Rex F

muscle

Stocks surge to a record high, gold falls. So much for Cyprus. Now let’s get back to house horny.

First, F triumphs. The lawn ornament who walks like a man has managed to stare down a second bank trying to spark a well-publicized mortgage war and rope in a fresh load of virgins. The finance minister scared off Manulife from trying to throw a 2.89% five-yearer into the marketplace last week, and now he’s deftly emasculated BeeMO. The bank announced Monday its 2.99 Special will die on Wednesday.

This means you can pretty much kiss off the spring market, as rates rise back to the 3.09% mark. No, it’s not much of a hike and, yes, you can still get 2.74% money if you’re aggressive with most lenders, but any move up is an anathema to housing. Expect sales volumes to continue to badly trail those of last year, with prices to follow – as they already are in bellwether BC.

Why did the elfin deity do this? Simple. The peckerettes know full well where real estate values are heading. They also know mortgage wars appeal mostly to first-time buyers, most of whom have but 5% down. So a price correction over the next year of even a modest 10% would push all of these kids under water, as it would so many people who have turned homeowners in the last two years.

As the US experience has shown, people in negative equity stop buying cars, flat screens and trips to places where people wear mouse ears (Regina is so overrated). The macroeconomic concern is that an ocean of consumer debt combined with falling house values in a country where 70% of families own one, and 65% of the GDP is based on consumer spending, is toxic. So, sucks to your mortgage war. The minister will have none of it.

Is this unfair to certain lenders? Of course. These guys should be aggrieved that they’re slapped down for giving consumers cheap money while banks like TD Canada Trust deceive.

Ever heard of the peekaboo mortgage?

Here’s the come-on from your empathetic, caring lender: “Planning on taking a parental leave, a sabbatical from work, pursuing your studies while working part-time, or finance an unexpected expense? A payment reduction is a good feature to consider.” The TD (and others) allows borrowers to skip a mortgage payment completely, making only 11 monthly payments per year.

Why? Baby time. A new furnace. Or “take a sabbatical from work.” It’s marketed under three headings – Payment vacation, Payment Pause and Payment Reduction. But the result is the same in each case for those borrowers who have not prepaid their mortgages in advance (and who does?).

The portion of the missed payment which is interest (the bulk of it) is capitalized, which means it’s added to the principal amount of the loan. So when you miss a payment (or four) the amount you owe goes up, and thanks to the magic of amortization, you’ll end up paying it back at least twice over.

But there’s more: “If necessary, we will adjust the amortization period remaining at renewal so that the mortgage does not exceed the original amortization period remaining. This may result in an increase to the amount of your regular payments after the renewal.”

The bottom line: the bank has found a way to reduce annual mortgage payments by about 8%, which effectively reinstates (during a five-year term) the 30-year amortization which F made illegal last July. Maybe he should kick a few groins over there.

Finally, let’s not overlook an important leading indicator of the housing market. And it’s flashing red.

When a few thousand people were asked if they intend on buying a house in the next year or so, an historic number – 85% – said no way. This is the biggest annual increase in negative sentiment in the history of RBC’s annual poll. Three-quarters of respondents blamed changes in mortgage regs which make home loans more expensive (despite cheap rates) and slightly harder to get. This should tell you how fragile a thing real estate has become.

The larger reason buyers are retreating into their shells is fear. Being irritatingly human, people think things that are falling in value are more dangerous that those which grow more expensive daily. For homeowners trying to sell at last year’s prices, this is the kiss of death. Those houses will become more and more illiquid, with many selling only when they’re finally priced below market value.

By the way, the survey also showed half the people in BC think it’s turned into a market for buyers. The fact they aren’t should keep you up tonight.

180 comments ↓

#1 Kevin on 03.26.13 at 7:05 pm

The word is getting out.

http://ca.finance.yahoo.com/blogs/pay-day-/canadians-house-buying-plans-drop-sharply-rbc-102507116.html

#2 [email protected] on 03.26.13 at 7:10 pm

What the hey are Bitcoins?

#3 guelphstudent on 03.26.13 at 7:10 pm

WOW at peekaboo mortgage. That’s just wrong. Sad part is that I can see people jumping up on it as flies on sugar

#4 Retired WI Boomer on 03.26.13 at 7:14 pm

So, with 70% home ownership who NEEDS to buy a house? Virtually nobody, and that makes a n anxious seller do the proper thing, lower the price to move it.

Falling prices in an over extended market make for decent pickings for a buyer who is well prepared to ask for 20% off.

#5 Chopper on 03.26.13 at 7:18 pm

Why don’t the Minister just raise interest rates to more realistic levels?

#6 TurnerNation on 03.26.13 at 7:39 pm

Re. running for office. I figure you’ll realistically need 100k to run a good campaign (campaign office, workers, signs, printing & mailing, travel expenses). Plus opportunity cost. I knew of a guy who did just that at the MPP level. He lost. He’s a lawyer billing $350/hr.
Democracy (and justice) ain’t cheap.

#7 DJB on 03.26.13 at 7:40 pm

Take 4 months off from any mortgage and you usually get a demand letter.

#8 thebarold on 03.26.13 at 7:41 pm

We (western nations) cannot afford to raise rates – the governments are net borrowers -not in their interest. (ba-dum-dum)

Any stats on inventory of houses or condos for sale and how long they are on the market? Still see a lot of sold signs on houses throughout the neighbourhood – so it doesn’t seem like they languish.

#9 Tommy on 03.26.13 at 7:41 pm

Read the March 24 Toronto Star article below. This is what Ted Kesik, a professor of building science at U of T says about the condos currently being built in downtown Toronto:

“No one will want to buy them because people will look at them and say, ‘Are you crazy? I don’t want to buy something that leaks, that will cost a fortune to retrofit.’ So when they can’t get sold, they’ll get rented. And they’re not of a high quality, so they can’t get rented for a lot of money. So who do you think is going to live there? I tell people, this is where your grandchildren are going to come to buy crack.

http://www.thestar.com/news/gta/2013/03/24/growing_up_are_torontos_new_condos_built_to_last.html

You’d have to be crazy to buy a unit in a glass condo tower!

#10 Fisher on 03.26.13 at 7:42 pm

Unfortunately you have been saying this for years. The feds have demonstrated they will not alloy a price correction because it will hit revenues too hard. They must meet a balanced budget even if it means selling your kids future. I can see a slight correction but if this get at all bad it is in their interest to subsidized the industry more. They will never get re-elected if they are seen to allow a housing crash. I rent but not because I am scared of the market. I enjoy having money to spend and free time to spend it.

#11 Dr. Hoof - Hearted on 03.26.13 at 7:45 pm

COMMUNISM ALIVE AND WELL THROUGH UN AGENDA 21 AND FABIAN SOCIALISM OF THE WEST

http://canadafreepress.com/index.php/article/53999

QUOTE
I walked down trying to retrace my steps but I froze at the bottom of the hill. A large pack of street dogs was approaching, barking and growling. I went uphill quickly, regretful that I could not continue my exploration. The street below, with 40 or so homes still standing, was familiar – three of my school mates lived there with their families. I was surprised that these homes had not been demolished to make room for more high-rise ugly concrete block apartments.

Utilizing every inch of space to the max was a primary goal of city planners.

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

Quote:

Communism did not die behind the Iron Curtain in 1989 – it re-emerged in a more nefarious form around the globe, promoted by the compliant media and hypocritical Hollywood. McCarthy was right about some of them after all.

The has-beens of the old communism and total government control are nostalgic for the good ole days of totalitarianism, romanticizing the past, trying to reclaim their positions of power and privilege. The global communism of U.N. Agenda 21 is making great strides, using environmentalism, land preservation, zoning, and care for the planet as a tool.

And the Fabian socialists in the west are winning the hearts and minds of low information voters who believe anything they are told over and over by the mainstream media.

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

Like I said folks….we are being “farmed”…no difference between Commies, Big Banks and Big Gov’t.

#12 Renters Revenge on 03.26.13 at 7:47 pm

Why don’t the minister get out of the way and let rates find their own level. (Just privatize CMHC first!)

#13 TurnerNation on 03.26.13 at 7:50 pm

Mortgage vacation:
In Soviet Kanada, mortgage amortizes you?

#14 Old Man on 03.26.13 at 7:51 pm

Fear is the greatest emotion in life to make decisions that are not rational most of the time, as some want to buy a home with cheap money which is a trap, as they feel they will be left out. The highest order in life is having patience; be satisfied with renting, and wait like a fox for a better time to hoop the dream in the future for a home in a few years or so.

#15 rosie "moving backwards" on 03.26.13 at 7:53 pm

But, but, what’ll we do with all that debt. http://www.economist.com/comment/1944555#comment-1944555

#16 Shawn Allen on 03.26.13 at 7:56 pm

NO DELINQUENCIES HERE

One way for banks to avoid delinquent mortage payments is just to allow skipped payments for just about any old reason.

Pretty soon though the bank loses its early warning system and fools itself into thinking delinquencies are low when in fact they are simply encouraged and re-labeled.

#17 Shawn Allen on 03.26.13 at 8:05 pm

HORRORS CONSUMER SPENDING IS 65% Of GDP…

Garth said: 65% of the GDP is based on consumer spending. And said this contributed to a toxic economy.

**********************************
Horrors!. But wait, why else do we have production if not to consume? If not 65%, what should it be?

Consumers don’t produce 65% of GDP, they consume 65% of GDP (production). The rest is consumed by government, net exports and investment in new infrastructure (to make up depreciation and to add net new infrastructure). Again, why should we not consume 65% of production?

#18 Cow Man on 03.26.13 at 8:06 pm

Sir Garth:
“The lawn ornament that walks like a man”. H is going to ask you back just for the giggles!

#19 Guy in TO on 03.26.13 at 8:13 pm

My block in TO (single family detached homes in decent area) has 3 listings. Will keep an eye out on how long they take to sell. It’s been several weeks or so. One home cut from $1.2m to $999,900.

#20 An Importation To Prop The Ponzi Scheme on 03.26.13 at 8:16 pm

I got an offer from ING for a 2.79% mortgage in the mail yesterday. It will be a hard crash but I do not know how many years will the agony last while the cartel manages to manipulate the market. Canada is as controlled as the Soviet economy was…

#21 Denise on 03.26.13 at 8:18 pm

This morning my husband and I made an offer on a house at Coxwell and Gerrard in Toronto for $635,000. Alot of money for a generic old house, but we want to stay in the area. We just found out someone outbid us. The house was listed for $549,000. So frustrating…

#22 mamablondie on 03.26.13 at 8:20 pm

So, the banks are helpfully suggesting ways to miss mortgage payments. A “vacation” if you will.

They know that many homeowners won’t be ABLE to pay their mortgages as planned, so they must make it seem voluntary and cheery. A break. A change. Sort of an opportunity rather than a problem.

Some mortgages are more equal than others. Very Orwellian.

#23 StocksRHot2013 on 03.26.13 at 8:25 pm

TD mortgage breaks, pauses, vacations etc are just laughable. What a joke this Canadian real estate biz has become. Queue the crash folks, especially after that pathetic home buyer survey!

#24 Free bird on 03.26.13 at 8:31 pm

#16 @ShawnAllen

Re delinquent payments

Great point. Not surprising that banks who are tied to an industry who help feed a (very large) stream of their profits in the form of mortgages and LOCs would figure out how to play with the numbers just like the industry. Banks are not so much in the service industry as the retail industry. More people need to get that.

#25 Old Man on 03.26.13 at 8:34 pm

I see this last pic and one guy might be in a bit of trouble, as use to lift weights, and the spot man has his eyes elsewhere looking at a babe instead in shorts no less. :)

#26 Mister Obvious on 03.26.13 at 8:38 pm

“So when you miss a payment (or four) the amount you owe goes up, and thanks to the magic of amortization, you’ll end up paying it back at least twice over.”
————————

If you should live that long. Such heartless victimization of the innumerate. Slimy.

#27 T.O. Bubble Boy on 03.26.13 at 8:40 pm

@ #19 An Importation To Prop The Ponzi Scheme on 03.26.13 at 8:16 pm
I got an offer from ING for a 2.79% mortgage in the mail yesterday. It will be a hard crash but I do not know how many years will the agony last while the cartel manages to manipulate the market. Canada is as controlled as the Soviet economy was…
_________________________

Ya – got the same flyer… it was promoting a *3-year* mortgage @ 2.79%, which apparently is “acceptable” to F and the peckerettes.

#28 T.O. Bubble Boy on 03.26.13 at 8:44 pm

For those TD “skip a payment” options, you gotta love that the ads feature a guy proposing to his girlfriend… the messages from TD are just sad:

“feel free to miss a payment in order to prove to your future spouse what a good catch you are!”

or

“miss a payment to be able to afford that ring for your special someone”
(the irony is killing me)

#29 Smoking Man on 03.26.13 at 8:50 pm

Lets just bloddy hope buyer interest is down, after daily gloom and doom in MSM from F and C.

The only way demand will meet supply and find balance. SFH 416

#30 neo on 03.26.13 at 8:50 pm

Gold falls? It is $1,600. It has been here plus or minus $50 for several months. Hyperbole works both ways. S&P 500 and Nasdaq are still not at all-time highs so “stocks” at all-time high with said stocks consisting of 30 stocks is a bit rich from a guy who preaches diversity.

I regret your loss. — Garth

#31 Axxman on 03.26.13 at 8:56 pm

The under-reported news of the day is the BRICs announcement that they are establishing their own EME Development Bank. This has the potential to amplify the Europe problem.

#32 Chickenlittle on 03.26.13 at 9:00 pm

#20 Denise:
“The house was listed for $549,000. So frustrating…”

Be glad you didn’t get it. If someone else wants to be stupid, don’t let it bother you!

I used to watch the Virgins on HGTV and when Tubetop Sandra would tell the buyers that all the offers were rejected because the owners wanted more money I wanted to scream at the virgins and the tv. WHY would anyone fall for that?

It would serve the owners right if no one came back with a bid after that. That is something I would pay to see!

So don’t worry! You are ok!

#33 Min in Mission on 03.26.13 at 9:07 pm

The only time that there is a “holiday” from a mortgage is when there is no mortgage at all!!

Holy Garth Turner! Who was the “creative” financial master mind that though up that campaign??

The problem is, someone, if not many, will take advantage of this promotion. Not realizing that they are the ones being taken advantage of.

#34 DA why don't you mention all the foreclosures in Kelowna too! on 03.26.13 at 9:08 pm

#20 Denise on 03.26.13 at 8:18 pm

Consider yourself lucky; a greater fool just saved you a boat load of money. Stop looking in Canada, start looking in the US. Rent in Canada, buy in the US…say do you like Palm Springs, CA? Lots and lots of inventory there, you can buy a truly fabulous house for $250,000, let alone $600,000. Stretch your limits, that’s how you really get wealthy. You can rent that place out in the winter to Canadians for thousands of dollars. The temperature there today is 31 degrees Celcius; that’s 88 Fahrenheit, for all you pre-metrics people!

In the US currently, the mantra is – Buy low, sell high. In Canada it’s – Sell high, buy low. Now is the time to sell in Canada, Denise wake up! The Canadian dollar is high against the US greenback from a historic persepective.

Denise, it sounds like you need a reality check, use this website to figure out if its cheaper to buy or rent. I surmise it’ll be much cheaper to rent for you…it’ll turn you into a very wealthy woman if your smart.

http://www.nytimes.com/interactive/business/buy-rent-calculator.html?_r=0

By the way Denise, just between you and me I think you’re a frightened realtor trying to drum up business. Get a life Denise, you only go around once!

#35 Pr on 03.26.13 at 9:13 pm

…which effectively reinstates (during a five-year term) the 30-year amortization….

Its now a complete circus! With buffoon crowd. Run by clowns.

#36 Rex F — Greater Fool – Authored by Garth Turner – The Troubled Future of Real Estate | The Affluent Boomer™ on 03.26.13 at 9:16 pm

[…] First, F triumphs. The lawn ornament who walks like a man has managed to stare down a second bank trying to spark a well-publicized mortgage war and rope in a fresh load of virgins. The finance minister scared off Manulife from trying to throw a 2.89% five-yearer into the marketplace last week, and now he’s deftly emasculated BeeMO. The bank announced Monday its 2.99 Special will die on Wednesday. Continue reading → […]

#37 Smoking Man on 03.26.13 at 9:21 pm

Number 1 son is getting married in June, that just the birth order, he wants to buy a house, wife just wants to hand him the loot, I can’t do that. He has access to a Heloc he’s doomed. He hustles best when his backs against the wall. Plus don’t know if it’s going to last, stats and all.

So what must I get from the force to assist in imploding this crazy market. To give them a fleeting chance.

Sadly even I can even walk on water…..

The herd, is out of control….

#38 neo on 03.26.13 at 9:26 pm

I regret your loss. — Garth

Ummm ok. Let me explain more clearly for you. There are 30 stocks in the Dow. That is at an all-time high. There are 500 stocks in the S&P 500 and thousands of stocks in the Nasdaq. The one with 30 stocks is at all-time highs. So what? Gold is like $6 less this week than last week? So what. Some guy on here boasted about a $5 pop in Gold in a matter of minutes and you said that was immaterial. Again, hyperbole goes both ways. Try reading what was written instead giving responses that make no sense.

#39 Poste Haste on 03.26.13 at 9:31 pm

If you come into money and are able to pay off your mortgage – instead of getting hit by some incredible insane fees ( currently $14K just to break our mortgage).

You stop paying your mortgage – call the bank and tell them you can’t pay anymore – after 90 days by law they will issue you a demand letter to pay the entire balance plus 3 months interest – cha ching – pay it off and save $14K – yes, you take a temporary hit on your credit report – but the savings is worth it – and legal –

Ask any real estate lawyer – (or at least in Ontario)

#40 Old Man on 03.26.13 at 9:40 pm

#35 Smoking Man – look on the bright side of life, as your #1 son might get lucky, and marry a woman that will train him well, and all will be good.

#41 labrador refugee on 03.26.13 at 9:41 pm

Hey Garth,
Who do you think is going to win the Labrador byelection?

#42 Good Authority on 03.26.13 at 9:47 pm

Now they say the big Canadian banks are “too big to fail”.
This should push more activity into reckless investing by the banksters with probable major losses all covered by taxpayers over and above CMHC.

We are being set up by a combination of banksters and useless politicians.

I fully expect mortgage rates under 3% to be widely advertised in an attempt to sucker that last fool before the whole thing implodes yet again with the taxpayer left holding the bag.

Gold, stocks, preferred…we’ll take it all thanks.
400 hold the wealth of the bottom 70% in the US. Canada’s top 400 want the same.

People who say ‘bankster’ are almost as comedic as those who use ‘fiat.’ — Garth

#43 Old Man on 03.26.13 at 9:47 pm

Ok see that should have been #36, but that goes for all of you men, as do not worry about a marriage between a son or a daughter, as the love birds are all off the page, and they will work things out together.

#44 How hot are Toronto and Vancouver on 03.26.13 at 9:49 pm

Did you guys see the maps here: http:\\recharts.blogspot.ca Amazing RE maps by an user @BC’s realestatetalks.

#45 HAWK on 03.26.13 at 9:53 pm

#37 neo on 03.26.13 at 9:26 pm

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

As far as I can tell the S&P 500 and Nasdaq are also close to their all time highs, not just the Dow. That said the I don’t personally believe there’s a lot more “upside” left in the bull run.

Sure about that? Expressed as a multiple of current corporate earnings, the Dow is 7% below its 10-year average and the S&P is 11% below. — Garth

#46 YYC on 03.26.13 at 9:54 pm

….Mortgage wars appeal mostly to first-time buyers, most of whom have but 5% down.

Garth,

Here in Calgary, higher end sales are setting record month after month…clear indication that the cowtown is following Van city…!

Looking forward to spring sales…

#47 Duncan on 03.26.13 at 9:54 pm

Apparently we are OK on sunny Salt Spring though…it must be true – I read it here

http://www.marinersloftsaltspring.com/press.html

“Canada’s recreational properties are returning to more balanced market conditions as more listings come on the market but Saltspring Island properties are holding tight to their value.
That’s because demand has increased for B.C.’s Gulf Island properties where the Islands Trust conservation rules have capped growth, said Li Read, of Re/Max Realty of Saltspring Island. “It’s a limited inventory.” Fly over the Gulf Islands to see “an awful lot of green,” Read said Tuesday. “The Trust has done a wonderful, wonderful thing.”

#48 SkyMager on 03.26.13 at 9:57 pm

#2 [email protected] on 03.26.13 at 7:10 pm

What the hey are Bitcoins?

____________

Bitcoins are a virtual currency that is tied to no bank. The Bitcoin is tied to an algorithm that creates a unique “string” of characters that can then be tied to an owner’s ID. This makes counterfeiting and theft nearly impossible. It is difficult to steal and impossible to lose. Many online retailers are now accepting Bitcoin and it is becoming a currency in and of itself.

Keep an eye on Bitcoin. It has the potential to rewrite how commerce works. I predict that in 10 years everyone in the world will know about Bitcoin and a large percent of the world population will use the currency (15% + imho).

Bitcoins are here to stay and banks should be very afraid. Bitcoins could do to the banking industry what Napster did to the music industry…

Meh, the banks will likely buy it out and squash it to save their business models… ;P

#49 salonist on 03.26.13 at 9:58 pm

China and Brazil sign $30bn currency swap agreement

http://www.bbc.co.uk/news/business-21949615

#50 Observer on 03.26.13 at 9:59 pm

Take It From Japan: Bubbles Hurt (New York Times 2005)

Still, for anyone wondering why even the possibility of a housing bubble in the United States preoccupies so many economists, it is worth looking at how the property crash in Japan helped to flatten that economy, which is second only to that of the United States, and to keep it on the canvas for more than a decade.

And as American homeowners contemplate what might happen if their property values fell -particularly if they fell hard – there are lessons in the bitter experiences of their Japanese counterparts like Mr. Nakashima.

http://www.nytimes.com/2005/12/25/business/yourmoney/25japan.html?pagewanted=all&_r=0

#51 Tom Vu on 03.26.13 at 10:01 pm

Smoking Old Mans IQ is the new Cyprus.

#52 Humble on 03.26.13 at 10:05 pm

I was watching Power Play on CTV(a national political show) and your should be aware that the housing market is healthy again. The caught only a last minute of the interview and they were talking about the RBC poll. The person being interviewed was some sort of “expert”. I don’t catch the beginning of the interview so I can’t tell who he represented. But according to this expert the Vancouver and Toronto markets have corrected, as in past tense. And you will be happy to know the Vancouver market is in short supply of housing stock. As for the Toronto market it is showing “positive signs”.

As for the RBC poll it is showing that 84% of people think that housing is a good investment. While in the end people will know better after the crash. In the present this attitude will make people hold on long to their houses longer. Like a bad gambler who has lost a ton of money but they think that on the next hand they will make their losses good.

#53 Bottoms_Up on 03.26.13 at 10:12 pm

Can’t believe they vetoed the “sex selection abortion” thing. This isn’t an issue of ‘abortion’, but of certain groups of people that are determined to have a male baby and therefore they selectively abort female fetuses. This is happening in Canada (as proven by the ratios of genders for 1st, 2nd and 3rd born children–that is, certain ethnic groups in Canada have a much higher propensity of having their 1st born be male) and this practice obviously should be illegal, and it should be an issue that our MPs have to face.

#54 Bottoms_Up on 03.26.13 at 10:16 pm

#36 Smoking Man on 03.26.13 at 9:21 pm
———————————————-
What about your sage advice of buying a bung in LB?

#55 Bottoms_Up on 03.26.13 at 10:19 pm

#20 Denise on 03.26.13 at 8:18 pm
———————————
Sick…time to get yourself an agent that really knows the area so that your next bid gets you the house!

#56 blok existentialist on 03.26.13 at 10:22 pm

Joe Weider died a couple of days ago at 93. It seems to have gone largely unremarked though this guy was born a Canadian (Montreal). Anyone who survived the dirty thirties, let alone became an international success, is interesting. Anyway, glad to see the pic … I was thinking of going to the gym and working out as a kind of tribute, but now I don’t have to … Weider influenced generations in a positive way. I think he did more good in the world than a country singer who insulted a queen (and aboriginal people whenever he got a chance).
I suppose the pix is really Cyprus (distracting girl) and the Canadian investor (builder), but I prefer the literal truth in things. I do remember a guy separating his shoulder when he got too intent on girl-watching instead of his barbell. But it served him right. He was one of those creeps who never wiped perspiration off a bench so the next person could use it without sliding off.

#57 Bottoms_Up on 03.26.13 at 10:24 pm

#4 Retired WI Boomer on 03.26.13 at 7:14 pm
———————————————-
My assumption is that 70% ownership stat is based on current households.

Therefore, there is still 30% of households that rent, as well as 20-somethings leaving the nest to live on their own (they either buy or rent), and immigrants (they either buy or rent).

And remember that investors form a large part of real estate transactions (actually the biggest), so the market is likely set by them anyway.

#58 HAWK on 03.26.13 at 10:25 pm

#47 SkyMager on 03.26.13 at 9:57 pm

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

If as you say, Bitcoin is based on mathematical algorithms then it’s Achilles Heel could be smart programmers that can create it at will.

And then it becomes like every other fiat currency, unlimited in supply and susceptible to inflation.

#59 Old Man on 03.26.13 at 10:30 pm

#50 Tom Vu – will give you a lesson in life, as if I had a daughter who came to me for advice with two men that wanted to marry her between a Medical Doctor and an auto mechanic would ask her one question only as who between these two men do you have a binding with common interests. Now she will say the Doctor is going to make a lot of money, but we have nothing in common, but the other guy we have all, so would say marry him.

The reason for such is the driving force in a marriage is the binding of common interests that fuels the love for each other, so Tom Vu go and eat cake as my IQ was tested at 140 years ago. The auto mechanic one day might own a huge business in life to prosper making big money.

#60 Toronto_CA on 03.26.13 at 10:34 pm

http://www.thestar.com/news/gta/2013/03/26/40_of_police_employees_earned_100000plus_in_2012.html

So messed up. Really, really messed up.

#61 Nostradamus Le Mad Vlad on 03.26.13 at 10:34 pm

-
Nevermind the bs of the world, there’s other things to focus on . . .
*
MEN JOKES

A LOT OF JOKES ABOUT BLONDE FEMALES FLOAT AROUND THE INTERNET BUT SOME MAY BE SURPRISED THAT THERE IS A WHOLE GROUP OF JOKES ABOUT MEN THAT MANY DO NOT SEE. ENJOY THIS OTHER SIDE OF THE COIN.

One day my housework-challenged husband decided to wash his Sweatshirt. Seconds after he stepped into the laundry room, he shouted to me,

‘What setting do I use on the washing machine?’

‘It depends,’ I replied. ‘What does it say on your shirt?’

He yelled back, ‘University of Manitoba!’

And they say blondes are dumb….

A couple is lying in bed. The man says,

‘I am going to make you the happiest woman in the world…’

The woman replies, ‘I’ll miss you . . .’

‘It’s just too hot to wear clothes today,’ Jack says as he stepped out of the shower.

‘Honey, what do you think the neighbors would think if I mowed the lawn like this?’

‘Probably that I married you for your money,’ she replied.

Q: What do you call an intelligent, good looking, sensitive man?

A: A rumor

Dear Lord,

I pray for Wisdom to understand my man; Love to forgive him; and Patience for his moods.

Because, Lord, if I pray for Strength, I’ll beat him to death.

AMEN

Q: Why do little boys whine?

A: They are practicing to be men.

Q: What do you call a handcuffed man?

A: Trustworthy.

Q: What does it mean when a man is in your bed gasping for breath and calling your name?

A: You didn’t hold the pillow down long enough.

Q: Why do men whistle when they are sitting on the toilet?

A: It helps them remember which end to wipe.

Q: How do you keep your husband from reading your e-mail?

A: Rename the email folder ‘Instruction Manuals’.

While creating husbands, God promised women that good and ideal husbands would be found in all corners of the world . . . then He made the earth round.

#62 over the pond on 03.26.13 at 10:38 pm

I feel afflicted by F’s actions. He’s trying to do the right thing, through the completely wrong measures.

He could reduce the government’s involvement in the marketplace by scaling back the CMHC coverage again, but instead interferes with the banks – it’s an interesting brand of conservatism that deters competitiveness before scaling back a social program.

#63 Nick_L on 03.26.13 at 10:43 pm

Be very careful with Bitcoin, opinions are divided as to how stable it is.

http://lifehacker.com/5991523/what-is-bitcoin-and-what-can-i-do-with-it

http://forums.redflagdeals.com/guide-how-buy-bitcoins-canada-1269579/

#64 Victor V on 03.26.13 at 10:46 pm

#5 Chopper

Why don’t the Minister just raise interest rates to more realistic levels?

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

Interest rates are not set by the Minister of Finance but by the Bank of Canada which impacts prime lending. The bond market takes care of most everything else on the fixed side.

#65 Smoking Man on 03.26.13 at 10:47 pm

Bottoms up. Long branch is golden.

Old man he’s getting trained good, problem he swallowed cool aid, straight shooter, truth justice American way, white picket fence. Hard work brings riches. He’s an idiot..

At leased the other two…are .. Smoking men, but they don’t smoke. Number 1 a smoker an embarrassed to the craft.

2 out of 3 ain’t bad….

#66 45north on 03.26.13 at 10:48 pm

The TD (and others) allows borrowers to skip a mortgage payment completely, making only 11 monthly payments per year.

which why the country needs me on the Board of Directors at CMHC, something about violates established underwriting standards, basically not what we signed on for.

[email protected]

Tommy: So who do you think is going to live there? I tell people, this is where your grandchildren are going to come to buy crack.

which would be a lot more funny if I didn’t have grandchildren

Denise: This morning my husband and I made an offer on a house at Coxwell and Gerrard in Toronto for $635,000. A lot of money for a generic old house

3 Cities is a study by Hulchanski U of T. It says that there is trend which allows neighbourhoods to be classified by income: high, middle and low. Coxwell and Gerrard is high income. So maybe Denise that’s why you made the offer. But there’s another side of it. That is the dream of major renovations probably should remain a dream. It just costs too much. You and your husband cannot work at high pressure jobs, pay the mortgage, raise your kids and do major renovations. Quite frankly the dream is there to suck you in – I do suspect that at some point mortgage rates will go up – worst case scenario is that you will be sucked in to expensive multi-year renovations at which point interest rates will rise. Again quite frankly I think you would be way better off taking up Karaté or kick-boxing. The people at the dojo will be a lot kinder besides you will like the feeling of being pushed physically.

Foreclosures in Kelowna: Stop looking in Canada, start looking in the US. I went to Sun City Center Florida for a week. Florida looked very good.

Post Haste: You stop paying your mortgage – call the bank and tell them you can’t pay anymore – after 90 days by law they will issue you a demand letter to pay the entire balance plus 3 months interest

thanks for your post, I had to read 2 or 3 times to understand it.

#67 Rainman on 03.26.13 at 10:50 pm

NEO – you don’t get it?

DUNCAN – I’m glad to hear about the greenish gulf islands, but just a matter of time before prices plummet. Enjoy the lifestyle and look at it in that way and not an investment. :)

85% saying they aren’t interested in buying a house and 70% owning one says it all.

#68 Retired WI Boomer on 03.26.13 at 10:50 pm

#56 Can’t get a deal unless you ask…with some walk-away power, too.

#69 Canadian Watchdog on 03.26.13 at 10:54 pm

TREB Home Statistics Table

#70 CalgaryBoy on 03.26.13 at 10:55 pm

The peekapoo mortgages: that’s an example of Canada having *lax lending practices*, something we’ve been told we proudly don’t practice, unlike the USA.

It just never ends does it. F should call TD out on it! Stand up to them and say, “hey, you’re illegally reversing my policies!”

#71 SkyMager on 03.26.13 at 10:55 pm

#5 Chopper on 03.26.13 at 7:18 pm
Why don’t the Minister just raise interest rates to more realistic levels?

____

Dude,

http://en.wikipedia.org/wiki/Mortgage-backed_security

F can’t do squat about Mortgage rates. Can’t set the overnight lending rate… Basically, the FM can’t do squat about the interest rates for anything…

Talk to the GotBoC (Governor of the Bank of Canada) if you want action…

Otherwise, if you are a bank, and you want to partake in the CMHC, then you should listen to the little elF…

#72 Vivek on 03.26.13 at 10:57 pm

“Maybe he should kick a few groins over there.”

ROFL.

#73 Realtor # 1 on 03.26.13 at 11:01 pm

As long as lenders are willing to lend their will be no
Crash. Also I thought the bond market was going to raise the 5 year rate.
Listings are looking light. I guess everyone will have to
“wait till next spring” for the correction.
Still waiting for the crash that everyone last spring
Said it was going to happen this spring
4 years and counting… You should have bought in
08/09 you will never see those prices again.

#74 neo on 03.26.13 at 11:02 pm

At #44 Hawk.

You do realize the Nasdaq all-time high was 5,048 right? We are at 3,252. How is that “close”. We are close to the S&P 500 all-time high of 1,565 since we are at 1,563. All these numbers don’t matter anyway. All that matters is when you get in and when you exit. Don’t be left holding the bag at the top and don’t panic and sell at the bottom because it is only a loss if you sell.

#75 frank the skank on 03.26.13 at 11:08 pm

#20 Denise on 03.26.13 at 8:18 pm
It was me…… mwhahahahahahahahahahaha!

#76 Smoking Man on 03.26.13 at 11:10 pm

Toronto star, slime busting up Ford, even if he was licked, so what.

This is what happens when males who have a strong feminized side, are promoted via the girly minded curriculum get an obedience certificate, they get a desk and keyboard, and write columns in a paper.

Not every man has set, not everyone can evolve to smoking man status.

I never read the star…

#77 SkyMager on 03.26.13 at 11:11 pm

@ #57 HAWK on 03.26.13 at 10:25 pm

Hawk wrote:
===============================

If as you say, Bitcoin is based on mathematical algorithms then it’s Achilles Heel could be smart programmers that can create it at will.

And then it becomes like every other fiat currency, unlimited in supply and susceptible to inflation.
____

You should leave the programming to programmers…

Creating currency at will and understanding the complexity of a finite algorithm (NOT PLURAL as you surmise) when it comes to Bitcoins and associating said Bitcoins to a custom algorithm owned by one person (thus making it “their” Bitcoin) are two entirely different things altogether…

Bitcoin is far beyond the currency of the dark ages that we are all used to.

By your response I can only surmise that you are not endowed with intellect in the area of advanced programming…

Now, if we had an EMP that wiped out said Bitcoins, that is another topic entirely… ;D

Which is why I will never own Bitcoins…

Just because I think something will do well doesn’t mean that I believe in it….

#78 Smoking Mans #1 son on 03.26.13 at 11:11 pm

#36 Smoking Man on 03.26.13 at 9:21 pm

Number 1 son is getting married in June, that just the birth order, he wants to buy a house, wife just wants to hand him the loot, I can’t do that. He has access to a Heloc he’s doomed. He hustles best when his backs against the wall. Plus don’t know if it’s going to last, stats and all.

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

Dad….I donut holed it againzt you for cashinga in my Harvard skholarship fer casino chipps.

You taut me everthink I know…and I still kno f$ck all..exzept that I figgured out Power of Atturney and how to get the 40-DD Nurz to pull the plug on ewe jest be4 the Leafs hoist the StanLee Cup.

Signed…a buff-a – low chip oph the old crock.

#79 Tony on 03.26.13 at 11:20 pm

When the rest of the people who own houses on your street finally figure it out every house on the street will be up for sale not just 3 of them. The people who live way up north figure things out quickly that’s where you see entire streets of houses up for sale at the same time.

#80 Tony on 03.26.13 at 11:27 pm

Re: #49 Observer on 03.26.13 at 9:59 pm

As you can see the Japanese don’t buy “dead cat bounces” like Americans are doing now in real estate.

#81 Smoking Man on 03.26.13 at 11:29 pm

Old man why do you even engage to tom vu,
he’s a Wana be smoking man but his camel toe disposition prevents that from happening.

#82 mortgagebrokeron on 03.26.13 at 11:30 pm

Td still offering2.89… F is just creating a facade … He isnt making rates go up… Its the spread in the bond market

#83 Tony on 03.26.13 at 11:34 pm

Re: #45 YYC on 03.26.13 at 9:54 pm

Calgary will tank like the rest of the country. Even now on mls all i see is foreclosures, rising inventory and price reductions.

#84 Canned Goods and Buckshot on 03.26.13 at 11:40 pm

#41 Good Authority

People who say ‘bankster’ are almost as comedic as those who use ‘fiat.’ — Garth

That’s a good one. I searched “The Economist” website using the term “fiat” and found its used a lot in discussing economic theory. You know, something imposed on people by decree. Sort of like taxing a deposit in a Cypriot bank. Those guys at “The Economist” must be such big idiots.

I also read today that Sunlife Financial Inc. CEO Dean Connor took home almost $8 million in 2012. I’m sure Mr. Connor must be competent at his job, much like most GPs, RNs, soldiers and police members. This gross over-compensation certainly justifies the term bankster.

#85 Phumb Ducker on 03.26.13 at 11:55 pm

#26 – I’d bet that ING gets a call from F tomorrow. Afterall, the head pecker can read.

#86 think again on 03.27.13 at 12:31 am

Fear and Greed control the masses …

#87 Mr Buyer on 03.27.13 at 12:52 am

As I have said before there are two undeniable good things about today’s modern western societies. One is dentists and the other is grocery stores. A good dentist is worth his (or her) weight in gold but bad dentists with-holding effective treatment for what ever reason well that is another matter. Thankfully it will be about a week more of pain from the same tooth (which has been going on almost steadily for months and months and repeated dental visits). I will be in Canada for a time in the near future and one of my first visits will be to my dentist’s office and he will put a stop to this chicanery once and for all. Two very important types of people are ethical dentists and mechanics.

#88 Humpty Dumpty on 03.27.13 at 12:53 am

Wells said Vlad….

Cow Economics…

TRADITIONAL ECONOMICS
You have two cows. You sell one and buy a bull. Your herd multiplies and the economy grows. You retire on the income.

AMERICAN ECONOMICS
You have two cows. You sell one and force the other to produce the milk of four cows. You profess surprise when the cow drops dead.

FRENCH ECONOMICS
You have two cows.
You go on a strike because you want three cows.

GERMAN ECONOMICS
You have two cows. You reengineer them so that they live for 100 years, eat once a month and milk themselves.

BRITISH ECONOMICS
You have two cows. They are both MAD COWS.

ITALIAN ECONOMICS
You have two cows. You don’t know where they are. You break for lunch.

SWISS ECONOMICS
you have 5000 cows, none of which belong to you. You charge the others for storing them.

JAPANESE ECONOMICS
you have two cows. You redesign them so they are one tenth of an ordinary cow and produce twenty times the milk.

RUSSIAN ECONOMICS
You have two cows. You count them and learn that you have five cows. You count them again and learned that you have 42 cows. You count them again and learn that you have 17 cows. You give up counting and open another bottle of Vodka.

CHINESE ECONOMICS
You have two cows. You have 300 people milking them. You claim full employment and arrest anyone reporting the actual numbers.

#89 kreditanstalt on 03.27.13 at 1:04 am

Gold has been remarkably stable in USD terms for 18 months or so now…and has actually risen in terms of other currencies.

Next time the wheels fall off, or those central planners that mainstream “investors” depend on so much lose control…

And, PS It’s “bellwether”.

#90 Turtle on 03.27.13 at 1:37 am

RE: #36 Smoking Man

“Number 1 son is getting married in June, that just the birth order, he wants to buy a house…”

…………………………..

We bought our first place after 8 years of marriage. The mortgage was huge – $82,000. You can ask me – why did we wait for so long? Because we moved seven times in our first eight years!

Every time you move you think “this is it”… Just wait. Life is changing so fast in your first years. But people try to settle too early. And when there is need for a change in address – they are in trouble – no freedom, your life belongs to the bank. Then marriage falls apart. Then kids are forgotten.

Few things to consider.
#1. As a young family it is OK to live in rental for a while.
#2. If you can’t buy a property without your parents help, that thing is too big for you to afford.
#3. Patience.

#91 hobbygirl on 03.27.13 at 1:46 am

Bitcoin as currency is quite expensive to buy…costs $75 Cdn to buy one coin. I’ve also heard it is used mainly as an investment tool which is something that captures my undivided attention. Al Gore had a few words on the currency being fascinated that it may replace traditional banking regulation as we know it since it is a worldwide currency.

I for one would like to get in at the ground level on something like this, albeit I’d like to learn a ‘bit’ more.

#92 Mark on 03.27.13 at 3:02 am

Ummm, “F” didn’t make 30-year or 35-year or even 40-year amortizations “illegal”. What he did do was prevent the CMHC from insuring such loans. Financial institutions remain to free to offer loans on basically any terms they want.

#93 Mark on 03.27.13 at 3:04 am

“Interest rates are not set by the Minister of Finance but by the Bank of Canada which impacts prime lending. The bond market takes care of most everything else on the fixed side.”

Actually the BoC doesn’t even ‘control’ the “Prime” rate. They control one rate — the BoC policy target rate, which is for overnight lending between banks. Individual banks are free to set “Prime” to whatever they want.

If a bank is particularly short of funds, they could, in theory, raise “Prime” to 10%, 20%, even 30%, and still be perfectly within their rights. If ever there were to be a bank run in Canada, this is exactly what would happen in order for the bank to repay depositors. Essentially a de facto ‘call’ on any loan.

#94 Aaron- Melbourne on 03.27.13 at 3:04 am

BREAKING NEWS FROM OZ

A little sleuthing from a regular commenter on Macrobusiness unearthed the total sham that passes for restrictions on foreign purchases of real estate via the Foreign Investment Review Board.

http://www.macrobusiness.com.au/2013/03/firbs-foreign-property-buyer-fail/

http://theage.domain.com.au/nonexistent-man-granted-leave-to-buy-598000-house-20130327-2gu0p.html

#95 Watching from Abroad on 03.27.13 at 4:24 am

“The lawn ornament that walks like a man”.
That was one of your funnier one liners in the last few posts. Good stuff.

#96 Buy? Curious? on 03.27.13 at 5:12 am

People shouldn’t be afraid of defaulting on a mortgage. In fact, it should be used as a tool for change to rein in banks (even though we’d end up paying to clean up the mess).

De-fault! De-fault! De-fault!

#97 World Traveller on 03.27.13 at 6:31 am

Skip a mortgage has been around for years, RBC lets you do it as well, it is not a new thing.

It is since the change in amortization rules. — Garth

#98 Canuck Abroad on 03.27.13 at 6:34 am

38 Poste Haste, good to know, thanks for that. Great idea.

#99 World Traveller on 03.27.13 at 6:44 am

Mila Kunis rotates from cash to stocks

http://ca.finance.yahoo.com/news/mila-kunis-rotates-cash-stocks-112538935.html

Anyways it’s good to see younger people at least take an interest on investing. Mila you are welcome to become a Blog dog here, yum!

#100 Elcheapo on 03.27.13 at 7:34 am

Skip a mortgage has been around for years, RBC lets you do it as well, it is not a new thing.

It is since the change in amortization rules. — Garth

Respectfully, my old Scotia mortgages (1999 and 2004) allowed me to skip 1 payment per year, which, predictably, was tacked on at the end of the stream.

Did the banks stop doing that for a while?

Banks allowing routine annual payment-skipping have (in effect) reverted to 30-year amortization payment schedules, since missed payments are capitalized. It’s worth knowing this. — Garth

#101 AK on 03.27.13 at 7:38 am

Russians consider lawsuits over Cyprus losses

http://finance.yahoo.com/news/russians-consider-lawsuits-over-cyprus-090603501.html

#102 Buy? Curious? on 03.27.13 at 7:55 am

Rob Ford has to be the best mayor Toronto has ever had! Even better than Mel Lastman! Isn’t he awesome?

Rob Ford should set his sights on going up to the federal level. Maybe he could Governor General or Finance Minister. I still think Brad Lamb should run for PM.

http://www.thestar.com/news/city_hall/2013/03/26/rob_ford_intoxicated_toronto_mayor_asked_to_leave_military_ball.html

#103 TurnerNation on 03.27.13 at 8:13 am

#20 Denise

It’s your lucky day. Go buy some socks, instead.

That area is neither in Leslieville nor Beaches. Why bid up in a sub prime area.
Supposed to ‘buy the worst house in the best area’.
Not the best house in the worst area!

#104 Ballingsford on 03.27.13 at 8:15 am

ING was teken over by Scotiabank weren’t they? They should get the call.

#105 maxx on 03.27.13 at 8:22 am

Payment vacation indeed….when will people realize that debt is something that should be trashed asap?…like something you need to scrub off like a disease and get out of your life forever, or risk future wealth.
Welcome to the Borg ship of fiscal enslavement. Resistance is NOT futile.

#106 Gypsy Kid on 03.27.13 at 8:24 am

Garth for Toronto Mayor! – that’s all i have to say.

#107 TurnerNation on 03.27.13 at 8:37 am

#59 Toronto_CA – talking to someone with friends in the force, even the parking enforcement guys regularly take home 6-figures – with a bit of overtime.
Parking enforcement! Which could be outsourced for a third of the cost.
And Toronto suffers another yearly prop tax hike.

In Kanada those in the Party and elite Party faithful get all the benefits. We are not special. Get that our of our head.

There’s more: police now earn several full, paid ‘court’ days, each month, whether they are in court or not. Previously attendance was a requirement.
(From this same source.)

The Toronto Sun lays it on thick that our ‘cops are tops’. When 1/2 of the TTC’s Transit enforcement cops were let go for massive and systemic fraud. Sickening.

I’ve chosen an honest private sector profession – in a meritorcracy. I pay for that move all right.

#108 Stickler on 03.27.13 at 8:38 am

The Dow is at an all time [nominal] high…remember:

– to forget about the companies that were removed from the index because they failed

But most importantly

– you ignore inflation

Its like buying a house for $30,000 in 1970 then the value flounders for 40 years and then you can sell it in 2013 for $30,001 -> that is a “new all time high”

That is the new math kids.

Stocks have doubled in four years, plus dividends. Do that math. — Garth

#109 Mstgofstr on 03.27.13 at 8:42 am

In and around Ottawa, people appear to be defaulting. I’ve seen three power of sale listings on MLS already this spring. I don’t remember seeing any in the last 10 years….at least not where the listing mentions POS.

#110 Bigrider on 03.27.13 at 9:20 am

The “Italian boys club” gonna be knocking on Flaherty’s doora soon enough, you believa me.

Seems they no lika the pressure he putting onadabanks to keepa da rates from a goina lower.

See dee italianos dei lova da realestata..dei build it ,dei sell it and dei maka de investamento in it.

I know you have missed me Garth.

#111 TurnerNation on 03.27.13 at 9:24 am

Richer than we think!!

By IE Staff | March 26, 2013 09:45

Canadians can now charge their personal income tax to the credit card of their choice.

The Canada Revenue Agency (CRA) has recognized online payment platform Plastiq Inc. as a means to use a credit card for payments, the Boston-based company said Tuesday.

“With Plastiq, a credit card is now a viable option to pay personal income tax, providing consumers with new choices and flexibility to strategically manage payments while capitalizing on the rewards offered by their credit card provider,” said Eliot Buchanan, co-founder and CEO of Plastiq.

Plastiq currently works with merchants across North America, representing the education sector, boating and automobile industries as well as real estate and rental markets. To ensure consumers are provided with a variety of payment choices, Plastiq has developed partnerships with leading financial institutions including MasterCard Worldwide and American Express.

For a fee of 2% per transaction, Plastiq allows Canadians to make large payments via their American Express, MasterCard, or Visa card to merchants who would previously accept only cash or debit.

#112 Toronto_CA on 03.27.13 at 9:55 am

Inflation sky-rockets last month, making a rate hike in 2013 a possibility. I would be very nervous if I had all my net worth tied up in real estate.

#113 Sebee on 03.27.13 at 9:56 am

Arnold says:
“Don’t be a girly-man. It’s only 215lbs.”

#114 fancy_pants on 03.27.13 at 9:59 am

anyone thirsty? I hear the kool-aid is tasty

http://www.cbc.ca/news/business/story/2013/03/26/osfi-banks-capital.html

#115 Holy Crap Wheres The Tylenol on 03.27.13 at 10:00 am

#36 Smoking Man on 03.26.13 at 9:21 pm
Number 1 son is getting married in June, that just the birth order, he wants to buy a house, wife just wants to hand him the loot, I can’t do that. He has access to a Heloc he’s doomed. He hustles best when his backs against the wall. Plus don’t know if it’s going to last, stats and all.
So what must I get from the force to assist in imploding this crazy market. To give them a fleeting chance.
Sadly even I can even walk on water…..
The herd, is out of control….

Smoking Man do not join the Herd and become an enabler so many of our generation (boomers) have helped to enable easy goings for our children only to see it all crash. You have to go through the walk of life to appreciate what you have and to work for what you want to attain! If you just loan cash for a home you will never see it again and the child will not work hard to repay it but most likely spend the money on instant gratification toys, vacations, etc, that should have gone towards the home.

Are You an Enabling Parent?
Here are a few questions that might help you determine if you are an enabling parent.
1. Have you loaned him money repeatedly, seldom (if ever) being repaid?
2. Have you paid for education and/or job training in more than one field?
3. Have you finished a job or project that he failed to complete himself because it was easier than arguing with him?
4. Have you paid bills he was supposed to have paid himself?
5. Have you accepted part of the blame for his addictions or behavior?
6. Have you avoided talking about negative issues because you feared his response?
7. Have you bailed him out of jail or paid for his legal fees?
8. Have you given him “one more chance” and then another and another?
9. Have you ever returned home at lunchtime (or called) and found him still in bed sleeping?
10. Have you wondered how he gets money to buy cigarettes, video games, new clothes, and such but can’t afford to pay his own bills?
11. Have you ever “called in sick” for your child, lying about his symptoms to his boss?
12. Have you threatened to throw him out and didn’t?
13. Have you begun to feel that you’ve reached the end of your rope?
14. Have you begun to hate both your child and yourself for the state in which you live?

P.S. Smoking Man Are you the chosen one? Mark tells us that when the disciples saw Jesus walking on the lake, they thought He was a ghost. Are you a ghost? Truly you are the Son of God! No perhaps you are a fisher of men, no I stand corrected you are a fisher of sheeple! Either way please don’t mess around with Pilot this weekend!

#116 Southern Ontario on 03.27.13 at 10:01 am

I used to work with a fellow of about forty who had just relocated to the city we were in. I remember he confessed to me that he had a twenty-five year amortization because he couldn’t have afforded the payments otherwise (though he had owned before, and presumably had some equity). To look on the brighter side, though, he said that at least it wasn’t thirty or thirty-five years.

Anyway, I laughed when I read this post because, at one point, he was taking the daughters to disney world, and casually mentioned that he was skipping a payment the month he was doing it. I said “so much for that 25 year am,” and he had no idea what I was talking about, that the skipped payment would be recapitalized and result in a larger payment in the future or a longer amortization. I think he really did think the bank was just doing something nice.

#117 Goldfinger on 03.27.13 at 10:03 am

Rogers going into real estate to copy U.S. style info systems…. good bye realtors in Canada! Your ridiculous commissions just got the axe!

http://www.remonline.com/?p=15321

#118 Ronaldo on 03.27.13 at 10:03 am

#20 Denise – here’s one for you. Looks like the reno has already been done on it.

http://www.homefinder.ca/listings/744019-112-hiawatha-rd-toronto-ontario-e2584491

#119 Rikky R. on 03.27.13 at 10:07 am

“Stocks surge to a record high, gold falls. So much for Cyprus. Now let’s get back to house horny.”………..

Stock markets topping……..precious metals bottoming. Time to rebalance…

Love guys like you on the other side of the trade. — Garth

#120 FML I AM A SKRenter on 03.27.13 at 10:11 am

Garth,

You said “Regina is so overrated.”

Let me tell you something – where else in Canada are you going to have an endless, free supply of water from record snow levels that, in my opinion, are going to be here until August? Where else in canada do you not need a refridgerator nine months of the year (its colder in Regina than Yellowknife today)? Where else in Canada is a canoe about to be your best friend (minus the pig of course)? And finally, where else can you live in Canada that when you meet someone in a foreign country and tell them where you are from, each and everytime, you get regailed with a joke rhyming your city’s name with female anatomy?

So Mr. Turner, please check your facts before posting tripe.

#121 jess on 03.27.13 at 10:12 am

Make me wonder why congress changed the bankruptcy act?

4. Bankruptcy Abuse Prevention and Consumer Protection Act of 2005,
Public Law No. 109-8, 119 Stat. 23 (2005).

http://www.pnhp.org/new_bankruptcy_study/Bankruptcy-2009.pdf
62.1% of all bankruptcies have a medical cause.
● Most medical debtors were well educated
and middle class; three quarters had health insurance.
● The share of bankruptcies attributable to medical problems rose by 50% between
2001 and 2007

RESULTS: Using a conservative definition, 62.1% of all bankruptcies in 2007 were medical; 92% of these debtors had medical debts over $5000, or 10% of pretax family income. The rest met criteria for medical bankruptcy because they had lost significant income due to illness or mortgaged a home to pay medical bills. Most medical debtors were well educated, owned homes, and had middle-class occupations. Three
quarters had health insurance. Using identical definitions in 2001 and 2007, the share of bankruptcies attributable to medical problems rose by 49.6%. In logistic regression analysis controlling for demographic factors,odds that a bankruptcy had a medical cause was 2.38-fold higher in 2007 than in 2001.
CONCLUSIONS: Illness and medical bills contribute to a large and increasing share of US bankruptcies.

…and 10k to have a baby
http://truth-out.org/news/item/15342-strike-debt-kicks-off-second-debt-buy-up-with-march-for-universal-healthcare

#122 Humble on 03.27.13 at 10:23 am

A interesting article from the huffington post.

http://www.huffingtonpost.ca/2013/03/22/vancouver-housing-vacancies-investor_n_2929745.html?utm_hp_ref=canada-business&ir=Canada%20Business

I had a look at the comments section of the article and the imbedded link for a metro article. People were talking about putting restrictions in Vancouver on foreign money or taxing investor property at higher rates. Because it was making things too expensive for Canadian buyers. The rebuttal was it racist because it would impact the Chinese. And if things are too expensive you should build more.

Maybe 5 or 6 years ago you could have restricted foreign money or raised taxes. Would that have stopped the bubble in its tracks. Who knows. But political intervention in a booming asset class is highly unlikely. Look at the US people had ethical questions, they raised questions based economic fundamentals, but nobody cared. People were making money hand over fist. RE representatives got fees, bankers got fees, cities got more taxes, home owners get equity, plus a general wealth effect was in effect. What politicians are going to stand against this?

Now in Canada we have heard from Flaherty and Carney that maybe there is too much stimulus in the housing sector. A good point to raise but its late 5 or 6 years. That said I do have some sympathy for political class. Who is going to spike a growing sector in the midst a giant economic crisis? Personally if the government tried stopping the housing sector during the crisis i would been very critical.

In some earlier posts people had said that this blog has been calling on a crash 4 o 3 years now. I am new here so I can not confirm the idea about how long predictions of a crash have been going on. But its clear that 3 or 4 years ago you could still have made money in the housing sector.

But here is a new twist on things. I remember reading a book in 2002 that predicted the crash in the US housing market. The author laid out the idea that the fundamentals were all bad. But then he addressed the idea of when it will happen. Basically he said he did not have a clear idea when it will happen but rather it will happen. The author pointed out many brilliant calls in the markets have come true in the end. But added in a humorous comment that no matter how brilliant the call is, it does you no good if the banks start making margin calls before the prediction calls true.

This blog basically says that the housing market has turned and time to get out. After looking into the fundamentals I would agree. Personally I have big reservations about selling your home and putting the money into financial assets. I consider putting everything into financials wildly bullish.

But I hope before you make a major financial decision don’t bet everything on the advice of one website. Do your own research, maybe consult an expert but keep in mind they could have a bias.

Cheers people

#123 Shawn Allen on 03.27.13 at 10:25 am

TIME IN THE MARKETS… OR TIMING THE MARKETS

Neo at 73 said:

We are close to the S&P 500 all-time high of 1,565 since we are at 1,563. All these numbers don’t matter anyway.

*****************************************

History shows you will do great if you get in the S&P 500 when it is reasonably valued and stay in forever. Just avoid buying at real bubbles.

Buffett’s favor holding time; forever. Who you gonna listen to?

#124 jess on 03.27.13 at 10:29 am

gamers learning tool

Taxodus – online tax dodging game
Based on existing data such as tax treaties and tax regimes between countries is a strategic landscape design. Players choose a multinational company or bank on whose behalf they attempt to evade the most tax. By using letterbox companies worldwide to set up business with banks as well as lobbying local politicians, the player lays bare the potential to escape financial regulation. The game is free to play, but at the end of every game played, the tax route taken using Taxodus is uploaded (anonymously) to the database. Firstly it acts as a database of the highest score which player has evaded taxes….

#125 Shawn Allen on 03.27.13 at 10:32 am

NO ONE HAS MADE ANY MONEY IN STOCKS SINCE 2000…

Is a baseless rumor that ignores dividends and ignores that people buy stocks over time.

Many of us have made a great deal of money in S&P 500 stocks and Canadian large caps.

Buffett has made many billions since 2000. Who you gonna listen to? The likes of zerohedge or Buffett? Good luck doomers, you will need it.

P.S. I own Berkshire shares. Berkshire is up one million percent since Buffett took over in 1965 (I did not buy in 1965,). Buffett paid average of $15. Now at $155,000. That is over one million percent.

#126 jess on 03.27.13 at 10:33 am

imagine if some of your bonus points (money ) for working temporary jobs is embedded in a walmart gift card?

HMRC to tax fund ‘cashback’ from next week

Telegraph.co.uk ‎- 1 day ago
The taxman is to tax bonuses paid on funds with the industry warning that it sets a precedent for supermarket and credit card cashback

#127 Daisy Mae on 03.27.13 at 10:36 am

“The bottom line: the bank has found a way to reduce annual mortgage payments by about 8%, which effectively reinstates (during a five-year term) the 30-year amortization which F made illegal last July. Maybe he should kick a few groins over there.”

*********************

Since he initially made it all possible by tampering with amortizations, who is going to kick his?

#128 M I K E on 03.27.13 at 10:42 am

Here’s an interesting status by a RE agent on fb.
it’s not backed up by any data but rather amusing

“For those who think real estate prices are going down, I will buy anyone’s home today at a 20% discount to fair market price closing in 2 or 3 years. Act fast, protect yourself. LOL.”

https://www.facebook.com/paul.etherington.9/posts/10151384054015662

#129 GregW, Oakville on 03.27.13 at 10:59 am

Hi #60 Nostradamus, FYI:
Total Health Show 13, April 5-7 in Toronto http://totalhealthshow.com/showInfo/index.cfm
(Dr. Hardy Limeback, PhD, DDS, – talks are informative,
on Sunday April 7, 4-6pm, probable time)
“Live long and prosper”

#130 jess on 03.27.13 at 11:11 am

smokingman

http://www.bea.gov/newsreleases/international/intinv/intinvnewsrelease.htm
FOR IMMEDIATE RELEASE AT 8:30 A.M. EDT, TUESDAY, MARCH 26, 2013BEA 13-11U.S. Net International Investment Position: End of the Fourth Quarter and Year 2012
The U.S. NET international investment position was -$4,416.2 billion (preliminary) at the end of 2012 compared with -$4,030.3 billion at the end of 2011.

$25.2 trillion in – $20.7 trillion invested outside = international investment position

#131 Tom Vu on 03.27.13 at 11:15 am

Smoking Old Man

Many salutations on your sons upcoming marriage, time to get out of basement suite after age 48.

Hope Rob Ford gives good dowry.

#132 gladiator on 03.27.13 at 11:22 am

People who say ‘bankster’ are almost as comedic as those who use ‘fiat.’ — Garth

In my CFA prep textbooks it is clearly stated that the “money” we use is fiat money.

Do you talk textbook? In real life it’s just called ‘money’.– Garth

#133 DeniseinBC on 03.27.13 at 11:31 am

Looks like #20 has taken my name “Denise” so guess I’ll modify mine. Didn’t think it could be done – thought it was matched to your email address. Live & learn.

#134 Ronaldo on 03.27.13 at 11:36 am

#20 Denise – by the way, how long you been with Royal LePage?

#135 Canuck Abroad on 03.27.13 at 11:36 am

Hey, if any of you are still worried since yesterday about where to keep your money, here is the solution. Goldbugs, you can keep your gold here too!!! Maybe a manufacturing idea for an enterprising Canuck if it can’t be imported?

http://www.ritholtz.com/blog/2013/03/safe-in-a-mattress-ultimate-european-safety-net/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+TheBigPicture+%28The+Big+Picture%29

#136 Suede on 03.27.13 at 11:38 am

BitCoin is useless, and will be useless except to the select few that own them and will trade amongst themselves. I would rather have a few Patrick Roy rookie cards to trade for other goods and services.

It is not, and will never be any form of currency. Cigarettes, Jugs of Fresh Water and Matches have a much better chance.

#137 Dona Collins on 03.27.13 at 11:41 am

Just curious – at the end you mentioned the “thousands asked” about whether or not they intend to buy a home. Were they all already homeowners (who would potentially move); or were some of them renters and those living with others? Curious as to how many non-homeowners are NOT considering buying these days.

#138 Canuck Abroad on 03.27.13 at 11:44 am

And be sure to watch the advertisement in the link. No spanish required to understand.

#139 thinker on 03.27.13 at 11:52 am

Day after day….but when are the red dots going to fill in when I do a search under 500k in Van or Toronto for something that doesn’t need TLC…

Simply, low rates, low sales, has NOT resulted in LOW PRICES….

This last step would only happen if the economy and jobs slowdown, don’t see any cracks in Canada jobs…

BIG IF here….what we are seeing is lower volumes but not lower prices. If you want to live in a place where you friends won’t laugh, you still need to pay. If you want a school, park, not jane and fine, you need to pay…

If you own in A location, with a B house, you can still get your price. If you bought a A house in B location, good luck…

#140 Bigrider on 03.27.13 at 11:53 am

Timea for alla de Italianos ina da realestata game to starta ‘leaning’ (if you know whatta I meana ..awinka winka) ona desa flaherty baccala for maka de mortgaga pushers no lower da interesa rates.

How you gonna fixa uppa all des olda houses and maka new ones, to profita moneta($) from alla des English people and everybody elsa who know nothing (capescia nienta) about da construction and dei buy anyway?

We needa more condos builda in toronto because nonno he need more triple mixa ( la merda) in de backayarda for the pomodoro. Nonna, she still maka homemade sauce you know .

I tell nonna, you have millions in da banka account maka 1% for dis purpose and you maka all from a da houses ,but he no listen.

#141 b3v on 03.27.13 at 12:15 pm

I’ve been reading your blog for a little while now, and was wondering when I would see tangible signs in Montreal.
Then it happened.
My bf and I are renting in a pricy area where we could not afford to buy. Thanks to rent regulation, we can do that and enjoy the area without drowning under a mortgage.
In the past month or so, we’ve sign MANY selling signs, and they just…don’t move. We’ve also received all sorts of weird offers in the mail from the new condo developments: bring this coupon to our office and you get $1000 off purchase! We’ll pay for your appliances! Woop woop!
It’s crazy!
And now, just this morning, I saw 2 listings for 1200-1300 sq ft heritage/renovated condos in desirable areas. Mind you, these would “usually” go for 350K at least, and are now listed… 299K.

#142 Rikky R. on 03.27.13 at 12:21 pm

“Stocks surge to a record high, gold falls. So much for Cyprus. Now let’s get back to house horny.”………..

Stock markets topping……..precious metals bottoming. Time to rebalance…

Love guys like you on the other side of the trade. — Garth
…………………………………………………………………….

That’s what makes the world interesting….

#143 TurnerNation on 03.27.13 at 12:59 pm

Re. tax evasion.

I believe the bible warns: Fudge not, lest ye be fudged.

#144 jess on 03.27.13 at 1:25 pm

Table 2-io: Inward and Outward Direct Investment Positions (Total) by Year
Reporting Economy: Canada
US Dollars, Millions

compare the in with the out

Barbados inward
2009 – 696
2010- 815
2011- 871

outward ?
2009- 50,844
2010- 49,310
2011- 52,201

http://www.imf.org/external/np/sta/cdis/index.htm

lagging
http://barbadosfreepress.wordpress.com/2012/11/28/canadian-parliament-to-re-examine-barbados-tax-haven/
Tax Havens: Canadian Banks Shuffling Ever-Larger Amounts Into
Aug 17, 2012 – Barbados Tax Haven …
http://www.progressive-economics.ca/2012/08/16/canadian-banks-use-of-tax-havens-keeps-growing/
http://elibrary-data.imf.org/Report.aspx?Report=11666796&Country=156

=========
lookback
Quebec economists Leo-Paul Lauzon and Marc Hasbani examined the annual reports of Canada’s big five banks a few years ago and calculated that they were able to avoid $2.4 billion in Canadian taxes in 2007 through their investments in these “Fiscal Paradises” and almost $16 billion over the 15 years from 1993-2007.

#145 Grim Reaper/Crypt Speculator Ⓤ on 03.27.13 at 1:31 pm

#139 Bigrider on 03.27.13 at 11:53 am

===

I agreea….thosa gold chain Guidos with no necks keepa mea busy. Pain minda you not gathering my clients befora the cement sets, but hey , thats the way the meataballsa roll.

#146 gladiator on 03.27.13 at 1:31 pm

I just meant that ‘fiat’ is a legit term.

In a couple of years, ‘bankster’ will become legit too, when more people wake up and ask that the government issue its own money and not borrow it with interest from a “central” bank.

#147 Tkid on 03.27.13 at 2:25 pm

#135 Suede, I wouldn’t buy Bitcoins, but I would mine for Bitcoins and then trade ‘em for bits of silver and gold:

Coinabul.com

Casacius.com looks interesting

Google bitcoin and silver for more sites. I have never tried bitcoin so I cannot recommend anything, but I certainly intend to start.

#148 Rob Smith on 03.27.13 at 2:33 pm

#36 Smoking Man on 03.26.13 at 9:21 pm

Number 1 son is getting married in June, that just the birth order, he wants to buy a house

———————————-

you must be licking your chops at the potential commission, poor son, having a used car salesman for a dad.

#149 Toronto_CA on 03.27.13 at 2:43 pm

Look at this piece of drivel in the Financial Post:

http://business.financialpost.com/2013/03/27/canada-housing-retirement/?__lsa=975d-fe17

It is basically telling boomers to go ahead and re-mortgage their houses and take out LOCs to make ends meet.

Here’s the kicker to doing this:

“It’s also quite sustainable, since your home will often appreciate in value more than the amount of debt being drawn down against it.”

Until it depreciates in value and interest rates rise to normal levels. Gah. The media makes me cringe.

#150 calgary rip off on 03.27.13 at 2:54 pm

DELETED

#151 EB on 03.27.13 at 3:06 pm

147 – Tkid: I actually ran the math on bitcoin mining about a year ago, and it wasn’t exactly free money – you need to invest upfront in some pretty powerful GPUs, and once you factor in the power consumption (at $x/kWh) the breakeven on the equipment investment alone took several months. The numbers might have changed quite a bit since the recent price runup, but of course investing in it now means betting that it’s a stable price at the new level. I’m quite skeptical on that front.

#152 Dr. Hoof - Hearted on 03.27.13 at 3:08 pm

Richmond’s destination museum dream floated again

Study insists city ‘needs’ $59 million venue

http://www.richmond-news.com/news/Richmond+destination+museum+dream+floated+again/8154103/story.html

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

Another scary threat in HAMville

QUOTE:
Hot on the heels of the proposed $5 million Olympic museum, city staff are backing a consultant’s recommendation to push ahead with an attraction that will, apparently, pull in thousands of visitors from across the Lower Mainland.

A report due to be presented to a city council committee Tuesday claimed the museum was a “necessary component of a balanced and healthy community,” and that the “city needs a new museum of the highest quality.”

The report is an update of a 2009 destination museum vision — at that time costing $45 million — and recommends building a 75,000 square feet facility on the middle arm of the Fraser River near a Canada Line station.

Rough estimates indicate that such a venue would potentially “break even” financially by its fifth year.

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

It was pointed out 4 years ago that BC #1 (Royal) Museum in Victoria still needs a provincial subsidy or would lose money.

IMHO, City Staff figures they can pull a fast one on Council, and add another white elephant to the City Taxload.

More a sign of Local Gov’t out of control.

#153 Men Who Stare At Sheeple on 03.27.13 at 3:09 pm

In reponse to “#158 Holy Crap Wheres The Tylenol” from yesterday’s post. You stated the following:

“well my friend you may think you are right, however after working in the Middle East, Africa, the Philippines and Malaysia for the last twenty years I can tell you there is an intrinsic agenda on their mind. The spread of this agenda would shock most of you who have never been to this part of the world. These proponents of the agenda want nothing more than for the western world to cease to exist.”

Did you ever stop and think why they feel that way? Could US military aggression worldwide have anything to do with this? There are currently over 900 US military bases worldwide protecting the interests of Wall St. and the international banking cartel.

In truth the US military is nothing more than Wall St. and the international banking cartels military muscle! Submit or be carpet bombed!

How do you explain to a mother or father in Iraq, Libya, Afganistan etc. who’s children have just been killed by an American airstrike on their home that it was all done in the name of freedom and democracy?

You see my friend there are reasons why people have hate and anger in their hearts towards America and the west.

It’s good to see that you made it out alive after spending 20 years in that hateful part of the world. I think I’ll go for that drink now!

#154 Bottoms_Up on 03.27.13 at 3:24 pm

#125 Shawn Allen on 03.27.13 at 10:32 am
———————————————
by my calculations it’s actually slightly less than 1 million percent, and that isn’t inflation adjusted.

#155 Sebee on 03.27.13 at 4:02 pm

Canadian Watchdog, The only thing I got out of that chart is that RE always goes up!

Did I miss something?

#156 Holy Crap Wheres The Tylenol on 03.27.13 at 4:03 pm

By the way, the survey also showed half the people in BC think it’s turned into a market for buyers. The fact they aren’t should keep you up tonight.

If the above doesn’t keep you up at night them this will!
Here we go again with Kim Jong-un or is it Kim Kardashian as the supreme leader of North Korea.
http://www.nbcnews.com/id/21134540/vp=51349018&#51340469

#157 rosie "moving backwards" on 03.27.13 at 4:32 pm

This would certainly help give these homes that lived in look. Could help for resale, lights on, people walking around. A win win if I ever saw one. The photos of Van don’t do it justice. http://www.huffingtonpost.ca/2013/03/27/squat-the-empties-tweet-vancouver-condos_n_2960516.html#slide=1920481

#158 jess on 03.27.13 at 4:32 pm

your advisor is an algo
https://www.betterment.com/

How the internet is making us poor
By Christopher Mims — March 27, 2013
http://qz.com/67323/how-the-internet-made-us-poor/

“Skill-biased technical change”
“routine cognitive workers”

#159 Barry Lainof on 03.27.13 at 4:35 pm

Stocks have doubled in four years, plus dividends. Do that math. — Garth

Go back to when you started your blog (early 2008 ?) and tell us what $300,000 in S&P 500 ETF, $300,000 in real estate (own home), $150,000 in Bond ETF and $150,000 in gold (a nice balanced portfolio) would be now. What we’re the best performers? Do that math ! Why don’t you quit cherry picking your time frames that you use to justify your positions on financial planning.

BTW, I thought you didn’t recommend stocks – only ETFs : ) we all know these equities are based on stocks or derive their value from the stock price.

And another person who never heard of rebalancing. Amazing how many buy-and-hold dinos there are still in existence. — Garth

#160 The Prophet Elijah on 03.27.13 at 4:49 pm

#10 Fisher on 03.26.13 at 7:42 pm
Unfortunately you have been saying this for years. The feds have demonstrated they will not alloy a price correction because it will hit revenues too hard. They must meet a balanced budget even if it means selling your kids future. I can see a slight correction but if this get at all bad it is in their interest to subsidized the industry more. They will never get re-elected if they are seen to allow a housing crash. I rent but not because I am scared of the market. I enjoy having money to spend and free time to spend it.
———————————————————
Controlling the housing market is what they thought in the US. And that didn’t “end well” – nobody is said it for awhile.
Fed chairman said there was no bubble, when it burst they said they will be able to contain it. Moral of the story is you can’t out do the natural laws of economics.
They also said it won’t happen cause there are no job losses, then it followed. Nuff said…for now.

#161 The Prophet Elijah on 03.27.13 at 4:53 pm

#80 Tony on 03.26.13 at 11:27 pm
Re: #49 Observer on 03.26.13 at 9:59 pm

As you can see the Japanese don’t buy “dead cat bounces” like Americans are doing now in real estate.
.——————————————————–
They know full well they are buying a dead cat bounce, but nothing wrong with making a quick 15%, just don’t be the last man out.

#162 The Prophet Elijah on 03.27.13 at 4:55 pm

#49 salonist on 03.26.13 at 9:58 pm
China and Brazil sign $30bn currency swap agreement

http://www.bbc.co.uk/news/business-21949615
.———————————————————
How come they don’t want to us the USD?

#163 Devore on 03.27.13 at 5:19 pm

#128 M I K E

What an idiot. I’d rather sell my house today, without a 20% discount. What kind of a dumb deal is that? Probably caters right to his target audience with the “lol” at the end. Because that’s what I expect from a professional dealing in million dollar properties, to sprinkle “lol” into his correspondence.

#164 Stickler on 03.27.13 at 5:35 pm

“Stocks have doubled in four years, plus dividends. Do that math. — Garth”

…and in 5 years you are even. If we had this same conversation in 2012 the Dow investor would still be down. Timing is everything.

“Did you know that disco record sales were up 400% in 1976? If these trends continue…Aayyyyy”

-Disco Stu

Another person who never heard of rebalancing. — Garth

#165 Van guy on 03.27.13 at 5:40 pm

Garth,

We now have a trustworthy realtor. He even uses the word “delusional”!!! Haha

http://www.shuchatgroup.com/Blog.php/richmond-real-estate-market-report-2

#166 NoName on 03.27.13 at 5:53 pm

#149 Toronto_CA on 03.27.13 at 2:43 pm

Strategic bankruptcy written all over article… got to love it!

#167 Tom Vu on 03.27.13 at 6:20 pm

#59 Old Man on 03.26.13 at 10:30 pm

The reason for such is the driving force in a marriage is the binding of common interests that fuels the love for each other, so Tom Vu go and eat cake as my IQ was tested at 140 years ago.
==================================

Tested IQ 140 years ago?

(3) questions:

(i) What is diet…much prunes ? you very healthy.

(ii) What was test used 140 years ago ? Urine test not count.

(iii) Need to add decimal point…maybe between 1 and 4

#168 Richard and Zeus on 03.27.13 at 6:39 pm

Garth…..have you ever considered the fact that with the many posters on here spouting “so called conspiracies” that maybe some is right its you pushing the conspiracy of “clean govt” and “clean banks” (like HSBC and their murderous ways) and “clean corporations”?

Did you consider that with “tens of millions” of us reading “thousands and thousands” of documents with “FACTS” that maybe……JUST maybe….some are true?

And have you considered that you worked for govt….currently help to sell “bank and corporate” investments as a living…….so that maybe you are the one who is wrong from time to time by telling all of us how clean and wholesome corporations, banks and govts are?

I mean…..you push banks. Now lets use HSBC as an example……..does anyone REALLY BELIEVE that NO ONE in ANY GOVT ANYWHERE on the PLANET EARTH knew that HSBC was laundering money for Mexican Drug Cartels to the tune of hundreds of billions of dollars resulting in tens of thousands of men, women and children slaughtered.

No one can even agree where money comes from. That’s messed up in itself. Money comes from banks….I mean govt…..I mean the BOC…which is a bank…..but it borrows so we as taxpayers pay interest on the borrowing but wait the BOC makes money so how can we pay interest on money the Canadian owned BOC makes? And on and on and on…..

Surely…….we cannot all be wrong…….if you have a mess like….”where does money come from” not easily explainable to the average doughnut eater.

All empires and evil doers in power ultimately fail. It happened to Greece, Rome, Persia…..and now it’s going to happen globally. The only question is….how “civilized” will the fall be……

Yes, I considered things. And I’m more right than you. — Garth

#169 Smoking Man's Old Man on 03.27.13 at 6:46 pm

# 157 Tom Vu

I probably shouldn’t encourage you, but I find your posts quite amusing. :)

#170 NoName on 03.27.13 at 6:51 pm

Come to my inbox today 5yr fixed 2 3/4… i consider kanetix legit, their web service it did helped me find cheapest car insurance few yrs back.

http://i50.tinypic.com/nb1o4.jpg

#171 popados on 03.27.13 at 7:20 pm

need more people talking about real estate in their hood.look down your streets and report to garth,so we can have a better idea of whats happening.

#172 Who Cares on 03.27.13 at 7:21 pm

I agree all of this fiat talk is nonsense. Better to buy a Kia than any Fiat.

#173 AK on 03.27.13 at 7:26 pm

#159 Barry Lainof on 03.27.13 at 4:35 pm
“Go back to when you started your blog (early 2008 ?) and tell us what $300,000 in S&P 500 ETF, $300,000 in real estate (own home), $150,000 in Bond ETF and $150,000 in gold (a nice balanced portfolio) would be now. What we’re the best performers? Do that math ! Why don’t you quit cherry picking your time frames that you use to justify your positions on financial planning.

BTW, I thought you didn’t recommend stocks – only ETFs : ) we all know these equities are based on stocks or derive their value from the stock price.”
——————————————————————-
Man, you are really giving us stock investors a bad rap.

Learn how to invest before you come on a public blog and write uselles bullshit.

#174 Dr. Hoof - Hearted on 03.27.13 at 7:29 pm

#157 rosie “moving backwards” on 03.27.13 at 4:32 pm

Yes, I think a lot of people are waking up…and its not just homeless people…There is a huge displacement that is affecting the majority who are waking up with a big hangover.

Its always ” cui bono “.

As I stated before, the Gov’ts are addicted to this Paper mache’ Golden Goose.

#175 TurnerNation on 03.27.13 at 7:42 pm

3mill for a Beaches house? That’s Forest Hill pricing. And no Subarus cluttering up the streets there.

http://www.torontolife.com/daily/informer/toronto-real-estate/2013/03/27/house-of-the-week-40-beaufort-road/

#176 salonist on 03.27.13 at 7:57 pm

tv,
boo.
last post, i’m outa here.

#177 Alyce in Wonderland on 03.27.13 at 8:08 pm

house is a liability

dividend paying stocks – investment.

#178 DormitoryDiarrhea on 03.27.13 at 8:15 pm

From http://business.financialpost.com/2013/03/27/canada-housing-retirement/?__lsa=19a8-d235 :

“Liu warns homeowners to proceed with caution. “The worst thing to do is mortgage your property and put that money into some risky investment. You could end up losing everything.””

#179 Barry Lainof on 03.28.13 at 12:16 am

And another person who never heard of rebalancing. Amazing how many buy-and-hold dinos there are still in existence. — Garth

Another dodge of the point of the post, keep cheerleading Mr. Turner. Time to get back into politics.

Investing without rebalancing is gambling. Buying a security or an asset and holding it forever, hoping it will augment, has nothing to do with building wealth. Learn a little, and drop the slur. You might have a chance. — Garth

#180 What about CMHC? on 03.28.13 at 2:27 pm

Where is CMHC in all this mess?