The crunch

1PLANNING

If you think a dank economy, job stress, oilageddon and stupid house prices make your life a challenge, imagine if you were a bank. Like with 1,200 branches and 74,000 employees. Plus millions of investors who expect your dividends to (like me) swell routinely.

Given their exposure to (a) energy and (b) your debt load, the banks are a tad nervous these days. A 20% drop in their share values doesn’t help much. And so Bay Street’s fighting back after seven years of handing out money to anyone with a pulse. More on that in a moment.

First, let me bring Alan into the conversation. By all measures, he’s a successful dude. Big cheese at a national corporation headquartered in Toronto. Income of $350,000. Net worth almost $900,000 (all liquid – he rents). Four kids, fortyish, insignificant debt (a car loan, mostly), stable job, over 25 years as a customer at a major bank that will go unnamed (but it’s green).

“Here is my recent experience,” he tells me. “I have two small, unsecured lines of credit with TD Bank ($15K each) dating to my days as a student in the early 90s.  I’ve had the Canada Trust LOC for 26 years and the TD LOC for 22 years.  They are rarely utilized, but I kept them as a backup.

“I approached the bank to consolidate the two lines and the total increase to $40K.  I was also hoping to negotiate a better rate.  A week later I was shocked when a TD rep called me back to let me know that my request was declined – because I was living abroad for 6 years and haven’t displayed enough income in Canada since moving back in 2014.  I reminded the young fella about my impeccable credit history, 26 year banking history with TD, strong liquid personal net worth and average income of $300k over the last 7 years.  I was staggered. “

Us, too, Alan. Weasels. Don’t they shower mortgages on moisters without any savings who want to buy condos with huge odds  of devaluing like miserable Kias? He continues…

“I turned the tables and indicated we were house shopping and looking to buy a $2MM home with 80% financing.  The TD rep could barely contain his excitement at the thought of landing a $1.6MM mortgage and winning employee of the month and getting a pat on the head for enslaving another poor slob.  He went to explain I would easily qualify for the mortgage based on my credit profile, income, down payment and net worth.  I wanted to string him along a little longer, but I was flabbergasted by the hypocrisy of his about face.  I asked him to explain how a $40K unsecured LOC is riskier than a $1.6MM mortgage.  His only response was that the mortgage was fully secured and real estate doesn’t lose value.  At this point, I politely invited him to have sex with himself and explained how ridiculous this sounded.  Obviously, this young fella never lived through the high rate environment of the 80s and the real estate melt down in the 90s.

“After this call I was so angry that I was going to email various TD executives to express my dismay, etc.  But then I reflected on what just happened and remembered reading about the ticking time bomb of unsecured lines of credit within the Canadian banks.  It became crystal clear to me that TD bank wants to get rid of unsecured personal lines of credit.”

A telling tale, for sure. But it gets worse. Last week our executive blog dog received two letters from the bank telling him that effective Monday his loan rate will move from prime +3% to prime +6%. Yep, that’s a withering 8.7% to use the unsecured line, when his high-interest savings account is paying 0.55%.

Says Alan: “HOLY $hitballs! It won’t impact me at all because I won’t use the LOCs, but what about the hordes of debt slaves out there that are using their LOCs to make mortgage payments, credit card payments etc. This is very scary.”

You bet. Given the insane price of real estate in Van and the GTA, for example, subprime lending is now the fastest growing segment of the mortgage market – people borrowing at high rates, often double digit, to secure the down payment needed on a CMHC-ineligible property listed over a million. Likewise, moisters routinely use credit cards for the 5% needed to secure a condo, then make the minimum monthly payment (which means it never gets paid off). And ‘traditional’ household debt – the kind actually measured, as opposed to revolving and subprime loans, sits at an historic high of 171% of income. Those with 400% and 500% debt-to-income ratios have exploded in numbers.

Currently Canadians have about $280 billion in outstanding personal lines of credit (Al’s two don’t count because they’re not extended). This equals 60% of non-mortgage debt, and virtually all of it sits on the books of the Big Five chartered banks. A substantial amount is like Alan’s – unsecured. In other words, these are lines backed by the credit worthiness of a customer (based on income and assets), and not by a claim upon the title to a hunk of property.

Bankers, as you know, are astute, with finely honed defensive instincts and well-tuned blood funnels. Banks have been relentlessly profitable in good times and bad, regularly upping dividends even when that pass-through to shareholders means less overhead (called ‘employees’) and lousy client relations (like Alan). Bankers know consumers are hitting the wall now and real estate’s hitting the ceiling. Meanwhile consistently low rates have squeezed loan margins, and 2016 looks like it will deliver even worse conditions.

The bottom line: substantially higher borrowing costs, whatever the Bank of Canada decides. LOC rate-hike letters will be going out by the truckload. Unsecured lines will be squished. Demand loans called. In every way possible, risk will be contained at the same time bank expenses are pared.

As for the offer to give Al a $1.6 million mortgage while denying his $40,000 line, well, draw your own conclusions. Invest accordingly.

305 comments ↓

#1 Tester on 02.10.16 at 5:54 pm

First?

#2 salonist on 02.10.16 at 5:57 pm

sm and his neighbors

https://www.youtube.com/watch?v=7jjme3UMqzg

#3 not 1st on 02.10.16 at 6:02 pm

Dear Allan, being a head of a big company and all, you should have been smart enough to know – surprise you have no assets, at least in the banks eyes.

Banks only care about cash and RE. Thye care about how many cars you have more than stocks. Your stock portfolio is meaningless to them other wise you would have been able to borrow against it for a pathetic little LOC.

A man with a million in RE is a king, a man with a million in paper is a piker. Now you know.

#4 Rick on 02.10.16 at 6:03 pm

First? HAM?? http://www.bnn.ca/News/2016/2/10/National-Bank-says-hot-foreign-money-could-turn-cold.aspx

#5 private the gains, socialize the losses on 02.10.16 at 6:04 pm

Puh-lease…

If this article is a shock to any of the readers, you should all be super dumb.

Haven’t you heard? We live in times where we privatize the gains and socialize the losses.

If housing goes up, banks win.
If housing goes down, government will step in and bail them out.

Besides, Garth, didn’t you say no repeat of 2008?
Therefore, mortgage will be secured by real-estate that won’t crash, so if interest rates go up (pfff… I’ll believe it when I see it), and they can’t pay, no big deal for the banks.

#6 Anthony on 02.10.16 at 6:05 pm

I have an unused $5000 unsecured LOC with the green bank for emergencies, since the rate is 8.5%.

However, the green bank really wants me to use it. They sent me two offers, one expiring Jan and the other March. I can have the interest rate reduced to 2.99% for one year.

No thanks.

#7 JRH on 02.10.16 at 6:05 pm

I’ve a call this week from TD and BMO, not sure what they wanted as I told them I was busy. Sounds like they want to sell some shit !

#8 Zorba on 02.10.16 at 6:07 pm

First, finally

#9 Kelly on 02.10.16 at 6:07 pm

I’ll back that…. My MBNA account (also TD owned) has been dangling a limit increase that’s pre-approved. When you click on the link it starts in the fine print to talk about your application, not pre-approval. Last time I went through something like this, they (at the time MBNA) realized that upping my account to a $40K limit on my income was a bit dumb. So they cut me down, big time. I’m sure they just want to review my account to cut me down again. Now I’m just trying to stay where I’m at.

#10 S.Bby on 02.10.16 at 6:09 pm

I was looking at bicycles over the weekend at a local bike store and a customer was asking the bike guy if he could finance a purchase. Yes, was the answer. Depending on his credit score the rates will start (START!) at 12.9% on a minimum $1,000 purchase. Meanwhile, I was offered a hefty discount if I paid upfront in full. I said to the salesman that’s a steep finance rate and he replied, “but it’s less than a credit card”.

#11 Doug t on 02.10.16 at 6:10 pm

http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2016/02/09/MS%20negative%20rates.jpg

This is the future that the central banks of the world want – welcome to serfdom

#12 Mr Reality on 02.10.16 at 6:10 pm

As easy money disappears, so too does inflated asset values.

Watch and learn people, the debt addicts are going to get wiped out.

Mr R

#13 Trading Naked on 02.10.16 at 6:10 pm

#183 Smoking Man on 02.10.16 at 9:29 am

Smokey, the testimony as published in MSM made me bemoan my fellow woman for being young, naive, inconsistent, starstruck, fickle, brainwashed by “feminazis” to be “sexually liberated”, etc. etc. I literally put my head in my arms and pounded my desk moaning, “noooooo!!!!”

That was until I read this: http://canadalandshow.com/article/why-did-jian-ghomeshi-keep-lucy-decouteres-letter

Establishing a paper trail for blackmail purposes is mighty, mighty twisted. If that article is true, then Ghomeshi’s accusers are not the first women in history to fall for the classic line: “oh, I’m so sorry, it will never happen again”. That’s got to be worth something.

#14 mellyschu on 02.10.16 at 6:11 pm

FIRST!

#15 milennial falcon on 02.10.16 at 6:14 pm

garth, can you ask Al if he will adopt me?

#16 NTH on 02.10.16 at 6:14 pm

247 AB Boxster on 02.10.16 at 2:16 pm

AB Boxster, I asked you a straightforward question about whether YOU believe ghomeshi hit those women with their consent. Very simple, can you answer a question about what YOU believe? I am not asking you anything other than that with respect to the ghomeshi case.
1. Do you like pretzels, yes or no?
2. Did ghomeshi hit those women with their consent, yes or no?

It’s a rather easy question. You are, of course, not obliged to share your belief. I’m just wondering what YOU believe.
I am mindful this is a financial blog and thus do not wish to promote off topic conduct. I truly just want to know what you believe, that’s it.

Thanks,
Not Tonight Honey

#17 JSS on 02.10.16 at 6:15 pm

RBC, TD, and Scotia are all presenting quarterly results near end of Feb.

It will be interesting to see if they indeed increase dividends.

Any guesses?

#18 mishuko on 02.10.16 at 6:15 pm

What the flying f? I had my line increased in October and shuffled some credit around.

I asked for a loc of more than my salary and was obviously rejected. I still got a big loc that is more than what Alan has. I also have a salary that is literally a fraction of his. I’ll be keeping my eye out for this one to get increased.

Btw garth if you want proof shoot me an email. I’ll show you a screenshot of my account + last pay stub. Uhh maybe not you would laugh for various reasons :(

#19 wallflower on 02.10.16 at 6:15 pm

“It all comes down to the U.S. dollar, say Scotiabank economists, who say in U.S. dollar terms, Vancouver remains affordable to foreign buyers and in fact is a bargain.” [Globe today]
So, are the top banks and bankers saying that it is offshore money that will keep this residential RE market going? “Offshore has your back?”

#20 Andy on 02.10.16 at 6:17 pm

What is most scary about this story to me is that TD continues to want high-ratio mortgages since “real estate does not lose value”. How can this end well when by any logic, Toronto and Vancouver in particular can only lose value going forward? Not sure about those future bank dividends!!!

#21 Shawn on 02.10.16 at 6:18 pm

Two Lines of Credit At TD…

Me too, have two lines totaling $55k that I have had for about 20 years and have used from time to time.

My lines are unsecured.

Mostly I don’t use these lines as I have a secured line elsewhere when needed.

Current interest rate Prime plus 2.5% = 5.2%.

These lines are not interest only, if I use them I pay principal and interest.

I have in front of me an offer from TD. To wit, a 2.99% fixed interest rate for one year. Minimum $2000. Maximum, in my case would appear to be the $30k limit on this line. The amount can be amortised over one to seven years. Note the interest rate would revert to the regular rate (currently 5.2%) after the one year. You have to call in to earmark this borrowing at the lower rate. The offer expires on March 8. I have only very rarely gotten this type of offer from TD.

So, it seems, the banks are still willing to go for unsecured business in some cases.

#22 Randy on 02.10.16 at 6:21 pm

Some Trudeau 1 Nostalgia woud be nice since they don’t teach history in our schools anymore.

They are forecasting that the Trudeau 2 Liberals first term will result in Federal Shortfalls of $90 Billion more Debt for Canada.

#23 Mark on 02.10.16 at 6:23 pm

Ummm what’s a guy with those metrics doing worrying about some measly $40k line of credit and its interest rate?

Heck, if someone with those metrics, who “should” be able to pay off such a line in a few months of work, is poking around for new credit or an extension to credit, is that not, in and of itself, a sign of distress?

If he really has $900k liquid, he really should be looking at a margin account, or some other form of secured credit. Not dorking around looking for an unsecured line.

Lots of those way off the charts-pay-wise jobs in jeopardy as well these days.

The preference for writing mortgages is irrational, but treating a guy with a claimed $900k in liquid assets who is looking for an unsecured line in such a manner is rational.

#24 mike from Mtl on 02.10.16 at 6:24 pm

#5 private the gains, socialize the losses
If housing goes up, banks win.
If housing goes down, government will step in and bail them out.

Besides, Garth, didn’t you say no repeat of 2008?
Therefore, mortgage will be secured by real-estate that won’t crash, so if interest rates go up (pfff… I’ll believe it when I see it), and they can’t pay, no big deal for the banks.
/////////////////////////////////////////////

Yep, much respect to Gartho for tirelessly going on about this subject for years but sadly still yet to be proven. As much as I would think logically this cannot continue, it does.

Besides wasn’t this the ‘soft landing’ the gouv was aiming for? Who knows if it will take even 30 years to get a 50% haircut, by that time it’s a full working generation.

MADE IN JAPAN.

#25 james on 02.10.16 at 6:24 pm

Very interesting. I assume the ‘real estate never goes down’ part was for the benefit of the hapless real estate buyer, while the ‘it is secured’ really means ‘it is backstopped by the taxpayer, so we don’t care if you go broke’.

Canadian banks have had it far too easy for far too long. The CMHC has effectively provided moral hazard in the mortgage market, allowing banks to sit back and make risky loans that bring in guaranteed profits. At the same time, each year they play less and less of a role in providing capital to businesses. That’s one of the major reasons that the Canadian economy isn’t particularly diversified. Try to get a business loan from one… just as hard as an unsecured LOC. A fat mortgage at 9x income? Easy.

#26 james on 02.10.16 at 6:26 pm

#23

“If he really has $900k liquid, he really should be looking at a margin account”

It would be interesting to see where his funds are allocated. It seems to me the unsecured LOC is for emergencies.

After MF Global, one has to be careful with brokerages. One of the main reasons for using banks is to take advantage of government backed deposit insurance for one’s cash.

#27 Mark on 02.10.16 at 6:29 pm

“They are forecasting that the Trudeau 2 Liberals first term will result in Federal Shortfalls of $90 Billion more Debt for Canada.”

Harper ~= $260B in new debt over roughly 10 years in office.

So only $90B in new debt for a 4 or 5-year term for Trudeau actually would be an improvement over the Harper record.

Personally I think it’ll be closer to $200B though as nobody in the political commentary circles is even talking about the $100-$200B the CMHC is going to need yet.

#28 not 1st on 02.10.16 at 6:36 pm

#16 NTH on 02.10.16 at 6:14 pm

Did ghomeshi hit those women with their consent, yes or no?

—-

I am sure he is a true creep, probably guilty but it only matters what can be proven and those women did themselves no favors by chasing after him after he clocked them. In a way it seems like a tacit approval.

How can anyone fall that hard for a 2nd rate radio host on a 3rd rate public network?

#29 nonplused on 02.10.16 at 6:38 pm

I think the reason banks like mortgages better than LOC’s is because they are either insured or at least can be foreclosed, and I don’t think the banks foresee a greater than 20% correction in the market so they would still get most of their money back. Unsecured LOC’s are ticking time bombs in these times and they know it, no better of an asset than credit card debt to them.

#26 James “After MF Global, one has to be careful with brokerages.”

I agree, but RRSP accounts with brokerages should be relatively safe because they are obligated to hold the shares and can’t lend them out. In theory that is also true of cash accounts, but they probably don’t hold any of the shares in your margin account they’ve lent them all to short sellers.

#30 hope & ruin on 02.10.16 at 6:39 pm

So I rushed to check my unsecured LOC. Still at 8%. I’m pretty useless to the banks. Although they keep trying to lure me with various debt options.

They offered to triple my credit card limit last week though. I guess that is how they make their money? I accepted it though.

From what I understand is that it decreases my “credit utilization ratio” and boosts my credit score. Not sure if thats true, I figured the extra room would be useful in case I ever find myself staggering around seneca one night.

#31 Renter's Revenge! on 02.10.16 at 6:40 pm

“If he really has $900k liquid, he really should be looking at a margin account”

If he had a President’s Account with TD Direct Investing, he’d be able to borrow from his margin account at 3.75%.

#32 Rexx Rock on 02.10.16 at 6:43 pm

American funds are shorting Canadian banks big time.They know this Ponzi scheme will end badly.Recession is alive and well outside of Ontario and B.C.Great times shorting Canadian stocks and American stocks.With big profits trading go to Mexico where your dollar is still strong.

#33 Sebee on 02.10.16 at 6:43 pm

Lent is here and I see this blog has given up animal pictures for 40 days. It’s going to be hard. Can the blog go animal free for 40 days? Place your bets!

#34 Renter's Revenge! on 02.10.16 at 6:44 pm

#17 JSS on 02.10.16 at 6:15 pm
“RBC, TD, and Scotia are all presenting quarterly results near end of Feb.

It will be interesting to see if they indeed increase dividends.

Any guesses?”

+6%, +7% and +5%, respectively

#35 Victoria Real Estate Update on 02.10.16 at 6:50 pm

CMHC’s one million dollar mortgage insurance limit is ridiculously high. In the States the limit from Fannie and Freddie is around $400 K. CMHC’s limit was around that number before it was changed to unlimited (and then $1 M) as part of policy changes made to intentionally inflate Canada’s housing bubble.

Then there’s Canada’s ridiculously low 5% minimum down payment (moving slightly higher immediately) which is a lot lower than the 20% downer that’s required in most of the US.

It’s possible to point out more examples that show how loose Canada’s mortgage lending standards are compared to our neighbours to the south.

It’s easy to understand why house prices in Canada are twice as high as in the US – it has everything to do with Canada’s risky and dangerously lax mortgage lending standards.

For decades leading up to the housing bubble era, lending standards were comparable in Canada and the US and so were house prices.

The reason the limit for Freddie and Fannie has been kept at around $400 K and not pushed higher in the US is that American policy makers understand that raising that limit would be risky and it would eventually lead to economic problems. For the same reason, the minimum down payment has been kept at 20% in most areas of the US.

Obviously Freddie and Fannie don’t have precisely the same function as CMHC. What’s important to note is that mortgage insurance in the US is limited to around $400 K vs $ 1 M in Canada. It isn’t necessary to be more specific than that.

All housing bubbles deflate. Canada’s housing bubble has been blown bigger for 16 years. It took only 6 years for the US bubble to inflate.

All Canadian cities have housing bubbles.

Every time mortgage lending standards are lowered more in Canada, risk is increased and it guarantees that house prices will fall even further. This dangerous action effectively lowers the price bottom that will be reached in each Canadian city. Remember that in the US those states with the biggest price run-ups saw house prices fall back to pre-bubble levels (2000).

Allowing 100% of rental income to be considered as income for mortgages moved Canada’s future real estate price bottom even lower.

Dangerous policy changes such as this are what has blown Canada’s housing bubble bigger for the last 16 years.

Prices in every Canadian city will fall and the severity of the correction will stun bankers, policy makers, realtors, etc.

It just isn’t different in Canada.

#36 Randy Randerson on 02.10.16 at 6:51 pm

I have two LOC’s with Scotiabank that require me to make the minimal payment, equal to 3% of outstanding balance, at the end of each month. I’ve been borrowing from it for my investment for the last 2 years, but only within the last 5-6 months have they been hounding me about the minimal payment. Things sure have changed.

#37 Smartalox on 02.10.16 at 6:52 pm

@S.Bby #10:

Looks like there’s an opportunity there for ‘specialty’ lenders plying the 10% to 17% interest range, for financing these types of discretionary purchases.

With banks clamping down on lines of credit, and applications, and credit cards pegged around 19% to 21%, there’s clearly a market for suckers who are poorer than they think.

One of those uber-like

#38 Sideshow Rob on 02.10.16 at 6:52 pm

#268 AfterTheHouseSold

What the hell is going on in this country?!!!

http://www.cbc.ca/news/canada/calgary/bc-throne-speech-alberta-lost-its-focus-1.3442134
—————————————————————-
Best quote I read in the link that you sent.

Becoming the money-laundering capital of China isn’t “diversification,” sweetheart.

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

The other elephant, that was conveniently missed, is the marijuana industry. It’s by far BC’s biggest gdp contributor and all that illegal cash gets laundered straight into real estate. She has some valid points but the hypocrisy nullifies all of them.

#39 Zaporozhe on 02.10.16 at 6:53 pm

This post helps make sense of the full court press the big 5 have undertaken on credit cards fees in the last two years.

22% typically on a no-fee card and increases on every fee. Even the low interest cards, for which there is usually an annual fee, most are over 10%.

Never mind lines of credit, there’s plenty of people who have their plastic racked up.

No wonder TD bought out MBNA and CIBC bought up Citi`s cards. a couple years back. They knew it was coming and some pricing power would help.

#40 DL TINDALL on 02.10.16 at 6:54 pm

The federal government guarantees mortgage through CMHC and receives a premium(which the borrower pays). I’m wondering, Garth, what private insurances would charge as a premium if the government tried to reinsure these mortgages. That is, is CMHC charging a high enough premium given the risk and wouldn’t it be interesting to find out what the free market would think the premiums should be if they were in CMHC’c shoes.

#41 pricedoutfornow on 02.10.16 at 6:57 pm

I agree 100%. I have clients who have tried to get commercial loans or loans for commercial properties, even with 20-40% down, they’ve had numerous big banks decline them. Our economy is nothing but houses, houses, houses. And our government is stupid to encourage this.

#42 old gringo on 02.10.16 at 6:58 pm

Next the banks will ask the govn’t to insure these LOC’s and perhaps all student loans also.
After all money does grow on trees or under printing presses.

#43 Love my Kia on 02.10.16 at 7:09 pm

I can’t help but wonder if for the last 6 months in the markets that many of us are like the proverbial frog that was put in lukewarm water and heated to boiling without even knowing it was cooking.

At least with crashes you know when you are jumping into a hot pot.

#44 Van Isle Renter on 02.10.16 at 7:14 pm

I was chatting to a friend of mine in Cowtown the other day. He was telling me about one of the oil upgraders in AB having to sell oil at $4 a barrel just to get rid of it because they cannot risk shutting the plant down or it may cost many tens of millions to fire it up again. Apparently the operator lost $1.2 billion last year.

And then, today, Husky lays off 500 people. Coincidence? I think not.

#45 common sense on 02.10.16 at 7:20 pm

Holy S#$%BALLS! Is right Alan.

Same said bank always wonders why I won’t use one of their credit cards that they want an annual fee fee…LOL and won’t allow a friend to even store a few Euros in his safety deposit box….

#46 0.55% on 02.10.16 at 7:21 pm

I was recently at one of the big 5 banks I was asked why I don’t have a high interest savings account to keep my spare cash in at 0.55% ( with numerous restrictions on the account) . I replied in quite a loud voice so everyone in the bank could hear me that I can put up to 500k in an online bank and get 3% and anything over that at another online bank for 2.5% ( up to $5 million ) ,thats almost 5-6 times the interest amount you are offering and without the restrictions. Needless to say I was given the laser eye stare. I think I also have burned all of my bridges at the big Green.

#47 Snowboid on 02.10.16 at 7:24 pm

Our local Phoenix bank (Harris) had been pushing both unsecured LOCs and HELOCs to us in the past couple of weeks.

Turns out the unsecured is prime plus 8.25% (currently about 11.75% and the HELOC 5.99% – we said no thanks.

Our Canadian unsecured LOC of $ 15K is 4.7%.

Update from the desert sun…

Record temps this week (low 30s) as we do another price comparison from our local Phoenix supermarket compared to the Kelowna one.

Basket Phoenix in CAD: $ 63.99;
Kelowna same items $ 92.79

1 litre Fuel Phoenix in CAD: $0.55; Kelowna $0.89

Maybe that’s why most snowboids aren’t too concerned about the exchange rate.

#48 Which online bank... on 02.10.16 at 7:25 pm

Which online bank would that be?

#45: ” I replied in quite a loud voice so everyone in the bank could hear me that I can put up to 500k in an online bank and get 3% and anything over that at another online bank for 2.5% ( up to $5 million ) “

#49 HAM from yesterdays thread on 02.10.16 at 7:30 pm

#267 HAM on 02.10.16 at 4:48 pm

”HAM inflows looking to park money anywhere in RE.

Vancouver suburbs now targeted. Surrey home 14763 – 79 Ave sold for $940K. No conditions; its all cash deal Realtor says and buyer is foreign student (considered local buyer he says).

Oh, house sold for 722K five months ago :)

Check on MLS if you don’t believe me.”

—————————————————————
Interesting. Asking price $949,0000. 2015 Assessment $713,000. Sold July 28/15 for $722,000. Prev year assessment $627,000.

Sold for 49.9% over 2014 assessment. This makes no logical sense whatsoever. I would love to investigate that one.

——————————————————————–

No point investigating. Its happening everywhere in Vancouver now. C..R..A is regularly tasked with getting to the bottom of such transactions and then mysteriously taken off the trail.

Needless to say, the proof is right here in this example that Vancouver’s bubble is due to Foreign money inflows on a massive scale. Was told the home was bought in 1 day.

#50 matt on 02.10.16 at 7:30 pm

Wow! almost the exact same story. Same “green” bank, but was my business not personal. I own and operate a 3 man CNC machine shop do almost $500k (gross) a year and have great cash-flow, and we wanted a $70k loan to consolidate two shareholder loans to the business. During the same time I was approached by my land lord about buying the unit we rent. Went to bank for both loan and mortgage at the same time, and we were turned down for the $70k loan but approved for the $480k mortgage. We did neither. Disappointed in Canada… and the last 15 years of government!

Matt

#51 OttawaGuyRenting on 02.10.16 at 7:30 pm

Spoke with my friend the other day.

“I purchased a house for 370K. I plan on flipping it within 5 months for 495K.” (Revealed rate is %5.25 and pumping 20K into house)

Me – “good for you! Sounds like an amazing venture”

Spent 10min looking at houses in said hood… And there is a ton.

I just smile and nod. I really have no idea how someone has the stones for that risk – reward!?

Ottawa? What do the numbers really look like here? Observational glance… A TON of inventory.

TGIHG – thank god I have Garth

#52 Canadian Bank Stock Lover on 02.10.16 at 7:31 pm

Keep buying Canadian Bank Stocks! It’s like the casino’s, they never ever lose!!!!

#53 Re #48 on 02.10.16 at 7:32 pm

EQ and Zag.

#54 For those about to flop... on 02.10.16 at 7:34 pm

I was not going to put in any requests for Valentines Day ,but when I saw on a billboard on the way home that Mark had teamed up with French Connection U.K. for his new fragrance ,I knew I wanted to try it.
STUBBORN FCUK is its name and I’m sure it’s going to do really well.
I was stopped at a red light so after I read the title I looked a little closer and it had a warning.
” Do not apply to much of this product at one time ,women only like a little bit of STUBBORN….applying to much can lead to babble about sales mix ,stating that the Canadian Dollar will soon be back at par and that house prices in Vancouver peaked 2 years ago.Stop using this fragrance if you see any of these symptoms and better still,have a good look at yourself in the mirror.”

M41BC

#55 Kilt on 02.10.16 at 7:36 pm

Strange. My unsecured line of credit is prime + 2%. Its around the 40K mark. My income and savings are beans compared to him. But no one has sent me a letter saying the rate is going up to prime + 6%. And I suspect we do business at the same Green bank. Maybe Alan has done something wrong.

Kilt.

#56 HAM from yesterdays thread on 02.10.16 at 7:38 pm

Many large townhouse builders in Vancouver and new home builders sell the units by word of mouth within the community or at overseas offices.

In one such instance, a few hundred townhomes were sold with 5% down. But the 5% down payment was a PHANTOM down payment that only existed in papers…so the buyer could get a mortgage without any skin in the game. Above mentioned a ge ncy looked into it and mysteriously got stopped in its tracks.

Enough with the gossip and gum-flapping. Provide any evidence of this activity, or go away. — Garth

#57 DON on 02.10.16 at 7:40 pm

The straw that broke the camel’s back?

#58 acdel on 02.10.16 at 7:42 pm

#38 Sideshow Rob
#268 AfterTheHouseSold

What the hell is going on in this country?!!!

http://www.cbc.ca/news/canada/calgary/bc-throne-speech-alberta-lost-its-focus-1.3442134
—————————————————————-
Best quote I read in the link that you sent.

Becoming the money-laundering capital of China isn’t “diversification,” sweetheart.

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

The other elephant, that was conveniently missed, is the marijuana industry. It’s by far BC’s biggest gdp contributor and all that illegal cash gets laundered straight into real estate. She has some valid points but the hypocrisy nullifies all of them.

—————————————————————–
How true! We all know it but it will never be mentioned or acted upon. Soon to be legal, I guess!

We punted the PC’s for a reason, their ineptness for planning ahead may destroy this province (AB); the NDP are in a tough place but not helping matters at all.

But the hypocrisy from B.C., especially from the West Coast in mind-boggling. Ah hell, I will include Southern Quebec and the Toronto regions. Enjoy a carbon free economy!

—————————————————————–
With Garth’s current blog, I am afraid that I will say something against the “Green Line” that may get me into some trouble. I have no respect for that particular Bank as well as the other Charters that are preying on all Canadians with abhorrent fees.
Nothing more to say!

#59 Freddie on 02.10.16 at 7:52 pm

This reminds me of an experience I had with one of the big banks around 1990. (That when there was a major correction in Toronto real estate.) A year or so earlier I had some cash burning a hole in my pocket. I had taken the money out of the equity market and wanted to keep in on the sideline for a while. I put it into a three year GIC. My thinking at the time was borrow against the GIC when I thought it was time to put the money back into equities.

So, that time came. I went into the back and asked for a demand loan for the same amount of the GIC offering the GIC as collateral. The total amount was really quite modest. I was told that the bank was not leading money in the southern Ontario region at that time and that he would need to go downtown for approval. I got the loan, but it took three days to get approved.

I found it funny as it really was a win-win for the bank. If I paid off the loan, they would get my interest. If I defaulted, they would not have to pay the interest on my GIC.

Bank senior execs are lauded for being so smart because?

#60 common sense on 02.10.16 at 7:53 pm

#54 Flopper

I bet that’s the scent that FREEDOM FIRST uses to drive all the women wild. Add that to his winning personality, outrageous net worth, clairvoyant abilities to name but a few (not enough space to list them all) and you truly have a force that Mother Nature is afraid of…

#61 Linda on 02.10.16 at 7:54 pm

Based on the commercial business I deal with, banks have been coming down big time on any lines of credit. They are also inserting clauses that increase the difficulty (hoops that must be jumped through) to cash in a security held on one of those lines. Essentially they want the client to pay the maximum in fees while offering the minimum in security. Banks do not post record profits every quarter by being ‘nice’. Though this time around it looks like they are squeezing the ‘good’ credit customers just as much as the ‘bad’ ones.

#62 HAM from yesterdays thread on 02.10.16 at 7:54 pm

Enough with the gossip and gum-flapping. Provide any evidence of this activity, or go away. — Garth

Yeah right. And get blacklisted by the ….

worked out well for other whistleblowers…

Great. Gossip-monger plus coward. — Garth

#63 Little Dipper on 02.10.16 at 7:57 pm

Not really sure why anyone would want an unsecured line of credit when you can get a better rate with your credit card: a few years ago, I got a call from MBNA Canada. I told the caller that unless she was calling to offer me an interest rate reduction, that I wasn’t interested. She said, “you want an interest rate reduction? Hold on a minute…how’s 10%?” It’s been 10% ever since (no balance on the card: that’s just my standard rate, has been for 5 years).

Last year, when I wanted a new car to get me to my beer league hockey games, I went to the bank to ask about a loan or a line of credit: 12% was the best they could do!

So, I took advantage of a 1 year 0% offer from the credit card, plus a one-time 1% balance transfer fee to my chequeing account of $50, and bought my 2011 Hyundai with 45,000KM on it for $5,000. The card will be paid off in June.

#64 common sense on 02.10.16 at 7:58 pm

Wow…Japan’s stocks down AGAIN another 2.3% on the day.

Think they would like a mulligan on NIRP?

Let’s pray it NEVER comes over here.

#65 Retired Boomer WI on 02.10.16 at 8:00 pm

#54 FOR THOSE ABOUT TO FLOP

Hey, Flopper-

Great post! Had my laugh for the day. Did have to read it twice for effect…

#33 Sebee

The person behind the stall wall isn’t an animal? Maybe not very hairy, but last I knew we humans were still animal. So much for ‘religious observations.’

Now wipe that ash off your forehead…

Observations-

Uneventful day here. Had my monthly meeting with my retirement group. Our little chapter of a national group has had a difficult time getting the newly retired to join our group. Seems this is larger trend with younger people joining most anything that requires time commitment, and a bit of personal cost. Don’t know if this is just Boomer bitching, but we have a total of SEVEN members (under 70) who are active only four under 65.

What gives?

Markets were flat, oil didn’t do much. Yellen opened her mouth the market fell promptly. Cause & effect perhaps?

I still want to see rates raised, slowly, but relentlessly. The economy is already in the shitter, may as well make borrowers pay the usual, and customary freight.

Zero rates have done nothing, but expanded credit, not expanded production, nor innovation. Well, that is my view, and I’m sticking to it.

#66 Keith in Calgary on 02.10.16 at 8:02 pm

I don’t have a LOC nor do I want one. I like credit cards though.

I don’t carry any balances but have about $50K available on 3 cards not counting my Amex. They’ll phone me for proof of further funds, but only when I get to $100K worth of charges in 30 days……..heh.

Started being a real prick towards retail merchants now as well. My Amex statement cuts off on the 17th……..so I do all my big ticket purchases, etc, in the next 3-5 days, because I get an interest free loan until the 10th of the second month. Buy in January, pay in March, etc.

Last week I was at a store whic hhsall go unamed and dropped $400 of stuff on the cashier’s coutner along with my card. She said they don’t accept it, and if I had another card, even though the sign was on the door. I said they could keep the merchandise loud enough because I saw the manager nearby. Guess what……they do accept Amex. They are just lying to save 1-2%. if I phone restaurant for a reservation I always ask and if they say no I tell them to forget about it.

Screw ’em.

#67 the Jaguar on 02.10.16 at 8:03 pm

A favourite read of the Jaguar’s is the montly Report on Business Magazine, included with the G&M. This recent issue featured the wisdom on several really smart financial types. The comment that interested me the most was that of Steve Eisman (The Big Short)who when asked about his views on Canada in light of the long real estate bull run had this to say:
‘Canada has ridden the commodity super cycle probably better than anyone else, and the only thing I’m convinced about Canada right now is that credit losses are going to go up. And not just in terms of housing–universally. ‘
Couldn’t agree more based on what I witness everyday. The relentless consumerism that has propelled the economy for the past 25+ years, especially by those who who lived it like a kind of bloodlust and never really experienced a serious financial downturn or job loss in their lives……it will be something to witness.
Most people haven’t got a clue.

#68 45north on 02.10.16 at 8:04 pm

The bottom line: substantially higher borrowing costs, whatever the Bank of Canada decides. LOC rate-hike letters will be going out by the truckload. Unsecured lines will be squished. Demand loans called. In every way possible, risk will be contained at the same time bank expenses are pared.

is that possible? I mean the reason banks are trying to reduce their risks is because they are rising and it’s more expensive to run a bank with rising risk.

#69 Frank on 02.10.16 at 8:09 pm

My emergency fund has overflowed and I now have cash savings = 10% the value of my portfolio. Should I dump them into my balanced portfolio in a lump sum (and risk a ‘bad day’) or make purchases over time with it?

#70 AB Boxster on 02.10.16 at 8:12 pm

#16 NTH on 02.10.16 at 6:14 pm

I’m just wondering what YOU believe.

———————————–
Did you not read my response?
It’s pretty clear what I believe.

I will try to make this a litle simpler for you.

I believe that Ghomeshi may have used some force that the witness did not expect.

Were his actions an assault?
Based upon the evidence given by the witnesses on cross examination I do not believe it was an assault.

(Actually, its pretty clear that they themselves did not consider it as an assault based upon their behaviors)

Whether any of this ‘was an actual assault’ or whether these were actions that could be considered ‘acceptable behaviour’ between willing parties, that will be for the judge to decide.

The issue of consent means nothing.
That you continue to fixate on it is silly.
The issue of whether an assault took place, is all that matters.

Do you have any other questions?

#71 Smoking Man on 02.10.16 at 8:13 pm

#13 Trading Naked on 02.10.16 at 6:10 pm
#183 Smoking Man on 02.10.16 at 9:29 am

Smokey, the testimony as published in MSM made me bemoan my fellow woman for being young, naive, inconsistent, starstruck, fickle, brainwashed by “feminazis” to be “sexually liberated”, etc. etc. I literally put my head in my arms and pounded my desk moaning, “noooooo!!!!”
………………………..

Got to say, you’re a good writer, got a real good visual reading the above trading naked.

Your link, just a wee bit of man bashing I think. But your forgiven.

Seriously very good writing.

#72 John on 02.10.16 at 8:15 pm

I’d be shocked with the Green Bank story except for the fact that all of our family gang got a TD letter inside a statement detailing fee changes coming up March 1st.
a) Non-TD ATM fee Now $1.50 next $2 per hit; b) Fee to cancel an Interac e-Transfer Now $0 next $5; c) Fee to hold a post-dated cheque for deposit in branch Now $0 next $5;
d) TRANSFER FEE OF A TD-TFSA TO ANOTHER FINANCIAL INSTITUTION Now $0 next $75 + tax….

Over to U Garth.. and tie these fees to Al’s shocking revelations…. Hard to believe that the other banking biggies aren’t peddling the same story line.

#73 ANON on 02.10.16 at 8:16 pm

Income of $350,000. Net worth almost $900,000 […] effective Monday his loan rate will move from prime +3% to prime +6%

Is this a trick question?

#74 DJB on 02.10.16 at 8:18 pm

Royal bank did the same to me… They had no troubles increasing my LOC limit but would not budge on the rate. I even showed them the rate CIBC was giving me on a LOC, theirs was 1.5% lower.

I said screw RBC, in 3 minutes I got a $20,000 line from one of the new Fintech Companies at a rate better than Royal. I took the $20k and bought MoGo’s stock with it since the price got beaten down to a twoonie.

#75 Rick on 02.10.16 at 8:19 pm

#35 Victoria Real Estate Update on 02.10.16 at 6:50 pm

“Then there’s Canada’s ridiculously low 5% minimum down payment (moving slightly higher immediately) which is a lot lower than the 20% downer that’s required in most of the US.”

Currently, in the US you can get 100% financing with a VA loan. Also, you can get into a mortgage with as little as 3.5% down.

“It’s possible to point out more examples that show how loose Canada’s mortgage lending standards are compared to our neighbours to the south.”

I know thatnwhen the sub prime bubble burst in the US, there were INTEREST ONLY MORTGAGES, and NINJA loans (No Income, No Job/asset loans); and no verification.

So, it is different in Canada. Over valued? Yes, but nothing compared to the gambling, lying and outright deceit that went on the the US.

#76 For those about to flop... on 02.10.16 at 8:21 pm

#60 common sense on 02.10.16 at 7:53 pm
#54 Flopper

I bet that’s the scent that FREEDOM FIRST uses to drive all the women wild. Add that to his winning personality, outrageous net worth, clairvoyant abilities to name but a few (not enough space to list them all) and you truly have a force that Mother Nature is afraid of…

//////////////////////////////
Freedom First’s fragrance is called SOLO.

M41BC

#77 Oil on 02.10.16 at 8:22 pm

Western Canadian Select price today just hit $12/barrel.

#78 Smoking Man on 02.10.16 at 8:24 pm

As far as Alan.

TD bank is set up for wage earners, open sundays, long hours. Its customers don’t even know when they bump up the rates in the middle of the night.

If you’re making 350k a year why are you not with RBC, they treat the 1% extremely well.

10 Years ago TD pulled a move like that on me, I canceled everything business, personal, USA banking, and trading accounts.

Apparently TD did that to a lot of their high net worth clients.

20 of us all ended up in a focus group downtown, I never do those but I knew the big shots where behind the mirrored glass watching. And I let them have it.

#79 AB Boxster on 02.10.16 at 8:24 pm

The Jolly Green Giant bank just sent new fee schedules for their business accounts.

Business accounts are now required to have a minimum monthly balance of $20K.
If not, you will be pleased to pay service fees of $20 per month (only an 18% fee rise) for the privelege of keeping your money with them.
Negative rates already exist.

Bye Bye Jolly Green Bank.

#80 tundra pete on 02.10.16 at 8:25 pm

Be sure to save your money. As soon as this real estate fustercluck comes unglued, you will be required to bail out CMHC. This will be costly.

On a lighter note it is always heartwarming to hear of a bank thinking they are suffering. I hope that 100% of unsecured credit lines go south on them and they are unable to recover anything.

As far as this zika virus goes, the authorities are mistaken about it not being in Canada. Proof has been found in the previous Conservative government. Most of the M.P.’s and the P.M. were known to have small brains and small heads.

#81 Bottoms_Up on 02.10.16 at 8:26 pm

Yes hitting and choking a woman is assault. Imagine sitting at a restaurant with your family, and the waiter walks up and punches your mom in the side of the head, then turns to your sister and chokes her with two hands.
Disgusting.

RE: TD, they’ve been doing this for years. If you don’t carry a balance on the LoC, they jack the rate in order to get you to close it. Not sure if they are jacking the rates on customers that carry a balance.

#82 Freedom First on 02.10.16 at 8:31 pm

Yes. The Banks want secured loans.

Thanks Garth. Good to hear I’m not alone. I recently got my letter. When I talked to the Bank about it, they told me it is still a very good rate. Then he asked me if there is anything they can do for me. I politely said what Al said. If, financially, I was to get into trouble, that would mean that everyone is screwed.

That being said, owning the banks is always good. But, then again, I like to own everything. With, of course, 0 debt.

#83 Blogbitch on 02.10.16 at 8:33 pm

I learned a long time ago that the Big Green isn’t looking out for the customer. They’re looking out for themselves. When you have credit products with them, they own you. Better instead, to ditch the mortgages and loans. Then, buy bank stock. Then you own them.

You can never, ever be financially free as as long as the bank owns you.

#84 The crunch - Realties.ca on 02.10.16 at 8:33 pm

[…] Source: http://www.greaterfool.ca/2016/02/10/the-crunch/ […]

#85 Smoking Man on 02.10.16 at 8:34 pm

#80 Bottoms_Up on 02.10.16 at 8:26 pm
Yes hitting and choking a woman is assault. Imagine sitting at a restaurant with your family, and the waiter walks up and punches your mom in the side of the head, then turns to your sister and chokes her with two hands.
……………..

He would not make it to my sister, the second he hit my mom he would be looking for his teeth on the ground after my thumbs pushed his eyeballs to the back of his skull.

#86 Don Smith on 02.10.16 at 8:35 pm

Garth, the 2 year Canada bond yield is the lowest on the yield curve at 0.35%.

You keep saying they will not negative but we are getting closer day by day. The 10 year and 30 year are 1.01% and 1.82% at a new lows.

It has been years that interest rates, bond yields were supposed to go up but they never do Garth.

#87 HellandBack on 02.10.16 at 8:37 pm

Garth,
The Green Guys started sending out these letters last summer. My buddy got one that jacked up his $15K unsecured LOC from 6.5 % to 10.5%. Also a 20 year client. He was laid off at the time and didn’t want to draw attention incase they called in the loan. Thankfully he’s back working and plans to change banks very soon. It’s criminal what they are doing and we immediately knew this was a sign major trouble is brewing behind the scenes of this bloated credit bubble.

#88 ff on 02.10.16 at 8:38 pm

Banks create the loan from nothing- they sure as hell don’t want to get paid back in the debt + interest they created. They want physical things- houses, cars, businesses.
Gold Tards- WE RIDE!

#89 Mark on 02.10.16 at 8:40 pm

“TD, they’ve been doing this for years. If you don’t carry a balance on the LoC, they jack the rate in order to get you to close it”

Makes perfect sense. In the business world, banks charge ‘standby’ fees for LOCs to defray the cost of having resources on-hand to fulfill a sudden draw on an otherwise unused LOC. This paradigm really hasn’t flowed down to retail/consumer borrowers, but if a relatively high-cost ULOC is being drawn upon by someone with an alleged $900k net worth, it is a sign that perhaps there is significant distress in that $900k “net worth” valuation. Perhaps its illiquid. Perhaps its value has collapsed, or such $900k has been otherwise encumbered. Garth hasn’t provided more details, but perhaps that $900k is locked up in investments in his brother-in-law’s pizza restaurant chain.

Also, the tendency is for interest rates to rise if the information the bank has on-hand is ‘stale’. Usually people will tell the bank about good things in their life, such as an increased net worth, a better job, etc. But people tend to lay low if things aren’t going so well for them.

#90 common sense on 02.10.16 at 8:40 pm

#76 Flopper

SOLO? I could have sworn it was called HANDY.

#91 Freeman on 02.10.16 at 8:43 pm

If you think most banks have it bad, there are a lot of rumors swirling around that the world’s second largest bank that is a few weeks from doing their ‘Lehman Brothers’ like bankruptcy thing.

The name of the company is Deutsche Bank.

Here in Canada we have our own massive corporation that is about to become history: BOMBARDIER. Soon it will be announced that company is undergoing restructuring under bankruptcy.

According to Analysis, the current probability of bankruptcy is 76% likely.

https://www.macroaxis.com/invest/ratio/BBDB.DE–Probability-Of-Bankruptcy

And Kevin O’Leary, chairman, O’Leary Financial Group thinks that Bombardier is the most poorly managed company in the aerospace industry.

http://www.bnn.ca/News/2015/10/29/Why-Kevin-OLeary-thinks-Bombardier-needs-to-bankrupt.aspx

#92 AB Boxster on 02.10.16 at 8:44 pm

80 Bottoms_Up on 02.10.16 at 8:26 pm

Disgusting

—————————
I’d agree with you, if Ghomeshi had come up to any of these women in a restaurant and done those things.
But that’s not what happened.

Actually perhaps Ghomeshi is the lucky one.
One of the women wrote that she wanted to ‘F his brains out’
Now that would be assault, dontcha think?

#93 Victor V on 02.10.16 at 8:45 pm

#21 Shawn

Same boat. My wife and I each have unsecured LOCs with TD. Have rarely needed to use them but keep them handy.

A while back, we both received the 2.99% special fixed promo and as it happened were in need of cash for a car loan so took the offer since it beat the deakership’s rate as well as TD’s typical rate.

Amortized the loan over a year – the gal at TD was surprised that we didn’t take a longer term given the substantial amount. She likely isn’t used to dealing with blog dogs types ;)

#94 TurnerNation on 02.10.16 at 8:57 pm

This year will bring absolutely hellish social, cultural and economic change to Canadians. Divided we have fallen, in an open air re-education camp. The agents and agenda is in place. Just watch them.

No knock on the door late at night; no your sanctions will come electronically. Try and protest on social media. Lose your career, friends.
Just plug in those earbud headphones and shuffle to work. Those 20 years of education (JK-Uni.) served you well eh?)

I’m not kidding, we’ll be giving the former USSR a run for its money, almost as large land mass.
WUL already is living in the barren Siberian-like area.

#95 Ray Skunk on 02.10.16 at 9:01 pm

#72 John

Well, at least the green bank gave you written notice of their changes this time. Back last year when they increased their fees, they didn’t bother – I learned of the changes from an online forum which Mark may or may not have been banned from.

I went in and pulled the plug. Sorry blog dogs, but I no longer contribute to your plump TD dividends.

#96 45north on 02.10.16 at 9:02 pm

Jaguar: link to Steve Eisman:

http://www.theglobeandmail.com/report-on-business/rob-magazine/invest-like-a-legend-the-skeptic-steve-eisman/article28378668/

Jaguar said: The relentless consumerism that has propelled the economy for the past 25+ years, especially by those who who lived it like a kind of bloodlust and never really experienced a serious financial downturn or job loss in their lives……it will be something to witness. Most people haven’t got a clue.

that got my attention

#97 For those about to flop... on 02.10.16 at 9:07 pm

#180 Danforth on 02.10.16 at 9:22 am
We’re 41 days into the year, and I’m down 10.5%.
Trailing 12 months, down 8.4%

Its not funny anymore!

Sounds like a DIY investor with an unbalanced portfolio. — Garth

////////////////////////////////
Great, now I’m the third worst investor on here after this dude and MF!
MF , you have time on your side. I like your strategy you layed out yesterday to slowly feed your portfolio ,not lumping it in.
I made a similar mistake as you,I had been saving for a condo but I decided that I couldn’t be bothered playing the game so my wife and I changed strategy and loaded up our TFSAs, I was pretty even last year but now I have it maxed out but only 90% is invested so I can buy on the dips.
I don’t regret doing what I did because if the market had soared last year I would have been kicking myself,we are in uncertain times but that does not mean there is not money to be made.
Stay the course ,keep feeding the account and in 25years we will meet up and have laugh how everything turned out o.k.Hope for the best ,plan for the worst.
I don’t make a lot of money but I trust my wife and I before a government of any colour.

M41BC

#98 BS on 02.10.16 at 9:08 pm

Bottoms_Up on 02.10.16 at 8:26 pm

Yes hitting and choking a woman is assault. Imagine sitting at a restaurant with your family, and the waiter walks up and punches your mom in the side of the head, then turns to your sister and chokes her with two hands.
Disgusting.

But you have to finish the story. What if your mom then wrote the waiter an email stating she wanted to have sex with the waiter and your sister followed up her choking by giving the waiter an H-job. Then you may wonder if your mom and sister consented to or at least liked the punching and choking? Some people do like that kind of thing. Reasonable doubt for sure.

#99 Vampire Studies GMST 454 on 02.10.16 at 9:09 pm

50 Matt – pretty standard these days. FIs dont want to finance small business not only because of the paperwork
but mainly because it’s difficult for them to re-po or garnish assets. Bank pulled rug from us 15 years ago. Got money privately. All paid off now, and I can self-finance.

#100 Leo Trollstoy on 02.10.16 at 9:17 pm

doesn’t make sense for Alan to have a $40k unsecured loc. odd. weird.

#101 Leo Trollstoy on 02.10.16 at 9:21 pm

canadas economy collapsed under the watch of the liberals. contributing to this was the collapse of the ndp governed alberta economy. thats what history will report. and the cpc easily swept to power shortly afterwards. cpc all quiet and watching the train wreck. drinkin scotch enjoyin a stoggie lol

#102 Julie K. on 02.10.16 at 9:23 pm

Heard Sleep Country Canada has been researching and test marketing a new innovative line of high end luxury beds.

“Available King and Queen models.

Built on a fire & burglar proof steel foundation (optional earthquake model for B.C. residents only).

A hidden stainless steel zipper along side the 18″ memory foam mattress allows easy access to a premium powder coated Heavy-Duty Chrome Steel Dual 3/4″ Pin Bolt Throw System Safe. Electronic Digital LCD Display. 6 – 8 digit PIN.

Suitable for storing currency, jewelry, hand guns confidential documents and the like.”

They are test marketing the names:

– BedSafe
– MatStuffed
– MoneyMat
– CashKing (or CashQueen)
– BedBanks

Not even joking.

#103 Ronaldo on 02.10.16 at 9:24 pm

#84 Smoking Man

”….he would be looking for his teeth on the ground after my thumbs pushed his eyeballs to the back of his skull.”

Ouch, that would hurt. He’d have a hard time finding is teeth for sure. Needed a chuckle.

#104 TurnerNation on 02.10.16 at 9:24 pm

MY TD unsecured LOC is 7.25% Years ago wanted a small increase (from 10k) from them they said no. Stable job history.
Tried CIBC (my credit card provider) they gave me 20k at drop of hat.
Alan could try that.

Or…put lots into Interactive Brokers – balanced port- and carry a large margin loan. Their rates are less than 2% I think.

#105 Smoking Man on 02.10.16 at 9:25 pm

Freedom First got to had it to you. You saw this coming.

Few years ago #1 got engaged to a lovely girl, they got married, I put up the loot for a big chunk of it.

They moved Halifax, he opened up a new sales office selling security systems. Money started rolling in he sent her to Dalhousie, she needed one for credit for an obedience certificate.

Something happened to her in that six months at university, she went full blown Femanazi. Protests and activism.

She stopped doing shit around the house, he was working 14 hour days. He then got a new Sales jobs with a big multi national us based crop 10 hours a day, at leased now he can cook and do the dishes.

The marriage was in trouble, Dec 14 me and the wife flow out there over xmas to try and help them save it. Not a chance, this was a different person, man hating buttons and posters all over the apartment.

See moved back to Toronto to live with her parents. Took every last dime out of the bank. While in Toronto she got sick, three months later her mom puts her on a plane and sends her back to Halifax.

#1 takes her back in, gets her treatment for MS on his benefits, experimental treatment 80k my son the amazing sales men talk them into giving it to her for free with the promise of good publicity etc.

She gets better, they sort of salvage the marriage for a while, she still doesn’t cook a meal, lift a dish, nothing.

He moves back to Toronto to lead up a new sales team, huge money now. What’s she due, moved all the money from the joint account to her own account. The plan was she would come back after her last treatment in Jun and get a place and start a family.

He asks for the back statements to do the taxes; she tells him where to go. He’s had enough bull shit Boom, Lawyer time.

He’s never doing that again, he’s going the route of Freedom First.

He says no point raising a family in this madness.

This DEC JAN and looking like FEB he’s Number 1 salesman in North America. His corp has offices in every major city in North America.

His wife had it all, the feminazis got to her.

#106 Mark on 02.10.16 at 9:26 pm

“And Kevin O’Leary, chairman, O’Leary Financial Group thinks that Bombardier is the most poorly managed company in the aerospace industry. “

People still listen to O’Leary, the drama seeker? Good grief. Now if you want an example of mismanagement, how many years behind schedule was the Boeing 787? How many billions in over-runs have they already experienced on the KC-46A? Would the company even be around if not for all of its generous (and sometimes allegedly obtained under dubious circumstance) military contracts?

Bombardier went into building the C-Series, in hindsight, undercapitalized. But its an amazing airplane with no meaningful competition. Once it has a few years flying under its belt, and the earliest frames go for their heavy maintenance checks, airline and lessor confidence will improve dramatically.

I think we should be asking ourselves why a perfectly good and reasonably managed aerospace company like Bombardier can’t obtain capital on reasonable terms in Canada, while the government has spent the past decade and a half basically handing the keys to the store to the housing and public sector. And even bailed out GM. If Bombardier does fail, it will be a damning indictment of Canadian economic policy.

#107 George on 02.10.16 at 9:27 pm

Strange. My wife is 30 year old, unemployed teacher and this summer, right before we were leaving for a month long trip to Europe, TD called her and offered a $20k unsecured line of credit. She told me that she’ll talk to me. After she called back TD to accept, they said that actually, they can give her $30k. After reading this, I am even more confused. Are the bank departments even talking to each other?

#108 WUL on 02.10.16 at 9:35 pm

#93 TurnerNation

Slight edit to your concluding sentence.

WUL already is living “the dream” in the barren…

#109 Shamus McFreemantle on 02.10.16 at 9:35 pm

Something isn’t right with your ‘executive blog dogs’ story. I’m self employed with an unsecured LOC of $40,000 and it’s P+2%. As good a yarn is, something on his credit report stinks. I’ve listened to enough BS from people to know that what they tell me about their ability to manage their personal finances and credit history and the facts on the sheet are way too often miles apart. People lie. My opinion, I’m sticking to it.

Now, speaking of liars, lets look at what happens when they get into government. The Trudeau Liberals announced to the world that they would run a small deficit ‘ to fund infrastructure’ , that has turned into at least 100 Billion in new debt in the first mandate says the official reports.

http://news.nationalpost.com/news/canada/canadian-politics/liberals-could-put-canada-on-track-to-run-90-billion-in-deficits-over-first-mandate-bank-study-says

International investors took the hint and ran for the exits. The move has plunged Canada into the worst deficit in history. It began days after the election.

http://business.financialpost.com/investing/investing-pro/why-the-next-recession-could-be-different-and-far-more-dangerous

Trudeau told the world at Davos that Canada was moving away from resources into resourcefulness. Nobody knows what that’s supposed to mean. Singapore is resourceful, it is also a meritocracy, where the smartest people are hired regardless of background, Canada is run by slothful bureaucrats and anti business union lobbies. Canada is no Singapore, not by a long shot.

The new debt , increasing tax burden, and directionless government led by the Trudeau Liberal Insiders are dragging this country from first to last inside of a few months. Can you imagine what the level of starvation will be in a year, two?

#110 Brazil ex-pat on 02.10.16 at 9:36 pm

I like to keep up with what goes on in YVR since I left, and for two days straight…….basically all they are talking about is how the jig is up for foreign buyers now that the Realtard Slimeballs have been caught.

Yeah….going to be a boatload of “I told you so’s” in the next 24 months. A biblical amount.

#111 Smoking Man on 02.10.16 at 9:38 pm

#93 TurnerNation on 02.10.16 at 8:57 pm
This year will bring absolutely hellish social, cultural and economic change to Canadians. Divided we have fallen, in an open air re-education camp. The agents and agenda is in place. Just watch them.

No knock on the door late at night; no your sanctions will come electronically. Try and protest on social media. Lose your career, friends.
Just plug in those earbud headphones and shuffle to work. Those 20 years of education (JK-Uni.) served you well eh?)

I’m not kidding, we’ll be giving the former USSR a run for its money, almost as large land mass.
WUL already is living in the barren Siberian-like area.
……………

So it’s not only me who see’s this shit unfolding, even twitter is hiring cultural warriors.

Not making it up.

https://youtu.be/OAI2SWIvrkc

and this.

http://www.foxnews.com/politics/2016/02/10/city-workers-in-san-diego-barred-from-uttering-biased-term-founding-fathers.html

#112 For those about to flop... on 02.10.16 at 9:45 pm

#89 common sense on 02.10.16 at 8:40 pm
#76 Flopper

SOLO? I could have sworn it was called HANDY.

///////////////////////////
Nah Common ,I’m sure he said it was SOLO.
He said it stood for…

Singular
Outrageous
Laughable
Obfuscate

I think your confused about when he said he single handedly came up with the concept…

M41BC

#113 Panhead on 02.10.16 at 9:47 pm

You can always try Tony Soprano for a loan … probably comparable rates now …

#114 Ontheledge on 02.10.16 at 9:48 pm

The comments section if this blog (of which I must admit I have only just started reading) is absolutely hilarious. And the prose of the writer, Mr. Turner, are genius. Fanning the flames of fear with a quick turn of the word with little meaningful perspective. Opportunity, real opportunity, presents itself very seldom in this short life of ours. Fear of the implosion of real assets, especially overblown fear as is presented here is historically proven to be just that, overblown, and bad advice. Your real estate values are not exaggerated when considered in relation to other countries in the G7, especially when valued in C$. The price of oil (even Canadian standard) will, eventually, recalibrate to a sustainable price (this is when you buy on a diversified basis), get a diversified strategy and accumulate these assets. Your banks are the envy of the world, geographically diversified oligopolies. Buy them. You have at your feet multiple internationally diversified power, infrastructure, industrial companies whose shares distribute yields of 5 to 7% which are increased regularly. Be greedy. With all due respect to Mr. Turner, I must disagree with his insistence on the exclusive use of ETFs. Many of these ‘products’ hold positions in shares you probably don’t want to own. Otherwise they have their utility, to gain exposure, however, I suspect anyone diving deep enough into a blog such as this has the stones to buy some individual companies that will permit some real, meaningful gains.

Returning to my original point, people come to blogs like this to reinforce their beliefs of doom, ultimately robbing themselves of opportunity. Fun to read, fun to be part of the club, but being part of this heard….it’ll cost you…

#115 Randy on 02.10.16 at 9:49 pm

I had a secured LOC on my house. Discovered that I could get a 20% reduction on my Home Insurance if I had no mortgage. Needless to say I paid off my LOC and saved $500 per year.

#116 I am the Babbler on 02.10.16 at 9:54 pm

Anyone that thinks RE in Toronto is in trouble should have their heads examined. Absolutely nothing, short of a financial meltdown, will stop this juggernaut. The BoC and the Feds will do everything in their power to keep RE values up high. Period. Even the loan officer at the bank knows that RE always goes up in TO.

#117 dutch4505 on 02.10.16 at 9:58 pm

same here….the green bank. increased my unsecured loc to prime plus 6.5. limit of 50,000 limited use. no debt, stable six figure income, own two farms clear title, mid 6 figure investments etc. maxed tfsa. moving my accounts to the big blue bank…they have been courting me for years. bye bye green.

#118 45north on 02.10.16 at 9:58 pm

divesting made easy:
https://www.cibc.com/ca/features/diy-investing.html?utrc=D4:250

#119 TCContrarian on 02.10.16 at 10:01 pm

The way I see it is as follows: with a Fractional Reserve Banking system that we’re under, the bank ‘lends’ $10 for every $1 “in reserve” – thus, $9 are ‘created’ out of nothing.
So, in case of default (foreclosure), the bank gets a ‘hard’ asset (real-estate), in exchange for ‘fiat’ currency.
RE values can drop 50-60% and they STILL come out ahead.

Interesting to note – as per my conversations with 2 different Mortgage Brokers – very few even know what “Fractional Reserve Banking” is!
I was thinking that would be like my mechanic not knowing what “internal combustion” engine is…

BTW, I had my LOC rate upped as well a few months ago – from P+3 to P+7.5%. Coincidently (or not), I sold my mortgaged property and paid off all my debts – and thus became a ‘risk’ to the bank (which also has lots of GREEN…LOL)

#120 Prairie oysters for all on 02.10.16 at 10:10 pm

#111 For those about to flop… on 02.10.16 at 9:45 pm
#89 common sense on 02.10.16 at 8:40 pm
#76 Flopper

SOLO? I could have sworn it was called HANDY.

///////////////////////////
Nah Common ,I’m sure he said it was SOLO.
He said it stood for…

Singular
Outrageous
Laughable
Obfuscate

I think your confused about when he said he single handedly came up with the concept…


Surely it would PherX for the self-declared confirmed bachelor.

#121 MF on 02.10.16 at 10:16 pm

#96 For those about to flop… on 02.10.16 at 9:07 pm

All I can say is that I consider it an honor to be part of the top three worst investors on Greaterfool, and it is something I wear with pride.

MF

#122 Nagraj on 02.10.16 at 10:18 pm

THE CRUNCHER HATH COME
A very Canadian melodrama.

Sweet Caroline is helping her mother, Louise, knead bread in their humble Grey County home. KNOCK KNOCKITY KNOCK. Caroline goes to answer the door – but screams, and slams it shut. “Why Caroline dear, whatever . . . ?”
“Oh Mother dear, it’s this awful evil-looking man with a long handlebar moustache, a stovepipe hat, and a cape, and and and he was – makin’ eyes at me!”
“Oh good Lord in Heaven! That’s Ernest McScrooge, our banker! You go right back to the door, open it nicely, apologize for your – intemperate demeanour – and ask the gentleman in.”
“TIME’S UP, Louise, as you know. [To Caroline:]Glad to see you recovered, my pretty.” [Chucks her under the chin.]
“Oh Mr. McScrooge, Sir, please, a few more days and John’ll have the money for you. Please don’t turn us out into the cold! Please! Have a heart! Please!”

TBC

#123 Leo Trollstoy on 02.10.16 at 10:19 pm

O’Leary is right. Bumbardier is junk.

#124 cramar on 02.10.16 at 10:22 pm

Alan’s story is fascinating and scary! Last Nov. I went to said bank to borrow a few grand. I needed a new roof and was about $3k short. Not having much cash (everything invested) and not wanting to sell some investment to get a few K, I sat down with the loan officer.

Getting a LOC against the house is out of the question because of the costs involved. He said I could get a $10k unsecured LOC with just my signature at prime +3%. So I did. I was amazed that there seemed to be no credit check, nor even a question about net worth or assets like house or car, or did I have current debt. Nothing! Signed some papers, walked out with LOC, and few days later borrowed a couple grand. Paid it off before end of Dec. with a few bucks in interest.

If they now raised it to prime plus 6%, it will be the last time I ever use it.

#125 WallOfWorry on 02.10.16 at 10:25 pm

Global systemic risk is finally being covered by mainstream media and ironically Canada and its house horniness pales in comparison to other nations:

http://www.cnbc.com/2016/02/09/goldman-systemic-risks-for-markets-are-stirring.html

http://www.cnbc.com/2016/02/10/kyle-bass-china-banks-may-lose-5-times-us-banks-subprime-losses-in-credit-crisis.html

Look at the bond markets, rising gold prices…but nothing to worry about….the central bankers around the world have it covered.

#126 Fine Wild Roasted Gonads on 02.10.16 at 10:27 pm

#106 George on 02.10.16 at 9:27 pm

Strange. My wife is 30 year old, unemployed teacher and this summer, right before we were leaving for a month long trip to Europe, TD called her and offered a $20k unsecured line of credit. She told me that she’ll talk to me. After she called back TD to accept, they said that actually, they can give her $30k. After reading this, I am even more confused. Are the bank departments even talking to each other?


Have one with RBC… I have had them reduce it down to $10k on three occasions.. every single time they have increased it back up to $25k without ever asking me..

Really weird.. haven’t used it in years

A customer without debt ain’t a customer they are happy with!

#127 Brazil ex-pat on 02.10.16 at 10:39 pm

Trudeau told the world at Davos that Canada was moving away from resources into resourcefulness. Nobody knows what that’s supposed to mean. Singapore is resourceful, it is also a meritocracy, where the smartest people are hired regardless of background, Canada is run by slothful bureaucrats and anti business union lobbies. Canada is no Singapore, not by a long shot.

The new debt , increasing tax burden, and directionless government led by the Trudeau Liberal Insiders are dragging this country from first to last inside of a few months. Can you imagine what the level of starvation will be in a year, two?

+++++++++++++++++++++++++++++++++++

And this my friends is why we left Canada. Brazil is much like Canada govt wise cept it’s warm, the people are much friendlier and the food is awesome and cheap.

#128 Smoking Man on 02.10.16 at 10:47 pm

Interview with KGB guy 30 years ago. Explains how to mind fk a nation.

Incredible.

https://youtu.be/vLqHv0xgOlc

#129 Ace Goodheart on 02.10.16 at 10:48 pm

Looks like it’s almost time to start buying bank stocks again. Haven’t bought any since early 2009 (when the prices started going back up). I am like a kid in a Candy shop this past six months. First it’s REITs going for less than book value, then oil stocks, and now banks. Will the buying opportunities never stop? I love recessions.

#130 rk usa on 02.10.16 at 10:50 pm

oil hits a new 52 week low at 26.80

prick this housing bubble already

#131 NoName on 02.10.16 at 10:53 pm

@
#96 For those about to flop…

There is a dca calculator vs lump based on a past market performance, dca losses to ls 2 out of 3 times. statisticly that will tell you that ther are 66% chances that you are buying it at wrong time every time you do dca.
http://www.moneychimp.com/features/dollar_cost.htm

what you want to do is;
go to university of youtube, and look for some hack job montecarlo simulation, di as a dude tells you, make a spered sheet and eneter any nubers you want
(st deviation (20), average return(8), new money(??), how many years (25-??) and you will get statistical projection/prediction based on your random sample. so basicly you are given number and chances in percents, how likely is that you will have eqvil or more than “that” number based on what you entered.
so that brings me to my point, idealy you want to be 90% sure that if you stay a course of saving you will do ok, vs 66% chances that every time you dca something is wrong timeing and at the end you will have less.

#132 cramar on 02.10.16 at 10:54 pm

On Tuesday night, I watched Part 2 of the program, The Super Rich and Us on TVO. It shows the issue historically, how this came about from the British point of view. Both programs can be viewed here:

http://tvo.org/programs/the-super-rich-and-us

As the Israeli historian Professor Yuval Harari said, “The 21 Century will be the most unequal period in human history.”

The theme of part 2 is that inequality is a business opportunity for the 1% to make money off of the 99%. The interesting part on debt, starts about 18 min to about 20 min.

David Graeber (London School of Economics) says, “What you see during that period [1980s] is a series of fairly intentional government policies which are designed to guarantee most people are in debt. If you have a mortgage you can’t go on strike. So it was quite intentional policy. Get people in debt. It will reduce the amount of industrial action. It will hold down wages. It will control inflation.”

Interviwer: “How important is debt in extracting wealth from us the 99%?”

Graeber: “It is the key to the whole thing.” [Emphasis mine.]

There is another great interview with Harai at about 41:20 to 42:10 on inequality.

When I heard Graeber’s words, I thought of the poor foolish sheeple who have $600k+ mortgages in the GTA and YVR. Sheep ready for slaughter. Nothing changes.

#133 JP on 02.10.16 at 10:55 pm

WTI under $27, Alberta being neutered as we speak :(

#134 Bram on 02.10.16 at 10:58 pm

#114 Randy on 02.10.16 at 9:49 pm
I had a secured LOC on my house. Discovered that I could get a 20% reduction on my Home Insurance if I had no mortgage. Needless to say I paid off my LOC and saved $500 per year.

Huh? You have a $2500,- per year insurance fee?
Are you sure you are not being ripped off?

If I were you I would try an online insurer.
Mine charges less than $70 per month.
And that’s for an expensive east yvr house.
(I used the one with orange/grey logo)

#135 46 and 2 on 02.10.16 at 11:01 pm

Husky oil is trying to sell off ALL Canadian assets.

#136 Victoria Real Estate Update on 02.10.16 at 11:03 pm

# 75 Rick

Canada is basically doing everything that the US did and possibly more in terms of enabling buyers with no money and poor credit to take on mortgages at even higher prices than in the US at its peak.

I’ll do a write-up on this. Garth has gone over the situation with Canada’s subprime loan environment many times. Perhaps you missed all of that.

All CMHC loans are subprime.

Canada has plenty of mortgage fraud, liar loans, etc.

We’ve had 40 year loans, zero down mortgages and some credit unions are allowing close to zero down even today.

As a result of all of this and more, Canada’s housing bubble is much larger than the 2006 US bubble.

#137 Rich Young on 02.10.16 at 11:06 pm

WANT TO LOSE YOUR MIND …. follow this blog and closely follow CALGARY real estate:

Median and Average prices
FEB 2015 435,900 FEB 2016 425,600 -2.36%
FEB 2015 469,990 FEB 2016 471,047 0.22%

So OIL going to a new low it looks like. Dollar stronger so this is a double whammy from the last hit of $26 and change. AND, sales are actually picking up even though listings are still building. Are people cashing out of $1,000,000 homes elsewhere and retiring here? My family wants to buy back into the market but it feels like as soon as we lose patience this mess will crater.

What to do?

#138 For those about to flop... on 02.10.16 at 11:07 pm

#115 NoName on 02.10.16 at 10:53 pm
@
#96 For those about to flop…

There is a dca calculator vs lump based on a past market performance, dca losses to ls 2 out of 3 times. statisticly that will tell you that ther are 66% chances that you are buying it at wrong time every time you do dca.
http://www.moneychimp.com/features/dollar_cost.htm

what you want to do is;
go to university of youtube, and look for some hack job montecarlo simulation, di as a dude tells you, make a spered sheet and eneter any nubers you want
(st deviation (20), average return(8), new money(??), how many years (25-??) and you will get statistical projection/prediction based on your random sample. so basicly you are given number and chances in percents, how likely is that you will have eqvil or more than “that” number based on what you entered.
so that brings me to my point, idealy you want to be 90% sure that if you stay a course of saving you will do ok, vs 66% chances that every time you dca something is wrong timeing and at the end you will have less.

////////////////////
Hey Noname I remember this discussion from before.
Originally I put 35k in my TFSA now I am buying smaller as my limit has been met.
I probably could have invested the 35k more slowly but I pretty much did it all in a month or so because I did not want to procrastinate.
I am an investment hack but I think there is a big difference between buying on a dip and timing the market.
Thanks for trying to help out.

M41BC

#139 Rich Young on 02.10.16 at 11:08 pm

#133 ,, BRAM

Calgary has suffered a huge flood and three huge hail storms in the past 5 years. Insurance is high here.

#140 Rich Young on 02.10.16 at 11:10 pm

#128 ACE

last time they had room to move rates lower and get another debt binge going which helped the banks. Good luck this time with the same strategy! They can’t save us with lower rates this time. JAPANADA

#141 Shawn on 02.10.16 at 11:12 pm

Mark versus Kevin O’Leary (lol)

#105 Mark on 02.10.16 at 9:26 pm said “And Kevin O’Leary, chairman, O’Leary Financial Group thinks that Bombardier is the most poorly managed company in the aerospace industry. “

People still listen to O’Leary, the drama seeker? Good grief. –

****************************************
I have been watching O’Leary for over ten years since he first appeared on BNN (then ROB tv) as “The Investor at Large”).

O’Leary totally called Bombardier and Nortel WAY back as howling dogs.

Bombardier’s total profits from day one back around 1940 probably sums to less than zero. Certainly its book equity total is precisely NEGATIVE $3.675 billion and that neglects to deduct 347 million in pref shares. So the common equity is roughly negative $4 billion at the end of Q3.

Bombardier has been horribly mismanaged by the third generation leader Pierre Beaudoin. Their Board of directors consists almost entirely of family and famous. A celebrity Board. Look it up two past auditor generals of Canada, a past Nortel CEO, A past CEO of Citibank, a past google CFO and no less than five family members.

EVEN after an approximate $3 billion write-off on the C-Series it has stated that it will be selling the planes at a loss for the next four years.

I do love Bombardier’s products. They do their customers a favor by producing great products at a loss. They do their investors no favors.

Bombardier is in such weak shape right now that I suspect the lunch caterer demands cash on delivery.

And who in their right mind would give them a deposit on a plane order without a government guarantee?

Let’s add this to the list of things Mark has been wrong on.

Bombardier is a national embarrassment. It’s sad that so many jobs rest in the hands of such incompetent management. Not to mention pensions.

O’Leary is quite a character but he is extremely sharp witted and he knows how to make money. Yes, he is also an entertainer, But he brings substance to the table.

#142 Tiger1960 on 02.10.16 at 11:17 pm

Garth !
Why are you pumpin the 9 looser!
This guy is dumb !
Why does he need a loc ,just a nother looser, blah
Cause he is a looser , like smoking goof !!!

#143 Retired Boomer WI on 02.10.16 at 11:19 pm

#120 MF

Never fear my young friend. Tis a time yet to buy good companies (or ETF’s or even mutual fund indexes) at a discount. CAN they go down further? Hell yes. We are at 14,900 roughly currently, expect 12,000 should oil hit $20.

Banks and REITS will suffer,too likely. Canadian $$ as well. Could get rather grim for a time.

You could own a house. Would that make you feel ‘better’??

Hey, I started the year at one figure, now about 18 G lighter, but < 3% in total. Would it matter if were 10%?

I'd bitch more, but I know it is NOT forever, just made to make me feel like it is forever…

Wake me when it's over, huh?

#144 Shawn on 02.10.16 at 11:20 pm

Bombardier

Mark states:

I think we should be asking ourselves why a perfectly good and reasonably managed aerospace company like Bombardier can’t obtain capital on reasonable terms in Canada

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

Could it be because they destroyed every dollar of capital that was ever entrusted to them? (See net worth of minus $4 billion).

#145 Balmuto on 02.10.16 at 11:25 pm

I have a CIBC LOC at prime + 3.5%. Had it for years and never bothered to see if I could get a better rate. But seeing as I no longer carry a balance on it I’m not in a hurry to renegotiate. They have upped my limits over the years – I think it started at 12k and now it’s at 46k. Last year they did something interesting – they changed the minimum payment to interest only. So they obviously really want me to use this thing. But I’m thankfully done with needing LOCs for consumption and I would only use one for an investment opportunity. But at that point I would want to make sure I get a much better rate. And even then I would probably want a fixed rate loan rather than the variable rate you get on an LOC. Really, I just see LOCs as a cheaper way to live beyond your means than with credit cards, or more sensibly, a low-cost emergency store of liquidity.

#146 For those about to flop... on 02.10.16 at 11:26 pm

#120 MF on 02.10.16 at 10:16 pm
#96 For those about to flop… on 02.10.16 at 9:07 pm

All I can say is that I consider it an honor to be part of the top three worst investors on Greaterfool, and it is something I wear with pride.MF

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

You are already ahead of a lot of people your age because you understand that you are accountable for you.
Everything gonna be alright little brother.

M41BC

#147 Mark on 02.10.16 at 11:37 pm

“EVEN after an approximate $3 billion write-off on the C-Series it has stated that it will be selling the planes at a loss for the next four years.”

That’s not uncommon in the Aerospace sector. The Boeing 747 took decades to break even. The 787 will as well. As I stated earlier, its unfortunate that they went into the endeavour under-capitalized, but that doesn’t speak to mismanagement. If that’s the definition of mismanagement, than every aircraft builder, over the years, is severely mismanaged under such definition.

Bombardier is in such weak shape right now that I suspect the lunch caterer demands cash on delivery. –

Resorting to hyperbole doesn’t prove your point in the least. And Canada needs more innovative companies like Bombardier willing to bet the farm on class-leading next-generation products. Contrast Bombardier with Nortel, the latter of which severely overcompensated staff at almost all levels, and fell behind severely on product technical leadership with no credible plan to be back in the game. Bombardier’s relative failure is a common-mode problem amongst Canadian manufacturing and R&D — not something that should be ascribed to Bombardier’s management or Board which has engaged in no identifiable defects in management or strategy.

As far as negative book equity, there are many firms in the Canadian economy with negative book equity. With so much investment on the books that has been written down, its not unexpected. But as their asset is proved out in the marketplace, cashflow will take care of the problems. O’Leary is ignorant and apparently not even that good of an investor himself, hence is the last person who should be publicly slaggin Bombardier’s board or management.

#148 presley1000 on 02.10.16 at 11:51 pm

Deja vu feeling reading this blog post. I use CIBC as a secondary bank and my $10K line of credit was revoked about two weeks for reasons that no one at the bank has been able to explain. No warnings. No flags. If maxed out, I would have been able to pay it off with no prob, at any point.

The lead up to discovering what happened was a gong show. Everyone I talked to at CIBC seemed to be a pass-the-buck-to-someone-else-no-clue-idiot. I then decided I was pissed enough to close up my other accounts with them because of the headaches caused.

#149 kommykim on 02.11.16 at 12:03 am

RE:

His only response was that the mortgage was fully secured and real estate doesn’t lose value. At this point, I politely invited him to have sex with himself and explained how ridiculous this sounded.

I wonder if the same [email protected] was the one that called me next. He was really polite and pre-apologized before trying to sell me on getting a line of credit. We should be happy that these guys are still Canadian and are not getting unintelligible calls from India about our bank accounts.

#150 greg cedergren on 02.11.16 at 12:21 am

Sounds like Allan is a huge loser! 300k plus for 7 years and still borrowing??? Gets what he deserves!

#151 self underemployed on 02.11.16 at 12:27 am

Own 2 commercial properties out right.. appraised at about 800k together from the banks. Self employed, 60k. a year income buildings are both cash flow positive if I pull out 65 percent LTV. 3 banks I went to for re financing have made me jump through hoops to maybe give me 40 percent equity. Not to mention environmentals, letters from my lawyer, numerous calls to my acountant… 2 months later and still waiting to hear what the outcome is. Brutal!

#152 Entrepreneur on 02.11.16 at 12:30 am

Right on #80 Bottom_Ups on hitting and choking a woman is an assault, but most importantly, when having sex. Sex used to be a husband/man ownership of a woman and can do whatever he wanted to do in the bedroom but time has changed. Women/people do not want to be treated like raw meat. Women/people have fought for the rights/dignity for decades. Times have changed for woman to speak out about despicable acts.

Valentines is coming soon and love your sweetheart with gentleness. It always win!

#153 Smartalox on 02.11.16 at 12:38 am

So successful people like Alan are asked to pay more for the lines of credit that they don’t use, while KILT with 40G on his line gets to pay prime, plus 2%?

Either the green bank has gone socialist (from each, according to their ability to pay) or they’ve turned predatory in their lending practices.

#154 Van real on 02.11.16 at 1:06 am

Randy #114. A secured line of credit is not considered a mortgage, so you paid it off for no reason.

#155 TRT on 02.11.16 at 1:08 am

On Monday of this week, someone mentioned that the Twitter and Online blogs were aware of a leak that the PPT (Plunge protection team) was given instructions to keep the S&P index above 1850 at all costs until Shanghai has passed one open day.

The proof is in the pudding. Check out the last 3 daily closes:

Mon – 1850
Tues- 1851
Wed – 1850

“But we need more data..” LOL.

Rigged.

#156 Leo Trollstoy on 02.11.16 at 1:19 am

#115 I am the Babbler on 02.10.16 at 9:54 pm

definitely seems that way. seems to be no end to rising toronto re prices

#157 Leo Trollstoy on 02.11.16 at 1:21 am

Let’s add this to the list of things Mark has been wrong on.

list is full. WalMark shud focus on improving job search skills. serious. would be big benefit. his linkedin profile looks terribad. Sadkatoon indeed

#158 and it begins on 02.11.16 at 1:25 am

A financial institution will announce layoffs Thursday after some news leaked in the press today. Usually this type of event on bay street will be followed by unemployment on main st. Wait and pick assets way cheaper in 3-9 months

#159 liquidincalgary on 02.11.16 at 1:29 am

Randy on 02.10.16 at 6:21 pm
Some Trudeau 1 Nostalgia woud be nice since they don’t teach history in our schools anymore.

They are forecasting that the Trudeau 2 Liberals first term will result in Federal Shortfalls of $90 Billion more Debt for Canada.

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

that is the estimated total deficits over trudy jr’s four year (and only!) term

#160 Leo Trollstoy on 02.11.16 at 1:40 am

Canada is selling off its gold reserves cuz, well, gold sucks

http://globalnews.ca/news/2508940/canada-sells-nearly-half-of-all-its-gold-reserves/

#161 Freedom First on 02.11.16 at 1:42 am

#104 Smoking Man

Sorry to hear about #1 son. Good news is there is no kids. He dodged a bullet.

Epidemic of divorced men paying alimony and child support with no access to their kids. Court backed too, no matter what stunts she pulls. Every guy thinks it wont happen to him. Odds are 50/50. Girlfriends are good. Just no ring and no house key and a guy can enjoy life. Besides, things are pretty good today, with so many women saying they don’t need a man. I love independent women. I don’t need them either.

#162 Kenchie on 02.11.16 at 1:44 am

Worth a read…

http://www.economist.com/news/leaders/21690031-negative-rates-club-growing-there-limit-how-low-rates-can-go-negative-creep?fsrc=scn/tw/te/pe/ed/negativecreep

#163 Kenchie on 02.11.16 at 2:12 am

#115 I am the Babbler on 02.10.16 at 9:54 pm
“Anyone that thinks RE in Toronto is in trouble should have their heads examined. Absolutely nothing, short of a financial meltdown, will stop this juggernaut. The BoC and the Feds will do everything in their power to keep RE values up high. Period. Even the loan officer at the bank knows that RE always goes up in TO.”
————————————————-

You will eventually learn that the Feds and BoC are not omnipotent. Just like BoJ and ECB and their governments are not omnipotent. Nor the Federal Reserve and the US Govt. For f$cks sake, the world is learning that China’s Gov’t, the largest authoritarian state in the world, is not omnipotent.

So if you believe that Canada’s governing bodies can do better than these bigger entities, best of luck to you and your family…

#164 Freedom First on 02.11.16 at 2:21 am

#128 Ace Goodheart

Yes. REIT’s. Oil. Banks. Bingo, Bango, Bongo. Recently bought and shared when I bought on here too. Great deals. Also shared when I rebalanced at the top of the market too. I am watching like a hawk. Close to taking another nibble at something I am underweight in. I may possibly even share when I buy. I only buy ETF’s. Sectors in Canada, and indexes Internationally. Of course, that does not include my other assets. But 0 individual stocks. No need except greed to buy those. I avoid greed, fear, and stupid. High risk.

#165 Freedom First on 02.11.16 at 2:40 am

#135 Victoria Real Estate Update

You are a smart woman. I was going to comment on Rick, so I am glad that you did.

Most unfortunately, well, not in Alberta anymore, but many Canadians think like Rick. Hence today’s Post by Garth. Canadian Banks are tightening the screws. We have a debt tsunami world wide, and now, in Canada, people are seeing, and will continue to see the painful results of being leveraged to the nutz. Yes. Just like the Americans, the Japanese, the Europeans, etc. We are not different.
over leveraged

#166 CMHC, Freddie Mac, Fannie Mae and AIG on 02.11.16 at 2:50 am

Great post today Garth. Still cannot believe morons more concerned about posting “First” than commenting on the significant blog topic today.

What slays me is that Cdn. Banks are acting as if CMHC is a bottomless pit of insurance money to render them harmless if RE prices were to collapse in YVR/416.

And they are actively encouraging massive Govt insured loans to people but not approving tiny unsecured loans themselves!!!

Morally reprehensible if you ask me.

Clearly they do not give a damn about Canada and its taxpayers…money grubbing children born out of wedlock.

Have we not learned anything from the 2009 near bankrupting of primary and secondary/tertiary…(as in mortgage backed securities) mortgage insurers in the US?

Today’s blong very distressing Garth, very distressing…

#167 ...that was blog not blong on 02.11.16 at 2:51 am

…I know, use a spell checker…

#168 Frank on 02.11.16 at 2:55 am

As a result of all of this and more, Canada’s housing bubble is much larger than the 2006 US bubble.

You gotta stop dude. You were worse every time. You keep saying Victoria housing is falling while prices climb and now you’re saying we’re WORSE than the subprime crisis? It probably will get ugly here but nothing, NOTHING like the US. Just talk less and read more.

#169 family beagle on 02.11.16 at 2:58 am

Have CAD bankers started gutting the goose with share buy backs yet?
That’ll be a sign of cookery.

Aside, the BC throne speech… BC is diversified. I can’t think of a single thing Christie Clark wouldn’t sell.

#170 jane 24 on 02.11.16 at 3:56 am

The only reason that the banks can increase rates is because fellow Canadians won’t stop buying useless crap that they don’t actually need but only want or they are buying junk because they are bored out of their skulls by the Canadian winter and buying STUFF is something to do. Then there is a shocker of a LOC.

I had a detox in January. I didn’t stop drinking (hey this is Britain) or stop eating (I’m married to an Italian) but I did stop spending on anything that wasn’t food even then I tried to use up purchased stuff in my cupboards. When I wanted to touch up the outside of the house I canvassed neighbours for the loan of masonry paint and when I wanted bits for the house I searched the house to find something that would do. Real WW2 make and mend. I walked all short errands with carrier bags and then dragged everything back to the house without the car. Rather than going to Costa coffee I have sat by the sea with a thermos of my own coffee.

I cannot believe how much I saved over the month by boycotting shops. I actually brought at charity shops rather than donating to them.

I saved enough to pay for our summer trip to Canada and am now extending the experiment to see if Feb and March will give me a free trip to our Italian cottage.

Claim your freedom guys. Learn to separate the two verbs ‘want’ and ‘need’ as they truly are two different things. Your financial fate is indeed in your own hands. It is a combo of what comes in with what goes out and a lot of what goes out, doesn’t have too!!

#171 Mark in Guelph on 02.11.16 at 4:15 am

I guess Janet Yellen said nothing of interest to Garth today.

#172 Doug in Karnataka, India, still away from London/YXUU on 02.11.16 at 6:39 am

So I wonder, will what’s happening now and in the near future lead to XFN going on sale? I’m up for Boxing Day sales, any time of year. I’m so excited by the prospect of such a thing happening, I may have trouble getting to sleep at night, with the sound of the ceiling fan blowing on the mosquito net I should add.

#173 Ace Goodheart on 02.11.16 at 6:44 am

David Graeber (London School of Economics) says, “What you see during that period [1980s] is a series of fairly intentional government policies which are designed to guarantee most people are in debt. If you have a mortgage you can’t go on strike. So it was quite intentional policy. Get people in debt. It will reduce the amount of industrial action. It will hold down wages. It will control inflation.” – See more at: http://www.greaterfool.ca/2016/02/10/the-crunch/#comments

I’ve been saying this for years. The entire economy in North America is an elaborate set-up, designed to benefit 1% of the population, at the expense of everyone else. 99% of us are supposed to be slaves, with no free will and no self determination, working towards paying off 25 year mortgages, lines of credit and car payments that never end (because the car dies or needs expensive repairs, at a predictable mileage, and then you need a new car and a new loan).

There is a way out of this. Own your house. It is the weirdest feeling, to actually not have a mortgage and own the house. It changes your perspective on everything. You can actually see the debt slaves on their way to 25 years of hell, as you sit comfortably, working when and if you want to.

#174 jess on 02.11.16 at 7:21 am

Why Cities Can’t Go Bankrupt in Canada or Germany
There’s a lot America can learn from these two countries about how to avert municipal bankruptcies.
by Frank Shafroth | May 2014

http://www.governing.com/columns/public-money/gov-municipal-debt-traps-nein.html

=
The Pension Benefit Guaranty Corp.
“derisking” /higher rates of interest
http://www.crainsbenefitsoutlook.com/article/20150329/CBO/150329982/1246

#175 jess on 02.11.16 at 7:35 am

luxleaks

“The release of the secret documents is good news in the fight against tax avoidance in Europe. The access to the documents means a breakthrough in the investigation of the LuxLeaks scandal. With these 5,500 secret documents, the EU Parliament will be able to clarify who is responsible for decade-long tax avoidance in several EU countries. Our stubborn persistence towards the EU Commission and national governments has finally paid off. Citizens have a right to know who bears the responsibility for the EU’s worst tax scandal.”

http://www.sven-giegold.de/2016/breakthrough-for-luxleaks-investigation-eu-commission-releases-secret-documents/

#176 fancy_pants on 02.11.16 at 7:40 am

I suspect he was denied b/c anything over a million becomes the bank’s risk. Organized crime is not stupid. They are happy to put you over a barrel but they will assume no such position.

#177 Zack Zika on 02.11.16 at 7:43 am

#126 Brazil ex-pat on 02.10.16 at 10:39 pm

And this my friends is why we left Canada. Brazil is much like Canada govt wise cept it’s warm, the people are much friendlier and the food is awesome and cheap.”

The food is slop, that’s why obesity is such a problem there….enjoy your crib….most likely in a Zika-infested favela…

#178 R Batman on 02.11.16 at 7:48 am

#169 jane 24 on 02.11.16 at 3:56 am

so you have a cottage in Italy but are unabashed in soliciting free paint from neighbors. And then you go on to suggest we have to separate wants and needs.

yeah, ok. We’ve got you figured out.

#179 economictsunami on 02.11.16 at 7:52 am

The smartest central bankers in the room understood that 2008 wasn’t a mere recession and efforts to paper over it by issuing more unsustainable debt (thereby driving asset classes to the next level) was not meant to cure the patient but buy time.

As per the script, many would rather continue to imbibe larger amounts of “the hair of the dog” rather then take sober action.

This is a global stock market rout worth celebrating

“World growth has been drearily stable for years, shuffling along at 3.4pc in 2012, 3.3pc in 2013, and 3.4pc in 2014, and 3.1pc in 2015. The International Monetary Fund expects 3.4pc this year.”

http://www.telegraph.co.uk/finance/economics/12150909/This-is-a-global-stock-market-rout-worth-celebrating.html

Why the next recession could be different — and far more dangerous

http://business.financialpost.com/investing/investing-pro/why-the-next-recession-could-be-different-and-far-more-dangerous

Using a debt fueled frenzy, to fix a debt fueled frenzy should have been our first clue in how we arrived here…

#180 Hope & Change (Canada) on 02.11.16 at 7:58 am

#127 Smoking Man on 02.10.16 at 10:47 pm
Interview with KGB guy 30 years ago. Explains how to mind fk a nation.

Incredible.

https://youtu.be/vLqHv0xgOlc

This one’s for Kommy Kim.

Commies killed millions as did the Nazis. And, commies killed their own as well. In Eastern Europe, during the cold war, 10% of the population at any time was in concentration camps for thought crimes.

Yet calling yourself a Commie is perfectly normal to some people. Exchange Commie for Nazi and it wouldn’t be acceptable.

#181 Julia on 02.11.16 at 8:25 am

#25 James
“At the same time, each year they play less and less of a role in providing capital to businesses. That’s one of the major reasons that the Canadian economy isn’t particularly diversified. Try to get a business loan from one… just as hard as an unsecured LOC. ”

Wrong. Banks have funds to lend into credit worthy companies. It’s actually quite competitive out there, both in terms of pricing and conditions.
The issue is not whether banks are wiling to lend or not, the issue is that the available pool of credit worthy companies is getting smaller.

#182 Bill in Nobleton on 02.11.16 at 8:31 am

I used to work at Amex during the aftermath of 2008. I can tell you that their strategy was to get paid before a card holder considered paying another bill first.
They raised everyone’s credit card interest rates (not charge card). If you missed a single charge card payment, they bumped you up to 29.9%.
That was their way of mitigating risk and getting paid first. I see no difference in the way TD is going about their business….They will continue to raise the rates on unsecured debt to get paid on it, but the secured debt is backed by people’s homes and our bankruptcy laws have changed to protect the creditor.

Are people aware that the banks can ‘call’ their loans at any time?

#183 The Econoom on 02.11.16 at 8:41 am

You’re being strung along by whoever this executive blog dog is, Garth. I have a TD unsecured LOC and a Scotia unsecured LOC. Both with $0 balances for years. Neither of which have seen any rate increases. In fact, TD just lowered mine.

Living out of country for the former example and not disclosing the true reason for the rate increase in the latter. That’s my call. Hearsay abounds.

#184 WallOfWorry on 02.11.16 at 8:48 am

#159….Leo Trollstoy….as usual a thought provoking post. Why such the hate on for gold? Everyone should have a 5% core holding, and if you look at the best performing asset over the last 15 years it is gold? Did Mark sell you a whack of it at the peak in 2011 and that is why you hate both so much?

#185 TurnerNation on 02.11.16 at 8:50 am

Trigger warning: this post contains pro-capitalism and anti-State sentiments.
I know four teachers socially
While competent I would not call them good at business or matters of street smarts. Who’s leading our country?

I’ve met quite a few people holding Masters degrees (fine all girls). Again struck me as naive including in relationships. Real life and capitalism encourages trying, failing, learning, trying again. Whereas school is about being right the first time. Everyone pick teacher’s answer. That the only way. A tight cloistered feedback loop. BS Baffles Brains.

#186 WallOfWorry on 02.11.16 at 8:54 am

Garth….I get that we should always expect healthy corrections, and in fact need them, but doesn’t some of the current macro environment concern you? Look at US Treasuries….and now Fed Fund futures are not anticipating another rate hike until 2018? In fact, are we not closer to QE4 than another rate hike?

http://www.cnbc.com/2016/02/11/interest-rate-futures-not-seeing-rate-hike-until-2018.html

#187 PJ on 02.11.16 at 8:55 am

Having fun losing money yet? No worries, I’m sure another round of QE (or whatever it’ll be called next time around) is coming.

PJ

#188 Rational Optimist on 02.11.16 at 9:03 am

66 Keith in Calgary on 02.10.16 at 8:02 pm

I say good on you, but maybe it was those retailers who started that club down at the library.

#189 Daisy Mae on 02.11.16 at 9:15 am

CBC, Feb.11/16: “Turbulence tore through global markets on Thursday as investors sought the safety of Japanese yen, gold and top-rated bonds while dumping U.S. dollars on bets the Federal Reserve could be done with raising interest rates.”

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

OMG! I shook my head and thought…”This is NOT what Garth suggests should or will happen.”

#190 Julia on 02.11.16 at 9:23 am

#151 Entrepreneur

Banks do not like equity take-outs. Does nothing do grow or expand the business, only increases leverage and risk.

#191 Suzie Q on 02.11.16 at 9:27 am

The green bank also called my sister last week – to tell her that they had cancelled the overdraft on their joint account, and they now owe the bank xxxx dollars. Immediately.

Seeing as my brother in law is one of the unfortunate laid off oilfield employees, she told them ‘good f-ing luck’ and hung up the phone.

Customers since their first paychecks in high school (20+ years ago).

When you’re already down one income and juggling what’s left to feed your kids, paying the bank is low on the priority list…

#192 Daisy Mae on 02.11.16 at 9:31 am

#30: “They offered to triple my credit card limit last week though. I guess that is how they make their money? I accepted it though.”

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

This can and will affect your credit rating. Simply because the credit bureau understands you could conceivably rack up debt tomorrow, if you so chose…. maxing out your credit card. Your high ‘credit limit’ is a liability.

#193 Penny Henny on 02.11.16 at 9:31 am

“After this call I was so angry that I was going to email various TD executives to express my dismay, etc. But then I reflected on what just happened and remembered reading about the ticking time bomb of unsecured lines of credit within the Canadian banks. It became crystal clear to me that TD bank wants to get rid of unsecured personal lines of credit.” – Alan’s story

//////////////////////////////
Unlike Alan the green bank keeps offering up unsecured lines of credit to me even though I have a secured line of credit already set up. And I don’t even work!

#194 Paul on 02.11.16 at 9:33 am

#159 Leo Trollstoy on 02.11.16 at 1:40 am

Canada is selling off its gold reserves cuz, well, gold sucks
————————————————————-
In every purchase there is a winner and a loser.time always decides who is who.

#195 ozy -stop talking what u don't know on 02.11.16 at 9:42 am

stop talking what u don’t know

don’t expect the servants to know why the master has made certain house rules

I wonder up to what level in a bank – employees have no qualifications / authorization to talk with the public about FRACTIONAL RESERVE LENDING….

you are screwed saka. get them mortgage hahahaha

#196 Keith in Calgary on 02.11.16 at 9:43 am

#126 Brasil ex-pat

Are you sure you are talking about the governing PT party in Brasil in your comparison to Canada ?

KKKKKKKKKKK !!!!!

Their leader and the countries president Dilma has had impeachment proceedings opened up against her in congress, millions of people are protesting in the streets from time to time against government corruption, approximately 1/3 of her cabinet is in jail already, or soon to be, as they are all under arrest for numerous corruption scandals, Petrobras and the Propina scandal, to name but a few. Billions of Reais have been siphoned off from legal enterprises into politicians pockets.

That could happen here, but when guys like Mike Duffy get in trouble for trying to pay back questionable expense claims with gifted funds, I think we are a far from being like Brasil politically.

Having clarified that, I have recently applied for my VIPER at the consulate in YVR as my carioca wife and I are permanently moving there soon.

#197 Keith in Calgary on 02.11.16 at 9:45 am

#191 Daisy Mae……

Wrong.

Credit bureas do a calc on “utilization rates”…..higher credit limits lower the utilization % which actually bumps up your credit score.

Owe $10K and have $15K limits……66% util rate

Owe $10K and have $30K limits……33% util rate

#198 President TRUMP on 02.11.16 at 9:48 am

#193 Paul on 02.11.16 at 9:33 am
#159 Leo Trollstoy on 02.11.16 at 1:40 am

Canada is selling off its gold reserves cuz, well, gold sucks
————————————————————-
In every purchase there is a winner and a loser.time always decides who is who.

There is only one winner. ME. Everyone else is a TOTAL LOSER.

#199 Ronaldo on 02.11.16 at 9:52 am

#159 Leo Trollstoy on 02.11.16 at 1:40 am

”Canada is selling off its gold reserves cuz, well, gold sucks

http://globalnews.ca/news/2508940/canada-sells-nearly-half-of-all-its-gold-reserves/

Canada unloaded their gold reserves years ago. Totally irrelevant. Half would fit in my microwave.

#200 cramar on 02.11.16 at 10:04 am

#154 TRT on 02.11.16 at 1:08 am

On Monday of this week, someone mentioned that the Twitter and Online blogs were aware of a leak that the PPT (Plunge protection team) was given instructions to keep the S&P index above 1850 at all costs until Shanghai has passed one open day.

The proof is in the pudding. Check out the last 3 daily closes:

Mon – 1850
Tues- 1851
Wed – 1850

“But we need more data..” LOL.

Rigged.

—————

And today?? Ten minutes after the open S&P was at 1825.

Tues & Wed was just a pause before the next wave down. Momentum indicators tell me that we could have another 100 points down before reaching major oversold conditions.

#201 Jackie Seal on 02.11.16 at 10:11 am

I do not bank at any of the Big 5 and have not done so since about 2001. Those jokers have not seen a penny of my savings, line of credit or mortgage money in years. Despite the minor inconveniences of dealing with an online bank, I will take any day over the legalized theft practised by our mainstream banking institutions.

#202 Mark on 02.11.16 at 10:19 am

“Could it be because they destroyed every dollar of capital that was ever entrusted to them? (See net worth of minus $4 billion).”

Nope. Time for Shawn to go back to accounting school. Book values, and what a stock is actually worth are two completely things, and companies that invest heavily in depreciable assets often have negative book values yet are perfectly viable going concerns.

On second thought, its no surprise that you’re making this sort of mistake because its consistent with another major mistake you made (and probably still make) on your website that I called you out on in email a few years ago. If you are who I think you are, of course.

#203 Noel on 02.11.16 at 10:32 am

The takeaway from this is that TD thinks house prices are going to appreciate or at least retain their value. I agree.

#204 Dups on 02.11.16 at 10:37 am

There are too many buying opportunities out there. I do not understand why people rush to sell? They must have a crystal ball or they must be stupid. You buy when it is low and sell high. It is that simple.

#205 MF on 02.11.16 at 10:38 am

#202 Noel on 02.11.16 at 10:32 am

Can I borrow your crystal ball?

Oh yeah you have a whole bunch of “indicators” that prove it but you think people won’t listen.

I think you are wrong.

MF

#206 Evangeline on 02.11.16 at 10:40 am

I tried to get my LOC increased early last year, and was likewise unsuccessful. I was told by someone (not the bank) that if I’d had a high outstanding credit card balance, I’d have had a better chance, because the credit rating agencies give people without debt lousy credit ratings.

#207 Penny Henny on 02.11.16 at 10:41 am

Smokie-He asks for the back statements to do the taxes; she tells him where to go. He’s had enough bull shit Boom, Lawyer time.
He’s never doing that again, he’s going the route of Freedom First.
He says no point raising a family in this madness.
This DEC JAN and looking like FEB he’s Number 1 salesman in North America. His corp has offices in every major city in North America.
His wife had it all, the feminazis got to her.
////////////////////////////////////

And now she’ll get support payments too!

#208 Ronaldo on 02.11.16 at 10:45 am

Ever wondered what the U.S. debt would look like visualized in $100 bills.

http://demonocracy.info/infographics/usa/us_debt/us_debt.html

#209 Evangeline on 02.11.16 at 10:46 am

#197 President Trump “There is only one winner. ME. Everyone else is a TOTAL LOSER.”

That’s not Trump’s message. His message is:

“I’m a winner. The USA is being run by TOTAL LOSERS and that needs to change because I want everyone in the USA to be a winner like I am.”

#210 MF on 02.11.16 at 10:48 am

Just take a look at the s and p 500 20 year chart. It looks scary. I think people expect some sort of pullback just because

it’s gone up so much, some feel the markets were manipulated post 2008, the bull run was artificial, and, central bankers already used all tools in 2008 and would be powerless if another worldwide crisis hits.

The talk of negative rates has everyone spooked. It was/is stupid policy to even mention.

MF

#211 not 1st on 02.11.16 at 10:49 am

BANNED

#212 SWL1976 on 02.11.16 at 10:50 am

#120 MF

#96 For those about to flop…

All I can say is that I consider it an honor to be part of the top three worst investors on Greaterfool, and it is something I wear with pride.

————————–

Ahh dont be too hard on yourself, your investments should have their time in the sun. There’s a lot of good info on this blog that one has to sift through in order to place their bets. Had you listened to Mark a while back and loaded up some minners of PM’s you would be smiling now

Gold’s best start to a calander year since 1980

When’s the harvest?

#213 bdy sktrn on 02.11.16 at 10:52 am

#159 Leo Trollstoy on 02.11.16 at 1:40 am

Canada is selling off its gold reserves cuz, well, gold sucks

#214 hope & ruin on 02.11.16 at 10:52 am

#196 Keith in Calgary on 02.11.16 at 9:45 am
#191 Daisy Mae……

Credit bureas do a calc on “utilization rates”…..higher credit limits lower the utilization % which actually bumps up your credit score.
____________________________________

thanks for the clarification Keith. That’s how I understood it too.

But we still hate you.

#215 NTH on 02.11.16 at 10:56 am

#70 AB Boxster on 02.10.16 at 8:12 pm

Thank you for taking time to reply, appreciated.

I found your original post on ghomeshi somewhat incongruent so I asked for simple clarification about what you believe. I did not ask about assault (a legal term). I did not ask you to comment on the complainants conduct nor their state of mind.

I’m aware of the nuances and various discourses concerning this case BUT I did not ask you about ‘the case’. I asked what you believe as an individual.

Do you understand the actual question being asked of you? It seems you did not understand the original question as you did not answer it in your first reply. So while I should have probably stopped upon reading “mutual sexual assault” (likely you do not comprehend all the things wrong with that three word combination given you typed it). Is that anything like ‘mutual rape’? Just wondering. Really, just think about those 3 words, it’s not even possible based on your own terms & definitions. However, I thought I might clarify for you and ask a second time…..
Yes, you sort of answered it the second reply albeit pretty weak-kneed, IMO.
At least have the gonads to say “yes he hit her with her consent”. Nope, you gave a wishy-washy “may” have used “some” “force” that the witness did not expect.

Ghomeshi admitted to (hitting) in his facebook post. His contention is that it was consensual. Again, I asked you about whether you believe he had consent to do so, not whether what happened was assault and whether it carries sufficient evidence or about the voracity of the the complainants behavior or to speculate on their state of mind. Relevant aspects, yes, but not what I asked of you.

Consent to hit someone may be given I.e. A self defence class, boxers, consensual sex play…. and so forth. Consent to assault, no, as others here have stated. Again, I did not ask you about assault, I asked about “hit” and consent.

Now, I feel obliged to point out that consent is not “silly” “absurd” or irrelevant as you have implied.

Consent is a human right.
Fixate that.

NTH

#216 bdy sktrn on 02.11.16 at 10:56 am

#159 Leo Trollstoy on 02.11.16 at 1:40 am

Canada is selling off its gold reserves cuz, well, gold sucks
——————————–

careful there peeo toiletspray, you are starting to sound like mark saying 604/416 re is falling.

gold is has been the BEST performing asset class for us cdns over the past little while – 50% since early 2014.

ideology over evidence never ends well.

#217 NewWorldParty.org on 02.11.16 at 11:03 am

Not only do banks think LOCs are riskier, they think LOCs are riskier even if it is secured with cash.

CIBC loan manager says that they prefer to see income over cash because they cannot control what customers do with the cash. How can CIBC control what borrowers do with their income? They can’t.

National Bank will give a big LOC if you own a home. If you sell it, then you will have to repay the LOC and close the account. This is despite having lots of CASH from the sale of the house.

This perversion is created by the government. The government does everything they can to manipulate housing, such as forcing taxpayers to insure $500 billion of mortgages. This is because the homeowners are usually older and a much higher percentage of older people vote.

Housing is a huge transfer of wealth from the young to the old.

#218 kommykim on 02.11.16 at 11:10 am

RE:

#179 Hope & Change (Canada) on 02.11.16 at 7:58 am
Commies killed millions as did the Nazis. And, commies killed their own as well. In Eastern Europe, during the cold war, 10% of the population at any time was in concentration camps for thought crimes.
Yet calling yourself a Commie is perfectly normal to some people. Exchange Commie for Nazi and it wouldn’t be acceptable.

Maybe you need to review your history. If is wasn’t for Commies keeping the Nazis busy on the Russian front, Germany would have won WW2. They were hardly the same.

#219 Penny Henny on 02.11.16 at 11:11 am

wow. look at gold go girl!

#220 Mike in Edm on 02.11.16 at 11:14 am

So apparently my early 20’s sister-in-law who is a UofA student and part time server got notified by her bank that they are willing to approve her for a mortgage for $300k or $400k! Are you kidding me? She’s never held anything more than a part time retail job in her life, probably makes $12k a year on paper (plus tips which don’t count), and her bank approached her offering her a mortgage? Signs of desperation from her bank to continue bringing in business, or is this just normal? Either way, it doesn’t bode well for Edmonton.

#221 TnT on 02.11.16 at 11:37 am

#217 kommykim on 02.11.16 at 11:10 am

Maybe you need to review your history. If is wasn’t for Commies keeping the Nazis busy on the Russian front, Germany would have won WW2. They were hardly the same.

*****

Atrocities committed by the “commies” during WW2 and beyond are comparable.

First to my memory

https://en.wikipedia.org/wiki/Holodomor

I am sure there are hundreds of other examples

#222 jess on 02.11.16 at 11:50 am

#179 Hope & Change (Canada)

coal fired vs oil fired ships

http://www.internationalaffairs.org.au/australian_outlook/oil-the-underlying-reason-for-gallipoli/

#223 AB Boxster on 02.11.16 at 11:53 am

#214 NTH on 02.11.16 at 10:56 am


Consent is a human right.

————————–
Really?
Is consent defined and set out as a basic human right?

Your argument holds no water for a number of reasons.
“At least have the gonads to say “yes he hit her with her consent.”

What you continue to suggest is that there needs to be actual consent at any point in the engagement.

So here are a few questions of my own.

Do you believe that prior to any sort of sexual contact between Ghomeshi and any of the witnesses, that there was any ‘explicit’ consent provided.
To clarify, did either party explicitly request consent from the other to begin kissing?

While they were kissing, do you believe that at any point while they were kissing, that that if one or the other were to embrace the other, that the action of embracing would require a new level of consent?

And if, theoretically, during the make out session, that one of the parties were to begin to kiss the other on the neck, perhaps with biting, and (god forbid) a hickey, do you believe that prior to that point that one or the other would need to request consent to do so?

When the one witness gave Mr Ghomeshi a HJ, do you believe that she asked for Mr. Ghomeshi’s explicit consent to do this?

Simple questions.
Yes or No.

#224 IHCTD9 on 02.11.16 at 12:02 pm

#27 Mark on 02.10.16 at 6:29 pm

Harper ~= $260B in new debt over roughly 10 years in office.

____________________________________________

You’re really stuck on that number aren’t you? No matter, I’ll keep on correcting you :).

150 Billion was the Federal total after ~10 years. He had the deficit down to 190 Million as of 10/2015, and was running in the black earlier the same year.

You can bet your last dollar that all predictions will fall short of reality the way T2 has been torching revenues and gobbling debt thus far…

T2 will be a financial disaster for Canada, would anyone like to disagree?

#225 bdy sktrn on 02.11.16 at 12:09 pm

CBOE Interest Rate 10 Year T No (^TNX) -Chicago Options  Watchlist
1.5880 Down 0.1170(6.86%) 11:51AM EST
——————
japan 10 yr neg
inverted us curve
no fed hikes, back to .25 soon
rates lower for longer.
could be decades

#226 Noel on 02.11.16 at 12:13 pm

#204 MF on 02.11.16 at 10:38 am
#202 Noel on 02.11.16 at 10:32 am

Can I borrow your crystal ball?

Oh yeah you have a whole bunch of “indicators” that prove it but you think people won’t listen.

__________________

Prove what? My opinion? I think that RE prices in Toronto are going to go up in the near term, as does TD bank, is that not allowed in your world? Is everyone’s opinion but yours worthless?

#227 Nagraj on 02.11.16 at 12:14 pm

anybody watching Yellen testify?

anybody besides me remember Aunt Clara of Bewitched?

#228 jane 24 on 02.11.16 at 12:16 pm

For those asking we inherited the cottage in Italy.

It came free with the Italian husband!!!!

#229 JamesA on 02.11.16 at 12:17 pm

900k invested in your 40s! Bastard! That is putting a real dent in my Cnd. Smugness. The closest I got to being a big wig was wearing a big wig at halloween. I am sure the feelings induced are similar.

#230 Smoking Man on 02.11.16 at 12:27 pm

Wow 5Y CAD benchmark kissed 0.40 what’ s the overnight rate why it’s 0.50

Need to re iterate Negative rates are a coming, or at least that’s what is what the Bond Market is saying.

Wow 0.40 unreal.

#231 common sense on 02.11.16 at 12:33 pm

Is it just me or does it feel like S@#T is just beginning to hit the fan?

#232 IHCTD9 on 02.11.16 at 12:33 pm

Trudeau comes full circle to finally admit the 10 billion spending cap will not be held.

Also the balanced budget BS also promised is out the window too.

http://www.cbc.ca/news/politics/trudeau-balance-budget-promise-difficult-1.3443885

What’s he going to do about it other than spending billions on “projects that will create jobs”?

Well, no comment apparently…

Good grief, what a train wreck this guy is. Watch as he tries to wave his magic wand and “create prosperity” by flushing untold Billions more down the shitter.

Sure, wave the wand while chanting “increaseo prosperitio” and GDP will skyrocket just like that.

Everyone better devise a plan to limit their exposure to the Feds, he’s blind, stupid, and broke.

#233 Smoking Man on 02.11.16 at 12:35 pm

I’m calling bull shit on Gravity Waves.

Modern science, they say anything to keep the funding stream coming, agenda driven.

Ether dogs… UCC

#234 Smoking Man on 02.11.16 at 12:40 pm

Really thump and Whoop Bahahahahah$$$$$$$$$$

World is getting stupid.

http://www.cbc.ca/news/technology/ligo-gravitational-wave-1.3443697

Hearing black holes merge

The two laser instruments, which work in unison, are known as the Laser Interferometer Gravitational-Wave Observatory (LIGO). They are able to detect remarkably small vibrations from passing gravitational waves. After detecting the gravitational wave signal, the scientists said they converted it into audio waves and were able to listen to the sounds of the two black holes merging.

“We’re actually hearing them go thump in the night,” MIT physicist Matthew Evans said. “We’re getting a signal which arrives at Earth, and we can put it on a speaker, and we can hear these black holes go, ‘Whoop.’ There’s a very visceral connection to this observation.”

#235 jess on 02.11.16 at 12:46 pm

Red diesel works in the same way as normal diesel but, because it is taxed at a lower rate

People who use the illegal fuel are abusing the tax system – they cheat the whole country
Revenue and Customs
http://news.bbc.co.uk/2/hi/uk_news/7076799.stm

=
Scandal of the £1bn fuel scams
AT first glance it was nothing more than a ramshackle barn, tucked away in the middle of nowhere.
By Adrian Lee
PUBLISHED: 00:00, Fri, Mar 25, 2011

Diesel is more attractive to thieves because it’s less volatile and there’s a bigger market, usually among companies seeking to cut transport costs.
http://www.fin.gov.on.ca/en/bulletins/ft/pamphlet_truckersdyeddiesel.html
https://www.gov.uk/report-red-diesel-used-on-public-roadsofficials.

It is chemically marked with a red dye to make it more identifiable.

#236 Hope & Change (Canada) on 02.11.16 at 12:48 pm

#217 kommykim on 02.11.16 at 11:10 am

RE:
#179 Hope & Change (Canada) on 02.11.16 at 7:58 am
Commies killed millions as did the Nazis. And, commies killed their own as well. In Eastern Europe, during the cold war, 10% of the population at any time was in concentration camps for thought crimes.
Yet calling yourself a Commie is perfectly normal to some people. Exchange Commie for Nazi and it wouldn’t be acceptable.
Maybe you need to review your history. If is wasn’t for Commies keeping the Nazis busy on the Russian front, Germany would have won WW2. They were hardly the same.

So what, Stalin alone killed 20 Million after WW2.

I don’t need to review my ‘history’. My family lived it.

#237 Fine Wild Roasted Gonads on 02.11.16 at 12:48 pm

#228 Smoking Man on 02.11.16 at 12:40 pm

Really thump and Whoop Bahahahahah$$$$$$$$$$

World is getting stupid.

http://www.cbc.ca/news/technology/ligo-gravitational-wave-1.3443697

Hearing black holes merge

The two laser instruments, which work in unison, are known as the Laser Interferometer Gravitational-Wave Observatory (LIGO). They are able to detect remarkably small vibrations from passing gravitational waves. After detecting the gravitational wave signal, the scientists said they converted it into audio waves and were able to listen to the sounds of the two black holes merging.

“We’re actually hearing them go thump in the night,” MIT physicist Matthew Evans said. “We’re getting a signal which arrives at Earth, and we can put it on a speaker, and we can hear these black holes go, ‘Whoop.’ There’s a very visceral connection to this observation.”


Amazing stunningly fascinating science.. revealing a world predicted 100 years ago by a genius with basically a pencil and paper and a stunning imagination.

#238 pinstripe on 02.11.16 at 12:48 pm

The WASTE created by the AB PC policy makers is showing Albertans why so many Albertans said Enough-is-ENOUGH. The fed systems are not any better.

The government departments are famous for WASTE. there are many many cases where there are many people in a dept with each doing the same job their own different way, where the left hand not knowing what the right hand is doing. Non-performance is rewarded and Performance is PUNISHED.

The time is right for the taxpayer to yell that Enough-is-ENOUGH.

http://www.cbc.ca/news/canada/edmonton/alberta-energy-needs-to-better-track-royalty-reduction-programs-auditor-general-says-1.3442044

#239 Fine Wild Roasted Gonads on 02.11.16 at 12:49 pm

#232 Smoking Man on 02.11.16 at 12:35 pm

I’m calling bull shit on Gravity Waves.

Modern science, they say anything to keep the funding stream coming, agenda driven.

Ether dogs… UCC

Dark matter.. dark energy

#240 MF on 02.11.16 at 12:50 pm

#211 SWL1976 on 02.11.16 at 10:50 am

Thanks. I’ve got some cash since rebalancing that I am hesitant to put into anything TBH. I don’t know if I “buy” the gold argument. Short term speculation is what is driving the surge as of late. If the goldbugs are expecting armageddon, nobody will give a chit about gold only foodstuffs water and weaponry. Gold is useless.

MF

#241 Penny Henny on 02.11.16 at 12:52 pm

#226 Nagraj on 02.11.16 at 12:14 pm
anybody watching Yellen testify?

anybody besides me remember Aunt Clara of Bewitched?

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

Aunt Clara was funny.
Elizabeth Montgommery was hot!

#242 Godth on 02.11.16 at 12:52 pm

#233 Smoking Man on 02.11.16 at 12:40 pm
https://www.youtube.com/watch?v=6tB3IBXTgEc
https://www.youtube.com/watch?v=zELjb6iDjL8

#243 MF on 02.11.16 at 12:53 pm

#228 JamesA

Mo money mo problems.

MF

#244 pinstripe on 02.11.16 at 12:56 pm

Even with all the political correctness the AB Big Mess, engineered by the AB PCs, cannot be ignored.

http://www.cbc.ca/news/canada/calgary/bc-throne-speech-alberta-lost-its-focus-1.3442134

#245 Mike in Edm on 02.11.16 at 1:02 pm

Does anyone in Edmonton have or know of how I can get rental statistics? Looking for how many homes are on the market for rental and the average rental price – both compared to previous months or years. I asked this a couple days ago with no luck. I need to approach my landlord with some actual stats when I ask her for a rental rate deduction, and I need to do it soon, because to further ad to my financial blow of being laid off last week, but wife just informed me her company is reducing everyone’s wages by 10%.

#246 Rexx Rock on 02.11.16 at 1:11 pm

How’s TVIX AND UVXY working for you traders.Not as good as NUGT.Up from $18 to over $54 in less than a month.Banks,equities and oil tanking,bonds volatile means it still shorting time.A depression looks like it may come to Canada real soon.SAVE YOUR MONEY,YOUR GOING TO NEED IT!Central banks,running out of bullets to delay the collapse coming.Bank bail ins coming to your favourite bank and depositers will pay for their recklessness.Can you say bank holiday and capital controls in the worst case scenarios.

No bank failures. No capital controls. No bail-ins. But lots of idiot comments. — Garth

#247 cramar on 02.11.16 at 1:14 pm

#208 Evangeline on 02.11.16 at 10:46 am

#197 President Trump “There is only one winner. ME. Everyone else is a TOTAL LOSER.”

That’s not Trump’s message. His message is:

“I’m a winner. The USA is being run by TOTAL LOSERS and that needs to change because I want everyone in the USA to be a winner like I am.”

————————-

Last night on the Global news they were talking about the Trump/Sanders wins, and reported that someone said, “If Trump becomes President, I’m moving to Canada!”

http://globalnews.ca/news/2508812/americans-threatening-to-move-to-canada-if-donald-trump-becomes-president/

Typical Americans! Don’t have a clue about what is going on in Canada!

#248 A Canadian Abroad on 02.11.16 at 1:17 pm

This just in:

B.C. superintendent of real estate denies ignoring ‘shadow flipping’

“VANCOUVER – British Columbia’s superintendent of real estate is denying that she has failed to take action on “shadow flipping,” saying she only learned of specific allegations from the media last week.”

…and if you believe that, then I have a crack shack in Vancouver I can sell you for $3,000,000.

http://www.ctvnews.ca/business/b-c-superintendent-of-real-estate-denies-ignoring-shadow-flipping-1.2773406

#249 Dups on 02.11.16 at 1:22 pm

Say what you want: The Canadian housing pickle is unravelling this year. The smart baby bloomers should sell and get out ASAP before the storm. Take your gains now and enjoy your retirement.

#250 Marcus on 02.11.16 at 1:36 pm

Looks like the Fed may well go negative before the end of the year. http://www.zerohedge.com/news/2016-02-11/janet-yellen-admits-fed-evaluating-possibility-negative-rates#comments

No it doesn’t. — Garth

#251 NTH on 02.11.16 at 1:42 pm

#222 AB Boxster on 02.11.16 at 11:53 am

“What you continue to suggest is that there needs to be actual consent at any point in the engagement”
=================================

Yes, of course.

Clearly you do not understand consent. Consent can be withdrawn at any moment. Do you not know this? Even mid-coitus.

We are done.
(not because you think you stumped me with your questions)
Because I feel gross communicating with you. Yuck.

Apologies Garth & Everyone, I had no idea a simple question would lead to this. lesson learned.

#252 AlwaysReadtheFINEPrint on 02.11.16 at 1:43 pm

You think you have long term savings and investments at TD? Read the Fine Print People:

TD Financial Terms of Service (current):
“G. All Accounts and Services…
4. Set off debts against your accounts –
We can apply a positive (credit) balance in any of your accounts with us against any debt, obligation or liability you may owe to us. We can set off these balances in any manner we consider necessary (unless we have specifically agreed not to do so), and we are not required to first give you any notice.”

Without notice, zero $ left in savings at TD when you have a mortgage or a loaded LOC and Visa with them and they decide to set off your debts – shocking!
Lesson Learned: Never hold savings and debit accounts at the same bank…

#253 kommykim on 02.11.16 at 1:49 pm

RE:

#220 TnT on 02.11.16 at 11:37 am
First to my memory
https://en.wikipedia.org/wiki/Holodomor

Sounds similar to US/UN sanctions to me. The winners write the history.

#254 R Batman on 02.11.16 at 1:59 pm

#227 jane 24 on 02.11.16 at 12:16 pm

nice score. 1 out of 2 ain’t bad. cheers.
regards,
a furless wonder

#255 kommykim on 02.11.16 at 2:08 pm

RE:

#235 Hope & Change (Canada) on 02.11.16 at 12:48 pm
So what, Stalin alone killed 20 Million after WW2.
I don’t need to review my ‘history’. My family lived it.

So did mine. But what happened to my parents and grandparents during that time doesn’t give me any moral authority or special rights today.
Maybe you should be paying attention to the atrocities happening in the world TODAY rather than dwelling on the past.

#256 Smoking Man on 02.11.16 at 2:12 pm

#241 Godth on 02.11.16 at 12:52 pm
#233 Smoking Man on 02.11.16 at 12:40 pm
https://www.youtube.com/watch?v=6tB3IBXTgEc
https://www.youtube.com/watch?v=zELjb6iDjL8
……

Thank Godth I’m not the only one who knows.

If MSM sells it, It’s a lie,

#257 jess on 02.11.16 at 2:13 pm

““In today’s agreement, Morgan Stanley acknowledges it sold billions of dollars in subprime RMBS certificates in 2006 and 2007 while making false promises about the mortgage loans backing those certificates,” said Acting U.S. Attorney Brian J. Stretch of the Northern District of California. “Morgan Stanley touted the quality of the lenders with which it did business and the due diligence process it used to screen out bad loans. All the while, Morgan Stanley knew that in reality, many of the loans backing its securities were toxic. Abuses in the mortgage-backed securities industry such as these helped bring about the most devastating financial crisis in our lifetime. Our office is committed to dedicating the resources necessary to hold those who engage in such reckless actions responsible for their conduct.”

Thursday, February 11, 2016
Morgan Stanley Agrees to Pay $2.6 Billion Penalty in Connection with Its Sale of Residential Mortgage Backed Securities

http://www.justice.gov/opa/pr/morgan-stanley-agrees-pay-26-billion-penalty-connection-its-sale-residential-mortgage-backed

#258 JG on 02.11.16 at 2:20 pm

I had the same experiences described with the TD. In fact I mentioned it on this blog a few months ago.

I totally agree with this statement “TD bank wants to get rid of unsecured personal lines of credit.”

My response, I went in and spoke to the Manager (this tactic hasn’t worked in eons, but thought I’d try), told the manager I would pull all my accounts, and the end result was nobody really gave a shite if I closed all my accounts or not. So I closed them all right there on the spot. Will never deal with them again.

#259 Kreditanstalt on 02.11.16 at 2:21 pm

In the absence of real-terms economic growth (i.e., after subtracting the massive expansion of the money & credit supply), “investing” is dead.

All that is left is speculation – betting – companies forced to cannibalize one another, speculating in stocks and financial buyback-type chicanery…

#260 Daisy Mae on 02.11.16 at 2:26 pm

#205: “I’d have had a better chance, because the credit rating agencies give people without debt lousy credit ratings.”

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

If you’re late with utility bills, mortgage payments — anything, because it’s always being reported — it most definitely affects your credit rating. Personal debt is a detriment.

#261 ouch on 02.11.16 at 2:26 pm

global interest rates are collapsing, not rising..
stock markets are collapsing, not rising…

canada is /will be in a recession …
japan has negative interest rates…
Sweeden went to -0.5%
the ECB will make more purchases and lower rates
china has slowed down..
the US Fed will NOT raise rates again this year…

7 years of global stimulus, and the world’s economies are tanking again.

anyone look at canadian bank stock charts… collapsing..

#262 Smoking Man on 02.11.16 at 2:27 pm

#249 Marcus on 02.11.16 at 1:36 pm
Looks like the Fed may well go negative before the end of the year. http://www.zerohedge.com/news/2016-02-11/janet-yellen-admits-fed-evaluating-possibility-negative-rates#comments

No it doesn’t. — Garth

……………….

Garth. remember when you bet Gloomer Doomer on FED spike and I called. One, then Done and Reverse.

When NIRP happens. are you finally going to tell your loyal fans.

Yes Smokey is not from this world…

#263 Henry Olivere on 02.11.16 at 2:28 pm

Garth, the 10 year Canada rate is still below 1% at 0.98% but was as low as 0.94%.

The 2 year Canada rate was low as 0.33% and is presently at 0.35%.

Rates are getting killed fast!

#264 Dups on 02.11.16 at 2:32 pm

Why can not people see that Shanghai composite has hit the bottom and it is now trailing sideways just like it did in 2008-09. This could also mean that the TSX and Dow are at the bottom now. Oil is also at the same price it was in 2008-09, so oil also has hit the bottom. Why can’t people see this? I think this correction is in theory done…

#265 CJBob on 02.11.16 at 2:32 pm

#244 Mike in Edm: I need to approach my landlord with some actual stats when I ask her for a rental rate deduction, and I need to do it soon, because to further ad to my financial blow of being laid off last week, but wife just informed me her company is reducing everyone’s wages by 10%.
_______________________
Sorry to hear that Mike. My suggestion would be to look for a cheaper place to rent and then go to your landlord and say you’re moving but would like to stay if she could match the rent. Negotiate from there. That’s how I’d do it, I don’t think stats would mean much. Risking an empty apartment they have to try to rent out again is the way to get their attention. Good luck, sincerely.

#266 jess on 02.11.16 at 2:34 pm

2015
Maple Bank offices searched in German tax evasion and money laundering probe
Maple Bank is based in Frankfurt but is part of Toronto-based Maple Financial Group

OSFI takes over control of Maple Bank assets in Canada

CBC News Posted: Feb 10, 2016 4:06 PM ET Last Updated: Feb 10, 2016 4:06 PM ET

#267 Godth on 02.11.16 at 2:39 pm

No bank failures. No capital controls. No bail-ins. But lots of idiot comments. — Garth

As if you know what’s going to happen. Nobody can predict how things are going to unfold but we can know some generalized why. This is the bumpy plateau, in petroleum engineering terms, the low hanging fruit is gone. There’s far to much debt relative to the real economy and we have demand destruction as people grow poorer in real terms (and more in debt). It’s obvious that the central bankers are literally making it up as they go and confidence is waning. Basically the system is brain dead on life support and any intervention looks better than conceding to reality.
http://thearchdruidreport.blogspot.ca/2016/02/renewables-next-fracking.html

#268 bdy sktrn on 02.11.16 at 2:41 pm

wow -405 to -298 is about 2 seconds.

ppt?

#269 Albert Einstein on 02.11.16 at 2:43 pm

#232 Smoking Man on 02.11.16 at 12:35 pm

I’m calling bull shit on Gravity Waves.

Modern science, they say anything to keep the funding stream coming, agenda driven.

Ether dogs… UCC
………………………………………………………………..
Albert Einstein was a bit of a nonconformist when it came to his education however he was a naturally brilliant certified genius. His tenets still stand today. He used his abilities to enrich the planet with knowledge. His academic understanding of all things physics is quite simply light years beyond your shallow google generated rants. Einstein was quite simple a virtuoso while you are still an imprudent contrivance. Stick to your day trading! Oh and Albert says hes calling bullshit on your toothless brain.

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

#270 TRT on 02.11.16 at 2:48 pm

PPT target 1850 on S&P

Lets see how close they get.

#271 Tom on 02.11.16 at 3:02 pm

#244 Mike in Edm on 02.11.16 at 1:02 pm

Mike, your best bet is to go through Kijiji, Craigslist and Rentfaster and get some comparable listings for what you are currently renting. I doubt that you will have much luck finding actual statistics other than vacancy rates. Even those will be lag by a couple of months.

I just went through the same exercise in St. Albert.

#272 waiting on the westcoast on 02.11.16 at 3:08 pm

#246 cramar on 02.11.16 at 1:14 pm says “Last night on the Global news they were talking about the Trump/Sanders wins, and reported that someone said, “If Trump becomes President, I’m moving to Canada!”

http://globalnews.ca/news/2508812/americans-threatening-to-move-to-canada-if-donald-trump-becomes-president/

Typical Americans! Don’t have a clue about what is going on in Canada!”

Actually, I remember when WBush won his second term there were many articles like that in Oregon (the Canada of the US). I doubt very many moved… just venting. But yeah – coming here right now would not be the smartest move for them. From one housing crisis to another ;-)

#273 Dan on 02.11.16 at 3:19 pm

New Economy: A guy standing next to you is trying to put his hand in your pocket. Buy a house. There is almost 1.5 billion Chinese whom you could sell it in the future….
The western crooks are loosing because of inferiority of their system. In China, their counterparts are put against the wall. Here, crooks hire a lawyer and pay him with a loot…

#274 Dan on 02.11.16 at 3:24 pm

If Trumps wins then we will witness how mainstream media are treating him. Same media which today demonise him. But do not forget.. Trump Donald prefers east-European women and they teach him how to hate and how to not forget insults… Just watch out cowards…
Just watch out.

#275 Dan on 02.11.16 at 3:29 pm

And don’t start me about communists and nazis, because I can start to count all the Nazi war criminals who found shelter in democratic Canada….
shame on you bastards…

#276 Keith in Calgary on 02.11.16 at 3:30 pm

Garth……….

More than a few Canadian banks outright failed in the 80’s and a couple merged as well, to hide the fact they were insolvent, or had a massive funds mismatch.

The B of C permitting the trashing the CDN $ is a form of defacto hidden capital control. Forces people to keep money in country and spend it in country.

ZIRP (before fees and inflation) has been here for about 8 years now. Defacto NIRP in my books.

Legislation passed allowing depositor confiscation.

#277 IHCTD9 on 02.11.16 at 3:32 pm

#222 AB Boxster on 02.11.16 at 11:53 am
#214 NTH on 02.11.16 at 10:56 am

Consent is a human right.

————————–
Really?
Is consent defined and set out as a basic human right?

____________________________________________

Google up “Yes means Yes” (it is the new “No means No”).

This means silence does not mean consent.

Lack of protest or resistance does not mean consent.

However consent can be non verbal.

An initial “Yes” does not imply that said yes is good for further stages of intimacy within the same encounter. ie. asking for consent is required at first base, second base, third base, home plate, and any tangential destinations considered throughout. Officially, the government wants you to ask first, and then keep on asking over and over again. Damn that’s hot!

Being under the influence of drugs or alcohol may mean that any clear verbal consent given at the time – was not actually given at all.

Now Law in California to teach the above in schools!

So while I know your post was meant to be a bit absurd on purpose, what you describe (multiple requests for consent with affirmative consent at each stage) is already up and coming.

I’m glad I married long before the feminazis started having success getting the government to regulate sex.

The deck is stacked – not worth the risk, lot’s of young guys headed for trouble with this one. Nowhere have I read a discussion about what happens when a woman decides to lie about having given her consent…

#278 Victoria Real Estate Update on 02.11.16 at 3:33 pm

# 167 Frank

Find the exact quotes to back what you say.

This is typical of you and other house pumpers. You write things without any facts to back what you say.

The Victoria board’s numbers are considered upward biased by many. The same can be said about the frankenumber index numbers released by the Calgary board and the Edmonton board.

Real estate boards have a vested interest in keeping house prices high.

No unbiased index exists in Canada like the Case Shiller in the US that can be considere objective and unbiased.

You quote suspicious numbers when you get your information from the Victoria board’s index.

From 2010 to 2014 we saw falling prices in Victoria while house prices across the rest of Canada were hitting new highs consistently over the same period of time.

Victoria’s housing market could reach the deepest bottom of any Canadian city.

#279 Dan on 02.11.16 at 3:36 pm

And I can see you are talking also about arian Gomeshi, here..
Well, he will be set free. His former employer will pay huge compensation to him. Huge. There will be a book deal and a movie deal (because perversity of canucks
will be hotter than fifty shades…).
Well, gentlemen talk to your women… Communicate.

#280 Trading Naked on 02.11.16 at 3:38 pm

Senior couple, 80 years old, still paying a mortgage(!), and getting crushed by medical expenses – saddest thing I’ve read today: http://www.richmond-news.com/news/weekly-feature/exposing-the-hidden-face-of-poverty-in-richmond-1.2166223

#281 Rational Optimist on 02.11.16 at 3:39 pm

250 NTH on 02.11.16 at 1:42 pm

Apology accepted, though it wasn’t you. “Yuck” is right.

#282 cramar on 02.11.16 at 3:43 pm

Relative to my #131 posting, it is amazing how you can see this debt control in action when you are aware of how the system works.

Earlier this week, I again watched the great video Food, Inc.. There was one segment where the movie producers are explaining that the food supply system in America is controlled by a few huge companies and one is Tyson. Tyson uses independent chicken producers, one of which was explaining that to put up a building costs a few hundred thousand and Tyson controls you by keeping you constantly in debt. They constantly demand this change and that addition, or they will not buy from you. This is designed to keep you spending and in debt. The segment concluded by stating that the average producer is $500,000 in debt and receives $18,000/yr income.

Maybe an extreme, but obvious example of how the economic machine controls you through debt.

#283 Dan on 02.11.16 at 3:44 pm

And I bought 500 shares of Newalta today for 1.90.
Now I will wait until hit 15 again. You have 18 minutes to do the same. Because oil will recover sooner than you think. Last time I paid 2 bucks for Newalta was 2008 and hit 8 not so much latter… Go canucks, go support your own….

#284 AB Boxster on 02.11.16 at 3:58 pm

#250 NTH on 02.11.16 at 1:42 pm

Ah, how like those with intelligent argument to fall back to ad hominem comments.

Too bad, but not surprising.
You may actually have a point and an argument, just not the ‘gonads’ to make it.

Perhaps if you return back to your culturally sensitive, politically correct, feminist loving, freedom from offense, safe place, you will feel more welcomed and appreciated.

http://news.nationalpost.com/full-comment/christie-blatchford-the-ghomeshi-sex-assault-case-started-falling-apart-right-from-the-start

#285 AB Boxster on 02.11.16 at 4:03 pm

#275 IHCTD9 on 02.11.16 at 3:32 pm

This means silence does not mean consent.
———————————-

So if this is the case, and Ghomeshi did not specifically consent to having a Hjob, then this must then be an obvious sexual assault against Ghomeshi.

Oh, the fun the courts will have with this.

#286 Bottoms_Up on 02.11.16 at 4:08 pm

#97 BS on 02.10.16 at 9:08 pm
——————————-
There you go blaming the victim.

If you are going to look at the post-event emails then you surely must take into account the following:
-the fame of the accused
-the confusion of the women post-event
-the desire of the women to find out why he did that and perhaps get an apology (and another shot at being with someone famous)
-and also ask your why did ghoulmeshi keep selfies and emails from 2003…almost as if he was preparing for this day to come

Look at that wife of the nfl player that was punched out in an elevator; no matter what she says or does post-event, it can’t take away the assault that occurred.

Ghoulmeshi isn’t taking the stand; that also says something (he would have obviously taken the stand if these women had consented to this abuse)

#287 Godth on 02.11.16 at 4:16 pm

#254 Smoking Man on 02.11.16 at 2:12 pm

It makes people feel good and keeps them calm if they think some genius knows. Some people have great imaginations and can string together logical sounding stories that baffle most brains, including other experts as they know they’re groping around in the dark. It’s all under control, now carry on shopping with money you don’t have.
https://www.youtube.com/watch?v=4rhypeGB6W4

#288 Smoking Man on 02.11.16 at 4:16 pm

#267 Albert Einstein on 02.11.16 at 2:43 pm

Stay dead and avoid the humiliation.

https://youtu.be/OSkcHeGiUIo

https://youtu.be/-y09KQxcSjc

I come from another planet dude our ship can make it from the sun to the edge of the milky way in less than two seconds.

Ether biotch

#289 jess on 02.11.16 at 4:25 pm

dividend stripping?

The probe is the latest in a series of investigations of banks and funds that claimed tax refunds for dividend payments by selling the stock around the dividend-payment day.

Because of a loophole in German tax laws, the refund was paid both to the buyer and the seller whereas the intention was that only one of them should have gotten it. The laws were amended in 2012.

The Germany newspaper Sueddeutsche Zeitung reported the raids earlier Friday. The newspaper said the transactions allowed people to avoid about €450 million in taxes. The raids took place Wednesday and were conducted by 285 police and tax officers.
=

#290 Gulf Breeze on 02.11.16 at 4:29 pm

Ghomeshi’s accusers nullified their original claims by seeking him out and having sexual relations with him etc…AFTER the ‘assaults,’ took place.

As they didn’t contact the police, and press charges immediately, nor see a doctor to document and treat any abrasions, bruises, etc… it was always a ‘he said, she said,’ case.

Personally, I think he’s probably a disturbed violent ass clown. However, if the judge finds him guilty and the Canadian legal system, bound by precedent could put more people at risk from truly spurious claims than help those who have been abused.

He should be acquited. Social justice warriors and the politically correct crowd have to let the law do its work on this one.

#291 SWL1976 on 02.11.16 at 4:35 pm

#280 cramar

Earlier this week, I again watched the great video Food, Inc.. There was one segment where the movie producers are explaining that the food supply system in America is controlled by a few huge companies and one is Tyson. Tyson uses independent chicken producers, one of which was explaining that to put up a building costs a few hundred thousand and Tyson controls you by keeping you constantly in debt. They constantly demand this change and that addition, or they will not buy from you. This is designed to keep you spending and in debt.

——————————-

If you liked that documentary try Confessions of an Economic Hitman. Same principle, but swap Tyson for International banksters and the chicken farmers for once independent coutries

https://en.wikipedia.org/wiki/Confessions_of_an_Economic_Hit_Man

#292 jess on 02.11.16 at 4:38 pm

comedy movie featuring depp as trump

http://www.funnyordie.com/videos/ad38087bac/donald-trump-art-of-the-deal-movie?_cc=__t___&_ccid=4fb462f769ebbb7b

#293 Tesla on 02.11.16 at 4:38 pm

#267 Albert Einstein on 02.11.16 at 2:43 pm

#232 Smoking Man on 02.11.16 at 12:35 pm

I’m calling bull shit on Gravity Waves.

Modern science, they say anything to keep the funding stream coming, agenda driven.

Ether dogs… UCC
………………………………………………………………..
Albert Einstein was a bit of a nonconformist when it came to his education however he was a naturally brilliant certified genius. His tenets still stand today. He used his abilities to enrich the planet with knowledge. His academic understanding of all things physics is quite simply light years beyond your shallow google generated rants. Einstein was quite simple a virtuoso while you are still an imprudent contrivance. Stick to your day trading! Oh and Albert says hes calling bullshit on your toothless brain.

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

Oh go easy on him… SM said that on a break from performing heart surgeries that he does in his spare time

#294 Gulf Breeze on 02.11.16 at 4:39 pm

Ghomeshi’s first accuser told court, he pulled her head back by her hair, forcefully and then ‘punched’ her in the head three times. She ‘forgot’ to mention that she invited him for dinner the following week and gave him a HJ. She couldn’t help it. She just couldn’t resist his ‘charm.’

But we are not supposed to focus on follow up behavior, just the punches. In order to properly gauge how bad the behavior actually was, it is imperative to follow up, how the accuser responded to Ghomeshi, after the reputed one two three to the head.

Seriously, who invites a man like this to dinner? She likes to give people a second chance, she claimed? And these women are cited as examples of courage for coming forth and testifying? OMG

#295 Ronaldo on 02.11.16 at 4:41 pm

#256 JG on 02.11.16 at 2:20 pm

”……and the end result was nobody really gave a shite if I closed all my accounts or not. So I closed them all right there on the spot. Will never deal with them again.”

Had similar experience with RBC back in 09 when they wouldn’t meet my LOC rate I had with TD…….I moved my trading account over to TD. They are all the same. TOO BIG TO CARE.

#296 SMA on 02.11.16 at 4:58 pm

#244 Mike in Edm

It’s a renters market in Edmonton right now and it gets better every month. If you’re going to sign a year lease let your landlord know how much you are willing to pay, go on kijiji for example and check for rental properties in Edmonton so you have an idea. Rent is down and some are offering free internet & cable with a year lease.

If you’re a true saver, you have nothing to worry about, go on EI and do some upgrades or get in a different field. Keep your chin up because things will only get worse in Alberta and count your blessings your neck is not wrapped up in mortgage, thanks to GT!

#297 Godth on 02.11.16 at 5:32 pm

#289 SWL1976 on 02.11.16 at 4:35 pm

The global north and the global south, it was/is terrible, ignorant and cruel. We’re all the same now under globalization, human resources to be exploited for profit by the few. Time and corruption, along with entropy (to put it all in one word),are the great levelers. It’s hilarious that the great washed elite think they’ll get away with it…again, but history tells a different story. They can make up whatever they think they want (to benefit themselves short term) but their end is obvious. To quote Bob Marley “a hungry man is an angry man”. They’re trying their hardest to keep it all going (for their benefit). Good luck, because the out of touch elite have always needed it in the end and it was never forthcoming.

#298 Smoking Man on 02.11.16 at 5:38 pm

#284 Bottoms_Up on 02.11.16 at 4:08 pm
#97 BS on 02.10.16 at 9:08 pm
——————————-
There you go blaming the victim.

If you are going to look at the post-event emails then you surely must take into account the following:
-the fame of the accused
-the confusion of the women post-event
-the desire of the women to find out why he did that and perhaps get an apology (and another shot at being with someone famous)
-and also ask your why did ghoulmeshi keep selfies and emails from 2003…almost as if he was preparing for this day to come

Look at that wife of the nfl player that was punched out in an elevator; no matter what she says or does post-event, it can’t take away the assault that occurred.

Ghoulmeshi isn’t taking the stand; that also says something (he would have obviously taken the stand if these women had consented to this abuse)
……

You crack me up, if science could figure out how to get funding by proclaiming the earth is flat, and the leftest politicians could figure out how to tax it and proclaimed yes bat man, the earth is flat.

You would buy it hook line and sinker. You’re so programmed. It’s actually hilarious.

#299 Smoking Man on 02.11.16 at 5:42 pm

#250 NTH on 02.11.16 at 1:42 pm
#222 AB Boxster on 02.11.16 at 11:53 am

“What you continue to suggest is that there needs to be actual consent at any point in the engagement”
=================================

Yes, of course.

Clearly you do not understand consent. Consent can be withdrawn at any moment. Do you not know this? Even mid-coitus.

We are done.
(not because you think you stumped me with your questions)
Because I feel gross communicating with you. Yuck.

Apologies Garth & Everyone, I had no idea a simple question would lead to this. lesson learned.
……………….

If the Feminazis get there way consent can be withdrawn retroactively 10 years later.

#300 AB Boxster on 02.11.16 at 5:46 pm

Citi on Canada and negative rates:

http://business.financialpost.com/news/economy/canada-could-adopt-negative-interest-rates-within-the-next-two-years-citi-says

#301 espressobob on 02.11.16 at 5:49 pm

The comment section is proving to be a leading buy indicator.

Not that equities have lower risk given the recent downside?

#302 salonist on 02.11.16 at 6:20 pm

DELETED

#303 Godth on 02.11.16 at 6:23 pm

#299 espressobob on 02.11.16 at 5:49 pm

You should buy, buy, buy Grande style.

#304 M on 02.11.16 at 10:18 pm

Bravo Garth !!!
Now you really get it re banks going bust in Canada :)
I have puts on all of them and I make like thieves.
Up until Sept I had banks folios that made like thieves: 30% and more in the last 4 years.
Dumped it all in Sept..gfuess what I bought LOL

Garth’s story shows how important actually is for a sound recovery, for banks to start going bust.
The last 2 recessions were financially induced and created. Banking sector should never exceed 5% of the economy since finacials are there to support economic activity..not to CREATE economic activity.

No Canadian bank will fail. Take your meds. — Garth

#305 Larry1 on 02.11.16 at 11:27 pm

Wonder how the banks feel about security backed loans these days? I know you can’t time the market but there are some nice sustainable div yields these days which would pay the after tax interest.