The kids

EXORCIST modified

Jason (not his real name since he’s a lawyer and can sue my shapely bottom off) is a Millennial. One of the first. Now in his early thirties, he has a wife and lots of clients he advises on tax matters. But being a tax lawyer and a fool are not mutually exclusive, so Jason almost lost it when it came to Becoming An Adult and buying real estate.

“I nearly blew the bank doors open to take on a $520,000 mortgage!” he says, thinking about that $750,000 semi he coveted – before discovering a certain pathetic, mind-altering, addictive blog. “I woke up from my temporary insanity and reflected on the situation with truly sober thinking. Purchasing that, although very nice home, would have been insane. I looked around me here in Toronto and thought to myself….this is literally terrifying.”

Good word for it. As in Vancouver, Jason’s generation is gambling on properties as no other did in the past. Several reasons why. First, Millennials outnumber Boomers and compose the largest demographic – and we all know what those crazed hippies did to real estate. Second, this is a group which decided to spend 85% of its collective life so far in school, which meant delayed financial adulthood, and a big pent-up demand now for spouses, spawn and back yards. Third, they hate cars. And commuting. The 401 or Highway 1 scare the Mio water enhancer right out of them. They think cars are for renting, and probably never heard of a Magic Bus. Fourth, houses have never cost this much, so buying one is beyond serious. Fifth, the kids are urban. And that’s their downfall.

The fixation with being in a city, ideally within hoofing or biking distance of work (the rebels among them may opt for a pink Vespa), means competition for condos, slanty semis, townhouses and entry-level detached houses has hit a crescendo. Thus we’ve seen prices in the 416 or inner-604 rocket ahead of the rest of the regions, reaching a new and unparalleled level of unaffordability.

Jason offers this observation:

“As a tax lawyer, I see people who are in rough shape for a living but I can tell you that it is getting worse. I see it in my clients. A lot are only stopped from homelessness because of the miracle of ridiculously low interest rates and the ability to borrow against newly created equity in their homes. (On a side note, I’d be happy to give a comment in your blog about CRA auditing real estate in Toronto. CRA is capitalizing big time on the increase in the real estate market in Toronto).”

Well, the kid gave up the big mortgage idea, bought a condo for one third the price and hunkered down to pay off his $95,000 in student loans. Jason even bought a car and has started to invest. “I have gotten to the point where I will be maxing out both mine and my wife’s TFSAs at the end of January. Your blog and common sense brought me back to sober thinking. You are doing a public service.”

Now, to give this some context, let’s remember that our moist little lawyer here is the exception. There are 1.5 million other Millennials in the Toronto region alone – fully a quarter of the entire population of six million – all of them hitting the peak real estate lusty years. Given this anti-car, clumping, clubbing, vaping, pedaling urbanity so much in evidence, it does not bode well for the suburbs or, for that matter, the rural areas beyond.

For example, as of last month it cost 33% more – or an additional $256,245 – to buy a detached house in urban 416 rather than suburban 905. This is attributable not only to fewer properties being available in the built-up areas but also the fact there’s more demand by Millennials. They just don’t want those streets where minivans, and souls, go to die.

Will this continue, even as the era of emergency interest rates comes thudding to a conclusion? As higher down payment requirements click in, or the commodity-dependent economy flirts again with recession? Yeah, probably. Such is the power of peers and evolving work preferences. I mean, have you ever encountered a sub-30 who wanted to live in the suburbs, drive a Kia Sedona and sell things for a living? I rest my case, your honour.

Well, it’s just too bad the Boomers passed on all their house-horny genes. What built the wealth of that generation now has the potential to blow this one up. Nice hair, though.

By the way, here’s a year-ender I recorded for an online radio program. It’s Millennial-free.

237 comments ↓

#1 Randy on 01.03.16 at 5:50 pm

Boomers created a lot of problems for everyone.

#2 Nodebt on 01.03.16 at 5:52 pm

Go tfsa’s & Seahawks!!

#3 Ed 2016 on 01.03.16 at 5:53 pm

“Data is scant with regard to the tri-party repo market, but the size of the year-end Fed auction tells the story. A healthy financial system should not need $475 billion in high quality collateral from a zero-risk entity, such as the Fed—unless there are problems with portfolio composition and counterparty risk bubbling beneath the surface.”

Record Federal Reserve auction suggests more problems for credit, mutual funds in 2016

http://finance.yahoo.com/news/-475-billion-year-end-fed-auction-suggests-more-problems-in-credit–mutual-funds-023901085.html

#4 Love this Blog on 01.03.16 at 5:56 pm

I can’t wait for the millennial tears to begin falling.

#5 Gord In Vancouver on 01.03.16 at 5:57 pm

The fixation with being in a city…..
________________________________________

New immigrants, not just millennials, have also contributed to this trend.

#6 b on 01.03.16 at 6:00 pm

Like the Wizard Of Oz, the skirt is about to be lifted on the Canadian economy, and its gonna look a lot like the face Marilyn Monroe had on the street vent when the air blew up her dress.

#7 Love this Blog on 01.03.16 at 6:01 pm

#1 Randy.

What problems did the boomers create for you?

#8 drydock on 01.03.16 at 6:01 pm

Here comes another pinko scooter,pass me the scatter gun Clitus.

#9 Van real on 01.03.16 at 6:03 pm

As I’ve said several times on this blog. There are only two places to live in this country. YVR and 416 and right in the city. No suburbs for me. Gross!

#10 Retired Boomer WI on 01.03.16 at 6:03 pm

I have come to the conclusion owning a single family detached home, while nice -if priced practical to one’s income and savings, is not a requirement for a successful life.
We will probably be selling our within the next 24-36 months as it no longer fits in with the retired boomer’s desires. I haven desire to shovel snow, mow lawns trim trees, paint, update stuff, and vex over whether the home’s value is going up, or down.
Besides with property taxes, insurance and utilities far outstripping earnings on say fixed income bonds, who needs to fight the B.S. from the town taxing authorities?

Time to sell, let the proceeds trim the rent, and not worry about stuff.

Besides 7 states here in the US have no income taxes, a thought when retired people here start drawing on that taxable deferred retirement plan. Yes, we all gotta pay the Fed rate, too.
Time changes a fool’s perceptions, needs, and desires.
I think I want warmer winters!

M64WI(usa)

#11 Interstellar Old Yeller on 01.03.16 at 6:06 pm

I’m among the anti-commuting crowd, in great part because I perceive GTA gridlock and transit to have worsened in the last decade or two. Living in a shoebox beats spending your waking hours in traffic (not to mention, car costs…)

#12 saskatoon on 01.03.16 at 6:07 pm

garth,

so far, only one youtube comment:

“Worst show so far those guests were crap!”

must be a desperate, r-selected 905 realtor.

#13 Hotdogs from Heaven on 01.03.16 at 6:08 pm

The fixation with being in a city…..
________________________________________

New immigrants, not just millennials, have also contributed to this trend.

——————————-

Perhaps, but in Toronto you should spend some time in Thorncliffe Park, Flemingdon Park, Regent Park, Lawrence Heights, and all the other tax payer subsidized housing neighborhoods.

They are filled with thousands upon thousands of immigrant families (NOT refugees) who simply cannot afford free market rents, let alone down payments and mortgages, maintenance payments, property taxes, insurance premiums and other home ownership costs.

The whole “immigrants will save our housing bubble” line of thinking just doesn’t wash with the facts on the ground in this city.

Spend time in the apartment jungles of outer Scarborough or North York. Those who do live in these free market apartments are doubling and tripling the families in a two bedroom apartment just to afford the rent.

Immigration to Canada is no longer the panacea that politicians and media commentators keep stating.

#14 GeorgeSoonToBeRetired on 01.03.16 at 6:10 pm

We heard some truly eye-opening tales this past week, enjoying a dinner with some friends and relatives, several of whom work in retirement homes in nursing and management positions.

It seems there is an unsettling increase in the last couple of years in the younger children of senior home residents trying to scavenge the wealth of their “beloved” elders.

Alerts are going out all over about financial elder abuse, lawyers are doing seminars on signs to watch for and staff are even being advised to watch out for thefts by children of residents.

Apparently a lot of these “kids” (millennials to boomer years) are also trying to get their folks to sign DNR orders and generally demonstrating that they just cannot wait for their elders to die so they can get a hold of their assets. Visits are actually declining as well, which sounds strange except that in this field it is generally accepted that seniors who remain closely connected to family members tend to live longer.

No, I’m not kidding. And these people who I spoke with work at high end retirement homes where accommodation costs more like a mortgage payment, and food and care is on top of that.

People are obviously responding to major financial pressures in their own lives, wishing to get rid of their parents like this.

Me, I’m staying at home forever. In the doghouse if I have to, with a couple of guard dogs trained to bite anyone under 75.

#15 ww1 on 01.03.16 at 6:12 pm

“By the way, here’s a year-ender I recorded for an online radio program. It’s Millennial-free.”

Garth starts talking at the 10:00 minute mark.

#16 Randy on 01.03.16 at 6:17 pm

#7 Love this Blog
Here’s an easy one…Boomers destroyed the education system and launched Cultural Marxism in Canada and the U.S.

#17 Smoking Man's Old Man on 01.03.16 at 6:22 pm

Often times set backs in life, whether health, relationship, financial, lead to re evaluations of what’s truly important in life.

That said,a monster real estate correction could be the impetus to put all these lost souls onto a more meaningful and rewarding direction in life.

#18 Smoking Man on 01.03.16 at 6:22 pm

#16 Randy on 01.03.16 at 6:17 pm
#7 Love this Blog
Here’s an easy one…Boomers destroyed the education system and launched Cultural Marxism in Canada and the U.S.
……………

100% true, and it sure as hell wasn’t me.

#19 Hope & Ruin on 01.03.16 at 6:23 pm

back to the millennial baiting…what was that 5 days?

I agree with two main points

and a big pent-up demand now for spouses, spawn and back yards.

It is sickening how desperate we all are to get married and have kids. ugh. cue freedom first diatribe.

have you ever encountered a sub-30 who wanted to live in the suburbs, drive a Kia Sedona and sell things for a living?

This is actually my worst nightmare. fair point.

#20 rob_s on 01.03.16 at 6:24 pm

we are in our very early 30’s, married with newborn.
detached house in in the 905
house paid off
shes a teacher and i am in IT
networth is 775k, but most is in housing approx 545k after commission 5% if i sold
the rest is in our db pensions (80k) and stocks (150k)

should i convince to sell house and rent or stay put and keep on track buying more stocks?

#21 Love this Blog on 01.03.16 at 6:30 pm

#16 Randy
What have you done, to ensure your own success??

Or are you just a helpless victim?

#22 common sense on 01.03.16 at 6:32 pm

Fully agree Mr. Turner with most moist ones wanting to settle in a city for lifestyle reasons but also to increase the chances of obtaining something called a “job”. If you want to work for Minimum wage, that is likely all you will find in most non urban Canadian areas. Add in the cost of rent if booted by the elders = a very low standard of living.

#14 George: My G/F works in an elder care facility as a nurse and also tells me similar horror stories. She also mentions frequently the nurse to patient ratio is usually below provincial standard and that Ontario is “very unprepared” for the boomer senior tsunami just beginning – lack of space, under funding, etc. I can only pray we all retain our physical, mental and financial health to pass like my 92 yr old parents did at home and on their own terms…

#23 dr talc on 01.03.16 at 6:36 pm

Emergency interest rates?
Can anyone prove the existence of an ’emergency’?
To the borrower there is no emergency

#24 Love this Blog on 01.03.16 at 6:38 pm

#16 Randy

What part have you played in your own life being such a disaster?? Such a failure?

If we are blaming generations (I am NOT a boomer, btw) what will today’s babies think of the mess the Millennials are creating? They are perhaps the most irresponsible, spoiled, entitled generation ever.

#25 dutch4505 on 01.03.16 at 6:43 pm

just watched “the big short”. great movie. best line was…….”we have to be in a housing bubble because wages are the same but houses are going up in price”

the scene with the stripper owing five houses and refinancing every few months was also classic.

I know my CDN friends will think that the movie does not apply to Canada, but……

#26 Smoking Man on 01.03.16 at 6:45 pm

Listened to the Gartho interview.

2 Points.

1 Positive, Garth has jumped on the Herdonomic track 6 emotion over fundamentals.

2 Negative. Climate Change proponent. Garth you have been around as long as me if not longer. Do you see a difference in the summer and winter vs 30 years ago..

I don’t

#27 For those about to flop... on 01.03.16 at 6:48 pm

Boss, what the bloody hell are you doing?
I just spent the last week putting Humpty Dumpty back together again and you come along and push him off the fence again.
Lucky my nifty GAP code will keep me safe and soundin this battle.

M41BC

#28 not 1st on 01.03.16 at 6:48 pm

While listening to Garth, a video of Gerald Celente was flashing on the side. Coincidence?

#29 Rook on 01.03.16 at 6:51 pm

Victoria BC
First time buyer here looking for financial wisdom. I actually don’t have anyone else to ask but you smart rich people on this blogs comment section. I trust you guys! At least more than my realtor.

My family is being booted from another rental house as it has been sold. Do I rent again or buy? What are some likely scenarios for the real estate market in Victoria?
I can rent an ok 3 bedroom for 2000.00 a month, none of which I am excited about moving into. Or I can buy a decent 3 bedroom and pay a touch more with property taxes and such. Plus we can’t get the boot and uproot the family yet again. I know, I know, unless we can’t afford it if interest rates hit 20%.
I understand mortgage fees will only go up from here, but in 5 years I can pay 1/10 of the house off with 2.5% interest as long as I am ready for 6 or 7% after my 5 year term.
Is there anything wrong with this logic? Am I going to be buying a 500,000 house that will be worth 400,000 in 5 years time?
Humbly asking your opinions,
rookie
(thanks for the bog Garth. i have been a decently smart saver since childhood but have never hear the no bs financial talk like this until my 30s. I’m not a 1%er but there is some wisdom to glean from some of the ones who are.)

#30 the Jaguar on 01.03.16 at 6:51 pm

#1 Randy and everyone else who is constantly blaming the boomers for your own miserable lack of initiative and creativity. -Every store or restaurant I walk into is playing boomer music. Apple sells its products with boomer nostalgia. Move the world forward in another direction if you can summon up the creativity, the style, the vision. Stop playing the ‘Blame Game’. What is the worst thing boomers are guilty of? That we ‘lucked out’ in the economic cycle? Could be that hard work and initiative played a role. How will clinging to your resentment about the time you were born advance your future prospects?
Interesting words that Garth wrote today ..” the fixation with being in a city…”. Hope everyone had their ears open as they read those words. They are important. Some people are going to be abandoning the cities in great numbers in the near future. Ask yourself who and why. And then measure the result. Who stayed behind and why. Who is now in charge.
Fasten up that seat belt…Bumpy ride ahead..

#31 Frank on 01.03.16 at 6:53 pm

DELETED (language)

#32 the Jaguar on 01.03.16 at 6:53 pm

Also, would appreciate it if Billy Bob checked in since we know he hangs out in Dubai and there was a fire.

#33 BC Guy on 01.03.16 at 7:06 pm

Why anyone would want to live in a large city is beyond me.

I couldn’t wait to get out of the city – car alarms going off day and night, dog excrement on the sidewalk and parks, crime (random stabbings, B+Es, gangs, smog, traffic, road rage, long commutes, parking hassles, endless red lights, parking tickets, speeding tickets, high auto insurance, high mortgage/rent, dog-eat-dog attitude, bums and homeless harassing me on the street, neighbours dogs barking and howling for hours at a time in the backyard, late night parties, everything is more expensive … to think people WANT to live in that environment and mortgage their life for 20 or 30 years. They are the real fools.

#34 nonplused on 01.03.16 at 7:06 pm

What’s wrong with a Vespa? Think of it as a started Harley. Although for my money I’d rather go with a Yamaha for 1/3 the price. Or a KLX 250. That’ll set you back as much as a Vespa but at least it’s sort of a real motorcycle. My wife has one and it is a blast to ride.

I live in a “rural” area and yet I’m only 10 minutes from the LRT which can take me straight to all my favorite sporting events. Or 2 work, if there ever is anymore work in this market forsaken town. So I’ll stick with the house concept for now, I think it’s just a way better lifestyle for my interests than a little box in the sky for almost as much money.

#35 I am the Babblemaster on 01.03.16 at 7:06 pm

“Will this continue, even as the era of emergency interest rates comes thudding to a conclusion?” – Garth

——————————————————-

Garth, why don’t you just give up?

December 16. — Garth

#36 Oakville Owner on 01.03.16 at 7:08 pm

905 is great for those that work locally as well! Can ride my bike to work everyday and back. Even manage to ride a bike while at work. Safest region in Canada many many years in a row thanks to HRPS and of course the local social economics of the area! While the millennial’s and boomers scrap it out I must say I am pleased to be a Gen Xer. Now if we can only get those preferred shares going in 2016!

#37 Eaglebay on 01.03.16 at 7:11 pm

Security

I’ve disconnected my home alarm system and de-registered from the Neighborhood Watch.
I’ve got two Pakistani flags raised in the front yard, one at each corner, and the black flag of ISIS in the center.
The RCMP, CSIS, the FBI, CIA, MI5, MI6, NSA, and other agencies are all watching the house 24/7.
I’ve never felt safer and I’m saving $49.95 a month.

#38 Entrepreneur on 01.03.16 at 7:13 pm

With everything going up in prices pretty soon there will be no point in buying a house. What is the point? Ever heard of living for the day, not worry about the past or the future. That is how we lived when younger; this is how the youth should live. If we can’t be free with our thoughts and lives than what is the point? Our “affluenza” leaders do not understand this concept.

I am interested in what #10 Retired Boomer said about “7 states don’t have income taxes” what states and must have other taxes. The leaders there were true to their words, no income tax after the war or what? Educate me.

So that is how the newcomers are handled, subsidized housing. Nice to know what and thanks #13 Hotdogs in Heaven. BTW, I will take seafood over hotdogs any day in heaven but isn’t heaven and hell created by mankind/humans?

GT1, love the blog but don’t be so down on the NDP.

#39 crossbordershopper on 01.03.16 at 7:16 pm

spent new years week in st john’s newfoundland. everyone still has the f150 truck ,the beautifull canada goose jacket, nice boots etc.
except that they are unemployeed, on ei, and when that runs out, the economy will collapse.
no one has any spare change, these oil guys made big money for a good number of years, and saved nothing, and now, its payback, the good wages will never return and soon they will start returning all the toys that went with it.
i am so happy i am poor, never had a good job, never will like my millions of friends. its ok trudeau will give me enough to eat in my apartment till i die.
like millions of other people, so go to work tomorrow and be happy, yes you will not be farther ahead in 2016, but hey millions are not working.

#40 Hope & Ruin on 01.03.16 at 7:22 pm

#34 nonplused on 01.03.16 at 7:06 pm
What’s wrong with a Vespa?
_________________________________

for people who are too scared ride a motorcycle and too lazy to pedal a bicycle.

#41 not 1st on 01.03.16 at 7:22 pm

The interviewer asked Garth the same questions he gets so mad about on the blog every night, yet he was so nice to the interviewer. What gives?

I knew it wasn’t you. — Garth

#42 Washed Up Lawyer on 01.03.16 at 7:25 pm

Hon. Sultan of Sagacity:

Nicely done today, both with today’s blog and the interview on This Week in $$$.

A budget tip for Albertan’s facing austerity in the nadir of our provincial economy. Skip the 2016 tickets for the Greatest Show on Earth (the Cowtown Stampede) and if you have a hankerin’ for a rodeo, attend the Ponoka Stampede. A week before Stampede, the same rough stock and the same cowboys. And with the cozy setting, you can smell the dust, sweat and fear.

Finally, when you reach the end of your rope, tie a knot in it and hang on.

Yours,

Washed Up Cowboy Poet

#43 tundra pete on 01.03.16 at 7:27 pm

Oh no, not my little Johnny. He is such a good little child. I taught him myself. I even attended his last job interview. Every day I made him that special microwave dish that he loves so much. Aww so cute to see how he opens that package every day when I pull it out of that microwave oven.

So happy I got him that new bike with those big tires on it. Now I know it’s him when I drive by Timmy’s because it’s that special color. I sure hope he’s not late when we meet at the bank so I can give him the deposit for his new condo…………

#44 Leo ToiletSpray on 01.03.16 at 7:35 pm

Nobody seems to have said anything when the loonie soared from 63 cents $1.05, because an appreciating currency is good for consumers purchasing power. But when it comes the trend reversing and heading back down to make new lows, they argue that can’t happen, when it always has.

Thanks for proving my point. Your link clearly showed that the CADUSD doesn’t spend much time below 70 cents. Thanks. I have a new nickname cuz I read it from a poster on here and really liked it so I took it. Haha it’s great. I have 2 favourites now.

#45 Ray Skunk on 01.03.16 at 7:36 pm

(On a side note, I’d be happy to give a comment in your blog about CRA auditing real estate in Toronto. CRA is capitalizing big time on the increase in the real estate market in Toronto)

Well Jason, don’t keep us in suspense. I, for one, would love to hear the stories, feel free to comment away.

As for millennials choosing the cities – it’s not 100% always their choice in fairness. Many employers (mine included, I’m sorry to say) will only choose a downtown location because of the perceived “prestige”.
Here in Ontario add to that the Liberals strategy of rewarding Toronto with investment and PS jobs (see election results for the ROI) while at the same time skipping investment in gridlocked roads and woeful transit options.

There are decent paying jobs outside the city, but they’re few and far between. Choosing the suburbs and communing in is a pain that only gets worse (GO fare hikes, HOT lanes coming, etc.).

As my employer grows in size, I continue to keep my finger on the pulse of opportunities outside this province. Being liquid and debt-free will allow me to seize upon them. I just hope the CAD can somewhat recover for when I decide to abandon ship.

#46 Vundo on 01.03.16 at 7:36 pm

More vibrant neighbourhoods, better health from walking/biking more, less time wasted on the commute, money saved on maintenance and fuel (on which levies and carbon taxes will only increase)… yeah, what a weird fixation those millennials have.

#47 prairie person on 01.03.16 at 7:37 pm

League Assets Corp., developer of Colwood’s Capital City Centre project, declared bankrupt

#48 Love my Kia on 01.03.16 at 7:38 pm

#37 Eaglebay
************************************
Another suggestion, since I live with several cops on my cul de sac, I named my wifi router ‘methlab’. I also cancelled my security system. Never felt safer.

Garth, go easy on the KIA drivers, I could go more upscale but choose to put my money in maxing my TFSA.

Big difference between being rich and living rich. Only a few have both.

#49 james on 01.03.16 at 7:38 pm

Good lord, a financially savvy lawyer in Toronto. After teaching in two GTA law schools for a few years I had lost all hope. Most of my students could barely write a sentence without a grammatical error, let alone tie their shoes.

He is doing very well for his stage of life, and he is lucky to land a law job that pays decent money. Articling spots and positions in big firms are getting more difficult to find. Canada is following the USA and Australia in that regard.

I note that salaries for teachers in Ontario just eclipsed salaries for lawyers. GTA average salaries for lawyers are 206k Canadian, last I checked. Better than the rest of the province, but that is average. High rollers pull that up. The median is lower, and you are talking 60+ hours a week.

My advice would be to save as much as he can. As someone with some insight, I can say with certainty that there are changes coming to this profession. Save now, because your best wage earning years are likely now. I would not want to be doing process or transactional work in law with a 100k debt hanging over my head in 5 years time.

#50 cheekybugger on 01.03.16 at 7:41 pm

“On a side note, I’d be happy to give a comment in your blog about CRA auditing real estate in Toronto. CRA is capitalizing big time on the increase in the real estate market in Toronto” – Really ? This is beyond pathetic !

If one’s Principal residence increase in value responding to market conditions, what is CRA Auditing going to do to it.

Stop fear-mongering and dispense some reality for a change. Stick to dogs, to whom you can speak of with more authority.

A current CRA project is hitting people selling ‘principle residences’ after an insufficient period of ownership, or who are flipping investment condos and claiming capital gains which should be income. Your comment displays ignorance as well as stupidity. A rare combination. — Garth

#51 Leo ToiletSpray on 01.03.16 at 7:43 pm

Second, this is a group which decided to spend 85% of its collective life so far in school, which meant delayed financial adulthood

I can see the financial usefulness of one post-secondary degree. Maybe. But 2 would be just stupid. Thankfully these people will realize how little the economy cares. Reality always punishes the dumb.

#52 Leo ToiletSpray on 01.03.16 at 7:46 pm

Thus we’ve seen prices in the 416 or inner-604 rocket ahead of the rest of the regions, reaching a new and unparalleled level of unaffordability

No kidding. Price of real estate in these two godless cities have increased for far far too long. It’s time for a reckoning. Please.

#53 Daisy Mae on 01.03.16 at 7:50 pm

#1: “Boomers created a lot of problems for everyone.”

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

Beg to differ. Take ownership of your own stupid decisions. Everyone created their own problems….

#54 Washed Up Lawyer on 01.03.16 at 7:51 pm

Mr. Turner says:

“a big pent-up demand now for spouses”
***********************************

Why has my spouse listed on “Ft. McMurray Kijiji Spouses For Sale or Rent” drawn no bids???

#55 Bram on 01.03.16 at 7:52 pm

#20 rob_s on 01.03.16 at 6:24 pm
should i convince to sell house and rent or stay put and keep on track buying more stocks?

I would stay.
Getting out of real estate is costly, as agents, lawyers and governments want their share.

Those costs may be larger than the market-correction that may be in store for us.

You’re pretty much set as is, with a paid off house anyway. Just slowly build up a stock portfolio. TSX is pretty cheap at the moment.

Bram

#56 Leo ToiletSpray on 01.03.16 at 7:52 pm

We will probably be selling our within the next 24-36 months as it no longer fits in with the retired boomer’s desires.

Good luck with that. Will believe it when it happens. Boomers never sell houses. It’s in their genes to hang on to the house until they die.

#57 not 1st on 01.03.16 at 7:53 pm

So let me get this straight, in the interview you chastise people for only investing in Canada, yet the TFSA was created just for that purpose and its likely to be the only investment vehicle joe public is ever going to have.

Are we supposed to give up a portion of the tax free growth just to stick in some american equities?

Learn the rules. TFSAs are not maple-only. — Garth

#58 Entrepreneur on 01.03.16 at 7:54 pm

GT1, love this blog but don’t be do down the NDP3, they are the least of three evils.

Blogger on here asked what does T2 mean, well, it means Trudeau the second, father the first, but has to be the same & the middle also but on this blog anything goes, within reason.

When to use “a” or “an” in front of a noun: use “a” in front of an consonant noun and “an” in front of a vowel but only if it sounds right (that sounded like that commercial). Say it out loud and hear it but if it does not sound correct use the a instead of an. Correct if wrong.

Want to raise my glass to a few dog blogs that backed me up, much appreciated.

#59 Leo ToiletSpray on 01.03.16 at 7:57 pm

#20 rob_s on 01.03.16 at 6:24 pm

IT and teaching. Two of the best professions. Kudos on your success.

#60 prairie person on 01.03.16 at 7:58 pm

Victoria assessments are out. Can’t make any sense of them. Some down a lot. Others up a lot. All in the same neighbourhood. Mine went up 7%. I guess the new steps and railings did it because my neighbours all went down. The 7% boost brings the house back to what I paid for it. If I sold, I’d be short the realtor’s fee plus the 50k I put into repairs, not upgrades. Bought in 2010.

#29 Rook I think it was asked about buying a house. A house three houses over has just come on the market, no sign, private sale. It might be a deal but I have no idea what they are asking. There are lots of possible private sales around but you have to sort through a lot of material to find them. Lately, houses that go up for sale are sold within a week.

#61 Randy on 01.03.16 at 7:58 pm

#21 Love this Blog on 01.03.16 at 6:30 pm
#16 Randy
What have you done, to ensure your own success??

Or are you just a helpless victim?
——————————————
Haha…I’m a Boomer retired, successful and all cooled out…Never was a victim….Watching the show….More popcorn please.

#62 kommykim on 01.03.16 at 8:00 pm

RE:

The fixation with being in a city, ideally within hoofing or biking distance of work

You’ve said in the past that the most precious thing in life is time. Why waste your time commuting if you hate it? From a purely financial perspective how many extra cars, insurance, maintenance, and gas would you buy if you lived in the burbs vs close to work? Over a lifetime career, it’ll make 100K look like chump change.

#63 Leo ToiletSpray on 01.03.16 at 8:01 pm

The children now love luxury. They have bad manners, contempt for authority; they show disrespect for elders and love chatter in place of exercise. – Plato

We’ve been criticizing younger generations forever. Get over it. Same crap different century.

#64 Leo ToiletSpray on 01.03.16 at 8:05 pm

I know my CDN friends will think that the movie does not apply to Canada, but…

Are Canadian mortgages of mixed credit quality being packaged and sold? Are CDOs being created from packaged of mortgages don’t sell? Are people investing in synthetic Canadian synthetic CDOs? Let me know.

#65 Millenial on 01.03.16 at 8:14 pm

A day will soon come when you won’t have to worry about much traffic in the GTA.

#66 For those about to flop... on 01.03.16 at 8:21 pm

Leo Toiletspray ,I knew I should have put a (TM) on that like the Metrosexual Messiah( TM)
Anyway I’m glad you thought it was funny.
You just made me laugh at my own stupidity.
Cheers,no hard feelings.

M41BC

#67 Ernie on 01.03.16 at 8:23 pm

#24 Love this Blog on 01.03.16 at 6:38 pm

#16 Randy

What part have you played in your own life being such a disaster?? Such a failure?

If we are blaming generations (I am NOT a boomer, btw) what will today’s babies think of the mess the Millennials are creating? They are perhaps the most irresponsible, spoiled, entitled generation ever.
_____________________________________________
It is not only the millennials to blame , the boomers are just as much to blame. I am a Boomer . What I see happening in my cohort is mind boggling stupidity, so much importance on toys , travel and endless spending on CRAP!
“You can never underestimate the stupidity of the general public”.
Scott Adams

#68 Leo ToiletSpray on 01.03.16 at 8:26 pm

I know my CDN friends will think that the movie does not apply to Canada, but…

Are Canadian mortgages of mixed credit quality being packaged and sold? Are CDOs being created from package of mortgages that don’t sell? Are people investing in Canadian synthetic CDOs? Let me know. Otherwise it doesn’t really sound the same.

#69 gladiator on 01.03.16 at 8:27 pm

I had to google this mio thing
http://blog.fooducate.com/2011/04/11/oh-my-mio-water-flavoring-has-nothing-real-in-it/

At 38 years of age, I will stick to my Berkey with charcoal and activated alumina filters, and with alkalizing stones plus 3 bars of pure silver in the lower tank, thank you very much. I guess I’m old school. No fun in my water…

#70 lee on 01.03.16 at 8:28 pm

Isn’t the gain on a condo capital gain if it was rented to a tenant throughout?

Depends on the length of time and CRA’s attitude. — Garth

#71 fancy_pants on 01.03.16 at 8:29 pm

A liberal is someone who feels a great debt to his fellow man; a debt he proposes to pay off with your money.

#72 The kids - Realties.ca on 01.03.16 at 8:33 pm

[…] Source: http://www.greaterfool.ca/2016/01/03/the-kids/ […]

#73 A box in the Sky on 01.03.16 at 8:42 pm

Come on Garth, you live here too.

You know there’s a way more enjoyable lifestyle to be had in a good neighbourhood within the city of Toronto then to live in some soulless subdivision north of Highway 7 where it takes a 10 minute drive to get to the nearest generic outdoor mall.

It’s no surprise people would pay a premium for it.

#74 For those about to flop... on 01.03.16 at 8:46 pm

Just about to watch the warts and all documentary on Steve Jobs on CNN for anyone interested.

#75 46 and 2 on 01.03.16 at 8:56 pm

Without a swing producer Calgary and in fact all of Alberta is screwed. Throw in the Notley clowns and the “leader” with great hair adding uncertainty to uncertainty and you may well see the perfect storm of total financial ruin.

#76 Big Dipper on 01.03.16 at 8:58 pm

#26 Smoking Man on 01.03.16 at 6:45 pm

” Garth you have been around as long as me if not longer. Do you see a difference in the summer and winter vs 30 years ago..

I don’t”

————————————-

Considering the amount of brain damage you must have suffered I doubt if you’d remember yesterday’s weather.

#77 For those about to flop... on 01.03.16 at 9:00 pm

Actually the true story is I used Toiletspray a few months ago when we were arguing and when I went to write your name last night my spellchecker kept changing Trollstoy to Toiletspray.
So I let it ride…

M41BC

#78 Jonathan on 01.03.16 at 9:01 pm

A current CRA project is hitting people selling ‘principle residences’ after an insufficient period of ownership, or who are flipping investment condos and claiming capital gains which should be income….

Garth

__________________________________

Quite true, Garth.

Some friends of friends are a couple in Toronto, and they bought a house to rent out a few years back, and took in some nice income through a rental agency while they lived elsewhere, never in the house they bought.

Then they decided to sell, cashing in on several hundred grand in appreciation. They decided they would not declare this as capital gains to the CRA, and their rental agency did not have the smarts to tell them that you actually have to LIVE in a property like this for a reasonable period of time in order to ever attempt a principal residence exemption on any gains.

I have attempted to pass on this info about the trouble they will be in, but they seem to think everyone does it and they will get away with it. Or maybe they are hiding and sweating it out.

Meanwhile, the rest of us pay our taxes and can shelter less in a TFSA!

Now what’s that CRA tipline number again………..?

#79 not 1st on 01.03.16 at 9:07 pm

Garth, going back to your el predicto post, you missed the US recession;

http://www.businessinsider.com/chicago-pmi-dec-2015-2015-12

“The Chicago purchasing manager index unexpectedly plunged to 42.9 in December, its lowest reading since July 2009.

Any reading below 50 signals a contraction in business activity.”

No recession. — Garth

#80 Rebecca on 01.03.16 at 9:08 pm

Count me in as a Millennial who hates commuting. Time is far more limited and precious than money. I pay a premium to rent in downtown Vancouver and walk to work, and in exchange I have no worries about Skytrain breakdowns or car insurance, plus hours more to spend on personal or career advancement. Money very well spent.

#81 logical fallacies on 01.03.16 at 9:16 pm

You either

a) accept the power of statistics, average (all required for the concept of balanced portfolio)

b) accept the bashing of a generation, as a group

Successfully being able to fit both in your head is a sure sign of intellectual defect.

#82 SI2K on 01.03.16 at 9:19 pm

I don’t know about all this urban millennial prognosticating. A good portion of we Gen X were the same at thirty with regards to urban lifestyle and professions. Now we’re very lonely downtown and leaving, also, in June. Babies in 900 square feet with the entire rec system under paywall or waiting lists is a nightmare, and our child care system causes any urban professional family making under $120K to flee in terror. Also, the TDSB is horrendous compared to York, Halton or Peel. Either millennials will stop having kids (a la Japan) or they’re out of here en masse in five years. Could go either way, imo.

#83 BG on 01.03.16 at 9:22 pm

I can relate 100% to people not wanting a long commute.

I grew up in some sketchy suburb of Paris.

Using public transportation:
-Paris center: 45-60 min.
-University in another suburb: 1h15
-Work (after completing Uni): 1h15

The car was useful to travel within the suburbs, but driving through Paris was always long and an unpleasant struggle against other drivers in the traffic.

My suburb itself didn’t have much for entertaining the young. If you wanted to hang out in a proper bar/pub, you either had to go to Paris or some nicer suburb. Everything felt so remote, I hated that.

Now here in Montreal one of the things I love is you can find affordable housing in the downtown area.
When the weather does not forbid it, I walk to work in 20 mins.
I live in a quieter area “almost” downtown which gives me proximity without most nuisances.

So I guess in that department, I’m not too different from the average Millennials.
In my opinion, this trend is not going away soon.

I am a renter though. I pick my apartments very carefully, and always underpriced. Then rent control keeps it that way.

#84 don astill on 01.03.16 at 9:26 pm

Not First, I think the U.S might already be in recession.

#85 Retired Boomer WI on 01.03.16 at 9:29 pm

#38 Entrepreneur

The U.S. states currently with NO Income Taxes are:

Alaska (this may change shortly oil revenue is off)

Florida

Nevada

South Dakota

Texas

Washington

Wyoming

In addition Tennessee and New Hampshire do not tax “earned” income, both do tax Dividends, and Interest.

Some of the above states have higher sales taxes, higher property taxes, or ‘sin’ taxes to make up for the lack of a specific income tax.

M64WI

#86 Smoking Man on 01.03.16 at 9:30 pm

Just noticed the devil child pic.

My wife has the same look when I’m at Southside Johnnys and say ill be home in 10 minutes that turns into 2 sometimes 4 hours.

Love that place, rich, poor looking biker dudes, with poor well dressed bull shitters.

And hyper friendly chicks. Always…..

#87 lee on 01.03.16 at 9:31 pm

#71,

This is the problem with the CRA: it keeps moving the goal posts. Then when it loses it changes the rules.

#88 Big Dipper on 01.03.16 at 9:31 pm

Garth – editor of an extremely popular blog. I listened to the on-line interview. Your comment that JT has not yet initiated any economic policies was puzzling. Tax Policies are kind of economic policies and the Liberals have done plenty – very quickly. Obviously, not that you liked many…

The $10k TFSA was pre-election grand standing by the Cons. Served no purpose except to kiss up to high income earners and some Financial Advisers. Even fiscal conservatives saw it for what it was.

The upcoming middle class TAX CUT seems to be completely overlooked by those fawning over millionaires and Laffer curve believers.

The increase of house purchase down payments is an attempt to do something where the previous government failed miserably. I think you approve – maybe.

Here’s the shocker. I believe you approved of turning back the insane GST reduction to 7%! If so, I completely agree with you. The sooner the better.

#89 Smoking Man on 01.03.16 at 9:34 pm

Weird open on oil and fx, oil gaps up on Saudi, Iran shit. Then crashes, on no volume, USDCAD up about a cent since open.

Tomorrow will be wild. Tired of looking at it. Time for a drink.

#90 Smoking Man on 01.03.16 at 9:39 pm

#87 lee on 01.03.16 at 9:31 pm
#71,

This is the problem with the CRA: it keeps moving the goal posts. Then when it loses it changes the rules.
..

I need one big year, 10 to 20 mil. Ill cash it out, move it, and myself, take a selfie of my ass, and file it as my tax return.

If usdcad goes to 1.5 this will be the year of the middle finger.

Until then, I’m not stupid, I pay, and hate it..

#91 IHCTD9 on 01.03.16 at 9:40 pm

#46 Vundo on 01.03.16 at 7:36 pm
More vibrant neighbourhoods, better health from walking/biking more, less time wasted on the commute, money saved on maintenance and fuel (on which levies and carbon taxes will only increase)… yeah, what a weird fixation those millennials have.
———–

Well, quite a few neighbourhoods in the GTA that are in the typical millennial budget I’ve been through fall well short of “vibrant” IMHO. A more accurate “V” adjective might be “Vile”. I am also not sure how healthy hiking through a cloud of exhaust fumes, or that ever present brown smog stuff that hangs over the city can be…

#92 45north on 01.03.16 at 9:47 pm

Randy: talking about the problems the boomers have created: Boomers destroyed the education system and launched Cultural Marxism in Canada and the U.S.

guilty as charged There was a steady erosion of the authority and respect given to the teachers. Thank God I was not one. When I went to high school the teachers had the authority to punish and reward. this authority was taken away slowly but steadily. Teachers had their careers, their salaries and their pensions. Some like my father quit in frustration but most stayed.

Your perception is correct and gives you an advantage.

#93 paul on 01.03.16 at 9:49 pm

#78 Jonathan on 01.03.16 at 9:01 pm

A current CRA project is hitting people selling ‘principle residences’ after an insufficient period of ownership, or who are flipping investment condos and claiming capital gains which should be income….

Garth

__________________________________

Quite true, Garth.

Some friends of friends are a couple in Toronto, and they bought a house to rent out a few years back, and took in some nice income through a rental agency while they lived elsewhere, never in the house they bought.

Then they decided to sell, cashing in on several hundred grand in appreciation. They decided they would not declare this as capital gains to the CRA, and their rental agency did not have the smarts to tell them that you actually have to LIVE in a property like this for a reasonable period of time in order to ever attempt a principal residence exemption on any gains.

I have attempted to pass on this info about the trouble they will be in, but they seem to think everyone does it and they will get away with it. Or maybe they are hiding and sweating it out.

Meanwhile, the rest of us pay our taxes and can shelter less in a TFSA!

Now what’s that CRA tipline number again………..?
———————————————————-
Boy with friends like you?

#94 vic guy on 01.03.16 at 9:50 pm

You boomers screwed this planet up.
The sooner you admit it, the better.
We might have mercy and continue to fund MSP.

#95 BS on 01.03.16 at 9:54 pm

Leo ToiletSpray on 01.03.16 at 8:26 pm
I know my CDN friends will think that the movie does not apply to Canada, but…

Are Canadian mortgages of mixed credit quality being packaged and sold? Are CDOs being created from package of mortgages that don’t sell? Are people investing in Canadian synthetic CDOs? Let me know. Otherwise it doesn’t really sound the same.

That is just financial engineering to give mortgages to people who should not have them. In Canada we have CMHC. There are some differences but still both are a credit bubbles which have caused similar bubble prices for housing. The end result will be the same.

The US had many advantages compared to Canada to mitigate the crash such as mortgages were not at 2.25% during the peak and they had the lever to lower rates as the bubble deflated. Tough to do in Canada now when we are already near 0% and the US is heading the other way. The US also had fixed 30 year rate mortgages where in Canada almost all mortgage rates are locked in for 5 years or less or even worse many are variable.

Bubbles always go back to where they started pre bubble. Same as Japan did, same as Spain did, same as Iceland did, same as Ireland did. None of those were identical except for the bubble pricing part and the correction part.

#96 Smoking Man on 01.03.16 at 9:56 pm

Magic bus

http://magicbussf.com/

#97 IHCTD9 on 01.03.16 at 9:58 pm

#49 james on 01.03.16 at 7:38 pm
Good lord, a financially savvy lawyer in Toronto. After teaching in two GTA law schools for a few years I had lost all hope. Most of my students could barely write a sentence without a grammatical error, let alone tie their shoes.

He is doing very well for his stage of life, and he is lucky to land a law job that pays decent money. Articling spots and positions in big firms are getting more difficult to find. Canada is following the USA and Australia in that regard.

I note that salaries for teachers in Ontario just eclipsed salaries for lawyers. GTA average salaries for lawyers are 206k Canadian, last I checked. Better than the rest of the province, but that is average. High rollers pull that up. The median is lower, and you are talking 60+ hours a week.

My advice would be to save as much as he can. As someone with some insight, I can say with certainty that there are changes coming to this profession. Save now, because your best wage earning years are likely now. I would not want to be doing process or transactional work in law with a 100k debt hanging over my head in 5 years time.

———

I was reading that a massive slice of family and civil court cases are going unreprepresented in Ontario these days.

I was reading up on this after a customer of mine mentioned his lawyer son was still living at home trying to pay off debt. He said the same as you, more and more lawyer positions are paying less and less these days.

Same plight engineering folks in the GTA have been facing for a while now. Way too many domestic and especially foreign engineering grads out there compared to the jobs available. They’ve collectively accepted engineering positions for less and less compensation for a decade minimum, so far that even 5 years ago I worked alongside a couple Chinese immigrant engineers who were making about the same wage as a janitor at a public school – and these guys had [chinese] masters degrees.

I’ll say it again, try to coerce your kids into an education suitable for being hired into the public service, and maybe get them into French immersion to that end.

#98 BS on 01.03.16 at 10:03 pm

lee on 01.03.16 at 8:28 pm
Isn’t the gain on a condo capital gain if it was rented to a tenant throughout?

A lot of it depends on intent. If you intended to flip it in 6 months the tenant would be irrelevant. Intent is hard to prove one way or the other. With CRA it is up to you to prove your case for the taxation level claimed. In other words you are guilty until you prove you are innocent. Anyone with a history of several RE transactions will be screwed.

#99 Neo Anderson on 01.03.16 at 10:06 pm

I wonder if there are any Mr Money Mustache followers on this blog. I think if you head over there, you would see a lot of Millennials living below their means. That blog in combination with this blog is just pure gold.

#100 Smoking Man on 01.03.16 at 10:07 pm

DELETED

#101 conan on 01.03.16 at 10:07 pm

Oil could spike over the next few weeks as Iran and Saudi Arabia consider just how much they hate each other.

Add in the “divine vengeance” thingy and markets could get interesting in a hurry.

#102 NoName on 01.03.16 at 10:08 pm

Interesting Read NYT

http://goo.gl/lvo72O

At the other end of the age spectrum, doctors increasingly see children in early elementary school suffering from migraine headaches and ulcers. Many physicians see a clear connection to performance pressure.

“I’m talking about 5-, 6-, 7-year-olds who are coming in with these conditions. We never used to see that,” says Lawrence Rosen, a New Jersey pediatrician who works with pediatric associations nationally. “I’m hearing this from my colleagues everywhere.”

#103 Jonathan on 01.03.16 at 10:18 pm

#93 paul

Meanwhile, the rest of us pay our taxes and can shelter less in a TFSA!

Now what’s that CRA tipline number again………..?
———————————————————-
Boy with friends like you?

___________________________________________

LOL, paul!

Actually, I only know the first names of this third couple, so won’t be calling CRA myself. This time, anyway ;)

On the other hand, we should all think about this common form of tax evasion. You or I make $100K, and we’ll probably pay close to $20-35K in tax, maybe more depending on whether it’s income or cap gains.

So why should OUR taxes be so high, yet our neighbouring real estate flippers who never live in a house lie to the government (which is really all of US, btw) and get away with paying ZERO taxes on huge gains over the last few years especially?

I have no sympathy for under the table operators whatsoever. They are tax criminals.

Real estate flippers who do not pay proper and full capital gains taxes as required are f’ing federal CRIMINALS and should be treated as such!

Just like drug dealers, thugs, child molesters, you name it!

Period.

Take everything they’ve got, throw ’em in jail, I say.

BTW – the CRA tipline info is here:

http://www.cra-arc.gc.ca/gncy/nvstgtns/lds/tll-s-eng.html

As citizens, we should ALL be using this link to report illegal tax evasion.

I am paying MY taxes only, not anyone else’s, thanks!!!

#104 Smoking Man on 01.03.16 at 10:28 pm

#100 Smoking Man on 01.03.16 at 10:07 pm
DELETED

Why do every other deletes get an explanation.

Not me, I get just a delete. No explanation..

Please give me some respect like you give the others

Just go with…

Crazy bastard, or Drunken loser, can’t read what he wrote.

Something God damn it.

But to have the houner of a delete, no explanation is mind fking me.

#105 Jonathan on 01.03.16 at 10:29 pm

P.S.

I forgot to add:

In reporting real estate flipper tax fraudsters, as Garth has suggested, there will be many cases in which the unreported gains will actually be considered income, not even capital gains. (Some of these idiots never even properly declare the rental monies as income, either)

So, much more tax will actually be owing by these criminals, to all of us. Quite possibly, the rest of us might have to pay less. Or the debt gets paid down faster. Or various combinations of things.

Just think of the BILLIONS that have already been criminally stolen from our society in jut the past few years, by real estate flippers evading taxes illegally!

Some of them are people you know. Are you really willing to let them continue to do that, while your taxes may go higher, while you can shelter less in your TFSA and they scam tens of thousands in unpaid taxes on flipping houses and condos?

This is a HUGE criminal enterprise going on across this country, and needs to be stopped.

#106 Herf on 01.03.16 at 10:32 pm

“Millennial-free”

You should trade-mark that moniker and then sell it so it can be stamped on anything and everything the boomers might buy from a store or online. You could start with stuff from Best Buy.

#107 Nanaimo Bar on 01.03.16 at 10:33 pm

Just my opinion

Oil to $28.00
USA/CAN to 1.4300

#108 jane 24 on 01.03.16 at 10:36 pm

We lived in TO in the 1980’s until children came along. We then moved to one of the great small towns in Ontario that was big enough to have everything including jobs. Never looked back at TO as we had all the city privileges such as walking to work and going to the movies but at small town prices.

Kids grew up wandering anywhere without supervision as all very safe. It was a wonderful childhood for them. Sort of living a 1950’s life in the 1990’s. Try it.

#109 OXI in GREECE on 01.03.16 at 10:39 pm

6 weeks later…no let up in “dem wires” from foreign buyers in Holecouver……but of course there is no HAM.

#110 Smoking Man on 01.03.16 at 10:42 pm

The attack on the individual. That Steve Jobs, that Donald Trump, the Rob Ford.

How will history judge us…

Concesus = community = communism…

Usless gangs unleashing vengeance on the individual. The one that carries every one…

You are doomed. Atleasd you can all hold hands on the way down

#111 rob_s on 01.03.16 at 10:52 pm

thanks Bram thats what i plan on doing

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

#20 rob_s on 01.03.16 at 6:24 pm
should i convince to sell house and rent or stay put and keep on track buying more stocks?

I would stay.
Getting out of real estate is costly, as agents, lawyers and governments want their share.

Those costs may be larger than the market-correction that may be in store for us.

You’re pretty much set as is, with a paid off house anyway. Just slowly build up a stock portfolio. TSX is pretty cheap at the moment.

Bram

#112 Chad on 01.03.16 at 10:52 pm

#68 Leo ToiletSpray on 01.03.16 at 8:26 pm
I know my CDN friends will think that the movie does not apply to Canada, but…

Are Canadian mortgages of mixed credit quality being packaged and sold? Are CDOs being created from package of mortgages that don’t sell? Are people investing in Canadian synthetic CDOs? Let me know. Otherwise it doesn’t really sound the same.

———

Canada is not exactly the same as the USA however expanding credit to more people by reducing the % needed for a down payment and falling interest rates have caused housing values to go to bubble territory compared to income and rental yields.

#113 Paul on 01.03.16 at 10:52 pm

103 Jonathan

It was you that said they are/were your friends.
Your sound brave I hope you let them know it was you that dropped the dime on them.
But I doubt it!

#114 Smoking Man on 01.03.16 at 11:03 pm

Took this from a new found hero, I didn’t know existed till I found this blog.

The Edge… there is no honest way to explain it because the only people who really know where it is are the ones who have gone over.

I hate to advocate drugs, alcohol, violence, or insanity to anyone, but they’ve always worked for me.
Buy the ticket, take the ride.

#115 Exurban on 01.03.16 at 11:17 pm

Boomers have messed up a lot and their cultural nostalgia is beyond tiresome, but they are often blamed for stuff they didn’t do. Most of them weren’t eligible to vote at all until the mid-1970s, and they didn’t have a serious effect on politics until the 1980s. The disastrous political decisions of the 1960s and early 1970s were made by previous generations.

Disclosure: I was born in the mid-1950s and was first eligible to vote in the 1975 B.C. provincial election. By 1980 I was totally fed up with 1960s nostalgia and what was then known as the “counterculture”. So were a lot of other people. If you’re 30 years old and you’re tired of Boomerstuff … how do you think we feel?

[…]

If it’s the main ingredient or it’s related to money, the spelling is principal. If it’s related to ethics or abstract thought, the spelling is usually principle. Principal residence, principles of tax law, principal on a loan, the Peter Principle, high school principal, it went against his principles …

Until the Millennials invented auto-correct. — Garth

#116 vic guy on 01.03.16 at 11:29 pm

#105 Jonathan

You are a Rat…sure glad you ain’t my friend.
I’m not even a house flipper or landlord…turn coat!

#117 crazed and a little confused on 01.03.16 at 11:30 pm

hi garth,

long time reader of your blog , I rarely post. I still haven’t bought property since 2008 but so the housing pumpers are just snickering away. but in my defense I went to school got a business degree and had to deal with a severely broken leg…. however I did listen to you in some parts and bought my stocks in about 80 % in $US since 2010 onwards and mostly blue chip
ya know, Pfizer GE , MCd and starbucks sold earlier
some other oil and gas.
so financially I doing not doing to bad I had about 60 k in 2004 to over 300k RRSP , TFSA, GICs and stocks now . it hard to say exactly because I did not covert every dollar from US to CAN. thank you CAn fed dropping % rates

I can explain my why and how i choose those stocks but people only what to hear about real estate in the lower mainland. they know what appraisers and surveyers are . but cant understand ETFs or REITs or a bond index fund

so I guess you can admit your wrong about real estate in YVR not because of foreigners or yellow peril but simply BC ers are just crazy . no one does math here or cares

#118 lee on 01.03.16 at 11:33 pm

Ihctd9,

When you add pension contributions teachers out earn lawyers on average even more. Look at the Alberta sunshine list where all non-taxable benefits like pension contributions are included. You’re hard pressed to find a teacher earning less than $130000 on the list. In Ontario the salary you see on the list needs to be grossed up by about 30 percent to get the total money paid to the teacher or into a pension or benefit plan on their behalf. So a teacher earning $110000 is really earning $143000. All in 9 months a year of work working half days. There is shortly a rebellion on our hands when Wynne no doubt gives teachers a “catch-up” raise before the next election or is forced to pay Billions into the pension plan to make up a shortfall in funding.

#119 crazed and a little confused on 01.03.16 at 11:37 pm

PS My RRSP are all self directed …awesome

#120 Jaymo on 01.03.16 at 11:39 pm

Urban huh? Just wait for those Millennials to have a nagging partner and two or three screaming kids all living together in a micro-loft or a 500 square foot rubber room. The Burbs will not seem to be all that bad.

#121 Herf on 01.03.16 at 11:39 pm

#78 Jonathan

“Now what’s that CRA tipline number again………..?”

From CRA’s web site:

http://www.cra-arc.gc.ca/gncy/nvstgtns/lds/menu-eng.html

How to report suspected tax evasion

You can report suspected tax evasion over the Internet or by contacting the National Leads Centre. Your identity will not be disclosed and you may provide information anonymously.

Privacy notice:

http://www.cra-arc.gc.ca/gncy/nvstgtns/lds/prvcy-eng.html

What to tell us:

http://www.cra-arc.gc.ca/gncy/nvstgtns/lds/tll-s-eng.html

By Internet:

Report suspected tax evasion online:

Before you start:

https://apps.cra-arc.gc.ca/ebci/bscs/l3adz/internet/initial.do?target=login&lang=en&program=qa

Submitting a lead:

https://apps.cra-arc.gc.ca/ebci/bscs/l3adz/internet/decision.do

By phone, mail or fax:

Tel.: 1-866-809-6841 (toll free)
Fax: 1-888-724-4829 (toll free)

Office hours: 8:15 a.m. to 5:45 p.m. (Eastern Time).

Mailing address:
National Leads Centre
Business Intelligence and Quality Assurance Division
Canada Revenue Agency
200 Town Centre Court
Scarborough ON M1P 4Y3

Go get ’em Johny!

#122 Retired Boomer WI on 01.03.16 at 11:50 pm

#38 Entrepreneur

A little bit of “Income Tax History” here in the U.S.

We never had a Federal Income Tax until 1913 via the passage of the 16th amendment to the constitution. There were taxes imposed beginning in 1862 but were subsequently held unconstitutional.

Revenue was derived via import tariffs, excise taxes for Federal purposes prior.

States, and localities also have the ability to tax income.
Most states (43) levy a tax on earned, or unearned income in various amounts. Some cities, and towns also levy an income tax.

Remember this country is made up of 50 separate soverign states, and 1 Federal Government. Each state is quite unique in where they look for funding, and in what amounts.

Some states exempt retirement income from taxation (social security and pension income).

Here in my state, local towns levy the property taxes, our sales taxes are 5% by state and most counties in WI add .5% making sales taxes 5.5% except on food, drugs, professional services. Our ‘sin’ taxes are quite low (beer & liquor), but tobacco is rather high. Our state income taxes are progressive rating from 3% to a top of 7%.

Almost every state levies a sales tax of some sort.

Every state I’m aware of levies a ‘property tax’ on real property. Some states, like Kansas, also levy a personal property tax on your household stuff, appliances, furniture, boats, cars etc plus their state income tax.

Taxation must be researched CAREFULLY on each state to determine, how, and how deep, they drill for their revenue. Federal taxes, and deductions are at least uniform! States vary widely!

Hope this gives you a better understanding of our nutty patchwork quilt system.

M64WI

#123 Jonathan on 01.03.16 at 11:57 pm

#116 vic guy and #113 paul

Why do you two guys want to protect CRIMINALS who try to scam us all, forcing us to pay more in taxes, because they try to scam the system and not pay proper capital gains or income taxes on real estate ‘investments’ they flip??????

Real estate flippers who do not pay full, proper taxes as required on their transactions are FEDERAL TAX CRIMINALS in Canada.

They are subject to imprisonment, not just fines.

Jail them all, I say. Liquidate all their assets to pay for the prison food.

I have friends involved in the field who suggest that about 1/3 or more of recent residential real estate transactions involve such criminal tax evasion on the gains.

We are talking about billions of dollars that the rest of us have to make up for thanks to these criminals.

Let the CRA know:

http://www.cra-arc.gc.ca/gncy/nvstgtns/lds/tll-s-eng.html

#124 Aggregator on 01.03.16 at 11:59 pm

#112 Chad – Canada is not exactly the same as the USA

This is what matters…

$525,000,000,000 – CMHC Insurance-in-force

$350,974,800,000 – Genworth Insurance-in-force (govt 90%)

$426,000,000,000 – CMHC Guarantees-in-force (Mortgages, HELOCs, other)

Total CMHC and Govt of Canada Liabilities: $1,301,974,800,000 (this number is continually rising)

Total CMHC Equity: $19,189,000,000

Leverage Ratio: 67.8

These are number scales astronomers and physicists use to measure distances between galaxies. No such money even exists, but they are still contingent liabilities that are at risk of exogenous shocks. So despite what CMHC says about being able to handle a 5% rise in unemployment with a 30% correction in home prices, their models can't possibly predict knock-on effects to other sectors of the economy. Did CMHC know two years ago that oil would be trading at $38? No. In fact hardly anyone did.

I know CMHC and the govt's schemes all too well. They will say they're tightening the mortgage market while loosening it somewhere else. Trust me. They're afraid at this point and would rather keep the party going until there's someone or something to blame for a crash.

#125 The Other Chris on 01.04.16 at 12:04 am

I usually agree with James, but the $206k figure for average GTA lawyer salaries is very misleading. That number must include partner compensation.

If you Google the “Canadian Lawyer compensation survey”, they break out the numbers by associates and partners. Median associate compensation seven years after call to the bar is only $120k. And at most private firms, there is no RRSP match, no pension, etc.

So it’s not at all surprising that the all-in (including pension match) for Ontario teachers at the top of the salary grid (column 4) is higher than the average lawyer. Which is basically consistent with what lee posted at #118.

#126 The Real Deal on 01.04.16 at 12:06 am

First, Millennials outnumber Boomers and compose the largest demographic

Close tie in Toronto and not even close the rest of Canada.

http://www.indexmundi.com/graphs/population-pyramids/canada-population-pyramid-2014.gif

https://canadapopulation.wordpress.com/2014/05/02/toronto-population-pyramid/

#127 Mark on 01.04.16 at 12:21 am

Mark’s not going to post much on RE today. As Mark is exhausted from an afternoon at the local Costco with a big gift card to use. Where a bunch of unfortunate lemmings line up to pay more than they do at their local Loblaws affiliate, for the privilege of waiting in much longer lineups.

Aggregator, good work on the numbers. But are you sure there’s no overlap between CMHC/Genworth insured individual mortgages, and the CMHC-insured MBS? IIRC, mortgages had to be insured to begin with to even be eligible to go into the MBS. But I could be wrong, and if I am, that would make the argument that CMHC is the market so horrific. And that an attack on CMHC would probably provoke a systemic crisis.

#128 Greg on 01.04.16 at 12:52 am

#34 nonplused

Springbank? I’ll have to watch for a klx

#129 Freedom First on 01.04.16 at 12:59 am

#120 Jaymo

Post of the day. I am a Boomer, and I watched the Boomers do it, and now I am watching their kids do it. Most guys never even see it coming. The nesting instinct rules the world. Well, not my world, of course.

#130 Cici on 01.04.16 at 1:12 am

#14 GeorgeSoonToBeRetired

I sincerely hope that you won’t have to hide out in the doghouse, and that your family and friends will be there to take care of you.

But I do know what you mean. My boyfriend and I visited his 95-year old gramps today…and wow, what a cool experience that was. He is in a high-end place, but has Alzheimers (some days severe, some days only mild), and fortunately, today he was all there…laughing, telling jokes, his eyes bright and full of life.

You are right: these amazing elder folk need a lot of attention and stimulation; it really helps them. Unfortunately, with our busy lives, it’s hard to keep up and provide enough attention and visits as they need and deserve.

There are a lot of folks in these homes that need more visits, more attention and more hugs and kisses. I’m thinking that this is one area where I would like to volunteer some of my free time in the New Year…

#131 Tony on 01.04.16 at 1:21 am

Re: #29 Rook on 01.03.16 at 6:51 pm

Rent, property taxes will go through the roof as the national debt of Canada grows exponentially. I remember reading the reply of some bozo the other day stating municipalities and laws and some other crap and just shake my head.

#132 old gringo on 01.04.16 at 1:32 am

First trading day of the year in Asia and all hell is breaking loose.
China manufacturing is slowing down really fast and this WILL affect Canada big time.
I love the smell of opportunity in the morning.
Better then coffee!

#133 Interstellar Old Yeller on 01.04.16 at 1:39 am

#54 Washed Up Lawyer on 01.03.16 at 7:51 pm
Mr. Turner says:

“a big pent-up demand now for spouses”
***********************************

Why has my spouse listed on “Ft. McMurray Kijiji Spouses For Sale or Rent” drawn no bids???

Err… Because your spouse made a similar listing for you, but shrewdly went with only half the asking price?

#134 fishman on 01.04.16 at 1:49 am

If your worried about being ratted out to the CRA think close to home. A chess buddy working for Revenue Canada told me most tips came from spurned girlfriends & forsaken wives. The rest from screwed over business partners.

#135 BC_Doc on 01.04.16 at 2:22 am

#123 Jonathan

It brings to mind two quotes:

“Don’t tax you. Don’t tax me. Tax the guy behind the tree.”
— Russell B. Long

“We don’t pay taxes. Only the little people pay taxes.”
— Leona Helmsley

Then there’s the former PM who “forgot” to declare several hundred thousand dollars placed into a safety deposit box in Switzerland:

http://www.nationalpost.com/news/story.html?id=166150

My favourite quote from the article:

“I’m not calling you a liar, Mr. Mulroney, but I don’t want anybody here to think that I believe you,” New Democrat MP Pat Martin said dryly.

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

+1 on your comment Jonathan

#136 Interstellar Old Yeller on 01.04.16 at 2:39 am

Thanks for sharing the radio show link, Garth. Enjoyed the discussion about the CAD and why it probably won’t drop into the 50s. Also the reminder that commodities are cyclical. There will undoubtedly be a future oil boom people can piss away again!

#137 fishman on 01.04.16 at 2:44 am

Back in the day, before we incorporated & were still sole proprietors a bunch of us would sit around a table & write each other receipts, plumping up our expenses & capital costs; helped with Crown Royal & false bravado of youth. When the GST came around I explained to my bros that we had to apply fraudulently to get 5% cash back from the govmt. to balance our claims. We were venturing way over our bravey levels with possible incarceration. Needless to say we slunk quietly away.
About a year later I’m reading an article in the business section on how Revenue Canada couldn’t understand how their revenue estimates could be so far off on the total returns of this new GST tax. They had predicted 6-8 billion & they got over 16 billion.(I think) Ya sure! Every two bit business in Canada had been heavy on the pencil & had been brought to heel by the new GST.

#138 Kinkalgary on 01.04.16 at 3:18 am

Just got back from Vegas, went down for New Years – place was packed, every resort we went into was wall to wall, ufc fights at MGM – sold out! Line ups at every star bucks I saw, people paying $7.00 for lattes, everywhere you go prices are ridiculous! US is on the mend, yes they have major issues and the herd are oblivious to it! Canada – we are in for some tough times so buckle up!

#139 BillyBob on 01.04.16 at 3:44 am

#32 the Jaguar on 01.03.16 at 6:53 pm
Also, would appreciate it if Billy Bob checked in since we know he hangs out in Dubai and there was a fire.

====================================
Hmmm tried to comment earlier but the system keeps saying “Duplicate comment detected” – yet not posted?

Anyway, I’m good. Was away on a flight to Buenos Aires/Rio de Janeiro over New Years so missed all the excitement. The Address was the third major tower fire in a year. Yet the local press and Civil Defence (fire department) pat themselves on the back for controlling the fire “in record time”. Canned reports on the news of “random strangers” all commending the same with glowing praise for the orderly evacuation, yet cellphone videos show more than a bit of panic. Funny how they try and control everything. But this place is all about spinning an image. Scratch the golden surface and what lies beneath isn’t so shiny.

I live about 1km from Downtown Dubai where the fire was, might go take some pics of the blackened building.

Changing locales this year though in a big way. Getting out of Dubai, but not back to Canada. Seems like the worst possible time to return, to confiscatory tax regime, housing bubble, increasing unemployment, low wages/CAD. The new job will allow me to get back a lot more often to visit though.

A belated Happy New Year to all the blog dogs.

#140 JamesA on 01.04.16 at 5:14 am

http://www.bloomberg.com/news/articles/2016-01-04/these-10-numbers-will-tell-canada-s-economic-story-in-2016

The one bright spot is our non commodity exports with the exchange rate.

In terms of the career choices, lawyer is not a great one anymore. The trial lawyer type (like the ones you see on tv arguing in court) have incredible stress problems. Kids see super interesting cases in police procedurals, in reality, cases are seldom interesting. The non trial lawyers, along with much of accounting, will be competing with software. The advancement of AI in terms of a trial’s discovery phase is apparently amazing (npr podcast about it). Anytime you have a field that involves exploring the possibilities among a strict set of rules (legal rules, accounting (maybe investing too?)) you are going to get smoked by AI. It’s still bad at a lot creative stuff (but “progress” is being made there too) but super good at exploring rule space. As per usual, Canada is about ten years behind the US. But that code is going to exists here eventually.

Do something creative (like write code (not always fun, but, can be very fun)) if you can.

I am the offspring of a lawyer. He told me not to go into the field.

#141 Me on 01.04.16 at 6:05 am

I fail to see the benefit of investing in dividend paying stocks when the dividend is say 5% and the stock drops 20%. By the way Fiat Chrsyler is down 33% today.

#142 Millenial on 01.04.16 at 6:06 am

Chinese market crashed so hard this morning it closed 2 hours early. No biggie though, what goes on over there don’t matter much to us.

#143 George S on 01.04.16 at 7:06 am

A couple of posters said this:
“Randy: talking about the problems the boomers have created: Boomers destroyed the education system and launched Cultural Marxism in Canada and the U.S.

guilty as charged There was a steady erosion of the authority and respect given to the teachers. Thank God I was not one. When I went to high school the teachers had the authority to punish and reward. ”

Well to me it sounds like you are longing for the good old days because you don’t remember them correctly or you went to a good school or were a good student and weren’t persecuted. What I remember of school was systematic physical and psychological abuse of children by sociopaths. Many of the teachers were alcoholics. The modern education system tries to teach students to be good people and have enough knowledge to get by in the world without further ruining it. Yeah they could teach more financial stuff and business stuff but it seems to me that most if not all of our current financial woes are being caused or have been caused by highly educated economic and financial “geniuses” that set everything up after being hired or elected by people to provide them with a secure financial future because of their expertise.
Not everyone is mentally equipped to be an expert at everything and the modern education system allows people to find their place and live a decent life as best as any education system can. And it continuously improves.
It doesn’t matter how long it takes a person to learn something, as long as they learn it. The modern system tries to give kids enough time to learn it with as little stress as possible.
Think back, What did you really learn at school that you use in your everyday life now?

#144 crowdedelevatorfartz on 01.04.16 at 8:05 am

@#33 BC Guy
You also migrated out of the city because there wasnt enough land for you to expropriate………..

#145 crowdedelevatorfartz on 01.04.16 at 8:08 am

@#42 washed up Lawyer
“A week before Stampede, the same rough stock and the same cowboys…..”
+++++++++++++++++++++++++++++++++++

We used to go to Black Diamond for the same show after the Calgary Stampede ended. Same cowboys, less tourists, bigger beer tent. A blast.

#146 crowdedelevatorfartz on 01.04.16 at 8:19 am

@#104 Smoking Man
“Not me, I get just a delete. No explanation….”
++++++++++++++++++++++++++++++++++++

DELETED (MINDLESS DRIVEL)

Does that make you feel any better?

#147 GS1 on 01.04.16 at 8:28 am

Here comes the pain people………

#148 Smoking Man on 01.04.16 at 8:47 am

Ha my post from last night.. Now that’s a crystal ball.

#89 Smoking Man on 01.03.16 at 9:34 pm
Weird open on oil and fx, oil gaps up on Saudi, Iran shit. Then crashes, on no volume, USDCAD up about a cent since open.

Tomorrow will be wild. Tired of looking at it. Time for a drink.

#149 Ronaldo on 01.04.16 at 8:53 am

#143 George S. –

”Think back, What did you really learn at school that you use in your everyday life now?”

Well, I have always said that the best education I ever got was when I was out of school as I worked full time (45 hrs week) all through high school in a hotel in Northern BC. In additon to that, in summer holidays I worked on construction as a carpenters helper or as a yardboy for International Harvester where I got to drive around the big rigs. Also worked in fish canneries, painted peoples houses, even built outhouses. Operated a backhoe. How I made it through high school with full credits still amazes me but what I did learn in school (I took commercial program as university was not something I planned on) is how to type very fast, something that I wanted to do from age 11 after hanging out around the railway station and watching the train order operator typing out train orders. Had the highest typing speed in high school. I can still pound away at around 80 wpm even for a geezer. The other thing that has served me well is mathematics and bookkeeping and even shorthand. Have been using a keyboard since I was 15 ( holy crap, almost 55 years now) when I bought my first typewriter and hired myself out to a restaurant to type out their daily menus. I think I was a workaholic. Those were the days.

#150 saskatoon on 01.04.16 at 9:00 am

#143 George S

“The modern education system tries to teach students to be good people”

socialists are not good people.

#151 old gringo on 01.04.16 at 9:07 am

re-smoking man—
The Edge… there is no honest way to explain it because the only people who really know where it is are the ones who have gone over.

“If you are not living on the edge , you are taking up to much space.”

#152 Apocalypse2016 on 01.04.16 at 9:17 am

Garth, your radio commentary was interesting. But I disagree about your population comments. Canada must shut down immigration. We have too many people already, and too few good jobs. Harper has hollowed out our industrial base, and that won’t be coming back. Our lifestyle is also too energy-consumptive, making us the worst polluters on the planet. One Canadian is worse for the Earth than 5 Indians or Chinese. We must change and adapt before suckering more people into this dead-end lifestyle.

GM announced today it is going all in on self-driving cars.

http://www.wsj.com/articles/gm-invests-500-million-in-lyft-plans-system-for-self-driving-cars-1451914204

Want to bet that none of the jobs creating them goes to Canada? Those plants in Mexico are already much more modern than anything in Windsor or Oshawa.

Canada is so screwed. When the real estate bubble explodes, we will finally realize how little there is left here of any kind of economy.

Then we’ll start realizing how bad provincial and federal debt really is, too.

#153 Nuke on 01.04.16 at 9:21 am

You can also look at accommodations as part of a cash flow(retirement planning) model. If you have a Defined Benefit Plan you calculate years of pensionable service to have pension income that covers rent. For example if rent is $1,500 pm ($18k annually); you earn $90,000 per year with a 2% benefit plan. You pay 9% into the pension each year ($8,100) and your employee matches++. It takes 10 years ($81,000 tax deductible) to have guaranteed pension income of $1,500 per month. There are variables like CPP integration, inflation, time to retirement, the type of place you want to live in. However the key is that cash flow is king.

#154 Blackberry CEO on 01.04.16 at 9:49 am

CEO made 89 mio last year.

C O M P E N S A T I O N

Absurd and obscene don’t even begin to describe what is going through my mind when I read this.

#155 For those about to flop... on 01.04.16 at 10:51 am

First snow of the season falling in the Couv.
Or as ICBC calls it …money falling from the sky!

#156 Frank on 01.04.16 at 10:52 am

Whoa, rough market start to 2016. This should make good blog fodder.

#157 bdy sktrn on 01.04.16 at 10:56 am

equities falling faster than 604 dirt is rising.

dow -423 , so far.

china. germany a bloodbath by comparison

headwinds.

#158 John on 01.04.16 at 10:57 am

Well the ‘KIDS’ are in full flight this Monday Jan 4, 2016. Guess someone will have to ask which will crash more in 2106, housing prices, junk bonds, stocks, Hillary’s backers, Trumps hair-do and/or a lot of people’s egos? All of the above thoroughly bloated with cheap and ultra-cheap pixel money. Have a good one Garth.

#159 John on 01.04.16 at 10:58 am

Typo: 2016 @ 157

#160 Me on 01.04.16 at 10:59 am

There are times of capital expansion and times when capital preservation would be exceedingly prudent. You just have to decide which one is going on right now.

A balanced and diversified portfolio is designed to deliver both. In 2015, it did. — Garth

#161 John on 01.04.16 at 10:59 am

China halts trading. Full stop.

It was a circuit breaker. Don’t be a drama queen. — Garth

#162 bdy sktrn on 01.04.16 at 11:04 am

#136 crowdedelevatorfartz on 01.02.16 at 11:12 am

2016 will see more skytrain ‘strandings”.

——————————————
well someone got one right , so far.

“A stalled train on Metro Vancouver’s Canada Line forced TransLink to shutdown service between Bridgeport and Marine Drive stations for a short while on Monday morning.”

saudi cleric predicts ‘divine vengeance’ against translink

dow still tanking 450 and falling

#163 John on 01.04.16 at 11:05 am

Saudi and Iran file for divorce. The Kingdom cuts off all flights to Iran. Expecting para-drops of loot to land down in the GTA housing matrix, looking for safety @ any cost. No need to worry about the Valentine’s Day Canada rate event, it’s a cash baby event. Starting to feel like the drop zone @ wonderland.

#164 bdy sktrn on 01.04.16 at 11:12 am

oil drops 1.50 in about 30 min.

it’s spooky out there .

#165 When will they raise rates? on 01.04.16 at 11:13 am

#159 John on 01.04.16 at 11:05 am

Saudi and Iran file for divorce. The Kingdom cuts off all flights to Iran. Expecting para-drops of loot to land down in the GTA housing matrix, looking for safety @ any cost. No need to worry about the Valentine’s Day Canada rate event, it’s a cash baby event. Starting to feel like the drop zone @ wonderland.

————————————————-

You think GTA RE represents safety? C’mon…

All of that loot is heading to the US.

#166 For those about to flop... on 01.04.16 at 11:23 am

As a kid growing up in Australia I should have received a half decent education but alas this did not happen.
When I was in high school in the late 80s they were building a new high school a few kilometres down the road and the deliberations had been going on for around a decade and as a result my high school was a hundred year old dilapidated mess.
I recall most of the time our teachers did not have any chalk,there were rats coming in and out of the walls.
P.E consisted of kicking around a flat football/soccer ball.
I remember one day we were doing high jump and they used makeshift posts from the volleyball court and when the first kid went over the big heavy post come down on his face giving him a massive shiner.

This sort of stuff went on daily,we were given the honour of being the last class to graduate from this dump.
The new school was state of the art for its time with a computer in each classroom,something unfathomable to us at the time.

I guess I was in the wrong place at the wrong time, it would not be a stretch to say a lot of kids in Africa got a better education at the time.

This turned me off the education system for life.
I finished high school at 15 and when all my friends went to college I started an apprenticeship as I just couldn’t handle the thought of more full time school.

My trade has helped me survive in life but never thrive and I sometimes wonder if I had a more positive experience what would have I had done instead.

#167 Ret on 01.04.16 at 11:25 am

#118 Teachers. Does the teacher rant ever end?

Principals and VP’s are over $100,000. Teachers in Ontario, I don’t think so.

Teacher pensions in Ontario do not have a 30% taxpayer contribution.

Kathleen Wynne would be proud of you. She plays it fast and loose with the facts too when it comes to teachers!

#168 Freeman on 01.04.16 at 11:33 am

Like I posted 2 days ago:

China is going down. The China Beige Book (which is much more accurate) recently showed that, across the board, economic conditions are unraveling.
There will be no soft landing in China. It will bring down the entire world’s unprecedented debt and real estate bubble. And it’s only a matter of time, and likely only a few months away at this point.
Now’s the time to get out of real estate… and stocks… ” }}}

http://economyandmarkets.com/markets/housing-market-markets/chinas-unprecedented-real-estate-bubble-is-a-ticking-time-bomb/

#169 When will they raise rates? on 01.04.16 at 11:45 am

All of that Chinese money flooding into Australian RE makes it a sure-fire investment… Lever up kids and get onto that property ladder, or be priced out forever! Uh, oh wait…

Sydney Home Prices Have Biggest Quarterly Drop in Four Years

http://www.smh.com.au/business/sydney-home-prices-have-biggest-quarterly-drop-in-four-years-20160104-glyy7l.html

#170 Freeman on 01.04.16 at 11:55 am

Harry Dent explains how (what he predicts will be) DEFLATION will cause house prices to drop by AT LEAST 80% over the next decade.

Its surprising to hear him talk about how the sky is going to fall, but who knows, maybe it might happen?

(So far it appears to be different here in Canada, right?)

(“Harry Dent on Deflation and how to prosper”):
https://www.youtube.com/watch?v=X3liMDK9w7M

Harry Dent has been deflating for decades. — Garth

#171 Smoking Man on 01.04.16 at 11:56 am

Hey Turner Nation

Yo all remember the Bat Signal I shot your way a few weeks ago?

Their is only on Smoking Man !!!!!!!!!!!!!!

#172 common sense on 01.04.16 at 12:00 pm

#170 Smoking Man

I got “it”.

WOO HOO!!!!

#173 lee on 01.04.16 at 12:02 pm

#167,

Take a look at the Alberta sunshine list. Senior teachers are well into the $100,000 range and the benefits (medical and dental benefits, life insurance, pension contributions) are an additional 30% in each case. Ontario should have the same disclosure. Therefore a teacher making $110,000 in Ontario (which many teachers in Ontario earn as teachers not as VPS and Principals) is making $143,000 when the non-taxable benefits are included (albeit when they receive their pension it is fully taxed). There is no point trying to pull the wool over anyone’s eyes. The facts are out there and most tax payers can’t believe it now that they are finding out the truth. The revolt comes when the HST goes to 14%. The pension plan is fully funded so it will take care of itself. The average recipient then receives $2.3 million more (fully taxable) under the pension till death.

#174 Rexx Rock on 01.04.16 at 12:10 pm

Hoped you liked my nice picks for risk takers UVXY and TVIX.Rocking times baby!,hope the real panic selling continues.

#175 Frank on 01.04.16 at 12:12 pm

Principals and VP’s are over $100,000. Teachers in Ontario, I don’t think so.

Teacher pensions in Ontario do not have a 30% taxpayer contribution.

Kathleen Wynne would be proud of you. She plays it fast and loose with the facts too when it comes to teachers!

Almost 1000 teachers on that list making over $100K.

http://www.fin.gov.on.ca/en/publications/salarydisclosure/pssd/orgs.php?organization=schoolboards&year=2013

Including elementary school teachers. That’s right, you pay over $100K to teach kids not to eat paste.

#176 JimH on 01.04.16 at 12:20 pm

#143 George S on 01.04.16 at 7:06 am
“…Think back, What did you really learn at school that you use in your everyday life now?”
================================
An excellent, thoughtful question, George, and one that cries out for some thoughtful answers!

As my life has progressed, I have come to realize just how much I did learn in school, and how many of those concrete nuggets of knowledge and understanding, as well as the many more nebulous behavioral and social gems have risen to the fore just at those many times I needed them most!

Anyway, here’s my list:

1. Basic reading, writing and math skills. Not only do these enable me to read a post like yours and appreciate and comprehend it; I can also structure and communicate a response. These basic skills involve something even deeper; the ability to think symbolically and to utilize structured symbols to communicate ideas to others. I use these skills constantly every single day.
2. Biology, Chemistry and Physics left me with a very much enriched understanding of, and a deeper appreciation for, the world around us, and the many and varied inventions, systems and infrastructures that make it function. (You may not think you employ Einstein’s Relativity every day, but your smart phone and your GPS definitely do!) Right now I’m reading Brian Greene’s wonderful books; bouncing around between ‘The Fabric of the Cosmos’, ‘The Hidden Reality’, and ‘The Elegant Universe’. While I lack the knowledge and experience of the advanced mathematics, I owe it to my basic understanding of the sciences that I can grasp the concepts of classical Newtonian physics, the more accurate and necessary fundamentals of Special and General Relativity, and at least stick my big toe into the deeper mysteries of Quantum Mechanics. It’s not just what you learn; it’s also what you learn to appreciate.
3. I was lucky enough to have some excellent teachers of Geography and History. Every news broadcast involves retrieving those helpful little snippets of both. I don’t have to ask anyone where Saudi Arabia or Iran or Iraq or Russia or Syria or Saskatoon are located. I know where they are and I know at least a little bit about their histories.
4. I took a basic Economics course in high school and followed up with some at college and later on in grad school. The basics served me well when I started trading stocks, bonds, MF’s and derivatives back in the 1990’s (when basic brokered equity trades often exceeded $250 per trade!) and I am still an active trader/investor to this day. Yes, I learned a lot of ‘bunk’; but I also learned the skills to recognize it when I saw it!
5. More generally, I learned to structure arguments and debate ideas; to be aware of my environment and surroundings and to be resourceful enough so as to extricate the things that would contribute to my success in the world; that both truth and lies led to consequences and that rights involved duties and that privilege carried with it responsibilities; to set realistic goals and prioritize my activities because how I spent my time was the clearest signal of those priorities; to work constructively with others a varied backgrounds, experiences and agendas; to appreciate and value the hard work involved in arriving at consensus; that there would not always be someone around to supervise and motivate me and that I’d best learn to do that on my own; that even the most highly respected authority figures could be wrong and were not above the rigors of critical evaluation; that true independence comes not only with the freedom it implies, but also leaves only myself responsible and accountable for my actions throughout life; .
6. Years ago I read John K. Galbraithe’s book, ‘Money; Whence it Came, Where it Went’. At the time, I thought his notions on the creation of money were ridiculous. He said, “The process by which money is created is so simple that the mind is repelled.” The process by which I have now come fully around to see my error and agree with him is somewhat of a testament to what I learned in school.

I won’t go into what I learned in shop and that silly Home Economics elective I was forced into.

I’m sure I could come up with other things I learned in school, but I’d have to think about it!

#177 Doug T. on 01.04.16 at 12:25 pm

but but but its different this time

#178 gut check on 01.04.16 at 12:36 pm

Question:

Scotiabank right now has a 7 cent spread on USD/CAD CAD/USD but only a 2 cent spread on GBP/CAD CAD/GBP.

why the difference? This must be an indicator of something, but I can’t figure out what.

#179 The Other Chris on 01.04.16 at 12:37 pm

The maximum annual employer match for the Ontario Teachers Pension Plan, for someone at the rightmost top of the salary grid is just under $12,000. It’s not quite as generous as the Alberta plan funding formula. (Although that doesn’t include irregular top-ups of plan funding shortfalls.)

Still, after 10 years of teaching, all Ontario teachers are making well over $100k in total compensation.

#180 paul on 01.04.16 at 12:41 pm

CEO’S MAKING 9,000,000. PER YEAR OR 184 TIMES WHAT THE WORKERS EARN. THIS IS SIMPLE WE ALL HAVE TO GO BACK TO SCHOOL FOR RETRAINING TO BECOME CEOS. 1% RULE THE WORLD. GET USED TO IT.
BASTARDS.

Who let you in here? — Garth

#181 Smoking Man on 01.04.16 at 12:49 pm

#178 gut check on 01.04.16 at 12:36 pm
Question:

Scotiabank right now has a 7 cent spread on USD/CAD CAD/USD but only a 2 cent spread on GBP/CAD CAD/GBP.

why the difference? This must be an indicator of something, but I can’t figure out what.
…………….

Pure unbridled filthy greed is what it is.

Use these guys, very close to the spot rate.

http://www.knightsbridgefx.com/

Banks are highway robbers when it comes to FX conversions.

#182 Lorne on 01.04.16 at 12:58 pm

#175 Frank
Principals and VP’s are over $100,000. Teachers in Ontario, I don’t think so.

Teacher pensions in Ontario do not have a 30% taxpayer contribution.

Kathleen Wynne would be proud of you. She plays it fast and loose with the facts too when it comes to teachers!

Almost 1000 teachers on that list making over $100K.

http://www.fin.gov.on.ca/en/publications/salarydisclosure/pssd/orgs.php?organization=schoolboards&year=2013

Including elementary school teachers. That’s right, you pay over $100K to teach kids not to eat paste.
……..
Obviously they were not successful in keeping you away from the paste!! Primary teachers are the MOST important teachers in the system. If we channelled all the best teachers into teaching primary, our society would be served extremely well and costs would likely go down as the need for learning assistance would diminish. To suggest elementary teachers do not teach anything and are undeserving of a decent salary, after 5 years of university…which costs them money….well, that seems very ignorant. I am sorry you did not have better teachers….but guiding good students away from teaching by ragging on the profession, does nothing to encourage a more enlightened society.

#183 Love this Blog on 01.04.16 at 1:02 pm

#61 Randy

So you are a troll then. Garth, take note.

#184 Smoking Man on 01.04.16 at 1:02 pm

Trump will beat Hillary, going to use the woman card and the double standard of

Mr.Clinton vs Mr.Cosby

http://www.breitbart.com/2016-presidential-race/2016/01/03/exclusive-paula-jones-hillary-clinton-two-faced-liar-cares-nothing-about-women-at-all/

#185 Elementary on 01.04.16 at 1:08 pm

#182 Lorne
Primary teachers are the MOST important teachers in the system

===

True the most formative young age is scientifically proven absolute critical, making the first “wiring” of the brain.

Montessori built a whole school system around this observation. It worked for people like Google founders.

#186 paul on 01.04.16 at 1:13 pm

#180 paul on 01.04.16 at 12:41 pm

CEO’S MAKING 9,000,000. PER YEAR OR 184 TIMES WHAT THE WORKERS EARN. THIS IS SIMPLE WE ALL HAVE TO GO BACK TO SCHOOL FOR RETRAINING TO BECOME CEOS. 1% RULE THE WORLD. GET USED TO IT.
BASTARDS.

Who let you in here? — Garth
———————————————————-
Great now I need to change my SIGN in.
At least I don’t do capitols

#187 Redman on 01.04.16 at 1:17 pm

Hi Garth,

Why do you expect the TSX to outperform the S&P 500 in 2016? Is it because you expect oil to creep back?

#188 BC_Doc on 01.04.16 at 1:18 pm

#181 Smoking Man

Thank you for the fx link– I will check this out. I need to convert a couple of thousand dollars for an upcoming trip to the US. This looks like a good option.

For large dollar conversions, I am a fan of “Norbert’s Gambit.” $20 in stock trade fees plus the bid-ask spread on the buy-sell of the dual listed stock gets you right to the spot rate at a bare bones cost. I use RY-T and RY-N as my conduit.

Cheers,

BC Doc

#189 paul on 01.04.16 at 1:18 pm

#161 John on 01.04.16 at 10:59 am

China halts trading. Full stop.

It was a circuit breaker. Don’t be a drama queen. — Garth
———————————————————-
Actually Garth, It was a fuse. lol

#190 gut check on 01.04.16 at 1:20 pm

#181 Smoking Man

thanks :)

#191 Smoking Man on 01.04.16 at 1:26 pm

Bad news for Nectonite’s if Hillary wins.

http://www.dailymail.co.uk/news/article-3383221/Hillary-Clinton-vows-reveal-truth-UFOs-Area-51-president-Bill-admits-aliens-visited-Earth.html

#192 Mark on 01.04.16 at 1:35 pm

Even the Toronto Hells Angels are renters now:

http://www.thestar.com/news/crime/2016/01/04/huge-trend-toward-renting-for-gta-outlaw-bikers-says-cop.html

#193 salonist on 01.04.16 at 1:52 pm

old news nectonite

paul hellyer, had an office beside him.nice guy, interesting read.

https://www.google.ca/search?sourceid=navclient&aq=&oq=paul+hellier+ufo&ie=UTF-8&rlz=1T4GGHP_enCA581CA581&q=paul+hellyer+ufo+youtube+&gs_l=hp..1.0i10j0i22i10i30.0.0.1.12088330………..0.MoHYMiyOuLk

#194 OXI in GREECE on 01.04.16 at 1:53 pm

#170 Freeman on 01.04.16 at 11:55 am
Harry Dent explains how (what he predicts will be) DEFLATION will cause house prices to drop by AT LEAST 80% over the next decade.

Its surprising to hear him talk about how the sky is going to fall, but who knows, maybe it might happen?

(So far it appears to be different here in Canada, right?)

(“Harry Dent on Deflation and how to prosper”):
https://www.youtube.com/watch?v=X3liMDK9w7M

Harry Dent has been deflating for decades. — Garth
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

It’s different in Canada because the govt allows foreign money laundering.

#195 Sonny on 01.04.16 at 1:54 pm

And now back to real estate news on the real estate blog:

Calgary home sales plunge 26% in 2015, prices fall 2.6% compared to year prior

http://www.cbc.ca/news/canada/calgary/calgary-home-sales-year-end-2015-creb-1.3388657

#196 not 1st on 01.04.16 at 2:05 pm

hahaha China, just a sideshow…..wait until the US takes a good look at their data this month. DOW back to 11500 where it belongs.

#197 Smoking Man on 01.04.16 at 2:13 pm

#185 Elementary on 01.04.16 at 1:08 pm
#182 Lorne
Primary teachers are the MOST important teachers in the system

===

True the most formative young age is scientifically proven absolute critical, making the first “wiring” of the brain.

Montessori built a whole school system around this observation. It worked for people like Google founders.
…………

Unfortunately we here are more preoccupied with sex ed, cultural marxism.

They teach the kids what to think, and discourage the techniques in how to think.

#198 Frank on 01.04.16 at 2:15 pm

Primary teachers are the MOST important teachers in the system.

Yeah I can come up with reasons why every job is important. Fact is there is an oversupply of qualified teachers so why are we paying so much for them?

#199 SunShowers on 01.04.16 at 2:17 pm

“Will this continue, even as the era of emergency interest rates comes thudding to a conclusion?” – Garth

——————————————————-

Garth, why don’t you just give up?

December 16. — Garth

——————————————————-

Considering retiring the blog in December?
Please no?
For all the flak you get (yes sometimes from me), you’re still doing Canadians a service. If I hadn’t found your blog, I might have let the wife badger me into buying a house last year!

#200 IHCTD9 on 01.04.16 at 2:24 pm

#108 jane 24 on 01.03.16 at 10:36 pm
We lived in TO in the 1980’s until children came along. We then moved to one of the great small towns in Ontario that was big enough to have everything including jobs. Never looked back at TO as we had all the city privileges such as walking to work and going to the movies but at small town prices.

Kids grew up wandering anywhere without supervision as all very safe. It was a wonderful childhood for them. Sort of living a 1950’s life in the 1990’s. Try it.
_________________________

I agree. Not to mention I would need an annual salary increase of approximately ~500% to live anywhere near the same life I am now but in the 416.

That’s not giving me a dime for the hassle and BS of GTA living either. I struggle to see what the 416 would be giving me in return.

As it is, I’ve got a nice little 4 acre hobby farm that was paid for with ease. My kids go to a great private school. All my vehicles and toys (toys being varied and numerous, 37,000 lbs worth at last count :) ) are paid for. I’ve got a portfolio value that exceeds everything else put together. My kids are still in grade school.

I’m not rich, I just don’t live in a money (and soul) sucking Urban wasteland. The financial benefits are worth it on their own, the quality of life is icing on the cake…

#201 Godth on 01.04.16 at 2:34 pm

The stock markets – oops!
The Saudis and Iran warming up to square off.
Now Israel and Hezbollah going at it…again.
Y’all Qaeda winning hearts and minds in Oregon.

Welcome to 2016 everyone!

#202 saskatoon on 01.04.16 at 2:48 pm

#182 Lorne

“Primary teachers are the MOST important teachers in the system.”

most important?

yes, i agree.

but important for what?

1. attachment disorder
2. artificial childhood extension
3. ego destruction
4. narcissism
5. class stratification
6. socialist indoctrination
7. gender confusion/male-hating
8. aggression
9. medicalization
10. hyper-sexualization
11. learned helplessness

in fact, these students will have so little value after 13 YEARS of state school…that the government forces companies to pay them a minimum wage.

kinda makes you wonder what young people are REALLY learning…and WHY the government pours so much money into “education”.

“The only thing that interferes with my learning is my education.”

– Albert Einstein

#203 For those about to flop... on 01.04.16 at 3:09 pm

#199 SunShowers on 01.04.16 at 2:17 pm
“Will this continue, even as the era of emergency interest rates comes thudding to a conclusion?” – Garth

——————————————————-

Garth, why don’t you just give up?

December 16. — Garth

——————————————————-

Considering retiring the blog in December?
Please no?
For all the flak you get (yes sometimes from me), you’re still doing Canadians a service. If I hadn’t found your blog, I might have let the wife badger me into buying a house last year!

///////////////////////////////
Hey Sunshowers, you seem a little confused .
The boss is referring to the date the Feds move the rate up last year.
Garth will blog til his last breath and his last sentence will be stay liquid and diversified my friends.
Either that or he might tell his family he loves them…

M41BC

#204 Godth on 01.04.16 at 3:16 pm

#202 saskatoon on 01.04.16 at 2:48 pm

Yeah, I kind of think ole Albert had something else in mind, not your inane ideological pontifications.
https://www.youtube.com/watch?v=D5in5EdjhD0

https://www.youtube.com/watch?v=4rhypeGB6W4

#205 Arb Watson on 01.04.16 at 3:25 pm

SDS to play with the markets in 2016.

#206 Romulus on 01.04.16 at 3:27 pm

#22 Common Sense

That is happening all over Canada. Standard of living is a down trend. It is not only the Millenials that are having a tough time.

Before I forget: Immigating to Canada is not a big deal any more. I guess nowadays it is all about where the crap stinks less.

#207 Toronto Dweller on 01.04.16 at 3:29 pm

32 year old male here. Worked in the oil patch until Sept. 2015 in security (as in security guard), got laid off moved back to ON. After a string of odd jobs here in GTA and living paycheque to paycheque, looking for retraining. Two areas I am focusing are construction/trades or programming, to diversify my skill set and maybe get that decent paying job. Any advice or suggestions?
I know it’s tough out there, economy and job wise so I though it’s a good time to go to school for something practical that could increase my basic income.

#208 conan on 01.04.16 at 3:30 pm

The markets start off with a clunk……. could go into deep mode……

#209 John on 01.04.16 at 3:36 pm

yo…. Love the Gartho – drama queen put down. Made my day. Dow testing below 17000. Dipping faster than a row of SF in 905……. LOL

#210 45north on 01.04.16 at 3:49 pm

George S: Think back, What did you really learn at school that you use in your everyday life now?

JimH: As my life has progressed, I have come to realize just how much I did learn in school,

me too

Apocalypse2016: Canada is so screwed. When the real estate bubble explodes, we will finally realize how little there is left here of any kind of economy.

so what are you doing about it? Here’s how I boost my creative spirit: I take an hour and a green plastic garbage bag and walk down the street and pick up the garbage.

#211 Julia on 01.04.16 at 4:01 pm

#200 IHCTD9

I can see upsides to both small town and major city.

I grew up in a smaller town, parents with little money originally, spent our time outside playing in the trees, fields etc…Amazing memories, still in contact with friends from back then in the 80’s.

Graduated from University, moved a few times for my career, now in Toronto. We live in the City, kids in public school. don’t drive much except for hockey (only 1 older car), walk a lot to everything close by and I TTC to work (my husband walks). Small house and small lot to maintain so lots of extra free time. Spend a lot of that free time outside in the neighborhood, with friends and amazing neighbours.
It would personally drive me batty to have a long commute everyday, car or transit.

#212 IHCTD9 on 01.04.16 at 4:19 pm

#202 saskatoon on 01.04.16 at 2:48 pm
#182 Lorne

“Primary teachers are the MOST important teachers in the system.”

most important?

yes, i agree.

but important for what?

1. attachment disorder
2. artificial childhood extension
3. ego destruction
4. narcissism
5. class stratification
6. socialist indoctrination
7. gender confusion/male-hating
8. aggression
9. medicalization
10. hyper-sexualization
11. learned helplessness

in fact, these students will have so little value after 13 YEARS of state school…that the government forces companies to pay them a minimum wage.

kinda makes you wonder what young people are REALLY learning…and WHY the government pours so much money into “education”.

“The only thing that interferes with my learning is my education.”

– Albert Einstein

______________

The following usually pisses everyone off, but it is a truth none the less:

My kids enjoy academic competitions over sports, so I have gone to many spelling bees, poster contests, mathematics challenges, chess matches etc…

There is a definite trend, and anyone who frequents these types of events will probably have also noticed as well:

The Public Schools rarely place well. The only exception is if the individual school happens to have a lot of Asians in it which drives up their performance on everything. The usual suspects for the top spots are Home Schooled, and Private Schooled kids.

I’m sure this is not true in the GTA due to the huge numbers of immigrants, but outside the big immigrant populations, you just don’t see PS kids doing very well academically.

In fact, you can literally line up teacher compensation packages alongside student performances and note a direct correlation:

The more money the teacher makes, the poorer the student does in school.

#213 Saskatchewanite on 01.04.16 at 4:38 pm

#99 Neo Anderson on 01.03.16 at 10:06 pm
I wonder if there are any Mr Money Mustache followers on this blog. I think if you head over there, you would see a lot of Millennials living below their means. That blog in combination with this blog is just pure gold.

AGREED! I’m definitely a Mr. Money Mustache follower! I’m 34yrs old. My brother is an even more Mustachian than I and he’s 28yrs old! Thanks for commenting!

#214 OXI in GREECE on 01.04.16 at 4:38 pm

#201 Godth on 01.04.16 at 2:34 pm

Y’all Qaeda winning hearts and minds in Oregon.

Welcome to 2016 everyone!
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Your suggesting “negotiating” with the MURICAN govt works? Do some research. The US Police Forces have stolen more cash from people on the side of the road than all criminal activity combined in the USSA last year. They are a corrupt gang of totalitarian thugs and being are finally saying “were not going to take it anymore”.

And you think this is funny?

Your comment was not funny.

#215 OXI in GREECE on 01.04.16 at 4:39 pm

sorry…”and people are finally saying…..”

#216 TnT on 01.04.16 at 4:41 pm

202 saskatoon on 01.04.16 at 2:48 pm

Wow, the ignorance today regarding early childhood education is astounding and the lack of respect for the very noble profession of teaching is concerning.

I feel embarrassed for you, hopefully you learn to regret your disgusting list. You obviously know very little on what it takes to help develop and expand a child’s mind in order to make and sustain this great society we live in.
Just think of the multitude of cultures from which we have here in Canada and the required process co-exist in a civil society.

If you live to never understand how disgusting your post is then you failed at the greatest opportunity a living being could ever have on earth.

#217 TurnerNation on 01.04.16 at 4:55 pm

Yes SM SPY ran over and over into serious level wall.

#218 paul on 01.04.16 at 5:24 pm

#192 Mark on 01.04.16 at 1:35 pm

Even the Toronto Hells Angels are renters now
————————————————————-
I think we need to get Jonathan to call Canada revenue agency.
Make sure you let the bikers know your address.
Jonny Boy

#219 Godth on 01.04.16 at 5:28 pm

#214 OXI in GREECE on 01.04.16 at 4:38 pm

How about VanillaIsis? Funny.

#220 saskatoon on 01.04.16 at 5:28 pm

#216 TnT

the only embarrassment here is crap parents shipping their babies off to government sponsored strangers…

…who get paid through funds extorted through the initiation of government force.

these children grow up to realize their parents sold out parenthood to the highest bidder…

psychological distress often ensues…

that being said, private schooling is obviously different.

if you call this “noble”, then you have spent too much time being hollowed out in institutions already.

#221 Frank on 01.04.16 at 5:31 pm

Quit this crap about the nobility and importance of a profession. Janitors gaurd us from the spread of plague by preserving sanitation standards but we don’t pay them $100K.

We’re not talking about how important anyone thinks their job is. We are taking about economics. Why pay someone above market rate when there are a glut of teachers?

#222 Julie K. on 01.04.16 at 5:32 pm

Pins and needles waiting for the next post.

Not that it’s a new sensation or anything.

#223 Only-inflation-to-reduce-debt-burden on 01.04.16 at 5:38 pm

So suppose you read the article attached and where ever it says New York you can add Toronto instead…

http://www.nytimes.com/2015/11/30/opinion/inequality-and-the-city.html?smid=fb-share&_r=0

#224 stickman on 01.04.16 at 5:39 pm

#99 Neo Anderson on 01.03.16 at 10:06 pm

I wonder if there are any Mr Money Mustache followers on this blog. I think if you head over there, you would see a lot of Millennials living below their means. That blog in combination with this blog is just pure gold.
——————–

I second that. Been following both for years. The two best no-BS, pragmatic sources of financial advice IMO.

#225 Herf on 01.04.16 at 5:44 pm

#143 George S

“Think back, What did you really learn at school that you use in your everyday life now?”

Typing. Most practical “skill” I think “school” ever taught me. (Critical thinking, probably not so much – that came later).

Took typing in Gr. 9, never to use it for the next four years until I took my first computer programming course at a community college (where we used punch-cards and punch-card machines to generate our code). The typing skill came back to me like riding a bicycle.

Then in university, had to take more computer programming (done via dumb terminals). Typing ability helped speed up entering code. Then as personal computers entered the business world and became used for things like word processing, spreadsheets, drafting, number-crunching, etc., well, I’m still typing to this day.

#226 espressobob on 01.04.16 at 5:55 pm

Markets hammered! All hell is breaking loose! The end is near! Sell why you can?

Contrarians love this stuff. Please, hit the panic button.
Thanks.

#227 Victoria Real Estate Up on this Date (way up) on 01.04.16 at 6:02 pm

Greater Victoria homeowners will generally see property assessment increases of between two and eight per cent thanks to the region’s robust real estate market.

The latest numbers indicate a “really good healthy trend in values upwards,” said Reuben Danakody, Vancouver Island assessor for B.C. Assessment. “All the areas that have historically trended above others are doing the same thing again.”

These include single-family houses in sought-after neighbourhoods such as Oak Bay, Cadboro Bay, North Saanich, and Central Saanich, he said.

Notices are going out to owners of 148,000 properties in the capital region, showing the estimated market value as of July 1, 2015, and its physical condition as of Oct. 31, 2015.

The volume of real estate transactions this year has exceeded the previous year by at least 30 per cent, Danakody noted.

He said that increase “demonstrates there is good confidence in the real estate market here, which is excellent.”

As sales climbed, values increased, Danakody said.

http://www.vancouversun.com/news/metro/strong+real+estate+market+boosts+greater+victoria+property/11629972/story.html

#228 Smoking Man on 01.04.16 at 6:03 pm

#217 TurnerNation on 01.04.16 at 4:55 pm
Yes SM SPY ran over and over into serious level wall.

Late day plunge protection team.. ak Fed traders saved the day.

#229 Herf on 01.04.16 at 6:04 pm

#152 Apocalypse2016

“Harper has hollowed out our industrial base”

Specifically, how did Harper hollow it out?

I’d argue (at least, for Ontario) it was the incompetence of the McGuinty/Wynne government, and that of business/manufacturing itself that vaporized industry – government for its misguided green energy program that has driven up business operating costs in the province, and manufacturing companies for not investing in re-tooling while the Cdn. dollar was at or closer to parity with the U.S. dollar.

Harper, in conjunction with McGoofy, gave two of the Big Three auto manufacturers a bail-out, after the company’s got themselves on the financial ropes from years of mis-management and union kow-towing. Despite the bail-outs, there was/is no guarantee these two (or any) auto manufacturers will remain in Ontario.

I don’t think government can do all that much to encourage a viable industrial base to set up shop in the country/province, but it can sure do a lot to discourage it.

#230 Arb Watson on 01.04.16 at 6:06 pm

This is very entertaining. Sky is the limit.

http://www.huffingtonpost.ca/ben-myers/toronto-vancouver-real-estate_b_8810878.html

#231 OXI in GREECE on 01.04.16 at 6:13 pm

#219 Godth on 01.04.16 at 5:28 pm
#214 OXI in GREECE on 01.04.16 at 4:38 pm

How about VanillaIsis? Funny.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

What govt agency did you say you work for?

#232 bdy sktrn on 01.04.16 at 6:37 pm

tratcor man – things may be a bit different in van.
many of the kids in private school are floating on an ocean of daddys millions and often are spoiled useless shits. also in van most public high schools have a ‘mini school’ which often has EXTREMELY demanding academic standards compared to the majority public or private classes. Only the brightest get in and then there are many kids who can’t hack it and drop out.
———————————

Public school students better prepared for university
UBC study suggests lack of individual attention at public schools gives students edge at university

The UBC study looked at 4,500 first year physics and calculus students between 2002 and 2006 at UBC and found that public school graduates scored an average of about two to three per cent higher than private school graduates.

UBC mathematics professor George Bluman, who was one of the study’s authors, said the lack of individual attention on students in public schools may actually give students an edge in the tougher university environment.

“Public schools have a lot to offer students and there’s some myths out there that you’re better prepared when you go from independent schools,”

“The university is more like a public school, the students probably don’t get as much attention, the students have to stand more on their own two feet. And some of the independent schools are all-boys schools and maybe boys have trouble adjusting when girls are present.”

Bluman said students from East Vancouver outscored those from the more affluent West Side, and Vancouver students perform better than those who come from other parts of the province.

#233 PVSinsight on 01.04.16 at 6:40 pm

“Primary teachers are the MOST important teachers in the system.

Yeah I can come up with reasons why every job is important. Fact is there is an oversupply of qualified teachers so why are we paying so much for them?”

Using your argument, one can conclude that paying a CEO the equivalent of 100 times+ the average Canadian salary is reasonable to maintain the virtues of supply and demand economics.

Simply because there is an oversupply of a profession should not be a key determining factor in the value of compensation for any profession that pays dividends to society down the road.

Shall we embark on the path of the American education system where there is a high turnover of educators due to the system running an essential service using a heavy business perspective?

#234 TnT on 01.04.16 at 6:43 pm

#220 saskatoon on 01.04.16 at 5:28 pm

Hahaha, your response clearly shows your mindset.

Everyone is a stranger until you meet them.

Enjoy the roads, police and hospital your extorted funds provide? How about the fact that we have cultures from all over the world living in prosperity in our society with our public school system.

Your post shows you are angry and scared, you lack the capabilities of understanding the big picture and fear it.

Relax, get out more and take a night course to expand your critical thinking.

#235 Ret on 01.04.16 at 6:47 pm

Yes, out of the 100000+ (76000 ETFO +50-60000 OSSTF + 34,000 OECTA) teachers in Ontario, I am publicly prepared to concede that at least 1000 earned more than $100,000. it may even have been 2000 teachers.

Some no doubt taught summer school and/or night school and some were returned money held back when they withdrew from 4 over 5 leave plans. Teachers in remote northerly areas also received somewhat greater salaries which may have taken them just over the $100,000 threshold.

Is everybody happy now? Probably not.

#236 TnT on 01.04.16 at 6:49 pm

#221 Frank on 01.04.16 at 5:31 pm

Your a typical Canadian – crabs in a bucket. See a crab getting a good salary, pull themselves out of the bucket and you pull them back in. Instead of lowering someone else’s success why not pull yourself out of your bucket.

#237 Godth on 01.04.16 at 6:57 pm

I don’t work for any gov’t, not directly anyway. I’m currently working with these folks:
https://www.youtube.com/watch?v=rLDgQg6bq7o