The Reality Check: If everyone rushes for the exit at once, the fund collapses. To prevent a fire sale of assets at rock-bottom prices, managers have no choice but to lock the gates.
You can’t have your money because someone richer than you wants theirs.
At this stage of empire decline real estate is a risky investment.
It was good from 1990 till 2022 but since then interest rates cannot go lower, or higher, we are now trapped in a monetary system and economic system end state paralysis which means real estate prices will either stagnate or fall.
Most people cannot accept this because of the 3 plus decades when real estate was a sure bet. But things have changed and its now a risky gamble, at best.
What we are seeing with the gating of Canadian real estate funds is a textbook example of a liquidity illusion coming apart in real time. For years investors were told they could have the best of both worlds steady income from long term real estate assets combined with the ability to cash out when they pleased. That premise was always structurally fragile because the underlying assets were never liquid to begin with. When the market turned the promise collapsed and investors discovered that what they actually owned was an IOU tied to assets that might take years to convert into cash.
This is not just about individual misfortune. The scale of the freeze means the effects will echo through the real estate and construction sectors and into the broader economy. With C$30 billion locked up developers are being starved of the funding they rely on to start new projects. That funding gap will not only slow construction now but may plant the seeds of a housing shortage in the next decade precisely when demographic and economic pressures will demand more rental units and homes not fewer.
I know there's a word for this
You can’t have your money because someone richer than you wants theirs.
Reminds me of coinbase during a major market move.
Exactly!
I know a couple people that are trapped in bad or stalled projects right now.
Pain
Are they covid boosted?
Truck drivers?
Haha I have no idea if they took the covid booster but they aren’t truck drivers.
half if not most of Canada support freezing and seizing bank accounts of anyone who protested vaccine mandates
the deputy PM/finance minister was and is and will always be a cunt bag
At this stage of empire decline real estate is a risky investment.
It was good from 1990 till 2022 but since then interest rates cannot go lower, or higher, we are now trapped in a monetary system and economic system end state paralysis which means real estate prices will either stagnate or fall.
Most people cannot accept this because of the 3 plus decades when real estate was a sure bet. But things have changed and its now a risky gamble, at best.
I agree
What we are seeing with the gating of Canadian real estate funds is a textbook example of a liquidity illusion coming apart in real time. For years investors were told they could have the best of both worlds steady income from long term real estate assets combined with the ability to cash out when they pleased. That premise was always structurally fragile because the underlying assets were never liquid to begin with. When the market turned the promise collapsed and investors discovered that what they actually owned was an IOU tied to assets that might take years to convert into cash.
This is not just about individual misfortune. The scale of the freeze means the effects will echo through the real estate and construction sectors and into the broader economy. With C$30 billion locked up developers are being starved of the funding they rely on to start new projects. That funding gap will not only slow construction now but may plant the seeds of a housing shortage in the next decade precisely when demographic and economic pressures will demand more rental units and homes not fewer.