggerated example. Declared income taxes paid and real estate values are almost perfectly inversely correlated in the GVR. That is why it is everyone’s business.

#200 Lorne on 05.17.19 at 5:30 pm

#198 flatlander on 05.17.19 at 3:29 pm
Horgan’s own words: he’s interested in “how we got to here” both with money laundering and gas prices. The investigations he’s called are all about laying blame on the previous Liberal government rather finding a better way forward. Huge waste of public money for political ends.
…….
Funny, many people do not see this as a waste of public money….nice to get the details and ensure consequences are enacted on those who allowed this property bubble to inflate.

#201 Vampire studies (post grad) on 05.17.19 at 9:29 pm

199 TS – I take it you submit readily to cavity searches because you have nothing to hide?

I can own ten properties with 10 different companies. All legit. I can choose to declare nothing more than the money I draw from those companies as a wage. Perfectly legal. Hiding nothing.

#202 The Great Gordonski on 05.17.19 at 10:41 pm

#195 That’s all SW.

Funny, I was celebrating CAE jumping $5 p/s today. I’m jubilant that I was smart to buy that issue below $15 when others were downgrading. Good for me, bad for them. I’m up $25 per share, plus the sweet succulent divvie. Learn to read a balance sheet and your path to success is guaranteed.

#203 Gravy Train on 05.18.19 at 6:21 am

#158 AB Boxster on 05.16.19 at 1:28 pm
“Not my points gravy boat. It’s just science and economics.” Which scientific or economic principles or theories are you referring to? Or are you just blowing smoke?

#168 AB Boxster on 05.17.19 at 11:00 am
“Just think how great it would be if everyone had a system like yours […] the multibillion-dollar power grid could be completely shut down. Huh! Who knew?” Absurd comment.

“If solar was such an economical solution, then everyone would be rushing to ‘save money’ like you have.” Most won’t (or can’t) crunch the numbers.

“Even with the huge government rebates you received your system will never be cost-effective.” I am earning an annual after-tax rate of return of 10.81% (12.81% if there’s 2% annual inflation in power costs) for each of the next 25 years. My payback is 8.5 years. How is that not cost-effective?

“The fact that you are currently insulated from the true economic costs of ownership is more an indictment of virtue-signaling government idiots than sound economic fundamentals.” Define ‘true economic costs of ownership’. And why would the power company not charge me for those so-called true economic costs of ownership? Which sound economic fundamentals are you referring to? Or did you just pull that expression out of your ass?

“Yet, that you still think that this is a brilliant economic strategy […]” My estimated annual savings are $1,748. Invested at 7% over the next 25 years, the future value of those savings is $110,559. Assuming annual inflation in power costs of 2%, the future value becomes $132,387. Not a bad return on an initial investment of $14,925.

“[…] shows a lack of real-world economics.” Did you mean to say it shows a lack of understanding of real-world economics? On whose part? Yours? :)

“Ask someone in Ontario how well their great experiment in solar and wind power has worked out for them. Or more recently, have a look at the city of Medicine Hat.” Irrelevant to my situation.

“Maybe give them a call and explain to them what they are missing out on.” Moronic comment. :)

On an unrelated topic: Do you still own those 30-year bonds? How’s that working out for you? :P

#204 Westcdn on 05.18.19 at 11:10 am

I respected my mother and will punish for my daughters – they are spirited don’t my help. I lament the loss of my “y” chromosome but the “x” carries on. I never let my mother to fight my battles although she was capable of ripping out the heart of a grizzly. There is much of her in me but less than my father. She could be weak so I never knew when to supply backbone – remember she was a single mother. I don’t get to choose but I will carry on for their sprit.

My little pomme de terres survived – lets see if it worth the effort

#205 AB Boxster on 05.18.19 at 11:50 am

#203 Gravy Train on 05.18.19 at 6:21 am

Sure.

You’re brilliant.
Everyone else is an idiot because they can’t crunch the numbers. Your arrogance is monumental.

But you still didn’t answer as to whether you’ve graduated High School yet.