American Economics Thread

[henrik]

I wonder whats the real trick to having the US stock market near an all time high when its clearly obvious things are falling apart in the US. Even hardcore MAGA guys or whatever can see their paycheck etc is getting more worthless each day.

They have nvidia, the leader in AI chips, which is leading the stock market to new highs. Even tesla stock price is now faltering.

 

[tygyg1111]

There are plenty of very lazy people in China. There are many instances of poverty alleviation officials getting fed up with idiot villagers who would eat the chickens and sheep gifted to them by the government instead of raising them as a herd. There are also some villagers who use poverty alleviation money on booze, but they weren’t chased out into the woods and left to starve.

Hopefully these are the types being lured into crossing the US Mexico border on foot

 

[siegecrossbow]

Hopefully these are the types being lured into crossing the US Mexico border on foot

They don’t make enough money to get out of the country. Plane tickets are pricey so you have to be dumb and rich to pull a border crossing stunt. A lot of Mexican/Latin American illegals are baffled why well off people like Chinese illegals are doing this sort of thing and once they are no longer confused, rob the shit out of them.

 

[PiSigma]

Well, the stock market represents corporate earnings or more precisely, future corporate earnings as I understand it (someone in finance please correct me if mistaken). So corporations can be doing well financially, but the economy can still suck from an average workers standpoint which where we are at with key large companies hitting record earnings driving the market higher but total worker compensation remaining stagnant.

So as far as I understand it being from Canada is this is due to the nature of tenant friendly laws where once they are in the home, in order to evict someone w/e the reason they have the right to challenge the eviction by going through the equivalent of a legal tribunal to evaluate the validity, which if upheld means you are out with legally binding notice. Until the challenge is heard though they stay in the property. Now, in many parts of Canada, due to Covid and government incompetence/lack of funding these tribunals are backlogged with cases, where hearings may take up to a year from the time you make you request to evict whereas before it was a month or two tops. So the "Cash for Keys" in this case is not a new thing, landlords have always been able to incentive tenants to voluntarily leave on their own accord rather than waiting for the case to be hard but the tenants leverage in obtaining anything more than a modest sum (month or two of rent) was low because if it was a valid reason (owner or family moving in, etc), the tribunal would make a swift ruling in a few months. The issue now is tenants are all too aware of the backlogs at the tribunal, they can remain the units for a year or more waiting for a hearing from the time the eviction is issued before being required to move out even if the outcome is preordained. Therefore, the lost opportunity cost to the owner whether it be through lost rental income, or disruption to their living arrangements is significant resulting in the tenant obtaining significant leverage to demand higher compensation if they are too vacate early knowing they can run the clock for up to a year (ofc this has consequences to credit ratings, reputation, blacklists, etc). As for investment risk any responsible landlord should be educated on rules/regulations around how/when tenants can be evicted and factor that into their investment as to the potential downsides/costs to be incurred. The problem here is that nobody factored in the legal system for dealing with evictions to be totally broken which is the root cause of the problem as it has led to shift in the balance of power. Now if you don't bother to understand the regulations and want to play hard and fast with your tenants, you will get burned and that's your own stupidity for investing without reading the prospectus.

Whether we agree or not, Canada has more tenant friendly laws because tenants are considered at a disadvantage relative to landlords when it comes to things like evictions (landlords have more resources and power). And for every example of abusive tenants there are plenty of scummy landlords, and thats why these laws exist for the worst-case extremes, as well as the majority non-fuss scenarios. Much of Canada is in the middle of a housing crisis at the moment, rents are high and new places are hard to find if evicted (especially anything remotely "affordable") so tenants are going to use every legal point of leverage they can if they are faced with eviction for reasons other than not paying rent. If landlords should be mad at anyone for screwing up their investments, they should be angry at the government for failing to provide sufficient resources to allow the legal system to move in a swift manner.

I pretty much only rent to Chinese people. One person tried to screw me over by not paying rent (non-chinese), I just called the utility company and turn off gas power and water. They moved out real quick.

 

[FairAndUnbiased]

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[manqiangrexue]

I pretty much only rent to Chinese people. One person tried to screw me over by not paying rent (non-chinese), I just called the utility company and turn off gas power and water. They moved out real quick.

That's awesome and illegal to shut off utilities but I've grazed the law too. I've had great tenants who were not Chinese and a few bad ones, but NEVER a Chinese or Asian tenant who was bad.

One time, this dude is coming up on his rent due date. But he's not reachable in person and rarely reachable by phone. He tells me he can't make rent and will need to move by the end of the month, violating the 30 move our agreement. I hold him to the extra amount but I don't really expect to get it or care because I found another dude in like 2 days with a 0 day gap. But this fucker won't come back to move his stuff out; at first he tells me his mom is coming and then he says she's fucking him over and there's no one to pick up his stuff. Well I need it gone for the new guy. So I wait exactly to the evening before the new move in and I throw all his shit on the curb. That was illegal but if I go to court, I say he's MIA for 2 weeks, already declared himself moved out, but just won't take his crap with him. The last call I get from him he says he's a druggie, (which I found out when cleaning his disgusting room) and he got snatched off to mandatory detox. No idea when he'll be back. I told him all his shit is tossed and if he comes back, I'll have an $800 cleaning bill and a $300 backrent bill for late notice waiting for him. Don't think he had $1,100 worth of stuff to go to court over and hoped he was smart enough to figure that out. He never came back.

Second time, I told this dipshit he's annoying the hell out of everyone in the house. He's like a goddam parrot, on the phone every waking minute. He was always blabbing about life stress and how modern women are horrible for not liking him. Even asked me to drop his rent by $25 and raise the other guy's rent by $25 because the other guy spends more time in the common areas! So he got his 1 month notice to go and he was very unhappy but understood. I got his replacement coming on his move out date, 0 day gap, and 2 weeks from move out, he tells me he can't find a place so he needs another 30 days. He says it'll take me more than 30 days to evict him so I might as well put up with it. I was red-faced mad. I told him that if he doesn't honor his word and get out by the agreed upon date, I will tell my boss that I'm on work-from-home for the next month and as his 24 hour housemate, not as his landlord, which would be illegal landlord harrassment, but as his housemate, I will make this last month the most miserable experience of his life. I will start a problem with him every 15 minutes, practice opera singing in the middle of the night and that's just what I can come up with off the top of my head now. He said he can't deal with the stress, got an Airbnb, and moved out earlier than the agreed date. That was the last time I took a non-Asian person.

And from that moment to when I got married and took back the whole place, renting has been nothing but a pleasure. The worst thing that happened was a Korean dude who gunked up my sink by using too many facial care products. Don't even care; Draino cleared it all in minutes.

 

[horse]

We cannot get away with stuff like that as a landlord in Canada.

That is the difference between Canada and America.

America believes in property rights and the rights of capital holders.

Canada is different.

I saw youtube videos that in America the sheriffs comes with guns within weeks to evict someone. That does not happen in Canada.

God bless America!

 

[PiSigma]

That's awesome and illegal to shut off utilities but I've grazed the law too. I've had great tenants who were not Chinese and a few bad ones, but NEVER a Chinese or Asian tenant who was bad.

One time, this dude is coming up on his rent due date. But he's not reachable in person and rarely reachable by phone. He tells me he can't make rent and will need to move by the end of the month, violating the 30 move our agreement. I hold him to the extra amount but I don't really expect to get it or care because I found another dude in like 2 days with a 0 day gap. But this fucker won't come back to move his stuff out; at first he tells me his mom is coming and then he says she's fucking him over and there's no one to pick up his stuff. Well I need it gone for the new guy. So I wait exactly to the evening before the new move in and I throw all his shit on the curb. That was illegal but if I go to court, I say he's MIA for 2 weeks, already declared himself moved out, but just won't take his crap with him. The last call I get from him he says he's a druggie, (which I found out when cleaning his disgusting room) and he got snatched off to mandatory detox. No idea when he'll be back. I told him all his shit is tossed and if he comes back, I'll have an $800 cleaning bill and a $300 backrent bill for late notice waiting for him. Don't think he had $1,100 worth of stuff to go to court over and hoped he was smart enough to figure that out. He never came back.

Second time, I told this dipshit he's annoying the hell out of everyone in the house. He's like a goddam parrot, on the phone every waking minute. He was always blabbing about life stress and how modern women are horrible for not liking him. Even asked me to drop his rent by $25 and raise the other guy's rent by $25 because the other guy spends more time in the common areas! So he got his 1 month notice to go and he was very unhappy but understood. I got his replacement coming on his move out date, 0 day gap, and 2 weeks from move out, he tells me he can't find a place so he needs another 30 days. He says it'll take me more than 30 days to evict him so I might as well put up with it. I was red-faced mad. I told him that if he doesn't honor his word and get out by the agreed upon date, I will tell my boss that I'm on work-from-home for the next month and as his 24 hour housemate, not as his landlord, which would be illegal landlord harrassment, but as his housemate, I will make this last month the most miserable experience of his life. I will start a problem with him every 15 minutes, practice opera singing in the middle of the night and that's just what I can come up with off the top of my head now. He said he can't deal with the stress, got an Airbnb, and moved out earlier than the agreed date. That was the last time I took a non-Asian person.

And from that moment to when I got married and took back the whole place, renting has been nothing but a pleasure. The worst thing that happened was a Korean dude who gunked up my sink by using too many facial care products. Don't even care; Draino cleared it all in minutes.

That is truly awesome. I own a couple of rental properties. One is close to the university so only Chinese grad students are renters, had that for 10+ years now. No missed rent, never a day not rented out. I keep the rent just below market avergae, so when someone move out the renters get a friend to take over the lease.

The other one I rent out to families, that is where some issues arise. Cutting utilities is technically illegal if the renter is paying utilities bill in Canada. But what I do is pay the utility bill and add it to next month's rent so the utilities is always under my name. So when rent is 2k/month, I bring the utility bill for last month and show the tenant, add the several hundred dollars to it and ask them to write me a second cheque. My pitch when I rent it out is it saves the tenant time and hassle from switching utilities all the time. Of course it also allow me to turn everything off when I want it.

 

[TK3600]

That's awesome and illegal to shut off utilities but I've grazed the law too. I've had great tenants who were not Chinese and a few bad ones, but NEVER a Chinese or Asian tenant who was bad.

One time, this dude is coming up on his rent due date. But he's not reachable in person and rarely reachable by phone. He tells me he can't make rent and will need to move by the end of the month, violating the 30 move our agreement. I hold him to the extra amount but I don't really expect to get it or care because I found another dude in like 2 days with a 0 day gap. But this fucker won't come back to move his stuff out; at first he tells me his mom is coming and then he says she's fucking him over and there's no one to pick up his stuff. Well I need it gone for the new guy. So I wait exactly to the evening before the new move in and I throw all his shit on the curb. That was illegal but if I go to court, I say he's MIA for 2 weeks, already declared himself moved out, but just won't take his crap with him. The last call I get from him he says he's a druggie, (which I found out when cleaning his disgusting room) and he got snatched off to mandatory detox. No idea when he'll be back. I told him all his shit is tossed and if he comes back, I'll have an $800 cleaning bill and a $300 backrent bill for late notice waiting for him. Don't think he had $1,100 worth of stuff to go to court over and hoped he was smart enough to figure that out. He never came back.

Second time, I told this dipshit he's annoying the hell out of everyone in the house. He's like a goddam parrot, on the phone every waking minute. He was always blabbing about life stress and how modern women are horrible for not liking him. Even asked me to drop his rent by $25 and raise the other guy's rent by $25 because the other guy spends more time in the common areas! So he got his 1 month notice to go and he was very unhappy but understood. I got his replacement coming on his move out date, 0 day gap, and 2 weeks from move out, he tells me he can't find a place so he needs another 30 days. He says it'll take me more than 30 days to evict him so I might as well put up with it. I was red-faced mad. I told him that if he doesn't honor his word and get out by the agreed upon date, I will tell my boss that I'm on work-from-home for the next month and as his 24 hour housemate, not as his landlord, which would be illegal landlord harrassment, but as his housemate, I will make this last month the most miserable experience of his life. I will start a problem with him every 15 minutes, practice opera singing in the middle of the night and that's just what I can come up with off the top of my head now. He said he can't deal with the stress, got an Airbnb, and moved out earlier than the agreed date. That was the last time I took a non-Asian person.

And from that moment to when I got married and took back the whole place, renting has been nothing but a pleasure. The worst thing that happened was a Korean dude who gunked up my sink by using too many facial care products. Don't even care; Draino cleared it all in minutes.

Man I wish Chinese in China are as good of tenants.

 

[ZeEa5KPul]

TIL every member of SDF is a landlord.