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Speaker 1: Fellow conspiracy realist. We're returning to you with a classic episode,

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Speaker 1: and I was talking about this off air. I'm getting

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Speaker 1: increasingly weirded out by how prescient this stuff seems to

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Speaker 1: be and how things keep accelerating. Back in Oh gosh,

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Speaker 1: what was it twenty twenty, we looked at foreign investment

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Speaker 1: in the housing crisis.

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Speaker 2: Yeah, Ben, I think you probably see some of the

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Speaker 2: same Instagram accounts that I do. But I follow an

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Speaker 2: account showing houses for sale in Japan and how incredibly

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Speaker 2: affordable they are, And boy, oh boy, I'm trying to

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Speaker 2: be that kind of foreign investment in real estate in

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Speaker 2: the other direction. But we're not talking about individuals coming

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Speaker 2: in and buying homes for their own personal use. We're

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Speaker 2: talking about real estate as a scaled business model with

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Speaker 2: the kind of money that absolutely trumps individuals who just

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Speaker 2: want to own a home for their family, you know,

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Speaker 2: and have some sort of thing to pass down to

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Speaker 2: their kids.

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Speaker 1: It's really harder and hard to do.

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Speaker 2: That when you got all this foreign money coming in

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Speaker 2: and buying up all these available properties.

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Speaker 3: And baby, we're talking about the kind of profits that

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Speaker 3: have quarterly earnings where you get shares and then you

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Speaker 3: get a little bit of money on top of all

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Speaker 3: those shares you bought in those huge corporations.

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Speaker 1: We've all rented from.

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Speaker 2: You know, I think over the years, organizations that probably

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Speaker 2: are doing some things like this.

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Speaker 1: I certainly have. We also know that even back in

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Speaker 1: twenty twenty, there was this immense generational divide, not just

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Speaker 1: in the United States, but also in places like Canada,

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Speaker 1: because homes were becoming increasingly unaffordable due to this vast

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Speaker 1: web of obscure financial corporate conspiracies and money laundering. You know,

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Speaker 1: one for all the so called boomers in the crowd,

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Speaker 1: houses were way cheaper. You know, I've heard the stories

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Speaker 1: where someone's like, why don't you just buy a house? Ben,

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Speaker 1: Back in my day, I had a part time job

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Speaker 1: as a short order cook, and I made a long

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Speaker 1: term investment in a house. It cost me three onions,

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Speaker 1: which was above market rate at the time.

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Speaker 2: And Ben back to the whole buying a house in

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Speaker 2: Japan thing, like, I'm seeing some of these properties showing

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Speaker 2: up for like forty.

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Speaker 1: Thousand US dollars.

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Speaker 2: I would, however, argue that it ain't just as simple

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Speaker 2: as me swooping in and buying up that property. There's

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Speaker 2: gonna be some legal red tape that goes along with

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Speaker 2: being a foreigner coming in and buying a house in

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Speaker 2: Japan that maybe isn't quite as prohibitive on this side

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Speaker 2: in terms of like what we allow foreign investors.

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Speaker 1: To do, especially now. Yes, but what if you're a corporation.

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Speaker 2: Now you're a person and you deserve to be treated

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Speaker 2: as such.

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Speaker 1: Let's roll the tape from UFOs to psychic powers and

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Speaker 1: government conspiracies. History is riddled with unexplained events. You can

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Speaker 1: turn back now or learn this stuff they don't want

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Speaker 1: you to know. A production of iHeartRadio. Hello, welcome back

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Speaker 1: to the show. My name is Matt Our, compatriot Noel

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Speaker 1: Is on Adventures they call me Ben. We are joined

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Speaker 1: today with our super producer Seth Nicholas, the Shadow Johnson.

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Speaker 1: Most importantly, you are you. You are here, and that

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Speaker 1: makes this stuff they don't want you to know. We

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Speaker 1: live in interesting times, ye, but some things are the

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Speaker 1: same no matter where you go. You know, if you

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Speaker 1: live in the US, right like, and if you live

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Speaker 1: in many other places, you're probably taught that owning a

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Speaker 1: home is one of those key pieces of the dream.

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Speaker 3: Right, Oh yeah, that that is sold to us, at

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Speaker 3: least in the US, because that's the only experience I

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Speaker 3: have very early on in childhood.

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Speaker 1: What is it?

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Speaker 3: School, college, maybe marriage, depending on where you live, and

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Speaker 3: then a house and kids, and then what death? No job,

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Speaker 3: job comes in there somewhere.

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Speaker 1: Yep, yep, there's a It's weird because there's a tremendous

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Speaker 1: amount of social pressure that tells us buying a home is,

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Speaker 1: at least in this country, a step along the path

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Speaker 1: of becoming a socially acceptable adult. That's what I would

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Speaker 1: call it. And you're right, Matt, it's up there with

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Speaker 1: other milestones, having children, getting married, graduating, and so on.

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Speaker 1: This is, of course not true. You can and should

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Speaker 1: live your life as you see fit. The thing is,

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Speaker 1: we're also susceptible to peer pressure. I do want to

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Speaker 1: point out, for anybody who may feel sore about living

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Speaker 1: in the and not owning a home, it is quite

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Speaker 1: common in many other parts of the world for people

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Speaker 1: to live in multi generational family homes. Like it's it's

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Speaker 1: kind of weird to have enormous pressure on an individual

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Speaker 1: to buy a home, especially before they can afford one.

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Speaker 1: It's it's even it's even stranger, Matt because a casual

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Speaker 1: glance at economic trends post World War Two show that

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Speaker 1: the American dream is increasingly mythical for many, many people.

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Speaker 1: We've got decades of skyrocketing costs, you know, stagnant wages,

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Speaker 1: accelerating inequality, a decline in livable circumstances. They've all contributed

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Speaker 1: to a slow burned crisis, a kind of macroeconomic dark

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Speaker 1: night of the soul. And you know, you and I

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Speaker 1: or are no different really from anybody else. We all

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Speaker 1: feel this pressure, right, you said from a young age

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Speaker 1: you were taught this as well. Oh, yeah, for sure.

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Speaker 3: I mean I think it's put on an individual, especially

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Speaker 3: if their guardians or their parents own a home, or

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Speaker 3: you know, are paying off a mortgage, which we'll get

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Speaker 3: into and we've talked about before on this show.

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Speaker 1: There's this pressure of.

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Speaker 3: I should do what they do to be because I

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Speaker 3: want to be like them in some way, hopefully if

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Speaker 3: it's going well with your folks or your guardians or

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Speaker 3: whoever you're with. But then also there's that societal pressure

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Speaker 3: of I mean, think about the stories that are told

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Speaker 3: to us, the movies that we watch, the books that

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Speaker 3: we read. It is so so common to have an

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Speaker 3: individual start a family with a home being the cornerstone

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Speaker 3: of that thing.

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Speaker 1: That unit. Yeah, because it's a legacy, right is the

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Speaker 1: place where you can play at a tree that you

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Speaker 1: will not be alive to see. You know, it's it's

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Speaker 1: it's it's fundamental, it's it's human. Uh. It's also and

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Speaker 1: plus equity and plus equity. Yes, but what's that line

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Speaker 1: from Oh Brother, where art thou ye ain't no kind

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Speaker 1: of man if you don't own land? Uh? And that

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Speaker 1: that reasoning, Yeah, that reasoning is you know, it's valid

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Speaker 1: in many ways. But there's another factor at play here,

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Speaker 1: and that's what our episode's about today. It's one that's

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Speaker 1: often unreported. They're not as widely reported as it should

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Speaker 1: be amid all the think pieces and the allegations and

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Speaker 1: the blame games and speculation and scapegoating. And our question

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Speaker 1: is this, why do houses cost so much? Who's buying them? Well?

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Speaker 1: Here are the facts, and Matt, I'm gonna defer to

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Speaker 1: you on this because you know, for a long time,

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Speaker 1: I've just been too sketchy to commit to buying a home.

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Speaker 1: I didn't know where I was going to be in

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Speaker 1: six months or a year, so I i you've got

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Speaker 1: some kind of freedom of movement. I've got. Uh. All

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Speaker 1: I'm saying is that I understand intellectually the process, but

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Speaker 1: not experientially.

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Speaker 3: M Now, well I can. I can certainly speak to that.

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Speaker 3: I can speak to this. Any homeowner can speak to this.

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Speaker 3: The process of buying a home, especially for the first time. Oh,

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Speaker 3: it's it's a mixed bag of emotions. Let's say you're

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Speaker 3: and it's not. It's not easy. It's not a casual

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Speaker 3: thing you can do.

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Speaker 1: It is a.

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Speaker 3: It's a process that is at times exciting. It's thrilling,

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Speaker 3: Oh my gosh, a home. We're gonna We're really gonna

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Speaker 3: do this be I mean that's mostly because of how

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Speaker 3: expensive it is and you realize that you're putting all

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Speaker 3: of your money into something. And other times it's really tedious.

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Speaker 3: You go through, like good Lord, the amount of documents

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Speaker 3: you have to sign to purchase a home. It's mind boggling.

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Speaker 3: And I don't care. I don't care if you're the

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Speaker 3: kind of person that reads every terms of service document.

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Speaker 3: When you go through the process of buying a home

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Speaker 3: and signing all those documents, you skim and and you

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Speaker 3: have to do it unless you are blessed and wealthy

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Speaker 3: enough to have an attorney do so for you. But

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Speaker 3: in the end, it's just an exhausting process and it

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Speaker 3: is cavernous in a way, in a way I think

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Speaker 3: as a barrier to make it not I think it's

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Speaker 3: purposefully made.

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Speaker 1: Not an easy process at least for the lay person

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Speaker 1: or the regular old person like you or I to

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Speaker 1: make a purchase.

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Speaker 3: But in the end, if you have the money for it,

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Speaker 3: you whoever you are, however you got that money, can

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Speaker 3: buy a home inside the United States at least that's right.

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Speaker 1: And this may be so thing that Seth the Shadow

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Speaker 1: may speak to as well as Seth off air. Off air,

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Speaker 1: we were like, hey, Seth, do you have do you

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Speaker 1: have recording equipment? If the spirit moves you jump in

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Speaker 1: so please feel free to share your war stories here

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Speaker 1: if you wish, any excuse really to see that magnificent

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Speaker 1: pandemic beard you've grown pop up on the zoom chat.

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Speaker 1: Yes there is.

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Speaker 3: Oh yeah, do you give us permission to use your

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Speaker 3: likeness on the video?

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Speaker 1: Yes? Yes, nice, Okay, we'll send the contract over as well, Seth.

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Speaker 1: But the point holds, and it's a very important point

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Speaker 1: in the US anybody with enough cheddar can buy a house.

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Speaker 1: There are various laws. There are many laws actually that

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Speaker 1: are meant to prevent unscrupulous hoas or unscrupulous real estate

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Speaker 1: magnates or politicians from stopping someone from buying a house.

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Speaker 1: Right if everything goes well, it rarely does. If everything

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Speaker 1: goes well, the process looks something like this, and please

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Speaker 1: you guys jump in and let me know your experiences.

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Speaker 1: And if you're listening along and you're in the middle

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Speaker 1: of a home buying process now while fighting COVID nineteen,

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Speaker 1: the hats off, you know what I mean. Power through.

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Speaker 1: First you have to figure out what you can afford.

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Speaker 1: And then usually, unless you're doing an all cash transaction,

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Speaker 1: you get pre approved for a sort of financial face

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Speaker 1: tattoo called a mortgage. This is going to depend on

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Speaker 1: the decision of a bank. The bank's going to ask

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Speaker 1: you a bunch of questions and they're all questions that

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Speaker 1: are well as long as they're scrupulous. They're all questions.

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Speaker 1: They're due diligence. The bank wants to know how much

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Speaker 1: you can pay each month, and the main things they're

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Speaker 1: looking at or stuff like how much you are in

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Speaker 1: an income versus how much you wowe in debt and

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Speaker 1: what kind of debt.

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Speaker 3: And how much liquid cash you have to put down

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Speaker 3: on a home before the mortgage even comes into it.

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Speaker 3: That becomes a big thing.

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Speaker 1: Yeah, ten percent down versus twenty percent down makes a big,

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Speaker 1: big difference in your life and maybe the lives of

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Speaker 1: your children and your loved ones. Second, and it's called

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Speaker 1: mortgage insurance. Second, and this is something that I think

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Speaker 1: is familiar to you guys. This is the part where

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Speaker 1: I see a lot of hilarity coming in. You have

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Speaker 1: to determine your needs, either by yourself or with your

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Speaker 1: family unit. And that's when you learn very quickly that

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Speaker 1: some people have different ideas of what a need is

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Speaker 1: versus what a want is. One example from real life,

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Speaker 1: a friend of mine, he was very very sold on

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Speaker 1: getting this cool house that no kidding, had a secret

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Speaker 1: passage in the living room slash library, like like a

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Speaker 1: fake shelf that would turn on one side and open

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Speaker 1: up and it held real books and then inside you know,

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Speaker 1: it's just like a smaller I'll be honest, not a

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Speaker 1: super impressive room, but it's a secret passage that's so cool.

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Speaker 1: Completely worth it, completely worth it, right, I know, I

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Speaker 1: was very pro secret passage too. The problem is, as

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Speaker 1: his spouse gently pointed out, that this house was in

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Speaker 1: the middle of nowhere. It was about three hours away

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Speaker 1: from this guy's job, and he had somehow convinced himself,

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Speaker 1: at least for a time, that he would be okay

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Speaker 1: with a six hour commute. So you have to be

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Speaker 1: brutally honest about what you and your family members or

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Speaker 1: the people you want to live with you actually need

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Speaker 1: versus what they actually want. Do we need an indoor pool, Yes, yes.

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Speaker 3: But we cannot have one because we can't get one.

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Speaker 1: Yeah. I wonder Seth, like.

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Speaker 3: I wonder about this next part with you, because the

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Speaker 3: home searching process when I was doing it back in

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Speaker 3: twenty twelve twenty thirteen, it took months and months and

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Speaker 3: months to find something that met those criteria what we

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Speaker 3: were looking for and what we could afford kind of

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Speaker 3: in the same thing, the same home, and a place

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Speaker 3: where we could actually get to work from and not

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Speaker 3: you know, be angry at ourselves every two hours that

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Speaker 3: we have to spend in the car. What was your

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Speaker 3: detective process like in identifying a home.

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Speaker 4: I am very very lucky that my wife at the

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Speaker 4: time was a librarian and also has a master's degree

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Speaker 4: in the library sciences. Because of that, she's an extremely

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Speaker 4: organized person and it's wonderful. It helps my life in

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Speaker 4: you know ways, I'm sure I don't even realize. And

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Speaker 4: she had the most amazing chart that you know, blocked

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Speaker 4: out every single benefit that we were looking for, every

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Speaker 4: single benefit that could exist, whether that be you know,

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Speaker 4: something as simple as an air conditioner, all the way

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Speaker 4: up to you know, walkability in the neighborhood. You know,

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Speaker 4: just like every single possible thing. You know, what restaurants

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Speaker 4: are nearby, what school districts are you in, all everything

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Speaker 4: that could possibly be imagined. So it just became a

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Speaker 4: logic puzzle at a certain point, and that was the best,

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Speaker 4: you know. But however, it took us years because my

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Speaker 4: wife and I moved here to Atlanta, and then we

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Speaker 4: knew we couldn't find a house remotely because we were

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Speaker 4: moving from Los Angeles, and so we were just like, okay,

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Speaker 4: what are we going to do? And very quickly we realized, well,

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Speaker 4: we're just going to move into the first apartment we

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Speaker 4: can find, and then we will spend what we know

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Speaker 4: will be a year looking for an actual house to buy.

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Speaker 4: And that's what ended up happening, was we knew that

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Speaker 4: we had a year to find a house because that's

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Speaker 4: where we signed up for an apartment and it worked out.

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Speaker 4: But you're right, it's it's a ridiculous process that takes

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Speaker 4: so much time, so much energy, and it is treated

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Speaker 4: like this big momentous occasion, much like a having a

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Speaker 4: child or graduating college. It's like this like life, you know,

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Speaker 4: stepping stone, a big hallmark of life. And yet it's

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Speaker 4: it's it's just a house. Should it be this difficult?

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Speaker 3: You know?

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Speaker 1: Right? Why is it so byzantine? You know? Why is

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Speaker 1: it purposefully like navigating a labyrinth or a mine field

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Speaker 1: or a labyrinth with minds hid you in it? I

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Speaker 1: would say, yes, Mina Tours, No, we're keeping it, Minuaurs. Yeah,

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Speaker 1: I would argue, because I am very much a grinch,

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Speaker 1: would argue that at least part of the reason it's

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Speaker 1: so complicated is because it benefits, It benefits various industries

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Speaker 1: for it to be complicated. Also, you know, it shouldn't

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Speaker 1: be easy because it is a big deal. That's why

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Speaker 1: we call the pros. Right, the vast majority of people

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Speaker 1: when when they're buying a house even the very the

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Speaker 1: very very organized, like you seth and your spouse. You

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Speaker 1: guys probably called a broker, right, or an agent of some.

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Speaker 4: Sort, yes, correct, Yeah.

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Speaker 1: And they're the ones who will be ideally again, this

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Speaker 1: is all ideal. They'll be bloodhounds. You set them on

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Speaker 1: the case, this is what we need, secret passage, air conditioner,

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Speaker 1: indoor pool walkability nineteen seventies, asque, conversation pit, all of

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Speaker 1: these things, and then the agent will say, okay, let's

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Speaker 1: talk turkey. What's the price, and they'll try to work something. Now,

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Speaker 1: let's say you find that dream home right picture the

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Speaker 1: you know, the trumpets and the angel farts. You first

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Speaker 1: see the house, you make an offer. That offer comes

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Speaker 1: with all sorts of caveats, which you guys can speak

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Speaker 1: too better than I could, things like a home inspection.

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Speaker 1: What comes with the house? You know what I mean?

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Speaker 1: Do we get to keep the oven because we love

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Speaker 1: the oven? Things like that, and well.

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Speaker 3: Yeah, and what other offers are already on the table,

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Speaker 3: Because there's always one, no matter what, Always there's another

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Speaker 3: counter offer on the table immediately, and you have to

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Speaker 3: get yours in right now. I'd swear there's a conspiracy

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Speaker 3: with realtors.

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Speaker 1: I swear it's the hard cell right act. Now you know, uh,

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Speaker 1: not every place has this shag carpet, my friends, you know.

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Speaker 1: So so let's let's say to your point, mat that

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Speaker 1: that's an enormously crucial part of this process. And it's

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Speaker 1: you're gonna see in a second, folks. But let's say

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Speaker 1: the fortune favors you, the wind is at your back,

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Speaker 1: as they used to say back in the day, and

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Speaker 1: everything works out home inspections a breeze, boom boom boom.

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Speaker 1: You close on the house and you look around at

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Speaker 1: your backyard and you're thinking, holy shit, I have a backyard. Now,

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Speaker 1: look at all this stuff I'm gonna do with it.

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Speaker 1: And you know, you probably don't end up doing most

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Speaker 1: of that stuff because you know people, but it's it's

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Speaker 1: beautiful and you and your bank live happily ever after. Obviously,

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Speaker 1: that is a best case scenario. That is something that

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Speaker 1: happens in an ideal world. And as anyone who has

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Speaker 1: been paying attention can assure you, we do not live

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Speaker 1: in an ideal world.

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Speaker 3: That is very true, especially when it comes to just

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Speaker 3: what we have to do, each of us individually, what

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Speaker 3: we have to make on a yearly or it's really

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Speaker 3: monthly basis, in order to have a mortgage, to pay

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Speaker 3: a mortgage, to be in a home. Hey maybe you

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Speaker 3: don't even have a home, you still got to pay

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Speaker 3: rent of some kind. You got to make that much money.

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Speaker 3: And the overall cost of living, which includes the price

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Speaker 3: of a home, like that final price tag that you

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Speaker 3: end up getting a mortgage for, that is just rising

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Speaker 3: all over the place across the world, really faster in

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Speaker 3: some places than in others. But here in the US

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Speaker 3: there's a big thing that's fighting well, there are several

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Speaker 3: things that are fighting us as individuals when it comes

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Speaker 3: to this process. But ultimately, the buying power of a

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Speaker 3: single US dollar is not what it used to be

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Speaker 3: twenty years ago, let's say. And it really just means

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Speaker 3: that that one dollar that you make isn't going to

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Speaker 3: go quite.

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Speaker 1: As far as it once did. And that's a huge problem.

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Speaker 3: And if you take it to the governments to tasts,

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Speaker 3: they really do show that while let's let's call it

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Speaker 3: household income, the stuff that you and everybody else in

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Speaker 3: your house makes, whoever those people are, all of that combined,

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Speaker 3: is steadily increasing. Like that's nice, that's good. However, that increase,

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Speaker 3: that increase of of all you and your folks is

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Speaker 3: going like this, but the inflation is like this if

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Speaker 3: you're watching the video component of this. If not, let's

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Speaker 3: just say that inflation is outpacing the increase in household income.

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Speaker 1: Matt did a really cool graph with his hands. That's

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Speaker 1: what that's part of what you're missing. We can't describe it.

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Speaker 1: YouTube dot com forward slash conspiracy stuff for I was

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Speaker 1: gonna try not to do that. No, no, we got

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Speaker 1: we gotta keep doing it. This is like when you

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Speaker 1: hear a stand up album and the comic does a

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Speaker 1: visual bit, so get the full experience and again, check

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Speaker 1: out that's awesome Beard. You're right, You're absolutely right. And

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Speaker 1: this is like, this is the moment so common in

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Speaker 1: Twitter and Internet tropes today, where like previous generations shout

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Speaker 1: at the youngsters in their yard saying, you know, I

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Speaker 1: never went to college. My first job paid twelve dollars

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Speaker 1: a year and two pigs, and with that I was

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Speaker 1: able to start a family of sixteen and move into

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Speaker 1: four houses, one of which had a witch barn. And

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Speaker 1: then someone and they say, you know, rightly, it makes

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Speaker 1: sense from that perspective, to say, you make you know,

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Speaker 1: thirty thousand dollars a year, I would be I would

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Speaker 1: be living like royalty with that. And then someone has

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Speaker 1: to come in and say, well, thirty thousand dollars a

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Speaker 1: year in twenty twenty is maybe not as much as

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Speaker 1: twelve dollars a year and three pigs back when you

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Speaker 1: were in the game, my friend. Like, that's a cartoonish

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Speaker 1: look at it, but the point is true. I mean specifically,

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Speaker 1: like it irritates me because people don't know how fast

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Speaker 1: this happens. It's not like just a slow thing from

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Speaker 1: nineteen thirties on. No, no, no, no, no. As of

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Speaker 1: January this year, what a long time ago. Something that

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Speaker 1: would have cost twenty bucks in nineteen ninety nine now

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Speaker 1: costs nearly thirty one dollars. And you're not you know,

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Speaker 1: if you're the average person, your wage is also properly

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Speaker 1: kind of stagnant. And how and with that lower purchasing

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Speaker 1: power of the dollar, we see that other big purchases

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Speaker 1: are likewise expensive. College tuition, I mean, student loan debt

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Speaker 1: is crippling this country. That is not an I mean,

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Speaker 1: it is a conspiracy, I would argue, but it's definitely

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Speaker 1: not a conspiracy theory that that dog is going to

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Speaker 1: come back to bite and already has. And this means

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Speaker 1: that cars are more expensive in a very autocentric country.

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Speaker 1: They are all the price of those things also outpaces

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Speaker 1: the rate of inflation.

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Speaker 3: And just quickly to talk to that, I want to

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Speaker 3: give a concrete example, just this concept that the prices

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Speaker 3: of homes is rising far more than inflation and leagues

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Speaker 3: more than the increase overall in our wages, like the

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Speaker 3: individual wages that people are paid.

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Speaker 1: When we bought our home in twenty thirteen.

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Speaker 3: It costs X. Okay, let's just say that it cost

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Speaker 3: X amount of dollars. We've only been here in this

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Speaker 3: home that we purchased what seven years now, and the

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Speaker 3: cost of the houses are in my neighborhood. They were

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Speaker 3: all they all cost roughly the same. I mean it

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Speaker 3: was very very close a close range. They all now

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Speaker 3: cost way more than my wife and I could ever afford.

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Speaker 3: And it is not It is not because this is

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Speaker 3: an amazing up and coming place. It's because the prices

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Speaker 3: of homes overall in the United States has been skyrocketing.

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Speaker 3: And part of the part of the reason behind this

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Speaker 3: episode is why the heck is that doing that? Why

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Speaker 3: is that outpacing everything else?

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Speaker 1: Yeah? Yeah, exactly. And like we said, of course, this

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Speaker 1: is an effect that we see across many financial aspects

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Speaker 1: of people's lives. It's just profoundly exacerbated when it comes

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Speaker 1: to buying a home. Another concrete example for the automobile

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Speaker 1: would be that the price of the most affordable new

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Speaker 1: car in the US has risen about three hundred and

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Speaker 1: eighty percent since nineteen ninety, which you know, granted was

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Speaker 1: thirty years ago, but still three hundred and eighty percent.

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Speaker 1: It gives you, that's more than one hundred percent a decade.

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Speaker 1: It gives you, it gives you calls. Yeah, and this

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Speaker 1: These are two examples of these these troubling trends. So,

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Speaker 1: the Bureau of Census reports that the average price of

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Speaker 1: a new home in January of two thousand was one

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00:26:19,680 --> 00:26:23,520
Speaker 1: hundred and ninety four thousand, eight hundred dollars. So, according

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Speaker 1: to what we know about inflation, if we go to

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Speaker 1: the handy dandy inflation calculator, that price in January of

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Speaker 1: twenty twenty should be something like two hundred and ninety

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Speaker 1: seven thousand, seven hundred and five dollars. But the actual

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Speaker 1: price in January of twenty twenty was more like four

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Speaker 1: hundred and two thousand, four hundred dollars. That is more

434
00:26:46,840 --> 00:26:50,040
Speaker 1: than thirty five percent higher than it should be if

435
00:26:50,040 --> 00:26:53,560
Speaker 1: we're just counting inflation, which means that someone is making

436
00:26:54,200 --> 00:26:57,040
Speaker 1: tons of cash. Here, someone is making tons of Cheddar

437
00:26:57,480 --> 00:26:59,919
Speaker 1: is compounded again by the very important fact that you

438
00:27:00,119 --> 00:27:03,640
Speaker 1: mentioned earlier, Matt, which is that people who are trying

439
00:27:03,680 --> 00:27:07,240
Speaker 1: to buy homes are working just as hard as their ancestors.

440
00:27:07,240 --> 00:27:09,920
Speaker 1: Did you know what I mean? They're just doing more

441
00:27:10,040 --> 00:27:14,080
Speaker 1: for less and for many people, this means that home

442
00:27:14,119 --> 00:27:18,520
Speaker 1: ownership becomes an increasingly distant goal. You know what I mean,

443
00:27:18,560 --> 00:27:23,080
Speaker 1: The finish line keeps moving. So what gives I mean

444
00:27:23,280 --> 00:27:27,439
Speaker 1: supply and demand obviously, right, you can't sell houses that

445
00:27:27,520 --> 00:27:30,520
Speaker 1: don't exist, so you have to build more, or people

446
00:27:30,600 --> 00:27:35,119
Speaker 1: have to sell the ones they have. But there's something

447
00:27:35,160 --> 00:27:42,240
Speaker 1: else afoot here. There is perhaps an infiltration of which

448
00:27:42,800 --> 00:27:46,840
Speaker 1: many people are unaware. Remember how we said that anyone

449
00:27:47,000 --> 00:27:50,200
Speaker 1: can buy a house in the US. That's true. It's

450
00:27:50,240 --> 00:27:55,399
Speaker 1: more true than you think. Anyone means anyone anywhere in

451
00:27:55,480 --> 00:27:56,080
Speaker 1: the world.

452
00:27:56,680 --> 00:28:00,280
Speaker 3: Yeah, and recently there are a lot of people who

453
00:28:00,280 --> 00:28:03,239
Speaker 3: have been taking this seriously, these issues that we've been

454
00:28:03,280 --> 00:28:08,480
Speaker 3: discussing here, experts looking at this stuff very concerned that

455
00:28:08,720 --> 00:28:13,080
Speaker 3: maybe the individuals buying up a lot of the property,

456
00:28:13,520 --> 00:28:19,919
Speaker 3: including you know, condominiums, houses, even just renting, the renting

457
00:28:20,000 --> 00:28:23,520
Speaker 3: of apartments. People who are buying up this property and

458
00:28:23,640 --> 00:28:28,600
Speaker 3: driving up the prices aren't actually human beings that live

459
00:28:28,640 --> 00:28:31,159
Speaker 3: in homes because they need a place to live and

460
00:28:31,359 --> 00:28:32,959
Speaker 3: grow and maybe start a family.

461
00:28:33,600 --> 00:28:35,480
Speaker 1: Who are these entities?

462
00:28:36,160 --> 00:28:40,240
Speaker 3: Are they individuals? Are they companies? And where are they located?

463
00:28:40,360 --> 00:28:42,800
Speaker 3: If they are not here in the United States?

464
00:28:43,120 --> 00:28:44,960
Speaker 1: And when you know what you're thinking, folks, it's the

465
00:28:45,000 --> 00:28:47,600
Speaker 1: same thing we thought too, What the fuck?

466
00:28:47,760 --> 00:28:50,040
Speaker 3: And we're going to learn about that right after a

467
00:28:50,120 --> 00:28:51,320
Speaker 3: quick word from our sponsor.

468
00:28:58,320 --> 00:29:05,320
Speaker 1: Here's where it gets easy. There are multiple factors leading

469
00:29:05,360 --> 00:29:09,600
Speaker 1: to any housing crisis, but for an investment does play

470
00:29:09,640 --> 00:29:14,000
Speaker 1: a huge, often undiscussed role. Let's let's picture it this way.

471
00:29:14,080 --> 00:29:20,560
Speaker 1: Let's say let's say you Matt Frederick are I don't know,

472
00:29:21,640 --> 00:29:27,720
Speaker 1: let's do you want? Let's okay? All right, so we'll

473
00:29:27,720 --> 00:29:29,680
Speaker 1: give you We'll give you an alias Seth so you

474
00:29:29,720 --> 00:29:35,959
Speaker 1: can really get into character. The shadow, yes, that is,

475
00:29:37,640 --> 00:29:40,400
Speaker 1: the shadow knows Okay, we're gonna call you seth Ory

476
00:29:41,280 --> 00:29:45,960
Speaker 1: the Shadow for this one. So all right, so let's say, uh,

477
00:29:46,120 --> 00:29:49,200
Speaker 1: let's say seth Ory is a well to do individual

478
00:29:49,600 --> 00:29:54,000
Speaker 1: in a not so well to do part of the world. Seth,

479
00:29:54,240 --> 00:29:59,360
Speaker 1: Seth the Shadow has made Scrooge mcnuck money. But every day,

480
00:29:59,760 --> 00:30:04,080
Speaker 1: every day, Seth, you're waking up haunted by by the

481
00:30:04,120 --> 00:30:09,200
Speaker 1: fear that the government may do something either incompetent or corrupt,

482
00:30:09,840 --> 00:30:15,440
Speaker 1: rendering the fruits of your labor and your financial hoard worthless.

483
00:30:15,880 --> 00:30:17,240
Speaker 1: You start panicking, right.

484
00:30:17,400 --> 00:30:22,680
Speaker 4: Yeah, absolutely, I've worked hard for my giant money vault,

485
00:30:22,920 --> 00:30:25,640
Speaker 4: and I need to ensure that my hard work was

486
00:30:25,680 --> 00:30:28,640
Speaker 4: not in vain. I need to Uh, maybe I'm more

487
00:30:28,680 --> 00:30:30,760
Speaker 4: competent than my government. Maybe that's the way it is.

488
00:30:31,080 --> 00:30:33,200
Speaker 3: And in this, dude, you're right on the money there,

489
00:30:33,560 --> 00:30:35,480
Speaker 3: you feel that way, and it's true.

490
00:30:35,600 --> 00:30:36,280
Speaker 1: You really do.

491
00:30:36,480 --> 00:30:40,160
Speaker 3: Just have a giant tower of coins and various other treasures.

492
00:30:40,360 --> 00:30:42,880
Speaker 4: So he got of it just like Scrooge mc duck.

493
00:30:43,000 --> 00:30:45,520
Speaker 4: I worked hard for it. I didn't. I wasn't born rich,

494
00:30:45,560 --> 00:30:48,840
Speaker 4: Scrooge m no way, Yes, that's correct. Has literally been

495
00:30:48,880 --> 00:30:51,840
Speaker 4: reading a bunch of Scrooge McDuck comics recently. He was

496
00:30:51,880 --> 00:30:55,000
Speaker 4: not born rich. He worked hard. He earned that money.

497
00:30:56,000 --> 00:30:57,760
Speaker 4: I'll get you guys more details later. I'm not done

498
00:30:57,760 --> 00:30:58,440
Speaker 4: with the book yet.

499
00:30:58,600 --> 00:31:05,160
Speaker 1: But thus right, thus right, Lotty with.

500
00:31:05,440 --> 00:31:08,719
Speaker 4: A silver spoon in his in his bill, he he

501
00:31:08,840 --> 00:31:09,440
Speaker 4: had earned it.

502
00:31:09,560 --> 00:31:12,000
Speaker 1: Okay. So Seth through the Shadow is also a duck

503
00:31:12,480 --> 00:31:18,200
Speaker 1: in this scenario, a humanoid uh tycoon duck, and has

504
00:31:18,280 --> 00:31:23,040
Speaker 1: these real concerns. Seth, you're saying, quack, quack, I need

505
00:31:23,040 --> 00:31:27,000
Speaker 1: a place to put all this cash. I need some

506
00:31:27,000 --> 00:31:32,720
Speaker 1: something uh some kind of some other kind of money vault,

507
00:31:33,000 --> 00:31:35,680
Speaker 1: and it needs to be tucked away from the potential

508
00:31:35,800 --> 00:31:40,880
Speaker 1: disasters ahead in my country. Now. Not to be boys, yes, yes,

509
00:31:41,200 --> 00:31:46,440
Speaker 1: no not to uh not to point uh duck duck

510
00:31:46,560 --> 00:31:51,960
Speaker 1: tails at anybody, but you may even have been have

511
00:31:52,160 --> 00:31:56,440
Speaker 1: made some of your fortune uh by contributing to the

512
00:31:56,440 --> 00:31:59,480
Speaker 1: instability of this country, and you don't want to be

513
00:31:59,520 --> 00:32:02,200
Speaker 1: there for the fallout. That's not that's not a good

514
00:32:02,240 --> 00:32:03,920
Speaker 1: look for a smart duck like you.

515
00:32:04,280 --> 00:32:08,160
Speaker 4: If we're being practical, If I'm this wealthy, I'm pretty

516
00:32:08,160 --> 00:32:10,920
Speaker 4: sure I did some bad things. Not to not to

517
00:32:11,080 --> 00:32:14,720
Speaker 4: smirch anyone, but if you get Scrooge McDuck rich. She

518
00:32:14,760 --> 00:32:17,680
Speaker 4: got some Scrooge McDuck problems. That guy, I'd say at

519
00:32:17,760 --> 00:32:19,600
Speaker 4: least once a week he had some sort of adventure

520
00:32:19,640 --> 00:32:22,600
Speaker 4: of someone causing problems in his life that perhaps he

521
00:32:22,640 --> 00:32:23,360
Speaker 4: contributed to.

522
00:32:24,200 --> 00:32:28,400
Speaker 1: It's very true. It's a very good point. So what

523
00:32:28,880 --> 00:32:32,000
Speaker 1: happens next, Matt, what happens to set the shadow?

524
00:32:32,720 --> 00:32:36,840
Speaker 3: Well, here, here's the best part. The shadow has friends,

525
00:32:37,320 --> 00:32:39,400
Speaker 3: and he's had people who've been helping him out in

526
00:32:39,440 --> 00:32:46,280
Speaker 3: all of these pursuits. Some of them he may consider employees, others, partners, others,

527
00:32:46,280 --> 00:32:49,560
Speaker 3: maybe even fixers, who knows. But he's got some friends

528
00:32:49,560 --> 00:32:51,480
Speaker 3: and they're in a similar bind. They've made a lot

529
00:32:51,520 --> 00:32:54,040
Speaker 3: of cash, they need a place to put it, and

530
00:32:54,200 --> 00:32:58,440
Speaker 3: every one of them is hearing the same thing. It's

531
00:32:58,480 --> 00:33:01,520
Speaker 3: a it's a distant call. I'm across the pond. Let's

532
00:33:01,520 --> 00:33:03,240
Speaker 3: say it says, put.

533
00:33:03,080 --> 00:33:06,480
Speaker 1: Your money over here, it's safe over here, be smart,

534
00:33:06,920 --> 00:33:11,520
Speaker 1: invest abroad. And the best thing that the whisper does

535
00:33:11,760 --> 00:33:14,640
Speaker 1: is it says, you don't even have to leave. You

536
00:33:14,680 --> 00:33:18,640
Speaker 1: stay right where you are. Just ship us that cash

537
00:33:18,680 --> 00:33:23,040
Speaker 1: and we're good to go. No plane hopping, right, you

538
00:33:23,080 --> 00:33:25,120
Speaker 1: don't have to don't have to ride on a jet

539
00:33:25,160 --> 00:33:28,360
Speaker 1: with the commoners. I mean, of course, Seth, you already

540
00:33:28,400 --> 00:33:30,360
Speaker 1: have a private jet in this scenario.

541
00:33:30,840 --> 00:33:33,640
Speaker 4: But you and a private pilot Launchpad mcquack.

542
00:33:33,760 --> 00:33:36,600
Speaker 1: And a private pilot. I love that we're painting this

543
00:33:36,760 --> 00:33:39,120
Speaker 1: universe out and giving it. We're going to have to

544
00:33:39,120 --> 00:33:43,320
Speaker 1: return to this example. Yeah you can. You can give

545
00:33:43,440 --> 00:33:47,880
Speaker 1: old Launchpad a break that weekend, because, as you said, Matt,

546
00:33:48,240 --> 00:33:51,920
Speaker 1: Seth can do this all online. Not he doesn't have

547
00:33:51,960 --> 00:33:54,280
Speaker 1: to leave his country, he doesn't have to leave his house. Yeah,

548
00:33:54,600 --> 00:33:55,640
Speaker 1: he can't do it all online.

549
00:33:55,760 --> 00:33:59,240
Speaker 3: But really it's preferable if you actually ship the cash

550
00:33:59,440 --> 00:34:03,440
Speaker 3: somehow to to our country. Just the cash, like just

551
00:34:03,720 --> 00:34:07,240
Speaker 3: cold hard boxes of cash.

552
00:34:06,960 --> 00:34:11,839
Speaker 1: And or or in sacks or in suitcases with a

553
00:34:11,920 --> 00:34:15,160
Speaker 1: dollar sign on them. Yeah, oh for sure.

554
00:34:15,480 --> 00:34:18,560
Speaker 3: Or just you know, start an LLC in Delaware and

555
00:34:18,680 --> 00:34:20,719
Speaker 3: put all your money into that and then buy the

556
00:34:20,760 --> 00:34:21,560
Speaker 3: house through that.

557
00:34:22,600 --> 00:34:25,480
Speaker 1: Oh gosh, remind me to tell you guys one day

558
00:34:25,480 --> 00:34:30,879
Speaker 1: about the brilliant financial moves of Ika. It's not Machabelian.

559
00:34:31,000 --> 00:34:36,200
Speaker 1: It is so evil. But anyway, anyway, uh, we are

560
00:34:36,400 --> 00:34:41,239
Speaker 1: we are taking a lighthearted approach to a very real problem.

561
00:34:41,320 --> 00:34:47,800
Speaker 1: So let's continue this. Uh, Let's let's say that our Seth,

562
00:34:48,120 --> 00:34:54,840
Speaker 1: the shadow is based in is looking at property that

563
00:34:55,000 --> 00:34:57,720
Speaker 1: he could buy somewhere in the world and looks at Germany,

564
00:34:57,840 --> 00:35:00,600
Speaker 1: and he looks at Thailand, and he looks at all Australia,

565
00:35:00,719 --> 00:35:05,480
Speaker 1: and then he says, oh, Canada. That was unintentional, and

566
00:35:05,560 --> 00:35:07,200
Speaker 1: I apologize.

567
00:35:06,960 --> 00:35:08,240
Speaker 4: A serious, very funny.

568
00:35:08,640 --> 00:35:12,719
Speaker 1: So there are a lot of people who have made

569
00:35:12,760 --> 00:35:17,960
Speaker 1: the same decision that our fictional av and Seth has made.

570
00:35:18,480 --> 00:35:21,360
Speaker 1: And we know this because there have been some pretty

571
00:35:21,440 --> 00:35:25,160
Speaker 1: damning case studies about it. Beginning back in the late

572
00:35:25,239 --> 00:35:31,080
Speaker 1: twenty tens, foreign investment and real estate speculation in many

573
00:35:31,120 --> 00:35:37,400
Speaker 1: major cities of Canada caused this boom, this seismic shift

574
00:35:37,640 --> 00:35:40,680
Speaker 1: in the real estate market. It led to a massive

575
00:35:40,719 --> 00:35:43,239
Speaker 1: increase in not only the price of buying a home,

576
00:35:43,560 --> 00:35:45,080
Speaker 1: but the price of renting one.

577
00:35:45,560 --> 00:35:50,160
Speaker 3: And it was also seeing a very steady drop in

578
00:35:50,160 --> 00:35:53,640
Speaker 3: interest rates. Right, So that's that's how much you when

579
00:35:53,640 --> 00:35:56,120
Speaker 3: you get a mortgage, how much you actually have to

580
00:35:56,160 --> 00:35:59,400
Speaker 3: pay back That is not a part of the principle,

581
00:35:59,560 --> 00:36:01,480
Speaker 3: like what you the loan that you took out, just

582
00:36:01,560 --> 00:36:06,080
Speaker 3: extra money you got to pay the bank for the bank, Yeah, exactly,

583
00:36:06,520 --> 00:36:11,640
Speaker 3: So so that was dropping, right, But then the price

584
00:36:11,800 --> 00:36:15,560
Speaker 3: of the homes is rising, and that's been happening since

585
00:36:15,600 --> 00:36:18,560
Speaker 3: in the nineteen nineties. It signaled to consumers, just the

586
00:36:18,600 --> 00:36:22,360
Speaker 3: everyday person, including the shadow there, that the real estate

587
00:36:22,400 --> 00:36:28,240
Speaker 3: market had become the perfect stable place to invest your money,

588
00:36:28,320 --> 00:36:29,680
Speaker 3: no matter where it came from.

589
00:36:29,920 --> 00:36:33,680
Speaker 1: Yeah, and there was this there was this act now

590
00:36:33,920 --> 00:36:37,919
Speaker 1: feeling right for many many investors. So they said, hey,

591
00:36:38,080 --> 00:36:40,000
Speaker 1: this is a good thing. Don't know how long it's

592
00:36:40,000 --> 00:36:41,759
Speaker 1: going to be, it's going to last and no, I

593
00:36:41,760 --> 00:36:44,080
Speaker 1: wou'd hate to be late to the game here. So

594
00:36:44,600 --> 00:36:47,040
Speaker 1: they poured into the market, and you shall also mention

595
00:36:47,760 --> 00:36:51,800
Speaker 1: they're poured into a market that is full of young,

596
00:36:52,080 --> 00:36:55,800
Speaker 1: well intentioned Canadians who are thinking, this is going to

597
00:36:55,880 --> 00:36:57,920
Speaker 1: be the year. This is going to be the year

598
00:36:58,000 --> 00:37:02,440
Speaker 1: when we get our own home. And that's why in

599
00:37:02,480 --> 00:37:05,440
Speaker 1: March of twenty seventeen, the cost of owning a home

600
00:37:05,600 --> 00:37:09,040
Speaker 1: in Toronto alone in the greater Toronto area, so not

601
00:37:09,120 --> 00:37:13,000
Speaker 1: even like downtown or whatever the Arts district is, just

602
00:37:13,080 --> 00:37:16,880
Speaker 1: the suburbs of Toronto, it had grown thirty three percent

603
00:37:17,280 --> 00:37:21,239
Speaker 1: in the course of a year. Even the even the

604
00:37:21,239 --> 00:37:24,480
Speaker 1: homes that a lot of people wouldn't necessarily think too

605
00:37:24,520 --> 00:37:27,760
Speaker 1: much of like the semi detached kind of townhome stuff.

606
00:37:28,520 --> 00:37:32,360
Speaker 1: Those are passed a million dollars in asking price. And

607
00:37:32,440 --> 00:37:37,560
Speaker 1: this problem is not unique to Canada, because let's say,

608
00:37:37,760 --> 00:37:39,840
Speaker 1: and Seth, I hope you don't regret allowing us to

609
00:37:39,920 --> 00:37:43,400
Speaker 1: use you as an example here fictionally okay, Well, let's okay.

610
00:37:43,440 --> 00:37:46,759
Speaker 1: So let's say let's say you look at this and

611
00:37:46,920 --> 00:37:50,200
Speaker 1: you're like, wow, it's Canada. Is not for me. Too

612
00:37:50,280 --> 00:37:53,640
Speaker 1: many people found out about the greater Toronto metro area,

613
00:37:53,800 --> 00:37:57,040
Speaker 1: and too many people somebody blew up the spot in

614
00:37:57,120 --> 00:38:03,840
Speaker 1: Vancouver or whatever, and so you turn your gaze south

615
00:38:04,400 --> 00:38:07,920
Speaker 1: and you look at the US. Statistically, you're probably looking

616
00:38:08,040 --> 00:38:12,800
Speaker 1: at California. That's going to be the most popular place

617
00:38:12,920 --> 00:38:17,520
Speaker 1: for a duck in your position. And that's where we

618
00:38:17,640 --> 00:38:20,160
Speaker 1: run into the problem with the US. This is an

619
00:38:20,280 --> 00:38:24,680
Speaker 1: ongoing thing, and to explain the situation, we're going to

620
00:38:24,719 --> 00:38:28,920
Speaker 1: need to introduce you to the Financial Crimes Enforcement Network.

621
00:38:29,200 --> 00:38:32,719
Speaker 1: They're a unit of the Treasury Department with a very

622
00:38:32,800 --> 00:38:35,680
Speaker 1: cool short nickname FINCIN. That's right.

623
00:38:36,520 --> 00:38:39,520
Speaker 3: We talked about them not long ago, didn't we been yep,

624
00:38:39,920 --> 00:38:42,319
Speaker 3: good lord, I can't tell you the topic, but we

625
00:38:42,600 --> 00:38:46,960
Speaker 3: just discussed them in another financial problem that we were

626
00:38:47,000 --> 00:38:50,000
Speaker 3: dealing with. I think it had something to do with

627
00:38:50,360 --> 00:38:55,600
Speaker 3: money laundering and drugs. I think who knows you know

628
00:38:55,719 --> 00:38:56,600
Speaker 3: better than me?

629
00:38:56,960 --> 00:38:59,440
Speaker 1: Whoever you are out there listening, I'm sure email us

630
00:38:59,440 --> 00:39:04,919
Speaker 1: that tell us we did, But yes, fin send.

631
00:39:05,040 --> 00:39:09,640
Speaker 3: In twenty seventeen, they put out a press release and

632
00:39:10,000 --> 00:39:13,319
Speaker 3: they found that one out of four, one out of

633
00:39:13,360 --> 00:39:18,680
Speaker 3: four residential real estate purchases were all cash transactions.

634
00:39:20,160 --> 00:39:21,520
Speaker 1: Do you understand what that means?

635
00:39:22,160 --> 00:39:27,680
Speaker 3: One in four That is a quarter of all hundred

636
00:39:27,719 --> 00:39:31,480
Speaker 3: we're talking minimum hundreds of thousands of dollars, unless you're

637
00:39:31,520 --> 00:39:34,120
Speaker 3: talking about a home that's in foreclosure that for some.

638
00:39:34,040 --> 00:39:36,280
Speaker 1: Reason is below one hundred thousand dollars.

639
00:39:36,560 --> 00:39:39,080
Speaker 3: And even if it is in foreclosure, depending on the

640
00:39:39,120 --> 00:39:42,960
Speaker 3: institution that owns it, it may be well above that

641
00:39:43,120 --> 00:39:47,839
Speaker 3: benchmark number. And that right there just makes you go, Okay,

642
00:39:47,960 --> 00:39:50,000
Speaker 3: so who's got that kind of money? What are we

643
00:39:50,040 --> 00:39:55,040
Speaker 3: talking about here? When an individual or a family is

644
00:39:55,239 --> 00:39:58,560
Speaker 3: upgrading a home and I'm giving you some quotation, so

645
00:39:58,640 --> 00:40:02,279
Speaker 3: there with my fingers. Generally, what's gonna happen is even

646
00:40:02,320 --> 00:40:05,279
Speaker 3: if you've got if you've paid off your mortgage completely,

647
00:40:05,800 --> 00:40:09,160
Speaker 3: you've got the entire equity of your home that exists.

648
00:40:09,239 --> 00:40:11,359
Speaker 3: Let's say two hundred and fifty thousand. That's so low

649
00:40:11,400 --> 00:40:15,440
Speaker 3: for nowadays, three hundred thousand dollars. God, I can't believe

650
00:40:15,480 --> 00:40:18,920
Speaker 3: it's that high. But let's say you've just got that

651
00:40:19,280 --> 00:40:23,879
Speaker 3: in cash essentially sitting there that family unless they are

652
00:40:23,920 --> 00:40:27,440
Speaker 3: downgrading because of you know, they need they need a

653
00:40:27,440 --> 00:40:30,040
Speaker 3: smaller space, they don't need as much room there. There

654
00:40:30,080 --> 00:40:32,719
Speaker 3: are a couple, you know, other situations. Generally there's going

655
00:40:32,800 --> 00:40:34,960
Speaker 3: to be an upgrade because you would take that money

656
00:40:35,000 --> 00:40:40,640
Speaker 3: you've already invested and get a bigger investment. So you're

657
00:40:40,680 --> 00:40:42,560
Speaker 3: not going to be able to pay for the entire

658
00:40:42,719 --> 00:40:46,200
Speaker 3: home purchase with just that money, even if you've got

659
00:40:46,200 --> 00:40:49,760
Speaker 3: all of that, because you're probably upgrading to four hundred,

660
00:40:49,840 --> 00:40:52,080
Speaker 3: five hundred, six hundred thousand dollars home.

661
00:40:52,280 --> 00:40:57,520
Speaker 1: Yay. That that's why the cash purchase feels so strange.

662
00:40:58,040 --> 00:41:02,000
Speaker 1: That's a lot of money baller, dude, And I know

663
00:41:02,080 --> 00:41:06,719
Speaker 1: that that's a very crude way to describe it. But

664
00:41:06,880 --> 00:41:09,400
Speaker 1: this is also part of what I would argue is

665
00:41:09,640 --> 00:41:14,200
Speaker 1: a newer version of the American dream to come in

666
00:41:14,600 --> 00:41:18,200
Speaker 1: with the suitcase, to come in with the blank check,

667
00:41:18,880 --> 00:41:22,800
Speaker 1: and to say to you know, to power move Tony

668
00:41:22,840 --> 00:41:26,720
Speaker 1: Starkett and say something like okay, yeah, no, I just look,

669
00:41:27,120 --> 00:41:29,720
Speaker 1: just tell me what we need to sign. I want

670
00:41:29,719 --> 00:41:33,279
Speaker 1: this by this afternoon because I have a lunch thing

671
00:41:34,040 --> 00:41:38,160
Speaker 1: that's similar to what's happening. And it's not as cartoonish

672
00:41:38,200 --> 00:41:43,720
Speaker 1: as you think. Thanks to the Bank Secrecy Act, which

673
00:41:43,760 --> 00:41:48,880
Speaker 1: is anti money laundering law created in nineteen seventy, Finnsen

674
00:41:49,280 --> 00:41:51,879
Speaker 1: is able to learn who owns a lot of these

675
00:41:52,200 --> 00:41:57,000
Speaker 1: all cash transaction properties. A ton of them are in

676
00:41:57,400 --> 00:42:01,719
Speaker 1: very expensive metro areas, you know, New York, San Francisco,

677
00:42:02,200 --> 00:42:05,400
Speaker 1: La Miami, all the hits, you know, all the good ones,

678
00:42:05,400 --> 00:42:09,480
Speaker 1: all the postcard cities. In those cities. They found that,

679
00:42:09,600 --> 00:42:14,000
Speaker 1: in addition to to having quite a large amount of

680
00:42:14,040 --> 00:42:18,640
Speaker 1: all cash home purchases, thirty percent of those purchases were

681
00:42:18,719 --> 00:42:23,560
Speaker 1: automatically flagged as suspicious transactions. There's a little bit of

682
00:42:23,560 --> 00:42:25,799
Speaker 1: true crime here. We don't want to exaggerate it too much,

683
00:42:25,880 --> 00:42:31,080
Speaker 1: but there's a great look at this from Reveal, which

684
00:42:31,120 --> 00:42:35,759
Speaker 1: is part of the Center for Investigative Reporting. In this

685
00:42:36,520 --> 00:42:39,600
Speaker 1: they have an interview with a guy named James Wright.

686
00:42:40,080 --> 00:42:45,320
Speaker 1: James Wright is an attorney and more importantly, he used

687
00:42:45,320 --> 00:42:47,880
Speaker 1: to be, once upon a time a bank examiner for

688
00:42:48,040 --> 00:42:53,279
Speaker 1: the Treasury Department. He indicates that, in his opinion, there

689
00:42:53,360 --> 00:42:57,759
Speaker 1: are multiple conspiracies to buy real estate not as a

690
00:42:57,840 --> 00:43:02,000
Speaker 1: legit investment, but as a means of laundering money. Think

691
00:43:02,040 --> 00:43:04,839
Speaker 1: about it like a similar to the car wash bit.

692
00:43:05,000 --> 00:43:10,000
Speaker 1: In Breaking Bad No Spoilers, he did something really interesting.

693
00:43:10,920 --> 00:43:15,760
Speaker 1: He talks about the what went down in Moldova after

694
00:43:15,800 --> 00:43:19,160
Speaker 1: the fall of the Soviet Union, and he said that

695
00:43:19,360 --> 00:43:22,399
Speaker 1: at that time oligarchs were running wild and they were

696
00:43:22,440 --> 00:43:27,120
Speaker 1: stashing their gains in buildings. You know, hard assets, tangible.

697
00:43:27,840 --> 00:43:30,960
Speaker 1: It's hard, it's difficult to move buildings, right. And he

698
00:43:31,000 --> 00:43:34,719
Speaker 1: has this line where he says, back in Moldova at

699
00:43:34,719 --> 00:43:37,040
Speaker 1: the time, you would walk down the street and people

700
00:43:37,080 --> 00:43:39,440
Speaker 1: would point at a certain building and they would be like,

701
00:43:39,520 --> 00:43:44,200
Speaker 1: that's a washing machine, and everybody knew what it meant.

702
00:43:44,560 --> 00:43:48,120
Speaker 1: In today, yeah, this should bother you if you're in

703
00:43:48,160 --> 00:43:52,080
Speaker 1: the US, because today, Wright says America is not that different.

704
00:43:52,120 --> 00:43:55,520
Speaker 1: As of twenty nineteen, the Census Bureau has reported that

705
00:43:55,680 --> 00:44:01,200
Speaker 1: nearly three million US homes and thirteen milli billion apartment

706
00:44:01,320 --> 00:44:07,279
Speaker 1: units are owned not by like Jane and John from

707
00:44:07,360 --> 00:44:12,520
Speaker 1: down the street. They're they're owned by LLC's or LLPs

708
00:44:13,160 --> 00:44:16,400
Speaker 1: or shell companies. That's really what they are. And I

709
00:44:16,440 --> 00:44:19,120
Speaker 1: know it's like an impolite term, but they're shell companies.

710
00:44:19,160 --> 00:44:25,200
Speaker 1: They're meant to hide true ownership. That's nuts thirteen million apartments,

711
00:44:25,480 --> 00:44:31,200
Speaker 1: three million homes, and the proportion of residential rental properties

712
00:44:31,719 --> 00:44:37,040
Speaker 1: owned by individuals, you know, actual families, has fallen drastically.

713
00:44:37,360 --> 00:44:40,400
Speaker 1: In nineteen ninety one, it was ninety two percent, and

714
00:44:40,440 --> 00:44:42,680
Speaker 1: then just by twenty fifteen it was down to seventy

715
00:44:42,719 --> 00:44:45,600
Speaker 1: four percent, and the trend continues today in twenty twenty.

716
00:44:45,880 --> 00:44:48,920
Speaker 3: Yeah, and all of that already sounds troubling on the surface,

717
00:44:49,000 --> 00:44:52,200
Speaker 3: but then you realize, like, well, I mean, with the

718
00:44:52,280 --> 00:44:54,720
Speaker 3: numbers you just quoted, they're down to seventy four percent

719
00:44:54,760 --> 00:44:58,880
Speaker 3: of individual families actually owning and renting these properties. You

720
00:44:58,920 --> 00:45:03,600
Speaker 3: realize that they're humans that are trying to to get

721
00:45:03,640 --> 00:45:05,680
Speaker 3: these places and to live in these places, and to

722
00:45:05,719 --> 00:45:12,760
Speaker 3: afford them, and they're competing with limited liability partnerships from somewhere,

723
00:45:12,800 --> 00:45:17,600
Speaker 3: probably incorporated in Delaware, and who knows where they're coming from,

724
00:45:17,600 --> 00:45:21,440
Speaker 3: and they're able to buy these things outright just immediately,

725
00:45:21,719 --> 00:45:23,840
Speaker 3: like that you got a house. Hey, you got a

726
00:45:23,840 --> 00:45:27,839
Speaker 3: whole subdivision. Oh well, here's a whole. Here's a whole

727
00:45:28,000 --> 00:45:31,680
Speaker 3: three floors of this awesome apartment building in San Francisco.

728
00:45:31,760 --> 00:45:34,520
Speaker 3: It's downtown. You're gonna love it. It's just it's so

729
00:45:34,640 --> 00:45:39,320
Speaker 3: intense because the individual person, the family that is trying

730
00:45:39,360 --> 00:45:44,040
Speaker 3: to buy this thing or live in this unit, they

731
00:45:44,080 --> 00:45:47,840
Speaker 3: are vulnerable. Not in the same way they're they're they're

732
00:45:47,880 --> 00:45:52,240
Speaker 3: they're vulnerable to the risks that an LLC or whatever,

733
00:45:52,480 --> 00:45:56,160
Speaker 3: this other shell corporation they're not going to be vulnerable to.

734
00:45:56,680 --> 00:45:59,680
Speaker 3: It's the biggest financial decision of your life outside of

735
00:46:00,440 --> 00:46:04,480
Speaker 3: having a child. Actually, wait no, it's the biggest financial

736
00:46:04,520 --> 00:46:05,520
Speaker 3: decision of your life.

737
00:46:06,960 --> 00:46:10,640
Speaker 1: How do you treat your kids? I mean, he's expensive,

738
00:46:10,680 --> 00:46:12,000
Speaker 1: but he's nothing like this place.

739
00:46:13,480 --> 00:46:17,520
Speaker 4: So I'm guessing too that your mortgage is longer than

740
00:46:17,560 --> 00:46:20,520
Speaker 4: eighteen years probably too, right, it's.

741
00:46:20,520 --> 00:46:23,760
Speaker 3: Yeah, usually thirty if you don't have a ton of money.

742
00:46:24,520 --> 00:46:27,239
Speaker 4: So if you are following the strict rules of you're

743
00:46:27,280 --> 00:46:30,920
Speaker 4: only raising your child till eighteen, then your mortgage will

744
00:46:30,920 --> 00:46:32,280
Speaker 4: be with you longer than your child.

745
00:46:32,280 --> 00:46:36,040
Speaker 3: Technically, it's true, but I'm going to raise him until

746
00:46:36,040 --> 00:46:37,120
Speaker 3: he doesn't want me anymore.

747
00:46:37,840 --> 00:46:42,320
Speaker 1: Right, Yeah, it's true. That's why I only halfway jokingly

748
00:46:42,400 --> 00:46:46,960
Speaker 1: call a mortgage a financial facial tattoo, Like it stays

749
00:46:47,000 --> 00:46:50,480
Speaker 1: with you and it will affect your future in not

750
00:46:50,680 --> 00:46:52,799
Speaker 1: entirely negative ways. I mean, you have a place to live,

751
00:46:53,360 --> 00:46:56,920
Speaker 1: but you are also bound in some very serious and

752
00:46:57,040 --> 00:47:01,279
Speaker 1: lasting agreements. And we're going to for a moment and

753
00:47:01,680 --> 00:47:05,799
Speaker 1: explore this further, assuming that a shell company does not

754
00:47:06,120 --> 00:47:17,400
Speaker 1: buy up our podcast. While we're doing ads and we're back,

755
00:47:18,120 --> 00:47:21,719
Speaker 1: just got some text from Illumination Global Unlimited. So we

756
00:47:21,960 --> 00:47:24,239
Speaker 1: are going to change some of the things that we

757
00:47:24,320 --> 00:47:30,479
Speaker 1: plan to talk about. Oh I wish it were not true.

758
00:47:30,760 --> 00:47:33,879
Speaker 1: Oh yeah, yeah, Well we love them. They're our first

759
00:47:33,880 --> 00:47:38,160
Speaker 1: sponsor and our primary one, so you're right, right, guys.

760
00:47:38,239 --> 00:47:41,920
Speaker 1: These homeowners can be vulnerable. This is a huge decision,

761
00:47:42,080 --> 00:47:47,160
Speaker 1: and often these folks are doing everything right, everything by

762
00:47:47,200 --> 00:47:50,839
Speaker 1: the book. They're very organized, they have a realistic timeline,

763
00:47:51,120 --> 00:47:54,400
Speaker 1: but they are denied the opportunity to buy an affordable

764
00:47:54,440 --> 00:47:57,480
Speaker 1: home with a mortgage because maybe even after they've put

765
00:47:57,480 --> 00:48:00,920
Speaker 1: that offer in, somebody else shows up with an offer

766
00:48:00,920 --> 00:48:03,759
Speaker 1: that may be higher, it might even be lower, but

767
00:48:03,840 --> 00:48:08,080
Speaker 1: it's all in cash and it's all in like, forget

768
00:48:08,120 --> 00:48:10,640
Speaker 1: about the home inspection blah blah blah. We don't need

769
00:48:10,680 --> 00:48:13,000
Speaker 1: to bring a bunch of too much paperwork into this.

770
00:48:13,200 --> 00:48:16,279
Speaker 1: Don't worry about where this money is coming from. Tell

771
00:48:16,320 --> 00:48:18,680
Speaker 1: you what, bro, you can keep the suitcase with the

772
00:48:18,719 --> 00:48:23,359
Speaker 1: dollar sign on it. That's the situation. And this hits

773
00:48:23,400 --> 00:48:27,640
Speaker 1: renters too, because, look, you don't know who your neighbors are.

774
00:48:28,960 --> 00:48:31,920
Speaker 1: That if you live in a major city, sure that's common,

775
00:48:32,000 --> 00:48:35,440
Speaker 1: but you should be able to know who your neighbors are.

776
00:48:35,480 --> 00:48:39,760
Speaker 1: I don't think that's unreasonable. And when you are renting,

777
00:48:39,960 --> 00:48:45,120
Speaker 1: this lack of transparency can be difficult to traverse as well.

778
00:48:45,400 --> 00:48:48,120
Speaker 1: Tenants can't figure out who they should complain to if

779
00:48:48,120 --> 00:48:52,759
Speaker 1: something goes wrong. Local officials want to hold someone responsible

780
00:48:52,840 --> 00:48:56,680
Speaker 1: for violations of code and so on, but they don't know.

781
00:48:57,120 --> 00:49:00,680
Speaker 1: They don't know where the buck stops because one company

782
00:49:01,040 --> 00:49:03,680
Speaker 1: is owned by another company, is owned by another company,

783
00:49:03,920 --> 00:49:06,279
Speaker 1: is owned by another company, and their fingers On the

784
00:49:06,280 --> 00:49:12,200
Speaker 1: same hand, it's we found a hilarious example of this,

785
00:49:12,400 --> 00:49:14,440
Speaker 1: or I think it's funny, just just so you know,

786
00:49:16,360 --> 00:49:19,240
Speaker 1: just so you get an example of how how weird

787
00:49:19,600 --> 00:49:24,080
Speaker 1: this stuff can get. It took an investigation from the

788
00:49:24,120 --> 00:49:30,000
Speaker 1: Guardian and the Washington Post to figure out this problem

789
00:49:30,200 --> 00:49:34,320
Speaker 1: of anonymous ownership or hidden ownership, and they found one.

790
00:49:35,040 --> 00:49:36,880
Speaker 1: They found one example that's just funny.

791
00:49:37,320 --> 00:49:41,040
Speaker 3: Oh yeah, in the South, several states down here, you

792
00:49:41,080 --> 00:49:45,800
Speaker 3: know where we are, there were there were residents living

793
00:49:45,840 --> 00:49:49,960
Speaker 3: in all of these different properties, in different apartment complexes.

794
00:49:50,760 --> 00:49:55,200
Speaker 3: And they all learned at once when when the Guardian

795
00:49:55,200 --> 00:49:57,279
Speaker 3: of the Washington Post were doing their thing, they all

796
00:49:57,280 --> 00:50:02,879
Speaker 3: shared a secret landlord. And oh the name was spmk

797
00:50:03,480 --> 00:50:09,359
Speaker 3: x GA LLC and other really great LLC names of

798
00:50:09,440 --> 00:50:12,400
Speaker 3: just you know, a couple of different letters smashed together.

799
00:50:13,040 --> 00:50:16,319
Speaker 3: And here's here's what the news outlets found out. And

800
00:50:16,400 --> 00:50:19,920
Speaker 3: all of those people who lived in buildings owned by

801
00:50:19,920 --> 00:50:24,680
Speaker 3: these LLCs, the actual person behind all of them was

802
00:50:24,960 --> 00:50:31,120
Speaker 3: a legendary Fox News reporter and personality, Sean Hannity and

803
00:50:31,239 --> 00:50:32,800
Speaker 3: iHeartRadio host.

804
00:50:33,040 --> 00:50:36,640
Speaker 1: I believe. How does he have the time, But yeah.

805
00:50:36,200 --> 00:50:39,479
Speaker 3: Well he's made a lot of money. Well, and here's

806
00:50:39,520 --> 00:50:41,600
Speaker 3: the thing he's not. He's not a you know, a

807
00:50:41,600 --> 00:50:45,360
Speaker 3: foreign company, a foreign investor, or somebody who's coming from

808
00:50:45,560 --> 00:50:47,960
Speaker 3: a different country who's going to launder money or something.

809
00:50:48,239 --> 00:50:52,800
Speaker 3: He is just He's an example of something unexpected within

810
00:50:52,880 --> 00:50:55,560
Speaker 3: this realm, where there's someone with a ton of money

811
00:50:55,560 --> 00:50:59,400
Speaker 3: that's able to leverage that money for their own personal

812
00:50:59,440 --> 00:51:03,919
Speaker 3: gains and to get an investment in something that all

813
00:51:03,960 --> 00:51:08,239
Speaker 3: of us kind of need collectively, a place to live.

814
00:51:08,680 --> 00:51:12,879
Speaker 1: Record scratch. Hold up, you might be saying, hold up,

815
00:51:12,920 --> 00:51:16,920
Speaker 1: seth Reie the Shadow, mcdoc, hold up, hold up, Matt,

816
00:51:17,000 --> 00:51:22,160
Speaker 1: hold up Ben. Didn't you guys just talk about finsin.

817
00:51:22,760 --> 00:51:25,200
Speaker 1: Isn't it their job to figure out stuff like this?

818
00:51:25,719 --> 00:51:29,879
Speaker 1: You're right. You'd also be correct if you guessed that

819
00:51:29,960 --> 00:51:34,600
Speaker 1: Finson has routinely fought journalists seeking information about the true

820
00:51:34,680 --> 00:51:39,120
Speaker 1: owners of these various properties in cities and sometimes communities.

821
00:51:39,880 --> 00:51:44,440
Speaker 1: Freedom of Information Act requests have been filed on multiple occasions,

822
00:51:44,560 --> 00:51:48,080
Speaker 1: and they all seem to just sort of teeter off

823
00:51:48,200 --> 00:51:52,000
Speaker 1: like a coin, down an impossibly deep well into some

824
00:51:52,200 --> 00:51:56,080
Speaker 1: bureaucratic abyss. And so cases have gone to court.

825
00:51:56,080 --> 00:51:58,520
Speaker 3: Well, they've yeah, they've gone to court a bunch and

826
00:51:58,640 --> 00:52:03,759
Speaker 3: they get shut out. And the crazy thing is that

827
00:52:03,840 --> 00:52:07,359
Speaker 3: FinCEN has all of this information about these LLCs and

828
00:52:07,400 --> 00:52:09,520
Speaker 3: these companies that own all this property, but they will

829
00:52:09,560 --> 00:52:13,479
Speaker 3: not share it with the public, and many times they

830
00:52:13,560 --> 00:52:18,640
Speaker 3: cite that nineteen seventy bank law that essentially states, we

831
00:52:19,200 --> 00:52:21,759
Speaker 3: don't got to tell you, We don't have to tell

832
00:52:21,800 --> 00:52:26,840
Speaker 3: you who who actually owns these things, these corporations that

833
00:52:26,880 --> 00:52:31,440
Speaker 3: are making these financial transactions, And it's really protecting the banks.

834
00:52:33,880 --> 00:52:38,279
Speaker 1: It's protecting the banks. It's also, of course protecting to

835
00:52:38,360 --> 00:52:41,840
Speaker 1: a degree personal information. Right. You're not supposed to publish

836
00:52:41,840 --> 00:52:44,160
Speaker 1: people's social Security numbers, for example.

837
00:52:44,239 --> 00:52:47,319
Speaker 3: Sure, but it goes back to that thing you're saying, Ben,

838
00:52:47,719 --> 00:52:50,520
Speaker 3: it would be nice to know who your neighbors are.

839
00:52:51,200 --> 00:52:53,080
Speaker 3: That's one of my favorite things about living where I live.

840
00:52:53,200 --> 00:52:55,319
Speaker 3: I know all of my neighbors, and I really like

841
00:52:55,400 --> 00:52:57,759
Speaker 3: all of my neighbors. I can't imagine not being in

842
00:52:57,800 --> 00:52:58,400
Speaker 3: that situation.

843
00:52:58,840 --> 00:53:02,640
Speaker 1: I think you're across the street. Neighbor is my favorite,

844
00:53:02,840 --> 00:53:06,359
Speaker 1: somewhat eccentric fellow. He's awesome. I do not speak ill

845
00:53:06,400 --> 00:53:09,719
Speaker 1: of him. He has he has an MTG cube and

846
00:53:09,760 --> 00:53:10,520
Speaker 1: he's the best.

847
00:53:11,719 --> 00:53:14,880
Speaker 4: Again, the name of the llct.

848
00:53:17,480 --> 00:53:19,160
Speaker 3: Ll uh.

849
00:53:19,320 --> 00:53:22,640
Speaker 1: Let's pitch it. Yeah, and let's let's see if we

850
00:53:22,640 --> 00:53:25,839
Speaker 1: can pitch it in another country. Guys. You know, maybe

851
00:53:25,880 --> 00:53:28,799
Speaker 1: somebody already blew up the spot in US city. So

852
00:53:29,560 --> 00:53:32,919
Speaker 1: we need to take a page from uh Seth's book

853
00:53:33,080 --> 00:53:38,080
Speaker 1: and look abroad. Turns out the rest of the world

854
00:53:38,320 --> 00:53:41,040
Speaker 1: is aware of this phenomenon. It gets a lot more

855
00:53:41,080 --> 00:53:44,680
Speaker 1: news coverage in other parts of the planet. The US

856
00:53:44,760 --> 00:53:49,399
Speaker 1: is pretty much is lagging behind. So everywhere from Australia

857
00:53:49,560 --> 00:53:55,360
Speaker 1: to Israel, to the Netherlands, et cetera, they've all passed

858
00:53:55,440 --> 00:53:59,000
Speaker 1: laws or enforced laws I should say, shout out fence,

859
00:53:59,040 --> 00:54:04,440
Speaker 1: and they've all in force laws that better empower the

860
00:54:04,600 --> 00:54:10,160
Speaker 1: population of the country with knowledge. So Argentina, Australia, Israel, Netherlands,

861
00:54:10,760 --> 00:54:15,240
Speaker 1: any member of the public can request information about property

862
00:54:15,280 --> 00:54:18,520
Speaker 1: ownership in Russia and Ukraine. You don't have to request it,

863
00:54:18,520 --> 00:54:23,760
Speaker 1: it's already online. Public disclosure is even if you believe

864
00:54:23,760 --> 00:54:27,800
Speaker 1: the official story coming to some tax shelters. So watch

865
00:54:27,840 --> 00:54:31,440
Speaker 1: out Cayman Islands. If you are listening to this show

866
00:54:31,600 --> 00:54:35,880
Speaker 1: and you're saying, guys, that's just how business gets done.

867
00:54:35,520 --> 00:54:38,880
Speaker 1: I'm being smart about it. All my money's in the Caymans.

868
00:54:38,920 --> 00:54:43,040
Speaker 1: We'll get it out before twenty twenty one.

869
00:54:42,280 --> 00:54:45,279
Speaker 3: Or didn't they already get exposed on one of these

870
00:54:45,360 --> 00:54:48,400
Speaker 3: leaks back in the day. The Cayman Islands wasn't it them?

871
00:54:49,040 --> 00:54:52,239
Speaker 1: I think it was, Yeah, Cayman Islands a couple of

872
00:54:52,280 --> 00:54:57,480
Speaker 1: other tax shelters too. There's another side to this, there's

873
00:54:57,520 --> 00:54:59,759
Speaker 1: an extreme side. There are some countries that make it

874
00:54:59,800 --> 00:55:04,560
Speaker 1: ver actually impossible for foreigners to purchase property. Thailand is

875
00:55:04,760 --> 00:55:07,920
Speaker 1: one of the most well known examples of this because

876
00:55:07,960 --> 00:55:11,880
Speaker 1: it has quite it's got a high expatriot population, or

877
00:55:11,920 --> 00:55:15,520
Speaker 1: it's you know, like people will go from Europe or

878
00:55:15,560 --> 00:55:18,920
Speaker 1: the US or Australia and they'll live in Southeast Asia, Vietnam, Thailand,

879
00:55:19,000 --> 00:55:24,000
Speaker 1: et cetera. But they have to go through proxies often

880
00:55:24,239 --> 00:55:28,719
Speaker 1: to purchase property, which is when the rubber hits the

881
00:55:28,840 --> 00:55:31,880
Speaker 1: road in court. That's not the same thing as owning

882
00:55:31,920 --> 00:55:37,080
Speaker 1: it yourself. So other countries might be following in this direction.

883
00:55:37,360 --> 00:55:40,840
Speaker 1: In twenty sixteen, people in Vancouver put a ton of

884
00:55:40,880 --> 00:55:45,640
Speaker 1: pressure on the government of British Columbia and so they

885
00:55:45,719 --> 00:55:49,640
Speaker 1: started saying, look, if you buy a home in this area,

886
00:55:50,080 --> 00:55:54,839
Speaker 1: you have to disclose your citizenship on the sales paperwork.

887
00:55:55,200 --> 00:55:57,960
Speaker 1: And when they when they put that in play, they

888
00:55:58,080 --> 00:56:02,080
Speaker 1: found that ten to fifteen percent of houses sold all

889
00:56:02,160 --> 00:56:04,920
Speaker 1: the time, we're not going to Canadians. And they were

890
00:56:04,920 --> 00:56:08,279
Speaker 1: not going to permanent residence. They were being owned by

891
00:56:08,280 --> 00:56:12,640
Speaker 1: someone else. And so in response to this, they put

892
00:56:12,680 --> 00:56:20,359
Speaker 1: a fifteen percent tax on all sales to foreign home buyers. Discriminatory, yes, necessary.

893
00:56:19,920 --> 00:56:23,680
Speaker 3: Maybe, yeah, but you know, the Shadow just said, an

894
00:56:23,680 --> 00:56:25,960
Speaker 3: extra fifteen percent, no worries.

895
00:56:28,880 --> 00:56:32,520
Speaker 1: Oh, what they really enjoyed about this episode is watching

896
00:56:32,719 --> 00:56:36,719
Speaker 1: is watching seth just like very generously chuckle along with

897
00:56:36,920 --> 00:56:41,279
Speaker 1: them with our scenario that we're not letting go of No.

898
00:56:41,800 --> 00:56:44,480
Speaker 4: I like this scenario. I like to pretend that I

899
00:56:44,560 --> 00:56:47,359
Speaker 4: have a bank vault the size of like a skyscraper

900
00:56:47,400 --> 00:56:49,600
Speaker 4: full of money. That that's something I will never achieve

901
00:56:49,680 --> 00:56:50,920
Speaker 4: except in this podcast.

902
00:56:53,040 --> 00:56:56,000
Speaker 3: But actually I'm being I was incorrect and I'm being

903
00:56:56,040 --> 00:57:00,640
Speaker 3: facetious there. The Shadow would say, while why would I

904
00:57:00,680 --> 00:57:03,799
Speaker 3: spend an extra fifteen bucks for this investment in this

905
00:57:04,120 --> 00:57:04,840
Speaker 3: money laundering?

906
00:57:04,880 --> 00:57:05,560
Speaker 1: Don't call it that?

907
00:57:06,080 --> 00:57:08,000
Speaker 3: Why would I do that? Why don't I just buy

908
00:57:08,040 --> 00:57:11,280
Speaker 3: it somewhere else, like in Seattle. Let's let's do that instead.

909
00:57:11,920 --> 00:57:16,400
Speaker 3: And the result of this fifteen percent tax increase to

910
00:57:16,880 --> 00:57:22,520
Speaker 3: foreign purchasers of homes, dude, Vancouver, the.

911
00:57:23,080 --> 00:57:25,240
Speaker 1: Average is it the average? Yeah?

912
00:57:25,800 --> 00:57:29,720
Speaker 3: The average price of homes dropped about twenty percent.

913
00:57:30,000 --> 00:57:31,360
Speaker 1: In just a few months.

914
00:57:31,840 --> 00:57:35,240
Speaker 3: Yeah, it wasn't like over a decade. No no, no, no, no, no,

915
00:57:35,600 --> 00:57:38,360
Speaker 3: this was almost immediate. How crazy is that?

916
00:57:39,080 --> 00:57:39,200
Speaker 4: Uh?

917
00:57:39,280 --> 00:57:43,720
Speaker 1: Yeah, And that's specifically single family properties. So think of

918
00:57:43,800 --> 00:57:45,920
Speaker 1: like for a lot of people, that's a starter home,

919
00:57:46,120 --> 00:57:50,440
Speaker 1: right and my house right, I mean, that's that's a

920
00:57:50,480 --> 00:57:55,120
Speaker 1: great house to buy. Now it's twenty percent less of

921
00:57:55,160 --> 00:57:59,200
Speaker 1: a pipe dream, which is a beautiful thing. Until in Vancouver.

922
00:57:59,360 --> 00:58:02,560
Speaker 1: In Vancouver, I was gonna say, until we consider the

923
00:58:02,640 --> 00:58:08,080
Speaker 1: ripple effects this has, because yes, our sethree the shadow

924
00:58:08,200 --> 00:58:10,720
Speaker 1: McDuck says, Okay, well, why am I going to pay

925
00:58:11,400 --> 00:58:17,360
Speaker 1: fifteen percent tax in Vancouver? You guys are crazy. I'm

926
00:58:17,360 --> 00:58:20,280
Speaker 1: going to check out Toronto. As a result, At the

927
00:58:20,280 --> 00:58:24,760
Speaker 1: same time, the prices are dropping in Vancouver, they are

928
00:58:25,200 --> 00:58:30,800
Speaker 1: rising in Wow, that's a message is definitely well now

929
00:58:30,880 --> 00:58:34,520
Speaker 1: it's a burd So they were they were rising in

930
00:58:34,600 --> 00:58:37,800
Speaker 1: other cities because investors still wanted to stay in Canada

931
00:58:38,840 --> 00:58:41,520
Speaker 1: and it didn't really matter which city they had a

932
00:58:41,560 --> 00:58:41,960
Speaker 1: piece of.

933
00:58:42,640 --> 00:58:47,040
Speaker 3: Well, and think about that. The reason why there's such

934
00:58:47,040 --> 00:58:50,240
Speaker 3: a strong feeling that this is money laundering is because

935
00:58:50,440 --> 00:58:53,560
Speaker 3: it doesn't matter if you're paying more like if those

936
00:58:53,600 --> 00:58:55,720
Speaker 3: prices continue to rise and you keep buying them. It

937
00:58:55,720 --> 00:58:58,400
Speaker 3: doesn't matter if they cost more. It's where your money

938
00:58:58,440 --> 00:59:01,920
Speaker 3: is going. If you're money is going into the investment

939
00:59:02,120 --> 00:59:05,320
Speaker 3: of the equity of that property, and in the hopes

940
00:59:05,360 --> 00:59:08,720
Speaker 3: that it's going to continue to increase, rather than just

941
00:59:08,840 --> 00:59:11,720
Speaker 3: paying a bribe to the government fifteen percent of whatever

942
00:59:11,720 --> 00:59:14,400
Speaker 3: that cost is, you're going to make the decision to

943
00:59:14,520 --> 00:59:18,640
Speaker 3: just put more money, or launder more money into that

944
00:59:18,800 --> 00:59:20,120
Speaker 3: other property somewhere else.

945
00:59:21,280 --> 00:59:23,520
Speaker 1: And of course this is not to say that this

946
00:59:23,640 --> 00:59:27,880
Speaker 1: is a situation in which all foreign investors are all

947
00:59:27,920 --> 00:59:33,360
Speaker 1: foreign buyers of homes are automatically criminals. Right. There are,

948
00:59:33,640 --> 00:59:36,920
Speaker 1: of course compelling reasons, but the money laundering thing is

949
00:59:36,960 --> 00:59:44,120
Speaker 1: a huge loophole. It's naive and indeed insulting to pretend

950
00:59:44,360 --> 00:59:47,680
Speaker 1: that that's not happening. It's just like the private art

951
00:59:47,760 --> 00:59:51,920
Speaker 1: dealers in the world. Right, there's some spooky financial stuff

952
00:59:51,960 --> 00:59:55,080
Speaker 1: going on there, and we're whistling in the graveyard if

953
00:59:55,080 --> 01:00:00,680
Speaker 1: we pretend that we don't know what's going on. So

954
01:00:00,720 --> 01:00:03,240
Speaker 1: something else happened as well. You may have heard of it.

955
01:00:03,360 --> 01:00:08,920
Speaker 1: The coronavirus pandemic COVID nineteen the US for this and

956
01:00:09,000 --> 01:00:12,120
Speaker 1: other reasons, had often been seen as a very stable

957
01:00:12,160 --> 01:00:14,439
Speaker 1: place to make an investment. That is not so much

958
01:00:14,480 --> 01:00:18,880
Speaker 1: the case anymore. Again, not just because of COVID, several

959
01:00:18,880 --> 01:00:22,200
Speaker 1: compelling reasons. So it seemed for a little bit that

960
01:00:22,360 --> 01:00:25,600
Speaker 1: in twenty nineteen the problem might start to mitigate itself.

961
01:00:26,000 --> 01:00:29,440
Speaker 1: Foreign purchases of homes in the US plummeted by thirty

962
01:00:29,480 --> 01:00:32,640
Speaker 1: six percent in July of twenty nineteen, and this was

963
01:00:32,800 --> 01:00:36,360
Speaker 1: largely due, according to the experts, to the fact that

964
01:00:36,480 --> 01:00:41,160
Speaker 1: Chinese nationals were not so hot on the US market.

965
01:00:41,200 --> 01:00:45,440
Speaker 1: They weren't trying to buy homes at exorbitant all cash prices.

966
01:00:45,720 --> 01:00:48,280
Speaker 1: I think the total value of stuff that non US

967
01:00:48,480 --> 01:00:52,800
Speaker 1: residents overall bought in twenty nineteen was seventy seven point

968
01:00:52,920 --> 01:00:56,080
Speaker 1: nine billion, which sounds like a huge number because it is.

969
01:00:56,160 --> 01:01:00,000
Speaker 1: It's a cartoonishly huge number. But that was down from

970
01:01:00,240 --> 01:01:05,040
Speaker 1: the year before. In twenty eighteen, non US residents or

971
01:01:05,080 --> 01:01:09,080
Speaker 1: foreigners bought about one hundred and twenty one billion dollars

972
01:01:09,240 --> 01:01:10,520
Speaker 1: worth of property.

973
01:01:10,640 --> 01:01:12,760
Speaker 3: And the big thing there is that it was almost

974
01:01:12,920 --> 01:01:18,600
Speaker 3: one hundred thousand fewer properties in total in there were

975
01:01:18,600 --> 01:01:21,200
Speaker 3: purchasing twenty nineteen compared to twenty eighteen.

976
01:01:22,080 --> 01:01:26,440
Speaker 1: And this happened for a number of reasons. Partially, the

977
01:01:26,560 --> 01:01:32,160
Speaker 1: US had some still has some difficult domestic conditions affecting

978
01:01:32,200 --> 01:01:36,400
Speaker 1: its housing market. And also, to be less US centric

979
01:01:36,440 --> 01:01:40,160
Speaker 1: about it, the government of China was tightening currency controls.

980
01:01:40,760 --> 01:01:44,360
Speaker 1: They were paying more attention to the laundromats basically, and

981
01:01:45,320 --> 01:01:50,080
Speaker 1: of course coronavirus affected everything. It's the breakout star of

982
01:01:50,120 --> 01:01:55,600
Speaker 1: twenty twenty. Yet this practice continues today. You might be

983
01:01:55,680 --> 01:01:59,360
Speaker 1: surprised to learn who your neighbors are. And there isn't

984
01:01:59,400 --> 01:02:02,480
Speaker 1: a clear cut answer here because think about it. Okay,

985
01:02:04,080 --> 01:02:07,920
Speaker 1: I'm a country, I want outside money coming in. It

986
01:02:08,080 --> 01:02:12,040
Speaker 1: makes the whole Ponzi scheme of the economy continue to run.

987
01:02:13,960 --> 01:02:14,040
Speaker 3: In.

988
01:02:14,120 --> 01:02:19,560
Speaker 1: These investors aren't automatically doing something illegal. This stuff is remembered.

989
01:02:19,640 --> 01:02:22,840
Speaker 1: Nothing is illegal until somebody writes a law about it.

990
01:02:23,320 --> 01:02:28,320
Speaker 1: So now we can see the side of the person

991
01:02:28,320 --> 01:02:31,360
Speaker 1: who says, you know, I'm not a criminal. I want

992
01:02:31,400 --> 01:02:36,240
Speaker 1: to stay. I want to safeguard my future somehow, you know.

993
01:02:36,440 --> 01:02:41,120
Speaker 1: And we can also see the side of the people who,

994
01:02:41,600 --> 01:02:45,560
Speaker 1: like many folks listening today, live in cities affected by

995
01:02:45,600 --> 01:02:48,360
Speaker 1: this trend. Not only do they live in these cities,

996
01:02:48,360 --> 01:02:50,040
Speaker 1: but they would also like to live in a house

997
01:02:50,360 --> 01:02:54,880
Speaker 1: in these cities, and they have a perfectly reasonable desire

998
01:02:55,120 --> 01:02:58,440
Speaker 1: to know what the hell is going on, who actually

999
01:02:58,480 --> 01:03:02,960
Speaker 1: owns what? And the problems compounded because it is very real,

1000
01:03:03,200 --> 01:03:07,240
Speaker 1: but it can be skewed by racism and nationalism in

1001
01:03:07,360 --> 01:03:11,080
Speaker 1: any conversation because I don't know about you, guys, but

1002
01:03:11,120 --> 01:03:16,960
Speaker 1: I find it intellectually lazy and even worse, uninteresting when

1003
01:03:17,000 --> 01:03:21,080
Speaker 1: people start saying, well, you know, China is coming in

1004
01:03:21,120 --> 01:03:26,000
Speaker 1: and they're buying up all this stuff, and it's like, really, like,

1005
01:03:26,000 --> 01:03:29,240
Speaker 1: look at Jury's twelve people have a hard time working together.

1006
01:03:29,320 --> 01:03:31,840
Speaker 1: Are you telling me that one point three billion people

1007
01:03:32,160 --> 01:03:35,560
Speaker 1: all agreed on some sort of coordinated plan. No, these

1008
01:03:35,560 --> 01:03:39,880
Speaker 1: are individual actors. These are smaller groups. Sometimes they're very

1009
01:03:39,960 --> 01:03:44,560
Speaker 1: large corporations. But that's still not like a monolithic thing happening,

1010
01:03:44,600 --> 01:03:47,320
Speaker 1: and we can't be we can't fall into that trap.

1011
01:03:47,560 --> 01:03:50,479
Speaker 3: That would be a great long term plan, though, buy

1012
01:03:50,560 --> 01:03:53,240
Speaker 3: up all the property in major cities and just let

1013
01:03:53,280 --> 01:03:53,959
Speaker 3: it go to blight.

1014
01:03:54,880 --> 01:03:59,680
Speaker 1: Then just be like mmmm, sorry, I love that voice.

1015
01:04:00,080 --> 01:04:04,560
Speaker 1: It sounds like one of the shadows friends too mad.

1016
01:04:06,640 --> 01:04:11,280
Speaker 1: So that's that's where we are now. We also have

1017
01:04:11,360 --> 01:04:17,000
Speaker 1: to consider that there's a limited amount of existing housing.

1018
01:04:17,080 --> 01:04:19,640
Speaker 1: As we mentioned at the top, it's not as if

1019
01:04:19,680 --> 01:04:24,440
Speaker 1: this problem never existed before, for investors conspired and got evolved.

1020
01:04:24,960 --> 01:04:26,960
Speaker 1: We also have to consider one thing that I think

1021
01:04:27,000 --> 01:04:30,240
Speaker 1: a lot of people have been considering recently, which is this,

1022
01:04:30,640 --> 01:04:34,760
Speaker 1: If you want to get residency in another country, it

1023
01:04:34,800 --> 01:04:38,520
Speaker 1: can be tremendously difficult, but there is one huge loophole

1024
01:04:38,560 --> 01:04:42,040
Speaker 1: that most countries have, and that is an investor visa.

1025
01:04:42,720 --> 01:04:45,400
Speaker 1: You can just pay a country to let you live there.

1026
01:04:45,880 --> 01:04:50,280
Speaker 1: It is expensive. Yes, the dream country that you probably

1027
01:04:50,360 --> 01:04:53,960
Speaker 1: pictured just now as we describe this is expensive. I

1028
01:04:54,000 --> 01:04:56,480
Speaker 1: assure you, what were you thinking, Seth, what was your

1029
01:04:56,560 --> 01:04:57,200
Speaker 1: dream country?

1030
01:04:58,160 --> 01:04:59,200
Speaker 4: I was thinking Canada?

1031
01:05:00,360 --> 01:05:02,760
Speaker 1: Really, I love Canada.

1032
01:05:02,840 --> 01:05:05,480
Speaker 4: I grew up in the Pacific Northwest and I would

1033
01:05:05,520 --> 01:05:08,320
Speaker 4: go up to Vancouver specifically all the time for concerts

1034
01:05:08,680 --> 01:05:11,200
Speaker 4: and man, oh man, great country. Love that place.

1035
01:05:11,600 --> 01:05:11,920
Speaker 1: Nice.

1036
01:05:12,880 --> 01:05:16,200
Speaker 3: I was immediately drawn to Australia. I don't I don't

1037
01:05:16,200 --> 01:05:19,080
Speaker 3: know why. I just I just want to be over there.

1038
01:05:19,280 --> 01:05:22,160
Speaker 1: That would be awesome. Yeah, let me crash at you

1039
01:05:22,200 --> 01:05:22,880
Speaker 1: guys houses.

1040
01:05:23,840 --> 01:05:25,840
Speaker 4: We'll ben don't leave us hanging here. If you had

1041
01:05:25,880 --> 01:05:28,040
Speaker 4: an ideal country, Oh, what would yours be.

1042
01:05:28,840 --> 01:05:35,880
Speaker 1: My reasoning is weird and not practically north No, I

1043
01:05:35,960 --> 01:05:39,160
Speaker 1: just want to visit without supporting the regime. It's tough.

1044
01:05:39,480 --> 01:05:46,280
Speaker 1: But I've always dreamed about checking out Bhuton, but that

1045
01:05:46,360 --> 01:05:48,320
Speaker 1: may be more of a visit place. I don't know.

1046
01:05:48,520 --> 01:05:50,919
Speaker 1: I don't want to live in one country forever, which

1047
01:05:50,920 --> 01:05:53,160
Speaker 1: are hopefully words that I don't come to regret later.

1048
01:05:53,400 --> 01:05:59,400
Speaker 1: Canada is dope, for sure. I'll remote island would be nice.

1049
01:05:59,680 --> 01:06:02,320
Speaker 1: Maybe maybe just find it out of the way, place

1050
01:06:02,960 --> 01:06:07,160
Speaker 1: high enough to survive the rising sea levels and just

1051
01:06:07,320 --> 01:06:10,800
Speaker 1: pretend that just do like a castaway situation. I'll do

1052
01:06:10,840 --> 01:06:12,720
Speaker 1: a castaway situation with Wi Fi or.

1053
01:06:12,640 --> 01:06:17,000
Speaker 3: Something that's an excellent idea, and you know, you come

1054
01:06:17,080 --> 01:06:19,960
Speaker 3: up with one point five million and just buy three

1055
01:06:20,040 --> 01:06:22,320
Speaker 3: homes in three different countries and then you'll be.

1056
01:06:22,280 --> 01:06:27,720
Speaker 1: Good to go. Just use those visas all over the place. Oh, Okay, Scandinavia,

1057
01:06:28,160 --> 01:06:30,840
Speaker 1: Turkey minus the crazy guys. I don't know, and I

1058
01:06:31,000 --> 01:06:37,280
Speaker 1: admire you for being so focused and having this articulated vision. Okay,

1059
01:06:37,080 --> 01:06:40,440
Speaker 1: they do have visas, and they are investor visas. They

1060
01:06:40,440 --> 01:06:43,160
Speaker 1: are expensive. In the US, we have something called the

1061
01:06:43,160 --> 01:06:48,240
Speaker 1: EB five visa. This gives green cards to people who

1062
01:06:48,280 --> 01:06:53,960
Speaker 1: invest five hundred thousand dollars in a US business. So

1063
01:06:54,040 --> 01:06:56,360
Speaker 1: think about it. If you buy an expensive enough home

1064
01:06:57,400 --> 01:07:00,919
Speaker 1: and you set it up as a rental and you

1065
01:07:01,000 --> 01:07:04,320
Speaker 1: set up a business or a show company that is like,

1066
01:07:04,560 --> 01:07:10,480
Speaker 1: you know, totally legit rental Properties LLC. And all you

1067
01:07:10,520 --> 01:07:13,240
Speaker 1: do is rent that one home. Haven't you just started

1068
01:07:13,240 --> 01:07:18,520
Speaker 1: a business? Did you just buy a house and get

1069
01:07:18,560 --> 01:07:21,480
Speaker 1: sit and get residency thrown in like the same way

1070
01:07:21,520 --> 01:07:23,280
Speaker 1: you get a free cooozy if you buy a car

1071
01:07:23,400 --> 01:07:23,840
Speaker 1: or something.

1072
01:07:24,040 --> 01:07:27,440
Speaker 3: I don't know now, hold on, we're recording this on

1073
01:07:27,480 --> 01:07:32,720
Speaker 3: November fourth here within the United States. I wonder how

1074
01:07:32,720 --> 01:07:36,400
Speaker 3: many people listening right now. It's probably not November fourth anymore.

1075
01:07:36,800 --> 01:07:40,760
Speaker 3: A lot has happened, I'm assuming since today. But you

1076
01:07:40,800 --> 01:07:46,320
Speaker 3: may be thinking, hmmm, property somewhere else. It might be nice.

1077
01:07:46,440 --> 01:07:48,400
Speaker 3: It might be a nice thing to have just in case.

1078
01:07:49,200 --> 01:07:51,320
Speaker 3: I don't know what's happening right now. Maybe everything's great,

1079
01:07:51,320 --> 01:07:57,520
Speaker 3: hopefully everything's great. But you're welcome for this intel.

1080
01:07:59,600 --> 01:08:02,400
Speaker 1: South Now. I don't know this is gonna haunt me.

1081
01:08:05,280 --> 01:08:07,200
Speaker 1: I have a book I have to share with you guys.

1082
01:08:07,240 --> 01:08:09,840
Speaker 1: I think I've mentioned it before, but I know Matt

1083
01:08:10,800 --> 01:08:12,760
Speaker 1: you've seen it in seth I think you would dig it.

1084
01:08:12,760 --> 01:08:16,160
Speaker 1: It's called The Atlas of Remote Islands. It's probably one

1085
01:08:16,200 --> 01:08:21,040
Speaker 1: of my favorite books. They're pretty easy. Well, once you

1086
01:08:21,120 --> 01:08:24,680
Speaker 1: get there, it's pretty easy to stay. I don't know.

1087
01:08:24,760 --> 01:08:27,479
Speaker 1: I promise you both, I'm going to figure out a

1088
01:08:27,520 --> 01:08:31,240
Speaker 1: country that would be a dream country, and then I'll

1089
01:08:31,240 --> 01:08:33,760
Speaker 1: commit to the bit. But look, I have so many

1090
01:08:33,760 --> 01:08:36,360
Speaker 1: commitment problems. I can't even get a temporary tattoo, you

1091
01:08:36,400 --> 01:08:38,800
Speaker 1: know what I mean. That's like all afternoon and I

1092
01:08:38,880 --> 01:08:43,479
Speaker 1: may come to regret it. But but you guys, you're

1093
01:08:43,520 --> 01:08:49,519
Speaker 1: absolutely right, And Matt you are as always astute and

1094
01:08:49,600 --> 01:08:53,240
Speaker 1: profoundly so. Here many many things are in flux right now,

1095
01:08:53,360 --> 01:08:58,280
Speaker 1: and many many people have been at least doing cursory

1096
01:08:58,400 --> 01:09:02,519
Speaker 1: research in what am it is? How it works? Is

1097
01:09:02,560 --> 01:09:09,599
Speaker 1: there an ancestry loophole I could use? Did that tiny

1098
01:09:10,080 --> 01:09:15,400
Speaker 1: rural island in Ireland really mean? US residents are welcome

1099
01:09:15,479 --> 01:09:19,639
Speaker 1: to visit their Facebook page get overloaded by the way

1100
01:09:19,800 --> 01:09:22,799
Speaker 1: with request. There are a lot of questions to answer,

1101
01:09:23,080 --> 01:09:26,880
Speaker 1: but the fact is most people in the US are

1102
01:09:26,920 --> 01:09:29,360
Speaker 1: probably not going to move to another country, and a

1103
01:09:29,400 --> 01:09:32,719
Speaker 1: lot of investors are not planning to move to the US.

1104
01:09:32,920 --> 01:09:39,200
Speaker 1: They're just fighting to preserve their financial stability, and we can't.

1105
01:09:39,560 --> 01:09:43,200
Speaker 1: You know, we can't throw stones like it's there's something

1106
01:09:43,280 --> 01:09:49,240
Speaker 1: so dangerously tempting and satisfying about saying it's not our fault.

1107
01:09:49,240 --> 01:09:52,360
Speaker 1: You know, it's all these liertal factors. We're doing the

1108
01:09:52,400 --> 01:09:55,160
Speaker 1: best we can. But the fact of the matter is this,

1109
01:09:55,439 --> 01:09:58,960
Speaker 1: It was a problem before all this stuff happened. Our

1110
01:09:59,040 --> 01:10:03,479
Speaker 1: country and men countries have an affordability crisis. The majority

1111
01:10:03,479 --> 01:10:07,120
Speaker 1: of the human population lives in urban areas, and that

1112
01:10:07,200 --> 01:10:10,960
Speaker 1: means that many of the jobs that would pay a

1113
01:10:11,000 --> 01:10:14,759
Speaker 1: livable wage are in those urban areas, and that means

1114
01:10:14,800 --> 01:10:18,120
Speaker 1: that housing ends up being more expensive, and that means

1115
01:10:18,160 --> 01:10:20,559
Speaker 1: I'm very give them house a cookie here. That means

1116
01:10:20,560 --> 01:10:23,519
Speaker 1: that we find ourselves in a catch twenty two. You

1117
01:10:23,600 --> 01:10:25,360
Speaker 1: need to live in a city so you can find

1118
01:10:25,360 --> 01:10:28,680
Speaker 1: a solid job, so you can afford a house, but

1119
01:10:28,720 --> 01:10:31,000
Speaker 1: you can't live in the city because you can't afford

1120
01:10:31,000 --> 01:10:33,200
Speaker 1: to live there and find a job, because it's too

1121
01:10:33,200 --> 01:10:36,160
Speaker 1: expensive to get your foot in the financial door. And

1122
01:10:36,200 --> 01:10:38,679
Speaker 1: that's like, I don't know what's the answer. What should

1123
01:10:38,680 --> 01:10:41,519
Speaker 1: governments do? Matt, Can you solve this? Yes?

1124
01:10:41,800 --> 01:10:47,519
Speaker 3: The answer is the suburb. Oh, the suburb. If it

1125
01:10:47,560 --> 01:10:53,800
Speaker 3: weren't for amazing schools in out in your areas, you

1126
01:10:53,840 --> 01:10:57,519
Speaker 3: wouldn't be so expensive. And yet you are, but you're

1127
01:10:57,600 --> 01:11:01,360
Speaker 3: so far away about approximate leave forty five minutes to

1128
01:11:01,479 --> 01:11:05,120
Speaker 3: an hour and a half. Oh, suburbs the answer to

1129
01:11:05,240 --> 01:11:06,960
Speaker 3: all things.

1130
01:11:07,760 --> 01:11:09,760
Speaker 1: I hope it's okay that I hype baned you a

1131
01:11:09,760 --> 01:11:13,680
Speaker 1: little with that music. That was great. The spirit moves us.

1132
01:11:14,200 --> 01:11:19,920
Speaker 1: I saw seth get a get a little tier. But

1133
01:11:19,960 --> 01:11:22,599
Speaker 1: it is true that was the answer for so long.

1134
01:11:22,720 --> 01:11:26,519
Speaker 3: It was you know, a city center, and then literally

1135
01:11:26,520 --> 01:11:31,080
Speaker 3: you go a diameter of however many miles, like a

1136
01:11:31,200 --> 01:11:34,680
Speaker 3: driving distance of forty five minutes two half an hour

1137
01:11:34,720 --> 01:11:37,840
Speaker 3: and a half, and you make city centers there and

1138
01:11:37,880 --> 01:11:42,519
Speaker 3: they thrive because it's it's cheaper there. And then because

1139
01:11:42,520 --> 01:11:45,400
Speaker 3: there are so many people investing in those areas, you

1140
01:11:45,479 --> 01:11:48,519
Speaker 3: get more investment in the infrastructure and things like schools,

1141
01:11:48,560 --> 01:11:50,920
Speaker 3: and then those thrive and thrive, and then you got

1142
01:11:50,920 --> 01:11:53,320
Speaker 3: to drive forty five minutes from that place to start

1143
01:11:53,320 --> 01:11:56,120
Speaker 3: the next one to make it affordable, and it just

1144
01:11:56,160 --> 01:11:57,439
Speaker 3: goes on and on and on.

1145
01:11:57,840 --> 01:12:00,519
Speaker 1: Oh and the future of the suburbs, APPS is an

1146
01:12:00,560 --> 01:12:04,000
Speaker 1: episode for Different Days what I very much want to

1147
01:12:04,040 --> 01:12:10,080
Speaker 1: explore with you because I've yeah troubling stuff about them

1148
01:12:10,160 --> 01:12:13,400
Speaker 1: in the future. No, I totally agree with you.

1149
01:12:13,520 --> 01:12:16,479
Speaker 3: What about the future of the isolated mountain cabin. That's

1150
01:12:16,520 --> 01:12:18,679
Speaker 3: what I want to know about because that's where I'm headed.

1151
01:12:19,160 --> 01:12:22,080
Speaker 4: Did you guys ever see Blade Runner twenty forty nine. Yes,

1152
01:12:23,280 --> 01:12:26,599
Speaker 4: I loved there's a very subtle suburb joke in Blade

1153
01:12:26,640 --> 01:12:31,559
Speaker 4: Runner twenty forty nine where you know, Ryan Gosling arrived

1154
01:12:31,640 --> 01:12:34,559
Speaker 4: in San Diego and the chiron on the screen said

1155
01:12:34,960 --> 01:12:39,320
Speaker 4: San Diego just outside Los Angeles, And I thought that

1156
01:12:39,479 --> 01:12:42,920
Speaker 4: was a very good joke because that makes sense. The

1157
01:12:43,040 --> 01:12:46,559
Speaker 4: urban sprawl of Los Angeles will eventually get so big

1158
01:12:46,880 --> 01:12:49,160
Speaker 4: that San Diego, which is very south, if you guys

1159
01:12:49,200 --> 01:12:52,560
Speaker 4: don't know your geography, will just be a suburb. A

1160
01:12:53,200 --> 01:12:55,559
Speaker 4: suburb of Los Angeles will be San Diego, you.

1161
01:12:55,520 --> 01:12:59,760
Speaker 1: Know, lord, And that's where this is a question we

1162
01:12:59,800 --> 01:13:03,960
Speaker 1: want to pass on to you all. I Seth would

1163
01:13:04,040 --> 01:13:07,720
Speaker 1: love to have you back for our exploration of the

1164
01:13:07,880 --> 01:13:11,760
Speaker 1: suburbs and some of the things on the possible horizon

1165
01:13:12,240 --> 01:13:17,839
Speaker 1: for that kind of living situation. Should governments do anything?

1166
01:13:17,960 --> 01:13:20,120
Speaker 1: How do you write a law that does this that

1167
01:13:20,280 --> 01:13:25,000
Speaker 1: is not a laughably discriminatory. There is a bipartisan anti

1168
01:13:25,080 --> 01:13:31,080
Speaker 1: money laundering bill that passed the House of Reps in October. Actually,

1169
01:13:31,560 --> 01:13:35,240
Speaker 1: this would require banks to disclose the true owners of

1170
01:13:35,320 --> 01:13:42,040
Speaker 1: shell companies to finsin, but still would keep the public

1171
01:13:42,080 --> 01:13:45,200
Speaker 1: in the dark. So the question I think here that

1172
01:13:45,760 --> 01:13:50,120
Speaker 1: everyone is wrestling with with these conspiracies aside, and they

1173
01:13:50,160 --> 01:13:53,559
Speaker 1: are conspiracies, especially if they're money laundering, the question is this,

1174
01:13:53,880 --> 01:13:57,760
Speaker 1: how do we square that American dream, the idea that

1175
01:13:57,920 --> 01:14:01,760
Speaker 1: all should be welcome, when it seems that pursuit of

1176
01:14:01,760 --> 01:14:04,800
Speaker 1: that dream by one party may render the same dream

1177
01:14:04,840 --> 01:14:09,439
Speaker 1: impossible for others. Isn't that how it's always been. Yes,

1178
01:14:09,640 --> 01:14:12,240
Speaker 1: no one has figured this out yet, just.

1179
01:14:12,200 --> 01:14:13,960
Speaker 3: The way it's I think that's the way the American

1180
01:14:14,040 --> 01:14:16,880
Speaker 3: dream is supposed to be. You gotta fight over it.

1181
01:14:18,640 --> 01:14:22,160
Speaker 3: You can't have your dream because I got mine. Like

1182
01:14:22,280 --> 01:14:24,720
Speaker 3: I know, I'm sorry, that's that's a messed up, and

1183
01:14:24,760 --> 01:14:27,479
Speaker 3: that's not true necessarily. I think maybe it feels that

1184
01:14:27,520 --> 01:14:28,400
Speaker 3: way sometimes.

1185
01:14:28,520 --> 01:14:31,200
Speaker 1: I completely agree with you, man, I'm one hundred percent

1186
01:14:31,240 --> 01:14:33,519
Speaker 1: on board. In fact, I would expand that and say

1187
01:14:33,640 --> 01:14:38,200
Speaker 1: it's it's a programming flaw of the species in general,

1188
01:14:38,400 --> 01:14:42,080
Speaker 1: like a motto like humans. The tagline would be like humans,

1189
01:14:42,479 --> 01:14:44,640
Speaker 1: I got mine.

1190
01:14:45,920 --> 01:14:49,040
Speaker 3: Uh And that sounds like that sounds like a like

1191
01:14:49,080 --> 01:14:53,280
Speaker 3: a slogan for the robot overlords humans, I've got mine.

1192
01:14:54,920 --> 01:14:59,200
Speaker 1: Right, Uh yeah, let's do an episode just for future

1193
01:14:59,320 --> 01:15:05,160
Speaker 1: robots about about systemic inequalities in the human owning market.

1194
01:15:05,840 --> 01:15:11,160
Speaker 4: Oh god, yeah, I could see humans basically being the

1195
01:15:11,200 --> 01:15:15,040
Speaker 4: puppy of the of the robot overlords. Like I think

1196
01:15:15,080 --> 01:15:17,360
Speaker 4: I'm okay with that life, honestly, Like if that was

1197
01:15:17,400 --> 01:15:21,320
Speaker 4: presented to me as an option, you know, yeah, my

1198
01:15:21,640 --> 01:15:25,160
Speaker 4: puppies live very well, so who knows.

1199
01:15:25,600 --> 01:15:28,040
Speaker 1: Yeah, yes, as long as it came with a collar

1200
01:15:28,080 --> 01:15:30,320
Speaker 1: and a water bowl, I guess would be fine. And

1201
01:15:30,479 --> 01:15:32,599
Speaker 1: is it a cool robot? You know what I mean?

1202
01:15:32,760 --> 01:15:36,960
Speaker 1: Like does it do interesting things? I'm sure it will

1203
01:15:37,000 --> 01:15:40,360
Speaker 1: teach you tricks and you'll be like reciting pie to

1204
01:15:40,479 --> 01:15:43,840
Speaker 1: the polite board applause of the robot friends who came

1205
01:15:43,920 --> 01:15:47,840
Speaker 1: over for dinner. Anyhow, Anyhow, this stuff aside, we do

1206
01:15:47,920 --> 01:15:49,439
Speaker 1: want to know what you think right now. One of

1207
01:15:49,479 --> 01:15:53,840
Speaker 1: the most important questions is why isn't Finson releasing the

1208
01:15:53,880 --> 01:15:58,760
Speaker 1: info that it has. Is there an incentive not to

1209
01:15:58,840 --> 01:16:01,920
Speaker 1: do so, and if so, what is that incentive. We

1210
01:16:02,000 --> 01:16:04,680
Speaker 1: hope that we have been very clear that we don't

1211
01:16:04,720 --> 01:16:11,240
Speaker 1: want to mischaracterize this. The problems are domestic, but the

1212
01:16:11,560 --> 01:16:15,120
Speaker 1: Ford investment thing is something that hasn't hasn't really been

1213
01:16:15,160 --> 01:16:17,720
Speaker 1: talked about, and we don't want it to lead to zenophobia.

1214
01:16:17,800 --> 01:16:22,200
Speaker 1: But again, it just we've reiterated it before. It is

1215
01:16:22,280 --> 01:16:25,240
Speaker 1: not crazy to want to know who your neighbors are.

1216
01:16:25,680 --> 01:16:27,880
Speaker 3: That's right, And if you do want to reach out

1217
01:16:27,920 --> 01:16:29,799
Speaker 3: to us, we are all over social media.

1218
01:16:30,200 --> 01:16:31,439
Speaker 1: You can find us on.

1219
01:16:31,320 --> 01:16:35,480
Speaker 3: Twitter and Facebook where conspiracy stuff on Instagram or conspiracy

1220
01:16:35,560 --> 01:16:39,200
Speaker 3: stuff show. If you don't want to use those things,

1221
01:16:39,680 --> 01:16:42,200
Speaker 3: you can give us a call. Our number is one

1222
01:16:42,400 --> 01:16:47,960
Speaker 3: eight three three STDWYTK, and we're especially interested to hear

1223
01:16:48,000 --> 01:16:51,479
Speaker 3: from anyone out there who has at one time worked

1224
01:16:51,600 --> 01:16:55,200
Speaker 3: for the Financial Crimes Enforcement Network. Do you want to

1225
01:16:55,240 --> 01:16:57,600
Speaker 3: blow a whistle or maybe not that you don't have

1226
01:16:57,640 --> 01:16:59,040
Speaker 3: to do, You don't have to go that far, just

1227
01:16:59,600 --> 01:17:02,280
Speaker 3: call us and explain some of this a little bit further,

1228
01:17:02,320 --> 01:17:07,320
Speaker 3: because it's difficult to understand why things are as they are.

1229
01:17:07,640 --> 01:17:11,240
Speaker 1: And we'd also like to hear from folks who have

1230
01:17:11,520 --> 01:17:16,240
Speaker 1: relocated permanently from one country to another. Tell us who

1231
01:17:16,280 --> 01:17:19,120
Speaker 1: are circumstances? Tell us what led you to this decision,

1232
01:17:19,200 --> 01:17:22,800
Speaker 1: and tell us if all things being equal, you would

1233
01:17:22,840 --> 01:17:25,519
Speaker 1: do the same thing. Again, We're very interested in this story.

1234
01:17:25,560 --> 01:17:27,720
Speaker 1: We can't wait to hear from you. As Matt said,

1235
01:17:27,720 --> 01:17:29,639
Speaker 1: you can find us on the phone. As you said earlier,

1236
01:17:29,680 --> 01:17:31,920
Speaker 1: you can find us on YouTube, YouTube dot com, slash

1237
01:17:31,920 --> 01:17:36,360
Speaker 1: conspiracy stuff, And if you have been entranced by the

1238
01:17:36,560 --> 01:17:41,280
Speaker 1: dulcet tones of our super shadow producer Seth Nicholas Johnson,

1239
01:17:42,240 --> 01:17:46,320
Speaker 1: we have more good news for you. Seth. You don't

1240
01:17:46,400 --> 01:17:49,080
Speaker 1: just drop in and help out with this show, right,

1241
01:17:49,320 --> 01:17:51,880
Speaker 1: You're a man of many interests. Where can people learn more?

1242
01:17:52,160 --> 01:17:56,559
Speaker 4: Well, mostly I have a record label and I like

1243
01:17:56,600 --> 01:17:58,240
Speaker 4: to deal with all that stuff. I don't really have

1244
01:17:58,240 --> 01:18:01,559
Speaker 4: any personal social media accounts. You can find my record label,

1245
01:18:01,560 --> 01:18:05,120
Speaker 4: which is me Haunted Birthday Records. You can find on

1246
01:18:05,160 --> 01:18:07,960
Speaker 4: Instagram at Haunted Birthday, go to Haunted Birthday dot com.

1247
01:18:07,960 --> 01:18:08,280
Speaker 1: That's me.

1248
01:18:09,080 --> 01:18:12,680
Speaker 4: Also, I'm hosting a new show here on the iHeartRadio

1249
01:18:12,720 --> 01:18:16,920
Speaker 4: network one month from now, starting on December eleventh. There's

1250
01:18:16,960 --> 01:18:20,000
Speaker 4: a brand new show coming out on this network called

1251
01:18:20,160 --> 01:18:23,479
Speaker 4: Record Store society. It's a virtual trip to the record store.

1252
01:18:23,840 --> 01:18:26,840
Speaker 4: You hop on in, you visit with your friends, you

1253
01:18:27,000 --> 01:18:29,360
Speaker 4: thumbed through some forty five's, and you have a grand

1254
01:18:29,400 --> 01:18:31,840
Speaker 4: old time. And yeah, you know, it's a great way

1255
01:18:31,880 --> 01:18:33,280
Speaker 4: to get out of the house and visit your local

1256
01:18:33,320 --> 01:18:36,280
Speaker 4: record store virtually in these times when it is perhaps

1257
01:18:36,280 --> 01:18:37,439
Speaker 4: a bit difficult to do so.

1258
01:18:39,160 --> 01:18:43,680
Speaker 1: Analog record stores a perfect place for the shadow to

1259
01:18:43,720 --> 01:18:49,599
Speaker 1: put his money. And that's our show, folks. Maybe Matt

1260
01:18:49,640 --> 01:18:52,080
Speaker 1: and I will be able, we'll be able to swing

1261
01:18:52,120 --> 01:18:56,280
Speaker 1: by that record store as well. We hope that you

1262
01:18:56,439 --> 01:19:00,680
Speaker 1: do and check it out December eleventh. In the meantime,

1263
01:19:00,880 --> 01:19:03,160
Speaker 1: if you have some responses to this, if you want

1264
01:19:03,200 --> 01:19:05,320
Speaker 1: to tell us more, but you hate social media, we

1265
01:19:05,400 --> 01:19:10,160
Speaker 1: get it. You don't quite get the dopamine rush some

1266
01:19:10,240 --> 01:19:13,760
Speaker 1: people experience from a phone call. Totally cool. We've got

1267
01:19:13,760 --> 01:19:16,000
Speaker 1: you covered. You can send us a good old fashioned

1268
01:19:16,120 --> 01:19:19,479
Speaker 1: email wherever you are right now.

1269
01:19:19,520 --> 01:19:42,960
Speaker 3: We are conspiracy at iHeartRadio dot com. Stuff they don't

1270
01:19:43,000 --> 01:19:45,920
Speaker 3: want you to know is a production of iHeartRadio. For

1271
01:19:46,040 --> 01:19:49,960
Speaker 3: more podcasts from iHeartRadio, visit the iHeartRadio app, Apple Podcasts,

1272
01:19:50,080 --> 01:19:52,320
Speaker 3: or wherever you listen to your favorite shows.