Final thoughts

forecast1

As the world did not apparently end, I thought I might share with you some of the final thoughts I had in the wind and rain while being lashed outside my office window overnight on the 53rd floor of Scotia Plaza.

Only hours ago was I discovered and cut loose. I could have put up with the humiliation, but not the embarrassment, having widely torn my loin cloth.

(1) There are a few reasons I don’t buy stocks any more. Guess you could say that RIM is one of them, or Apple, Facebook or even the Royal Bank. Good companies founded on innovation which at one time utterly dominate their field can also screw up, disappoint, get inflated and punished. In a world now swamped by high-frequency trading, and algos making millions out of fractional-penny spreads, the little-guy investor doesn’t stand a chance. Investing is all about fighting off volatility.

Day traders are idiots. Professional stock brokers are going deservedly extinct. And don’t get me started on mutual fund salesguys. In 2013 resolve to get some good advice from somebody who sells nothing and has no hot tips.

(2) Lock in your mortgage because 2013 will be the year of change. Will the Bank of Canada up its trendsetting rate? Yeah, probably. Maybe. A quarter point on October 23rd, and another on December 4th. Write that down. Tape it to the fridge. But this is kind of irrelevant, since the bond market will do the job much earlier. Look for a robust year on equity markets and a sustained drop in bond prices as money flows back into the economy.

So, yields will pop. This (not the bank of Canada) is where the banks fund fixed-rate mortgages, which is why you might never again (after about July) see a 3% 5-year rate. Ever.

(3) The fiscal cliff is absolute political theatre, and the US Congress, already mongrels in the eyes most voters, is not about to commit economic suicide. So there will be no deep cuts in government spending or middle-class tax hikes, at least not ones that stick past the deal to be announced after the holidays. That means if your gold or gun stocks recover a little from recent pummeling, you should bail. Buy stuff that actually pays you to own it, and represents the future (greed) instead of the past (fear).

(4) As housing markets across Canada lose momentum, the real estate industry cannot be trusted. Just as the National Association of Realtors told people in the US to jump in during a “market lull” in 2006 – only to get slaughtered in the ensuing six-year crash – so ‘experts’ here will seek to delude, distract, mislead and betray consumers. Like Mark Weisleder, the housing consultant and media columnist this blog finds just so darn amusing.

Writing in the Toronto Star this week about why real estate is a great place to put all your borrowed money he told recent condo suckers the rental vacancy rate in that city is still sub-2%. “This means that for those people who cannot sell their condos, there are plenty of renters who can cover the monthly costs.” That’s right, kids, borrow a down payment from Mom, walk into a giant mortgage, purchase a unit that immediately falls in value, and then find nobody wants to buy it. No probs. Just subsidize a tenant. Who will laugh at you.

(5) The biggest mistake I see people make? When they confuse assets with security. Spoke with a young couple in Vancouver Friday who have saved an impressive $200,000, rent, no debt – doing everything right. But 75% of that is in silver bars lining the bottom of her lingerie drawers. “This scares me,” she said as we got going, but she needed my help to explain to her husband why being a doomer who thinks he knows more than Ben Bernanke is putting them at major risk. Worse, it’s endangering their marriage.

The silver’s stupid, of course – high volatility, no income – but the relationship is what really matters. It could be a junior resource stock, real estate or a fistful of GICs, doesn’t matter. Like the couple I met hours later who got married three years ago, have a kid on the way, but maintain separate chequing accounts because they don’t trust each other. When I asked about it, they looked shocked.

Seriously. It’s just money. Or metal. Or a house. You can replace any of that stuff, or perhaps never needed it in the first place.

But if you find one good friend in life, hopefully a mate or partner, you know wealth.

179 comments ↓

#1 Stupid Canucks on 12.21.12 at 10:03 pm

The alias says it all: http://business.financialpost.com/2012/12/21/feds-ok-another-50-billion-of-mortgage-guarantees-for-private-sector-players/

#2 Inglorious Investor on 12.21.12 at 10:03 pm

“But if you find one good friend in life, hopefully a mate or partner, you know wealth.”

Pure gold.

#3 Soylent Green is People on 12.21.12 at 10:07 pm

Since I can’t post on the Dear England post, I put it here:

So last night several dozen members of the Media Party joined a smaller cohort from the Conservative Party for a Christmas party at 24 Sussex Drive. Laureen Harper made little chocolate mice for the dessert tray. The event was strictly off the record, a new formal stipulation in place since Jane Taber surprised us all by writing up chapter and verse of the prime minister’s cocktail-party chat for the Globe a year ago, so I will tell you not a word that Stephen Harper shared with us. I can, however, report that Andrew MacDougall said not a word.

And it wasn’t for lack of effort on my part. “Answer the Mark Carney question of your choice,” I said to him, attempting to be sly.

“No comment,” he said, smiling and staring resolutely into the middle distance.

“Was there anger?” I asked.

The prime minister’s spokesman mimed pulling a capsule from his Bat Utility Belt and throwing it to the floor. “Smoke bomb,” he said, his other hand pointing toward the nearest door, “and I am out of here.”

So put the PMO down as unhelpful on whether Mark Carney’s vacation arrangements displease them, or, more to the point, whether they displease Harper.

http://www2.macleans.ca/2012/12/18/mark-carney-he-who-is-without-sin/

.

#4 Risk Analyst on 12.21.12 at 10:07 pm

Tell us wise one, where do we put our hard earned monies?

#5 Yuus bin Haad on 12.21.12 at 10:07 pm

Zero comments? Oh, Garth, I’m Soooooo tempted …

#6 DM in C on 12.21.12 at 10:08 pm

Good point, Garth. And might I add health to that. Good health and long lives to everyone.

#7 ChrisB on 12.21.12 at 10:09 pm

Wonderful! I have an incredible wife, but lots of debt. Thanks to your last line about having one good friend in life, I now feel wealthy!

#8 HD on 12.21.12 at 10:11 pm

Great post.

Thanks Garth for the good work.

Best,

HD

#9 someone on 12.21.12 at 10:13 pm

Great holiday article!!! There is more than money.

#10 Luke on 12.21.12 at 10:13 pm

Great posting Garth..I like the last part.. I send your blog to friends and they always mention you are “negative”
I dont see that. I see you being honest and funny!
Keep going with what you do and hopefully I can see you this year and figure out what I can do with my $50,000 sitting in the bank..doing nothing..

#11 Renters Revenge on 12.21.12 at 10:13 pm

Great post. Thanks.

#12 lilyflor on 12.21.12 at 10:16 pm

“But if you find one good friend in life, hopefully a mate or partner, you know wealth.”

so true, let’s appreciate what we have while we still have it

#13 luckych on 12.21.12 at 10:19 pm

Great post Garth. Thank you!

#14 Smoking Man on 12.21.12 at 10:21 pm

F-en hilariously pic.

Tomorrow having a contest, if someone can out do me. 1 Million to the winner or winners.

Truth is no one will beet me. Ties don’t count.

Ctr+f you then type smoking. For the rules to shitfaced at senica right noe

#15 Cigar Goop on 12.21.12 at 10:22 pm

Close friends is wealth.

#16 Inglorious Investor on 12.21.12 at 10:26 pm

Not to be judgemental, but there are two things I never understood:

1) Couples who commit to live together, commit to buy a home together, and commit to raise children together, but don’t get married. What are they afraid of, commitment? If you want to act like a married couple, then why not just become one?

2) Married couples with separate bank accounts. You know: “She pays for the groceries; I pay for the mortgage.” If you want to act single, or you don’t trust each other, why get married?

The problem is, people want it all. But the truth is, you simply can’t have it all. For every thing you have in life, you must sacrifice something else. For example, children vs. peace of mind. Or RIM vs. money. (Actually, those two examples are interchangeable.)

The trick is wanting the things that you have more than the things you must give up in order to have them.

#17 questioning on 12.21.12 at 10:26 pm

Hi Garth,

Do you think Shale oil will kill the oil sands business?

#18 habbit on 12.21.12 at 10:29 pm

Just great Garth. My wonderfull wife of 30 + years is the real wealth. Are you sure you don’t want to give Garneau and Trudeau a run? lol

#19 Silver on 12.21.12 at 10:29 pm

I am extremely wealthy…

And with Her consent, now decently solvent…

Thanks Garth…

Silver

#20 Nemesis on 12.21.12 at 10:30 pm

A true story, OldPol… A target, let’s call him Gregorovitch, once opined that, “It is better to have one hundred friends than one hundred Roubles.” And in those days… You could do amazing things with a hundred Roubles… e.g. persuade the crew of one of these to take you for a JoyRide… [with your Nikon, of course.]

http://tinyurl.com/bwofw7a

#21 Smoking Man on 12.21.12 at 10:31 pm

#15 to Cigar goop

Close friends who are wealthy even better. But yes freinds are wealth

#22 Canadian Watchdog on 12.21.12 at 10:36 pm

#1 Stupid Canucks

Genworth’s limit was increased last year in June. This is not new news.

#23 Smoking Man on 12.21.12 at 10:38 pm

#15 why am I such a mind reader from 100s of miles away.

Contest

I know some seriously high up people, freinds with some of them.

Tomorrow at 5 pm I will post a pic of me and the highest of the high uppers on my Blog.

If one of you dogs can post a pic of yourself with anyone in this world who is higher. Million to you.

Ties don’t count.

#24 Hoof - Hearted on 12.21.12 at 10:47 pm

This is why I like this Soft Info Porn Site, and have negotiated a lifetime subscription

(Or can Unnerstant Smoquinky Mons snoozerr posts … witchbeaver comes furzzttt)

At family dig last night…we were taking RIM..family member just back form Euro Trip…sez that Blackberry still tops in Euro zone….just not here in Garth’s North Amazon land.

#25 not 1st on 12.21.12 at 10:51 pm

Garth, just 2 months ago you were eying RBC as a potential buy because it got cheaper. It wasn’t on sale back then, it was hammered because they got overexposed to the U.S.A fiasco, Europe and derivatives. I think your blog dogs told you that. Maybe you could acknowledge they were right.

Wrong, Bucky. Never rec’d RBC common. — Garth

#26 FTP - First Time Poster on 12.21.12 at 10:53 pm

True wealth comes from having good health, a gorgeous & intelligent spouse and level headed friends who will freely counter your logic when you get off track.

I’m fortunate to have all 3 & blessed to have two sweet & healthy kids who remind me daily of what is important in life. Add in a slighty kooky & self depricating middle-aged white guy who runs a blog for misfits, the lost & needy and my life is complete!

I made a point this year of not buying “stuff” for loved ones, but experiences that they will enjoy & remember. I have also made a point this year of thanking those who have either made a positive impact in my life, or have held out a helping hand while expecting nothing in return. You’re in Category #2 Garth and despite the fact we have never met – I do owe you a debt of gratitude for your kind & sage advice. I sincerely hope you & your loved ones have an enjoyable & restful holiday season!

#27 45north on 12.21.12 at 11:04 pm

smoking man: If one of you dogs can post a pic of yourself with anyone in this world who is higher. Million to you.

what higher than I am? shouldn’t be too hard

#28 Smoking Man on 12.21.12 at 11:12 pm

Ftp #27.

See thats why I hate the holidays I got to put up with sappy shit that you just did. Grow some balls. Suck ups and hero worshipers make me sick.

Watch this.

Garth you Suck.

Even though he knows I like him you don’t need to do it like you did.

I have so much to teach

#29 KG on 12.21.12 at 11:20 pm

@ #27: Wow !

#30 AGIC on 12.21.12 at 11:20 pm

“…the couple I met hours later who got married three years ago, have a kid on the way, but maintain separate chequing accounts because they don’t trust each other. When I asked about it, they looked shocked.
Seriously. It’s just money… You can replace any of that stuff, or perhaps never needed it in the first place.”
****************************************
They are doing it the right way from the beginning, I guess. Must be a sign of a time…

After 40 years plus together through thick and thin, 3 children raised and put through university, house paid and no debt, my DH demanded “Divorce!” … I wonder what he meant?… Apparently he wants 1/2 of saving & investments (in which he demonstratively had no any interest or participation) and the rest of everything. Fare enough… “It’s just money…You can replace any of that stuff”.
It is not that easy when you are between 60-65.

With separate accounts from the beginning might be way to do it. At least no surprises later on.

Separate accounts mean nothing in the face of matrimonial property laws. — Garth

#31 cowpie on 12.21.12 at 11:22 pm

In the words of Tiny Tim: “God Bless us, everyone.”

Merry Christmas and Thanks to you Garth, and blogdogs, for speaking the truth about TNL@TB, real estate, and Global News. And for encouraging liquidity, diversity and dog ownership. That’s what I learned this year, and I’m very thankful. I have great expectations for 2013!

Best wishes to all & to all a good night.

#32 cowpie on 12.21.12 at 11:28 pm

PS: in lieu of gifts, Garth and fellow bloggers, I’m sending you all good karma and world peace. Hope it’s what you were wanting.

#33 AGIC on 12.21.12 at 11:40 pm

Separate accounts mean nothing in the face of matrimonial property laws. — Garth

My point was – “At least no surprises later on…”

#34 Bottoms_Up on 12.21.12 at 11:41 pm

#31 AGIC on 12.21.12 at 11:20 pm
—————————————–
If you’re committing to someone with marriage, moving in with them, having children, planning for the future, why the heck wouldn’t you marry the finances too? Separate accounts can only breed trust issues. In my mind keeping separate accounts is an extremely weird boundary to maintain if you’re married.

#35 Smoking Man on 12.21.12 at 11:48 pm

CSIS seriously, you send a gorgeous 25 ish chic being nice and warm to the Smoking Man wants to go. I’m 53. Realey guys.

What do you want just ask me.

#36 The Man From Nantucket on 12.21.12 at 11:50 pm

I’ve been reading fairly steadily since soon after this blog was founded and this might be my new favourite post.

Merry Christmas and a Happy New Year to our gracious host and all of the other characters who keep the comment section interesting.

#37 FTP - First Time Poster on 12.21.12 at 11:55 pm

#29 Smoking Man

I need no ones approval in what i post, least of all yours. I have balls. Apparently to you that means being a self righteous, narcissistic ass whose ego is only surpassed by your ignorance. Your overwhelming insecurity shines through with each loathsome, poorly spelled sentence.

Trailer parks across Canada could use another mouth breather – feel free to apply.

#38 Investx on 12.21.12 at 11:56 pm

What’s wrong with RBC stock? It’s higher than it was a year ago and no major recent drops a la APPL.

#39 TurnerNation on 12.22.12 at 12:01 am

RIM is the new Nortel.

#40 Gladiator on 12.22.12 at 12:02 am

What’s wrong with separate accounts? Me wife and I agreed that we have a common account for stuff we need and 2 separate accounts for stuff we want: each of us puts 10% of each salary’s in the separate accounts and spend it on stuff we want like clothing or cosmetics for her and gadgets for me. The money from the common account goes to family needs and savings. This way, we have our own space as well as we contribute to our family budget as much as we are able to. It works for us pretty well and we don’t feel pressured. Separate accounts for wants (and not needs) are a good solution. Of course, as long as we respect each other and don’t spend it on “special” services like escort etc.

#41 stage1dave on 12.22.12 at 12:02 am

Best “Last Line” yet!

Tho’ the wife & I each have separate PCA’s (funny…neither of us has written a personal cheque in 20 yrs!) there never seems to be much cash in there. It all runs thru the business, & joint, accounts.

Of course, the real potential wealth is always in our hearts, the garage, and, it seems lately; accounts receivable!

#42 JSS on 12.22.12 at 12:04 am

Hi Garth –

So I took your advice, and went to RBC to negotiate a blend and extend rate. They said that they no longer do blend and extend, and that the only way out is to pay a $5,080 break fee. No negotation. My 120 days is on November 14, 2013 when I can go find another institution if I like. Problem is that this is after October 23rd, the date you mention above as a potential increase in interest rates.

In conclusion – no negotiation from RBC.

Let this be a lesson for all who have mortgages with RBC.

===========================
#4 JSS on 12.14.12 at 10:08 pm
Hi Garth,
I have a five-year fixed mortgage coming up for renewal in March 2014. I’m currently with RBC at 4.39%.

According to RBC, the costs to break the mortgage is approx $8,000. If I blend and extend, the new fixed rate will be 4.19%.

What do you suggest???

B&E is not the same as breaking the loan. Negotiate! — Garth

#43 The Man From Nantucket on 12.22.12 at 12:08 am

Inglorious Investor re – married couples with separate bank accounts.

Why the heck not?

We each have our own RRSP and TFSA accounts (which have balances a damned sight bigger than a chequing account!). Then we share a joint unregistered account…..so the income and cap gains can be assigned to the lower income party…..Since our host stopped working for the tax man, I find I hate them even more!

Anyway, my decision for where to keep my chequing account was based on which had ATMs handiest to where I live, work and play……not like I make squat in interest, so I figure it’s sound strategy to keep those $1.50 + $1.50 ATM convenience charges to a minimum……after all, a 3% vig to access $100 that you didn’t even have to borrow puts these wankers somewhere lower than Money Mart, etc. in my estimation

So, the wife is still on the chequing account she had since her teen years, which was converted from the savings account she had as a child. I wasn’t convincing her to patch over, and truthfully, it wouldn’t make sense for her to….she works and plays in different places, and she’d be better served with a competitor to mine.

So, we both just kept the accounts we had before shacking up.

So, other than the fact that she’d know exactly how much I spend on massages and street drugs each month :-), is there any huge benefit to having the same account that I haven’t figured out yet ?

#44 kreditanstalt on 12.22.12 at 12:13 am

Sorry, but volatility and risk can never truly be escaped. They’re here now and they’re going to get much more dramatic.

Buy when there’s blood in the streets. Precious metals sentiment is at rock bottom now – and the “price” – paper-dictated and government-manipulated waif that it is – is STILL a mere 20% off the highs.

The future most likely belongs to the speculator. Risk says it has to…

#45 Grim Reaper/Crypt Speculator on 12.22.12 at 12:15 am

#29 Smoking Man on 12.21.12 at 11:12 pm

I have so much to teach

==================================

Yeah…keep us out of suspense and get started..time is running out ………bwhahahahahahha

#46 Dave the dentist on 12.22.12 at 12:19 am

So if RE is going down for the next few years, should we stay way from Canadian bank stocks because their mortgage exposure?

Did I not just warn of direct equity investment? House prices have nothing to do with it. — Garth

#47 Mr Buyer on 12.22.12 at 12:23 am

#17 questioning on 12.21.12 at 10:26 pm
Hi Garth,

Do you think Shale oil will kill the oil sands business?
…………………………………………………………
I think Canada will be one of the last countries on earth with any kind of oil reserves and oil will be selling at a premium relative to today. That is not going to help with the real estate collapse that is upon us now though.

#48 greyhound on 12.22.12 at 12:23 am

“Seriously. It’s just money. Or metal. Or a house. You can replace any of that stuff, or perhaps never needed it in the first place.
But if you find one good friend in life, hopefully a mate or partner, you know wealth.”

Not many financial guys write like this — in a nutshell, this is why I keep reading here, year after year. Happy holidays.

#49 Austrian school on 12.22.12 at 12:36 am

Paul Volcker at NYU. It’s always good to have a listen when the money masters speak. Oct.2012
http://www.stern.nyu.edu/experience-stern/news-events/Volcker-Silber-book-discussion

#50 Stupesing in Cabbagetown on 12.22.12 at 12:38 am

“…having widely torn my loin cloth.” I guess you had use it to fend off those HUGE spiders that spin Kevlar webs in window corners of Scotia Plaza. Yeech! I wonder if those arachnids are a subspecies found only at high elevations on Toronto’s skyscrapers? Glad you made it back safely. You would have been badly missed.

#51 Mel on 12.22.12 at 12:39 am

Oh my, it’s nice to see from guys their sensitive side. Just make sure it does not come only once a year.

Well Garth, as usual, I must disagree with you about the economy. From the point of risk, yes, interest rates could go up. However, from the point of improving economy, No! I am expecting lower interest rates next year. Interest rates will go much lower, before they will eventually start going higher over many years to come.

World economies next year will be dealing with recessions. Thus, lower oil prices, lower stock prices, lower house prices, higher unemployment,….
and much much higher deficits.

Anyhow, that is my own view on things.

Merry Christmas to all of you!

#52 Smoking Man on 12.22.12 at 12:41 am

#38 Ftp

That’s what I’m taking about, yes you have balls.

Love you man but then again I say that to everyone when shit faced. now go do what wife says to you.

Got hands full csis all over me at moment

#53 Smoking Man's Old Man on 12.22.12 at 12:47 am

#47 Dave the dentist

You and “Jimmy the surgeon” from a few posts back should get together. Maybe, if you’re really nice he’ll let you go halfers on his 200K restaurant investment…

#54 Andrewski on 12.22.12 at 12:49 am

Man from Nantucket asks “…is there any huge benefit to having the same account that I haven’t figured out yet?”

Correct me if I’m wrong: Joint account = zero probate upon death of partner/spouse/account-holder?

Is no one else a joint account-holder with & on their aging parent’s bank accounts just for that reason?

#55 nesonfineart on 12.22.12 at 1:06 am

Awwwwww!
So true.
You pretty much had me at the Bond Market, but really sealed the deal with the last bit. :D

The world is going on, and the only thing worth living for? other people. we each get to pick which ones.. but if you don’t pick anybody you might as well have gone up in flames earlier today.

#56 Dr. WAYNE on 12.22.12 at 1:08 am

But if you find one good friend in life, hopefully a mate or partner, you know wealth.

=====================

I would add … “and a good guitar”.

52 posts so far and not an a$$hole among them … excellent !!!

#57 Mark on 12.22.12 at 1:27 am

“Will the Bank of Canada up its trendsetting rate? Yeah, probably. Maybe. A quarter point on October 23rd, and another on December 4th. Write that down.”

Not a chance. A far more likely scenario is the BoC dropping the interest rate to zero, and being forced to go on a program of quantitative easing. The CPI numbers are borderline deflation, and as the housing crash accelerates, they will be overtly deflationary.

However borrowers should fear the banks and lenders generally increasing the spreads over benchmark rates applicable to mortgage loans. Mortgage credit has spent the past number of years, because of the CMHC subsidy, abnormally cheap relative to risk-free rates and even abnormally cheap than corporate debt. The Prime – 0.9% specials we had a few years ago have largely given way to most loans going out at “Prime”. Next year may very well be the year of loans costing “Prime + 1%” as lenders develop an increasing revulsion to lending against housing as collateral (due to the price drops and in anticipation of a worsening situation!).

#58 Mark on 12.22.12 at 1:29 am

So if RE is going down for the next few years, should we stay way from Canadian bank stocks because their mortgage exposure?

No, you should be buying Canadian bank stocks (or just buy the TSX60 index) because lower house prices increase lending spreads, which benefits the banks enormously. Bank profitability will likely surge as house prices go down. Banks make a heck of a lot more money convincing everyone they’re sub-prime and with-holding credit (making it scarce) than they do merely collecting a few points of spread like they are right now.

Of course, you probably should also own deeply cyclical stocks as they’re poised for a comeback. Think large-cap gold miners for example.

#59 Freedom First on 12.22.12 at 1:37 am

Garth, nice read. True wealth for sure!

To all the guys, or gals: if your partner has convinced you to go all in, in RE, or you are in debt up to your eyeballs for whatever reason, and you have no assets, or other assets, I truly believe they don’t love you the way you think they do. Sorry to break it to you, you are only buying them. It will end badly.

#60 Nostradamus Le Mad Vlad on 12.22.12 at 1:38 am

-
“I could have put up with the humiliation, but not the embarrassment, having widely torn my loin cloth.” — Leading to this hypopathetical question.

Money, like all necessary tools makes this world go round. It’s nice to have just enough to pay the bills and top up investments. I do not want to be dependent on any level of govt. in order to survive. I would rather have a little too much and be able to enjoy retirement.

Enjoy a great Christmas and New Year, Garth, Dorothy, Bandit and blogdogs!
*
Iceland’s ROI The joke is on TROTW; Gold Putting it in perspective; Hunger and Homelessness Up sharply; Argentina Protests there now; More work, less increases and less staff; David Cameron He is a politico. The less he speaks, the better; Iraq quadruples gold reserves in two months. India pays Iran in gold for oil; Ebenezer Scrooge “The Money-Junkies re-write the classics!” wrh.com; Pix The destructive oil sands; Derivatives NYSE sold to derivatives company; Merkel hypocritical?
*
Gun Control “In 1929, the Soviet Union established gun control. From 1929 to 1953, about 20 million dissidents, unable to defend themselves, were rounded up and exterminated. In 1911, Turkey established gun control. From 1915 to 1917, 1.5 million Armenians, unable to defend themselves, were rounded up and exterminated.”; No Sex Please, We’re British Consensual sex now a mental disability? 4:42 clip Appears NATO is the catalyst for a full scale global war, and Mali. This incl. the US and no doubt the IMF, as they are the warmongers, but UN defends NATO Where is the IMF? Setting up a private central bank? Anti-NATO protests; The Manipulation Masters Smoking Man would understand this; Combat deaths – Suicides “According to a caller into the radio show, most if not all those soldiers were being given SSRI anti-depressants by the military doctors. See ssristories.com for why this is a major cause of suicide.”; wrh.com and 4:58 clip 160K flu vaccines recalled; 6:23 clip Martial law etc.; For whom the bells toll, it tolls for thee; Palestine Getting their own back? Killer Corn; The Pope and child porn. Normal? Iran Got Me Under Pressure (Obomba); Putin Tells it like it is.

Pineapple 10K pounds? Sandy Hook Don’t follow the m$m; 8:38 clip Urban and self sufficient; Belgium Euthanasia is expanding to youth; Men In Black A 47:31 Russian doc.; Don’t fret Another apocalypse planned in a few decades’ time, then this one; 3:16 clip Instant portable power breakthrough; John McAfee New life with two girlfriends.Neanderthal Babies aka synthetic technology.

#61 too much debt on 12.22.12 at 1:46 am

So I have a question. If rates are set to rise and the bond market fall aren’t preferred shares going to come under some pressure same as bonds. Would it not be better to be in dividend paying stocks that at least have the ability to raise their payouts over time?

#62 The real Kip on 12.22.12 at 1:53 am

“But if you find one good friend in life, hopefully a mate or partner, you know wealth.”

Aww, that’s so sweet coming from you. I don’t believe it, usually you just tell everyone we they are stupid.

#63 Sebee on 12.22.12 at 2:08 am

#182 Canadian Watchdog yesterday.

Watchdog, I thought my $1.1m listing next to sewage plant was a winner. But your $1m listing the width that could be covered from wall to wall with my pee stream is funnier. I think it is time we start shaming these listings. They are so funny they rarely need commentary.

#64 Ted54 on 12.22.12 at 2:15 am

Nice ending and great advice. 37 years married. Have had joint bank accounts since we were 16.

#65 happy renter on 12.22.12 at 2:36 am

As for marriages,50 % odds of divorce including half all assets.Garth ,please tell that smart guy with the silver to put it in a safety deposit box and buy gold also.

#66 dd on 12.22.12 at 2:47 am

In US GAAP terms – the current US deficit is $7 trillion. That is just for 2012. The fiscal cliff is a joke. The ceiling will be lifted again like it always has.

There has been many missed calls especially from the daily ticket watcher.

People should really stick to what the are good at. For this blog it is real estate.

#67 mac on 12.22.12 at 3:00 am

The younger generation scares me. They are growing up nuts.

#68 Joe on 12.22.12 at 3:44 am

I suspect by the fluidity of Smoking Mads posts that his high friends are deemed so by a blood alcohol machine. Dude do your self a favor seek out a clinic.

#69 live within your means on 12.22.12 at 3:58 am

I assume this may be your last post before the holidays Garth. Merry Christmas to you, Dorothy & Bandit. Thank you everything you do.

#70 Tony on 12.22.12 at 4:12 am

Day traders who bet on the end of the world (December the 21st) reaped a 15.5 percent windfall on the TVIX at the 9:30am open. Either a fluke or a good bet on astrology that day.

#71 Jane24 on 12.22.12 at 4:58 am

Once you are over 50 it is a partner for life and good health. Nothing else comes close.

So many friends now in late 50s early 60s with poor health. Many still working as they are so stuck on this concept of the golden retirement. Little concept that their’s is going to be very restricted. They are working extra years so they can frolic in Hawaii, even though they hate long flights and have never liked beach holidays ever. Jam tomorrow is their motto and tomorrow keeps getting pushed out.

Take out a calculator and figure out what you really need to live on. If your health is starting to fail and you have that amount, then quit and start to live. We only go around once. My quitting day is Sept 30 2014 when I am 60.

Yet another cousin here, age 66, retired last year, found out she has cancer for the second time. The first time was three years ago, her regret, that she kept on trucking for those three years so she had a mythical ‘enough’ for those golden years.

You only go around once guys. Live your lives. I had cancer once and believe me, once is enough to change your thinking processes.

#72 Rob now in Nova Scotia on 12.22.12 at 5:49 am

The silver’s stupid, of course….

Garth, normally you devote an entire blog to point out the folly of the metals whenever there is a huge take down or price drop but this is all we metal nuts get? I’m disappointed.

The Vancouver wife should be thankful to have such a financial genius that would save 4500 ounces of silver. It pays nothing of course but is a financial life preserver.

Ask me about that in 3 years…

#73 Buy? Curious? on 12.22.12 at 5:56 am

Does a life-sized doll count as a mate?

Garth, someone seriously has over $150k in silver bars in their sock drawer? That’s crazy! Vancouverites are retarded.

NHL sucks!

http://www.youtube.com/watch?v=jQqkjxNSWZ0

#74 pjwlk on 12.22.12 at 7:03 am

Was at a 50th b-day party last night and spoke to a couple from Bowmanville. They had listed their cosy little bungalow, on a 1/2 acre lot, backing onto a forested area, for a little over $400k. They apparently had lot of people wandering through looking, but no bites after 3 months. They cited the change in mortgage rules as the deal killer…

#75 detalumis on 12.22.12 at 8:08 am

#31 you are in the same situation as most divorced men are, they are the ones that usually get burned, today in more cases the tables are turned and these stupid laws that oftentimes protect the lazy partner and punish the hardworking one, come back to bite them badly.

I hope you also didn’t get hit with spousal support, that was added surreptitiously after the women’s groups weren’t satisfied with just getting half of everything, they wanted half of everything until death.

#76 T.O. Bubble Boy on 12.22.12 at 8:21 am

@ #40 TurnerNation on 12.22.12 at 12:01 am
RIM is the new Nortel.
———–
Or, if you prefer… RIM is simply the current Nokia, Palm, Ericsson, Motorola, etc.

(and Apple is the future RIM)

No one stays #1 in the device/gadget world forever.

#77 Steve on 12.22.12 at 8:36 am

Good day, Garth. I read your column most days, and enjoy the wit and sarcasm. But I also generally find some words of wisdom too. Today was no exception. You have your priorities right. Merry Christmas and Happy Holidays to you and your family.

#78 Nukester99 on 12.22.12 at 9:06 am

To #62 too much debt:

“So I have a question. If rates are set to rise and the bond market fall aren’t preferred shares going to come under some pressure same as bonds. Would it not be better to be in dividend paying stocks that at least have the ability to raise their payouts over time?”

Preferred shares pay dividends before their common stock partners. The owner essentially is lending money to the company in exchange for these dividends. If interest rates rise there may be a reduction in the value of your preferred shares but you are looking at yield and the risk associated with the company deciding to stop all dividend payouts. The other side is that the owner of preferred shares have ownership in the company and does not get any vote (say) in what the company does. IMHO preferred share are a far better investment right now than any share of common stock in the same company for the very reasons Garth has stated many times.

Garth has never in my poor recollection recommended bank (or other) common stock but has consistently pointed people to preferred shares that have continuous records of paying dividends. Now if you can find a good, reliable preferred share that is selling at value than that should be your obvious choice. I would recommend that the silver couple take most of their illiquid PM and so exactly that.

With internet banking having separate accounts is a mute point if each has access to the accounts to pay off common bills in what ever way makes sense for each couple. You can even transfer money between accounts electronically. This takes openness and trust and honesty, the hallmarks of a proper relationship.

I hope everyone has a safe and happy holiday with those they love, the true source of real wealth that nothing can devalue.

#79 Nukester99 on 12.22.12 at 9:07 am

meant to say the preferred share holder has NO ownership in the company…oops

#80 Not 1st on 12.22.12 at 9:09 am

Garth if individual stocks are dangerous for the reasons you mention above and ETFs are simply made up of a basket of individual stocks, then they have the same inherent risks don’t they?

Less volatility, more diversification. — Garth

#81 Danno on 12.22.12 at 9:25 am

Not sure if you intend on writing until the holidays are over so, just in case; Merry Christmas and Happy New Year to you and yours. I greatly appreciate the read and the education.

#82 JOHN on 12.22.12 at 10:07 am

I came across this blog talking about ridiculous real estate prices…maybe all of you have seen this. If not, it’s quite funny:

http://fmlistings.tumblr.com/

#83 Hugo on 12.22.12 at 10:39 am

Thanks Garth!

#84 Sebee on 12.22.12 at 10:53 am

Look, finally they are starting to put 2 and 2 together and figure out it is all a giant scam.

http://m.theglobeandmail.com/report-on-business/economy/housing/shaky-foundations-how-ottawas-computers-get-canadian-home-prices-wrong/article6673774/?service=mobile

#85 TurnerNation on 12.22.12 at 11:01 am

DA keeps on about “Realtors”. Yet in their advertising they’re only allowed to list themselves as “Salesperson”. With a few being Brokers.

“Salesperson”! That’s it alright.

#86 M on 12.22.12 at 11:03 am

All that noise about separate chequing accounts:
if you have separate accounts, you don’t trust each other???? Seriously??? My partner and I have separate accounts because we trust each other. He can figure out what is happening in his account and I can monitor mine. I can barely keep track of my entries on accounts and I don’t want to sit looking over my partner’s shoulder while he tries to figure out why we have a $200 withdrawal from Subway. I can see that going over single shared finances could keep a couple on track and accountable and even create enhanced bonds. But trust? I’m sorry, I don’t see see this as a trust issue. Trust is when you give each other space and respect. It isn’t one size fits all for relationship finances. Don’t even get me started on the whole marriage thing.

#87 Hoof - Hearted on 12.22.12 at 11:45 am

#57 Dr. WAYNE on 12.22.12 at 1:08 am

But if you find one good friend in life, hopefully a mate or partner, you know wealth.

=====================

I would add … “and a good guitar”.

52 posts so far and not an a$$hole among them … excellent !!!

===================================

Well looks like we have to start over after Post # 57

#88 TEMPLE on 12.22.12 at 12:19 pm

In a world now swamped by high-frequency trading, and algos making millions out of fractional-penny spreads, the little-guy investor doesn’t stand a chance. Investing is all about fighting off volatility.

Come on, Garth, you know all that isn’t true, and if it was, then ETFs offer no better solution. An investor with a little discipline can easily mimic the low turnover, passive approach that makes ETFs successful- and it can be done without the cap-weighted risk of ETFs and their vampiric fees.

Don’t you think it is at least possible for an investor to be as smart as an ETF? I do (and I am).

Investing doesn’t have to be holding AAPL or RIMM (ironically, though, a lot of ETFs do hold those stocks) – that is an investing strawman. You can reduce volatility risk just as effectively with individual stocks as with ETFs.

Just so I don’t totally bust your b@lls so close to the holidays, I completely agree with you about mutual fund salespeople and day traders. You are partly wrong about professional stock brokers, but I’ll leave you alone on that point.

TEMPLE

Disagree. For most people direct equity investing is a prelude to heartache. To achieve diversification you need a significant amount of money spread across small, medium and large-caps, various sectors and geographic weightings. Then you need more capital for the fixed income portion, to achieve balance. You may be special and endowed. We humans are not. — Garth

#89 -=jwk=- on 12.22.12 at 12:25 pm

My wife and I have seperate accounts. The bank wanted $ for joint,$for.cheques. I just gave her my debit card as she does most of the spend. Shrug. we dont write many cheques anyway

#90 Grant on 12.22.12 at 12:27 pm

#89 Skeptical on 12.22.12 at 11:30 am

Great advice, also maybe TD Waterhouse e-series index funds are a good way to start, no commissions, no loads, low MER and well diversified.

#91 Pr on 12.22.12 at 12:36 pm

..The silver’s stupid…
May be,. But he know that the very suspicious behavior of some people at the higer positon, (like HSBC laudering money for the drug cartel, by the millions) are selling 100 times more paper silver than the actual physical metal available, maybe more. If or when people start to ask for physical silver… Bang! Le génie s’approche de la folie!

#92 TurnerNation on 12.22.12 at 12:39 pm

Found this, a typical metals gambler:

http://i.imgur.com/XaiUx.gif

#93 TurnerNation on 12.22.12 at 12:52 pm

It’s Christmas shopping season, for some. Standing in long lines – the store’s (now owned by a hedge/vulture fund) rightsized its staffers, paying huge markups on cheaply made overseas goods plus another implied 3% to the credit card processors and 15% to the government.
The same hackneyed Christmas tunes playing overhead, with most standing in line not even subscribing to that tradition’s artifacts. If the anonymous clerk behind the counter even speaks your language just maybe you may crack a smile or nod. Your gross consumption is complete, your desires exhaust.
Our glorious advanced way of life; what we fight for??

Walk through your local Sears or Bay. Do people really need a $1000 home expresso machine, a $500 kitchen mixer, $1200 cookware set, $500 tablet pc, or any of the shiny baubles offered? Apparently so. Paying $40 for a $2 T-shirt stenciled with ‘Abercrombie’. Priceless.
You deserve it! The kids are alright?

#94 Herb on 12.22.12 at 12:54 pm

Smoking Man,

I just love the way you go from shitfaced drunk to insufferably sober within minutes.

Guess traffic on your “site” is a little slow if you don’t drum up business on Greater Fool.

#95 wendi1 on 12.22.12 at 1:02 pm

When my mom and dad separated, she was in trouble – no credit history, no bank account, his name was on all the bills.

Risk management suggests that each partner have some separate banking arrangements and individual, up-to-date credit histories.

But I agree, a joint chequing or joint credit card for household expense sharing makes life easier.

Merry Christmas to those who love us! As hard as it may be sometimes…

#96 Joe on 12.22.12 at 1:08 pm

Thanks for your insights. Never knew you were such a softy. Merry Christmas.

#97 Dom on 12.22.12 at 1:22 pm

T.O. Bubble Boy on 12.22.12 at 8:21 am
@ #40 TurnerNation on 12.22.12 at 12:01 am
RIM is the new Nortel.
———–
Or, if you prefer… RIM is simply the current Nokia, Palm, Ericsson, Motorola, etc.

(and Apple is the future RIM)

No one stays #1 in the device/gadget world forever.
—————————————————————–

RIM is the new Apple and Apple is becoming the old RIM. BB10 with hub, flow and peak will also have the fastest web browser. The alpha dev B(not the final hardware beat the iphone5 and WP8. BTW I use the SG3 but will be buying BB10 since it will be the best phone on the market. January 30 find out why

#98 Devore on 12.22.12 at 1:23 pm

#94 Pr

are selling 100 times more paper silver than the actual physical metal available, maybe more. If or when people start to ask for physical silver… Bang!

So what? The largest world commodities exchange, COMEX, can opt to settle in dollars. What can you do about it? Nothing. Bang? More like whimper.

#99 Dr. WAYNE on 12.22.12 at 1:24 pm

#90 Hoof – Hearted on 12.22.12 at 11:45 am

Well looks like we have to start over after Post # 57

++++++++++++++++++++++

Now that’s pretty sharp, Goofy …

Compliments of the season to all those a$$holes out there … and you (we) all know who you (we) are.

And a very special wish for you Mr. Turner for a happy Christmas and a peaceful, joyeux, and prosperous New Year … with a special thanks for your wisdom, compassion for those whose financial prowess is wanting, and your limitless patience for posts tantamount to the total destruction of the English language.

#100 hangfire on 12.22.12 at 1:25 pm

Nah…..you got it all wrong….is it the rarefied altitude…or just being in TO that makes people a little numb? If rates rise it will be in the face of inflation which will be good for hard assets and inflation sensitive resource stocks….like enrgy plays. Gold in paticular will continue to increase ( as it has for the past 14 years straight….hate the game not the player) in value as cash depreciates further to cover government deficits…..this is all pretty much a no brainer.

It’s the safe money that gets hammered….bonds and dividend payers….and yields tank and profits get squeezed at banks and utilities. As long as this malaise continues I will make hay…..time to reap the benefit of all the cheap stocks is now……in the investment game…patience is the watch word. There is no more valuable commodity than time.

#101 The Man From Nantucket on 12.22.12 at 1:26 pm

55 Andrewski – nice catch, there is one I didn’t think about.

That said, the way we manage the personal chequing account, balance ranges between 0 to maybe 110% of a single paycheque (why the heck would you keep a bigger balance except if you were planning a cash purchase in the immediate future?)

Anyway, yeah, probate, but I figure I’d have bigger things to cry about if my wife passed……and I like to hope she feels the same.

Good tip with the parents’ accounts though……if nothing else, immediate access to the chequing accounts would be handy for squaring the estate with creditors.

#102 Linda Pearson on 12.22.12 at 1:28 pm

re separate bank accounts

We don’t keep separate accounts (except as noted below) because my husband couldn’t reconcile an account of his own to save his life so I do it for him. It isn’t the arithmetic so much as lack of interest coupled with the incorrigible habit of assuming “everything will come out in the wash”. After 41+ years I don’t expect much to change and it’s just easier to take on the oversight.

He can’t remember passwords either so, though I do our banking on-line, I also keep track in a 3-ring binder much like old-fashioned bookkeeping of years past. When I die he can just take the binder to the accountant who’ll explain everything to him (again and for the umpteenth time).

But as regards separate accounts for us, I do keep a “getting out of town” account of my very own for those inevitable days when hubby and I can’t stand each other for one more minute. They come occasionally and when they do, I just think of my capability to up and leave in a huff, slamming the door and jumping out of the way just before it hits my keester. Mind you, with the current balance, I’d likely only make it as far as Hamilton or maybe Oshawa. As exotic as those destinations are, common sense always prevails and the thought of those 41+ years brings me back to my senses as I remember he is my best friend, my “mate” as Garth so eloquently wrote.

We are wealthy beyond all reasoning, not in money though there may just be enough of that to last, but in the realization that whenever we each turn up again home at the end of the day, we have renewed our vows. And that is richness beyond measure.

Merry Christmas blog dogs and to you, too, Garth.

#103 Devore on 12.22.12 at 1:29 pm

#24 Smoking Man

Really? A contest? Actually, name dropping IS a step up from what I expected of you.

The wealthiest people I know look, act and sound like regular punters. The ones most broke want everyone to think they’re Donald Trump. Pretty clear which group you’re in.

#104 ex bc boy on 12.22.12 at 1:40 pm

what a great last line…. I can only wish. Kay back to reality. Six mos. ago I hired a broker. Handed over a 100 grand. Dividend paying stocks, REITs, solid companies. Have to say thus far I’m satisfied. May get out of mutual funds altogther in 2013. I do believe I know where your coming from Garth regarding the volitility of stocks…. One final thing- I did try to contact your office a couple of times earlier this year but didnt get a call back from you. Not sure if you received the message from your assistant? I may try again. Merry Christmas

I’m kinda easy to reach. My cell phone number is on this site. But I don’t take calls from cowboys. — Garth

#105 Holy crap where's the Tylenol on 12.22.12 at 1:48 pm

Great post Garth, alway watching from afar I work for CSIS!

#106 Canadian Watchdog on 12.22.12 at 1:49 pm

 

Can anyone imagine trying to buy a stock without looking at historical prices? Or using a similar stock to value another stock? Sounds stupid but that's exactly what's happening in our housing market.

For example: A buyer would view the following home listed at $1,289,000 with the last MLS# C2391447. But here's what they probably don't see.

Apr-12    C2328770     27 RIALTO DR      $1,339,000     
Apr-12    C2345185     27 RIALTO DR      $1,339,000      0.0%
Apr-12    C2323701     27 RIALTO DR      $1,299,000     -3.0%
Apr-12    C2328770     27 RIALTO DR      $1,299,000     -3.0%
Apr-12    C2328770     27 RIALTO DR      $1,199,000     -10.5%
May-12   C2345185     27 RIALTO DR      $1,349,000      0.7%
May-12   C2345185     27 RIALTO DR      $1,288,000      -3.8%
Jun-12    C2382376     27 RIALTO DR      $1,248,800     -6.7%
Jun-12    C2391447     27 RIALTO DR      $999,900        -25.3%

Perhaps this is why Property Guys have included the following:

PLEASE NOTE: Our listings are maintained by home sellers. Our sellers are generally pretty honest and well intentioned folks but we can't guarantee the accuracy of the information on this page. If you're interested in this property, please ask lots of questions and independently verify the information in this listing.

I'm sure if a buyer purchased this home at the current asking price and was informed afterwards, or discovered via Google that the price was 25% less six months prior, they wouldn't be too happy. My advice to anyone purchasing a home going forward is to make sure your agent (if not a private sale) signs a rep and warranty agreement stating that the information provided to you is whole and accurate.

#107 Anymouse on 12.22.12 at 2:33 pm

#1 Can somebody explain why the Feds ok another 50 billion? What would the repercussions of that decision be?

#108 Marie on 12.22.12 at 2:36 pm

Good post. Last line very true. As far as separate accounts and living together etc. I don’t concern myself with other people’s personal choices. Everyone has the right and choice to do what makes sense and feels right to them. Period. It’s for me to say what is ‘right’. In the spirit of how Garth closed this post why not agree to disagree and respect each others freedom and right to live by their own values and choices. I’ve known those who were legally married for only a few years and went on to simply live with their next partner for over 25 yrs. Last time I heard they were still happy.

Meanwhile lets focus on our own lives and families this Holiday season. Have a good one all!

#109 Marie on 12.22.12 at 2:38 pm

Sorry typo. My comment should say, “It’s NOT for me to say…”

Again, happy ho, ho everybody!

#110 Toon Town Boomer on 12.22.12 at 2:41 pm

People were created to be loved. Things were created to be used. The reason the world is in chaos, is because things are being loved, and people are being used.

I hope in 2013 GREED will stop and people will begin to shift to a brighter & higher awareness for the betterment of mankind and our planet ( for our children & grandchildren). Happy Holidays & best wishes in the new year.

#111 panhead on 12.22.12 at 2:44 pm

But if you find one good friend in life, hopefully a mate or partner, you know wealth.

Might also add what a co-worker once told me, if you can retire after a long career and have 1 GOOD friend (co-worker) at the end you did well.

All the best…

#112 TJ on 12.22.12 at 3:10 pm

That chick has 1/200,000th of the global above ground silver supply in her lingerie drawers. Hot!

#113 Dave the dentist on 12.22.12 at 3:11 pm

#54 Smoking Man’s Old Man

Hah, even I have to agree that Jimmy the surgeon is stupid to dump 200K into a restaurant. No thanks.

#114 Smoking Man on 12.22.12 at 3:17 pm

Herb. In life no matter what position on any given issue we will have freinds and enimmes. Take it your not a fan. How will I cope?

As far as my Blog goes, let’s see, hum, I sell nothing no money links. Just sarcastic comedy.

How old are you?

#115 coastal on 12.22.12 at 3:27 pm

Great post Garth, how true it is. It still boggles my mind how much misinformation is being posted on blogs by agents and bulls who are foaming at the mouth as prices inch downward. Apparently a “soft landing in BC” is the golden fact, something which has never happened before in history. Kinda like the Mayans and the Doomsday crap all over again.

On top of that, the massive debt numbers of 160% or so of income is no big deal cause “they say” everyone is not defaulting and everyone in BC is so “conservative”. We know the truth of that one, too bad the real estate industry these agents represent keep spewing out these false predictions with no legal recourse. I just read 60% of the city area of Victoria are renters, not owners, like the mantra keeps pumping out. Kinda says where the real truth lies doesn’t it. 2013 will be a very unlucky number for some. UVic is suddenly laying off full time people employed since the 80’s due to “inflation costs”, imagine that eh ?

#116 tkid on 12.22.12 at 3:42 pm

I back Wendi on this – each partner needs their own credit history.

When my father died what saved my mother from months of extreme stress was her separate bank account and her credit card.

Banks are known for closing down credit cards etc that are in two people’s names once divorce or death occurs. Ask your friendly bank teller if this sounds dubious. Ask!

#117 Herb on 12.22.12 at 4:26 pm

#118 Smoking Man,

72.

#118 Holy crap where's the Tylenol on 12.22.12 at 4:38 pm

Hath isn’t this the post apocoliptic forecast?

#119 drydock on 12.22.12 at 4:53 pm

What people need is a mystical experience to wash away their baser lifestyle choices,watching this entire video should accomplish this.

http://www.youtube.com/watch?feature=player_detailpage&v=wZZ7oFKsKzY

#120 espressobob on 12.22.12 at 5:05 pm

#96 Turner Nation

Please trust me when I tell you or anyone else reading this comment, DON’T BUY a $1000 espresso machine! Just trust me.

#121 bill on 12.22.12 at 5:06 pm

”having widely torn my loin cloth.”
give the word Garth and I shall form a small commando and deal with these base individuals
one of your best lines for sure : ”But if you find one good friend in life, hopefully a mate or partner, you know wealth’

#122 Old Man on 12.22.12 at 5:13 pm

#117 Dave the dentist – the restaurant business is big money if one does it right; for 200k that is a joke, as that is the cost of a good kitchen. I know a family who has a chain, and for each new restaurant they bought the land and built – all cash. This is how they built up their fortune without no debt. In Toronto there was a famous small chain of restaurants which will not name, but this had to be a first. Most want terms to pay for 30 to 60 days and set it up as a payable; they paid all in cash.

#123 Ronaldo on 12.22.12 at 5:19 pm

#10 Luke – ”what I can do with my $50,000 sitting in the bank..doing nothing….”

For you it’s doing nothing….for the bank…that’s another story….why would you want to lend money to the bank to receive less than the inflation rate and pay tax on that to boot. All the while the bank lends it out 10 times over to others and collects three times what they give you…..no wonder we invest in bank related investments. Suggest you buy Garths book. Best way to start the new year I would say.

Great post Garth. I suspect that ”somebody” mentioned by the real estate lawyer dude Mark is you. I wonder what he will be saying about the affordability when rates go up from 3% to 6% and prices drop in half. I suspect he will be saying something like, “houses are much more affordable now that the prices have dropped 50% since the interest rates have risen to 6%”. Only trouble with his theory is that the mortgage debt remains for those getting sucked in at the top end at the low interest rates. Over 100 people have recommended his article. Hard to believe.

#124 JuliaS on 12.22.12 at 5:32 pm

$200K in silver? Convert half of that to garlic and Garth won’t come within 100 of your home.

#125 Timing is Everything on 12.22.12 at 5:32 pm

#72 Jane24

Good post.

48, give or take. Generally, that seems to be the age. Health starts to waver, ever so slightly. I’ve asked quite a few people about it and just general observation. Enjoy your health while you have it…sooner or later it will fail you.
————————————————-
#118 Smoking Man – In life no matter what ‘position’ on any given issue we will have freinds and enimmes.

Do you mean ‘friends and enemas’…? Please ‘clarify’ yourself.
—————————————————-
…hopefully a mate or partner, you know wealth. – Garth

Hey! I’m richer than I think.

#126 Old Man on 12.22.12 at 5:33 pm

Ok will not discuss the one because we still have this relationship together, but the one in Toronto can disclose as at one time were clients of mine who was the gem in Toronto because they sold out, and they paid cash for everything including my fees. It was Frans, and guess what? The location at Yonge and St. Clair just west of Yonge was my night spot with a date, as never had to pay for a food billing. My dates were very impressed by it all, but said nothing.

#127 Smoking Man on 12.22.12 at 5:35 pm

#123 drydock on 12.22.12 at 4:53 pm

Hilarious!!!!!!!!!!!!!!!!!!!!!!!!!! 10 hours worth

#128 cynically on 12.22.12 at 5:35 pm

Thank you John #84 for showing a few of the ridiculously priced Canadian properties in comparison to similarly priced ones elsewhere in the world. It really brings home how absurd prices have become, at least in the Toronto and Vancouver markets and reinforces the theme of this blog. I hope we see more of these comparisons even if just for the laughs.

#129 Hoof - Hearted on 12.22.12 at 5:44 pm

#108 Holy crap where’s the Tylenol on 12.22.12 at 1:48 pm

Great post Garth, alway watching from afar I work for CSIS!

=====================================

Thats what I like about this blog..one can Network.

CSIS..so what really happened during 9-11 and where is Bin Laden …really?

#130 Ronaldo on 12.22.12 at 5:46 pm

#116 TJ –

”That chick has 1/200,000th of the global above ground silver supply in her lingerie drawers. Hot!”

That’s exactly right TJ. But if you look at it another way, she has 1/10,000th. of the annual production that is available (physical) for investment purposes. 1,000,000,000 x 5%/5000. Now that’s hot.

#131 JohnS on 12.22.12 at 5:50 pm

http://www.theglobeandmail.com/report-on-business/economy/housing/shaky-foundations-how-ottawas-computers-get-canadian-home-prices-wrong/article6673774/

ShAkY fOuNdAtIOnS OF CANADIAN RE

#132 Hoof - Hearted on 12.22.12 at 5:51 pm

A doctor(Wanker) was having an affair with his nurse.

Shortly afterward, she told him that she was pregnant. Not wanting his wife to know, he gave the nurse a sum of money and asked her to go to Italy and have the baby there.

“But how will I let you know the baby is born?” she asked.

He replied, “Just send me a postcard and write “spaghetti” on the back. I’ll take care of expenses.” Not knowing what else to do, the nurse took the money and flew to Italy.

Six months went by, and then one day the doctor’s wife called him at the office and said, “Dear, you received a very strange postcard in the mail today from Europe, and I don’t understand what it means.”

The doctor(Wanker) said, “Just wait until I get home and I will explain it to you.”

Later that evening the doctor (Wanker)came home, read the postcard, and fell to the floor with a heart attack. Paramedics rushed him to the hospital emergency room. The head medic stayed back to comfort the wife. He asked what trauma had precipitated the cardiac arrest.

So the wife picked up the card and read: “Spaghetti, Spaghetti, Spaghetti, Spaghetti – Two with sausage and meatballs; two without.”

Punchline: (4) more Wankers DNA potential

#133 TEMPLE on 12.22.12 at 6:27 pm

You may be special and endowed. We humans are not. — Garth

Fair enough.

#134 Victor V on 12.22.12 at 6:47 pm

Serious concerns raised over housing appraisals in Canada

http://www.theglobeandmail.com/report-on-business/video/video-serious-concerns-raised-over-housing-appraisals-in-canada/article6641107/

Business reporters Grant Robertson and Tara Perkins talk to Hannah Sung about an investigation by The Globe and Mail that uncovered a hidden risk in Canada’s housing markets: The rise of automated lending approvals, which have created a rapid-fire system that has financial regulators worried about the foundations of Canada’s housing market – that the true value of Canadians’ homes could be far lower than what computerized or human appraisers have estimated.

#135 espressobob on 12.22.12 at 6:57 pm

#89 Skeptical

I’m scratching my head? That was a excellent comment!

#136 Victor V on 12.22.12 at 7:00 pm

Home prices have doubled over the last decade, propelled by low rates and easy mortgage terms. But as the U.S. experience proved, soaring property values can come with an ugly downside. Starting with this story, The Globe and Mail examines the foundation of Canada’s historic real-estate boom in a series.

http://www.theglobeandmail.com/report-on-business/economy/housing/shaky-foundations-how-ottawas-computers-get-canadian-home-prices-wrong/article6673774/?page=all

#137 Mayan Calendar on 12.22.12 at 7:10 pm

Hey..where can we drop off Dr. Wanker and Smoking Old Man…..the aliens are pissed off that their probes broke.

PS They threatened to have the Leafs win the Cup .

#138 jess on 12.22.12 at 7:11 pm

Would an electrified ring fence really change matters?

Friday, Mar. 28, 1969
Organizations: A Glossary of Incompetence

http://www.time.com/time/printout/0,8816,839972,00.html

#139 live within your means on 12.22.12 at 7:15 pm

#72 Jane24 on 12.22.12 at 4:58 am

I retired at 54 – I recently turned 65. Had worked for the prov. govt. & as soon as I heard I could buy back service from the feds – worked w/them in Ottawa & abroad, I did. I was able to write it off over 3 yrs. A yr. or so later I got cancer. Went thru chemo – some days 9 hours at a time – chems burned my arm. Several yrs later it returned. Had a portacath inserted. Had all kinds of problems with it. Only had 3 sessions of chemo as my body couldn’t take it. As Garth knows, I’m a 9+ yr. Stage IV cancer survivor. I’ve been travelling overseas for years and resumed as soon as my hair started to grow out a bit after the 1st time. Immigration looked at me oddly as I didn’t look like my passport photo – LOL. That year we attended a double baptism in France – a big affair. Will continue to travel & take advantage of whatever time I have left.

I’ve known people who have died within a year after retiring at 65.

Again, Merry Christmas everyone. We’ve a fire going, listening to Christmas carols, house is all decorated, & will be making some yummy seafood dishes over the holidays. Taking some to a g’friend on the 27th who just had a major operation and will, no doubt, have to undergo chemo in the NY. Neighbour’s daughter also & another friend on the st. had a masectomy during the summer, but is doing well, thankfully.

Live life while you can.

#140 Retired Boomer - WI on 12.22.12 at 7:44 pm

Great post tonight….with a great, and true closing sentiment..

Just coming up on 1 year in that land called retirement. My, so many things to do, I wonder how I ever had time to work!

DW of 38 years still working because she wants to.
I however, do NOT want to work.

Garth, after a year of retirement, and having taken an annual withdrawal from my tax-deferred savings. Now my balance is even higher than what I started with. A nice problem to have to “suffer” with, I’m sure that’s curable.

Great partner, great planner, and we are still in love with each other. ALWAYS had just one joint checking account.

Can it really get better than this?

We are SO blessed! Merry Christmas, everyone!

#141 Old Man on 12.22.12 at 7:54 pm

I feel sorry for the Smoking Man as my flight leaves for Vegas on the 26th for 5 nights at the Excalibur, and have a few women in USA who are booking too; not to meet the Smoking Man, but to meet the Old Man for a good time, and this will cost me a few bucks.

#142 CrowdedElevatorfartz on 12.22.12 at 7:57 pm

@#123 drydock
Nyan Cat?
WTF?
I lasted 1minute and 30 seconds.
Then I performed sepuku.
You are an evil man……

#143 cariboojohn on 12.22.12 at 8:06 pm

Post #72 Jane24
That was a good read !
i’ve taken 3 weeks off work, this Xmas.
just to think,on things.
As you say once your health comes in question.
It changes things.
My $30.00 union job is only good for so much .

#144 Holy crap where's the Tylenol on 12.22.12 at 8:11 pm

Buy Apple pleeeeesse, RIM too, gold going south, oil flat , real estate flat maybe even negative. Push it real good!

#145 Charlie Sheen on 12.22.12 at 8:36 pm

90 Hoof Hearted

“Well looks like we have to start over after Post # 57“

My thought as well!

#146 Hoof - Hearted on 12.22.12 at 8:39 pm

#143 live within your means on 12.22.12 at 7:15 pm

=====================================
Wishing you the best and a long life.

May recommended you watch this documentary:

” Cut Poison Burn ”

http://vimeo.com/46543405

#147 live within your means on 12.22.12 at 9:00 pm

“But if you find one good friend in life, hopefully a mate or partner, you know wealth.”

So true Garth. I’m also so glad that I got to reconnect this past summer with 2 twin sisters that I grew up with – we remain in touch. The other evening I reconnected with an old friend in Sooke, BC. We have a long history together. Maybe it’s the time of year or my friggin old age (LOL) that brings out the need to reconnect with them. When we’re in France, hubby & I always get together with 4 or 5 couples from his younger days. I met them 25+ yrs ago. They’ve really changed over the years, grandchildren, etc. but still lots of fun.

#148 Holy crap where's the Tylenol on 12.22.12 at 9:29 pm

Well got to go cut down another Christmas tree, My uncle Lewis just set ours on fire!

#149 live within your means on 12.22.12 at 9:49 pm

#144 Retired Boomer – WI on 12.22.12 at 7:44 pm
Great post tonight….with a great, and true closing sentiment..

Just coming up on 1 year in that land called retirement. My, so many things to do, I wonder how I ever had time to work!

DW of 38 years still working because she wants to.
I however, do NOT want to work.

Garth, after a year of retirement, and having taken an annual withdrawal from my tax-deferred savings. Now my balance is even higher than what I started with. A nice problem to have to “suffer” with, I’m sure that’s curable.

Great partner, great planner, and we are still in love with each other. ALWAYS had just one joint checking account.

Can it really get better than this?

We are SO blessed! Merry Christmas, everyone!
……………..

Hi Retired Boomer

Enjoy your retirement

In my case, I did 5X the stuff when I worked than I do now. I can’t believe all that I did in my 40’s after working all day, doing all the cooking, housecleaning, major gardening & I had my 80+ yr old Mom (103 lbs.) living with us who suffered from macular degeneration so couldn’t trust her to do anything in the kitchen. She also had lots of other health issues. I had to bathe her, etc. She was wonderfull, appreciated everything we did for her. I miss her.

My last post. Just listening to Ave Maria & feeling so nostalgic.

#150 Smoking Man on 12.22.12 at 9:58 pm

#145 Old Man

You feel sorry for me, and ha,

I feel sorry for you, staying at excalaber, dump.

I use to go there when I was poor….

#151 salonist on 12.22.12 at 10:02 pm

“Do those who retire early live longer ?”

http://www.bbc.co.uk/news/magazine-18952037

#152 Molson Ukrainian on 12.23.12 at 12:15 am

#16 Inglorious Investor

“1) Couples who commit to live together, commit to buy a home together, and commit to raise children together, but don’t get married. What are they afraid of, commitment? If you want to act like a married couple, then why not just become one?”

Men are scared off now. Too many friends/coworkers/etc stories of how the system favors the female and the hard working man owes half his paycheck for the next 15 years, regardless of who left who.

#27 FTP – First Time Poster

“I made a point this year of not buying “stuff” for loved ones, but experiences that they will enjoy & remember”

Yeah!! You ‘get it’! Everyone needs to understand this, and realize the system hates you for thinking this way.

#29 Smoking Man

Good point, but give credit where it’s due. What exactly is your smoke of choice anyway?

“Seriously. It’s just money. Or metal. Or a house. You can replace any of that stuff, or perhaps never needed it in the first place.
But if you find one good friend in life, hopefully a mate or partner, you know wealth.”

Well said, but IMO it is MANY good friends in life that makes ‘wealth’. Variety is the spice of life. You don’t want to eat the same dish of food everyday, so why would you………

#118 Smoking Man

“As far as my Blog goes, let’s see, hum, I sell nothing no money links. Just sarcastic comedy.”

So just how many hits do you need before you start reaping the rewards? One day the booze will be free eh?

#153 GLK on 12.23.12 at 12:20 am

Did you hear H? He sound like one of this blog’s dog.

“You should be asking yourself, ‘If interest rates were a couple of points higher, can I really afford the debt load I’m taking on now?”

“we continue to urge people to have caution because eventually, interest rates will go up,”

“look at the long-term picture, especially as baby boomers head towards retirement with uncertain pensions”

“What I’d say to all Canadians is balance your debt levels, balance your borrowing, and balance your ambitions in terms of house ownership with some savings as well,”

“Meanwhile, don’t panic about the world”. Do you hear that, Gold/silver bugs?

I bet H routinely reads this blog.

http://ca.finance.yahoo.com/news/harpers-years-resolution-canadians-watch-debt-levels-000508482.html

#154 D-dawg on 12.23.12 at 12:23 am

#97 Herb

Call’in it like he sees it. Lol. Nice one and you even got under his skin enough to elicit a tea bag comeback. Props.

Tea bag…in the ocean…WEAK…..

#155 45north on 12.23.12 at 12:53 am

Victor V: from your link: When Dennis Gilmore gathered financial analysts and investors on a conference call last summer, the head of California-based First American Financial Corp. had some troubling news. It was what he referred to bluntly as “the situation” up in Canada.

excellent article, like Mark Hanson said, when house prices are rising you cannot assess house prices moreover nobody cares.

#156 Just sayin' on 12.23.12 at 1:12 am

Methinks I feel a delicious itch coming on. Yes, forsooth, my dr wayne deserves a good scratching now and again.

#157 Retired Boomer - WI on 12.23.12 at 1:24 am

#153 Live Within Your Means….Thank you.

Time is a special commodity. We can use it all up doing things productive, fun, or just watching the world go by.

To time it matters not. To us it IS something to be measured, and always remember that this moment is never coming back.

I try to live the best, most reasonable life I can (my definition here only). That way few regrets, no shoulda, coulda, wouldas crowding my mental space, or my spiritual spaces.

Despite all the challenges, and detours we have all faced., or shall in time, it is still a wonderful life!

#158 a prairie dawg on 12.23.12 at 1:41 am

#141 Mayan Calendar

– — –

You’re yesterdays news. ;)

#159 Aussie Roy on 12.23.12 at 8:25 am

Aussie Update

Surplus abandoned as ‘sledgehammer’ hits revenues.

Swan indicates there has been a substantial broad based hit to company profits across multiple sectors of our economy.

“Now, the main reason for this is the very substantial hit to profits that Australian companies have experienced in the early months of this financial year, and this isn’t just in resources, it’s right across the board – companies, in particular, being hit by the high Australian dollar,” Swan remarked in his press conference.

“Let’s put this in some perspective: in just four months, we have already seen the full hit to revenue that we were expecting for the whole year.

http://www.treasurer.gov.au/wmsDisplayDocs.aspx?doc=transcripts/2012/120.htm&PageID=003&min=wms&Year=&DocType=2

http://www.whocrashedtheeconomy.com/blog/2012/12/surplus-abandoned-as-sledgehammer-hits-revenues/

#160 MarcFromOttawa on 12.23.12 at 9:17 am

Only the oracle from Woodstock may talk about precious metals.

#161 Ralph Cramdown on 12.23.12 at 10:01 am

Opinions are like Dr. WAYNE… Everybody’s got one.

#162 Smoking Man on 12.23.12 at 11:16 am

Fn ridiculous. Who is Canadian news maker of the year?

A killer, comes home in an airbus all to himself, we live in one f-ed place.
Who vote for this. MSM

Garth your x colleagues are idiots.

#163 City Slicker on 12.23.12 at 12:07 pm

“This scares me,” she said as we got going, but she needed my help to explain to her husband why being a doomer who thinks he knows more than Ben Bernanke is putting them at major risk. Worse, it’s endangering their marriage.”

This is like saying trust H and F with the housing mkt, they knew what they were doing.

#164 Mayan Calendar on 12.23.12 at 12:46 pm

#162 a prairie dawg on 12.23.12 at 1:41 am

#141 Mayan Calendar

– — –

You’re yesterdays news. ;)

=================================

I am currently dating the Playboy Calendar

#165 Herb on 12.23.12 at 2:58 pm

#167 Smoking Man,

the MSM newsrooms were able to milk what’s-his-name for the greatest number of column-inches or on-air minutes, which definitely makes him their Newsmaker of the Year.

Actually, it’s more of an indication of the irrelevance of the MSM, rather than our living in a “f-ed place.” The MSM just haven’t caught on yet.

#166 randman on 12.23.12 at 3:03 pm

“So what? The largest world commodities exchange, COMEX, can opt to settle in dollars. What can you do about it? Nothing. Bang? More like whimper.”

Devore=Moron

You obviously don’t understand anything about the PM’s
so best to shut your trap before you misinform people

#167 hangfire on 12.23.12 at 3:15 pm

We should end the year with an appreciation of what got us here. Remember Marcus Aurelias who said…”those who fail to learn from the mistakes of the past are doomed to repeat them”. In my generation we have seen our democracy raped, immigration used as a political weapon and the lionization of the mediocre politically correct . We see 100% of Ministerial budgets siphoned off by an elite class of union fascists so that zero tax dollars ever reach the needs and the needy. We are witnessing a Soviet style coup d’etat where the airwaves run oncontrolled propagnada, a rabid police force operates without prosecution and the solicitation of quislings in the form of human rights tribunals that force the narrow agenda of the apratchiks on the majority. All straight out of Stalins playbook to demonize individual rights. Lets make a law that all Liberal civil servants can no longer wreck the judgement of the electorate. Our civil society could run with milk and honey if it weren’t for all the leaches.

Have a better year…speak out against the imposition of liberal mediocrity and the fascism of the politically correct. Merry Christmas !!

We should try to end the year without being a paranoid extremist with an anti-social mistrust of leaders, institutions and our fellow citizens who form them. Or, just hope you go away. Happy holidays! — Garth

#168 futurologist on 12.23.12 at 5:15 pm

We should end the year with an appreciation of what got us here. Remember Marcus Aurelias who said…”those who fail to learn from the mistakes of the past are doomed to repeat them”. In my generation we have seen our democracy raped, immigration used as a political weapon and the lionization of the mediocre politically correct . We see 100% of Ministerial budgets siphoned off by an elite class of union fascists so that zero tax dollars ever reach the needs and the needy. We are witnessing a Soviet style coup d’etat where the airwaves run oncontrolled propagnada, a rabid police force operates without prosecution and the solicitation of quislings in the form of human rights tribunals that force the narrow agenda of the apratchiks on the majority. All straight out of Stalins playbook to demonize individual rights. Lets make a law that all Liberal civil servants can no longer wreck the judgement of the electorate. Our civil society could run with milk and honey if it weren’t for all the leaches.

Have a better year…speak out against the imposition of liberal mediocrity and the fascism of the politically correct. Merry Christmas !!
————

You are right.

I was born in USSR.

Now, I recognize same soviet lies, propaganda and hypocrisy in Canada.

Canada is reincarnation of USSR and the end will be the same. It may happen sooner than later.

#169 Holy crap where's the Tylenol on 12.23.12 at 5:25 pm

#173 hangfire on 12.23.12 at 3:15 pm

Sounds very familiar, “Humm oh yes I recall” A Clockwork Orange!

Oh whatever these are the last of the best days of 2012, Merry Christmas!

#170 Holy crap where's the Tylenol on 12.23.12 at 5:32 pm

Oh ya about to do some evy drinkin Mates! Honing my bottle opening skills already, I say nothing like drinking Jack Daniels with my friend Johnny Walker. I shall raise a toast to all on this blog, and then a few more just to make sure I haven’t missed anyone! So long markets, real estate, and suits. Startingggggg now!

#171 Ralph Cramdown on 12.23.12 at 6:11 pm

#172 randman — You obviously don’t understand anything about the PM’s

From what I can see, the less one understands, the less likely one is to have his ass handed to him by the market (see Sprott, Eric, who offers underperformance over a number of time frames for a very reasonable 1.5% fee).

Sometimes when all my other play money ideas are naff, I short some SLV. I get management fees, capital appreciation and a lottery ticket on the off chance that the bugs are right and the non physical vehicles are just worthless paper. Alas, no good entry opportunities on THAT trade lately.

#172 Nostradamus Le Mad Vlad on 12.23.12 at 6:12 pm

-
Read an interesting article yesterday. In the lower psychic regions, creation is finished which means this Physical, Astral, Causal, Mental and Etheric Planes / Levels are almost identical, there is but a degree of difference (except the size). The Mental Plane is the third heaven St. Paul clearly spoke of.

Also, everything is linked so, as in the case of the song “One Thing Leads to Another”, just as 12/21/12 was the end of the Mayan Age, it was also the beginning of The Tribulation.

Now, we haven’t been Christians in almost two decades but it helps if one does basic research and investigation, and for me that wasn’t difficult at all, having seen both sides of the equation (Catholic and Protestant) for a little shy of two and a half decades.

Using St. Malachy’s prophecies (if true, and there is no reason to suspect they’re not and who lived in the 12th century), saying there would be 266 more popes from his time on (the present one, Benedict is 265) means the Catholic / Christian church is almost at the end of its run (birth – life [decay] – death).

This doesn’t take into account the cycle change from caucasian (white) to far east (yellow – red races), which changes in the next decade or two. Evidently, the tribulation will last 3 1/2 years, but things are subject to change.

One thing is certain — there will never be peace down here, simply because this world was always designed to be a warring, violent planet.
*
Chilling Economic report; Shaykspeer and China Complicated; 4:58 clip Agenda 21 and the new world economy, and Fiscal Cliff non-event? Think again “Ordinary people and America’s most disadvantaged suffer most. The worst is yet to come.” May well be part of Agenda 21’s plan; A Silver failure on the COMEX market? 12 Gold Bugs Buy low then flood the world with tungsten; Germany wants Britain The UK is broke and Germany is headed that way.
*
Chicago 62 school children killed in 2012, and Psych medicines linked to 90% of school shootings; Short clip US using (telling) NATO what to do in the MEast; The Hawaiian Islands Being eaten from the inside out.

#173 Mayan Calendar on 12.23.12 at 6:21 pm

Psssttt…..Listen…as long as the Leafs don’t win the Cup…the world won’t end.

If they do……everyone has to move to Toronto….same difference.

#174 GregW, Oakville on 12.23.12 at 6:32 pm

#150, thanks for the link. Interesting, especially some of the quot’s from winners of Nobel prizes near the end regarding the issue covered.

#175 Republic_of_Western_Canada on 12.23.12 at 6:55 pm

What exactly are ‘non-agency R & B S’ and why are they paying 8% with little risk?

#176 Ralph Cramdown on 12.23.12 at 8:13 pm

#181 Republic_of_Western_Canada

Your search will go better if you look for “non-agency RMBS”

#177 45north on 12.23.12 at 9:25 pm

Hoof-hearted: Cut poison burn: from the video: it takes $1.6 billion to bring a new drug to market, this eliminates all but the biggest drug companies

Dr Burznyski stood up to the FDA. Good for him. Jane Henney of the FDA looks like a tool.

#178 ken s on 12.24.12 at 3:16 am

Merry Christmas and Happy New year to all Bloggers also, and honest writing everywhere……..

Cheers, Ken S

#179 happy renter on 12.25.12 at 3:44 pm

My girlfriend bought a new small house in Westhills,a Victoria suburb and in 6 months the same houses are selling $10,000 more.Hundreds of houses are being built here in the next few years so no recession here.Heck I might sink all my money into a house here and rent it out for my retirement fund.Location is the key and Victoria as many people say is the San Diego of the north.

Lay off the eggnog, son. — Garth