Nasty nation

1CAULIFLOWER

So much angst, so little cauliflower. Since raising the issue of the buxom, snowy, virginal veg here on the weekend, it’s turned into an icon for our current dollar dilemma, drifting into the MSM. But enough. Let’s move on. The loonie’s not about to improve much until we see what the central bank has in store for us on Wednesday. Meanwhile stocks have bounced back and oil stopped suiciding. Debt, however, marches on.

There was an eye-popper this week from the pointy-headed accountants at BDO. A new survey found four in ten indebted little beavs will pay off nothing this year, and a huge number of them couldn’t withstand any extra overhead. In fact, this shows how extreme people have been with their borrowing, and how much job stress they’re feeling. The percentages below are the proportion of people who’d find it hard or impossible to make their monthly if…

Debt payment rises by $100: 29%
By $200: 46%
By $300: 62%
By $400: 77%
By 600+: 80%

Yikes. Almost half the population would start to fold financially if faced with two hundred bucks a month more. So where are they going to get all the extra money to buy weed? Obviously this is why 70% of us own real estate but 93% have failed to max out TFSAs. Moreover, it’s a contributing factor to the currency plop, the economic malaise affecting the cauliflower of the nation, and our dismal nature – on display nightly in the steerage section of this ageist, sexist biker blog.

Daily, Canada looks like a less attractive place for money to flow. The world gazes at us and sees a commodity-dependent nation in a cheap-oil world where nutso citizens have pickled themselves in debt selling each other houses at dumb prices, while jacking the top marginal tax rate over 50% as government revenues choke and layoffs swell. Is this a country you might wish to avoid? Obviously lots are. The dollar tells you that.

But let’s talk about Beth. She’s emailed me a few times now. Kinda germane to this drift. And this week I think her situation came to a head.

“Can I please seek your opinion?” she asked again. “I’m thinking of divorcing my husband because he just won’t budge and thinks real estate is bad to invest in. I will provide all information to you but if you end up making a blog about this please put my name as anonymous.” So, yeah, her name isn’t Beth. But what she expresses is so common in our society, going to the heart of why we’re at risk.

Beth wants a house in suburban GTA. “Please give me your take on what someone in my situation should do. Two average incomes, two kids, no property living in a family’s basement paying minimal rent ($900). It is time for my quality of life to change.”

So why not rent a better space, I asked?

“To rent a family home would be between $1500-$2200/month. Why in the world is my partner so adamant that if we decide to leave the basement that we cannot buy? It’s a fight that has been going on and I have been patient but I cannot understand nor can I say your blogs speak to my situation. How can an asset (that can be over priced) be worse to put our savings in than renting and paying someone else’s mortgage while we work our regular average jobs to support our family?”

I wrote back and discovered Beth & Hubs earn $116,000 between them, have two young kids, total savings (cash, RSPs, tax-free) of $125,000 and she wants to buy a house costing $700,000. The bank’s egging her on, offering $600,000 in financing. “It is entirely possible with these low interest rates it will be more but my partner doesn’t want to even see high numbers because they are adamant we don’t have enough money saved and will get screwed over.”

Well, the facts seem simple enough. To buy a $700,000 house with closing costs will take their entire savings and leave them with a six hundred thousand debt. Borrowing for five years at 2.6% means $2,720 a month. Property tax, insurance and a modest reno/repair budget (under $5K per year), plus the lost earning power of their down payment (at just a 5% annual return) adds another $1,520. So the house costs $4,240 a month – or double the rent.

Over five years it means an extra $130,000 in cash flow. Meanwhile they’d have zero savings, no emergency fund, no fund for their children, no capacity to put anything away for the future, nothing but heartache if a job were lost and $600,000 in debt, guaranteed to reset at a higher rate in five.

And now she’s thinking about divorce. At 32 years of age with kids. Over a house.

This is so Canadian. Borrow big. Roll the dice. Put it all on one trade. Forget savings. Be a fatuous parent. Feel entitled. And if you fail to get your way, in the teeth of caution and logic, lash out. Blame your spouse. Or Chinese guys. Some pathetic blogger. Or the Boomers.

But never yourself. That would be too nasty.

And now a message from blog dog John: “Where the Canadian dollar is headed…”

DOLLAR

348 comments ↓

#1 Rick on 01.14.16 at 4:47 pm

First?

#2 Ray Skunk on 01.14.16 at 4:48 pm

Beth surely can’t exist.

This has to be a Freedom First false flag…

FF get in here, Garth’s teed it up nicely for you!

#3 Penny Henny on 01.14.16 at 4:48 pm

#325 mark on 01.14.16 at 3:32 pm
BMO Preferred share laddered rate reset index etf ZPR has lost 35% in last 52 weeks and has UNDERPERFORMED the tsx by 22% as of friday.
This is getting scary!

http://www.theglobeandmail.com/globe-investor/markets/stocks/summary/?q=ZPR-T

Blame Poloz. Meanwhile you are getting a 6.3% yield. Why does everyone buy prefs for the wrong reasons? — Garth
///////////////////////////////
You mean you are getting a 6.3% yield if you bought at today’s prices?

#4 New Stock Canadian on 01.14.16 at 4:50 pm

Hubby better start shopping for a hide-a-bed. Whether he wins or not she’s gonna pull the pin on him. The resentment is already starting.

#5 Doug t on 01.14.16 at 4:51 pm

Second

#6 Kreditanstalt on 01.14.16 at 4:52 pm

You do go on and on about TFSAs. They MAY be of some use to the @20% of the population still with breadwinner incomes but the reason they are “underused” is more likely that the rest of us have zero discretionary income.

Besides…money in a TFSA is earning a pittance. It should now be put to work speculating in some of the real asset sectors that have been beaten down by the flood of cheap money.

TFSA room lasts your lifetime. If you don’t plan on being a financial basketcase forever, why would you not want it there for you? And a TFSA can hold virtually any asset. It is not a savings account. Surely you knew that. — Garth

#7 Julie K. on 01.14.16 at 4:54 pm

Could All Use Less Interest For Lowly Ownership
With Ever Rent.

#Cauliflower

#8 canuck on 01.14.16 at 4:55 pm

Beth, do yourself a husband a favour and divorce him.

Beth’s husband – If you’ve figured out we’re talking about you… run. Run like hell

#9 How dare you on 01.14.16 at 4:59 pm

I can’t believe you called fatuous, I think I look great in these jeans ;{

#10 Penny Henny on 01.14.16 at 4:59 pm

The percentages below are the proportion of people who’d find it hard or impossible to make their monthly if…

Debt payment rises by $100: 29%
By $200: 46%
By $300: 62%
By $400: 77%
By 600+: 80%
/////////////////////////////////////

I’m sure that this stat refers to those who have debt.

People who have monthly debt payments usually do. — Garth

#11 Doug t on 01.14.16 at 4:59 pm

Our society has fallen off a cliff – narcissistic, irrational and blind to the time and energy they are wasting in this short window of time we have on this rock. Instead of investing in material growth they should be investing in spiritual growth – some days I feel like I’m on the titanic

#12 Rick on 01.14.16 at 5:00 pm

Garth, you are bang on; on this! I would never, ever, ever, liquidate everything; just to have a 600K mortgage. Heaven help them, if one ever lost a job; got sick ect.

Living in a basement sucks. It’s still better than no savings and $600K of debt. Maybe they should consider relocating to a less expensive area?

#13 acdel on 01.14.16 at 5:02 pm

canuck

Beth, do yourself a husband a favour and divorce him.

Beth’s husband – If you’ve figured out we’re talking about you… run. Run like hell
_____________________________________________

I second that! Wow, just wow!!!!

#14 Penny Henny on 01.14.16 at 5:02 pm

Daily, Canada looks like a less attractive place for money to flow. -GT

///////////////////////////////////////////

Serious question for you then. Why are Canadian bond yields so low then?

Anticipation of a rate cut. — Garth

#15 Arfmooocat on 01.14.16 at 5:03 pm

Good pic… ha ha

#16 Mark on 01.14.16 at 5:05 pm

The big question in my mind is how many economic migrants to Canada simply pack up and “go home” when it is widely apparent that the “free equity” era is over?

There was already an article on the TV news yesterday featuring an economic migrant from the Phillipines complaining that her finances are being squeezed because, to achieve the same Phillipine-currency equivalent of a monthly remittance, she needed to cough up substantially more Canadian dollars. The article went on to cite remittances of more than $30B/year from Canada. Many of these migrants, especially with in-demand service sector experience, are highly employable and desirable in the United States (unlike Canadian IT professionals) and elsewhere with stronger currencies.

If these people not only dump Canada, but also tell their friends not to come to Canada, what does this do to Canadian RE? Puts a significant amount of incremental selling pressure on it, that’s for sure. Combine such with the significant oversupply and the past few years of falling prices, and you have some pretty significant declines just on account of the supply/demand balance. Without even addressing the fact that investors are applying way too optimistic off a discount rate for the risk involved.

The ‘math’ has Canadian RE at an after-tax equivalent P/E of around 35. If that gets reverted, to say, a more historically normal 8-10, and we see negative growth in rents, the amount of equity destroyed is likely to be epic.

That was epicly stupid. — Garth

#17 Frank on 01.14.16 at 5:06 pm

So Garth while you’re right that it puts them in a bad situation, many have ‘won’ because housing has skyrocketed. So your advice has been irrelevant for the last 6 years because the situation you warned about hasn’t happened. May not happen this year either. When does it have to end? Can this continue another 2 years? Another 10? Another 20? Sure it’s risky but are there any hard limits coming up?

It’s not a winning strategy unless profits are crystallized and debt risk reduced. But, you and many others will learn that as time passes. — Garth

#18 fishman on 01.14.16 at 5:07 pm

I just heard T2’s statement on the Jakarta bombings on CBC. He stated “we”ll have more to discuss when uh ah uh we have more to discuss”. Is this like “da proof is da proof is da proof”? Perhaps our fearless leader could decode politico speech for us laymen & further discuss. In the meantime, economically, anywhere touching the Pacific here in B.C. is smouldering & Vancouver is smokin.

#19 jim on 01.14.16 at 5:09 pm

i know t2 is not your first pick and your upset with the financial shape people accept today but most every country in the first world is in similar shape to canadians…look at the positives…big country few people…lots of raw materials that one day will become valuable again…for the most part the people are educated…we’re tolerant for the most part…we get to pick who comes to our country ..they can’t just walk in…i could go on …i saw a well known shark and listened to him rant for 5 minutes…it’s so bad here he only managed to become wealthy…there are a lot more positives than negatives..someday things will get better

Of course, and that’s why people should stay invested, stop obsessing about short-term fluctuations and learn basic financial literacy. Having said that, our dollar and economic climate are not be helped by silence from the top. — Garth

#20 M on 01.14.16 at 5:09 pm

Beth should get a last warning before the pink slip

#21 For those about to flop... on 01.14.16 at 5:11 pm

#6 Kreditanstalt on 01.14.16 at 4:52 pm
You do go on and on about TFSAs. They MAY be of some use to the @20% of the population still with breadwinner incomes but the reason they are “underused” is more likely that the rest of us have zero discretionary income.

Besides…money in a TFSA is earning a pittance. It should now be put to work speculating in some of the real asset sectors that have been beaten down by the flood of cheap money.

TFSA room lasts your lifetime. If you don’t plan on being a financial basketcase forever, why would you not want it there for you? And a TFSA can hold virtually any asset. It is not a savings account. Surely you knew that. — Garth

//////////////////////////////////

I won’t bore everyone by reposting my TFSA story at # 284 yesterday,but I am just keeping up with the TFSA now but I am already looking to bump it up in 2030 if I’m still kicking.
I’m looking long term not just 5500 for this year, how can I keep it maxed out until I hit room temperature as Boomer Wi says.
Don’t poop on people for saving ,they will help you out in the future…

M41BC

#22 Jimmy on 01.14.16 at 5:11 pm

15th?
I’m still happy with that

#23 Chris in Nanaimo on 01.14.16 at 5:12 pm

Wow….

Divorce your husband when all he is trying to do is protect his family financially……?????

#24 M on 01.14.16 at 5:12 pm

Rate cut as I said before. Count 6 months and housing comes off he cliff. Oh yes.. Jenny the Fed will lower the interest rates, apologize for her mistake and prepare QE4.
..while wetting another pair of depends.

..Gartho got a bit excited by it but he’ll see the light. He always does

#25 Only-inflation-to-reduce-debt-burden on 01.14.16 at 5:12 pm

With everyone selling their homes and becoming renters, those who want to remain homeowners but cannot afford $200 more a month can simply rent out a room….. Problem solved……

The major contributor to our currency flop is dirty-oil and add to the the strength of the Yankee $ and also the commodities markets…..

Our shinning cities are still very attractive to the foreign investor and to the world migrant…..

These are the best of times to grow our cities and so we shall…..

#26 acdel on 01.14.16 at 5:14 pm

Not sure if Garth will post this link but if so; I would like to hear some opinions on this; whom ever is willing, much appreciated!

http://business.financialpost.com/news/fp-street/equitable-launches-digital-bank-with-3-interest-savings-account-to-lure-deposits-from-canadian-rivals

Why would you put money into a bank with no branches, no retail staff, no track record and whose asset base is made up of mortgages in a bubble market? Not enough risk in your life? — Garth

#27 Mike in the Okanagan on 01.14.16 at 5:16 pm

Enough with the clueless socialists leading our provincial and federal governments. O’Leary for PM!

#28 M on 01.14.16 at 5:17 pm

Re the babe-thinking… why would someone divorce just because the partner doesn’t want real estate ?
Had she been beaten stiff , yeah.. there is a reason for divorce… hubby drunkard ? yes… another reason for divorce…or gambler…
..but REAL ESTATE ?
It just shows the lack of maturity of some women out there.

I have no compassion for tza byatch

#29 Why Why Jay on 01.14.16 at 5:17 pm

“So where are they going to get all the extra money to buy weed?”

From the cauliflower budget obviously. Instead of cauliflower crust “pizza” the millennials will buy weed to help choke down affordable, gluten-filled, flour crust pizza.

When organic kale goes through the roof they might be forced into a diet consisting primarily of weed and Kraft Dinner (mac and cheese for you Americans.. in Canada we’re so poor we call it dinner).

#30 crossbordershopper on 01.14.16 at 5:20 pm

o’leary will be a joke for conservative leader, but what he saids is correct, the best and brightest will leave when taxes in ontario are now 50% plus, restrictions on ccpc that have not come out yet and the metric dollar payments.
the best and brightest dont have to wait much longer, now that powerball lineups are over at the border, just roll in, fill out the paperwork and educated, qualified people will always be welcome in the usa.

#31 acdel on 01.14.16 at 5:24 pm

Not sure if Garth will post this link but if so; I would like to hear some opinions on this; whom ever is willing, much appreciated!

http://business.financialpost.com/news/fp-street/equitable-launches-digital-bank-with-3-interest-savings-account-to-lure-deposits-from-canadian-rivals

Why would you put money into a bank with no branches, no retail staff, no track record and whose asset base is made up of mortgages in a bubble market? Not enough risk in your life? — Garth
_____________________________________________

Thanks for the feedback; fair enough, very true!
Little risk for me, I am in it for the long haul but always inquisitive.

#32 Only-inflation-to-reduce-debt-burden on 01.14.16 at 5:25 pm

It is a sign of the times that people are moving into cities regardless the country.

Read this and change every “New York” to Toronto and understand more why people are moving to the cities….

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

G,,, You & I are old and have to move over for the new wave coming to take it over….

Shinning cities are the future and Canada is building two of her own,,, period….

You sound a helluva lot older than me. — Garth

#33 Dirty Debtor on 01.14.16 at 5:27 pm

Beth needs to do a little quick math. All divorcing hubby will do is land them in 2 separate subterranean abodes. After paying lawyers and all the other nonsense, what will be left in the budget for cauliflower?

The hormones rage in this one. Of course compromise can’t be made on an above ground rental; the lady friends won’t be impressed unless that tile backsplash is accompanied by a fat juicy bank loan.

#34 Why Why Jay on 01.14.16 at 5:28 pm

“TFSA room lasts your lifetime. If you don’t plan on being a financial basketcase forever, why would you not want it there for you? And a TFSA can hold virtually any asset. It is not a savings account. Surely you knew that.”
— Garth

————–

And here is why TFSA room is being reduced. The majority of people have no clue what TFSA stands for or think it’s a savings account (akin to a “high interest” account).

Maybe the name is partially to blame? They should have called it a tax free savings plan (to match rrsp).

#35 bill on 01.14.16 at 5:28 pm

Beth
why cock it all up?
for a house?
and somehow divorce will get you that house?
I am not following your logic there .

#36 New Stock Canadian on 01.14.16 at 5:33 pm

#34 bill on 01.14.16 at 5:28 pm

Oh Bill, I assure you, one way or another she WILL buy HER house. She’ll either get hubby to cave, or pay for it out of the settlement.

#37 Vundo on 01.14.16 at 5:33 pm

I can think of a lot of ways $2k per month would benefit my quality of life. Diving into over half a million dollars of debt is far, far away from that. Maybe I would not invest it in my portfolio. Maybe I would pay for music lessons for the kids, a family vacation, etc. Real quality of life stuff. The sad thing is, I never used to think this way. I was like her. I started learning about money for much the same purpose: to figure out how to qualify for a monster mortgage. What I learned instead is why not to pursue my original goal.

#38 Penny Henny on 01.14.16 at 5:33 pm

Hey FF. They named a fish after you!

http://news.nationalpost.com/news/canada/the-assfish-a-bony-creature-with-a-tiny-brain-and-a-big-mouth-makes-its-royal-bc-museum-debut

#39 mitzerboy aka queencity kid on 01.14.16 at 5:39 pm

thanks garth fir lettin this boomer with a balanced portfolio know everything is okalee dokalee

touch that dial
turn it on
lovin every minute of it

#40 Suburbanmom on 01.14.16 at 5:40 pm

A mom in GVA tell’s me today they are looking to buy next month. I said ” why not wait and see what happens” she tells me her husband will be passing his real estate license soon so they want to buy next month. Then her face lights up and say’s ” we are looking at 1.2-1.4 million range. She works part time and he is a broker/realtor. So many people with the same story. Today I decided not to offer my free opinion anymore because people are going to do whatever they want to do.

#41 Penny Henny on 01.14.16 at 5:41 pm

#26 acdel on 01.14.16 at 5:14 pm
Not sure if Garth will post this link but if so; I would like to hear some opinions on this; whom ever is willing, much appreciated!

http://business.financialpost.com/news/fp-street/equitable-launches-digital-bank-with-3-interest-savings-account-to-lure-deposits-from-canadian-rivals

Why would you put money into a bank with no branches, no retail staff, no track record and whose asset base is made up of mortgages in a bubble market? Not enough risk in your life? — Garth

///////////////////////////////////

Aren’t the first 100G’s insured by govt anyways?

#42 Bloodcross on 01.14.16 at 5:41 pm

The cost of a $600000 mortgage at 2.6% is $1300 / month. Payments will be higher but the rest is capital, so it shouldn’t be factored in as cost. On their $125k downpayment, after tax, most people will clear ~$5k, not 5% after tax. So if we say 5K for taxes, 5k for maintenance, 5k for lost revenue, we get another $1250 a month.

So the REAL COST for owning that house is ~2550$ / month. That’s the number they need to compare with rent. Renting is still going to come up as a better option, but lets compare cost with cost, not cost with cost+investment.

Always nice to have a realtor drop by and tell people that a $2,700 payment to the bank is really just $1,300, with Re/Max and Royal LePage faeries making up the different in equity pixie dust. As for investing $125,000, most of it could be done inside two TFSAs, zero tax. Capital gains, by the way, are not taxed or reportable when unsold. How’s the Audi running? — Garth

#43 conan on 01.14.16 at 5:41 pm

Renovated basement or cauliflower storage room?
Is it a 900 dollar rent dealio or a 900 dollar rip off?

Worst time to buy a house is now……
Suck it up Beth and wait patiently for house prices to correct.

I give it 120 days before the SHTF with Canadian RE.

#44 Steerage Bilge on 01.14.16 at 5:42 pm

#38 Penny Henny on 01.14.16 at 5:33 pm

Hey FF. They named a fish after you!

http://news.nationalpost.com/news/canada/the-assfish-a-bony-creature-with-a-tiny-brain-and-a-big-mouth-makes-its-royal-bc-museum-debut

hehe,,, hilarious

#45 45north on 01.14.16 at 5:43 pm

To rent a family home would be between $1500-$2200/month. Why in the world is my partner so adamant that if we decide to leave the basement that we cannot buy?

Beth give your head a shake. You lose your job or your husband loses his. At what point do you say “you know I pushed him into this”?

which gets back to the first point:

if debt payments rise by $200 ( a month ) then 46% of the population could not afford it. Which does not mean they instantly lose their house but it does mean they are under financial stress.

which damn well does mean that if interest rates rise just a bit then half the people are going to be under financial stress. As Mark says: even if the official Bank of Canada interest rate doesn’t rise, the rates the banks charge can rise.

Which brings me to the subject of defined self-aware groups. What I mean is that when banks raise the interest rates on mortgages it doesn’t effect everyone all at once. No they raise their rates and then individual families pay more on renewal. In a housing development of a 1000 houses, then maybe only a dozen are immediately affected. And the important point is they don’t go to public meetings and complain!

so the banks are raising mortgage rates!

#46 For those about to flop... on 01.14.16 at 5:43 pm

Yesterday’s post was titled “Priorities”.
I am a peasant but I still find a way to put $15 dollars a day in my TFSA.
Step away from the sugar people ,your waistline will thank you and your TFSA will be more palatable…

M41BC

#47 Penny Henny on 01.14.16 at 5:44 pm

#28 M on 01.14.16 at 5:17 pm
Re the babe-thinking… why would someone divorce just because the partner doesn’t want real estate ?
Had she been beaten stiff , yeah.. there is a reason for divorce… hubby drunkard ? yes… another reason for divorce…or gambler…

/////////////////////////////////////

Smokey, M is dissing you, trying to get the old lady to leave you and be with him so he can have half your millions.
You’ve been warned!

#48 bill on 01.14.16 at 5:46 pm

#36 New Stock Canadian on 01.14.16 at 5:33 pm
I see your point but divorce is very expensive and the split of assets doesnt look to me like it will finance the house of her dreams…
but your point that she will ‘go for it’…
sadly I have to agree!

#49 steerage steward on 01.14.16 at 5:47 pm

Life at $20 a barrel: What the oil crash means for Canada

http://www.macleans.ca/economy/economicanalysis/life-at-20-dollar-oil-nation-divided/

#50 X on 01.14.16 at 5:47 pm

Yeah a divorce, that will get your wealthier in a hurry too. LOL. Right up there with buying a house when RE has never been higher.

Re:#6 – no breadwinner incomes needed to utilize a TFSA, guess you fell for Trudeau’s pitch job. As GT metnioned, TFSA room can be utilized at any time, great for seniors and retirees downsizing, collapsing a RRSP or simply with some extra cash…

#51 Leo Trollstoy on 01.14.16 at 5:49 pm

financially if beth divorced her husband, her husband will be the luckiest man alive. or the other answer is that beth hates her 2 kids and wants to see their family suffer financially. not sure which one

#52 -=jwk=- on 01.14.16 at 5:50 pm

On the day T2 was elected, the dollar was worth 76.8 cents. Less than 90 days later it’s at 69.7 US pennies, or a stunning decline of more than 9%. A big contributor has been oil, which was trading at $46.90 on election day and has since wilted 34%, or $19 a can. This has materially impacted the national economy, with the stock market tumbling more than 11% since shiny pony was elected….

yes indeed, if only Harper had won things would be SO much different!

We had 10 years of “borrow and spend” government, most of us are willing to try the ‘tax and spend’ method for a little bit….

Ah, dude… T2 is planning to borrow most of the money. That part must not have fit inside the Tweet. — Garth

#53 Nemesis on 01.14.16 at 5:51 pm

“Blame your spouse. Or Chinese guys.” – HonGT

#DisciplinaryWatchDogs… #VowToLeaveNoSpouseUnturned,Or… #”Loyality!Cleanliness!Responsibility!”…

[Xinhua] – Corrupt officials in key posts top anti-graft target: Communique

The communique specified that those who attend private VIP clubs or organize secretive get-togethers will be punished heavily. For those who attend the gatherings, disciplinary officers will talk with them and require them to review their mistakes at intra-Party conferences.

http://news.xinhuanet.com/english/2016-01/14/c_135010453.htm

#54 Leo Trollstoy on 01.14.16 at 5:51 pm

#16 Mark on 01.14.16 at 5:05 pm

there goes mark being anti-immigrant racist again just
like on rfd. some things never change

#55 Lulu on 01.14.16 at 5:52 pm

Cum on Beth, buy cauliflower better than house at the moment, and your hubby definitely is a KEEPER, he knows what is going on right now in this time of the year and 600k is a freaking huge debt while cauliflower only cost 8 bucks, you do the math.

#56 Love this Blog on 01.14.16 at 5:54 pm

Hubby, if you are reading this, take advice from me and beat her to the punch . Keep your firm “no” and if it weren’t for the kids?? I’d jump on the chance to divorce HER. Don’t let your financial life be ruined by someone who bases all their decisions on emotions

#57 Blogbitch on 01.14.16 at 5:55 pm

Beth, my dear, you must learn that there are better ways to be a strong woman of vision who leads yourself and your family valiantly into the unknown future. Threatening to divorce your husband over a house is just silly and deep down you know it. Time to go back and read Garth’s blog from the beginning.

#58 Bloodcross on 01.14.16 at 5:55 pm

Lol, I’m really a video game programmer but if you want to believe I’m a realtor, be my guest tho. It’s just math really… 600000*0.026/12=1300. That’s the interest you are paying, that’s the money you aren’t going to see again.

If your payments are $2700, then $1400 of is being deducted from your capital owing. That’s the cashflow you are mentioning, you are just sinking all of it in real estate instead of investing it elsewhere. And sure real estate might tank, but that cash flow is still being invested. Suggesting otherwise is disingenuous.

Finally, anyone reading my math will still understand that paying a $2000 rent is strictly better than paying a $2550 monthly fee (by $550 per month specifically), plus it lets you free to invest your cash flow were you will instead of tying yourself to investing in the house you are bond to.

So clearly, people should not buy, and renting is the way to go at the moment. If saying that makes me a realtor, so be it =)

#59 cramar on 01.14.16 at 5:56 pm

And you thought drugs screw with your mind? House lust is worse than crack!

Let’s see if I get this. A married woman with two kids wants to divorce her husband for exercising financial responsibility? Her lust for a house is more important than the long-term welfare of her kids, her family, her marriage?

How does a 32-year wife and mother old get this screwed up in her priorities? She doesn’t need Garth’s help, but rather Dr. Phil.

#60 Bobs ur uncle on 01.14.16 at 5:58 pm

Poor hubby. Gonna get divorced and still have to pay for the expenses on the house she will still want. No great solution handy there.

#61 David on 01.14.16 at 5:58 pm

Cauliflower which is part of the cabbage family (Brassica oleracea) and actually does well in cool climates like Canada. People can re-use food grade plastic containers and seeds are relatively cheap. No need for down payments.
Oil is a much bigger problem than starting a few seeds on the kitchen counter. It was mentioned on this blog last year that crashing energy prices were a God send to no one. How true.

http://www.truthdig.com/report/item/political_turmoil_in_a_time_of_low_energy_prices_20160113

#62 Island Girl on 01.14.16 at 5:59 pm

Beth is like a lot of people I meet. Seriously though. $2000 more to own a house VS rent? How is that even remotely sensible? I’d like to say that sense could be talked into her, but I highly doubt it.

#63 Drunk Actuarty on 01.14.16 at 6:01 pm

I’ll defend Beth here. Im obviously against her divorcing over a house, which doesnt make any sense. However to me I understand her that she is angry to live in a basement with two kids, the problem is that they are overrenting. They could afford to rent a better place and both will be happy and meet in the middle.

Many people make the mistake of investing but underrenting and live in shitty conditions… The goal of investing is not to live like an hermit in a sh*&hole…

#64 Zed in Geneva on 01.14.16 at 6:04 pm

I can tell you that nobody but nobody here cares about Canada’s problems or its Loonie.

What Canada has is a long winter, friendly people and lots of empty spaces.

I might buy ca$ since it is on sale (as a canadian abroad) but certainly not overpriced real estate that is forever taxed more by local governments.

Get over it, Canada is not that special!

Okay, all those who care about Geneva raise your hand. — Garth

#65 For those about to flop... on 01.14.16 at 6:09 pm

It was there to be done,and so I’m doing it…

M41BC

https://m.youtube.com/watch?v=KbtO_Ayjw0M

#66 Math, math, math on 01.14.16 at 6:10 pm

@#42 Bloodcross
The cost of a $600000 mortgage at 2.6% is $1300 / month. Payments will be higher but the rest is capital, so it shouldn’t be factored in as cost.

My first shock was this blog post about ‘Beth’. Let’s get a divorce because I want a 600K mortgage but my husband doesn’t.

My second shock is Bloodcross … who seems to know how to do math, but can’t read numbers.

Of course you include the full $2700 as calculation, you don’t include just the interest portion.

Basically, to do a fair comparison what you do is:

scenario (A)
Rent (comparable place). Invest 125K for 5 years. Sell everything, Calculate taxes. See your networth.

scenario (B)
Buy house. Pay mortgage for 5 years. Sell everything (include commissions). Include property taxes, maintenence, etc.

The base assumption is that you live in a similar place as you would buy. Factor all these things, and the biggest unknowns are:
– house price appreciation (or depreciation)
– expected returns from investments

But in the end, of course you have to include all cashflows to calculate either present value or future value… and then you have to decide if the difference is worth the risk.

I’m still shocked.

#67 acdel on 01.14.16 at 6:17 pm

#41 Penny Henny
#26 acdel on 01.14.16 at 5:14 pm
Not sure if Garth will post this link but if so; I would like to hear some opinions on this; whom ever is willing, much appreciated!

http://business.financialpost.com/news/fp-street/equitable-launches-digital-bank-with-3-interest-savings-account-to-lure-deposits-from-canadian-rivals

Why would you put money into a bank with no branches, no retail staff, no track record and whose asset base is made up of mortgages in a bubble market? Not enough risk in your life? — Garth

///////////////////////////////////

Aren’t the first 100G’s insured by govt anyways?

______________________________________________

Not sure what there situation is. I would assume if it is under Canadian jurisdiction then it should be but as Garth mentioned it is totally under the influence of the housing bubble with no branches etc; I will keep my eye on it and see where they stand in a year or so, thanks for the feedback.

#68 ROCK BEATS PAPER on 01.14.16 at 6:22 pm

Garth,
Let’s do another pole. Should writing ‘first’ be DELETED for idiocy?
Second, Fifteenth etc…?

#69 The Big Pinch on 01.14.16 at 6:25 pm

2016+ = the year of the big pinch – all of these things while relatively minor alone, collectively will cause some serious strain. Welcome to Canada’s Age of Deleveraging which could take a decade to unwind.

1) US Rate increase impact on CAD burrowing costs
2) Canadian Economic Decoupling from the US – this is historic
3) Property/Corporate/Personal tax increases
4) Cost of living and cost of imported goods increasing
5) Job losses
6) Tumbling Loonie FX
7) Sonneee Boy – T2 at the helm

Put your mouthguard in because all of these things are here to stay for the foreseeable future!!!

#70 Herb on 01.14.16 at 6:25 pm

#18 fishman,

you mean like your fearless former leader Harper, telling us he was going to be “perfectly clear” whenever he was obfuscating, if not lying?

#71 MSM-Free Zone on 01.14.16 at 6:28 pm

“….I’m thinking of divorcing my husband because he just won’t budge and thinks real estate is bad to invest in…..”
_________________________

Someone’s been watching the Hype Gone To Virgins channel too much.

Go ahead, princess, try it on your own with two young rug-rats. In your future Plenty-of-Fish profile, be sure to include words like eclectic, discerning, sophisticated, affluent, wine-tasting, theatre, golf, tennis, yachting, Audi, AGO, ROM, Muskoka, Tuscany, yadda, yadda. Just be ready, though, you already have loads of similar-minded, cougar competition.

In the meantime, give your current man the freedom he deserves to once again find true, sensible love.

#72 lala on 01.14.16 at 6:31 pm

Beth forget Garth and comments. Buy your house and live happy, all your friends have it but you. Be a winner, divorce your husband, buy your house and why not couple of bags on top and some pandora. Be a proud homeowner. In the end you can married Freedom First.

#73 Mr. Pink on 01.14.16 at 6:32 pm

“Crude at $10 is already a reality for Canadian oilsands producers”

http://business.financialpost.com/news/energy/crude-at-10-is-already-a-reality-for-canadian-oilsands-producers?__lsa=7606-8dd4

#74 Ken on 01.14.16 at 6:34 pm

They must have been thinking of Beth when they wrote The Paradox of Time,

These are the times of fast foods and slow digestion; tall men, and short character; steep profits, and shallow relationships.

These are the times of world peace, but domestic warfare; more leisure, but less fun; more kinds of food, but less nutrition.

These are days of two incomes, but more divorce; of fancier houses, but broken homes.

These are days of quick trips, disposable diapers, throw-away morality, one-night stands, overweight bodies, and pills that do everything from cheer to quiet, to kill.

It is a time when there is much in the show window and nothing in the stockroom; a time when technology can bring this letter to you, and a time when you can choose either to share this insight, or to just hit delete

#75 Paully on 01.14.16 at 6:35 pm

Sure Beth, why pay your landlord’s mortgage, when you could just borrow a pile and pay your banker’s mortgage instead.

Get a grip!

#76 Bullard for president.... on 01.14.16 at 6:36 pm

“So where are they going to get all the extra money to buy weed?”

duh, they’ll grow it, along with cauliflower…

#77 Fine Wild Roasted Gonads on 01.14.16 at 6:38 pm

64 Zed in Geneva on 01.14.16 at 6:04 pm

I can tell you that nobody but nobody here cares about Canada’s problems or its Loonie.

What Canada has is a long winter, friendly people and lots of empty spaces.

I might buy ca$ since it is on sale (as a canadian abroad) but certainly not overpriced real estate that is forever taxed more by local governments.

Get over it, Canada is not that special!

Okay, all those who care about Geneva raise your hand. — Garth

Both hands up.. Geneva has CERN and the greatest most amazing machine ever built.

#78 rawdiswar on 01.14.16 at 6:40 pm

Of course she wants a divorce.

The justice system is so skewed in favour of women, it’d likely be a good move financially for her.

But how dare she even think about taking the father out of the equation just because she wants a death contract (mortgage).

The real fallout of all this madness is the social cost. How many broken homes are caused by all this chaos? How many kids won’t get to see their fathers when the dad has to move away to find work? As much as bleeding hearts don’t want to admit it, having a father around is absolutely crucial to the development of a healthy child. (Cue the cries from the single mothers).

Why why why the rush to become enslaved to the banks?
Social conditioning runs deep.

And if I hear one more fat Boomer say renting will never build me equity, I’m going to choke on my kombucha.

#79 For those about to flop... on 01.14.16 at 6:41 pm

I guess I’m going all the way now!

“Beth”

Beth, I hear you callin’
But I can’t come home right now
Me and the boys are playin’
And we just can’t find the sound

Just a few more hours
And I’ll be right home to you
I think I hear them callin’
Oh, Beth what can I do
Beth what can I do

You say you feel so empty
That our house just ain’t a home
And I’m always somewhere else
And you’re always there alone

Just a few more hours
And I’ll be right home to you
I think I hear them callin’
Oh, Beth what can I do
Beth what can I do

Beth, I know you’re lonely
And I hope you’ll be alright
‘Cause me and the boys will be playin’
All night

M41BC

#80 Not tonight honey on 01.14.16 at 6:43 pm

Beth! I maybe understand where you are coming from.

Is it really the basement suite that is the problem here? I get that. We have a ‘luxury’ townhouse that many folks would envy but it isn’t well suited to young kids….no yard, and a top floor drop that keeps me up at night etc etc. I bought it many yrs ago when I was a swinging single, good times good times. Then a guy came along and refused to bugger off and boom 2 kids in one shot! So needless to say I too was once house horny and willing to pay $550k or more for a crap house to fully Reno. Stars above, We were pushed out by developers and shady realtors and now with the economy tanking I am grateful we were shoved out. You think you are stressed now in a basement suite, just imagine a crushing 600k mortgage… ! Money stress will cause a divorce faster than anything else, much worse than a basement. If you can fast forward 15 yrs from now and ask your kids if they would rather have a fancier home or 2 parent home, we all know their answer. Sit back, relax and enjoy your cash flow and your kids. You can rent something better, it’s not an all or nothing decision.
Maybe you feel a little embarrassed about the basement suite? Who cares, truly, no one else gives a shit where you live and if they do f’em they are not more important than your family, NOTHING is more important than your family. Not a house, car, vacations, fendi bag….

Fortunately I discovered Garth’s blog and I’m now learning to manage money and it’s kind of exciting! If we had bought a house in this economy I’m guessing we might have been at the lawyer soon enough discussing how to split things. Instead I text hubby investing ideas all day, haha!

Seriously, I do understand and trust me when I say ‘get over the house’ thing’, you will be much happier if you let it go and guess what you can revisit buying anytime.

Ps. Ignore the mean comments here, people’s words are only a mere reflection of themselves (including mine).

Good luck & go love up your family!!

#81 Smoking Man on 01.14.16 at 6:43 pm

#47 Penny Henny on 01.14.16 at 5:44 pm
#28 M on 01.14.16 at 5:17 pm
Re the babe-thinking… why would someone divorce just because the partner doesn’t want real estate ?
Had she been beaten stiff , yeah.. there is a reason for divorce… hubby drunkard ? yes… another reason for divorce…or gambler…

/////////////////////////////////////

Smokey, M is dissing you, trying to get the old lady to leave you and be with him so he can have half your millions.
You’ve been warned!
…………………..

If he don’t have an extra 200k a year to feed Mrs. Smoking Mans penny slot addiction, M out of luck..

#82 Mean Gene on 01.14.16 at 6:47 pm

Maybe it should be mentioned, Mr. Turner rents his home…

I rent my urban residence and own my non-urban one. — Garth

#83 CM on 01.14.16 at 6:47 pm

What was the reason behind small annual TFSA limits that never expire, versus larger limits that expire annually like the UK ISA?

#84 Ultraman on 01.14.16 at 6:51 pm

Vile weed.

#85 Sebee on 01.14.16 at 6:52 pm

I remember when one of those was enough for a chocolate milk and bun. Inflation, what a scam.

#86 prairiegopher on 01.14.16 at 6:53 pm

Blog dog John the bill looks good, but next time put glam boy in a clown suit!!

#87 Herb on 01.14.16 at 6:53 pm

#21 For those about to flop …

Two words about the longevity of good ideas like TFSAs to consider in your long-term planning: income trusts.

As Garth said, “TFSA room lasts your lifetime”, but possibly only until the next government decides it is losing too much tax revenue.

#88 Gen X on 01.14.16 at 6:54 pm

Beth, do yourself a favour and get a grip! Listen to your husband.

The housing market will crash, it is only a matter of
time now. . .be sensible. Either stay put or rent something a bit nicer, but do not, I repeat Do Not buy in this market.

Be kind to your husband, love your children, home is where your family is, not and address.

#89 Chris on 01.14.16 at 7:00 pm

I actually think it is fine for Beth to buy a house. Buy something with a finished basement and rent out the basement. I mean that is a reasonable compromise while improving quality of life. I know where Beth is coming from. Moving out of the GTA is another option for her and her hubby. Anywhere but GTA and Vancouver. But with two jobs, that may be a little too much to ask for them. Ottawa has more reasonable housing price.

#90 Prairieboy43 on 01.14.16 at 7:02 pm

Beth needs to back down. She is sensible enough to visit this blog. Hope she follows the free advice. This advice could save them economically. Divorce $$, mortgage $$$, and lack of investments $$$.
Trust your Spouse. Assess reality. Get down get focused on your goals.
My spouse and I rented for two years in Basement $400.00/month. She disliked the people above us. Noise, parties, rc airplanes.
First year paid off our student loans. Second year saved 30% downpayment. Five years later house paid off. We live modest life. Don’t need stuff. Wife is always purging clothes, junk, etc. FFWD 15 years later. Set up good
financially. Ride this economy out. Diversified, portfolio’s in good shape. Thank You Garth.
PB43

#91 Ret on 01.14.16 at 7:07 pm

#26 Equitable Bank

CDIC insured. Would it be better than a credit union which is not CDIC insured???

http://cdic.ca/Pages/Members.aspx

#92 Smoking Man on 01.14.16 at 7:07 pm

HA another new Millionaire emails me today

Guess what, He’s not a gutless emasculated Leftist. He’s man with dangglers. Does not Start every sentence with “I Think.”

The Liberal politically correct Youth of today would not dare take a big risk, even a small one, they got a lot to say on here but I bet they never contact garth and get real sound advice. They live in a fairy tail land of teacher indoctrnated bull shit.

No matter how much lip stick you put on a pig, i’ts still a pig.

Eat or be Eaten; is the world we live in, it’s been that way since the begging and will stay with us till the end of time.

Get over it. Grow some nuts, and take a chance.

Stop whining..

#93 Nanaimo Bar on 01.14.16 at 7:08 pm

Sold all my USD shekels this morning. Getting too crowded for me. Hard to disagree with the Levites from Winnipeg. Put that one in the win column. Looking to get back into USD at the right opportunity. Still USD long in my mind. Now where were we? Ah yes, marijuana.

The pros and cons of legalizing marijuana are all fun and games until the pharmaceutical companies jump on the bandwagon. Why do you think some of the U.S. States have legalized marijuana? I guess you have to go back to prohibition with alcohol. Alcohol was sold with a doctors prescription during prohibition.

Existing pharmaceutical marijuana products include Sativex, a spray form of marijuana used to treat symptoms of multiple sclerosis or chronic pain. The drug, developed by GW Pharmaceuticals Plc has been approved for use in 27 countries, according to the company’s website.

http://www.bloomberg.com/news/articles/2016-01-14/cocaine-plagued-state-is-about-to-jump-into-legal-weed-trade

Given the legal, political and cultural inroads that have been made in the past eight months by the cannabis industry, parts of Big Pharma appear to be changing their tune, and are becoming more open about their efforts to develop and commercialize cannabis-based drugs.

Could marijuana become the bait on this blog for the boomer generation? One mans drug is another mans poison. Time to get the boomers off the mainstream medical drugs with all the additional, harmful side effects and get them on cannabis based drugs. Mainstream medical drug users are draining the system. Wait until Smoking Man’s liver medical bill comes down the pipe. As a concerned taxpayer, it makes you want to join the Republic of Western Canada Facebook Group and help the cause so can avoid that expense.

It is so comical when a boomer gets angry because his mainstream medical drug has been taken off the market. That is like a smoker who gets angry when he discovers that his favourite cigarette has been recalled.

Go Team Millennium…. Say yes to being Hardcore Mainstream Medical Drug Free

#94 For those about to flop... on 01.14.16 at 7:11 pm

#87 Herb on 01.14.16 at 6:53 pm
#21 For those about to flop …

Two words about the longevity of good ideas like TFSAs to consider in your long-term planning: income trusts.

As Garth said, “TFSA room lasts your lifetime”, but possibly only until the next government decides it is losing too much tax revenue.

//////////////////////////////
I here you brother ,but one can only make decision on what he knows today.
One of the reason I am trying to fill my TFSA is because I believe it will be around long after the other pension plans

M41BC

#95 Smoking Man's Old Man on 01.14.16 at 7:13 pm

#79 For those about to flop…

Your Hilarious…

#96 Tree on 01.14.16 at 7:13 pm

I hope this won’t seem too off-topic but one thing that seems to have been lost already in media since the Paris conference is the idea that in order to achieve any kind of control over planetary warming society either has to leave most of the remaining fossil cauliflower in the ground or find some way to sequester (unfathomably large amounts of) CO2. It might happen but it’s also unlikely the technology will come along in time at a cheap enough cost to make enough difference (1.5+ degrees almost certainly already locked in by 2050 irrespective of any reduction efforts).

So if one combined the carbon footprint with the equally unfavourable economic competitiveness of the tar sands I think the future of either the undertaking or the planet will have to be in question if the party is to resume. (‘Oil sands’ is an industry marketing sleight of hand; ever seen bitumen, the stuff GT astutely pointed out is now selling for 8 bucks a barrel? It should be 8 bucks a block cause it sure ain’t “oil”). Certainly it will likely be the planet to take the hit because there might be just enough time for one more commodities supercycle before the heat really hits the fan. But just in case the game is up, you can bet that all those cheaper producers will keep on pumping full blast until signalled otherwise by some otherwise unpredictable event. It’s a basic tragedy of the commons… but the point in the end is what does this situation do to Canada’s economy, especially if years begin to drag on?

I know there is a lot of hate-on for global warming ideas but for the sake of reasoned considerations into the various possibilities and probabilities that any future entails I hope this might lead some to consider the ‘what ifs’ as you move forward in your portfolio building.

#97 Almost Retired on 01.14.16 at 7:17 pm

Garth aren’t you an advocate of index etf’s?

http://www.cnbc.com/2016/01/14/watch-out-for-this-1-trillion-stock-bubble.html

#98 For those about to flop... on 01.14.16 at 7:18 pm

#80 Not tonight honey on 01.14.16 at 6:43 pm

I enjoyed your views” from the othe side”
Nice post!

M41BC

#99 Raisemyrent on 01.14.16 at 7:19 pm

Happy new year everyone. It sure hurts to buy things in USD when travelling.
To exacerbate the joke there, don’t forget the peso dropped 3 zeroes in the early 90s, so right now it’s something like 12-14,000 pesos to a Canadian dollar, and you know that ain’t worth much.

#100 nubbers on 01.14.16 at 7:20 pm

Ray Skunk @2
Beth surely can’t exist.

So similar. It could be my (current) other half.

To Beth’s husband (assuming I am not actually talking to myself): Go with the divorce option and then leave the country and make a new life with someone nice.

Once you have been proved right on house prices, that type will only find something else to complain about. She is damaged goods.

#101 Habs76-79 on 01.14.16 at 7:20 pm

OMG! THINKING OF DIVORCE OVER NOT HAVING REAL ESTATE!

Beth is a snapshot representation of the modern THIRD WAVE FEMINISTS (and their Social Justice Warrior dweebs). DESTROYERS OF THE FAMILY UNIT!!! YES, FOLKS IF YOU ARE ALL BLOODY HONEST AND NOT WHIPPED TO THINK 100% P.C. YOU WILL SEE THAT IS THE GOD’S HONEST TRUTH!

Beth is willing to break up her marriage, screw her two kids with a broken home because hubby is SMART ENOUGH TO NOT PI$$ MONEY AND FUTURE WEALTH AWAY JUST TO BUY A GAWD DA*N HOUSE!

She is so typical of many today who ONLY THINK FOR THEMSELVES! Bloody egotistical and ignorant narcissists.

Beth GO GET YOUR DIVORCE! See how much better your life may be, NOT! Especially if you later hook up with some whipped second hubby.

Beth DO YOU REMEMBER THOSE DAMNED VOWS YOU SAID ON YOUR WEDDING DAY?

Better or for worse
Richer or for poorer
In sickness or in health.

Pfft! of course not!!!

But then again for all too many women in modern times, it’s looks more and more to not about a marriage with its ups and downs, trials and tribulations, but all too many GROW UP ALL DREAMING OF THEIR WEDDING DAY! It’s all they for what they want, but afterwards for some whipped, shlup of a hubby to work himself to death to give her the 1.5 kids, a dog, 2 cars, a house with white picket fence PLUS today granite counter tops, stainless steel appliances, 10’x10′ walk in wardrobe closet and of marble floors in the 3 full bathrooms.

BTW Beth, you cry about “woah is me.”, when REAL OPPRESSION exists for all too many people and BTW you P.C. modern feminists, not just women all over this blue fly speck of a planet called Earth.

#102 james on 01.14.16 at 7:21 pm

“I’m thinking of divorcing my husband because he just won’t budge and thinks real estate is bad to invest in”

Well, I’d say Beth’s husband is the one who should be thinking of divorce.

A poor choice of partner can cripple you financially.

My Ukrainian girlfriend is even more savvy than I am when it comes to finance. After growing up in a country with no opportunities (save for the well connected) she wants no part of public sector jobs or of being an employee for someone else. She’s all business, and very good with saving money. The second day I met her she was talking about multiple income streams, investing, etc.

We even have a retirement plan laid out and a pot of money going to toward a house in a warmer country.

Ah well, good luck to Beth and her husband. I’m off to Thailand with the aforementioned girlfriend. Financial discipline doesn’t mean that life has to be boring.

PS: buy low sell high, not buy high sell lower.

#103 For those about to flop... on 01.14.16 at 7:25 pm

#95 Smoking Man’s Old Man on 01.14.16 at 7:13 pm
#79 For those about to flop…

Your Hilarious…

///////////////////////
I can’t take any credit,it is a Kiss song for those uninformed (MARK)
I have seen it on the t.v the last week or so as a car commercial maybe that’s where Garth plucked it from?

M41BC

#104 acdel on 01.14.16 at 7:31 pm

#91 Ret
#26 Equitable Bank

CDIC insured. Would it be better than a credit union which is not CDIC insured???

http://cdic.ca/Pages/Members.aspx
______________________________________________

I am not sure at this point; I only came upon this article today. Prior to this article, I had no knowledge of this new bank. I will keep my eye on it and inform those who are interested in the future. Thanks.

#105 Catalyst on 01.14.16 at 7:31 pm

Someone willing to take their father away from their kids over a house has some issues and perhaps should seek a professionals advice that isn’t a finance professional.

Lets go back to dogs tomorrow Garth!

#106 Habs76-79 on 01.14.16 at 7:33 pm

#59 Cramar

How does a 32-year wife and mother old get this screwed up in her priorities? She doesn’t need Garth’s help, but rather Dr. Phil.

——————

She watches HGTV all hours when at home from her job. The next day between gabbing with other gals at her job and mostly about gossip when other co-workers are out of ear shot, she with them will also gab about their visions of a PERFECT WORLD OF REAL ESTATE!

#107 Smoking Man on 01.14.16 at 7:34 pm

Someone is lying about cauliflower.

2 for five buck in this add. Thanks for the link Old Man

http:[email protected][email protected]@next.html

#108 Luc on 01.14.16 at 7:35 pm

Could not resist! Kevin O’Leary as prime minister and Garth as finance minister. What do you think?

#109 Freedom First on 01.14.16 at 7:39 pm

Could be a Beth, or could be a Ben. Male or female. I would still live my Freedom first lifestyle.

However, it is common for women to divorce their husband today for any crazy perverse reason, saddle him with child support and alimony, keep the kids and the house, and have it all fully backed by the courts.

No worries. I look after myself. As real men do.

#110 common sense on 01.14.16 at 7:39 pm

Please Garth..

Never mention vegetables again.

Thank you.

#111 Marcus on 01.14.16 at 7:41 pm

Don’t do it! Whoever the guy is that is married to Beth I really feel for him. If he gives in to this woman he is even more screwed than he thinks. Yes he’ll be $600,000 in debt but I guarantee that within 2 years she will want another bambino and will stay at home with the three kids. The guy will be a debt slave for the next 40 years. Stick to your guns buddy and if she walks she walks.

#112 A box in the Sky on 01.14.16 at 7:42 pm

Obviously she’s being ridiculous wanting to buy a 700k home on a combined 116k income with 2 kids and barely over 100k in savings. That’s just not feasible.

But at the same time I’m sorry, raising 2 kids in a basement kinda sucks too. I mean obviously people have to do it but on some level it has to be soul destroying.

The correct play is to move and rent something a little nicer, above ground. I think paying an extra 1k/month to get out of the basement is worth it.

#113 Nanaimo Bar on 01.14.16 at 7:44 pm

“ageist” – had to google that one. Luv that word.

#114 Jhonny on 01.14.16 at 7:48 pm

#2 ray skunk
ha ha False Flag. If people only researched all of the admitted government false flags. operation northwoods, levon affair, gulf of tonkin, ect ect.
http://www.washingtonsblog.com/2015/02/41-admitted-false-flag-attacks.html
Geez we are doomed.

#115 Bloodcross on 01.14.16 at 7:49 pm

@#66 Math, math, math

Thinking about your payment is important to make a budget, but not in term of wealth building. If you amortize that house over 15 years instead of 25, your $4220 payment jumps to $5570 a month. Does it make that house an even worse deal? Of course not. (It actually makes it a better deal because you’ll be less interest total, but whatever).

You can present it or look at it however you like, all I’m saying is that renting for 2000$ / month instead of owning the house in this scenario puts around $550 per month in her pocket. (assuming zero house price change, see post #58). Nothing more, nothing less, that’s the reality.

If you do your scenario A & B comparison, with the numbers I used, after one year, that’s what you get : $550×12. It’s not shocking, it’s cold math.

*Note that this doesn’t take realtor and land transfer taxes into account (which are substantial), as the cost of those has to be amortized over how long you own the house. But Garth excluded those in his exemple too.

So that’s why cost is important. How much you invest (on top of covering cost) and where you invest it (in your house or in stock) does not impact the calculation.
The real difference in wealth is $550 / month in favor of renting (plus the flexibility of choosing where you invest, which is hopefully better return than real estate but who’s to say with certainty).

The difference in networth is NOT $4240 – $2000 = $2240/month that a naive reading of Garth’s numbers would suggest. Don’t get me wrong, everything Garth wrote is factual, but it’s presented in a way that easily misleads.

Incidentally, a lot of people in these comments have done that misreading and are saying “it’s costing her $2000 more a month to own”. It doesn’t. For that to be true, she would have to sell the house for $0 (ZERO or just enough to cover realtor & landtransfer if you want to consider those). Housing will devalue, but it won’t go to zero.

Either way, there is no doubt here, if she can rent a similar house as she would buy for under $2500, it’s all upside for her. That’s the math…

#116 jess on 01.14.16 at 7:49 pm

“Borrow big. Roll the dice. Put it all on one trade. ”

What is the big short?

More than 84 percent of the sub-prime mortgages in 2006 were issued by private lending. These private firms made nearly 83 percent of the subprime loans to low- and moderate-income borrowers that year. Out of the top 25 subprime lenders in 2006, only one was subject to the usual mortgage laws and regulations.
http://www.forbes.com/sites/stevedenning/2011/11/22/5086/#2715e4857a0b3f13e2455b56

#117 Millmech on 01.14.16 at 8:04 pm

If Beth gets the house she will have to renovate as soon as they have equity,she will be ashamed to show people her unsavoury digs,guaranteed if market keeps going up they will be into it for close to a million.If market tanks she can blame him for not being man enough to stand up to her threats of divorce and capitulateing to her demands.They never lose in their minds.
#79 was thinking exact same thing,another one that fits perfectly is “Devils Child”by Judas Priest!

#118 Bloodcross on 01.14.16 at 8:05 pm

Rectification on post #104.

When I said “For that to be true, she would have to sell the house for $0”, what I should have sell is “she would have to sell the house for whatever capital is left owing on her mortgage at the time of the sale”, which would be zero if she sells after she’s done with the mortgage.

Bottom line, for her cost to own to really be $2240/month more than renting, the house needs to loose 1400$/month in value. There’s probably a case to be done for that, but that’s not what the original example was about.

#119 will on 01.14.16 at 8:05 pm

More job losses today, Reitmans is firing 77 people from head office.

#120 Greg on 01.14.16 at 8:06 pm

“Happy new year everyone. It sure hurts to buy things in USD when travelling.
To exacerbate the joke there, don’t forget the peso dropped 3 zeroes in the early 90s, so right now it’s something like 12-14,000 pesos to a Canadian dollar, and you know that ain’t worth much.”

Haha, last year we had a niece visit us in Cabo who had an old $2000 peso note and figured she was in the money. We tried to buy some lunch and drinks with it but our server wouldn’t take it and told us about the zeros. Yikes!

The scary part about your story is that the Cdn $ has more or less kept pace with the peso for the past three years.

#121 Daisy Mae on 01.14.16 at 8:07 pm

#28: “….why would someone divorce just because the partner doesn’t want real estate?”

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

Unreasonable, yes. But money problems is the #1 cause of divorce. And there’s going to be a lot of them, going forward….we ain’t seen nothin’ yet.

#122 usdhawg on 01.14.16 at 8:09 pm

Garth – is there significant downside risk to CDN bank stocks if mortgage defaults increase as a result of a housing correction?

Too hypothetical for an answer. There is no history of widespread defaults. — Garth

#123 Interstellar Old Yeller on 01.14.16 at 8:09 pm

Beth, just because Garth’s advice isn’t what you want to hear doesn’t mean he isn’t right. If you are so dead set on buying, consider a condo that’s half the price. You cannot afford a $700k house, your family simply does not earn enough nor have enough wealth for it. The bank is willing to loan you so much because 1) CMHC bears the risk of default, and 2) they make profits from you renting their money.

I do think you should tell your husband you are considering divorce over this. It’s only fair that he knows how much or little you value your marriage, as he also gets a say on whether your marriage continues.

#124 Daisy Mae on 01.14.16 at 8:13 pm

#35: “….and somehow divorce will get you that house?”

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

As a single mom with two children, she’ll learn quickly just how poor she will be.

#125 common sense on 01.14.16 at 8:14 pm

#109 Freedom First

Ever consider doing an OLD SPICE commercial?

#126 fishman on 01.14.16 at 8:16 pm

Update on exact quote from T2 on 5:00 p.m. news. “As soon as we have more to discuss we”ll have more to discuss.” Will keep everyone updated on ongoing discussion. Meanwhile here in B.C. we just went through the highest tides of the year.

#127 Love my Kia on 01.14.16 at 8:16 pm

#92 Smokey

HA another new Millionaire emails me today

Guess what, He’s not a gutless emasculated Leftist. He’s man with dangglers. Does not Start every sentence with “I Think.”

The Liberal politically correct Youth of today would not dare take a big risk, even a small one, they got a lot to say on here but I bet they never contact garth and get real sound advice. They live in a fairy tail land of teacher indoctrnated bull shit.

No matter how much lip stick you put on a pig, i’ts still a pig.

Eat or be Eaten; is the world we live in, it’s been that way since the begging and will stay with us till the end of time.

Get over it. Grow some nuts, and take a chance.

Stop whining..
***********************************
I work in education and teach information literacy, not the Google crap (which is a combination of truth and falacies – as evidenced by some links posters put up). I am always telling students to think beyond what they are taught and to look at the world outside of their own.

You are correct that many don’t want to leave their comfort zone and its unfortunate they will suffer for ignoring what awaits them in the world after graduation.

Contrary to what you might think, there are a lot of educators I know who love being challenged, it tells them the student is thinking critically for himself and is actually engaged in their learning. It is these students who end up being most successful. Unfortunately many don’t care and when asked why the usual common response is, ‘it has nothing to do with me’. That’s a fatal error and very frustrating for me to hear. Education is a waste with that kind of attitude.

Smokey regardless of the dyslexia I think you would be outstanding as a student and would kick ass over many a student I deal with. You think from all the angles of a situation and how best to use it. I’m sorry for the a-hole teacher(s) you had that tried to pigeon hole you into a box.

#128 Bloodcross on 01.14.16 at 8:21 pm

@#122 usdhawg

Most of the risk is shouldered by the CMHC anyway isn’t it? There could be some downside but the tax payer would mostly be assuming the cost of an eventual debacle…

Mind you it’s pretty much what ended up happening in the state with the bailouts, but here in Canadiana, we have pre-approved them!

#129 Zorba on 01.14.16 at 8:21 pm

#108 Luc on 01.14.16 at 7:35 pm
Could not resist! Kevin O’Leary as prime minister and Garth as finance minister. What do you think?
Scary proposition,if you ask me.

#130 JamesA on 01.14.16 at 8:22 pm

I hope this story is just a fable engineered to try to teach us dummies a lesson. But, for fun, lets assume its true. Can you imagine going from a 125k safety net, from 125k breathing room, to a negative 600k pit off quicksand? They will spend their lives typing the passcode into the debit machine and begging the universe it does not bounce. God, the poor bastard. He no doubt loves his kids. The very fact that he is still pulling on the tiller to try to keep the ship on course with a nagging wife means he probably loves her too. Women can bewitch you with a glance. We are doomed.

$200 bucks more throws 40% into trouble. I thought I had problems.

Its all too depressing. Need to give up the news for a while.

#131 For those about to flop... on 01.14.16 at 8:24 pm

#125 common sense on 01.14.16 at 8:14 pm
#109 Freedom First

Ever consider doing an OLD SPICE commercial?

//////////////////////////////
Hey Common ,he can’t do OLD SPICE because of his contract with HUNGRY MAN.
He was the perfect pitch man as he lives on bachelor meals !

M41BC

#132 bertvl on 01.14.16 at 8:25 pm

[quote]Why would you put money into a bank with no branches, no retail staff, no track record and whose asset base is made up of mortgages in a bubble market? Not enough risk in your life? — Garth[/quote]

Although I agree with some of the above, Garth, why would you judge a bank on the quantity of its patches of real-estate (the branch network) and the number of mutual-fund hawkers (the retail staff)? Only old folks need to physically go to a bank these days, and it’s not as if they offer useful financial advice in all those branches of the other banks… :)

I wonder, is EQ Canada the same Equitable Life company that dicked a load of UK customers out of their retirement annuities?

#133 Freedom Furst on 01.14.16 at 8:26 pm

I’d like to apologize for sounding like I don’t like women. My boss is a woman, as are my wife and daughters. My customers at the hair salon are exclusively women. I feel very fortunate. Or maybe I was just born into the lucky perm club.

#134 Jackofall on 01.14.16 at 8:26 pm

Whoa whoa whoa..something does not compute here. SHE is one angry letter away from destroying her family’s finances, doesn’t even seem to have a clue about this, and yet SHE is threatening to leave HIM?

I have to say. I am a proud Canadian but at this precise moment I am incredibly ashamed and embarrassed to live in this great country. He deserves so much better. :(

#135 Not tonight honey on 01.14.16 at 8:28 pm

#98 For those about to flop… on 01.14.16 at 7:18 pm

I enjoyed your views” from the othe side”
Nice post!
M41BC
////////////////////////////////////

Cheers Flop!
I think we can be on the same side ;-)

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

#102 james on 01.14.16 at 7:21 pm

My Ukrainian girlfriend is even more savvy than I am when it comes to finance…..

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

James, she sounds like a keeper!

I heard it once said “the single most important life decision you will ever make, that has the most potential impact on your overall happiness, is who you choose as a partner”.

Wise words, IMHO.

NTH

Ps. Folks, this is not (and should not) be a competition about who can be the meanest SOB to Beth or anyone else for that matter. Grow up or I will have to spank a few of you & no dessert either!

SAHM45AB

#136 Steerage bilge on 01.14.16 at 8:32 pm

#126 For those about to flop… on 01.14.16 at 8:24 pm
#125 common sense on 01.14.16 at 8:14 pm
#109 Freedom First

Ever consider doing an OLD SPICE commercial?

//////////////////////////////
Hey Common ,he can’t do OLD SPICE because of his contract with HUNGRY MAN.
He was the perfect pitch man as he lives on bachelor meals !

M41BC

And then Mrs. Smokey man would hit on him….

#137 jess on 01.14.16 at 8:32 pm

mis conduct and a tax writeoff ?

Under the terms of the settlement, Goldman will pay a $2.385 billion civil monetary penalty, make $875 million in cash payments, and provide $1.8 billion in consumer relief.

settlement related to residential mortgage-backed securities it sold between 2005 and 2007

==
Thursday, May 24, 2012
Residential Mortgage-Backed Securities (RMBS) Working Group Announces New Resources to Investigate RMBS Misconduct

http://www.justice.gov/opa/pr/residential-mortgage-backed-securities-rmbs-working-group-announces-new-resources-investigate

http://www.goldmansachs.com/media-relations/press-releases/current/announcement-14-jan-2016.html

#138 Nasty nation - Realties.ca on 01.14.16 at 8:34 pm

[…] Source: http://www.greaterfool.ca/2016/01/14/nasty-nation/ […]

#139 Smoking Man on 01.14.16 at 8:34 pm

#108 Luc on 01.14.16 at 7:35 pm
Could not resist! Kevin O’Leary as prime minister and Garth as finance minister. What do you think?
….

Thats exactly what we need to make Canada Great Again.

Garth was the smartest shit in the Harpo neo-con controlled government. His crime.

A beautiful man, that actuly cared. But a man all the same who flipped the bird when the collective said, no blogs allowed.

He’s a fking gifted writer, that’s like telling a Lush no more booze.

Can’t believe we haven’t had a beer together yet, when I shock his hand at the gartho show years ago. He was terrified, so I never pushed it.

Figure the prick got a glimpse of my rotten teeth.

#140 OOK on 01.14.16 at 8:40 pm

Garth, normally, always well said, but quit being such a boomer and get over your disdain for J-Tru. He inherited a real clusterF*ck.

#141 New Canadian on 01.14.16 at 8:51 pm

Canadian RE observation topical to today’s post from somebody who recently emigrated to Canada landing in Toronto with wife + four kids originally from Europe. Prior to Canada, we had lived an international professional life in several major world cities. Blog dog over 2 yrs including comments section. NW 1M+ fully invested and reasonably leveraged to take advantage of those excellent preferreds with tax credit and full margin interest deductibility (my blended margin rate is 1.8%). Gross family income 150k+. Late 30ies. Life long investor. 4 kids. Just bought our first house.

Not wanting to plunge 1.5M+ into a decent family housing option acceptable to my wife demanding full European standards (hard to find in Canada unless you pay a significant premium) for all the reasons exposed by Garth, we decided to probe smaller Canadian cities where we could still exercise our professions and raise our kids. What a difference, it was like discovering a new country existing within Canadian borders! We settled on a mid-sized Ontario city and could not be happier: got a renovated architect designed family residence for the price of a Torontian 25% downpayment for a similar house / neighborhood. Our monthly housing costs all in dropped to less than half compared to renting in Toronto a much smaller place. We got an amazing garden and great public schools for kids all the way to college. No more traffic jams and competion for kids’ activities. Land transfer tax was 5k prior to the first buyer discount.

Given this discovery of ours, what escapes me is how come so many Canadians want to risk their marriages, mental health and options in life by drowning in debt to live in a rotten semi when they can significantly improve their standard of living just by looking outside of the few biggest Canadian cities. Yes we landed in suburbs. It is a planned mature burb from the fifties though with a great layout, amazing neigbors, many public spaces and a low density. A fully equipped downtown is 7mins away by car/15mins by bike on a seperated trail by a beautiful river. All schools are within 10mins walking radius on almost car free roads. We both walk/bike to our offices and if we need, we can reach several major airports / Northen American cities in 2-3hrs by driving or taking a train.

Well their ignorance is certainly our gain. For us, the best indication we should not be putting more fuel into the Torontian RE mania was our son’s 5yr old playmate’s first question upon entering our apartment, which he asked with an inquisitive flair: “Do you own or rent?” Luckily, we will now be able to give the correct answer should another pre-schooler quiz us again on this quintessential matter for most Canadians :-). But that seems rather unlikely, as nobody from our adult neighbors has yet commented on anything related to RE, which was a daily occurrence in Toronto.

#142 Smoking Man on 01.14.16 at 8:55 pm

#127 Love my Kia on 01.14.16 at 8:16 pm
#92 Smokey

HA another new Millionaire emails me today

Guess what, He’s not a gutless emasculated Leftist. He’s man with dangglers. Does not Start every sentence with “I Think.”

The Liberal politically correct Youth of today would not dare take a big risk, even a small one, they got a lot to say on here but I bet they never contact garth and get real sound advice. They live in a fairy tail land of teacher indoctrnated bull shit.

No matter how much lip stick you put on a pig, i’ts still a pig.

Eat or be Eaten; is the world we live in, it’s been that way since the begging and will stay with us till the end of time.

Get over it. Grow some nuts, and take a chance.

Stop whining..
***********************************
I work in education and teach information literacy, not the Google crap (which is a combination of truth and falacies – as evidenced by some links posters put up). I am always telling students to think beyond what they are taught and to look at the world outside of their own.

You are correct that many don’t want to leave their comfort zone and its unfortunate they will suffer for ignoring what awaits them in the world after graduation.

Contrary to what you might think, there are a lot of educators I know who love being challenged, it tells them the student is thinking critically for himself and is actually engaged in their learning. It is these students who end up being most successful. Unfortunately many don’t care and when asked why the usual common response is, ‘it has nothing to do with me’. That’s a fatal error and very frustrating for me to hear. Education is a waste with that kind of attitude.

Smokey regardless of the dyslexia I think you would be outstanding as a student and would kick ass over many a student I deal with. You think from all the angles of a situation and how best to use it. I’m sorry for the a-hole teacher(s) you had that tried to pigeon hole you into a box.
…………………………………

If you can show me a school where I can earn a disobedience certificate I would sign up in a minute. That’s the real world.

But they don’t exist. I take solace in that fact the I hold a self appointed Phd In Herdonomics.

Why must we alway beg for others approval, a certificate, that pat on the head, good boy, now sit and give me a paw.

This dog not wired like that.

Not all teachers are bad, you sound like a good shit, but your in the company of total losers, world class losers that follow a script.

Cowards. My favorite teacher.

Dennis Rancourt, his crime, giving all his students A’s and had problems with the way NutAndYahoo treats palestinians in Gaza.

That’s not anti semitic, that’s having a heart.

What was this idiot thinking.

#143 Grey Dog on 01.14.16 at 8:56 pm

Beth, get a grip, or are you a shallow princess? Chaos forever for your children cause their loving Father would not go into the STRESS OF HUGE DEBT. How much debt have YOU contributed to your current situation?

I absolutely LOVE #90 Prairieboy 43 contribution. Saving with purpose and goal debt free.

Celebrate what you have…healthy husband AND children, love in the home when this temper tantrum of yours subsides?

Just because you WANT IT, a house is not a right of passage in Canada, and most other countries.

Watch the news, then take a walk and appreciate your safe neighbourhood and life.

Please DO NOT add fuel to Freedom First’s philosophy.
Old Grey Dog 905

#144 BC Working Guy on 01.14.16 at 9:11 pm

@ Millennial Realist #273 from the previous thread:

You said:

“When the real estate melt fully takes hold, when our dollar is weakened and our unbalanced jobs picture tips over, people will not vote to return to the old ways that brought us here in the first place.

There’s too many of us who already have learned that that old system wasn’t working for us anyway.

So we’ll take our chances, thanks. Whatever that brings.
Think about it:

Is that not the most damning condemnation of the last four decades of wrongful, idiotic neo-con rule over our society? People who see so little future for themselves in a society that they will take a chance on much greater unknowns rather than carry on as usual.”

I almost cried this morning when I read that. It is so well said and so true. I never even thought of it like that before but what you say is so true. Thank you so much for one of the most insightful comments I have ever read on the internet.

#145 Washed Up Divorce Lawyer on 01.14.16 at 9:14 pm

Beth:

Dump him.

If someone asks you, “Would you marry for money?” the answer is “Is there any other reason?”

There are plenty of fish in the sea. What does Jerry Hall have over you? Had you filed a divorce petition six months ago, Rupert Murdoch would have been in the bag for you.

The last time Rupert had a physical, he told his doctor he was dating Ms. Hall. The doctor told him sex between a man his age and a former super model could cause death. Rupert responded, “If she dies, she dies.”

#146 Smoking Man on 01.14.16 at 9:18 pm

#93 Nanaimo Bar on 01.14.16 at 7:08 pm
Sold all my USD shekels this morning. Getting too crowded for me. Hard to disagree with the Levites from Winnipeg. Put that one in the win column. Looking to get back into USD at the right opportunity. Still USD long in my mind. Now where were we? Ah yes, marijuana.

The pros and cons of legalizing marijuana are all fun and games until the pharmaceutical companies jump on the bandwagon. Why do you think some of the U.S. States have legalized marijuana? I guess you have to go back to prohibition with alcohol. Alcohol was sold with a doctors prescription during prohibition.

Existing pharmaceutical marijuana products include Sativex, a spray form of marijuana used to treat symptoms of multiple sclerosis or chronic pain. The drug, developed by GW Pharmaceuticals Plc has been approved for use in 27 countries, according to the company’s website.

http://www.bloomberg.com/news/articles/2016-01-14/cocaine-plagued-state-is-about-to-jump-into-legal-weed-trade

Given the legal, political and cultural inroads that have been made in the past eight months by the cannabis industry, parts of Big Pharma appear to be changing their tune, and are becoming more open about their efforts to develop and commercialize cannabis-based drugs.

Could marijuana become the bait on this blog for the boomer generation? One mans drug is another mans poison. Time to get the boomers off the mainstream medical drugs with all the additional, harmful side effects and get them on cannabis based drugs. Mainstream medical drug users are draining the system. Wait until Smoking Man’s liver medical bill comes down the pipe. As a concerned taxpayer, it makes you want to join the Republic of Western Canada Facebook Group and help the cause so can avoid that expense.

It is so comical when a boomer gets angry because his mainstream medical drug has been taken off the market. That is like a smoker who gets angry when he discovers that his favourite cigarette has been recalled.

Go Team Millennium…. Say yes to being Hardcore Mainstream Medical Drug Free
……………………..

Ass hole, I pay in tax every year what the life time earnings are for the newly schooled are.

I’ve paid for that new liver ten fold.

But I’m not cashing in. Good gene pool. Dad still going at 97, Mom dropped last year at 94.

Not putting my kids through that, watching your folks disintegrate to nothing while still breathing right before your eyes.

I’m rich, what’s one more short term rental when you have had thousands.

I’m a family man, the reading of the will, with my vise grip shower starter will be amazing if your last name is Man.

Trying to teach my sons to fish, it’s way more fun than free dinner served.

It’s all about the kids.

#147 BS on 01.14.16 at 9:19 pm

That new T2 Canadian Peso would be hilarious if it wasn’t so sad what he does done to the Canadian economy after only a few months. That $200 extra per month that will fold so many Canadians financially is pretty much here now with rising prices due to T2s Peso. It could be what finally pops this housing bubble. People need to choose between food or making their mortgage payment.

#148 Arfmooocat on 01.14.16 at 9:20 pm

Senior Trudeau and Señor Trudeau

#149 Retired Boomer WI on 01.14.16 at 9:25 pm

Beth, your contemplation of divorce over a difference of ‘opinions’ on Real Estate is so way beyond my Boomer comprehension.

If you were my wife, and I knew of this contemplation, you would be SO out of here…. let me just day this, the “accident” was so tragic…. comprende?

Now, you understand. Youth and skill will never out fox old age and treachery, toots.

So, back toward reality. Let us ace some facts. You both are under achievers, beer income, champagne tastes. What marketable skills, besides baby making did you bring forth to improve your lot in life? Work on these. Next, do you have a working budget? $116,000 is not the best income these days, but still do-able. You both work, got that, who is up for a part-time job to novel money toward a ‘house fund’?

Gee, these ideas got no where with either of you? Then maybe you should divorce the bard, but let him know your feelings first. While I am no fan of buying at the market top, especially with the bullshit facing Canada just now, a wait is justified for both of you.

You have a family, which needs you both much more than a house. There are lots of other places in Canada besides the GTA which would not be my first choice. I happen to like breathable air, clean water, and few neighbors, but that is MY desire, and have achieved it.

Beg decision here. What is it worth, Beth?

#150 Popeye the Sailor Man on 01.14.16 at 9:34 pm

Wife 1.0 was like Beth, we bought a condo in Victoria in 1993 for 137K only 5% down (peak market). A couple of years later she wanted a house. As Condo values dropped we and we made accelerated payments we remained under water after closing costs. We both made about 33K yet she wanted to have a house, a baby, a dog, and a SUV. Like many of her coworkers (many 5-8 years older). I increased our RRSPs from zero to 60K in 5 years through educating myself in investments while paying off our used cars. Steady work was hard for me secure but I maintained employment with 2 short periods of EI. After being in the condo for 7 years and having a mortgage of 108K and assessment of 105K. It was imposable to get in a house. She wanted to stay in Victoria yet better stable work laid else ware for me, She wanted a baby but we could not afford to drop one income. I told her it was impossible at this time but it will not always be this way, but she got tired of waiting. We ended up divorced.

Wife 2.0 and I are much more on the same page when it comes to housing, investing, work, and we maybe be able to retire early at 53-58 years old in 6-10 years. House 80% paid for, and we fall in the rule of 90 guide lines Garth talks about. All done on a single income of 55K growing to 100K job over 12 years while raising 2 children.

What a difference a spouse’s outlook and respect for money can make.

#151 Drill Baby Drill on 01.14.16 at 9:35 pm

Beth
Dumb is as dumb does.
Banks love Beths

#152 tkid on 01.14.16 at 9:35 pm

Beth,

rethink your position.

1. You don’t have a sufficient downpayment to avoid CMHC fees. You need 20% to 25% to avoid paying fees to CMHC just to insure CMHC against any losses. That’s right, that fee doesn’t insure you it insures THE BANK. Isn’t it nice of you to pay the bank’s insurance payments for them! So how much is it?

If you buy a $700,000 house with $100,000 downpayment it is a fee of 1.4%. If you buy a more expensive house, it can go up to nearly 4%. Figure anywhere from $8500 to $21600+. And if you refinance, your fee shoots up to 4% at least.

http://www.cmhc-schl.gc.ca/en/co/moloin/moloin_005.cfm

2. That extra fee is $$$ you need to take out of your downpayment. Plus TWO sets of land transfer taxes (provincial and city) which adds up to another 4% minus a rebate of up to $5000 if you are a housing newbie. 4% would be $24000 minus a max of 5 is a payment of $19000.

http://www.landtransfertaxcalculator.ca/

But my figures are based on you paying $600,000 for a house – my bad, I should done ’em for $700,000. If you take the minimum payment out of your downpay … wait, I forgot HST. You can get rebates for HST but only pay HST for new homes and on the costs. HST is so complicated you need a lawyer for it (minimum $2000).

http://www.suttonrealty.com/HST_Real_Estate_Ontario/page_2340282.html

So it isn’t unreasonable to say your fees would START at $30,000 and this would come out of your downpayment. If you find the new house of your dreams, or a more expensive house, ow ow ow ow ow ow.

So the mortgage would be $670,000 minimum. Check out the calculator at TD: https://www.tdcanadatrust.com/mortgagePayCalculator.form?cm_sp=GOOGLE:MEMORT:p6025471083

A mortgage of $670,000 at 2.6% over five years is almost $3100. A mortgage at a more reasonable rate of 4.5% is $3800.

You and hubby bring home just enough to afford the mortgage. Heating, water, electricity, internet, phone, cable tv is extra. Tack on food, clothing, car (gas, insurance, maintenance) or monthly TTC rides. You are riding the rails.

That house isn’t do-able for you right now. It is far too expensive. You need more downpayment saved up, and you need house prices to come down. Fortunately there is a solution. Wait 2 years. Save more money.

There is a major recession coming in Canada. Oil prices have kicked the stuffing out of Alberta and they are just about to start kicking the stuffing out of Ontario. Even if you and he have rock-secure jobs, others don’t. It is not unreasonable to expect house prices to come down in Ontario in the next 2 years.

So waiting 2 years could be a win-win. Save more downpayment. Pay less for a house (or get a nicer house).

The real decision you have to make is do you continue to live in the basement? I wouldn’t. I’d rent a house somewhere, but maybe you’d like to prioritize saving money over living on the ground floor? It is your decision.

In the meanwhile tell hubby (you’ve both gone to extreme positions on this and you both need to compromise) you need diamond somethings (earrings are always lovely) if you are to redirect the sneers from the other wives/girlfriends.

Do not divorce the idjit. You need each other.

Here’s your homework: find a house you like on MLS.CA. Location, # of bathrooms, etc all work for you. Do the math on the mortgage, fees, etc. And if you are wondering why the mortgage broker says you can afford more, they get paid commission plus bonuses.

http://www.payscale.com/research/CA/Job=Mortgage_Broker/Salary

#153 Leo Trollstoy on 01.14.16 at 9:37 pm

funny some posters think that this is about math and are running numbers. freedom first has the right attitude and would avoid women like this. they’re everywhere.

#154 Courage and Poo on 01.14.16 at 9:38 pm

Beth’s husband should know better than to live in a moldy basement which is making Beth’s brain inflammed, and thus irrational. Beth should better than to buy a 700k house. She’s earned more than a basement, but not that.

#155 Gen X Confessions on 01.14.16 at 9:39 pm

Dear Beth,
Ask your kids what they think. Would they rather have a Dad or a shiny house? I’m guessing they will pick Dad everytime. I’m also willing to bet the look of shock on their face will be heartbreaking. They might even have some words of wisdom for you like “family sticks together” and “people are more important than things”.

Your priorities list is upside down. Rent a decent place and stop the drama.

#156 Alpha Mike Foxtrot on 01.14.16 at 9:41 pm

Leave town ASAP. if you have jobs that you could get in any other city, then why fight an up hill battle? Move anywhere, literally anywhere in Ontario, and houses will be more affordable.

#157 tkid on 01.14.16 at 9:46 pm

P.S. You are allowed to come onto the comments section and call most of the guys here a pack of meanies.

#158 Smoking Man on 01.14.16 at 9:52 pm

#153 Leo Trollstoy on 01.14.16 at 9:37 pm
funny some posters think that this is about math and are running numbers. freedom first has the right attitude and would avoid women like this. they’re everywhere.
……..

There are god woman every where, just hard to find.. Peer pressure.

Woman rule men if they have a brain. School trying to take away their power.

To hammered to explain it at the moment.

#159 Yuus bin Haad on 01.14.16 at 9:56 pm

my gawd, we’re living in a Pogo comic strip

#160 Drill Baby Drill on 01.14.16 at 10:00 pm

Ontario has the third highest debt in all of the world for non governing bodies greater than California. Bring on the enhanced pension plan.

#161 Nemesis on 01.14.16 at 10:01 pm

#Zorba’sAphorism… #”TheFullCatastrophe”…

https://youtu.be/cHAqdZ2f5cM

#BonusZorba… #TheOneUnforgivable***,Or… #TheWisdomOfTurks…

https://youtu.be/3ke0JsAYwy4

#162 Millennial Realist on 01.14.16 at 10:03 pm

#144 BC Working Guy

Thanks for the compliment. We are all in this together, and it is critical that we try together to understand what “this ” is.

As I mentioned in an earlier comment, what concerns me most now is how the last gasp of neo-con BS will have people like Trump turn the public’s frustration with the status quo against even more vulnerable groups, such as immigrants.

Especially when we should all be looking at the luckily-born wealthy who are the cause of manipulating the system to create wealth just for themselves. They smile and snicker from the sidelines at Trump’s fake populism. It will line their pockets even more. No wonder Kevin O’Leary thinks he should do the same thing. (Not to seem overly dramatic, but such tactics are well-rooted in the fascism of Hitler and Mussolini, both of whom employed similar rhetoric as an easy way to harness the anger of disaffected masses, always looking to find even weaker targets for those unhappy populations to prey upon)

Hitler? Seriously? Get over yourself, son. — Garth

#163 common sense on 01.14.16 at 10:05 pm

Beth:

You can have “it” all without having “it” all.

Enjoy your current lifestyle, time with children, having a partner (?) to share the responsibilities??

Or would you like to be like my ex who wanted it all and for the last 8 years has struggled maintaining the dream home she bought me out of (thank god – ), has not really had a proper vacation and has undue stress?

Your a big girl. Be a WOMAN and do the right thing.

Your happiness or the kid’s happiness and a enjoyable, less stressful life.

Your choice.

#164 George Goodman on 01.14.16 at 10:06 pm

I don’t why we are so obsessed with the price of cauliflower when lettuce has been 4 bucks for a year and meat has become a distant memory for most on a low fixed income for at least five years. The concept of ‘substitution’ ran out when all meat categories including hamburger broached $9 a pound.

Hyperinflation has been building inexorably and the state of denial in the media and among many individuals has been incredible. In the past 5 years ketchup has doubled, cans have shrunk by 50% in size, ditto packaged dry foods. Pharmacy products have seen huge increases in price of 100% and more in the past 5 years. If inflation is really 20% per annum against the governments phony ‘basket of goods’ CPI number, then the hyperinflation we are now seeing will cut the past five years down to an economy where consumer goods double every year as they have this year to date.

Anyone buying a car has experianced the sticker shock already. But try to buy used and the same shock awaits you as American dealers are sweeping the floor for product with strong USD and leaving nothing available locally for low income and youth.

Trudeau insists his ‘sunny ways’ will fix everything. The media is on an all out charm offensive to sell the Liberals misdirection away from reality. He empathizes with the hundreds of thousands who have already lost their jobs in his first speech ( actually a passing recognition in a speech about his sunny ways’, but has offered nothing by way of solutions.

It’s a fact that seniors and those on low fixed income are starving. It’s a fact that Food Banks are so overloaded they often run out of food before the lines end. It’s a fact that if Trudeau initiates a ‘food policy’ that the currency will shrink to the equivalent of Cuba, worthless in the open market.

It’s a fact that business travelers and tourists are finding it hard to convert Canadian currency to local because currency traders don’t want to hold C$’s overnight because the Loon is falling precipitously in the international markets by the hours. The discount has the C$ trading down 20% below the stated ‘media’ rate shown in Canadian newspapers.

#165 cd on 01.14.16 at 10:10 pm

just like the post by alpha mike… leave the city and move away to say kitchener or guelph. If you have a job that doesn’t depend on the big city (like a teacher, or nurse, or a mechanic) then you should think of leaving. your salary will be similar but your cost of living will be a fraction of what it is (and you could afford a bigger house for half the price). Also, you will still be close enough to still visit toronto if necessary.

#166 Mixed Bag on 01.14.16 at 10:10 pm

BETH, I am so angry with you. You would tear your family apart over material possessions. Wreck your children’s lives. Have them lose their sense of family. Because wah wah you didn’t get a house that you COULD NOT AFFORD. Your husband is saving his family. You want to destroy yours. Is the house going to feel great when the kids are in therapy because mom cared more about a owning a house than her own kids?

Is he beating you or the kids? Cheating on you? Abusive emotionally or mentally? Some kind of addict? Gambling all the money away? A dick in any other respect?

How are you going to afford a house when you’re divorced?

#167 Hawk on 01.14.16 at 10:14 pm

Preferring a house over her marriage? Beth needs to see a good psychiatrist, ……….more than she needs the advice of a portfolio manager.

#168 macroman on 01.14.16 at 10:15 pm

#68, Rock paper scissors…

Idiocy is another pole. Try poll, and it ain’t brass.

Your wrists get slapped lots, don’t they.

#169 Nanaimo Bar on 01.14.16 at 10:15 pm

#146 Smoking Man

I thought that would get a rise out of you. When is the book coming out? You have a way with words my friend.

#170 joe on 01.14.16 at 10:17 pm

#15 Mark
I agree with you 100% !!
Lot of people will leave Canada for few years( go back home) after filing bankruptcy and cashing out cc and let the tax payers (CHMC) hold the bag
Many Top earners smarty pants would move to the US / south america / carribean to avoid high taxes.
we who are left behind would be paying for other’s crimes. sadly.

#171 ben on 01.14.16 at 10:21 pm

Find the guy’s name, mail him and suggest he divorce her.

#172 A box in the Sky on 01.14.16 at 10:24 pm

#153 Leo Trollstoy on 01.14.16 at 9:37 pm

funny some posters think that this is about math and are running numbers. freedom first has the right attitude and would avoid women like this. they’re everywhere

—————————————

Yes and No. Obviously her house lust is unjustified and they can’t afford a 700k home.

But at the same time this guy is raising a family in a basement when he could afford to rent an entire house ….. he’s being overly thrifty which is not a good look.

There are certain things in life that are worth paying up for and getting out of a basement is one of them.

#173 SWL1976 on 01.14.16 at 10:25 pm

#11 Doug t

Our society has fallen off a cliff – narcissistic, irrational and blind to the time and energy they are wasting in this short window of time we have on this rock. Instead of investing in material growth they should be investing in spiritual growth – some days I feel like I’m on the titanic

—————————

I hear ya!

There is an ice burg dead ahead and hopefully our own arrogance doesn’t sink us

#174 Bottoms_Up on 01.14.16 at 10:28 pm

Beth, it is sickening to think a bank will give a family $600k, that only earns $116k.

But, you are in a relationship, thus compromise is important. So while i side with your hubby on not buying a mcmansion, i would agree with you that you could buy a place, perhaps with a $350k mortgage. SO, it is time to meet each other in the middle.

And get your mind out of the gutter RE: divorce. It’s not even a word that should be uttered, except in extreme circumstances.

#175 Greg on 01.14.16 at 10:29 pm

DELETED (sexist)

#176 AfterTheHouseSold on 01.14.16 at 10:32 pm

#149 Retired Boomer W1
“…the “accident” was so tragic…comprende?”

Or a dusting of white powder on the poison mushrooms would do the trick. Thanks for the laugh!

#177 Fine Wild Roasted Gonads on 01.14.16 at 10:37 pm

The massive game of chicken continues… who caves first!

http://www.telegraph.co.uk/finance/economics/12100609/Glimmers-of-hope-for-oil-as-Russia-poised-to-slash-output.html

#178 BG on 01.14.16 at 10:44 pm

Without having read a single comment tonight, I can say without a doubt that I agree with what everybody thinks about Beth.

#179 Buystander on 01.14.16 at 10:45 pm

#158 Smoking Man

Woman rule men if they have a brain.
_________________________________

Obviously Beth doesn’t have one. If she did, she would get a divorce after her husband buys a house.

#180 Stick to Video Game Programming... on 01.14.16 at 11:14 pm

#115 Bloodcross

You need to take a Business Math course.

Here are the numbers for a $600K mortgage, 2.6% nominal compound interest rate/year, monthly payments amortized over 25 years and at the END OF YEAR 5 or the 60th payment, you have:

Payment $2,717.77 Monthly
Total Interest Paid $71,912.70 ($1,198.55/month, average)
Total Payments $163,066.14
Principal Paid $91,153.44 ($1,519.22/month, average)
Outstanding Balance $508,846.56

15 year amortization, all else the same, you have:

Payment $4,025.08 Monthly
Total Interest Paid $66,711.82 ($1,111.86/month, average)
Total Payments $241,504.72
Principal Paid $174,792.90 ( $2,913.22/month, average)
Outstanding Balance $425,207.10

More “net worth” numbers for you (Principal Paid, 25 year amortization):

End of Year 1: $17,301.17 ($1,441.76/month, average)
End of Year 2: $35,055.10 ($1,460.63/month, average)
End of Year 10: $194,874.64 ($1,623.96/month, average)

5 years from now the above calculations will be worse for principal paid as interest rates will increase. If I use CMHC’s 2017 4Q rate estimate of 6.1% here are the numbers for a 25 year amortization on the 61st payment (assumes your outstanding balance is $508,846.56) – in other words, first month payment after you have renewed your mortgage 5 years from now at higher rates:

Payment $3,285.94 Monthly
Total Interest Paid $148,380.97 ($2,432.47/month, average)
Total Payments $200,442.44
Principal Paid $52,061.46 ($853.47/month, average)
Outstanding Balance $456,785.10

Note the $853.47/month of “net worth” you will be gaining at higher interest rates…there goes your capital argument down the drain 5 years from now. The same for your capital argument for the first 5 years at $1,519.22/month of “net worth”.

Please stop making Simple Interest calculations. Understand that even 3 years from now rates will be higher…even RE associations are forecasting this (Google most recent BCREA forecast by their Economist).

And please, take a Business Math course and if you did, you ate the book covers.

#181 broader mind on 01.14.16 at 11:15 pm

Ok,lets try this on for size. Given present and future BOC rate decisions,preferred etfs are self-cannibalizing.

Buy them for yield and stop worrying about the short-term. Capital values will restore for anyone with a longer-term investment horizon, and meanwhile you make money with a fat tax credit. Man up. — Garth

#182 Carlyle on 01.14.16 at 11:21 pm

#141 New Canadian

I did the same, moving from Toronto to a small Albertan city. Small cities is where the middle class life can still be had, especially if you are in an occupation with specialized skills that growing cities need.

You not only have a far cheaper cost of living but you also have far less competition for those professional jobs.

#183 Millennial Realist on 01.14.16 at 11:33 pm

Hitler? Seriously? Get over yourself, son. — Garth
———————————————————–

So this was your response, Garth, to my comment that neo-con leaders trying to manipulate the dispossessed by having them turn their anger against the even more vulnerable is a link between previous fascist leaders and those using tactics like Donald Trump. (Harper comes to mind as well, of course, but not as dramatically as Trump)

In contrast to your apparent blanket denial of Trump’s examples of neo-con excess with touches of fascism, Garth, here are some thoughtful discussions about exactly this issue.

http://www.cbc.ca/news/trending/trump-hilter-comparisons-1.3355426

http://fusion.net/story/245260/donald-trump-hitler-rally-president/

http://www.politico.com/story/2015/07/poynter-compares-donald-trump-hitler-120361

http://www.hollywoodreporter.com/news/trevor-noah-donald-trumps-xenophobia-831203

http://www.alternet.org/election-2016/donald-trump-getting-his-cues-hitler-how-gop-leader-following-fuhrers-recipe

http://www.independent.co.uk/news/world/americas/us-elections/donald-trump-compared-to-adolf-hitler-after-complete-shutdown-of-muslims-comments-a6767941.html

http://www.telegraph.co.uk/news/worldnews/donald-trump/12038640/Who-said-it-Donald-Trump-or-Adolf-Hitler.html

http://www.salon.com/2015/12/10/no_trump_isnt_the_next_hitler_but_his_real_historical_comparison_is_still_scary/

http://www.cracked.com/blog/why-comparing-donald-trump-to-hitler-makes-perfect-sense/

http://www.delawareonline.com/story/opinion/columnists/harry-themal/2015/12/12/hitler-comparison-fits-trump/77228290/

http://www.politico.com/trump-muslims-shutdown-hitler-comparison

Many more where these come from. Not wingnut websites or comment sections, either.

Again, I am not saying Trump IS Hitler. He actually speaks more to quasi-fascistic elements of America’s own history.

But tactically, the similarities in his rhetorical and ideological approaches to a variety of fascistic movements should be of great concern.

Not paying attention to the real damage caused by the lies of neo-con ideology over decades is what has duped so many into thinking that what Trump promotes is any kind of solution.

Those who ignore history are doomed to repeat it.

Hope you enhance your thinking by doing some reading, “dad”. :)

#184 riskfree massivereturns on 01.15.16 at 12:01 am

http://www.timescolonist.com/news/b-c/sea-view-apartment-development-on-tap-for-vancouver-s-molson-site-1.2151060

#185 oceanside on 01.15.16 at 12:08 am

#148 Arfmooocat on 01.14.16 at 9:20 pm
Senior Trudeau and Señor Trudeau

Kevin O’Leary and Donald Trump will make this continent great again, real men with the whole population their concern. Sunny Days for a few….

#186 Frank on 01.15.16 at 12:16 am

Realtor friend just bragged on Facebook about his record sale here in Vancouver. Expect new highs this January. Not sure when it stops or declines but it’s not this month.

#187 nonplused on 01.15.16 at 12:16 am

Beth: MGTOW. You aren’t offering anything he needs or would want to stay for except the kids, but eventually you will put them in play and then he should just leave, which is what he will eventually do.

Remember everybody motorcycles, whatever type you can afford, are always better than wives.

Women remember always that if he is paying the rent, shut up and stop making “suggestions”. He so doesn’t need you for anything. If he is diverting one single dollar away from motorcycles to look after your kids, he is a god man. If you are demanding one penny more, you are a bad woman.

#188 Dividends on 01.15.16 at 12:25 am

Garth–

Six months ago, I put my RRSP funds into a balanced portfolio of ETFs. Now I’ve logged in again to think about rebalancing, and lo and behold many of the ETFs have been spitting out dividends monthly–some under $100, but some above. Where am I supposed to put this new cash?

#189 nonplused on 01.15.16 at 12:26 am

PS more ranting. Women are entitled to buy what ever houses they think they want at whatever price they think they can afford. Great. All the power to them. Men buy a motorcycle and ride away. Ride away men! MGTOW!!!!

#190 MARCO on 01.15.16 at 12:37 am

Our social system provides support and a large net for people. They don’t have to save for anything or worry hour a rainy day.

This is their flawed thought process.

#191 Fuzzy Camel on 01.15.16 at 12:45 am

CADUSD is going parabolic.
I sure hope Canadian businesses didn’t borrow in USD, or we have a big problem soon. I counted 6 different trends from 2012 when the uptrend started, and the rate of change is increasing drastically to the upside, meaning the USD is appreciating at a parabolic rate. This isn’t sustainable.

Mr Smoking man has the right idea to use FOREX to make some dough off this. I opened up one, going to give it a whirl, I usually just do options but this looks good.

#192 Vampire Studies GMST 454 on 01.15.16 at 12:59 am

Just got home, havent read comments. Here’s a joke from decades back.

What has one dollar and two pesos?

Answer – North America

#193 BS on 01.15.16 at 1:00 am

Millennial Realist on 01.14.16 at 10:03 pm

…Especially when we should all be looking at the luckily-born wealthy who are the cause of manipulating the system to create wealth just for themselves…

You mean like the guy you just voted in as PM?

#194 Mr.Hulot on 01.15.16 at 1:11 am

#108 That pairing wouldn’t work. Two primo donnas.

#195 S.Bby on 01.15.16 at 1:15 am

Do whatever you want to. You will anyways.

#196 Turtle on 01.15.16 at 1:20 am

Beth,

1. Meet your husband half way: Rent a better place with windows. You can always buy later, when prices crush.

2. Don’t take away your kids from their father. If you want them to be happy, of course.

3. There is so much more in life than a mortgage. Take a trip, go see places.

#197 Ponzius Pilatus on 01.15.16 at 1:44 am

#67 acdel on 01.14.16 at 6:17 pm
#41 Penny Henny
#26 acdel on 01.14.16 at 5:14 pm
Not sure if Garth will post this link but if so; I would like to hear some opinions on this; whom ever is willing, much appreciated!

http://business.financialpost.com/news/fp-street/equitable-launches-digital-bank-with-3-interest-savings-account-to-lure-deposits-from-canadian-rivals

Why would you put money into a bank with no branches, no retail staff, no track record and whose asset base is made up of mortgages in a bubble market? Not enough risk in your life? — Garth

/////////////////////////////////
Right on, Garth.
The first Internet only Class A bank was Citizens Bank of Canada, founded in the late 90s.
It was a subsidiary of VanCity Credit Union.
Folded in 2011 because of lack of depositors.

#198 Wicked as it seems on 01.15.16 at 1:45 am

Australia is on the same currency downside as Canada identically….we’re not alone!

#199 Sheane Wallace on 01.15.16 at 1:46 am

exchange rates (CAD down 11 days in a row)

CAD / USD 0.6913 -0.0053 -0.76%
CAD / EUR 0.6351 -0.0063 -0.98%
CAD / GBP 0.4803 -0.0029 -0.61%
CAD / CNY 4.5546 -0.0384 -0.84%

Poloz will cut rate next week. 0.5x handle in few months/weeks? Absolutely.

Melting down before your eyes.

Rates must be 10 + % and I still won’t own it.

#200 Freedom First on 01.15.16 at 1:51 am

#153 Leo Trollstoy

True, true, true, and true. 100% correct.

Imagine being married to Beth. A slave and don’t even know it. Like most slaves.

Freedom-Priceless. It’s great to be me.

#201 Sheane Wallace on 01.15.16 at 1:51 am

polozgohome.com,
polozresign.com
and
polozraiserates.com
are available for registration

#202 Freedom First on 01.15.16 at 2:00 am

#158 Smoking Man

Yes. You know. I got it. Schools not working though. Men are walking away. More women in University now. Universities overrun by Wynnies hate men philosophy. Men saying f u.

#203 LowRent of Arabia on 01.15.16 at 2:09 am

For the 1%’ers…. You can afford Cauliflower Cheese.

My wife has a great recipe if you need it.

#204 hmm.. on 01.15.16 at 2:09 am

I want a house! not a man.
el Hombre.. you go girl!

#205 juno on 01.15.16 at 2:14 am

Beth its definitely different this time.

I’ve been around in the 80 the Asian contagent, dot com bubble and etc.

Never have I’ve see the Real Estate traded like a penny stock. But it is right now.

Never Have I seen so little saving and a huge dependency on Debt. The gen – x and milleniums way of think is … Debt should be a right and don’t really understand interest and principle .

That lesson is about to be given. Cash is King in the next couple of years

#206 juno on 01.15.16 at 2:20 am

.#145 Washed Up Divorce Lawyer on 01.14.16 at 9:14 pm
Beth:

Dump him.

If someone asks you, “Would you marry for money?” the answer is “Is there any other reason?”
===========

Sorry Pal Beth has 2 kids. After the divorce her net worth is pitiful.

A women with 2 kids in Korean is not longer PIE

In North American she’s damaged goods.

#207 Metaxa on 01.15.16 at 2:32 am

If one wishes to win, one does not flee from danger.

One flees to safety.

In doing so one needs to be mindful of noise, chaff, propaganda.

I am concerned that far to many of you are offering puppies from your van, candy for free. Lotion.
You seem to hate all too often.
You seem fearful.
Of others, of your government, of the market forces at work.

How does that help those who seek safety?
When so many are fleeing danger…the wrong tactic always.

OPEC is after Russia, not the US or Canada.
All will be fine soon enough.

Stop fighting one another and seek safety.

#208 Jasmine Strange on 01.15.16 at 3:13 am

China is stockpiling imported oil at record rates, some 7 million barrels a day and JP Morgan announces they have gone long on oil stocks. The XLE popped nicely yesterday on that news. What is that telling us? Are the smart money buying while there’s blood in the streets? Is XEG a good bet a these levels or will our tanking currency render the CDN Market neutral until Poloz and Trudeau take the boot of incompetence ff our necks

#209 jane 24 on 01.15.16 at 4:01 am

Excellent post and comments this morning.

How can a bank even consider lending 600,000 to this couple? They hardly make enough after tax to support a family of 4 in their current digs. I estimated about $25,000 left clear every year after all house expenses and taxes. They are wasting their time arguing over this as simply not possible to do.

Geneva – mega fab. Agree, both hands up. Canada is piffle in comparison.

Finally Garth, the TFSA is a govt gift, it can be given and taken away on the whim of T2. Plus the gremlins know how much you have in there. Once the govt gets totally strapped for cash they will be looking for taxable pots of money and RRSPs and TFSA are possible sources of revenue. This is one of the many reasons I am kicking myself for leaving my RSSPs in Canada other than Cdn $ suicide. Plus I am no longer laughing at the Italian relatives who bury their money in the garden.

#210 Joe Blow on 01.15.16 at 4:13 am

Stick to Video Game Programming

If you think interest rates are every going up again in Canada maybe look at Japan for the last 30 years for a primer. When they tried to raise interest rates the economy tanked, same thing would happen in Canada. Watch what happens in the US over the next year. Interest rates are going no where….. They can’t.

#211 John on 01.15.16 at 7:00 am

Why would their mortgage principal still be $600k after 5 years of payments?

#212 keep calm and do not panic... on 01.15.16 at 7:08 am

PM Sunshine T2 is coming back from his vacation soon and everything will be awesome again in Canada!

#213 Chris on 01.15.16 at 7:23 am

Interesting story. I read this blog daily now and you have almost convinced me, but I just have this nagging voice that keeps telling me that your take on the Toronto real estate situation is wrong. There are a lot of reasons for that and I have already voiced some of them. I am thinking now back to the time I lived on a little Island in South East Asia called “Formosa” (the Chinese call it “The republic of China” the rest of the world knows it as “Taiwan”.

This little Island had a couple of things going for it. It was hot (cut in half just south of the middle by the tropic of Cancer). It was very well situated, trade wise (so it had huge ports and a very active manufacturing industry). And it was politically situated so that it became the head office of a large number of Chinese industries (thus guaranteeing that the mainland wouldn’t try to invade it – they’d be invading their own companies).

I remember how real estate worked on this island. Basically a house (or a building really, there were no houses) that you could live in (and rent out, there were always rental units) started well north of a million US dollars. Real estate was ridiculously expensive. I have never seen prices like I saw there. It made the price of house in Toronto look like a yard sale price. People who could scrape together the money to buy a house there, did so, any way they could. Home ownership was power, status and personal accomplishment. Being a landlord was one of the most respected things you could be.

The trick was, you COULD own land. In most of the civilized places on this planet, you can’t.

Back to Toronto: This city has become internationally known, internationally populated and is a “civilized” place. That is what I think gives the properties value. And that is not going to change. The same is true for Vancouver. So I just can’t see this giant housing crash that keeps getting predicted. Yes there are idiots out there who are buying $700,000 houses with $600,000 mortgages, and these people are going to get burnt. And most of suburbia will continue its boom bust cycle and people will lose their houses. But Toronto and Vancouver are different.

#214 pbrasseur on 01.15.16 at 7:36 am

How can a bank even consider lending 600,000 to this couple? #207 jane 24

That’s the worst part of it, because you and I are backing that loan with our taxes! The banks take no risk, we do. This is the Canadian way it seems.

This reminds me, with the diving loon (how appropriate) and current market turmoil, the REAL correction has not even started…

#215 Nacho Macho on 01.15.16 at 7:39 am

Garth

What is your exit plan from that miserable place….I bet you would look good in a sombrero, strutting your stuff on the beaches of Cancun..it may be the only place you can afford soon, unless holding out for a weekend trip to Wasaga during the 5 week Canuck summer is another option…

#216 Sheane Wallace on 01.15.16 at 7:43 am

and exchange rates this morning, few hours later, CAD further down against ALL currencies:

CAD / USD 0.689 -0.0076 -1.09%
CAD / EUR 0.6315 -0.0099 -1.54%
CAD / GBP 0.4808 -0.0025 -0.51%
CAD / CNY 4.5388 -0.0542 -1.18%

#217 Smoking Man on 01.15.16 at 7:46 am

Holly Crap.

USDCAD 1.45 x 1250 contracts
Average buy in 1.33135

Do the math.

Just f-en wow………….

I should re do the shower…..Naw screw it.

#218 common sense on 01.15.16 at 7:53 am

Well reading the comments this am the people have truly spoken.

Beth? Your reply please..

#219 fancy_pants on 01.15.16 at 8:09 am

does this blog allow for speculation? I didn’t think so but to husband #bethrocks : next time marry the ample brains, not the ample bosom. or in case of scenario 3, neither apply and we condone you for your mistake. good luck.

viva el peso

#220 Jeff Gauld on 01.15.16 at 8:20 am

Just got a letter from the CRA requesting proof I am eligible for the family tax cut. Something tells me we are going to see more of this.

They want my religious leader, a community leader, school admin to write a letter of my living situation with my wife and kids. wtf?

Garth: Can you write a couple of positive articles about the Canadian economy?

#221 simple mind on 01.15.16 at 8:22 am

We need a good old fashion energy crisis

#222 crowdedelevatorfartz on 01.15.16 at 8:33 am

Well Im a little confused.
Beth obviously contacted Garth because she value’s his opinion.
Unfortunately she also seems completely incapable of listening or comprehending what he’s been saying for several years.

Housing is grossly overpriced and due for a correction.
Historic numbers of Canadians are in debt up to their eyeballs.
The economy is in a tailspin.
The government is “fiddling” while the dollar burns.
Jobs numbers in Canada are abysmal.
ie DONT BUY A HOUSE AT THIS TIME!

Her solution? Buy a house or divorce.
Either option is a road to financial penury for years to come. Patience Beth. The house is a few years away at a much lower cost. Rent another place that isnt a basement suite.

#223 Q1 Duplex Drive 4-6-4-4 Type on 01.15.16 at 8:38 am

I walked in to work this AM, took one look at where CAD was trading against the USD and thought to myself: SELL TRUDEAU.

Evidently most investors feel the same way.

#224 Keith in Calgary on 01.15.16 at 8:44 am

The best thing any male can do to prevent themselves from marrying a beast like “BETH” is to have a vasectomy as I did. I’ve been happily married since 2001 to a professional women who also didn’t want kids…….or “two legged 18 year mortgages” as I refer to them.

It prevents you from getting trapped by a hormonal wench with overblown nesting instinct.

Ever walk thru a supermarket and look at the dour faces of the males pushing the strollers ? It’s not because of the price of cauliflower………

The only question I have for the male in the scenario in our post today is are the kids “theirs” or “hers” ?

If they are hers, just walk away yourself. Cut yourself a cheque for 50% of the money and run. If the kids are yours, let “her” divorce “you”. But still grab 50% of the money before things get ugly and hide it.

#225 HCWTT on 01.15.16 at 8:46 am

#139 Smoking Man on 01.14.16 at 8:34 pm

#108 Luc on 01.14.16 at 7:35 pm
Could not resist! Kevin O’Leary as prime minister and Garth as finance minister. What do you think?
….
Thats exactly what we need to make Canada Great Again.
Garth was the smartest shit in the Harpo neo-con controlled government. His crime.
A beautiful man, that actuly cared. But a man all the same who flipped the bird when the collective said, no blogs allowed.
He’s a fking gifted writer, that’s like telling a Lush no more booze.
Can’t believe we haven’t had a beer together yet, when I shock his hand at the gartho show years ago. He was terrified, so I never pushed it.
Figure the prick got a glimpse of my rotten teeth.
_____________________________________________

Yes the rotten teeth will get you every time but why did you shock his hand?

#226 MF on 01.15.16 at 9:00 am

#211 Chris on 01.15.16 at 7:23 am

“Civilized” just like the US in 2007?

Like Garth says “give your head a shake”.

Take away the debt punch bowl and this thing goes down.

We were “civilized” in 89′ as well. And we are not a tropical island with limited land.

Nothing in your post makes me feel like we are different at all.

Maybe we are stupidER? Is that what you meant?

MF

#227 Dominoes Lining Up on 01.15.16 at 9:04 am

More signs of the major changes on the way. Toronto Star shutting down – it’s printing plant!!! Go figure.

http://www.theglobeandmail.com/report-on-business/toronto-star-expected-to-close-main-printing-plant-in-gta/article28200915/

Actually, the Star has been forward thinking. Last spring they took down their payroll, while their competitors still don’t get it, thinking they can get people to pay this way.

As Garth said earlier, the next new will likely be the whole National Post conglomerate going under, and no one will, or should, care.

There’s only so many realtors who will be able to afford print ads in the next couple of years……..

#228 Sheane Wallace on 01.15.16 at 9:07 am

and in the morning:

CAD / USD 0.6906 -0.006 -0.86%
CAD / EUR 0.6305 -0.0109 -1.70%
CAD / GBP 0.4816 -0.0017 -0.34%
CAD / CNY 4.5498 -0.0432 -0.94%

going, going, …gone!

#229 learningfromyou on 01.15.16 at 9:09 am

Thank Garth for this post

Today the metro journal on the page 10 makes reference to the tax avoidance in fiscal paradises.

Please correct me if I’m wrong, tax evasion is when you do something illegal to reduce the amount of taxes you pay.
Tax avoidance in my opinion is the use the whole extent of the lawfully rights to reduce the amount of taxes you pay.

With a government thirsty for every single penny in your pocket I’m under the impression that slowly tax avoidance might become a criminalized issue.

We do that sending money to the RRSP, letting it grow and taking it out in raining days with no job or when we do not work anymore, or contributing to the RRSP of our partner with lower salary and after 3 years being able to take it out at a lower rate.

We also do that investing from the TFSA with no additional penny generated to the government from the gains.

http://edition.pagesuite-professional.co.uk/digital_Launch.aspx?ID=5aa10030-5d60-4a7d-942c-16669acfd4c2

They already dented the TFSA, meaning that they were not happy with it, maybe one day they keep denting other vehicles. It just a matter of create and approve a legislation.

#230 Dominoes Lining Up on 01.15.16 at 9:10 am

Oops, my speech to text thingy got it wrong. Should have said:

Actually, the Star has been forward thinking. Last spring they took down their paywall, while their competitors still don’t get it, thinking they can get people to pay this way.

http://www.citynews.ca/2016/01/15/toronto-star-closing-printing-plant-in-vaughan/

Over 200 jobs lost in this. Probably a harbinger of what we’ll be hearing all over by this spring.

The challenge of monetizing media is going to crush quite a few outlets soon.

Garth, good thing your blog is free!

(Though you might try to monetize it too – maybe collect all the comments and send them to the Canadian Mental Health Association for a fee each week, for practice analysis by interning shrinks)

#231 Tony on 01.15.16 at 9:26 am

Re: #228 Sheane Wallace on 01.15.16 at 9:07 am

And Poloz wants to cut interest rates this Wednesday.

#232 Bottoms_Up on 01.15.16 at 9:31 am

#228 Sheane Wallace on 01.15.16 at 9:07 am
—————————
At least we have lots of land and a beautiful country to explore…there’s gunna be a lot of staycations with our Canopoly money!!

Any stock or etf that follows Canadian tourism industry?

#233 Penny Henny on 01.15.16 at 9:39 am

#141 New Canadian on 01.14.16 at 8:51 pm

Wonderful post!

#234 BC Working Guy on 01.15.16 at 9:41 am

Everyone knows how I am the poor person on this job working at a gas station in Vancouver since I was 16 and priced out forever from real estate. I live on a poverty wage and pay sky high rent in a basement suite.

I have made one investment that is way up–thanks to what I learned on this blog! A few months back when the Canadian dollar was still in the 80+ cents range, I opened up a US dollar savings account at a Canadian bank. I am someone who is financially illiterate. I don’t really know anything about interest rates and currency exchange. I am just learning from this blog and what people post. I did learn a tidbit of knowledge this year. I learned that when interest rates in Canada are going down, but interest rates in the US are going up, it’s going to mean the Canadian dollar is going down relative to the US dollar. Add in the falling price of oil since last year and that puts even more downward pressure on the CAD. I learned this from this blog. The writing was on the wall months ago that the Canadian dollar was going down and I could see it as a minimum wage basement dwelling renter in Vancouver. So I converted my entire life savings into US dollars a few months ago. My life savings aren’t much. I was able to deposit about $1000 US into the account (converted from Canadian crappy working wages). I am up big time over the past few months. When I opened the account, the CAD was in the 80 cents range. Now the Canadian dollar is in the 60 cents range, some saying it will go down into the 50s. I’ve made hundreds of dollars in the past few months by doing this. I bet I made way more profit in my US dollar account than I ever would have in a TFSA or RRSP! Thank you, blog dogs, for teaching me some financial literacy. Now I just have to get my timing right to cash it back into Canadian–when the CAD is at it’s very lowest point.

#235 Grey Dog on 01.15.16 at 9:43 am

Beth, one other big costly item to consider if you leave the current basement of the home you’re in…Child Care.

Since you are with family, you are probably receiving FREE child care, you are probably taking that for granted too!

I’m given to understand child care expenses are HUGE for those that pay for it.

#236 Evangeline on 01.15.16 at 9:57 am

I’ve gotten so I can predict how the markets are doing by the weather. If it’s dark and gloomy, the markets are down. If it’s cheerful and sunny, the markets are up. Climate change I can believe in.

#237 liqudincalgary on 01.15.16 at 9:57 am

Julie K.

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

clever

#238 Smoking Man on 01.15.16 at 10:12 am

Bond Yields lowest in history, or close to it.

http://www.bankofcanada.ca/rates/interest-rates/canadian-bonds/

Why do people doubt the Great Smoking Man?

#239 Noel on 01.15.16 at 10:12 am

“…plus the lost earning power of their down payment (at just a 5% annual return) adds another $1,520”

Thanks for the morning laugh!

#240 Smoking Man on 01.15.16 at 10:16 am

THE FEDS – DUDLEY: IF ECONOMY WEAKENED, WOULD CONSIDER NEGATIVE RATES

Like I said, One and Done, then reverse.

God Damn Nectonites is all I’m saying.

#241 tkid on 01.15.16 at 10:16 am

#234, Even though I think you are a troll, you can open RRSP and TFSA self directed accounts and invest in US denominated assets. Stocks, ETFs, etc. You want to do the US dollar thing inside a TFSA in order to LEGALLY shelter your gains from taxes. Right now, your earnings – you’ll have to pay taxes on ’em.

Most of the banks have demo accounts. Go try one out.

#242 Evangeline on 01.15.16 at 10:22 am

Jim #19

That’s what Beth should be doing, being grateful, that she has her health, a husband, healthy kids, a roof over her head, living parents, lives in a peaceful nation and has money saved, and probably a lot more. Instead she’s looking at the cup half empty and setting up herself and all those close to her for a lot of grief.

#243 Alberta Ed on 01.15.16 at 10:25 am

Love the new Canada Peso with J2 in the sombrero (Juan 2?). Is there a pot plant on the back?

#244 Long Time Lurker Here on 01.15.16 at 10:26 am

If I were Beth and Hubs I would seriously consider keep living with my parents to save more money. The earning they have is not enough to sustain house ownership at this pricing level.

If $110k is before tax earning, its probably tough to even rent a decent sized home. Keep paying the $900 rent, and live a better life by driving a better car, going to better trips and eat better. Instead of being house poor and worry about cauliflower price fluctuation.

#245 House lust on 01.15.16 at 10:29 am

Beth is using this as excuse to divorce her husband if not a house she will find some other minuscule reason. I pity her when she wakes up and realizes how stupid she is and has lost it all. I pity her husband too stuck living with such a stupid person, always nagging about a house how sad!!!

#246 200 Dollars on 01.15.16 at 10:37 am

Wow 50 percent in trouble over 200 bucks!! With food going crazy and fuel will go up in spite of cheap oil 200 is nothing. this is disasterous!

#247 salonist on 01.15.16 at 10:49 am

for the thrifty and adventurous

backyard, working out house

http://jamaicacottageshop.com/shop/working-out-house/

with a solar panel..imagine the possibilities

#248 Alistair McLaughlin on 01.15.16 at 10:49 am

She’s willing to break apart her family with a divorce because her husband refuses to break the family financially? I’m going to go home and hug my wife. THANK GAWD I did not marry someone like that.

You poor, poor pathetic SOB, whomever you are. I feel for you. But weren’t there some indications, of inherent narcissism before you tied the knot? Narcissism doesn’t just appear overnight. It’s a life long character defect. Beth is a narcissist now because she’s always been one.

#249 TRT on 01.15.16 at 10:51 am

@Leo, Sheane, Smoking Man etc

What’s a good exit strategy for the loonie? IMO, there is some downside left (low 60’s?) but what a ride down from 93 cents a little over a year ago!!

Loonie and TSX will be depressed for years to come so no point bringing back to C$. Options?

#250 TRT on 01.15.16 at 10:53 am

…all in the name of keeping RE values high. Go Trudeau/McCallum!

#251 JimH on 01.15.16 at 11:01 am

#215 Nacho Macho on 01.15.16 at 7:39 am

Lo malo de Cancun es que hay demasiados canadienses

#252 Alistair McLaughlin on 01.15.16 at 11:01 am

@ #25 Only-inflation-to-reduce-debt-burden

You’re financial and economic illiteracy is increasing from one day to the next. Isn’t that the opposite of what you should be aiming for?

#253 Keep buying on 01.15.16 at 11:02 am

I converted 2 million loonies into US dollars back when they were worth 2.1 million US dollar. So far, I have made over 400 thousand dollars in my sleep. So everybody, please keep buying them US dollars!

#254 Leo Trollstoy on 01.15.16 at 11:12 am

“two legged 18 year mortgages” as I refer to them.

18 if you’re lucky. some are 30+

#255 Fine Wild Roasted Gonads on 01.15.16 at 11:13 am

#217 Smoking Man on 01.15.16 at 7:46 am

Holly Crap.

USDCAD 1.45 x 1250 contracts
Average buy in 1.33135

Do the math.

Just f-en wow………….

I should re do the shower…..Naw screw it.

Yoowzers!!..

Smoky gets a new shower… blog dogs will now be selling their houses on mass and betting forex

#256 Leo Trollstoy on 01.15.16 at 11:16 am

#217 Smoking Man on 01.15.16 at 7:46 am

hey SM I dunno all that currency (or stock) stuff. what’s the profit on that?

#257 JimH on 01.15.16 at 11:29 am

S&P 500 is testing its August and Sept lows.
NASDAQ doing the same.
DOW ditto.

This is the fourth time the S&P 500 has tested support at this level since the beginning of 2014. Every time a support or resistance level is tested, it tends to weaken.

There was much excitement over yesterday’s ‘rally’, but like most rallies that commence from below a declining 5 DMA, it looks like it failed at this point.

For long-term investors, this is of no consequence.

For short-term traders and speculators dying to call this a bottom, I believe your chances of being right are less than 50/50. Not great odds.

#258 Fine Wild Roasted Gonads on 01.15.16 at 11:37 am

#256 Leo Trollstoy on 01.15.16 at 11:16 am

#217 Smoking Man on 01.15.16 at 7:46 am

hey SM I dunno all that currency (or stock) stuff. what’s the profit on that?

Every tenant in your buildings gets a new solid gold shower x10.

#259 CHERRY BLOSSOM on 01.15.16 at 11:38 am

I told you we were headed for a global depression. I just hope someone at Bill Morneaus’ talks tells him that THE GOVERNMENT SHOULD STOP WASTING .40 cents out of every dollar. That would help

#260 Daisy Mae on 01.15.16 at 11:39 am

GLOBE & MAIL: TSX, Dow plummet as oil prices extend relentless dive

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

Can’t blame this stuff on Trudeau, as much as some would like to. ;-)

#261 Daisy Mae on 01.15.16 at 11:42 am

TSX, Dow plummet as oil prices extend relentless dive

#262 Daisy Mae on 01.15.16 at 11:42 am

Not working…please omit

#263 For those about to flop... on 01.15.16 at 11:48 am

Walmart to close 250 stores in the U.S.
Hoping to move as many staff as possible to other stores.
Source CNN.
Planning on opening 300 new stores worldwide.

M41BC

#264 Daisy Mae on 01.15.16 at 11:48 am

GLOBE & MAIL: “The Canadian dollar is on its longest losing streak since at least the 1970s as speculation mounts that the central bank will cut interest rates back to the record low only seen amid the 2009 financial crisis, with almost nothing left to drive the country’s economy.

The currency has allen for 11 straight days against the U.S. dollar through, the longest run of daily losses since the country ended its currency’s peg to the greenback and let it trade freely in 1971 . The streak surpassed a nine-day run in April 2005, and Friday touched an almost 13-year low.

The declines come during a week when market turmoil in China helped push crude oil, until last year Canada’s largest export, below $30 per barrel for the first time in 12 years. That stoked speculation there will be no quick return to the near-$100 per barrel oil that fueled growth the past decade. Recent domestic data have shown few signs that other parts of the Canadian economy are stepping in to fill the void left by oil.

“It’s a perfect storm for the Canadian dollar,” said Andrew Kelvin, senior fixed-income strategist at Toronto-Dominion Bank. “Oil is at levels people hadn’t been considering except as a worst-case scenario.“

The streak began on Jan. 1. That’s when the loonie weakened 0.1 per cent, according to Bloomberg generic pricing, which is based on input rates from currency price contributors.

On Friday, it weakened another 0.8 per cent to $1.4482 per U.S. dollar as of 9 a.m. in Toronto. One Canadian dollar buys about 69 U.S. cents….”

#265 Daisy Mae on 01.15.16 at 11:51 am

GLOBE & MAIL: “Canadian dollar tumbles. The loonie is in free-fall, sinking below 69 cents (U.S.) today. And watch out if the Bank of Canada cuts its benchmark interest rate again next week.

The embattled currency tumbled to as low as 68.75 cents, having been as high as 69.72 cents. It sat at just below the 69-cent mark by miidday, having closed out yesterday at 69.6 cents.

There was a “huge move” in the Canadian dollar just around the time the London market was opening, said Royal Bank of Canada currency strategist Adam Cole.

The loonie was again pressured by oil prices, the risk-averse nature of the markets, and mounting expectations of a rate cut next week by Bank of Canada Governor Stephen Poloz and his colleagues, Mr. Cole said from London.

A cut in the key rate from 0.5 per cent isn’t fully “priced into” the market, he warned, which means the loonie’s freefall could speed up even more should the Bank of Canada act.

“If they do cut, we could be well through $1.45 next week,” Mr. Cole said, which would mean the loonie tumbling well below 69 cents.

“Conversely, if they don’t, I don’t see much of a recovery.” That’s because expectations of another rate cut would simply be moved forward.”

#266 Leo Trollstoy on 01.15.16 at 11:53 am

I converted 2 million loonies into US dollars back when they were worth 2.1 million US dollar. So far, I have made over 400 thousand dollars in my sleep.

that would be closer to a $1m gain

#267 Sam on 01.15.16 at 11:55 am

http://www.thestar.com/business/2016/01/15/canadian-2015-home-sales-second-highest-on-record.html

#268 Not tonight honey on 01.15.16 at 11:57 am

#253 Keep buying on 01.15.16 at 11:02 am
I converted 2 million loonies into US dollars back when they were worth 2.1 million US dollar. So far, I have made over 400 thousand dollars in my sleep. So everybody, please keep buying them US dollars!

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

Congrats Keep buying!
Wow, 400k is amazing, not a cauliflower care in the world ;-)

As mentioned, I know very little to nothing about investing (picking away at learning during toddler nap times ). The foreign exchange stuff I haven’t even looked at yet…. I suspect the dollar will sink further and I would like to ride this train too. While I don’t have a spare 2M to wiggle around with, I/we do have a healthy chunk that could be exchanged…..every little bit counts!

May I ask how you made your exchange purchase? I don’t think I’m ready for smoky style contracts, I’m only comfortable with a quick exit strategy as this stage of my early learning…..
Thanks in advance!!
NTH

#269 Ronaldo on 01.15.16 at 11:57 am

#234 BC Working Guy on 01.15.16 at 9:41 am

You’re quite the comedian.

#270 TurnerNation on 01.15.16 at 11:58 am

Typical day in Kommunist Kanada. Toronto’s subway extension almost 1/2 billion over budget. I bet due to union extortion, and legal graft payments.
And Toronto Star closing plant laying off 300.

Kids, work for public sector or crown corp. Bottomless trough and career stability.

#271 Nagraj on 01.15.16 at 12:05 pm

If there is such a thing as the PPT, it lives in the Eccles Bldg in NYC and it must be stuck in traffic this morning because stocks haven’t stopped suiciding (and oil hasn’t bounced).
– maybe that should read stocks haven’t bounced and oil hasn’t stopped suiciding

JT is so photogenic that he doesn’t look stupid even with a sombrero, to make this guy look stupid yer gonna have to have recourse to a capable cartoonist.
[On the other hand S. Why-don’t-they-work-for-free-for-a-year Poloz always looks kinda dopey.]

I must mention a comment on yesterday’s SPX bounce off the bottom of the Bollinger Band: that it had all the credibility of ginned-up cheerfulness in a household stricken by the plague.

( ” . . . and the road was a ribbon of moonlight over the purple moor . . . ” )

#272 pinstripe on 01.15.16 at 12:06 pm

the wet coast geezers not only have the laundered money system figured out but now are on to something new, better and more interesting. TAX FREE zones in Canada. Vancouver and Toronto are world class cities. now the rumour has it that to keep that status the drive will be towards having TAX FREE zones within those cities. The free flow of global money will meet all the criteria of the global economy.

I wonder if kevin oriley can make this happen when the CPC policy makers pick him as their new leader?

#273 Show me the data on 01.15.16 at 12:06 pm

Garth please show me a link that shows oil and stocks have bounced back.

Mark. Cultists always ridicule and try to discredit outsiders and deprogrammers. At least you sound like someone who has taken economics and finance classes.

#274 Brazil ex-pat on 01.15.16 at 12:09 pm

https://www.rt.com/usa/329110-goldman-financial-crisis-settlement/?utm_source=browser&utm_medium=aplication_chrome&utm_campaign=chrome

Anyone care to guess how many bankers went to jail?

#275 The American on 01.15.16 at 12:12 pm

I’m curious… Where’s that headline plastered all over the papers that Canadians are once again poorer than Americans and by A LOT and have been for well over a year? Hmmmmmmmm, I wonder why they haven’t printed that in the pressss in Canada, but yer were so quick to print when Canadians so-called “wealth” surpassed American middle class, even though that “wealth” was 87% founded in inflated real estate equity that is now being demolished? It was NEVER real, folks. Tick, tock, tick, tock, tick, tock…

#276 conan on 01.15.16 at 12:17 pm

Almost time to get back into Canada.
Hope the markets stabilize before the powers that be decide a big war somewhere oily is the best medicine.

#277 Dups on 01.15.16 at 12:17 pm

Move to another more affordable city. GTA is not worth the stress and you get to enjoy nothing staying there, because the time is spend commuting.

#278 Dups on 01.15.16 at 12:19 pm

The markets just laid the biggest egg in 6 months, here starts the buying…

#279 pinstripe on 01.15.16 at 12:21 pm

The talk at the coffee shop was interesting this morning. the word is out that the premier of Saskatchewan is moving ahead with policies to make that province the next O&G powerhouse in western Canada. Some geezers are most interested in snapping up some realestate before too much materializes from these new policies. OTOH, other geezers are estatic becasuse the sask premier did not learn anything from the alberta PC mess.

#280 Calgary Rip Off on 01.15.16 at 12:21 pm

Hopefully this husband doesnt find out that she is writing to you about this. Divorce over finances? Never should have married in the first place. It’s women like this that teach men not to get married. The sad thing for women is that they are easily replaceable. The uterus only works for so long, and then you can get a younger model if you want kids. I always keep this in my mind should my wife not live as long as me and/or decides to divorce later. I wouldnt initiate a divorce, because it is never the answer. With all women come problems, and Im not attracted to men. So there really isnt any easy solution.

@Keith in Calgary: If you are happy with the vasectomy, that’s great! I like the ability to have children. Kids are a gift. I was blessed with one healthy daughter. I will have no regrets when I am old knowing I chose correctly. If my wife ever decides she wants a divorce, time to find another and have more kids.

@Smoking man: Women rule over men? In whose world? Not mine. Wont ever happen. The skill is to let the woman think she rules, when in fact she doesnt. I chose in what neighborhood in Calgary to rent. I chose to move to Calgary. I chose where to buy the house. Bottom line is all women will do is complain. So do a bait and switch and get what you want. Most women are simply along for the ride. Make them believe they are equal partners, and treat them with respect, but the reality is, they are not equal, but different with virtues and intelligence in areas that I lack.

#281 Ronaldo on 01.15.16 at 12:25 pm

Well, well, the markets are having quite a time today with the TSX down to February 06 levels. RBC needs to rise 21% to get back to its 52 week high. Oil under 30 bucks a can. Gold and silver up over 6% since end of year. For sure its enough to send the chickens running looking for a safe haven in GIC’s. However, for the wolves, there are some awesome deals starting to pop up in certain sectors. RBC would have to gain 21% to get back to it’s 52 week high. Oil stocks are in the tank. So what is a person to do? Time to go shopping I reckon.

#282 Smoking Man on 01.15.16 at 12:25 pm

#256 Leo Trollstoy on 01.15.16 at 11:16 am
#217 Smoking Man on 01.15.16 at 7:46 am

hey SM I dunno all that currency (or stock) stuff. what’s the profit on that?
…………

Paying more tax than the CEO of the Royal Bank makes in a year.

Does that give you a clue.

Look at it go !!!!!!!!!!!!!!!!!!!!!!!!!!!!

#283 Smoking Man on 01.15.16 at 12:27 pm

Will be live posting from Stir at Seneca,

Warning to the editor and chief.

Not messing with wine , going gonzo on JD right of the bat.

#284 bdy sktrn on 01.15.16 at 12:30 pm

3-4% off us markets.

still early in the day.

step off the track when the train is coming at you. there is a station every second.

otherwise stay invested, diversified, balanced etc.

#285 Tri-Guy on 01.15.16 at 12:30 pm

I believe that i am in a similar situation to Beth minus the duvorce issues. Currently own a SFH in the 604 and trying to convince the wife we need to sell and convert the equity to cash before it’s too late. I assume the consensus here agree with this idea? Home purchased in 2008 for $570k and currently valued at $900k with $415k remaining on the mortgage. I want to sell and rent and my wife wants to either renew the mortgage for 5 more years but at fixed rate or sell and buy another home in the same area with a higher mortgage. We have no TFSA savings, no RRSP savings and less than $10k invested in corporate shares. We do have RESP for our two children though.

#286 Leslie Parsons on 01.15.16 at 12:32 pm

Canadian bond yields hitting a lower level as 30 year Canada bond yields are now 1.97%, 10 years at 1.14%, 5 years at 0.55%.

Obviously money is flowing in Canada in this direction and bond yields that everyone said were supposed to go up keep crashing.

I remember December-2013, just about 2 years ago, Canadian 30 year bond yields were around 3.25%.

This is going to be worse then 2008 to 2009 for sure. TSX will be back to 6,500 to 7,000 in coming years. Just watch it. Don’t catch a falling knife!

#287 Yeah baby who luvs ya on 01.15.16 at 12:32 pm

HAPPY NEW YEAR!

#288 Marcus on 01.15.16 at 12:34 pm

Baltic Dry Index at record lows. Virtually no ships moving across Atlantic or Pacific with cargo and Wal Mart announces they will lay off thousands and close hundreds of stores. DOW now down another 450 points. 2016 will be epic.

#289 Paul on 01.15.16 at 12:37 pm

#260 Daisy Mae on 01.15.16 at 11:39 am

GLOBE & MAIL: TSX, Dow plummet as oil prices extend relentless dive

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

Can’t blame this stuff on Trudeau, as much as some would like to. ;-)
———————————————————-
We sure as hell blame him for this mess!

http://www.therebel.media/syrian_refugees_becoming_logistical_nightmare_for_liberals

#290 Apocalypse2016 on 01.15.16 at 12:37 pm

This stock market melt is not going away. 2016 will be brutal.

There will be nothing to prop up the Canadian or American economies. Then Trump. Then war.

Stay liquid, my friends.

#291 Sheane Wallace on 01.15.16 at 12:43 pm

# 249

Limited downside?

CAD / USD 0.6882 -0.0085 -1.22%
CAD / EUR 0.6274 -0.014 -2.18%
CAD / GBP 0.4823 -0.0009 -0.19%
CAD / CNY 4.5309 -0.0621 -1.35%

It is carnage my friend, bottom could be in the .35– .45 range and I am absolutely serious here.

What is the exit strategy for the peso?

#292 steerage steward on 01.15.16 at 12:45 pm

Men Are 5x More Likely Than Women to Prioritize Investing

http://time.com/money/4178832/men-more-likely-than-women-prioritize-investing/

#293 Fed-up on 01.15.16 at 12:50 pm

Half of S&P stocks trading at bear market values. Every market down sharply.

Nowhere to hide folks.

#294 Ronaldo on 01.15.16 at 1:01 pm

#272 pinstripe on 01.15.16 at 12:06 pm

”I wonder if kevin oriley can make this happen when the CPC policy makers pick him as their new leader?”

Kevin Oil-eerie their new leader? That’s funny.

#295 JimH on 01.15.16 at 1:07 pm

#263 For those about to flop… on 01.15.16 at 11:48 am
“… Walmart to close 250 stores in the U.S. Hoping to move as many staff as possible to other stores…
Source CNN.”
===================================
Actually, not nearly as bad as it sounds.
WalMart will close 269 stores globally; 154 of these will be in the USA.
However, since 2011, WalMart has been running a pilot project of 102 much smaller stores known as ‘Walmart Express’: These 102 pilot stores are part of the 154 store closings number.

My question is this; could it possibly be that 269 fewer WalMarts might actually make the world a better place???

#296 Mike in Edm on 01.15.16 at 1:07 pm

Those stats about Canadians being in trouble if their expenses rise by only a few hundred $’s are truly terrifying! I was in debt after University and it kept me up at night and stressed the hell out of me. I’m now debt free. I can’t imagine not being able to be able to fork over an extra $600/month if I needed to, nevermind the $100!

And Beth – you’re an absolute idiot. Divorce your husband and leave the kids with him. You don’t deserve him if you’re honestly thinking of leaving him – someone you are supposed to love above all else for a big fat mortgage. Talk about materialistic.

#297 Ronaldo on 01.15.16 at 1:08 pm

#276 conan on 01.15.16 at 12:17 pm

”Almost time to get back into Canada.
Hope the markets stabilize before the powers that be decide a big war somewhere oily is the best medicine.”

Everything in life is temporary. In the not too distant future the PTB in the world will realize that the game they are playing is a “no win” and will come to their senses as they did in the 1974 Oil Crisis. East and West will sit down and come to an agreement on what oil production should be for each and we will see the taps turned down just as the opposite was true back when I was a young pup. The price of oil will return to it’s proper level (whatever that may be) and the world will keep on spinning. A person would be wise to position themselves for this rare opportunity.

#298 Mike in Edm on 01.15.16 at 1:10 pm

I also had a quick look at exchange rates for the CDN$ versus all others that I had an interest in (US, Yuan, Pound, plus many places i’ve traveled to or plan on travelling to) and our CDN$ isn’t just free falling against the USD. It’s falling against basically every currency out there EXCEPT the Aussie $. It’s a sad say when Thailand and Croatia’s currencies are out performing ours.

#299 True Gains and Losses on 01.15.16 at 1:15 pm

I am looking for some advice on interpreting annualized losses and gains on my balanced and diversified portfolio.

January 1st 2015 (all values in CDN)
Portfolio Value: 333k
Capital Invested: 284k
Paper Profits: 49k

January 15, 2016 (all values in CDN)
Portfolio Value: 327K
Capital Invested: 306k (added 22k throughout the 2015 year)
Paper Profits: 21k

It seems to me that this amounts to a 28k loss of paper profits, or a 7.8% decline in the portfolio (28k/355k = 7.8%) The 355k is the value of the 2015 portfolio (333k) plus the 2015 portfolio additions (22k).

Is that correct?

Balanced and diversified portfolios typically have a 7% annual gain.

Therefore, do you factor in the ‘lost’ 7% historical annual gain for 2015 plus the actual decline in the value of the portfolio when calculating ‘paper losses? Isn’t the failure to achieve the typical 7% annual return the ‘opportunity cost’ of not having your money working for you?

When looking at annualized returns for retirement purposes, do you count the ‘lost’ 7% historical annual gain in one’s calculations.

Any feedback would be appreciated!

#300 sell, sell, sell @ TriGuy on 01.15.16 at 1:19 pm

I was in the same boat last Spring and sold by summer 2015. Sold with a good profit and sitting in cash, mostly USD since. Renting and enjoying the freedom.

Had a hard time convincing my wife as well but in the end she agreed it was a ball & chain and the banks are really in the driver’s seat.

Take control of your wealth, your equity and tell the banks to take a hike. My bank doesn’t love me anymore because I’m no longer paying their wages.

Seriously, when you no longer hold a mortgage and you have thousands in your checking account, they treat you like a 2nd class citizen. I’m sure CIBC is no different than any of the major 5.

Not too late to get into USD imo. There is absolutely no upside in commodities and our Dollar is melting, closing in on $1.5 and then $1.6 quickly. Who knows, we could even get to $2 by summer!

Canada’s problem is not just huge mountains of debt but also much higher public service sector salaries than anywhere else in the developed world. When our Dollar is 2:1 USD, we are actually at par in many regards with the cost of employment and cost of living in the US.

#301 JimH on 01.15.16 at 1:22 pm

#290 Apocalypse2016 on 01.15.16 at 12:37 pm
“This stock market melt is not going away. 2016 will be brutal. There will be nothing to prop up the Canadian or American economies. Then Trump. Then war. Stay liquid, my friends.”
===============================
Terrible, isn’t it!

First we had to deal with the Protocols of the Elders of Zion, all the goings on in Roswell, the JFK cover-up, Paul McCartney’s death in 1966, the faked moon landing, then Princess Dianna’s brutal assassination by MI5, the inside job of 9-11, chemtrails, fighting off all the subliminal advertising, and now of all things, we are facing the end of the world.

Excuse me; I see I’m all out of aluminum foil and have to run to the store. Hope the store is still there by the time I get there!

#302 Bond Junkie on 01.15.16 at 1:29 pm

SMokie, JESUS… it’s 10$ p/contract pip right?? Are you up 14.8 mil or am I running my math incorrectly? Remember, I’m a bond guy after all. Cut coming next week, 1000%, he might even go 50, why not!! Close her down and never look back after that. congratulations

#303 Ole Doberman on 01.15.16 at 1:38 pm

Sounds like alot of doomer talk on the boards.

Means it’s time to get in.

And open a can of Turner whoop ass!

#304 Smoking Man on 01.15.16 at 1:48 pm

I’ve Created wild gambling Monsters.

Remember that guy who sent me his pic of a million on forex.

He’s now up two. In what one week.

Funny how this shit changes people, he was hard core NDP not six months ago…

One way get rid of tree hugging liberals.

Now he’s Tory Blue. CUT MY TAXES !!!!!!!

I have so much fun.

http://dyslexicsmokingman.blogspot.ca/2016/01/buddy-now-up-to-2-million.html

#305 Willy2 on 01.15.16 at 1:53 pm

Cauliflower is so expensive because:
– has to be imported from the US and the USD has risen agais.
– there’s a drought in California.

But all these rising prices actually INCREASE the DEFLATIONARY pressures in the long run. But that requires some “outside the box”thinking. Think Harry S. Dent & Robert Prechter.

#306 For those about to flop... on 01.15.16 at 1:57 pm

It’s time like these I’m glad my wife and I have no kids and no mortgage.We are DINC’s.
Double Income No Chance!

M41BC

#307 bdy sktrn on 01.15.16 at 2:04 pm

The report came after the U.S. Census Bureau said retail sales fell 0.1% in December, compared to expectations for a 0.1% rise.

A separate report showed that the U.S. producer price index slipped 0.2% in December, in line with expectations. Core PPI, which excludes food and energy, inched up 0.1% last month, in line with expectations.

In addition, the Federal Reserve of New York said its Empire State manufacturing index deteriorated to minus 19.37 this month from a revised reading of minus 6.21 in December. Analysts had expected the index to improve to minus 4.00 in January.

Data also showed that U.S. industrial production
declined by 0.4% in December, compared to expectations for a 0.2% downtick, while manufacturing production fell 0.1% after a 0.1% slip.

————————————-
recovery not so hot today

#308 TRT on 01.15.16 at 2:13 pm

Who’s that guy that’s been repeatedly saying the Canada will sacrifice the loonie rather than raise rates?

Hope everyone made a mint!

Next: sell USD. Buy Euro!!

But don’t get too greedy. It is not a sure thing like the loonie plummet.

#309 dodgedbullet on 01.15.16 at 2:19 pm

@ #183 Millennial Realist on 01.14.16 at 11:33 pm

sensationalist clickbait… newspapers are dying/dead.

Hyperbolic language means sales (ad revenue), the fallout is mind space taken up by flamboyant rhetoric, it kills real dialogue.

#310 Chris on 01.15.16 at 2:19 pm

“The percentages below are the proportion of people who’d find it hard or impossible to make their monthly if”

Garth – I wish you would stop using terrible information like this to make things sound worse than they are. Of course if you ask 1000 people if it would be “hard” to pay bills if it cost them more, the vast majority will say yes. Doesn’t mean they wouldn’t be able to.

Also, you mention people need to sit back and look long term, not panic – I agree. But you want the PM to jump and do something right away?? Seems the smart thing to do would be think long term and not panic.

#311 James2 on 01.15.16 at 2:51 pm

#283 Smoking Man on 01.15.16 at 12:27 pm

Will be live posting from Stir at Seneca,

Warning to the editor and chief.

Not messing with wine , going gonzo on JD right of the bat.
”””””””””””””””””””””””””””””””””””””””””””””””””
Oh brother the goofy space cadet is going to be blitzed tonight. Why don’t you just delete yourself now and save Garth the trouble.
BTW “going gonzo on JD right of the bat.”
Why not left of the bat?
Wow cant even spell when your sober.

#312 James2 on 01.15.16 at 2:56 pm

#302 Bond Junkie on 01.15.16 at 1:29 pm

SMokie, JESUS… it’s 10$ p/contract pip right?? Are you up 14.8 mil or am I running my math incorrectly? Remember, I’m a bond guy after all. Cut coming next week, 1000%, he might even go 50, why not!! Close her down and never look back after that. congratulations
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
The master of google matriculation?
Did you forget a few weeks ago he couldn’t even calculate gallons vs litres from his recent trip to his gambling junket!

#313 Prairieboy43 on 01.15.16 at 2:58 pm

https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=3&cad=rja&uact=8&ved=0ahUKEwji-YasnqLKAhWL1RoKHcJHBXgQtwIILzAC&url=https%3A%2F%2Fwww.youtube.com%2Fwatch%3Fv%3DIGuPz61q06s&usg=AFQjCNEt8KLxEb4VQKEYMyaIv2JGgrK2zQ

Not all Banks. My Bank(Scotia Bank) takes my family to NHL games. Get a different bank.

PB43

#314 For those about to flop... on 01.15.16 at 2:58 pm

#295 JimH on 01.15.16 at 1:07 pm
#263 For those about to flop… on 01.15.16 at 11:48 am
“… Walmart to close 250 stores in the U.S. Hoping to move as many staff as possible to other stores…
Source CNN.”
===================================
Actually, not nearly as bad as it sounds.
WalMart will close 269 stores globally; 154 of these will be in the USA.
However, since 2011, WalMart has been running a pilot project of 102 much smaller stores known as ‘Walmart Express’: These 102 pilot stores are part of the 154 store closings number.

My question is this; could it possibly be that 269 fewer WalMarts might actually make the world a better place???

//////////////////////////
You know CNN Jim,they never let the facts get in the way of a good story!

#315 Re: #275 The American on 01.15.16 at 2:59 pm

Re: #275 The American

I’m curious… Where’s that headline plastered all over the papers that Canadians are once again poorer than Americans and by A LOT and have been for well over a year? Hmmmmmmmm, I wonder why they haven’t printed that in the pressss in Canada, but yer were so quick to print when Canadians so-called “wealth” surpassed American middle class, even though that “wealth” was 87% founded in inflated real estate equity that is now being demolished? It was NEVER real, folks. Tick, tock, tick, tock, tick, tock…
===================================

Hey “The American”

This is a link of people waiting in line to purchase powerball tickets on the Cal-Nevada border:

https://twitter.com/DanFleyshman/status/687338845918986240/video/1

It looks very long but it pales when compared with the 14.5 kilometers long line of EBT users per each Walmart in the USA.
http://modernsurvivalblog.com/systemic-risk/if-we-cannot-see-bread-lines-do-they-exist/

And this is a bit older statistics – nowadays there are more EBT users and less Walmarts (just another big closure announced today with 16,000 jobs gone) that probably will join the queue…

You, the Americans, are smart people as you found ways to “mask” the bread lines in the 21 century killing two birds with one stone – you “hide” the bread lines from the eyes of the foreign vendors of products and services and provide an extra income string to some monstrous bank serving the EBT system and pocketing the fees…

But see, these foreigners providing you with immeasurable products and services in exchange from a freshly printed “Federal Reserve Notes” without any backing whatsoever are awakening – slowly, slowly, slowly and then one day “BANG” – and the US$ is gone as the world reserve currency.

And once the EBT cards stop dispensing money and buying food – then the civil war breaks out and with it the big die-off of the financial controllers for Fortune 100 companies…

End result in 2025 or so:
http://www.deagel.com/country/forecast.aspx

American population – 65 million
American GDP – only 5% of the present day one!!!

Your “paper” wealth has been demolished.
Once upon a time ( more than 100 years ago) it was a real wealth but it is no-more real, folks.
Tick, tock, tick, tock, tick, tock…

#316 Rational Optimist on 01.15.16 at 2:59 pm

288 Marcus on 01.15.16 at 12:34 pm

“Virtually no ships moving across Atlantic or Pacific with cargo…”

This doesn’t seem plausible to me.

“2016 will be epic.”

Betcha it won’t. Most years aren’t.

290 Apocalypse2016 on 01.15.16 at 12:37 pm

Do you know a guy who used to come around here, name was Apocalype2016?

#317 djim on 01.15.16 at 2:59 pm

How about a run at the conservative leadership, Garth? They need someone I could actually consider voting for.

#318 TRT on 01.15.16 at 3:00 pm

Woot!

PPT team wakes up just as scheduled. Haha

kick the can forward!

#319 Smoking Man on 01.15.16 at 3:02 pm

#302 Bond Junkie on 01.15.16 at 1:29 pm
SMokie, JESUS… it’s 10$ p/contract pip right?? Are you up 14.8 mil or am I running my math incorrectly? Remember, I’m a bond guy after all. Cut coming next week, 1000%, he might even go 50, why not!! Close her down and never look back after that. congratulations
……..

That was this morning, add another big one for the afternoon

#320 Fine Wild Roasted Gonads on 01.15.16 at 3:08 pm

#304 Smoking Man on 01.15.16 at 1:48 pm

I’ve Created wild gambling Monsters.

Remember that guy who sent me his pic of a million on forex.

He’s now up two. In what one week.

Funny how this shit changes people, he was hard core NDP not six months ago…

One way get rid of tree hugging liberals.

Now he’s Tory Blue. CUT MY TAXES !!!!!!!

I have so much fun.

http://dyslexicsmokingman.blogspot.ca/2016/01/buddy-now-up-to-2-million.html

Well that’s impressive – amazing!

10k into 2 mil… that’s insane

#321 Dan on 01.15.16 at 3:14 pm

Women are brave. Men are cowards. The governments never pay debt, so why should individuals?
Beth you rule…Canadian peso is back.

#322 espressobob on 01.15.16 at 3:34 pm

More carnage in the markets. Perfect.

Hopefully things will get even more sour in the coming weeks. here’s hoping.

Buying opportunities? Nah, many sell at worst possible time and wind up with sellers remorse down the road. What a shame.

Does this chart look so bad? Pull up a long term.

http://www.blackrock.com/ca/individual/en/products/239697/ishares-msci-world-index-etf

#323 Vundo on 01.15.16 at 4:00 pm

#143 flop: a man who wants to live well learns how to care for himself. A man who can’t figure out his own cooking and laundry is not a free man. I don’t doubt you would agree with this common sense position and I have no doubt that FF takes care of himself (always!). What puzzles me is why people call him out every day, with some pretty visceral invective, before he even says anything. Just what is it about this character that bothers you so much?

#324 James2 on 01.15.16 at 4:02 pm

Who is the greasy looking Mexican on the one dollar bill (I mean one Peso note)?

#325 Retired Boomer WI on 01.15.16 at 4:07 pm

Well, at least the U.S. markets didn’t close down the 500 its they were off earlier in the day.

As OIL goes, so goes the economy.

It could only be worse in Alberta!!

#326 jess on 01.15.16 at 4:18 pm

trade misinvoicing /transshipping

“Attorneys at the global law firm of White & Case have recently published one worth reading…criminal charges against alleged violators, both corporate
entities and their top executives.

The authors are noting the increase of U.S. enforcement in the customs area, and most of the cases cited involve trade misinvoicing/fraud,
e.g. United States v. Bank of China,the United States sued mushroom importers who had allegedly attempted to avoid customs duties by transshipping Chilean mushrooms through Canada.”

http://www.gfintegrity.org/wp-content/uploads/2015/07/Criminalization-of-US-Customs-Violations.pdf

#327 Freedom First on 01.15.16 at 4:20 pm

#285 Tri-Guy

Yours is the right move. However, understand her thinking. If the $$$$$$$ are in a house, if and when she decides to give you the boot, she keeps easy access to the money/house. This is of #1 importance to all Beth’s.

#328 Fine Wild Roasted Gonads on 01.15.16 at 4:36 pm

#312 James2 on 01.15.16 at 2:56 pm

#302 Bond Junkie on 01.15.16 at 1:29 pm

SMokie, JESUS… it’s 10$ p/contract pip right?? Are you up 14.8 mil or am I running my math incorrectly? Remember, I’m a bond guy after all. Cut coming next week, 1000%, he might even go 50, why not!! Close her down and never look back after that. congratulations
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
The master of google matriculation?
Did you forget a few weeks ago he couldn’t even calculate gallons vs litres from his recent trip to his gambling junket!

The smoker dude just made $15 mil… while you were playing with your pocket calculator.. yeah he’s half crazy! but yoowzers!!!

#329 cramar on 01.15.16 at 4:43 pm

#285 Tri-Guy on 01.15.16 at 12:30 pm

Let’s see, other than the status quo there are two choices on the table.

Trade up to a higher mortgage property as per wife, and stay burdened with debt for life. Or sell, rent, and go from $10k in liquid assets to over $400k and be debt free.

Tough choice for the long term isn’t it? Sort of like staying in Syria or a plane ticket to Canada.

#330 For those about to flop... on 01.15.16 at 4:48 pm

#323 Vundo on 01.15.16 at 4:00 pm
#143 flop: a man who wants to live well learns how to care for himself. A man who can’t figure out his own cooking and laundry is not a free man. I don’t doubt you would agree with this common sense position and I have no doubt that FF takes care of himself (always!). What puzzles me is why people call him out every day, with some pretty visceral invective, before he even says anything. Just what is it about this character that bothers you so much?

////////////////////////////
Freedom First is good for a laugh and there has always been a bit of banter between himself and the Rat Pack which includes OLC ,Common Sense and Broke Dick amongst others.
Freedom First gives as good ad he gets and on occasions comes up with good points ,but he likes to push the envelope on women and I personally stick up on behalf of them because I don’t like how he generalizes their behaviour.
I married a good woman, who does not see me as her wallet but as a life partner and so I like to stick up for her as well.
The banter will continue and he makes me laugh.
I don’t want to change his point of view with the exception of letting him know that of the 3.8 Billion ( approx) women there are a few lemons but they are not all gold diggers and in it for the money.
A lot of women nowadays make more money than their partner so there goes that theory!
When he calls me names ,I just laugh I don’t take the comments section here too seriously and I wish everyone well.
It’s a little bit of learning and a lot of entertainment as far as I’m concerned.

M41BC

#331 Cal Gary on 01.15.16 at 4:57 pm

Re: #315

I’ve not seen a better example of baltent stupidity than what you demonstrated. Your brain must be the size of an amoeba to believe the US will ever be 5% of current day or their population 65MM. Analyse your words and there is no way to respond to you. There are too many things wrong with your rebuttal. Do yourself a favour and think first before responding. I fear you are a product of our declining educational system.

#332 bill on 01.15.16 at 5:14 pm

#288 Marcus on 01.15.16 at 12:34 pm

http://www.seaspancorp.com/fleet-summary/fleet-map/
http://www.maersk.com/en/hardware/fleet/vesselfinder#map-anchor
and for this one I would like you to zoom in on the English channel
http://www.marinetraffic.com/en/ais/home/centerx:-3/centery:50/zoom:8

#333 bill on 01.15.16 at 5:16 pm

here is a map of active vessels around Hong Kong and Taiwan
http://www.marinetraffic.com/en/ais/home/centerx:117/centery:24/zoom:7

#334 bill on 01.15.16 at 5:18 pm

#316 Rational Optimist on 01.15.16 at 2:59 pm
and it isnt plausible as a casual glance at the marine traffic shows…

#335 bill on 01.15.16 at 5:20 pm

Gibraltar looks a bit busy too….
http://www.marinetraffic.com/en/ais/home/centerx:-7/centery:37/zoom:7

#336 Julie K. on 01.15.16 at 5:32 pm

Hearing GIC sales are on fire.

From who? — Garth

#337 The American on 01.15.16 at 5:33 pm

At #315: My GAWD, you are dumb, bless your heart. I need to point out a few things.
1) The lottery line is as long as it is because IT IS FUN and it was the largest jackpot in U.S. history. Hell, even I played the damn thing for the pure novelty of it.
2) At 44.5 MM American currently on SNAP, the article fails to point out this includes children, student in college, single mother’s with children, elderly, disabled, and so on. This represents 12% of the U.S. population (including children and students, mind you). That’s not a crazy sum. Of course, it would be to a Canadian, being your country is smaller than California. Additionally, Canada does not even provide its citizens this type of assistance whatsoever. So, who knows what percentage of your population would partake if they were ever given the opportunity.
3) Americans are not hiding bread lines. In fact, we’re significantly more transparent about poverty rates than that of what StatsCan publishes. Bread lines do not exist, you idiot. Therefore there are no bread lines to mask. They do not exist, because there is greater control, fraud prevention mechanisms, reconciliation, and ease of provision when using an electronic program such as EBT (SNAP). Also, it makes the program more affordable overall. If you noticed, the numbers are still published. No hiding there. Reading comprehension much? Obviously not.
4) The link you provided does not indicate the U.S. at 5% of its GDP today, nor does it show the U.S. at a population of only 65 million. Again, reading compression much? I suppose at the risk of arguing with an idiot, I will point out this fact: That chart (from a non-credible source) shows a decline of U.S. GDP by 5% and a decline of U.S. population by 65 million by 2025. If this is the case, they better hurry up, because the U.S. has grown in both measurable ways since this was published back in 2014.

The rest you just made up and is only your wishful thinking, none of it which will ever come true. Good luck, lil’ buddy.

#338 maxx on 01.15.16 at 5:35 pm

#29 Why Why Jay on 01.14.16 at 5:17 pm

“…….Kraft Dinner (mac and cheese for you Americans.. in Canada we’re so poor we call it dinner).”

LOL!! Thanks WWJ, great guffaw!

#339 Nemesis on 01.15.16 at 5:40 pm

#It’sBetterInBC… #No,Really!,Or… #SmokingManHeadExplodingAdvisory…

[CBC] – Transgender studies chair at UVic will be world’s first

http://www.cbc.ca/news/canada/british-columbia/transgender-studies-uvic-1.3405988

#340 Leo Trollstoy on 01.15.16 at 5:42 pm

sm is my god

#341 Nemesis on 01.15.16 at 5:55 pm

#YouCan’tMakeThisStuffUp… #FridayAfternoonMischief…

[CBC] – Bank robber in drag has Surrey RCMP asking for help: Dr. Aaron Devor Consulted

http://www.cbc.ca/news/canada/british-columbia/drag-wearing-bank-robber-surrey-1.3372462

[NoteToGT: I may have taken some liberties with the leader…]

#342 Shirley Valentine on 01.15.16 at 6:12 pm

#319 Smoking Man on 01.15.16 at 3:02 pm

#302 Bond Junkie on 01.15.16 at 1:29 pm
SMokie, JESUS… it’s 10$ p/contract pip right?? Are you up 14.8 mil or am I running my math incorrectly? Remember, I’m a bond guy after all. Cut coming next week, 1000%, he might even go 50, why not!! Close her down and never look back after that. congratulations
……..

That was this morning, add another big one for the afternoon
****
SMOKEY MAN!!! you put schooled mortals to shame you studly beast of an alien… Seneca baby.. fire up that jacuzzi.. I’m on my way.

#343 Niko on 01.15.16 at 6:59 pm

This Beth girls sounds exactly like my wife! Except I pay $2500/ month on a detached house rental. Did the math…it’s a lot cheaper a month than buying the same thing in gta. Letting others take the risk on speculation.

#344 Philburt on 01.15.16 at 7:22 pm

Hahaha
Cash is king. Been saying for 6 months.
Commodities smashed
Preferreds have been whacked.
Finacials broke support as Ive predicted.
Im hearing on the news “investors site tight and stick to you long term plan” daaaa there is nothing wrong with higher cash levels in uncertain times. If you can figure that out.
Its hand holding time. Firstly if anyone knows anything commodities are hugely cyclical. You needed to get out 2011. They can stay in a low trading range for years along with the loonie peso.
You just have to figure out how your going to service the debt you incurred on the boom cycle.
Thanks to house pumping, bubble TV and 5000 yr lows on interest rates.

You must be rich. — Garth

#345 Philburt on 01.15.16 at 9:17 pm

HAHAHA Garth always funny. Whats rich these days?!
Actually 2 pieces of RE , Vehicles, heavy duty equipment paid a couple mil mostly cash or good DIV payers, $500k contract again 2016.
No debt. So not like Smoky man rich but better then your average Canuckle head. As I have warned to good folks nobody listens. JUST like I warned fam in the US 6months before the turtle down there. Sadly 3 fam members lost everything. You could smell it coming. Maybe we are USA 2.0? We will see if the foreigners can support our RE.
Human beings are a herd species. Avoid the herd at all costs.
Wife works da big bank. A few rich but most up to der gils in debt.
Its actually sad but I quit talking to people about playing it safe. They are too interested in getting marble and a new flash ride on their card.

#346 MF on 01.15.16 at 9:23 pm

#337 The American on 01.15.16 at 5:33 pm

Love your posts. Setting em straight one by one.

MF

#347 MF on 01.15.16 at 9:29 pm

#336 Julie K. on 01.15.16 at 5:32 pm

Yeah maybe the ones issued in 1981

MF

#348 Tim Darron on 01.16.16 at 6:46 pm

Looks like only way to do Canada government infracture programs will be QE.
Problem is that this type of QE will probaably cause hyperinflation.