Fatal attraction

killed to death

My perception is this blog has changed over the past year. It’s darker.

I’m the same ebullient, charismatic, confident guy, of course, with great abs, nice hair and a balanced portfolio. But I’m worried about you. Increasingly, people are anti-markets. Anti-bank. Anti-government and politicians. Anti-corporations, anti-wealthy. Anti-America. Anti-public worker. Mistrustful, suspicious, wary and aloof. The way so many folks here believed Canada was preparing laws to steal bank deposits, like in Cyprus, was ample evidence. That takes a helluva us-and-them mentality, and a belief the social contract’s been shattered.

But it hasn’t been. Compared to past decades and generations, we‘re more coddled and swathed in protective regulation than ever.

What has changed is the distribution of wealth and the destruction of the middle class. The GFC moved all that ahead dramatically. In the US, real estate was hollowed out, taking $6 trillion in equity out of the hides of Mr & Mrs Front Porch. Everywhere corporations have pursued productivity and profits at the expense of jobs. So now we have over 7% structurally unemployed in Canada and the US and yet record earnings and soaring stock markets.

The clerical class, for example, is gone. Nobody needs librarians, editors, secretaries, reporters or receptionists any more. Corporate pensions are disappearing. Seven in ten don’t have any. The few plans remaining are being turned from safe defined benefit to uncertain defined contribution. Interest rates have collapsed, so savings pay squat. Now houses are starting to wobble in Canada.

That seems so unfair, after cheap rates, easy loans and lax standards encouraged everyone to buy real estate. Now the mortgage is large and the future uncertain. Meanwhile wealth is concentrating at the top while the debts pile up at the bottom. The top 1% of Canadians have 35% of the wealth, while the average family has debts equal to 165% of income. There are almost 200,000 millionaires in Canada out of 13,400,000 households. Both wealth and poverty are rising.

Obviously buying a house, paying it off, having kids and saving a little in a GIC is no longer a recipe for financial freedom. In fact, many people owning houses may never be debt-free, especially since interest rates must rise and real estate fall. To be financially secure in a changed world, Canadians have to rethink home ownership, learn to invest, fear debt and embrace more risk.

Or, you blame the Man. The banks. Government. Markets. HAM.

Sound familiar?

360 comments ↓

#1 Pat on 04.07.13 at 5:54 pm

Yes true

#2 This is wonderland on 04.07.13 at 5:56 pm

Garth, are you mad at us?

:(

The opposite. I am trying to help. — Garth

#3 Mocha on 04.07.13 at 5:58 pm

Sure it’s a little darker, but the Internet itself is also becomming darker. There are many more trolls now and negativity is becomming part of online culture. Sad , eh?

#4 Godth on 04.07.13 at 6:03 pm

For someone so in tune with real estate it’s amazing to watch you play three monkeys with the corruption and collusion in the gov’t/banking $***storm. Profits before all else I suppose. Regulations are meaningless if there not upheld. While you’re enjoying playing with your digits and hoarding symbols on your screen, well, you’ll figure it out…something about no man being an island…
http://www.youtube.com/watch?v=QPKKQnijnsM&list=FLg2B7yMPoMHNYc2uhwnArfA

Right on cue. — Garth

#5 Gord In Vancouver on 04.07.13 at 6:03 pm

To be financially secure in a changed world, Canadians have to rethink home ownership, learn to invest, fear debt and embrace more risk.

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

Vancouver will be a very interesting place once this advice becomes compulsory – in this city, risk only exists in mortgages and debt is worshiped.

#6 Mocha on 04.07.13 at 6:04 pm

In regards to blaming the banks, they do deserve some of the blame. Just not all of it.

RBC will have their hands full over the next few days dealing with public anger over their foreign worker scandal.

#7 Serg on 04.07.13 at 6:08 pm

Thanks for all your awesome advice, thanks to you I save 20% of my income every week into a tfsa, where I invest it in cool dividend paying and equity growth etfs.
Thanks again for showing me the contrarian way.

#8 Mocha on 04.07.13 at 6:09 pm

One further thing: people who are happy and satisfied tend not to feel the need to post as often as the angry or frustrated people. They also tend not to read blogs like this one. They are all over at Gwynith Paltrow’s cooking site.

#9 Chasicakes on 04.07.13 at 6:10 pm

I work for a company who recently offshored their IT, benefits and HR. My admin time has increased tenfold while I am sent from country to country waiting for answers that could usually be handled in minutes. This offshoring model essentially transferring cost to the business unit and is actually costinga lot more than it saves.

#10 Julia on 04.07.13 at 6:11 pm

The internet has given the average person an outlet for frustration and anger. Finally someone cares what we think. Maybe once we get it all out of our systems we’ll get off our collective butts and actually do something about it — once we figure out what that is exactly, and hopefully before we all alienate each other with our petty prejudices and unsophisticated pseudo analyses of blame.

#11 Smoking Man on 04.07.13 at 6:13 pm

#274 Blasé on 04.07.13 at 6:04 pm

smoking man, if you truly spent time overseas you would know what racism really is. this is not racism, this is self-preservation, pure and simple. allow Canada to be auctioned off to the lowest bidder? Mexico has a lower avg wage than china does. free trade had really worked out well eh? clue in man. we have a birthright, whether you want to give it away for the benefit of corporate profits.

…….

Your wrong, yes the slave in India, China, Mexico will be paid nothing, but the quality is shit,, their are many middle men between the code smith, and the client…..

If this was such a great idea why are 1000 of USA company’s bringing It back…

To many middle men, bad communication, milker shops. And profiteering smoking men in the middle.

I’m in the business and I’m not afraid.. Bring it on….

#12 In the cold from Toronto on 04.07.13 at 6:15 pm

I disagree with you about the social contract still being there. I get the feeling that we are in a world where the rich don’t care for the rest. I call this the new feudal society.

We have Internet and democracy, but we also have lords which control us through emoyment, lack of opportunity, financial manipulations (what else would you call the dissappearance of pensions, the ever increasing cost of getting a good education, the volatility of the market, the explosions of exotic financial instruments?), and the like.

When my CEO makes more in a day than I make in a year (and I have a solid postgrad eduction), one of two its true:

1/ we have no social contract
2/ Smoking man is right.

… And if Smoking man is right than I’m not so sure I want to live in this country anymore. And you shouldn’t be surprised the comments to your blog are getting darker… People are scared and tired.

We need new leadership. I am tired of hearing news that tell us the future is bleak… The future could be awesome if the lords were to pay their fair share.

#13 AK on 04.07.13 at 6:15 pm

#6 Mocha on 04.07.13 at 6:04 pm
“In regards to blaming the banks, they do deserve some of the blame. Just not all of it.

RBC will have their hands full over the next few days dealing with public anger over their foreign worker scandal.”
——————————————————————–
This is nothing new. Companies pull this stunt on a daily basis.

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

#14 Shawn on 04.07.13 at 6:15 pm

Aspire to be a Millionaire…

If 200,000 out of 13,400,000 households are millionaires, that is 1.5% or one household in 67.

Why not aspire to be one of them? It’s not that difficult to have at least $1 million in net worth by retirement age.

#15 City that smells like it sounds on 04.07.13 at 6:19 pm

10th place is not as good as furst. :(

In other news, Regina prices will continue to rise for the next few years at least.

#16 Halifax Observer on 04.07.13 at 6:20 pm

Here is a blog that provides the market report for Halifax. All is not well on the East coast.

http://www.halifaxrealestateblog.net/

The statistics for March are particularly awful:

http://www.halifaxrealestateblog.net/2/post/2013/04/the-halifax-real-estate-blog-monthly-statistics-wrap-up-and-market-report-for-march-2013.html

Sales down 34% from last March.

#17 Shawn on 04.07.13 at 6:23 pm

Distribution of Wealth versus Distribution of the Spoils of the Economy.

Many wealthy people accumulate wealth but spend little of it. Buffett describes wealth as possessing “claim checks” that can be cashed in exchange for goods and services at any time.

Buffett is not against people accumulating wealth. But he does think taxes on the rich should be higher. Also Buffett felt that when wealthy people spent money wastefully, that was a sort of economic crime. He did not like to see a wealthy person have a huge expensive house built because that effectively took workers and materials away from others and tied them up building a house that was larger and took more labor and materials than reasonably necessary.

#18 Good Authority on 04.07.13 at 6:26 pm

“To be financially secure in a changed world, Canadians have to rethink home ownership, learn to invest, fear debt and embrace more risk.” – Garth
———————————————-
For many, the home ownership matter is now settled.
Debt to the eyeballs for their best years.

Invest – embrace risk >> yeh, right and re-live 2008 all over again so they can take the last few bucks you might still have squirreled away.

Last I checked, still no banksters charged for the biggest heist in history.>>>sorry, that might be too negative on a Sunday afternoon. (truth is truth though)

#19 In the cold from Toronto on 04.07.13 at 6:27 pm

We need to tax wealth, not just income. Does anybody think that Paris Hilton deserves all of her granpa’s money?

#20 Toromierda on 04.07.13 at 6:28 pm

Garth,

You’ve mentioned a couple times of an upcoming market correction, most recently on your April 2 post. Care to elaborate on this?

I don’t feel like loading into a market just before everyone else decides to ‘Sell in May and walk away’ to spend the summer in their mansions by the sea while the rest of us suckers get hit with a 20% loss.

I highly doubt a correction of that size. — Garth

#21 Smoking Man on 04.07.13 at 6:29 pm

Bales, you got know something about code smithing, some best in the world work here. I’m amazing yet at the tax farm I have others that leave me in the dust…there not from bangore,they grew up here….

As an example this app http://www.keysme.org a text scatter tool , was built in 6 hours on a drunken Sunday afternoon. The goal when my kids where talking about weekend conquest on Facebook did not want my little nices and nefews reading it….

Good luck Bangor ,china Mexico have that level of productivity…

So I can’t big deal,I don’t make a living spelling..

#22 TK on 04.07.13 at 6:31 pm

I think the problem runs deeper than wealth distribution.
People do not trust their elected officials to represent their interest any more. Common perception is that politicians are serving big business, not average Citizen.

#23 Scott in Gibsons on 04.07.13 at 6:37 pm

I’m anti-crime. Why does HSBC get a slap on the wrist when they are caught laundering trillions for drug cartels and terrorists? When they were caught, why didn’t this expose their counter-parties, and cause them to be procesuted? The corruption is so bald-faced it insults us and darkens our spirit. Sorry Garth but the state of the world sucks more every day.

#24 Chickenlittle on 04.07.13 at 6:39 pm

The banks and gov’t have to share the blame, yes, but I think home owners do too.

People get greedy and fail to look at the big picture, and that is the actual cost of the home.

Garth’s post “Royal Jelly” really puts the true cost of home ownership in perspective, and to be honest the numbers scared me! They should scare more people than they do, but I think this is where the banks smooth things over and tell people that “They’re richer than they think.”

People need to sit down and take some time to calculate their costs before they jump in to such huge commitments. A “low interest rate” does not mean that the house is a bargain at $750,000.

That number makes me ill just writing it. I am in no rush to buy anything.

#25 T.O. Bubble Boy on 04.07.13 at 6:40 pm

Only 200,000 millionaires in Canada? Does that include or exclude primary residence? There are probably 20,000 millionaires who visit this blog if everyone’s $1M GTA or Vancouver house is factored in.

#26 Shawn on 04.07.13 at 6:42 pm

Darkness Falls Over a Blog

I had been thinking exactly the same thing yesterday. It seems like over time the visitors to this blog have passed through a type of screen. What has remained as the more active posters has been mostly (but not entirely) doomers and (frankly) whiners. It is scary to think that those who post here may represent a representative cross section of society. I hope not.

#27 R. Olausen on 04.07.13 at 6:43 pm

You be with the old Romans ala the great Cato. The new Romans (Caligula) are out scarfing spegetti before a long night of betting down at the local casino. I was a new Roman who survived the iniquity, finally gambled on housing and won enough to see the rectitude of Cato is preferable. Hail Cato.

#28 Prof ANON on 04.07.13 at 6:46 pm

Not all defined benefit plans are a good thing. If the plan is underfunded, than the youngsters are on the hook for benefit shortfall. The return on contribution can be shockingly low. SEE: UAPP.

#29 TurnerNation on 04.07.13 at 6:46 pm

Eat the rich – down with the bourgeois?
Is this “Agenda 21″ in action?

While the elites whoop it up and are laughing?

http://www.cbc.ca/news/canada/prince-edward-island/story/2013/04/04/pei-mock-refugee-camp-students-584.html


Students attend mock refugee camp

CBC News
Posted: Apr 4, 2013 12:24 PM AT

The program, hosted by the P.E.I. Association for Newcomers to Canada, will have the students pretend to be refugees, register in a mock camp, and pick up supplies. There will also be a presentation from a refugee who now lives on P.E.I.

#30 Paully on 04.07.13 at 6:51 pm

All major religions have made usury a sin.
How can we have infinite growth with finite resources?
Even the founders of capitalism believed we would have 200 years of growth followed by a steady state economy.

Why work when the government takes half your money for their “workers”? I own a small manufacturing company. We take raw materials and produce a valued product. Meanwhile the government creates nothing and wastes my hard earned money. Oh and they wage wars against our “enemies”.
The system must fall.

#31 Westernman on 04.07.13 at 6:51 pm

Garth,
” Coddled and swathed in protective regulation?” Are you bloody kidding? More like “Smothered in Socialism”…

#32 Old Man on 04.07.13 at 6:51 pm

The greatest dark drama that I have ever seen in my life on stage made the playwrite $millions, and sent him an email with my interpretation and he said I nailed it bigtime. Now how can some plays on stage be so emotional with just two people, as it was a dark drama beyond the pale.

Forget the plays to waste your money on for a night out, as this was a classic, as is a must to be seen for going forward in life called the Gin Game, and it will bring tears to your eyes; make you think about the future, as this was the best play I have ever seen in my life; have seen them all but this was different.

#33 Nemesis on 04.07.13 at 6:55 pm

The contract was broken… ThePopularDream vanquished…

Learning to invest?

A LoftyGoal, OldPol… but before the Learning… you gots to have the Earning.

And, needless to say, the PublicTrust has been demonstrably and viciously squandered by those who should know better and care more.

On the BrighterSide… HardTimes make for better literature.

#34 Smoking Man on 04.07.13 at 6:55 pm

O boy just read the I gate story, Jason Kenny just trew Gordon Nixon under the bus……

#35 all been said b4 on 04.07.13 at 6:56 pm

The one really large target let, of course… The elephant no one’s willing to talk about… Is the empire of organized religion.

This is not dooming talk, it was all written long ago. Commercial entities and religion, long-time paramours, have an increasingly irrelevant relationship.

#36 jess on 04.07.13 at 6:56 pm

how many businesses in canada bought this stuff?

mis- selling derivatives – interest rate swaps
http://www.ibtimes.co.uk/economy-videos/2464/abhishek-sachdev-on-mis-selling-derivatives-exclusive-interview.html
==================================
The committee’s report – entitled ‘An accident waiting to happen

HBOS: Regulator’s findings …Bank so poorly run it would have gone bust even without 2008 crash, parliamentary commission finds

http://www.guardian.co.uk/business/2013/apr/04/bankers-brought-down-hbos

#37 Pr on 04.07.13 at 6:56 pm

Looking at your last graphic makes me sad. Such a nice place to live before this bubble. If it corrects and stabilize , price vs salary, the pain for some family, will be immense. No wonder people are Mistrustful, suspicious etc. Take a look at realestate prices in 1998-1999-2000 and compare to now. Something is seriously and very badly wrong.

#38 Rob on 04.07.13 at 7:00 pm

People are just looking to blame someone else for their poor decisions.

#39 ex-Van on 04.07.13 at 7:03 pm

“The clerical class, for example, is gone.”

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

Also printing services, file clerks, payroll clerks, and increasingly, jobs in the legal profession: lawyers don’t need a huge staff – including junior lawyers – to coordinate the grunt work of litigation anymore; documents are digital, and data mining software can find relevant stuff in discovery faster and better than humans. I’ve been watching this bloodletting of jobs first-hand for the past 5 years.

People didn’t think much about office administration work, but it employed millions of people in North America for decades. They were also a foot in the door to a company where you could work your way up. They’re not coming back.

#40 RE Observer on 04.07.13 at 7:05 pm

At #12 re Paris Hilton’s wealth: she deserves it as much as any person does. Do you deserve it more than her? Her family worked hard for the money and can do as they please with it. If they choose to waste it by giving it to someone as empty-headed and vacuous as her, that is their choice.

#41 RE Observer on 04.07.13 at 7:07 pm

Apparently I can’t read. #12 should be #20

#42 Soylent Green is People on 04.07.13 at 7:08 pm

These two British academics argue almost every social problem, from crime to obesity, stems from one root cause: inequality.

http://www.guardian.co.uk/society/2009/mar/12/equality-british-society

And, they say, it’s not just the deprived underclass that loses out in an unequal society: everyone does, even the better off.

Because it’s not absolute levels of poverty that create the social problems, but the differentials in income between rich and poor.

The US is wealthier and spends more on health care than any other country, yet a baby born in Greece, where average income levels are about half that of the US, has a lower risk of infant mortality and longer life expectancy than an American baby.

“It became clear,” Wilkinson says, “that countries such as the US, the UK and Portugal, where the top 20% earn seven, eight or nine times more than the lowest 20%, scored noticeably higher on all social problems at every level of society than in countries such as Sweden and Japan, where the differential is only two or three times higher at the top.”

What is it about unequal societies that causes the damage? Wilkinson believes the answer lies in the psycho-social areas of hierarchy and status. The greater the differential between the haves and have-nots, the greater importance everyone places on the material aspects of consumption; what brand of car you drive carries far more meaning in a more hierarchical society than in a flatter one. It’s the knock-on effects of this status anxiety that finds socially corrosive expression in crime, ill-health and mistrust.

Reducing inequality fits in with the environmental agenda; it benefits the developing world, as more equal societies give more in overseas aid; and most significantly, everyone is fed up with the corporate greed and bonus culture that have caused the current financial crisis, so if ever a government had the electorate’s goodwill to act, it’s now.”

#43 Soylent Green is People on 04.07.13 at 7:08 pm

Sitting tantalizingly in a warehouse in Winnipeg are 2,000 boxes of information about one of the most fascinating social policy experiments in Canadian history.

http://www.thestar.com/opinion/editorialopinion/article/920145–goar-anti-poverty-success-airbrushed-out

The experiment began in 1974. It was designed to test the concept of a guaranteed annual income in a small, fairly typical, community. Dauphin, a rural municipality of 13,000 midway between Winnipeg and Regina, was chosen at the behest of former Manitoba premier Ed Schreyer.

The city’s low-income residents were lifted and kept out of poverty, using a negative income tax. (Canada Revenue Agency topped up their income if it fell below the poverty line.) They could use the money as they chose.

#44 AK on 04.07.13 at 7:11 pm

#11 Smoking Man on 04.07.13 at 6:13 pm

“If this was such a great idea why are 1000 of USA company’s bringing It back…”
——————————————————————–
I can’t believe that I am saying this, but Smoking Man is spot on.

The fact is that American wages are lower than India. :-)

#45 lucyj on 04.07.13 at 7:17 pm

Garth, I am a little confused about the term “home ownership” in my mind it is outright ownership with no mortgage. A lot of “home owners” have mortgages, so who or what is a home owner? Thanks for your clarification. Keep up the great work.

#46 Old Man on 04.07.13 at 7:18 pm

#41 Re Observer – knew many a woman in my youth that should of married that now have big money, but such is life, so go on as a poor man from day to day, so just get buy to pay my bills.

#47 Smoking Man on 04.07.13 at 7:20 pm

Rbc in deep do do ……

What would I do if I was Gordon Nixon , first off business is business ,although school teaches us we matter we all serve a master,a worker his boss ,his boss, the prez,the prez, his share holders..

Nixon needs to immediately do a 180 , blame the manager in charge , take him out, admit to the error ,apologize to the staff, and figure out another way to bring this in under the radar to keep shareholders happy.

Now you know why he makes the big bucks, let’s see how they handle this…..

#48 Randy on 04.07.13 at 7:26 pm

Not my fault….The school system feminized us!!! haha

#49 Annie Rined on 04.07.13 at 7:28 pm

Garth, I don’t think people are anti bank, they are anti “merger of state and corporation”. I like banks, but not too big to fail banks. There should be anti trust laws enforced.

Do you remember the concept of competition ?

#50 Casual Observer on 04.07.13 at 7:32 pm

When government officials come out and say things like “there will not be a deficit” and that “income trusts won’t be touched”, and the exact opposite occurs, it’s understandable why people don’t trust their elected officials.

When people read vaguely worded “bail-in” legislation, and then hear officials tell them that their deposits are not at risk, this is in the back of their mind.

People also feel disillusioned because, whether true or not, the perception is that the responsible people are the one’s paying to clean up the mess that irresponsible people made.

First by having to accept interest rates below the rate of inflation if they don’t want to subject their money to market risk, and second by their tax dollars being used for bail-outs and to subsidize the housing market.

Like it or not, this is the world we live in. The old way of doing things probably won’t work so well going forward. Those who have a greater percentage of their wealth in “financial” assets vs. “real” assets will probably do better than those who don’t.

I wouldn’t worry about insured deposits being confiscated. Our entire financial system in this country is built on confidence, and it’s hard to imagine what would do more to destroy that confidence, than confiscating insured deposits. Why do that when they could just print the money to cover insured deposits?

#51 Bob on 04.07.13 at 7:35 pm

Harpers secrecy and mimicking Mussolinis crypto-facsist government stylings have done nothing to engender trust or build confidence either

#52 Min in Mission on 04.07.13 at 7:36 pm

Perhaps.

“Killed to death” ?? Is that for real?

Your remarks are very true Garth. Although there is an increasing “darkness of outlook”, we are the most looked after bunch of SOB’s yet created!

I am wondering what will happen in a few years, when the current “young” crowd has to start, in earnest, replacing the retiring boomers. Many of our young have never really had to work hard. Most got by very easily. Yes, there is exceptions.

I have begun to despair about the future for many of us. As you mentioned, the divide between rich and poor is getting wider and becoming harder and harder to leap across.

#53 Dean Mason on 04.07.13 at 7:36 pm

The numbers changed but the same old rules still apply. If you don’t save money and invest it you will not have any. Interest rates are low but they will not be low for 30 years.The TFSA is a game changer because because even with low interest rates it is income tax free growth.The biggest mistake people make is put it in 1%-2% low interest yielding savings accounts and leave it there.

The highest paying 5 year GIC’ s are 2.50% to 2.85%,5 year GIC TFSA’s,RRSP’s 2.70% to 3.15%. Canadian strips 20 years 2.60%,provincial strips 12- 20 years are 3.10% to 3.60%,corporate strips 12-20 years depending on the issue are 4.00% to 5.30%. REIT’s depending on the issuer are 4.50% to 5.50%.

Preferred shares and common shares of banks,insurance companies,energy,telecoms,pipelines etc. are 3.50% to 6.35%. Corporate bonds of 5 to 25 years are 2.50% to 5.75% depending on the issue. Provincial bonds of 10 to 25 years are 2.80% to 3.55%. Canadian 10 to 30 bonds are 1.75% to 2.35%.ETF’s have 2.50% to 6.00% yields depending on the type.Foreign government bonds 10 years range from 3.25% to 9.50%, 15 to 25 years range from 3.50% to 7.80%.

The current dividend yields and interest rate environment for investors gives a good choice of buying a portion of all these investments for a total portfolio. A 4.50% to 5.00% overall yield is achievable. People should stop procrastinating and do what they need to do. The buy real estate and see the prices rise mentality was never an excuse to stop saving and investing.

I would not have more than 25% to 30% maximum in real estate by the time I am retire 60 to 65 years old.The debt,extra interest paid,property taxes,insurance,maintenance,repairs,utilities,H.S.T. etc. would never give me the ability to save and invest much if nothing at all.People better watch out as the longer they make these mistakes the more it will cost them.

#54 Real Estate Tsunami on 04.07.13 at 7:37 pm

Debt is the new frugal.

#55 DreamingInTechnicolour on 04.07.13 at 7:40 pm

More people should consider the monthly expenses that come with the perceived status of being a home owner: e.g. mortgage interest, property taxes, utilities and maintenance costs versus the monthly expenses that come with the perceived status of being a renter.

At the end of the day – money from the pockets of the owner and renter alike is required to pay for their monthly costs of living – money that never comes back to either the home owner or the renter !

#56 Freebird on 04.07.13 at 7:40 pm

@#39 Rob

I agree in most cases. There are few true victims. Being willing and able to educate yourself on the issues and things that affect you directly or indirectly is the first step, then make choices. I think Garth is simply calling out the choice (and is a choice) by many to see the world through an overly cynical, pessimistic filter and ignore the big picture and what is positive. Hes also (I think) trying to give a wake up call to help readers make better choices based on his experience and take a more balanced, defensive approach to make the most of current and future trends. Just my observation.

#57 Spiltbongwater on 04.07.13 at 7:44 pm

I am buying fuel for the tractor. I have 50 tonnes of it in the barn, and will continue to increase my stake. When the SHTF in the next few years, I can trade the fuel for money. If the money is worthless, I will have to barter with the fuel. I only pray when the S does HTF, that people will still see the value in driving a tractor, and not revert to some mennonite way of life. Oh ya, I have guns to help protect my fuel stockpile.

#58 Ralph Cramdown Ⓤ on 04.07.13 at 7:46 pm

I do think that certain aspects of the social contract have been broken.

Selling a couple a mortgage that takes two incomes to pay at 32% GDSR with a 30, 35 or 40 year am but only a five year guaranteed rate, far below historical average rates and with 5% or even 0% equity is not the kind of thing a government should encourage its banks to do to its middle class.

Downloading the costs of post secondary education onto middle class kids and their parents without doing anything to control those costs or ensure that places in programs were somewhat matched to projected future demand has led to a lot of debt, underemployment and skills mismatch. We tell the kid he needs a degree to get anywhere, he racks up $40k for a history degree and sits, unemployed, in the parents’ basement watching TV commercials that says Canada’s Economic Action Plan says we need more welders… But if we don’t find some in 60 days, we’ll just import them.

Letting people put in 20 or 30 years in good jobs with defined benefit pensions while waiving the employers’ requirements to fund those pensions, even at the rather generous discount rate assumptions they use, for ‘competitive’ reasons, then telling the employees they’re SOL with all the other unsecured creditors when the company fails?

Poor policies, for the country as a whole as well as for those directly affected.

#59 Freebird on 04.07.13 at 7:47 pm

#46 lucyj

Garth, I am a little confused about the term “home ownership” in my mind it is outright ownership with no mortgage. A lot of “home owners” have mortgages, so who or what is a home owner? Thanks for your clarification. Keep up the great work.

————-

So true. My husband and I say we own our car and business but we’re leasing to own our house from the bank. Not worried.

#60 Smoking Man on 04.07.13 at 7:48 pm

On my http://www.keysme.org app I made a big mistake with the marketing.

Was built for the kids, I thought lots of conspiracy theorist out there, let’s put up a website and market it to them..

Problem a conspiracy theorist , that’s me would think that the CIA or CSIS would put it out for extra focused servelance.

So it never took off in north America but Russia for some reason over a million downloads…..

Weird

#61 Barry Lainof on 04.07.13 at 7:49 pm

“That takes a helluva us-and-them mentality, and a belief the social contract’s been shattered.”

Maybe what is being reflected, in the comments posted on this blog, is frustration with “too big to jail” in the US of A, BS Frankenumbers being passed as facts to the unsuspecting or glimpses of off shore tax havens finally being exposed on CBC (why has this taken so long ? and are prosecutions forthcoming ?).

Maybe the social contract has been shattered.
The average citizen is voting for the political party that promises to give the most and tax the least. Citizens are not innocent in the destruction of the social contract.

Maybe the social contract has been shattered.
The politician whose spouse has been hiding from the CRA millions of dollars or Quebec municipal politicians finally being exposed for corruption that has gone on for years.

Maybe the social contract has been shattered.
Alberta politicians that have squandered oil revenues and now find that their unrealistic budget projections are dragging down a provincial economy at the same time that demand for oil and gas is slowing and pipeline transportation of hydrocarbons is restricted.

Sad to say – the social contract has been shattered.

#62 Post Haste on 04.07.13 at 7:51 pm

Garth, why the surprise of those who express the darker side in this blog. I believe the internet has provided many with another view point then the once only source of info was your newspaper and local news – it”s being challenged – and that’s why free thinkers are becoming a force.

I gather Garth, and this is no disrespect – you hop into your heated car, leaving from your secured driveway in a community that probably has a very low crime rate. You travel in the comfort of your vehicle to the golden office towers of Toronto. Park it in the heated underground and walk only feet to the elevators that wisk you up many flights to your office in the sky. But most of us, travel on buses and subways, our ears are too the ground, we smell,taste, and witness crap all day long – always thinking that anyone beside you can just snap and start shooting or stabbing just to make the evening news. You have to skip over homeless people on the street, and after giving the “shaky lady”money for months – you read that she lives in a nice swanky apartment with her oversized sons. You hear your co-workers yack why life sucks and how they nearly got robbed on the weekend. You read in the papers that life is grand – but you brother-in-law has just been evicted after falling behind on his mortgage.

It”s all about perception – and our society has hardened many into cynical thinkers. Maybe not everyone is brainwashed as the government has hoped for…IMHO…

Peace to all!!

#63 Home safe in Kelowna on 04.07.13 at 7:52 pm

Garth,
People don’t need Librarians? I know someone who recently graduated with a Masters of Library Science, got a great job with great prospects for moving up the career ladder. You might want to research that comment a little deeper. You are misinformed about Librarians.

#64 KommyKim on 04.07.13 at 7:56 pm

RE: #31 Paully on 04.07.13 at 6:51 pm
Meanwhile the government creates nothing and wastes my hard earned money.

Oh? What about the roads, bridges, etc, that businesses use as “free” transportation infrastructure?

What about the water lines, sewer lines, etc, that service your business?

What about a skilled and educated workforce? Does business educate children from cradle to adulthood?

No, governments do that. With the tax dollars you are whining about being “wasted”.

#65 Jeannie on 04.07.13 at 8:04 pm

As for all this ‘darkness’ and negativity…maybe it’s also down to the effect of the long cold never-ending Canadian winter ?
I’ve noticed that working-class people living in warm, sunny, South American countries seem happier, more content, and family oriented than in some of the more advantaged nations.
Could it be a case of SAD’s that’s affecting so many?

#66 Shawn on 04.07.13 at 8:05 pm

NO BANK COMPETITION IN CANADA?

Number 50 Annie Rind alludes that there is no bank competition in Canada.

Many people believe this. But mortgage rates are available under 3% for five year mortgages. These are the lowest mortgage rates in history.

That would not be happening if banks were not competing fiercely for mortgage business.

I am not saying that low rates are mostly due to competition, but they would not be quite this low without competition.

I question whether it is even worth the bother of a bank to lend out money at 2.75% for five years. They’d be far better off investing in preferred shares if regulations would allow it.

And giving out money for something like 1.0% or 1.5% on a short term basis to some borrowers does not strike me as a sensible business. A bank needs to make at least 1% on assets AFTER all expenses, credit losses and income taxes to be a good business and lending money out at 1.5% or less will not achieve that goal.

And yes, banks make big money on fees. But that is often a result of customers not shopping around. certainly with five large banks and numerous small ones offering a commodity service there is in fact pretty good competition.

#67 45north on 04.07.13 at 8:05 pm

Mistrustful, suspicious, wary and aloof.

Nemesis: On the brighter side hard times make for better literature.

Most of today’s adult Americans grew up in a society whose citizens dreamed of perpetually improving outcomes: better jobs, fatter wallets, stronger government, finer culture, nicer families, smarter kids, all the usual fruits of progress. Today deep into a Third Turning, these goals often feel like they are slipping away.

We may not wish the Gray Champion to come again – but come he must, and come he will.

The Fourth Turning by William Strauss and Neil Howe

#68 Dwilly on 04.07.13 at 8:05 pm

Garth, glad you wrote about this. Second paragraph especially. I am fairly young myself, but I have been alarmed lately by the seeming disengagement of people around me. As a politician yourself, you must feel this moreso. I have frequent discussions with a coworker and friend who I would call one of the disengaged. He by all means leads a good life. Good education and decent job. Plenty of money for what one person needs. But he is angry at everything, distrust government and politicians, banks, etc. Assumes right away that they are always stupid and either just plain dumb or intentionally trying to screw him. Worse yet, he believes he has no control over this, and rarely even votes, saying essentially that they’re all crooks and it doesn’t matter. I’ve tried to argue with him that this is precisely backwards, and that the solution is more engagement and more voting, not less. But my words are lost. If this were just one crusty guy, I wouldn’t sweat it. But like you, I see it more and more. We will all pay for this later…..

#69 Loopback on 04.07.13 at 8:06 pm

Say what, embrace more risk — still shocked about corruption of even the most fundamental trust, such as the LIBOR.

#70 Smoking Man on 04.07.13 at 8:07 pm

Post Haste

Those common folk you speak of are there by choice,they lack selfesteem , confidence , and are afraid of risk…

We all can grow balls , quit are shit jobs in the morning and go conquer the world.

But it requires selfesteem, confidence, and fearlessness, something teachers deliberately remove from those aspiring to get degrees in library science

#71 Joe on 04.07.13 at 8:09 pm

Garth I appreciate your blog but have to comment that you live in a bit of a bubble.
I travel quite extensively, Asia, US, Mexico, Africa, Cuba, S-C America, Europe.
Call it a correction a redistribution or cyclical pattern.
It’s a mess out there.
A few have much and many have little and it’s not improving.

Is that not what I said? — Garth

#72 This is wonderland on 04.07.13 at 8:10 pm

#11 Smoking Man

Worked for a US Automotive Supplier that sent their product south.

I was the Vendor Rep who had to deal with any Quality issue at the customer sight. The quality of our product actually got better when it left Detroit and went to Mexico. Not saying that this is the norm, just saying…. let’s not kid ourselves.

#73 zak on 04.07.13 at 8:12 pm

I think people just need something to look forward to. The past five years have been unduly focused on economic gloom rather than the greater human achievements (higgs boson!) Progress is still being made, it is just being overshadowed by social and political issues.

#74 HAWK on 04.07.13 at 8:15 pm

#43 Soylent Green is People on 04.07.13 at 7:08 pm

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

I agree that inequality causes a lot of problems for societies and it makes sense that we should promote equality.

However, the main problem is that we are sold on the idea of “tax and redistribute” which is both morally wrong and also fiscally unsound because on the one hand, the very rich skillfully evade taxes and on the other hand redistribution forces the productive to subsidize those that don’t work or whose contribution (particularly public sector workers) is forcibly valued at levels much higher than the free market would sustain.

Rather the inequality should be reduced by smashing the very real barriers that people have towards earning and advancement. Earlier on a poster made a point that he earns in a year what his CEO earns in a day. Is is fair to say that it’s pretty much common sense that the CEO’s pay is absurdly over valued and society needs to enact legislation towards equalization and normalization of earnings?

The Japanese now have over half a century of corporate experience under their belt with some of the most successful corporations in the world. Their society has never felt the need to incentivize the executive cadre to INSANE levels at the expense of the ordinary worker and they remain even today world leaders in manufacturing. Recently the Swiss whose democracy has evolved to far superior levels than most of mankind voted for caps on executive pay. I would think these societies set the right example for us.

If we continue down the road we’re headed one day it could become like France in 1789.

#75 Dr. Oblivious on 04.07.13 at 8:17 pm

So much truth in what you’ve posted today (as usual). There is, in my opinion, another group of commenters though. The people who seem to take everything as literal, black and white. They can’t grasp that one size does not fit all and you are offering guide lines which can be applied to individual situations.

By the way I’ve discussed this whole HAM thing with a couple of people and have concluded that it may not mean hot Asian money. One guy told me it stand for horny as a mofo another that it stands for hot Asian mommy. Upon reflection I realized that when gazing upon the latter I feel like the prior.

#76 Tony on 04.07.13 at 8:18 pm

Re: #19 Good Authority on 04.07.13 at 6:26 pm

Just like i bet fights for a living. It’s not knowing the outcome of each fight beforehand it’s knowing what fights to avoid betting. In the real world with investing if you can’t bet against things it’s knowing when to invest and when not to invest. I’ve made quite a lot more money betting against things than betting up trends but i’m mainly a day trader not a quote investor.

#77 Loopback on 04.07.13 at 8:21 pm

If you have the stomach lining, yes the financial system is rigged, but why shouldn’t you profit from the knowledge of a completely artificial Fed driven recovery — embrace the risk!

#78 Smoking Man on 04.07.13 at 8:21 pm

#50 Annie Rined on 04.07.13 at 7:28 pm

Do you remember the concept of competition ?

Now that harpo regim had thrown RBC under the bus and they face a back lash of customers closing accounts.

All I see is mortgage wars back on, lead by RBC….

#79 futureexpatriate on 04.07.13 at 8:22 pm

Sound familiar? – Garth

Absolutely. 1932. Only with a coddled, spoiled, babied generation who got pretty much whatever they wanted by marching in the streets and scaring the crap out of their parents and grandparents.

Not a good sign as to how they’ll get out of this one. Unless governments figure out how to soak the rich fast, get their grips into those Caribbean offshore accounts, and rebuild the middle class but FAST with more social services, jobs programs (infrastructure renewal), and upper mobility IN SPITE OF endless conservative obstruction, this could really turn out to be “the best of times, the worst of times Part Deux”.

Guillotines are dirt cheap, and targets and Madame DeFarge’s are a-plenty.

And “what if they gave a war, and nobody came” is about to become a reality Stateside.

#80 TurnerNation on 04.07.13 at 8:28 pm

Not sure if I clicked on my first post but here it is again:

Who may afford houses in major Canadian cities? And the escalating taxes.

1. Those in the Capital Class (Bankers, Investees, Lawyers – at least these are within a meritocracy).

2. Union elites and Party faithful and Party Elites. Kanada is tightly controlled.

Examples abound. Pick any small, medium, or large city. You’ll find dozens of “adminstrators” who are paid $120,000-$350,000 yearly.

Pick any Province. You’ll find hundreds or thousands of admistrators, managers, consultants, unelected Crown Corp. heads paid $120,000-$350,000 yearly.

Here’s a small-town example. An area of the same, with published 10-to-15% unemployment rates.

http://www.thepost.ca/2013/03/29/firefighters-dominate-city-100000-earner-list-due-to-settlement

“The number of employees on the list was: 66 in 2012; 34 in 2011; 25 in 2010; 24 in 2009 and 19 in 2008.”

- Is your local hospital begging for a new MRI machine? Check out how the elites, higher-ups are paid, first. Then decide.
No politician will stand up against it – when their exit plan includes a similar plum patronage or appointment. The Ontario opposition, Tim (Who-dat?), distracts us with unsolvable issues. Abortion. Vets. Alternative Marriage. He’s a walking Toronto Sun headline. (I don’t find thespians threatening.)

Map of how they buy their Toronto houses:

http://www.thestar.com/opinion/editorialopinion/2013/03/03/the_deadly_mixture_of_guns_and_class_in_toronto.html

I dunno, kids should spend 60k on a Masters in Public Policy degree/obedience cert., and join ‘em?

#81 Smoking Man on 04.07.13 at 8:32 pm

#75 HAWK on 04.07.13 at 8:15 pm
#43 Soylent Green is People on 04.07.13 at 7:08 pm

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

I agree that inequality causes a lot of problems for societies and it makes sense that we should promote equality.

“………..

There is equality , is called risk vs reward……

A job is a job, pays what the market will bear…..

Now if you want a cosy little job and make what a prez of the company makes your a commy.

Anyone can walk down to service Canada and open a business and get a number….what happens after that is up to the individual , being pissed at what others make is childish…….

#82 TurnerNation on 04.07.13 at 8:33 pm

The Canada Post main office near mine is testing an “ATM”. Pulling people out of line for routine postage needs, which machine may dispense.
On the other hand this combats union largess.

Pick any small, medium, or large city. You’ll find dozens of ‘adminstrators’ who are paid $120,000-$350,000 yearly.

Pick any Province. You’ll find hundreds or thousands of admistrators, managers, consultants, unelected Crown Corp. heads paid $120,000-$350,000 yearly.

Here’s a small-town example. An area of the same, with published 10-to-15% unemployment rates.

http://www.thepost.ca/2013/03/29/firefighters-dominate-city-100000-earner-list-due-to-settlement

“The number of employees on the list was: 66 in 2012; 34 in 2011; 25 in 2010; 24 in 2009 and 19 in 2008.”

Is your local hospital begging for a new MRI machine? Check out how the elites, higher-ups are paid, first. Then decide.
No politician will stand up against it – when their exit plan includes a similar plum patronage or appointment. The Ontario opposition, Tim (Who-dat?), distracts us with unsolvable issues. Abortion. Vets. Alternative Marriage. He’s a walking Toronto Sun headline.
(I don’t find thespians threatening.)

I dunno, kids should spend 60k on a Masters in Public Policy degree/obedience cert. and join ‘em?

#83 TurnerNation on 04.07.13 at 8:33 pm

The Canada Post main office near mine is testing an “ATM”. Pulling people out of line for routine postage needs, which machine may dispense.
On the other hand this combats union largess.

#84 TurnerNation on 04.07.13 at 8:34 pm

Pick any small, medium, or large city. You’ll find dozens of ‘adminstrators’ who are paid $120,000-$350,000 yearly.

Pick any Province. You’ll find hundreds or thousands of admistrators, managers, consultants, unelected Crown Corp. heads paid $120,000-$350,000 yearly.

Here’s a small-town example. An area of the same, with published 10-to-15% unemployment rates.

http://tinyurl.com/c9hwmj8

“The number of employees on the list was: 66 in 2012; 34 in 2011; 25 in 2010; 24 in 2009 and 19 in 2008.”

Is your local hospital begging for a new MRI machine? Check out how the elites, higher-ups are paid, first. Then decide.
No politician will stand up against it – when their exit plan includes a similar plum patronage or appointment. The Ontario opposition, Tim (Who-dat?), distracts us with unsolvable issues. Abortion. Vets. Alternative Marriage. He’s a walking Toronto Sun headline.
(I don’t find thespians threatening.)

I dunno, kids should spend 60k on a Masters in Public Policy degree/obedience cert. and join ‘em?

#85 Randy on 04.07.13 at 8:35 pm

Save your money…you are going to need it….after the universal ‘free’ healthcare system is the next big bubble after housing and ‘free’ education blow up….

#86 mr-b on 04.07.13 at 8:37 pm

Matthew 24:12

12 And because iniquity shall abound, the love of many shall wax cold.

Unfortunately, the universe is unfolding as it should.

#87 TurnerNation on 04.07.13 at 8:42 pm

Oh yeah I’m not against private unions, only public. We must disband public unions or face an economic death knell.

Capitalism smooths all. A company gets the union it deserves.

Air Canada: requires unions due to management’s foot stomping on their faces always.

WestJet: No union. Has an internal employee group – “PACT” – they even voted y/n for their new regional airline. Employees said yes.

#88 TGS on 04.07.13 at 8:45 pm

Blaming individuals for this is a pretty shitty cop out and the same kind of stupid neoliberal ideology that has pushed the policies that have stalled wages while pushing wealth to the already wealthy.

Policies obviously encouraged this kind of thing, when the government allows 40 year mortgages and 50 different types of tax credits for home renovations you can’t turn around and blame individuals for doing exactly what government policy wanted them to do.

#89 CanSpeccy on 04.07.13 at 8:46 pm

“Increasingly, people are anti-markets. Anti-bank, etc., etc. ”

and

“What has changed is … the destruction of the middle class.”

Not quite sure what you’re saying here, but the logic of those of the destroyed middle class who’ve become highly suspicious of free markets, and turned anti-bank, anti-government, etc., seems both sound and easy understand.

What’s difficult to see is what you find surprising or unreasonable about it — if that is what you are saying. It was government that opened the way for the export of Canadian manufacturing jobs.

It was government that legalized what the bankers do, creating money for cheap mortgages guaranteed by the tax payer. So if now the RE market collapses and people get hurt, why wouldn’t folks be even more anti-bank, anti “market” and anti-government?

#90 Smoking Man on 04.07.13 at 8:51 pm

#83 TurnerNation on 04.07.13 at 8:34 pm

Sorry TN obidiance certificate won’t cut it down the road.

Machines will eventually replace the elite on bay and wall street…

Just look at stupid scientist they think the universe is expanding..bahahaha idiots..dark matter ha, more funding please…..

Think of the universe as an earth made of all water serveral round ice bergs (galaxies) they melt, think of the water as energy. As they melt an observer on the ice berg will think the others are moving away from each other.. So the mass is transforming back into energy..water.

And the water earth (universe) is shrinking its water being transformed to energy we can’t see….

Ok on the 3rd glass better quit while I’m ahead. :)

So

#91 Toronto_CA on 04.07.13 at 8:51 pm

People are extremely pissed at Canada’s public sector unions, not the public servants themselves. And it’s not just on this blog, Garth, it’s everywhere. And I think it will only get worse as the economy in Canada goes through the lumps we should have had in the last recession, whlie the public sector is shielded from reality.

#92 W on 04.07.13 at 8:53 pm

Good read. The answer is what it has always been.

Save yourself.

#93 Retired WI Boomer on 04.07.13 at 8:54 pm

Equity inequity the world is so unfair they lament. GFY I say. Too bad your parents were losers, or you didn’t have one, or even both in your formative years. Too bad.

What you get out of life is seemingly, directly proportional to what you put into life. Sure, there are time, and chance things that happen, again to many people.

If you’re 25 and feel screwed, you can’t see reality.

If you’re 45 and feel screwed, it might be largely your own making. Take stock of yourself, time is not your friend.

If you’re 65 and feel screwed…you probably are!!

#94 AisA on 04.07.13 at 8:55 pm

WOW,

What a colostomy bag of opinions this post has brought out. You want the ugly truth?

Only Jesus can save your eternal soul. Satan has jurisdiction over this planet. Roll your dice, live your life.

Ecclesiastes 3

3 To every thing there is a season, and a time to every purpose under the heaven:

2 A time to be born, and a time to die; a time to plant, and a time to pluck up that which is planted;

3 A time to kill, and a time to heal; a time to break down, and a time to build up;

4 A time to weep, and a time to laugh; a time to mourn, and a time to dance;

5 A time to cast away stones, and a time to gather stones together; a time to embrace, and a time to refrain from embracing;

6 A time to get, and a time to lose; a time to keep, and a time to cast away;

7 A time to rend, and a time to sew; a time to keep silence, and a time to speak;

8 A time to love, and a time to hate; a time of war, and a time of peace.

9 What profit hath he that worketh in that wherein he laboureth?

10 I have seen the travail, which God hath given to the sons of men to be exercised in it.

11 He hath made every thing beautiful in his time: also he hath set the world in their heart, so that no man can find out the work that God maketh from the beginning to the end.

12 I know that there is no good in them, but for a man to rejoice, and to do good in his life.

13 And also that every man should eat and drink, and enjoy the good of all his labour, it is the gift of God.

14 I know that, whatsoever God doeth, it shall be for ever: nothing can be put to it, nor any thing taken from it: and God doeth it, that men should fear before him.

15 That which hath been is now; and that which is to be hath already been; and God requireth that which is past.

16 And moreover I saw under the sun the place of judgment, that wickedness was there; and the place of righteousness, that iniquity was there.

17 I said in mine heart, God shall judge the righteous and the wicked: for there is a time there for every purpose and for every work.

18 I said in mine heart concerning the estate of the sons of men, that God might manifest them, and that they might see that they themselves are beasts.

19 For that which befalleth the sons of men befalleth beasts; even one thing befalleth them: as the one dieth, so dieth the other; yea, they have all one breath; so that a man hath no preeminence above a beast: for all is vanity.

20 All go unto one place; all are of the dust, and all turn to dust again.

21 Who knoweth the spirit of man that goeth upward, and the spirit of the beast that goeth downward to the earth?

22 Wherefore I perceive that there is nothing better, than that a man should rejoice in his own works; for that is his portion: for who shall bring him to see what shall be after him?

I know this is not the place for religious pandering, but the wisdom put forth here is fairly universal and quite frankly undeniable. Post it or not, in these times it can’t possibly hurt. Keep up the good work.

#95 Canadian Watchdog on 04.07.13 at 8:56 pm

Increasingly, people are anti-markets. Anti-bank. Anti-government and politicians. Anti-corporations, anti-wealthy. Anti-America.

Better get used to it Garth. It's only going to get worse from here on as more people disover other alternatives to preserving their wealth.

#96 mortgagebrokeron on 04.07.13 at 8:56 pm

to me debt is a four letter word, however most people love having debt, so I let them have it. I get paid more the larger your mortgage is.

This bubble in realestate is caused by house horny individuals who love debt (huge mortgages)

I rarely see people not go for the max mortgage payments…

I prefer to keep my money into purchasing shares of profitable businesses.

Houses don’t “make” you money with dividends.

Warren Buffet has a cheaper house than most of you poor people reading this blog

#97 Smoking Man on 04.07.13 at 8:57 pm

Disturbing reading post here, have any of you ever had a lemon aid stand as kid…the trill of all those nickels in the jar. Where you all just your brothers bitch going to the kitchen a fetching more water for your brother and he gave you a few nickels for being his bitch..

Where are the entrapunors?

#98 Long Time Reader on 04.07.13 at 8:59 pm

Garth,

Sorry to say it, but you’ve definitely turned into Paul Krugman as of late.

#99 Al Bundy on 04.07.13 at 9:00 pm

#22 Smoking Man on 04.07.13 at 6:29 pm

As an example this app http://www.keysme.org a text scatter

Why would someone pay $500 for something so readily available for free?

#100 Coho on 04.07.13 at 9:00 pm

My impression is that most people do not begrudge successful small business owners. After all it is these that employ/ed them. It used to be Main Street employing the local people, but has transformed into a Wall Street feel with the ‘too big to fails’ monolithic soulless institutions that people are angry and frustrated with. Someone in yesterday’s posting said it well when the point was made when a company becomes ‘too big to fail’ it is no longer private. Socializing the losses while privatizing the profits leads to irresponsible and criminal behaviour. Sure a ‘too big to fail’s’ actions may be ‘lawful’ according to The Man but criminal in spirit. This having its cake and eating it too situation understandably doesn’t sit well with many people

Consolidation of wealth is also consolidation of power. As the middle class evaporates, few–very few Joe and Mary Front Porches (good one) will be able to leap off the middle class sinking ship and onto the brightly lit floating palace ship of plenty. But, most will not. It is the lot of average people that is a barometer of sorts as to the direction the world is headed. And it is clear the direction is less money for the many and yet more loot for those relative few that already have heaps of it. How can this end well?

Of course the people are blamed for having a bad attitude. This while the ruling class holds the money, power AND as if that isn’t enough, the moral high ground over their subjects. Is it the bad attitude of the average person which is causing darker times, or is a natural and understandable reaction of the road to darker times paved by the ’controllers’ using governments of sovereign nations to do their bidding.

Average people don’t really need or want much. Yes many of us cave in to impulses to buy toys and gadgets, but really this is not usually the reason we find ourselves behind the financial 8-ball. It’s the programmed desired to own a house which is going to wipe out many. Just paying off one house is the life-long sum total of the financial achievement of so many. The advice given on the blog to avoid such a trap is valuable. On the other hand, the message is also to accept that things are unfair and to adapt by investing in the ‘too big to fails’ and this just goes against the grain of many. For some of us, it’s not just about the money regardless of whether we will suffer for not buying in.

Don’t bet against the USA?

The worldly status of countries and cultures are pre-determined having a stamped best before date by those behind world affairs – those moving around the chess pieces. Countries are elevated and reduced on the world stage by these few, on their time table. Thus, the military might and economic strength of any country is achieved vicariously in this sense. Of course, innovating, talented, decent and hard-working make it happen, but not without the backing of those controlling world affairs.

People either hate or love the USA. I love it, but certainly not because of its foreign policy and military might because sadly, it has become the useful idiot of London and its ongoing yet well hidden imperialistic agenda. The USA is arguably becoming the most hated country in the world because of its aggression and bullying carrying the big stick and moral high ground over the brown people across the planet. The principles on which it was founded upon are what made it special, these being, Life, Liberty, and the pursuit of Happiness. In otherwords, their Bill of Rights which is being attacked daily, by the way. This came about due to the unbridled tyranny of George III. The more the Americans adapted and tried to work with him despite his heavy hand, the more Georgie turned the screws and made things yet more difficult for them. This brought about the result the tyrant wanted, which was a rebellion he ‘knew’ was no match for his forces. However he was very wrong. Unfortunately, things seem to deteriorate to these extremes which cause a world of hurt for all involved.

#101 Country Girl on 04.07.13 at 9:01 pm

Canadian Banks: Too big to fail and above the law.

#102 Joe on 04.07.13 at 9:06 pm

72 Garth… Is that not what I said?
I was detecting a double entendre, sometimes I can’t tell.
I’ll blame it on the Prosecco.
Really appreciate your blog.

#103 Smoking Man on 04.07.13 at 9:09 pm

#98 Al Bundy on 04.07.13 at 9:00 pm
#22 Smoking Man on 04.07.13 at 6:29 pm

As an example this app http://www.keysme.org a text scatter

Why would someone pay $500 for something so readily available for free?

“………….

The corporate version……silly.

And craigy sold a shit load….

#104 souvereigninternational on 04.07.13 at 9:15 pm

http://business.financialpost.com/2013/04/05/canadian-housing-downturn/

Looks like more and more doom about Canadian RE in MSM finally catching up (see above plus related links within the article). The argument seems to be now whether the balloon gets pricked or the air will be slowly deflated.The end result will be the same.

Watched the show on HGTV the other day ( I know -guilty pleasure ). Couple moved to Houston, chose a house in the suburbs. Close to 3000 sq. feet, 5 bdrms., 2 car garage, Lot looked like 1/2 to over 1 acre, wood cabinets, granite, wolf-like stove,stone fireplace, you could barely see neighboring houses in the picture etc. overall above standard feel and upgrades. Asked 330K, sold 275K. Comparable house in T.O. suburbs guess 800-1,500K depending on location.
Couple of my family members recently (2011, 2012) bought houses in Ajax and Whitby in 500′s range. Nowhere near the house on TV. If I used the same yardstick to compare them, given that Houston is similar to Toronto being a large regional city, they’re houses should be in the 230-260K range. I know that salaries there may not be the same (pre-tax only), but Similar property as the Houston house in Connecticut where I used to live and earn roughly the same as in Ontario would cost 350-450K. Now compare the rates where you can lock in for 30y with an open mortgage for less than 4%. A quick search of rates in Canada will show a 25y closed for 8.6%. Now go get a mortgage that will renew in 5 years, at you don’t know what kind of rate (something else to worry about other than your job) on a house that’s overpriced by 15-60%.Only in Canada, Eh! Yes we are different here. Disclosure: Moved back in 2011 for family reasons will rent probably till 2015-16 when prices will be more likely closer to the bottom especially since it will coincide with the souvereign financial crisis spreading around the world. It will look lie a Canadian version of 2008 2.0

#105 Old Man on 04.07.13 at 9:16 pm

#96 Smoking Man – just got an email from a gal that is interested in you, but told her you were a married man, as she said so what as want to do him, as knows that I have your email. She is much too young for you Smoking Man, and will take her for myself. :)))

#106 souvereigninternational on 04.07.13 at 9:17 pm

Garth,

You’ve mentioned a couple times of an upcoming market correction, most recently on your April 2 post. Care to elaborate on this?

I don’t feel like loading into a market just before everyone else decides to ‘Sell in May and walk away’ to spend the summer in their mansions by the sea while the rest of us suckers get hit with a 20% loss.

I highly doubt a correction of that size. — Garth

No sarcasm in Garth’s response= unlikely, but possible

#107 Smoking Man on 04.07.13 at 9:22 pm

#104 Old Man on 04.07.13 at 9:16 pm#96 Smoking Man – just got an email from a gal that is interested in you, but told her you were a married man, as she said so what as want to do him, as knows that I have your email. She is much too young for you Smoking Man, and will take her for myself. :))

Enjoy old man, I wouldn’t be interested, short term rentals, pay Em to go away…. Anything else is cheating and e moral

#108 blok existentialist on 04.07.13 at 9:23 pm

Clog makers. Corn dealers. District messengers. Inspectors of Nuisances. Glovers. Omnibus conductors. Oyster bar proprietor.
The above are dead careers detailed in my 1907 copy of Every Way of Earning A Living by Alfred Barnard (better known in Great Britain for writing exhaustively about whisky).
But be of good cheer …. amazingly, at least half of the occupations listed in 1907 still exist today …. though I’ll admit you can no longer apply for the Indian Civil Service or simply emigrate to the colonies.

#109 Dr Hoof-hearted on 04.07.13 at 9:25 pm

RBC replaces Canadian staff with foreign workers

http://www.cbc.ca/news/canada/british-columbia/story/2013/04/05/bc-rbc-foreign-workers.html

#110 HDJ on 04.07.13 at 9:26 pm

Centralized political power and control (our sham democracy), economic greed and corruption, tax advantages and tax-havens for the wealthy, income and wealth disparity, the uneven application of our laws, large media corporations that advance the interests of the powerful, etc… However, it’s becoming more difficult for the guilty to hide, and the more they and their actions come to light, the greater the darkness that develops in the minds and thoughts of average citizens, who are systematically prevented from proportionately sharing in Canada’s wealth and prosperity. The younger generation must especially have its black moments.

#111 Hicksville Alberta on 04.07.13 at 9:29 pm

#68 45north

“The Fourth Turning by William Strauss and Neil Howe”

Unbelievable to see a reference to this great book on this blog and am grateful for your reference to it.

I discovered the “Fourth Turning” about two years ago and it has really helped put things in perspective and confirmed the lifestyle and long term investment approach i have been making over the past ten years or so.

Everyone should read this book and pay it forward and pay attention to the prognosis of things for the future. I really believe in the case they make that there has to be and will be a massive wipeout every four generations as the history and experience of the last wipeout from the last Fourth Turning gradually disappears from view as each generation has its time and ultimately fades away to posterity.

Neil Howe in recent interviews thinks this Fourth Turning likely started with the 2008-09 global financial collapse so this rebound period ought to be an opportunity for believers to take steps in preparation for the next fundamental long term leg down in our socio economic systems.

Another great book is “The Great Crash, 1929″ (1954) by John Kenneth Galbraith which is a classic spellbinding historical analysis of the lead up to the Great Crash of 1929 which was just one of the several significant events of the last Fourth Turning.

Imho, what is going on now globally at literally every level of everything, and perhaps especially with all governments is way way worse than the events that precipitated the events of the last Fourth Turning.

Time will tell of course.

#112 Oceanside on 04.07.13 at 9:32 pm

#6 Mocha on 04.07.13 at 6:04 pm
In regards to blaming the banks, they do deserve some of the blame. Just not all of it.

RBC will have their hands full over the next few days dealing with public anger over their foreign worker scandal.
****************************************
Credit Unions! Have a say and in some cases participate in profit sharing. Vote for your own directors, better guarantees than banks….No brainer if you want to take a role in your financial institution.

#113 Al Bundy on 04.07.13 at 9:32 pm

#86 TurnerNation on 04.07.13 at 8:42 pm

Oh yeah I’m not against private unions, only public. We must disband public unions or face an economic death knell.

I see no problem with unions – public or private. If public unions pay well, then companies should offer comparable wages and benefits to attract those workers.

Unions raise the bar when it comes to wages, although I do agree they go too far to protect their most useless members.

#114 The Prophet Elijah on 04.07.13 at 9:36 pm

#90 Toronto_CA on 04.07.13 at 8:51 pm

People are extremely pissed at Canada’s public sector unions, not the public servants themselves. And it’s not just on this blog, Garth, it’s everywhere. And I think it will only get worse as the economy in Canada goes through the lumps we should have had in the last recession, whlie the public sector is shielded from reality.
——————————————————-
Not true. Public sector will feel the pinch when their bubble burst. Greedy unions demanding too much will lead to their demise. Stockton will be an example many others will be following.

#115 Makarand Pradhan on 04.07.13 at 9:36 pm

After the recent news about RBC, I would like to move out of RBC into another bank that does not outsource.
Which bank does not outsource any operations? Does anyone know for sure? Any advice?

#116 Signpost in the bushes on 04.07.13 at 9:39 pm

#18 Pinstripe; hear, hear! or, for a blog comment, perhaps that should be; read, read!

#117 Oceanside on 04.07.13 at 9:40 pm

#20 In the cold from Toronto on 04.07.13 at 6:27 pm
We need to tax wealth, not just income. Does anybody think that Paris Hilton deserves all of her granpa’s money?
**********************************************

Makes all that work seem for nothing, Don’t give a s*%t about Paris but after 25 years of saving I don’t want some loser deciding that my nest egg should belong to the ones that never put anything away on their own.

#118 m g on 04.07.13 at 9:42 pm

Que a revolution? kind of sounds a bit like 1917 Russia

#119 Smoking Man on 04.07.13 at 9:43 pm

#93 AisA on 04.07.13 at 8:55 pm

WOW,What a colostomy bag of opinions this post has brought out. You want the ugly truth

Only Jesus can save your eternal soul. Satan has jurisdiction over this planet. Roll your dice, live your life

……..

Wow now we have bible thumping pycos on here…

Best blog in the world….

#120 Evil Magpie on 04.07.13 at 9:44 pm

Rebalancing is great and all, but I haven’t taken the time to write down what I want to rebalance my portfolio to. I’m a young professional, single, renting, and dumping about 1K a month into an RRSP. It’ll be used for retirement eventually, but in an area with a 5% unemployment rate, statistically I’ll be out of a job 2 years out of 40. So, I can pull money out of this at a lower bracket to supplement my income should SHTF. I do have a TFSA and non-registered account, but I’m not concerned about those at the moment. So, I’ll throw it to the blog dogs and ask which sectors need adding to, taking away from, or perhaps I need to add a sector I haven’t thought of.

Canadian Telcos 15%
Canadian Banks 5%
Oil & Gas 8%
Bonds (Corporate and Government) 6%
Preferred Share Funds 23%
REITs 12%
Mixed Funds (i.e., FIE, DFN) 13%
World Funds (i.e., XWD, BRK.B) 10%
Other (currently contains NFI.TO) 8%

#121 Sign of the times on 04.07.13 at 9:46 pm

#108 Dr Hoof-hearted on 04.07.13 at 9:25 pm

RBC replaces Canadian staff with foreign workers

http://www.cbc.ca/news/canada/british-columbia/story/2013/04/05/bc-rbc-foreign-workers.html
——————————————————–
Wow could you imagine sitting there training someone so they can fill your job?!!? Right up there with the Cyprus situation.
They fill everyone’s pockets with mortgage debt then take your job to save a few bucks to add to their already multi-billion quarterly profits.

#122 Brico9 on 04.07.13 at 9:47 pm

This Blog….

Most of the readers and commenters have in common. (except for the closet realtors). The distrust of MSM and the effort to look at alternative media.From sites like Drudge Report to the far end of the spectrum such as Rense. We are open to contrarian views such a gold and silver. Prepping etc. Your message on Real Estate is very contrarian. At a dinner party – you would might as well say you believe in UFOs instead of saying Real Estate is in trouble. You get more respect as a UFO believer or a racist.

Like it or not – this Blog is in the fringe. You get the fridge following.

I get you message. I am not selling my physical gold or silver I have. But. I am no longer putting all my efforts in my past strategies. You message has sunk in. It do have a more balance approach.

I can have gold, Silver, REITS and Bank dividends.

As a renter. A renter by choice. I might as well put on a tinfoil hat. I would get more respect as a prepper, goldbug, even a biggot, than a renter in this country.

It hard to have a contrarian blog without the rest of the contrarians following.

#123 Mel on 04.07.13 at 9:47 pm

Garth, you doubt that 20% correction could be in the cards?

Stocks will loose at least 40-50% of it’s value in the next 18 months. But then, I don’t want to sound too moody.

I will buy, when everyone is worried. Now, too many are too happy for my comfort. You know, everything is ‘resolved’ scene.

#124 Sign of the times on 04.07.13 at 9:49 pm

RBC replaces Canadian staff with foreign workers

http://www.cbc.ca/news/canada/british-columbia/story/2013/04/05/bc-rbc-foreign-workers.html
——————————————————–
Maybe they are cutting in advance knowing full well preparing for the brunt of the housing down turn?
Maybe indeed this will be worse than the US housing melt down. Excuse me I have to go to the bathroom.

#125 souvereigninternational on 04.07.13 at 9:55 pm

#69 Dwilly on 04.07.13 at 8:05 pm

your friend is right. Voting only supports the current system. Did it occur to you that not being engaged or not voting is a vote in itself. Doug Casey explains it well here:

http://www.caseyresearch.com/articles/doug-caseys-top-five-reasons-not-vote

Casey is a nutbar. Anyone not voting empowers those who oppress. — Garth

#126 Piccaso on 04.07.13 at 9:56 pm

Had a good conversation with a fellow Canadian in Dallas today. He got permanent residence back in the 80′s when it was possible. He’s not a real estate geek like this blog consists of but it was a story of the Canada never imploding and it’s real estate market will never crash, they won’t let it.
We think it’s great down here, played 8 ball all afternoon for free, drank $2 beer and ate a buffett for free.
It’s stupid expensive in Canada and will always stay that way. It’s sad but true.

#127 Freedom First on 04.07.13 at 9:57 pm

Garth, I usually post before I read the comments. First, because I come to your generously free and well worth reading blog, delivered with wit….of course:), to hear you. Second, although I enjoy some of the comments, the majority of comments are along the lines of what you described today.

I believe that, for me, self-pity, criticism, blame, and judgmentalism about what is going on around me, or worldwide is of no value. What has value, is in me recognizing what I have no control over or ability to change, and precisely what I can control in my thinking and my own actions. Garth, I learn from many sources, and your blog is high on my “recommend” list, and it is this “learning” that sets one free. It is amazing to me, that many people who are sitting in a quagmire of financial difficulties, are unable to see their part in the problem. Looking in the mirror on a daily basis is a very good exercise. It is where the majority of problems can be found.

#128 Timbo on 04.07.13 at 9:59 pm

http://www.guardian.co.uk/technology/2013/apr/07/canada-200m-loan-telefonica-blackberry

“Canada has provided a £170m loan facility to European telecoms firm Telefónica to help it buy BlackBerry products and services, as the Ontario-based company tries to recover from a year in which it made a £425m loss and revenues fell 40%.”

Repeat after me. must keep the illusion going , must socialize the losses…..

http://www.motherjones.com/blue-marble/2013/04/reporters-say-exxon-impeding-spill-coverage-arkansas

“On Friday morning, Inside Climate News reported that an Exxon spokesperson told reporter Lisa Song that she could be “arrested for criminal trespass” when she went to the command center to try to find representatives from the EPA and the Department of Transportation.”

nothing to see here…move along….all is good….

#129 len on 04.07.13 at 9:59 pm

It is hard for me to decide if you are the biggest cynic of them all.

Don’t bet against America? Have you tuned in to the public “discourse” in America lately? The neoliberal drivel that passes for debate, the absolute political paralysis, growing inequality, captured policy makers and public institutions by the financial elites whose power is so consolidated that they are so brazen not to even pretend they care if people know of their swindels?

After the elites have completely strip-mined the middle class, they will turn on each other and that will be something to behold.

Globalization has been completely discredited and we will just have to make other plans and the first step is to remove onself from the skimming, parasitic system altogether. I am actually quite glad for every revelation of thievery – it brings us closer to wide-spread realization by the masses what a con this kleptocratic system is.

#130 Keith in Calgary on 04.07.13 at 10:00 pm

“I” didn’t say that I wouldn’t touch income trusts, and then suddenly reverse course…………..

“I” didn’t blow up the Canadian real estate bubble with 40 year “NINJA” loans…………..

“I” didn’t cause the ABCP market to freeze…………..

“I” didn’t bail out our banks by purchasing their mortgages………..

“I” didn’t tell CMHC to underwrite mortgages for anyone with a pulse who could fog a mirror…………..

“I” didn’t buy property during the bubble………..

“I” didn’t………..

“I” didn’t……….

Try again Garth……….if you’re not outraged by all of the above, you’re not paying attention.

I spoke out against, acted against and voted against the income trust theft, 40-year mortgages and CMHC excess. Where were you? — Garth

#131 45north on 04.07.13 at 10:01 pm

TurnerNation: Here’s a small-town example. An area of the same, with published 10-to-15% unemployment rates.

small town being Kawartha Lakes

I suppose that in the best of times the tax base could pay those wages. Maybe. We are talking about a big drop in housing prices like 50% around Kawartha Lakes. The drop means that the tax base cannot pay those wages.

I oppose the Ontario Liberals because of their support of abortion and gay/lesbian lifestyle. They are making a lot of promises. There is no way on God’s earth they can keep them.

#132 souvereigninternational on 04.07.13 at 10:01 pm

#65 KommyKim on 04.07.13 at 7:56 pm wrote:

RE: #31 Paully on 04.07.13 at 6:51 pm
Meanwhile the government creates nothing and wastes my hard earned money.

Oh? What about the roads, bridges, etc, that businesses use as “free” transportation infrastructure?

What about the water lines, sewer lines, etc, that service your business?

What about a skilled and educated workforce? Does business educate children from cradle to adulthood?

No, governments do that. With the tax dollars you are whining about being “wasted”.

-could be done without government in a much more efficient manner. Both of you have simplistic views. We may need some level of organization and cooperation in a society that goes slightly above pure anarchy, that’s all.

#133 Luke Siragusa on 04.07.13 at 10:03 pm

Nowadays, realizing the Canadian dream–house, 2.2 kids, steadfast employment and employer, funded retirement, etc.–is a more precarious proposition so it’s entirely reasonable that it be accompanied by a gloomier disposition.

It’s true: the mass of Canucks floundering amid today’s shifting economics have been exercising the wrong prerogatives. They should be working on their abs.

#134 Toronto_CA on 04.07.13 at 10:03 pm

The Sheeple are sure up in arms about RBC outsourcing a few dozen IT jobs to India. Do the sheep know how common place this is across all industries? That all of the big Canadian banks have services that have been outsourced to other companies/service providers, some of which are in Asia? That RBC is hardly the first and only large profitable Canadian employer to do this? That RBC hires and trains and pays thousands of Canadian citizens?

I worked at Aon, a very large company. We outsourced 20 or so accountants to Bangalore in 2009 from our Montreal office. We brought 3 Indians over to learn the accounts to take back. I trained them on some of the systems. Some people were offered jobs elsewhere at Aon, others were not. Those not given other jobs got severance. Not sure it’s all that different than what happened at RBC except we didn’t get on the CBC and have a resulting media shitstorm.

#135 AisA on 04.07.13 at 10:12 pm

#118 Smoking Man on 04.07.13 at 9:43 pm

You’re welcome.

#136 Yeah Yeah Yeah on 04.07.13 at 10:12 pm

RBC model is perfect. Free market and all that……
The Maple leafs should do it!
Fire the players, but first have them train their replacements to play
Miss the playoffs again……..who cares
Cost savings and the bottomline…..priceless

#137 Sign of the times on 04.07.13 at 10:12 pm

#123 Sign of the times on 04.07.13 at 9:49 pm

RBC replaces Canadian staff with foreign workers

http://www.cbc.ca/news/canada/british-columbia/story/2013/04/05/bc-rbc-foreign-workers.html
———————————————————
Wonder how much Jason Kennedy makes under the table getting in front of the media saying this is “wrong”
then does nothing about it, this is been going on in Canada for awhile.

#138 What to invest in now on 04.07.13 at 10:14 pm

Unfortunately, modern portfolio theory, of which you are an advocate and cheerleader, is no longer the answer either.

Some of it works, some of it doesn’t. I am, however, happy to hear your answer. — Garth

#139 Dean on 04.07.13 at 10:16 pm

Don’t worry everyone! You won’t have anything
to worry about when this http://methane-hydrates.blogspot.ca/2013/04/methane-hydrates.html?m=1 kicks in!!

#140 afraidit allmightend on 04.07.13 at 10:18 pm

Gong bang….neighhhhhhhhhhh…. I know …beating a dead horse right? But c’mon…of course there’s no corporate pensions in Canada any longer……there are no corporations in Canada…….please list the number of Global businesses with head offices in Canada……you right bwana…Canada de third worl toilet of the western world….zippo.

The class war against private citizens was won by the Liberal Party who over a thirty year reign chased the bad private sector out of the country and left nothing but an overburden of civil service blood suckers……

We’ve had a Conservative government for eight years. — Garth

#141 FlounderDigest on 04.07.13 at 10:20 pm

Written in the 1960s, looks like history is proving the truth of this song.

http://youtu.be/GUfS8LyeUyM

#142 Television on 04.07.13 at 10:22 pm

When I see a caption like “Man killed to death” I realize why I threw out my TV.

#143 Alyce in Wonderland on 04.07.13 at 10:24 pm

The ultimate blame is for the governments that made it possible – job outsourcing, protection of wealth at the expense of the middle class and the poor.
NAFTA, GATA: jobs gone.
Unemployment is above 14 presents. Inflation is above 6 presents.
An when your kids with university degree can’t find job it is not your fault.
Just watched Robin Hood, people should not be afraid of their governments, governments should be afraid of their people.

If it was the government that taught you to spell, yes, I’m afraid. — Garth

#144 Fort Mac Flatlander on 04.07.13 at 10:24 pm

#12 In the cold from Toronto
I disagree with you about the social contract still being there. I get the feeling that we are in a world where the rich don’t care for the rest. I call this the new feudal society.

Screw the feudalim mentality. What gives anyone the right to what I have earned. I am charitable, but I choose where it goes and what is done with it.

#145 Alyce in Wonderland on 04.07.13 at 10:26 pm

You have much more to grow Garth in terms of humility and humanity.

I’m crushed, Alyce. Spank me. — Garth

#146 rosie "moving backwards" on 04.07.13 at 10:27 pm

Here ya go doomers. The Dr. is in. http://www.slate.com/articles/business/project_syndicate/2013/04/eurozone_crisis_as_austerity_fatigue_sets_in_the_u_s_economy_looks_pretty.html

#147 Alyce in Wonderland on 04.07.13 at 10:28 pm

RBC replaces Canadian staff with foreign workers
—————————————
It is time to change the bank.

They all do it. Of course. — Garth

#148 Tunacan on 04.07.13 at 10:32 pm

Why darker?

Because people see…

Regulators don’t regulate.
Justice isn’t served.
Law becomes lip service.
Goal posts get moved.

Example: Eric Holder US attorney general states that he won’t prosecute criminal activity at TBTF banks because they are systemically important. WTF?!

Man don’t treat the sniffles…cut the cancer out!

#149 What to invest in now on 04.07.13 at 10:33 pm

Re: “Some of it works, some of it doesn’t. I am, however, happy to hear your answer. — Garth”

On this blog, I am contented, for once, to hear a respectful and humble response. I dare not share more of my thoughts on the subject for fear of being subjected to undeserved ridicule. I will save those thoughts for venues with a track record of respectful discourse and debate.

I guess that’s a no. Thought so. — Garth

#150 Fort Mac Flatlander on 04.07.13 at 10:33 pm

#20 In the cold from Toronto
We need to tax wealth, not just income. Does anybody think that Paris Hilton deserves all of her granpa’s money?

Whether she deserves it or not, gets it or not, it has no effect on your plight. What gives you or any person a right to deny her grandfather his wishes in his last will and testament. Sure she has done nothing of value for society, but he did. Quit b!tching and go out and do something productive.

#151 Ford Prefect on 04.07.13 at 10:34 pm

#95: Mortgagebrokeron: Same here, debt is a four letter word. But to many, too many in fact, it is a three letter word “det”, and to be embraced with enthusiasm, a phenomenon I find impossible to understand. To me debt truly is the Marxist chain that binds.

#152 [email protected] on 04.07.13 at 10:34 pm

Today’s govt and corporations love the current economic situation. They know what to do and how to profit with the current chaos. Its going in a direction that won’t turn around.

#153 St.Ephen Harper on 04.07.13 at 10:34 pm

I’m the same ebullient, charismatic, confident guy, of course, with great abs, nice hair and a balanced portfolio.

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

Sniffle sniffle….hankie elfin deity ….. “honkkkk”

Garth..you have repented…the prodigal son….welcome back…name your price !!! ( Amazons ?=add GST !)

#154 blok existentialist on 04.07.13 at 10:36 pm

If I could reinstate Inspectors of Nuisances as a career choice, I would … and I’d start with RBC.

#155 John in Mtl on 04.07.13 at 10:39 pm

@ #99 Coho on 04.07.13 at 9:00 pm

Couldn’t have said it better myself. Don’t be so surprised Sir Garth, the social contract HAS been broken. Maybe not yet in Canada, but soon coming – its not different here. We have a big bad bully as a close neighbour and we all know what he’s about.
 
 
As JHKunstler has said so eloquently in one of his recent posts, QUOTE ” …the basic operating system of global banking is accounting fraud, and has become that stealthily, insidiously, for about fifteen years now. Nothing is what it appears to be anymore. … What remains are games of musical chairs, Ponzi schemes, frauds, swindles, stonewalls, ruses, ploys, scams, dodges, bluffs, subterfuges, QE martingales, interventions, rehypothecations, pretenses and other modes of evading or disguising reality. The reality is that there is not enough real wealth to go around, certainly not enough to cover the giant web of obligations that masquerades as “money.”

And one of the latest statements that has been said a while ago : “… the Justice Department has decided that holding top Wall Street executives criminally accountable is too difficult a task.”

Talk about justice and social contracts.

I’m decently “well off” and generally a “down-to-earth” kind of guy and what I see, hear and read does have me worried a bit. Not a doomer but its obvious something is very very wrong with the way our human affairs are running in this world. Or should I say, presently ruining this world.

John

#156 Tom Vu on 04.07.13 at 10:43 pm

#33 Old Man on 04.07.13 at 6:51 pm

The greatest dark drama that I have ever seen in my life on stage made the playwrite $millions, and sent him an email with my interpretation and he said I nailed it bigtime. Now how can some plays on stage be so emotional with just two people, as it was a dark drama beyond the pale.

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

What is problem?

I loved BOOGIE NIGHTS.

I was Wahlbergs stunt double .

#157 Mister Obvious on 04.07.13 at 10:47 pm

#144 Alyce in Wonderland

“You have much more to grow Garth in terms of humility and humanity.”

———————————

Take some time to research the record of Garth’s service to the Canadian public before you make such ignorant statements.

You really are in Wonderland, Alyce.

#158 Dust in the wind on 04.07.13 at 10:48 pm

Interesting approach – blame the people for being born in the wrong time.

#159 souvereigninternational on 04.07.13 at 10:50 pm

Casey is a nutbar. Anyone not voting empowers those who oppress. — Garth

Dare I mention:

Martin Armstrong,

Kyle Bass,

Ron Paul,

Peter Shiff

Tyler Durden – Zero Hedge

Alex Jones

Simon Black – Sovereign Man

Nicole Foss -Automatic Earth

Egon von Greyerz

Max Kaiser

sorry I forgot one…

…Garth Turner.

#160 Fort Mac Flatlander on 04.07.13 at 10:50 pm

#58 Spiltbongwater
I am buying fuel for the tractor. I have 50 tonnes of it in the barn, and will continue to increase my stake. When the SHTF in the next few years, I can trade the fuel for money. If the money is worthless, I will have to barter with the fuel. I only pray when the S does HTF, that people will still see the value in driving a tractor, and not revert to some mennonite way of life. Oh ya, I have guns to help protect my fuel stockpile.

Make sure you use fuel stabalizer. Even with it fuel will only be good for about a year with the moisture entrapment.

#161 Al Bundy on 04.07.13 at 10:53 pm

I smell an opportunity – if RBC shares tank in the next few days, I’ll be buying. People have a short term memory and will forget all about this foreign worker fiasco come Friday.

#162 Retired WI Boomer on 04.07.13 at 10:56 pm

#893 AisA

Good post. Here’s one more for ya….

Ecclesiastes 10:19 NIV

“A feast is made for laughter, and wine makes life merry, but money is the answer for everything”

Hey….I’m just quoting here….

#163 T.O. Bubble Boy on 04.07.13 at 10:58 pm

Watch out Canadian Baristas… your jobs may soon be filled by “temporary” workers too:
http://www.vancouverdesi.com/business/starbucks-to-open-outlets-in-more-indian-cities/532337/

#164 [email protected] on 04.07.13 at 10:59 pm

I would guess the postings here lead me to believe it is mostly male dominated?

#165 Bubu on 04.07.13 at 11:02 pm

Yes, many folks have been living in the dark lately, but the good part of that is, that we are adjusting and are beginning to see in the dark.
It could be a bit more difficult for those that are still dwelling in the bright blinding light to adjust to the dark.
Just saying!

#166 The Prophet Elijah on 04.07.13 at 11:05 pm

Anti-bank. Anti-government and politicians. Anti-corporations, anti-wealthy. Anti-America. Anti-public worker. Mistrustful, suspicious, wary and aloof.
———————————————————-
This summed me up after seeing the documentary Inside Job.

#167 Dr. Hoof-Hearted on 04.07.13 at 11:09 pm

What many people DO NOT get is that globally, the Middle Class has a big ” Bulls Eye ” on its back.

Once you get rid of the middle class..you are back to the 2- tier feudal system.

Politicians ?

OMG

……..don’t ewe get it ….yet ?

#168 panhead on 04.07.13 at 11:11 pm

The sun will be up in the morning again tomorrow as always …

#169 Charles Ponzi on 04.07.13 at 11:12 pm

People should be angry. Anger is a normal and helpful response to political corruption and predatory banking policies!!!

#170 M on 04.07.13 at 11:18 pm

Garth,

We apologize if we upset you with our negativity. You have to remember though… that may we be as we are – your readers – we are also the smartest by comparison with the rest of the “vulgus”. Some came here because what they saw matched what they thought – the preaching to the choir factor.
Others, very few and far in between, saw the light – no one is a prophet in his own country…says the good book.
Be as it may, no matter how upset you are with us , your readers, we still love you, so please continue to do what you do best.

And bring some more photo babes mano ! :)

#171 :):( Ying Yang on 04.07.13 at 11:35 pm

#93 Smoking Man

If you went to school you would know a basic rule. The law of conservation of energy, first formulated in the nineteenth century, is a law of physics. It states that the total amount of energy in an isolated system remains constant over time. The total energy is said to be conserved over time. For an isolated system, this law means that energy can change its location within the system, and that it can change form within the system, for instance chemical energy can become kinetic energy, but that energy can be neither created nor destroyed.
But please continue on this floating island story could get real crazy and keep my attention.

#172 Dean Mason on 04.07.13 at 11:37 pm

To Oceanside #116 and In the cold from Toronto #20
I agree with you Oceanside #116 because first they start with a higher figure say 5 million and than it’s 3 million and than it’s 1 million and of coarse that figure is never adjusted for inflation like the alternative minimum tax for decades.

Taxing wealth is taxing or confiscated wealth on money you already paid taxes. You pay income taxes, sales taxes,gas taxes,property taxes,land transfer taxes etc on the same money you earned or from your income.
If they don’t like people having money just take it away by a law saying you can’t save money so we know that they are socialists.They are cowards hiding behind their sneaky ideas after they get in power.

I have an idea,penalize and tax irresponsible people not savers,regular investors and people who don’t want to get into excessive debt and live off of others. Tax the excessive part of public sector pensions promised by governments.An extra 55% pension excess tax on all public sector pensions over $20,000 a year. The C.P.P. and old age pensions are excluded. Tax benefit packages that are paid to public sector workers on all their benefits life insurance,medical,heath care,sick days paid,dental etc. while working and at retirement at say 25% first $10,000 and 45% on everything over $10,000. Tax excessive debt like mortgages,lines of credit,home equity loans,credit cards,car loans etc. that exceed say $4,000 a month at 40% tax rate. Tax bankruptcies over say $5,000 at 50% on all amounts.

You see they all like taxing something that they do not have a major stake in like RRSP’s that can be taxed as high as 55%,interest income,dividend income, business income etc. Politicians should also be subject to the taxes I said above.

I can think of taxes too in the cold from Toronto but these taxes are for the false promises that public sector workers get and we taxpayers are paying for. The money I saved or pass on to whom ever I choose is money I already paid taxes at least 5 or 6 times. Start earning your own money and stop trying to steal mine.

#173 Smartalox on 04.07.13 at 11:41 pm

The social contract may not have failed, but I think that it is mightily corroded. It’s the difference between partners in a contract that work together, for mutual benefit, and those that pick apart the language of the contract to minimize what they owe, and maximize what they are due, like success is a zero-sum game.

There are those that seem to think:
1) that if they are to succeed, someone else MUST fail.
2) failure is to be feared, and avoided at all costs.
3) if you DO fail, it is through no fault of your own or bad luck on your part. Surely you were cheated, or treated unjustly.
4) Don’t demand justice, demand compensation.

This is the same thought process regardless if you are a wealthy finance executive, who demands a bail-out for betting poorly on investments you didn’t understand, a worker who bet their pension on a single asset class and failed to diversify, a student who invested in a degree in lieu of employable skills, or someone who relies on the social safety net or survival.

Ironically, it was the social contract that inspired this kind of behavior: the idea that nobody could ever lose anymore, there was no downside risk if you made a mistake, because there was some government agency, or some other organization that would look out for you is implied by the social contract.

Social contracts only work if people believe that they stand to benefit from them. If the benefit is perceived to be unavailable, or “not worth it”, they lose faith in the contract. Once that happens, the social order degenerates into a free-for-all.

#174 Tron on 04.07.13 at 11:57 pm

Casey is a nutbar. Anyone not voting empowers those who oppress. — Garth

I’ve met Doug Casey and have read his stuff. He’s a very bright guy, he lives his life fearlessly and sees things for how they are. His opinions are not mainstream, he has zero trust in government and makes very compelling and intelligent arguments to support his beliefs.

Like a good portfolio, I try to have a balanced approach toward opinions.

#175 Cory on 04.07.13 at 11:57 pm

Trust the banks? Ya right! Try to pull out a 1/4 million in cash of your own money and see how far you get with that. We want a full report.

#176 From Calgary on 04.07.13 at 11:58 pm

Here is question.
5 year fixed at 2.79
or
10 year fixed at 3.69

Please suggest guys! Have to decide by tomorrow.

#177 Canadian_Leave_it_to_Beaver on 04.07.13 at 11:59 pm

The writing has been on the wall for a long long time.
“The Great Western Pimp Out”. 12K homes- just a blip in time ago.

#178 Waterloo Resident on 04.08.13 at 12:02 am

The reason why so many people here are ‘ANTI-everything’ is because this blog tends to attract the ‘PESSIMISTS’ in society, that’s all.

#179 Crash Calaway on 04.08.13 at 12:04 am

Jeez… maybe Garth’s gonna run for government again.
Offering advice for people to embrace risk.
Offering a 10 point check list for those buying real estate.
Cheer leading and warm fuzzies about how great and protected our vile corrupt Canadian system is.

People have good reason to be mistrustful of the cesspool built and rigged by Ottawa, Banks and Real Estate.

#180 kreditanstalt on 04.08.13 at 12:04 am

“To be financially secure in a changed world, Canadians have to rethink home ownership, learn to invest, fear debt and embrace more risk.”

Hmmm…didn’t you just tell everyone to stick to the most conservative, risk-avoidance preferred shares? And REITs?

Or maybe they’re risky too.

#181 None on 04.08.13 at 12:09 am

Embrace more risk? Did you just tell me to buy a condo?

#182 hobbygirl on 04.08.13 at 12:10 am

I am a librarian and require a degree to do that job Garth!

Info technology has exploded and skilled librarians are needed to sort through it all. Google is the junk food of information searching and full of biased crap, if you need the right answer ask a librarian who will direct you to high quality aggregate and peer reviewed databases. Libraries pay big bucks for this kind of info…Google is free but you get what you pay for.

PS: there’s a labour shortage of librarians, great pay too…look it up

#183 T.O. Bubble Boy on 04.08.13 at 12:10 am

I found 2 completely different sources for the “number of millionaires” stats:

A report from Boston Consulting Group (BCG), which states that there were 185,000 millionaire households in Canada in 2011:
http://www.huffingtonpost.ca/2012/06/12/countries-with-most-millionaires_n_1590824.html
https://www.bcgperspectives.com/Images/BCG_The_Battle_to_Regain_Strength_May_2012_tcm80-106998.pdf

Then, there are news articles these from CBC and Canada.com, which both quote a 2008 Statscan report saying that there were 1.1 million millionaire families in 2005:
http://www.cbc.ca/news/story/2008/06/23/wealth-statscan.html
http://www.canada.com/windsorstar/news/business/story.html?id=312786cd-ccd1-4c0a-82fe-f8ce33ef9140
http://www.statcan.gc.ca/pub/75-001-x/2008106/article/10640-eng.htm#millionaire

Garth? Anyone? How did 1.1M millionaire families in 2005 become 185,000 in 2011? Obviously, Statscan and BCG use different calculations here – but how can they be so different?

(unless RIM used to employ 900,000 people or something)

Investable assets, not real estate. — Garth

#184 Victoria Tea Party on 04.08.13 at 12:11 am

“EUROPE’S LAST SUMMER”

St. Garth of Wagon-Ho!, I offer, herewith, a quiz.

GUESS WHAT YEAR

the following behaviours occurred on Mother Earth?

“ ‘ (a)…law-abiding Englishman could pass through life and hardly know the existence of the state.’ …You could live anywhere you liked and as you liked…For the most part you needed no passports, and many had none…you could take any amount of currency with you when you travelled…your bank did not report it to the government…”

The year? 1914, just weeks before the outbreak of World War One, when the world’s roof fell in!

What has this trivia question got to do with Garth’s column of this date?

Simple.

Everything, if you’ve studied that pre-war history, focussing on the insane human behaviour, by the Germans specifically, who knew, by their actions, that their empirical dreams would crush them in the end, which they did.

So, Garth, noting the world’s fateful economic decisions rendered since 2008, and using pre-WW1 nuttiness as a comparative template, your latest offering is not some dashed-off Sunday night “OMG what’ll I heave out the door tonight to keep ‘em down on the farm?” column.

Nope.

This is YOUR Blog’s “Gettysburg Address” plain and simple.

It is addressed to us all but most especially to the addled masses, various of other waifs and waifettes, and the endlessly-lost troubadors of trifling fiscal turpitudes, who plunder your blog daily praying for glimmers of economic hopes and dreams as they realize that their 165 percent “solution” ain’t solutioning!

People dwelling under the circumstances, you so ably describe, have been in denial and depressed. Now they are starting to get angry and, eventually, they will meander all the way down to Hopelessville (others will man the barricades).

Why? Well, dammit, why not?

This so-called recovery isn’t.

It is STILL a slow unwinding of decades of outrageous debts, living beyond ones’ means (include countries here), which has evolved into such a “space” that the only hope for a decent fiscal future is to invest in stock markets whose prices are held aloft in a macabre “money-printing” musical chairs routine.

We all know that the music will stop.

It’s the WHEN that has us in such knots. We’re not stupid.

Sure, profits are huge and the new workplace is still “working itself out” if you’ll pardon my humour.

BTW

while I’m shifting my attention over to jobs: just who will be working at what and how many, exactly, will be hired to do so? What’ll happen to the rest-of-em who do not get work?

This isn’t the recovery of 1982. This is different. It’s 2013.

MEANWHILE, AND WITH REAL ESTATE NOW

New out of Asia overnight shows that China now demands that its citizens wanting to buy second houses must NOW HAVE DOWN PAYMENTS TOTALLING 70 PER CENT of the purchase price! Not 5; 70! China’s economy, ergo, is in big trouble. Bolstering that fact is the new and precipitous decline of the Baltic Dry (shipping) Index and recent American jobless numbers (horrible).

And now Canada.

What the Hell!

Oh, yes.

Back to 1914 and “Europe’s Last Summer”. That is the title of an excellent book on the beginnings of World War One and WHY (the Germans were to blame! And look where they are now! On the cusp again?).

Authored by American historian David Fromkin, it is a barn-burner and reminds me of the world’s recent financial “Sarajevo Moment”, 2008.

And, as with the “Guns of August” 1914, things continue to unwind as they must, BUT at a pace over which we have NO control, and Christmas is a long way off! Not home by then!

#185 Nemesis on 04.08.13 at 12:12 am

@SignOfTheTimes#122

http://youtu.be/_wR3LhFlgGo

#186 Basil Fawlty on 04.08.13 at 12:20 am

“The way so many folks here believed Canada was preparing laws to steal bank deposits, like in Cyprus, was ample evidence.”

So what does it mean? Why were these articles in the 2013 budget?

#187 Frustrated Kiwi on 04.08.13 at 12:20 am

I think you are right that this blog is darker (or at least that we on its comment section are). But the stock market seems to be more volatile (yes, I know that creates opportunities but it’s also “scary”) and now we look to have more people borrowing to invest:
http://finance.yahoo.com/blogs/daily-ticker/stock-market-debt-fueled-bubble-steve-keen-121950839.html
as well as all those way out on a limb on real estate.
It doesn’t exactly give one the warm fuzzies. All I’d say is, keep up the good work warning of the risks we should stay focused on!

#188 NoOneOfConsequence on 04.08.13 at 12:24 am

So…I’m looking at bank preferreds…I don’t get how you are supposed to see a return better than 2.4%.

Sure…they state that the return is 4.5%, with a coupon of $25.00.

Problem is that any good ones are trading at $27.50 each! With maturity dates only a couple years off…what happens if the bank decides to buy them back?…You lose $2.50 per share!

Am I missing something here? I dont see any ‘new’ bank preferreds at the moment….so I can’t buy in at $25.00 per share….what gives?

#189 Zorro on 04.08.13 at 12:25 am

“Increasingly, people are (1) anti-markets. (2) Anti-bank. (3) Anti-government and (4) politicians. (5) Anti-corporations, (6) anti-wealthy. (7) Anti-America. (8) Anti-public worker.”

Hi Garth, There you go: Eight individual topics for eight Greater Fool blog posts on why people should be “pro-” each of the above. I’m sure an interesting, balanced discussion would emerge. What do you think? :-)

#190 Musty Basement Dweller Wannabe on 04.08.13 at 12:25 am

141 afraidit allmightend on 04.07.13 at 10:18 pm Gong bang….neighhhhhhhhhhh…. I know …beating a dead horse right?
–LMFAO–!! thanks for making my day.

and Garth, I have nice abs too, somewhere down there although no one can see them right now. I hope all the negativity on here isn’t getting to you. It must be hard going through hundreds of these every day. But then again you get to take your shots back like Don Rickles so hopefully that is good therapy for you.

Thanks for all of the enjoyment over the last years.

#191 Basil Fawlty on 04.08.13 at 12:28 am

“Casey is a nutbar. Anyone not voting empowers those who oppress. — Garth’
You mean like Canada in Afghanistan , or Mali? I voted, but not for that insanity. Exactly, who would one be empowering, by not voting?

#192 DonDWest on 04.08.13 at 12:39 am

The middle class will only return to its once former glory the day people learn that freedom is neither:

A) a right
B) given
C) taxed/bought
D) elected
E) discussed
F) earned

If you want freedom you’re going to have to TAKE IT! Or more accurately in our present case, TAKE IT BACK! Don’t beleive me? You need to study your history. REAL history, not the political correctness fuzzy stuff they teach about democracy and “how we defeated the evilllll Hitler” in our pathetic schools.

#193 detalumis on 04.08.13 at 12:39 am

#116 All banks outsource IT along with other companies like Canadian Tire and Loblaws. RBC has outsourced to iGate for over 7 years. The RBC HR VP is a highly experienced liar. She makes it sound like forcing people into early retirement and not hiring Canadian replacements is a success story.

When you do this you have removed job opportunities from the young graduates as well as income taxes. There is no way to fund 100K coppers and 80 and 90k teachers and nurses without good paying private sector jobs. The current crop of corporate leaders are very much like the American MBA 1990 types – all about – me, myself, and I.

#194 Van guy on 04.08.13 at 12:44 am

#21 Toromierda on 04.07.13 at 6:28 pm
Garth,

You’ve mentioned a couple times of an upcoming market correction, most recently on your April 2 post. Care to elaborate on this?

I don’t feel like loading into a market just before everyone else decides to ‘Sell in May and walk away’ to spend the summer in their mansions by the sea while the rest of us suckers get hit with a 20% loss.

I highly doubt a correction of that size. — Garth
————————————————–

Not according to this guy,

http://www.businessinsider.com/stock-market-crash-2013-2?op=1

This guy has a great point, I think his words should be considered listening too.

#195 Tom from Mississauga on 04.08.13 at 1:02 am

Accounting is a dying profession as well. The software IBM and Oracle has out is very displacing. Entry positions are tougher to find. Just look how easy it is to file your own tax return online now. CGA’s can start at 50K now. Barely worth the education it took.

#196 Crash Calaway on 04.08.13 at 1:14 am

Investing in real estate means we probably at best are going to eat balogna or at worst pet food for the rest of our lives.

Investing in the market = buying Salmonella Sandwiches at great prices.
As long as no one complains about the poisoning the game goes on.
And when the poisoning begins it is always the embracing risk taker on the last rung on the ladder.
The shady sandwich preppers & deliverers are always taken care of first when the scams head south while the risk taking fools, hypnotized by promises of guaranteed protection and other meaningless hype always get burned.

Is there a best rigged casino with a hook to hang your hat
Invest?
Why not divest.
Why not divest from the capital investment systems that are broken and will never return to sane levels.
Instead of more more more to maintain an illusionary pipe dream into post retirement would it be more realistic to recreate a new model for our own lives. Something we can manage without the need for hucksters and casinos.
A model that requires less?
Getting rid of debt,
downsizing the materialistic castle and the expectations that a coronation awaits at journey’s end.
People should learn to trust in themselves again by removing the shackles that bind them to external investments contrived by the system’s bogus map sellers that leave their prey stranded or screwed.

How much of a pile is really necessary?
Will there ever be enough?
What price do we put on our soul?

#197 Small Town Steve on 04.08.13 at 1:34 am

RE: #31 Paully on 04.07.13 at 6:51 pm
Meanwhile the government creates nothing and wastes my hard earned money.

Oh? What about the roads, bridges, etc, that businesses use as “free” transportation infrastructure?

What about the water lines, sewer lines, etc, that service your business?

What about a skilled and educated workforce? Does business educate children from cradle to adulthood?

No, governments do that. With the tax dollars you are whining about being “wasted”.
——————————————————————-
Ya public education has done wonders all right. 70% of university grads today could not pass the final exam for what was required to get your grade 6 in the 1800′s.

The only moral roll of government is the enforcement of individual rights. Police,courts, and military. Every single “free road” or other public works could be done more efficiently and better in a free market. Especially the damn post office with their “lets go on strike right before Christmas every 2 freeking years!!” CBC? What a bloody joke! And we all pay over a billion a year for the pleasure of watching useless crap that no one in their right mind would ever pay for!! Very nice of the government to Nannie state into legislation no American unauthorized satellite systems in the late 90s. (Not enough canadian content). Excuse me but if I want to buy and watch an American system I should be able to!! We either have property rights and can do what we want with our own damn money or we are living as defacto slaves! So much for free trade…

You get the government you DESERVE!

#198 Alberta Ed on 04.08.13 at 1:35 am

Many other Canadian companies than RBC have out-sourced IT functions.

#199 Soylent Green is People on 04.08.13 at 1:41 am

2/3 of Canadians believe Harper’s CONS are too secretive and have failed to govern with high ethical standards, a new poll has found. While he maintains support from his base of idiot supporters, there is increasing public fatigue about the way he’s trashing the country.

http://www.canada.com/Secrecy+ethics+cast+dark+cloud+Stephen+Harper+government+poll/8208237/story.html#ixzz2PqB6KLiu

O
O
O

#200 Zorik on 04.08.13 at 1:43 am

Garth i will vote for you
Communist Fashist and Femenist system must fall in Canada.
Zorik from zombiland

#201 Soylent Green is People on 04.08.13 at 1:46 am

“Hope has two beautiful daughters; their names are Anger and Courage. Anger at the way things are, and Courage to see that they do not remain as they are.”

― Augustine of Hippo

#202 NoName on 04.08.13 at 2:00 am

@87 mr-b You got that wrong…

Romans 13-1
“Everyone must submit himself to the governing autorithies,”…
“Consequently, he who rebels against the authority is rebeling against what God has instituted,”…
“This is also why you pay taxes, for the authorities are God’s servants, who give their full time to governing.”

It is in big book my friends… Pay taxes and $%@&* up.

#203 David McDonald on 04.08.13 at 2:08 am

Intelligent people believe in the strangest things; creationism, aliens … a real estate crash can’t happen here. It’s a wonder Canadian society functions at all but it does pretty well. It is unfortunate that strange ideas lead people to make bad choices (hoarding gasoline?) but it may also lead to inspired insight. The key thing is diversity of opinions and the right to express them. As long as we have that our society will self correct over time and we won’t have revolutions.
Garth is indeed seeing a cross section of the strange ideas that are common across Canada. It is also true we may be on the edge of societal change. The conservative revolution of Thatcher and Reagan has generated its own contradiction in the form of extreme disparity. Change will come but hopefully slowly.

#204 Joe on 04.08.13 at 2:11 am

US Bureau of Labour Stastics has 90 million employable Americans unemployed not including the 11+ million eligible for benifits.

#205 Jane24 on 04.08.13 at 2:26 am

Gosh a busy day here, lots of hot points touched on I guess.

Garth are you sure that there are only 200m millionaires in Canada as I would have through anyone with a paid-off house in good hoods in Vancouver, Victoria and TO would be in that class. Looks low to me especially with the average age being so high.

When you say that average debt is 165% of yearly income does that include mortgages because if so ,not so bad?

Number 9 – very true that making management do its own admin saves no money. I spent two days last week photocopying and on my salary that was very expensive photocopying. Plus an admin would have been able to work the machine properly!!

All this is why no-one votes Garth, people feel so disengaged with a system which is working against them that they just switch off.

The reality is that if the 98.5% of the population who are not millionaires got off their collective butts and voted, things would be very different. My kids are all in their 20′s and 30′s but they are unique amongst their friends in always using their vote.

#206 Jane24 on 04.08.13 at 2:31 am

Plus a key point to these comments is that Canada and the Western world is falling into two camps. Public servants who have it all and non-public service employers and employees who pay the taxes for the first group to have it all but have nothing left for themselves.

This is the nuts of the current inequality and much of the anger and I am a public servant.

A system where 50% of the population pays for the other 50% to exist makes no financial sense.

#207 KWT800 on 04.08.13 at 3:17 am

I stopped reading the blog for awhile couldn’t take reading what will happen in the future. I don’t own a house and don’t plan to. I’am a later Gen Xer it doesn’t look too optimistic for us. Sure I have a steady job but I want a career change it isn’t going to happen the jobs are not out there. I’am lucky to have a job my construction industry friends are out of work. I’am trying to enjoy life now while I have the chance to do so.

Baby boomer generation is on freedom 95 they can’t stop working they don’t have any money.

What has been said in the blog posts is happening where I live. People have under water mortgages the property values are falling quickly. The number of underwater mortages is kept quiet so it doesn’t spook the local economy which is barely hanging on.

Turn a local economy into selling realestate and pretty much nothing else the effects are being seen now. Many people are employed in the construction industry that are currently un-employed. New construction is non existant nobody is buying new homes. I have many friends in the construction industry that are worried about their lively hood and future. They have families to feed and bills to pay no work to very little work.

Life was good people thought things would keep rolling on so they bought themselves a new house. Got themselves deep into mortgage debt. Life isn’t so good currently the money is drying up these people are close to claiming bankrupt. These are the working class people with a family, the though of good employment and easy access to credit sealed their future of years of financial pain.

The second group is the “Boomer” generation that had to buy the big and fancy house to boost their ego. To say to their friends look at what I bought. The boomers are facing the big “fancy” house is losing value fast. Oh really if we sell our house now we will take a 200,000 dollar loss. Ah isn’t that a shame may be you should have took common sense with you realestate shopping.

Contractors loved the boomers the contractors could ask any price the boomers paid it. What boomers wanted they got at double and tripple the price. Realtors loved the boomers the dream came true people with unlimited money. Boomers wanted big fancy new and trendy nothing was going to get in their way. The boomers had wads of cash they loved flaunting it.

What goes up has to come down it is coming down the price of realestate rumored to fall for the next 10 years. Sure hate to see the young families that sunk themselves into mortgage debt suffer. Many of them wanted a house it could complete the puzzle. Many of them are now realizing it is cheaper to “rent” a house. Too late the house they own will sell for a loss no question.

The boomer group will get everything they deserve. Were very greedy during the peak housing boom they were the me me me the world revolves around me pompous. Karma is coming for them when the retirement funds dry up and they are working in the grocery stores with one hand on their walker the other hand stocking shelves.

I had the want for a house just like the rest of them until I stumbled across this blog couple years ago. I love my freedom no house payments no house repairs.

All I can say to my fellow Gen X friends is enjoy life now it is good as its going to get.

#208 Humpty Dumpty on 04.08.13 at 4:07 am

Perhaps this may help in understanding several individuals attitudes G…

50 Common Cognitive Distortions
A giant list of ubiquitous cognitive distortions.

Becoming mindful of these common cognitive distortions will help you understand yourself and other people better, and improve your decision making.

1. Personalizing.

Taking something personally that may not be personal. Seeing events as consequences of your actions when there are other possibilities. For example, believing someone’s brusque tone must be because they’re irritated with you. (Tips for not personalizing.)

2. Mindreading. Guessing what someone else is thinking, when they may not be thinking that.

3. Negative predictions.

Overestimating the likelihood that an action will have a negative outcome.

4. Underestimating coping ability.

Underestimating your ability cope with negative events.

5. Catastrophizing.

Thinking of unpleasant events as catastrophes.

http://www.psychologytoday.com/blog/in-practice/201301/50-common-cognitive-distortions

#209 drydock on 04.08.13 at 5:46 am

Ebullient? charismatic? , you look like a hitman from an episode of Castle.

#210 EIT on 04.08.13 at 6:47 am

Its all about the corruption. Seriously Garth, you’ve never been offered a bribe, someone beating around the bush ever so gently? Just look at Quebec’s scandal, not too long ago. People don’t do things just for the good of mankind, not everybody is like u Garth.

#211 maxx on 04.08.13 at 7:16 am

#12 In the cold from Toronto on 04.07.13 at 6:15 pm

Excellent post, really resonates.

“People are scared and tired”. Bulls eye. We all know what happens with money when it gets scared, and is it scared now- at the individual level as well as FI level. Watch what happens going forward.
As for “tired”, well that can stall buying and investing decisions forever.

I wish I could feel optimistic about our economic future, but the last decade cured me of that.
- unbridled corporate accounting creativity and opacity;
- ripping off employees jobs, salaries and as we’ve often seen, savings;
- outrageously unhealthy upper-level salaries and bonuses;
-corporate lobbyists dictating to governments we pay taxes to;
- government enabling corporate schemes to spin money in fiscally unhealthy ways, convinced that this will provide more tax money faster- it did, temporarily, but at a cost that will continue to reveal itself over the next decade and beyond;
- government consistently fire-hosing tax revenue into banks coffers so that they continue lending at the same pace by way of people making irretrievably stupid financial decisions- wow, what a sick economy that produced.

And now, with cut after cut after cut, horrendous cases of waiting in pain for seriously necessary surgery, and shrinking social programs you somehow expect taxpayers to feel the love? Quelle farce!

I’m not anti anything except purposeful and rank stupidity which harms innocent people. Government needs to start looking to cut from within, beginning with gold-embossed business cards, 5-star hotel upgrades, and useless vanity projects that serve only to gloss over the misery which increases on a daily basis.

How to strengthen the country’s fiscal backbone? Find the balance between rich and poor by raising rates slowly and consistently. Then some of that fear and fatigue might melt away and spending resume.

Faith, trust and optimism develop over time….no quick fix here.

#212 maxx on 04.08.13 at 7:24 am

#12 In the cold from Toronto on 04.07.13 at 6:15 pm

“…you somehow expect taxpayers to feel the love?”

Not you, In the cold- this is refers to those who collectively scratch their heads at the prevalent lack of optimism.

#213 Sparky55 on 04.08.13 at 7:39 am

#98 Smoking Man on 04.07.13 at 8:57 pm

Disturbing reading post here, have any of you ever had a lemon aid stand as kid…the trill of all those nickels in the jar. Where you all just your brothers bitch going to the kitchen a fetching more water for your brother and he gave you a few nickels for being his bitch..

Where are the entrapunors?
_____________________________
The entrepreneurs get wrapped in red tape, bureaucracy, legal fees, protectionism, over seas competition (ie non-level playing fields), pushing most away…

Starting with lemonade stands:

http://www.forbes.com/sites/erikkain/2011/08/03/the-inexplicable-war-on-lemonade-stands/

#214 Onthesidelines on 04.08.13 at 7:44 am

“Increasingly…. anti-markets. Anti-bank. Anti-government and politicians. Anti-corporations, anti-wealthy. Anti-America. Anti-public worker. Mistrustful, suspicious, wary and aloof. ”

Considering what’s going on in the world, most of that makes sense to me, especially the mistrustful, suspicious and wary part.

#215 Randman on 04.08.13 at 7:47 am

Re: today’s posting

I can’t complain
But sometimes I still do

Joe Walsh

#216 Herb on 04.08.13 at 8:23 am

If comments are depressing, is it because there is something wrong with the commenters (“endogenic” depression), or because commenters are reacting to circumstances (“reactive” depression)? Do people have reason to be suspicious, sceptical, and concerned? Yep, and hearing that RBC’s outsourcing is general practice – possibly enabled by government, to boot – is fuel for the fire. What other horrors are flying below the public’s radar?

If the middle class is disappearing, is it because they individually made bad decisions, or because they were misled by marketing and decimated by corporate greed? Jobs disappear to increase “shareholder value”, but is this “shareholder value” more than the green curtain behind which the Great God Marketplace can work his magic? For the benefit of the little old lady in tennis shoes, of course, but who are the shareholders who benefit the most?

The dark side of “digital democracy” is that everyone can explore and express themselves to their heart’s content. Which also happens to be its bright side. The fact that there are 210 comments in 12 hours says something in itself.

#217 Kevin on 04.08.13 at 8:36 am

@In the cold from Toronto (#20):

“Does anybody think that Paris Hilton deserves all of her granpa’s money?”

Well, her grandpa does, and that’s all that really matters. It’s still a free country and it’s his money, he can give it to whomever it wants.

#218 Kevin on 04.08.13 at 9:05 am

@Casual Observer (#51):

“I wouldn’t worry about insured deposits being confiscated. Our entire financial system in this country is built on confidence, and it’s hard to imagine what would do more to destroy that confidence, than confiscating insured deposits. Why do that when they could just print the money to cover insured deposits?”

Because that’s exactly what the US government did (via several rounds of Quantitative Easing), and people were quite angry about it. Taxpayers deeply resented that the government was willing to fire up the printing presses to bail out “too big to fail” banks, but not underwater homeowners. That left the government scrambling to come up with expensive programs to create the appearance that they were going to help homeowners, too, but the damage had been done.

The Canadian government is trying to avoid having to bail out “too big to fail” banks by making it clear to the banks that if the stuff hits the fan, they’re on their own, and thus need to implement their own safety net (“bail-in” programs), rather than expecting the government to shower them with cash and inflate away the problem.

#219 The real Kip on 04.08.13 at 9:05 am

Don’t worry, be happy!

#220 Stoopid Idiot on 04.08.13 at 9:06 am

The productive element of any healthy country is its middle class. The engineers, the small business owners, the welders, the architects, the scientists, the carpenters, the doctors, software developers….. you get the picture…. This is the class that’s going to be crushed as we head into the final deflationary washout and the following development of cost push inflation. Make no mistake this is what you are facing. There will be no nirvana as promised by the paper magicians. There is only a price to pay. You were given as clear a signal as they will give you on Friday….you had better listen. Their path was laid out in Cyprus and as their own operatives have said publicly THAT is the template they will follow….gl

http://kliguy38depression2news.blogspot.com/

#221 Herethere on 04.08.13 at 9:14 am

Relax! The glass is half full! The fat gentleman has sung. A casino is the salvation! Will provide so many well paying jobs, that public and private “sunshine lists” will increase exponentional. Besides, people on the know, specially the ones that speak using more than seven syllables words, assure us that we are adequately provided with proctologists and enough ointment, at hand, to attend any remote occurrence of any painfully situation. Now or in the future. Yup, told you, the glass is half full. And, don’t worry, the powers to be, don’t even remotelly think, that you belong to the select group of “every minute one is born.”

#222 jess on 04.08.13 at 9:16 am

small town steve…is this your source?

http://www.sourcewatch.org/index.php?title=Peter_Peterson

Blackstone owned the Financial Guaranty Insurance Company (FGIC), the world’s fourth largest bond issuer, which had branched out from municipal bonds into home-equity securities and subprime mortgage debt.[12] FGIC, of course, went belly up, but by that time Peterson had sold most of his shares in a Blackstone IPO in 2007 on the eve of a catastrophic meltdown –

Peterson Constantly Warns of Crisis, But Failed to Warn of the 2008 Wall Street MeltdownFor decades, Peterson has been warning of a “Pearl Harbor scenario,”[11] an epic meltdown of the United States economy caused by “entitlement” spending, specifically on Social Security and Medicare, which are better described as “earned benefit programs,” since workers save for them with every paycheck. But Peterson failed to warn the public about the $8 trillion housing bubble and the financial crisis brewing on Wall Street.

Blackstone owned the Financial Guaranty Insurance Company (FGIC), the world’s fourth largest bond issuer, which had branched out from municipal bonds into home-equity securities and subprime mortgage debt.[12] FGIC, of course, went belly up, but by that time Peterson had sold most of his shares in a Blackstone IPO in 2007 on the eve of a catastrophic meltdown — not caused by deficits, Social Security, or Medicare, but by recklessness, Wall Street gambling, and greed.

#223 CrowdedElevatorfartz on 04.08.13 at 9:23 am

Hmmmm, our mood has become darker.
Could it be that we (Mr and Mrs Front Porch)have finally come to realize that 95% of politicians are self serving liars.
Or possibly that 95% of Canadian corporations dont give a sh*t about us ( Thank you RBC for confirming what I have always thought about you).
Or perhaps that investing has become a retirement crapshoot for 95% of “investors” because we have to trust advisors that are one evolutionary ladder above realtors in the bullshit dept?
Or that the Canadian “justice” system is the laughing stock of the free world.
Or that our immigration policies are “toothless( please see RBC reference above)

Could THAT be why we are in such a dark mood?

#224 The American on 04.08.13 at 9:44 am

At #45: AK, wow, you’ve no idea what you’re talking about LMAO. American wages lower than India? Well, if that’s the case, than Canadian wages must be bottom of the barrel. Fact is, American wages are roughly 10-12% HIGHER than Canadian wages for the same work. The reason the jobs are coming back to the U.S. is due to punitive tax implications on large corporations who sustain operations overseas, or in another nation. Thus why U.S. companies are demonstrating a mass exodus from Canada.

#225 Victor V on 04.08.13 at 9:47 am

Signs of a Canadian housing downturn are everywhere

http://business.financialpost.com/2013/04/05/canadian-housing-downturn/?__lsa=f47b-85fc

#226 Money talks on 04.08.13 at 9:48 am

March 2012 YWG report: http://www.winnipegrealtors.ca/Resources/ShowDocument/148

#227 BlorgDorg on 04.08.13 at 9:49 am

I’d just like to add my voice to the posts correcting you about your mis-categorization of librarians as part of the “clerical” class. Unlike the other titles you list, librarians DO require a Masters-level degree (that’s 5+ years of postsecondary education), and are part of a profession, not a vocation.

As a librarian, I’m all too used to seeing people mistakenly think that “librarians just stack shelves” (actually, that’s library technicians, also requiring a two-year college diploma), but you of all people should be better-informed.

As hobbygirl mentions, highly-skilled, specialized (mostly high-tech) librarians are in short supply and demand is growing rapidly. Libraries ARE losing jobs, mostly due to the same cultural value shift that’s eliminating pensions.

Your semi-sarcastic point, that high-wage, medium-skill jobs are vanishing, is absolutely true, as always. Just lay off the librarians.

#228 jess on 04.08.13 at 9:52 am

who is doing the leaking? if one is a “politically exposed person” one could easily be held hostage to the $ institution that holds the info.
Does anyone else wonder about that list of 106 are considered “politically exposed persons”
http://taxjustice.blogspot.ca/

German clients of two leading Swiss banks have been warned that they must either produce evidence of having paid their taxes or come clean with the tax authorities within the next few months if they want to keep their accounts
http://www.swissinfo.ch/eng/business/Swiss_banks_give_German_clients_an_ultimatum.html?cid=35420746

Reports put French budget minister Cahuzac’s secret stash at swissinfo
Cahuzac is also accused of presenting forged tax certificates to Swiss banks that falsely showed that he had paid French taxes on his assets.

#229 Stickler on 04.08.13 at 9:53 am

Great post Garth!

Finally people are starting to wake up.

We will know things are better when people are more concerned about each other, then the length of their scarf or the car they drive.

It will be a long time.

#230 kw kid on 04.08.13 at 9:57 am

Sorry Garth but it’s called a depression for a reason.

#231 Toon Town Boomer on 04.08.13 at 10:02 am

We are constantly being taken for ride. Misinformation, lies, deceit and greed is a constant reality that wears on people. Trust! Who do we trust? Trust the banks, Gov’t, Senators? Hell, we can’t even trust the food weare eating.

http://news.ca.msn.com/top-stories/think-youre-eating-tuna-think-again

NOTE:
The Canadian Food Inspection Agency, which enforces the country’s food labelling laws, was not available for comment.

Is it a blame game or calling a spade a spade?

#232 Big Block Power on 04.08.13 at 10:13 am

Good morning Garth,

What is your opinion on purchasing Western Canadian oil stocks?

#233 Toronto_CA on 04.08.13 at 10:15 am

Here’s an example or two of why people are more pissed off, people are waking up.

Taxpayers have unions trying to strike to protect “rights” that the taxpayers pay for but don’t get in any way shape or form:

http://www.theglobeandmail.com/report-on-business/in-fight-over-banked-sick-days-a-widening-fairness-gap-is-exposed/article10837039/

A government with a huge corruption scandal in its hands hiring out the mob to fix potholes:

http://www.thestar.com/news/canada/2013/04/07/montreal_awards_potholerepair_contract_to_firms_with_alleged_crime_links.html

How are people supposed to feel? I think pissed off is a deserved emotion. And that’s not even touching the RBC thing which has really got the sheep agitated.

I don’t agree with why the Montreal students staged their massive protests last year (their tuition rates are still the lowest in Canada/USA) but I am very encouraged to see people actually stand up and fight for their beliefs instead of just rolling over and taking it. Which is the Canadian way.

#234 Who Farted? on 04.08.13 at 10:17 am

Common now Garth…

Rather than blame the average Canadian and suggest they’re more stupid/irrational/ungrateful/ignorant on average today than they were yesterday, you might find it a more useful exercise to ask yourself WHY public opinion is changing so dramatically. There’s a reason behind it, and that reason is what ails this country.

While I agree in principle with your conservative dogma of “personal responsibility”, we need to remember that politicians have a responsibility too. And when they fail to fulfill that, it affects a lot more than just them. Something about a social contract… or something.

#235 Timbo on 04.08.13 at 10:20 am

http://www.guardian.co.uk/business/2013/apr/08/eurozone-crisis-portugal-spending-cuts-bailout

“Our economy’s strength remains sensitive to events beyond our shores and we have an immense stake in Europe’s health and stability,” Lew said in Brussels. The Unites States has no bigger, no more important economic relationship that it does with Europe.”

Lew, who became treasury secretary in February, started his first official trip to Europe with a meeting with EU Commission President Jose Manuel Barroso. He also met the EU’s top economic and monetary official, Commissioner Olli Rehn, and EU Council President Herman Van Rompuy.

I was particularly interested in our European partners’ plans to strengthen sources of demand at a time of rising unemployment,”

plans? what stinking plans?……lol

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

David Stockman – Conversations with Casey
“good interview. There is hope but mindsets have to change”

http://www.dailymail.co.uk/news/article-2305760/Margaret-Thatcher-dead-George-Galloway-leads-chorus-celebration-left.html

whether you hated her or loved her… she’s gone.

#236 Ret on 04.08.13 at 10:22 am

I used to be a proud Canadian, but that was years ago.

The new Canadian mantra is, “Ask not what you can do for Canada, but how can I screw my fellow Canadians over.” We’ve lost our DNA as a country.

We are polarized by income, religion, and ethnicity more than at any other time in our history. Your postal code now says it all.

Canadians continue to rack up debt and lose productivity every quarter. That can’t be good.

Ottawa dithers and the provincial and municipal governments are seriously delusional. Why even waste time voting? Special interest groups now run the country.

Party on Canada!

#237 Steve on 04.08.13 at 10:22 am

Have to give credit to whichever of the outgoing RBC IT folks ‘leaked’ their predicament to the press so that MSM could publish an article to guide us all regarding what to be angry about this week.

It is shocking how readily so many jump on the bandwagon. When the same thing is happening in all large IT departments, we single out RBC, even extend our ire to The Banks, and go all Twisted Sister on them.

Jobs moving out of the country is a concern, especially if it is excessive, and the net benefit to the economy is negative, but is it really appropriate to allow ourselves to be manipulated into demonizing RBC over this particular issue?

I do not advocate complacency when we really should be screaming “We’re not gonna take it” but it is disheartening to see the ease with which public opinion is manipulated.

#238 Dr. Hoof - Hearted on 04.08.13 at 10:23 am

#185 Victoria Tea Party on 04.08.13 at 12:11 am

Simple.

Everything, if you’ve studied that pre-war history, focussing on the insane human behaviour, by the Germans specifically, who knew, by their actions, that their empirical dreams would crush them in the end, which they did.
===========

Back to 1914 and “Europe’s Last Summer”. That is the title of an excellent book on the beginnings of World War One and WHY (the Germans were to blame! And look where they are now! On the cusp again?).

Authored by American historian David Fromkin, it is a barn-burner and reminds me of the world’s recent financial “Sarajevo Moment”, 2008.

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

Advice:
Don’t listen the court historians.
It’s called propaganda.

All wars are Bankers wars.
Maybe listen to Benjamin Friedmans speech(GOOGLE it).

FYI: Germany was dragged into every war.
They WON WW1…..but sought peace…the “Bankers” convinced Britain to say no….if they would be given Palestine, they would get the US into the War (Balfour declaration)…and BTW the Federal Reserve was created around the same time,…..connect the dots.

#239 Morgan on 04.08.13 at 10:24 am

My cynicism comes from desperation. I know I’ve been lied to, anyone who’s found their way here knows it. I’m not even talking about sincere differences of opinion – I’m generally leftish and I can have productive and meaningful conversations with rightish folks – but I see outright corruption, deceit, greed and self-interest going on at the highest levels in industry, media and government. I no longer think these economic crises and bubbles are accidents, and I fear the economy is going to fall apart because of it. I try to do something about it, I protest, I vote, I’m in a credit union and I try to avoid materialism – but I see none of these huge problems changing for the better. I think most people on this blog are quite aware that wealth and poverty are both growing, and that being in the middle is a closing option. I thank you, by the way, for giving voice to a very real step to avoiding financial disaster that everyone can benefit from and step away from real estate hype.
To a very large degree, though, the options we are offered are fake ones – if all 300 million people in North America saved $1million for retirement (as recommended by the best personal finance advisors) the economy would come to a screaming halt. And there’s the simple reality that most people won’t even make that much in their entire working lives, much less save all of it. Wages have not kept up with gains in productivity – so where did the wealth go? Somehow we’re told that health care and welfare we could afford in 1970 with half the productivity is now ‘too expensive’ to sustain – why? where did the money go? Governments are running out of money because they largely tax personal incomes and purchases, not wealth, and incomes are flat or even falling and the economy is slows because the sum of all wealth is increasingly concentrated and sheltered from taxation. Nothing is done about this because a) the politicians all turn out to be in bed with the wealthy b) they ARE the wealthy or c) wealth is now so concentrated that countries have to compete with each other to keep them around for what minimal cash flow they might offer. This is a very bad outcome that can’t be fixed by personal finance advice to skip your morning latte or some other BS. Can it be fixed by a diversified portfolio…? I’m still skeptical, but hey, I’m listening. I do have an interest in personal survival, but I think in the end our collective actions will rule the day.

#240 Canadian Watchdog on 04.08.13 at 10:27 am

Here's a list from a realtor of some foreclosed properties in the GTA.

Scroll down to see new detached and semi-detached units that defaulted. No those are not duplicates, those are speculators defaulting in bulk.

#241 Chris no longer in England on 04.08.13 at 10:27 am

#69 Dwilly:

“Assumes right away that they are always stupid and either just plain dumb or intentionally trying to screw him. Worse yet, he believes he has no control over this, and rarely even votes, saying essentially that they’re all crooks and it doesn’t matter.”

Well I am not a young person anymore and I think he is correct. Anyone who does believe that authority of any stripe has our best interests at heart (instead of their own) or that voting for one of the unqualified individuals presented to you for that purpose (instead of someone who might actually have your best interests at heart) would make you delusional I am afraid. Once upon a time corruption was hidden for fear of the reaction. Nowadays they don’t even bother to hide it because they don’t fear the reaction. They don’t actually care what we think, say or do, because it cannot hurt them. Whatever our rights and protections are can be erased by altering an existing, or making a new law (yes, just like Cyprus).

Why did Garth get fired by Harper? Because he defied him by trying to serve his constituents instead of his PM. Where are the honourable politicians? Presumably making a living by other means, just as GT is. Politics is a sewer, run by people to govern others and serve themselves. Will a Cyprus-like event happen here? Maybe it won’t – but that doesn’t mean it couldn’t!

#242 jess on 04.08.13 at 10:34 am

http://www.bbc.co.uk/news/world-us-canada-22062317
The documents have not been leaked and are available to view at the US national archives.

Wikileaks says it is releasing the documents in searchable form.

interesting text on fighter jet purchases
Kissinger Cables

SWEDES SEE VIGGEN AGAIN ACTIVE COMPETITOR

https://www.wikileaks.org/plusd/cables/1976NEWDE01909_b.html

#243 maxx on 04.08.13 at 10:40 am

#65 KommyKim on 04.07.13 at 7:56 pm

Work for a well-funded crown corp.?…or have you simply never heard of government waste, the Charbonneau enquiry………………?!

MSM 1- Sheeple -0.

#244 blase on 04.08.13 at 11:00 am

Somehow this speech by Dr. Michael Burry to the graduating class of 2012 seems appropriate viewing for this thread.

http://www.zerohedge.com/news/2012-11-22/michael-burrys-reminder-after-every-over-consumption-brutal-hangover-inevitable

#245 AK on 04.08.13 at 11:15 am

#225 The American on 04.08.13 at 9:44 am
“At #45: AK, wow, you’ve no idea what you’re talking about LMAO. American wages lower than India?”
——————————————————————-
It was just a joke. :-)

Believe me, I am very bullish on America.

I just added to my “JPM” holdings this morning. And just placed a buy order on “AGNC”.

#246 Kevin in Winnipeg on 04.08.13 at 11:21 am

Winnipeg – MLS® Sales Down 26%; Dollar Volume Off 15%

March 2012 Average – $232,688
March 2013 Average – $266,232 + 14.32 %
Inventory up 4% over March 2012.

Why do prices increase with a large sales decrease?

#247 att0m on 04.08.13 at 11:29 am

#26 T.O. Bubble Boy on 04.07.13 at 6:40 pm
Only 200,000 millionaires in Canada? Does that include or exclude primary residence? There are probably 20,000 millionaires who visit this blog if everyone’s $1M GTA or Vancouver house is factored in.

Debt is not the synonymous with wealth. When they go to sell their house, how much will go back to the bank? How many of them have their homes paid off?

#248 Suede on 04.08.13 at 11:43 am

Ouch

Whistler Prices (on HPI) down 20% y/y

http://www.rebgv.org/home-price-index?region=Whistler&type=Townhouse&date=2013-03-01

Time to get out the old Vultch offer sheet

#249 Angel on 04.08.13 at 11:46 am

Sorry Garth but all of humanity have just entered a tunnel of darkness and there won’t be any light for a long, long time for we are all in for one “HELL” of a ride and why you may ask?

It is because we are all sinners and we have now all lost GOD’s Favor!

Greed and selfishness has taken root and it is about to flower and seed so much pain and suffering to all of humanity, in every nation and in all peoples and there will be no hiding place for no one.

We are going to reap what we sowed.

#250 Buy? Curious? on 04.08.13 at 11:49 am

Legalise Marijuana and watch everything improve!

Garth, I love you! Let’s do lunch.

#251 A Nightmare on Bay Street on 04.08.13 at 11:50 am

Garth,

Losers are handpicked from now on.

Of course, we are cynical.

What is the difference between Cyprus and G. Sachs bailout ?

None.

#252 live within your means on 04.08.13 at 12:03 pm

40n – ex-van

People didn’t think much about office administration work, but it employed millions of people in North America for decades. They were also a foot in the door to a company where you could work your way up. They’re not coming back.
…………………

So true. That’s how I moved up. I have a DBP but I’m sure it’ll be axed in 2 years.

Haven’t posted recently – not much to contribute re RE but am aware what is happening in our area & elsewhere and spend half my day reading Cdn news and elsewhere – cause I’m interested & retired.

OT – Hubby’s bro from MTL was here for 10 days. He & his wife are divorcing. What a mess. Sad – hubby said if he were not his brother he’d not choose him as a friend. He had a cast on his foot & shin so I had to deal with him during the day. He is SO screwed up – financially & otherwise. We tried to give him advice but doubt it worked. His wife wants to return to France with their young son. If she gets nasty (BTW, we both like her) re splitting assets, etc. he holds the trump card – he can refuse signing the document to let her take their son to France.

#253 Dr. Hoof - Hearted on 04.08.13 at 12:07 pm

Maggie Thatcher dies

http://www.nytimes.com/2013/04/09/world/europe/tributes-pour-in-for-margaret-thatcher.html?pagewanted=all&_r=0

#254 TomJefferson on 04.08.13 at 12:09 pm

What is this ‘social contract’ of which socialists speak? I signed no contract. Am I bound in chains by something to which I did not consent?

#255 T.O. Bubble Boy on 04.08.13 at 12:11 pm

@ #248 att0m on 04.08.13 at 11:29 am

#26 T.O. Bubble Boy on 04.07.13 at 6:40 pm
Only 200,000 millionaires in Canada? Does that include or exclude primary residence? There are probably 20,000 millionaires who visit this blog if everyone’s $1M GTA or Vancouver house is factored in.

Debt is not the synonymous with wealth. When they go to sell their house, how much will go back to the bank? How many of them have their homes paid off?

Agreed — but ignoring the tens of thousands of highly leveraged home “owners” who’ve bought say in the past 5 years and/or HELOC’ed themselves to the max, there are millions of other homeowners in Canada who are still in the same house they were in before this bubble really took off, and have paper gains in the hundreds of thousands or millions.

If you just looked at Toronto and Vancouver, there would be hundreds of thousands of families with $1M+ homes. Yes – many have mortgages equal to 80%+ of the value, but many were paid for decades ago.

Regardless – Garth clarified that the 185,000 millionaires number is for investable assets (not houses).

#256 Smartalox on 04.08.13 at 12:14 pm

@ the librarians,

I agree that we need more librarians. In this information age, the r&d companies that have worked for spend millions of dollars accumulating knowledge, but because of shoddy knowledge management practices (usually our in-house ‘librarian’ is a nepotism hire, or a well-meaning scientist or engineer back from maternity leave) barely a fraction of its value is realized.

Librarians (information scientists, actually) are needed to sort through the information, harness this raw knowledge and channel it into useful formats.

Google was once a great resource, but ever since its business model changed to selling information about its users, it has suffered from information overload, and I’ve found the number of searches that did not return results I was looking for increasing. Yes, we need more librarians.

#257 windiachres on 04.08.13 at 12:26 pm

Wife put in a offer on a townhouse in oshawa on the weekend,we are paying cash and we were out bid by three other offers and it went for over asking.Dont know whats going on in oshawa but seems to us no slowdown has taken place.

#258 hagbard on 04.08.13 at 12:32 pm

Buy a cheap property and one of these:

http://www.tumbleweedhouses.com/products/harbinger/#ad-image-0

Have a house for under $50k and whatever you pay for the land.

#259 lotuslander on 04.08.13 at 12:35 pm

It may be only several dozen jobs, but the RBC replacement worker situation has significance in a symbolic way.

On the lighter side, here is a poignant and somewhat fantasized perspective on the foreign offshore worker theme … a short film “The Ballad of Sandeep”

http://vimeo.com/35144846

#260 Holy Crap Wheres The Tylenol on 04.08.13 at 12:48 pm

Obviously buying a house, paying it off, having kids and saving a little in a GIC is no longer a recipe for financial freedom. In fact, many people owning houses may never be debt-free, especially since interest rates must rise and real estate fall.

Perhaps the wording of this statement is given to interpretation. I surmise you are talking about owning as in I have an investment in a home that the bank owns!
Since when does owning a home cause me to never be debt free? I have owned all my homes and have for over 30 years. I don’t care if my home is devalued by 25% or more big deal, my home is where I live not my future investment. Granted it is part of my portfolio however I have never really considered my home as an investment. I am also debt free,

#261 Rational Optimism on 04.08.13 at 12:52 pm

#177

I haven’t seen anyone else reply to this.

Ten-year, for sure. And make a plan to pay it off in the term.

#262 gladiator on 04.08.13 at 12:54 pm

The April issue of Bloomberg Markets magazine had a 6-page article on Canadian RE, especially condos, called “Uh-O Canada”.
In the May issue that I got late last week, there is a letter written by an Irish property developer which says:

“As an Irish property developer with a Canadian wife, I have an unusual perspective. Ireland had no subprime and no shoddy loans. Despite this, we overbuilt. Prices fell amid an oversupply and sales froze. The same fate awaits Canada. The idea that the house prices will drop by a defined percentage or the market will have a soft landing is wishful thinking”

All copyrights belong to Bloomberg. I could not post a link here because I just retyped this from the magazine and this letter is nowhere to be found on the Bloomberg site.

#263 Spiltbongwater on 04.08.13 at 12:54 pm

#260 lotuslander on 04.08.13 at 12:35 pm

I clicked on the link for The Ballad of Sandeep and it was not a 2 min ballad like I was expecting, but was a 27 min video? I don’t have time for that?

#264 Nemo on 04.08.13 at 1:00 pm

Winnipeg March numbers out. Sales down 26% YOY, dollar volume down 15%.

http://www.winnipegrealtors.ca/Resources/ShowDocument/148

#265 Smoking Man on 04.08.13 at 1:01 pm

#214 Sparky55 on 04.08.13 at 7:39 am

#98 Smoking Man on 04.07.13 at 8:57 pmDisturbing reading post here, have any of you ever had a lemon aid stand as kid…the trill of all those nickels in the jar. Where you all just your brothers bitch going to the kitchen a fetching more water for your brother and he gave you a ufew nickels for being his bitch..Where are the entrapunors?_____________________________The entrepreneurs get wrapped in red tape, bureaucracy, legal fees, protectionism, over seas competition (ie non-level playing fields), pushing most away…Starting with lemonade stands:http://www.forbes.com/sites/erikkain/2011/08/03/the-inexplicable-war-on-lemonade-stan

………….

SPANKY55

Never said driving your own boat was easy, obstacles every day to navigate around… I was lucky born with a learning disability which forced me to find workarounds on just about everything. Dyslexica is a gift.

I know why there is a 1precent, because the 99 present blame everyone but them selves for short comings..

I own all my success and fails… Blame no one.
Learn from them.

Always a solution…..

That’s why I’m 1precent…

#266 Blacksheep on 04.08.13 at 1:03 pm

“Destruction of the middle class”

Some people are now spending eves surfing sites like this and others, trying to figure out what the hell is going on. Others like myself, traveled this path many years ago. The outcome is the same. They are realizing much of their reality is an illusion. They’re seeing the fences for the first time and are not too happy about it.

The five stages of grief apply. This is a journey that must be taken alone until one comes out the other side, hopefully in one piece psychologically. The burden can be heavy but with acceptance, comes understanding. Think of it as deprogramming.

This is when things change.

Seeing the ‘system’ for what it is, as opposed to what you were told it was, gives one uncommon insight. Actions that didn’t make sense, suddenly become clear. Use this new knowledge to apply your own values and enjoy your life, on your terms.

#267 all_we_need_is_mortgage on 04.08.13 at 1:16 pm

#39 -People are just looking to blame someone else for their poor decisions.
—————————————————————–
So those brain washing and manipulative technologies don’t count? In the past there were fixed moral values. Nowadays moral can be easily altered to serve the profit. Greed and speculation are encouraged by the media day and night.

#268 Dupcheck on 04.08.13 at 1:19 pm

#4 Godth on 04.07.13 at 6:03 pm

Good video. The machine is broken. It only works for the rich. The poor are so busy with the little daily things in life that they have no time or patience to do anything else. That is because they are kept busy and their energy is diverted to useless ideals in general. Crowd mentality control, brainwashing etc…. New era of self slavery is here. It is hard to digest.

#269 Dupcheck on 04.08.13 at 1:25 pm

I am interested to know what kind of car would a wealthy person drive or be driven in? This 1 % bunch of greedy Mr. Burns types? Do they even leave their castles at any time?
Maybe they have time machines, who knows?

#270 lotuslander on 04.08.13 at 1:27 pm

#264 Spiltbongwater on 04.08.13 at 12:54 pm

It’s an award-winning short film. Here is a synopsis:

Sandeep (Deep Roy from Willy Wonka and Star Trek), an immigrant from India working for an American IT company for 14 years. They offshore his job. He tries to get work but all he can find is as a sidekick for a clown who also had his job off-shored. He quits and comes up with a scheme so that he can work at his old job from home although it appears like he is working from India for less than half his previous wage.

This arrangement works well until the company is so impressed with his work that they want to promote him. That’s when it get’s sticky because if takes the promotion, they will find out that their new “best” employee is the same guy they just fired to save money.

There are musical numbers and a happy ending.

#271 Ralph Cramdown Ⓤ on 04.08.13 at 1:35 pm

#255 TomJefferson — “What is this ‘social contract’ of which socialists speak? I signed no contract. Am I bound in chains by something to which I did not consent?”

To the contrary. You are a small man standing on the shoulders of giants. A very small man.

#272 Dorothy on 04.08.13 at 1:39 pm

GarthL:
You describe very well the accumulative, financial and economic woes that have negatively impacted the middle and lower classes over the past decade. Yet when those same groups express an increasingly negative world view via mediums such as your blog, you appear to be dismayed.
Your advice for them to merely accept the changes and adjust their behaviour to accomodate them is typical of those in the upper income brackets. After all, the same changes that have so negatively impacted the rest of us, have benefited those in the higher echelons. So naturally those who have benefited approve, and don’t want to rock the boat.
All I can say is that I have watched as slowly over the years many of the things that the middle and working classes enjoyed have been either eroded or taken away completely. We used to enjoy reasonably decent wages, with good working hours, benefits and pensions. We used to consider it doable to save up and buy a house, and to have it paid for before we retired. We used to be able to look forward to a comfortable, although not wealthy retirement. Now it appears that all those things have either been eroded and taken away. And people like you are telling us to just accept it and get used to it.
It’s no wonder so many people are angry!!!!!!!!

#273 broadway skytrain on 04.08.13 at 1:48 pm

spiltbong – i wasted 4 min jumping thru – it was not so good

some fascinating reading today with strong cases made on both sides. little talk of shiny rocks. earnings season may provide a gentle lift for equities, but the grim future for the bottom 20% is sadly not going away.

on one random blk in e van there are about 50% who have been here long past the last mtge payment
i would estimate 5-10% tops are on thin ice (<10%eq)
the remaining 40-45% are mostly well paid working cpls whose mtge should be some or mostly paid and have been around long enough to inflate somewhat.

————————-
off topic(sorry and thx to the great "G" man) thurs is forecast to be sunny and warm- i am looking for a boat hand/helper for part of the day . 3 hrs work at low pay! plus 2 hrs travel time – unpaid even!
the upside? boat across beautiful howe sound on a sunny day, bring your tunes/ fishing rod/dog or girlfriend .beer/cigars/420 encouraged but not mandatory
qualifications
you must not be a prominent 'firster';)
of reasonably strong back and sure foot
able to tie a knot
bonus q's
can drive a small boat
can tie a bowline knot without a book–
i pick u up in van or n shore
50$ honourarium on completion

#274 renting and waiting no more on 04.08.13 at 2:00 pm

I have to admit that I didn’t even read today’s blog post before posting this as a continuation from the last one:
———————–

Sir Garth:

#200 Boycott RBC.. You are incorrect Garth. There are 100s of iGate subcontractors, just in the three RBC buildings at Front and Spadina. This is no minor situation.

garth says: It’s a private corporation. Can do as it sees fit to maximize shareholder value. RBC still has 80,000 employees, and this is an inconsequential action in that context. — Garth”
————————————-

You’re wrong on this, although not from the standpoint of the shareholder.

BUT

That’s precisely my point, and precisely why you are on the wrong side of what is going to be an explosive issue, IMO.

We cannot continue in this vein, and you are a proponent of the old school of thought, one that I hope to see perish. You must have gotten the message from the commentary (yes, you had your old boy supporters) you had many voices who spoke up in opposition.

You view yourself as a contrarian, but you aren’t. You are in fact an apologist for the status quo. What should *you* care if a “few people” lose their jobs for the sake of a slightly better ROI? Right? It’s a laugh because that’s the attitude of the Boomers you love to lambaste.

The CBC call in today was about this issue, and it’s a tip of the iceberg thing. Did you hear it? You’re not gauging interest in this topic properly, and you’re not taking the right side. Again, unless you’re talking purely from a self interested immediate, gated-city perspective, which I think is beginning to be revealed here and now.

Let them eat cake – Marie Antoinette never said it, but you pretty much have.

#275 Ernie Coombs on 04.08.13 at 2:01 pm

Personally, I don’t think anyone should be considered a millionaire unless they:

a) Earn $90K+ per month (I know a couple of people who do, but they don’t earn it working for someone else)

Or

b) Have an actual portfolio of $1 Million +

These two types of people are REAL millionaires. Owning a $ Million+ home in Vancouver/Toronto shouldn’t qualify someone to be one of the so called 200,000 millionaires in Canada, in my opinion.

On another note, I think the divide between rich and poor is making more and more people realize that they’re better off to either do whatever it takes to become rich, or not even bother at all, and remain poor. Being somewhere in between the two totally sucks with our present system. We need to work on fixing that.

Example: I know quite a few people who live on next to nothing because they get subsidized rent, free medical and many other free benefits from the government. They actually end up with just as much (or more) expendable income than most people earning $30K – $45K per year, which is where a lot of us fall in the income ladder. Something is wrong with that picture.

#276 Humpty Dumpty on 04.08.13 at 2:08 pm

Sound familiar…

Shanghai’s rivers are in hot water for the second time this year after hundreds of kilos of dead fish were found rotting in one of the mega-city’s waterways.

China has become notorious for its polluted rivers, largely as a result of decades of unbridled economic growth. Last year a senior official conceded 20 percent of the country’s rivers had become “too toxic for human contact”

http://www.telegraph.co.uk/news/worldnews/asia/china/9978239/Hundreds-of-dead-fish-found-rotting-in-Shanghai-river.html

#277 jess on 04.08.13 at 2:10 pm

offshore payroll companies

In a news release published on Saturday, the Government says that there is a growing problem of offshore intermediaries being set up to pay a wide range of employees, including teachers and oil workers.

The release explains that not only does the use of such intermediaries deprive the Treasury of tax, in many cases it would appear that employees paid via such vehicles are unaware of the tax avoidance issues.

http://www.contracteye.co.uk/offshore-payroll-companies-budget.shtml

#278 blinded on 04.08.13 at 2:13 pm

The answer is in the premise.

“Compared to past decades and generations, we‘re more coddled and swathed in protective regulation than ever.”

The past decade of results has proven such regulation was not put in by the people for the people, but by and for the protection of the govs, banks and industry.

Like Leonard Cohen says, “Everybody Knows…”

#279 TomJefferson on 04.08.13 at 2:17 pm

#272 Ralph Cramdown

And who are these giants? Karl Marx? You sir are a sheep of the highest order. Enjoy your chains – they look good on you.

#280 renting and waiting no more on 04.08.13 at 2:19 pm

#273 Dorothy – right on. so right on.

#281 Godth on 04.08.13 at 2:20 pm

Right on cue. — Garth
Quite a cue it is too, some good posts.
Decadence always signals the end, followed by a new beginning. The scale of what’s happening is the only unique aspect, but then the scale has been ever increasing for 6000 + yrs. Empires come empires go, “to conquer the known world”. We’ve now met limits that spell unsustainable.
There’s a renaissance taking place, though it has nothing to do with what you reference. Fundamental assumptions are being swept aside from cosmology to economics, archeology and history etc. “Everything old is new again”, as the song goes. The “information age” has it’s fruits. The old guard stands in the way for now but to try to hold back the tides of change is futile, interesting times.
Have your fun in your dying paradigm while time runs short. At the same time there’s a lot to be optimistic about, burying one’s head in the sand regarding what we’re facing plays no part. Any way you slice it what 7 billion + humans face at this time qualifies as epic as the systems we’ve created and rely on break down. I’m glad to be alive, life is good, doesn’t mean I have to like the predatory behaviours of some among us.

#282 newbie on 04.08.13 at 2:24 pm

garth – do you recommend using DRIP for your investments?

I’m a beginner investor and it seems like an efficient way to get more share however I would like to hear your thoughts. Many thanks

#283 jess on 04.08.13 at 2:29 pm

know your customer !

During the trial several bankers from AIB testified to the sophistication of Kallakis’ bogus business claims, particularly financial guarantees he claimed to have secured on his property deals. The court also heard how the same bankers had enjoyed extensive hospitality: tickets for the 2006 World Cup final, a trip on Kallakis’s yacht for the Monaco Grand Prix, and holidays in Mauritius.

http://www.guardian.co.uk/uk/2013/jan/17/achilleas-kallakis-judge-criticises-banks

Achilleas Kallakis and Alexander Williams guilty of defrauding banks in property financing deals
16 January 2013

Today at Southwark Crown Court two businessmen, Achilleas Michaelis Kallakis (44) and Alexander Martin Williams (44) both of London, have been found guilty of defrauding banks of millions of pounds and euros through deception and forgery to obtain finance. They have been remanded in custody for sentencing tomorrow, 17 January. Confiscation proceedings are to be instituted.

The borrowing represented £740 million for property transactions and also included a yacht conversion representing a loan agreement of £29 million.

A third person, Michael Becker, is also alleged to have conspired with the defendants. He is a lawyer and businessman based at the time in Lugano, Switzerland. He was closely involved in the fraud and was director of companies presented to the banks in the loan agreements as “borrowing companies”. He is a Swiss national who has not been charged due to his absence from this jurisdiction.

http://www.sfo.gov.uk/press-room/latest-press-releases/press-releases-2013/achilleas-kallakis-and-alexander-williams-guilty-of-defrauding-banks-in-property-financing-deals.aspx

#284 Holy Crap Wheres The Tylenol on 04.08.13 at 2:33 pm

#266 Smoking Man on 04.08.13 at 1:01 pm
Smoking Man can you read it?

fi yuo cna raed tihs, yuo hvae a sgtrane mnid too. Cna yuo raed tihs? Olny 55 plepoe out of 100 can.

i cdnuolt blveiee taht I cluod aulaclty uesdnatnrd waht I was rdanieg. The phaonmneal pweor of the hmuan mnid, aoccdrnig to a rscheearch at Cmabrigde Uinervtisy, it dseno’t mtaetr in waht oerdr the ltteres in a wrod are, the olny iproamtnt tihng is taht the frsit and lsat ltteer be in the rghi t pclae. The rset can be a taotl mses and you can sitll raed it whotuit a pboerlm. Tihs is bcuseae the huamn mnid deos not raed ervey lteter by istlef, but the wrod as a wlohe. Azanmig huh? yaeh and I awlyas tghuhot slpeling was ipmorantt!

Completely in keeping with today’s conversation. — Garth

#285 jess on 04.08.13 at 2:46 pm

we all in this together–
one gets knighted whilst one gets fired and blacklisted.

HBOS executives ‘threatened’ colleagues who questioned risk-takingPaul Moore, former HBOS head of group regulatory risk, says he was sacked after raising concerns about management

http://www.guardian.co.uk/commentisfree/2013/apr/07/brtish-bankers-unpunished-unashamed

http://www.guardian.co.uk/business/2012/oct/30/hbos-whistleblower-threats-risk-taking

#286 Smoking Man's Old Man on 04.08.13 at 2:48 pm

# 270 Dupcheck

I am one of the 1%. Maybe I’m not your typical one. I lead a simple life. Love to read, spend time in nature, converse with friends, exercise and meditate daily. Don’t own much stuff. Oh, I drive a 2003 Toyota Tacoma with 100,000 km on it. I have no plans to upgrade ;)

#287 Old Man on 04.08.13 at 2:51 pm

#273 Dorothy – There are two things in life that one must accept; one is the illusion of the past which was the splendour in the grass, or reality of the present state. I agree with everything you are saying, but one must go with the flow and adjust to the changing times as best as one can in life.

#288 Dr. Hoof - Hearted on 04.08.13 at 2:59 pm

Interesting graph re: Immigration to Canada 1860 to 2010

http://www.immigrationwatchcanada.org/

It was as low as approx.85,000 in 1986
It hasn’t dipped below 175,000 annual since 1998
More recently its been 250,000+ since

#289 Mike T. on 04.08.13 at 3:03 pm

#267 Blacksheep

Thank you for that post. You articulated exactly my experience and the whole deprogramming/awakening that I see evidence of happening en masse.

2 things come to mind for folks that see through the illusions.

If you want to change the world, you have to first change your world.

Second, learning how the Law of Attraction works will be extremely helpful and useful.

You get back what you put out, is, in essence, the Law. Think about what you put out into the world, don’t be so surprised at what comes back…..like attracts like.

#290 sciencemonkey on 04.08.13 at 3:07 pm

Offshoring seems like an example of the prisoner’s dilemma. The prisoners are companies, and tattling is offshoring jobs, or using access to foreign workers to drive down or stagnate wages.

If neither company offshores, their profits won’t be as high, but their employees will have money to spend in the economy. If company A offshores, they save costs, and company B’s employees still have money to spend in the economy, so company A is ahead. If both companies offshore, than they save costs, but no one has wages to patronize their services.

The work-around of course has been to give the consumers access to debt. This is unsustainable.

#291 antiflakflak on 04.08.13 at 3:15 pm

SKIP watching any news today,–it will be time waster and repetitious, nothing but coverage of Margaret Thatcher, most other news deleted at expense of Margaret Thatcher, even Mansbridge said her book was not great,

#292 Victorianna on 04.08.13 at 3:16 pm

@#43
And that’s why Garth’s constant jokes at the expense of those who drive the wrong kind of car (in his opinion) or “shop at Costco” are really not so funny. This is the attitude in our society, which he unabashedly reflects: money equals status equals intelligence equals self worth. A certain amount of money is essential, yes, to a healthy, reasonably secure family life, and Garth gives a lot of good advice to people who are making/about to make/have made very foolish decisions. That’s good work, and much appreciated. There is a contradictory message at work in this blog, however. Why insist on judging and making fun of those who are just trying to live simply and do the best with what they have? There seems to be a disconnect here between the attempt to help and a desire to ridicule. Perhaps it is meant in a spirit of humor, and he thinks people come here for that kind of meanness, but I long ago stopped finding it funny. I’m not even sure what he’s really ridiculing half the time. Is it people who drive a car he doesn’t approve of and are therefore stupid? People who make uneducated financial decisions, or financial decisions that are based on emotion, and are therefore stupid? People who shop in the wrong stores and are therefore stupid? People who are depressed and worried about the current state of markets/government/banking/ and are therefore both stupid and self-destructive? Well, I guess most people are just stupid by these definitions. Why waste time on them? Why write this blog?

#293 John Saccy on 04.08.13 at 3:17 pm

http://www.zerohedge.com/news/2013-04-08/next-domino-australia-doubles-tax-retirement-savings

here we go!

#294 Old Man on 04.08.13 at 3:20 pm

#287 Smoking Man’s Old Man – Imao, as my car is older with about 34K on it, as my middle name is cheap, and when I went to renew my plate sticker and drivers licence last February had a problem. The gal said no way and said it is parked just outside the door so lets take a look as she challenged me about fraud or something. The gal said omg it is raining and cold outside, so will give you a pass. Keep the old car and spend a bit to save a lot.

#295 Devore on 04.08.13 at 3:24 pm

#181 kreditanstalt

Hmmm…didn’t you just tell everyone to stick to the most conservative, risk-avoidance preferred shares? And REITs?

Or maybe they’re risky too.

There is risk in everything. Humans are notoriously bad at judging it.

Turns out, humans are also bad at reading.

#296 Canadian Watchdog on 04.08.13 at 3:34 pm

Australia doubles tax on retirement savings

You can only tell people ‘that won’t happen here’ until it eventually does. Keep your money out of government savings vehicles and start reading whatever laws are left to protect you.

#297 Calgary_Rip_off on 04.08.13 at 3:54 pm

Garth your assumption for this current post is incorrect. Havent you ever heard that looking for security will only make you more insecure?

You think that now people are more protected than before? Seriously? Look around. It is Big Brother(or sister) everywhere. Everything that you do and see is being logged by someone, somewhere. There is no privacy and people are reduced to automatons, domesticated cats, if you will.

It will get worse. Likely cash will be eliminated and the person without the bar code on their forehead wont be able to buy food. Conform or die.

You assume that people want financial freedom. It isnt attainable. What I am more concerned about is avoiding nonsense each day and self preservation against stress, which can over time kill you. I am learning mental tools to deal with and avoid the enormous amounts of stupid people that I have to contend with daily, always in my way.

And yes, they are out to get you and do hate you-that goes for people everywhere, not much better than animals.

The wise person doesnt try to change the environment, but accepts it, and learns how to manipulate and play the game so that they succeed.

#298 noverysmart on 04.08.13 at 4:09 pm

Garth, what’s your opinion of TD Waterhouse-investment?

I have quite some cash siting in my accounts doing nothing but I am very ignorant with investments…any comments?

Then why are you investing? — Garth

#299 Bill Gable on 04.08.13 at 4:13 pm

A fish thinks with his head – and I blame “Government by Press Release”, for much of the angst we see here.
People don’t trust Pols. There, I said it.

Here in BC, where our Premier is detested – she was rebuked in the recent survey that had her tied for least favoured, among Premiers.

OK, that all being said – this is NOW; what is it going to be like in a few years, when, as described so well by Mr. Turner, the broke Boomers outnumber the squirrels in Stanley Park, pray tell?

A lot of my friends are already, really hurting.

It’s already ugly.

Yipes, Mr. Turner, I suggest a helmet before heading to the Bunker to work on your next compelling piece.

#300 Old Man on 04.08.13 at 4:19 pm

#270 Dupcheck – will answer your question with some experience, as knew one woman that was worth a fortune who owned a chain of restaurants and drove a modest car; another had a net worth of $200 million and bought a T-Bird. Most will go for a Benz or a BMW as a status symbol, but when all is said and done one cannot judge any person by the car that they drive and that is the bottom line.

#301 jess on 04.08.13 at 4:21 pm

This is even more insane renting out houses that don’t even belong to you!

The company has gained control of these homes — renting them out to unsuspecting tenants, in some cases — by filing dubious deeds and documents filled with legal-sounding jargon and shoddy punctuation. The author of many of these documents calls himself an “attorney in fact,” though he is not, in fact, a licensed attorney in Florida.

Read more here: http://www.miamiherald.com/2013/03/23/v-fullstory/3303540/extreme-home-takeover-dubious.html#storylink=cpy

#302 Happy Renter on 04.08.13 at 4:24 pm

I’m not so sure retirement is everything it’s made out to be.

Spend your life living like squirreling away money in the name of saving for retirement, reach 65, pack in the job and then spend the rest of your life wandering around looking for things to do.

My old man, now 77 still works part-time and says he wouldn’t know what to do with himself if he didn’t. He loves having a reason to get out of the house and away from the wife, who does nothing but natter and gripe when he’s sitting around the house playing with his computers.

#303 waiting on 04.08.13 at 4:28 pm

Another blatant example of an advertisement posing as a legitimate news article – this time in the Financial Post.
The article profiles a retirement age couple getting advice from a financial company on how their high home value could factor into their retirement. What they don’t mention is that the husband actually works for the financial company.
http://business.financialpost.com/2013/03/27/canada-housing-retirement/?__lsa=649a-abd0

#304 Kevin on 04.08.13 at 4:32 pm

Garth,
here is the Gross Debt Service Ratio (GDS) changes over the years I promised last week.

1946- GDS ratio is 23 %

1960′s- GDS ratio increased to 27%

1972- all of spouses income can now be used in GDS ratio, before 1972, only half was used

Early 80′s- GDS ratio increased to 32%, TDS set at 40%

2007- Some lenders scrap GDS ratio altogether, bumping their acceptable TDS ratios up to 44%. On an exception basis, borrowers are sometimes approved with TDS ratios of 46% or more.

2008- CMHC applies more stringent maximums for riskier borrowers (35% GDS and 42% for credit scores below 680) No GDS requirements for low risk borrowers, TDS at set 45%

2012- New caps on GDS (39%) and TDS (44%) Riskier borrowers (35% GDS and 42% for credit scores below 680 stays the same)

http://3.bp.blogspot.com/-019ZTtwSpeE/UV3rnnKHWCI/AAAAAAAAF8M/z_5mWuvEi2k/s1600/Average+Annual+Canadian+House+Prices+and+GDS+Ratios.jpg

So one may wonder how these different GDS ratios would impact an annual family income of $90,000.
Below is the year, what percentage the GDS was set at, and the cash amount of the maximum amount that this family could allocate towards their monthly housing costs.

1946 (GDS=23%) $1437
1960′s (GDS=27%) $1687
1972 (GDS=23%, all of spouses income use) $2025
Early 80′s (GDS=32%) $2400
2007 (GDS scrapped, TDS set at 45%) $3300
2012 (GDS=39%) $2925

Home buyers can allocate 39% of their GROSS income (53% of their NET income) towards housing, and we are to believe this is prudent? We are to believe this conservative? The proof is in the pudding. Retirement savings for young home buyers are pretty much non-existent. Day care waiting lists are over a year long in many parts of the country just due to the fact that most young families need both parents to work just to make ends meet. And this is at a time when a five year fixed rate mortgage can be had for under 3%.

And to think there are some people who think that mortgage rules are too tight and need to be eased. Yikes!

#305 Albert on 04.08.13 at 4:34 pm

Interesting read on the topic of wealth distribution

http://en.wikipedia.org/wiki/Gini_coefficient

#306 noverysmart on 04.08.13 at 4:39 pm

Garth, what’s your opinion of TD Waterhouse-investment?

I have quite some cash siting in my accounts doing nothing but I am very ignorant with investments…any comments?

Then why are you investing? — Garth

Because I dont have the time to do it myself and how I told you I am losing a lot of money no investing my savings. I just want your opinion on them. Would it be good to do them with them? Or Where can I find a good one? Honestly I know nothing about investing, I just kjnow I have to do it…

#307 waiting on 04.08.13 at 4:41 pm

A dog is leading the Buzzfeed poll on most trusted opinion on Vancouver real estate. Everyone loves dogs …

http://blog.buzzbuzzhome.com/2013/04/most-trustworthy-expert-vancouve-real-estate-market.html

#308 all_we_need_is_mortgage on 04.08.13 at 4:41 pm

.. still it’s hardly possible to believe that Cyprus confiscation thing was an isolated accident. It wasn’t even objected by IMF 9what was normally suppoused to happen), in fact they supported it. What was that – a precedent, a beginning of a new era when people will pay with their deposits for the risky banks practices. I heard on the radio that New Zealand 2013 budget has a very similar statement with the regards of their banks rescue…

#309 NorthOf49 on 04.08.13 at 4:50 pm

#293 Victorianna

Nerds, party poopers, sad sacks and buzz killington’s need not apply. A lot of us appreciate Garth’s sense of humor. Yes, I shop at Costco as does half of Hamilton and Burlington. Does it deserve mocking? Absolutely! I was there two weekends ago to get new tires before the sale ended (save $70 on a set of 4). The tire centre was booked solid on the day I was there, so the sales guy said to come back the next day but come early as Costco will probably do a “soft open” ie. they will open the doors before their regular 9:30am open, possibly at 8:30am. So, since I wanted to be the first in line the next day, there I was at the deserted Costco parking lot on Saturday at 7:45am. By 8am, another couple of dummies like me showed up to wait by the front doors. We waited until 8:45am for them to open the doors, at which point there were twenty of us waiting to get in, but not all for the tire centre. The funniest part was, as me and the other smart guys walked inside to the tire centre, a little Oriental lady came outta nowhere and ran by all of us to get to the tire centre desk first. I just laughed and shook my head. The guy beside, a complete stranger, looked at me and said, “Don’t you f#@king hate that?”. I got my tires and save $70 but it cost me two additional hours of my time. My current charge-out rate is $100/hr, so yeah, I think there’s some deserved mocking there. Keep it coming Garth!!

#310 all_we_need_is_mortgage on 04.08.13 at 4:55 pm

Isn’t that a symptom? – “Australia Wants To Cut Out US Dollar In Trade With China”
http://www.ibtimes.com/sorry-mates-strictly-business-australia-wants-cut-out-us-dollar-trade-china-1161287

#311 Skip Breakfast on 04.08.13 at 4:57 pm

Oh dear Garth. I’m worried about you too.

You have successfully presaged the real estate meltdown, but all along have failed to account for the devastating effect on the hearts and minds of the people. The swing in social mood was just as inevitable as the drop in condo prices. And it’s only just begun.

Alas, wishing something were otherwise doesn’t make it so. Wishing my condo would just go up in price again if only people saw the light and bought into the con(fidence) game doesn’t change the inexorable turn in sentiment.

And wishing the people would just get over themselves and listen to reason, buying back in to the status quo (in another form, if not in real estate) is equally tantamount to shouting at the moon.

Garth, you’re ignoring some dark statistics, even as you list them all in your blog. A hollowed out middle class isn’t going to be reasonable. You are expecting them to show confidence in a system that has duped them once already.

How can we not experience a severe hangover after decades of getting drunk on credit. You’re asking everyone just to switch their drug of choice. But people are too broke to afford anything more, good or bad for them. And they’re confused. And so they’re angry.

Some of the anger might be as mis-guided as you suggest. Some of it is surely justified. But it doesn’t matter. The swing in sentiment has already begun and will pick up steam.

Don’t blame us for being dark. The disco days were full of light and sequins and shiny cars. Nothing lasts forever. Good times will come again. But not before some necessary dismal ones. This town needs an enema.

So I’d like to help you too Garth. Don’t shout at the moon. It won’t work. And unfortunately, your well-laced financial advice that seems to make so much damned sense could very well get swallowed up by the darker moods of the populace, and some otherwise “sound” investments could get pulverized.

You’re asking people to think with their heads when you know they think with their hearts. And fear is on the menu today. Best get out of the way.

#312 Old Man on 04.08.13 at 5:14 pm

#303 Happy Renter – have you ever considered in your wildest dreams that your old man might have a girlfriend on the side? I know the street so why does he have a reason to get out of the house? I have a mind that pays attention, as have seen it all, so might be time for you to do some checking on him. :)

#313 Smoking Man on 04.08.13 at 5:15 pm

Holy Crap Wheres The Tylenol on 04.08.13 at 2:33 pm

#266 Smoking Man on 04.08.13 at 1:01 pmSmoking Man can you read it?fi yuo cna raed tihs, yuo hvae a sgtrane mnid too. Cna yuo raed tihs? Olny 55 plepoe out of 100 can.i cdnuolt blveiee taht I cluod aulaclty uesdnatnrd waht I was rdanieg. The phaonmneal pweor of the hmuan mnid, aoccdrnig to a rscheearch at Cmabrigde Uinervtisy, it dseno’t mtaetr in waht oerdr the ltteres in a wrod are, the olny iproamtnt tihng is tahvt the frsit and lsat ltteer be in the rghi t pclae. The rset can be a taotl mses and you can sitll raed it whotuit a pboerlm. Tihs is bcuseae the huamn mnid deos not raed ervey lteter by istlef, but the wrod as a wlohe. Azanmig huh? yaeh and I awlyas tghuhot slpeling was ipmorantt!

Completely in keeping with today’s conversation. — Garth

…………..

This is truly scarey, I could speed read your post….. Wtf

#314 Fabrega on 04.08.13 at 5:17 pm

#224 CrowdedElevatorfartz
Well said. There are gazillions of reasons to be pissed. If you are not pissed you are not paying attention.

#315 Timbo on 04.08.13 at 5:19 pm

http://www.cbc.ca/video/player.html?clipid=2374071453&position=345303&site=cbc.news.ca

In-sourcing : IT style.

Audio interview from CBC – BC on RBC outsourcing jobs.

The story is building and more and more people are coming out of the woodwork to expose that Banks and other companies are gutting their IT departments using these temporary work Visa’s.

$50 dollars an hour replace by $15 dollar employee who is not a Canadian.

#316 zeeman1 on 04.08.13 at 5:19 pm

#12 In the cold from Toronto

I don’t recall ever being asked to sign a social contract, do you?

#317 NoName on 04.08.13 at 5:22 pm

Love this old post…

#221 disciple on 03.26.12 at 10:24 pm
NoName… okay, I accept the possibility that you didn’t intend to offend. But your argument is ignorant. Just because they are wearing quite useful hats for that type of work, doesn’t mean they were “imported”. How does one “import” workers in Canada? Enlighten me…, and I’ll forward your comments to the Minister of Immigration, that lunatic Kenney, as he is right up your alley it seems.

Ask Grodon Nikson.

#318 windiachres on 04.08.13 at 5:32 pm

Just got back from looking at anohter townhouse in oshawa and before we could right up the bid there are already two offers on it.This place only came on the market yesterday and its the second one we was interested in over the weekend.One sold over asking and by the looks of it,this one will to.Can someone please explain to us where is this slowdown that is happening because its not happening in oshawa and im losing faith in it fast.

#319 Godth on 04.08.13 at 5:36 pm

Some liberals are getting a bit upset at Obama and his latest budget proposals.
http://www.youtube.com/watch?v=ZI60Gp8xLKM

#320 Yellow Helicopter on 04.08.13 at 5:42 pm

Hi Garth,
I admire you being able to read and sift through all the comments and get past the negativity of some of your readers.
I read your posts faithfully, but hardly ever comment, and also rarely read the comments on here – I do think that out of the people who take the time to comment, there are a disproportionate number of ‘Doomers’ – I think most of your readers find your advice and posts very valuable, and yet don’t feel the need to comment / don’t feel they have anything further to add. I’m sure it’s just the 10% of readers (or even a much lesser percentage,) that are ‘fired up’ over the latest doom indicator and feel the need to get on their soapbox and tell you or anyone else about it.
The rest of us are just busy living.
Thank you for all you do, please ignore the noise, and please remember all of us that read and stay silent. We are grateful!

#321 rosie "moving backwards" on 04.08.13 at 5:44 pm

Impeccable timing. http://www.rbc.com/community-sustainability/_assets-custom/pdf/RBC-CRR-Review-e.pdf?sf275078=1

#322 :):( Ying Yang on 04.08.13 at 5:57 pm

#314 Smoking Man

Congratulations you are with the 55% not the 1% as you claimed. Your brain is wired correctly. It’s just your spelling that sucks, oh I almost forgot your grammar also is terrible. Please tell us plebs how is the Forex venture?

#323 Dr. Hoof - Hearted on 04.08.13 at 5:59 pm

#294 John Saccy on 04.08.13 at 3:17 pm

re Australia’s double tax.

Interesting….like Cyprus….effectively another Island as is New Zealand.

Perhaps a dry run to test the waters before the mainlands get looted..

#324 Blacksheep on 04.08.13 at 6:00 pm

Calgary_Rip_off # 298

“The wise person doesn’t try to change the environment, but accepts it, and learns how to manipulate and play the game so that they succeed.”
—————————————————
Very sound advise.

#325 Dodged-a-Bullit-in-Alberta on 04.08.13 at 6:04 pm

Greetings: Would like to share a short story, one of many, that explains why I fear for the future of our society.

Went into a local business recently, saw a computer printed sign on the window. “We do not except the____
coupon only the ______coupon. I pointed out to a staff member the incorrect spelling, as I left. Was assured someone would fix it. Went back a week later, sign still there, removed it and handed it to clerk. Young man half my age got pissed off, grabbed some tape, and stuck it back on. Went back today, sign still there, uncorrected. What a fucked up generation!!!

#326 Julie on 04.08.13 at 6:12 pm

So let’s see…….

Bankers and MF Global types like Corzine are too big to jail.

Large corporations are hiring non-Canadians at a dizzying pace with the Govt’s blessing.

The un-employment rate is NOT what we are told but much higher because people that do not qualify or are on welfare are not counted.

Manufacturing continues to be off shored by said corporations everyone loves to hate.

The volume in the stock market is anemic yet we are too believe that 30 stocks in the DOW represent the whole earth and we should invest…..

And finally Public Employees keep getting richer and richer with wage increases and gold plated pensions while grandma private sector worker is not a greeter at Wally Mart…..part time…..to supplement her full time job because she cant afford to retire.

Is there really a question as to why the average person is pissed when presented with these facts?

#327 Julie on 04.08.13 at 6:16 pm

#297 Canadian Watchdog on 04.08.13 at 3:34 pm

Australia doubles tax on retirement savings

You can only tell people ‘that won’t happen here’ until it eventually does. Keep your money out of government savings vehicles and start reading whatever laws are left to protect you.

But but but but but…….this is Canada…..a northern version of Australia (BS Queen and resources and crap)…..but it CANT HAPPEN HERE !! Right?

#328 tkid on 04.08.13 at 6:23 pm

Now it appears that all those things have either been eroded and taken away.

Forgive me, but your retirement savings are still there, you and your hubby are either retired or on the cusp of retirement, and your house is paid off. What, precisely, has been taken away from you?

#329 Old Man on 04.08.13 at 6:24 pm

#323 Ying Yang – I have heard this rumour that the Smoking Man is a secret partner who has a modest postion with the Bitcoin currency, so do not count him out as a major player with a new world currency that is about to change the world.

#330 wallflower on 04.08.13 at 6:25 pm

Makarand Pradhan – inquiring about which banks do the RBC tango?

I am guessing all of them. One has competitive advantage, they all jump in.
BMO very bad …………. that I know.

#331 blok existentialist on 04.08.13 at 6:33 pm

#293, Victorianna: Your bad manners are equalled only by your bad manners. To wit, Garth is a saint and (before you start picking at him which is probably inevitable) Smoking Man is an idiot savant. Stick around and observe.
Surreal day … not only did Margaret Thatcher and Annette Funicello die today, but John Lennon’s son turned 50. Wide-eyed reaction from all boomer customers at the birthday news … you just knew everyone was racing home to their bathroom mirrors.

#332 Stickler on 04.08.13 at 6:36 pm

@ #303 Happy Renter on 04.08.13 at 4:24 pm

I’m not so sure retirement is everything it’s made out to be.

Spend your life living like squirreling away money in the name of saving for retirement, reach 65, pack in the job and then spend the rest of your life wandering around looking for things to do.

My old man, now 77 still works part-time and says he wouldn’t know what to do with himself if he didn’t. He loves having a reason to get out of the house and away from the wife, who does nothing but natter and gripe when he’s sitting around the house playing with his computers.

>> That sounds like propaganda to me. Work till you die because there is nothing out there but work.

I will label it broken man syndrome.

#333 Stickler on 04.08.13 at 6:43 pm

@ #315 Fabrega on 04.08.13 at 5:17 pm

#224 CrowdedElevatorfartz
Well said. There are gazillions of reasons to be pissed. If you are not pissed you are not paying attention.

>>Agree

& @#321 Yellow Helicopter on 04.08.13 at 5:42 pm
I agree with you in the fact that you are too busy to pay attention. If you did, you would be pissed too.

#334 TurnerNation on 04.08.13 at 6:55 pm

400th?? We are turning into Soviet Russia here.
Our Glorious Leader standing behind signs indicating “A Strong Canada”, and that our military will ‘keep us safe’; and his “Economic Action Plan” will bring prosperity to each prefecture.

#335 Smoking Man on 04.08.13 at 6:55 pm

What ying yang you don’t think I’m 1 in 100

Why don’t you tell the dogs about yourself, haven’t seen one contribution post from you ever,just sm chirps.

You wana know about my trading. It’s shit, bad ..

Your turn……..

#336 Old Man on 04.08.13 at 7:00 pm

Ok this has all gone insane as just received a notice from my landlord that tomorrow they need entrance to my bedroom, about filling a hole which involves my heater system, and must remove any furniture from this area. I guess someone is complaining about my wild sex life, and this was done under a 24 Notice to Enter. I might call my Attorney and say no way.

#337 wallflower on 04.08.13 at 7:05 pm

windiachres – you are getting tiresome. Oshawa — cheapest real estate in GTA; bidding war on $200K? Relax – and welcome to the highest property taxes in Canada, per square foot.

#338 Men Who Stare At Sheeple on 04.08.13 at 7:10 pm

I am an occasionally poster on Garth’s blog, and I guess I’m one of those so-called doomers Garth is referring to. In my posts I never pump real estate, stocks markets or gold. In truth, I own no gold! What I try to do is spread some truth! Which is in short supply these days!

My posts might come across anti-government, anti-banking or anti-American. But in fact I am not! I respect the American people and all people who choose to live in peace and harmony in this world. But I must say that I am anti governments, banks and corporations who wage financial, economic and military wars against the people to serve their appetite for power and control.

Many people around the world have become very jaded and for good reason! People are fearful and angered at the direction that the governments, bankers and large global corporations of this world are leading us in! Also as a father I am concerned about my young children’s future! I just want to see my children and all children inherit a better world!

People are fed up with the fear mongering, propaganda, lies and corruption in governments, banking, stock markets and corporate media. As mass unemployment and debt continues to take hold around the globe, government officials, bankers and corporations are living large as peoples’ lives are being systematically destroyed both economically and financially.

Anyway, hats off to Garth for being a man with integrity and not following in lockstep with the MSM and for allowing me and others to post opposing views and at times off topic. We might not agree on everything but we can all learn a little something from one another.

You see Garth we like you, and even when you insult us doomers we still come back for more!

We should all enjoy our lives but never forget to keep a watchful eye on your government officials! Never allow them to chip away at your freedoms, rights and civil liberties!

#339 St.Ephen Harper on 04.08.13 at 7:11 pm

If this BLOG gets more than 350 comments per topic..it will be subject to an extra tax.

#340 condopoor on 04.08.13 at 7:26 pm

Garth,

You must really want to give up sometimes. Kudos for your persistence.

#341 Piccaso on 04.08.13 at 7:32 pm

Americans are protective about foreign workers taking American job positions. I was just denied a TN Visa to work in the U.S. by a CBP at Toronto port of entry.

#342 Future Coder on 04.08.13 at 7:36 pm

I am in my last year of high school and thinking of going to university (or perhaps college) for computers. Just looking into my options. Is the future looking bright for VBA Developers?

Thanks!

#343 Loopback on 04.08.13 at 7:40 pm

Fed’s $1 trillion money-printing exercise enriches some (bailouts), impoverishes the many (food stamps). Reckless monetary policy breeds distrust.

#344 Dodged-a-Bullit-in-Alberta on 04.08.13 at 8:02 pm

Greetings: Here is a quote from an awesome book I am reading. Great description of what we are seeing today.

” We had to struggle with the old enemies of peace—business and financial monopoly, speculation, reckless banking, class antagonism, sectionalism, war profiteering. They had begun to consider the Government of the United States as a mere appendage to their own affairs. We know now that Government by organized money is just as dangerous as Government by organized mob….”

Franklin D Roosevelt, 1936 as quoted in the book {The Untold History of the United States}

I know “organized money” runs Ottawa, our own Government sells munitions to Mexico, we have ethnic groups at each others throats, banks pull the strings, and how about speculation in real estate? Is it any wonder I have a black outlook on this country. History repeats and always will.

#345 The Prophet Elijah on 04.08.13 at 8:30 pm

This post has a record number of comments, yep indeed to much cynicism and mistrust out there.

#346 Gladiator on 04.08.13 at 8:33 pm

@343 Future Coder:
I can be called a VBA coder, although officially I am called differently. Although VBA is good at some things, the big money is in Java or C++ or .NET.
With VBA you don’t have good job prospects, unless your main specialty is finance, accounting, etc and you will be using VBA to do your job more efficiently.
Good luck!

#347 Dorothy on 04.08.13 at 8:33 pm

#329-tkid
I wasn’t referring to myself, but to all those who come after. I have children in their 30′s who do not have many of the benefits my generation took for granted, and I think those of us in the working and middle classes should be darn good and angry about it.
Government and Business leaders over the past decade have successfully wittled away at many of the things that made life much more bearable for the majority of workers and, for the most part, workers have stood by and allowed it to happen. Now that so much has been lost, workers are begining to realize and get angry. But Government and Business leaders have done an excellent job of channeling that anger away from themselves and onto the generation often referred to as the “Baby Boomers”.
Well, I’m a Boomer and I’ve been complaining about this steady erosion for years, but wasn’t getting enough support from others (either in my own or the younger generation) to be able to make a difference. I think people were too busy leading “the good life” on borrowed money to spend time worrying about what was happening. But now the credit well is beginning to run dry, and workers are begining to wake up and realize how much has been taken away, I don’t want to see that anger misdirected.
It does no good to get angry at those who happen to be more fortunate by the luck of their birth. Instead, people should direct their anger at those whose selfishness and greed caused them to deprive workers of so much that had been fought for and gained by previous generations of workers. And the folks who did to the workers are the business leaders and their government henchmen, NOT your working or middle class parents.
My husband and I are Boomers, but we are also still workers, and we’ve been betrayed too. Go read the Employment Standards Act in just about any Province, and see how much has been taken away over the past 10 years. In my home province of BC it’s disgusting what has been quietly deleted, piece by piece, with so little fanfare most workers don’t even know about it. And I think its time some of those workers started to push back a little.
I disagree with those who say we should just roll over and accept it. We’ve been doing that for far too long, and look where it’s got us!

#348 Freedom First on 04.08.13 at 8:33 pm

Thank you everyone who posted on todays topic. I have never enjoyed the comment section of GT’s insightful blog as much as todays comments. Seriously….much insight shown today, and much truth. Awareness is the first step in reacting accordingly to improving ones own best interests, and thus, enabling the resources and knowledge to be able to then have the ability to help others…..sincerely….Freedom First.

Also, I am totally convinced, that Garth’s motives are always backed up with a truly honest desire to help his fellow man, and he does so with wise advice/knowledge which he freely shares with us. You all make this blog special to me, today more than ever, thank you!

#349 The American on 04.08.13 at 8:34 pm

At#342: Picasso, agreed. Americans are now, more than ever, protective about American workforce. For good reason, wouldn’t you agree? Much like Canadians emphatically denying Americans work for years on end in Canada, unless it is a highly-specialized field that cannot be immediately filled by a Canadian. Funny how that works, right?

#350 Smoking Man on 04.08.13 at 8:44 pm

People buy things they don’t need.
With money they don’t own.
To impress people they don’t like.
Welcome to the machine…

#351 Frizzzz on 04.08.13 at 8:44 pm

346 posts and no Nosty. He must be really in chill mode.

#352 Smoking Man on 04.08.13 at 8:47 pm

#343 Future Coder on 04.08.13 at 7:36 pm

I am in my last year of high school and thinking of going to university (or perhaps college) for computers. Just looking into my options. Is the future looking bright for VBA Developers?
Thanks!

Yes……. Learn C# as well, ps teach your self on line..

Don’t waste your money

#353 Fatal attraction — Greater Fool – Authored by Garth Turner – The Troubled Future of Real Estate | The Affluent Boomer™ on 04.08.13 at 9:07 pm

[...] Increasingly, people are anti-markets. Anti-bank. Anti-government and politicians. Anti-corporations, anti-wealthy. Anti-America. Anti-public worker. Mistrustful, suspicious, wary and aloof. The way so many folks here believed Canada was preparing laws to steal bank deposits, like in Cyprus, was ample evidence. That takes a helluva us-and-them mentality, and a belief the social contract’s been shattered. Continue reading → [...]

#354 tkid on 04.08.13 at 10:10 pm

It is the debt, Dorothy. Repaying the debt, incurred for services already rendered by various goverments – municipal, provincial, and federal – is eating up more and more of yours and my taxes. It is getting so bad that ‘special levys’ will be or already are levied for services and infrastructure that is supposed to be paid for out of taxes.

Protesting up and down main street, making life difficult for big business will have one result and one result only: they leave and take the jobs with them.

#355 debtors_winners on 04.08.13 at 11:32 pm

#335 We are turning into Soviet Russia here.
—————————————————————
It’s hardly would be a case here, as Soviet Russia had free primary and secondary education, free medical care, guaranteed employment for everyone, zero crime rate, state policy of providing mandatory housing for every citizen etc…etc there was no Lady Gaga kind of entertainment though, but other than that it was not bad at all.. oh… and any kind of speculation was illegal.. greed was considered to be amoral… and people weren’t praised for whatever “success” they were regarded for their achievements and contributions… please don’t let me to carry on… i won’t be able to help myself leaving that subject

#356 Happy Renter on 04.09.13 at 12:44 am

#313 Old Man
Heh heh. – GF on the side? Oddly enough, you’re not the first to suggest such a silly idea. No, in fact he’s quite devoted to my mother and I’d have a real hard time believing that after 55 years of marriage he’d be taking the time.

He just happens to enjoy the work he does. He enjoys getting out of the house for a purpose that has productive meaning to it that gives him something in return. Truth is, he works in a hardware store and finds a great deal of value in being able to share his knowledge with customers.

I tend to think the “nattering wife” routine is just a way to put a humorous face on doing what many seem to find a repugnant concept. That being, refusing to quit.

I too, will work until I’m no longer able to do so.

#357 Happy Renter on 04.09.13 at 12:55 am

#333 Stickler

I will label it broken man syndrome.

Is that a professional opinion?

Truth is, he works because he can and finds enjoyment in doing so. Is that so hard to understand that you have to label it as a bad thing?

He also happens to enjoy getting out and playing golf as much as he can. Is he supposed to stop doing that also?

Apparently, you didn’t get the point I was trying to make. Would you prefer that he crumple up in a ball and leave life to those 20 years younger?

I’ve also got a father in law that is 88 and he just won’t quit going either. Give him the chance to make a buck doing something productive. Think for one second he’d say no?

If you enjoy life, what is retirement? Ever hear the old phrase “if he ever quits, he’ll die” ? In my mind, the word retirement implies a death sentence.

If you’re young of heart, there is no such thing as getting old. Getting old is just a state of mind.

#358 Small Town Steve on 04.09.13 at 2:58 am

#223 jess on 04.08.13 at 9:16 am
small town steve…is this your source?
——————————————————————-

No but that was an interesting link!

#359 Small Town Steve on 04.09.13 at 3:18 am

This was penned in 1941, does not matter if you love or hate her this was well written.

http://fare.tunes.org/liberty/library/taifc.html

#360 Stickler on 04.09.13 at 8:41 am

@#358 Happy Renter on 04.09.13 at 12:55 am

“Apparently, you didn’t get the point I was trying to make. Would you prefer that he crumple up in a ball and leave life to those 20 years younger?”
——
>> >your new comment paints a very different picture then your first.

Your first comment paints a grim view of an unhappy man with nothing to do but work…because he does not know what else to do.

You are implying 2 choices for him: 1/ crumple up in a ball or 2/ go back to work.

Of course what I want is for him to have a happy healthy fulfilling retirement. Why can’t that be a choice? Looks like you did not understand my point.