Okay look I just went on a run and I'm like I don't need to make another video today I wouldn't have done enough work. it's been a headache of a day and then oh my gosh on the Bloomberg terminal is something where I'm like, huh? This could potentially be some of the reason why we have so much dislocation and pain everywhere. See people wonder why Is it that crypto collapsing affects stocks? Well, it's not just those two, it's also Bond values collapsing Pension funds nearly collapsing in the United Kingdom And now this. look at this notice that was on the home page of the terminal. Okay for this company, they they do real estate bonds. okay like mortgages. So basically they're a fund and what they do is they say Hey You know, like basically hey, you, uh, invest money into us. you know, give us, uh, give us I don't know, fifty thousand dollars or whatever and we'll go use that to go buy mortgage-backed Securities mortgage-backed secure Securities are basically bonds that are backed by little ious from Individual investors so or or homeowners. So if you have like these four homeowners here, let's just say and I'm greatly simplifying this obviously and each of these homes is worth 500 000 of loan value. Let's say then this is a two million dollar pie right here. And then if you have 40 uh, of these fifty thousand dollar people, you just slice this up into 40 little slices. right? and then now you have mortgage-backed Securities and maybe each of these is yielding. Oh I don't know. uh when these mortgages were made, maybe they were yielding four percent. And now the value of these mortgages has plummeted the underlying value of them because the Canadian Real Estate Market is starting to collapse. In fact, the New York Times was suggesting that a Canadian Real estate values uh between two months which was like terrible drop. I was just reading about this too, which is crazy. So uh, here's an Ontario Real Estate Market update. And in Canada they say prices for single-family homes in Toronto which is in Ontario fell by 16.4 percent between February and August Look at this right here. Uh, New York Times Look at that. Prices for single-family homes fell by 16.4 between February and August. That's six months. That's an annualized rate of a 32 percent decline. So like by next year, at this time, real estate in Canada could be down by over 30 percent. That's remarkable. So when Real Estate Falls like that, then the underlying value of these homes is less. Which means the security part of mortgage-backed security is actually less. Therefore, the value of the bond goes down the yield. To new investors, the interest rate goes up, but the value value goes down. Which is a problem because anybody who's invested in this is like hey, I want some money to go buy some stonks that are on sale and then the company's like yeah uh, you know the value's gone down a lot of these and then people like I don't care. give me the money anyway and they're like okay here you go. Well now it's gotten so bad that this com company that has like I think a hundred million dollars AUM or whatever. hey how sack. maybe we'll have as much as them soon. now we're sitting pretty. but I was like we're doing really well because we're just sitting on cash. It's like just gonna sit on our hands and wait for all this drama to unfold in the real estate market. So yeah, probably a little bit biased when I see stuff like this, but it's like it sucks to them. good for us. But anyway, listen to this. the dislocations created in the North American real estate markets and the volatile economy are so bad that they had to do Institute this thing called a runoff pool to basically like like this in in small increments give money to investors who are demanding immediate liquidity. But the problem is the fund is like uh, but this is like the time maybe to buy some of these mortgage-backed Securities or sit on cash to be ready to buy some of these. And so we want to make sure we have adequate resources to be able to go chase the opportunities we have. and so uh, the the this company is like okay, well let's just give fewer redemptions to people and kind of make people wait their turn. Well apparently apparently that did not help solve the problem and here we are. This letter was just published in Bloomberg today, which is the ninth I Don't know if this just sort of like was leaked or whatever, but the letter was apparently dated yesterday. Who knows. maybe they sent it like 11, 59 PM yesterday. But anyway, look at what's happened now. It was anticipated that a reduction in Redemption demand to manageable levels would provide some leeway allowing the company to navigate through these Market disruptions. So in English hey, we thought that our program would let everyone relax and stop demanding money back. And what actually happened was the institution of this program did not dampen Redemption activity. And um, all of a sudden. um, people aren't paying off their loans anymore on these underlying homes. So not only are investors not demanding less money back from the fund, but now the people who own these homes aren't actually paying off their mortgages. Probably because interest rates are higher now. So why would you refinance and pay it off? Why would you sell when home prices are so much lower? But on top of that, it's entirely possible that people just stop making their payment at all. Uh, in fact, that's what the uh, the Bloomberg uh mortgage um or or article was talking about. They were saying that they're temporarily going to stop Distributing uh or or providing redemptions because people are just not making their payments anymore. uh at all. It literally says uh, the Canadian Real Estate lender Romskin pin Whatever. This company here investment Corp has halted redemptions on its largest fund after a number of borrowers stopped making payments. Dude, this is like we're turning into freaking China over here. That's what's happening in China In China People like, uh, real estate's falling so much, let's just, um, yeah, stop paying our mortgage. So so the company then says, well, people stop paying us and investors still wanted redemptions. So now we're just like, and don't worry, everything's fine, kind of like FTX everything's fine. We're just gonna temporarily defer people's ability to get their money out. It's not going to be temporary because you're probably gonna go bankrupt. But I'll tell you. the odds of you going bankrupt statistically is way less if you're a member of the courses linked down below, especially Zero to Millionaire Real Estate Investing. Okay, I'm just kidding. I don't have any statistics for that I I Believe that's true, because why would you not want to study real estate investing during this kind of environment if you're wondering like, what course to start with, if you want to learn how to make money on this next crash house hack, exactly what we're going to be doing? Zero to Millionaire Investing, Join me in the real estate analysis Live streams as well. You want to make more money with a side hustle Elite Hustlers University You want to make money in Property Management Property Management Course Okay, you get the idea. Use that. Black Friday code linked down below expires Friday All right, we're confident given some time, these transactions uh, will be completed and that the underlying value of the funds assets uh, is something that they they remain confident in. Uh, However, there are uncertainties and uh, trustees may be compelled to Institute other temporary liquidity management measures. Dude, they're effed. They've been in business for 50 freaking years and they're asked, this is crazy. This is crazy I mean maybe they're not like full left. Okay, like I I Just want to be clear: I Don't know if they're going bankrupt. Just saying it sounds bad. It's probably an issue you're gonna see less of in the United States because we have like 30-year fixed rate mortgages. but I know bond funds are having pain as well. Uh, but what it sends you a signal of is, hey, why is everything falling and almost seemingly disconnected from fundamentals? Because there's no money to buy Like people are selling stuff to just be able to do what they want to do for their business or or their end of the year tax purchases or whatever they got to do. So there's not a lot of buying pressure because people are out of money. it's crazy and so then they call up their fund. Dude. I'm tired of this mortgage bugs. Give me my money back and they're like, Dude the people are not making payments anymore and then the investor is like no I really want my money back? Give it to me and they're like no, Well damn. All right folks. See you later.