The harbinger

PARKING modified

Brad’s 56. “The death zone,” he told me Friday. “It’s like these guys are just flushing the system. You know, out with the expensive old dudes, in with the cheap kids.”

He lost his job last week, after 14 years in IT with the same big company. Gone is the salaried position worth $102,000 and a DC pension. Instead the 27-year-old sitting at his desk starting Wednesday will be an indy contractor, no benefits, no pension, no spouse, 30% less pay and happy to have work. At least it’s not a TFW.

Welcome to the new economy.

The Canadian dollar stuttered and fell when the latest jobs numbers came out before the weekend. How many productive people there are among us is the acid test of an economy, and we’re apparently failing. As I’ve chronicled here for the past year, we are in the midst of a silent slowdown that will soon have material consequences.

Last month 28,900 jobs disappeared. Most were full-time, and at private companies. The worst kind of employment losses. The jobless rate stayed at 6.9% because for every person who lost work, another person gave up looking. There are now 1,300,000 people idle. What a waste.

The employment rate – the number able to work who actually have jobs – has fallen to 61.5%, the lowest in four years, when we were just emerging from recession. As CAW economist Jim Stanford says (I like and respect him, even though he’s very pink), if the percentage of people with a job today equalled that of before the last recession, then 665,000 more of us would be working.

Here’s how it looks:

MISSING JOBS modified

Source: Jim Stanford

Also worrisome is the fact this has been falling for the past two years. In fact, the labour force participation rate is at its lowest point since 2001. In each of the last six months a paltry 3,000 jobs have been created, compared to 23,300 in the previous six months. Furthermore, wage growth is falling – a sure sign of the deflation I keep warning you about. Employment incomes are now increasing at a rate of 1.6% annually, which is completely wiped out by current inflation. Meanwhile gas is $1.50 a litre and a SFH in 416 is almost $1 million.

In fact, if it weren’t for the current crop of greater fools – borrowing massively at cheap rates so they can buy inflated houses and fill them with crap from China – things would be a lot worse. As Stanford points out, it’s been consumer spending that has kept the economy alive, putting all those condos construction guys, mortgage brokers and realtors, into paycheques.

But with a steady erosion in jobs, flatlining incomes, steaming piles of debt and unaffordable houses, how long can this faux boom last? “Canada’s economy has no engine,” he says.

Job reductions are everywhere these days. From resource companies like Teck to the post office, the major banks, railways and food processors. Guys like Brad, despite experience and corporate memory, are deemed disposable by companies who have no trouble reading the economic tea leaves. Canada is a high-cost country from which to do business in a world which gets cheaper daily, thanks to technology and competition. If employees in Calgary or Mississauga or Burnaby think they need fat wages to afford seven-figure houses, well, that’s their problem. Workers in Baltimore, Atlanta, Manila or Mumbai are far less demanding.

What does this mean for the months and years ahead?

Nothing great, which circles back to one of this pathetic blog’s main memes: real estate is risk. More than anything else, big reductions in the US workforce were responsible for turning housing into a financial sinkhole for the middle class. Without jobs, people lack confidence and borrowing power. Without those, they don’t buy houses. It’s only a matter of time, no matter how cheap mortgages are.

Besides, remember the harbinger of the 1929 stock market crash? Shoe shine boys and elevator operators giving tips?

We have our own. It’s the Realtor Index. There’s now one for every 245 Canadians, and in the GTA one for every 140 people over the age of 19. In a single decade the number of real estate agents has doubled.

Now Brad’s contemplating it. I rest my case.

CREA MEMBERS modified

Source: Financial  Post

216 comments ↓

#1 Timmy on 05.11.14 at 4:46 pm

That’s our neo-con government, selling us out and offshoring all of the good paying jobs, just like they did in the States. Pretty soon, there won’t be enough people buying goods to keep the economy moving as many of the middle class jobs are disappearing.

#2 Robbie on 05.11.14 at 4:48 pm

Well, at least now there’s an extra parking spot! :)

#3 Kreditanstalt on 05.11.14 at 4:52 pm

“Canada’s economy has no engine,” he says.

Love it! So true. So accurate.

Bring on the job losses…let’s have a little less “Potemkin” economy. A little less “Truman Show” economy… Let’s have some reward for frugality & some punishment for borrowing for consumption.

The rich are not all “banksters”.

A lot of them are your big spending neighbours in IT, resource industries, government jobs, unionized positions, middle management, technical staff.

You know ~ the type who “never get laid off”. Never worry about their jobs. Who always say, “there’s more where that came from!” and spend it on RVs, quad bikes, i-gadgets for every member of the family, NFLX subscriptions & massive mortgages.

These are ones that will get hit this time. And wait till the export sector drops too…

#4 zee on 05.11.14 at 4:53 pm

Garth,

I really dont see the layoffs that you always talk about. No major company has come out and reduced their staff significantly. Some retailers are struggling, like your Best buy, and they have laid off staff but this is simply due to their business model no longer working.

If what you are saying is true, then you would hear a lot about this and other than you no body is reporting such information.

There are plenty of people working with good jobs, massive amounts of immigration in the gta, and with money being cheap there will be no major housing correction.

#5 Roman on 05.11.14 at 5:02 pm

Canada’s houses prices are idiotic, of course. But not as idiotic as for example Belgium. Or UK, or Hong Kong.

http://www.economist.com/blogs/dailychart/2011/11/global-house-prices

#6 OttawaMike on 05.11.14 at 5:12 pm

Get a trade and become good at it. Go into the medical services field such as ultrasound or Xray.

They have not figured out how to offshore those yet other than the TFW program. The TFW scheme does speak to what a wealthy and compliant society we are.

We pay our citizens to idle around instead of encouraging labour mobility.
We are suckers to the cons and their biz buddies by not being more outraged. The pitchforks and torches should be out on the hill.

#7 Freedom55doesnotwork on 05.11.14 at 5:20 pm

Similar to Brad, good job in IT, forced to retire at 55 after 15 years working for the largest IT company, everything getting outsourced, still looking for work after 8 months, it’s rough out there!

#8 oh no, not my glasses on 05.11.14 at 5:22 pm

i’d like to see you do the employment analysis for the USA. considering how many time you keep saying their economy is growing, using the above analysis, they’re even more screwed than Canadians. but of course, your opinions are severely biased.

1.3 million Canadians idle? what’s the US equivalent?

What difference does that make to our situation? — a Garth

#9 Smoking Man on 05.11.14 at 5:22 pm

If Brad was any good, he would already have a gig lined up…

Typically I’m sent offers weekly. Often for more than I currently bill…

I dawn good… The street knows it.

#10 Bill Gable on 05.11.14 at 5:24 pm

“The Death Zone” – how true.

In Media, it starts at about 50. 4500 or more media gigs have been shunted (as I mentioned on this very Blog, a few days ago).

You can tell the guys in the suits look at the bigger money, the Pension, and also those pesky prescriptions for stuff that wrinkly people need, and are going “get rid of them”.
These are the people that MADE the business, but they have to go. Not good.

This will lead to speeding up of the cascade of deflationary forces (*read R/E) – just as the cost of food and essentials (stuff you need a job to afford) heads to the moon.

The echoes of the 1920’s are startling.

The DOW is still making new highs.

WHY?

It all makes me uneasy.

#11 TurnerNation on 05.11.14 at 5:24 pm

Is that a Kia in the pic? Hard to tell the
econo-bubble cars all apart these days.

#12 MEANWHILE IN FRANCE on 05.11.14 at 5:29 pm

“they can buy inflated houses and fill them with crap from China…”

Hey. Not all is crap that comes from there.

#13 4 AM Sunrise on 05.11.14 at 5:30 pm

A few years ago, I met a guy from southern India who worked as a line cook at a local brew pub, part of a local chain. Nice guy, and really happy to be here. But I couldn’t understand for the life of me why they had to hire a guy all the way from India when there’s no Indian food on the menu…not even that token ethnic staple, butter chicken, and definitely no idlis or dosas. Now I understand.

#14 devore on 05.11.14 at 5:35 pm

#144 Setting the record straight

Now introduce a new outside source of demand HAM for some neighborhoods. This will drive up the price in that neighborhood. This will increase the demand at any given price in neighborhoods that are the closest substitutes. With a given supply, the equilibrium price in other neighborhoods will increase. Over time the effect travels through the city.

Of course every buyer, offshore, hot money, local, martians, whatever, has SOME effect on the market. But you are making a mistake, in that in real estate, houses and neighbourhoods are not fungible, there is a very wide spectrum of substitution suitability.

In particular, demand for “status” properties, for example apartments facing Central Park, or Shaughnessy houses, does not spill over into neighbouring properties. A house 5 meters from a status area, or facing the wrong way, might as well be located ANYwhere. That’s why you have $5M tear downs in Van West and $10M apartments in New York.

If such a person is looking for a house in Point Grey, they won’t settle for one in East Van, for example. For sure, people who USED to live there have to move somewhere else, but their preferences are far less specific, otherwise they would not have sold. And in the greater real estate market, there is no shortage of housing.

#15 4 AM Sunrise on 05.11.14 at 5:50 pm

#6 OttawaMike on 05.11.14 at 5:12 pm

We sure are a wealthy society. And then I think of Saudi Arabia. The locals are idle because they’re looked after from cradle to grave and have enough money to hire TFW for everything from doctors to IT. We’re idle because…well, I’m stumped. Maybe I’d better go to the club and check out that indie band that’s bankrolled by the singer’s debt-free Boomer parents. Certainly the proportion of idle people is not huge (yet), just growing.

#16 SH from dEaDMONTON on 05.11.14 at 5:54 pm

Today’s blog brings our attention to the real elephant in the room. There is little bargaining power that governments have to deal with these issues. Unfortunate, but true. Market forces are driving all of these issues, and unless there is some other economic system to replace capitalism globally (fat chance of that), working people have to lower their expectations and accept the (very likely) possibility of lower standard of living than 20 or 30 years ago. The conflicting interests of the shareholders and workers, with only profits as the ultimate goal of the former, is the ultimate force behind these issue. Shareholders want to maximize profits for… well… themselves. Average workers want their own nest, community, and stable job with a peace of mind.
Increase supply of people looking for work, less jobs available (due to outsourcing and technology), and it’s a buyers (employers) market. Hence wages cannot and will not rise in the foreseeable future. Capitalist owners will pay higher wages if and only if there is no other alternatives. If people in India and China are willing do the same work, as well as workers Canada, and for 10th of the cost… You are a smart businessman!
And when worker’s wages don’t rise, and they still expect rising standard of living, they borrow. And who do they borrow from? The same shareholders and executives with stocks and bonds who lend average folks money instead of raising their salaries. Truly a rat race. One solution is to start your own business of course, but not every joe has the required skills, aptitude, and emotional intelligence to do this. Another option is to be prepared to move where the jobs are, and being as flexible as possible to catch opportunities when they come.

#17 economictsunmai on 05.11.14 at 5:55 pm

Some interesting reads:

Canadian Housing Prices Now Pushed Up Same Way as US:

http://www.millersamuel.com/canadian-housing-prices-now-pushed-up-same-way-as-us-prices/

ECRI’s Achuthan: In Hindsight, It Appears The US Economy Was In Recession Closer To Early-2013

http://www.businessinsider.com/ecris-achuthan-recession-call-2014-5#ixzz31RiA9MGL

Groundhog Day: The Fed’s Forecasting Models are broken…

http://johnhcochrane.blogspot.ca/2014/05/groundhog-day.html

Not just the Fed models but also the BOC/ BOJ & ECB.

Broken models, forecasting for a broken economy…

#18 AfterTheHouseSold on 05.11.14 at 5:57 pm

#4 zee
“I really dont see the layoffs that you always talk about. No major company has come out and reduced their staff significantly.”

Job Loss Refresher 2013:
Canada Post (slated to go) 8000
Heinz 740
Sears 800
Loblaws 275
Kellogg 500
EnCana 800
Sun Media 200
Blackberry (over thousand)
Potash Corp 1000
Bank of Montreal 1000
Canada Lost 40,000 jobs in the month of December.

Job Loss Refresher 2014:
Bombardier 1700
Sears (again) 624
Best Buy 950
Saputo
Steel Mill (in Welland)
CBC 650
Shaw Communications 400
Unilever 280
Grand and Toy 160
BC Teachers 632
Meg Worley 350
Canada Lost 29,000 jobs in the month of April.

I can only assume zee that you are new to the blog or are too busy watching real wives instead of the news or are a surRealtor troll.
Also there are no “massive amounts of immigration to the gta”. There is a capped number spread across Canada.

#19 timoftrees on 05.11.14 at 6:00 pm

I see the TFW at work in any Tim Horton’s in Alberta. These Philipino girls, it seems mostly, working their butts off, always a smile on their face, and living in Canada, while still managing to save money and send it home to support their family.

If our country was made up of more of these TFW’s, opened the doors (wide open) to families like this, I believe we’d be headed in the right direction. A nation of strong families of hardworking people trumps the generational welfare, the complainers and doomers and ‘ah, I just can’t catch a break’-types anyday.

#20 I'm stupid on 05.11.14 at 6:01 pm

Nice crea chart. I notice the sharp decline of realtors coincides with the market downturn of the last 80s.

#21 JSS on 05.11.14 at 6:04 pm

Today’s topic resonates with me, as very few newspaper articles discuss people unemployed from good paying jobs, and the difficulties they face afterwards.

I’m 40 years old, stay-at-home wife, two kids. As soon as my paycheque comes in every two weeks, I need to move aside a few measly bucks into another account, which is the “in case s%^t happens” account. I’ve been doing this for a few years now, and it’s neat how it can grow into something.

I’ve been downsized in the past, learned from it, never forgot what it’s like. It sucks because it makes you feel like s%^t.

But you need to be prepared for it, mentally and financially. I recall when RBC called me into their local branch, to update their KYC profile. They asked me if I was still working at the same place. I said “nope. Got laid off last week”. They immediately closed my Line of Credit. Good thing I had no money owing against it.

Took me eight months to find work. And I had to leave my home province.

#22 4 AM Sunrise on 05.11.14 at 6:12 pm

#18 AfterTheHouseSold on 05.11.14 at 5:57 pm

To add to your list:

Jacob Clothing 1500

#23 economictsunami on 05.11.14 at 6:19 pm

#4 Zee states

“Garth,

I really dont see the layoffs that you always talk about. No major company has come out and reduced their staff significantly.”

Two rather instructive and unfortunate examples are job losses announced by GM the scheduled shutdown of an Oshawa production line (2k) and ceasing production of the Grand Caravan in Windsor. (1k)

Once you average the amplification of 6 to 8 down stream jobs per production line job lost and this is just one industry…

#24 Hawk on 05.11.14 at 6:22 pm

I wonder just how long it will be before the average person working in the private sector:

(a) Tires of paying taxes for ridiculously over paid public “servants”.

(b) Tires of companies, off-shoring good paying work, while still retaining the “right” to keep selling in the first world at first world prices. US companies go a step further ane avoid US taxes as well, not sure if Canadian companies are doing this; they probably are.

(c) Tires of the “elected” representatives of special interest (supposedly representative of the people).

I hope the sheeple wake up at some point, but who knows.

#25 Bill Wilson Roadley on 05.11.14 at 6:24 pm

Greater Fools,

With the Brits under pressure to raise taxes or raid bank accounts, could the same thing happen here in Canada?

http://www.telegraph.co.uk/finance/personalfinance/consumertips/tax/10819885/David-Cameron-Taxes-will-rise-unless-we-can-raid-bank-accounts.html

I know some have said before that this would never happen here, and that it is different here, but lately more articles like this seem to be bubbling to the surface. Is it only a matter of time?

#26 Dean Mason on 05.11.14 at 6:35 pm

A 27 year old earning $71,400 a year is hardly a tough case example.

The problem is people are money morons and think that they can live a champagne lifestyle with a beer budget or net income.

The money morons also vote for those reds that increase water, electricity costs by double in 7 years and add a bunch of new, higher taxes making their lives even more financially difficult.

Then they complain and cry. Sad!

The tough case is the 56-year-old, not the kid. — Garth

#27 Londoner on 05.11.14 at 6:35 pm

If unemployment is rampant, the economy is stuttering and real wage growth is failing then why do you think rates will be higher in 5 years? Is it because you believe that all of the above will reverse course between now and then? Please explain.

Unemployment is not rampant, and five years is a long time. Only the naive would count on continued low dates which have encouraged excessive debt and exacerbated our problems. — Garth

#28 Piccaso on 05.11.14 at 6:38 pm

Been unemployed in high tech/telecom for 13 months.

#29 Londoner on 05.11.14 at 6:39 pm

Btw – if Brad’s good then he can go indy contracting as well and earn much more and without the politics.

Are you 56? — Garth

#30 Vangrrl on 05.11.14 at 6:40 pm

Just last night I watched ‘Death by China’ on Netflix, documentary about the wiping out of manufacturing in the United States over the last decade with all the companies going to China. It was very sad.

#31 Viewpoint on 05.11.14 at 6:51 pm

Interest rates are going nowhere, and if they move, it will be downward. Any major move down in the stock market flushes cash into Treasuries, rates go down. Reverse Repos have already started in earnest, keeping rates down. The ECB in the next few months will start their version of QE; rates stay down. The IMF, the only ones with a clean balance sheet, are preparing for the issue of Special Drawing Rights, keeping rates down. RATES CANNOT GO UP. If they do, the current system will have serious trouble. This is all about governments being able to roll debt.
We have years left yet before this plays out.
And yes, houses cost too much. No Shit.

#32 Writing on the wall on 05.11.14 at 6:52 pm

Brad’s story is a typical one. I have been in his shoes and I know lots of people who have.

It was apparent back in the mid 80s that China was going to resume its historical position (really, it was probably underway since the 70s when Nixon went to China) as the world’s largest manufacturer, that NA was going to lose its post-WWII advantages that led to its being the world’s largest manufacturer, and that practically anything could be outsourced.

In the late 80s, it was abundantly clear that automation in factories was going to drastically reduce the ranks of people needed so all those high-school dropouts fuelling the economies through massive spending in places like Oshawa, Toronto, Brampton, and the like were likely in for a hard fall. Toss in the practice of off shoring, and the ranks of these spendoids were going to be further reduced. Clearly, they were going to be basically untrainable once they were laid off and they would likely never get another job of this type. Brad’s tale is really the same thing, just a bit higher up the food chain. Did you know that at one time, Westinghouse and others employed over 10,000 workers in what is now the Theatre district and Liberty Village in Toronto? Jobs were plentiful.

Since the 80s, DB pensions have pretty much vanished from the private sector. In Boomer, Bust, and Echo (Foote), it was made clear that shifting demographics meant that houses would become albatrosses once the boomers began to retire en masse.

By the way, anyone going into a trade today would be well advised to be proficient in several disciplines to maximize their usefulness. Simply put, highly skilled mill wrights and other trades are itching to come to Canada and being a plumber here is absolutely no guarantee that you will always have a job. An article in The Economist recently identified a host of occupations that could be automated including writing. No one is safe – No One.

#33 DreamingInTechnicolour on 05.11.14 at 6:53 pm

Welcome to Canada “the land of the hand-outs”. If there was less corporate welfare from employers to workers e.g. astronomical wages and benefits – there would be far more productivity in the workforce because when pushed to the wall, most people get busy. Sometimes just having a job is good enough. Cheapo interest rates have hurt all those who have worked hard all their lives and saved – the retired are subsidizing the spoiled younger generations – Can you imagine how much worse it could get ? There will be a day of reckoning – someday unless things change, the older generations will pull their deposits and put it into proper interest paying banks, wherever they may be located around the world – money moves around the globe in an instant with the click of a mouse. It is about respect – savers deserve much, much higher interest rates than what they get in Canada.

#34 Piccaso on 05.11.14 at 6:53 pm

#29 Londoner on 05.11.14 at 6:39 pm
Btw – if Brad’s good then he can go indy contracting as well and earn much more and without the politics.

Are you 56? — Garth

……………………………………………………………………….

I don’t want to admit age being a factor, but I know it’s a big reason for me not getting work.

#35 4 AM Sunrise on 05.11.14 at 6:54 pm

So what do you people think of the trend of people (doctors, teachers, IT professionals) going to the Middle East to be another country’s TFW?

#36 Old Man on 05.11.14 at 6:55 pm

#30 Vangrrl – movie needs an update as there are many articles on the web about rising costs in China are forcing US companies to move back home and they are.

#37 Herb on 05.11.14 at 7:01 pm

It gives me no Schadenfreude to say this, but it is nice to see Jim Stanford and Aggregator getting their due.

With the shit approaching the fan, where are our super Neandercon capitalists to tell us how the Great God Marketplace will fix our economic problems? Oh, there are no economic problems. Nice to know.

#38 Linda Mulligan on 05.11.14 at 7:05 pm

If Brad was laid off & his job filled by a younger worker, he might have a case against his former employer. Age discrimination if proved can be very costly. The problem is proving it. However, if the work Brad was doing is still being done, then he might be able to get a decent settlement. As for TFW, lots of people saying they are doing jobs that could easily be done by Canadians. Easy fix – just eliminate the clause that lets employers pay 15% less. Bet the ‘demand’ for TFW would drop like a rock & why is anyone surprised that companies are using TFW when they can score a 15% increase in profits by using them? Duh!

#39 Viewpoint on 05.11.14 at 7:05 pm

So when does he sue them? You can’t dump professionals like that and rehire. It does not work like that. I question the truth of this post.

Naive. — Garth

#40 Trojan House on 05.11.14 at 7:07 pm

#26 Dean Mason on 05.11.14 at 6:35 pm

Good points. Problem is, nobody ever blames the government, either federal, provincial, state, municipal, etc, for the economic problems we face. All these socialist governments around the world think they can borrow, borrow, borrow without ever paying anything back. Therefore, they want to continually raise taxes to pay for their spending habits until there is nothing left in your pocket.

And as #25 Bill Wilson Roadley points out, British PM Cameron wants to be able to raid people’s bank accounts so he can extract money you may or may not owe the government! Can you say Cyprus? A country can borrow beyond their means just like you or me. When that happens, they go bankrupt. But before that, they hunt for money. And that’s exactly what the British PM wants to do, not to mention Obama who’s real goal is to raise taxes in the US to 70%.

These corrupt governments are just killing the economy.

#41 Freedom55doesnotwork on 05.11.14 at 7:10 pm

#18 AfterTheHouseSold on 05.11.14 at 5:57 pm

There is also company like IBM getting rid of 100’s of senior people over a period of months that never seems to show up in the news. They know how to use the system!

#42 Retired Boomer - WI on 05.11.14 at 7:12 pm

So the Canuck economy is tanking? About time for it, what with your non-competitive world costs for the major cities.

It is quickly becoming a $20 an hour world here, and i suspect the same up north. $20 an hour is not much on which to buy a home, raise a family on, and that is assuming you have a decent set of perks to go with that.

Kind of sad to see it, really. In my game it paid well more than that, but that has come down in the last decade sad to say.

Some one asked me if I did any free lance work. I said I might, but my rate is $35 an hour 8 hr minimum including travel, and you buy overnight if needed and 3 squares a day. Actually a few offers, and i snag one on rare times when I am bored. Usually when they have screwed something up and need help to get it righted.

Choking labor demand is one way to hold wages at bay. It is very short-sighted as poorly paid labor make poor spending consumers (except for cheap credit). Other than a short term mortgage, and maybe a car, there is NO cheap credit these days.

Most consumers are quite stupid, as they finance depreciating assets, finance consumables, and worst of all a home in an over-bloated price market. Few try to live within their means these days.

I like the past posts of the Cat Food Lady, who obviously has her head screwed on straight. Nice to see. A few others here eschew debt, and have savings & investments, smart people. They will do OK no matter what the market, or future brings. For the vast herd, so called, I am not as sanguine these days. So many substitutions available for local labor, at local labor’s expected rates.

What do they call it? Interesting times?

#43 Globalization and then some on 05.11.14 at 7:13 pm

Look at the reporting from the largest Canadian-HQ public companies (finance, communications, resources) in 2012 and compare to let’s say 2007. Did their FTE / employee counts jump or at least inch up slightly? All looks well for our proud Canadian industry giants huh?

Then add up their mergers and acquisitions and expansions into markets outside Canada over that period. How many new countries do they now do business in?

Yes, the top Canadian exchange listed companies by revenues are growing their employee count, but not always with Canadian workers here at home. In so many cases it is at the expense of them as there is someone in another country doing the job of the individual who used to sit next to you, for half the cost, oh, and you get to train them.

But being in monopolized/protected/regulated industries, they keep raising their pricing here at home. And govt won’t let the big global guys to set up shop and hire and compete because then what would happen to our top “domestic employers”?

Death by a thousand little cuts. Small enough, but regular, so it doesn’t make it to front page news. Unless you are as inept as the PR department at RBC.

#44 Chris 2 on 05.11.14 at 7:14 pm

This lay-off scene happened to a friend of ours who also worked in IT. The entire floor lost their jobs in a day. It took our friend 5 months to find a job in a retail store at a much reduced rate of pay.

He used to work 1 or 2 days from home. I hear of other people doing this and I shudder. I understand the luxury of being able to work this way but remember — if your employer sees that your work can be done from your home in Canada why not go the extra step and outsource it to another country with cheaper wages, etc.

My advice — be visible! Go into the office every day. Don’t let your employer see how easy it is to have the same work accomplished off-site. May not help, but you can try.

#45 Smoking Man on 05.11.14 at 7:19 pm

#29 Londoner on 05.11.14 at 6:39 pm

Btw – if Brad’s good then he can go indy contracting as well and earn much more and without the politics.

Are you 56? — Garth
……..

Almost 56, and altho my writing needs a bit more work, code Smithing is at prime….

15 years ago, what took a month to build can now be done in 1/2 a day…..

Programming, real programing can’t be done by everyone who takes a programing course…

Typical shop has a go to guy… Everyone else along for the ride.

That’s why I can easily have about 6 clients going at the
same time.

What’s truly Bazar.. I tought myself.

In the early 90s no quick books. No accpac… No crm,

My company was fully automated, first in Lotus, then excel, the VB

Where I missed the boat back then, I should have been peddling my software, rather than building materials.

#46 DaleFromCalgary on 05.11.14 at 7:23 pm

#1 – Timmy.
Don’t blame the Tories for outsourcing or automation. Employers can do without $25/hr workers who book off sick regularly and expect defined-benefit pensions as a right.

Even those factories that are coming back to North America are not your father’s assembly line. They are highly roboticized and only need 100 mechanics and technicians instead of 5,000 Grade 9 dropouts. Warehouses are also being automated by robots. Restaurants in the USA such as Applebys are replacing waiters with touch screens at the tables. Fast food outlets are introducing behind-the-counter machines to provide better quality control instead of some guy flipping the burgers on a grill.

Nobody is indispensible. If you think you are, visit the nearest cemetary and look at all the people we get along fine without.

#47 Dean Mason on 05.11.14 at 7:23 pm

The 56 year old that was making $102,000 a year and does not have decent amounts in RRSP’s, TFSA’s, investments, savings etc.

He was not a good steward, decision maker of his and his family’s money, if this is applicable in this case and now he has to learn the hard way to live within his, their means.

I know people that make 75% of that income combined as a family and have no debts, a $350,000 house paid off and have at least $500,000 in RRSP’s, TFSA’s, investments, savings etc.

They are only 47 and 48 years old and not 56 years old like in this example.

#48 just some guy on 05.11.14 at 7:31 pm

If people want jobs they have to stop treating employers as second class citizens.

#49 AK on 05.11.14 at 7:34 pm

“He lost his job last week, after 14 years in IT with the same big company. Gone is the salaried position worth $102,000 and a DC pension.”
====================================
Brad will not have a problem finding another job. But not for $102K.

He will have to settle for $70K. It is, what it is…

#50 Mr. BigStuff on 05.11.14 at 7:35 pm

With deflation on the way, I’ll invest in long-term bonds. Just seems right given the environment we live in now

#51 Dean Mason on 05.11.14 at 7:37 pm

Anyone that has more than 20% to 25% in physical real estate by the time they retire or near retire are financially vulnerable to economic downturns, shocks, electricity, gas, water, property taxes, insurance, maintenance and repairs, H.S.T on almost everything etc.

People can carry cheap 2.85% to 3.50% lines of credit, mortgages etc. in retirement but payments are still due every month making the above financial problems worse.

Clueless!

#52 sciencemonkey on 05.11.14 at 7:39 pm

Couples consisting of 2 scientists have the 2 body problem, so named jokingly after the 3 body problem.

http://en.m.wikipedia.org/wiki/Three-body_problem

The 2 body problem is where 2 scientists in a relationship, where each have their own specialty, cannot find work in the same city. I fear this will even start to apply to non scientists. If she is an accountant and can only find work in Halifax, and he is a mech eng who can only find work in Calgary, how can anyone be in a relationship?

#53 Smoking Man on 05.11.14 at 7:39 pm

Programmers good ones are job killers…

Just last week took a small project on, automated a report, this poor girl who typically works 12 hour days can now go home after 9 hours…

I turned a process that was tedious, prone to error, and required 3 hours to complete… It now runs in under 3 seconds… Compound that with the thousands of apps I’ve build… Do kind of the same thing…

I’m a serial job killer…

And as far as the off shore competition, ha 90%, purchased their obedience certificate….

Only met one that was any good.. That was in Charlotte..

Now the better ones are Russian, and Chinese..

However business usually get sucked in with the lower rate, igate types.

Wow cheap rate, never realizing that till they meet some one like me, it takes the igaters 10 times longer with errors gallore..

I make the most money on flat rate projects, when the offshore calc the hours. I just match..

I build a monster program, competition said 2 guys, 2 years..
I got the gig, finished it in Three months, then deliverd over the two years. Had I just went here you go..

They would have felt ripped of… Especially when my second guys was me…

#54 Old Man on 05.11.14 at 7:41 pm

#4 zee – It was obvious to me that Caesar had one of his paid trolls on the attack, and zee what is the going rate now? The Reformist Party under Caesar has about 1,400 from the youth movement on the payroll.

#55 Piccaso on 05.11.14 at 7:49 pm

#42 Dean Mason on 05.11.14 at 7:23 pm
The 56 year old that was making $102,000 a year and does not have decent amounts in RRSP’s, TFSA’s, investments, savings etc.
………………………………………………………………………….

You want the honest truth, I got divorced 10 years ago and had to sell and never bought another one. I hit the road with my suitcase and child support payments and didn’t want to look back.

If I would have still had that house it would be worth twice as much now and cashing that in would have been my retirement.

#56 What does this mean for the months and years ahead? on 05.11.14 at 7:51 pm

EASY.
2 Million for SFH in toronto by 2018 and 2.2 million for SFH in vancouver by the same time !

#57 Mike T. on 05.11.14 at 7:53 pm

#24 Hawk on 05.11.14 at 6:22 pm

RE: Canadian corporate tax

it’s pretty much what you think…

http://www.cbc.ca/news/corporate-tax-avoidance-scheme-hurting-canada-expert-says-1.2572712

and

http://www.cbc.ca/news/business/how-canada-s-banks-help-money-move-in-and-out-of-tax-havens-1.1384336

it’s public knowledge – I think if you average it out corporate tax rates are about 17%

#58 Mister Obvious on 05.11.14 at 7:58 pm

Interesting statistic: One RE agent for every 140 people over the age of 19 in the GTA.

In theory if EVERY agent were making a halfway decent living, say $85K per year, he or she would need to split commission on a least one substantial sale per month.

In a world where every agent in the GTA made even a modest living it would have to come from the pockets of only 140 people (at $85K per annum about $607 per person)

Of a random sampling of 140 Greater Torontonians how many are even selling a property this year? One or maybe two?

My guess is that a large proportion of agents must be doing something else to make ends meet.

#59 Moi on 05.11.14 at 7:59 pm

Wow cheap rate, never realizing that till they meet some one like me, it takes the igaters 10 times longer with errors gallore..

Oh, they know the quality of i is less than c, they just don’t care.

#60 High Plains Drifter on 05.11.14 at 8:04 pm

Yes indeed, they will have a darn good reason to throw you under the bus and out you go. Never to be heard from again unless Garth Turner gives you a bit of space. Thats where Mr. Turners advice is strongest, the part about taking long term measures against that out in the street feeling. Long term did not work for me so I compressed my efforts by leverage but that is an obviously stretched strategy today. Still, my big bet stands with my digs here in Alberta and God willing and the crick don”t rise we will be in The greatest city in Canada, Toronto, Ontario, one day, sooner than later.

#61 Nemesis on 05.11.14 at 8:07 pm

“In a single decade the number of real estate agents has doubled.” – HonGT

Frightening. Isn’t it.

Never mind, AuldPol… I am reliably informed that, well…

Let’s put it this way, if you thought TRex was stoked when he ate the attorney:

http://youtu.be/wXTAAYhZhIA

Just wait till you see how Godzilla handles a veritable Smörgåsbord of [redacted]™!…

http://youtu.be/vIu85WQTPRc

[NoteToSaltyDogz: Brought to you by the VerySamePeople who’ve learned a thing or two about RealEstate over the years. PoorMitsubishi: http://www.nytimes.com/1995/09/12/business/japanese-scrap-2-billion-stake-in-rockefeller.html ]

#62 Freedom First on 05.11.14 at 8:15 pm

Excellent post Garth. Nothing but the truth, as always. I know there is many people who read your blog and have learned much. Your help is admired and appreciated by me and the countless others who use your sage financial advice, as proven by the many people who have written on your blog comments to give a big thank you for your help in saving their financial life.

Your blog is a financial oasis in a worldwide desert of financially insane illiterates intent on bankruptcy. Sad.

#63 Dean Mason on 05.11.14 at 8:17 pm

I know in life things happen like divorce but the problem is a house is not an investment especially for retirement.

It is an asset that can be worth more or less in value with many expenses, taxes, fees etc. attached.

If Canada’s economy went differently like Japan were their real estate market is minimum 60% cheaper than 25 years ago, it would not help Canadian retirees to sell their homes for a profit.

#64 Smoking Man on 05.11.14 at 8:22 pm

Reading your post via the clarity of sobriety, it occurs to me Gatho..

You could never post something like that on MSM paper…

The advertisers in the RE industry what make your life a living hell.

#65 Daisy Mae on 05.11.14 at 8:24 pm

“…there’s now one for every 245 Canadians, and in the GTA one for every 140 people over the age of 19. In a single decade the number of real estate agents has doubled.”

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

All looking for easy money. Of course, this is backfiring. But c’est la vie…

#66 Inglorious Investor on 05.11.14 at 8:30 pm

For years economists, analysts and investors have been debating whether we will have deflation or inflation. How about inflation, then deflation? Or deflation, then inflation? Or both at the same time?

What I want the average person to understand is that whether we are technically in a state of inflation or deflation (which, by the way, depends on how your define those terms), the average person’s cost of living is going up.

And to the average person, that’s all that really matters.

During the early years of the Great Depression of the 1930s, deflation was severe. So, did that mean that people could afford more things because the dollar was rising in value? If you can’t find a Depression era person to ask, just ask a European today, as Europe is likely in deflation and the euro is rising in value. The answer would be no, things are no more affordable, because even IF the price of a good drops, far fewer people actually have enough money to pay for it.

In 2008, during the latest deflationary episode in North America, any brief price deflation in goods and real estate was offset by less available money as people lost their jobs and salaries were cut. That’s why prices drop, because there are fewer dollars chasing the same goods, and that’s why the value of money increases during a deflation.

But deflation does not make things more affordable, unless you have lots of cash to buy assets at their deflated prices. In today’s economy, that’s fewer and fewer of us. I personally would love a severe deflation because I have some cash I would love to put toward undervalued assets. But for most of us, deflation just means less money.

Inflation, as most of us here know, erodes the purchasing power of money, so you can have more money, but it buys less.

Much of the inflationary pressure today is coming from over-indebted governments with unrealistic financial obligations. As a society we have simply spent too much of our future real wealth on present goods. The bill must be paid in some way. One way it will be paid is by governments going after everything they can get. Higher taxes. More taxes. Higher penalties. More penalties. Bail outs. Bail ins. Confiscation. Etc, etc… Wait and see. It will be downright oppressive, if it isn’t already.

Despite what the Keynesians may believe, there is no free lunch. You cannot stimulate real economic growth by creating more currency units that are really just a means of exchanging real goods and services. You need to actually increase the real wealth.

Don’t look at GDP…

GDP is mainly a measure of spending, not of wealth creation. GDP does not distinguish between spending based on real growth in wealth, and spending based on more debt issuance. Deflating GDP with the CPI is a sham because CPI is a sham.

I can spend a million dollars of borrowed money and that will boost GDP, but it won’t actually grow the economy on a net basis, because without more wealth backing up the million dollars (rather than just more debt) that million actually drains resources from the economy. All it really does is shift spending from tomorrow to today, while adding the extra burden of interest to further drain future income.

Inflation? Deflation? Does it really matter? To the average person, no, because in either circumstance living costs more in real terms.

Get ready.

#67 Jimers on 05.11.14 at 8:32 pm

After looking at a Cisco webinar last month it would seem they think they can replace the public school system with about 300 teachers, the internet and a pile of babysitters.

#68 Obvious Truth on 05.11.14 at 8:32 pm

Brad could join the 17 000 self employed. Without tham the number would be horrific.

They won’t be buying houses though.

#69 Inglorious Investor on 05.11.14 at 8:35 pm

#68 Jimers on 05.11.14 at 8:32 pm

I have two kids in the public school system. Today, teachers, as a group, are adding less and less value to education. It technology allows greater access to education/knowledge with fewer teachers and schools to pay for, I’m all for it.

#70 Daisy Mae on 05.11.14 at 8:36 pm

#1 Timmy:”at’s our neo-con government, selling us out and offshoring all of the good paying jobs, just like they did in the States.”

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

Our present government is incapable of thinking for themselves. And they don’t give a damn about Canadians. So, here we are…

#71 sheane wallace on 05.11.14 at 8:43 pm

We are becoming increasingly unattractive to top talent.
Everything is about cost cutting, looking for cheaper labour. In short term it looks great as executives make fat bonuses. In short to mid term it will have horrendous consequences. There would be more and more projects failing and finally companies will start going down as the cost of running business and investment in quality workers is not recognized for it’s value any more.

The 27 years old guy looks fantastic on paper however almost certainly with no business or sufficient technical knowledge.

There are many people on the market but very few of sufficient quality.

If Brad has any marketable skills he should move to the states.

#72 The True Sign of an Idiot on 05.11.14 at 8:44 pm

Anyone who says “immigration” will keep prices going higher…..

#73 Arfmooocat on 05.11.14 at 8:46 pm

If the big D happens and your now making child support payments, you can’t afford a house.

Your a renter for a long time and now priced out of the real estate market, never to return.

#74 Inglorious Investor on 05.11.14 at 8:46 pm

So I discovered a hole near the base of a wall in my home. When I peaked inside this hole with a flashlight I found a nest of Realtors®.

Why is the Realter®-to-real person ratio so high? Barriers to entry. Just about anybody with a pulse and a few scraps of gray matter can be a Realtor® these days.

The really goods ones? That a different matter. I know a few. But the riff raff, the crooks, and the charlatans (of which there is an abundance, just look inside your walls) are damaging the rep of this “profession” as a whole.

#75 Jackofall on 05.11.14 at 8:47 pm

Wow Garth, it’s like you were reading my mind. The other day I was in my building’s elevator and overheard a couple of kids talking about housing. Not normally one to drop eaves but for this subject I made an exception. Turns out they were agents talking about a deal (that was not going well, coincidentally). They couldn’t have been over 21 years old. Craziness! You know it’s trouble ahead when the university drop-outs are flogging houses.

#76 waiting on 05.11.14 at 8:48 pm

Sorry you lost your job Brad. I did too a couple of years ago as did many of my colleagues (small mining company). I’m 56 as is another extremely well-qualified colleague. I sold my house at the time so have not had the extra stress of how to pay the bills, but my colleague is living totally off credit and is planning to declare bankruptcy. We’re both seeing that at this age, it doesn’t matter about the qualifications – you don’t get called back or even acknowledged about job applications.
I got a call from a good friend in Ontario last week. (I’m in Vancouver.) She just found out that her 20 plus year job in research at a major university is ending. She also is seeing a number of people in other departments being laid off although there is work. Their ages – you guessed it – mid to late fifties. All with pensions and higher salaries, all to probably be replaced … She’s getting her house ready to list and said she’ll take any kind of work like retail etc. She’s been very frugal and luckily has savings, but being punted after decades of hard work sucks.
You might want to consider selling your house before the tidal wave of boomers joins you. Anyway, good luck.

#77 sheane wallace on 05.11.14 at 8:57 pm

#74 waiting

It is good lesson on what one’s commitment to a corporation should be: zero, nil, zilch.

Workers are mostly seen as an expense, replaceable and disposable instead of an asset.

Working with dignity and commitment these days is like digging faster your own grave.

#78 Andrew Woburn on 05.11.14 at 9:00 pm

#204 Aggregator on 05.11.14 at 1:42 pm
#196 Shawn – Loan losses need to be and have been low.

Loan losses have been low because regulators are not forcing banks to write down impaired loans. Chart
=====================================

Just got a chance to look at the above chart. As a former auditor I am gobsmacked by the implications. I am taking at face value that it was in fact generated by OSFI.

What it seems to say is that in 2008 the chartered banks had non-business customers who were behind in payments on debts of $1.5 billion and the banks wrote down these debts by $1 billion to provide for the amount they estimated they would never collect. That would be normal practice.

In December 2013, the non-performing loan balances had risen to $3.5 billion but essentially nothing was written down at all. If we assume that the 2008 write down rate was reasonable based on experience, this suggests the 2013 amounts should have been written down by at least $2.5 billion. If this is true, it would mean the banks have overstated their capital and their cumulative net income by the same amount.

Booking the correct amount for loan losses is primarily the responsibility of the board of directors on the advice of senior management. One would expect the auditors to examine this provision and withhold their audit certification if it were found to be materially inadequate. One also assumes the whole point of OSFI’s existence is to stop financial corporations from gaming their numbers. Lastly I assume that seriously understated loan loss provisions would be a material misstatement in the financial statements and grounds for the securities commission to cease trade a public company.

Either I am very mistaken about this chart or our regulatory system simply isn’t working anymore. I get that politicians lie but if our regulators and auditors are complicit or submissive, who is left to trust. I assume that these virtually non-existent loan loss provisions were reflected in the banks’ financial statements. One of the key points that auditors certify is that accounting principles have been applied consistently from year to year. Really? Even worse, this chart only covers non-business loans.

#79 LB on 05.11.14 at 9:00 pm

@AfterTheHouseSold

You forgot:

SHAW Cable at 400 layoffs
UNITED Airlines (Canadian Operations) at 240 layoffs
Quality Meats in Toronto at potentially 700 layoffs

2014 should be a bright year!

#80 bobnbmore on 05.11.14 at 9:11 pm

re: Workers in Baltimore, Atlanta, Manila or Mumbai are far less demanding.

and you can get a fully renovated top to bottom 1600 sq ft home in the City for 199K, unrenovated for 150K, a townhouse for 110K

#81 MrGotham on 05.11.14 at 9:13 pm

Check out the post bust realtor count in California:

http://www.calculatedriskblog.com/2012/05/real-estate-agent-bust.html

#82 joblo on 05.11.14 at 9:14 pm

Looks like i’ll be livin in a trailer down by the river eatin guberment cheese. OHHH Kanada!
Refoooooooorm

#83 will on 05.11.14 at 9:15 pm

to #37 Herb “the shit approaching the fan”

LMAO. I’ve heard the shit hit the fan, the proverbial shit hit the fan, and the proverbial shit hit the proverbial fan. But this is the first I’ve heard about the shit APPROACHING the fan. Nice one herb. LOLOL.

#84 chopper on 05.11.14 at 9:21 pm

You are 100% correct on the way things are in Canada right now, many will look back one day and say, remember what Garth was saying.
The powers that control the economy would like to keep the masses in the dark but some of us can see the reality of the situation. We are heading for hard times because this economy in built on a sandy foundation.

#85 Smoking Man on 05.11.14 at 9:23 pm

#68 Jimers on 05.11.14 at 8:32 pm

After looking at a Cisco webinar last month it would seem they think they can replace the public school system with about 300 teachers, the internet and a pile of babysitters.
……..

That’s all it would take….. Through them all under the bus..

Teachers are redundant now… They do more harm than good, but to schooled to even see it.

First country that addops the Internet method of teaching will lead the world after on generation..

Imagen a population that can think. Mind you that would be horrible for the real estate market..

#86 Popeye the sailor man on 05.11.14 at 9:29 pm

In my last two trips at sea in the Coast Guard, I have come across 2 deck hands that have recently quit or supplementing there income after being Realtors.

Looks like that graph is starting to take a dip.

#87 Willy h on 05.11.14 at 9:29 pm

Ontario, in particular, cannot compete with jurisdictions south of the border when the workers are 30% cheaper, housing is over 60% cheaper and the CAD$ remains strong. Relatively speaking workers in US jurisdictions (that offer up attractive tax rates for business to boot) are better off than those in the GTA. Their standard of living is actually better despite dramatically lower wages and benefits. Are global investers really enamoured with the GTA, it’s sprawling soulless suburbs, it’s world-class gridlock and housing that is more expensive than most real estate in the South of France!

#88 Nemesis on 05.11.14 at 9:37 pm

#WKRP #AnHomageToGabledBillsEveryWhere

http://youtu.be/zgrVP_J0BHk

#BonusZen #Loni #SmokingManIsForbiddenToWatchThis

http://youtu.be/UGBVO_-BZhk

[NoteToGT: On the BrighterSide… some things haven’t changed.]

#89 Shawn on 05.11.14 at 9:39 pm

The Value of Work Done versus its Cost

It’s interesting to think about the fact that in some jobs there is absolutely no connection between the fee charges or the hourly pay rate and the value of what is produced.

What is the value of say $5000 worth of investing advice?

The value surely depends upon amount the person paying the fee has to invest.

If the advice is good it could be worth many multiples of the fee paid. If the advice is bad it could have a negative value of many times the fee paid.

The same might apply to certain advice from a doctor or a lawyer.

IT people can be worth their pay or can ruin a company if they flounder on a mission critical project.

What about engineers and architects is there any link between pay and the value created?

The lack of a link between hourly pay and the value created is surely a factor in how many newer businesses think about how many people to employ.

#90 young & foolish on 05.11.14 at 9:40 pm

I wonder how many financial advisers there are per 100 Canadians. Our RE market may be bloated, but so are the equity markets.

Is a well situated income generating building in a major city any less risky than a well balanced liquid portfolio?

The basic premise of this blog seems to be that financial assets will hum along generating 7% while housing is bound to disappoint, if not tank. As if all those millions of people will not need a place to live.

Actually a premise of this blog is that silly people putting too much wealth in one asset because of greed, ignorance or myopia are taking on inordinate risk, no matter what their choice. — Garth

#91 Lorene Harper on 05.11.14 at 9:43 pm

No, not the PM’s wife – first name spelt differently. Husband’s name Norm Petersen…a celebrity couple NOT. I’m a fairly new DIY investor, and I’m getting scared. Canadian and American Equities ETF’s. Sell in May (just because it rhymes) or in June, and go away. Buy what? Bond etf’s? CBO?

#92 Muttley O'Toole on 05.11.14 at 9:46 pm

A very good post and good comments.
So, reading between the lines and extrapolating the job losses is anyone in any doubt that world wide the middle class is shrinking at an alarming rate?
What happens when we are just two classes, the rich and the poor with the poor making up say, 90% of citizens?
Has our governing system been corrupted to this extent by the powerful and politicians, with Washington leading the way?
Yes, galloping real estate , when it explodes will be the nail in the coffin.
Am I a sad pessimist ?
Perhaps, but IMHO the day after tomorrow looks pretty frightening.

#93 stop lying on 05.11.14 at 10:04 pm

Brad must suck at IT because the only contractor you can find for 70k a year would be a turd.

I’ve decided if people really want a crash they should keep voting NDP/Liberal. They are going to ruin Ontario’s books for generations and when interest rates do rise they’re going to have to cut jobs just to pay the debt they’re racking up, nevermind services.

#94 Timmy on 05.11.14 at 10:18 pm

DaleFromCalgary

You’re missing the point. Governments can do something about how corporations outsource their labor and pay taxes in other jurisdictions. Of course automation is increasing, but at some point, society has to decide if they want to keep people working, and they can use policy to do so.

#95 For those about to flop... on 05.11.14 at 10:29 pm

Vancouver has the warmest winter of the major cities ,but it also has the coldest people.

#96 ss on 05.11.14 at 10:31 pm

Garth, would you balanced portfolio behave the way it is supposed to be in an age both bonds and equity go up at the same time? I understand historically they behave the opposite. Just hope they are not going down at the same time!

#97 Ralph Cramdown on 05.11.14 at 10:32 pm

In the matter of:

Anecdote v. Data

When it comes to employment, anecdote can often cloud data. Companies often tend to hire people gradually, preferring first to assign overtime or hire temp workers before damand is proven enduring. But when things go bad, they tend to fire a lot of people all at once. So even in good times, there’s probably five announcements of big layoffs for every one of a big mass hiring. And much up- and downsizing is one position at a time, creating a new one, not filling a vacant one, or eliminating one. Government employment data (and private sector payroll data in the US from e.g. ADP) are more accurate, but the surveys involve a margin of error, lag, and bounce around a bit.

Don’t try to build a story around a series of anecdotes that the data doesn’t support. I see an anaemic but continuing employment recovery in the US, and a sideways trend in Canada. Tune in next month to see if trends hold, and whether the market likes them.

#98 barking mad on 05.11.14 at 10:32 pm

And yet…the real engine of the Canadian economy is being shuttered by green left civil servants and others who live off the tit of the Canadian taxation system. Don’t get it? You might have been one of thousands to protest the oil business in Canada. So how will 20% of the population working for the civil service be paid without the trillions of dollars they’re trying to choke off?

Ontario used to be the ‘engine’ of Canada…..it is now a welfare state…figure it out. 100% taxation is just around the corner….enjoy.

#99 Cici on 05.11.14 at 10:34 pm

#2 Robbie

Asshole comment.
He who laughs first, laughs last.

Enjoy the parking spot while you have it.

#100 Spaccone on 05.11.14 at 10:35 pm

These have mostly treated me well but realizing that I maybe have way too much Canadian content (not too much method to my holdings here):
XDV – 6.6%
XIU – 38.4%
XRE – 21.3%
XMD (CAD content that’s not on TSX60) – 6.2%
XEM/CBQ – 13.6%
XEF (EAFE) – 7.9%
XSP – 1.4%
Miners/Junior Gold/Materials (partly recent acquisitions…regretful purchases and regretfully dead money) – 3.9%

#101 TurnerNation on 05.11.14 at 10:38 pm

Canadians are own worst enemy. I’m not a rightee but all these leftees massively protesting pipelines and their economic benefits?

You mean those same pipelines over which gas for your car, heat for your home is delivered? Yeah those.

Bet they would have protested the first trans-Canadian railway. (Think of the noise, the soot, the clattering!).

Embarassment to be a part of this has-been 2nd world country. Stick a fork in it. Service jobs for all.

#102 Mean Gene on 05.11.14 at 10:45 pm

It sounds like “Freedom 55” or 56 isn’t turning out as advertised, that sucks.

#103 Bicycle Communist on 05.11.14 at 10:48 pm

Toronto Mayor – there’s one job needs to be lost.

#104 randman on 05.11.14 at 10:49 pm

“And as #25 Bill Wilson Roadley points out, British PM Cameron wants to be able to raid people’s bank accounts so he can extract money you may or may not owe the government! Can you say Cyprus? A country can borrow beyond their means just like you or me. When that happens, they go bankrupt. But before that, they hunt for money. And that’s exactly what the British PM wants to do, not to mention Obama who’s real goal is to raise taxes in the US to 70%.”

I keep warning about this….but someone’s not listening..!!

#105 45north on 05.11.14 at 11:07 pm

Andrew Woburn : from yesterday: Why Was Canada Exempt from the Financial Crisis?

thanks for the link, you have raised the bar here Andrew

JSS : I’ve been downsized in the past, learned from it, never forgot what it’s like.

thanks for your post JSS

#106 Longterm on 05.11.14 at 11:09 pm

Surely getting laid off at 56 is a godsend. Take the gift and retire and go do something else paid or not that interests you, unless of course you’ve not bothered to save, invest and build up a portolio and blew your baby boomer advantage of riding the front end of the greatest economic boom in history and chose to buy crap instead.

People are far too obsessed with ‘productivity’ and the apparent sin of idlness, meaning getting off the hamster wheel or even realizing you are on it.

Life isn’t for wasting at work. Understand the differences between needs and wants. Cut your costs, favour rich experience, free time, learning and physical activity over a life wasted in the office to buy crap you don’t need. Save half your income when you must work and aim to build a portfolio that throws off enough income to cut the ties that bind. The lower you get your costs, the quicker you are out of the gate and living the life those in the plate glass cages chained to innane material possessions can only dream about living when they are 65 and time has passed them by.

#107 Sebee on 05.11.14 at 11:10 pm

Garth,

Solution of many economies after GFC when borrowing collapsed was to restart it ASAP and have us borrow more. We obliged. What happens when we won’t be able to?

#108 Dean Mason on 05.11.14 at 11:19 pm

Australian government is likely going to cut 17,000 public sector jobs choosing from 70 different government agencies.

This was just reported by Bloomberg.

It is AUSTRALIAN AUSTERITY STYLE, DOWN UNDER!

#109 Doug in London on 05.11.14 at 11:23 pm

I’m missing something here. While it’s good that the 27 year old worker can find a job in a time when unemployment among younger people is frustratingly high, why would anyone not want to hire an experienced person like Brad? Being older, he’s probably accumulated wealth and got his debts paid off over the years (hard not to when you’ve been making 102 grand for many years) and could probably get by on less than a younger person starting out. For that reason he would likely be willing to accept a lower salary and, with all that experience be good value to an employer. Why don’t more employers, with their age prejudice, understand that idea?

#110 Uh Oh Canada on 05.11.14 at 11:23 pm

I feel bad for Brad and the others poor fired middle age workers. However, if I may lend one word of advice- I suggest self-employment. Off the top of my head I can think of 3 successful businesses owned by a 49, 75, and 65 years old. The 75 and 65 years are not working so much for money, but because they don’t want to be idle.

We just sold our truck to a middle aged guy who wants to drive his motorcycle around. What does he do for work? You guessed it, he’s self employed. As someone who is self-employed and surrounded by others who are self-employed, may I say there is no better way to work. However, if you do go this route, stay away from retail.

#111 Retired Boomer - WI on 05.11.14 at 11:25 pm

105# RANDMAN

Yes, let us raise taxes in the US to a max of 92% -just like in the prosperous 50’s- just for shits & giggles. Back then repaid savers TO save, we reduced our debts’
and all seemingly lived just fine!

Why stop at 70%??

I don’t even pay the percent I paid 13 years ago – but I have raised my income and asset base by over 350%. Not bad work if you can get it, right?

Taxes…merely the tolls on the road to a fantastic life

#112 Dean Mason on 05.11.14 at 11:25 pm

Also, the Australian government could introduce a debt levy of 1% imposed on incomes above A$ 80,000.

It is supposed to be a temporary measure. Remember the income tax in Canada was supposed to be temporary.

We all know how that turned out.

#113 Lynn on 05.11.14 at 11:31 pm

Went to few open houses today in Burnaby. The single houses are all at 1.2 million to 1.3 million. They all rely on the mortgage helpers. Even one house has 3 rental units, 2 on 1st floor, one at back lane storage room. Only one ham house asks 999K, but the realtor said the buyer cannot get it by the asking price, should pay 1.15 to 1.2 million, try to create a bidding war, accept offer tomorrow. I don’t see the fundamental for this market….It’s so disgusting….

#114 Hawk on 05.11.14 at 11:32 pm

#58 Mike T. on 05.11.14 at 7:53 pm

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

Thanks those examples prove my point. We have corporate welfare in N. America and it should end now.

No corporation should be allowed to do business in Canada unless it pays taxes on all sales / business done in Canada.

#115 Doug in London on 05.11.14 at 11:33 pm

@Longterm, post #107:
Great post, couldn’t agree more. If more people followed your advice they would not only enjoy their own lives more, but if they don’t re-enter the work force they would free up more jobs for younger people. That would be a win-win situation for everyone.

#116 Opinated on 05.12.14 at 12:13 am

41 Freedom55doesnotwork on 05.11.14 at 7:10 pm
#18 AfterTheHouseSold on 05.11.14 at 5:57 pm

There is also company like IBM getting rid of 100′s of senior people over a period of months that never seems to show up in the news. They know how to use the system!…

Very true. A friend of mine @ IBM had his senior manager boss lay off. Position is gone. New boss is now a manager in higher position who is now supervising way more people than before. Sadly my friend now have barely time to meet and coordinate operations with his boss. As per the nature of my friends job, this is unusual and greatly increases job risk

#117 Jon B on 05.12.14 at 12:28 am

Driving around Van on a nice day today. Luxury brand cars were littering the streets lined with highly over-valued real estate. Evidence of wealth seems to be everywhere. Is this city one grand illusion or do I really live in the Dubai of Canada? Obviously I don’t get it.

#118 Setting the Record Straight on 05.12.14 at 12:43 am

@71
“#1 Timmy:”at’s our neo-con government, selling us out and offshoring all of the good paying jobs, just like they did in the States.”

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

Our present government is incapable of thinking for themselves. And they don’t give a damn about Canadians. So, here we are…”

People seem to think changing the politicians/parties will alter the world. Magical thinking!

‘if voting mattered they would make it illegal’

#119 Jon on 05.12.14 at 12:44 am

How much severance did Brad get?

Likely more than I. Comparable salary, recently displaced by foreign worker in tech. Any suggestions on recourse?

Brad, enjoy your pogey vacation while it lasts, don’t forget to draw down the rrsps.

#120 KommyKim on 05.12.14 at 12:54 am

RE: #25 Bill Wilson Roadley on 05.11.14 at 6:24 pm
Greater Fools,
With the Brits under pressure to raise taxes or raid bank accounts, could the same thing happen here in Canada?

Did you actually READ the article? A person’s bank account would only be “raided” if that person owed more than £1,000 in back taxes and only if there was £5,000 or more in the account.

#121 Nemesis on 05.12.14 at 1:00 am

#Jon. #Conrack. #HomeWorkForSmokingMan. #Assessment: CapableButMustTryHarder.

http://youtu.be/1ogoVSAT4Ew

#122 Flawed on 05.12.14 at 2:07 am

I wonder what the working poor public is going to say when Mr Harper announces they have to raise taxes for the hundreds of billions of dollars of under funded pensions for public servants. Anyone for a cocktail of the Molotov variety? Yikes !!

#123 winterpeg on 05.12.14 at 2:11 am

# 107 Longterm
People are far too obsessed with ‘productivity’ and the apparent sin of idleness,…..Cut your costs, favour rich experience, free time, learning and physical activity over a life wasted in the office to buy crap you don’t need.

Well said Longterm. I’m pasting that on my fridge. (I’m 55.) I’ll still work a little while longer as I enjoy my job. I’m in Health care. Jobs still good in that field; hopefully not too many layoffs. I’ve saved, but could always have saved more. Debt free at least.

#124 Londoner on 05.12.14 at 3:15 am

Unemployment is not rampant, and five years is a long time. Only the naive would count on continued low rates which have encouraged excessive debt and exacerbated our problems. — Garth

I agree, 5 years is a long time, which is why I think it’s too early to tell where rates will be in 5 years. They may even go lower before they start to rise again. However you seem to be convinced that they will be higher by then. Can you tell us what you think the rest of the economic picture will look like in this prediction (I.e. In terms of unemployment, wage growth and inflation)? Just wondering how your forecasting model is tracking the other variables that affect rates.

#125 Londoner on 05.12.14 at 3:20 am

Are you 56? — Garth

No, but I don’t think age is the issue. That much experience will be valuable to someone. It all comes down to self confidence and how he can sell himself. Like I said, if he’s good…

#126 Tony on 05.12.14 at 3:28 am

Brad has already worked past the age of retirement. This is Canada not Hong Kong. This country will take all of Brad’s money if he gets another job at his advanced age. Brad should work out tax strategies and come up with another plan.

#127 jane24 on 05.12.14 at 3:50 am

Oxford University published a study a few months back that predicted that something like 40% of current jobs would be lost to automation in the next 2 decades.

Ensure that your children enter fields that cannot be easily out-sourced or automated. Hubby is a barber and as he points out you can’t get a computer to cut your hair or pop to India to have it done. So at 63 his customers queue out of the door for his services.

I on the other hand am a university professor with 4 degrees including a PhD and it would be very easy for someone in India to give my lectures worldwide over the net.

Makes you think.

#128 Zorik on 05.12.14 at 4:55 am

I work for oil gas consulting company.
Just recently heard from management
Level company is planing cut 300 people by end of year.
First 100 must go this summer next 200 during winter season. I heard other consulting companies cutting people too.
It is going worse every month. Garth prediction
Will come true soon unless government will not push for Keystone pipeline or some major projects.
I have couples friends already moved out from Canada due to job losses and not able find a job during 6-8 month.
Worse still to come

#129 trackpants on 05.12.14 at 6:28 am

They told us in my consulting world at one of those “get a free lunch” listen to the “economist”
– Job losses will continue to pile up
– Ontario is a mess
– Nobody has money
– When Tim’s and McDs are having a bad quarter “here comes the storm”

The free lunch was good. Don’t trust the croissants at those things…the look good but are dry and boring.

I agree with GarthDog.

Won’t take long for companies to move down south…
Printers
Dye Cutting

OUT of CanadaSource is on the way

#130 pbrasseur on 05.12.14 at 7:51 am

Don’t try to build a story around a series of anecdotes that the data doesn’t support. Ralph Cramdown

Really?

There is nothing anectotal about the unemployment trend shown by StatsCan.

Nothing anecdotal about the fact that our two biggest provinces are in a deep hole and those particular “economic engines” will slow to a crawl. And several other provinces are not doing much better.

Economic growth in Canada has been a credit mirage for years, this is not anecdotal, it’s a documented fact. Without credit growing faster than incomes, no growth, period.

And it can’t last. We are losing jobs and will lose many more.

#131 Smoking Man on 05.12.14 at 7:52 am

#128 jane24 on 05.12.14 at 3:50 amOxford University published a study a few months back that predicted that something like 40% of current jobs would be lost to automation in the next 2 decades.

Ensure that your children enter fields that cannot be easily out-sourced or automated. Hubby is a barber and as he points out you can’t get a computer to cut your hair or pop to India to have it done. So at 63 his customers queue out of the door for his services.

I on the other hand am a university professor with 4 degrees including a PhD and it would be very easy for someone in India to give my lectures worldwide over the net.

Makes you think.
…………

You’re doomed if you stay put.

Why don’t you put your course on line.. Be first….

#132 Big Al (New) on 05.12.14 at 7:53 am

“i’d like to see you do the employment analysis for the USA. considering how many time you keep saying their economy is growing, using the above analysis, they’re even more screwed than Canadians. but of course, your opinions are severely biased.

1.3 million Canadians idle? what’s the US equivalent?

What difference does that make to our situation? — a Garth”

It’s a reference you constantly use, so if it doesn’t make a difference why use the US as your model of economic growth. Reconcile for me first quarter US GDP of .1% and an unemployment rate of 6.3%. One of those metrics is a lie,yet you hoist it up as an example of growth.

#133 Bargains everywhere on 05.12.14 at 8:26 am

Ah, yes, here’s our favourite house — 2290 Saxony Ct. Now listed at $1. Any takers?

http://beta.realtor.ca/propertyDetails.aspx?PropertyId=14311186

#134 maxx on 05.12.14 at 8:27 am

#18 AfterTheHouseSold on 05.11.14 at 5:57 pm

“I can only assume zee that you are new to the blog or are too busy watching real wives instead of the news or are a surRealtor troll.”

Great post. I choose door number 3….no 2…no 3….

Like many Canadians, we can afford “suggested” (ha!!) retail prices, as well as re, however, lousy, anemic, under-performing monetary policy inspires us to save like crazy. Discretionary income is then largely pushed to traveling and unfortunately for Canada, that means out of it.

As for most of the rest of life’s little necessities, loss leaders (low profit, lower tax), charity shops (giveaway prices, often no tax), couponing (clip and use during a sale or loss leader on the product) and no adhesion to ANY subscriptions, auto-debits or fluff.

Very liberating. This household has negative inflation and always will.

Anyone can do it….and it is completely and utterly invisible. No one knows you only paid $3.00 for a mint pair of Clarks winter boots, or $1.00 for a genuine Christian Dior belt, etc, etc.

We will continue to sit solidly and squarely on our savings until the economy has been de-loused.

Fat chance of that anytime soon. TPTB, in their infinite brilliance, have made a total cock-up of globalization and have painted value into a very tiny corner.

#135 CTO on 05.12.14 at 8:35 am

I can’t imagine any reason why American’s and their companies would not isolate the Canadian manufacturing and/or services sector.

Our government officials, private sector officials, etc seem to have been gloating over the past 5 -6 years, basically saying we are better than Americans and we don’t need them. Then you hear economist clearly counting on the fact that if Americas economy runs full steam then so will Canada. Ya-Hoo!

Canada, (Ontario in particular), has historically been the economic engine for Canada. This is not because we are “special people”, it is because of our special location.

American business owners don’t want to do business with us, due to a lot of reasons, such as:
High energy costs (Ontario)
High corporate taxes
Canadian dollar near par
High salaries demanded by the “over-indebted” (MOST IMPORTANT)
If Canadians are so good, then maybe American companies should look after themselves this time around. After all, We don’t need them, we have Real Estate!

#136 jess on 05.12.14 at 8:42 am

pseudo-invoicing

http://www.theguardian.com/world/2014/may/11/african-invoice-fraud-tax-havens-development
http://www.gfintegrity.org/content/view/686/70/

…”GFI’s report, published on Monday, said most of the funds are lost through multinational companies illegal misinvoicing the value of imported or exported goods. It means that importers pretend to pay more for goods than they actually pay and the extra money is slipped into offshore bank accounts. In one notable case an American company invoiced for plastic buckets at $972 each.

“We are talking about a huge drainage out of these countries,” GFI president Raymond Baker said: “People are making millions and millions at the expenses of the world’s poorest people.”

Baker said virtually all household name companies dealing in Africa have used the scheme, which he said is effectively “stealing from African governments”.

He said trade misinvoicing takes place all over the world but Africa is particularly susceptible as local officials are more likely to be corruptible. Baker said some government officials have also siphoned off large chunks of cash. The report, commissioned by the Danish government, compares the official prices paid for goods to the global market price for the same items but does not name any companies or officials.

It said: “A global shadow financial system provides measures of opacity to disguise and move illicit money throughout the world, including dozens of secrecy jurisdictions and multiple layers of confusing and concealed ownership structures.

#137 Dual Citizen In Canada on 05.12.14 at 8:47 am

If you are in IT in Canada, you are doomed. Let me clarify that a little. If you are in IT and you are in a technical position, get out now. Instead of fixing things, be the person that manages resources that get it fixed. I learned that lesson 3 years ago when I left my senior technical position and decided to manage the outsourced staff. Hopefully I have distanced myself from being on the radar in the future. All the banks have already outsourced and even the media coverage of RBC won’t stop other companies from following suit. The Harbinger of IT death, Mr. Harper, is the only one that can. I can relate to Brad’s situation but he needs to adapt and adjust to the world of global sourcing. Managing outsourced staff going to be the only “IT” jobs left for us.

#138 maxx on 05.12.14 at 8:58 am

Re: #136 maxx on 05.12.14 at 8:27 am

One final note: whenever msm chimes on ad nauseum about shortages of this or that due to weather events or increased demand from some other part of the globe putting “pressure on prices”, substitute! Your creativity pays big, big returns. To wit- when pasta prices skyrocketed because of “increased demand” (yawn), many simply substituted other grain sources. Finito getting needlessly and endlessly reamed……

……notice what’s happened to pasta prices in the past couple of months? Prices have plopped back to about $1.00 for 900g- “normal” levels, and it’s still not flying off the shelves and won’t anytime soon, what with so many with gluten allergies.

#139 Big Brother on 05.12.14 at 9:03 am

#45 Smoking Man on 05.11.14 at 7:19 pm
#29 Londoner on 05.11.14 at 6:39 pm
Btw – if Brad’s good then he can go indy contracting as well and earn much more and without the politics.
Are you 56? — Garth
……..
Almost 56, and altho my writing needs a bit more work, code Smithing is at prime….

……………………………………………………………………….

MKULTRA says Smoking Man is a 55 year old code monkey. This story could almost be his but sadly alas, it is not! Oh and yes we are very sorry to the rest of the world for creating this evil grammar bashing and irritant spelling blasphemer. See you in Las Vegas next weekend we will be waiting to upgrade your programming. Perhaps we code reprogram you to spell correctly?

#140 Jeff in Moose Jaw on 05.12.14 at 9:26 am

#67 Inglorious Investor

Very good point – thank you.

#141 The real Kip on 05.12.14 at 9:39 am

What are you talking about “no jobs”? There’s lots of jobs. Why right now there are planeloads of farm workers leaving places like Mexico to work agricultural jobs across Canada. Why? Because guys like Brad won’t work preferring instead to whine in forums like this!

Is Brad qualified to pick a cucumber? Didn’t think so. I’ll tell them to send another planeload!

#142 Daisy Mae on 05.12.14 at 9:39 am

“In fact, if it weren’t for the current crop of greater fools – borrowing massively at cheap rates so they can buy inflated houses and fill them with crap from China – things would be a lot worse.”

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

So, this is the only lifeline the feds have? They want to cool housing down…but just a little bit.

#143 Steve on 05.12.14 at 9:46 am

“In sum, the shoeshine boy indicator flashes a “sell” when the protagonist both indicates that he is an experienced investor that has made money for quite a while in the given asset class and simultaneously proselytizes about the virtues of investing that asset class as a “sure thing.”

Two foot ‘O butt crack, and four mortgages all coming due. (My coworker)

#144 Just the facts Ma'am on 05.12.14 at 9:59 am

Brad must have received a nice severance. Sweet.

Such jobs typically pay six-months’ worth of income. How is that sweet in month seven? You’ve obviously never lost a job. — Garth

#145 Bottoms_Up on 05.12.14 at 10:06 am

Our Canadian kids that are going to college/university, better be getting specialized.

#146 Peter on 05.12.14 at 10:10 am

House price in GTA is high but if anything price will just remain at this level even with rates going up at a very moderate pace. There are not enough home for sales and very strong demand. Also, the trend of boomers selling their homes for retirement will be staggered over a decades therefore the impact on RE prices will be subduded.

Demand for homes is not ‘strong’ and SFH sales are running below the 5-year average. There is much buyer interest in a narrow price range, and wholly irresponsible media coverage. It has apparently victimized you. — Garth

#147 Daisy Mae on 05.12.14 at 10:25 am

#4 zee: “I really dont see the layoffs that you always talk about. No major company has come out and reduced their staff significantly.”

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

You don’t see it, because you don’t want to see it.

#148 Daisy Mae on 05.12.14 at 10:27 am

STAPLES in West Kelowna is closing its doors.

#149 brainsail on 05.12.14 at 10:30 am

Canada has some world class universities but for many of the graduates of certain disciplines like computer science, electrical engineering and IT related it is hard to find a good job in Canada. A good job meaning one that pays well, has a good life expectancy and offers good career enhancements over time.

It was in the early eighties just after NEP thing that happened in AB that my wife and I crossed the border to find good jobs. We both have professional degrees and have enjoyed good paying careers all these years. I ended up in semiconductor manufacturing and she in computer manufacturing.

I was shocked to find out the other week that we are not alone. Over the years, Canada has experienced a brain drain to Silicon Valley. That is the world’s center of technology and is centered around Santa Clara which is just south of SF Bay area. About 50 major international corporations have offices there with a total of about 1.5M employees.

350,000 of them are Canadians!

http://www.techvibes.com/blog/there-are-350000-canadians-living-and-working-silicon-valley-right-now-2012-02-24

” He said it’s not unusual to for annual salaries to run between US$140,000 to $160,000 to start, plus company stock, to work in the San Francisco Bay area, home to about 350,000 Canadians.”

http://globalnews.ca/news/1137849/1137849/

#150 Smoking Man on 05.12.14 at 10:37 am

147 Bottoms_Up on 05.12.14 at 10:06 am

Our Canadian kids that are going to college/university, better be getting specialized

By Denis Rancor, Ottawa tenured Prof who bounced cause he actually taught.

The Student…
You choose to be a house slave rather than risk freedom.

You are pathetic to watch. Racing from assignment to assignment, from essay to essay, from test to test, from lab to lab; racing to regurgitate on demand, to satisfy a master, to be graded for compliance, to be moulded into an obedient servant without ever having the time to think or understand.

You are even more pathetic when you justify your subservience with the master’s catch phrases: this is how we learn from true experts, basic knowledge first then thinking and application, practice leads to skill… as though human development, perception and learning were like tying a shoe or any other technical skill.

You are most pathetic when you devise a world view to justify your own negation and indoctrination; when you bring the master within yourself in this way. You are most sad, most deeply wounded and most distanced from yourself when your oppressor resides in you.

You were broken and institutionalized as a mostly defenceless child but now you are an adult and it is time for you to stand up – or take the path of life-long crawling.

#151 Daisy Mae on 05.12.14 at 10:38 am

#26 Dean Mason: “A 27 year old earning $71,400 a year is hardly a tough case example.”

The tough case is the 56-year-old, not the kid. — Garth

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

Finding similar work — or ANY work — at age 56 is NOT going to be easy. Give your head a shake.

#152 Just the facts Ma'am on 05.12.14 at 10:39 am

#146 Just the facts Ma’am on 05.12.14 at 9:59 am
Brad must have received a nice severance. Sweet.

Such jobs typically pay six-months’ worth of income. How is that sweet in month seven? You’ve obviously never lost a job. — Garth

Based on position, age, level of responsibility Brad should easily get 12 months if not 15 months. Been there, done that.
After which he can start collecting EI for and 40-44 weeks.

Yes. So sweet. — Garth

#153 Daisy Mae on 05.12.14 at 10:44 am

Dean Mason: My son is 46 — and he already notices the young bucks coming up behind him.

#154 Aggregator on 05.12.14 at 10:44 am

Here's the latest from the UN/UBC Agenda 21 inculcated graduate— now miss GTA chief planning muppet, Jennifer Keesmaat, explaining (and promoting) how micro-condo living is the new reality because mowing the lawn is "quite simply, passé".

Here’s how to change Canada from a suburban to an urban nation

Restraint in our land use planning means paying better attention to detail by bringing uses in close proximity to each other, such that we achieve more from every penny of infrastructure investment whether for our roads, sewers or transit. While higher density development – such as the 6 to 11 storey buildings emerging along Toronto’s Avenues – has the potential to do this, a sensitivity to high quality materials, design and the need for inspiring public spaces is essential if these places are to add value to existing communities, and if they are to become neighborhoods where people have a sense of belonging. I also believe we need take planning for families in urban places more seriously, as was done with the development of Yaletown, in Vancouver, where 25 per cent of the condos where designated for families.

Did she just say Toronto needs a plan like Vancouver whose housing affordability has gone from worse to worst every year under the City's master planned vision to nowhere? Ya know, the same people who continue to ignore the real issue of developers building units solely for the purpose of foreign investors, not for the families who need them:

Are Toronto’s multiplying condos shrinking out families?

The disturbing thing about all of this is that these people (muppets) who continue to tout their own failures as success actually think they're doing good for the community, when they're really making it worse. The government has no place in choosing what's right for local citizens. There needs to be 100% public input on planning, not closed door meetings and back end deals to restrict land supply in order round the herd into micro-condos.

These people will will destroy our cities. Not make them flourish.

#155 YourDailyMeme on 05.12.14 at 10:52 am

Jim Stanford? Pink? He’s saying much the same things as the CD Howe Institute these days, or haven’t you heard what they’ve been saying lately? For instance, their report on the TFW effects on unemployment:

http://www.cdhowe.org/temporary-foreign-workers-in-canada-are-they-really-filling-labour-shortages/25734

Old habits die hard, Garth. It’s been years since you got kicked out of Harper’s cult for pooping in the punch bowl, and you’re still getting adjusted to life outside the echo-chamber.

We live in an age where even Rob Ford was secretly videotaped saying he wouldn’t vote for Hudak, while the CD Howe institute is implying the feds are way too right wing even for their taste.

http://hotmeme.net/post/jnJ/that-s-a-bold-strategy-for-harper-let-s-see-if-it-pays-off-for-him/

#156 Daisy Mae on 05.12.14 at 10:59 am

#34 Picasso: “I don’t want to admit age being a factor, but I know it’s a big reason for me not getting work.”

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

When Brenda Mines in Peachland, BC, shut down many years ago many men had nowhere to go. Truckers were simply forced to retire…in their mid-fifties.

#157 Holy Crap Wheres The Tylenol on 05.12.14 at 11:08 am

#152 Smoking Man on 05.12.14 at 10:37 am
147 Bottoms_Up on 05.12.14 at 10:06 am
Our Canadian kids that are going to college/university, better be getting specialized

By Denis Rancor, Ottawa tenured Prof who bounced cause he actually taught.

The Student…
You choose to be a house slave rather than risk freedom.
You are pathetic to watch. Racing from assignment to assignment, from essay to essay, from test to test, from lab to lab; racing to regurgitate on demand, to satisfy a master, to be graded for compliance, to be moulded into an obedient servant without ever having the time to think or understand.
You are even more pathetic when you justify your subservience with the master’s catch phrases: this is how we learn from true experts, basic knowledge first then thinking and application, practice leads to skill… as though human development, perception and learning were like tying a shoe or any other technical skill.
You are most pathetic when you devise a world view to justify your own negation and indoctrination; when you bring the master within yourself in this way. You are most sad, most deeply wounded and most distanced from yourself when your oppressor resides in you.
You were broken and institutionalized as a mostly defenceless child but now you are an adult and it is time for you to stand up – or take the path of life-long crawling.

______________________________________________

Wow Smoking Man you need to lay off the meds man, you really have a thing with teachers and teaching in general. School is not for everyone, while I can agree with your analogies on bad teaching, teachers and the system itself. It is at this juncture, the best system we have so chill out man. I have seen other education systems around the world and ours isn’t too bad. I would rather be operated on by a fully educated surgeon who has gone through the university, med school and resident in hospital training than someone who just decided to use your University of Google (UOG) as a source of education! I would think that even you would agree on that! But then again perhaps you dislike the medical system too?

#158 Pete on 05.12.14 at 11:12 am

#135 Bargains
Ah, yes, here’s our favourite house — 2290 Saxony Ct. Now listed at $1. Any takers?

http://beta.realtor.ca/propertyDetails.aspx?PropertyId=14311186
———–

This saga is just too funny. We obviously have a “winner” of the auction process who does not take the legal obligation that comes along with that too seriously (this apparently is the same “winner” from the previous auction). Apparently a winning bid is just the starting point for a negotiation! Also seems that the people doing the auction are not very competent (or maybe just desperate).

#159 dan on 05.12.14 at 11:29 am

Demand for homes is not ‘strong’ and SFH sales are running below the 5-year average. There is much buyer interest in a narrow price range, and wholly irresponsible media coverage. It has apparently victimized you. — Garth

His point is there won’t be any meaningful correction because the expectations for RE has been set. This isn’t the 90’s. If people are expecting 20%-30% haircut on prices there would be steady increase in listings. Clearly this isn’t the case, especially the high demand areas (i.e. Toronto). Every financial crisis creates inequalities. The ones in RE are being awarded fairly or unfairly so. Furthermore, BoC nor the government is foolish enough to trigger a housing crisis.

As I have shown, listings are rising (up 15% month/month in Toronto). A housing correction is not a crisis, and it’s inevitable. — Garth

#160 Shawn on 05.12.14 at 11:33 am

Why Good Jobs Are hard to Find

Could part of the reason that good jobs are hard to find be that it is very expensive to get rid of an unwanted worker?

There can a large amount of severance in some cases.

It’s usually difficult emotionally for both parties.

In jobs that are more fluid , where employees come and go, it can be easier to hire because it is easy to terminate as well.

Job security comes with unintended consquences.

#161 Bottoms_Up on 05.12.14 at 12:03 pm

#4 zee on 05.11.14 at 4:53 pm
———————————-
More than just ‘some’ retailers struggling.

Jacob — leaving Canada.
Zellers — sold a whack of stores to Target
Target — finding it hard to compete with Walmart in Canada. May pull out.
Sears — sold a key head office in Toronto, sold their flagship store in Ottawa
Moores — disappearing from certain locations
Staples — disappearing from certain locations
United Furniture — disappearing from certain locations

I’m sure there are many more, this is just from recent memory!

#162 Bottoms_Up on 05.12.14 at 12:15 pm

#152 Smoking Man on 05.12.14 at 10:37 am
————————————————
SM, without formal, institutionalized learning, also known as school, there would be substantial limits on innovation and invention, and likely no:

1) cars — you wouldn’t be able to drive to your doctors b/c the internal combustion engine would never have been developed

2) there would be no structurally sound buildings — oops, a 4.4 earthquake hit? better run for the exits!

3) there would be no medication to treat your schizophrenia, because the scientist that had a distinct knowledge of cell biology through ‘school’, wouldn’t know how to create the structure of that drug

4) no internet — and no blogging — as I’m pretty sure the developers of computers and writing code had formalized training

5) no A-bomb

6) no economy (as we know it)

Institutionalized learning is the underpinning of any successful society — deep down you know this, hell dogs know it!

#163 BCD on 05.12.14 at 12:24 pm

Anyone visit Smoking Man’s blog? For such a big shot talker he looks like he lives in a dump in one of the pics. . .hmmm. . .maybe it’s because he is full of caca?

#164 Panhead on 05.12.14 at 12:28 pm

#129 jane24 on 05.12.14 at 3:50 am

Hubby is a barber and as he points out you can’t get a computer to cut your hair or pop to India to have it done. So at 63 his customers queue out of the door for his services.
___________________________________________
I followed the advice of a co-worker and my better half took a one day course in hair cutting and I ponied up for the required equipment. Hated waiting in line to spend $20.00 for a 10 minute cut. She does a great job … brilliant.

#165 Spectacle on 05.12.14 at 12:31 pm

Big Thanks Garth.

#156 Aggregator on 05.12.14 at 10:44 am
Here’s the latest from the UN/UBC Agenda 21 inculcated graduate— now miss GTA chief planning muppet, Jennifer Keesmaat, explaining (and promoting) how micro-condo living is the new reality because mowing the lawn is “quite simply, passé”.

The government has no place in choosing what’s right for local citizens. There needs to be 100% public input on planning, not closed door meetings and back end deals to restrict land supply in order round the herd into micro-condos.

These people will will destroy our cities. Not make them flourish.

My Reply to, Aggregator @ #156.

There is a serious need for another blog about linking Agenda-21 to the destruction in jobs, banking, our economy, employment ……real estate, world real estate prices ( dropping..) families …..and blogs such as Garth’s.

Care to start one, Or be a moderator? Sure Garth would welcome the increased traffic to his blog & financial experience, and the a wider client base to his site.

Regards, m

#166 fixie guy on 05.12.14 at 12:47 pm

#161 Shawn: “Could part of the reason that good jobs are hard to find be that it is very expensive to get rid of an unwanted worker?”

The more likely cause is a government focusing a trillion dollars in guarantees on low tech real estate while allowing native tech giants to wither and slashing research dollars. That’s what you get from following policy advise from the financial industry.

#167 Holy Crap Wheres The Tylenol on 05.12.14 at 12:57 pm

Well I’m off to Ireland Friday for a week. Wife’s family is from county Shmuckshire or some name I can pronounce. All kidding aside I really want to get some feedback on how the Celtic Tiger is doing with jobs and housing. I’m going to the pubs with her cousins a so I better be on my best behavior. They don’t call them the fighting Irish for noting I can tell you. Looking forward to some good beer.

#168 Nemesis on 05.12.14 at 1:03 pm

#MOOCs #QuantitativeMondayMischief

“We have a lousy product.” – Prof. Sebastian Thrun, StanfordU

[PandoDaily] – MOOCs 101: Data viz style

…“A MOOC?,” you say. “What’s a MOOC? The sound a cow makes when it’s having sex?”

MOOC stands for Massive Open Online Courses. The concept, which is growing popular among prominent universities, involves filming classes and putting them online, frequently free for the masses. The idea to democratize education, allowing those who can’t afford it to learn virtually alongside those who can.

…Critics are eyeing the efficacy of the courses a little more closely these days, debating whether a style of learning where less than ten percent of participants are estimated to actually finish the classes is really destined to democratize and transform education and access.”…

http://pando.com/2014/05/09/moocs-101-data-viz-style/

#169 Randis on 05.12.14 at 1:04 pm

#18 AfterTheHouseSold:

Great and accurate info, thank you.

May I add Jacobs and Unilver to the list? Jacobs just applied for bankruptcy and Unilever is closing their Ontario plants …

More to come and this won’t end well ..

#170 4 AM Sunrise on 05.12.14 at 1:04 pm

#156 Aggregator on 05.12.14 at 10:44 am

I have a feeling that governments prefer to react afterwards rather than consult beforehand. Yaletown wasn’t meant for families. But a few years ago, either families moved in and/or those DINK couples had babies, and then it was like, “OOPS! We need to build an elementary school, and fast!”

#171 Doug in London on 05.12.14 at 1:17 pm

In looking at the CREA membership chart, it looks like the last time membership was so high was in 1989-90 and we all know what happened after that. Membership at CREA is high again, so is that a sign the sector has peaked and is due for a correction? Of course not! Even an idiot like me knows that it’s different here in Canada, and this time around will be different from the past.

#172 G-Dawg on 05.12.14 at 1:18 pm

I see the TFW at work in any Tim Horton’s in Alberta. These Philipino girls, it seems mostly, working their butts off, always a smile on their face, and living in Canada, while still managing to save money and send it home to support their family.

If our country was made up of more of these TFW’s, opened the doors (wide open) to families like this, I believe we’d be headed in the right direction. A nation of strong families of hardworking people trumps the generational welfare, the complainers and doomers and ‘ah, I just can’t catch a break’-types anyday.”

I couldn’t agree more. The entire civil service should be fired and replaced by TFW at economic rates. There is no job in the civil sector that cannot be done by TFW’s…teachers, firemen, police, office, engineering, etc etc etc etc . All these jobs should go to guest workers on short visa’s. We’d save zillions on wages, pensions and perks….and the ‘best and brightest’ ( as the civil service tells us they are) could better use their tremendously important talents to create new opportunities for their families and other Canadians. Paying civic service wages as they are just contributes to laziness and malaise as we across the country but particularity among unionized civic service types.

#173 EB on 05.12.14 at 1:24 pm

#159 Holy Crap Wheres The Tylenol

Two words – Dunning-Kruger
http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect

But speaking as a long time fan of Jeremiads, SM’s rants are at least entertaining. Apart from that the usual cautions about troll-feeding apply.

#174 4 AM Sunrise on 05.12.14 at 1:38 pm

#112 Uh Oh Canada on 05.11.14 at 11:23 pm

My high school math teacher retired at 55 and at age 65 still tutors – self-employed – as a hobby. The upside of the deterioration of math education in this country is that he can’t keep up with demand. He tells me that he’s had to turn students away.

I’m a math tutor myself, and no, I’m not against new teaching methods. But when we don’t teach kids symbolic manipulation anymore, I grab my pitchfork and protest.

#175 Aggregator on 05.12.14 at 1:50 pm

Condo markerting has hit an all new low: BE AN OWNER NOT A RENTER

They're even marching the streets of Toronto protesting

"@ThePointTO People came to the streets to protest their landlords! Find out more this Wednesday our sales centre"

#176 Old Man on 05.12.14 at 1:51 pm

Now that Canada under Caesar has become a world military power and important member of NATO would it be possible in your dreams to see ballistic missiles on our soil from coast to coast? Tell Caesar no with the next vote, as its secretly under consideration now, and if this nutcase wins the answer will be YES. This insane thought process must be stopped, as we need no more Reform, Alliance, and Northern Foundation insanity.

#177 Mak the investor on 05.12.14 at 1:53 pm

I never could understand the benefits of outsourcing.
Yes. Your product will be cheaper but if the consumer is broke, then the company will eventually close not post a profit.
Nortel used to get a lot of work done in India. Everyone knows where Nortel is now.
The telecom companies and banks outsource a lot. Not sure where we are headed.
I am sticking to my diversified investment portfolio :) instead of worrying about the economy for now.

#178 Son of Ponzi on 05.12.14 at 1:58 pm

Freedom 55.
Time to put together a class action suit for misleading advertisement.

#179 Jaymo on 05.12.14 at 2:04 pm

$1.50 per litre for gas huh? Poor Canadians. Currently enjoying a vacation in Crete. Here gas is 1.78 Euros per litre or about $2.66 Cdn. In Amsterdam last week a litre of gas would cost you about $2.62 Cdn per litre. So, gas up and be happy cause it could be a whole lot worse!

#180 Linda Pearson on 05.12.14 at 2:32 pm

#168 Holy Crap Wheres The Tylenol on 05.12.14 at 12:57 pm
*************************

Go on-line to the Irish Independent or even the Irish Times and read back a few issues after searching “employment” or “housing”. See?…not that hard. Many of the small centres have their own newspapers too.

#181 Aggregator on 05.12.14 at 2:55 pm

Scotiabank's new cash back mortgage, but it's not what you think, they're offering $500 in Canadian Tire money if you sign up for mortgage.

Bank joins forces with Canadian retailer

What's next? Chuck E. Cheese tokens?

You can only sit back and laugh at this point. No seriously. We're at that point now.

#182 Dupcheck on 05.12.14 at 3:06 pm

Do you ever see those bumper stickers that say: Out of a job yet, keep buying foreign?

Those who have them on their cars are so ignorant and misled. They think that their Chevy is made in the US or Canada, but the truth is more than 60% of their parts are made in Mexico and China.

People should buy what they want and not be judged for it. Also more than half of those foreign brands are made in US or Canada anyway.

#183 Pope Holy Hotdamn Snugglebums the 666ei (aka Nosty) on 05.12.14 at 3:07 pm

SMan was, and is right. Some may remember that a few days ago, I posted a link — Ignore Dr. Phil — because the article suggested that western-born people are born with mental deficiencies, that they weren’t too smart and psychiatry, on a mass basis, is the new norm. No disrespect intended for Dr. Phil, as he does a fine job of helping individuals.

It turns out that this is the harbinger (sorry Garth), and is gaining momentum. People’s finances may be in a mess, but it doesn’t need a large portion of the population to be dumbed down.

TPTB want a population of quiet, yes-sheep, who (without question) obey anyone and everything.

Remember Timothy Geithner?

#184 devore on 05.12.14 at 3:08 pm

#156 Aggregator

Did she just say Toronto needs a plan like Vancouver whose housing affordability has gone from worse to worst every year under the City’s master planned vision to nowhere?

This is pretty dumb, as the financing model for condo developments means developers will vastly prefer filling their buildings with tiny units which fetch the highest sell price/sqft. “Investors” prefer them too, because they can out the deposit on the credit card.

You can force developers to include “family-sized” units, but that will be as effective as forcing them to build market or income-assistance rental units. Which is to say not effective at all.

#185 sciencemonkey on 05.12.14 at 3:14 pm

@178 Mak
The company is ahead if they outsource but have their products purchased by Canadians employed by other companies.

#186 Holy Crap Wheres The Tylenol on 05.12.14 at 3:30 pm

#181 Linda Pearson on 05.12.14 at 2:32 pm
#168 Holy Crap Wheres The Tylenol on 05.12.14 at 12:57 pm
*************************
Go on-line to the Irish Independent or even the Irish Times and read back a few issues after searching “employment” or “housing”. See?…not that hard. Many of the small centres have their own newspapers too.
_____________________________________________

Sorry Linda, If I believed everything that was written I would have owned two Brooklyn Bridges by now. I agree on reading and doing your homework but its nice to get word of mouth and tactical Intel from the troops in the field.

#187 devore on 05.12.14 at 3:30 pm

#169 Nemesis

The idea to democratize education, allowing those who can’t afford it to learn virtually alongside those who can.

That’s like a food bank democratizing nutrition, allowing those who can’t afford it to eat alongside those who can. And doesn’t that sound totally inane. These free online courses are feel good charity.

#188 Old Man on 05.12.14 at 3:49 pm

What is a job other than making income to pay for goods and services. What is savings other than getting more for less. This becomes the equation for prosperity to live the good life. Now where to go for this dream, as it would be a small Magic Town of 15,000 where money flows like gold with an eco park, no poverty, a major movie making center, a huge waterfall descending into a rain forest, and never hot or cold weather. Lots of business opportunity as its busy with tourists seeking the Magic and to live well like a king would cost you $10,000 a year. Does such a paradise exist? YES

#189 devore on 05.12.14 at 4:01 pm

#180 Jaymo

$1.50 per litre for gas huh? Poor Canadians. Currently enjoying a vacation in Crete. Here gas is 1.78 Euros per litre or about $2.66 Cdn. In Amsterdam last week a litre of gas would cost you about $2.62 Cdn per litre

Pointless comparisons. All of Crete fits roughly inside the area of GTA. Entire Netherlands landmass is smaller than Vancouver Island.

Tomorrow’s lesson: why comparing European telcos to Canadian ones makes you look ignorant.

#190 Soylent Green is People on 05.12.14 at 4:03 pm

Harper quietly allowed businesses to pay foreign workers 15% less than Canadians

http://rabble.ca/blogs/bloggers/karl-nerenberg/2013/04/rbc-and-harper-governments-double-message-guest-workers

………………….

More foreign workers coming under International Experience Canada program aged 18-35

pic.twitter.com/Dbmaup6kHt http://www.ctvnews.ca/politics/more-foreign-workers-coming-under-international-experience-canada-program-1.1798171 #cdnpoli

…………

Tim Horton’s abusing TFW: paying them much less & charging them for bad housing

http://www.cbc.ca/news/canada/story/2012/12/11/f-temporary-foreign-worker-program-tim-hortons-canada.html

……………………..

1. Make large donation to @pmHarper’s CON Party
2. #TFW application rushed right thru
#elxn42 pic.twitter.com/xb4BbhIOjK

#191 Just the facts Ma'am on 05.12.14 at 4:19 pm

Based on position, age, level of responsibility Brad should easily get 12 months if not 15 months. Been there, done that.
After which he can start collecting EI for and 40-44 weeks.

Yes. So sweet. — Garth

Well The cat food lady could live off of that for 4 plus years, so could I. No offence cat food lady, I like your posts.

#192 Aggregator on 05.12.14 at 4:22 pm

#185 devore

Of course it's dumb. They're all dumb and only have one interest: to profit at taxpayer's expense. When one looks at what's really been achieved by the planning regime, as it turns out, the more they try to build cities without laying down the roads first, ends up costing commuting workers more time sitting in a car, subway or taxi — that by the way is burning more fuel or wasting more energy that the tree huggin' muppets themselves are trying to fight! Chart

So the muppets will look at that chart and say, see.. it's because we don't enough subway routes. So they propose new subway lines (funded by nobody), then comes the land and condo speculators who bid up prices just because it's by the subway and were told herds of foreigners are coming to Toronto that have to rent. This strategy defeats the whole purpose of making housing affordable and reducing emissions, and why it will get worse as long as muppets in control.

If you want to know what the sun will look in Toronto and Vancouver in twenty of forty years, just look at another city who's rapidly trying to urbanize their population. Image

It's all about profit, reducing Canadian's standard of living and retaining control over the land. That's what 'sustainablity' means.

#193 bdy sktrn on 05.12.14 at 4:26 pm

#189 Old Man on 05.12.14 at 3:49 pm
———————-
well…. tell us where? mexico?

#194 Wei Chi on 05.12.14 at 4:30 pm

Perhaps why “crap comes from China” because the Chinese are smarter than you. Look at their board game, Go, or wei-chi, which has rules unchanged for 2500 years around time of Zhou dynasty, 1056 B.C. This game is used in Asia to train how to think. If you can get good at this game it will train your subconscious how to think and do your calculating for you. The game is priceless and worth every moment studying it. Study this game and learn how to crush all problems in your life. To beat the Chinese you must think Asian. Be an egg, in other words(white on the outside, yellow on the inside). I am a proud oval eyes.

Garth, study Wei-Chi: http://www.wuzheng.me, dragongoserver.net, goproblems.com, http://en.wikipedia.org/wiki/Go_(game)

#195 Ralph Cramdown on 05.12.14 at 4:36 pm

#178 Mak the investor — “I never could understand the benefits of outsourcing. Yes. Your product will be cheaper but if the consumer is broke, then the company will eventually close not post a profit.”

If you outsource and your competitor doesn’t, you win. In the long run, you probably get almost the whole market and your competitor goes broke. The opposite if he outsources and you don’t. If you both outsource, domestic consumers of your product do end up poorer. And if neither do, they end up richer. Game theory. Either you both agree not to outsource, or you both have to because of the other guy’s actions.

Sounds a bit like the prisoner’s dilemma or the tragedy of the commons.

#196 John on 05.12.14 at 4:48 pm

Based on position, age, level of responsibility Brad should easily get 12 months if not 15 months. Been there, done that.
After which he can start collecting EI for and 40-44 weeks.

Yes. So sweet. — Garth

——————————————————

Very sweet when Brad gets a temporary contract in month 3. Doubles up. Worked with many older IT guys on contract. IT unemployment rate is less than a few percent.

FYI brad, if your income is greater than 60k in the tax year, you have to pay back 30% of the pogey. News to me too.

#197 jess on 05.12.14 at 4:53 pm

sign and up and be “notified”

“Employment Minister Jason Kenney says the government is making improvements to its online job bank amid revelations that hundreds of employment positions on the site have long since been filled.

…The government also relies in part on job bank data to determine what regions of the country are clamouring for labour.”

http://www.cbc.ca/news/politics/jason-kenney-defends-online-job-bank-despite-outdated-postings-1.2640348

The government also relies in part on job bank data to determine what regions of the country are clamouring for labour.

#198 saskatoon on 05.12.14 at 5:19 pm

#176 Aggregator

i can’t believe this picture!

placards for debt!

so…agg, what should i do to protect myself and my family from the psychopathic personalities running the show?

(i mostly skip through the “me-me-me” comments…and look for yours…thanks)

#199 PepperyDog on 05.12.14 at 5:28 pm

#62 Nemesis

So what does a 20 year-old news clipping have to teach us today?

#200 HD on 05.12.14 at 5:53 pm

@ #196 Ralph Cramdown on 05.12.14 at 4:36 pm

I read a book about game theory the other day.

Fascinating stuff.

Best,

HD

#201 Evangeline on 05.12.14 at 6:35 pm

#162 Bottoms Up

“More than just ‘some’ retailers struggling.”

Serves them right. Shopping just isn’t any fun anymore except at places like antique stores, Goodwill or yard sales where you can find more quality and variety. Today’s stores have destroyed their brands because of the monotony of them all selling the exact same crappy merchandise. Same with their online offerings, it’s all the same stuff.

As for Target, it should have opened up its online shopping to Canada instead of investing in brick and mortar…

#202 Pinch me on 05.12.14 at 6:46 pm

#176 Aggregator on 05.12.14 at 1:50 pm
Condo markerting has hit an all new low: BE AN OWNER NOT A RENTER

They’re even marching the streets of Toronto protesting

“@ThePointTO People came to the streets to protest their landlords! Find out more this Wednesday our sales centre”

Holly shit.
This country is downright [email protected]

#203 Trojan House on 05.12.14 at 7:02 pm

#122 KommyKim on 05.12.14 at 12:54 am

“Did you actually READ the article? A person’s bank account would only be “raided” if that person owed more than £1,000 in back taxes and only if there was £5,000 or more in the account.”

I guess that makes it alright then.

#204 Happy Renting on 05.12.14 at 8:29 pm

#111 Doug in London on 05.11.14 at 11:23 pm

Hire a 27 year-old used to making $40k and pay him $50k, he will feel like a rock star and be eager to work his butt off for you.

Hire a 56 year-old Brad-type used to making $102k and pay him $50k, he will feel horrible about himself and not much better about his new employer. Drag down morale and he won’t be eager to work lots of free overtime.

Besides, there has been a dramatic shift in cultural thinking where old(er) people are now considered less useful. Where you see years of experience, businesses see entrenched habits and obsolete knowledge.

#205 jim on 05.12.14 at 10:23 pm

If IT workers ever formed a substantial union,like say by using the internet, the world would be a much different place.

#206 Doug in London on 05.12.14 at 11:34 pm

@ Happy Renting, post #205:
You’re WRONG in your assessment of older workers. I used to work permanent, full time many years ago. The company I worked for had a buyout I took advantage of, and I have been working on and off at temporary contract employment since. In an average year I make LESS THAN HALF of what I used to make and it DOESN’T BOTHER ME AT ALL because, being older and have accumulated wealth I quite simply don’t need as much. I DOESN’T AT ALL make me feel worse about myself that I make less, not one bit. I compare it to getting a 100 car freight train up to speed where, it requires a great deal of effort with the locomotives working at full output to create the thousands of horsepower and many tons of brute force thrust to overcome the inertia to get it going. Once up to speed it takes considerably less effort to overcome rolling friction to maintain speed. I’m like that, 53 years old and don’t need as much to keep me going as when I started out many years ago. It’s so simple, why is that so hard to understand?

#207 Doug in London on 05.12.14 at 11:58 pm

@Happy Renting, post #205:
Further addition to my above comments, if I had been making 102 grand (I’ve NEVER made that much) and had to “settle” for 50 grand, my first thoughts would be: Wow, I made double this amount for many years and to this day wonder how I ever got away with it! Now I’m back in line with the real world. Good thing I had the presence of mind to save all that extra money during that time!
As for entrenched habits, because I’m more experienced I have dealt with more setbacks, changes of plans, and other difficulties and know better how to deal with them calmly while younger inexperienced workers are more likely to panic. I see the big picture. I’ve worked in many different locations, and the feedback I get is I’m quite flexible and adaptable to different environments and situations. That’s what comes with many years of experience.

#208 James in Ottawa on 05.13.14 at 8:24 am

Garth
You have stated many times that the baby boomers are retiring at a growing rate. Statistics Canada states a lower labour participation rate will result from the boomer generation retiring.http://www.statcan.gc.ca/pub/75-001-x/10207/9584-eng.htm
I agree 665,000 gap is significant, but how much of that is really due to people retiring.

At this point, negligible. — Garth

#209 Daisy Mae on 05.13.14 at 11:10 am

#165 Panhead /#129 jane24

Hubby is a barber and as he points out you can’t get a computer to cut your hair or pop to India to have it done. So at 63 his customers queue out of the door for his services.
___________________________________________
I followed the advice of a co-worker and my better half took a one day course in hair cutting and I ponied up for the required equipment. Hated waiting in line to spend $20.00 for a 10 minute cut. She does a great job … brilliant.

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

Hair-cutting kits are available in retail stores. Complete with guides and instructions. Could be, people will cut their own hair and avoid the 4-6 week expense. Don’t be surprised! ;-)

#210 Daisy Mae on 05.13.14 at 11:28 am

#196 Ralph Cramdown/#178 Mac: ‘Your product will be cheaper but if the consumer is broke….”

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

The key word here is ‘broke’. If the consumer is broke it doesn’t matter if you outsource or you don’t — no one will be able or willing to buy at any price.

#211 Daisy Mae on 05.13.14 at 8:04 pm

#111 Doug in London: “….and could probably get by on less than a younger person starting out. For that reason he would likely be willing to accept a lower salary and, with all that experience be good value to an employer. Why don’t more employers, with their age prejudice, understand that idea?”

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

Because it’s DEGRADING? We’re supposed to ADVANCE in our careers based on our accumulated experience. How humiliating!

#212 Daisy Mae on 05.13.14 at 8:09 pm

#119 Jon B: “Driving around Van on a nice day today. Luxury brand cars were littering the streets lined with highly over-valued real estate. Evidence of wealth seems to be everywhere. Is this city one grand illusion or do I really live in the Dubai of Canada? Obviously I don’t get it.”

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

Of course they’re living on credit. This is not rocket science.

#213 Daisy Mae on 05.13.14 at 8:12 pm

#127 Londoner: Are you 56? — Garth

No, but I don’t think age is the issue. That much experience will be valuable to someone. It all comes down to self confidence and how he can sell himself. Like I said, if he’s good…”

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

Age IS the issue. Period!

#214 Doug in London on 05.13.14 at 9:57 pm

@Daisy Mae, post #212:
The reason these older workers may have to accept a lower salary is due to changing market conditions, and not due to a lack of competence on their part. If I bought a car 3 years ago and, now I decide to sell it and see that I will get less than I paid for it, is that degrading? Why would it be, it’s also due to market conditions. If a person finds making less money degrading (I wouldn’t exactly call making 50 grand degrading) and the lower salary is due to market conditions and no fault of their own it’s a sign of a severe lack of self esteem.

Also, why does a person need to advance in their career if they are making enough to live comfortably? Often career advancement involves more responsibility, more headaches, and more hassles, and more stress and the illnesses that go with it.