Busting the banks

protest

Remember when F murdered the 30-year mortgage last July? Well, it didn’t exactly happen the way the elfin deity had expected. But this unruly little blog has learned that it will, next week.

Scared of the housing bubble they said didn’t exist and worried about runaway consumer debt they helped create, the feds last summer decreed mortgage insurance would no longer be available for mortgages longer than 25 years. That helped start the great deflate now leaking the real estate gasbag. First-time buyers were creamed and the condo market nailed.

However, the banks did not play nice with a finance minister they now see as a meddling twit. Instead of just shelving 30-year loans the way F intended, they’ve kept offering them, advertising them and writing them. The only wrinkle: to qualify you need 20% down, bypassing mortgage insurance.

For example, over at RBC, our largest bank, 30-year amortizations are showcased. “A longer amortization provides you lower monthly payments and because of this it is appealing to many people,” it says. “However, it does mean that more interest will be paid over the life of the mortgage and you will build the equity in your home at a slower pace.” You bet it does. The effect of shoving debt further into the future is dramatic. And it’s ballooning of credit which has Ottawa ready to take some drastic action.

For example, even on a teensy $150,000 mortgage at 4% over a five year term, extending a 25-year am to 30 years increases the interest shelled out from $86,707 to $106,779 – an increase of 23%, in return for a monthly payment lower by less than eighty bucks.

So today, every one of the Big Six banks continues to thumb its profitable nose at the feds, merrily penning 30-year deals. In fact a few lenders, like Vancity, Coast Capital and Laurentian Bank even have 35-year loans available.

Last week the CEOs of the monster banks were given a clear message that 30-year mortgages need to be wiped away. Completely. In fact, they’ll be banned. That letter will go out next week, the result of a decision made jointly by the Department of Finance, OSFI (the bank regulator) and the Bank of Canada. Regulated financial institutions will also be prevented from buying any securities which are made up on mortgage with 30-year ams.

Flaherty Why is F turning big dog on the banks?

Because real estate isn’t croaking fast enough. As over-the-top as mortgage brokers, realtors and developers think Ottawa’s anti-house actions have been, TPTB are not satisfied. Consumer debt keeps rising. House prices have not fallen far enough, fast enough. The credit bubble inflates more, and the troika is convinced this will end badly.

It’s why F waded into the middle of the mortgage wars last month, forcing banks to raise deep-discounted loan rates to prevent a “race to the bottom.” Now it explains banning long mortgages, a move the Finance Department estimates (internally, and secretly) could shave another 5% to 10% off sales.

Also heavily influencing the decision are worries that when the International Monetary Fund comes calling in a few months, the feds will get a fail on doing enough to crush Canadian house horniness. The Financial Sector Assessment Program (FSAP) of the IMF and World Bank is interested in Canada because we have too-big-to-fail banks which dominate the financial sector, and are critical to the economy.

Says the IMF: “In jurisdictions with financial sectors deemed by the Fund to be systemically important, financial stability assessments under the FSAP are a mandatory part of Article IV surveillance, and are supposed to take place every five years.” And this is Canada’s year – which is why all those bubble-pricking actions were taken in concert last summer, killing long mortgages, ending CMHC insurance for million-dollar homes, upping debt ratios and banning cash-back loans.

They were supposed to have worked by now. Houses prices were slated to be falling steadily. But instead only sales have been clipped. Now F feels thwarted by the banks.

This is so not over.

195 comments ↓

#1 Mike on 05.09.13 at 8:48 pm

Flaherty looks really worried in that picture :)
He sure knows what’s coming!

#2 T.o. and GTA bidding wars debunked -May 09 on 05.09.13 at 8:49 pm

http://recharts.blogspot.ca/2013/05/to-bidding-waars-debunked-may-09.html

http://recharts.blogspot.ca/2013/05/gta-bidding-wars-debunked-09.html

#3 Josef on 05.09.13 at 8:49 pm

2-1!!! Oh Yeah!!! Baby!! Yeah!!!

#4 pathcontrolmonk on 05.09.13 at 8:51 pm

http://metronews.ca/news/vancouver/664624/vancouvers-hobbit-house-for-sale-for-2-86-million/

Here is a nice $2.86 mil SFH fixer-upper for sale in Vancouver. Built for hobbits but should suit an elfin deity well too.

#5 Randy on 05.09.13 at 8:52 pm

Issue an IPO for CHMC !!

#6 Victoria Real Estate Update on 05.09.13 at 8:53 pm

“Teranet said Victoria’s index fell 3.2 per cent in March, the biggest one-month drop for the city in nearly 23 years of data recording.” – Winnipeg Free Press, April 17, 2013

That sums it up for Victoria in terms of where house prices have been trending. Prices in all areas of Greater Victoria are down somewhere close to -10% from peak, but this 10% correction doesn’t compare in any way to the total correction that Victoria will experience over the next number of years.

According to many studies, Canada has the least affordable real estate in the world, when considering the important metrics of house price to income ratio and price to rent ratio. Canada’s housing bubble is currently bigger than that seen in the US at peak. We all know that the US housing market crashed.

Victoria and Vancouver experienced the biggest bubble price run-ups of all Canadian cities. In the US experience, the cities that were the biggest price gainers (Los Angeles, San Diego, Phoenix, Miami, Las Vegas…) were also the biggest price losers when the US market crashed. Victoria’s price correction/crash will be very big.

At the peak of the US housing market, the housing industry pumpers, realtors, bankers, brokers, real estate boards, etc. all did their best to convince the public that all was fine and that it was a good time to buy a house. On August 21, 2005, Glenn Hubbard, Dean, Columbia Business School, spoke on CBS news where he said: “I don’t think we’re likely to see a large nominal price collapse, that is largely falling house prices, but I think we’ll see much slower rates of growth in house prices after 2005.”

In March 2007, this Los Angeles house was valued at $499K. By July 2012, its value had crashed all the way down to $200 K. Many people in the US believed the “it’s a good time to buy” message that Glenn Hubbard and others trumpeted as the US housing market reached its peak. Many bought houses near the peak and we all know how devastating that turned out to be for millions of US families as the US housing market crashed.

The US isn’t the only example of a major housing market correction in the world. Indeed, more than 50 countries have experienced corrections/crashes of this magnitude over the past 40 years. This is the expected outcome when any country experiences a housing price bubble. Canada’s experience will be no different.

Don’t make the mistake that so many Americans made and buy into the hype of the house pumpers. Do not buy a house in Victoria right now. Save your money and wait for house prices to correct substantially. Avoid future financial peril by not buying into this falling market. If you buy at a much lower price you can look forward to price appreciation instead of price depreciation.

Girls and guys, I’ve gone through the emotions of wanting to buy a house and wanting that house right now. Not now, right now. It would simply be a very bad idea to enter the housing market at this time. Wait another 18 to 24 months and then reassess the situation. You will thank yourselves as we have.

Until next time – Cheers!

#7 bill clinton on 05.09.13 at 8:54 pm

Not fuurst, but may be the first ten to post?

#8 CalgaryGuy on 05.09.13 at 8:54 pm

What is TPTB?

#9 AK on 05.09.13 at 8:58 pm

#3 Josef on 05.09.13 at 8:49 pm
“2-1!!! Oh Yeah!!! Baby!! Yeah!!!”
——————————————————————–
Dude, you need to get a life. Geez…

#10 brunette on 05.09.13 at 8:58 pm

Gina Gershon has always been one of my favorite actresses. So beautiful too.

#11 An Importation To Prop The Ponzi Scheme on 05.09.13 at 8:58 pm

Mr. Turner, I raise my hat to you for this post. It clarifies the why I see what I see and I did not knew why.

#12 Victoria Real Estate Update on 05.09.13 at 9:01 pm

Trying the link to the Los Angeles house again.

#13 Chickenlittle on 05.09.13 at 9:10 pm

I thought #3 was referring to the Ottawa-Montreal game…

I guess prices haven’t gone down because people are still stupid enough to think they are worth as much as the land pimps say they are.

I have changed my mind.I have decided not to blame RE agents for this phenomenon. I blame all of the people buying these places at these prices.

Having said that, I have heard only about the Leafs on this blog, but it was the Canuckleheads that got swept.

Q: Why are the Canucks like a training bra?
A: Minimal support and no cups.

#14 Dead Give Away is the best song of 2013 on 05.09.13 at 9:11 pm

On a long enough time line the survival rate for everyone drops to zero. In the mean time, lets lighten the mood a bit. All this real estate talk gets me down. This video made my day. It’s an auto tune remix of the interview with Charles Ramsey, the guy who rescued the three girls trapped in the house in Cleveland. The video has gone viral, with over 4 million views.

http://m.youtube.com/watch?v=nZcRU0Op5P4

#15 Gladiator on 05.09.13 at 9:12 pm

Is F a faithful greaterfool.ca blawg dawg? His actions suggest so…

#16 Chris on 05.09.13 at 9:13 pm

Last evening six people were scheduled to look at an 80-year-old house in Oshawa, Ont. with another six scheduled for today. Last night it sold for above-asking price — sounds like “Bidding Wars” are still alive and well.

#17 Smoking Man on 05.09.13 at 9:20 pm

To bad the camera man didn’t have a taller lense,

Look I’m late was going to say,

Index integer of the letter A

#18 DismalEconomist on 05.09.13 at 9:20 pm

I’m torn how I feel about this. As much as I feel housing in Canada is overinflated, this move by Ottawa treads a fine line. It’s fine to reign in what Ottawa will insure, but if a bank and its customer come to an agreement on what terms they’re willing to arrive at for a lending agreement that’s not being insured by the Feds, against overcollateralization of 20% or more, should Ottawa really bother to ban this activity. I could see making a case to reign it in since Ottawa would be on the hook for potential future bailouts if a bank got in trouble. But I still think F telling the banks how to be a bank stinks. How much government hand holding through the economy do we need?

#19 Boombust on 05.09.13 at 9:22 pm

We’re seeing VERY POOR sales/listings in the Greater Vancouver area lately.

Inventories for all types of housing just keep on climbing!

#20 X on 05.09.13 at 9:28 pm

Note to F – raise the minimum downpayments.

The banks have already F how much respect they have for him.

#21 Smoking Man on 05.09.13 at 9:29 pm

Ha Smoky told you dogs the herd here is house crazy mad, and with countries world wide dropping rates it’s only a matter of time before we do to… If we Wana export anything.

Low rates for the next 5 years…. Savers screwed again.

Perhaps I should go on a speaking tour…

#22 Canadian Watchdog on 05.09.13 at 9:32 pm

Insanity: "Doing the same thing over and over again and expecting different results." —Albert Einstein

Perhaps at face value, banning 30yr loans outright is yet another attempt to curb home prices to levels our government deems suitable for average Canadians. But why would big daddy F impose a ban if prices are already declining? Because his real intention is to increase mortgage payments allowing more capital to flow onto the Big Five's levered books — not to cool home prices.

The timing couldn't be more precise as the bulk of refis are now starting to come online.

#23 AK on 05.09.13 at 9:32 pm

#19 DismalEconomist on 05.09.13 at 9:20 pm
“I’m torn how I feel about this. As much as I feel housing in Canada is overinflated, this move by Ottawa treads a fine line. It’s fine to reign in what Ottawa will insure, but if a bank and its customer come to an agreement on what terms they’re willing to arrive at for a lending agreement that’s not being insured by the Feds, against overcollateralization of 20% or more, should Ottawa really bother to ban this activity. I could see making a case to reign it in since Ottawa would be on the hook for potential future bailouts if a bank got in trouble. But I still think F telling the banks how to be a bank stinks. How much government hand holding through the economy do we need?”
——————————————————————–
Take a look at what’s happening in the U.S. The only way the average Joe can buy a house there is with “Cash”.

I doubt Ottawa wants to get into that predicament.

#24 Shawn on 05.09.13 at 9:34 pm

Mis-Guided and Dangerous to Themselves and Others

Reading this blog, one hopes that those who post do represent any kind of average cross section of people.

Many of the people who post here are well intentioned but seriously mis-guided. Often they have just believed some false catch phrase like:

(These are all FALSE)

A stock (or house) is worth precisely what the market will pay you for it today.

You can’t win investing in stocks because the market is manipulated.

The United States is broke.

Big banks are technically insolvent.

The FED buys Stocks.

Hyperinflation is imminent.

The government deliberately lies about inflation.

Unemployment is really 20%.

Our apparent wealth is fake.

Commercial Banks print money.

Fractional Reserve Banking is evil.

A gain is not real until it is realized in cash.

Technical analysis is a good way to invest

Buy and Hold is Dead.

Dividends are the only return that counts.

All of these are FALSE and yet these views are apparently held by many people who post here. Worse, these views are fiercely held and defended. No one ever seems to learn and abandon such nonsense. Instead, like radical cultists, they try to spread their mis-guided doomer views.

It’s scary. Then again I do need someone to beat in the market, so thank you for that.

P.S.
Was anyone else here holding Canadian Tire as we entered today? Sweet gain today.

#25 Notta Sheeple on 05.09.13 at 9:40 pm

It must be painful for Canadian banking CEO’s to wean off the crack cocaine of 8-figure annual compensation, coming off record profits in the middle of a recession, while the rest of us peasants compete with Temporary Foreign Workers.

I mean think about it. RBC CEO Gordon Nixon made:
- $10,100,000 in 2011
- $12,600,000 in 2012
- ??????????? in 2013?

How is the man possibly going to survive this year, given Flaherty’s clampdown on the mortgage cookie jar?

Perhaps we could all take up a collection…

#26 Yellow Rox Rock on 05.09.13 at 9:43 pm

Garth,

You know any time you post something about the Banksters I am pleased.

#27 Sideline Sitter on 05.09.13 at 9:53 pm

@25: A stock (or house) is worth precisely what the market will pay you for it today.

How is this false? If this is false, what is the truth?
What something was worth yesterday, or two weeks from now, is irrelevant to value today.

#28 Big Bear on 05.09.13 at 10:05 pm

#8 Calgaryguy

TPTB = The Powers That Be aka The Old World Order

#29 Smoking Man on 05.09.13 at 10:07 pm

#26 Notta Sheeple on 05.09.13 at 9:40 pm

It must be painful for Canadian banking CEO’s to wean off the crack cocaine of 8-figure annual compensation, coming off record profits in the middle of a recession, while the rest of us peasants compete with Temporary Foreign Workers.I mean think about it. RBC CEO Gordon Nixon made:- $10,100,000 in 2011- $12,600,000 in 2012- ??????????? in 2013?How is the man possibly going to survive this year, given Flaherty’s clampdown on the mortgage cookie jar?Perhaps we could all take up a collection…
…………..

So typically socialist Canadian……

He made all the right moves, wheeled people, got the job, makes his share holders loot, pays employees way above the norm by private sector standards. And you chirp

He’s still a slave, highly paid one.

Your jelous man…… Opportunity everywhere just open your eyes….

#30 Tom Vu on 05.09.13 at 10:09 pm

2- 1 X -1 +3 /4 + GDP of Madagascar / average IQ of Ontario – Natural Log of 1.234567 =________

Winner gets to be Fiiirrssstttt next few blog

#31 EIT on 05.09.13 at 10:09 pm

I guess that means the F’in deficit won’t go away.

#32 The Affluent Boomer™ on 05.09.13 at 10:10 pm

Households have become accustomed to the monthly cost of the mortgage payments. There is a total disconnect to the true cost of debt that people are accumulating. They are simply not afraid of the long term commitment that debt represents, or the consequences. As long as they can make their payments they will continue to borrow until they cannot. F should have taken tougher actions a long time ago and because he did not take more decisive action sooner, he should be held accountable for the resulting debt levels amassed by Canadian households. Most Canadians are simply not financially equipped to understand that leverage is a two edged sword. It can be very lucrative in a rising market but can financially ruin you when the market collapses. Unfortunately many households have not experienced the devastating effect of too much leverage in a declining market. They will soon find out.

#33 Chickenlittle on 05.09.13 at 10:10 pm

#19 DismalEconomist

Ottawa does have a right to interfere because they insure most of the mortgages out there! The CHMC is government run.

Here’s a quote from the website:
Established as a government-owned corporation in 1946 to address Canada’s post-war housing shortage, the agency has grown into a major national institution. CMHC is Canada’s premier provider of mortgage loan insurance, mortgage-backed securities, housing policy and programs, and housing research.”

http://www.cmhc-schl.gc.ca/en/corp/about/index.cfm

#34 Chickenlittle on 05.09.13 at 10:13 pm

OK, I am assuming that it is gov’t run based on the “gc.ca” in the website, but you know what happens when you assume…

#35 AK on 05.09.13 at 10:13 pm

#25 Shawn on 05.09.13 at 9:34 pm
———————————————————-

My favourite one is: The FED buys Stocks.

Gee. I wonder if the FED uses a discount brokerage. LMFAO.. :-)

#36 Martin Lazi on 05.09.13 at 10:15 pm

Jimmi I m at duke and devon

#37 Smoking Man on 05.09.13 at 10:18 pm

You guys chirping banksters, our banks make 4 billion a year after all the expenses paid..

If I was a bank ceo, I would demand at leased 100 million a year

But I’m a un schooled smoking man, could never make it up the chain with out an obedience certificate..

Because they are schooled that’s why the only make a pittance of 10 million a year..

#38 Devore on 05.09.13 at 10:21 pm

#16 Chris

Last night it sold for above-asking price — sounds like “Bidding Wars” are still alive and well.

House priced below market value attracts multiple offers? Stop the presses!

#39 Shawn on 05.09.13 at 10:22 pm

Price versus Value

Sideline Sitter at 28 said:

@25: A stock (or house) is worth precisely what the market will pay you for it today.

How is this false? If this is false, what is the truth?
What something was worth yesterday, or two weeks from now, is irrelevant to value today.

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

Thank you for the excellent question. Right ,the price of today, yesterday or tomorrow is not necesscarily well related to value.

The Value of a stock may be far different than its price.

Warren Buffett has made billions buying stocks at prices that were less than value and significantly less in his view. This is the Benjamin Graham school of investing where price far less than value creates a margin of safety.

If the market refuses to recognize the higher value then the ultimate arbitrage is to own the stock forever and collect the dividend and enjoy its growth because a valuable company will provide good dividends and or grow.

#40 Tom Vu on 05.09.13 at 10:23 pm

” None are more hopelessly enslaved than those who falsely believe the Maple Leaves will ever get past the first round “.

#41 AK on 05.09.13 at 10:23 pm

#8 CalgaryGuy on 05.09.13 at 8:54 pm
“What is TPTB?”
——————————————————————–

“TPTB” is “The Powers that Be”.

#42 Devore on 05.09.13 at 10:25 pm

#19 DismalEconomist

I’m torn how I feel about this. As much as I feel housing in Canada is overinflated, this move by Ottawa treads a fine line. It’s fine to reign in what Ottawa will insure, but if a bank and its customer come to an agreement on what terms they’re willing to arrive at for a lending agreement that’s not being insured by the Feds, against overcollateralization of 20% or more, should Ottawa really bother to ban this activity

Canadian banks do not stand on their own, and owe their entire existence and market share to federal protection and regulation. The concept of an amortizing mortgage loan is an entirely artificial construct brought in through government regulations. The feds are well within their rights telling banks how to run their business, they already do. Why would mortgages be any different?

#43 Shawn on 05.09.13 at 10:28 pm

F’ ing Interference

F should worry more about the insured mortgages not the uninsured ones.

If a bank wants to lend for 30 or even 40 years to a willing and consenting adult borrower that should not be the finance minister’s or the OSFI’s concern.

OSFI has already set a minimum equity level that is designed to insure that any losses on such loans are incurred by shareholders and so depositors are not at risk and neither is the Canadian Deposit Insurance Corporation. So F off eh. And also worry about the government’s debt (you know do your JOB) before you worry about my debt F.

#44 Sideline Sitter on 05.09.13 at 10:32 pm

@40 — your explanation talks about stocks, not housing – unless that housing provides some kind of income… so, it’s not an untruth – it’s an untruth with an asterisk.

#45 prairie person on 05.09.13 at 10:33 pm

Make it illegal for bank employees to be paid commissions for pushing mortgages out the door. Salaries only. No bonuses. The banks have been out of control for some time.

#46 Smoking Man on 05.09.13 at 10:36 pm

#37 Martin Lazi on 05.09.13 at 10:15 pmJimmi I m at duke and devon

Love that pub, but rather that hit on cuties in kilts, I have a better hobby, getting shit faced in my back yard by myself eyes to the sky looking for Et….

A blog dog has been sending me stuff on UfOs, taking the boat to lake Erie, I have a map to the under water base,,
I making contact this year….

No one’s perfect

#47 Spiltbongwater on 05.09.13 at 10:38 pm

#8 Calgaryguy

http://lmgtfy.com/?q=TPTB

#48 adam smith on 05.09.13 at 10:41 pm

Fed actually does buy stocks.

I wander how long the savers stupidity would last.

Food and energy inflation in the last 10 years is significant. So are the tuitions and medical and insurance cost increases.

#49 adam smith on 05.09.13 at 10:43 pm

Why should mortgages be insured in first place? The prices would be probably half of the current levels if it was not for CMHC. Just let the banks assume the damn risk and watch out. 90 presents of the loans in the last 4-5 years would not have been made and the bubble would have been much smaller.

#50 TurnerNation on 05.09.13 at 10:44 pm

TD’s blanketing Hogtown’s downtown with its “Mortgage Vacation” ads. How many missed months ’till you’ve faked a 30 year amort?

In Soviet Kanada, vacation takes you!

#51 mortgagebrokeron on 05.09.13 at 10:46 pm

F is just trying to undo what he did previously… Engineering a soft landing…. All a soft landing does is give pain over a prolonged period of time

#52 Exactly what I was thinking on 05.09.13 at 10:47 pm

Interesting, I just guessed this was coming. I am a beginner and a person forced to do his own analysis, if I could see this coming this must be a big problem. Thanks Garth.

http://recharts.blogspot.ca/2013/05/wow-my-predictions-came-true-in-same-day.html

PS: I guess this is happening the same way in any other major city.

#53 Charlie on 05.09.13 at 10:48 pm

#25 Shawn

“A gain is not real until it is realized in cash.”

How is that false? I guess you count pensions as part of your net worth?

As for the Fed not stimulating the markets:
http://www.bloomberg.com/news/2013-05-07/u-s-stock-futures-are-little-changed-ea-shares-advance.html

Earnings have a part to play of course (although alot is from international exposure for the DOW). Otherwise if you think the Fed has no effect on markets, what planet are you living on?

#54 TurnerNation on 05.09.13 at 10:48 pm

I see F has soured on debt. Pucker up!

#55 neo on 05.09.13 at 10:58 pm

All F is doing is window dressing. Nothing to see here.

#56 Shawn on 05.09.13 at 10:59 pm

House Value versus Price

Sideline sitter at 45 said to me @40 — your explanation talks about stocks, not housing – unless that housing provides some kind of income… so, it’s not an untruth – it’s an untruth with an asterisk.

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

Good point. So houses also have values that differ from price. One value is the value based on rent value. Another value is based on reconstruction cost (minus depreciation to reflect age and obsolescence). Land gets a bit tricky as it can’t be constructed so it is tough to set an intrinsic value for land admittedly.

I suppose few statements are 100% true or 100% false in all circumstances but I standby the fact that the beliefs I listed are largely or maybe 99% false and are 100% dangerous to believe.

#57 Smoking Man on 05.09.13 at 11:02 pm

The more crazy I get the more superficial friends I lose the happier I get…….

Wife’s on side,,, wtf…

Is this a sexless midlife crisis……..?

If LCBO goes on strike, I’m doomed, but then again I can load the pick up huge with booze in Buffalo, pay taxes and dutie, and charge 3 times the rates to lashes who are short stacked…..

Opportunity everywhere…

#58 Shawn on 05.09.13 at 11:07 pm

Charlie at 54 said:

#25 Shawn

“A gain is not real until it is realized in cash.”

How is that false? I guess you count pensions as part of your net worth?

As for the Fed not stimulating the markets:

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

I said the Fed buys stocks is false I said nothing about stimulation (which is true Fed does stimulate)

And why yes I do count my pension as part of my net worth. The definition of a financial asset is something that is expected to produce future dollars.

For that matter a government job is basically an annuity and is worth something as well especially if the employee is overpaid. (But I don’t advocate counting that)

I can cash in my pension at will. To suggest that a Teacher just retired does not have a higher net worth than a similar person with no pension is ludicrous. A bank is free not to count a pension as an asset if it wants, also not to count illiquid assets. Failing or choosing not to count something does not make the something go away.

And most would agree that Warren Buffett is a Billionaire despite that some 98% of his wealth is just “paper gains” on Berkshire stock. Paper than can be turned to cash in a moments notice is as good as cash. Illiquid paper may not be as good as cash but it is far from worthless.

#59 XKR on 05.09.13 at 11:20 pm

I live in a small (about 1100 sqft) post wartime era home. Its a solid neighbourhood in east Hamilton. For whatever reason prices around here are on rocket fuel, up 25% over the past two years and they keep climbing. Some are closing in on 300K. Unbelievable.

#60 Smoking Man on 05.09.13 at 11:23 pm

Just saw a new harp attack ad on Justin Trudo, so going to back fire…..

Why are people so stupid…..

#61 Herf on 05.09.13 at 11:32 pm

#29 Re: “TPTB”

I think you’re correct, but my first interpretation was “The people to blame”

#62 Carpicker on 05.09.13 at 11:33 pm

@37 Martin

Nice patio, bad food. Furi

#63 skoki on 05.09.13 at 11:33 pm

Love your Blog, co-worker from DampCouver introduced me a year ago. Do you have any thoughts on smaller markets in the Niagara area(Fonthill) i.e. rent vs buying? There are limited opportunities to rent but I think the commuters to the Godless GTA who own homes are screwed. So I am wise in waiting to make an offer?

#64 thiscountryisgoing down the toilet on 05.09.13 at 11:38 pm

So what…….lower house prices will not kill the real estate market…far from it. So what if the speculators and greedy insiders get creamed…..seriously…so what? A certain ethnic group of residential builders is already screaming for a bail out in exchange for votes in BC…..but is that what we have to do to secure a loyal Canadian? There are too many special interest groups sucking the Canadian taxpayer dry….cut them loose….all of them……we owe no one nothing for their ability to fly into our country.

Prices are 50% over priced…the easy money policy that was started in 2000 has doistorted the market……lets turn the clock back…….wages, pensions, taxes….everything clawed back to before the madness was initiated. The market should have self corrected a long time ago……..the depression created by government interferance was inevitable……now its time to pay the piper………reversion to the mean is natural and healthy.

We’ll see a lot of socialist blow back from this……you bet……but do you want bail ins to become the norm….how about 100% taxation?

#65 Herf on 05.09.13 at 11:41 pm

#61 “Why are people so stupid…”

They probably practice a lot. Or, their {take your pick: mental, emotional, moral, spiritual, all of the preceding} faculties are simply “stuck on stupid”.

#66 JimH on 05.09.13 at 11:57 pm

#24. AK
You’re rather badly mistaken if you imagine that mortgages here in the USA are out of reach of then ‘average Joe’!
BOA, Wells Fargo, etc. etc. are only too eager to write mortgages up to 30 yrs. for qualified buyers.
You’re out of touch, my friend! Give any of the big banks websites an honest try and see for yourself!
Sales are way up here in AZ and also in my other home State of MO. Surely, someone as wise as you are not suggesting that the surge in buying is all covered by cash sales?….
Let’s get serious!

#67 Cory on 05.09.13 at 11:59 pm

If realtors were smart, which they’re not as is obvious, they’d stay below the radar. What do these bankers and realtors (do they even have a grade 12??) think would happen by continuing to poke the little bear?… I said this before that this continuous pump job would backfire and if what you say is accurate Garth, and I believe you based on your track record here, then this will be a major kick to these pumpers and hopefully it will finally kill this outright stupidity in residential real estate.

I also said that now that the world had eyes on Canada and our personal debt levels were in the spotlight that this was bad for Canada. The time is here.

I hope they tighten credit even more than what you mention.

#68 T.O. Bubble Boy on 05.10.13 at 12:04 am

Has anyone ever engineered a “soft landing” from a bubble like this?

#69 popados on 05.10.13 at 12:13 am

you should of shown the bottom half of that picture.popa wundering?

#70 Crash Calaway on 05.10.13 at 12:17 am

F attempting to create a TARP PROGRAM in Canada?

Is it possible his penchant to topple real estate
might be that the little elf got burned buying a sh#t load of tarps from China that can’t be pawned off. Now the only alternative to move those tarps is to get people out of their homes and into tents.
2 tarps stapled together make fine tents!

#71 Inglorious Investor on 05.10.13 at 12:18 am

Governments should stop meddling in the markets. Doing so always results in unintended consequences, such as price distortions, volatility, and misallocation of capital. And when that meddling includes cheap money, you get bubbles, bubbles, bubbles. And we all know where that leads.

Furthermore, changing the rules of the game creates instability and a sense of inequity that undermines confidence in the “system.” Think of this generation of young people who now feel they are getting the short end of the stick because homes have become so expensive––and now the rules are making it even harder to get into the market. I talked to a young, recently married man just the other other day who made this very complaint––and he’s a mortgage agent at a large broker. Meanwhile, those who purchased homes over the past decade received all kinds of incentives (like free money and “look-the-other-way” mortgage rules).

Government should set prudent regulations and stick to them, and then let the free market figure out a fair price based on supply and demand, and risk/reward. Ups and downs in the markets and the economy are natural and necessary to keep the system stable, prices fair, and cleanse excesses.

The rules should typically only be changed if there is a fundamental change in the economy. They should not be changed for political reasons, or to aid special interests (cough, the banks, cough), or for a short-term boost in economic activity.

Let the market figure it out. It is always smarter than government.

#72 Devore on 05.10.13 at 12:20 am

http://business.financialpost.com/2013/05/08/cmhc-new-identity/

CMHC takes first steps to new identity

“You get what you pay for,” is how Leblanc described the current CMHC board. “They are out of their league.”

Of course we’ve been saying for only years that CMHC board is stacked with the definition of conflict of interest and lack of qualifications.

#73 jan on 05.10.13 at 12:21 am

Notta Sheeple said:

It must be painful for Canadian banking CEO’s to wean off the crack cocaine of 8-figure annual compensation, coming off record profits in the middle of a recession, while the rest of us peasants compete with Temporary Foreign Workers.

I mean think about it. RBC CEO Gordon Nixon made:
– $10,100,000 in 2011
– $12,600,000 in 2012
– ??????????? in 2013?

How is the man possibly going to survive this year, given Flaherty’s clampdown on the mortgage cookie jar?

Perhaps we could all take up a collection…

I say…WE NEED A WAR NOW !!!!!!!!!!
What’s the matter with you English people….don’t you have any marbles left ???

#74 Timbo on 05.10.13 at 12:23 am

Good one tonight Garth…are you trying to start a panic?

http://www.cnbc.com/id/100725955

” According to data from Japan’s Ministry of Finance, Japanese investors became net buyers of foreign bonds in the last two weeks, buying 309.9 billion yen ($3.1 billion) in foreign funds in the week to May 4. They purchased 204.4 billion yen worth of foreign bonds in the previous week.

While the data is only for two weeks, if this trend of capital flight continues, the yen could see more downward pressure in the months ahead, say analysts.”

can’t raise rates , debt is too large…looking at the exits….tick.tick…..

http://www.theglobeandmail.com/news/politics/eu-dismisses-canadas-threat-to-appeal-to-wto-over-oil-designation/article11818970/

“He rejected the notion it would harm EU-Canada trade talks because, he said, the directive has yet to come into effect.

Asked whether he considered it pushy for Mr. Oliver to travel to Europe and make a threat before the directive is settled – behaviour that might rile Canada if roles were reversed – the EU ambassador simply replied: “You said it.”

Mr. Oliver, who was in London speaking to a business audience Thursday, sent out mixed messages as he tried to address fallout from his remarks.”

If your going to point fingers..get ready for the punch..

#75 Twooper on 05.10.13 at 12:28 am

Banning 30 year loans seems to be a non-story because they’re not CMHC insured anyways. Garth, you’ve said yourself that the average down payment is 7% so why would this even have an effect?

#76 Grantmi on 05.10.13 at 12:30 am

#3 Josef on 05.09.13 at 8:49 pm

2-1!!! Oh Yeah!!! Baby!! Yeah!!!

You’re an IDIOT!!!!!!!!!!!!!!!!!! Piss off.. go troll somewhere else with your ‘I”M FACKING FIRST” postings!!!

#77 Crispy bacon on 05.10.13 at 12:30 am

Congrats on the top financial blog award! Any plans for your windfall of $100?

#78 DJB on 05.10.13 at 12:30 am

If the banks want to keep 80% mortgages with a 30 year amortization on their books let them.

If the banks are getting bulk insurance from CMHC and selling them off then I see the problem.

Are these mortgages on the banks books or have they been securitized and sold off?

#79 bill on 05.10.13 at 12:35 am

#58 Smoking Man on 05.09.13 at 11:02 pm
go to Quebec and buy your booze.
pass on the border. you will thank me later
it would be a pity if all you were allowed is three cases of beer….which is what happened last time we had a beer strike.and no they didnt believe that all the signatures on the piece of paper we concocted with the guys at the rugby club….
talk about a disappointed rugby club…which will remain nameless to protect the guilty.
oh god the pain- blitz swineherd…what a foul ‘beer’
just an awful memory now. brraaaggghhh!!! get the willies just thinking about it.

#80 L on 05.10.13 at 12:37 am

Does this have anything to do with existing mortgages with 40 year amortizations up for renewal in the next 12 months with a 5 year term? The term would be renewed another 5 years with the same 40 year I assume.

#81 Grantmi on 05.10.13 at 12:41 am

#21 X on 05.09.13 at 9:28 pm

Note to F – raise the minimum downpayments.

The banks have already F how much respect they have for him.

VERY SIMPLE!!!

Just lower the mortgage insurance to ALL the players, including CMHC and it’s shadow players to only for those homes under $500,000.

If you can afford a $750,00 home… YOU’RE RICH!!!!!! You don’t need the insurance, and the BANK should take a risk on you…. ON THEIR OWN!!!

#82 VanPerfecto on 05.10.13 at 12:45 am

Love this blog but some of the logic and common sense doesn’t totally jive with Vancouver. Look at this old house on a small lot nowhere near the water. Asking 2.86 million and can be torn down. It’s not just the high housing prices it’s the reality that after being bought the house is torn down and a new larger house built. This puts the cost in the millions. Even a 50% price reduction would still be unaffordable by “Canadians”. Buying crummy houses for a million plus, then tearing down the house and building a new house!!!! Who can afford this. It’s pretty clear what is going on here and it’s called tax evasion.
http://www.vancouversun.com/business/affordability/Vancouver+remaining+Hobbit+Houses+sale/8364087/story.html

#83 Kilby on 05.10.13 at 12:46 am

61 Smoking Man on 05.09.13 at 11:23 pm
Just saw a new harp attack ad on Justin Trudo, so going to back fire…..

Why are people so stupid…..

Most I know find the attack ads insulting and just backfires like you say…Amazing advisors Harpler must have not to see this! Just makes him look desperate. Trudeau’s minions must love the attention.

#84 Notta Sheeple on 05.10.13 at 12:48 am

#30 Smoking Man on 05.09.13 at 10:07 pm
“So typically socialist Canadian………Your jelous man….”
====================

Socialism, no. Social conscience, absolutely.

Jealous, no. I have life. On the other hand, after multiple consecutive years of of 8-figure compensation, clearly Gordon Nixon does not.

#85 L on 05.10.13 at 12:49 am

I do agree that the market should be brought back to reality when a 10 year old 1400 sq ft townhouse in Richmond is still selling for $671,000 today:

#9-6333 Princess Lane MLS #V1003164

#86 Tom Vu on 05.10.13 at 12:56 am

#36 AK on 05.09.13 at 10:13 pm

#25 Shawn on 05.09.13 at 9:34 pm
———————————————————-

My favourite one is: The FED buys Stocks.

Gee. I wonder if the FED uses a discount brokerage. LMFAO.. :-)

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

One = Bozo
Other = Bozo doppleganger.
Both = Gov’t golden pension.

FED not buy stock directly……

FED lends shekels (aka Xerox greenbacks on triple shift) to Wall Street Bankster cronies at “next to zero interest” rate to buy stocks and then pump and dump.

PS: Maybe Quantitative Easing between ears

#87 jan on 05.10.13 at 1:03 am

#44 Shawn on 05.09.13 at 10:28 pm
F’ ing Interference

F should worry more about the insured mortgages not the uninsured ones.

Bull !!!
Because, if say Vancity goes bankrupt because of those 30 35 amorts then Ottawa will still have to bail them out with our dollars.. That makes me insanely angry.

#88 Notta Sheeple on 05.10.13 at 1:04 am

#38 Smoking Man on 05.09.13 at 10:18 pm
“…..If I was a bank ceo, I would demand at leased 100 million a year….”
====================

Curious, at what level of bank CEO compensation does the law of diminishing returns kick in?

Given that, statistically, a bank CEO might walk the planet for 84.2 years, would his life be better off spending $16.5 million/year instead of a paltry $10.1 million/year.

Just askin’, inquiring minds need to know….

#89 R. Olausen on 05.10.13 at 1:40 am

They are doing plenty to scotch the long mortgage. You know they gotta be good.

#90 Screwed on 05.10.13 at 1:43 am

So the IMF is taking a look at Canada, eh? What should our strategy be when Lagarde actually came to town? Does anyone here still believe that Canadians are free people and that Canada is still a sovereign nation when international lenders and regulators are sending in the inquisition to check up on us mere mortals and our debt “problems”?

The Greek probably wish they’d never allowed the IMF to land on their runways. But then again, the airspace is governed by an international body and international airports must allow their jets to land.

Open your eyes, folks. We are not free and we are not in control of our own nation’s destiny. F knows and he’s worried. Best is to keep a lid on things and not rub the inquisition’s noses in our debt/GDP, private and public debt loads and so on.

If all fails, at least we can print our own currency. Greece can’t and is nearly starving to death. It will take a government with balls to push the button and deploy the financial nuclear option. Don’t worry about inflation or hyperinflation. Canada has all the resources, all the commodities and all the food supplies it will ever need and then some. We can afford to inflate our debts away and there’s nothing the international private banking cabal can do about that.

But like I said, it would take a government willing to work for Canada and in the best interest of Canadians. A government that has the cajones to show the IMF the door for starters.

#91 betamax on 05.10.13 at 1:46 am

#43 Devore: “Canadian banks…owe their entire existence and market share to federal protection and regulation.”

Very well said. Thanks for being a voice of reason on this blog.

#92 Cowpoke on 05.10.13 at 1:46 am

how can a bank be systematically important? really?

#93 Dr. Oblivious on 05.10.13 at 1:59 am

“The more crazy I get the more superficial friends I lose the happier I get…….

Wife’s on side,,, wtf…

Is this a sexless midlife crisis……..?

If LCBO goes on strike, I’m doomed, but then again I can load the pick up huge with booze in Buffalo, pay taxes and dutie, and charge 3 times the rates to lashes who are short stacked…..

Opportunity everywhere…”

Congratulations, this may have been your stupidest post yet.

#94 willworkforpickles on 05.10.13 at 2:03 am

What can you buy in America for a thousand dollars?
http://static.guim.co.uk/sys-images/Business/Pix/pictures/2008/10/24/det4.jpg
….and it’s still available

#95 Michael C on 05.10.13 at 2:09 am

Every single bank stock on the TSX dropped today. What did they know first and who sold out?

#96 AngryMan127 on 05.10.13 at 2:15 am

I’ve been reading this blog for years now… Garth’s legions waiting for the sky to fall – and all the while, like Garth rightly says, it has defied all market sensibility – it has gone up….and up…then retreated…then gone up and up.

So what gives? Maybe what the BOC and Flaherty do doesn’t have any effect on the Canadian RE market.

Maybe the money we spend on “Made in Asia” goods doesn’t actually go back to Asia. …I mean would you send it back? Maybe our tiny little Canadian market has been inundated by vast sums of capital and will never ever return to where the wishful thinking loyal readers want it to go.

#97 souvereigninternational on 05.10.13 at 2:17 am

#25 Shawn on 05.09.13 at 9:34 pm wrote

“Was anyone else here holding Canadian Tire as we entered today? Sweet gain today.”

- I’m sure Warren Buffet did. The guy is 83, what will you do when he kicks the bucket. As for the rest of your Drivel …some people only see in black and white and you are one of them.

#98 souvereigninternational on 05.10.13 at 2:33 am

#44 Shawn on 05.09.13 at 10:28 pm

now you actually make sense, when you think on your own. Hail Buffett.

#99 willworkforpickles on 05.10.13 at 2:37 am

and this fixer upper….. can be had for a song
http://igotsomechildcats.tumblr.com/image/42449893226

#100 Buy? Curious? on 05.10.13 at 2:59 am

Garth, 7 out of 10 on today’s post. Why not higher? From what you said is going on, it seems that there isn’t going to be the melt as you’ve described in previous posts. It’s going to a massive crash of biblical proportions! I know you’re warning to prepare financially but what about the women out there that have no hot tubs? I’m going to do my part and try to save them. “Ladies, all you need is a plastic cup and an open mind! Casa di Buy? Curious? is here for you!” Garth, you’re welcome to stop by as well.

http://www.youtube.com/watch?v=9R6Ibz31DtE

#101 Pulp Faction (Dorf) on 05.10.13 at 3:33 am

Nice article. Meaty.

#102 Buy? Curious? on 05.10.13 at 4:41 am

Garth, look at Mulcair giving Harper the business using Arrested Development references. You’re a 1000 times cooler than that mofo and your zingers are original!

http://gawker.com/canadas-opposition-leader-uses-arrested-development-qu-499076734

Please tell me that before you turn grey and toothless that you’ll take one more crack at politics. If not for me, but for the future senators of Canaduh who may have to diddle with their expenses to make ends meet.

http://www.youtube.com/watch?v=5posU08HjXg

#103 Timbo on 05.10.13 at 7:04 am

http://www.cnbc.com/id/100726168

“If housing rolls over, this company is going to have serious problems,” Reuters cited him as saying at the Sohn Investment Conference. The news agency said he added that the housing market is troubled and estimated the domestic funding gap for the six big Canadian banks at roughly $427 billion. ”

Bail me out Canada, I’m a nice Banker!?…….

http://oilprice.com/Energy/Crude-Oil/Middle-East-Oil-Markets-Contracting.html

“OPEC members said they may have to start looking around for new customers now that U.S. oil production is expected to top 7 million barrels by the end of this year. Nigerian energy officials said this week from Houston they were packing up shop and taking their crude oil to Asia. OPEC is adjusting to lower demand for its crude oil from the United States at the same time that its own members are increasingly the subject of international concern.”

Oil searching for buyers? Who would to thunk it……

#104 AK on 05.10.13 at 7:07 am

#87 Tom Vu on 05.10.13 at 12:56 am
#36 AK on 05.09.13 at 10:13 pm

#25 Shawn on 05.09.13 at 9:34 pm
———————————————————-

My favourite one is: The FED buys Stocks.

Gee. I wonder if the FED uses a discount brokerage. LMFAO.. :-)

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

“One = Bozo
Other = Bozo doppleganger.
Both = Gov’t golden pension.

FED not buy stock directly……

FED lends shekels (aka Xerox greenbacks on triple shift) to Wall Street Bankster cronies at “next to zero interest” rate to buy stocks and then pump and dump.

PS: Maybe Quantitative Easing between ears”
——————————————————————–
#87 Tom Vu on 05.10.13 at 12:56 am

You are a clueless Moron. Enough said.

#105 Or Best Offer on 05.10.13 at 7:09 am

Garth,
Can you explain how these decisions are made? There needs to be a lot more to it than Ol’ Jimbo sitting in a big chair thinking up ideas….
Who is actually sitting around the table with him?

#106 AK on 05.10.13 at 7:18 am

#77 Grantmi on 05.10.13 at 12:30 am
#3 Josef on 05.09.13 at 8:49 pm

2-1!!! Oh Yeah!!! Baby!! Yeah!!!

“You’re an IDIOT!!!!!!!!!!!!!!!!!! Piss off.. go troll somewhere else with your ‘I”M FACKING FIRST” postings!!!”
——————————————————————–

LOL.. It’s good to see that the masses are getting annoyed with the childish behaviour of a few Moronic Idiots..

#107 neo on 05.10.13 at 7:20 am

The Nikkei year-to-date is up 40%. That’s right 40%!!. The Yen is at a 4 year low. I’ll be waiting for Garth to have another post about how this strength is indicative of what a strong domestic and global recovery is taking place and not the simple truth that it is Central Bank policy on steroids. All of Asia is now tripping over themselves to devalue their currencies. It’s like the equity makets are on auto pilot up. What is happening is a farce and Garth seems to be defending it.

#108 AK on 05.10.13 at 7:25 am

#67 JimH on 05.09.13 at 11:57 pm
#24. AK
“You’re rather badly mistaken if you imagine that mortgages here in the USA are out of reach of then ‘average Joe’!
BOA, Wells Fargo, etc. etc. are only too eager to write mortgages up to 30 yrs. for qualified buyers.
You’re out of touch, my friend! Give any of the big banks websites an honest try and see for yourself!
Sales are way up here in AZ and also in my other home State of MO. Surely, someone as wise as you are not suggesting that the surge in buying is all covered by cash sales?….
Let’s get serious!”
——————————————————————–
I know. I over exaggerated, a bit. You must admit though that the rules for qualified buyers have changed drastically from the days of 2008.
I will see if I can find the article, where there were several families in Las Vegas that were unable to get any mortgages.

#109 Tony Right on 05.10.13 at 7:28 am

I have to applaud Mr. F. Mortgages shouldn’t be longer than 25 years. In economics, sometimes market power (in this case, the banks) needs to be reigned in by the government. Good work F!

#110 Deliverator on 05.10.13 at 7:34 am

The S&P 500 Index is in a clear parabolic blow-off. This is also called “a bubble”.

The markets, obviously, will correct. But it will not be a blow-off, nor is this a bubble. — Garth

#111 Rusty Venture on 05.10.13 at 7:36 am

I agree with the DismalEconomist, Shawn and the rest who think that a bank should be free to set amortization and rates for mortgages that aren’t CMHC-insured.

F controls the levers for the OFSI and CMHC – that’s where he should focus his attention to deflate this gasbag…

#112 Smoking Man on 05.10.13 at 7:44 am

Currency Wars………

Communicating with the force, and hearing voice inside my head….

What? Say again, Canada to lower the overnight rate….

#113 Jaguar on 05.10.13 at 7:53 am

No doubt the numerous articles being written about financial wizards ‘shorting’ Canada have contributed to this move…
Canada is getting such bad press these days. The Harper government is a tad embarrassed….

#114 Craig on 05.10.13 at 8:04 am

Banks are to greedy and irresponsible to manage themselves. The Fed has to step in and set controls / measures, otherwise we’ll experience what transpired in the US in 2008.

Here’s one example;

http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=c&insttype=&freq=2&show=&time=13

#115 T.O. Bubble Boy on 05.10.13 at 8:15 am

@ #71 Crash Calaway on 05.10.13 at 12:17 am
F attempting to create a TARP PROGRAM in Canada?
———

Already happened. Look up “IMPP” (insured mortgage purchase program).

#116 Big Al (New) on 05.10.13 at 8:18 am

Re:Smokingman #94 Dr Oblivious

“Congratulations, this may have been your stupidest post yet.”

Oh no, there’s been other grander idiocies professed by him. You may not have been here long enough to have read some of his best stultifying comments. Wait till he starts musing on his theories on the Universe.

#117 Rational Optimist on 05.10.13 at 8:18 am

In case you don’t already know, the canadian mortgage trends blog’s most recent post is about this one. That’s right: their site now offers real estate bulls (mostly) up-to-date coverage of what is being said on Greater Fool.

#118 Jeff in Moose Jaw on 05.10.13 at 8:57 am

I agree with what some people have said – if it’s not insured by CMHC let the banks take on the risk of 30 or more year amortizations.
Really the down payment should be raised for any meaningful change – from 5% to 10% now.

Garth when I read that the IMF is a knocking – Canada shouldn’t answer the door. Turn off the lights; we’re not home etc…

#119 fancy_pants on 05.10.13 at 9:04 am

I’m glad you found a picture of F smiling… I can only imagine what a sight that would be otherwise.

Typical govt though, meddle in others business since you can’t get your own house in order. Simple solution, tell the banks CMHC is off the table, and to F off. Divert all the risk back to the banks. also ensure Depositors are the first to be paid out in the case of insolvency, not the shareholders. the banks have no risk and they are simply acting accordingly.

ta da. one will be amazed at how things will ‘correct’.

#120 ivanthemortgagebroker on 05.10.13 at 9:34 am

Couple mortgage lenders just eliminated condo rentals from their approved financing products and these lenders are the MBS type ….not good news for condo market as the investor money is getting pulled from these deals quick …partys over

#121 maxx on 05.10.13 at 9:36 am

If this fiscal cancer is not decisively fixed immediately, our government will undeniably prove to be the “Greater Fool”.
The creation, selling and consumption of debt will put this country behind and at a significantly long-term disadvantage to other countries, who are already in course correction mode.
Banks need to be controlled and put in their place- NOW.

#122 Smartalox on 05.10.13 at 9:38 am

The banks have abandoned common sense, ignoring warnings to the point that regulators will intervene to an unprecedented degree.

A sudden, massive change in the status quo, that nobody expected in the run up, but won’t believe could have been avoided, after the upset.

Sounds like a “black swan” event to me!

#123 Spirit of the West on 05.10.13 at 9:47 am

re: #63 Humpty Dumpty from yesterday

” … If you plan to visit the French speaking southern side of Belgium, consider getting a berka.

You to get yourself in trouble for saying the wrong thing…

Six Belgian senators introduced a draft resolution in the Belgian Parliament that would make “Islamophobia” a crime punishable by fines and imprisonment.

A person would be guilty if he “considers Islam to be violent, threatening or supportive of terrorism…” or “considers Islam to be a political ideology, used for political and military purposes to establish it hegemony.”

If passed, the law would pose a devastating blow to the exercise of free speech in Belgium.

http://www.gatestoneinstitute.org/3692/belgium-erasing-christianity …”

Wow, this bothered me all last night.

This sounds like the kind of law that Justin Trudeau would bring to Canada.

This law couldn’t have been written better by the Taliban itself.

#124 maxx on 05.10.13 at 9:57 am

#19 DismalEconomist on 05.09.13 at 9:20 pm

I’m torn how I feel about this……How much government hand holding through the economy do we need?

A: As much as is required to return Canada to fiscal health and maintain its economic profile on a global level. Otherwise, we are doomed to become a commodity-shilling backwater.
In this regard, government trumps banks.

#125 rosie "moving forward" on 05.10.13 at 10:06 am

#64
Niagara is a good place to retire to, lots of boomer oriented stuff. Job wise, I’d give it a pass unless self employed (even then it’s questionable). Come from away attitude a tough nut to crack. Real estate is cheap, compared to the GTA. Fonthill is pricier and the market has yet to turn. Only area of the region with price and sales rising, as of April. You welcome.

#126 rosie "moving forward" on 05.10.13 at 10:17 am

The great and mighty “F” giveth. And the great and mighty “F” taketh away. This is the word of the “H”. http://www.thestar.com/content/dam/thestar/opinion/commentary/2013/03/20/federal_budget_will_be_harsher_than_jim_flaherty_intended_goar/jim_flaherty.jpg.size.xxlarge.promo.jpg

#127 Canadian Watchdog on 05.10.13 at 10:18 am

Alternative Investment Management Association Canada: Global markets are a distorted mess

markets, which are supposed to reflect reality, are a distorted mess with no bearing on reality.

This seems to be the latest trend as more institutional investors speak out and admit how the markets are rigged.

#128 adam smith on 05.10.13 at 10:32 am

Any guess what is the urgency behind the current G7 summit?

Why are not China, India, Russia, Brazil part of the meetings? Their economies are far larger and important than some of the G7 members.

Are we having 2 world economic blocks as in the good old times?

Why on earth are Cash for Gold companies staring to visit corporate offices? (I have one coming to my corporate office pretty soon).

Makes you wonder…

#129 John Prine on 05.10.13 at 10:41 am

86 L on 05.10.13 at 12:49 am
I do agree that the market should be brought back to reality when a 10 year old 1400 sq ft townhouse in Richmond is still selling for $671,000 today:

#9-6333 Princess Lane MLS #V1003164
*********************************************
In 2005, three other identical units on Princess lane sold for $410K, $429K and $430K…..Would still seem high compared to everywhere else!

#130 NSRealEstate on 05.10.13 at 10:47 am

Halifax/Dartmouth NS Active Listings at all time high. Inventory continues to grow. The ships program seems to be a bureaucratic boondoggle with little movement in positive directions. Radio/print media silent on issue as I guess real-estate ads help pay the advertising bills. Single chap I met who works $14/hr job at the hospital got approved for $200k Sackville residence.. Unbelievable. Prices retreating slowly like tide going out.

#131 brunette on 05.10.13 at 10:53 am

For all you hard up guys, here, sheesh:

http://www.framablog.org/public/_img/flickr/david-shankbone_cc-by.jpg

[IMG]http://www.framablog.org/public/_img/flickr/david-shankbone_cc-by.jpg[/IMG]

#132 newbie on 05.10.13 at 10:58 am

hi garth

when you say markets will correct do you recommend holding off to buy anymore funds/equities?

#133 -=jwk=- on 05.10.13 at 11:30 am

@ #25 Keep the blinders on dude, sounds like You are the one unwilling to learn….

A gain is not real until it is realized in cash.
v.s
Was anyone else here holding Canadian Tire as we entered today? Sweet gain today.
————-
If you don’t cash out, or they didn’t improve their dividend it is a paper gain only. That’s why you don’t have to pay tax on it…

#134 GCR1968 on 05.10.13 at 11:44 am

Fantastic post Garth. I cannot believe that this was allowed to continue this long. I have loads of friends that argue with me constantly on prices going forward, and are just now starting to worry about getting a new mortgage. The new stronger mortgage measures you mention may just ruin a renewal for a good portion of these people. Time will tell.

#135 happy renter on 05.10.13 at 11:58 am

Certain areas will be immune to falling house prices,like Calgary and Edmonton .Lots of jobs mean confidence and higher prices.
As for Victoria don’t listen to the woman who says Victoria houses prices are falling.Go to West Hills and see all the building going on.Victoria households make over $100,000 so money is not the issue.

#136 The moment you deposited your money with the bank, the ownership of your money is transferred to the bank. on 05.10.13 at 12:00 pm

Your status is that of A CREDITOR TO THE BANK and the BANK IS IN LAW A DEBTOR to you. You are deemed to have “lent” your money to the bank for the bank to apply to its banking business (even to gamble in the biggest casino in the world – the global derivatives casino).

You have become a creditor, AN UNSECURED CREDITOR. Therefore, by law, in the insolvency of a bank, you as an unsecured creditor stand last in the queue of creditors to be paid out of any funds and or assets which the bank has to pay its creditors. The secured creditors are always first in line to be paid. It is only after secured creditors have been paid and there are still some funds left (usually, not much, more often zilch!) that unsecured creditors are paid and the sums pro-rated among all the unsecured creditors.
This is the truth, the whole truth and nothing but the truth.

The law has been in existence for hundreds of years and was established in England by the House of Lords in the case Foley v Hill in 1848.

#137 Sebee on 05.10.13 at 12:12 pm

Hey Canadian Watchdog,

Remember the “Funky Town Executive Special” next to the Humber Sewage Plant for 1.2M?

It’s back. $200K less this time. Down to just under $1M – what a deal!

http://www.realtor.ca/propertyDetails.aspx?propertyId=13139889&PidKey=193855303

Still doesn’t smell like a good deal to me.

#138 Craig on 05.10.13 at 12:15 pm

Opinions are like A$$ holes, everyone’s got one.

Bottom line is; no one here or anywhere, knows the future, nor do they know what the Fed is up to, nor how markets really work, etc., etc.

Some here profess to be all knowing and all seeing but the reality is they are just as FOS as anyone else.

#139 Spiltbongwater on 05.10.13 at 12:19 pm

Spirit of the West on 05.10.13 at 9:47 am

You can be jailed for Holocaust denial speech. Freedom of speech, is non existent in most of Europe and the world for that matter. If a person wants to get on a soapbox and deny the Holocaust, that person should have as much right to do so as all the 9/11 conspiracy theorists, or Donald Trump birthers.

#140 Doberman on 05.10.13 at 12:40 pm

Looks like the Canadian sub prime lender Home Capital Group is taking a dive. Market is anticapting what is coming. Quarterly results were at par, but could this be the last good quarter. We’ll see:

http://www.stockhouse.com/companies/overview/t.hcg

#141 Humpty Dumpty on 05.10.13 at 12:42 pm

jess

you post this yet…

The present documentary criticizes the corporate power and takeover of the US and other Western governments via a critical approach to Goldman Sachs’ power in the US government.

http://www.presstv.ir/doc/detail.html?name=Goldman%20Sachs-Masters%20of%20the%20World

Bankers Fixing The System story about banking industry in 2012 BBC documentary

http://www.youtube.com/watch?v=iu5dVxjO1f8

Since its friday, how else to end the week with the insistent Mr. Celente….

Gerald Celente on WW 3 – Middle East Out of Control
http://www.youtube.com/watch?v=A_6_G3W-Xms

Have a great weekend dogs…

#142 Shawn on 05.10.13 at 12:42 pm

JWK

If you don’t cash out, or they didn’t improve their dividend it is a paper gain only. That’s why you don’t have to pay tax on it…

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

Why do I bother…
By your logic Warren Buffett’s wealth is only paper gains and therefore what worthless?

#143 Timing is Everything on 05.10.13 at 12:43 pm

#140 Craig

Agreed.

Remember, this is a free entertainment blog. So let’s have some…

‘Hey, don’t you know it’s a waste of your day
Caught up in endless solutions
That have no meaning, just another hunch
Based upon jumping conclusions
Caught up in endless solutions
Backed up against a wall of confusion
Living a life of illusion’

http://tinyurl.com/dyozb8k

#144 Shawn on 05.10.13 at 12:48 pm

Number 138 said:

The moment you deposited your money with the bank, the ownership of your money is transferred to the bank

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

I believe your analysis of unsecured creditor is correct except that bank deposits are not unsecured they have FIRST claim on bank assets. Special rules apply to banks and deposit liabilities are first to be paid. Also there is deposit insurance.

And what is your point anyhow? If it is that people should worry about insured deposits in Canadian banks that is nonsense.

For uninsured deposits you might want to avoid really small banks but in the major banks of Canada it is silly to worry. As Garth has said, you are better to worry about asteriods than a large Canadian bank going down with loss on deposits.

But why keep heeps of cash on deposit anyhow? Better to invest it.

#145 jess on 05.10.13 at 12:59 pm

…”Normally, the government has an Oil Spill Liability Trust Fund that companies transporting oil must pay into. This fund is a great example of shifting the cost of clean up onto the companies that cause the problem. If oil companies are going to profit from transporting oil, they should also have to pay for damages caused by transporting the oil. But, here’s the caveat: In January 2011, the IRS determined that Congress intended to tax conventional crude only, not tar sands or other unconventional oils. As a result, all the tar sands and unconventional crude that is being transported is not being taxed. While the Trust Fund will still pay for clean up, it isn’t collecting any revenue from tar sands transport. If the fund goes broke, taxpayers have to foot the cleanup bill….”

….Enbridge is not required to pay into the Oil Spill Liability Trust Fund, she was shocked. “I can’t believe that,” she said, “it’s unconscionable, disgusting. I can’t believe it’s not being brought up… [Companies] get enough tax loopholes; they can pay into the system and should not make taxpayers pay for their cleanup.”

http://priceofoil.org/2013/04/02/toxic-and-tax-exempt/
http://www.uscg.mil/npfc/About_NPFC/osltf.asp

#146 happity on 05.10.13 at 1:03 pm

What sovereignty does Canada really have
? People from the other side of the world decide for us whom we did not elect. Their track record has brought the world to where it is today.

#147 Secret Bailouts to Canadian Banks on 05.10.13 at 1:06 pm

Shawn post #146

Watch and learn what really goes on.

http://www.youtube.com/watch?v=9K_N0uOXkQA&feature=player_embedded

#148 jess on 05.10.13 at 1:12 pm

http://arstechnica.com/information-technology/2013/05/why-facial-recognition-tech-failed-in-the-boston-bombing-manhunt/

http://electronics.howstuffworks.com/gadgets/high-tech-gadgets/facial-recognition.htm

#149 Humpty Dumpty on 05.10.13 at 1:12 pm

G,

if your takin the bike out this weekend and your heading to the 507 slap this on your ipod…. cheers…

Rockin’ Down the Highway-The Doobie Brothers
http://www.youtube.com/watch?v=1vw7OeVNsu4

and this one

Against The Wind – Bob Seger
http://www.youtube.com/watch?v=ZNaA7fVXB28

one more…

Jackson Browne — “Running On Empty
http://www.youtube.com/watch?v=zdHg4QEmBvk

#150 Canadian Watchdog on 05.10.13 at 1:18 pm

#144 Shawn

There’s a term in the financial world for those who play a stock dividend yield as a bond yield equivalent. It’s called the “dividend death trap.”

#151 Smoking Man on 05.10.13 at 1:19 pm

#141 Spiltbongwater on 05.10.13 at 12:19 pm

Spirit of the West on 05.10.13 at 9:47 amYou can be jailed for Holocaust denial speech. Freedom of speech, is non existent in most of Europe and the world for that matter. If a person wants to get on a soapbox and deny the Holocaust, that person should have as much right to do so as all the 9/11 conspiracy theorists, or Donald Trump birthers.

…………

Every one has freedom of speech, problem is some forms of speech have consequences…

Chose your battles wisely……..

Holocaust definitely happened.
911 was definitely an inside job.
UFOS definitely exist.

Just saying… Free speech…

#152 Tom Vu on 05.10.13 at 1:26 pm

How to be “AK”

Watch Star Trek reruns….trying to do Mr. Spock salute..on both hand. (Pretend basement suite is USS Enterprise)

Continue till hands permanently locked in that position.

Then try to go to bathroom.

#153 analyst on 05.10.13 at 1:28 pm

Here is what Scotia Bank’s Weekly Global View has to say about Canadian Housing Market.

“Canadian housing starts may also garner attention. We think the risk is to the downside and we’re
forecasting an annualized rate of homebuilding equal to about 165,000 starts. That would be down from
181k in March, and well down from the 253k peak of a year ago. Residential building permits for the
number of dwellings fell by 12% in February over January and suggest waning momentum into the Spring.
A more timely advance indicator is new home sales in Toronto which have been utterly crushed so far this
year. March’s new home sales fell 47% compared to March of 2012, and the entire first quarter of 2013 was
the second weakest quarter for Toronto new home sales on record since the start of the housing cycle’s upturn
at about year 2000 and second only to the crisis-induced lows of 2009Q1. Falling sales suggest fewer
shovels going into the ground within 30-90 days.”

#154 jess on 05.10.13 at 1:29 pm

fragility

Bernanke said:
More work is needed to better prepare investors and other market participants to deal with the potential consequences of a default by a large participant in the repo market and that a “possibility of a run” on money-market funds remains.

=
..” Creditors do not “discipline” accounting control frauds – they fund their growth. Creditors love to loan to firms reporting …

http://neweconomicperspectives.org/2013/05/brown-vitter-will-not-and-cannot-work-but-it-is-criminogenic.html

#155 Tom Vu on 05.10.13 at 1:31 pm

#140 Craig on 05.10.13 at 12:15 pm

Opinions are like A$$ holes, everyone’s got one.

Bottom line is; no one here or anywhere, knows the future, nor do they know what the Fed is up to, nor how markets really work, etc., etc.

Some here profess to be all knowing and all seeing but the reality is they are just as FOS as anyone else.

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

Very contradictory set of statements:

(i) Opinions are like A$$ holes, everyone’s got one.

(ii) Some here profess to be all knowing and all seeing but the reality is they are just as FOS as anyone else.

Thus…How do you know everyone has an A$$hole ?

You have A$$umed

#156 L on 05.10.13 at 2:00 pm

#130 John Prine on 05.10.13 at 10:41 am
86 L on 05.10.13 at 12:49 am
I do agree that the market should be brought back to reality when a 10 year old 1400 sq ft townhouse in Richmond is still selling for $671,000 today:

#9-6333 Princess Lane MLS #V1003164
*********************************************
In 2005, three other identical units on Princess lane sold for $410K, $429K and $430K…..Would still seem high compared to everywhere else!
__________________________

I’ll meet you back here in exactly 1 year. Betchya, that townhouse will be worth under $550,000. Sucker born everyday.

#157 Pr on 05.10.13 at 2:12 pm

A minimum 10% down payment, the next move from the Feds, and this bubble is fix.

#158 OkanaganInvestor on 05.10.13 at 2:16 pm

#132 brunette on 05.10.13 at 10:53 am
For all you hard up guys, here, sheesh:

http://www.framablog.org/public/_img/flickr/david-shankbone_cc-by.jpg
_____________________________________________

Thanks brunette, I was curious, but prefer Garth’s editing, thus leaving us something to ponder.

However, back to banking below is a 2-minute speech by a European politician that makes me wish we had him here.

Published on Apr 16, 2013

Godfrey Bloom – Lending money you don’t have is criminal!

https://www.youtube.com/watch?v=8HMkqiLkDeU

#159 frustrated on 05.10.13 at 2:27 pm

Last week the CEOs of the monster banks were given a clear message that 30-year mortgages need to be wiped away. Completely. In fact, they’ll be banned. That letter will go out next week, the result of a decision made jointly by the Department of Finance, OSFI (the bank regulator) and the Bank of Canada.

Could we find this online that this will happen ?

Did you not just do so? — Garth

#160 Grim Reaper/Crypt Speculator Ⓤ on 05.10.13 at 2:29 pm

Geez, things are dead around here.

Back to work

#161 Dupcheck on 05.10.13 at 2:42 pm

The stock market is doing well. That is nice. We need some sunny days.

#162 Canadian Watchdog on 05.10.13 at 3:00 pm

WSJ: Investors Rediscovering Margin Debt

Small investors are borrowing against their portfolios at a rapid clip, reaching levels of debt not seen since the financial crisis.

The trend—driven by a combination of rising stock values and rock-bottom interest rates—is sparking a growing debate among market watchers.

To some, this trend in so-called margin debt is a sign of investors' increasing confidence in a bull market for stocks that has already lifted the Dow Jones Industrial Average 15.1% in 2013.

But to others it is a warning sign that the Federal Reserve's easy-money policies are creating a bubble mentality among stock investors.

It must be different this time.

#163 happity on 05.10.13 at 3:41 pm

This is so not over…

It is just barely beginning!

First maybe some independent honest media will host a group banker intervention live on CBC and the heart warming discussion with beacons of fact will lead to that moment when a banker admission emerges amongst sobs and tears of how systemic their off balance sheet, tax haven banking gambling chasing higher yield addiction really is.

Then our elected by the people for the people government will cede financial decision making to some global appointed body who needs a map to find Canada so that rainbows can be seen again over our True North Strong and Free, because sovereignty is just so yesterday. Who are we to think for ourselves anyway?

Maybe followup with a Carney style bail-in. Why? Well, because for years the little people who work hard and save must continue to pay for the gambling addiction of the few who should never be held accountable for their own lack of brain cells and increasingly larger systemic losses.

Instead of deposit accounts, let’s go for the RRSPs and allocate them to Canada Savings Bonds, because we need protection from ourselves.

That is just Chapter 1…

#164 Craig on 05.10.13 at 3:56 pm

“” creating a bubble mentality among stock investors.”"

We’re surrounded by bubbles!

Everything’s a bubble; Stocks, RE, PM’s, Mother in Law, …

Thank God I’m immortal.

#165 Suede on 05.10.13 at 4:09 pm

#164 CDN Watchdog

When you look at the chart for the margin debt, its evident that there are higher highs and higher lows. Where’s the top, no one knows….

#166 Devore on 05.10.13 at 4:23 pm

The only good thing about this is no one in Canada will be able to pin this mess on the “unbridled free market”.

#167 Shawn on 05.10.13 at 4:36 pm

STUPID SLOGAN

Today’s slogan is clever. But, but with all due respect to Goethe (who?) completely stupid.

It’s the kind of slogan that losers use to try build up a false sympathy for successful people who (for example) they will claim are slaves to their jobs or whatever.

Next time let’s crop out the sign and show the full woman.

#168 Big Al (New) on 05.10.13 at 4:36 pm

What Americans really think about Canadians buying in South Florida. Read the comments section of one of the commentators Who advertises up here for Florida properties. “Buy now or get priced out of the market” you’ve seen the ads in the local papers.

http://www.cnbc.com/id/100726168

#169 Dr. Hoof - Hearted on 05.10.13 at 4:42 pm

#141 Spiltbongwater on 05.10.13 at 12:19 pm

You might wanto to check this out

Interview with Brad Love, Canada’s persecuted letter writer

Brad Love of Alberta, Canada, an oil field worker and outspoken White patriot tells us about his 10-year battle with the courts over his habit of writing letters to elected officials, newspapers and tax-exempt organizations.

For this he was recently sentenced to 18 months in prison.

See: http://thewhitenetwork.com/2013/05/04/interview-with-brad-love-canadas-persecuted-letter-writer/

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

Never heard of the fellow before…but excellent interview. on illusion of “freedom of speech” etc.

Hails from Ontario and works in Alberta oil patch. Says at his earning levels 1/2 his wages go to Gov’t.

Writes and asks why he is working his ass off, ie 80+ hour weeks ….while Canada extends generous benefits to immigrants, etc.

He is NOT burning crosses, making threats etc etc….simply writing letters 1:1 to MP’s. etc. asking what are they doing with HIS money(aka why is he busting his b*lls ??? ) as is his right to do.

For that , he has spent over 2 1/2 years in Jail under some subjective interpretation of the “Hate Crime”law.

Pretty pathetic and NO you don’t live in a free country. The only rights you have are those you are willing to defend

#170 Devore on 05.10.13 at 4:47 pm

#108 neo

All of Asia is now tripping over themselves to devalue their currencies. It’s like the equity makets are on auto pilot up. What is happening is a farce and Garth seems to be defending it.

So, if you hold Yen, you got your ass handed to you. If you hold the Nikkei, you did fine.

Did you learn anything today?

#171 Big Al (New) on 05.10.13 at 5:05 pm

From an American reseller of South Florida RE.
sidfeinberg | May 10, 2013 03:42 PM ET
@Pilotocopilot
When Canadians come down here to Lauderdale I tell them to enjoy their visit but forget buying here

————–

You might need a bigger megaphone, because Canadians are buying left and right. 3% of all property in Broward is owned by Canadians. Same with Palm Beach, not as much Dade. Hollywood is about 1/2 French Canadian.

We buy and rehab condo projects and are getting Canadians to buy these things at 2.5 to 3 times what we pay for them. We have holdings in Palm Aire of multiple blocks. We bought these for about 30 a door and are selling at 105 a door, all Canadians and all dumb.

The Canadians must have unlimited money because they love to overpay for Real Estate and we are happy to accept their money.

In our ads in Toronto, we always say

“Buy now or get priced out forever”

Go ahead buy in the US because you know they love Canadians.

#172 crowdedelevatorfartz on 05.10.13 at 5:09 pm

@#10 Brunette.
Sorry, the gal in the pic is NOT Gina Gershon.
Although you are correct.
Gina AND the lady in the pic are both beautiful.

#173 island man on 05.10.13 at 5:16 pm

Several of my Victoria neighbours have reduced 2-4 times and still no offers.
This city is so overpriced it’s insane.
Need some more greaterfools to buy I guess.
Real estate here is a “goat rodeo” at best.

#174 Old Man on 05.10.13 at 5:17 pm

#153 – Smoking Man, as agree with you 100%, as freedom of speech must be unconditional, or all is lost in life, as anyone who denies such will never be on my page in life, and there is no exception – none.

#175 Dr. Hoof - Hearted on 05.10.13 at 5:25 pm

#124 Spirit of the West on 05.10.13 at 9:47 am

Wow, this bothered me all last night.

This sounds like the kind of law that Justin Trudeau would bring to Canada.

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

His daddy Pierre already did.

When Trudeau created his multicultural society, his advisors also created an “enforcement arm” ie those quasi judicial Human Rights bodies and buttressed by Hate Crimes in the criminal code.

If you study the issue…it is rather intriguing that most ex-Commonwealth countries have very similar laws and policies.

The trails leads to Britain…and finally to the “City Of London”, which I am sure you know is as autonomous body as the Vatican. The Queen must ask permission of the Mayor to enter. We all know who ownsand runs the City of London

This is why I avoid the local media and go on the Internet .

Anecdote:
Know this senior from Scotland, in her late 70′s ..who immigrated her in the 1960′s. Recently told her about cheap trips to the US. She said she can’t doesn’t have citizenship, hence can’t get passport to go . I joked..”well I better report you”. She said when she came to Canada they were citizens of the Commonwealth and could freely travel to and live in any Commonwealth country.

She said Trudeau changed all that. .

So….Are we seeing a pattern ?

#176 Craig on 05.10.13 at 5:52 pm

HEY, Canada is not perfect but it is still, BY FAR, THE GREATEST COUNTRY on this planet.

If you don’t like it here then go back to your original country and live there for a few years. You might just learn to appreciate why your forefathers left in the first place and came to Canada.

I’m one of the very few homes in my subdivision that proudly displays a large Canadian flag. We should be more patriotic and proud to be Canadian!!!

God Save the Queen

Go Leafs Go

LOL

PS – yeah I’m still ticked off that kids aren’t allowed to say the Lords Prayer in school each morning…for fear of insulting some immigrant!

Not all Canadians are Christians. Do you work for a talk radio station? Or a quad dealership? — Garth

#177 willworkforpickles on 05.10.13 at 6:01 pm

You can kiss goodbye buying rental property for income profit that makes economic sense over holding first mortgages at 8 percent and above……that is until real estate prices reverse by 60 percent considering today’s rent levels that renters can afford.
This can only mean that with no new legal multi-unit low end rent units coming along, homlessness, having gone up with the price of real estate is going to become a very big issue very soon.

#178 Craig on 05.10.13 at 6:13 pm

Not all Canadians are Christians. — Garth

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

Not all Canadians speak English so does that mean we have to stop speaking it?

#179 Dr. Hoof - Hearted on 05.10.13 at 7:01 pm

City fees add to Metro Vancouver’s housing-cost disparity

Vancouver charges developers far more than suburban cities for items such as public amenities

Read more: http://www.vancouversun.com/business/City+fees+Metro+Vancouver+housing+cost+disparity/8363876/story.html#ixzz2SvnVnEP9
=================================

Quite a good article…

Re: Vancouver and its Left of Communist Council

QUOTES

—-But there is also a wide discrepancy in the municipal fees and levies for each unit of the theoretical highrise. The fees and requirements add up to $76,154 per unit in Vancouver, compared to $38,319
in Burnaby and $11,613 in Surrey.

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

QUOTE:
Nonetheless, he (Head City Planner) acknowledges developers take a lot of risks when they build in Vancouver.

“I think it’s a tough game out there, especially when the market is becoming soft like it is now,” Jackson said.

It may be a risky game for developers, but the figures provided to The Vancouver Sun still show developers making a sizable profit: even with the higher development costs in Vancouver the expected profit is $80,694 per unit, in Burnaby $54,652 and in Surrey $34,668

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

QUOTE:
A major fee in the City of Vancouver is the community amenity contribution. This is used to pay for public benefits like affordable housing or daycare centres. Developers pay CACs for rezoning to higher density. Such CACs can be as much as 75 per cent of the profit a developer would make by getting a parcel of land rezoned for higher density, the UDI figures show.

===============================
QUOTE:

Vancouver requires all new developments subject to rezoning to meet LEED Gold, a sustainability standard that adds $11,718 to each unit, UDI says. Neither Surrey nor Burnaby requires this, although some developers choose to meet LEED standards.

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

One thing that stands out is the LEEDS GOLD requirement by COV. OMG….just like the Oval….a bunch of “Go Green” engineered crap that will come back to haunt the owner..like it has at the Olympic Village(ie signs that say don’t drink toilet water…it come from collected rainwater).

Hey may be thats it….the COV doesn’t want competition with the OV..so everybody gets screwed equally with LEEDS.

The CAC’s etc…that’s another scam for another post.

However, overall one can see how Local Gov’t skim some of that CMHC cream of the top.

#180 Smoking Man on 05.10.13 at 7:05 pm

At senica, where else on a Friday night, Holly smoke, band on stage at bar, natives they are called pale face… The absolute best Floyd cover band I ever heard

Nailing every tune perfectly, oh it’s going to be one of those nights I’m so famous for… Posting their pic on my blog…. New groupy here…

#181 Smoking Man on 05.10.13 at 7:24 pm

Nailing zeppelin tunes now, WOW’!!!!!!!!!!

Did we just turn into Twitter? Dude. We. Don’t. Care. — Garth

#182 Smoking Man on 05.10.13 at 7:38 pm

Sorry garth, bit looped again will try and behave.
But I had to record the band’s name for future reference, cause not going to remember in morning.

#183 Grim Reaper/Crypt Speculator Ⓤ on 05.10.13 at 7:41 pm

#153 Smoking Man on 05.10.13 at 1:19 pm

Every one has freedom of speech, problem is some forms of speech have consequences…

Chose your battles wisely……..

Holocaust definitely happened.
911 was definitely an inside job.
UFOS definitely exist.

Just saying… Free speech…

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

So oh wise one…

Got some proof…(say on the non 9-11 nor UFO point )….I can’t find squat all.

Pop Quiz:

Which side had the most racially diverse army in WW2 ?

Ignore the court historian BS, it isworse than bad booze

#184 Daisy Mae on 05.10.13 at 7:51 pm

#78 Crispy bacon: “Congrats on the top financial blog award! Any plans for your windfall of $100?”

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

Crispy bacon? Love crispy bacon!

Did Garth win again? And his windfall? He’s taking Dorothy out for a candle-lit dinner!

#185 Daisy Mae on 05.10.13 at 8:05 pm

127 rosie “moving forward”: “The great and mighty “F” giveth. And the great and mighty “F” taketh away. This is the word of the “H”.”

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

Wow! So ‘authoritative’. I’m soooo impressed.

#186 Smoking Man on 05.10.13 at 8:28 pm

#185 Grim Reaper/Crypt Speculator Ⓤ on 05.10.13 at 7:41 pm

Proof, you want proof?

At the Centre of our galaxy exists a black hole, it called the universal consciousness consolidator. All thoughts memories are stored there. Think of it as a computer server where all your files are stored. I have a connection to it..

Only insane ones, crazy ones, or dead people can tap it’s power, do you think my amazing predictive skills are an accident.

I can read the minds of everyone.

Let’s see, I had a vision for Tom Vu….

I have a vision of bubble bees, black and yellow flying into city hall, somewhere out west, USA or Canada not sure they pick you up and fly you to jail.

Am I close…… It’s not exact but close.

Tom?

#187 Daisy Mae on 05.10.13 at 8:33 pm

#178 Craig: “PS – yeah I’m still ticked off that kids aren’t allowed to say the Lords Prayer in school each morning…for fear of insulting some immigrant!”

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

A fair percentage of us are atheists. And we’re not particularly keen on the Lords Prayer, either. To each, his own.

#188 happy renter on 05.10.13 at 8:36 pm

After travelling to Japan and some Scandandvian countries I noticed less visible minorties than Canada.I guess they want to preserve language ,culture and have lower unemployment levels for its citizens.
I guess its to late because we have 1,400,000 unemployed Canadians.Its sad our goverment make it harder for its people with high immigration.

#189 Smoking Man on 05.10.13 at 8:41 pm

#189 Daisy Mae on 05.10.13 at 8:33 pm

Daisy my heart stopped for about 10 min years ago on a coke oxy over douce…. At a Brampton strip joint.

There is a spectacular other side… But I didn’t find god, just the crazy voice inside my head f-en with me.

#190 JimmyAAA on 05.10.13 at 9:00 pm

Don’t worry Garth,

All the pseudo science, Christian , biased -stretttttcchinnnnnng to racist, anti-immigrants, etc will soon chase all the gold bugs away.

#191 Charlie on 05.10.13 at 9:10 pm

#59 Shawn

Wasn’t talking about a teacher about to retire – I’m talking about someone counting their pension 15 years before they collect – that’s silly in this environment. Many pensions are going to get changed and pilfered over the years.

I know you didn’t say the Fed buys stocks, but the essence of the point is that there are people who don’t buy stocks because they don’t like a Fed rally. Whether direct of indirect, the point is the same – the Fed is stimulating as opposed to firm fundamentals we would all like to see.

Warren Buffet’s net worth will fluctuate up and down every day until he sells – I never said his stock was worthless though. Try again.

#192 Herb on 05.10.13 at 9:21 pm

“Did we just turn into Twitter?”

Great idea, Garth. At least SM’s “contributions” would be limited in their number of keystrokes.

#193 Mary Mary Quite Contrary on 05.10.13 at 9:39 pm

#180 Craig: “Not all Canadians speak English so does that mean we have to stop speaking it?”
Right on!! Keep on rocking in the free world!!

#194 Innumeracy Chick No More on 05.10.13 at 10:32 pm

@ Grim Reaper…. Bulgaria

@ Smoking man stay out of the strip joints they are bad for your health.

@ Buy Curious when are we having dinner?

#195 espressobob on 05.11.13 at 6:21 pm

# 178 Craig

I grew up in this era. Point is, maybe our system should seperate religious beliefs from our educational standards. Most of us here in Canada are in fact immigrants! Get over it.