As IF Times

link Mexican govt slams Arizona immigration law – Yahoo! Finance.

The tack taken by the Mexican government on this issue is bizarre.  According to this article:

“…The Mexican government criticized Wednesday a tough immigration law approved this week by Arizona legislators, saying it could result in rights violations and racial profiling and affect cross-border relations…”

Well let’s look at this as if you were a sane person.  First of all, the targets of the Arizona crackdown are ILLEGAL immigrants who are FLEEING Mexico in order to live presumably in a more desirable environment.  If things were mucho bueno back at the home hacienda, it’s unlikely they’d be trying to break into another country.

Secondly, the crackdown is in response to increasing violence  caused by many of the criminal element of the trespassers.  The murder of a rancher recently was a spur to action for the lawmakers who have experienced significant upticks in criminal behaviour in the border towns, much of it linked to illegals.  It’s unlikely that people who flee to another country trying to better their lives will draw attention to themselves by engaging in overt criminal behavior.  More likely, the conspicuous troublemakers are actually criminals who are involved directly in the drug trade, expanding their turf and influence.

Nevertheless, anyone who enters a country  illegally should be returned to their country of origin, Mexico or otherwise and made to apply legally as others have before them. Otherwise, why have borders at all? Nobody is against immigration.  People just don’t seem to care for people who blatantly flout the law.  The article goes on to state:

“…Mexico also said the bill “opens the door to the inappropriate use of racial profiling….”

As to profiling, well there is a chance that most illegal immigrants at the southern borders will look Mexican, so I guess cops will gravitate towards those fitting that appearance.  I suppose they could be inclusive and stop blue eyed blondes and red heads and enquire as to their citizenship status.  Elin Woods look alikes, be warned.  They could hang around the Phoenix airport and scrutinize the people getting off planes from Canada.  Yes, you can’t be too careful, illegal Mexican immigrants could be anyone, therefore profiling is just an ineffective and racist tool.

Imagine if you hired an exterminator to get rid of wasps on your property and he frisks dogs and cats to be inclusive.

Finally, I wonder what is meant by “jeopardizing cross- border relations”?  Is the implication that Americans crossing the border into Mexico are causing havoc with their criminal behaviour? Will they consider shutting down the access for Americans to cross the border into Mexico?  Shut off the cheap trinkets, tattoos and Corona beer business?

Mexico has enough problems at the moment with their exploding war on drug gangs.  I suspect the real reason they don’t want the illegals picked on is because they don’t want the drug guys back.  I think it’s only fair though that the U.S. be allowed to send off their undesireables to Mexico as compensation.  Most of Hollywood for example.  A certain ex vice president.  That’ll teach ’em.

link In Vancouver, logic has left the housing market – Canada – Macleans.ca.

But it’s not just Vancouver, it’s a phenomenom that is being experienced the world over from Vancouver to Dubai, from Shanghai to London.  These are some of the hottest spots for real estate prices in the world today.  Investment and speculation in real estate has been the surest way to building wealth for as long as the baby boom generation has known. 

In the days pre 1970, real estate price increases were fairly moderate, for the most part, in line with the cost of living.  In fact, it was a detriment in many cases to own real estate because there were costs involved; maintenance, taxes etc.  At least in the North American experience, as the baby boom demographic pushed it’s way into real estate in earnest, supply and demand for the favored areas gradually drove prices up and houses became for most people, the single largest store of wealth for this generation.  There is no doubt that valuations in real estate are correlated with the wealth of the local inhabitants, but it can cut both ways as residents in Las Vegas, Arizona and Florida have recently found.  Wealth tends to beget wealth and so prices can really climb when a local economy is hot.  Of course access to favorable financing is another significant factor as the multiplying effect of this tool excerbates demand for product and therefore prices.

People of course need a place to live, but in the areas mentioned above, the notion of buying a house as shelter is but a quaint notion.  The entire objective and major consideration for buying real estate in Vancouver, is as a means for hitching a ride on a fast moving train.  No rational person who makes a nominal salary of $75,000 per year, perhaps netting $50,000 after tax, will try to carry a mortgage on a $900,000 house.   According to a recent listing on Vancouver’s west side from an article in Canada.com:

“…At an asking price of $889,000, the Second World War bungalow in the 3100-block West 10th Avenue in Vancouver seemed like a bargain to realtor Terry Flahiff yesterday.With the average price of a detached home in Greater Vancouver nearing $921,000 last month, Flahiff’s listing could be considered a bargain…”

It’s interesting that the news headlines have just recently finished with Bernie Madoff’s collapsed ponzi scheme and have now turned their focus to the questionable products manufactured by Goldman Sachs.  Naturally, the media are chomping at this and the clamor for more regulation is now building.  Surely people must be protected they will say.  In reality, the largest ponzi scheme running, for the longest time and with the most institutionalized support is the real estate market.  While Madoff’s and Goldman’s activities  affect a directed segment of people, the promotion of real estate is directed at the mass of the population.  Everyone is programmed to believe that real estate is the surest way to riches.  That’s a difficult premise to refute given the past 40 years of experience. 

But as the people in Nevada and Florida, once the poster states for real estate speculation found out, when the music stops via interest rate upticks, the damage is devastating.  Ponzi schemes work by constantly finding new buyers to support the earlier buyers.  Eventually, you run out of those.