Jeez

So the odds of an interest rate increase in 13 days have shot up to 75%. Don’t bet against that. At least two of the Big Five banks aren’t. BeeMo expects the cost of lines of credit, business loans and variable-rate mortgages to increase in July 12th, along with its prime rate. Scotiabank on Wednesday night surprised a lot of folk by flat-out declaring there are three hikes in the offing. In July, October and then the first 60 days of 2018.

If it happens (more on that in a moment), the Bank of Canada rate will have gone from 0.5% – where it’s sat since early 2015 – to 1.25%. That’s a 150% increase in lending costs in seven or eight months. And it won’t be the end, either. The world just changed, it seems. Thankfully you had eight years of warning from this pathetic blog.

We’ll all know more Friday morning before the long weekend. First (at 8 am EDT) Stats Canada lobs the latest GDP report – showing what level of growth the economy is experiencing. The expectation is for annualized expansion of 2.4% last month, and 3.4% for the year so far – taking us back to pre-oil-crash levels. A green light, in other words, for that rate hike. Two hours later the central bank publishes its business outlook report, expected to highlight job growth (the best since 2013) and corporate optimism. More green.

So, up she goes. And down goes real estate.

Meanwhile there’s an interesting theory circulating. Trump’s making is do this. It’s all his fault.

The argument: American monetary authorities want to raise US interest rates consistently over the next couple of years in order to contain growth, inflation and asset bubble formation. But higher rates mean a stronger US dollar, which hurts that country’s exports. Canada, of course, is a major trading partner, so if our dollar is substantially depressed compared to the greenback, American manufacturers get whacked.

The solution’s simple. Elevate the value of the Canadian dollar at the same time by forcing the Land of Horny Beavers to also increase the cost of money. And how would the Trumpians do this? Well, as a trusted Greater Fool canine correspondent in Europe – who speaks with senior Canadian bankers – whispers:

“Essentially it’s been implied to me that the US is “blackmailing” Canada on the side – with trade wars / disputes – etc – unless they get with the rate hike program. There had apparently been some direct conversations in the past 4 weeks between high ranking Trump officials with their Canadian counterparts – basically saying – you better raise rates or life will be difficult.

“Have you noticed how quick the tone changed? On the trade front – the rhetoric has been quiet now for a while and we suddenly have Poloz coming out and saying that rates will now go up – they did their job? Like – almost a bit out of nowhere.”

Hmm. Just tinfoil talk? Maybe. But you have to admit the tone of central banker boss Stephen Poloz pivoted 180 in just days. And at the same time Washington was threatening to tear up NAFTA, was openly ruminating about a hideous border transfer tax, then slapped a fat tariff on Canadian softwood lumber exports. Seems consistent with the administration of a president who just Tweeted about a female reporter he doesn’t like that she was “bleeding badly from a face-lift.” Bully politics apparently work. Better than gender-parity coloured socks.

Well, whatever the reason, rates will rise. So prepare.

Meanwhile, governments in Canada are doing all they can to ensure the coming residential real estate Hoovering is as disruptive as possible. In Vancouver, city council rode roughshod over the legitimate grievances of people who own condos they occupy 50% of the time for business reasons, forcing them to pay an ‘empty houses’ tax that equals $850 per month on a million-dollar property. This assault on private property ownership is really just a tax on wealth, will do nothing to pump the number of rental units available and certainly telegraph that our most self-absorbed citystate is the last place you’d want to invest.

And in Ontario, politicians are not content to merely murder real estate with a foreign buyer’s tax, universal rent controls, an AirBnB crackdown, a coming flip tax, CRA audits or greenlighting an empty-condo tax in TO, but are now hunting down realtors. Coming is a ban preventing agents from representing both a buyer and seller in a transaction – something which these days is common. The concern is that realtors may be unethical. The solution? Get two of them.

Seriously. You can’t make this up.

 

 

231 comments ↓

#1 TheSpangler on 06.29.17 at 6:24 pm

Not first, go ride your bike.

#2 TnT on 06.29.17 at 6:30 pm

Best pic ever!

I picture this being my dog in heaven.

Cheers!

#3 nick on 06.29.17 at 6:37 pm

This was my thought too. All this talk about rate increases literally out of nowhere has been baffling. Inflation doesnt support it, not even close. So the US forcing their hand for balance of trade reasons makes sense and is the only logical explanation Ive seen put forth in the last few weeks.

Crazy.

#4 Russ on 06.29.17 at 6:38 pm

… occupy 50% of the time for business reasons, forcing them to pay an ‘empty houses’ tax that equals $850 per month on a million-dollar property.
========================

This looks like a business opportunity.

Why not “sell” it to a business you own or set up and then rent it back, all in a legal manner?

As a rental unit it doesn’t matter if it’s empty. N’est pa?

#5 Lulu on 06.29.17 at 6:38 pm

Listing is surging once again and nothing is selling, OMG!!
Now the rate set to rise, what can they do? I already seen some price chop in some undesirable neighbourhood yet not moving, not even have showing.. Everyone… The CRASH is happening and will accelerate once the rate goes up in July if this is the case.

Save your cash and rent a year or 18 months, you may pick up a pretty good shack for half of what it’s worth now…. haha!

#6 Danny on 06.29.17 at 6:41 pm

My experience 5 years ago was basically my selling agent also unknowing to me….indirectly represented the buyer through another agent in his office.
No wonder my agent kept pressuring me to lower my selling price.
Agents do need to be more transparent somehow.
Problem they are taught all of the old tricks in the books….so be on the lookout…..and wiser.

#7 Oakville Stinks on 06.29.17 at 6:42 pm

The reasons for an interest rate hike are very dishonest. It’s part of the global agenda by the elite who give Poloz his orders.

The elite are starting to pull the plug on the global economy as discussed at this year’s bilderberg meeting which sets the annual global agenda

#8 TurnerNation on 06.29.17 at 6:47 pm

Welcome to model Toronto.

Where blocking a bike lane causes a level of social media shaming, police-calling as say an assault.

Cutting down a tree without U.N. permission? Murder!

#9 AK on 06.29.17 at 6:49 pm

“The solution’s simple. Elevate the value of the Canadian dollar at the same time by forcing the Land of Horny Beavers to also increase the cost of money.”
——————————————————————–Just like the Brian Mulroney days of the mid to late 80’s.

#10 Smoking Man on 06.29.17 at 6:49 pm

“Have you noticed how quick the tone changed? On the trade front – the rhetoric has been quiet now for a while and we suddenly have Poloz coming out and saying that rates will now go up – they did their job? Like – almost a bit out of nowhere.”-Garth
……

Welcome to the Tinfoil Society, could not aggree more.

#11 Average Joe on 06.29.17 at 6:51 pm

I agree with the idea of having two real estate sales representatives (as they should correctly be called, unless of course, they have passed the brokers’ exam) in any given transaction. It’s the same principle as each party to a contract getting independent legal advice from separate lawyers.

Here’s what I don’t agree with. Having the seller pay for both reps. Seller and buyer should be free to negotiate the fee with their respective salesperson.

Two reasons.

Agency law being the first. Used to be that selling brokerages were extensions of the agency agreement with the listing brokerage. Now, it is so muddy that I don’t know who owes what duty to whom – and I’ve studied contract and agency law!

So, instead of the seller paying for both “ends ” of the commission on a transaction, the seller would negotiate the selling commission with his/her rep, the buyer would negotiate the buying commission with his/her own rep.

This immediately clears up the agency representation issue and secondly, perhaps just as importantly, it would result in downward pressure on RE commissions which remain far too high in most circumstances.

#12 Freedom First on 06.29.17 at 6:52 pm

Yes. It’s always a good time to live a freedom first lifestyle.

Helping others is #2 rule.

I have only 2 rules.

#1
Freedom First
Master of Freedomonics

#13 SimplyPut7 on 06.29.17 at 6:55 pm

Three rate hikes would be a bold move.

I don’t know if it would happen but in a world where Trump is the president of the United States, anything is possible.

#14 rainclouds on 06.29.17 at 6:56 pm

Meanwhile watching Border Security reality TV

YVR, yet another smurf is caught underreporting the amount of cash being brought into Canada.

Several Thick wads of $100 bills (CDN )wrapped in plastic, unreported, are discovered in the luggage.PENALTY? $250 Fine

Try that with US Customs…

Maybe Crazy Donnie can put the squeeze on little potato and his minions to make an example of these shysters.

Keep All unreported money.Problem solved

#15 Pete on 06.29.17 at 6:56 pm

Gees, Garth is subscribing to low-level conspiracy theory: US forcing Canada to raise rates so that C$ can rise?

C$ does not have anything to do with US-Canada trade.

US trade deficits with Canada and USD/CAD rate

2011 US$34 billion, USD/CAD rate: 0.97
2012 US$31.6 billion, USD/CAD rate: 1.00
2013 US$31.7 billion, USD/CAD rate: 1.04
2014 US$36.5 billion, USD/CAD rate: 1.10
2015 US$15 billion, USD/CAD rate: 1.30
2016 US$11 billion, USD/CAD rate: 1.32

you can see that when USD is rising, actually US trade deficit with Canada is shrinking fast. Because US trade deficit with Canada is determined by oil price, not by CAD rate.

Last year, US goods trade deficit with Canada was only $11 billion, down from $78 billion in 2008. Considering the huge service trade surplus they enjoy, there is not much they can complain about anything.

#16 Smartalox on 06.29.17 at 6:56 pm

Pure tinfoil. First, Trump and his administration are so inept, and so wracked with infighting they’d be hard pressed to organize a conspiracy to open a can of beans, without having someone blab about it, let alone forment a covert trade war to manipulate a foreign currency.

Poloz saw the same numbers roll in that we’ll see tomorrow. That’s likely what changed his mind, starting with Wilkins’ announcement two weeks ago.

Also, the US FED has raised rates twice now, and history shows Canada’s rates moving in lock-step 98% of the time.

It’s time to raise the rates. A rise of 0.25% is a fifty percent increase from where they’ve been. Just enough to slap the naysayers awake.

Maybe raising them to 1.50 would be a nice way to celebrate Canada 150?

#17 Kim on 06.29.17 at 6:56 pm

Keep up the good work Garth, you have many friends on the web.

#18 Timmy on 06.29.17 at 6:57 pm

Vancouver has over 25,000 empty homes:

http://www.cbc.ca/news/canada/british-columbia/number-of-empty-homes-in-vancouver-hits-record-high-1.4175999

Thanks to gross mismanagement by the Liberals, many people can’t even afford to rent an apartment in Vancouver, there are 25 thousand empty homes.

#19 raise those rates on 06.29.17 at 6:57 pm

good. finally!! raise those rates!! they should already be at 2.5-3% …

#20 Leo Trollstoy on 06.29.17 at 7:01 pm

#136 InvestorsFriend on 06.29.17 at 2:13 pm
Over the years on a couple of occasions I have tried to point out that his approach of never agreeing with anyone and lecturing everyone including Garth and most recently Warren Buffett (re Home Capital) may be part of the problem. He has lectured against the Bank of Canada and just about everyone.

I am sorry to say that I think it would be obvious to anyone who has read his comments over the years why he might not make a good employee.

Lectures people smarter and more accomplished

Finds it hard to find a job in a booming industry

Definition of loser

Lol

#21 Thankfully renting on 06.29.17 at 7:02 pm

Does Canada need to be blackmailed?

I’m trying to understand.

Can’t the Fed just say, do what you want but good luck rolling your debt and financing your deficit with uncompetitive rates and a volatile Loonie?

#22 I'M NOT POLOZ, DONALD TRUMP! on 06.29.17 at 7:03 pm

I have a feeling that Trump reads my comments about Poloz and his 50-cent Loonie.

Thank you Trump for stopping Poloz and his master plan to lower the Loonie to 50 cents.

#23 Ace Goodheart on 06.29.17 at 7:07 pm

Canada always follows the US on rates. History repeats itself. And it does so in a way that a five year old could understand.

The govt is about to shelack housing. People are pissed. Votes are at stake. Word on the street is a bunch of millionaire speckers are making the great Canadian family homeless and It’s shovels and pitch forks time.

Seriously if you are in real estate to speculate get out. In a liberal social democracy with universal suffrage you do not want to be the hated evil group.

Watched my neighbours lose 250k on a house they bought and reno’d to speculate. They will lose more. They look scared. All on a HELOC. “Everyone is doing it!”.

Seriously. If everyone is doing it and it involves money, you should do the opposite.

We’re going to kiss American a$%. That is a given. Why? Because they are stronger than us, have a bigger economy, way more people and we need them more than they need us. Again, look at history. It repeats. My secret opinion of Trump is different than my public one. Why? I like being able to cross the border.

The days of the million dollar house are numbered. And likely over. Bunch of folks are going to lose their shirts.

Oh well. It’s just economics.

Be greedy when others are fearful and fearful when others are greedy.

For those peeps looking for a hot stock tip from me. Without being specific and in a foolish and not to be relied on way, I would say when the Chartereds start crashing you should start buying.

Happy housing crash Canada!

And Happy Canada Day!

The world’s greatest country turns 150!

#24 Mark on 06.29.17 at 7:10 pm

Bizarre. The Canadian stock market indices haven’t risen in nearly a decade (total return of the TSX = nearly all dividends!), Canada’s economy is on the precipice of some pretty significant deflation owing to its collapsing domestic housing economy, the Canadian dollar is surging, and a Bank of Canada governor is actually contemplating raising the Bank of Canada policy interest rate?

What a bizarre world we live in these days. Unfortunately when Poloz plays games like these, he’s actually destabilizing the economy and causing a loss in that ever-so-important thing called confidence. Its reckless, its unprofessional, and most of all, even if he is just jawboning (which is likely), it creates false optimism (or false pessimism) against those who assess the economic fundamentals and the data and make investment decisions based on such, rather than the made-up fantasy of Poloz and the BoC.

Of course, we’ve seen this story before, and Poloz was forced to cut the policy rate. The data strongly indicates needs for further cuts. So if they do raise, they run the risk of precipitating deflationary fall-out that is even more severe than what they could have simply avoided with a more steady hand on the tiller. The housing market is taking care of itself, stagnant since the 2013 apex and now falling.

#25 Mark on 06.29.17 at 7:13 pm

Finds it hard to find a job in a booming industry

Wow are you ever ill. What part of the industry not booming do you not understand. The evidence has been laid out. Numerous posters have agreed with me.

I am sorry to say that I think it would be obvious to anyone who has read his comments over the years why he might not make a good employee.

That’s the sort of impression I get from you “InvestorsFriend”. But with the exception of today, I’m usually not so rude as to point it out.

#26 Newcomer on 06.29.17 at 7:14 pm

The concern is that realtors may be unethical. The solution? Get two of them.

—————

The oldest solution in the books. From mandating that two employees go on every bank run to double keys for the liquor room, businesses have been getting better ethics compliance this way since forever.

#27 Joseph R. on 06.29.17 at 7:14 pm

Garth,

John Horgan, leader of the BC NDP formally introduced, yesterday afternoon, a motion of non-confidence to the BC Legislature:

http://www.cbc.ca/news/canada/british-columbia/horgan-non-confidence-motion-here-we-go-1.4182755

Lt. Gov. Guichon will now choose to either go with Horgan’s proposition of a GreeNDP government coalition or abort it with a general election.

#28 JSS on 06.29.17 at 7:15 pm

Is it normal to feel depression after regularly reading this blog?

#29 young & foolish on 06.29.17 at 7:16 pm

As my grandad always says – “God loves renters” !

#30 Wet Toast on 06.29.17 at 7:18 pm

Add in a Ndp/Green government, and see what that does to real estate in the Lower Mainland.

#31 Mark on 06.29.17 at 7:21 pm

Meanwhile watching Border Security reality TV

I hope you’re aware that “Border Security” hasn’t been produced in Canada for years (the CBSA essentially banned them after an incident occurred), and they have also discovered cases of outbound currency transgressions, ie: individuals exporting Canadian currency without declaration. Additionally, of hundreds of hours of following CBSA officers, who mostly examined hundreds, if not thousands of travelers inbound from China and elsewhere, they could only come up with a small handful of presentable incidents of currency smuggling. None of which were in quantities sufficient to even make a down-payment on Vancouver or Toronto real estate.

It might be interesting to note that the ‘foreign money’ theory in Canadian RE has been debunked quite thoroughly. More Canadian dollars are actually ending up on the reserve accounts of foreign central banks, than are used by Canadians to purchase foreign goods and services each year. To wit: Canadian dollars are leaving Canada to purchase overseas assets on the balance. Thus “foreign money” simply could not be a source of net real estate demand in Canada, and could not be responsible for elevated prices.

#32 Mark on 06.29.17 at 7:25 pm

“Lectures people smarter and more accomplished ”

Its called debate. And its awfully rich calling someone a ‘loser’ when you are the one who pretty much consumes your entire posting on the blog comments towards blindly contradicting (even when you’re most often spectacularly wrong) what I have written.

My record here is pretty good. I suspect it will get better in the coming months as the sheer folly of trying to raise interest rates into a deflationary environment either dissipates due to Poloz coming to his senses, or worse, they proceed bullheadedly and raise, and have to deal with the fallout of an even more severe downturn than otherwise implied by a collapsing housing market.

#33 Bdog on 06.29.17 at 7:30 pm

Could this really be happening? The pessimist in me says low rates forever.

#34 Blacksheep on 06.29.17 at 7:33 pm

Now that, is a great reason to dump Can RE.

This is a way to isolate your RE equity and then convert to the mighty US$ closer to par.

The wheels are turning…..

#35 DON on 06.29.17 at 7:35 pm

“the rhetoric has been quiet now for a while and we suddenly have Poloz coming out and saying that rates will now go up – they did their job? Like – almost a bit out of nowhere.”

This caught my attention the other day – like flip flop…something was up. Makes sense.

Flopper…got your message from the other day – good to see you back. I am around reading – not much commenting. keep up the posts.

#36 Lulu on 06.29.17 at 7:35 pm

Forgot to mention, if you wanted to live in the Forest Hill area under 100k, here is your chance!! Really!! Check it out!!
https://www.realtor.ca/PropertyDetails.aspx?PropertyId=18352161

Believe it now!? LOL

#37 InvestorsFriend on 06.29.17 at 7:36 pm

Employability

#20 Leo Trollstoy on 06.29.17 at 7:01 pm responded to me:

Lectures people smarter and more accomplished

Finds it hard to find a job in a booming industry

Definition of loser

Lol

**************************************
I am not calling him a loser at all. I genuinely think he needs to consider how his approach of lecturing everyone constantly is coming across to others.

The reality is if you want someone to think you are smart and worthwhile, a better approach is to tell that someone that they are smart and worthwhile and good looking etc. They will think you are smart for being such a good observer of great characteristics.

Constantly telling people you are smart (implicitly) and they are wrong (explicitly) and not smart (implicitly) is just not a great approach in the business world.

Hey I will admit I was often the blog know-it-all before Mark came along and sometimes I still do that. But he seems to take it to extremes. Also I know I have professional financial designations. Him?

#38 Happy Housing Crash Everyone! on 06.29.17 at 7:38 pm

Interest rates are going up around the world. Now they will lie on the way up saying employment strong and inflation is to high and whatever BS they make up. Up and up and up and up rates will go while houses go down down down. Btw NOTHING is selling NOTHING at all. Everyone can see that. Happy Housing Crash Everyone! :-)

#39 Trump Forever on 06.29.17 at 7:39 pm

At what point on the interest rate curve does Ontario become insolvent?

#40 OttawaMike on 06.29.17 at 7:39 pm

1.25 Prime rate. Ooh ..Scary.

Pfft. Is that all you got?

The central bank rate is not the prime rate. Poser. — Garth

#41 young & foolish on 06.29.17 at 7:41 pm

“Seriously. If everyone is doing it and it involves money, you should do the opposite.”

Hmmmm ….. passive investing comes to mind.

#42 jack on 06.29.17 at 7:47 pm

My experience 5 years ago was basically my selling agent also unknowing to me….indirectly represented the buyer through another agent in his office. No wonder my agent kept pressuring me to lower my selling price. Agents do need to be more transparent somehow. Problem they are taught all of the old tricks in the books….so be on the lookout…..and wiser.
—————————————————————
Not True….this is a case of multiple representation and the “Conformation of Representation” that accompanies the offer requires that both the buyers and sellers sign off agreeing to multiple representation. Also, the agreement itself specifies the terms of such representation….Danny you need to read the documents that you sign

#43 Debtslavecreator on 06.29.17 at 7:50 pm

Warning – TFSA case went against the taxpayer per Jamie Golombek in today’s FP
Apparently now that the fraudulent debt bubble and ongoing currency destruction is providing insufficient tax money they have set their sites in the small number of lucky or skilled TFSA investors
This guy averaged one trade every 50 something days and the judge said he was earning business income
Quite frankly where are the specific guidelines ? Now Any of us holding “speculative” investments or trading instead of buying and holding will be at risk of having the TFSA taxed as income
This is yet another assault on property – ban day trading but provide clear rules up front so people can manage and know
What is to stop the from applying this very general rule to all TFSAs and RSPs/RIFs as the tax revenues stall and the rates rise sharply over TVs next few years due to the ongoing sovereign debt crisis ?
This is so banana republic like
Canadstan
Keep stuffing those TFSAs and RSPs and then study your financial history and ask yourself how many governments leave savings especially pension and retirement savings alone as they are going broke and in massive debt ??

#44 Smoking Man on 06.29.17 at 7:51 pm

Laundry matt money for housing very easy these days.

Bitcoin. PayPal

#45 guru on 06.29.17 at 7:52 pm

I know there’s been quite a few people who have argued that a crash can NOT happen without a trigger such as rate increases, major recession, banking collapse etc. These people simply have no clue what is going on out there or they’re blinded by their own bias’. The crash started rolling last month when speculators/flippers began bailing out and it’s accelerating as we approach the summer. I’ve seen this get played out before and you can mark my words that the commuter towns will get obliterated by XMAS (Brampton, Newmarket, Stoufville, Newmarket, Miltonn, Oshawa, Guelph etc will be down 50-60%).

#46 Bobby on 06.29.17 at 7:57 pm

The best way to kill the housing market in BC, in fact to decimate the economy, is to allow the NDP to govern. They can bring the housing market down faster than any rate hikes.
Hopefully we are into an election within the next few months.
There was a reason they were left with only two seats the last time they were in government.

#47 the Jaguar on 06.29.17 at 8:08 pm

On Free Trade, according to Brian Mulroney:

Americans should fear Canada’s economic clout but until formal free-trade negotiations begin, “we keep our heads down and our mouths shut,” says former prime minister Brian Mulroney.

What a gem. What an original. Like Garth, the guy is a certified national treasure. The Jaguar would love nothing more than driving around the country in an open air convertible with a bottle of Wild Turkey and Brian Mulroney in the back seat spouting bits of wisdom like the one above. Mercy. We need more of his kind.
You’re a national treasure as well, Garth.

#48 will on 06.29.17 at 8:08 pm

Thankfully you had eight years of warning from this pathetic blog.

Lol.

#49 Nate the lawyer on 06.29.17 at 8:12 pm

Hey Garth,
You’ve gotta see the conflict inherent in having an agent who is supposed to be looking out for your best interests on both sides of a transaction.. A realtor cannot conceivably be representing the best interests of two parties with opposing interests in the same transaction. It’s about time this stupidity was fixed! Blatant conflict of interest.

#50 will on 06.29.17 at 8:15 pm

Tinfoil

Yup. The Fed is politicized (I think I said that a couple months ago), and Plutz is afraid of the Fed.

#51 Tony on 06.29.17 at 8:25 pm

I’d say it’s a lot closer to 100 percent because as we’ve seen gold should have gone skyward the past two weeks but went the other way. Why? They’re going to lie about the second quarter GDP in America next week. That’s why we saw the big run-up in the U.S. banks shares the past two weeks (even with the weak U.S. dollar) and the sell-off in gold. To sum up the bank shares in America should have been sold off sharply and gold should have run-up the opposite happened. Tomorrow is the 50th anniversary of the release date of The St. Valentine’s Day Massacre. We’ll see if they let the markets drop at least 5 percent tomorrow.

#52 Sue on 06.29.17 at 8:31 pm

#12 Freedom First on 06.29.17 at 6:52 pm

Yes. It’s always a good time to live a freedom first lifestyle.

Helping others is #2 rule.

I have only 2 rules.

#1
Freedom First
Master of Freedomonics

————-

I noticed you were chatting about your menopause symptoms the other day and I thought you might like the following video

https://www.youtube.com/watch?v=Fr6qPQMoifc

Your mood swings might be related to an excess number of yeast infections. Does that sound about right?

#53 AACI Home-Dog on 06.29.17 at 8:32 pm

Will higher rated in North America not make us less competitive against Europe, Asia, etc ?

#54 Doghouse Dweller on 06.29.17 at 8:33 pm

An imposed attitude adjustment at the BOC. Great, its about time, just wondering what`s got them so spooked and so suddenly ? Even Mario Draghi has idled the whatever it takes, for as long as it takes, printing press. Yellen`s weird “not in our lifetime” comment when they have concocted the biggest global bond bubble in recorded history. $ 217 Trillion unrepayable dollars folks ! Chump change for Yellen`s FED ?
Something nasty is afoot and we will be the last to find out. So panic before everyone else does.

#55 lala on 06.29.17 at 8:35 pm

#28 first 2 years it’s pretty normal to feel depressed and then it gets better or you get kuku.

#56 Doug t on 06.29.17 at 8:38 pm

We cannot run from the serious debt situation in this country – this is the bomb that when the fuse is lit will bring many canadians to there knees. If Poloz does start increasing the rate then the match is struck and its game on from there. Hope you all have some “emergency” funds put aside.

RATM

#57 Tony on 06.29.17 at 8:38 pm

I don’t want to jinx things but a lot of GDP growth will come from all the people in the GTA spending money to fix up their house so it still won’t sell and more money will pour into renovations. That’s what you call empty or false growth but on paper it will be growth.

#58 WUL on 06.29.17 at 8:44 pm

#46 Bobby:

The BC NDP were reduced two 2 seats. Just like Kim Campbell’s PC Gov’t in ’93. She was the only sitting PM in history to lose their seat. 2 seats. Include that in your future comments about bad governments. Balanced and diversified is preached here.

#59 Happy Housing Crash Everyone! on 06.29.17 at 8:45 pm

Here comes the NDP and Greens to save stupid Canadians from themselves and crash Vancouver so hard Millennials will be scared for life. Realtors and mortgage brokers face a life time of poverty unless they find another paying job. Their days of being useless and making money is over. Happy Housing Crash Everyone! Happy 150th Canada. :-)

#60 Shawn on 06.29.17 at 8:52 pm

Real estate (ie the Canadian consumer) will be sacrificed at the altar of American manufacturing. Classic. Lose-lose for Canada. A strong $CAD will be short lived when traders price in the consequences.

#61 Ace Goodheart on 06.29.17 at 8:52 pm

#31 Mark:

Money laundering for dummies:

Step one: consulting corporation. Held in a blind trust in a tax haven country (you pick, there are lots).

Step two: pay your consulting fees.

Step three: Caribbean vacation. With a briefcase. Return with briefcase full of US cash. Be careful not to exceed the currency limits for entry.

Step four: repeat step three.

Understand?

#62 Wrk.dover on 06.29.17 at 8:54 pm

#47 the Jaguar on 06.29.17 at 8:08 pm

a bottle of Wild Turkey

——————————–

That is much better than the pink shirt JD that Smoking Scam touts!

Yum!

#63 Tony on 06.29.17 at 8:55 pm

Re: #15 Pete on 06.29.17 at 6:56 pm

Remember the big meeting in London, England? Poloz must have gotten dozens of stares and head shakes over his interest rate policy. Obviously he got clued in that day by the others at the meeting.

#64 For those about to flop.. on 06.29.17 at 8:58 pm

#35 DON on 06.29.17 at 7:35 pm
“the rhetoric has been quiet now for a while and we suddenly have Poloz coming out and saying that rates will now go up – they did their job? Like – almost a bit out of nowhere.”

This caught my attention the other day – like flip flop…something was up. Makes sense.

Flopper…got your message from the other day – good to see you back. I am around reading – not much commenting. keep up the posts.

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

Hey Don,yeah I’ve been quite this week myself as I worked three days this week.

I was at work the other day and I looked at a house and thought’ did I work on that house’ as it looked familiar.

Then it hit me ….it is one of my Pink Snow houses.

No wonder they have had a hard time selling.

They are asking over 5 million and the house is surrounded by 3 houses being constructed with all sorts of riff- raff like myself and another one got bulldozed today.

As I said the other day it will take me a while to get to grips with what it going on on the Westside of Vancouver,but it appears to me that the contractors have already bought the blocks of land a couple of years ago and there is still decent money to be made,just not as extreme margins as before.

The older slightly neglected ,but not derelict houses are now in more direct competition with the newer shinier ones which should slowly keep the prices going down.

Then again,what do I know ,I just work on them…

M43BC

#65 JCM on 06.29.17 at 9:02 pm

I doubt the “Trump blackmailing Poloz” theory — too cloak and dagger.

Much more likely is the theory expressed in the Globe article today by Ian McGugan, which is that central banks around the world are coordinating behind closed doors to deflate debt-driven asset bubbles around the world, including the US stock market, the EU bond market and the Toronto real estate market.

It would be pretty comical if Poloz is now trying to deflate the Toronto real estate market — the market is clearly tanking already. It’s shaking up to be a perfect storm.

#66 yorkville renter on 06.29.17 at 9:08 pm

I was going to suggest Bilderberg meeting made the change, but #7 beat me to it.

Regardless of why, it needs to happen

#67 MSM-Free Zone on 06.29.17 at 9:11 pm

“….Coming is a ban preventing agents from representing both a buyer and seller in a transaction – something which these days is common. The concern is that realtors may be unethical…….”
_______________________

Kind of like an arrogant airline fraudulently overselling seats that don’t exist. Common? Absolutely. Unethical? Ever missed a wedding, a funeral, important business meeting, or a dream cruise of a lifetime?

(Unless of course, you’re a thin-skinned, fake-cover-child, serial lying, ditch pig with the attention span of a seedless watermelon. Then ethics don’t matter.)

#68 Tony on 06.29.17 at 9:18 pm

Re: #36 Debtslavecreator on 06.29.17 at 7:50 pm

The ruling sets up interesting possibilities. Someone could pay tax on their TSFA then the next calendar year lose all their money in the TFSA and get no tax write-off after they paid all that tax the year before.

#69 joblo on 06.29.17 at 9:25 pm

The Financial Stability Board, The Bank of International Settlements above the law?

Global Banking Cartel call the shots, not Poloz, Trump or Tru-duh.

All the Plenary’s Men

https://youtu.be/2gK3s5j7PgA

#70 White Crock BC on 06.29.17 at 9:30 pm

JSS on 06.29.17 at 7:15 pm

Is it normal to feel depression after regularly reading this blog?

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

Yes, until you discover Schadenfreude… then you will be elated after reading!

#71 common sense on 06.29.17 at 9:36 pm

Nice co-ordinated meeting once again like last Feb when they all met and saved the world….

Guess the uber rich are ready to short…

Free markets? HAHAHAHAHAHAHAHAHAHAHAHAHA

#72 Ace Goodheart on 06.29.17 at 9:38 pm

Trudeau’s Dad’s father made his money in gas stations. The Trudeau millions come from that. Enter Petro Canada. Trudeau Sr’s baby.

Alanis Morisette: “I’m a sinner I’m a saint I do not feel ashamed”

Spent years in Europe. Only emotional times I have had have been leaving my host cities. Much harder than leaving any girlfriend. And much more real.

What does all this mean?

For Me? It means we as humans are crappy judges of value. We work on emotion and past experience for financial decision making. Your formative years are between 0 and 23. Anything after that is just replays. If you happen to get lucky and get to be “formed” by someone who actually cares you might end up ok. Doe the rest of us It’s therapy and addiction….

Why did I write this? To prove we are all useless at two things:

1. Predicting the

2. Being objective.

So, if you want to make money investing what do you do?

Easy: do the opposite of what everyone else is doing. Diversified. Chances are you’re right half the time. That is all you need

#73 Arto on 06.29.17 at 9:38 pm

I was just speculating about this issue earlier today with a friend and we came to the same conclusion. Anyone that thinks the BOC runs economic policy in Canada is naive. It’s the US of A that calls the shots.

#74 genbizx on 06.29.17 at 9:39 pm

get rid of real estate agents altogether…sold my house myself…no probs. what a gigantic pile of poo…

is it so hard to construct a website with pictures and details about a house? why not create a body that is required to compile and make available all manner of pertinent and useful stats to help consumers set prices themselves? why give somebody a percentage of something that is mine? for doing what? just puts a lot of power in the hands of people who haven’t earned it.

#75 GFD on 06.29.17 at 9:40 pm

To reform the housing market, get rid of these two bloated behemoths

http://www.cnbc.com/2017/06/29/fixing-fannie-mae-and-freddie-mac-is-key-to-market-reform-commentary.html

#76 Ace Goodheart on 06.29.17 at 9:40 pm

Sorry #1 “Predicting the future” damned auto correct.

#77 Leo Trollstoy on 06.29.17 at 9:46 pm

Hey I will admit I was often the blog know-it-all before Mark came along and sometimes I still do that. But he seems to take it to extremes. Also I know I have professional financial designations. Him?

None

2 STEM degrees. Still finds it hard to find a job

Definition of loser

Lol

#78 Bottoms_Up on 06.29.17 at 9:47 pm

#18 Timmy on 06.29.17 at 6:57 pm
—————
I wonder how many of those empty homes are owned by foreign pension plans…

#79 Mark on 06.29.17 at 9:50 pm

Kind of like an arrogant airline fraudulently overselling seats that don’t exist. Common? Absolutely. Unethical? Ever missed a wedding, a funeral, important business meeting, or a dream cruise of a lifetime?

Actually exceedingly uncommon, and the ability to sell more seats than exist, in anticipation of some passengers “no-showing” improves the return and utilization on their perishable assets.

An airline could choose not to overbook, but then they will probably suffer on their load factors. Most overbooked passengers are discretely dealt with in quite a favourable fashion, with very generous compensation, reroutes, airline business lounge passes, class of service upgrades, etc.

Its modern airline yield management practices that allow, for instance, commoners like you and I to buy tickets to fly that are literally priced at substantially less than the cost of production while the overall airline remains profitable. I’ve bought tickets that were, net of taxes, similar to the cost of just the fuel alone my seat would need to fly the airplane. Seats that have a minimal probability of revenue sale are given away for free to loyal customers through loyalty programs such as Aeroplan. Its all an incredibly successful system that has crushed government-run and regulated competition such as the railways.

Just because some thug airport cops in Chicago got into a tassle with a man who had no interest in upholding his end of the contract he entered into with an airline, is no reason to disrupt a process, overbooking, that has allowed the airline industry to become more efficient, more responsive to customer needs, and able to manage their businesses more efficiently. The result is that the cost of air travel has significantly lagged that of inflation. I’m buying tickets on a route that I frequently travel in Canada for prices similar to what I paid in the mid 1990s. Not too many other services of any kind that you can buy for similar prices to over 20 years ago.

#80 45north on 06.29.17 at 9:53 pm

Have you noticed how quick the tone changed? On the trade front – the rhetoric has been quiet now for a while and we suddenly have Poloz coming out and saying that rates will now go up – they did their job? Like – almost a bit out of nowhere.

“like out of nowhere”

Lulu: The crash is happening and will accelerate once the rate goes up in July if this is the case.

the perfect storm

Ace: Watched my neighbours lose 250k on a house they bought and reno’d to speculate. They will lose more. They look scared. All on a HELOC. “Everyone is doing it!”.

the gig is up

http://www.cbc.ca/news2/indepth/words/gigjig.html

#81 Smoking Man on 06.29.17 at 9:58 pm

One of the most popular trending topics on Twitter today was #StraightPrideDay

Man-0-man it triggered the lunatic lefty fridge. Straight males and straight females celebrating each other’s lust for each other.

What a sin in today’s globalist rainbow the logo crusade.

It’s all about emasculating the males, make them soft, make them easy to control. It’s the only way globalism and a one world government can get a foothold.

No that’s not true, mass migration from people in war-torn areas of the world. Ensuring they will vote in progressives when elections are held. In fact, globalist wonder boy Trudeau is going to make sure new arrivals can vote in the next federal election.

The Ontario government bought in the new sex ed curriculum, they brought in laws that enable the state to take away your sons when the school attempts to feminize them, and you resist.

It’s a diabolical plot.
Sadly Trudeau and Wynne are too brain dead to see what the final outcome will look like, but not the communist behind it, a Cape Breton boy who is smart as shit, and wants to avenge all the Newfie jokes he endured as a kid.

He doesn’t care about the humans he takes down, saving unicorn ducks is what bounces around his head all day.

#82 millmech on 06.29.17 at 10:07 pm

#43
The smart people I know use a financial advisor at arms length to run their TFSA so that they do not get dinged as a business since their advisor makes the trades for them on their behalf.

#83 akashic record on 06.29.17 at 10:22 pm

Forgiveness

https://www.youtube.com/watch?v=tyIndIXjIWw&index=13&list=PL_ApOmCGqaRou4IW2Eh63xiZ4_75C1hWx

#84 Sir James on 06.29.17 at 10:24 pm

Oil prices will now start their climb to $100 and the $CDN to 75 cents. Trump will see to it. Thats my bet.

#85 Willy H on 06.29.17 at 10:24 pm

The theory that the Trump administration wants the BoC to raise rates in tandem with the Fed to protect American manufacturers from Canadian competition might actually be credible if we truly had any manufacturing left in Canada…..

Canadian manufacturing has been decimated over the past decade.

#86 };-) aka Devil's Advocate on 06.29.17 at 10:29 pm

#11 Average Joe on 06.29.17 at 6:51 pm
I agree with the idea of having two real estate sales representatives (as they should correctly be called, unless of course, they have passed the brokers’ exam) in any given transaction. It’s the same principle as each party to a contract getting independent legal advice from separate lawyers.

Here’s what I don’t agree with. Having the seller pay for both reps. Seller and buyer should be free to negotiate the fee with their respective salesperson.

Two reasons.

Agency law being the first. Used to be that selling brokerages were extensions of the agency agreement with the listing brokerage. Now, it is so muddy that I don’t know who owes what duty to whom – and I’ve studied contract and agency law!

So, instead of the seller paying for both “ends ” of the commission on a transaction, the seller would negotiate the selling commission with his/her rep, the buyer would negotiate the buying commission with his/her own rep.

This immediately clears up the agency representation issue and secondly, perhaps just as importantly, it would result in downward pressure on RE commissions which remain far too high in most circumstances.

Hence The Exclusive Buyer Agency Agreement or, for you folks back East Buyer Representation Agreement.

Seller’s don’t pay the Buyer’s Agent, they do increase the price so that the Buyer’s Agent’s remuneration can flow from the proceeds of the sale rather than having the Buyer write two cheques.

F.Y.I. Out West we call ’em “Cabins” NOT “Cottages” (how pretentious is that “Cottages”?)

Mandatory EBA or BRA’s force agents to have that uncomfortable discussion about agency and how your agent (Buyer or Seller) gets paid. It’s a part of full disclosure.

AND… LTD (Limited Dual Agency)? That too will soon be thing of the past. Good riddance.

#87 M on 06.29.17 at 10:33 pm

US is not “blackmailing” Canada.
It ORDERS Canada. Or else !
Canada is the US 10 percenter as economic buffer.
Most of the $ in Canada are actually US.
So “tza man” is right in his right to “order”.
Live with it.
The NORMAL situation between master states and its subservient vassals.
Nice “democratic” rhetoric do not change this simple basic tenet.

#88 M on 06.29.17 at 10:36 pm

” Coming is a ban preventing agents from representing both a buyer and seller in a transaction – something which these days is common. The concern is that realtors may be unethical. The solution? Get two of them.”

Actually…it’s a VERY sensible solution. I am amazed that gov can actually come up with a good idea AT ALL.
This one is absolutely great.

#89 };-) aka Devil's Advocate on 06.29.17 at 10:36 pm

I so totally give up on the human race. What George Carlin said “Your average person is really quite stupid, and if you stop and think about it that means half or them are dumber than that” is too true. Of course half of them won’t understand that quote. };-(

#90 Smoking Man on 06.29.17 at 10:39 pm

#79 Mark on 06.29.17 at 9:50 pm

Boring as shit yet again, tell us about your life a bit, infuse it in your posts so we get a feel for you.

Otherwise, your just a robot that no one can relate to or cheer for.

I did not teach you anything.

#91 };-) aka Devil's Advocate on 06.29.17 at 10:40 pm

#74 genbizx on 06.29.17 at 9:39 pm
get rid of real estate agents altogether…sold my house myself…no probs. what a gigantic pile of poo…

is it so hard to construct a website with pictures and details about a house? why not create a body that is required to compile and make available all manner of pertinent and useful stats to help consumers set prices themselves? why give somebody a percentage of something that is mine? for doing what? just puts a lot of power in the hands of people who haven’t earned it.

Awesome! Good for you!

Downward pressure on real estate fees? Let’s talk after the next SHIFT comes home to roost. For now, during this heady market, yes any fool can sell their own home.

#92 Marcus Duschene on 06.29.17 at 10:46 pm

Any ideas how this may affect the TSX if it actually happens (which I have to see to believe)?

Or is it anyone’s guess?

#93 Marcus Duschene on 06.29.17 at 10:51 pm

Great article, Poloz did a total 180 without warning which is why I was always skeptical he would actually raise anything but my opinion is that he doesn’t have a choice, Canada doesn’t have a choice. The USA will push Canada around as it sees fit, and Canada has to take it (even though it will make the housing industry cry and whine).

#94 yorkville renter on 06.29.17 at 10:55 pm

Was just thinking that Central Banks usually raise rates to put a damper on inflation — but the rates we’re at now are so super low that I think waiting for inflation to start isn’t the answer.

When inflation REALLY kicks in, if rates aren’t back to a reasonable level then there would be a surge in the interest rate and it would actually hurt the economy.

If going from 0.5% to 1.0% in a year would do as much damage as people think, what would happen when we get back to 4%?

#95 Fake News on 06.29.17 at 10:59 pm

The Fake News Media is melting down faster than Frosty the Snowman in the Bahamas. Keep it up Mr President !!

#96 Raging Ranter on 06.29.17 at 11:02 pm

@#72 Ace Gooheart,

Those words were not sung by Alannis Morrissette. It was Meredith Brooks.

As for the conspiracy theory that Trump has pressured the BoC, I heard the same theories in the late 1980s, that Reagan was twisting Mulroney’s arm to raise the value of the loonie. Nonsense then and nonsense now. Poloz is finally realizing he can’t ignore the housing bubble any longer, especially after the last surprisingly strong jobs report. Hawkish sentiments (or what passes for hawkish these days anyway) are being echoed all over the world, even by Bernanke clone Mario Draghi.

#97 CV5 on 06.29.17 at 11:08 pm

B.C. Liberal government loses confidence vote 44-42, sparking either NDP government or election

http://www.cbc.ca/news/canada/british-columbia/bc-liberals-fall-non-confidence-1.4185005

Things will now be deteriorating in a rapidly accelerated manner now that sanity has replaced corruption and lunacy.

#98 crowdedelevatorfartz on 06.29.17 at 11:15 pm

Ok everyone.
Time to be serious…..

If Mark shuts the Hell up for 30 days on this blog…….I’ll change my name.

i know i know…..its a lot to ask and its quite a scarifice….but its one I’m willing to make for “The Group”

Dont thank me yet……Mark’s still talking…..

#99 crowdedelevatorfartz on 06.29.17 at 11:16 pm

“Sacrifice’ jeezus!
Smoking Man is addictive!

#100 yorkville renter on 06.29.17 at 11:22 pm

#97 – maybe Poloz figures this is his chance to follow the crowd and not get brow beaten by the locals by riding other banks coattails?

#101 CL on 06.29.17 at 11:40 pm

As I’ve said many times here and elsewhere, Canada will do what the US wants. It’s that simple.

There was zero chance our rates could stay low while the fed raised rates and the USD strengthened. And here we go.

#102 InvestorsFriend on 06.29.17 at 11:45 pm

Trudeau Family and Gas Stations

#72 Ace Goodheart on 06.29.17 at 9:38 pm said:

Trudeau’s Dad’s father made his money in gas stations. The Trudeau millions come from that.

**************************************
Good for him. Tell us more. That’s an honest way to make a living.

Any of us could have turned $100k into one million by buying Alimentation Couche-Tard shares (mostly a gas station operator) in early 2005 as they are up a bit more than 10 times since then.

K.C. Irving (deceased founder of the massive Irving empire) in New Brunswick started out with Exxon or Esso gas stations and got in a fight with Exxon and built his own refinery. In a weird coincidence Exxon is headquartered in Irving Texas. (Or is that a coincidence? I don’t know). Two great uncles of mine owned an early Irving gas station in Glace Bay Nova Scotia circa 1940’s but the business failed possibly due to a lack of cars and/or a lack of money in that coal mining town. Or maybe they just did not work as hard or as smart as Justin Trudeau’s grandfather did.

Owning gas stations today and in the past looks like an honest way to make a living to me.

#103 Mark on 06.29.17 at 11:50 pm

“Loser”

Pretty rich coming from a guy who’s only purpose here is to troll and spread blatent mistruths about, amongst other things, Canada’s STEM sector, and the horrifically poor job prospects it presents, particularly for top-tier talent.

Really disgusting, IMHO, that Garth has even allowed you to keep up such nonsense. Okay, we all get it, you don’t like me. I don’t know why that is, but its no excuse for behaving in such a juvenile fashion here. There are mere toddlers with better manners than you exhibit here on a regular basis.

#104 T on 06.29.17 at 11:53 pm

There is no such thing as a buyers’ agent. Agents provide buyer representation, but they do not work for the buyers.

Even when you have 2 agents, one on each ‘side’, both are still representing the sellers. Both agents are compensated by the sellers based on commission, the higher the sales price the more money each involved agent receives (can’t really say earned… as most of us are aware).

Having 1 or 2 agents, even 4 or 5, doesn’t make any difference. The only person who can truly represent you as a buyer, is you.

#105 Fake News on 06.29.17 at 11:54 pm

#85 Willy H on 06.29.17 at 10:24 pm
The theory that the Trump administration wants the BoC to raise rates in tandem with the Fed to protect American manufacturers from Canadian competition might actually be credible if we truly had any manufacturing left in Canada…..

Canadian manufacturing has been decimated over the past decade.

__________________________________

Thats what happens when a country embraces fascism and does nothing:

Fascism /ˈfæʃɪzəm/ is a form of radical authoritarian nationalism,[1][2] characterized by dictatorial power, forcible suppression of opposition, and control of industry and commerce,[3] that came to prominence in early 20th-century Europe.

Spare us the Hitler comparison. Govt/Banks ALLOWED our industries to be decimated…..

#106 Mark on 06.29.17 at 11:59 pm

“There was zero chance our rates could stay low while the fed raised rates and the USD strengthened. And here we go.”

Then markets are supposed to take care of that by, for instance, weakening or strengthening the relative valuation of currencies, or reducing investment in the Canadian economy to such an extent that inflation becomes a problem.

The problem we have here is that market signals are strongly screaming *rate cut*. The economy is officially in month over month deflation. The employment market is extremely poor. Wages in the STEM (Professional and Scientific Services) sector are actually deflating quite significantly (so much for the Troll’s theories!) as even the previously viable STEM sector jobs in Canada’s economy, particularly in housing and O&G, are rapidly losing steam (usually a very good leading indicator of where the economy is headed, BTW!). Housing prices are falling rapidly in Canada’s major cities. Interest rates are basically showing minimal to no inflation expectation for the next 20-30 years (ie: the 30-year CAD$ Treasury is priced only for time risk!). And the Canadian dollar is rallying strongly basically in such ferocious urgency as though there’s a runaway freight train that must be stopped.

Why is Canada in the position to maintain low rates while the US has to raise to quell inflation? Its not rocket science, Canada has built itself a much stronger economy over the past 2 decades with extensive investment in the export sector. Instead of fighting 2 loser wars in the Middle East (and being on the verge of another in the Koreas), Canada maintained relative fiscal prudence. Canada’s federal government debt levels are a mere fraction of those in the US on a per capita basis. The reward of this fiscal prudence, to Canadians, is the ability of the central bank to suppress the cost of capital to Canadians without triggering inflation. And the collapsing housing market will place even more downwards pressure on such.

#107 Ponzius Pilatus on 06.30.17 at 12:08 am

#76 Ace Goodheart on 06.29.17 at 9:40 pm
Sorry #1 “Predicting the future” damned auto correct.
—————
Stop apologizing.
Erare humanum est.
And, no one reads your comments, anyway.
Take a cue from Smokie.
He never apologizes for the stupid idiot he is.

#108 paulo on 06.30.17 at 12:13 am

Interesting theory , but i am inclined to agree with another poster that the trump administration couldn’t coordinate a play like this if there life depended upon it
i think it is a simple case of lock step following the us fed
in addition to rumblings of tightening in the EU. poloz also seeing limited results from previous attempts to cool the market in addition to direct conflict of policy plays such as the stupid down payment program that the clown in power in bc at the time introduced has had enough: time to bring out the hammer/raise rates in the hopes that it results in a controlled crash as apposed to the looming crash and burn that could take out the economy at large ….

#109 TRT on 06.30.17 at 12:47 am

Track records speak volumes. TRT knew why Canada is raising rates.

Can he get a job on Bay Street now?

#110 Danny on 06.30.17 at 12:52 am

My experience 5 years ago was basically my selling agent also unknowing to me….indirectly represented the buyer through another agent in his office. No wonder my agent kept pressuring me to lower my selling price. Agents do need to be more transparent somehow. Problem they are taught all of the old tricks in the books….so be on the lookout…..and wiser. ————————————————————— Not True….this is a case of multiple representation and the “Conformation of Representation” that accompanies the offer requires that both the buyers and sellers sign off agreeing to multiple representation. Also, the agreement itself specifies the terms of such representation….Danny you need to read the documents that you sign
——————————-
Jack
My selling agent was also selling my buyer’s home at the same time.
I found out later.
Any comments? Interested in your thoughts on ethics?

#111 paulo on 06.30.17 at 12:59 am

#47 jaguar
Mulroney may not be to far off of the mark, in a world that is expanding and requiring ever increasing amounts of resources,oil,lumber,steel,food and fresh potable water
a country that produces 10X the food required to feed its domestic population,has 64% of the worlds fresh water,
has the second largest reserve of oil on the planet,and virtually unlimited resources of lumber nickle iron etc might be considered the future supermarket to the world wouldn’t you agree? additional bonus a stable and democratic goverment,a healthy dose of world class technical expertise and a best in class banking system. so in response to your post: as we celibate our
150 anniversary the future looks bright and yes we are a polite and politically correct society and defiantly a economic force to be reckoned with as will become evident moving forward

#112 Fish on 06.30.17 at 1:19 am

RE #72 Ace Goodheart on 06.29.17 at 9:30

Good point

let’s see what happens,

#113 Mark on 06.30.17 at 1:32 am

http://www.cbc.ca/news/business/cmhc-special-dividend-1.4184244

“Canada Mortgage and Housing Corp. said Thursday it will pay a $4 billion special dividend to the federal government.”

A few different ways of looking at this:

a) The CMHC is a highly successful entity, writing hundreds of billions of subprime mortgage insurance. Able to pay a $4B dividend to its shareholder. — the likely position of the CMHC.

b) CMHC subprime mortgage insurance is an unnecessary and archaic monopoly created by the Bank Act, and $4B was essentially stolen from Canadian homebuyers as taxes, making housing less affordable — the position of a Realtor that I speak with on occasion.

c) CMHC is paying retained earnings at the top of the market, reckless given that they are likely to need hundreds of billions of capital to deal with the now-in-progress Canadian housing crash and the subprime mortgage guarantees they’ve written against such. — The position of a CMHC/housing bear.

d) CMHC-backed subprime mortgage bonds are less creditworthy because CMHC has $4B less capital available to back them — something that credit rating agencies like Moody’s, DBRS, etc., should be saying and might say in the future.

e) The Government, by decapitalizing CMHC, is sending a strong message that they will *not* be bailing out the CMHC when defaults start accelerating and the CMHC burns through its capital. — something that I might say, with profound implications for the value of equity in Canada’s major banks.

Anyone care to add to this? Could this be yet another ‘event’ that destabilizes the Canadian housing finance market? Much like the 2013 Flaherty CMHC subprime changes marked the top, and HCG’s implosion marked the beginning of the downturn from the plateau?

#114 crowdedelevatorfartz on 06.30.17 at 1:32 am

Mark’s 9 posts today confirm the old adage.
Children should be seen…..not heard.

You’re slipping Smokey.
Marks posting more than you again.

#115 waiting on the westcoast on 06.30.17 at 1:50 am

Well… Garth’s conspiracy theory may be true or it could be one of many suggested scenarios today.

The question I have is why is it taking some external force (magical or otherwise) to get the T2 Liberals and BoC to do what is right and correct the rapidly inflating asset bubbles?

This should have taken place 6-7 years ago… Mark may have been right if they had raised rates back then… ;-)

#116 waiting on the westcoast on 06.30.17 at 2:01 am

Mark says in various posts…”My record here is pretty good. I suspect it will get better in the coming months as the sheer folly of trying to raise interest rates into a deflationary environment either dissipates due to Poloz coming to his senses, or worse, they proceed bullheadedly and raise, and have to deal with the fallout of an even more severe downturn than otherwise implied by a collapsing housing market.”

Actually – your record here has been very poor. And worse, you spout half thought-out theory here and have been refuted many times by many people. And ultimately proven over time that you are wrong.

With regards to STEM, you can keep clinging to that one report to rationalize your inability to get hired or find something else that may add value to your career… Oh wait – is that why you are on this blog?

I feel for you but you need to open up to the world…

#117 Anne Wilson on 06.30.17 at 2:50 am

Fake News

I want to have your babies. Simple , to the point, brilliant. Made me pay attention which most don’t here. People have to face their fate and as much as I want the housing crash for most, I feel tearful for the young and stupid. My kids have been taught well so they will soon have the opportunity to buy when they want to. Too bad about the new BC Govt.

#118 Dan.t on 06.30.17 at 3:05 am

Delete my comments all you want but in BC it seems foreign buyers account for way more than any official body reports. Don’t worry… I wont say what I really think because I’ll probably get banned… seems right this day and age. Don’t call a spade a spade, better to be politically correct.

#119 Freedom First on 06.30.17 at 3:44 am

#89 ….DA…

True that.

I mean how stupid do you have to be to buy a house without a trusted professional doing a housing inspection?

I know. The truth hurts. And ignorance/stupidity is not bliss either. It is expensive. Often life ruining.

Garth is right on the money too. You were warned for 8 years. About everything to do with finances. Including buying or selling a house.

#120 Dan.t on 06.30.17 at 5:14 am

http://www.marketwatch.com/story/the-tightening-slugfest-has-started-and-markets-dont-know-whats-about-to-hit-em-2017-06-29

Listen closely people:

“European Central Bank boss Draghi added “fuel to the fire” with a hawkish remark that the ECB then tried to walk back. At the same time, the Bank of England’s Carney suggested that he could support a stiff upward move for rates. And analysts think a hike up north is “in the bag” after the Bank of Canada’s Stephen Poloz said low rates have done their job.

In other words, it’s a “tightening slugfest,” as Richter puts it.”

The powers that be are telling you in no uncertain terms, the days of cheap money are ending. See you later massively over priced BC real estate.

There will come a day when houses trade for fundamental values once again and not 1.2 mil over cost of land and cost of construction.

The overvaluation is all fluff right now. But it will take years to unfluff and revert to normal fundamental value. sucks but will happen

#121 Dan on 06.30.17 at 5:59 am

#2 your dog is still dead in heaven?

2 of the 3 hikes will happen.

#122 Stock Picker on 06.30.17 at 6:04 am

Back away from the Trump Hate Cocktail…….the line up of central bankers and pols has agreed to synchronize everything from the disastrous effects of emergency rates to gay marriage in every G7 country and resettling the population of the Middle East into the G7 . It’s gone global…..While Trudeau was dancing around playing sock fairy the deal was done…..Junior didn’t get the memo…..poloz is being dragged along kicking and screaming….his Newfoundland iron ore brain trust had done everything they could to drive the dollar down and keep it there…..so much for Newfie power.

#123 Bobby on 06.30.17 at 6:48 am

For #46 WUL

If you will recall, Mr Chrétien came to power with two major planks, to kill the GST and cancel the helicopter program. Interestingly the GST is still with us and the helicopter procurement is a complete fiasco. Mirror that with the promises of our existing PM and the coalition of clowns in BC.
The NDP couldn’t run a hot dog stand.
How’s that for balance?

#124 Keith in Calgary on 06.30.17 at 7:23 am

Garth……

That’s a nice picture of Ipanema beach in Rio de Janeiro……….

#125 pBrasseur on 06.30.17 at 7:31 am

Devaluating one’s currency on purpose is a beggar-thy-neighbour policy, make sense that the US would put pressure on Canada not to do it. And right now they certainly have the leverage to so.

I’m glad if this is the case, I believe the CAD will sink badly enough when the Canadian economy becomes exposed as the house of cards that it is, no need to have the government worsen the situation by actively sinking the dollar, sooner or later it’s going to sink badly enough of its own..

BTW if what Garth says is true and I think it is, notice that is implies a total lack of independence between the BoC and the executive branch. Same is true for the judiciary branch and of course legislative branch, in this country the PM office controls everything. The true proud banana republic of the north!

#126 Freedumb on 06.30.17 at 7:33 am

#95 Fake News on 06.29.17 at 10:59 pm

The Fake News Media is melting down faster than Frosty the Snowman in the Bahamas.

——————————————————–

Well the Easter bunny lives in Manitoba, so there. Ha!

#127 Chico on 06.30.17 at 7:35 am

#98 crowdedelevatorfartz on 06.29.17 at 11:15 pm

Ok everyone.
Time to be serious…..

If Mark shuts the Hell up for 30 days on this blog…….I’ll change my name.

———————————————————————————-

Why wait? How about Susie or Nancy?

#128 Freedumb on 06.30.17 at 7:39 am

I love Mark’s posts. So full of wisdom and insight. Go Mark Go.

#129 MF on 06.30.17 at 7:44 am

A credible theory and a hugely positive development for Canada.

Look at what Trump was able to accomplish with his mid east trip as an example. He persuaded SA to finally tackle the problem of Qatar. I don’t think people appreciate how intense the pressure SA has put on Qatar is. It was impressive.

Also, Trump pulled out of TPP – right after having met with all these weak kneed “leaders” in Europe. He recognized that agreement was disastrous for the US, and did something about it. Good.

Trump also said interest rates have been too low for too long during his campaign. He’s 100% correct. It’s common knowledge that interest rates too low for too long cause asset bubbles and an asymmetrical economy, yet the FED kept rates at almost zero for years, even after lying to us about how “strong” the economy was. It didn’t make sense.

Anyone remember Obama’s last meeting with Yellen near the end of his tenure? The one where the FED was hoping to raise and Obama persuaded it not to (presumably to protect his horrible “legacy”)? Well that “legacy” was tarnished with the election of Trump, a result that (at least partially) occurred because ZIRP led to an uneven recovery where huge chunks of the country were left out.

I think people are no longer used to having a strong US leader who actually cares about his country, and who will do what is necessary to protect it’s interests (and that of it’s allies). We are finally seeing a president acting in the interest of the US. What a breath of fresh air.

MF

Actually most analysts think US growth this year is due to Obama policies, not those of Trump. As for rates, this tightening cycle started during the last administration, and rates are determined by the Federal Reserve, not the White House. I understand you’re young, but try not to be so naive. Embarrassing. — Garth

#130 MF on 06.30.17 at 7:52 am

#3 nick on 06.29.17 at 6:37 pm

“All this talk about rate increases literally out of nowhere has been baffling. Inflation doesnt support it, not even close.”

The BoC:

—>Inflation is low
—>House prices are out of control, along with debt

Pick one^

MF

#131 pBrasseur on 06.30.17 at 8:08 am

#72 Ace Goodheart So, if you want to make money investing what do you do? Easy: do the opposite of what everyone else is doing. Diversified. Chances are you’re right half the time. That is all you need

The surest way to make money is to purchase non-cyclical assets which intrinsic value rises, such as shares of great and growing companies and as opposed to resources (or assets related to resources) and houses for example. Depending on the context that will often make you a contrarian but being a contrarian is not the point. Asset class diversification won’t make you money, but for a price (often a steep one) it may diminish fluctuations of your portfolio, if that is what you seek, many people do.

#132 Another Deckchair on 06.30.17 at 8:12 am

@107 Ponzius Pilatius
” #76 Ace Goodheart on 06.29.17 at 9:40 pm
..
And, no one reads your comments, anyway.”

I do – and “Ace” provides a consistent, alternative view to things relating to this site.

One of the names I’ll search for if quickly scanning the comments – that and “– Garth”.

Keep going Ace…

#133 OttawaMike on 06.30.17 at 8:19 am

Mark’s posts are so bad they are good.
Keep them coming Mark.

Masterpieces all of them,like this movie:

http://m.imdb.com/title/tt0368226/?ref_=m_nm_knf_i1

#134 TurnerNation on 06.30.17 at 8:45 am

There’s no conspiracy here. Fact is our we’re ruled/run by the top % of sociopaths. The rules are in YOUR head, not theirs. Their game not ours.
(You cannot imagine what you cannot process.)

Trump for example is a slightly smarter version of Bush Jr. Just the family business, there’s been a Bush or Clinton in a top US position for the past 3 decades.

Any outcome in a business/game with at least 1 billion in revenue is controlled. See: “war on drugs”. It’s working well…we are flooded.
Major league sports…always go to 7 playoff games. The revenue outcome is staggering. Good business.
War? Yessir always. Land for the free taking.

How smart are they? The life of an elite. Now multiply this guy by 10 million people. Say hi to our bosses.

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

“After graduation, he went to work for a Houston bank, which sent him to Harvard Business School. He stated that during his admissions interview for Harvard Business School, he was asked if he was smart, to which he replied, “I’m fu__king smart.”[12]”

#135 Average Joe on 06.30.17 at 8:49 am

#86 };-) aka Devil’s Advocate on 06.29.17 at 10:29 pm

“Hence The Exclusive Buyer Agency Agreement or, for you folks back East Buyer Representation Agreement.

Seller’s don’t pay the Buyer’s Agent, they do increase the price so that the Buyer’s Agent’s remuneration can flow from the proceeds of the sale rather than having the Buyer write two cheques.”

I agree that the Buyer Representation Agreement (ON) is fine in theory.

In practise though, it is woefully inadequate. Nothing more than a document of convenience for sales reps, and an obfuscating piece of legalese (intentionally redundant) for buyers and sellers alike.

As for raising prices to cover commission… a convenience? Perhaps, but I’m dreaming of a utopia where the cost of selling and buying is excluded from the contract price.

Why? Well, whether it is selling or buying commission, including it in the contract price makes it less “painful” (psychologically anyway) than treating it as an extraneous cost to sell or buy a house which would make more people (or should I say sheeple?) think about it as a negotiable cost.

#136 crowdedelevatorfartz on 06.30.17 at 8:52 am

@#126 Chico and the Man.
“Why wait? How about Susie or Nancy?
*******

Because those names are so boringly common.
Like Marks….like yours.
Unique is what I strive for.
Not to worry. Crowdedelevatorfarts will never die…I will live on in the vaporous nether regions of your nostrils while devising another name.
But only if Mark spends the next 30 days looking for work as feverishly as he posts here.

#137 Penny Henny on 06.30.17 at 8:52 am

I came across this and it reminded me of Mark
“Michael Gazzaniga, a psychology professor who wrote the book Tales From Both Sides of the Brain: A Life in Neuroscience. Gazzaniga’s research looked at patients who needed to have surgery that would effectively sever the communication between the right and left hemispheres of the brain.
Once these two sides of the brain were on their own the researchers gained some fascinating insights into the human mind. One side of the brain essentially would take any effect or outcome and immediately assign a cause to explain it. This side of the brain can’t really pick up on randomness, probability or luck. It simply comes up with a cause for every effect, even when it likely makes no sense.”

http://awealthofcommonsense.com/2017/06/split-brain-understanding-cause-and-effect/

#138 MF on 06.30.17 at 8:55 am

Actually most analysts think US growth this year is due to Obama policies, not those of Trump. As for rates, this tightening cycle started during the last administration, and rates are determined by the Federal Reserve, not the White House. I understand you’re young, but try not to be so naive. Embarrassing. — Garth

-You said it yourself in your post: when we put on our tinfoil, it’s possible to believe the Trump administration is putting pressure on our central bank to increase rates.

Yet when the prospect of the Obama administration putting pressure on their own central bank to leave rates unchanged is brought up, you discard the idea for some reason?

Sorry Garth but fact remains Trump was elected partially because the country had had enough of the democrats policies. ZIRP made for an uneven recovery, and those that missed out voted Trump.

MF

Without ZIRP there would have been a general depression and deflation that would take a generation to fix. But I accept that is too much economics for the average deplorable to digest. — Garth

#139 pBrasseur on 06.30.17 at 8:55 am

#112 Mark – The Government, by decapitalizing CMHC…

Or maybe tax and spend Ottawa just wants the money!

The socialists will raid public and private money anywhere they can for as long as they can to sustain themselves. Notice since borrowing is becoming more difficult they are now tapping into pension funds to finance new infrastructures projects, both provincial and federal levels do it. That’s how socialism works, it does not stop when it realises it doesn’t work, it uses all available sources of wealth and then collapses (while of course still blaming the rich and «greedy» capitalists).

#140 Contrarian Coyote on 06.30.17 at 9:05 am

I appreciate Mark’s posts even if I don’t agree with some them. At least he and some others like Happy, MF, Flop, & Freedom are adding analysis in the comments.

Some of you 1-liners here are like the Boomer versions of neckbeards hanging out on 4chan and zerohedge. Just sad.

Pro-tip to newbies: Most comments here that are 1 or 2 lines aren’t worth reading – they’re just $h!#posting. Save your time and brain cells and just skip over them.

Just wanted to send a shout-out to those that provide data, analysis, and detailed anecdotes on the investing & real estate. Added to Garth, Ryan, and Doug’s posts, it helps fill in the big picture. Much appreciated!

#141 Victor V on 06.30.17 at 9:11 am

BC NDP leader John Horgan is next BC Premier

http://dailyhive.com/vancouver/bc-ndp-john-horgan-minority-government

#142 Average Joe on 06.30.17 at 9:14 am

#104 T on 06.29.17 at 11:53 pm

“There is no such thing as a buyers’ agent. Agents provide buyer representation, but they do not work for the buyers.

Even when you have 2 agents, one on each ‘side’, both are still representing the sellers. Both agents are compensated by the sellers based on commission, the higher the sales price the more money each involved agent receives (can’t really say earned… as most of us are aware).

Having 1 or 2 agents, even 4 or 5, doesn’t make any difference. The only person who can truly represent you as a buyer, is you.”

Well said. But most people will still need assistance.

In order to achieve the goal of independent representation, it cannot be two sales reps from the same brokerage since the agency agreement is actually with the brokerage, not the individual sales reps.

Under the current broker/sales rep arrangement, the seller’s and buyer’s representatives would have to work for two separate and independent brokerages.

In my utopia, we wouldn’t have Salespeople, we would have only Brokers. Consumers would then enter into an agency agreement with a Broker, or a Brokerage if two or more banded together for convenience/cost sharing/love (I’m such a hopeless/helpless romantic).

From a consumer’s perspective, there are only benefits to this approach. From a sales rep’s perspective, not so much. With so much money at stake though, aren’t consumers entitled to proper, professional representation? I think it is long overdue.

#143 Ace Goodheart on 06.30.17 at 9:17 am

RE: #81 Smoking Man on 06.29.17 at 9:58 pm

“One of the most popular trending topics on Twitter today was #StraightPrideDay

Man-0-man it triggered the lunatic lefty fridge. Straight males and straight females celebrating each other’s lust for each other.”

I think the problem with “Straight Pride Day” is every day is Straight Pride Day. Just take a walk down the street with your chosen lovely lady, stop to share a kiss and a moment at a special place. It is fine, no one cares.

Problem is if a homosexual couple or a lesbian couple did that, they might receive some unwanted negative feedback from those who witnessed the activity.

It has taken a long time for people to realize that other adult’s sexual preferences for other adults, are really none of their business. That is what Pride is all about. Leaving people alone to do what they like.

The idea is create a safe space in Society for people to be themselves, whomever that may be.

I have never agreed with sexual education for pre pubescent children. A lot of people disagree with me on that and there is a feeling that we need to start educating them about sex sooner. I say leave child hood alone. When they start asking questions, start answering. But let them be kids until they aren’t kids anymore.

#144 pBrasseur on 06.30.17 at 9:27 am

Actually most analysts think US growth this year is due to Obama policies, not those of Trump. – Garth

What Obama policies exactly (besides being passive) did favor growth?

#145 Ole Doberman on 06.30.17 at 9:39 am

Does anyone know if the rising rates will finally have some affect on indestructible Calgary?

#146 A Reply to #128 MF on 06.30.17 at 9:41 am

“… to protect it’s interests (and that of it’s allies).”

http://blog.dictionary.com/apostrophes-101/

“The apostrophe causes so much strife in part because it’s the culprit in two of the most commonly confused pairs in English: you’re/your and it’s/its. Possessive pronouns (like your and its) never take apostrophes, but their soundalike friends are contractions that require apostrophes. We all struggle with these when writing and proofreading our work, but here’s a quick trick: try replacing the ’re or ’s with are or is. If the syntax works, then you need the apostrophe; if not, it’s a possessive pronoun.”

#147 ANON on 06.30.17 at 9:55 am

Money is a mass psychological phenomenon, it cannot be controlled, and interest is an inverse measure of trust, so it rises as trust falls. There is no conspiracy, the extraordinary popular delusions are simply morphing into the madness of crowds. Same old, but on an unimaginable scale.

#148 paulo on 06.30.17 at 10:01 am

economic stats out this morning green lighting a boc raise
next meeting Scotia banks call looks pretty solid and on the money

#149 Bobby on 06.30.17 at 10:04 am

#143

Exactly. They have no answer, the guy did nothing just sat on his hands. They can’t point to a single thing Obama did that would encouraged economic growth. To think this guy gives out financial advice is embarrassing.

#150 re., Lulu on 06.30.17 at 10:12 am

Listing is surging once again and nothing is selling, OMG!!
Now the rate set to rise, what can they do? I already seen some price chop in some undesirable neighbourhood yet not moving, not even have showing.. Everyone… The CRASH is happening and will accelerate once the rate goes up in July if this is the case.
Save your cash and rent a year or 18 months, you may pick up a pretty good shack for half of what it’s worth now…. haha!

……….

lol. If real estate ‘crashes’ 50%, why is that funny? Are you disturbed?

i do own 3 properties, more renters entering the fray is welcome. Supply/demand

#151 Leo Trollstoy on 06.30.17 at 10:14 am

#132 OttawaMike on 06.30.17 at 8:19 am
Mark’s posts are so bad they are good.
Keep them coming Mark.

I have to admit that the posts do provide some comic relief…

#152 Doug in London on 06.30.17 at 10:26 am

Wow, good thing I scooped up a lot of CPD and XPF while they were on sale. Buy low, sell high. Correct me if I’m wrong, but that is what you’re supposed to do, isn’t it?

#153 Leo Trollstoy on 06.30.17 at 10:32 am

#136 Penny Henny on 06.30.17 at 8:52 am

Cool read. Thanks for posting!

#154 Tony on 06.30.17 at 10:33 am

Re: #148 re., Lulu on 06.30.17 at 10:12 am

After about a 6 month lag period of time rents will start to fall if real estate in the GTA continues to fall. Rents always fall when real estate prices fall. Rents have fallen about twenty percent in both Calgary and Edmonton after real estate there fell 20 to 25 percent since November 2014. In Edmonton it costs about twice as much to rent than to own and rents still plummeted 20 percent.

#155 Tony on 06.30.17 at 10:36 am

Re: #147 paulo on 06.30.17 at 10:01 am

Wait ’til all the home renovations in the GTA factor into the GDP for May and June. In April they would have been non-existent.

#156 n1tro on 06.30.17 at 10:40 am

In a digital society, who needs to carry cash around?! Until the main system that people rely on for daily transactions goes “down” and 24hrs later still has “intermittent issues” <– this is Interact's bullshit word for saying the system is still down and we have no clue what happened.

http://www.cbc.ca/news/business/etransfer-down-1.4185631

Confirmed it with my own bank accounts. Can't even send myself e-transfer of $500.

#157 maxx on 06.30.17 at 10:43 am

I knew it would go down like this – nothing at all to do with what’s good for the real economy, nor taxpayers.

Macroeconomic decisions made within the framework of schoolyard dynamics…..

Excellent news anyways….I sincerely hope that it continues and that realtards get nailed again. And again.
“The concern is that realtors may be unethical. The solution? Get two of them.”
A DUUUH moment such a long time coming from tptb. What stellar performance.

The greater fools who overpaid for their boxes will be watching a better retirement from the rear-view mirror, never to be seen again, braying “how could this happen!!??”

Apart from serious illness, could there be anything much worse than not being able to extricate yourself from financial nowhere land for the rest of your life?

#158 The arson fires are starting on 06.30.17 at 10:43 am

This will be the first of many Arson fires in the GTA housing crash. You notice these fires ALWAYS start to happen during a crash. http://www.cbc.ca/beta/news/canada/toronto/arson-leslieville-fire-1.4185479

#159 SimplyPut7 on 06.30.17 at 10:43 am

#148 re., Lulu on 06.30.17 at 10:12 am

If prices correct 50% I will be laughing too.

I live in Toronto, some areas could correct 70% and the home would barely be affordable to the upper middle class people living in that area.

I’m dying to see 3 rate hikes in a year, just to see the look on the faces of the people who bought over asking thinking their home was going up rapidly forever.

Where are the foreigners to come and rescue us now?

#160 IHCTD9 on 06.30.17 at 10:52 am

#142 Ace Goodheart on 06.30.17 at 9:17 am

Problem is if a homosexual couple or a lesbian couple did that, they might receive some unwanted negative feedback from those who witnessed the activity.
____________________

That’s just the nature of the beast IMHO. Two guys/gals doing PDOA’s will always draw unwanted attention – and it will always be more extreme attention than that of a hetero couple doing the exact same thing. That’s just what happens when you step off the beaten path when it comes to humans.

No way to avoid it either: I myself just aren’t down to witness a couple dudes snogging, and I would forcibly avert my eyes. I’d have to expect said two guys would notice my forced avoidance and would be offended upon the understanding that I think their actions are revolting.

I don’t think there is any way I could walk by said couple in a manner acceptable to me that would not produce bunched panties (boxers?) on their part.

#161 NoName on 06.30.17 at 10:53 am

i wonder why SM didnt posted this yet… short history lesson

https://www.youtube.com/watch?v=g_a7dQXilCo

#162 Ponzius Pilatus on 06.30.17 at 10:56 am

#139 Contrarian Coyote on 06.30.17 at 9:05 am
I appreciate Mark’s posts even if I don’t agree with some them. At least he and some others like Happy, MF, Flop, & Freedom are adding analysis in the comments.

Some of you 1-liners here are like the Boomer versions of neckbeards hanging out on 4chan and zerohedge. Just sad.

Pro-tip to newbies: Most comments here that are 1 or 2 lines aren’t worth reading – they’re just $h!#posting. Save your time and brain cells and just skip over them.

Just wanted to send a shout-out to those that provide data, analysis, and detailed anecdotes on the investing & real estate. Added to Garth, Ryan, and Doug’s posts, it helps fill in the big picture. Much appreciated!
——————-
I believe the more you have to say, the less you have to say.
And what is the “big picture” anyway?
Just another catch phrase.

#163 Calgary Rip Off on 06.30.17 at 10:59 am

#144 Ole Doberman:

Does anyone know if the rising rates will finally have some affect on indestructible Calgary?

Hopefully so. For a prairie town the costs are too high for what the city is. Houses should be $200K for a detached 1500 sq ft, not $500K.

If a person acquired a mortgage that has allowance for rate increases and their income is large enough for the bank to refinance, not much to worry about: Enough money for maintenance and projects, and enough to cover the monthly payment.

Rents may start to be cheaper than mortgages, but they are still close:
https://www.realtor.ca/Residential/Single-Family/18105140/9985-HIDDEN-VALLEY-DR-NW-Hidden-Valley-Calgary-Alberta-T3A5G4-Hidden-Valley

https://www.rentfaster.ca/ab/calgary/rentals/hidden-valley/house/hidden-valley-large-4-bedroom-40690

The real problem is greed. Most of the people that bought properties pre 2004 want the values to remain high so people cant get into the market and they can continue to rip them off with leasing and lack of rent controls. While there are some people with ethics, the majority of people, its all about them and are just nasty. And this is why housing is so expensive, the rat race. https://www.youtube.com/watch?v=dwc3vDzYVvY (Impelliteri Rat Race)

If you are one of the people waiting for a reasonable place, see if you can afford something you like then go for it. Even if you get the place and the value drops a little, it eventually will go up, hopefully, unless the whole oil industry implodes, then Calgary will implode also.

#164 n1tro on 06.30.17 at 11:02 am

@143 pBrasseur

Actually most analysts think US growth this year is due to Obama policies, not those of Trump. – Garth
What Obama policies exactly (besides being passive) did favor growth?

————————————————-
Does subsidizing cell phones for poor people so they can facebook and snapchat count? LOL

http://www.obamaphone.com/

#165 Smoking Man on 06.30.17 at 11:04 am

#113 crowdedelevatorfartz on 06.30.17 at 1:32 am
Mark’s 9 posts today confirm the old adage.
Children should be seen…..not heard.

You’re slipping Smokey.
Marks posting more than you again.
….
Well the more I drink the more I write. So obviously you can tell im cutting back. Have too. Business is booming.

You give away thousands of free invoice systems and the malcontents egomaniac business owners what it customized.

I may have to hire some offshore help, no way I will employee anyone in Ontario with all the anti biz regulations and pay 15 bucks an hour. What is it now, 18 month’s maternal leave.

#166 Eks dee Sipal on 06.30.17 at 11:09 am

#133 TurnerNation… There’s a F-bomb in that Wiki link.

Well, I’m happy you noticed the 7-game thing. Major league sports are absolutely fixed. I didn’t realize this until recently when Christine Lagarde of IMF was exposed as none other than Martina Navratilova.

Notable examples of sports celebrities secretly already had vast wealth to begin with, similar to the entertainment and music industries. Trudea Jr. is none other than Wayne Gretzky’s little brother. When you have all the money in the world due to your family lineage, what do you do with your life? That’s right: Sports, Music, Movies, Celebrity, Politics, Business, oh yeah, and Religion. They’ve got it made already, so what else is there to do?

Think about it. Your true enemy isn’t Left or Right, it’s the secret 0.1%. The evidence is all around you although you can’t see it. That’s why you need me.

Happy Housing Crash Everyone!

#167 Eks dee Sipal on 06.30.17 at 11:21 am

My apologies, TurnerNation, I see you had pointed out the F-bomb…

You won’t believe how Sears… http://www.styledemocracy.com/wont-believe-sears-told-300-toronto-let-go/

Food Delivery is killing middle class restaurants too.

The Paradox of American Restaurants… https://www.theatlantic.com/business/archive/2017/06/its-the-golden-age-of-restaurants-in-america/530955/

Garth, you answered my question a couple days ago with a whole blog entry. Thanks. I thought the BIS outlook was pretty grim and it conflicted with yours. You seem to disagree that there was a disagreement. Are you absolutely sure I shouldn’t liquidate all my holdings until the storm passes? Asking for a friend.

Friends don’t let friends be doomer fools. — Garth

#168 Eks dee Sipal on 06.30.17 at 11:32 am

Friends don’t let friends be doomer fools. — Garth

Ok, I appreciate your sagely advice. One last question for today: I suddenly had $24,000 disappear from my RRSP holdings total with an account at SunLife. The only reason I have RRSP is because of a previous generous contribution from an employer. I check it every so often and I have it fully in US Equity fund with SunLife. The money is trapped there until I retire but at least I have it in the lowest possible fee and highest possible return (and with some risk I know, but I’m young). So, is that missing money the secret back door fees charged by the mutual fund companies I always hear about? Because the US Equity Fund couldn’t possibly have declined that much in just one month, could it?

#169 A Reply to #136 Penny Henny on 06.30.17 at 11:35 am

Are you saying that Mark’s corpus callosum has been severed? Okay, now you’re just being mischievous!

#170 n1tro on 06.30.17 at 11:45 am

#161 Eks dee Sipal

You won’t believe how Sears… http://www.styledemocracy.com/wont-believe-sears-told-300-toronto-let-go/

That’s not unique to Sears. That is the standard MO for mass firings. My first job out of university was working for a dial up ISP company called Interlog. The 2 brothers who started the company got paid $1M to sell the company to PSINet. $1M was a lot back then. Shortly after the company was sold, the office staff was notified of a mandatory Wednesday morning meeting at the hotel across the office. When we were all seated, the VP or COO, can’t remember, of PSINet told us we were all fired (this was mid November) and if we wanted to blame anyone, to blame him because he made the strategic decision. How noble right? We were all give taxi chits to drive us anywhere in the city.
Arrangements were made on an individual basis to come to the office to pick up our personal belongings.

I didn’t care as I just recently started 3 months earlier and their package gave everyone 1 month severance. I promptly book a flight to California for X-mas vacation.

Irony is that a few years later, PSINet went bankrupt. Couldn’t adapt to changing times I guess. What of the COO or VP? Probably somewhere else slowly ruining another company.

#171 David Tremblay on 06.30.17 at 11:53 am

I was going to suggest Bilderberg meeting made the change, but #7 beat me to it.
Regardless of why, it needs to happen

#172 For those about to flop... on 06.30.17 at 11:53 am

Pilatus on 06.30.17 at 10:56 am
#139 Contrarian Coyote on 06.30.17 at 9:05 am
I appreciate Mark’s posts even if I don’t agree with some them. At least he and some others like Happy, MF, Flop, & Freedom are adding analysis in the comments.

Some of you 1-liners here are like the Boomer versions of neckbeards hanging out on 4chan and zerohedge. Just sad.

Pro-tip to newbies: Most comments here that are 1 or 2 lines aren’t worth reading – they’re just $h!#posting. Save your time and brain cells and just skip over them.

Just wanted to send a shout-out to those that provide data, analysis, and detailed anecdotes on the investing & real estate. Added to Garth, Ryan, and Doug’s posts, it helps fill in the big picture. Much appreciated!
——————-
I believe the more you have to say, the less you have to say.
And what is the “big picture” anyway?
Just another catch phrase.

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

The “big picture”is what I would like to remove from above my fireplace and bang you over the head with…

M43BC

#173 more trade war perhaps on 06.30.17 at 11:55 am

Well, here’s an interesting article.
http://www.zerohedge.com/news/2017-06-30/trump-overrules-cabinet-prepares-unleash-global-trade-war

I wonder how this would impact the arm-twisting on increasing the rate? Or, is zerohedge “fake news”?

#174 Xbox Economist on 06.30.17 at 11:57 am

#142 Ace Goodheart

I was on vacation with my family earlier this year. Playing with the kids in the kiddie pool when a lesbian couple decide to come into the water. One straddles the other and they start making out. I asked them to leave. There are plenty of adult only pools on the resort – I don’t care about their sexual orientation. If we were in Canada someone would have called the police on me.

Anyways, I digress. I wanted to talk about the difference between what’s happening today vs interest rate rises in the 80’s. Back then Canadians were entering the labour market in droves. They demanded higher wages and were able to get them. The average savings rate was near 20% (in after tax income). As wages rose so did inflation. Today, despite the number of jobs being created and the increase in productivity, wages are not moving. In many industries wages are actually falling as a result of off-shoring and the use of TFWs. The savings rate is virtually non-existent and Canadians are carrying a record amount of debt. Inflation will be anemic and the corresponding monetary response will be the same. Interest rates will remain low for a long while still. I’ll try to expand on this economic argument next week.

#175 n1tro on 06.30.17 at 12:02 pm

Is the Nasdaq party over? Anyone catch Blue Apron’s IPO yesterday? IPO’ed at $10. $2 Billion valuation. Currently trading at $9.50.

What is a idea is worth $2B?

Delivering recipes + the ingredients to customers.

Yes, I’m not joking here. $2 BILLION valuation. Surely, they must be profitable to warrant such a valuation? Nope. Lost about $50M last year. $1M is spread among the CEO, CFO, and COO’s salaries.

#176 TurnerNation on 06.30.17 at 12:12 pm

Bankers just took over and enslaved another country.
Puerto Rico declares bankruptcy today.

Remember, Iceland was the testing bed years ago. Formula based. It worked.

#177 Keith in Calgary on 06.30.17 at 12:13 pm

“Without ZIRP there would have been a general depression and deflation that would take a generation to fix. But I accept that is too much economics for the average deplorable to digest. — Garth”

————————–

Typical elitest left wing attitude there Garth. told you that you were not a conservative.

Why yes of course……..society can’t have the middle and lower classes benefiting from anything, now can we ? It’s a terrible thing, lowering the cost of living, and the cost of consumer goods……a terrible, terrible thing…….

Like the other 2-3 serious economic downturns I have lived thru (early 80’s RE/oil crash, the mid 90’s GST intro, 200 Tech bubble, all were manageable, and over soon enough, except for this one however, because the world’s bilderbergers are kicking the can down to the road to save their skin in the game, at our expense.

Deflation, trust me, would decimate those in lower income brackets, especially with the bulk of their net worth in one asset — Garth

#178 Livin Large on 06.30.17 at 12:13 pm

Spelling and syntax

“but here’s a quick trick: try replacing the ’re or ’s with are or is. If the syntax works, then you need the apostrophe; if not, it’s a possessive pronoun.””

Or make it much more simple. “They’re” = “they are” and “it’s” = “it is”. Just memory needed rather than a rule.

If you aren’t saying “they are” or “it is” then simply don’t use the contraction. Eliminating contractions completely would be the best solution but no chance of that happening.

And nowmon to “then” and “than”.

#179 Damifino on 06.30.17 at 12:39 pm

#140 Victor V

BC NDP leader John Horgan is next BC Premier
—————————————–

And for the first time in ages, I actually called something right. The Lieutenant Governor handed the reigns to John Horgan and gave implicit approval for a partisan speaker who will consistently vote against the party with a majority of seats. How will the British parliamentary system survive?

Just fine, I expect.

Christy played all her cards and came up short. She gave clear public endorsement for every plank in the NDP platform during her short-lived throne speech while gambling on a new election that didn’t happen.

Now, she’ll have no credibility in opposition. Any doubt she’s finished as BC Liberal leader are put to rest.

#180 Pepito on 06.30.17 at 12:42 pm

#79 Mark on 06.29.17 at 9:50 pm
“…. the ability to sell more seats than exist, in anticipation of some passengers “no-showing” improves the return and utilization on their perishable assets.”
_____________
Blah, blah,blah…. yeah, over booking is good for profits. So, what else is new? It’s still reprehensible and unethical. You’re defending a practice which the airlines themselves can no longer defend. STFU please.

#181 IHCTD9 on 06.30.17 at 1:03 pm

A couple sentences that I composed to help :)

“They’re in there fixing their deficit numbers”

“Back then, Trudeau’s head was much smaller in circumference than it is now. “

#182 Ole Doberman on 06.30.17 at 1:05 pm

Lots of conspiracy like comments today, ok here’s mine, and I don’t think it’s far fetched:

Rates going up and the banks will be happy to repossess your house that no way in hell you’ll be able to afford.

#183 MF on 06.30.17 at 1:15 pm

145 A Reply to #128 MF on 06.30.17 at 9:41 am

“mon·i·ker
ˈmänəkər/
nouninformal
a name.”

MF

#184 TnT on 06.30.17 at 1:21 pm

#128 MF on 06.30.17 at 7:44 am

I think people are no longer used to having a strong US leader who actually cares about his country, and who will do what is necessary to protect it’s interests (and that of it’s allies). We are finally seeing a president acting in the interest of the US. What a breath of fresh air.

This statement speaks volumes of nationalism and fails to recognize what has already happened.
We now live in a global society. Kick, punch, cry all you want; resistance is futile.

Your only way out is Fascism. Choose wisely.

#185 How Market Crashes Happen on 06.30.17 at 1:23 pm

“Breaking stock market losses down even further gives you a sense of how often these losses tend to occur over time. Here are the frequencies in which certain loss thresholds have occurred, on average, in this same time frame: 5% losses three times a year, 10% losses once a year, 15% losses once every two years, 20% losses once every three to four years.

Average historical returns never tell the whole story because so few years or cycles ever follow the averages, but these numbers can be instructive. Stock market investors should expect to lose a little money quite often, see a correction occasionally, lose a decent amount every couple years and lose a lot of money on an Olympics-like schedule.”

http://awealthofcommonsense.com/2017/01/how-market-crashes-happen/

#186 miketheengineer on 06.30.17 at 1:23 pm

Garth et al:

Moving to Hamilton, from Mississauga. I asked the Realtor that I am working with to find me dog friendly large lot, a large garage, and a bungalow. I need to be close to my parents, since they live there and are in ill health. I need a large lot, since I have large dogs, and they need to run, without me hauling ass to a dog park…which they do love.
He sent me this one…..and told me that this is largest lot size in the area…..I can’t go to see it untill monday, due to committments….
I know this would be over one million in Mississauga. It is slightly over 500 in Hamilton. And he said I could convert the basement into an inlaw suite…due to the side door location.

http://www.remaxescarpment.com/detail.cfm?id=1787714

I hope it is still there on Monday.

#187 TnT on 06.30.17 at 1:31 pm

#137 MF on 06.30.17 at 8:55 am

Sorry Garth but fact remains Trump was elected partially because the country had had enough of the democrats policies. ZIRP made for an uneven recovery, and those that missed out voted Trump.

The world has moved on faster than the US Gov ability to help those who voted for Trump. It’s unfortunate for Trump voters but many more humans were elevated to a higher living standard.

The question now is how to stop Fascism taking root in USA?

Answer: Stop normalizing what you see before your very eyes. The leader of the Free World tweets are not normal.

#188 AB Boxster on 06.30.17 at 1:31 pm

So the TSX continues on its slide, down about 1.6% YTD, but down almost 5% from its high of 15,943 on Feb 20, 2017. All the while the S&P 500 pushes upward gaining almost 8% per year.
Still not sure why it makes sense to include more maple in the investing mix.

Canadian monetary policy seems totally nutty.

Oil takes a hit so BOC lowers interest rates.
Canadians take on more and more debt, buying OSB shacks for multi-millions, and nice shiny new cars that they finance over 8 years.

Now all of a sudden Canada is booming, and a rate rise is in the offing.

Sorry, but I don’t buy it. Economies don’t turn around that fast. Poloz’s talking up the Canadian economy is a 180 turn from 3 months ago.

I really don’t think these guys have a clue and I think the markets know it.

#189 Smoking Man on 06.30.17 at 1:32 pm

Breaking News

CNN, Morning Joe is getting bitch slapped, Yuuge on twitter.

MSM going extinct rapidly.

#190 miketheengineer on 06.30.17 at 1:37 pm

Garth et al:
Moving to Hamilton, from Mississauga. I asked the Realtor that I am working with to find me dog friendly large lot, a large garage, and a bungalow. I need to be close to my parents, since they live there and are in ill health. I need a large lot, since I have large dogs, and they need to run, without me hauling ass to a dog park…which they do love.
He sent me this one…..and told me that this is largest lot size in the area…..I can’t go to see it untill monday, due to committments….
I know this would be over one million in Mississauga. It is slightly over 500 in Hamilton. And he said I could convert the basement into an inlaw suite…due to the side door location.
http://www.remaxescarpment.com/detail.cfm?id=1787714
I hope it is still there on Monday.

#191 crowdedelevatorfartz on 06.30.17 at 1:38 pm

@#139 Contrarian Coydog
“Most comments here that are 1 or 2 lines aren’t worth reading – they’re just $h!#posting. Save your time and brain cells and just skip over them.”
******

Ive always admired people that can get the point across in as few words as possible.
It takes thought rather than endless , self absorbed prattle.

My two lines are up

You ( and Mark) should try it sometime.

#192 Damifino on 06.30.17 at 1:44 pm

#176 Livin Large

Or make it much more simple. “They’re” = “they are” and “it’s” = “it is”. Just memory needed rather than a rule.
—————————————–

Agreed… but its is the possessive form ofit (no apostrophe in that case).

English is a dog’s breakfast of arbitrary rules and silent letters. Remember… i before e, except after c. Everyone knows that, don’t they? It’s no wonder people are syntactically lazy these days, especially the younger ones.

Do we go to Darius’s house or to Darius’ house? What if Darius is a surname? Are we off to the Dariuses?

Learning the arbitrary rules of English consumed half of my time in elementary school. I don’t think they put as much emphasis on it anymore.

It’s now a world of abbreviated tweets and texts. Pity.

U no wut I mean?

#193 Ponzius Pilatus on 06.30.17 at 1:54 pm

#170 For those about to flop… on 06.30.17 at 11:53 am
Pilatus on 06.30.17 at 10:56 am
#139 Contrarian Coyote on 06.30.17 at 9:05 am
I appreciate Mark’s posts even if I don’t agree with some them. At least he and some others like Happy, MF, Flop, & Freedom are adding analysis in the comments.

Some of you 1-liners here are like the Boomer versions of neckbeards hanging out on 4chan and zerohedge. Just sad.

Pro-tip to newbies: Most comments here that are 1 or 2 lines aren’t worth reading – they’re just $h!#posting. Save your time and brain cells and just skip over them.

Just wanted to send a shout-out to those that provide data, analysis, and detailed anecdotes on the investing & real estate. Added to Garth, Ryan, and Doug’s posts, it helps fill in the big picture. Much appreciated!
——————-
I believe the more you have to say, the less you have to say.
And what is the “big picture” anyway?
Just another catch phrase.

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

The “big picture”is what I would like to remove from above my fireplace and bang you over the head with…
————-
Come on, Floppy.
No need to get nasty. We’re Canadians. We play nice.
Happy 150th Canada.

#194 Ian Prittie on 06.30.17 at 1:55 pm

Inflation is way underreported in both the US and Canada. The government has an interest in underreporting it.

http://bit.ly/2tycLZL

Polls before the US election showed the number one issue people were worried about was the rising cost of living.

#195 pBrasseur on 06.30.17 at 2:25 pm

Without ZIRP there would have been a general depression and deflation that would take a generation to fix. But I accept that is too much economics for the average deplorable to digest. — Garth

That may very well be true (easy credit damage was done upstream) but what does it have to do with Obama? Just because he happened to be there doesn’t mean he’s behind the central bank policy started by Yellen’s predecessor!

For my part I’m pretty sure Mitt Romney would have done a much better president than tough for business «Saint» Obama!

#196 For those about to flop.... on 06.30.17 at 2:28 pm

Pink Lemonade stand in West Vancouver.

Featured these guys before, they just took another wack at the price and must be seriously concerned by now.

Paid 2.3 in Feb 2016,now asking 2.29.

Like a lot of my cases ,the assessment says yes but the market says get that out of here…

M43BC

1427 19th Street, West Vancouver.

Apr 10:$2,588,000
May 11: $2,499,000
Change 89,000 -3%

1427 19th Street, West Vancouver

Apr 10:$2,588,000
Jun 28: $2,299,000
Change: – 289000.00 -11%

https://www.zolo.ca/index.php?sarea=1427%2019th%20Street,%20West%20Vancouver&filter=1

https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDAyOTlGWA==

#197 Entrepreneur on 06.30.17 at 2:37 pm

On the news today someone mentioned that most of the trinkets like waving flags, pins, etc. that are sell for Canada Day are made in China and I suppose other countries. Very little made in Canada. So what part of Canada Day is Canadian, the word “Canada?”

Also mentioned that is because of the international trade agreements. And on yesterday’s news NAFTA sues Canada the most. How is all of this helping the working Canadians? Not much unless in the middle of this controlled agreement(s). Blogger’s video mentioned about 86% businesses trade internationally.

And #163 SM “hiring offshore help” participation or is he a bit of a shit disturber, lol.

#198 For those about to flop.... on 06.30.17 at 2:42 pm

Ponzi,you reckon you play nice?
I was only joking, but look at your contribution to the thread after Garth Turner lovingly posted a tribute to my beloved blog buddy Boom.

His son Paul thanked Garth and then the gang and then supported me with his GAP Code and then he would have had to read your disgusting contribution.

I am interested in swapping information and getting along with almost everyone on here,you are not one of them after that effort.

I have you pegged as a prick….prove me otherwise…

M43BC

Paul Stacey on 12.27.16 at 4:44 pm
I personally would like to say Thank You to Garth for dedicating a blog about Roy. What a tribute!! And Thank you for being such a kind-hearted soul that would want to do something like this for one of your followers. That is a class act, guy. Thanks also go out to all who have posted their thoughts and memories of him. It truly means a lot to my mom and I. We will all miss him until we meet again.

M64WI
M41WI

Ponzius Pilatus on 12.28.16 at 12:08 am
Jesus, enof now blogdogs.
Good people die every day.
And bad ones, too.
Life goes on.
Deal with it.

#199 SilverSon on 06.30.17 at 2:50 pm

#112 Mark on 06.30.17 at 1:32 am

In the Financial Post article about this $4-billion, it mentions that the CMHC has $244.8-billion in liabilities and $266.2-billion in assets. To me the liabilities amount is probably pretty accurate because they know how much people have borrowed, but what are the assets to which they are referring? Are they people’s houses? If so, the $266.2-billion of assets would be a pretty “soft” number that would shrink by 30% if house values reduce by 30%, no? If that’s correct, it seems their financial situation could invert pretty easily.

Also, I notice that the $244.8-billion in liabilities is some 18% of the total mortgage debt in Canada at $1.32-trillion. Doesn’t this suggest that lots of people have <5% down payment on their houses? If CMHC is supposed to be insurance for people with <20% down payment but it takes 5% down payment to buy a house, should the CMHC liabilities not be 15% of the total mortgage debt of Canada instead of 18%? If that is correct, the liabilities should be $198-billion not $245-billion. The $47-billion seems like a lot more money than the CMHC is supposed to be putting at risk.

I don't know all that much about mortgages so maybe there's something I'm missing. But given the purpose of CMHC and the rules around buying a house, the numbers being published don't seem to correlate.

#200 Entrepreneur on 06.30.17 at 2:53 pm

Oh right, I guess Happy Canada Day to everyone tomorrow and enjoy the day. Canada has definitely changed from the sixties, seventies from a proud, made in Canada product(s) to a cheaper product from other countries.

I guess that these international trade agreements have helped a select few with this control thinking, and in their minds, helped us Canadians with cheaper products/labour but does it help the lower end of the middle class to move up the ladder?

#201 Iconoclast on 06.30.17 at 2:57 pm

#174 TurnerNation:
>Bankers just took over and enslaved another country.
>Puerto Rico declares bankruptcy today.

Bankruptcy isn’t slavery; it’s a step toward freedom.

#202 MF on 06.30.17 at 3:17 pm

Without ZIRP there would have been a general depression and deflation that would take a generation to fix. But I accept that is too much economics for the average deplorable to digest. — Garth

Nobody is denying that ZIRP was needed to avert a larger catastrophe. The problem is the policy was continued longer than was necessary. Now we have another problem that will need to be dealt with, this one related to personal and public debt levels. You said it yourself, nothing was really solved in the aftermath of 2008. If there is any truth to the Trump rumour than we should be thanking him (seriously).

#185 TnT on 06.30.17 at 1:31 pm

Politics is on a continuum. Yes nationalism is the polar opposite of globalism. However, just because someone disagrees with aspects of globalism does not mean they are a fascist. If you think Trump is a fascist I think you need to brush up on your history and study what real fascism looks like. Trump is basically a centrist, similar to what most Canadians are.

MF

#203 Cash Flow Positive on 06.30.17 at 3:48 pm

#38 Happy Housing Crash Everyone!

1.) Interest rates are going up around the world. – YAY!!!!! finally!

2.) Btw NOTHING is selling NOTHING at all. – LOL!!!! What country/city are you talking about, not the GTA ……..LOL!!!!
http://www.mongohouse.com/reports

3.) Everyone can see that. – LOL!!!!, only people with no skin in the game, such as you. But keep writing for our enjoyment!

“Happy Housing Crash Everyone”, you’re hilarious and I echo what you are mostly writing, but only because I want to buy more RE when prices crash.

#204 A Reply to #79 Mark on 06.30.17 at 3:50 pm

“Most overbooked passengers are discreetly (not discretely) dealt with.”

#205 TurnerNation on 06.30.17 at 3:52 pm

Peasants (revolting). Against local alleged Slumlord.
Not publically traded so we cannot profit on this misery.

http://novaramedia.com/2017/06/27/no-to-gentrification-yes-to-rent-strikes-an-interview-with-torontos-parkdale-organize/

#206 n1tro on 06.30.17 at 3:54 pm

“Deflation, trust me, would decimate those in lower income brackets, especially with the bulk of their net worth in one asset — Garth”

Agreed. But last 10 years of “stimulus”…who did it really help?

“the metro areas hit hardest by the recession receive least amount of monetary stimulus from quantitative easing”

https://www.forbes.com/sites/jonhartley/2015/06/25/how-federal-reserve-quantitative-easing-expanded-wealth-inequality/#5be8265a21eb

In 2012, this is what then regular person Donald Trump had to say about QE

“People like me will benefit from this.”

http://www.businessinsider.com/quantitative-easing-will-be-bad-for-you-2012-9

Let’s not pretend that the GFC was to save rich people while using poor people as the excuse to do it. Similar to why people justify buying an electric car to save on gas and any benefits to the environment is secondary.

#207 TnT on 06.30.17 at 3:57 pm

#187 Smoking Man on 06.30.17 at 1:32 pm
Breaking News
CNN, Morning Joe is getting bitch slapped, Yuuge on twitter.
MSM going extinct rapidly.

***

Another pro Trump scrub who speaks from the heart but lacks the meaning behind the message.

A proud “deplorable” who lacks the understanding of what it means to have Trump in office.

Trump’s “deplorables” blind love for dearest leader is the closest we have ever come to Fascism.

Sad as history repeating in your own family.

Didn’t your Dad fight and beat the Nazi’s?

#208 crowdedelevatorfartz on 06.30.17 at 3:59 pm

@#196 Flopster

Re; Ponzi Pilates”
“I have you pegged as a prick….prove me otherwise…”

*****

Well said.

#209 More Trumpnanigans on 06.30.17 at 4:00 pm

“MSNBC hosts Joe Scarborough and Mika Brzezinski say President Trump and his White House used the possibility of a hit piece in the National Enquirer to threaten them and change their news coverage.

“President Trump has a very different account of what happened. ‘FAKE NEWS’, he tweeted during ‘Morning Joe’ Friday morning.

“But Scarborough says he has proof of White House threats earlier this year — he replied to Trump and said ‘I have texts from your top aides and phone records.’

“And an NBC News spokesman told CNN that Scarborough kept several executives apprised of the alleged threats ‘contemporaneously’. This may bolster Scarborough’s stunning claim.”

http://money.cnn.com/2017/06/30/media/national-enquirer-donald-trump-joe-scarborough/index.html

#210 n1tro on 06.30.17 at 4:01 pm

Typo…Let’s not pretend that QE wasn’t made to save rich people while using poor people as the excuse to do it. Similar to how people justify buying an electric car to save on gas and any benefits to the environment is secondary.

#211 Braj on 06.30.17 at 4:05 pm

#142 Ace Goodheart on 06.30.17 at 9:17 am
RE: #81 Smoking Man on 06.29.17 at 9:58 pm

“One of the most popular trending topics on Twitter today was #StraightPrideDay

Man-0-man it triggered the lunatic lefty fridge. Straight males and straight females celebrating each other’s lust for each other.”

I think the problem with “Straight Pride Day” is every day is Straight Pride Day. Just take a walk down the street with your chosen lovely lady, stop to share a kiss and a moment at a special place. It is fine, no one cares.

Problem is if a homosexual couple or a lesbian couple did that, they might receive some unwanted negative feedback from those who witnessed the activity.

It has taken a long time for people to realize that other adult’s sexual preferences for other adults, are really none of their business. That is what Pride is all about. Leaving people alone to do what they like.

The idea is create a safe space in Society for people to be themselves, whomever that may be.

I have never agreed with sexual education for pre pubescent children. A lot of people disagree with me on that and there is a feeling that we need to start educating them about sex sooner. I say leave child hood alone. When they start asking questions, start answering. But let them be kids until they aren’t kids anymore.

Don’t worry. Wynne is already indoctrinating them that their gender, sexuality, and identity are all fluid and they can choose!

This is being taught to children at the age of 8 in Ontario schools.

http://www.transstudent.org/gender

#212 TnT on 06.30.17 at 4:20 pm

#200 MF on 06.30.17 at 3:17 pm

Politics is on a continuum. Yes nationalism is the polar opposite of globalism. However, just because someone disagrees with aspects of globalism does not mean they are a fascist. If you think Trump is a fascist I think you need to brush up on your history and study what real fascism looks like. Trump is basically a centrist, similar to what most Canadians are.

****

MF – this podcast will enlighten you on how a nation drifts into Fascism.

The podcast starts a bit slow but stay tuned, if you are interested in how Fascism starts then you will enjoy the podcast.

Guy being interviewed by Sam Harris is Timothy Snyder.

Tim’s book – On Tyranny: Twenty Lessons from the Twentieth Century

Cheers!

#213 TnT on 06.30.17 at 4:21 pm

Link to podcast

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

Link to book

https://www.amazon.com/Tyranny-Twenty-Lessons-Twentieth-Century/dp/0804190119

#214 In response to TnT on 06.30.17 at 4:37 pm

#204 TnT on 06.30.17 at 3:57 pm

Trump’s “deplorables” blind love for dearest leader is the closest we have ever come to Fascism.

———–

You mean, aside from the fact that the banks and the corporations own the politicians and the media, right?

What about the Patriot Act/C-51, NSA/CSIS/”5 eyes” spying on citizens, illegal wars, police/surveillance state, the militarization of the police, CIA/deep state/MSM propaganda manufacturing consent for nefarious corporate and global agendas and more wars, UN Agenda 21/2030, etc…

Are the above things “close” to fascism, or did fascism already arrive, long before Trump?

#215 TnT on 06.30.17 at 4:44 pm

#208 Braj on 06.30.17 at 4:05 pm
#142 Ace Goodheart on 06.30.17 at 9:17 am
RE: #81 Smoking Man on 06.29.17 at 9:58 pm

I have never agreed with sexual education for pre pubescent children. A lot of people disagree with me on that and there is a feeling that we need to start educating them about sex sooner. I say leave child hood alone. When they start asking questions, start answering. But let them be kids until they aren’t kids anymore.

Don’t worry. Wynne is already indoctrinating them that their gender, sexuality, and identity are all fluid and they can choose!
This is being taught to children at the age of 8 in Ontario schools.
http://www.transstudent.org/gender

****

Problem is the kids are asking in school yards and Social Media before they would ask you.

Good luck with keeping your head in the sand.

The ignorance and fear on this topic causes people to become hateful. Take a moment to see from the other perspective, see if something enlightens you before you pass judgment. I understand your world is changing, don’t fear the change. It is becoming a better world overall.

#216 YVRMICK on 06.30.17 at 4:48 pm

I am new to all this investment talk and am looking for advice…. I sold my house in YVR a few months back and am sitting on a fair amount of cash. I want to sit out of the market for a year or two to see what happens. Is it a poor choice to sit on cash in a bank account? If so what are the best alternatives ?

#217 Victor V on 06.30.17 at 4:49 pm

‘This will feel severe’: Toronto real estate industry bracing for June sales slowdown

http://www.bnn.ca/this-will-feel-severe-toronto-real-estate-industry-bracing-for-june-sales-slowdown-1.793416

#218 crowdedelevatorfartz on 06.30.17 at 4:53 pm

@#201 A Reply

“discreetly (not discretely)….”
******

Perhaps Mark is from Crete?

#219 NorthOf49 on 06.30.17 at 5:04 pm

#188 miketheengineer on 06.30.17 at 1:37 pm

Mike, your loot must be burning a hole in your pocket or something! There is NO WAY you should pay anywhere near $500K for this house. First off, its an East Mountain bungalow that would never fetch that kind of $$ during normal times. I can bet everyone on that street is hoping for some sucker to come along and pay that prices as it would set a juicy comparable on the street. Secondly, it’s a TWO bedroom, cuz they nuked one of the bedrooms to make a dining room. Nobody pays that price for a two bedroom in Hamilton unless its a new condo. You’d be buying into someone else’s resale mistake. Third, you’ll have the “beautiful” view out your front window of the apartments on Mohawk Rd. Beauty! And lastly, I hope you’re handy, this thing has been bunyaked so much over the years, get ready to shell out on a major reno. You won’t get your money back out if you ever had to sell. I mean, what’s with that “pool”???

If you’re itching to spend your cash, take a look at this, get them come down to $500K. It’s probably no more than 10 mins from your parents and your dogs will thank you. And THAT’s a garage!!

https://www.realtor.ca/Residential/Single-Family/18326581/660-MILES-Road-GLANBROOK-Ontario-L0R1P0

Or this: $519,900
https://www.realtor.ca/Residential/Single-Family/18354187/8408-DICKENSON-Road-East-HAMILTON-Ontario-L0R1W0

Or this: $469,900
https://www.realtor.ca/Residential/Single-Family/18345707/27-GRAYROCKS-Avenue-HAMILTON-Ontario-L8W3R9
They’re playing the bidding war BS on this one, but tell em to cram it, put in an offer below list. But don’t get sucked in to outbid. My sister lives on this street, it’s meh, lots of townhouses.

This is a more realistic price point for this area: $399,000 but I’d still talk them down. Needs work, as is, no garage.
https://www.realtor.ca/Residential/Single-Family/18359199/437-UPPER-KENILWORTH-Avenue-HAMILTON-Ontario-L8T4G7

Good luck man, lots of overpriced garbage out there, don’t get sucked in. Prices WILL come down to normal levels, it’s Hamilton!! Think of your resale value down the road, unless it’s going to be your “forever” home.

#220 Victor V on 06.30.17 at 5:10 pm

Canada’s economy shows solid growth, bolstering case for Bank of Canada rate hike

http://business.financialpost.com/news/economy/canadas-economy-shows-solid-growth-bolstering-case-for-bank-of-canada-rate-hike/wcm/567378d5-9415-4898-9157-909af1b0303b

Jimmy Jean, a strategist in the fixed-income group at Desjardins Capital Markets in Montreal, changed his forecast Friday morning to predict a rate increase in July. “Given the persistence of the messaging, the motives provided for the change in tone, the ongoing strength of the data and the market’s repricing, the logical culmination of recent developments is a decision to begin rolling back the 2015 cuts right away,” he wrote in a research note.

Doug Porter, Bank of Montreal chief economist: The GDP report “maintains a now lengthy run of Canadian data matching or topping expectations, and forecasts for 2017 growth just keep climbing. … There’s nothing here to dissuade the Bank of Canada from looking to start removing some of the stimulus, likely starting just next month.”

CIBC World Markets Chief Economist Avery Shenfeld: Canada’s economy is on pace for annualized growth of about 2.5 per cent in the second quarter, “more than enough to justify the recent change in tone from the Bank of Canada.”

#221 calgarytran on 06.30.17 at 5:16 pm

Cryptocurrency is the new money. Collect on dips.

#222 Going Forward on 06.30.17 at 5:20 pm

Garth, I think its time for a refresh on how the NDP-Green party alliance in BC will play out for housing.

May and June in YVR have seen prices going up, sales surging with 75% list ratios, and the spillover effect to other communities is creating equal or more price pressure in all parts of BC.

Buyers, and most everyone, are oblivious to proposed housing policies by these two parties.

Perhaps the ‘its too big to fail’ meme has taking hold of the population since nothing impacts the market – not federal measures to cool the market; not recessions; not new RE taxes; not capital controls from countries investing in Canada; not a ‘America first’ president and renegotiation of trade agreements; not international reports flagging debt crisis issues; not personal debt levels far surpassing the US at their crash; and the list goes on….

On a side note, my unsecured line of credit has gone up from 4.20 to 5.5% in the last 2 months without any notice. So clearly the banks are factoring in rate increases even if the population is not…

#223 TnT on 06.30.17 at 5:26 pm

#213 YVRMICK on 06.30.17 at 4:48 pm

Is it a poor choice to sit on cash in a bank account? If so what are the best alternatives ?

Seriously… if you cashed out in YVR then hook up with a well known financial guy and get a Wealth Forecast done. You will know exactly what to do after that…

Welcome to Freedom buddy :)

#224 crossbordershopper on 06.30.17 at 5:31 pm

i laugh that people actually want to live in Hamilton, like really, lets all go to barton and cannon streets, what are people talking about ,revitalization? the crack heads ? listen , every once and a while the TO people go to the hammer and say hay things are cheap, lets buy, and then after a few years they say, never again, until a new batch of suckers with money come over. Hamilton i know unfortunately very very well, every street, every drug dealer on the corner, the local daytime hookers as compared to the nighttime hookers. like what are people talking about.
Hamilton is a dump that people leave, like myself, you cant change where you were born, but the roads all lead not to Rome, but the hell out of Hamilton.

#225 Asked and Answered on 06.30.17 at 5:48 pm

“THESE ARE CONFUSING times. Everyone’s a potential Russian agent. Facts can no longer be trusted. People keep putting Newt Gingrich on TV. Nothing about our current world makes sense. So it’s understandable that even Donald Trump might have a hard time getting a handle on things.

“Over the past month, Trump has asked no fewer than 15 questions of the world on Twitter. Sure, as the president he has access to one of the most sophisticated intelligence operations in the world, but why listen to legions of experienced civil servants when you have thousands of accounts named Deplorable Mike at your disposal?

“Still, just in case Trump has yet to find the answers he’s looking for, we’ve answered every question he’s asked online for the month of June.”

https://www.wired.com/story/trump-twitter-questions-answered-june/

#226 Smoking Man on 06.30.17 at 5:50 pm

#212 TnT on 06.30.17 at 4:44 pm
#208 Braj on 06.30.17 at 4:05 pm
#142 Ace Goodheart on 06.30.17 at 9:17 am
RE: #81 Smoking Man on 06.29.17 at 9:58 pm

I have never agreed with sexual education for pre pubescent children. A lot of people disagree with me on that and there is a feeling that we need to start educating them about sex sooner. I say leave child hood alone. When they start asking questions, start answering. But let them be kids until they aren’t kids anymore.

Don’t worry. Wynne is already indoctrinating them that their gender, sexuality, and identity are all fluid and they can choose!
This is being taught to children at the age of 8 in Ontario schools.
http://www.transstudent.org/gender

****

Problem is the kids are asking in school yards and Social Media before they would ask you.

Good luck with keeping your head in the sand.

The ignorance and fear on this topic causes people to become hateful. Take a moment to see from the other perspective, see if something enlightens you before you pass judgment. I understand your world is changing, don’t fear the change. It is becoming a better world overall.
…….

Man you really swallowed the cool aid. I personally dont give a flying f-bomb on who or what anyone does or diddles with each our behind closed doors. To each his own.

But to accuse me of hate. You’re the hater.

Im taking about state driven mass feminization of boys so they will resist a one world govt. Thats whats at play here.

If that beast one show poni ever was established you will see what a real fascist is. Think of Hitler with no opposing army.

Idiot.

#227 Fuzzy Camel on 06.30.17 at 6:10 pm

Poloz is following a schedule set out to him by his handlers, you know, the secretive rich dudes who run the world from the shadows.

They weren’t ready to let the global economy tank in 2015 so he slashed rates like a mohel on a baby. Well he says it did the job. What job?
Prevented a crash? OK, nice, so what will hiking do? Nothing’s changed since then.

So what can we gather from watching globally what is going on? They are green lighting a crash, Poloz is dutifully obeying. This one might sting a lot.

BIS said this crash will resemble an economic boom gone bad. Translation, stock market is going to melt up once Trump passes his tax cuts. Fed will hike like an old man with his socks.

All will be well until it isn’t, and some big banks go under. Then it will be a replay of 2008 x 100. Hope you know how to invest for this one.

#228 TnT on 06.30.17 at 6:26 pm

#223 Smoking Man on 06.30.17 at 5:50 pm

Can’t offend what you can’t bend. Hahaha

I see you are offended and your hatred shows in almost every post.

You have the time and means to make this world a better place but instead you waste it on adding to the pain.

Scrubs always make me laugh….

Go read a book :)

#229 Viorelli on 06.30.17 at 10:12 pm

Just got back from Moscow and Ekaterinburg, some relatives are still living there, I have not been back in over 11 years now. Many things had drastically changed, luxury highrises are everywhere, new metro stations, new supermarkets, luxury cars. In the country side things aren’t as rosy and still lots of poverty and alcoholism. LGBTQ community is in hiding again and cannot be in the open, same as JW Jehowa’s witnesses, the church has lots of power all of the sudden. Children are going to the army camps in the summer where there is some serious training, hockey is still popular, especially for boys. My relative who now has a supermarket chain grosses over 7 million CAD per year, 12 locations in different cities, flat tax 10%, labor is affordable, benefits non existing, plenty of products despite the embargo (mostly from China, India, and domestic), GDP is seriously under reported, I don’t know how these sanctions are working but it surely seems much busier comparing to 11 years ago. Seems like Chicago in the 30’s, lots of opportunities for smart people with connections and capital.

#230 Lahdeedah on 07.01.17 at 11:28 am

#81 Smoking Man on 06.29.17 at 9:58 pm

RE: the “new sex ed curriculum” feminizing boys and taking them away from their parents?

What *are* you smoking.

Try, teaching kids about sexual consent so that privileged white boys like Brock Turner don’t feel like its their entitlement to rape a woman behind a dumpster. Try, teaching women its not okay to be sexually harassed or objectified for other’s satisfaction.

If removing a normalized white male sense of entitlement to diminish and dominate other sexes and races is what you’re afraid of, then maybe go move to a country with a predatory male dictator in place…i.e. the US or any other third world country.

Put that in yer pipe and smoke it.

Happy 150th Canada.

#231 Future Expatriate on 07.02.17 at 2:34 pm

Seriously? As IF Trump or ANYONE in his cabinet were smart enough to blackmail anyone, unless it’s Mika/Scarborough over bad press (Trump’s MAIN focus).

1. Trump is a moron. No, clinical. Proven.

2. He fires anyone smarter than he is.

More likely this is a result of some paranoia in the gov by cons who DON’T know these simple facts of life. Trump’s trade talk? Winning over supporters far dumber than he is. Happytalk. Repeated nonesense from USNazi rightwing hate radio. He has no idea what he’s even repeating.

No, blame this one on scared bureaucrats.