Nutso nation

CAT modified

The beater house below was listed this week for $2.3 million in Vancouver – in a nice hood, of course, but seriously…

Here’s us how realtor Andrea Kavanagh is flogging it:

Prime Point Grey location. This property is set mid block with mountains view. Quiet & private, 33×122′ property, cherry blossom tree lined street, 1/2 storey home with some improvements & a self contained basement suite. Excellent location within walking distance to Lord Byng Secondary, Jules Quesnel, Queen Elizabeth Elementary, West Point Grey Academy & 10th Avenue shops. Pacific Spirit Park & UBC also close by.

The house has 800 feet on the main level and 500 upstairs. No parking. Built in 1930, frame construction. The mold is free. And the basement suite is “unauthorized.” But it does have some features: “Clothes Washer/Dryer/Fridge/Stove/DW.” So, obviously it’s a tear-down, which begs the question of why any rich person would spend more than two million bucks to get a lot that’s a mere 33 feet across? How are you supposed to build a look-at-me mansion on that?

NUTS modified

“I’m a realtor in Vancouver on maternity leave,” says Nancy. “I don’t want to speak ill of my chosen industry but this kind of thing is just funny when you look at the state of the property and the price tag attached and then think, where are all of the young families going to live? I’m sure it will sell in a few days for more than the asking price.”

So gander back at the map posted here yesterday. The old $1 million dividing line between West (nice) and East (the poor people) has recently become a $2 million demarcation. And there’s no more poignant example in Canada of what house horniness will do to an entire region than this.

The big story is not stupidity in Point Grey or the Westside in general, but the ascent of prices well past the seven-figure mark in all parts of YVR. Supremely ugly, mass-produced, four-decade-old ‘Vancouver Specials’ routinely fetch over a million – which is why BC residents have (on average) a negative savings rate, epic debt levels and are forced to suffer basements full of pasty, rent-paying strangers.

We shouldn’t be surprised more BCers are now tuning to payday loans, according to a new study by Vancity (which is part of the problem). Those lining up to get advances with usurious rates are said to be more highly educated, employed and using this emergency cash to pay for food and utility bills – life’s essentials. The increase in the use of loan sharks is up 58%, and half of those folks say they need the cash for “essentials.” Of course, no readers of this pathetic blog have been spotted.

This is what happens when real estate turns from desire, to cult, to dependency and disease. The advice stands. You are a fool to buy in. A genius to sell out.

By the way, the shack above is open for inspection Tuesday at 10 am. Don’t forget your chequebook.

$ $ $

Well, this was inevitable.

Two months ago T2 gave a mandate letter to Poor Bill Morneau, the finance guy, asking him to make this a priority: “ensuring that Canadian-Controlled Private Corporation (CCPC) status is not used to reduce personal income tax obligations for high-income earners.” This means when the budget arrives (I’m hearing March 22) you can expect an attack on small businesses aimed at trying to turn entrepreneurs into employees. It’s likely that things like income-splitting with family members will be targeted and the tax rate raised on investment capital left within a corp. This will be the second assault on higher income-earners who operate through corporations, the first being the creation of a special soak-the-rich tax bracket which itself has prompted a new love affair with accountants and tax avoidance guides.

Anyway, it’s open season now on doctors. Of the meagre ranks of 260,000 high-income earners in Canada (over $220,000) roughly a third are medical people, and a big whack of them have professional corporations. Many also have employees, significant expenses and no pensions. And lots are mobile – now eying a less hostile tax environment south of the border.

The Canadian Medical Association is pissed, as you might imagine. Through it, the docs are lobbying Morneau not to be a knob and treat them the same as other, more worthless, wealthy people like financial advisors.

“As small business owners, physicians have responsibilities such as pay and benefits for employees, as well as our own pension and health benefits,” says the CMA to its members this week. “Unlike most small business owners, however, we do not have the ability to pass on increased costs of business such as changes to the tax framework governing our practices. It would be critical therefore, that any changes considered by the federal government also contemplate the implications on those who rely on these instruments to operate their businesses and plan their careers and retirements.”

As we already know, the T2 crew’s extra taxes on the successful will not cover the lost revenue on an $8-per-week tax cut for five million other people. This will cost everyone an extra $1.4 billion in deficit financing (today’s deficits are tomorrow’s taxes, after all). Likewise, hoovering a few thousand medical people at a time when new residents in many communities (like mine) have zero access to a family physician seems, ah, dumb. It costs taxpayers over $300,000 to educate a single MD.

What’s the goal? Keeping docs, or class warfare? Rhetorical question. They’ve already chosen.

289 comments ↓

#1 NTH on 01.29.16 at 5:15 pm

I wonder if ‘like’ and ‘dislike’ tabs on comments would cut down on grumpy back & forth bickering? Would save Mr. Turner a lot of time & trouble…

Just a thought.

NTH

#2 Josef on 01.29.16 at 5:16 pm

First!!! Josef is first today!!! Nah nah nah nah nah nah!!!

#3 Ronh on 01.29.16 at 5:16 pm

Interesting chart in this article. Same house too.

http://www.zerohedge.com/news/2016-01-29/meanwhile-canada-real-estate-bargain-emerges

To the moon Alice!

#4 mitzerboy aka queencity kid on 01.29.16 at 5:17 pm

who in their rite mind wood pay that much $$$ fir that shack

#5 davikk on 01.29.16 at 5:20 pm

Crushed Currency, Oil, Domestic Demand Broadside Small Businesses in Canada, Worst since March 2009

http://investmentwatchblog.com/crushed-currency-oil-domestic-demand-broadside-small-businesses-in-canada-worst-since-march-2009/

#6 Mr. White on 01.29.16 at 5:20 pm

I wonder how many Canadians gave a second thought about what the Liberals do when in power. As with his father, Trudeau Lite was elected based on his appearance and something for nothing ideas.

Now we get to suffer through who knows how long of Liberals rifling through our pockets to shake us down for chump change to pay to their pals in Eastern Canada. Forget Alberta industry, support the incompetence of Bombardier.

#7 Tom from Mississauga on 01.29.16 at 5:21 pm

The equity markets are busting out!!!

https://www.youtube.com/watch?v=Jo5a9joTZzY

#8 Smartalox on 01.29.16 at 5:22 pm

What about other ‘personal corporations’ like Real Estate Agents? There are a lot of PREC’s out there that also fall into this category. They call themselves ‘professionals’, but would you lump them in with doctors and dentists?

With remuneration set by the market, instead of (as in the case of doctors) by government mandate, why shouldn’t governments do something to Crack down on tax avoidance?

Not for me though. I’m avoiding taxation by this government by increasing my RRSP contributions, and getting my income taxes reduced at source, to the tune of $6000 for myself, and $7500 for my spouse.

At least Alberta has now qualified for federal transfer payments.

#9 Don on 01.29.16 at 5:25 pm

#224 TurnerNation on 01.29.16 at 2:47 pm

Yessir. Swearing at full volume too. Not the usual scared under-the-breath office version of swearing.

MF
******************
You need to get a doctor’s note for Tourette’s. lol (problem solved).

“Tourette’s was once considered a rare and bizarre syndrome, most often associated with the exclamation of obscene words or socially inappropriate and derogatory remarks (coprolalia)…” Wikipedia

#10 Rexx Rock on 01.29.16 at 5:28 pm

If I was a doctor I’d be long gone to the USA.Wait and see they’ll have a big exit tax for those fleeing doctors soon.This just the beginning for the tax man,they want Canadians to go cashless because of the huge underground economy that pays no tax.Its coming and it will be gestapo like.

#11 For those about to flop... on 01.29.16 at 5:28 pm

#8 Smartalox on 01.29.16 at 5:22 pm
What about other ‘personal corporations’ like Real Estate Agents? There are a lot of PREC’s out there that also fall into this category. They call themselves ‘professionals’, but would you lump them in with doctors and dentists?

//////////////////////////////
Yeah ,they’re a bunch of PREC’s alright !

M41BC

#12 Randy on 01.29.16 at 5:29 pm

Relax in 6 months these $2.5 Million crack houses will only cost $1 Million……….USD

#13 Doug t on 01.29.16 at 5:29 pm

Pretty sad state of affairs – people drink the koolaid of house porn from HGTV/Realtors/ Banks and dig themselves into unthinkable debt – and for what? What happened to common sense? If it looks like shit and smells like shit then it must be shit – the correction is gonna be like a ballpene hammer to the forehead

#14 Brett on 01.29.16 at 5:30 pm

Nice fixer-upper!

#15 Don on 01.29.16 at 5:31 pm

#243 Smoking Man on 01.29.16 at 4:04 pm

…Why do so many people get cured of illness by smoking weed. It’s not the weed, it’s the happy thoughts resulting from the weed that fixes things….
$$$$$$$$$$$$$$$$$$$$

I guess that’s why it is still illegal – that an the pharma lobbying.

The other day I herd another argument against legalizing. ‘More pot heads will be on the road, increased health care costs as smoking weed is the same a cigarettes, more accessible to kids.’

They are already on the road, along with those who drink alcohol, and we should then ban fast foods are the health affects are showing, and right now kids can get drugs easier then adults can (school yard, friends of friends etc).

#16 Smartalox on 01.29.16 at 5:35 pm

@ Mr. White:

Pierre Trudeau was probably elected for many reasons, appearance likely was not one of them.

Careful what you say about Bombardier, too: while the feds have not kicked in any money as of yet, the Quebec provincial government’s donation of $1B currently keeping the employees paid is responsible for the federal tax dollars that will form the basis of Alberta’s forthcoming transfer payments.

And while we’re at it, I’ve had enough of Albertans whining about their transfer payments to the ‘East’. Where do you think all the capital investment that supports those speculative oil and gas ‘plays’ comes from, to pay for the rigs and pigs before the oil starts gushing?

From Easterners (or their pension funds) investing their savings, that’s where. This might be a hard concept to grasp, for a culture not known for its savings, but the government of Ontario owned a huge stake in Syncrude for years, and pension funds owned Trans-Canada pipelines, as well.

#17 S.Bby on 01.29.16 at 5:41 pm

What about all those Realtors who have themselves set up as *PREC (Personal Real Estate Corporation). Do they get tax dinged too?

#18 Retired Boomer WI on 01.29.16 at 5:41 pm

That’s NOT a house, its a moldy shack. Worth the price of the lot minus the cost of demolition.

Here, it would be a negative number. 33 ft wide lot is an unbuildable postage stamp. (sorry)

WUL-

Sorry to hear your son got punted from his job. Never a good thing, BUT maybe a learning moment in there.

Now that oil -maybe- has turned the corner, things could start to improve?? Maybe, huh…pleez!!

Glad the week is over! Fun week for me, but tiring one.

#19 Alberta Blue Blood on 01.29.16 at 5:43 pm

Why don’t we ask Spain, Italy, Greece, and France how over-taxing the rich worked for them?

Welcome to the cash based society. AKA The Under the Table Economy. AKA The Brown Envelope Economy. AKA The Black Economy (Can we still say that?)

Many places in Europe still only accept cash, so the governments are making cash transactions over €1000 illegal. Like that’s going to stop them – you should see how well they follow the no-smoking laws.

Every home in Spain has a safe and bars on the windows. I couldn’t figure out why at first, because overall the crime rate is low, but then I got it – everyone has a load of cash at home and everyone knows everyone has a load of cash at home.

Maybe the only saving grace the T2 scheme will have is that it’s illegal to charge extra for a credit or debit card transactions in Canada, like they can in Europe. (Sneaky way to say pay in cash.)

We are so screwed.

#20 S.Bby on 01.29.16 at 5:44 pm

This goes along the lines of the payday loan use increases:

http://www.news1130.com/2016/01/29/invisible-homelessness-lower-mainland/

Average working stiffs falling further behind.

#21 powder_hound86 on 01.29.16 at 5:50 pm

When you have such glaring inequality as present society, class ware-fare is the only outcome.

Unfortunately the causes are not being identified correctly and instead middle class is turning against middle high class rather than the real sources of inequality.

#22 sanddancer on 01.29.16 at 5:57 pm

http://www.bloomberg.com/news/articles/2016-01-29/canada-s-one-legged-stool-economy

And yet prices keep climbing ????

#23 Brian Ripley on 01.29.16 at 5:59 pm

I have updated my Demographia charts (related to Canadian cities) with their latest 2015 data:
http://www.chpc.biz/demographia.html

The big 6 Canadian cities’ Price to Earnings ratios came in at:

Vancouver 10.8
Toronto 6.7
Montreal 4.9
Calgary 4.2
Edmonton 4.0
Ottawa 3.7

Last year Vancouver was 2nd most unaffordable city after Hong Kong, and now Sydney AU has taken that spot with Vancouver taking 3rd.

Victoria BC still remains more unaffordable than Toronto and Kelowna.

If you want to live in the most affordable cities in Canada, you are looking at Moncton or Saint John NB (similar income to Vancouver and Victoria, but the median housing cost is under $200k

#24 Only-inflation-to-reduce-debt-burden on 01.29.16 at 6:00 pm

Canadians are holding onto $75 billion worth of cash… Negative interest rates will be flushing those dollars loose…. Even Japan has gone negative…. Normalizing rates, I don’t think so…. Welcome to the new normal…

Negative rates do not exist for depositors – anywhere. — Garth

#25 Old Man Too on 01.29.16 at 6:02 pm

#16 Smartalox
So we get to ask the mayor of Montreal to repay some of their transfer payments? Where’s he gonna get the money? You’re saying Quebec is bailing out Bombardier so their employees can support Alberta? If only it was winter so you could freeze in the dark.

#26 Sheep on 01.29.16 at 6:04 pm

This blog is doing a fine job of confusing most of its readers. The house in question is worth nothing. The land is. It’s going to be the site of a brand new house and home to a family from Asia.

Vancouver is the destination of choice for the 10’s of millions of Asians who have made their money. Buying a $3 million home is easy when your worth $10 million. The safety, clean air, grandparent immigration, and education system is a bonus for These future Canadains.

#27 45north on 01.29.16 at 6:06 pm

Julia: ( from yesterday ) : I was wondering how that works as well but CMHC doesn’t insure mortgages for more than $1 million.

In June 2012, CMHC said it would not insure mortgages where the sales price was greater than $1 million:

http://www.cbc.ca/news/business/ottawa-caps-cmhc-mortgages-at-25-years-1.1171007

from the link to the court judgement: The Millers signed a promissory note and executed a mortgage on their home in favour of the bank in 2007.

so CMHC could have insured the mortgage

#28 Cat in the Hat on 01.29.16 at 6:06 pm

But that is not all. Oh, no. That is not all.

http://www.theglobeandmail.com/opinion/time-for-another-look-at-a-guaranteed-annual-income/article28439737/

An innovative idea for social and tax policy reform – a guaranteed annual income (GAI) – has once again emerged as a topic for public debate and policy action.

#29 Sheep on 01.29.16 at 6:07 pm

Both my nephews are in states doing their MD residencies. Going to stay there because of our low loonie.

Blame lies on Gov and BOC.

#30 prairiegopher on 01.29.16 at 6:16 pm

Hi Garth, has the new 1.5% reduction for middle class earners kicked in? I got my first company pension cheque and I did not see an increase. I am over the 45k threshold or does it not apply to pensions?

#31 Michael on 01.29.16 at 6:16 pm

The small business tax rate is low so that an entrepreneur can accumulate capital and grow the business. When the owner withdraws the money as dividends he pays a higher rate on it to make up for the preferential rate it was taxed at inside the corporation. There is no tax advantage ultimately, it is only a deferment to help grow.

I’m not happy that Trudeau doesn’t understand how beneficial the low rate is in creating capital and ultimately jobs. I am not happy that he doesn’t appreciate the contribution I make to government finances and the economy.

My business exports and therefore my business revenue supports the Loonie and our current account. I will be missed.

I am applying for EB-5 Visa status and moving operations to the USA.

Please remember my story when/if in the next election there are l fewer wealthy people to tax and fewer successful small and medium sized businesses.

We are better off letting private entrepreneurs create capital than handing that cash over to the government.

#32 Mean Gene on 01.29.16 at 6:17 pm

The house address doesn’t even have the number 8 in it, the horror.

#33 SunShowers on 01.29.16 at 6:17 pm

Here’s a neat idea:

1) Don’t increase marginal tax rates (maybe they should even be lowered across the board). People who earn wages for a living are punished enough.

2) Re-raise the recently lowered TFSA limit and index it to inflation. Or maybe even allow a flat contribution limit ($20,000?) per year per person to split as they choose between TFSAs and RRSPs, indexing that to inflation as well.

3) Raise the capital gains tax rate. Obviously by an amount that won’t be immediately offset by decreased marginal rates.

This allows the vast majority of Canadian wage slaves to take home more money, and invest more of it in tax free/deferred vehicles.

#34 Mark on 01.29.16 at 6:19 pm

“Negative rates do not exist for depositors – anywhere. ”

Not yet of course. Risk premia is currently making up the spread between the central bank’s policy target and the rate (ie: 0%) that the banks actually borrow from their customers (“depositors”) at.

The problem with negative rates is that they’re self-reinforcing. Few will rationally lend at less than zero interest. So the economy slows on account of slowing loan volume. Hence, the central bank policy response is to drive rates even further negative. And so on and so forth. The only extrication from negative rates is probably the outperformance of extremely and deeply cyclical sectors of the economy. Or eventual capacity depletion in sectors that require long-term investment (which obviously isn’t funded in a negative rate environment).

#35 Darryl on 01.29.16 at 6:20 pm

Cat spells better than some on this blog.

#36 Deb on 01.29.16 at 6:23 pm

It is primarily the length of time that “emergency” interest rates have been in place that has produced the absolute insanity in residential real estate prices, particularly in Vancouver. The asset is at its peak, and anyone thinking about buying at this point is clearly not thinking.

#37 Frank on 01.29.16 at 6:33 pm

The class warfare debate is stupid and you can slat it either way. Taxes are sliding scales not absolutes yet everyone is convinced their point on the scale is best.

Anyways I have a query about debt. I need a new car as mine is ready to die. I have the money to buy one in cash ($30K for what I want) or I could finance it for a stupid low rate. Should I plow that money into topping off rrsps and TFSAs and the rest into my portfolio and finance it? I have no other debt, is that smart debt to take advantage of low rates? Unlike housing cars aren’t really overinflated and rent isn’t really an option with them.

#38 TurnerNation on 01.29.16 at 6:43 pm

Of course. Communism does not permit the rich. All must be equal (ly) impoverished. Except party faithful (public sector) and party elites.

No doctors for rural. All herded into cities. Agenda 21 or newer iteration thereof.

#39 wallflower on 01.29.16 at 6:43 pm

What happened to Jen?

#40 For those about to flop... on 01.29.16 at 6:44 pm

#34 Mark on 01.29.16 at 6:19 pm
“Negative rates do not exist for depositors – anywhere. ”
Garth
Not yet of course. Risk premia is currently making up the spread between the central bank’s policy target and the rate (ie: 0%) that the banks actually borrow from their customers (“depositors”) at.

//////////////////////////
Geez man ,can’t you write one damn post where your not disagreeing with someone.
This blog has something for everyone …the rookies….the bookies….the lurkers and the jerkers…
Why you wanna be in the last group all the time?
Can’t you just write a post without getting into it with anyone?
I bet in real life your more like Fran Dresher from ” The Nanny” with a male version of her annoying voice.

M41BC

#41 Shawn on 01.29.16 at 6:48 pm

Negative Rates

Negative rates do not exist for depositors – anywhere. — Garth

******************************
Probably no retail negative rates for depositors in banks.

Institutional savers in Europe had to pay to place money in the safety of short-term government bonds in some cases.

What is certain is that there will never ever be negative rates for retail borrowers.

The only borrowers who can possibly charge to store money are AAA rated governments and a few AAA corporations.

#42 Popeye the Sailor Man on 01.29.16 at 6:49 pm

2.4 M in CDN is only 1.7M in USD

Obama would have to sell his house and take a 1.2M mortgage out to buy that house in Vancouver!

http://www.zillow.com/homes/5046-South-Greenwood-Ave,-Chicago,-IL_rb/

PS; he paid 1.65US in 2005 ouch!

#43 Leo Trollstoy on 01.29.16 at 6:50 pm

He is beyond repair….broken record who spouts the same ten lies over and over.

aaaand that’s why he’s been banned from numerous forums such as RFD

#44 Gary in Kelowna on 01.29.16 at 6:55 pm

Our son is just finishing his Residency as a Family Doctor in BC. What incentive is there for him to stay in Canada and practice with T2 and the Federal Govt declaring war on his income. This has taken 10 years of very expensive schooling and grinding hard work. Now the Govt is after his income. Canada – what a country. Don’t aspire to be succcessfull – the Socialist Hordes will come and take it from you!

#45 Sheane Wallace on 01.29.16 at 6:56 pm

Run, I repeat: Run!

#46 not 1st on 01.29.16 at 6:57 pm

Garth, I had someone pitch an investment called Insured Retirement Plan (IRP). Thoughts?

#47 Snowboid on 01.29.16 at 6:57 pm

That listing is a total joke, for under the $ 2.4 million (1.7 million USD) you can pick any one of these three homes in upscale Scottsdale AZ. I know which ones I would choose if I had that kind of money to spend on real estate!

Here’s number one:

http://www.zillow.com/homedetails/10471-E-White-Feather-Ln-Scottsdale-AZ-85262/8038208_zpid/

Or if you prefer a golf course home

http://www.zillow.com/homedetails/10040-E-Happy-Valley-Rd-UNIT-439-Scottsdale-AZ-85255/8040825_zpid/

Golf course home video https://www.youtube.com/watch?v=2TEHTdWY2ig

Or maybe you prefer a Tuscan style:

http://www.zillow.com/homedetails/38212-N-Charles-Blair-Macdonald-Rd-Scottsdale-AZ-85262/89456102_zpid/

#48 Shawn on 01.29.16 at 6:58 pm

Debt and Money Creation (and Get Over It)

All money is debt (get over it) because money represents an a claim check on goods and services.

Large mortgages are an IOU of course and the banks do create deposits to match a loan. (Which is not nefarious and is a very good thing, get over it)

When a house is financed with a large mortgage a deposit is created for the borrower and it then goes to the house seller.

More loans means more deposits and deposits are money and money makes the economy go. That is debt and credit make the economy go. Credit is the true grease of the economy. (Get over it) No credit, no economy.

Lower house prices will eventually mean lower loans (as old loans are paid off and new ones are smaller). Hence lower house prices will likely slow the economy.

In any case it will be entertaining as always.

Look after you self, no one else will. (Get over that too).

#49 45north on 01.29.16 at 6:58 pm

What’s the goal? Keeping docs, or class warfare? Rhetorical question. They’ve already chosen.

the Liberal caucus is not going to be too comfortable at the prospect of doctors leaving. Or any very employable group.

#50 Scumop on 01.29.16 at 7:00 pm

That Van house – what a dump of a deal for $2.4M.
I want to know who buys it because I have some genuine artificial gold coins (chocolate inside) that I will sell them for only 89% of the price of gold by weight. Wotta deal! If the have any money left.

I got layed off today, so I guess I won’t be getting that middle class tax cut. Not a great thing in a down economy and an industry with a helping of agism, and in a city known for a lack of tech companies. Not mobile because wife also works and we need that cash.

Have a mortgage (small), but importantly, I have savings as etfs + tfsa (more etfs) + rrsp, so can ride out the quest for work for quite some time. This is something a lot of people with giant mortgages don’t have. Unlike them, I am not backed into a corner fearing for my economic life.

Off to see which Walmarts in the area are hiring greeters…

#51 Mark on 01.29.16 at 7:00 pm

” Raise the capital gains tax rate. “

This would be awful. Taxing illusory “gains” on capital largely on account of inflation? If that happened, may as well pack up whatever is left of the Canadian economy and move away. Even current capital gains rates are punitive enough towards capital formation.

#52 Tax Equivalent on 01.29.16 at 7:00 pm

re: #31 – Michael
I wanted to highlight the same thing as the other poster.

Just like RRSP, in a small business corporation, you’re not paying less tax. You get to DEFER tax.

For example:
– an incorporated doctors earns $1000 after expenses, then the small business tax rate = 13.5% and they are left with $865.
– if they then take this $865 out as dividends, they have to pay tax on that
– and the tax code is designed to be the same as if they just received that $1000 personally.

So really, what’s the issue? It’s just like the RRSP – save your money in the corporation and withdraw the money in low income (e.g. retirement) years.

The only area of concern is paying a dividend, e.g. to family members who have no other income. It’s a nice way to income split. But if you target that, I’m sure there are plenty of ways to get the money out. Hire them as an employee and pay them a salary instead.

It’s not like Doctors make a huge ton. Say $300K gross of which they probably pay half in expenses. So they make $150K/year, no small amount… but to have T2 call them tax dodgers and crooks and spending your energy and priorities to go after them, seems rather dumb.

#53 Hamilton Doc on 01.29.16 at 7:06 pm

Doctors are the perfect target for the government. Most doctors currently in practice won’t uproot their families and leave. They will probably cut out the less profitable parts of their practices and work a bit less since it will just get taxed more anyway, but that will be minor. It’s the new grads that will simply set up elsewhere that will be the main effect. You won’t see the effect of that for 5-10 years by which point any government knows that they’ll have accumulated enough scandals to be turfed anyway. So, from a poltical standpoint it is perfect! We saw this in the 1990s and it wasn’t until the early 2000s that it caught on that there was a problem.

#54 For those about to flop... on 01.29.16 at 7:10 pm

I deployed half of my dry powder in my TFSA yesterday.
I dropped 5k on Canadian equity across all caps.
I was originally gonna do the U.S and Europe but it made more sense to use the dip ,even though I snoozed a couple of days too long ( damn medical appointments!)
In the last 13 months I have put 41.5k in my TFSA , so I am looking to the long term now ,away from housing.
I had an injury hit year and only earned around 30k and yet my father in law sat on his backside and paper gained 300k on his East Van house.
This is discouraging but I will not be one of the fools getting caught up in the mania.
I have not noticed any Ham in my hood ,most of it is west of Granville,the people buying in my hood for 1.5 million are mainly move up buyers from other hoods.
I missed communicating with you guys last week but ” Mark the Migraine” was too much for me.

M41BC

#55 Freedom First on 01.29.16 at 7:12 pm

#1 NTH

FU

#56 Mark on 01.29.16 at 7:13 pm

“Large mortgages are an IOU of course and the banks do create deposits to match a loan.”

Banks do not ‘create deposits’ to match the loan. They have to obtain the ‘deposits’ first, by competing in the marketplace for the funds, before they can make investments/loans. This is *the* constraint on portfolio growth and leverage at the commercial banks — there is only a finite amount of funding available in the marketplace at rates that the banks judge to be competitive to borrow to invest with.

Lower house prices will eventually mean lower loans (as old loans are paid off and new ones are smaller). Hence lower house prices will likely slow the economy.

Absolutely true, hence, deflation is the outcome of a consumer debt bubble. Which is why central bankers are talking negative interest rates and QE again.

#57 Jimmy on 01.29.16 at 7:16 pm

Location location…
Got the same house over in the west armpit of Canada-Surrey.
Only being offered 800K :(
Might have to invest in granite like mactac.

#58 For those about to flop... on 01.29.16 at 7:16 pm

CNN spouted a stat that thought was interesting this morning.
The much maligned state of New Jersey created more jobs in the last year ,than in the previous 15 years combined.
Good news for the locals ,I guess …that state has had a rough time of it.

M41BC

#59 BG on 01.29.16 at 7:22 pm

I usually love being a renter but today it really pisses me off.

I was supposed to move into a rental condo on Sunday. The move has been planned for a month.
10 days ago the Condo admin starts mentioning they have a rule against moving in or out on Sundays and say he will try to ask around if we can bypass it.

Yesterday he comes back to be by email. All he could provide was a PDF saying “Addendum to moving rules” which states that I should make a deposit and have an admin person watch for damages but that’s it.
And his email he wrote a rule saying “Ideally no move on Sundays”. It was not int he actual PDF and he failed to provide the full set of condo rules.

So I basically replied that’s the move has been planned for long and we’ll move in anyway (It’s a lease transfer by the way, the current tenant says she needs the whole Saturday to move out).
He calls me and we have this argument where I sais my lease starts on Sunday and he won’t prevent me from moving into MY place. To which he replied that some of the co-owners will physically prevent me from doing so if I show up!
And they will bar the garage door to prevent me from getting in with the truck!

Girlfriend cancelled the movers for Sunday cause it sounds like it could lead to an actual confrontation. My fuse is short and if someones physically obstructs me I might start a fight.

I guess they have this “no moving on Sunday” rule so that residents can enjoy a quiet Sunday, yet they are ready to get downstairs at 9AM in the morning to physically prevent me from moving in. How quiet is that?

Anyway, I’m bound by lease to move into that place. Girlfriend and I like it, but we feel like we would be moving into a building full of fascists.
We feel quite unwelcome now.

Considering my options now.
The sooner my movers can postpone in Feb 13th.

-Move in and sue the Condo admin?
-Move in and shut my mouth?
-Move in and be a total jerk?
-Not move in and risk getting sued by my future landlord for the rents?

Or maybe I’m being a jerk in the first place?

Any opinion welcome.

#60 Panhead on 01.29.16 at 7:26 pm

Out here in 604land the rising tide has lifted all boats. Even out in my burb pretty much all SFH are 1 mill plus now. All sell in a week if priced within reason too. Perfectly good houses being torn down. But on the tony west side of Van it shows the most of all. If and when she turns it’s gonna be epic … seen it before but no where near this grand scale …

#61 Joe Schmoe on 01.29.16 at 7:28 pm

Just move.

$2.3M is a lot of pay. Try to find work else where? Even if it comes with a pay cut you might come out ahead.

But I forget people keep thinking this is a growth asset…which was the whole point of this blog if I do remember correctly.

I think the what bothers me, is they are selling the house….not a “Land development opportunity”.

Ick. I wouldn’t let my wife’s cats live there.

#62 westsider on 01.29.16 at 7:32 pm

$2.4 mil is chicken feed. This listing down the street went uptoday:http://www.stephenburke.com/ActiveListings.php/Details/876/3743-west-2nd-avenue-vancouver-bc#viewdetail

#63 Former_Canadian_in_LA on 01.29.16 at 7:32 pm

Hi Garth,

I am an Engineering scientist (PhD, University of Toronto, 2002) who regularly reads your blog. I moved to Florida in 2006 and then to California in 2011. It gives me perspective when I read about real estate in Canada and compare it to ares I know in US. For comparison to this Vancouver home, here is a listing that my real estate lady in Palm Beach (FL) sent me yesterday:

http://www.flexmls.com/link.html?17sopsqkm13g,15,1

Over 7000 Sq.ft on 2.7 acres of land in a prime neighborhood.

Cheers,

#64 Retired Boomer WI on 01.29.16 at 7:32 pm

I have an odd question.

Do they directly TAX EI in Canada?

Do they directly Tax other social welfare benefits in Canada? (welfare, medical provisions, dental, eye)?

Just curious here in the states.
Thanks.

#65 tundra pete on 01.29.16 at 7:33 pm

Have to look at the bright side. That area of Vancouver has always been on the pricier end and the walmart greeters have never bought or lived there. In the last 3 decades only a lawyer or doctor or maybe a realtor could have ever afforded that postal code.

The other bright spot is the payday loans. They are only allowed to charge a maximum of 60% interest. Operating as a loan shark is even more attractive. You can charge 100% interest and the only fees you would pay is to Sid and Guido for collections. No licensing, inspections etc. Likely to become a profitable endeavor.

#66 Holly on 01.29.16 at 7:33 pm

BC Assessment has the property valued at $2,145,500. Unfortunately in Vancouver it’s all about “land value.”

Total Value $2,145,500

Assessed as of July 1st, 2015
Land $2,100,000
Buildings $45,500

Previous Year Value $1,759,800
Land $1,715,000
Buildings $44,800

#67 willworkforpickles on 01.29.16 at 7:36 pm

…Never mind the rats in the basement and all that knob and tube…
…and if you haven’t got 2and a half mill in your pocket to spend , you’re a total failure.

#68 joblo on 01.29.16 at 7:42 pm

Does the cat come with the house?

#69 Panda on 01.29.16 at 7:42 pm

Hellooo… BOJ? Negative interest rates; really nothing?

#70 Daisy Mae on 01.29.16 at 7:47 pm

#6: “Trudeau Lite was elected based on his appearance and something for nothing ideas.”

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

Stupid comment. It was a vote against Harper. The lesser of 3-4 evils — and Trudeau was the ONLY logical choice. As Garth said earlier: “They both lied.” No politician can be trusted.

#71 Lead Paint on 01.29.16 at 7:48 pm

#28 Cat in the Hat

Thanks for the link! With the coming wave of job losses due to AI and self-driving vehicles, GAI is likely the only way to keep society functioning.

http://www.theglobeandmail.com/opinion/time-for-another-look-at-a-guaranteed-annual-income/article28439737/

And as for the war on doctors, they were already upset that the Ont gov capped the amount they can bill, already dealing them a pay cut.

M42ON

#72 crowdedelevatorfartz on 01.29.16 at 7:48 pm

@#59 BG.
Dont bother moving in. The Condo nazi’s are gonna drive you insane if thats any indication of the idiots that run the place.
Go to your local Hell’s Angels chapter. Give them the keys to the place and say the condo owners dont like dirty smelly bikers.
I’d say an eviction notice will be forthcoming asap.

#73 For those about to flop... on 01.29.16 at 7:50 pm

BG…me and you sound similar so I might be a good sound board.
Move in ASAP ,keep control of your emotions.
If in the long term it doesn’t work out ,move out ASAP.
Moving sucks …but living where you are looked down on sucks more.
Good luck brother.

M41BC

#74 Whats the big deal on 01.29.16 at 7:50 pm

Simple.

Increase the output of doctors by medical schools. The requirements/standards to get in have increased yearly, which means every year hundreds of people who would have met the qualifications 5-10 years ago don’t get in, and travel to other countries to get their medical education.

http://www.oxfordseminars.ca/MCAT/mcat_profiles.php

and you can’t claim that doctors that started med school 5-10 years ago and are entering the system just now won’t be as good as the future doctors that are just starting med school. Or may be you can, but that’s a hard one to back up without actual facts.
0.01-0.03 difference in GPA is not that much when it comes to performance, and when comparing very similar individuals, all leaders with extracurricular activities. I bet ya that difference is a couple hundred doctors right there.

Ps: You shouldn’t fully trust doctors, because they are people after all.

Just like you shouldn’t fully trust your financial advisor :0, but that’s a huge difference in gpa.

#75 Thom on 01.29.16 at 7:52 pm

Vancouver is one of the nicest places to live in the world and Point Grey is the nicest middle class neighbourhood in the city so the prices are high. If you don’t want to live in Point Grey you can buy somewhere else in Vancouver and get a nicer house for a lot less and still enjoy everything the city has to offer. Or rent in Point Grey for that matter. Rents haven’t gone up as much as the house prices.

#76 crowdedelevatorfartz on 01.29.16 at 7:52 pm

@#66 Holly
“Unfortunately in Vancouver it’s all about “land value.””
+++++++++++++++++++++++++++++++++++
Nope .
Its all about image. The car you drive. The location of the house you “own”. The vacations you take. etc.etc.etc.
Materialistic, self absorbed, narcissistic navel gazing, $6 Starbucks swilling kardashian wanna bees.

THATS what vancouver is all about.

Cant wait to see how the frenzied masses handle a 8.5 earthquake and no power for their phone chargers…..for weeks……

#77 abolitionist on 01.29.16 at 7:52 pm

Apologies if this has been addressed before.

Garth, with the new online petition rules for the H of C, can you please suggest (or spearhead, what better spokesperson) wording for a petition for national access to real estate price info?

The Feds should be able to regulate the phoney stats and listing practices of CREA.

Citizens should have the unfettered right to information on home sales, including access to historical sales data for which realtors currently hold a monopoly.

#78 Dean on 01.29.16 at 7:54 pm

#1 NTH – Like

#79 huiegart on 01.29.16 at 8:01 pm

“It costs taxpayers over $300,000 to educate a single MD.”

Here’s my solution:

1. Increase tuitions to cover the actual cost of MD education.

2. Offer low-interest loans to cover this tuition increase (or the entire tuition).

3. Forgive a portion of the loan for every year of MD practice in Canada after graduation.

4. Increase the acceptance rates into MD programs; some increase from current levels would not affect the quality of doctors produced.

#80 Dyugle on 01.29.16 at 8:01 pm

An idea for leveling the playing field with regards to taxes and closing down offshoring is to make employees income subject to the GST while offsetting this increase by lowering the tax rate. This would make it tax neutral for the employee. However for a business with a lot of employees this would be a benefit. If you try to offshore your employees jobs then you lose this benefit. Bring the jobs home.

#81 Vancouver on 01.29.16 at 8:03 pm

There is only one Vancouver.
The all mighty market is dealing with it, with her invisible hand. Like for everything else – how absurd was $100+ oil a year ago?

#82 Cici on 01.29.16 at 8:05 pm

So that’s what BC Bud does to people? Makes them craze over lopsided, dilapidated houses on teeny-tiny marshy lots and willing to “pay” $2.5 million for them?

There should be medical recognition of this affliction, and a treatment program should implemented without delay.

If that house isn’t demolished sometime soon it’s going to cave in on the head of whatever poor loser signs his or her life over to purchase it.

#83 raisemyrent on 01.29.16 at 8:05 pm

powder_hound86 on 01.29.16 at 5:50 pm
When you have such glaring inequality as present society, class ware-fare is the only outcome.

Unfortunately the causes are not being identified correctly and instead middle class is turning against middle high class rather than the real sources of inequality.

you think we have inequality? you need to travel more…

#84 Dan Sampson on 01.29.16 at 8:06 pm

What happened to the Alberta NDP party. They did not raise royalty rates.

All governments that think there is no limit to taxation is clueless and are left to center leaning. They actually collect less taxes year after year. They don’t get it.

As for the question from a poster not in Canada. E.I. is taxable and actually there is a clawback of 30% over an income of $49,500 if it did not change. Really double taxation, tax on a tax.

C.P.P. disability is also taxable and income taxes are due on it as well.

The Liberals also cut maximum benefits by up to 12 weeks or about $6,000.

WSIB, Workers Compensation, social assistance, welfare, dental and other paid medical benefits to low income Canadians are all income tax free.

Federal and provincial support income programs like income supplements are 100% income tax free.

#85 For those about to flop... on 01.29.16 at 8:15 pm

Hey Leo Toiletspray ,I’m confused how can they ask so much for that house if Mark the Migraine reckons house prices have been in decline since 2013 in the Couv?

M41BC

#horseshit

#86 Mark on 01.29.16 at 8:19 pm

“Increase the output of doctors by medical schools.”

Exactly. Around here, we are importing 25-year-old doctors from South Africa by the dozen every year. Fully qualified, able to pass the Canadian exams. Generally very nice people as well, eager to serve. Yet very few Canadians can get through the Canadian medical training system until they’re in their early 30s at least, and they’re burdened by hundreds of thousands in debt. The South Africans — medical school is direct entry, like Engineering in Canada, and they seem to do okay.

I don’t really understand why there is such reluctance to ramp up the training programs for doctors so that the public isn’t being held hostage to their demands. I don’t think anyone wants to see a lot of unemployed doctors (like we have underemployed engineers) in Canada, but when a large number of very capable people are excluded from the profession for lack of training seats, its a problem.

Also, if doctors are in such shortage, why aren’t there clear and relatively accessible program to upgrade other health care professionals, such as registered nurses, and even pharmacists, to being full-fledged MD’s? The government needs to step in and put an end to some of the professional rivalries and fiefdoms in the best interests of the public, and even that of the profession itself (which sees a lot of practitioners unable to practice highly professionally when the workloads are excessive on account of shortages).

#87 Cici on 01.29.16 at 8:20 pm

#16 Smartalox

Thanks for saying what I needed to say to Mr. White!

#88 Drill Baby Drill on 01.29.16 at 8:27 pm

T2 really is a piece of work. He has never had to worry about money or work or make payroll or tax plan for that matter and yet he wants to minimise free enterprise.

#89 Leo Trollstoy on 01.29.16 at 8:30 pm

i think it’s good that JT is embracing his legacy as the
leader of the government that will preside over the collapse of the canadian economy. accept it. embrace it. lol. btw thx for all the rent my u.s. tenants. i will spend it wisely. i promise. lol

#90 Transplant on 01.29.16 at 8:32 pm

#79 huiegart

“It costs taxpayers over $300,000 to educate a single MD.”

Here’s my solution:

1. Increase tuitions to cover the actual cost of MD education.

2. Offer low-interest loans to cover this tuition increase (or the entire tuition).

3. Forgive a portion of the loan for every year of MD practice in Canada after graduation.

4. Increase the acceptance rates into MD programs; some increase from current levels would not affect the quality of doctors produced.

——————————————————————–

And here’s my solution:

1. All occupations will require “indentured servitude”.

2. All municipalities will be declared “company towns”.

#91 Don Derc on 01.29.16 at 8:35 pm

Yes, this house listing is heartbreaking. On a 1995 job transfer, I bought in Surrey. That way I had great monthly cash flow. I could actually live my life. A 2005 transfer landed me in Abbotsford. Again buy low. The excess cash went into investments in those days.

I’ve mentioned this before but we are all hooped – renters and owners alike. It’s called gouging. I found a nice 2 bdrm condo in the GTA – $600K with a monthly maint fee of $900 a month. That is your future. Yuck. I wonder what care homes will be like in 5 years.

Mark #94 – Companies that can’t find good people in Canada have only themselves to blame. Either for not conducting a good faith search effort, for not wanting to pay adequately, or for not building a longer-term talent pipeline in their organizations by hiring people at the entry-level and allowing them to develop. – Brilliant

“If this is not what you truly want and where you want to be, you simply will not survive the new normal in our industry or at our firm.” – and the definition of the new normal is bullying, berating, and mental cruelty tactics to increase employee performance.

Maybe WalMart should run for Prime Minister of Canada.

#92 Nutso nation - Realties.ca on 01.29.16 at 8:36 pm

[…] Source: http://www.greaterfool.ca/2016/01/29/nutso-nation/ […]

#93 WillD on 01.29.16 at 8:36 pm

Here’s the truth about healthcare. The liberals want docs to leave. The fewer there are, the fewer they have to pay. And doctors are expensive. They recently cut the number of residency spots in Ontario so even fewer will graduate. The other way the libs are reducing costs is by simply not funding new healthcare innovations until there is enough public pressure. Welcome to second tier medicine. You wait longer for treatment and you may not get the best treatment available. Of course most patient’s will be in the dark and still believe they are receiving the best care in the world…for free!!!

#94 Randy Randerson on 01.29.16 at 8:41 pm

I suspect T2 wil increase tax on dividends and interests earned, but will have to also increase the refund mechanism so that integration is maintained.

#95 Cici on 01.29.16 at 8:41 pm

#50 Scumop

Sorry to hear about the job loss. Hope you find something equivalent soon.

If push comes to shove, and you really do have to do something for minimum wage…well at least it’s going up! I wouldn’t count on Walmart though: my local store has cut its greeters (haven’t seen any in over six months) and there are hardly any cashiers, let alone employees, left to be seen. I bet that makes it easier to steal from them though ;-)

#96 Whats the big deal on 01.29.16 at 8:41 pm

#79 huiegart

even better answer. Simple.

or increase the intake from other countries that meet similar standards as the Canadian medical institutions. Most European institutions study in English, and many have a similar if not higher standard as Canada.

its a globalized world. deal with it.

#97 LL on 01.29.16 at 8:43 pm

..or maybe 1 of the apparently 95% local-to-local will buy!

#98 Nagraj on 01.29.16 at 8:45 pm

“Class warfare”? Piffle.

Lemme tell ya bout CLASS WARFARE:
I was there in 1792 when we stopped carriages on the road and pulled the fancy dressed aristos out, and hack hack hacked them into a bloody mess. Boy, did they ever scream!

And elsewheres in 1917 this gaggle of very nicely dressed bourgeois ladies (see Sergei Eisenstein) cornered this hapless hungry emaciated young revolutionary Millenial leafleteer, and they poked their stylish umbrellas RIGHT THROUGH HIS BODY! And then they all LAUGHED! “Ha ha ha!”
Now THAT is class warfare.

Whatchas got in this here cold Kanadski country is jest a tetch of subdued unease bout that there wealth gap thingy. I mean, like what was the last time yas had a general strike, eh?
(Yas might git another garbage strike in Tronna at the end of February though.)

But, I dare say, telling ’em to “work for free for a year” and that yas is all makin’ “bad financial decisions” IS a good start at kindling the flames, so to speak, of class conflict.
But we’s a long ways from class warfare.

#99 Leo Trollstoy on 01.29.16 at 8:51 pm

#85 For those about to flop… on 01.29.16 at 8:15 pm

let it slide. rfd has documented all his bad investments including gold, Barrick, usdcad, etc. and he thinks it’s difficult get company hr to hire. pretty clear low bar life skills no question. life punishes the dumb and he’s clearly being punished financially so just enjoy the show lol very educational. like a masterclass in failure. difficult not to watch. lol

#100 Shirley valentine on 01.29.16 at 8:52 pm

Where’s that studly alien. It’s Friday night and Shirley needs a smokey man. Taking a lotta heat lately but still a happy bastard. Party on.

#101 Leo Trollstoy on 01.29.16 at 8:53 pm

canadians are too passive for class warfare.

#102 Leo Trollstoy on 01.29.16 at 8:58 pm

i was thinking of poor mark and how he thinks getting noticed by company hr is hard lol and how vancouver homebuyers will be saved by investing in gold and pm lol (hard to write that one without laughing hahaha) how 2 yrs ago the cadusd was going to rise,
crash thru parity to 1.5 lol and Barrick gold was amazing lol and deflation would be everywhere in Canada lol hahaha man when u write it all out its actually quite hilarious. anyway, i think i have the perfect name for him that represents these kinds of low bar life skills. WalMark. it’s perfect. thank me later. WalMark lol i love it

#103 Dina Sanchez on 01.29.16 at 8:58 pm

Mark, they already did raise capital gains taxes over the last 30 years.

It used to be $500,000 of capital gains exemption had no income taxes and then down to $100,000 and now it is $0 income is exempt from capital gains taxes.

Also, capital gains taxes that are not paid by a sale or transfer while someone is alive would be taxed at much lower rates during their lifetime for the majority of Canadians.

For example, a investment portfolio of equities, bonds, REIT’s, ETF’s, etc. has not all been sold for say 25 years and had a $500,000 capital gains would be subject to 25% to 30% income tax rates upon death of that person. Most people would pay 10% to 15% maximum capital gains income tax rates during their lifetime.

Most people don’t understand that at death all RRSP’s, RRIF’s, LIRA’s, RESP’s, investments dividend, interest, investment income, capital gains from equities, bonds, REIT’s, ETF’s etc., pensions, rental properties and non-primary residences and properties capital gains are deemed to be sold and all fall as income in the year of death and taxed as such.

In fact, it is higher income taxation due to death and nothing else. This person did not get richer that year because he or she died.

It is not uncommon that many with $1,000,000 in net worth in RRSP’s, RRIF’s, a cottage, rental property etc. or non-registered investments etc. can lose $300,000 to $400,000 or more just in death taxes or income taxes upon death at much higher income tax rates.

Many adult children or other family members are stunned to learn that they have only $600,000 to $700,000 or less and not the $1,000,000 they thought was their parents net worth.

#104 Shawn on 01.29.16 at 8:59 pm

Mark, don’t argue when you don’t Know

“Large mortgages are an IOU of course and the banks do create deposits to match a loan.”

Banks do not ‘create deposits’ to match the loan.

***********************************
Banks, along with their customers create deposits = money all day long when they make loans.

The main constraint is their equity capital which they has to equal at least about 10% of assets = loans and deposits.

They also must keep a bit of assets as cash or deposits with the central bank to allow for withdrawals.

It’s been well covered that really loans begat deposits therefore loans begat money.

If I write a cheque to Joe on a line of credit (take out a loan) that cheque could be signed on the back by Joe and passed around as money although that is less common these days.

The essence of credit is I can get money now upon promise to pay later.

Anyhow Mark, how about a reference since you are refuting.

The Bank of England articles that support what I say have been posted here many times. Usually as something nefarious. It’s not nefarious. It’s wonderful, actually.

#105 Iknow on 01.29.16 at 9:01 pm

#75 Thom on 01.29.16 at 7:52 pm

Point Grey is the nicest middle class neighbourhood in the city

————————————————-

LOL middle class neighborhood, that would be like 35 years ago, and all those middle classers are all now huge believers of real estate lotteries and make sure their descendants are taking Chinese language classes.

Appreciate the sarcasm.

#106 BS on 01.29.16 at 9:03 pm

BG on 01.29.16 at 7:22 pm
I usually love being a renter but today it really pisses me off.

Actually you should be glad you’re a renter. Imagine if you bought into a place like that? Dysfunctional strata’s are becoming the norm now days. Strata’s attract loser control freaks on the council. People who like to make rules that make so sense because it makes them feel important. Much better being a renter in a strata. No need to read the minutes or worry about what the fools an council are going to do next. The strata has no direct jurisdiction over a renter. Your landlord gets the fines. You also can move without having to pay $50K in transaction costs if the strata starts to drive you nuts.

To answer your question on what to do? Talk the the person moving out and get in there on Sat. No way it takes them all day to move out. Just start moving in the minute they are out even if it is 11PM Sat. Just don’t tell the strata before hand your intentions. By the time they figure it out you will be moved in. Then they can fine your landlord.

#107 Shawn on 01.29.16 at 9:05 pm

Banks

And yes Mark is however correct that banks have to compete for deposits since once a deposit is created by a bank by making a loan it can be transferred to another bank such as the house sellers bank and they do have to compete to keep deposits, that is absolutely true.

#108 Big Dipper on 01.29.16 at 9:08 pm

Wait! Garth missed the biggest news of the day: The Alberta Royalty Review report.

Just as predicted by all the right wing hyenas, it was a total attack on the Alberta oil and gas sector. Massive increase in royalties to line the pockets of useless government employees, environmental nut cases and Unions! Production shutdowns everywhere and a corporate exodus expected this weekend. Houses dropped 20% overnight. This is the end….

But wait, what’s that? The report is industry friendly? No rate increases for the oils sands. Minor tweak’s for conventional production? This can’t be! Those commies/socialists/Marxists/tree huggers are up to something. Just read all about it:

https://ca.finance.yahoo.com/news/alberta-premier-notley-announce-oil-gas-royalty-framework-090014880.html

But not to worry, we can always fabricate another ideologically based fear mongering story. The right is nothing but creative… How about a planned massive tax grab by the lib’s (commies/socialists/Marxists… etc.) on the Godly entrepreneurial class. The gullible will sure fall for that one. And so it goes…

#109 Drill Baby Drill on 01.29.16 at 9:12 pm

102 Shirley v

Your studly alien has disintegrated he was being beamed up but his tin foil hat short circuited the particle beam transponder and pfffttt he gone.

#110 learnigfromyou on 01.29.16 at 9:15 pm

Little history
One French woman passed her whole live fighting in revolutions, against poverty, for human rights, …, you name it.

She got old and while sitting at home she heard people screaming on the street. She asked somebody to go out to know why they were fighting for.

-They want to eliminate the rich people.

She answered, Oh!!, curiously I passed my whole life fighting to eliminate the poor people.

I’ve lived in societies where they are plenty of poor people and was almost illegal to be rich.
It was ugly

#111 Smoking Man on 01.29.16 at 9:18 pm

Canadian-Controlled Private Corporation (CCPC)

Son of a bitch..

He really wants me to leave Canada.

My Delaware incorporated LLC might find a work around.

#112 Brazil ex-pat on 01.29.16 at 9:19 pm

http://www.huffingtonpost.ca/2016/01/29/negative-interest-rates_n_9116246.html?utm_hp_ref=canada-business&ir=Canada+Business

Another continent with negative interest rates. Sure happy converting my USD to R$ at 12% here in Brazil. Good luck everyone !!

#113 the Jaguar on 01.29.16 at 9:27 pm

From the slight haze of a Friday night, second glass of wine one realizes this blog is just one big daily brawl on the dance floor of some bar or pub in the local lives of Canadians. Coast to coast as they say. The good, the bad, and the ugly. I am mad for the cat in that photo, Garth. Hard to know whether it is genius or madness in those eyes. I think I recognize my own reflection.
The same could be said about most of us.

#114 hope & ruin on 01.29.16 at 9:30 pm

#110 Big Dipper on 01.29.16 at 9:08 pm

Then why did they waste everyone’s time with a review in the first place? Just to add some more instability?

They did what they had to do in the face of public pressure. Not what they wanted to do.

I wonder how much damage their little ‘make work’ project did to the industry.

They are on their heels now anyways. T2 will be there soon too. It’s all well and good to be the ideologue on the sidelines. Seems like a different game when you’re in the hot seat.

#115 45north on 01.29.16 at 9:31 pm

BG: Or maybe I’m being a jerk in the first place?

yep

#116 Shirley valentine on 01.29.16 at 9:37 pm

#111 Drill Baby Drill on 01.29.16 at 9:12 pm
102 Shirley v

Your studly alien has disintegrated he was being beamed up but his tin foil hat short circuited the particle beam transponder and pfffttt he gone.

He’s protected by his schlong zinger. Fear fear not. Better not be on a rental detour.

#117 Vanreal on 01.29.16 at 9:42 pm

Honestly, 2.4 million for a 33 ft lot in that neighbourhood in that location is a good deal. It will go over asking.

That’s the point. — Garth

#118 Jack Henderson on 01.29.16 at 10:00 pm

The NDP are a bunch of people that have no idea how the real world works.

You keep taking money from people and they will have less and guess what, surprise the economy just keeps getting worse.

The NDP win once and awhile because people think it can’t get worse but they find out soon enough. NDP is a disaster. Ontario knows that now from a hard lesson.

#119 Devin Doom on 01.29.16 at 10:04 pm

Trudeau, Nutley and Wyn-eeeeeeeee all attack small business, and small business fight back, by closing in record numbers

http://calgaryherald.com/business/local-business/small-and-medium-sized-businesses-plan-to-cut-spending-27-this-year

Trying to get blood from a stone should be interesting to watch. Theres two pillars of the economy gone, energy and sme’s. Where will the revenue come from now?

Will the Americans who bought out Canada’s indigenous proxy be the first to man the Food Banks?

#120 Chris scott on 01.29.16 at 10:06 pm

I’m a software engineer, work from home selling my software products online to people all over the world, wife on the payroll, Corp USD profits invested. Might have to seriously consider the Estonian e-residency program and move my Corp to Estonia:

https://e-estonia.com/e-residents/about/

http://www.theguardian.com/world/2014/dec/26/estonia-offers-e-residency-to-world-what-does-it-

https://en.m.wikipedia.org/wiki/E-residency_of_Estonia

#121 45north on 01.29.16 at 10:17 pm

Julia: CMHC will not insure a mortgage with a lending value of more than $1M purchase price

Julia, yes I agree that today CMHC will not insure a mortgage with a value of more than $1 million but that was not always the case! Before June 2012 it would.

Like I said.

#122 Gary in Kelowna on 01.29.16 at 10:17 pm

Mark #86 – Wow. You know nothing about Canadian Medical Schools, it’s requirements to get in, how grueling the course of study is,
the debt most of them incur to get through. And now they are being targeted for their income by our current Govt.
When my son started Med School in 2010 he was informed that the Government spends $500,000 to educate each one of them. That’s on top of the tuition they are required to pay. Currently I believe Canada graduates about 1400 Med students per year. Do the math on how much that costs before you beak off about just pushing more students through. Educate yourself.

#123 Smoking Man on 01.29.16 at 10:18 pm

Humanity is fkd

For example, it’s Friday night, we are partying on GF and everyone apart from a few are serious as shit.

You have the luxury of hiding behind a fake name, let your hair down dogs, shake a tail.

No creativity, just another day in class, bobbing for an apple and that elusive A on your report card.

Valentine you get a pass. Not that you offer up much litaral creativity, but I got a feeling, your artistry can only be viewed from behind closed doors.

#124 dutch4505 on 01.29.16 at 10:18 pm

we live just south of vancouver in washington state. daughter is finishing medical degree in ontario. plans to work in usa. thank you canada.

#125 45north on 01.29.16 at 10:25 pm

learningFromYou: I spent my whole life trying to eliminate poor people

pretty funny

#126 WUL on 01.29.16 at 10:25 pm

#106 Shawn on 01.29.16 at 8:59 pm

If I write a cheque to Joe on a line of credit (take out a loan) that cheque could be signed on the back by Joe and passed around as money although that is less common these days.
****************************

Small wonder it is less common. My son received a cheque for a car that was written off. He needed the money quickly to pick up a deal on another car (and to get to work) and did not want to wait the five days for the cheque to clear so he endorsed it to me and I was going to deposit it in my account and get him the cash.

The bank, a major Canuck chartered, would not accept it unless he came in and showed ID.

Wow!!! Kinda undoes the point of a bill of exchange and the rules and laws of commerce that have been around for what, 300 years?

Our banks make rules which are contrary to the Bills of Exchange Act. The whole point of bills of exchange is that if I receive a cheque in Alberta, I can endorse it and mail it to someone in Nova Scotia who can then cash it. Or if I am taking a sailing ship from England to China to buy all of the tea there, I do not need a hold filled with cash. I can just take one piece of paper.

This is not the first time I have experienced this lawlessness on the part of banks. The statute has a rule about a cheque upon which the numerical amount differs from the written amount. The cheque is still valid. I forget which amount rules the day, but I had a bank refuse to accept such a cheque.

Admittedly, I am not current on the Bills of Exchange Act but for commercial paper to function, you need laws like that.

Sonsabitches. I hate the bastards.

#127 liquidincalgary on 01.29.16 at 10:26 pm

Smartalox on 01.29.16 at 5:35 pm

speculative oil and gas ‘plays’ comes from

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

pension funds have very specific rules to follow when investing workers money.

‘speculative’ is not one of the sectors that meets the criterion of investable product

#128 Mark on 01.29.16 at 10:30 pm

“Banks, along with their customers create deposits = money all day long when they make loans.”

Of course. But the way you originally worded it was as though banks could, unilaterally and without a counterparty, “create” a deposit. Which is simply not how it works. The process always requires a counterparty with funds to lend the bank.

And the bank’s ability to engage in such activity is entirely dependant on finding willing counterparties to which to agree upon relevant terms and conditions including term and interest rates.

Equity is only a constraint insofar as credibility is concerned (few reasonably knowledgeable counterparties are willing to deal with a minimally capitalized bank, and rightly so), or in the case of practical banks, the terms and conditions of CDIC insurance and OSFI regulatory capitalization requirements.

#129 liquidincalgary on 01.29.16 at 10:34 pm

Cat in the Hat on 01.29.16 at 6:06 pm

But that is not all. Oh, no. That is not all.

http://www.theglobeandmail.com/opinion/time-for-another-look-at-a-guaranteed-annual-income/article28439737/

An innovative idea for social and tax policy reform – a guaranteed annual income (GAI) – has once again emerged as a topic for public debate and policy action.

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

wasn’t this already attempted in Manitoba, with great failure?…oh ya, it was: https://en.wikipedia.org/wiki/Guaranteed_Annual_Income

#130 WUL on 01.29.16 at 10:42 pm

Upon reflection on my intemperate remarks, I will review the Bills of Exchange Act tomorrow to see if my current knowledge of the law is remotely close to allowing me to practice, or if I am simply washed up.

I may have injudiciously slandered and disparaged the banking bedrock of this glorious land.

Signed,

Rumpole of McMurray

#131 Keitb on 01.29.16 at 10:46 pm

No sympathies for doctors. This is a profession that artificially increases wages against public interest by restricting supply. After all, they’ll make a Harvard Med grad compete for another residency as an IMG (International Medical Graduate).

Looking to the States? Most of our doctors couldn’t cut it there or they’d have already left.

Licence more IMGs instead of making them drive cabs. And we’ll see how many docs are in the 1% league then.

#132 Smoking Man on 01.29.16 at 10:52 pm

Meet Richard everyone, my new friend I just met at Stir.

He’s a Beauty.

http://dyslexicsmokingman.blogspot.com/

#133 waiting on the westcoast on 01.29.16 at 11:09 pm

#76 crowdedelevatorfartz on 01.29.16 at 7:52 pm
“@#66 Holly
“Unfortunately in Vancouver it’s all about “land value.””
+++++++++++++++++++++++++++++++++++
Nope .Its all about image. The car you drive. The location of the house you “own”. The vacations you take. etc.etc.etc.
Materialistic, self absorbed, narcissistic navel gazing, $6 Starbucks swilling kardashian wanna bees. THATS what vancouver is all about.”

As a Vancouverite, I have to wholeheartedly agree with your assessment.

Plastic Fantastic!

#134 Scott in Gibsons on 01.29.16 at 11:15 pm

Leave small corporation taxes alone but enact and enforce fair rules. Audit the salaries paid to spouses and children and if its found that fraud is being committed fine and prosecute. If everyone in the family drives a company car prosecute. The current system is reasonable but its being openly abused and those left paying a higher percentage of their wages to taxes resent is resulting in the populist reaction of JT. The small corporate tax dodgers have made their own bed and they can lay and cry in it for all I care.

#135 Chris on 01.29.16 at 11:15 pm

Can docs just go and practice in the US? Not that easy, right?

#136 Tedfiftyfour on 01.29.16 at 11:20 pm

Garth you jumped the gun big time NDP oil Royalties panned changes.
The industry is happy with outcome.

What say you

#137 me on 01.29.16 at 11:23 pm

too many idiot out there . some one going to but it.

#138 Big Dipper on 01.29.16 at 11:26 pm

#116 hope & ruin on 01.29.16 at 9:30 pm

#110 Big Dipper on 01.29.16 at 9:08 pm

Then why did they waste everyone’s time with a review in the first place? Just to add some more instability?

——————————

There is a cloud behind every sunny day! “Hope for ruin” would be a better name for you.

#139 SWL1976 on 01.29.16 at 11:29 pm

Well I most certainly can say that I am not happy with T2’s plan to further tax personal corporations, but there is not a lot I can do about that.

At least I am well aware of the corruption of government, multi-national corporations in bed with government and writing trade deals like the TPP, and lest we forget to mention many peoples beloved private central banks. Understanding this fraudulent behaviour helps me to some what plan accordingly.

Thinking our financial world is secure and free from future calamity is much like thinking the local or global weather patterns have not changed in the last 50 years.

It was 5 degrees C here today at 58 degrees North, in what should be the deepest of winter days. I’m no meteorologist, but I’m thinking we’re about 20 degrees above seasonal here.

I’m also no economist, but I can clearly see that we have many polictcals, boot licking the shadow government for their personal slice of the devil’s pie. At the expense of you, me and well over the 99% just trying to survive and live in peace. Financial institutions have become more important than basic human rights.

An awakening on a massive scale is about the only cure for this funk, and outside a small percentile of the population…

Prognosis, not so good.

WUL – Too bad about you son losing his gig. If he is registered with the apprenticeship board he will be good to go sans work. If he is serious about the trade it might be a good time to get caught up on schooling. Perhaps do 1 or 2 blocks and be ready for, if and when work picks up. I know I wouldn’t want to be an apprentice looking for work right now, but the good news is…

There’s always something to fix…

Perhaps he can help awaken some of the masses

#140 Shirley Valentine on 01.29.16 at 11:34 pm

#125 Smoking Man on 01.29.16 at 10:18 pm

Humanity is fkd

For example, it’s Friday night, we are partying on GF and everyone apart from a few are serious as shit.

You have the luxury of hiding behind a fake name, let your hair down dogs, shake a tail.

No creativity, just another day in class, bobbing for an apple and that elusive A on your report card.

Valentine you get a pass. Not that you offer up much litaral creativity, but I got a feeling, your artistry can only be viewed from behind closed doors.


SMOKEY BABE. How can one compete with the soon to be billionaire romance novelist.. courted by famous writers and movie stars who naturally all want to play the smokey man… but there is only one smokey man.. who slays commies and teachers as an after thought while dispensing worldly wisdom… and making millions with alien telepathy

The dance floor at seneca is far too empty.. need to get the smokey beast of a stud up there and see what he’s got… and he can see me strut my animal artistry as the prelude… Stamina .. you’ve got the stamina? Shortness is not good

#141 EK on 01.29.16 at 11:34 pm

Canadian doctors ARE going to the states. For every 1 specialty positions available in Canada, there are 50 in the US. It is much harder to get a job in Canada and most hires have multiple degrees and fellowships from top tier programs in the US (MD Anderson, Memorial Sloan-Kettering etc..note I did NOT include Harvard, this isnt’ undergrad you fool)
Cut it in the states? Please, we not only get trained in the top schools in the States, we are also regularly recruited by large US centres.
We have the most competitive admissions to medical school in the world and we are some of the best trained physicians in the world.
please don’t open you mouth when you have no clue.

#142 mike on 01.29.16 at 11:53 pm

A savvy investor could buy that shack with $480,000 down payment and then rent it out for $12,000 per month to cover the mortgage lol. Or you could airbnb it half of the month for $800 a night. I should be a real estate agent.

#143 MD on 01.30.16 at 12:06 am

Doctors didn’t go into medical school to have our profession flooded with new entrants. Sorry it sounds harsh but we live in a free market world. Hockey players get paid as much in a game as we get in a month!

Maybe get nurses to expand their duties. Medical school expansion will not occur. The timeline for education is too long for any changes now. What can be done is to pay doctors fairly (maybe on par with US doctors) so we can keep the ones in Canada from leaving.

#144 Leslie on 01.30.16 at 12:17 am

#55 Freedom First on 01.29.16 at 7:12 pm

#1 NTH

FU

**

Oh freedom first, you’re my kind of man. You’ve got that rough edge I like in a guy.

Love,
Leslie

#145 kommykim on 01.30.16 at 1:03 am

RE:

#59 BG on 01.29.16 at 7:22 pm
-Move in and shut my mouth?

This seems to be the best option. I wouldn’t want to live in a place where I’m in constant conflict with my neighbors. It’s just not worth it to me. However some people love a good fight….

#146 kommykim on 01.30.16 at 1:13 am

RE:

#92 Julia on 01.29.16 at 8:35 pm
#37 Frank
I would ask if the dealer has a cash rebate. Sometimes it’s worth it.

If the dealer offers a cash rebate then the 0% loan is not really 0%.

#147 Stay or Go? on 01.30.16 at 1:16 am

I love living in Canada but if the tax situation is too bad my husband and I will eventually have to leave. That would mean less doctors here in some much needed specialties in our area of BC. There are job openings here as it is for those specialties and it will get worse. Please don’t make us leave T2 and company!

#148 Entrepreneur on 01.30.16 at 1:32 am

The bubble heads need more than air. What is normal anymore? They should look at themselves to correct the problem.

Resources belong to the people of that country and a person should benefit from it. Canada is rich in resources and we should be benefitting from them (from various means). Well be watching NDP Alberta and Notley (& they are not commies, etc.).

B.C. doctors have been leaving for a long time and as for the 25 year African doctor coming here, I would look further into how they are taking the test. If it is like some online test, well, there is your answer.

Someone should educate T2 the importance of small businesses or are we too far gone to see it.

#149 JP on 01.30.16 at 1:46 am

All the gold pumping charlatans are claiming the ss Titanic is leaving US shores when in reality its docked in China ready to set sail…. All aboar the unsinkable YVR.

#150 juno on 01.30.16 at 2:02 am

had lunch with a bunch of house horny co-workers today.

To them everything in Vancouver is selling within days. Their real-estate agents are saying bidding wars all over Vancouver and Burnaby.

One of the them will be putting up her house for sale soon. Note this house didn’t have any takers last year but she intends to raise the price by 200,000, because her assessment went up.

We’ll soon find out if it gets any takers. AFter all its coming to T2 Budget, and I think this one will be a doozy

#151 Blacksheep on 01.30.16 at 2:10 am

Mark # 130,

“The process always requires a counterparty with funds to lend the bank.”
————————————–
Mark, your clueless.

#152 huiegart on 01.30.16 at 2:21 am

#124 Gary in Kelowna:

“…the Government spends $500,000 to educate each one of them … Do the math on how much that costs before you beak off about just pushing more students through. Educate yourself.”

$500,000 is a small fraction (~ 5%?) of the lifetime earnings of a doctor. Producing more doctors would lead to lower salaries and thus reduce the medical expenditures of the Government. Educate yourself.

#153 Leo Trollstoy on 01.30.16 at 2:26 am

#124 Gary in Kelowna on 01.29.16 at 10:17 pm

WalMark from Saskatoon is wrong again! lol

#154 juno on 01.30.16 at 2:36 am

Its a beaut… Who said real estate can only go up FT Mcmurray is taking a heck of a pounding

Listings have doubled, I can see some houses hasn’t lowered their prices, but many have. Still overpriced by at least 40%

#155 huiegart on 01.30.16 at 2:42 am

#90 Transplant on 01.29.16 at 8:32 pm

And here’s my solution:

1. All occupations with subsidized training of $500K and guaranteed annual income upon graduation >$200,000 will require “indentured servitude” or payback of the subsidies.

Here, I fixed it for you.

#156 Longterm on 01.30.16 at 3:09 am

#44 Gary in Kelowna on 01.29.16 at 6:55 pm

Cause it’s only ever about the money and self-interest. Idiot.

#157 willworkforpickles on 01.30.16 at 3:13 am

You could get that house for a dollar from tax reverted properties here in good ole Detroit …might even beat em down to fitty cent.

#158 Lisa on 01.30.16 at 6:54 am

I feel sorry for those doctors who truly are running a small business, ie have an office and staff. However, there are lots of MDs who have no overhead because they are basically hospital employees and they are still allowed to do the whole personal medical corporation thing and pay very low taxes.

#159 Raging Ranter on 01.30.16 at 8:31 am

I find it deliciously ironic that many thousands of doctors and other well-educated professionals voted Liberal because they assumed that they would not have to pay for the Liberal tax increase. With their income sheltered behind corporations, and their corporations in turn owned by family trusts, they could split income among trust beneficiaries which include not just spouses, but entire families.

“Taxes are for little people” so the saying goes. Well docs, welcome to the land of the little people. As for the CMA, spare us your crybaby missives. Your members voted for this, I didn’t. For the first time ever, I’m cheering on Trudeau.

#160 Rick on 01.30.16 at 8:34 am

Well Folks, just checked my investments for the week;and am only down 1.1% year to date. Much better than being down over 5% a week ago:)

#161 gut check on 01.30.16 at 8:43 am

@ #59 BG on 01.29.16 at 7:22 pm

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

I feel for you. I wonder if the rules and rule enforcers are the reason the previous tenant is leaving?

I lived for a year in a condo run by insane people. it was a very nice unit and we were paying high rent for it but it took less than a week for us to learn what other residents thought of us. No need to go into details but suffice to say that there was steady low grade harassment and a few straight up insults – right to our faces. I also strongly suspect that they entered our unit without permission – twice.

At one point a package went missing from our mailbox (I had seen it in there on my way out of the building but it wasn’t there when I returned from my walk) I asked about it, got the obvious answer (Hmmm, that’s weird, they said) So I called the police. I’d had enough. After that I had a peaceful but tense 3 months until I moved out.

What to do about your current situation, well you don’t say if you could re-book the movers or where you are going to stay assuming you have to be out of your current place on Sunday – to me the landlord ought to be held responsible for this in some way, if possible.

Honestly if you can deal with the type of crap I’ve just described then you might as well go the path of least resistance. But if that ‘lifestyle’ will stress you out as much as it did me then perhaps break the lease?

good luck to you & your girlfriend. don’t let the bastards grind you down.

#162 hope & ruin on 01.30.16 at 9:13 am

#140 Big Dipper on 01.29.16 at 11:26 pm

There is a cloud behind every sunny day! “Hope for ruin” would be a better name for you.
_____________________________________

Oh great. The entire left has officially adopted the strategy of “eyes closed, hope for the best”.

And the outcome of all this? meh. I’m neutral. Do what you want. I’m mobile.

As far as ruin. I’m hoping Trudeau does spend the money and we hold-off a recession until oil prices return. But Nutley isn’t helping that situation. See I’m left-ish.

#163 Kelly Granskye on 01.30.16 at 9:41 am

To Dina Sanchez

You are so right. My friend said that her father passed away last year in January and his cottage, RRSP, RRIF and Canadian bank stocks were left to her.

Her father was a renter and had only a few thousand dollars, $7,000 in his bank account. He was a renter as her parents divorced 23 years ago with 25 years of marriage.

She found out that her father’s net worth was $750,000 and paid out $323,000 in capital gains taxes, RRSP, RRIF taxes on his final death tax return.

She had to sell the cottage to pay all the death taxes as the much reduced amount of $240,000 was left in the RRSP, RRIF. They confiscated 43% and she was left with only 57%.

She told me 37 years of her father’s hard work and life stolen in a few seconds. She looked backed at many decades of her father’s tax returns and property tax bills and found that he paid about $475,000 already.

Dina, this is why people don’t understand that we are already taxed to death and that there is no free pass when family members, loved ones get assets passed down to them. There already is a heavy tax burden at death for most Canadians that saved, invested for their retirement and family.

Remember that RRSPs and RRIFs are tax shelters. They defer tax tax, instead of escaping it. Her father would have contributed to them, received a tax rebate for doing so, and grown money inside free of immediate tax. Upon death the tax shelters are treated the same as if they had been collapsed during the time he was alive – all assets inside become taxable. Upon death securities are considered to have been disposed of, and taxes payable as they would have been anyway. This situation can be avoided or mitigated in many ways during life. Your friend lacked knowledge and her dad failed to plan. — Garth

#164 crowdedelevatorfartz on 01.30.16 at 9:56 am

@#53 Hamilton Doc
“It’s the new grads that will simply set up elsewhere that will be the main effect. You won’t see the effect of that for 5-10 years…..”
+++++++++++++++++++++++++++++++++++
Total agreement.
A friend of mine has a son who was accepted to Dal for medical intership. Nova Scotia govt paid a huge portion of his tuition if he agreed to work in a small town in Cape Breton after graduating.
He graduated. New govt. Cutbacks. No job waiting so the govt offered to pay his tuition to upgrade to a specialist if he agreed to work in Halifax upon graduation. No brainer.
Off to Magill he went. Tuition paid by Nova Scotia taxpayers. Upon graduation. Another change in govt. Still no job.
He inquired all across Canada. Nothing. Nova Scotian govt patted him on the back and sent him merrily on his way with zero debt.
He applied in the US . The recruitersy freaked! Flew him down to Texas, wined and dined him. Offered him 3 times the salary paid in Canada, a research lab, a multi million dollar budget and his pick of staff.

He refused.

A New England hospital offered him an even better deal……

#165 crowdedelevatorfartz on 01.30.16 at 10:02 am

@#113 Smoking man
“He really wants me to leave Canada…..”
+++++++++++++++++++++++++++++++++++

Dont worry Smokey.
We’ll leave a candle burning in the window for Ye……

#166 crowdedelevatorfartz on 01.30.16 at 10:08 am

@#85 for those about to flop
“Hey Leo Toiletspray …………..”
+++++++++++++++++++++++++++++++++++

Egads!

Is someone horning in on my repulsive nom de plume?
Stealing my “thunder” as it were?

The horror.

#167 Felix on 01.30.16 at 10:09 am

So…cats all look crazy and demented. Hmm.

Dogs eat their own crap and sniff each others’ butts, and that is normal to you, Garth?

Your anti-feline RACISM is outta control!!!

#168 ole Doberman on 01.30.16 at 10:14 am

Forecast for $cad not looking good into 2020. Potentialy hitting .50
Yikes:

http://www.armstrongeconomics.com/archives/42741

But does this mean more foreign capital coming?

#169 Samuel Wright on 01.30.16 at 10:24 am

Kelly, I hear it all the time. Many people are shocked about how much taxes are paid when they are deceased.

As for planning for it. You can’t escape income taxes on an RRSP or RRIF while your alive or dead. You maybe able to reduce them somewhat.

This goes for capital gains taxes too. If you sell and transfer property, stocks, shares and investments to other family members while you are alive, you have to pay capital gains taxes.

The best case scenario is $50,000 to $100,000 in tax savings if Kelly’s father income was low to modest. If it wasn’t then he would paid a lot of taxes withdrawing, receiving money from a RRSP, RRIF each year added to his income.

There was no way that she could keep the cottage, bank stocks just with RRSP, RRIF money already taxed during her father’s lifetime.

#170 Keith in Calgary on 01.30.16 at 10:26 am

http://www.calgaryherald.com/business/follow+money+vancouver+real+estate+market+concerns/11683456/story.html

Wei had arranged for three million yuan to be deposited in a Chinese bank and transferred to a Richmond currency exchange. Exchange owner Tony Xu called Wei and told the realtor his client’s cash had arrived and it was converted to $521,470 Canadian.

It was 10 times the legal amount individuals are allowed to transfer from China. And it was 50 times over the $10,000 limit that must be reported under Canada’s anti-money-laundering laws.

THIS VANCOUVER DREAM HOME COULD BE YOURS FOR ONLY $2.4 MILLION

Instead of having Wei come to his Richmond location to pick up the cash, Tony Xu said it was better for the realtor to meet his brother Frank Xu in Vancouver. Wei’s client Zhongyun Zhang, a Chinese transportation professional, had come to Vancouver in August 2014 and set up a Bank of Montreal account with Wei’s help.

————————-

Here’s another interesting article about Asian fraud in Vancouver real estate market and the BC Real Estate industries lack of interest in looking into it.

#171 crossbordershopper on 01.30.16 at 10:36 am

i got a fixer upper in small town saskatchewan for 90 grand. the lady in the basement pays 700 and once i put 10K upstairs into it, it should rent for 850 to 900. so , 1600 gross on a 100K investment.
lower risk, higher returns. real cash, cash in your pocket every month, non of this my house is worth this and that.
who cares, what are you going to do sell it. where are you going to live.
cash flow. the only way.

#172 Tom Sinclair on 01.30.16 at 10:52 am

Kelly, thankfully my father did not leave me any of his RRSP, RRIF. He lived long enough to deplete it so there was nothing in there. However, he my mother passed away 14 years ago and all the joint investment accounts, joint property passed to my father.

My father is deceased a few months ago and he had REITs, ETFs, stocks, bonds, some rental properties and GICs. The total capital gains taxes on his total investments, properties is $365,000. This was on a total net worth of his investments, properties of $1,170,000.

I asked his adviser and accountant if he could avoided or reduced these taxes and they said by not much maybe tens of thousands at best.The problem is he would of missed the some of upside from his investments if he sold them in different tax years.

Assets can be moved into joint accounts with children prior to death. Assets can be gifted before death. Children can fund insurance policies on parents’ lives to completely eliminate tax upon death. There are many options when it comes to estate planning. The trouble is, 95% of families don’t plan. They emote. — Garth

#173 Popeye the Sailor Man on 01.30.16 at 10:53 am

‘Bulldozer bait’: $6-million mansion just another Vancouver tear down

1996 Shaughnessy mansion slated for demolition raises bar in debate over Vancouver real estate

http://www.vancouversun.com/business/bulldozer+bait+million+mansion+just+another+vancouver+tear/11686111/story.html

#174 TurnerNation on 01.30.16 at 11:06 am

Feel like a beer? Go to the two or three Global companies owning most popular brands. Who needs local governments when we have global citizens (corporations have rights as persons). Local government is theatre: bellowing actors such as Trump, Regan, Arnold S. Why, even actors cavorted with leaders in Davos last week. Could it be clearer?

Grab a cold one and support:

Anheuser-Busch InBev SA/NV …It is the world’s largest brewer and has a 25 percent global market share.
AB InBev was formed through successive mergers of three international brewing groups: Interbrew from Belgium, AmBev from Brazil, and Anheuser-Busch from the United States.

Or:

Molson Coors to raise $2.3B US to fund global takeover of Miller brand

Or:

SABMiller plc is a multinational brewing and beverage company headquartered in London, England. It is the world’s second-largest brewer measured by revenues (after the American-Belgian-Brazilian Anheuser-Busch InBev) and is also a major bottler of Coca-Cola.

#175 Leo Trollstoy on 01.30.16 at 11:21 am

#171 crowdedelevatorfartz on 01.30.16 at 10:08 am

consider it flattery. a fantastic name lol

#176 Investorz on 01.30.16 at 11:25 am

This photo made ZeroHedge.
ZeroHedge is starting to really like Canada.

Unless oil goes back to 60$ and every laid off worker is called back to work?

#177 Leo Trollstoy on 01.30.16 at 11:26 am

#153 Blacksheep on 01.30.16 at 2:10 am

banking lessons by WalMark of Sadkatoon. shud focus on lower bar stuff like getting an hr callback lol

#178 Gloria Becker on 01.30.16 at 11:40 am

Reading this blog for the first time and I did not know much about taxes when someone dies. I was always curious about it.

My mother is still alive thankfully but my father has been gone for 16 years now and she got my father’s RRSP worth currently about $475,000 and my father’s investments in her brokerage account filled with REIT’s $275,000, and bonds face value of $455,000.

I know that she is just taking ROC, return of capital of $10,000 a year from her REIT’s and interest $24,000 a year from her bonds. She does have her and my father’s 55% portion of C.P.P., OAS coming in $21,000 a year.

The problem now as I understand it is that her REIT’s have a current capital gains of $100,000 and her bonds have a capital gain of $175,000.

If she passed away today, she would have to pay capital gains taxes on half of that so about $83,000 plus probably $242,000 taxes on her RRSP, probate fees $22,000.

This is $347,000 in taxes due upon on her death from her total investments worth today about $1,480,000. This is about a 23.5% tax rate. This means I will be left with much less, 76.5 cents of every dollar.

I thought there were no taxes due when a parent or family member dies and getting that money, property, investments from them.

This is not even including the income taxes she to pays now ever 3 months, tax installments of $2,000*4 or $8,000 a year.

How could you believe financial assets on which taxes have not been paid could be passed to you, tax-free? Perhaps you should arrange insurance to pay the taxes, the premiums on which are your responsibility. — Garth

#179 Herf on 01.30.16 at 11:50 am

The tip of the Vancouver iceberg? :

http://www.canada.com/business/follow+money+vancouver+real+estate+market+concerns+spring+from/11683456/story.html

So much for real estate industry “self-regulation” (and ethics). But then, Garth has previously raised the issue of how unregulated the industry is.

#180 Peter on 01.30.16 at 12:12 pm

hsbc is doing this…

http://www.reuters.com/article/us-hsbc-china-mortgages-idUSKCN0V61DT

#181 Paul Stalmorre on 01.30.16 at 12:13 pm

Regarding estate planning, taxes upon death and trying to reduce taxes, Garth, anytime any assets, investments are gifted to adult children or others there still is a capital gains tax that has to be paid which can be substantial in the tens of thousands to possibly hundred thousand or more because an investment has big gains not realized for years. There is no way to avoid capital gains taxes.

Also, this will increase the income tax rate and more taxes will be due for that parent as they have other income sources for that year and a higher income too due to the capital gains added to income.

Also, many parents and older parents are too expensive or can’t be insured at all. It may cost just as much or more than the taxes due on an RRSP, RRIF and other taxes due from capital gains, interest, dividends, pensions etc.

There are other risks having joint accounts with adult children like divorce, bankruptcy, lawsuits etc. that may cost more than the taxes due upon death if this option is not used.

As I understand it, insurance policies do not pay directly the taxes on RRSP’s, RRIF’s, capital gains and other income from investments but are paid directly to the estate or beneficiary. This can get more complicated than it sounds.

Insurance policies maybe taxable depending on how they are structured and used.

Regarding rental properties and other properties, they have other huge tax implications when sold, transferred, gifted while a parent or other family member is alive. Capital gains taxes and deprecation recapture which is added all as income will cost hundreds of thousands of dollars if such rental properties have not changed ownership after many decades.

Another factor that has to be looked is the person receiving the gift is likely in a much higher tax rate and has a higher income, it will cost minimum thousands a year in more taxes over that person’s lifetime and could cost more in the long run.

All true, in varying degrees. But estate planning can work well in many instances and is 100% better than doing nothing, if that is your suggestion. — Garth

#182 SquareNinja on 01.30.16 at 12:15 pm

#59 BG on 01.29.16 at 7:22 pm

I say move in on Sunday and teach those fascists a lesson! Be the jerk that no one wants to mess with.

Maybe this is the reason the current tenant wants to move out, but what person is going to jeopardize their ticket out?

I don’t see your problem as a renter’s problem, however; it’s a condo problem in general. It would be worse if you bought in such a building! High rise living sucks!!!

#183 NEVER GIVE UP on 01.30.16 at 12:17 pm

#59 BG on 01.29.16 at 7:22 pm
——————————————
Nimbyism at its finest.

#117 45 NORTH
——————————————
You must be on that strata council….

———————————————
In China in many Business level hotels there is a sign posted by the elevator that reads in English and Chinese It says “LIVE AND LET LIVE” It goes on to say we need to allow others some room to live their lives and not to complain at the first interruption of our life.
It actually amazes me at how much the Chinese can tolerate!

#184 Ronaldo on 01.30.16 at 12:25 pm

#183 Gloria Becker

”This is $347,000 in taxes due upon on her death from her total investments worth today about $1,480,000. This is about a 23.5% tax rate. This means I will be left with much less, 76.5 cents of every dollar.”

Wow and wow. I really do feel sorry for you, you poor thing you. I’m sure you’re going to suffer big time with only a million dollar inheritance. Sad. Makes me feel like changing my will and giving it all to charity.

#185 SquareNinja on 01.30.16 at 12:28 pm

#86 Mark on 01.29.16 at 8:19 pm

Interesting… I don’t recall where you live, but there do seem to be a lot of doctors in the Niagara Region from South Africa. Well, I’m sure they appreciate life in Canada!

#186 Paul Stalmorre on 01.30.16 at 12:28 pm

Garth, primary residential real estate that most people own as their biggest asset or most of their net worth has no capital gains taxes for a spouse and any adult children, heirs.

This means that someone can receive a $1,000,000 house that has cost $200,000 plus say $100,000 in renovations and never pay capital gains taxes on that $700,000 capital gain. This is probably why that poster thought that there were no taxes due upon death of her mother’s investments, RRSP etc.

Also, she may of thought that her mother already paid her taxes every year on her investments. She saw her mother get her father’s RRSP and investments and pay no income taxes or other taxes upon her father’s death.

Spouses don’t pay capital gains taxes on joint accounts, investments and with their spouse’s RRSP’s when their spouse is a beneficiary upon death of a spouse.

You and I know all of this. The point being that family members who moan about tax bills on windfall inheritances shouldn’t. There are alternatives. — Garth

#187 Gloria Becker on 01.30.16 at 12:58 pm

My mother has given all her bell stock worth $200,000 to 4 of her favorite charities over the last 2 years.

My point was Canadians think that there are no taxes in Canada when someone dies and passes on something to their children or other family members, relatives.

This is not true at all. I am pretty sure that I am not the only one surprised by this now. By the way, a million dollars or $1.13 million may seem like alot of money these days in 2016 but it is not once you factor in inflation, cost of living, raising kids and all the taxes paid year in and year out.

I know people believe the grass looks greener on the other side but it is not that green as you think.

#188 Little Dipper on 01.30.16 at 1:01 pm

Garth,

There’s a big difference between doctors who operate their own REAL small businesses (e.g. family doctors who must rent a space for their clinic and pay their receptionists, etc.) and doctors who are small businesses in name only. My uncle belongs to the second category: his “business” is nothing more than a tax dodge. In reality, he is a senior radiologist working for a major hospital. On paper, his “business” provides services to the hospital. This allows him, among other things, to “hire” family members, in an effort to pay less tax on his approximately $600,000 per year salary. This is the sort of thing that Morneau should be cracking down on.

#189 developer turned landlord on 01.30.16 at 1:19 pm

look at just one developer in Vancouver, Bosa which is now turning to renting three of their sites. rental is hot in vancouver. one bedroom downtown can go for $2000

http://bosa4rent.com/?page=2

#190 NTH on 01.30.16 at 1:21 pm

#146 Leslie on 01.30.16 at 12:17 am

**
Oh freedom first, you’re my kind of man. You’ve got that rough edge I like in a guy.

Love,
Leslie

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

Ha Leslie!
I don’t usually read ff posts, he’s so dreadfully boring, would have missed that gentlemanly FU…

He must not realize that the vast majority of women he encounters just roll their eyes and snicker at him behind his back both here on this blog and in his real life.
(Oh Yes, they most definitely do ff).

NTH
Not Tonight Honey
Ps. Thanks Dean

#191 Ogopogo on 01.30.16 at 1:22 pm

Meanwhile, in the delusional Okanagan…

Everything that’s wrong with Kelowna real estate can be summed up in the figure of this sad clown pumping local bricks and mortar even as markets cool almost everywhere else in our beloved frozen tundra called Canada:

http://www.castanet.net/edition/news-st … htm#157331

Garth exposed this fraudster two years ago. That anyone would use con man Hazzi as a realtor says a lot about people’s average intelligence:

http://www.greaterfool.ca/2013/01/17/brilliant/

P.S. I’ve also posted this comment on a Castanet thread started by a realturd: http://forums.castanet.net/viewtopic.php?f=23&t=66047&p=1978644#p1978644

#192 WUL on 01.30.16 at 1:27 pm

SWL1976

Your advice that my son the apprentice use the layoff and downturn period to complete some of the necessary schooling is sound and appreciated.

You see, knowing nothing about skilled trades training and having been educated to the point of being useless, I never would have thought about it.

Cheers, and enjoy the heat wave up here in the Taiga.

#193 Nick on 01.30.16 at 1:37 pm

Hi Garth,

I am an Engineering scientist (PhD, University of Toronto, 2002) who regularly reads your blog. I moved to Florida in 2006 and then to California in 2011. It gives me perspective when I read about real estate in Canada and compare it to ares I know in US. For comparison to this Vancouver home, here is a listing that my real estate lady in Palm Beach (FL) sent me yesterday:

http://www.flexmls.com/link.html?17sopsqkm13g,15,1

Over 7000 Sq.ft on 2.7 acres of land in a prime neighborhood.

Cheers,
———-

PRIME neighborhood? It’s in Florida bordering a swamp. For $2 million I’d go for a 2 bed in Manhattan. Location, location, location.

#194 Nick on 01.30.16 at 1:40 pm

Regarding whining Doctors. Be aware…. you can easily be replaced with cheaper immigrants (ie. Early nineties many South African and Eastern European doctors immigrated to Canada). Then there’s the continuing technological and diagnostic revolution, in twenty years we’ll have robotic docs. Enjoy the fat hospital pay checks while they last, you are an endangered species.

#195 For those about to flop... on 01.30.16 at 1:51 pm

I know a lot of people talk about market manipulation on this blog ,but with all the doom and gloom on the Canadian front this month I was surprised when I looked at my portfolio last night that so far this year my Canadian equities had faired better than my U .S counterparts.
Just goes to show how spreading it around is the best way in turbulent times,and as the boss says never exit an asset class.
My financial advisor said I had come a long way in the last year,so I want to thank the boss and the guys and gals on here that have helped me out.
Good things happen when you talk TO someone as opposed to AT someone.

M41BC

#196 TurnerNation on 01.30.16 at 2:04 pm

200th? The only metric I judge myself on is size and rate of return on balanced portfolio.

I don’t want to be working for someone when I’m 55-60. In fact I cannot.
Who’d hire me then at my salary level and wisdom?
A young and quicker and more obedient person will do it.
If you haven’t noticed the next trend: androgenic trans humanism. Man and machine as one.

Facebook is launching more reaction buttons to ‘like’. Don’t think react.

The few times I travel outside Toronto’s downtown core where I live work and party I see my culture increasingly irrelevant. Who will listen to my colourfull and practical yarns? Not millenial bosses of the future.

Signed, (WUP) Washed Up Wasp

#197 BS on 01.30.16 at 2:05 pm

I wonder how many of these people who are shocked at the taxes due during an inheritance process for parents RRSPs or capital gains voted for T2 and the reduced TFSA? Capital gains in parents TFSA would not be taxed upon death. Plus with the new tax bracket T2 created the government will skim a little more of that fat inheritance. Many will be hit with a larger tax bill in the future even if they can’t afford to contribute to a TFSA or are in the $220K income bracket.

#198 TurnerNation on 01.30.16 at 2:07 pm

Smoking man in a few years I’ll be joining at Senica maybe. Listening to classic rock cover bands, downing domestic beers and talking with brassy women. The last of a generation. A veritable cultural hotbed.

#199 learnigfromyou on 01.30.16 at 2:11 pm

#127 45north
learningFromYou: I spent my whole life trying to eliminate poor people

Please do not twist my message because of my poor English.

What it really wanted to transmit is somebody who was fighting the poverty the whole life.

#200 45north on 01.30.16 at 2:12 pm

Shared Services is responsible for collapsing 63 federal email programs into a single system, consolidating nearly 500 data centres into seven and streamlining the government’s telecommunications. By 2020, if all goes well, the government will have invested more than $1 billion to modernize a ramshackle electronic infrastructure that is currently vulnerable to hackers and costly to run.

http://ottawacitizen.com/business/local-business/circuit-overload-why-shared-services-canada-is-struggling

the whole vision of a single system is wrong. Email systems are not that hard to run. They’re not that expensive and they’re getting cheaper. I posted before about the old email system at Agriculture Canada. It worked pretty well. Sometimes mail at Brandon Manitoba would be interrupted but nobody cared. It was secure enough. I mean 99% of the traffic was at most somewhat embarrassing. Sort of like if someone physically broke into the building and stole the annual appraisals. Who would bother? The only thing where security was lacking was in the review of the budget. It was lacking in the sense that the people involved did not trust the email system so they had couriers with brief cases strapped to their wrists. The budget itself was guarded and handled with care but the whole process could have been a lot simpler and cheaper if the staff had known a little bit about encryption. Using the old email system.

The appeal of the single system is an appeal to laziness. Laziness. It sounds simpler. It sounds easier to understand. Easier to manage. Easy to say, hard to do.

Not to say there cannot be synergy across similar departments such as Agriculture Canada and Natural Resources but let Revenue Canada look after its own email system. Again lessons learned can be shared across departments by assigning staff to different departments. You don’t need to spend $1.4 billion to do that.

#201 TurnerNation on 01.30.16 at 2:31 pm

#145 MD. You are a cost center. Hockey players drive profit. One star will draw millions to view screens and warm rinks where they each will drop hundreds in tickets and concessions and eyeballs on ads.

Sports are a favourite global profit of the elites. It’s rigged. Plenty of evidence on YouTube. From FIFA to footage of a running back with ball lifting thumb up to opposer who tackles high as he ducks below, to clear touchdown. As a non sports watcher I see it though neutral eyes. Getting each playoff to game 7 is essential.

#202 45north on 01.30.16 at 2:36 pm

learningFromYou: What I really wanted to say is somebody was fighting poverty her whole life.

that’s what you meant, that’s what I read

#203 Whats the big deal on 01.30.16 at 2:40 pm

#145 MD

That’s kind of contradictory comment, because in Canada its not really a free market when it comes to the medical profession. In the states it really is more of a free market. Here in Canada the price of doctors is more controlled by the government when you think about it:

1. Universal Health Care,
2. Restriction on private clinics, hence less doctors coming from different countries to practice medicine.

You can’t compare the hockey market to the medical doctors market in Canada. The hockey league is privately owned league. In the states it is a free market world. Good luck to anyone moving there and adjusting from the cushy Canadian medical system.

If you are saying that doctors will just leave because it is truly a free market here in Canada. The actual reality is that in the states doctors start their own practice or get hired by hospitals or private clinics. You are competing with other private clinics, there is more competition. But the best ones make a lot more, and that’s all that is reported. Some also go bankrupt, but you don’t really hear those stories. You assume more of a risk in the states, because it really is more of a free market.

Re: Doctors didn’t go into medical school to have our profession flooded with new entrants. Sorry it sounds harsh but we live in a free market world. Hockey players get paid as much in a game as we get in a month!

Maybe get nurses to expand their duties. Medical school expansion will not occur. The timeline for education is too long for any changes now. What can be done is to pay doctors fairly (maybe on par with US doctors) so we can keep the ones in Canada from leaving.

#204 Doug Mason on 01.30.16 at 2:49 pm

To BS

I would not be surprised that T2 will make more changes to the TFSA. I can easily see them adding the TFSA income, capital gains and other earnings to be included for GIS, OAS, G.S.T. H.S.T. credit, E.I. and all those that get clawbacked currently using net income.

Another one is putting a possible maximum lifetime cap or maximum limit on TFSA’s per person like RESP’s already have.

They already cease to be tax free when transferred to a beneficiary or successor.

They did not even give it a chance cutting it to $5,500 from $10,000 without even presently the federal budget yet.

#205 Al on 01.30.16 at 2:50 pm

#86 – I agree 100%. It’s the Canadian Medical Association that has a choke-hold on the number of students accepted into Canadian Med Schools and internships. This way they keep their numbers down and wages up. Most of the people arguing for higher wages for Doc are seniors who need their services, regardless of the fact that this will increase deficits to be paid by younger citizens.

#206 crowdedelevatorfartz on 01.30.16 at 3:00 pm

@#188 Never Give Up
“It actually amazes me at how much the Chinese can tolerate!”
+++++++++++++++++++++++++++++++++++

If your including “atrocious driving skills in luxury vehicles” and “higher insurance rates for all” in that statement……….. I’ll agree whole heartedly………

#207 Snowboid on 01.30.16 at 3:08 pm

Forget Vancouver, according to one of the Dukes of Hazzi, Kelowna is hot, hot, hot!

http://www.castanet.net/edition/news-story-157331-1044-.htm#157331

Despite the questionable statements made here, it looks like commercial and residential RE will be busier this year. This is supported by a contractor we know who is booked solid well into the fall.

However, AJ leaves out a few items about RE, like the fact prices still aren’t back to the level from the summer of 2008.

And that all the talk of mega-buck profits from rental properties fail to mention the expenses!

Anyway, have a good laugh…

#208 Rick on 01.30.16 at 4:32 pm

Gloria Becker, Please don’t cry about taxes on a “huge” inheritance. Most of us have had to get our portfolio’s the old fashioned way…. WE EARNED IT!

#209 Shlong Zinger on 01.30.16 at 5:08 pm

Why do people come here on a Saturday?

#210 WUL on 01.30.16 at 5:24 pm

#214 Shlong Zinger on 01.30.16 at 5:08 pm
Why do people come here on a Saturday?
******************************

Never lived in Fort McMurray I take it?

Beats the farmer’s market in January.

#211 Hmmm on 01.30.16 at 5:27 pm

I wonder if these money-obsessed doctors that Garth speaks of have made their reason for pursuing this career known to the interview committee when applying for medical school. Things that make you go hmmmm.

If indeed a significant portion of Canada’s docs are as obsessed with being “successful” as Mr Turner is, and they actually do leave the country in decent numbers, perhaps we should eliminate quotas on medical school so Garth’s chosen people can see for themselves what a so called free market does to their wages.

You know, a security guard could be “successful” and make 220k or more per year too, if security guards had an association that determined quota for licenses. But they don’t, which is why they make minimum wage or within a couple of dollars from it.

Things that make you go hmmm.

What an idiot. — Garth

#212 Hawk on 01.30.16 at 5:56 pm

#169 crowdedelevatorfartz on 01.30.16 at 9:56 am

I am happy that the doctor got a gigantic salary in New England, but really sad that our governments —-(and by extension us)—–paid for his education.

The desease of socialism and communism and constant interference with the forces of the market place will really end up destroying Canada in the end.

I really hope Donald/Ted win and not Bernie or America, will be srewed too.

#213 Steerage Bilge on 01.30.16 at 6:01 pm

#215 WUL on 01.30.16 at 5:24 pm

#214 Shlong Zinger on 01.30.16 at 5:08 pm
Why do people come here on a Saturday?
******************************

Never lived in Fort McMurray I take it?

Beats the farmer’s market in January.

Didn’t need to add January as a qualifier.

#214 Raging Ranter on 01.30.16 at 6:13 pm

For anyone wondering exactly how income splitting works for doctors & others, here is the best explanation I’ve found:

http://www.taxdisputehelp.ca/avoiding-litigation/income-splitting-strategies-with-family-trusts/

And here is the 1998 Supreme Court decision that ruled that the strategy was perfectly legal, because dividends paid to share owners, unlike wages and other income, are not subject to the anti-income splitting provisions of the ITA:

https://scc-csc.lexum.com/scc-csc/scc-csc/en/item/1618/index.do

It will be interesting to see how Trudeau manages to stick-handle around that Supreme Court ruling.

#215 Hmmm on 01.30.16 at 6:19 pm

What an idiot. — Garth

Maybe that’s your opinion, but you know what? My vote counts just as much as yours. And there are many more of me than there are of you. Encouraging my typically non-voting friends and family sent probably about a dozen votes to Trudeau this last election. That’s probably as many votes as all the money handlers in your office have. That’s how democracy works, in exchange for getting a seat at the table, you agree to accept the results of the majority. Trudeau is on his way to doing what he said he was going to do. We may have different points of view on the same situation, and that doesn’t make either of us an idiot.

I’m surprised that you think dishonest debate tactics like framing would work on those intelligent enough to read and understand your blog. Seek it out, even. Come on. Don’t give us The Sun routine with this newspeak where you never say rich or wealthy any more, just “successful”. It might work on the construction workers that read The Sun, but these days you’re addressing a different audience, no? Blogs by their nature have a self-selecting audience.

All I’m saying is be honest and upfront about what you’re really saying, because despite our different political leanings, most of us blog dogs are more or less on the same intellectual level.

Then do not equate a highly-trained doctor who has a valued position improving or saving lives, with a security guard. Arguments like that are idiotic. — Garth

#216 WUL on 01.30.16 at 6:20 pm

Sorry Hon. Cowboy Garth.

Just had to point out that 109 years ago, this month, the Kenora Thistles won the Stanley Cup.

Thanks.

#217 For those about to flop... on 01.30.16 at 6:31 pm

My wife and I have been saving a 1999 bottle of Spanish Crianza for a special occasion.
It turned ou that special occasion was today when my wife went out for a haircut and I couldn’t be bother going to the liquor store!
It’s delicioso!…..probably gonna get strangled when she gets home….at least Global news will have some “real” news!
” And tonight on global news a man was found strangled …”

M41BC

#218 Hmmm on 01.30.16 at 6:40 pm

Then do not equate a highly-trained doctor who has a valued position improving or saving lives, with a security guard. Arguments like that are idiotic. — Garth

I’m surprised you missed my point. In our current system, with a few exceptions, the only way to determine wages or price for services is via supply and demand. Has nothing to do with how “valuable” different services are in any objective, or even emotional sense.

Doctors have built themselves a nice little bubble where supply is tightly controlled by the doctors and only the doctors. Thus, their earnings are higher than what they would be if they were subject to competition from anyone smart enough to do the same schooling they did. That’s why they should be grateful for what they have and not rock the boat with threatening to take down our medical systems due to their lust for more money. Because we as a society can rescind the sweetheart deal they have at any moment. Then we’ll see how much the the holy mar-ket prices life saving medical services at when everyone with the right aptitude can attend medical school.

We see this upheaval happening with medallion-owning taxi drivers, where technological progress has led to a de-facto rescinding of the free-market-isolating deal they had.

We see it with the milk farmers re: TPP.

We will soon see it with doctors too due to technical advances. Google IBM Watson, and count the years. If you take care of your health, you should live long enough to see the doctor disappear to be replaced with a global supercomputer that diagnoses and instructs nurses and other non-MD professionals.

But in the meantime, doctors in Canada should be careful not to rock the boat. Political winds can rescind their deal faster than technology will.

And btw, leave the question of values aside when discussing money. You know damn well the system we have has been designed to be amoral. Not moral, not immoral. Just amoral. You’re not bad because you have money, you’re not good because you don’t. And price has nothing to do with inherent value, just supply vs demand. We see this in Canadian housing more than ever.

And remember the 40 year old security guard might have had a bachelors in bio and didn’t get selected to medical school because the quota, 20 or so odd years ago. Or maybe he showed too much interest in the money during the interview, lol. Don’t discount people like that, don’t judge people by their pocketbooks or their job.

As for my sarcasm, hyperbole and other literary tools, they’re just my unique charm as a wordsmith. Flowery prose, and such. Don’t miss the point I’m trying to make be sure you have an emotional reaction to my writing style. I’m writing just as much for the blog dogs as I am for you. And I think they enjoy a little sass in their soap boxing. As do you, Garth, admit it.

#219 Aboltitsnnips on 01.30.16 at 6:42 pm

Re #212 Snowboid on 01.30.16 at 3:08 pm

AJ Hazzi — what a goof.

He appears to have the selfie down pat. Good for him.

Once Albertan EI and severance packages dry up and Okanagan real estate really crashes, maybe he can aspire to run for office like JT or stroke his ego à la Ben Mulroney.

#220 Big Dipper on 01.30.16 at 6:46 pm

#167 hope & ruin on 01.30.16 at 9:13 am

There is a cloud behind every sunny day! “Hope for ruin” would be a better name for you.
_____________________________________

Oh great. The entire left has officially adopted the strategy of “eyes closed, hope for the best”.

As far as ruin. I’m hoping Trudeau does spend the money and we hold-off a recession until oil prices return. But Nutley isn’t helping that situation. See I’m left-ish.

——————————————–

All you are is confused, and possibly WRP-ish. Rachel has been proven to be a beacon of reason and pragmatism. The foaming-at-the-mouth right hates this. Doesn’t fit their narrative. Four more years in 2019.

#221 Big Dipper on 01.30.16 at 6:56 pm

#193 Little Dipper on 01.30.16 at 1:01 pm

Garth,

There’s a big difference between doctors who operate their own REAL small businesses (e.g. family doctors who must rent a space for their clinic and pay their receptionists, etc.) and doctors who are small businesses in name only.

———————————-

I’m so proud…..

#222 joblo on 01.30.16 at 6:58 pm

Hey crossborder, do tell where in Sask I can generate 17.5% return before tax from renters.
Seem to good to be true.

#223 Vampire Studies GMST 454 on 01.30.16 at 7:19 pm

Garth – good responses to the estate planning posts today but i think blogger “Gloria” needs help of another kind….

#224 Fine Wild Roasted Gonads on 01.30.16 at 8:03 pm

#222 For those about to flop… on 01.30.16 at 6:31 pm

My wife and I have been saving a 1999 bottle of Spanish Crianza for a special occasion.
It turned ou that special occasion was today when my wife went out for a haircut and I couldn’t be bother going to the liquor store!
It’s delicioso!…..probably gonna get strangled when she gets home….at least Global news will have some “real” news!
” And tonight on global news a man was found strangled …”

M41BC

Your gonads are toast after that !!

#225 For those about to flop... on 01.30.16 at 8:20 pm

#229 Fine Wild Roasted Gonads on 01.30.16 at 8:03 pm
#222 For those about to flop… on 01.30.16 at 6:31 pm

My wife and I have been saving a 1999 bottle of Spanish Crianza for a special occasion.
It turned ou that special occasion was today when my wife went out for a haircut and I couldn’t be bother going to the liquor store!
It’s delicioso!…..probably gonna get strangled when she gets home….at least Global news will have some “real” news!
” And tonight on global news a man was found strangled …”

M41BC

Your gonads are toast after that !!

///////////////////////////////
Hey Roastie,and Garth told me the thing to fear was running out of money!

M41BC

#226 BS on 01.30.16 at 8:25 pm

developer turned landlord on 01.30.16 at 1:19 pm

look at just one developer in Vancouver, Bosa which is now turning to renting three of their sites. rental is hot in vancouver. one bedroom downtown can go for $2000

These developers are not renting the places because the are hot or because it makes financial sense. They are doing it because they were granted increased density or reduced development cost levies through the City of Vancouver to rent a portion of the condos they build.

#227 BS on 01.30.16 at 8:35 pm

Big Dipper on 01.30.16 at 6:56 pm
#193 Little Dipper on 01.30.16 at 1:01 pm

Garth,

There’s a big difference between doctors who operate their own REAL small businesses (e.g. family doctors who must rent a space for their clinic and pay their receptionists, etc.) and doctors who are small businesses in name only.

———————————-

I’m so proud…..

If T2 cuts this tax avoidance strategy to doctors the doctors will demand higher pay from the provinces. Radiologists are in high demand and can have a job within a week across the border where they can get cheaper housing, lower taxes, higher salaries and are paid in real dollars not pesos.

If the T2 regime does this it will backfire and leave the provinces holding the bag with not enough doctors and higher pay for the ones they have left.

The hospital recruiters in the US are licking their chops right now. Imagine the commission on landing a radiologist.

How do the left wing ‘tax everyone to death’ nut bars not get this?

#228 Total BS on 01.30.16 at 8:58 pm

Bs

The hospital recruiters in the US are licking their chops right now. Imagine the commission on landing a radiologist.

It’s a global market economy. Stop crying, live with it.
How come you don’t trust the market anymore? Why do you want to social engineer the market, like a commie?

#229 Smoking Man on 01.30.16 at 9:03 pm

#232 BS on 01.30.16 at 8:35 pm
Big Dipper on 01.30.16 at 6:56 pm
#193 Little Dipper on 01.30.16 at 1:01 pm

Garth,

There’s a big difference between doctors who operate their own REAL small businesses (e.g. family doctors who must rent a space for their clinic and pay their receptionists, etc.) and doctors who are small businesses in name only.

———————————-

I’m so proud…..

If T2 cuts this tax avoidance strategy to doctors the doctors will demand higher pay from the provinces. Radiologists are in high demand and can have a job within a week across the border where they can get cheaper housing, lower taxes, higher salaries and are paid in real dollars not pesos.

If the T2 regime does this it will backfire and leave the provinces holding the bag with not enough doctors and higher pay for the ones they have left.

The hospital recruiters in the US are licking their chops right now. Imagine the commission on landing a radiologist.

How do the left wing ‘tax everyone to death’ nut bars not get this?
….

Its called mental illness.

#230 Two-thirds on 01.30.16 at 9:11 pm

Completely unrelated, to be sure, but at McDonald’s today, noticed 2 newly-installed kiosks with big signs reading “order and pay here.” 4 massive screens (1 on each side) and a picture-friendly menu combined with tap-n-pay credit/debit machines can serve 4 customers simultaneously and autonomously.

A month ago, 3 old-fashioned registers at the counter and 2 employees were taking orders. Today, a single register and employee occupy one-quarter of the counter real estate, the rest is now a “pick your order here” area.

An example of when margins come under attack, be it by market participants or government policies, business will fight back by cutting costs, passing the increases to the customer, or both. Or die trying.

Good intentions have unintended consequences. And ultimately, the average salaried chump gets to reap them.

Democracy. I might be seeing my doctor move shop in the near future. But on the bright side, a new medical app on a smartphone might be able to serve me (and hundreds of others) anytime, anywhere, simultaneously and autonomously.

Brave new world. Progress.

Another seniors coffee, please.

#231 WUL on 01.30.16 at 9:41 pm

Breaking News:

Canadian Medical Specialist Migrants Are Swamping Tupelo, Mississippi Clinics.

Link:

There isn’t one.

Sweetist gig ever in Canada. Spare me.

#232 Smoking Man on 01.30.16 at 9:45 pm

#225 Big Dipper on 01.30.16 at 6:46 pm
#167 hope & ruin on 01.30.16 at 9:13 am

There is a cloud behind every sunny day! “Hope for ruin” would be a better name for you.
_____________________________________

Oh great. The entire left has officially adopted the strategy of “eyes closed, hope for the best”.

As far as ruin. I’m hoping Trudeau does spend the money and we hold-off a recession until oil prices return. But Nutley isn’t helping that situation. See I’m left-ish.

——————————————–

All you are is confused, and possibly WRP-ish. Rachel has been proven to be a beacon of reason and pragmatism. The foaming-at-the-mouth right hates this. Doesn’t fit their narrative. Four more years in 2019.
………………………

Big Dipper you got a big mouth. Families in Alberta are getting torn apart and it’s just starting. These are real men, not lotti sipping socialized Urbanite pick shirt girly men.

Friday before Senica I went to a visitation of my former neighbor from my McMansion days, he was savagely beaten to death by a disgruntled former employee last week.
He was charged with First Degree Murder on friday.

Garth no more cat pics please, the killers facebook is cat shit crazy.

My point being this dipper, if you’re feeling frustrated with life, angry for what ever reason, take it out on me. I’m a real Man I can take take. My words will out slay you even with bad grammar and spelling.

But leave Albertans out of this, you have no idea what can be unleashed by saying the things you say.

Those young men who are watching their livelihood and families being torn apart will be looking for justice.

Attitude and inflammatory words such as yours can get innocent people killed.

The guy who killed my old neighbour was a nut job, who lost his livelihood.

Write you MP and tell them. You want Energy east pipe line now.

Can’t believe the arrogance of the Montreal Mayor, sucking on the Alberta oil Teet for transfer payments flips them the bird.

People loss it when they think there is nothing left to lose.

Play nice and have some compassion for those families in Alberta.

#233 Rod Serling's Vancouver listings on 01.30.16 at 9:53 pm

2.4M for that piece of crap!
Vancouver Province story.. Follow the money is right.

and for an additional 2.4M you can snap up the gem on the right and have enough room for a brick palace with some cool concrete pillars.

#234 Gavins Stupid on 01.30.16 at 10:00 pm

Hate me to death gang, but I’m living the dream, by not paying a dime in income tax, CPP or EI deductions to Canada. The EI & CPP deductions were almost 10 grand p/a when I last paid.

I don’t reside in Canada, officially nonresident status, citizenship untouched. It had to be done thoroughly and carefully, but I cut the cord. For over 10 years I have chosen only low tax jurisdictions to work. It’s worked out beautifully, 5 years in Texas, no state tax, low cost of living ( literally everything is 5 times cheaper and salaries are at minimum double).

Now, Thailand, income tax on corporate ex pats is 15% flat, there is no other taxes at all. The cost of living is way cheap, and I go to a beach resort every weekend. A nice meal is $2 and my condo in BKK’s Manhattan is a grand a month, the beach condo is $600, and it’s prime waterfront, white sand for miles, 2 hrs drive from the city.

BTW, the flights from YVR to DFW are chock full of Canadians flooding out of the country. Thailand is expanding so fast that ex pat workers are in high demand and paying huige premiums for expertise. It’s like working in Saudi Arabia these days.

I don’t know why anyone would want to stay in Canada frankly. The misery index is off the charts, so is the cost of living net after the egregious tax regime. Wake up people. If you spent 4 or more years at UNI, you can get out tomorrow and live live live the good life.

PS, the Thai Baht is appreciating year over year against the C$, +38% in 3 years.

#235 NEVER GIVE UP on 01.30.16 at 10:07 pm

#216 Hmmm on 01.30.16 at 5:27 pm

You know, a security guard could be “successful” and make 220k or more per year too, if security guards had an association that determined quota for licenses. But they don’t, which is why they make minimum wage or within a couple of dollars from it.

What an idiot. — Garth
————————————————————-
Garth- He speaks the truth.
Although Doctors are both restricted in the induction process and also the pay process by Medical services plans. They are not really paid too much for the work they do.

There are many many other professions that are all about keeping out competition on their turf.

The most egregious offenders would be Dentists. They cannot undercut their competing dentists on pricing. The tap for incoming dentists is turned on an off at the University level to make damn sure they make all the money the can possibly spend.

Whenever there is a home dentist doing extractions because he had a licence in his home country but not here. Well they put him in Jail and confiscate his equipment. Another example of our Military style justice system designed to protect profits for monopolies.

I could go on … longshoremen, lawyers, car dealers… take your pick. There is no real free enterprise in this country. Just a bunch of protectionist entities that dont want to work too hard.

#236 Smoking Man on 01.30.16 at 10:07 pm

#223 Hmmm on 01.30.16 at 6:40 pm

All the good doctors have already left, we are just left with weirdos now.

Last week when I broke my finger, for two days I was was cool with it, I’ve stopped 100 mile per hour hockey pucks with my face back in the day. This was nothing.

My wife drove me nuts, “I’m not looking at that black and blue finger for another second, So I went to emergency hospital by Serway Gardens.

The shit show I witnessed is worthy of a book. Three doctors with there status symbol around there necks shuffling papers, making weird faces. The whole ER was a disorganized to the point of, it’s got to be on purpose. None is that disorganized.

Three hours after my x-ray Dr wack job called me over to look at the finger and the x-rays. He spent 10 minutes looking at the image on his computer then my finger.

Clearly I saw fracture the second I looked at the screen. But it took him ten minutes to say, look, there is the fracture.

So he says take a seat and I will have it taken care of, it will be quick, some buddy system to the other finger.

He said that it will be quick to a lady sitting next to me an hour ago.

I went back out into the lobby, said to my wife, see told you it wasn’t broken. And we went home.

In this day and age, technology, The stethoscope is merely a status symbol to differentiate nurses and doctors.

#237 Project Nexus Gateway on 01.30.16 at 10:19 pm

Every gov jrsidction will have an intrnt gateway to filter the nws. Almost there, they are working with scial meedia to totally rstrct info getting out to a state, province, prefecture or country.

Those who control this gateway will rule the masses.

#238 Project Nexus Gateway on 01.30.16 at 10:21 pm

And yes, Dr and Dentists make the money because entry into their professions are restricted.

#239 AfterTheHouseSold on 01.30.16 at 10:24 pm

#221 WUL
“…109 years ago…”

Something more current but just as OT.
BR549
https://www.youtube.com/watch?v=CZBiwLrK7Cw

#240 Smoking Man on 01.30.16 at 10:44 pm

#243 Project Nexus Gateway on 01.30.16 at 10:21 pm
And yes, Dr and Dentists make the money because entry into their professions are restricted.
…..

Obviously,

The whole medical industrial complex is just what you say.

If it wasn’t for skilled code smiths building the diagnostic software that make dr’s look good in spite of there bad lattin, . we would still be doing lobotomies.

If I quit drinking, you know the shakes, and was shown how to transplant a heart, maybe 5 times.

I could do it.

If the dude died, Hey read the sign, what’s it say.

Practice.

Next

The Dr practice, makes it kind of hard to sue.

#241 AfterTheHouseSold on 01.30.16 at 10:59 pm

#237 Smoking Man
“Can’t believe the arrogance of the Montreal Mayor, sucking on the Alberta oil teet for transfer payments flips them the bird.”

Good post. The Canada I grew up in, we all pulled together. I am sickened by the ignorance of some comments here, that fail to grasp the severity of the situation that we ALL face with the oil crisis. I for one, take no pleasure in what is happening in Alberta.

#242 Smoking Man on 01.30.16 at 11:01 pm

Just saw this.

#142 Shirley Valentine on 01.29.16 at 11:34 pm
#125 Smoking Man on 01.29.16 at 10:18 pm

Humanity is fkd

For example, it’s Friday night, we are partying on GF and everyone apart from a few are serious as shit.

You have the luxury of hiding behind a fake name, let your hair down dogs, shake a tail.

No creativity, just another day in class, bobbing for an apple and that elusive A on your report card.

Valentine you get a pass. Not that you offer up much litaral creativity, but I got a feeling, your artistry can only be viewed from behind closed doors.


SMOKEY BABE. How can one compete with the soon to be billionaire romance novelist.. courted by famous writers and movie stars who naturally all want to play the smokey man… but there is only one smokey man.. who slays commies and teachers as an after thought while dispensing worldly wisdom… and making millions with alien telepathy

The dance floor at seneca is far too empty.. need to get the smokey beast of a stud up there and see what he’s got… and he can see me strut my animal artistry as the prelude… Stamina .. you’ve got the stamina? Shortness is not good.
….

Wow Sherly

I churp your penmanship and you change tactics.
That was pretty good writing.

If you saw that pic on my blog with Richard, what a life story that guy had. spent the entire afternoon writing notes of that talk.

Tried to buy him beers, even take him to the steak house for a good meal.

Nope he was grateful for water only.

When I shaked his hand good bye, I gave him a wee hug, and slipped two hundred bucks in his jacket pocket.

My waitress approaches after that for a sobriety test.

Told her what I did, and all the subsequent wines were on the house.

He lost his wife five years ago, Vietnam infantry, purple heart.

Never judge a book by its cover dogs.

There is always a story behind the story.

#243 Chris on 01.30.16 at 11:05 pm

So they are selling shacks in Vancouver for north of 2 mil. So what? If you are buying said shacks, that is what you get for wanting to live so close to downtown. One thing that Canada has, that most other countries don’t, is acres and acres and acres (and acres and acres) of dirt cheap land. You can buy 50 acres of waterfront land in Northern Ontario for $119,000.00. Located directly on a pristine, aqua clear lake with total privacy and no one around for miles. Or you can buy a postage stamp lot in Vancouver, with a crap house to boot, for 2.2 mil. What is the difference? One is close to downtown, the other isn’t.

City lots cost a lot, country ones don’t. This is not news.

#244 kommykim on 01.30.16 at 11:15 pm

RE:

#235 Two-thirds on 01.30.16 at 9:11 pm
But on the bright side, a new medical app on a smartphone might be able to serve me (and hundreds of others) anytime, anywhere, simultaneously and autonomously.

A medical APP! What a joke. I can’t believe people swallow this crap.

#245 Freedom First on 01.30.16 at 11:19 pm

Well, I’m not a Doctor. Too lazy and too smart. Grueling years of University and more grueling internships. And then more of the same if you specialize. Then, after all of that, you get to serve the great unwashed, every day of your life. Who think you make too much money. Being a dentist has got to be the worst of all too. No wonder they have such a high rate of addiction and suicide.

I sure am glad we have them though. I am a Boomer, and have all of my own teeth. Love my dentist, she is not only dedicated, but gorgeous too. Thanks Doc. She works hard for the money.

#246 WUL on 01.30.16 at 11:44 pm

#244 AfterTheHouseSold on 01.30.16 at 10:24 pm

Wow!! Keep ’em coming. That is a hot tune.

I was raised on Bluegrass and the Honky Tonk Tradition (way up here in the irrelevant Canadian Tundra). I don’t know what state you live in, but man have you got an ear.

I even listened to “Jake and the Skillet Lickers”.

#247 crowdedelevatorfartz on 01.31.16 at 12:16 am

@#217 Hawk
“am happy that the doctor got a gigantic salary in New England, but really sad that our governments —-(and by extension us)—–paid for his education……”
+++++++++++++++++++++++++++++++++++

Yeah.
The ironic shame of it is.
He wanted to stay in Canada.
But typical govt. Left hand oblivious to the what the Right hand is doing.
One govt (or dept) is grooming potential doctors to be to sign on the dotted line for 4 years of obligatory work while another govt ( or dept) is cutting, cutting cutting.

Oh well. eventually he may move back to Canad after he’s made a wack of dough and wants a quieter life.

#248 Patrick on 01.31.16 at 12:22 am

Re #239 ” salaries in Texas are at minimum double”

I know a high school teacher in San Antonio and she told me that her salary is half of what a high school teacher makes in Ontario ?

#249 Prairieboy43 on 01.31.16 at 1:11 am

Just downloaded my XRAY App. Works great. $3.99.
PB43

#250 Cara on 01.31.16 at 1:25 am

Dear lord, Smoking Man. That “status symbol” around the doctors neck is a stethoscope. They’re used to listen to heart and lung sounds. NURSES also wear and use them.
An emergency room is for just that, “emergencies”. A possible broken finger isn’t one. No doubt painful, unsightly even, but you won’t die. So anything that potentially could kill someone is going to bump you down the list. Sorry, you’re going to wait a while. No, actually, not sorry.
And yes, ER does appear chaotic. Just because you don’t know what’s happening doesn’t mean the staff isn’t doing exactly what they should be. I work in an ER, you’re talking about buddy-taping. Just don’t tape over the joint and it should heal fine.

Things in AB are getting difficult. Business is falling off a cliff, and it’s going to get worse before it gets better.

I really hope that people can hang in there.

#251 hope & ruin on 01.31.16 at 1:31 am

#225 Big Dipper on 01.30.16 at 6:46 pm

All you are is confused, and possibly WRP-ish. Rachel has been proven to be a beacon of reason and pragma
____________________________________

Damn right I’m confused.

Alberta NDP:

A new hole must be dug! (royalty review)
dig said hole
announce no hole was needed (change nothing)
fill back in hole
celebrate(?)

I don’t get why they are patting themselves on the back for this. Maybe you can explain it to me.

So they are celebrating that after many months of deliberations that have arrived at the conclusion that the royalty review and last 6 months were a waste of time? I’m really impressed.

Oh ya. and the energy minister got the chance to learn about the oil industry. Ok, so not a total loss. And you think I’m not optimistic.

#252 Billbob on 01.31.16 at 2:16 am

Boy Ive got a deal for you!
Sunshine coast.
All renovated incl 3 baths, bambo floors through out. Huge kitchen custom solid wood cabinets $30,000!!. You can see the ocean clearly by standing on the back private custom cedar deck (hot tub) out in front the house through the beautiful park SET ON AN PRIVATE ACRE WITH HUGE BEAUTIFUL CEADR TREES. 2 large bay garage!! You can charge your sweet electric car in the garage and drive 3 blocks down town groceries or Starbucks!!Give me $600k and its a steal! Dont believe me?? Ill send you a pic! [email protected]
Vancouver makes me sick! WTF are people thinking Garth?????????!!!!!!!

#253 Future Expatriate on 01.31.16 at 5:31 am

Wow. You could get a place like that in Vegas for $40,000.

That is, if there was anything there that remotely old.

Line up suckers.

#254 Big Dipper on 01.31.16 at 7:14 am

“#237 Smoking Man on 01.30.16 at 9:45 pm ”

“Big Dipper you got a big mouth. Families in Alberta are getting torn apart and it’s just starting. These are real men, not lotti sipping socialized Urbanite pick shirt girly men.”

————————————

You got a lot of gall – being an eastern ignoramus – lecturing people about Alberta. Reminds me of Ralphy’s famous quote about eastern bums and creeps and letting you freeze in the dark. What are you, a bum or a creep? I’ll say both.

The current Alberta disaster is the result of 40 years of post-Lougheed conservative management. Another cause is the Saudis – whose views on women you admire so much – manipulating the price of oil.

As always, the progressives in both Alberta and Canada get to do the clean-up of the manure pile left by the right. Amazingly the conservative blockheads have the hutzpah to blame the left for the disaster.

Forty years of Alta conservative management and suddenly you discover we need pipelines? Socialism got in the way you say? People are wising up in a hurry. Conservatives will be in the political wilderness for decades.

#255 maxx on 01.31.16 at 7:24 am

#24 Only-inflation-to-reduce-debt-burden on 01.29.16 at 6:00 pm

“Canadians are holding onto $75 billion worth of cash… Negative interest rates will be flushing those dollars loose…. Even Japan has gone negative…. Normalizing rates, I don’t think so…. Welcome to the new normal…”

“Flushing those dollars loose”? You wish…..many of those sitting on the lion’s share of that delicious pile needn’t worry at all. They have more than enough for at least one lifetime (the number one point of building wealth). Most are also up to their eyeballs in pensions, some have a job they can keep and tool around with as long as they want and others have small businesses over which they have complete control.
So those dollars may be mothballed until they are desired.
The rich know what they have, remember what it took to acquire it and certainly won’t be “flushing” it any time soon.
Blathering on about negative rates is pure, cheap fear mongering.
Welcome to situational stasis.

#256 Big Dipper on 01.31.16 at 7:30 am

#256 hope & ruin on 01.31.16 at 1:31 am

“I don’t get why they are patting themselves on the back for this. Maybe you can explain it to me”

————————————

Unlike the disastrous review by the conservative Stelmach (remember him?) this one actually introduces a number of improvements.

http://www.theglobeandmail.com/report-on-business/rob-commentary/even-the-naysayers-should-like-albertas-new-royalty-framework/article28466669/

You want Notley to increase the price of oil? Quickly build a pipeline? Or are you just a sore loser? Maybe you should focus your bitching where it belongs.

#257 Big Dipper on 01.31.16 at 7:50 am

#236 WUL on 01.30.16 at 9:41 pm

Breaking News:

Canadian Medical Specialist Migrants Are Swamping Tupelo, Mississippi Clinics.

Link:

There isn’t one.

Sweetist gig ever in Canada. Spare me.

———————————

About 10-15 years ago we went through a phase with “underpaid” doctors looking at the US. Some moved.

Once there, they found out about US insurance:
1) billing and collecting payments from private insurance companies.
2) The cost of US medical malpractice insurance.

Most returned home.

#258 maxx on 01.31.16 at 7:53 am

#33 SunShowers on 01.29.16 at 6:17 pm

Love it.
A truly neat way to deliver on campaign promises, make more people happy (kinda handy for the next round) AND create a better increase in tax flows.

#259 maxx on 01.31.16 at 8:11 am

Why do I keep getting flashes of a futuristic novel entitled: “Hemisphere North Extraction Base” (HNEB), featuring y3 chromosomal drones in a searingly polluted land, formerly known as Canada?

The cream of society had moved on and the circus left town long ago.

#260 George S on 01.31.16 at 8:53 am

comment from a number of posters:

“I thought there were no taxes due when a parent or family member dies and getting that money, property, investments from them.”

Very common misconception. That is why there are estate planners. My father-in-law’s hobby was paying minimal tax. He set up his estate using all the tax reduction techniques that Garth mentions in his comments to people’s posts about the horrors of estate taxes. When his estate was settled there was only a little capital gains tax to pay, not much at all.

From what I see, the problem that most people have in implementing these tax avoidance strategies is that you have to relinquish some control over your fortune and disperse it a little before you die. People tend to become more self centred when they get older and are reluctant to give up absolute control of their fortune and share.

One of the problems with government run things right now is the view that management is universal. That the same management techniques and cost cutting techniques work for everything.

#261 Nick on 01.31.16 at 9:01 am

@257….yea sure Bob, but who wants to live in a rainforest with depressing cloud cover 90% of the time? Plus, no civilization (and those forests are full of ticks with lyme disease). Again, location location location.

#262 IHCTD9 on 01.31.16 at 9:16 am

#240 NEVER GIVE UP on 01.30.16 at 10:07 pm
#216 Hmmm on 01.30.16 at 5:27 pm

You know, a security guard could be “successful” and make 220k or more per year too, if security guards had an association that determined quota for licenses. But they don’t, which is why they make minimum wage or within a couple of dollars from it.

What an idiot. — Garth
————————————————————-
Garth- He speaks the truth.
—————–

I can become a security guard tomorrow, or a doctor in 10 years or so.

Do a thought experiment. Let’s make the doctors compete for work, and import 1 million doctors from other countries into Canada. Effective wage drops to 20.00/hr for a doctor in less than a year.

Who now is going to sign up for 10 years of schooling, and 100k in debt to become a doctor?

Becoming a doctor is not cheap or easy, they absolutely need a good income to justify same. IMHO, they already make too little – I know many high school educated entrepreneurs making way over what a doc pulls in.

#263 crowdedelevatorfartz on 01.31.16 at 9:29 am

@#262 Big Dipper
“About 10-15 years ago we went through a phase with “underpaid” doctors looking at the US. Some moved……

Most returned home.”
+++++++++++++++++++++++++++++++++++

Link?

#264 IHCTD9 on 01.31.16 at 9:29 am

You know, Trudeau is kind of like Smaug. An arrogant douche in love with himself, and everytime he opens his mouth, Billions are incinerated instantly :)

Oh well, next up will be the underground economy, and a multi billion dollar effort to collect 100 million in lost revenue.

I just cancelled my cable subscription – I just don’t need any other form of entertainment!

#265 IHCTD9 on 01.31.16 at 9:34 am

#265 George S on 01.31.16 at 8:53 am
comment from a number of posters:

“I thought there were no taxes due when a parent or family member dies and getting that money, property, investments from them.”

Very common misconception. That is why there are estate planners. My father-in-law’s hobby was paying minimal tax. He set up his estate using all the tax reduction techniques that Garth mentions in his comments to people’s posts about the horrors of estate taxes. When his estate was settled there was only a little capital gains tax to pay, not much at all.

From what I see, the problem that most people have in implementing these tax avoidance strategies is that you have to relinquish some control over your fortune and disperse it a little before you die. People tend to become more self centred when they get older and are reluctant to give up absolute control of their fortune and share.

One of the problems with government run things right now is the view that management is universal. That the same management techniques and cost cutting techniques work for everything.
————-

My gramps did the same, it’s my plan as well. He started liquidating assets (his money came from land) starting in his 80’s. By the time he was 95, he had a little apartment in my aunt/uncle’s basement. When he finally passed at 99, he was totally reliant on his kids an died completely broke (with a smile on his face).

#266 crowdedelevatorfartz on 01.31.16 at 9:41 am

@3235 Two Thirds.

“Completely unrelated, to be sure, but at McDonald’s today, noticed 2 newly-installed kiosks with big signs reading “order and pay here.” 4 massive screens (1 on each side) and a picture-friendly menu combined with tap-n-pay credit/debit machines can serve 4 customers simultaneously and autonomously…..”
+++++++++++++++++++++++++++++++++++

About 6 months ago at a MacDonalds in North Van .
After i had paid for my food and was patiently waiting for my meal I noticed those “self serve” kiosks when a HOMELESS filthy beggar waltzed in and began punching in his order. He paid with a MacDonalds gift card and then proceeded to the counter where upon he was served his food before me……..

Apparently technology can replace you.

Elevator buttons 60 years ago (I actually met the last govt employee elevator operator on the payroll in western Canada about 25 years ago. He worked at Canada Customs in downtown vancouver), bank machines 40 years ago, swipe scanners at grocery stores 5 years ago, and now this…..

Look on the bright side.
No tips.

#267 cd on 01.31.16 at 9:42 am

meanwhile in the detroit suburbs…

$1,445,000 gets you a 5,798 sq ft home

http://www.freep.com/story/money/real-estate/michigan-house-envy/2016/01/30/house-envy-detroit-real-estate-for-sale/79398578/

#268 Chris 11 on 01.31.16 at 10:00 am

Garth’s thesis: blame tactics of real estate agents, low interest rates and a “herd mentality” for high housing prices.

Problem is, this doesn’t work in practice. For example, if you go to the small town of Innisfil, Ontario, you can buy a four bedroom home, with a massive backyard, parking for enough cars to host a medium sized wedding, done up to the bow ties, for around 250K. Same home in Toronto near downtown would be about a billion gazzillion dollars (if you could get past the bully bids and bidding wars). The thesis would be that high interest rates and dishonest real estate agents caused this. If so, then why is the innisfil house so cheap? Is it in the middle of nowhere? Nope, it’s a 10 minute drive to Barrie, Ontario and a 40 minute drive down a large three lane highway to Toronto.

If you sent real estate agents up to Innisfil to stage bidding wars and arrange for bully bids in advance, would the house there sell for a couple of million?

Any government control of housing prices is socialism and probably communism. Families who want houses, can get them for almost nothing in Ontario. If they want to live in downtown Toronto, it is expensive. I say leave the market alone.

#269 buggedout on 01.31.16 at 10:06 am

#239 Gavins Stupid on 01.30.16 at 10:00 pm
Hate me to death gang, but I’m living the dream, by not paying a dime in income tax, CPP or EI deductions to Canada. The EI & CPP deductions were almost 10 grand p/a when I last paid.

I don’t reside in Canada, officially nonresident status, citizenship untouched. It had to be done thoroughly and carefully, but I cut the cord. For over 10 years I have chosen only low tax jurisdictions to work. It’s worked out beautifully, 5 years in Texas, no state tax, low cost of living ( literally everything is 5 times cheaper and salaries are at minimum double).

Now, Thailand, income tax on corporate ex pats is 15% flat, there is no other taxes at all. The cost of living is way cheap, and I go to a beach resort every weekend. A nice meal is $2 and my condo in BKK’s Manhattan is a grand a month, the beach condo is $600, and it’s prime waterfront, white sand for miles, 2 hrs drive from the city.

BTW, the flights from YVR to DFW are chock full of Canadians flooding out of the country. Thailand is expanding so fast that ex pat workers are in high demand and paying huige premiums for expertise. It’s like working in Saudi Arabia these days.

I don’t know why anyone would want to stay in Canada frankly. The misery index is off the charts, so is the cost of living net after the egregious tax regime. Wake up people. If you spent 4 or more years at UNI, you can get out tomorrow and live live live the good life.

PS, the Thai Baht is appreciating year over year against the C$, +38% in 3 years.”

Total load of nonsense…..of course THB appreciated against loonie, it is almost pegged to the USD,the THB also depreciated slightly versus the greenback recently.

Tax of 15% is simply untrue…a quick google search shows that any decent salary is taxed at 30-40%….provide a link to this 15% number you are claiming….

$2 meals are available if you want to spend your life eating at street-side stalls…insects are also less than a buck if that is your thing…

https://c1.staticflickr.com/9/8609/15668221340_74b3a4dcf2_b.jpg

#270 maxx on 01.31.16 at 10:11 am

#63 Former_Canadian_in_LA on 01.29.16 at 7:32 pm

Smart move….very smart.

#271 Zika unknowns on 01.31.16 at 10:15 am

Human to human transmission? – not good but mosquitos can easily spread it.

Asymptomatic? – bad cause undetectable, therefore spreads.

Latent? – ugly cause female can cause birth defects after months or years of being affected. Unintended consequence is Population control.

Consequence ? Irresponsible Parents to blame if they have kids with this warning out there?

#272 crowdedelevatorfartz on 01.31.16 at 10:43 am

@#239 Gavins Stupid

Hows that muslim insurgency going in southern Thailand?

http://www.google.ca/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=3&cad=rja&uact=8&sqi=2&ved=0ahUKEwjCw9H9sdTKAhUX-mMKHcsDBxkQFggqMAI&url=http%3A%2F%2Fwww.dw.com%2Fen%2Fa-look-at-southern-thailands-smoldering-insurgency%2Fa-18591878&usg=AFQjCNFmR0Dx7Goim3X70Sqv0dO3SG9EEg&sig2=n9DNq1CZm_IjU4BgGnhwhQ&bvm=bv.113034660,d.cGc

As the song says.

“Hope and Ruin”.

#273 Shirley Valentine on 01.31.16 at 11:39 am

#247 Smoking Man on 01.30.16 at 11:01 pm

Just saw this.

#142 Shirley Valentine on 01.29.16 at 11:34 pm
#125 Smoking Man on 01.29.16 at 10:18 pm

Humanity is fkd

For example, it’s Friday night, we are partying on GF and everyone apart from a few are serious as shit.

You have the luxury of hiding behind a fake name, let your hair down dogs, shake a tail.

No creativity, just another day in class, bobbing for an apple and that elusive A on your report card.

Valentine you get a pass. Not that you offer up much litaral creativity, but I got a feeling, your artistry can only be viewed from behind closed doors.


SMOKEY BABE. How can one compete with the soon to be billionaire romance novelist.. courted by famous writers and movie stars who naturally all want to play the smokey man… but there is only one smokey man.. who slays commies and teachers as an after thought while dispensing worldly wisdom… and making millions with alien telepathy

The dance floor at seneca is far too empty.. need to get the smokey beast of a stud up there and see what he’s got… and he can see me strut my animal artistry as the prelude… Stamina .. you’ve got the stamina? Shortness is not good.
….

Wow Sherly

I churp your penmanship and you change tactics.
That was pretty good writing.

If you saw that pic on my blog with Richard, what a life story that guy had. spent the entire afternoon writing notes of that talk.

Tried to buy him beers, even take him to the steak house for a good meal.

Nope he was grateful for water only.

When I shaked his hand good bye, I gave him a wee hug, and slipped two hundred bucks in his jacket pocket.

My waitress approaches after that for a sobriety test.

Told her what I did, and all the subsequent wines were on the house.

He lost his wife five years ago, Vietnam infantry, purple heart.

Never judge a book by its cover dogs.

There is always a story behind the story.

Good morning Smokey man.. I think the studly beast ain’t fully what he seems…. he is after all a budding fiction writer……. likes to stir the pot….. nothing to lose, everything to gain.. but has a wee bit of a heart it would seem…. great material for the book…

Now this heart surgery as a side gig .. surely at least 10 practices to get it right? ok maybe 8 given the alien guidance

Knocked out teeth, broken fingers – everyone wants a piece of the studly alien beast

#274 Shawn on 01.31.16 at 11:58 am

What $75 billion excess cash

Canadians are holding onto $75 billion worth of cash… Negative interest rates will be flushing those dollars loose….

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Actually most of this cash was created by the banks when someone took out a loan and a deposit=cash was created. Which is a wonderful thing.

At present time there is no such pile of cash sitting in the bank vaults. It is offset by loans that were in turn used to buy (and hence to fund production of) houses, cars and vacations and all manner of things and services desired.

So the $75 billion is already at work in the economy. Same goes for corporate cash, it is not in the office safe. It represents bank deposits which are offset by loans to someone or it represents a federal T-bill and therefore represents money already spent by the government.

Any one individual may have too much cash and can go get it and buy stocks or a house. Where will the cash go? Correct, right back in someone’s bank account.

The population as a whole can only reduce said cash hoard by paying back the loans which destroys a loan and a deposit of equal amounts.

I think CIBC is wrong to suggest that Canadians as a population have too much cash. It is only some individuals that have too much and it offers those with too much debt. Can’t have one without the other. I think CIBC must have meant that certain individuals have too much cash. But it they spend it someone else gets the cash. Must pay off loans to reduce debt. Capich?

One man’s cash is offset by another man (or government’s debt.

Consider that bank deposits are cash to the owner of the depositor and represent a debt of the bank.

As some have pointed out, loans create deposits which are cash. Hence it is only the borrower who can destroy that cash by repaying the loan. (Imagine a $500k loan repaid by $500k cash from a cheque on a another back. Our banking system sees a reduction of a $500k deposit which we call cash and a loan is wiped off the books.

All cash is credit, get over it. Cash is a claims check (think coat check) on goods and services. He who has cash (such as a bank deposit) is owed goods and services by no one in particular but by the economy as a whole.

#275 Jake Hickerson on 01.31.16 at 12:17 pm

IHCTD9, if people try to minimize taxes which can only go so far as there is something called alternative minimum taxes, posters on this blog call them that they are hurting society and cheating.

If they don’t try to minimize taxes and as we have read on this blog much more taxes are paid at death of a family member then many say that people don’t pay enough taxes.

What I got from many of the posters that now found out that they can lose 20%, 30%, 40% of their parents net worth when it is passed on to them is they thought there was no taxes when someone dies.

This is the same concept or uniformed belief that someone said on this blog that people are rich because they don’t pay taxes. This is a myth perpetuated by those that always want to spend and tax more so they can have control of people’s money.

There already are many taxes and higher estate, death taxes in Canada that have to be paid either when someone is alive or has passed away.

By the way, $700,000 to $1,000,000 is not that great these days where very low interest rates, GIC rates, bond yields are, much higher cost of living and even with the performance of the stock markets over the last 15 years or so, annual returns of 5.5% 6.5% on compared to the 1980’s, 1990’s annual returns of 9.5% to 12%.

#276 Jake Hickerson on 01.31.16 at 12:33 pm

Also, just because some family member, son, daughter, nephew, niece, brother, sister did not directly earn the money they receive from their parents and other relatives does not mean that they should lose more of it. Somebody paid alot of taxes already on this money left over after many years and decades.

The current tax laws already tax people’s income and consumption many times. If you really think of it, the same money is taxed about 7,8, 9 times from income taxes to C.P.P., E.I. deductions, gasoline taxes, excise taxes, tobacco, alcohol taxes, property taxes, H.S.T., G.S.T., land transfer taxes, health taxes etc. etc.

These are only personal taxes and not business taxes if someone leaves a business of some type.

People in Canada have a right to be concerned and vocal about there are too many and too much taxes already. They keep adding more and more year after year but there is only one taxpayer in Canada but there are 3 levels of government taxation, Federal, Provincial, Municipal.

More taxes anyone, coming soon, carbon taxes,higher H.S.T., G.S.T. maybe 17%+, higher income taxes, higher business taxes, city land transfer taxes, transit, infrastructure taxes etc.

#277 Shawn on 01.31.16 at 12:35 pm

Doctor wages and competition

#267 IHCTD9 on 01.31.16 at 9:16 am

Do a thought experiment. Let’s make the doctors compete for work, and import 1 million doctors from other countries into Canada. Effective wage drops to 20.00/hr for a doctor in less than a year.

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It won’t work because there are no such million doctors waiting to copme to Canada

But Adam Smith (of 1776) advised that whatever a country could import cheaper than it could provide in the home market it should import with the exception that a country needed to maintain ships and sailors that could be called on for defence and a country should not suddenly import a good or service if far topo many people would be thrown out of work.

Generally Adam Smith was very much in favor of free trade and the free movement of goods without tariffs (I don’t recall what he said about immigration)

#278 BS on 01.31.16 at 1:06 pm

Big Dipper: The current Alberta disaster is the result of 40 years of post-Lougheed conservative management. Another cause is the Saudis – whose views on women you admire so much – manipulating the price of oil.

Now the NDP are in power they should be able to fix everything, right? Looks like their plan so far other than talk is the exact same plan the Conservatives had. What happened to the big royalty increases they promised? The only problem is that NDP label sends investment capital fleeing so there will be a different result even if they keep the Conservative policies. The NDP will be one and done in Alberta as usual.

The Saudis are manipulating the price of oil? Actually they are doing the opposite by not cutting production.

#279 Ex-Liberal MD on 01.31.16 at 2:08 pm

Garth if you need a good family doctor send me an email. Portfolio doing OK applying your principles so far. Maybe we could barter?

#280 S.Bby on 01.31.16 at 4:48 pm

#271 Fartz
I remember in the 1960’s downtown Vancouver Hudson’s Bay had the best looking female elevator operators. They always hired young pretty women in their early 20’s to run the cars. Vancouver was a different city back then.

#281 Chris Fheller on 01.31.16 at 4:49 pm

I thought life insurance proceeds and death benefits from an insurance product was tax free in Canada.

This means that life insurance paid out will be taxed like capital gains and other investments

This is why I can see why people think there are no taxes paid when a spouse, parent, brother, sister etc. passes away and leaves their family something.

#282 Ashley Hoober on 01.31.16 at 11:52 pm

This is incredible, I had to double check that listing price. Here in Saskatchewan 2 million dollars would get you a small city or a sports team! You get the house included, HA! Keep it up Garth!

Ashley

#283 Zombie This Morning on 02.01.16 at 9:34 am

I can provide my professional opinion on homes in Toronto….They’re JUNK! Everything needs to be replaced by year 10 as every component has or is in the process of failing. They are fibreboard assemblies with leaky building envelopes drenched in EMF and EMR radiation while trapping families in an unhealthy environment. More than 50% are sick homes!

I don’t know why anyone would buy a “HOME” in the GTA at incredibly stupid prices.

#284 Zombie This Morning on 02.01.16 at 9:38 am

Correction:

I should have said “More than 75% of homes in the GTA are considered sick homes”