Humans

human2

My theme this week has been to demonstrate, by fact and anecdote, that most people are emotional. But they can’t help it. Human nature’s a tough gig.

Rational people would buy things when they’re cheap and affordable. They’d sell them when they became valuable. They’d understand it’s not assets which make you wealthy and finance your life. It’s money.

Most people avoid things that decline in price. They covet stuff which becomes inflated. They value what others value, especially when it’s overvalued. They hoard assets, often illiquid, and think it’s wealth.

Real estate’s been the example du jour. It’s so perfect. Millions of us now live in houses we cannot afford, having used debt to create the illusion of equity. It’s always a chuckle when media flips refer to people who live in homes worth a million or more as ‘millionaires.’ Half the houses in Vancouver now have valuations of at least seven figures, yet the average income is less than $85,000.

Of course, when house prices rise people want real estate. When it falls, demand slacks. The same holds true of gold or stocks. Most people simply can’t help themselves. They buy high and sell low. They gamble, and call it investing. It’s why 2008 destroyed so much wealth – millions bailed out of their funds at the bottom, instead of buying more. Today stock markets have risen 150% in four years, which has made some people nuts all over again.

So far in 2013, for example, the Dow Jones Industrial Index has added 20%, while the S&P 500 is ahead 19.8%. These are ridiculous numbers, reflecting not just corporate profitability and economic revival, but speculation and misadventure. And what do people do? They pile in.

More money went into equity funds in the States this week than at any time since 2008. The avalanche of cash equalled $19.7 billion coursing into stocks, while almost three billion came out of bonds. Comments this past week from the US central bank that it will not be zealous about jumping rates or trimming stimulus spending just added more fuel to the fires of avarice. As with million-dollar bungalows in Vancouver or Toronto, risk grows when equity markets reach daily for new highs.

Thus, sane people would be harvesting gains or spreading risk by diversifying into other assets – like fixed income or cash. But sanity’s in thin supply. Instead, investors flee when asset values fall, and this pathetic blog’s comment section fills with people who come here to say we’re all gonna die.

This is called recency. Another reason humans suck at investing. We believe what happened most recently will happen forever. Rising markets will swell without end (Calgary real estate in 2013). Falling markets will decline to zero (bank stocks in 2009). Recency leads doomers to say every negative current event (the bankruptcy of Detroit) defines the future. Recency makes people whose ETFs jumped 15% totally unable to sell a portion and realize their capital gain.

So what?

So be careful. This blog has argued with breathtaking boredom that residential real estate in most of the country is inflated and dangerous. Prices will correct. Those who use extreme leverage to get a house (less than 10% down), and those with the bulk of their net worth in property (hello, wrinklies) are considerably at risk. Residential real estate could be lights-out for a long time.

By the same token, equity markets – at least those in the US (and much of Europe and Asia) – are probably flying too close to the sun. My faith in the American resurgence is undiminished, but when almost $20,000,000,000 flows into stocks in a single week in one country, it’s probably time to sneak out back for a smoke.

The best approach is balance. You need a place to live. You need your savings safe. You need them to grow. And you need income for life. A house is not a financial strategy, any more than is an RRSP full of funds or a bevy of bonds.

Thus, my rule of 90. Deduct your age to determine the right portion of your net worth in a house. The remainder should be liquid, and diversified.

And don’t wait long.

About the photo:  The best relief John Unger could find for severely arthritic, 19-year-old Schoep was to take him into Lake Superior, where the water’s buoyancy would allow the dog to sleep in his arms, free of pain. Schoep died this week.

195 comments ↓

#1 Steve-O on 07.19.13 at 5:44 pm

If prices will drop and interest rates will rise, there must be an ideal point in time to get into the market.
Or will the price drops overwhelm any increases in interest rates?
Assume someone is making a 20% down payment, with mortgage amortized over 25 years.
Any guesses?

#2 Randy on 07.19.13 at 5:48 pm

Makes sense….but you can’t stay young forever….I plan to stay immature forever though…..

#3 paul on 07.19.13 at 5:53 pm

Also for women the rule is higher a 100 or 110. Garth, the stock market has peaked, eventually something has to give. Cant make money without a correction.

#4 city that smells like it sounds on 07.19.13 at 5:56 pm

Furst!

Stop it. — Garth

#5 fladnag on 07.19.13 at 6:05 pm

“value what others value, especially when it’s overvalued”
I believe this is Apple’s motto

#6 Nemesis on 07.19.13 at 6:13 pm

For Schoep…

http://youtu.be/ahW9jOS0-pY

#7 Iconoclast on 07.19.13 at 6:16 pm

Ah, every good dog deserves a good human… sleep well Schoep.

#8 Doug in London on 07.19.13 at 6:17 pm

I still don’t get it. Yesterday there was a 5 cents off per litre sale at a Canadian Tire petrol station (about a 4% discount) and there was a long line up of cars waiting to get the cheaper fuel. You would think it was the only station in this city of 367,000 where there was any fuel left. By contrast, if stocks (or other investments) go down 4% or more some people panic. Why wasn’t that $20,000,000,000 flowing in 3 weeks ago when stocks were on sale? Not only that, but I figure that much or far more should have been flowing into the stuff that was really on sale and down 10 to 20% like REITs, preferred shares, and utility stocks. I think I should read some books about psychology, as what I see just totally defies intuition. For now I think I’ll sign off, pour myself a drink, and watch the thunderstorms that will mark the end of this hot spell.

#9 PeterSchiff's never wrong on 07.19.13 at 6:19 pm

What is truly disturbing, and something you never write about is the decline of the culture in the West.
Nobody has integrity anymore, and that carries out into economics. people treat money without care. We are bankrupt on many different aspects. SAD. Peter also shows how far gone in theTrayvon MArtin case-all the bleeding hearts are crying for him.BS. You play by the sword – die by the sword. You want to borrow big time- get ready for big time bankruptcy. Like the whole f ing nation. This is what you non berlievers in gold don’t see- how valuless your money is.

Get ready for the ride!!!! Its been beaten down but wild horses are ready to escape.

Sorry about the dog bro.

#10 craig on 07.19.13 at 6:20 pm

The best relief John Unger could find for severely arthritic, 19-year-old Schoep was to take him into Lake Superior, where the water’s buoyancy would allow the dog to sleep in his arms, without pain. Schoep died this week.

What a great pic and a great story.

I’ve never seen this side of you b4, nor the dark side of the moon.

There is hope yet…..

#11 Jean Petitnonplus on 07.19.13 at 6:21 pm

I recommend that people sell there stocks, as they are at an artificial high, and instead invest in real estate in my city Montreal. Unlike the rest of Canada, prices here are low and still rising. We have many immigrants coming from the middle east who have lots of money and are buying properties like there is mo tomorrow, driving up prices further. Buy in now before this becomes a bubble, you will make out well when selling at a premiun in five years. Montreal, the best kept real estate secret of Canada!

#12 Yahoo on 07.19.13 at 6:22 pm

Just read the June 28th issue of “the investment letter”, they said Garth RRSP /TFSA strategy is risky. Well, those CFAs / Bay street boys actually read Garth blog!!!
Garth , you are everywhere …

#13 calgaryPhantom on 07.19.13 at 6:22 pm

Should i take my money out of US markets and buy an ETF that short US markets? like FAZ?

#14 kommykim on 07.19.13 at 6:23 pm

I remember reading an article back in May that had the headline, “Dumb money returns to Japan.” 2 weeks later the Nikkei plunged 18%. I’m not saying this will happen with the S&P500, but it looks like the dumb money has found the USA.

#15 jess on 07.19.13 at 6:25 pm

action plan

The OECD has, in its Base Erosion and Profits Shifting (BEPS) report published today accepted that international tax competition when exploited by multinational corporations causes harm. As it says:

http://www.oecd.org/ctp/BEPSActionPlan.pdf

#16 strop on 07.19.13 at 6:29 pm

I’m looking to short CWB.TO and MIC.TO in order to play the downturn. Advice?

#17 NoWayMe on 07.19.13 at 6:36 pm

Great post Garth! Long time reader and renter from the north Okanagan.

Maybe some of that money will start funneling into the TSX seeing as we are 3000 points behind? Took a small position myself into some dividend paying mid-tier oilers (T.CPG and T.LTS) last week, so far seems like an okay call.

#18 raisemyrent on 07.19.13 at 6:39 pm

my co-workers were discussing real estate today; both are pushing 30 (whatever, it’s a big deal to us), and learning to be adults. or not… the one was comparing us to the US, where incomes are similar, rent is about the same, but real estate is so much cheaper! “I can’t understand it!” he says.
This, after he had just said how “real estate hasn’t gone down at all in the last 10 years or so”.
Oh, we live in Vancouver.
“I don’t know anyone who hasn’t done well in real estate in the long term.”
This is the guy who can’t dump a Port Coquitlam (you’ll have to google that one) condo in a wood building, whose reserve fund is broke, after buying it for ~260 and listing it for ~210 (don’t forget closing costs), and renting it all throughout at a loss because “it’s a good investment”.

So yeah, what’s the mystery? why is Canada different? VANCOUVER is different, he says. All these foreigners coming here (he being one of them too), downtown is only so big, etc etc.
The answer is that our real estate is over-valued. Period. Next.

Oh, and said guy currently rents tried to cash out some locked RPPs but ended up taking out a line of credit to make up a down payment on a new build (google Rolston) that can’t sell out its units.
AND has a unit in Surrey for which rent only covers 2/3 of the mortgage payment. He reckons himself an investor.
True story.

And yes I’ve showed him graphs and facts and this blog… I’ve also talked to my pets a lot, but they’ve never talked back.

The other guy tried to explain to him (very, very politely) the difference between investing and gambling.
Today, I just listened and kept doing my work. Each to their own.

#19 Patrick Ashford on 07.19.13 at 6:41 pm

“More money went into equity funds in the States this week than at any time since 2008. The avalanche of cash equalled $19.7 billion coursing into stocks, while almost three billion came out of bonds. ”

You make it seem as though this is a big outflow from bonds, but the average daily trading volume in US bonds is $822 Billion. Thus, in a five day week, more than $4 trillion in bonds are traded, so a $3B outflow is negligible.

http://en.wikipedia.org/wiki/Bond_market

Not from bond funds, it isn’t. — Garth

#20 Wally on 07.19.13 at 6:43 pm

Nice article today Garth. Makes sense to stay diversified in these strange economic times.

#21 Bill Gable on 07.19.13 at 6:44 pm

The picture, today, pretty well left me breathless.

The definition of love and devotion.

I am so glad the Pup is no longer hurting.

Thank you very much.

#22 bill on 07.19.13 at 6:46 pm

good old Schoep.
good dog,you can just tell, eh?

#23 Lebron on 07.19.13 at 7:00 pm

@ Steve-O. “[ Assume someone is making a 20% down payment, with mortgage amortized over 25 years.
Any guesses? ]” A good time to get in is when you can afford to readily “hold” the depreciating asset class across all housing products in Canada. In other words, British Columbia means “bring cash” when it comes to all the gut jobs or post world war II war relic homes circa 1950, 1960. All old homes on glorious lots, in old “traditional” neighborhoods where you can “feel” rich. Oh and the property taxes that come with million dollar gut jobs anywhere in Scamcouver are grossly high for what you get, in the tens of thousands of dollars. Vancouver is soon to be wiped off the real estate map in terms of “holding” value. Then you have condo’s. 500-600 square ft dog kennels littered all over downtown Toronto and Vancouver asking 3/4 of a million dollars, with monthly strata fees ranging anywhere from $500-$1200 a month, plus property taxes, plus utilities, plus water, plus cable, plus landline, plus cell phone, plus groceries, plus toilet paper and toothpaste, plus condoms, plus depends undergarments, plus diapers if you have kids, plus alcohol because you had kids. Get the picture here Steve-O??? The entire Canadian real estate market is doomed. Dismal, bleak, despair, depressing. When you sleep at night does it make any difference weather you wake up in a brand new house with a 25 year amortization, or the flat you choose to rent? The answer is no. Canadian home values will fall 20-30 percent.

#24 Chopper on 07.19.13 at 7:01 pm

Great advice Garth and yet people will do the opposite of what you tell them to do. Most people are stupid when it comes to handling money, but without them alot of us including myself will not have what we have.

Let them commit financial suicide, it is their money.

#25 Buy? Curious? on 07.19.13 at 7:04 pm

My main man, Garth, I’ve been reading every blog entry since April 2008 and have enjoyed almost every post since. The stuff about bonds bores me to tears but I still come back for the comment section.

I was talking to a woman from near San Fransico and she was telling me about her house she bought last year. It was sold in 2008 for $880k and she bought it for $349k! In that year, the house has increased $100k.

Everyone knows that Canada is a few years behind the US, so just because the market didn’t crash over the last few years, doesn’t mean it isn’t going to happen.

Garth, you’re a stud! I just wish there was someone like you who could help change the perception of the legalisation of marijuana the way you’ve done for the reasons for buying a house.

Stay cool.

#26 Einturzende Neubauten on 07.19.13 at 7:09 pm

Looks like Calgary (downtown at least) asking prices went 10-15 percent up during last five weeks. Well, I hope nobody sells a thing at these prices :-)

#27 Buy? Curious? on 07.19.13 at 7:11 pm

Sorry. The woman bought her house in 2012. Damn my poor proof reading. Smoking Man, any suggestions?

#28 george on 07.19.13 at 7:13 pm

Majority of retired Canadians in debt: poll

#29 Rule of 90? on 07.19.13 at 7:14 pm

Garth,

The rule of 90 sounds straightforward, but I’m unclear on what counts as ‘worth in a house’. It seems to me that if I own a house my exposure to real estate is the full value of the house, whether or not I have a mortgage. Is it that full value which should be used in the formula, or just my current equity, without reference to the leverage, or is it some other number again?

The full value seems the correct way to reflect the risk of the position, but it also means the rule of 90 dictates that one should never buy a house without sufficient wealth to purchase it outright (though obviously it may still pay to get a mortgage depending on available returns elsewhere). That seems extremely conservative, so I assume I have misunderstood.

If you could clarify the rule I would really appreciate it.

Debt is not equity. Net it out. — Garth

#30 Steve-O on 07.19.13 at 7:21 pm

Re #23 Lebron,
Your assumptions are incorrect and so I’m having a hard time taking your conclusions seriously.

You say:
“Then you have condo’s. 500-600 square ft dog kennels littered all over downtown Toronto and Vancouver asking 3/4 of a million dollars, with monthly strata fees ranging anywhere from $500-$1200 a month”

Downtown, you get a 620 sq ft unit in a post leaky-condo building for $435k (not $750k) with $253/monthly fees (not $500-$1200)
http://www.realtor.ca/propertyDetails.aspx?propertyId=13438008&PidKey=2000176536

If you go a little further out, it gets better.

#31 TurnerNation on 07.19.13 at 7:32 pm

(If dog was in uncurable pain, really should have put it to sleep earlier. I know I’ve been there…
19 yrs is far surpassing what’s expected of a dog.)

Anyway still have the quote “Now youse can’t leave” from clip posted by Cdn Watchdog in my head.

1:38:
http://www.youtube.com/watch?v=H_lijLYuw-o

Next time someone says their property is just not selling say to yourself “Now youse can’t leave”.
If they ask What say Nothing… :-)

#32 Herb on 07.19.13 at 7:37 pm

Thank you, John Unger.

#33 fladnag on 07.19.13 at 7:40 pm

Full story on Schoep here
http://dailym.ai/PKwRQq

#34 Smoking Man on 07.19.13 at 7:50 pm

Nice thing he did for the dog…

Glad I’m human and can buy wine for my arthritis..

#35 Mikey the Realtor on 07.19.13 at 8:01 pm

“About the photo: The best relief John Unger could find for severely arthritic, 19-year-old Schoep was to take him into Lake Superior, where the water’s buoyancy would allow the dog to sleep in his arms, free of pain. Schoep died this week.”

So if Unger knew the dog was in pain then why put the poor thing through the torture, at 19 years old a dog is a fossil and it should of been put down under the circumstances, a great example of an idiot.

#36 TurnerNation on 07.19.13 at 8:09 pm

“A funny thing happened on the way to becoming “Worm food…”

I’ve finally realized the purpose of life: Collecting dividends. D-i-v-d-e-n-d-s. That’s it.

Should you think differently see your local allopathic doctor at once. This guy or gal, with their white coat, will talk to you for a few min and send you on your way with pills – singular or cocktail. Take them – all. It’s what you need.

In this clip from 1978 (!) a young woman chooses two Drs. at random from the phone book. With a visit to each and a few short yarns, later, she walks out of each with the needful: psychotropic or opiate bennies. Beats the street. Even easier now.

(Though, I’m not homeopathic (not that there’s anything wrong with that.))

At 15:30

http://www.nfb.ca/film/easy_pill_to_swallow

#37 Vangrrl on 07.19.13 at 8:14 pm

I saw that pic yesterday on Frosted Faces on facebook. 19, wow. My best guy will be 15 next month. I love that you love dogs, Garth!
Now I should read today’s post..

#38 Herb on 07.19.13 at 8:30 pm

Spent an hour cruising MPAC’s “About my Property” feature and concluded that the Ottawa market is truly nuts. Every house on my old street is clustered around $900,000, with property taxes up to $11,000 a year.

We’re renting in another nice part of town and wouldn’t mind buying there, but those houses saw few actual sales, merely escalated with the rest of the market, and now are over-assessed by at least 25%. No one in the old or new neighbourhood is thinking of selling, which is just as well, because I doubt that there will be many buyers at those stratospheric levels. Little has moved recently above $400,000 in Ottawa, so it will be a long wait for sellers who want up to double that.

The market will correct, but it will take several years of slow and low sales to get expectations and prices down to realistic levels.

#39 Joe on 07.19.13 at 8:30 pm

I don’t think that 90 rule applies to Calgary if your 27…lets see 90-27 = 63%…so by this age most of us have about 100k saved, or net worth, so 63k in a house…average house in calgary about 500k…ok condo then 320k, unless you live in a leaky, cracked walls condo for 230 or 600sq ft.

So lets say you settle for a 300k condo plus all the fees etc, about 320k, put down 63k:

with the condo fees will be paying (4%interest 25yrs) about 2k per month, and if interests rates don’t go up on yah;), you’ll pay more than half of that towards the bank interest and condo fees, for 7 yrs…

Interest rates will go up so we can probably safely say that you will pay over 1k for 10years to the bank and the building…if you don’t move out by then

Conclusion: don’t buy a condo if ur 27, or put down all your money towards it and pay it off quick, or just rent…then buy a house may be???

lets see now:

you rented for 6 years, your now 33 and need a house and you’ve saved up 300k, 90-33=57%; 171k towads a house in Calgary…you settle for 450k because your now married; at (6% 25yrs) your paying with taxes and utilities about 2.5k…but now it makes sense because you need a bigger place and the wife pitches in…

Really the only time it makes sense to buy is if your married, and your splitting somewhat the interest

I’ll stick with renting for a while…not ready to commit to a hose and a wife just yet

#40 AK on 07.19.13 at 8:31 pm

“So far in 2013, for example, the Dow Jones Industrial Index has added 20%, while the S&P 500 is ahead 19.8%. These are ridiculous numbers, reflecting not just corporate profitability and economic revival, but speculation and misadventure.”
——————————————————————–

Trailing 12 months P/E for the Dow Industrials is 16.75. The Forward 12 months is estimated @ 13.55. The numbers are not even close to being ridiculous.

#41 MikefromMontreal on 07.19.13 at 8:34 pm

#11 Jean Petitnonplus on 07.19.13 at 6:21 pm
I recommend that people sell there stocks, as they are at an artificial high, and instead invest in real estate in my city Montreal. Unlike the rest of Canada, prices here are low and still rising. We have many immigrants coming from the middle east who have lots of money and are buying properties like there is mo tomorrow, driving up prices further. Buy in now before this becomes a bubble, you will make out well when selling at a premiun in five years. Montreal, the best kept real estate secret of Canada!
—————————-

Hi John!

Really is that what you recommend?

Try doing the math and you’ll see that Montreal is no different from the others, housing is still unaffordable.

Have you actually looked at what is on MLS? Whatever is decent is way over priced and what is reasonable needs 25% (estimated) in renos.

The people you are referring to who come with so much money are buying condos for the kids because we subsidize cheap education for everyone.

PS: can you post me your contact info, I may need a realtor eventually.

#42 Macrath on 07.19.13 at 8:44 pm

#9 PeterSchiff’s never wrong

the decline of the culture in the West
—————————————————-
Here is a recent interview with Chris Hedges.

http://www.youtube.com/watch?feature=player_embedded&v=5vWcyetC3CI

#43 Obvious Truth on 07.19.13 at 8:45 pm

Beautiful dog. Can sense their bond.

#44 louise on 07.19.13 at 8:49 pm

RIP Schoep, you were clearly blessed in your long life.

#45 jaguar on 07.19.13 at 8:52 pm

Near this Spot
are deposited the Remains of one
who possessed Beauty without Vanity,
Strength without Insolence,
Courage without Ferosity,
and all the virtues of Man without his Vices.

This praise, which would be unmeaning Flattery
if inscribed over human Ashes,
is but a just tribute to the Memory of
BOATSWAIN, a DOG,
who was born in Newfoundland May 1803
and died at Newstead Nov. 18, 1808.

#46 greyhound on 07.19.13 at 8:54 pm

To “buy low, sell high,” maybe it’s interesting to ask what are some of the things that are currently cheap and dear —

expensive:
Australian real estate
Bonds in western countries
Canada real estate
Euro
Hong Kong real estate
Crude oil(?)
Shanghai real estate
S&P 500
US farm land

cheap:
Argentine peso
Belarus ruble
Mining stocks
Russian stocks
Silver
Spanish real estate
Sugar
Zimbabwean dollar

#47 JSBertram on 07.19.13 at 9:00 pm

A friend from HK passed this on to me.

HK realtors protest over steps to curb rising prices

THOUSANDS of real estate agents took to Hong Kong’s streets yesterday to protest government efforts to curb soaring property prices, saying new transaction taxes and other measures are threatening business.

“There are 37,000 agents in Hong Kong and there were only 3,000 transactions last month,” said Raymond Ho, a spokesman for the rally organizers. “The policies have frozen the market. A lot of small property agent firms will close in the future.”

http://www.shanghaidaily.com/nsp/Business/2013/07/08/HK%2Brealtors%2Bprotest%2Bover%2Bsteps%2Bto%2Bcurb%2Brising%2Bprices/

34,000 hungry realtors last month.
Not a pretty thought.

How soon will we be seeing the realtors in T.O. marching to Queens Park demanding relief?

#48 a prairie dawg on 07.19.13 at 9:01 pm

I lost my pooch this same month last year, days after an operation. She died in my arms at home. I’m keeping a copy of that picture too.

#49 dosouth on 07.19.13 at 9:09 pm

Visiting squeamish Squamish this weekend for the scenery but most of the news is hyped on tourism, no hope for the working stiff and real estate here…. this paper removed a print story about Foreclosures on the Rise in Squamish from their July on line edition but still available in print. Local realtors not happy we heard, money still talks at least in controlling “some” of the message….

Contractors and locals having a tough go just paying bills

P.S. – Our heartstrings were certainly tugged with Schoep

#50 Lebron on 07.19.13 at 9:11 pm

This is all normal rebuttal Steve-O. Your Strata will never raise condo fees from where you get in now??? Better yet, they’ll prolly lower them???? The difference between 600 and 620 square feet is about as 5 12×12 tiles and another 4 in another direction. Not much sweetheart. Why don’t you go and show me what 20 square feet looks like. Like I said, you like it? You love it? You cannot imagine a world without it? Then you must need it? The same way you need air, and toilet paper.

#51 Mark on 07.19.13 at 9:21 pm

“Trailing 12 months P/E for the Dow Industrials is 16.75. The Forward 12 months is estimated @ 13.55. The numbers are not even close to being ridiculous.”

Except most firms that are reporting are missing their numbers. So that forward P/E isn’t likely to be anywhere near that low.

Meanwhile the TSX-listed firms have been beating lately and will likely continue to do so. One of the richest families in Canada paid $12B for Shoppers Drug Mart, using RE sale proceeds to pay.

#52 screwed on 07.19.13 at 9:22 pm

Good post. Balanced and fair. Nothing to disagree with. Being in cash looks good right now. I missed much of the latest run-up but when is enough ever enough? Debt is still cheap and manageable for most. The clock is ticking and Detroit for all intense and purposes is going to have an effect on all municipalities and even states or provinces across this continent. Gold plated pensions and huge burdens of future liabilities are going to be scrutinized. So they should. The costs of our public service sector are absurd. I’m an entrepreneur and always shook my head in disbelief at the cost of our fire departments. Just one example.
Keep the balance and let’s discuss where to move next.

#53 Tony on 07.19.13 at 9:23 pm

Re: #3 paul on 07.19.13 at 5:53 pm

Not a correction a continuation of the bear market that started with the dot-com crash only this time it’ll be all the indexes that drop 80 percent. Last time it was only the NASDAQ.

#54 HAWK on 07.19.13 at 9:30 pm

#155 Suede on 07.19.13 at 12:01 pm

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

If you want to rent cheap use Kijiji

If you want to rent well, use viewit.ca or ask a realtor to look on MLS.

#55 AK on 07.19.13 at 9:32 pm

#52 Mark on 07.19.13 at 9:21 pm
“Except most firms that are reporting are missing their numbers. So that forward P/E isn’t likely to be anywhere near that low.”
——————————————————————–
All of the misses are coming the tech sector. (Google, Microsoft, IBM..etc..)

Industrials, Financials and Pharmas are hitting them out of the park.

Bottom line is that the S&P 500 and Dow are still reasonably priced.

#56 TheCatFoodLady on 07.19.13 at 9:33 pm

#38pinstripe… I respectfully disagree. I intially put a small windfall my Main Squeeze inherited into a flexible GIC until I figured out how to handle it. I’m out of that now but the return after taxes was puke inducingly poor. Because MS is terrified of the investing world – he sees everything other than GICs as gambling, I’ve stuck with low cost, (mainly index), MFs so far. The return has been far, far better than any GIC.

I do self directed brokerage; the only inside knowledge I have is which cut rate grocery store has a sale on Meow Mix this week or where Whiskas is cheaper. A conservative approach, plodding through individual MF holinds & qnarterly financial statements, continually reading & learning more. I’ll take that over insider knowledge any day.

And no, you don’t need ‘millions’ to slowly, carefully, increase your holdings.

#57 Julia on 07.19.13 at 9:45 pm

Steve o
In fairness to Lebron
He’s not wrong that depending on the hood in TO you can pay a million for a tiny one bedroom and pay well over $500 in fees. Here’s one example in the new Four Seasons. Of course if you’re lucky you could bump into Mark Walberg
http://www.realtor.ca/PropertyDetails.aspx?PropertyID=13193815&cul=1

#58 takla on 07.19.13 at 9:48 pm

TGIF Garth,48 hrs this week with one 11 hr day in there.IM BEAT ,but not too tired to run my TC-88 @3\4 throttle all the way to my LCD for that 1989 AU 1 oz PANDA ive had my eye on all week.Ahhh the perks of being liquid and debt free……..oh,dog luver here too RIP schoep

#59 Mark on 07.19.13 at 9:52 pm

Industrials, Financials and Pharmas are hitting them out of the park.

Guess you didn’t see BAC’s financial reporting the other day. They ‘earned’ $3B or so, but their balance sheet shed $6B+ of equity. Eventually the loss of equity will show up in earnings.

#60 Nemesis on 07.19.13 at 9:52 pm

@Screwed/#53

“I’m an entrepreneur and always shook my head in disbelief at the cost of our fire departments.” – ‘Screwed’

Well then… perhaps you should personally try doing this sometime soon… ???

http://youtu.be/KrwlDh465HQ

#61 HAWK on 07.19.13 at 9:52 pm

I thought you felt the Dow and S&P had room to go higher only a short while back.

Anyway, rather than US Equities, the more interesting question for some of us would be whether the TSX and Canadian Equities are overvalued or not?

Care to comment?

#62 Donald Trump on 07.19.13 at 10:00 pm

#52 Mark on 07.19.13 at 9:21 pm

Meanwhile the TSX-listed firms have been beating lately and will likely continue to do so. One of the richest families in Canada paid $12B for Shoppers Drug Mart, using RE sale proceeds to pay.

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

Yep..can’t wait for Mr. G. Weston to be on TV promoting “No Name brand” feminine hygiene products and prophylactics.

#63 Min in Mission on 07.19.13 at 10:05 pm

Kudos to John.

Great post.

#64 AK on 07.19.13 at 10:08 pm

#60 Mark on 07.19.13 at 9:52 pm
“Guess you didn’t see BAC’s financial reporting the other day. They ‘earned’ $3B or so, but their balance sheet shed $6B+ of equity. Eventually the loss of equity will show up in earnings.”
——————————————————————–
BAC is a double from here.

Their Merril Lynch holding alone is worth $14.00 per share. They get no respect at all. The media keeps pointing to the Country Wide Garbage they control.

Even Country Wide will be profitable once they sort out all of the foreclosed shit. That deal was a mistake either way.

#65 Devore on 07.19.13 at 10:09 pm

I was just browsing the posts from yesterday… oh, the fairy tales people tell each other. Like the idiot claiming every house has a $1400 basement suite. Undeclared of course. Free and clear.

Don’t get me wrong. I don’t doubt there are people paying $1400 to live in someone’s basement. There is one born every minute after all. I also don’t doubt there are tons of basements for rent for $1400, but that’s why they’re still for rent. Maybe a new-ish 2 bedroom in a desirable area.

If you have $1400 to spend on accommodations, you can live above ground anywhere in Canada. Ain’t no one one getting that kind of money for a dank basement.

#66 Dean Mason on 07.19.13 at 10:09 pm

To Pinstripe #38

Put all your money in an asset called a house that takes you 25 or more to pay off is the biggest mistake anyone can make today.You will have no savings,no investments,no cash flow and be in debt or will fall back into debt when your older.Reverse mortgage ring a bell.

If you look at the all the property taxes,insurance,repairs and maintenance,utilities even after the house is paid off with no mortgage it costs about 2.25% to 2.50% annually depending on the type of property and your municipality.

If you own a condo with monthly condo fees,it’s more like 3.00% annually.It’s not bad enough you spend about $1,250,000 on all these expenses,mortgage interest,CMHC and property taxes for a $500,000 house but like most Canadians you would have no savings, investments,cash flow or income in retirement.

The CIBC poll recently showed 59% of retirees,seniors are in debt of some kind with 2 to 3 payments made monthly.If instead of putting all your money in the money pit and had $12,000 a year in less expenses,taxes,costs not buying that house you could not afford earning even 4.75% a year for 35 years in TFSA’s you would have $1,029,341.02.

Also, you would be earning $48,893.70 yearly cash flow income tax free and be saving $24,000 after tax a year in annual property taxes,repairs and maintenance,insurance,utilities etc.This is with the house paid off with no mortgage and no other debts.

A house is a place to live.It is an asset when you sell it but it’s not an investment.People have lost their minds thinking that it is.

#67 T.O. Bubble Boy on 07.19.13 at 10:16 pm

Here’s a bit of evidence that things could be overheating: Berkshire Hathaway is up 40% from November!

That’s right: somehow a diversified $300B company can change 40% in 8 months… when the overall economy is growing at 2%-3% and the S&P is up around 25% in that same 8 month timeframe.

#68 Obvious Truth on 07.19.13 at 10:22 pm

I feel your pain:
FAZ – triple financial short. How bout raise cash?
Gold/Metals – some great companies were crushed. Buy.
Cheap – US treasuries last week. Buy.
Short S and P – your few bucks won’t change the trend and you are not smarter than multinational CEOs

The message has always been lighten up if you are lucky enough to catch a big move. Then look for something that can outperform and wade in. Nothing happens overnight. Smartest investors never make extreme bets. They are robotic and emotionless about the process. Think most here are afraid of making money.

Time to read a book. Pick one from a great investor. Any suggestions for the investing extremists?

#69 AK on 07.19.13 at 10:34 pm

#69 Obvious Truth on 07.19.13 at 10:22 pm
“Time to read a book. Pick one from a great investor. Any suggestions for the investing extremists?”

——————————————————————–
Forget about the book. Read These

#70 Cici on 07.19.13 at 10:40 pm

Beautiful and touching photograph Garth. Thanks for publishing.

Peace, love and serenity to Schoep in Paradise.

#71 Ralph Cramdown on 07.19.13 at 10:47 pm

#68 T.O. Bubble Boy — “Here’s a bit of evidence that things could be overheating: Berkshire Hathaway is up 40% from November!”

Manulife is up over 50% in that time frame. I wonder what they have in common? Hint: Berkshire isn’t as diversified as you think.

#72 Happy & Free in BC on 07.19.13 at 10:55 pm

Great post once again Garth. The photo and story behind it is deeply moving. Dogs truly are man’s (or womans!) best friend. That dog was lucky to have such a compassionate human.

One question for you though, you mentioned commodity prices would feel the effects of the floods in AB so I sold CNQ only to see it head much higher after I sold it (first time I have ever lost $ on a stock – only $100 loss though, nothing to get excited about). Why didn’t commodity prices fall as you suggested?

#73 Humans — Greater Fool – Authored by Garth Turner – The Troubled Future of Real Estate | The Affluent Boomer on 07.19.13 at 11:02 pm

[...] via Humans — Greater Fool – Authored by Garth Turner – The Troubled Future of Real Estate. [...]

#74 Nosty in Vladland on 07.19.13 at 11:04 pm

-
Adios Schoep, and enjoy the adventures in the next worlds (other side). You and John will meet again.

Looking thru the pix in the link, it is obvious why animals have a greater sense of compassion and caring than most humans. Did anyone have pets that viewed houses or condos as ‘investments’, did the pets ever hoard gold or silver or have portfolios worth a couple of million or more? Good column and pic.

#153 TnT on 07.19.13 at 11:59 am — “You can’t just keep getting raises. You can’t take more than you put in.”

Yes, but that is not what sheeple believe and there is a vast chasm between knowing and believing. The minority know and prepare accordingly, the majority believe and squawk like dead parrots when their trough is not being filled anymore!

#157 VICTORIA TEA PARTY on 07.19.13 at 12:15 pm — “Obama says he won’t help. “No bailout for you!”

Hi VTP. Keep in mind that politicos don’t usually have the slightest idea of what they are blabbering on about. They are controlled. For further info., see lobbyists and the ones behind them that organize things.

First — this (plus short clip), then this. Self explanatory.

SMan – So much for Larry Silverstein and his cronies!

#75 Shawn on 07.19.13 at 11:06 pm

BERKSHIRE HATHAWAY

T.O. Bubble Boys says:

Here’s a bit of evidence that things could be overheating: Berkshire Hathaway is up 40% from November!

That’s right: somehow a diversified $300B company can change 40% in 8 months…

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

Berkshire may indeed be getting too high and I have reduced my position.

But it’s not really the company that is up 40% in 8 months. Book value is up somewhat but not that much.

What is up 40% is the marginal investor’s opinion of the value of the shares.

Remember when Buffett was buying back shares for the first time ever a while back, at 110% and then 120% of book value? Did you buy? No? Seriously?

Remember when he bought some A shares back from a long-time investor at around 120% of book and people said it was a sweet deal for the seller who was a friend. The stock is up a TON since that hapless investor sold. Sweet deal for the investor indeed, not!

Rule number 1: Always assume that Buffett is correct

Rule number 2: Don’t forget rule number 1.

#76 Mark on 07.19.13 at 11:09 pm

BAC is a double from here.

Their Merril Lynch holding alone is worth $14.00 per share. They get no respect at all. The media keeps pointing to the Country Wide Garbage they control.

BAC is a zero, because of interest rate risk. Even slight moves in long-term treasury rates destroy their balance sheet (loaded up with long-term assets). Along with the rest of the US banking system. And as they’re forced to sell assets to short up their capital, their ability to earn their way out of the mess will be diminished even further.

The Countrywide stuff has nothing to do with the interest rate sensitivity that’s obviously on their balance sheet and embedded into the rest of the US banking system. Obviously somebody is taking huge amounts of risk on those 30-year mortgages, and its embedded right into the US banking system. Which will ensure de-leveraging for many years to come in a rising interest rate environment.

#77 Cici on 07.19.13 at 11:28 pm

#26 Einturzende Neubauten

Cool name…Almost – You forgot the “S” (and the umlaut on the “u”, but I’ll let that go) = Einsturzende

Sorry to be nitpicky, I just need that “S.”

For those that don’t know, here’s the trivia: Einstürzende Neubauten roughly translated means “collapsing new buildings,” and is the name of an experimental/industrial music group from the 80s.

Oh, Oh Condogeddon – Look out below!

#78 Carpe Diem on 07.19.13 at 11:32 pm

I had an economic talk last evening with my co-workers (clients).

I think it was an eye-opener for a few boomers 10-years to retirement on how different I think.

They now understand I’m all about taking advantage of their weaknesses and help them …. all good, I’m asking for a nice increase for me and my handler.

They told me stuff like … I’m sure you would like to owe and not waste money renting … I told them … my rent is free since my investments make more than what I pay in rent (and let us not consider repairs).

I went off on diversified investments and macro-economics and possible future in interest rates, boomers and echo generations and me the x-gen, in the middle, waiting for the crash.

One lady blinked.

She asked … so maybe I should sell.

I said … I’m no expert. I actually outsource my investing for 1%. You should just get informed and then make the decision.

Visit greater fool …

#79 Mark on 07.19.13 at 11:33 pm

“Anyway, rather than US Equities, the more interesting question for some of us would be whether the TSX and Canadian Equities are overvalued or not? “

Well, TSX60 yield = ~3.7%
S&P500 yield ~= 2%
DJIA Yield ~= 2.1%

This would imply that the TSX would need to rise 75-80% on a relative basis to achieve yield parity with the S&P500/DJIA.

The Canadian indicies are clearly a buy here. The US indicies are a big sell, especially into a rising interest rate environment.

Remember that the US indicies only managed to re-inflate themselves after most of the air was let out of the US housing bubble. While the Canadian indicies are at these levels with most of the investing public still going bonkers over RE. Once the air is let out of Canadian RE as the “go-to” asset class, TSX = 20k easily, and perhaps much higher if there’s a significant gold mania.

#80 Joe on 07.19.13 at 11:39 pm

Florida -Houston -Philadelphia -Chicago -New York City Oakland -borrowing from pension funds to pay debt.
Florida commissioner says bankruptcy the best option, LA mayor says bankruptcy not an option.
Dominos American style.

#81 Cici on 07.19.13 at 11:39 pm

#35 Mikey the Realtor

Actually you might be the idiot. If you’d actually read the full story, the photo was taken last summer after the owner realized the dog was probably close to the end. He wanted the last mile to be as pain free as possible and would dunk him in the lake to sooth his pain. The photograph was to commemorate the final prelude of their friendship.
But, it touched the hearts of many, after which money came pouring in, which paid for medications that gave the dog another full and pain-free year of life.

#82 HAWK on 07.19.13 at 11:42 pm

http://www.nationalreview.com/article/353959/downfall-detroit-mark-steyn

#83 Cici on 07.19.13 at 11:45 pm

I love dogs too, but it would be great if we could sometimes hail the great and Almighty Cat.

My cat is so awesome, I would just love to tell you all about her!

#84 m on 07.19.13 at 11:48 pm

My dad carried our 22 year old cat for two days while she died. He brought her in from the alley as a kitten and gave her a dish of milk. After that, she had one goal in life – to get back inside.

#85 Young Boomer on 07.19.13 at 11:48 pm

http://www.calgaryherald.com/news/calgary/Wary+lenders+reassess+value+flood+damaged+properties/8684837/story.html

#86 WhiteKat on 07.19.13 at 11:55 pm

Awwww…. I read this blog earlier, but did not see the caption re: the photo, at the end until just now.

I had thought that the picture was of a dog and his best friend escaping from the heat of recent days, not that of a human and his best friend living out his last days.

#87 Devore on 07.19.13 at 11:57 pm

Well, this is sad, but at least they’re eating their own dog food. Or drinking their own coolaid. Whichever.

http://www.theglobeandmail.com/globe-investor/personal-finance/retirement-rrsps/hewing-to-a-new-reality/article13323262/

#88 dr. pain relief on 07.19.13 at 11:59 pm

Herb, the Ottawa market in the 400+ range is actually quite robust if you check the stats on recent sales. In fact my neighbour’s home sold for full ask, over 500+, 1 wk on the market.

Anyone looking for pain relief, check out Motion Medicine, it can heal tissues and makes the pain go away. You can even rub it on your dog:
http://www.embraceairbackrests.com/pain-relief

#89 Devore on 07.20.13 at 12:03 am

On paper, they’re millionaires. They own a house and two investment properties. But they are projected to die penniless, if the stress doesn’t do them in sooner.

#90 Cici on 07.20.13 at 12:08 am

#62 Hawk

They just did go higher; now his word is to count the blessing by rebalancing = cash in at least a portion of the gains and reinvest it elsewhere where there’s less risk and more room to rise.
There could me more gains ahead if you stay steady, but also a high level of risk. Re-read the section about recency, and people holding onto equities that have probably reached the peak.

#91 island boy on 07.20.13 at 12:31 am

When looking at Canadian homes and what value you get, consider looking south of the USA border to see what hundreds of thousand ex-pats see as value.
http://cblacosta.com/Puerto-Vallarta-Real-Estate/property-search/20130427124246323282000000/property

#92 Waterloo Resident on 07.20.13 at 12:44 am

I read an article in a Canadian magazine with the title:
“Man becomes a millionaire within 24 hours by following this simple formula.”

All he did was buy a million-dollar house in Toronto, by taking out a no-money-down mortgage, that’s all he did, yet he was praised as being a GENIUS, and that others should try to follow in his example.

I just shook my head and walked away in disgust from it all.

#93 Yitzhak Rabin on 07.20.13 at 12:47 am

Are you guilty of recency bias with gold, or is everyone stupid except you?

Some of your gold related comments over the past 2 months:

“Gold is kaput”
“Gold is not money”
“We could see $800 an ounce”
“The Central Bank will pare back stimulus”
“Buy some Bre-X while you’re at it” (response to question about Barrick Gold – now up 20% off its lows, 5% yield)

The false narrative of monetary tightening was a giant head-fake to the markets. There will be more and more QE because QE is the economy.

Bernanke thinks he can take the table cloth out underneath the dishes. In reality, taking QE away is like trying to take the table out from under the cloth and lead the dishes suspended mid-air.

Tightening is another Great Depression. QE infinity is slow death by inflation. One is easier politically than the other.

Oil, gold, silver, base metal miners and emerging market shares and currencies are under-priced. Numerous times I tried to get a comment out of you about the TSX Venture (up from 860 to 920).

When the bond market and the dollar fall together AND the price of gold starts surging, there will be major issues.

#94 ex-condo-holic now renting in van on 07.20.13 at 1:11 am

Hi all, in Garth land,

First time posting here, although I’ve read Garth on and off for 25 – 30 years, if this is possible (if my memory is correct).

Isn’t the sentimental photo of the 19 year old dog, and his devoted owner, an analogy to owners who own houses or properties?

I guess most owners get deeply emotionally attached to their homes/condos and it is a source of pride and boasting, and it is indeed hard to let go of “ownership”.

But sometimes, in certain economic times, like now, being a boomer who has tried home and condo ownership, being a Landlord, spending hundreds of hours watching the Home Channel or whatever, and spending years decorating and picking out paint colours and bedspreads and furniture… I decided to “let go” of “ownership” recently.

Just my personal story. I read things here on Garth’s website and other news reports.

I’m renting in westend Vancouver, for $1,400/month, and i feel i am free now. i’ve got a great view, in a great rental building. No more paying condo maintenance fees, no more property taxes, no more dealing with the STrata Council/Board of Directors volunteer owners.

Van is not as expensive as people think. My rent is the same as rent in downtown Ottawa, in Centretown. It’s cheaper than renting in downtown Toronto and perhaps similar to renting in Mississauga, looking at the same size apt, I mean.

I also gave up my car, and I signed onto Car2Go, car-sharing.

I think my standard of living has improved, since I gave up “ownership”. Plus my equity is now invested in something that produces some income for me.

Yes….i paid dearly to sell in this market, depreciation + the LTT (land transfer taxes I paid to buy) + real estate agent commish + legal fees ….but for my situation, i feel I did the right thing for me.

Everybody has to look at their own situation.

This is my first and last blog.

(from a “Canadian” who has lived in Scarberia; the Gay Village in downtown T.O., Etobicoke near Long Branch (this Smoking Man sounds like a guy we used to know but my brother doesn’t think it’s him); lived in Windsor and cross-border shopped in Detroit; lived in Yellowknife home of the most northern McDonalds; Ottawa, Richmond and in Van now.

i’m a renter…i’m a renter….i’m a renter…and lovin’ it.

#95 Toronto and GTA Sales and Stas -July 19 -Condo sales stopped their descent to 100 today on 07.20.13 at 1:22 am

http://recharts.blogspot.ca/2013/07/gta-condo-sales-and-stats-july-19-100.html

http://recharts.blogspot.ca/2013/07/905-sfh-sales-and-stats-july-19.html

http://recharts.blogspot.ca/2013/07/to-sfh-sales-and-stats-july-19.html

#96 Tony on 07.20.13 at 1:41 am

Re: #68 T.O. Bubble Boy on 07.19.13 at 10:16 pm

It shows you how stupid people can be when you can buy all the companies Berkshire Hathaway holds separately. Just buy them all separately for much less.

#97 Hurtin' Albertan on 07.20.13 at 1:45 am

The banks are assessing their assets in southern AB. Regardless of where their homes sit on the provinces outdated flood zone maps, owners of flood-damaged homes will be out of luck come mortgage renewal time:

Wary lenders reassess value of flood-damaged properties

Homeowners could be ‘blindsided’ when mortgage comes up for renewal

BY MATT MCCLURE, CALGARY HERALD

#98 A Nightmare on Bay Street on 07.20.13 at 2:22 am

Central Banks like the Fed can press “print” on their computers forever (so they think, as well as some usually wise financial commentators).

The States can dump their financial problems to the Cities.

The Cities then squeeze all the juice they possibly can from the citizens with ever growing fees, tickets, taxes, etc, to try to stay afloat.

We are the forced greater fools of this scheme.

Until the system breaks, we cannot pay anymore and then downward spiral is speeding up.

Welcome to Detroit.

#99 Expat on 07.20.13 at 2:25 am

“Mikey the Realtor….
So if Unger knew the dog was in pain then why put the poor thing through the torture, at 19 years old a dog is a fossil and it should of been put down under the circumstances, a great example of an idiot.”

If Canada had more People and dogs like Unger and his pal and less Realtors it might be a better place spouting, sorry scratch that, would be a better place.

#100 The American on 07.20.13 at 2:59 am

At #133 from yesterday’s blog: HD, you asked how I feel about the Treyvon Martin case? Zimmerman is guilty as sin, and nearly every person I’ve spoken with believes the outcome of the jury’s decision is a travesty. Zimmerman’s acquitel came only by the assumption he had to feel threatened by Martin, otherwise it had to be proven he was acting with malice (beyond a reasonable doubt, remember?). Who was available as a witness or testimony to provide this information otherwise? Oh yes, a dead teenager. Zimmerman only got off due to technicalities within the judicial system. It won’t stop here, though. Officials now fear for Zimmerman’s safety, as he should be also. Also, we need to stop celebritizing felony cases as it ultimately underminds the integrity of the judicial system, insults the victim’s memory, criminalizes the victim, and exposes those who were close to the victim for no compelling reason other than for a good story and even better ratings. These are my thoughts.

#101 Frank Smith on 07.20.13 at 4:16 am

http://www.nanaimodailynews.com/house-prices-sales-on-the-rise-average-selling-price-rose-to-375-000-1.542630

well you heard it from the Horse’s mouth the Pulitzer Prize winning rag the Daily News! I am sure real estate ad revenues have no influence unlike their car dealers which do haha! How they can even print that bogus RE Board crap is beyond me? Apparently West Jet flights may be possibly responsible from bringing in buyers from Calgary who want a piece of the strip mall. So the good times continue to roll..OMG!

#102 live within your means on 07.20.13 at 6:18 am

“The best relief John Unger could find for severely arthritic, 19-year-old Schoep was to take him into Lake Superior, where the water’s buoyancy would allow the dog to sleep in his arms, without pain. Schoep died this week.”

Hubby’s cousins’ dog, Sultan, (a German Shepard) was just put down after we left visiting them in Bedarieux. It was so sad to see him try to walk. He had arthosis in both hips. He was on pain meds and the vet said nothing further could be done for Sultan. Sultan watched his brother, Baron, run up & down their large terraced property, yet he could only move slowly, in pain. I’m pleased Sultan & Schoep are ‘Over the Rainbow Bridge’.

We’re back from our one month holiday in France. First week was cold & dreary but the last 3 were wonderful.

Upon arrival In Frankfurt Airport (due to back & walking problems) we were met by a 4 wheel vehicle which took us to customs in a priority line. Driver showed our passports to custom’s official who verified our pics & off we went. Hubby also arranged for a wheel chair on our way back at both airports & we were in a separate line at customs. Young female at Canada Customs in Hfx gave hubby a hard time as he was travelling using his French passport. She mentioned Canada would not come to his aid if he ran into a problem in another county. Yeah right. France would come to his aid more quickly than Canada. He got the same line from a newbee Cdn customs official in Maine last fall. His French passport is good for 10 years & costs half the price than a Cdn one for 5 years & only 1 page to complete. We’ve been flying into Frankfurt for the last 10 years & never have the slightest problem. Cdn customs officials are the pits.

BTW, SO surprised to receive a notice that I have an appointment with an Ortho Surgeon on Aug 28. Usually it takes min. 6 – 8 months just to get an appt. When I saw my family doc in late May she finally suggested I see one as a last resort.

Have an appt. to see a chiro on July 24 for ‘sound wave’ treatment to see if it will help my back & sciatic problems. A friend & his Mom had fab. results. My whole life is now dictated by whether I get some pain relief from my TENS machine.

#103 live within your means on 07.20.13 at 6:28 am

PS to my previous post. To my utmost surprise FIL was actually looking at rental ads. MIL wanted to sell the home years ago. House had been turned over to their 3 sons years ago. They pay the taxes, etc. but once they leave the home it belongs to the sons to sell. PILs are financially secure.

#104 bigrider on 07.20.13 at 7:34 am

” A house is not a financial strategy any more than an RRSP full of funds”

Wow, what possible similarity can the two have.

I would take an RRSP full of funds growing in value for retirement over a house I am paying expenses on earning me nothing any day of the week.

#105 T.O. Bubble Boy on 07.20.13 at 7:40 am

@ #13 calgaryPhantom on 07.19.13 at 6:22 pm
Should i take my money out of US markets and buy an ETF that short US markets? like FAZ?
———
Are you a day trader?

Assuming you are not, just consider taking a bit off the table and/or look to rebalance.

An inverse ETF is typically not an investment: it is a short-term bet.

#106 AK on 07.20.13 at 7:55 am

#78 Mark on 07.19.13 at 11:09 pm
“BAC is a zero, because of interest rate risk. ”
——————————————————————–
I don’t know, Mark. You and I have discussed the interest rate scenario on RFD, but I just don’t see rates going up much that are going to cause issues for the U.S. financials.
The U.S. unemployment rate is still high and personal income is still not growing.
There is a lot of comparison going on with 1976, but that was when the boomers were entering the work force which created a lot of consumption.
Anyway, I still believe BAC is going deep and maybe within the next year or 2, they will finally sort out the value of all of the real estate they are holding in their balance sheet.

#107 Ralph Cramdown on 07.20.13 at 8:13 am

#92 Devore

Aside from any other problems those cash flow negative realtors may have, the fact that they have a big (non deductible interest) mortgage+LOC on their residence and tiny (deductible interest) mortgages on their rentals show that they have the tax planning instincts of gnats.

#108 SebastienB on 07.20.13 at 8:19 am

#11
Jean Petitnonplus or JeanPoutine (whatever the alias you re using)

Can you stop pumping Montreal real estate????

Seriously the party is over, there is no more Kool-Aid!

People Right Now are so desperate in Montreal to sell their house or condo at reduced price.

I see already a 5% price cut all around here and there is still no buyers.

Are you a realtor or a seller?? If so why are not busy to try to sell your failing price assets???

Priceless……………..!

#109 T.O. Bubble Boy on 07.20.13 at 8:24 am

The Globe & Mail’s ‘Financial Facelift’ features 2 realtors nearing retirement…. take a wild guess as to whether or not they follow Garth’s Rule Of 90 and have reduced real estate holdings?

http://www.theglobeandmail.com/globe-investor/personal-finance/retirement-rrsps/hewing-to-a-new-reality/article13323262/

(hint: they own 2 B.C. Properties, and only a $160k RRSP besides those)

#110 Mike on 07.20.13 at 8:37 am

beautiful picture

#111 craig on 07.20.13 at 8:39 am

#102 The American

I AGREE 100% Zimmerman IS GUILTY of manslaughter.

I do find it odd though, that the NAACP is so upset about the Zimmerman verdict but were awfully quiet on OJ’s.

Double standards are everywhere I guess.

#112 Ballingsford on 07.20.13 at 8:54 am

RIP Schoeb!

Stuff! I’m going to rant again about stuff. Why do we need so much stuff. To impress family, coworkers, neighbours? The other day my 5 year old son said “Dad, we live in a rental unit, we should have a house”. It’s a nice spot though with a back yard, patio table, bbq, flowers, bird bath, etc., I thought to myself that we have lots of money to spend without going into debt. Kiddo already has 15 grand in RESPs.
I said to him “Well, you try hard at school and get yourself a good education, get a good job at something you like and then buy your own house”.
The kid has had more in his 5 years than I ever had during my childhood, but I’m trying hard not to make him into a spoiled brat. He’s a great son though and treats everyone, young and old, with respect.
Anyway, that shut him up and his mother was listening and it shut her up too.
Going to Cirque de Soleil tonight with the family front row seats, saw Paul McCartney a couple of weeks ago, and then heading out on a vacation on Wednesday that’ll cost about $4500 and when its all over, I’ll not owe a nickle.
A house is not a home. A home is what you make of it.
It’s not about having stuff!

#113 AK on 07.20.13 at 9:08 am

Home Flippers Come Roaring Back

#114 TheCatFoodLady on 07.20.13 at 10:47 am

#115AK – funny you mention flipping. I watched a few episodes of Income Property this week. After the initial purchase, (how much they put down is NEVER mentionedf so I’ll assume the minimum required 20% for a place you’re not inhabiting), work, etc. the property owners get all orgasmic about a monthly return after expenses of $300-400 a month. Presumably, that’s after all carrying costs but that’s… rather glossed over.

I find the ASSUMED rental values run high & the risk of a place sitting vacant is something else glossed over. At the rental prices being projected, 1 month empty means any profit for the year disappears. These houses may be done up to the nines on the inside but on the outside – meh!

The property owners feel & are encouraged to feel that real estate is a great investment, that property values can only travel upwards. I ran numbers on a few places from some episodes & although some of the basic numbers to be plugged in were hinted at more than given, I couldn’t come up with a better return than 3-5% per year. The fact that it’s income & taxed at marginal rate is never discussed.

The potential of problem tenants is rarely mentioned.

I’m not saying buying an income property is a bad idea. Somebody has to own the properties many of us rent. But it’s not for the faint of heart, the fiscally marginal or those who haven’t meticulously done their research, as well as checked how it fit into a balanced portfolio. The right property(ies), in the right market fitting into the right portfolios – great fit. For the rest of us – a crap shoot.

#115 AK on 07.20.13 at 11:13 am

“There is no way any organization with 10,000 employees can pay full compensation to 20,000 retirees. Everyone with a public sector pension plan in North American is on notice, and rightly so. — Garth”
——————————————————————–
The sad part is that none of the public sector pensioners realize the facts. They believe that they are immune from reality.
They should consult with some of the IBM retirees since 1994 to see what happened to their pensions.

#116 Penny Henny on 07.20.13 at 11:13 am

The best approach is balance. You need a place to live. You need your savings safe. You need them to grow. And you need income for life. A house is not a financial strategy, any more than is an RRSP full of funds or a bevy of bonds.
—————————————————
Advice like that, this is what I come for.

no need for the doom and gloom, other than to get the crazy comments flowing

Penny Henny

#117 The American on 07.20.13 at 11:20 am

So funny. M waking up in Vancouver this morning. Picked up Globe and Mail. On the front page of the Business section is an article on American real estate, specific to Miami and the reshapiing of the business model to make RE successful again across the U.S. Not a word about Canadian RE whatsoever. *Crickets chirping* So, what’s the take away? When things are going down the shitter in Canada, refocus attentions elsewhere to keep the general feeling going that RE as an investment is still good. LMFAO.

#118 Heather Nova on 07.20.13 at 11:24 am

Sometimes the most compassionate couse of action is also the most heartbreaking. Although blunt and detached in his method of conveying it, #35 has a good point. Ending the life of my faithful and beloved pet will be the most difficult thing I will ever have to do. It takes a courageous and responsible person to know when the quality of life has become so bad that it’s simply a humanitarian gesture to finally say good-bye. I’ve seen selfish pet owners keep their dog around long after the pet is full of cancer, their skin is hanging from each bone, and every day is full of pain. I’m not saying it’s the case in this example, but too many people put their own feelings ahead of the welfare of their pet.

#119 Evangeline on 07.20.13 at 11:46 am

some of the gruesome horror stories I’ve read and heard about what can happen during the process of putting a pet down has made me decide that I will let nature take its course and let any pet of mine decease naturally.

#120 Basil Fawlty on 07.20.13 at 11:55 am

“Detroit is a non-event. — Garth”

As central banks continue to push down interest rates, savers are being punished. This has had a direct effect on pension plans around the world.
Secondly, the ongoing push to move manufacturing off shore has decimated the tax revenues of cities, such as Detroit.
This is not to say that all the blame for Detroits problems are limited to my two point above. However, to simply suggest that Detroit is a non-event, ignores the current economic reality. Not to mention the lack of any compassion for all the pensioners who are being thrown under the bus, while the banks get trillions in bailouts.

#121 Babblemaster on 07.20.13 at 12:10 pm

#102 The American

—————————

A travesty? Technicalities? That’s what most people believe? Really?

Well, most people don’t use logic. What if Trayvon had smashed open George’s noggin on the concrete? Would there have been a big outcry over that?

The forensic evidence clearly showed that Treyvon was beating up ion George at the time of the shooting. It is further logical to conclude that it was George that was screaming for help at the time.

It seems that Treyvon was angry at being followed and responded with aggression by confronting George and physically attacking him. Whether George was really fearful for his life at the time of the shooting is the only question open for debate and George is the only one who definitively knows the answer to that. However, it is logical and reasonable to conclude that he could have been.

The bottom line is that you just should NOT physically attack people unless you absolutely have to because it’s wrong and, also, because they could have a gun.

#122 T.O. Bubble Boy on 07.20.13 at 12:13 pm

There is no way any organization with 10,000 employees can pay full compensation to 20,000 retirees. Everyone with a public sector pension plan in North American is on notice, and rightly so. — Garth

I guess this includes basically every country with a government retirement benefit like CPP or Social Security. The ratio of the number of active workers to retirees is too small pretty much everywhere.

No, CPP is solvent, thanks to increased premiums and the CPP Investment Board. But, nobody can live on the government pension. — Garth

#123 Julia on 07.20.13 at 12:57 pm

#114 Ballingsford on 07.20.13 at 8:54 am
Well said! Clearly your son is parroting someone else, you hint his mother. What could a five year old know about renting vs owning? My friend is a single mother of a similar aged son. When she divorced they were forced to sell their townhouse at a loss. Now she rents the ground floor of a house. Her son would never know the difference. He has a garage, a yard, a driveway. His friends would never know the difference either when they come to visit, how would anyone know who owned the house? The bank owns most people’s homes anyway. Point that out to your son.

#124 Ralph Cramdown on 07.20.13 at 1:12 pm

#126 pinstripe

Thank you for asking and answering that question for us, pinstripe.

#125 Cristian on 07.20.13 at 1:26 pm

“These are ridiculous numbers, reflecting not just corporate profitability and economic revival…”
“My faith in the American resurgence is undiminished…”

Garth, I noticed repeatedly that you seem to be under the impression (or is it mystical belief?) that economy and stock market are somehow connected.
You are either less than ingenuous or simply are not enough financially educated to know that is not true.
There are many studies proving this – if you are willing to read them, that is.
A more comprehensive look at this factor was conducted by Elroy Dimson, Paul Marsh and Mike Staunton of the London Business School. The profs took the records of 83 countries from 1972 to 2009 (the most comprehensive set available) and ranked them by GDP growth over the previous five years. Investing each year in the countries with the highest economic growth over the preceding five years earned an annual return of 18.4%, but investing in the lowest-growth countries returned 25.1%.
Here’s a place you could start educating yourself:
http://www.economist.com/blogs/buttonwood/2013/03/investing
But at least you’re right about the rest of the stuff.
Cheers,

Thank you for the further evidence academics (and you, apparently) do not understand how markets work. — Garth

#126 45north on 07.20.13 at 1:30 pm

TheCatFoodLady: The potential of problem tenants is rarely mentioned.

I’m not saying buying an income property is a bad idea. Somebody has to own the properties many of us rent. But it’s not for the faint of heart, the fiscally marginal or those who haven’t meticulously done their research

thanks for pointing me to the Residential Tenancies Act:

http://www.e-laws.gov.on.ca/html/statutes/english/elaws_statutes_06r17_e.htm#BK0

The law still favours the tenant. For the last 40 years this imbalance has been masked by the constant increase in housing prices. If housing prices do not increase then few rational men (or women) would be landlords. My brother-in-law was a landlord for 40 years. He was brave-of-heart, well funded and knowledgable about the law and practices in the Province of Ontario. After 40 years he cashed out. Without the prospect of steadily increasing housing prices he would not have been a landlord.

Here’s a link to my experience as a landlord:
http://www.greaterfool.ca/2013/04/26/all-in-this-together/

#127 Denisa on 07.20.13 at 1:48 pm

Hi Garth,
Last week I met a couple (60 something) from Alberta who bought a house in Qualicum Beach, B.C. two years ago. They now know they paid too much for a 2 bedroom rancher on a slab. Wishing they still had cash instead of a house and wannabe renters . It’s easy to get seduced into buying real estate while on a two week vacation on beautiful Vancouver Island.
The price reductions are now apparent as we head toward August, but real estate remains over valued. It is my opinion that assessment has also over valued a lot of these 30 – 40 year old ranchers on slabs. Most need another $100,000.00 in repairs and updates. Owners are in their mid eighties. You can find several that are asking below BC assessment values because of the condition of the homes and if the location out of the main town.
For myself, I remain on the ‘money road’ and watch through the rear view mirror.

Thanks, Garth

#128 LS in Arbutus on 07.20.13 at 2:44 pm

How one billionaire – and America’s housing market – came back from the brink

So Mr. Perez is moving carefully but also quickly. “Will there be a bust?” he asked, looking out at his swimming pool and the shining sea just beyond it. “Yes. The question is when. People used to say there are three important things in real estate: location, location, location. Now I say, it’s timing, timing, timing.”

http://www.theglobeandmail.com/report-on-business/international-business/real-estate-revival-americas-property-markets-make-a-comeback/article13327917/

#129 Debtfree on 07.20.13 at 2:46 pm

This country just keeps getting goofier . Lcbo gives 49% discount to federal government , diplomats , and commissions . No wonder their decisions seem to be so foggy and detached from the reality of the ordinary Canadian . Or is this a way to sedate the civil service .Our loveable smoking man needs a commission and a trip to Ottawa . We need that kind of honesty and integrity there badly .

#130 robert james on 07.20.13 at 2:51 pm

#112 That realtor story was pretty neat . Greedy people like these two goofs are one of the reasons young families cannot afford to buy a house to raise their family in ..Reap it you pigs !!!

#131 Donald Trump on 07.20.13 at 2:53 pm

Re Landlording

Family story:

Bought a property in early 1970’s., in the low high $30,000.Had mostly good renters. However, the annual property taxes began to eat up about 60% of the rental income. It was sold about 10 years ago…with major capital gains hit.

Those were the days where a lot of working class people could invest, the rent paid much of the mortgage, and you ride the inflation.

IMHO, those days of the long term ended in the early 1980’s. After that it was simply flipping quickly in hot markets.

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

Nowadays, you get stranger scenarios. Renting rooms for foreign students…in one case the uncovered a condo rented for “anchor babies”.. .expectant mothers from overseas that arrive here, stay in condo room, give birth, then go back home.

#132 Donald Trump on 07.20.13 at 3:00 pm

Re Warren Buffet :

He is based in a very interesting place in the US which has all the appearances of being bland and boring, but is quite the contrary if one goes down rabbit holes.

#133 Alex K on 07.20.13 at 4:08 pm

#35 Mikey the(FHead)Realtor
#48 JSBertram
#84 Cici
Mikey the Realtor has been posting idiotic and desperate comments here for sometime now. His last comment only proves that he’s an Idiot.
There are 35,000 plus realtors in the GTA and 45,000 plus in Ontario, look at the number of sales and you can quickly see how desperate things must be getting for people like Mikey,Eh Mikey- what about that listing you as-hole? or should I say “LOSER” I did get right this time Eh

#134 Observer on 07.20.13 at 4:09 pm

9 PeterSchiff’s never wrong on 07.19.13 at 6:19 pm

On Utube Trevon wanted to show how Gangster he was.

Well like a true Klingon, He died in Battle just like a gangster. They should be proud.

There is a lesson to be learned, instead of crying for the guy they should make a example of him and teach it to our youth. I see all these kids in High school thinking they are Gangster- oh sooooo cool. Instead they should be teaching what gangster attitutes gets you, Killed or beaten up!

#135 Observer on 07.20.13 at 4:13 pm

#132 Shawn on 07.20.13 at 2:14 pm

PUBLIC PENSIONS WILL RECOVER
=====================
The solution will be simple, Just like Greece. Raise the retirement age to 80 years. And hope most of the Fu–ker died before ever getting a red (cent) nickle!

#136 jess on 07.20.13 at 4:14 pm

Journal of Forensic & Investigative Accounting
Vol. 2, Issue 1
The Forensic Audit: An Example from the Public Sector
Ronald J. Huefner*

In 2005, a major case arose in a relatively new arena, local government, specifically a public school district. The Roslyn School District, a relatively small
public school district east of New York City, made headlines with the disclosures that top district
personnel had diverted over $11 million of district funds for their personal use, over about a
seven-year period….
The auditors determined that Pamela Gluckin, her husband and children were beneficiaries of over $5.2 million of the misappropriations. Frank Tassone received over $2.4 million, Deborah Rigano over $300,000, and Stephen Signorelli nearly $900,000. Over $1.5 million could not be identified as to beneficiary. The remaining $800,000 was received by some 18 individuals. In all, at least 29 individuals were found to have shared in the $11.2 million fraud..
http://www.bus.lsu.edu/accounting/faculty/lcrumbley/jfia/Articles/FullText/2010v2n1a4.pdf

Chronic corruption creates a “pariah effect” says Hoffman. Higher quality vendors and bond underwriters won’t do business with local governments that cost them more for compliance, reputational risks, and legal penalties and vendors won’t submit a bid or will submit higher quotes to compensate for the additional risk.

Dixon’s auditors seem to have never questioned the city’s deteriorating cash position and Dixon’s residents paid the price. The City of Dixon’s problem was complacency. Dixon officials, the city auditors and residents allowed Rita Crundwell to run the city’s finances on her own and were immensely grateful to her for doing so. The external auditor, CliftonLarsonAllan, was not independent after 2005 because of several other services it performed such as bookkeeping and IT. To solve that problem, CLA selected a “straw man” firm, according to a lawsuit filed by the city against both audit firms, to sign the audits after 2005 that were still prepared by CLA. According to the city’s lawsuit the “straw man” audit firm had neither the staff nor the qualifications to audit a city of Dixon’s sixe and complexity.

An annual audit by a state-licensed public accounting firm is required for municipalities in most states, including Illinois. Very few states, however, do much more than file the reports and wait for something bad to happen before investigating. In Illinois, the state comptroller has no legal authority, or funding, to perform its own audits. As long as the financial statements and audit report are filed on time, there’s no follow-up.

“An audit firm must be independent and competent. There should be sufficient oversight to make sure both conditions are true,” says David Hoffman. Illinois performed no oversight of Dixon’s finances or its auditors

#137 bigtown on 07.20.13 at 4:24 pm

Whoever buys that condo at the Four Seasons must understand the DOLLAR MENU at McDonald’s. Two apple pies for $1.39 and the coffee/muffin deal and/or the hamburger at $1.39. I feel better knowing he/she or they won’t starve. Not all of us can be as prepared or as smart as Garth in life. I have learned that it takes most of sixty years to respect and recognize and value the financial rules of the road.

#138 jess on 07.20.13 at 4:36 pm

miami bonds
The Securities and Exchange Commission is charging the city of Miami and its former budget director with securities fraud

===
Here, Hedges laments the lack of an effective left, and blames its death on the “inability to articulate a viable socialism”. I’m not sure that was ever possible given the virulence of anti-Communism in the US through the fall of the USSR (and right after that, the Rubinites took over). Look at how Keynes was bastardized in the US (which has also had serious knock-on consequences) because an economic text that was faithful to Keynes by Lorie Tarshis was targeted by, among others, William F. Buckley. As we wrote in ECONNED:

A Canadian student of Keynes, Lorie Tarshis, published an economics textbook in 1947, The Elements of Economics, which included his interpretation of Keynes. It also suggested that markets required government support to attain full employment. It was engaging and well written, and sold well initially, but fell off quickly, the victim of an organized campaign by conservative groups to have the textbook removed. The book, and by implication Keynes, was inaccurately charged with calling for government ownership of enterprise.

Any taint of Communist leanings would damage the career of a budding academic. So aside from his refusal to accept some fundamental elements of Keynes’s construct, [Paul] Samuelson had another reason to distance himself from the General Theory. Samuelson said he was well aware of the “virulence of the attack on Tarshis” and penned his text “carefully and lawyer like” to deflect similar attacks.

Read more at http://www.nakedcapitalism.com/2013/07/chris-hedges-america-is-a-tinderbox.html#gWEkFQSLL5pRLIjc.99
http://www.nakedcapitalism.com/2013/07/chris-hedges-america-is-a-tinderbox.html

#139 Old Man on 07.20.13 at 4:38 pm

I know all about this picture and the story behind it all, as got a call from my dad about the family dog, and to come home. The family dog was old, as was placed with the best Vet in Ontario at his hospital; yes he had the credentials, and there was no hope, as needed to be put down. My dad said do you want to come, and was not man enough to say goodbye to a friend, so my dad who was bigger than me did it all; upon his return there was nothing left but silence.

#140 Donald Trump on 07.20.13 at 5:14 pm

What I see unfolding is quite intriguing, but again all the hallmarks of a 2- tier communistic system(aka pluck and plunder the middle class).

You see these public sector firms /crown corporations (aka monopolies) where the management give themselves bonuses and salaries (with the real Gem excuse of “having to compete to retain talent”)and also reward the often unionized “job for life ” employees.

Seems these insiders maybe know something so are lining their pockets before SHTF..THEM versus us plebs.

QUOTE:

http://www.theprovince.com/news/Ferries+employees+safety+perk+prompts+outrage+among+passengers/8648705/story.html

Some B.C. Ferries passengers were outraged Thursday by news that the publicly-owned company is handing its employees $300 gift cards for doing their jobs safely this year.

The former Crown Corporation announced in a July 2 company memo that it is offering each of its 3,000 unionized workers a $300 gift certificate in recognition of an “excellent safety record achieved in the past fiscal year.”

At a total price tag of $900,000, the program will give employees the option of choosing a gift card from Mountain Equipment Co-op or SportChek, or reimbursement for the same dollar amount from a local gym of their choice.

===========

I would submit that the fact you have a well -paying job is your F’n bonus.

Then again, we know this gold -plated trough -diving orgy will come crashing down, so maybe the sooner they make it happen ..the sooner we can fix it.

#141 Old Man on 07.20.13 at 5:48 pm

#144 Old Man – I want to place this all in context, as why would never say goodbye to an old friend, as will be damned if I am going to whisper in my dog’s ear saying goodbye with her half dead on live support licking my hand and wagging her tail.

I hate death, and it is not my gig or ever will be to witness an execution before my eyes, so take what is called the highroad in life to keep the memories of my beloved family dog, as that is what counts in life, as that will last forever in my memory.

#142 Snowboid on 07.20.13 at 6:11 pm

#117 TheCatFoodLady on 07.20.13 at 10:47 am…

The outcome appears a bit shady, because the results only mention rental income and estimated home value increases.

No mention of the net income, only potential gross.

Then read the fine print, you also have to have a minimum of $ 25,000 plus a 25% contingency to fund the renovation. Plus $ 1500 for survey if required. Oh yes, and 10 days off work for the filming over two months.

None of this is mentioned in the figures. I guess if you had $25K plus in your account, then it may be worthwhile to get the design work done (free) and the suggested discounts from vendors that want to be seen on the show.

We had our own experience a few years back with a rental property – after several thousand in renos, didn’t see the increase in rent cover the costs – didn’t realize any benefit until we sold in 2005.

I cringe every time I see Scott McGillivrays’ face appear, but others in our household like him!

#143 GTA Engineer on 07.20.13 at 6:15 pm

Holy smokes – Garth admitting that stocks are overinflated? No news here. It doesn’t take the herd piling in to see that the risk in equities is sky high. Nice to see it mentioned though..

#144 TheCatFoodLady on 07.20.13 at 6:39 pm

#148Snowboid – thank you for the details. I have no reason to know any of the financial details involved in filming the show. I figured there had to be some solid funding in place to get through that audition process & there was no way any of the work was happening in less than a month – 2 seems far more realistic.

I can’t imagine either that after viewing 3 contender properties, any purchaser makes up their mind ‘overnight’ about which to purchase – too much research would need doing.

I can believe discounts for product placement on the show but again – that leads to unrealistic prices attributed to the cost of renos – unless the total costs listed are the retail costs & not the discounted amount.

Shows like that make it seem too easy, too smooth of a process. I don’t think they do anyone a favour.

#145 Ret on 07.20.13 at 6:46 pm

Ontario Teacher PP

I don’t think that currently working teachers have grasped what has happened to their future pensions. Their indexing has been reduced to continue excessive benefits for current retirees, especially principals, superintendents, and directors.

Pensions for retired principals and superintendents are far more generous than the career teacher. They get a much greater return for each dollar contributed than the classroom teacher.

A promotion in your last five years gives you a $10,000 yearly pension increase each and every year of their pension yet, they have contributed only $10,000 more, in total, to the fund than a career teacher.

#146 Donald Trump on 07.20.13 at 6:51 pm

#146 Shawn on 07.20.13 at 5:14 pm

I have many family members(in laws) involved in the civil service.

Actually , there are slow and incremental clawbacks on civil service benefits and have been for years.

One rather humorous indicator is 50+ years old with braces..almost a sure sign they work for Gov’t …get that dental work done before Freedom 55.

Ontario Teachers ?
I seem to recall they are cashing in some of their prime investments. Why?

In the end nothing is sustainable if the gap widens between Private and Public Sector.

#147 jan on 07.20.13 at 6:56 pm

I love this beautiful dog Schoep , may he rest in eternal peace.
Btw – anyone cruel to animals should be castrated in public and left for dead !

#148 Unpoovvio on 07.20.13 at 7:22 pm

I don’t watch TV much but has anyone seen the Natl Association of Realtors recent commercial? The premise is pretty much “if you’re looking for a house act fast, because supplies/inventories are limited.” !!!!

#149 Marginal on 07.20.13 at 8:57 pm

#145 Donald Trump
Agreed…..economic rent seeking of any kind is deplorable. You raise a good point. Perhaps private sector bonuses shouldn’t be tax deductible either (that is bonuses cannot be deducted from corporate calculations to derive taxable income). And while we are on the topic, I suppose we should do away with MP pensions (the ones where the individual only pays into a pension fund for a very few years but receives a pension equal to a 35 year funder). I’ve always worked in the private sector, but find economic rent seeking an endlessly interesting topic. I suggest to you that the trough of economic goodies, be it private or public, is getting smaller and the jostling to get closer will become ever more fierce.

#150 dienekes on 07.20.13 at 9:05 pm

I think pension plans are the worst things ever unleashed on mankind, designed not to sustain people through retirement, but to channel large amounts of money into the hands of a small few, giving them control.
But I guess if everyone self directed there savings for retirement, they would just do something stupid like buying a house.

#151 Elvis on 07.20.13 at 9:12 pm

RIP Schoep

Old Shep he has gone
Where the good doggies go
And no more with old Shep will I roam
But if dogs have a heaven
There’s one thing I know
Old Shep has a wonderful home

http://www.youtube.com/watch?v=SE8Y_hc4A5Y

#152 Smoking Man on 07.20.13 at 9:24 pm

If you dogs only knew about the shit I got to deal with…..

Talked some one out off killing them selves last night, keeped this person on the phone long enough to have the cops zero in on phone.

Gatho, you got political ties, our youth have no hope, low self esteem, feel worthless. They can’t get ahead not matter what lies and encouragement we trow at them.

I wana change that… This is not a faux post. Very serious and scary…

When would I not be taking shit, on a Friday night.

Still shaking 24 hours later….

#153 George on 07.20.13 at 9:32 pm

EI whistleblower suspended without pay

http://www.cbc.ca/news/canada/british-columbia/story/2013/07/20/bc-ei-whistleblower-suspended.html

#154 Bottoms_Up on 07.20.13 at 10:36 pm

#145 Donald Trump on 07.20.13 at 5:14 pm
———————————————
So the private sector is allowed to hand out $1000, 2000, 5000, 10,000 even 20,000 bonuses (for meeting sales targets [i.e., how many people were you able to screw this year], Xmas bonuses etc.), yet a crown corp that rewards it’s meagre-earning employees with $300 for having a perfect safety record and not injuring or killing people or crashing and demolishing a massive and that is a travesty? Try again please.

#155 Donald trump on 07.20.13 at 11:43 pm

#160 Bottoms_Up on 07.20.13 at 10:36 pm

#145 Donald Trump on 07.20.13 at 5:14 pm
———————————————
So the private sector is allowed to hand out $1000, 2000, 5000, 10,000 even 20,000 bonuses (for meeting sales targets [i.e., how many people were you able to screw this year], Xmas bonuses etc.), yet a crown corp that rewards it’s meagre-earning employees with $300 for having a perfect safety record and not injuring or killing people or crashing and demolishing a massive and that is a travesty? Try again please

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

Owe- key dough- key.

Got yer seat belt on and errr bag ready?

Knock on my door… about 2 days ago

I think WTF?(quite rare event)

Open door…its 2 members of herr majesty’s Postal Service.

I say “yes?”

It’s (2)herr majesty’s Postal Service reps…a stupervisors and safety rep.

Calim: The Mail delivery person is concerned that(via the hot weather) my annual plants that adorn my driveway have wilted from from 90 degrees vertical to approx. 10 degrees from horizontal.

WTF?

One is a supervisor…the other is a safety officer who (kangaroo court) state that if I don’t change the situation, my mail won’t be delivered, I will have to pick it up( 3 miles away)

Moi..being a party whop can tap dance at the speed of light figured hmmm..OK ..over indulged snivel servant….in the chess game of life …play YOUR game.

I can and will report you to the RCMP as a perpetrator of THEFT …which is basically defined as “deprival of ones’ legal use of ones’ personal property”.

That goes in this MONDAY .
I will file charges…without hesitation.

If these snivel servants are going to act like this…it’s time we cull them out.

#156 Old Man on 07.20.13 at 11:44 pm

#158 Smoking Man – the youth in Canada need to be encouraged and supported to accomplish something in life or all will be lost.

#157 KommyKim on 07.21.13 at 12:55 am

RE: #160 Bottoms_Up on 07.20.13 at 10:36 pm
#145 Donald Trump on 07.20.13 at 5:14 pm
———————————————
So the private sector is allowed to hand out $1000…… Try again please.

Well, he is Donald Trump. What else did you expect from that comb over cad? ;-)

I agree. It is funny how people have no problem paying more for their gasoline, food, cars, electronics, etc to fund these employee and executive bonuses but react totally differently when the product is water, storm drains, roads, education, military defense, ferries, etc.

#158 James on 07.21.13 at 1:29 am

#160 Bottoms_Up on 07.20.13 at 10:36 pm

The high bonuses are paid by the private companies, but the $300 is paid by me, the taxpayer. That’s the difference. The fact that this even needs explaining goes a long way to underscore our collective financial illiteracy.

#159 betamax on 07.21.13 at 2:43 am

#90 Devore — great comments under that article also.

#160 betamax on 07.21.13 at 2:45 am

RIP Schoep.

His friends he loved. His fellest earthly foes
Cats, I believe he did but feign to hate.
My hand will miss the insinuated nose,
Mine eyes that tail that wagged contempt at Fate.

- Sir William Watson

#161 JUNO on 07.21.13 at 3:10 am

#18 raisemyrent on 07.19.13 at 6:39 pm

I hope he has a pretty wife, cause your been getting into that soon!

#162 Andrew Woburn on 07.21.13 at 3:57 am

104 Frank Smith

While I think one should be sceptical of R/E Board reports, the numbers reported in the Nanaimo Daily News may well be right. I have been closely tracking higher end SFH in Nanaimo since we bought there in early 2012. When we bought the average SFH price was reported to be about $365K. It dropped to about $335K and then started slowly rising. However higher end housing was hardly moving. Since about May, houses in the $400-600K range are selling again which is pulling up the average. In fairness to the Vancouver Island Real Estate Board, their recent stats have shown price and volume decreases in most parts of the Island other than Nanaimo so I can’t see how they can be accused of pumping.

#163 Alliston Potato Head on 07.21.13 at 5:46 am

The best approach is balance. You need a place to live. You need your savings safe. You need them to grow. And you need income for life. A house is not a financial strategy, any more than is an RRSP full of funds or a bevy of bonds.
—————————————————
Advice like that, this is what I come for.

no need for the doom and gloom, other than to get the crazy comments flowing
Thank you Henny Penny. All this advice for free and some peeps still spew hate. Go figure!

#164 neo on 07.21.13 at 6:17 am

Oh, so now Garth is calling a top in equities even though he has been arguing to death about corporate profits justifying this “rally” that is way too long in the tooth. Speaking of which. Have a look.

http://streettalklive.com/images/stories/1dailyxchange/S&P-500-Earnings-Price-071913.PNG

Earnings growth has actually been stagnant for nearly this entire rally since 2011. Price definitely hasn’t been though. I know what Garth’s rebuttal is going to be.

“So I’ll assume you’ve missed the rally since 2011 (insert % gains here)”

And I’ll simply state. Housing has also rallied since 2011, 2010 and 2009, but he ignores those gains and preaches they aren’t based on the fundamentals of the market and are being manipulated by Fed policy, cheap money and emotion. Hmmmm, doesn’t that sound like equities too?

Where did I call a top? Equity markets have a long upward road ahead, but with needed retrenchments. Housing? Not so much. — Garth

#165 Onthesidelines on 07.21.13 at 8:02 am

Lot’s of love here for the dog, not much for the pensioners in Detroit whose bankruptcy is characterized as a “non-event”

Fooked up priorities if you ask me.

#166 Stickler on 07.21.13 at 8:09 am

@ #164 James on 07.21.13 at 1:29 am

#160 Bottoms_Up on 07.20.13 at 10:36 pm

The high bonuses are paid by the private companies, but the $300 is paid by me, the taxpayer. That’s the difference. The fact that this even needs explaining goes a long way to underscore our collective financial illiteracy.

Well said James…

#167 Stickler on 07.21.13 at 8:10 am

“Detroit is a non-event. — Garth”

…will Chicago be a non-event too? ;)

#168 AK on 07.21.13 at 8:51 am

#149 GTA Engineer on 07.20.13 at 6:15 pm
“Holy smokes – Garth admitting that stocks are overinflated? No news here. It doesn’t take the herd piling in to see that the risk in equities is sky high. Nice to see it mentioned though..”
——————————————————————–
Wow. The S&P 500 closed @ 1469.25 at the end of 1999. On Friday it closed @ 1692.09.

That’s a whopping gain of 13% since the end of 1999. A sky high risk, Indeed.

#169 rosie "moving forward" on 07.21.13 at 8:54 am

#158 and others

Problem. It’s coming here to. http://www.salon.com/2013/07/20/recovery_for_whom_americas_new_economy_is_as_dysfunctional_as_ever_partner/

One solution? http://www.slate.com/blogs/moneybox/2013/07/19/cash_on_the_sidelines_pay_your_workers_more.html

Nah, that would disrupt the global race to the bottom.

#170 Ralph Cramdown on 07.21.13 at 8:57 am

“The high bonuses are paid by the private companies, but the $300 is paid by me, the taxpayer. That’s the difference. The fact that this even needs explaining goes a long way to underscore our collective financial illiteracy.”

I come here for the big picture, but I stay for the small ball. BC politics is like the Royal Family — cheap entertainment for the rest of the Empire.

The abovementioned safety bonus represents less than a million dollars and about 0.1% — one tenth of one percent — of BC Ferries’ 2013 revenue. I can’t even calculate how small it is in relation to the BC’s budget as a whole.

Anyone who spends significant time kvetching about such a thing is either satisfied with the government’s overall performance and wants to distract its detractors from possibly bigger issues, or has been successfully distracted himself. No, it ain’t symptomatic — its too small to worry about. Worry about the problematic tens-of-billion dollar decisions over pipelines, LNG terminals and refineries. Once you get those sorted out, you can move on to the billions and hundreds-of-millions issues… A $900,000 safety perq is a fart in a hurricane.

#171 AK on 07.21.13 at 9:08 am

#9 PeterSchiff’s never wrong on 07.19.13 at 6:19 pm
“This is what you non berlievers in gold don’t see- how valuless your money is.

Get ready for the ride!!!! Its been beaten down but wild horses are ready to escape. ”

====================================
Peter Schiff should become a comedian.

#172 AK on 07.21.13 at 9:10 am

#173 Stickler on 07.21.13 at 8:10 am
“…will Chicago be a non-event too? ;)”
====================================

Yes, even a bigger non-event…..

#173 Toronto_CA on 07.21.13 at 9:25 am

I agree with James #165. I have no problem with private companies paying out high bonuses OR private comapny unions, because if they don’t offer a competitive price or a good product, I will go buy from their competitor, or go without. They have NO right to my money. The public sector HAS no competitor and if I don’t pay for their product (taxes) I go to jail. This is especially true for public sector unions, which need to be abolished.

#174 Nemesis on 07.21.13 at 9:50 am

Things that make you go… “Hmmm.”

[PentictonHerald] – Kelowna: Tattoo Capitol ‘o Canada Hosts First Annual Convention

…”Tattoo artists travelling from as far as Germany will showcase their skill and creativity at the B.C. Interior’s first tattoo convention in Kelowna.

Running July 26-28 at Parkinson Recreation Centre, the Okanagan Tattoo Show will feature more than 70 artists ranging from burlesque dancers to piercing and tattoo artists…

KidSport Canada will also be taking part in the show by presenting various activities for children throughout the weekend.

“We wanted to do something for [the] children”, said Executive Director Danielle Crowe.”…

http://tinyurl.com/laberk9

[NoteToGT: I took some liberties with the leader]

#175 craig on 07.21.13 at 10:34 am

$95 Billion a month….for how long?

Rates at 0 … for how long?

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

Chairman Ben S. Bernanke

Semiannual Monetary Policy Report to the Congress

Before the Committee on Financial Services, U.S. House of Representatives, Washington, D.C.

July 17, 2013

In normal circumstances, the Committee’s basic tool for providing monetary accommodation is its target for the federal funds rate. However, the target range for the federal funds rate has been close to zero since late 2008 and cannot be reduced meaningfully further. Instead, we are providing additional policy accommodation through two distinct yet complementary policy tools. The first tool is expanding the Federal Reserve’s portfolio of longer-term Treasury securities and agency mortgage-backed securities (MBS); we are currently purchasing $40 billion per month in agency MBS and $45 billion per month in Treasuries. The second tool is “forward guidance” about the Committee’s plans for setting the federal funds rate target over the medium term.

#176 kc on 07.21.13 at 10:57 am

125 T.O. Bubble Boy on 07.20.13 at 12:13 pm

“No, CPP is solvent, thanks to increased premiums and the CPP Investment Board. But, nobody can live on the government pension. — Garth”

Isn’t Australia in a breaking property bubble? is this still a good investment for OUR pensions? I understand that the money nees to go somewhere, however is this now dead money??

http://www.thestar.com/business/2012/07/08/cpp_investment_arm_sinks_1b_into_australian_office_towers.html

“The Canada Pension Plan Investment Board is committing roughly $1 billion to building two office towers in Australia, a project which it is calling its largest investment in a single real estate asset to date.”

“…CPPIB said that at the end of March, its real estate portfolio totalled $17.1 billion, of which about $1.7 billion was invested in Australia…”

cheers

#177 jess on 07.21.13 at 11:17 am

blaggers and tracers

“The Telephone Blaggers Training Manual for Trace Work” It sets out in intricate detail methods of tricking public officials – from health workers to postmen – into disclosing private information about individuals. It also suggests “obtaining a subject’s bank details” by bugging rooms, carrying out physical surveillance, “mail interception” and “telephone interception”.

The document’s authorship is unknown – it was seized during an ICO raid – but it was used by entire departments of tracing agents. The ICO has been in possession of the manual since at least 2001, five years before it published What Price Privacy?, a document that revealed how media organisations, in particular, were using “tracing agents” to illicitly obtain personal data. The Baird report sets out in detail how the methods disclosed in the Blaggers manual have been put to use in real cases. It identifies a series of blaggers – based in various parts of Britain – who were used by the finance sector.”

http://www.independent.co.uk/news/uk/crime/exclusive-new-bluechip-dirty-tricks-scandal-revealed-after-12-years-of-silence-8721325.html

#178 Donald Trump on 07.21.13 at 11:25 am

#160 Bottoms_Up on 07.20.13 at 10:36 pm

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

I guess we missed a few leftards on the last roundup

Other have made the point. Any private sector company can shower themselves with raises and bonuses from top to bottom unless it has stockholders who may hold them more accountable. The mandate is to earn a profit so the company stays at minimum viable. I can’t think of any private sector firms these days being overly generous over and above the wage rate.

Gov’t ? is no different, or should be not different. There is nothing sacred about Gov’t. Its an entity whose role was once to serve us and turned into a nightmarish “1984” fairy tale of them versus us. It is bloated and overpaid.

Handing out bonuses is a slap in the face to the rest of us who at the same time see Gov’t raising fees and taxes beyond the inflation rate.

The sooner our Local Govt hit “Detroit status” the better.

#179 The American on 07.21.13 at 12:21 pm

This is only for fun. Being in Vancouver, I thought I would share my thoughts of Vancouver vs. Seattle from an American perspective. I do love coming to Vancouver when the opportunity presents itself. Living in Seattle, we often hear people say that basically Seattle and Vancouver are the same. Nothing could be further from the truth. In fact, the cities excel in completely different ways that make living in a region with two fantastic places so close to one another a delight. People in Vancouver are just NICE. Very nice, but certainly more quiet and passive, which as an American can be construed as a little boring. Seattleites are certainly louder, at times passive aggressive, which can be perceived as rude. In fact, I believe Seattle just ranked as the fifth rudest city. The natural beauty abounds in each city, but again for different reasons. Vancouver has the mountains much closer in, making them more accessible. However, these are not the rugged, snow-capped mountains found in Seattle. Seattle has the Olympics to the West, the Cascades to the East, and the pinnical trump is the Omni-present Volcano, Mt. Rainier as the backdrop. Certainly, getting around in a car is significantly easier in Seattle with a much greater highway system and road network. Vancouver has better public transport to move the masses. Vancouver has the beautiful Stanley Park near the downtown core. Seattle takes a very different approach, placing large pristine parks in the outlying neighborhoods. Downtown Vancouver *looks* more vibrant, but there isn’t a lot going on after 7pm. Seattle downtown is going 24/7. Vancouver focuses its energy on live ability, primarily in its downtown core, and has done an outstanding job. Seattle took a different approach, placing emphasis on the neighborhoods and less on the downtown core. The Seattle arts and music scene is no comparison, no offense. There just isn’t a focus on this in Vancouver. However, with that scene often comes a very bohemian bunch. Vancouver feels cleaner in its downtown (barring some very disgusting things I saw in Gastown and China town) and on some level I attribute this to having less bohemians. Basically, Vanouver concentrated the drug addicts in extremely high concentrations in a couple of downtown areas. Seattle drig addicts are not as concentrated, but spread woder theouhout the downtown core. The culinary specialties of either city are a wash for different reasons. Vancouver has fantastic Chinese and Indian food. Seattle has fantastic Thai, Mexican, and Japanese. Shopping is also a wash, but I will admit Seattle has more options and more centers for stores. Vancouver feels more organized. Seattle more chaotic. Vancouver more peaceful, but Seattle more interesting. No doubt, Seattle trumps with its economic engine, but this brings a rawness to it vs. that of the Vancouver shinyness. Vancouverites are significantly more prone to providing their opinions about gay marriage and pot, constantly trying to point out gay marriage was legal first in Canada and pot decriminalized. To that we say, yes, and thank you. But, gay marriage was first ever legalized by way of popular vote, not a handful of politicians, in Washington, which is more indicative of collective progressive thinking, and pot was also made completely legal in Washington state again by popular vote, not just decriminalized. Vancouver places value on shiny and new. Seattle places value on being different and funky (this really shows through in the architectural differences of either city). Both cities are surrounded by water on three sides. Vancouverites is incredibly flat as the city is concerned, but this makes biking easier and the waterfront more accessible. Seattle has far more hills and steep ones at that, even all throughout the downtown core. This adds visual interest and beaut, but makes getting around via bike or foot more challenging. Granville Island is not in the downtown core, and frankly feels fake, scrubbed, and a little Disney-like. Pike’s Market is the heart if downtown Seattle, and *feels* authentic, with significantly more options and choices from which to choose. Granville Island was like taking a quiet and pleasant stroll, where as Pike’s Market was bustling and noisy and things going on all around like an orgy for the senses. Anyway, when Seattleites want something different and want to escape for a quiet weekend getaway that still provides all the conveniences of home, they head two and a half hours North to Vancouver. By the way, not being too close to the forest, I can say the RE market has definitely cooled off a ton since I was here six months ago… It feels eerie, much like Miami felt just before the crash was admitted by the developers. I would be curious to know other’s thoughts!

#180 Bargains everywhere (someday?) on 07.21.13 at 12:27 pm

#176 Ralph Cramdown on 07.21.13 at 8:57 am

Anyone who spends significant time kvetching about such a thing is either satisfied with the government’s overall performance and wants to distract its detractors from possibly bigger issues, or has been successfully distracted himself. No, it ain’t symptomatic — its too small to worry about.
___

I usually agree with you but this time I don’t. These ‘little’ bonuses set a dangerous precedent for all other govt. unions to ask for the same. Before you know it, it’ll cost the govt. billions.

And even for the BC Ferries – what about next year? Was this a one-time thing? Is $300 enough? Maybe it should be increased by inflation every year. Where does it stop?

Years ago we were told that govt workers got the gold plated pension and benefits because they didn’t earn as much as similar jobs in the private sector so it was only fair. Now govt workers earn more than their private sector counterparts plus they still get the fabulous pension and benefits. The system has gone tilt. And now they want bonuses too? I think not.

#181 Donald Trump on 07.21.13 at 12:58 pm

#184 The American on 07.21.13 at 12:21 pm

Seattle is just a Vancouver wannabee. Try harder.

#182 Piccaso on 07.21.13 at 2:12 pm

#186 Donald Trump on 07.21.13 at 12:58 pm

You have to know Chinese to live in Hongcouver

#183 bob on 07.21.13 at 2:16 pm

at best governments are inneficient and waste much of our taxes..at worst they are also corrupt and taxes are abused for personal gain. i would venture to say that any beuroc-rat will find a way to abuse his position for personal gain if given the chance. In Indonesia or Nigeria the population know that everyone in power is corrupt so why do we think differently in Canada. Take Mike Duffy for example.

#184 Dr.NickRiviera on 07.21.13 at 2:48 pm

“Thus, sane people would be harvesting gains or spreading risk by diversifying into other assets – like fixed income or cash.” (or physical precious metals!)

Buy low, sell high right Garth? PMs are pretty much as low as they will go at today’s prices – they have been beaten down badly over the past year. So why not diversify and put 5-10% into this asset? You used to advise this but your tune has changed. Why?

No inflation. No financial crisis. No weakening America. No slagging dollar. No reason to buy gold. — Garth

#185 Donald Trump on 07.21.13 at 3:19 pm

#187 Piccaso on 07.21.13 at 2:12 pm

#186 Donald Trump on 07.21.13 at 12:58 pm

You have to know Chinese to live in Hongcouver

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

This is an Urban Myth

Most of the immigrants speak perfect English.
In fact, they can quote from Shakespeare.

They simply chose not to.

#186 espressobob on 07.21.13 at 4:19 pm

Gold, Silver, Platinum, Palladium, Irridium, Rhodium, & a few others in experimental stages? Other than industrial uses you gotta wonder? Maybe copper, zinc, aluminum, iron etc are more valued in our industrialized world.

The contents in my bar fridge are a far better “storage of wealth” than the crap spewing out from Schiff, Sprott or a clown like Ron Paul! Seriously?

#187 Blacksheep on 07.21.13 at 4:42 pm

Babblemaster # 124

This involves a 28 year old and a 17 year old male.
The older male is armed with 9mm handgun.
The younger male is unarmed. The older male on block watch, is concerned about younger males intentions
and calls 911. The operator asks if he is “following”
the younger man and instructs him “you don’t need to do that”. The older mans ignores the 911 operators instructions and follows the younger man.

What took place after this point is conjecture, but the end result is known.

A confrontation occurs.

The armed older man doing the pursuing is harmed, but avoids life treating injuries as he endures five
hours of police questioning, after the shooting.

The unarmed younger man that tried to run away, is shot dead, 70 yards from were he was staying.

The older man is not convicted of the killing.

The young dead man is found to have only, candy and iced tea in his possession.

Once race is stripped away, the callousness of these events comes into view.

Any one that believes this loss of a young life is not about prejudice is a fool.

#188 craig on 07.21.13 at 5:29 pm

#192 Blacksheep

2 questions remain unanswered in my mind;

1- What did Zimmerman say to Martin to provoke the attack? We’ll never know and Zimmerman will never say, as it will incriminate him.

2 – Why didn’t Zimmerman shoot Martin in the leg, arm, shoulder? A 9mm in any location would have ended the assault and Zimmerman knew that from his training. Yet he chose the heart.

He should be in jail for life, for knowingly taking a life.

#189 Snowboid on 07.21.13 at 6:04 pm

#172 Stickler on 07.21.13 at 8:09 am…

Unless you are living off the land in the ‘boonies’, not using anything purchased…

you too are helping to pay those private company bonuses.

#190 The American on 07.21.13 at 7:47 pm

At #183: Donald Trump, I don’t put any credence in any person who chooses a handle like your’s. Donald Trump has the worst possible taste on the planet. You probably love gold too. LMAO.

#191 Dean Mason on 07.22.13 at 1:24 am

Bob Brinker was talking about government pensions and benefits were outrageous at least 15 years ago.The unions keep taxpayers hostage and even the the new deal man FDR said governments workers should not have unionized workers.

#192 betamax on 07.22.13 at 3:26 am

The American — Pike’s is a great market in which you can get fresh food at good prices. Granville Island is a yuppie/tourist rip-off mart, with virtually everything costing considerably more than anywhere else.

#193 Forget the prices: Technically the GTA RE market is in recession. on 07.22.13 at 12:09 pm

This chart compares the YTD sales and $ volumes for TO and GTA (2013 vs 2012)

http://recharts.blogspot.ca/2013/07/technically-re-market-in-gta-is-in-full.html

In $volume (which is what matters for the economy) we are down an average of 5% excepting Condos which are down 12 %
WARNING: the situation could be much worse because the 2013 numbers are unadjusted numbers
Let’s also keep in mind that the best part of the year from RE sales point of view has passed. From this point forward the gap between 2013 and 2013 can became only bigger

#194 Contrarian on 07.22.13 at 3:31 pm

Surprise! Well, not really. Not one scientific rebuttal to GIJoe’s emotional response to Garth’s obvious bandwagon political commentary on climate change (which is not called global warming anymore because that has been roundly refuted and rightly so)… Who would deny that climate changes? There are no climate change deniers in existence. That is straw man. What there are, are people who will not be held responsible for the actions of corporations, which is the agenda that the political puppets are paid to promote. Simple.

#195 NonMSM on 07.22.13 at 3:44 pm

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