What were you thinking?

Much of the hate oozing from the very pores of this pathetic blog yesterday was about pensions. These days it’s estimated 70% of all workers have no corporate plan with any kind of defined benefit (like government workers, teachers and the prime minister). Instead most people have crappy group RRSPs which are stuffed into even crappier mutual funds run by an oft-crappy insurance company. If you’re lucky, the boss kicks in some cash.

And folks change jobs, of course. Sometimes they get to drag behind a portion of a pension as a locked-in retirement account (LIRA). Sometimes not. In any case, registered pension plans run by employers are, on whole, massively inadequate for a world in which people retire at 60 and croak at 90.

The CPP and OAS? Fine, if you live on Cape Breton and like mac & cheese. Every day.

The kids know this. Ask a Mill if she’ll get a pension at 65 and you can watch her tats jiggle in response. Even people on the public payroll who are under the age of 40 have serious doubts about the sustainability of the system. Already funding public pensions is a massive ongoing liability for Ottawa, and every year it augments. As mentioned here yesterday, the annual top-up alone to keep the system stable is more than $400 million. Meanwhile nobody’s topping up private sector pensions. In fact, Mr. Morneau is about to tax the poop out of small business earnings set aside for retirement. And his boss already gutted the TFSA. Seems like we have two sets of rules. No?

Anyway, let’s move on from the hate and dive into the pity.

To make up for the death of corporate pensions (more are murdered weekly), plus their own disastrous lack of self-discipline and silly desire to do stuff like have kids and seek happiness, tons of Canadians have gambled everything on their house. It is their financial strategy, their savings vehicle and their retirement plan. For the few who are now cashing at, or near, peak house, it worked great. What a ride. For everybody else, massive uncertainty.

Here are some scary numbers (thanks to the Ontario Securities Commission):

  • The home ownership rate in Ontario among those 45 and older has hit 76%. Astonishing. And a record number of people own multiple properties, says Scotiabank.
  • Half have a mortgage, half do not.
  • Half have saved nothing.
  • 45% say their home is their pension plan. They’ll have to cash out to retire.

Says the regulator’s report: “Findings suggest a large number of Ontario homeowners, 45 plus (particularly pre-retirees) are replacing retirement planning with the belief that home equity gains will finance their retirement. This approach to retirement planning can be sustainable so long as residential properties maintain or increase in value. However, to the extent Ontarians 45 plus are overestimating their ability to finance their retirement using their homes, or if there is a downward pricing correction in Ontario’s housing market, a number of Ontarians 45 plus may be at risk of not meeting their retirement savings goals.”

And if this is the case in Upper Canada, where a nice house only costs a million or so, just imagine the mess personal finances have become in YVR and the Lower Mainland, where the spending rate is 108% of the average income and properties are extreme. Don’t people understand a one-asset strategy is the ultimate definition of risk?

Nope. Absolutely not. It’s led to a pile of household debt which, at $2.1 trillion, is bigger than the entire economy. People have net worth without any wealth. They make payments to own stuff. It’s absolutely unsustainable.

So the Fed will raise rates again this year and the Bank of Canada will follow. Our central bank rate will have tripled in six months. There’s another full 1% to come in 2018, so mortgages that were 2% will end up being 5%, just as credit is restricted thanks to new lending regs at the banks. This may not cause a housing crash (although Toronto prices are already in a bear market), but we don’t need one to screw things up. With a 76% home ownership rate and scant liquid savings, diminishing pensions plus rising longevity and epic debt, people require house prices to escalate annually – and hold at those levels until the day they need out.

And what are the odds of that?

Right up there with Justin calling me for advice. But I’m ready.

209 comments ↓

#1 Fake News Again on 09.26.17 at 6:07 pm

I remember when I used to comment about such things almost ten years ago and got “hate on’d” for it. Now it seems my “conspiracy theory” on govt workers sticking it to us is true.

#2 bb on 09.26.17 at 6:07 pm

“Half have a mortgage, half do not.”

That’s a lot of of (mortgage free) boomers and cash buyers!

#3 JSS on 09.26.17 at 6:10 pm

Since the topic du jour is around pensions, how much money should a 43 year old married straight male have in their RRSP/TFSA etc. by now?

#4 AGuyInVancouver on 09.26.17 at 6:12 pm

Even Janet Yellen admits they don’t fully understand the low inflation rate.
https://www.bloomberg.com/news/articles/2017-09-20/yellen-brushes-aside-inflation-mystery-as-fed-eyes-rate-hike
Given that, don’t expect them to be focused on “fighting inflation”, instead they’ll be looking at deflating asset bubbles.

#5 Bobby on 09.26.17 at 6:16 pm

It is becoming increasingly apparent that a large percentage of Canadians are outright financially illiterate. Unbelievable! Ironically, many seek advice from commissioned realtors and mutual fund salesmen who only get paid if you actually buy something.
Our hapless PM plays on this illiteracy in order to ignite a class war to garner the millennial vote. The individual who works hard, sacrifices much and earns his money, doesn’t inherit it, is made out to be the bad guy who isn’t paying their share.
This isn’t going to end well.

#6 HoweStreet.com on 09.26.17 at 6:20 pm

Ross Kay on HoweStreet.com Radio:
BC Foreign Real Estate Buyer Tax Evasion.
Trudeau Government and Foreign Buyers vs. Canadian Homeowners.

http://www.howestreet.com/2017/09/25/bc-foreign-real-estate-buyer-tax-evasion/

#7 X on 09.26.17 at 6:20 pm

Funny how the gov’t wants to punish those few that do use a corp to save some retirement, when so many others who have not saved any money will be looking for the gov’t to help them out.

It does appear that the gov’t is intent on lowering house prices, as if everybody spends all of their money on a mortgage there is nothing left to save (especially after taxes) or to spend to stimulate the economy.

#8 AK on 09.26.17 at 6:21 pm

And this is why you can’t rely on anybody but yourself when it comes to retirement. Stop relying on CPP or any defined pension plan, these are all top ups to what should be your own personal retirement savings.

It’s not hard to accumulate enough money yourself in TFSA’s and RRSP’s to fund a wealthy retirement. Consider your CPP and defined benefits a luxury to go with it.

#9 Parksville Prankster on 09.26.17 at 6:26 pm

One option that has fallen out of favour with historically low interest rates is Annuities. Coming in a range of flavors and price ranges, they may be the only way some may be able to move a little of the longevity risk off their own balance sheet, and onto that of an institution. Buying our own ‘pension’ maybe the only viable choice for many without a DB or DC pension in place.

When rates are low annuities are a disaster. — Garth

#10 john m on 09.26.17 at 6:31 pm

I Guess Justin is doing the right thing then getting the people who dodge taxes and are sitting pretty (not as pretty as they want tho,they want this to continue?) to start paying their fair share…they are preparing for their retirement and God help the working man who has no pension plan…after all we are all Canadian’s and we all deserve the same anything else is a culture of entitlement and discrimination and those same people who want to be rewarded and continue their tax dodging entitlements will also bleed everything they can out of CPP etc that the average canadian will depend on to survive>>>”just an old man stating his opinion”

#11 Hans on 09.26.17 at 6:31 pm

When they say that real estate will fund their retirement, are they differentiating between hoping for a capital gain on the property and those renting part or all of the property out? Important distinction imo. Houses of varying types can still be purchased for up to a 10% cap rate(albeit not in the city center). Sure, being a landlord isn’t for everyone and yes, there are headaches that come with being a landlord as there are for any business proposition….that being said, the leverage that is allowed with real estate is incredible. Someone who’s buying with realistic expectations and has done research into what they could rent out the place for should be able to expect that multiple properties would fund a retirement. Repairs, delinquent tenants, rent controls, etc. are all risks that can be somewhat accounted for. Price it into what you’re thinking about doing with a property and if the shoe fits, buy it.

#12 Debtslavecreator on 09.26.17 at 6:32 pm

DB pensions are completely unsustainable and quite frankly they mean nothing because your paid in steadily declining paper that is not adequately offset by any COLA paid and for many DB pensions the COLA will be tiny or suspended for much of the next 10-15 years
Sadly many relying mainly on DB pensions will be wiped out in their 70s and 80 s

The housing market is in a correction that many will realize in 2-3 months is a crash
I expect May-June 2018 to offer the best buying opportunity for long term investors

#13 Garth is my enabler on 09.26.17 at 6:33 pm

Some highlights from yesterdays legendary post By Garth.

This is why next election could be Canadexit thanks to Garth Turner

1. The politician – elected on public whimsy, drenched in risk..
2. The bureaucrat – paid richly by the public, yet strangely unaccountable.
3. Overlord Class of public sector workers in Canada – 3.5 million people
4. Overlord Class of public sector workers in Canada – 24% of the working population.
5. Overlord Class of public sector workers in Canada – Risk is foreign
6. Overlord Class of public sector workers in Canada – Benefits are assured
7. Overlord Class of public sector workers in Canada – Salaries are guaranteed
8. Overlord Class of public sector workers in Canada – With the security of a life-long string of monthly payments after they retire
9. Overlord Class of public sector workers in Canada – Wants to increase taxes, but not decrease spending
10. Overlord Class of public sector workers in Canada – Average retirement pay-out is $1.2 million after 35 years on the job
11. Overlord Class of public sector workers in Canada – Current shortfall (called the unfunded liability) is $4.5 billion
12. Overlord Class of public sector workers in Canada – Ottawa has to find about $415 million in additional revenue every year for the next 14 years to meet its obligations to retiring workers.
13. Overlord Class of public sector workers in Canada – Deputy minister, who made a very large salary, did not need to save for retirement.
14. Overlord Class of public sector workers in Canada – Knew he’d receive a monthly payment based on the five best (highest-paid) years of his career, as well as retain the benefits of the public service health plan.

Also Happy Birthday to every Overlord Class of public sector worker who is this year 70 years of age and still working.
At three ministries there are 8 of them!!! At MTO, M of Education, Labour and Health, that I know about! Since this information is available to public please feel free to research more.

#14 Joe2.0 on 09.26.17 at 6:34 pm

Tell Justin a broken clocks right twice a day.

#15 Mike in Toronto on 09.26.17 at 6:35 pm

“you can watch her tats jiggle in response. ”

I had to read this three times to see how it could possibly *not* be lewd.

I feel old.

#16 HanMan3000 on 09.26.17 at 6:36 pm

JSS: Financial Samurai in an American personal finance blogger who has done some estimates of net worth for “above average” people and couples by age/years worked.

Please pay close attention to how defines “above average” – he is by no means talking about average net worth or average pre-tax savings. However, these can be good benchmarks if you happen to fit his definition.

https://www.financialsamurai.com/the-average-net-worth-for-the-above-average-married-couple/

#17 armpit on 09.26.17 at 6:37 pm

Garth,

Incorporation Tax loopholes were created for the rich and privileged.

And Government saw it was Good.

They are created covertly, challenged in courts where wider loopholes become allowed, and only those with high priced accountants utilize them.

And Government saw it was Good.

Government officials are aware of them and use the loopholes themselves.

And Government saw it was Good.

Then Small businesses who are becoming successful, hire Accountants who educate them the benefits of incorporations … splitting their income, paying dividends to their spouses, etc.

And Government saw it was Good.

And now, everyone wants to call themselves a “business man/woman” and incorporate, thus reduce their taxes….including the local drug dealer.

And Government saw it was….wait for it… time for a Change!!!

Next on the list… taxing the health benefits used…i.e. dental, medical, and prescriptions (i.e. dental bill paid by your dental plan) as taxable income.

Bottom line…

When only minority Privilege discover the loophole, it is allowed. But when the masses learn about it and implement it…the government will shut it down.

No worries though, another loophole will be created for the Privileged and the cycle will repeat.

-30-

#18 crossbordershopper on 09.26.17 at 6:40 pm

i have been to cape breton, wonderful along the cabot trail.
there is a crazy guy selling lobsters, right by the causway, stop by if you can, have some fish cakes in his little diner.
tour etc.
then you enter the causway. its sad with millions of canadians who have never traveled this country, dont know cape bretton or saskatchewan or whatever.
southern ontario is like southern california, crazy traffic busy, i dont know by 2050 how it will look, but similar to califorinia without the benefits.
well anyway, millions of canadians live on kraft dinner, and collect their minimum goverment pension and live perfectly all right, and living in cape bretton is quite nice.
real estate values are all local, if you dont need to have 900K cash to buy nice house in southern ontario, you only need 150K in cape or less, so sydney ns might not be the nicest city, and most people are relatively poor. its all relative. but with amazon here, and all corproate store selling same stuff, less income less expenses is easier to deal with than traffic, high costs, high salary.

#19 [email protected] on 09.26.17 at 6:41 pm

“45% say their home is their pension plan. They’ll have to cash out to retire”. That is scary stuff !!

#20 Toronto #1 City on 09.26.17 at 6:42 pm

Our economy in Toronto can withstand higher interest rates because we are the financial capital of the world.

Our city Toronto is rated #1 by the Economist in ranking for Best City in the world, best city for Young People and best city to marry our honourable women.

Our city promotes equality by giving preferential treatment to Canadian-born Torontonian women so that she can propel our city to great heights and make our country a world superpower.

If you do not respect women in Toronto, you will become homeless like Ranting Millenial.

Our city is the best in the world, and it’s because we propel women to a status higher than God.

#21 mother on 09.26.17 at 6:42 pm

If the government only messes things up when they try to legislate this kind of thing, then what is the solution? It’s too late for education is it not.

#22 YVR Update on 09.26.17 at 6:42 pm

This link summaries all the mess we are close to getting into:

http://vancouversun.com/news/local-news/experts-take-on-b-c-s-housing-affordability-crisis-at-annual-ubcm

#23 Dan.t on 09.26.17 at 6:45 pm

There is one rule in Canada. If you were a cave man you would simple grunt…
Me buy house, me get super rich!
Me buy condo, me get super rich!
Me buy anything real estate, me get rich,

of course that is until things change. But then again, maybe this will be the first time in human history that the price of something goes up forever.

Seriously think about it. So an average family 250k house in lower mainland 12 years ago is now at least 900 k, so in the next 12 years it will be 1.8 million, and so on and so on.

No one sees that everyone, no matter who you were, what you did, where you worked, what you saved…. had access to hundreds of thousands of dollars…often unchecked, tossed to you, so many financially unqualified people, just bought and bought, and got insanely lucky and made a ton of money.

If you were conservative and thought rationally, you lost.

That is the lesson the gov wants you to learn. Do what we say, and when we say spend money and buy crap, do it and get rewarded with massive tax free capital gains, undeclared rental income (believe me there is tons of it), shadow flipping and so on.

So either Canadians have to earn massive wage increases or foreign buyers with buckets of cash have to keep buying Canadian real estate. At what price is a condo, or a townhouse simply too much?

So houses are worth so much now because the Canadian dollar is worth jack s**T now, or because people have the ability to finance and borrow massive amounts of credit to buy 1 asset.

Garth you are thinking logically. No one does that anymore.

Go with the herd. Regurgitate the same thing that the herd says…

no mortgage no life.
its only debt.
they will never raise rates.
this house is my retirement.
Real estate never goes down.
Buy now or buy never!

Just act act and don’t think. It is a self fulfilling prophecy.

But seriously, why are you surprised. Months or years ago studies showed Canadians don’t understand debt and interest rates.

I would argue if there is only one thing to understand about debt it is what rate of interest do you pay to repay that debt?…or said otherwise, interest rate is the end all and be all of debt, but Canadians, obviously most debt pigs can’t put 2 and 2 together.

Whatever, just keep buying houses from each other.

Tulipmania is going to be lame in comparison to what happens if credit gets further restricted over the next 2-3 years.

#24 TEMPLE on 09.26.17 at 6:46 pm

“Seems like we have two sets of rules. No?”

Of course we do. And the reason the private sector has such terrible pension prospects is because of your right wing ideologies. We took our own poison. I’m surprised you can’t see the connection between these two things. Your analogy about lobsters from a few days ago? Very apropos; you just got your characters mixed up. My take is that if the public sector has strong unions and good pensions/benefits, the private sector should try and return to the time when it had those same things as well. Trickle down doesn’t work, unless it is something other than water that is trickling down…

#25 CanInAus on 09.26.17 at 6:51 pm

Living overseas in Australia, born and bred in Ontario. Over here they have superannuation (there version of RSP). Big difference is that its mandatory that at least 9% of your income goes into it. At least over here people will have something when they return. It is essentially retirement planning for dummies. Since living here I feel like one lucky dummy. I have way more set aside than most of my friends in Canada. Over the past eight years I’ve been earning an average of 10% on my investment. Canada would be very wise to adopt a similar system. It will take a lot of pressure off the old age pension.

#26 mario on 09.26.17 at 6:56 pm

worked for the federal government for 7 years in my 20s. The benefits, vacation, and defined benefits were nice. However, the boredom was mind numbing. no amount of perks and job security was worth going into work day in and day out pretending to be busy. the perks are in exchange for your sanity. company got privatized I took a severance, moved by pension into a LIRA, invested it all, started a business and never looked back.

#27 NOTHING SURPRISES on 09.26.17 at 6:57 pm

#4 AGuyInVancouver

Even Janet Yellen admits they don’t fully understand the low inflation rate.

/…………………………………………………………………………./

Your article may be out of date. I heard today she is reconsidering another rate increase this year.

#28 Suede on 09.26.17 at 6:59 pm

Two words…

blockchain

CPP should have an initial coin offering and T2 should make a cryptocoin to tax.

Canacrypto + Canabis = Surplus for CanADA

#29 ShawnG in TO on 09.26.17 at 7:03 pm

of those without a mortgage, how many have a heloc?

#30 n1tro on 09.26.17 at 7:05 pm

@JSS

$55K in TFSA
$180K in RRSPs

By the time you are 43.

#31 Danny on 09.26.17 at 7:06 pm

Too bad Harper never called you for advise…..he definitely needed it.
Oh yes I remember……. Harper shut MPs up.
Sometimes I wonder if we are blaming the victim here?
Victim to:
Pushy realtors -buy…buy…buy…invest in housing
Lowest mortgage rate enticements in history
Almost ZERO interest for savings in banks..
Very poor knowledge about depth and mortgage by the masses.
So many decided to buy that second house….many Condos sold and many took money out of the bank
Distrust and fear about the stock market….remember the US downturn …..left a bad taste here too.
And yet Harper was quiet…and never called Garth.
See even Republicans and conservatives here never saw these past unusual times driving private debt…
Or did they….somebody benefited from all these huge private debts?
Wonder who?
All those that sold things….mainly physical goods…yes and buildings.
Taking advantage of the people’s greed ( sellers and buyers )….and financial ignorance.
At least Garth we keep asking you to enlighten us and the conversation continues at least with some degree of intelligence.

#32 Bob Dog on 09.26.17 at 7:09 pm

So what I hear you telling me is, there is no future in Canada where the young can avoid a third world standard of living thanks to the terrorists that have seized control of our government.

Everyone should know about the NAFTA-TN Visa. Im glad I learned about it.

An individual may obtain authorization to work in the U.S. under TN visa status in one of sixty-three occupations.

https://www.tnvisabulletin.com/limited-occupations-tn-status/

#33 JustMe on 09.26.17 at 7:11 pm

What Destroyed Rome Was Its Unfunded Government Pensions

The Decline & Fall of Rome was driven by the UNFUNDED guarantee of PENSIONS and like social security today, there was nothing actually put aside. It was always assumed that the state would be able to fund its promises.

This is the primary problem we face. Unless we deal with this issue, we are doomed. We can argue about the Federal Reserve, gold standard, and a host of other issues, but those are nothing in comparison to this single issue.

http://www.businessinsider.com/martin-armstrong-what-destroyed-rome-2011-5

http://s3.amazonaws.com/armstrongeconomics-wp/2011/05/armstrongeconomics-rome-unfunded-pensions-051811.pdf

#34 Small_town_Albertan on 09.26.17 at 7:16 pm

Let them eat cake!
Hrrrm..who was it that said that and how well did it go over..
Oh yeah, the French Revolution!

#35 Mike on 09.26.17 at 7:27 pm

The comments here yesterday left me nauseous. It’s what elites drool over, class warfare to distract everyone from the fact that the government and those in it are screwing over Joe Q. Citizen, some of whom happen to have P. Eng or PhD behind their name.

EVERYONE has the right to keep what they’ve earned under their own power. The dystopian, marxist attitudes on this blog over the past months of “sticking it to the wealthy” and “I want what’s his” leave me with little if any hope for this country.

It’s this attitude that is going to sewer our country at some point in the future. Those of you who are smart enough to see T2 and Morneau for what they are, good on ya!

#36 Smoking Man on 09.26.17 at 7:28 pm

The 45% of boomers who’s pention is in their house is the reason Housing Market is not coming back anytime soon. If there is even a slight up tick in prices unlike before were we saw inventory dry up. The exact opposite will happen.

They missed the big boat in April now they will be happy with a life raft.

Just look at the listings surge in Sept.

Dr Smoking Man
PhD Herdonomics

#37 rainclouds on 09.26.17 at 7:34 pm

#3 jss”Since the topic du jour is around pensions, how much money should a 43 year old married straight male have in their RRSP/TFSA etc. by now?”

Astounding.

Dude, Nobody cares about your sexual orientation.

Go back and read past blogs and you may realize how stunningly incomplete your query is.

Let me partially assist. How much money do you and your presumably hetrosexual wife want to have upon retiring. Work backwards.

Simply Unbelievable.

#38 n1tro on 09.26.17 at 7:36 pm

#10 mario on 09.26.17 at 6:56 pm
worked for the federal government for 7 years in my 20s. The benefits, vacation, and defined benefits were nice. However, the boredom was mind numbing. no amount of perks and job security was worth going into work day in and day out pretending to be busy. the perks are in exchange for your sanity. company got privatized I took a severance, moved by pension into a LIRA, invested it all, started a business and never looked back.
——————————————
+1 I only lasted 1 year before having to leave for my sanity.

Hey TEMPLE, how many sick days did you take last year? Still waiting for that example of a government job that isn’t filled in the private sector.

#39 RentYVR on 09.26.17 at 7:37 pm

“Right up there with Justin calling me for advice. But I’m ready.” Please no, I don’t want my income taxed more to support those poor “entrepreneurs” that you keep telling us are so hard done by!

#40 For those about to flop... on 09.26.17 at 7:39 pm

Good to see some people lately getting in the howmuch articles I post.

Here is the latest effort…

M43BC

“United States of Money in a 3D Map

The Department of Commerce just released the latest Gross Domestic Product (GDP) data by metropolitan area. GDP represents the total value of all goods and services everyone produces and sells. The American economy is complex and multifaceted, and GDP is the best way to summarize it all in one number. And breaking GDP out by geography provides and easy snapshot of the haves and have-nots in America.”

https://howmuch.net/articles/gdp-by-metro-2017

#41 Where's The Money Guido? on 09.26.17 at 7:42 pm

Re: #3 JSS on 09.26.17 at 6:10 pm
Since the topic du jour is around pensions, how much money should a 43 year old married straight male have in their RRSP/TFSA etc. by now?

As Mike Myers said, “One Billion dollars!”
That’s the only way you’ll get to keep whatever you make, because you’ll be an insjder….

#42 Shawn on 09.26.17 at 7:47 pm

Are health care professionals considered civil servants?

#43 JustMe on 09.26.17 at 7:47 pm

Prime Lower Mainland real estate markets still reeling from foreign-buyer tax

One year on, West Van, Richmond prices, sales have yet to recover

in West Vancouver this August, benchmark house prices have fallen by 6.3%, the biggest drop in the Metro Vancouver region. Realtors say the price plunge is more dramatic at the high end of the market.

“There, we have seen price reductions of 20% to 30%,” said Brent Eilers of Re/Max Masters Realty in West Vancouver.

https://www.biv.com/article/2017/9/prime-lower-mainland-real-estate-markets-still-ree/

#44 john m on 09.26.17 at 7:48 pm

I know people who have used these tax loopholes for years have hundreds of thousands in savings and exploit the system>OAS,CPP and even GIS<<all of which the average Canadian lives on to survive upon retirement so please tell me how this culture of entitlement should continue?…and by the way i love Cape Breton and i also like Craft Dinner ,i really don't care about $50 dinners or impressing my neighbor's nor do i feel like a loser :-)

There are no ‘loopholes’. People playing by the rules, paying every cent they have been obligated to, are being targeted. Don’t fall for cheap government propaganda. — Garth

#45 When the Whip Comes Down on 09.26.17 at 7:48 pm

Garth, I recall many of the so called experts on housing stating nothing will happen to real estate prices absent a major economic event such as a recession or…interest rate shock….what are these folks saying now? What did they define as a “shock”. I suspect a tripling of the BoC rate in 6 months would qualify.

#46 AGuyInVancouver on 09.26.17 at 7:51 pm

#27 NOTHING SURPRISES on 09.26.17 at 6:57 pm
#4 AGuyInVancouver

Even Janet Yellen admits they don’t fully understand the low inflation rate.

/…………………………………………………………………………./

Your article may be out of date. I heard today she is reconsidering another rate increase this year.
_ _ _
You misunderstand, I agree she will raise rates and not wait around waiting for inflation numbers (the favoured argument of Mark/Tony etc.)

#47 Nonplused on 09.26.17 at 7:57 pm

Don’t forget Garth most of those government employees also bought a house many moons ago and have enjoyed the same gains that the rest of us are planning to retire on.

The one thing I don’t get about the plan to retire on home equity is how do you execute? I mean there is the disastrous reverse mortgage, which is about the worst case of deceitful marketing in Canada next to cell phone data plans but the data plans simply pale in comparison scale wise.

(Did you know in the US you can get up to 4 phones for $40 a month (each of course, it’s not free) with unlimited data and free Netflix? Here in Canada Bell and Telus act like data is as scarce as gold. Don’t go over your 4 gig per month or we have to impose draconian penalties!)

So anyway, back to the house-as-a-retirement-plan thing. How do you execute? I’m ruling out reverse mortgages because that’s basically theft. So what do you do to access the equity? Live on a HELOC and roll the interest every month until you are forced to sell and end up with maybe 20% of the value of the house left over after paying of the HELOC? Sell and rent? It is clear there are very few options for both living in the house and living off the home equity. And who are you going to sell the house too? A millennial or an immigrant both of whom are unemployed because automation took what jobs the Turdeau-Moroneau middle class tax grab didn’t destroy?

I know you have a number of trolls on this comment section that believe somehow slaughtering middle class business owners who happen to have a 7-11 franchise and employee a dozen workers or maybe a plumber who specializes in fixing hot tubs is the answer to their millennial problems, but it just isn’t. Every dollar is already getting spent somewhere, or maybe saved for spending later, so whatever they siphon off the middle class self employed this way they will simply remove from spending elsewhere. What do all these small business owners spend their money on now? Probably many of them spend 40% of it on their house just like everyone else. That house is going to have to go for sale, because they won’t have the money to pay the mortgage anymore.

I flew through YOW this past weekend on my way back to the land of the formerly free in YYC from the land of the kneeling multi-millionaires in EWR and it was the first time I have set foot in our great center of confusion, Ottawa. Quaint, stress free little airport. But I did notice on both the way in and the way out from the air that Ottawa is literally surrounded with big fancy shacks on acreages, some of them pretty large and including horse arenas, and many, many swimming pools. Where do our overlords get the money for such extravagance? I suspect it has to be the overlords who own most of these “modest mansions” because there isn’t a lot of business going on in Ottawa. If you are there it is because of the government, much like the CRA built Winnipeg. Well and the railroad. And farming. At least Winnipeg has 3 identifiable industries of which only 1 is government writ large. Ottawa has nothing but government.

So what is going to happen to Turdeau and Moroneau when they raise the taxes on the middle class self employed in Ottawa? And the rest of the overlords who have these outdoor pools on their acreages? Well, I bet they don’t clean their own pools. As government employee generally can’t even use a self serve gas bar, filing the tank not being part of his job description. Thus, he’s just imposed higher taxes on the guy that maintains his pool and mows his lawn. Where does mister or missus overlord think the pool boy is going to get the money? Well, the hourly rate for pool and yard maintenance is going up by exactly the same amount that they just raised the taxes on those poor souls, or the service will be discontinued. The guy who waxes their BMW (which no government employee should be driving seeing as they aren’t made in Windsor) won’t be doing that without a raise either. And of course they all have a cleaning service because there is no way they or their wife is going to clean a toilet, even their own. Overlords do not clean toilets. Oh and did I mention snow removal? Now going to cost more. Some of those overlord driveways were pretty long and I don’t think they know how to run a snow blower even if they own one, which they probably don’t that work also gets hired out.

So this is a case where I think there is actually a sort of justice in the system. The overlords think they just got a big win by jacking the taxes on the self employed middle class, but the invisible hand will ensure that they in fact pay nearly all of their share of the additional taxes through higher rates. These dummies can’t even tell when they already had it good.

Of course there are other costs that will be born by all of us. Both the overlords and the disenfranchised small business owners and their employees will all pay more for a Slurpee or an order of wings and a beer at the pub, or even for and ice cream at Garth’s store. But what the overlords don’t realize is that they will pay a disproportionate amount because they are the ones who have the outdoor pools and BMW’s that need waxing and long driveways that need snow removal. The rest of us will go to the pub less, it will go bankrupt, and taxes will go down.

I think the overlords must figure they will somehow be ok when they force the rest of us to live off the land and skip taxes altogether. The idiots plan to tax us back to the iron age. How are they going to collect taxes when it’s better not to have an income than to have one? Idiots. How these folks became the overlords is a mystery to me. A good gardener knows how to plant and tend the garden. A good horse trainer knows how to “husband” horses. A good overlord should know how to maximize the economic activity of his peasants, not starve them to death.

The only other thing I have to say is “Venezuela”. Yes it can happen here. Venezuela suffered no natural disasters nor a lack of resources. It suffered bad politics. Yes it can and it is happening here. Thanks Turdeau and Moroneau. A little short term gain for you, destruction coming for the country you purport to be helping. I hope when you meet the devil, which you will, you understand fully that he will discard you the same way you discarded Canada.

#48 Stone on 09.26.17 at 7:58 pm

I’m still baffled how the sheeple still believe they can measure their wealth via things that depreciate and don’t provide income (ie: houses, cars, furs – I just had to add furs in here – you can’t imagine how many sheeple add that in their credit application when applying for a loan. Or art. Or their comic book collection – LOL). You buy a house, you need to maintain it. That costs money. It only increases in value when there is speculation. Otherwise, it’s a money pit. Even when there is speculation, it’s money pit because the sheeple hold out and don’t sell when there’s a profit to be made because they think they can get more and then it’s too late because nobody wants what you’re selling anymore. Too frequently cash flow negative too. I wish people would stop saying that the equity in their home is part of their wealth (and in many cases, the only thing). Your net worth should only be measured through marketable securities (ie: equities, bonds, pref shares) or profitable businesses that provide an income via capital gains, dividends or interest payments. Lets be purists on this subject. When you only measure wealth by excluding depreciating things, that’s when you know where you stand. I suppose most sheeple feel kinda bad that they don’t actually have much of anything when they look at it that way. Wasted so much time, energy, and money and nothing to show for it.

I’m very happy with my situation. No house. Just renting. Everything in a balanced and diversified portfolio which pays me a steady income and continues to appreciate. Bumps in the stock market are just buying opportunities for those with long term vision. Income generates in good and hard times. Even when I’m sleeping and not dreaming. As a result, options abound.

If those same poor sheeple want to blame someone for their predicament, look in the mirror. That’s the only ugly bastard you need to blame. Nobody else. Not even the gouvernment. We all learned when we were kids “don’t put all your eggs in one basket”, “keep something for a rainy day”. Wise words but almost nobody is listening, are they?

#49 bdwy sktrn on 09.26.17 at 7:58 pm

U.S. imposing 220% duty on Bombardier CSeries planes
cbc

ouch.

#50 JustMe on 09.26.17 at 7:58 pm

A Vancouver council candidate proposing a “mansion tax” wants to take $174 million from the rich each year and give it to the poor.

“The average one-bedroom apartment is $2,000 a month, more than the total minimum wage for a full-time worker.”

She said her two proposed tax brackets would draw an extra one per cent from homes assessed at $5 million or higher and two per cent from homes assessed at $10 million or higher.

http://vancouversun.com/news/politics/mansion-tax-proposal

#51 Greater Fool on 09.26.17 at 8:01 pm

This is the email I got this morning from my MP:

Dear Greater Fool,

Thank you for writing about rising housing prices. I share your concern that housing is increasingly out of reach for all but the wealthiest in the lower mainland and on Vancouver Island.

Part of the reason prices are so high is due to the Immigrant Investor Venture Capital Program established by the previous government, which made it very easy for investors not living in Canada to purchase residences here. Fortunately, the program is now closed. However, the federal government must still do more to ensure housing affordability in BC as prices continue to rise.

I have been pushing for both a National Affordable Housing Strategy, and a reformation of the tax system, to further address the problem. I have met with the minister responsible, the Hon. Jean-Yves Duclos, on this issue. I am pleased that he realizes that the federal government must re-engage in the issue of affordable housing for all. We are the only country in the Organization for Economic and Co-operative Development (OECD) without an affordable housing strategy. We desperately need to develop a plan in order to ensure the safety, health, and dignity of all of our people. This need is widely recognized.

Nonetheless, it remains that most policy solutions lie outside of federal jurisdiction. This includes measures such as the newly implemented 15% tax for foreign buyers in Vancouver, which threatens to push prices up further in Ontario if not similarly implemented.

I therefore encourage you to share these concerns directly with your provincial Member of the Legislative Assembly (MLA) as well. Your MLA and their contact information can be found at: https://www.leg.bc.ca/learn-about-us/members.

Thank you again for writing. I will continue to fight for more affordable housing in Saanich-Gulf Islands and the surrounding communities. It is an honour to do so as your Member of Parliament.

Best regards,

Elizabeth May, O.C.
Member of Parliament
Saanich – Gulf-Islands
Leader of the Green Party of Canada

#52 Where's The Money Guido? on 09.26.17 at 8:03 pm

Re: #6 HoweStreet.com on 09.26.17 at 6:20 pm
Ross Kay on HoweStreet.com Radio:
BC Foreign Real Estate Buyer Tax Evasion.
Trudeau Government and Foreign Buyers vs. Canadian Homeowners.

http://www.howestreet.com/2017/09/25/bc-foreign-real-estate-buyer-tax-evasion/

Does it coincide with all the trips Christy Clark took to China these past couple terms to sell out BC, including the washing of money through BC Casinos while closing the Joint Illegal Gaming Investigation Team under former cop Rich Coleman….

The 12-member IIGET was dissolved on April 1, 2009 by then-Housing Minister Rich Coleman. He said the the team, which cost $1 million a year, was not cost effective. Coleman is now Solicitor General.
https://lailayuile.com/2016/04/11/a-little-perspective-on-todays-bc-liberal-money-laundering-announcement/

http://www.cfseu.bc.ca/about-cfseu-bc/joint-illegal-gaming-investigation-team/

http://vancouversun.com/news/politics/smyth-is-b-c-a-laundromat-for-criminals-dirty-money

Or…, is it a part of the overlords game ……discuss……

#53 ImGonnaBeSick on 09.26.17 at 8:03 pm

Keep the momentum going;

http://poll.forumresearch.com/m/post/2782/federal-horserace-september-2017/

Can’t wait for this phony to be gone in 2019.

http://business.financialpost.com/personal-finance/liberal-changes-have-only-led-to-higher-taxes-for-the-middle-class-despite-claims-otherwise-report/amp

#54 Leichendiener on 09.26.17 at 8:04 pm

BTW: 220 per cent on C Series airliners. “The U.S. values its relationship with Canada but even our closest allies must play by the rules,” Commerce Secretary Wilbur Ross said in a statement. Evidently, we’re not special. Factor in unemployment into the housing worth equation.

#55 The real Kip on 09.26.17 at 8:06 pm

Cape Breton is beautiful and I love Mac and cheese!

#56 JustMe on 09.26.17 at 8:07 pm

More than 1,000 planned purpose-built rental units have instead been converted to condominiums in the Greater Toronto Area since Premier Kathleen Wynne’s government expanded rent control in the spring, according to a new report that warns the region’s rental supply crisis is poised to worsen.

economists warned that expanding rent control would choke supply by reducing incentives for developers to launch new apartment buildings.

https://beta.theglobeandmail.com/news/national/report-finds-1000-planned-rental-units-convert-to-condos-in-wake-of-ontario-rent-control-expansion/article36382681/

#57 Dean on 09.26.17 at 8:08 pm

“These days it’s estimated 70% of all workers have no corporate plan with any kind of defined benefit (like government workers, teachers and the prime minister).”

Other examples you could have mentioned would be policemen, firemen and Canadian Armed Forces members and their survivors.

Most plans are inclusive of CPP and OAS calculations. Meaning if a plan pays out 75% of your max salary a portion of that is the CPP and OAS component.

Lastly, an important point, most pay 50% of the contributions out of their paychecks and the other 50% is matched by the employer (gov’t). This averages more than $500 a month off of an employees take home pay.

#58 Aaron on 09.26.17 at 8:08 pm

I’m not sure that I’m getting your complaint about the $400 million/year being spent on topping up the pensions for federal employees. In 2011, Stats Canada says there were ~427,000 working for the Federal Government. $400 million/~427,000 employees = ~$937/employee to top up their pensions. Seems like that would be within the bounds of reason wouldn’t it? Or is this over and above some other contribution?

#59 rainclouds on 09.26.17 at 8:09 pm

#22 YVR “This link summaries all the mess we are close to getting into:”

No it doesn’t BUT it is the excuse the Bolshoveks need to “address the problem”
Nowhere in this “report” does it mention speculation, debt loads,RE industry manipulation, and low interest rates.

If this is driven by a foreign “honeypot ” why is west van, west side, and Richmond experiencing moribund sales and dropping valuations?

I look forward to whatever overkill misguided solution the Red/green party cook up. Might be some vultching in a few yrs.

#60 Stone on 09.26.17 at 8:14 pm

#8 AK on 09.26.17 at 6:21 pm
And this is why you can’t rely on anybody but yourself when it comes to retirement. Stop relying on CPP or any defined pension plan, these are all top ups to what should be your own personal retirement savings.

It’s not hard to accumulate enough money yourself in TFSA’s and RRSP’s to fund a wealthy retirement. Consider your CPP and defined benefits a luxury to go with it.

———–

Wel said. I couldn’t agree more. Count on none of it and if it should happen to be there when you’re eligible, well, jackpot!!! That way, you can’t be disappointed.

#61 Keith on 09.26.17 at 8:17 pm

The characteristics of a successful investor:

1. Understands the financial markets
2. Good at math
3. Patient enough to follow a long term plan
4. Knows the history of financial markets

The strategy of a successful investor

1. Saves enough money
2. For a long enough period of time
3. Earns a high enough rate of return
4. Minimises risk
5. Keeps costs low

The government policy of leaving it up to the average person, when the company pension went the way of the dodo bird, complete and utter disaster in the making. Here comes more poverty.

#62 Funky on 09.26.17 at 8:21 pm

We should be so lucky to have Justin call for some advice.

#63 Stone on 09.26.17 at 8:21 pm

#11 Hans on 09.26.17 at 6:31 pm
When they say that real estate will fund their retirement, are they differentiating between hoping for a capital gain on the property and those renting part or all of the property out? Important distinction imo. Houses of varying types can still be purchased for up to a 10% cap rate(albeit not in the city center). Sure, being a landlord isn’t for everyone and yes, there are headaches that come with being a landlord as there are for any business proposition….that being said, the leverage that is allowed with real estate is incredible. Someone who’s buying with realistic expectations and has done research into what they could rent out the place for should be able to expect that multiple properties would fund a retirement. Repairs, delinquent tenants, rent controls, etc. are all risks that can be somewhat accounted for. Price it into what you’re thinking about doing with a property and if the shoe fits, buy it.

——–

Cap rates at 10% don’t exist except in economically depressed areas. Most cap rates are coming in below 4% in major city centres. The shoe will never fit. Don’t go there. I’m begging you. Otherwise, I recommend Detroit. That’s a craphole.

#64 Doug t on 09.26.17 at 8:22 pm

You think this country is in trouble – on October 18th China has its Communist Party Congress meeting which is held every 5 years – word is El President of China is going to crack down on the massive corruption that has been running rampant for the last 30 years at all levels of the banks, business, ports and government. This is not going to end well – the ripple effect will be worldwide

RATM

#65 bring it on on 09.26.17 at 8:24 pm

#38 nitro1

Hey TEMPLE, how many sick days did you take last year? Still waiting for that example of a government job that isn’t filled in the private sector.

—————–
Am not TEMPLE, but clearly nitro1 must have barely passed high school, as he cannot possibly imagine a
Gov’t job that is not replicated in industry. Huh???? Not a clever fellow here. How about all of the PhD or MSc trained scientists in Ottawa doing climate research, fishery-stock management, managing biological invasions that decimate our forests and rivers (ever heard of the spruce budworm invasion….I guess not), INDEPENDENT statistical analyses of all sorts of potentially new useful drugs. This important stuff has little “market-value” to industry, but we should all be happy that on the Gov’t payroll there are people committed to these studies who are not in the pocket of companies who would slant the truth due to their vested interests (big oil, drug companies etc..). I can only conclude that NitroI has no clue; the Gov’t is not simply full of minions pushing around empty piles of paper of little worth on a desk. Need to educate yourself before posting things you don’t have a clue about.

#66 Kat on 09.26.17 at 8:28 pm

I speak to many people in our neighborhood of downtown Vancouver. The main thing I hear is that since rent is so high here it makes sense to buy and it may go down somewhat but not enough to deter anyone from buying. Not many seem to want to leave here and will keep paying out the ass for the quality of life they feel they have even though it seems to be all payed for by credit cards. I am not sure I see a real crash happening here unless rates skyrocket. To many here with skin in the game and they will keep it going as long as they can.

#67 Mattl on 09.26.17 at 8:30 pm

Canadians may be obsessed with real estate but at least they pay off their homes. That 50 percent number is impressive and explains why sellers simply pull listings when the market softens. Very few Canadians HAVE to sell their homes and until that day comes I don’t see a huge correction coming.

#68 Ian on 09.26.17 at 8:36 pm

US Fed is gonna crank it up in December as they now know Yellen is off to retirement in Feb 18 and feeding birds in the park.

I note with interest that the US FOMC has a rate session on 30-31 Jan 2018. Will Yellen jam another increase in before leaving? Maybe politically that is too close to the turnover to the new person. But it would not surprise me at all. I think Dec and Jan are ON.

Which means BoC is on the march in Oct and Dec, 100%.

#69 john m on 09.26.17 at 8:36 pm

There are no ‘loopholes’. People playing by the rules, paying every cent they have been obligated to, are being targeted. Don’t fall for cheap government propaganda. — Garth<<<<exactly Garth and that is why the rules are being changed so we all are treated fairly,the average Canadian does not have the resources nor the excess income to play by these rules.

Not everyone chooses to be average. — Garth

#70 JoinTheCRA on 09.26.17 at 8:36 pm

We’re Hiring.

You can bring a headset and your spotify playlist to work to get you through the day. See you up on the slopes when we get out at 3 PM this afternoon! :)

-Your friendly CRA recruiter.

#71 Hans on 09.26.17 at 8:40 pm

#63 Stone.

They do exist and you do have to look a little harder than usual to find them. Economically depressed areas would have a cap rate that more reflects the increased risk of doing business there (think Windsor downtown – area in major transition). Cap rates of 10% exist within the greater toronto area. Look for towns within commuting distance of a major center and you will find them, rent isn’t $1500 for a bachelor like in TO, however you’re also not paying a mint to buy the place. Economically depressed – not within the GTA, employment is still very strong. I’m speaking from experience too, so it’s not a matter of convincing anyone that they exist. They do, and the point I was trying to make is that if someone owns multiple properties, they can claim that they are a retirement plan (not necessarily so if you depend on capital gains).

#72 Old Dog on 09.26.17 at 8:41 pm

Rich people have one or more of the following traits, and it has nothing to do with which generation you belong to.:
They’re smarter
They work longer, harder
They have a better education or more training
They take more risks
They don’t have children while they are teenagers
They spend less than they earn
They stick to a task
They learn from their mistakes

Lets see, the top 1% of earners pay 20% of personal tax.
The top 20% pay 75% of the fed and prov. tax.
That means that the remaining 80% pay 25% of the tax.
New businesses in Canada have a failure rate of 80%.
Boy oh boy, what a bunch of mooching tax frauds.
I’ll bet those top 20% also pay most of the money that goes to local charities.
How much friggin tax to you think you deserve from these people. Where does this idea come from that you have a right to someone else s money. Money has mobility and if you hound them enough they will move it out of this country. And don’t worry, the door won’t hit them in the ass on the way out, and there will be someone else holding a door open for them. Then see who gets to pay for the missing tax and soaring deficits. Down the road when you’re in that old age home say thank you to them for paying for you to be there, because it sure as hell isn’t your taxes paying for it.
Oh well, just go out and spend your brains out, running up obscene amounts of debt and being envious of other people who actually show a little restraint. I’m sure it will all turn out well. T2 told you it will all balance.

#73 D on 09.26.17 at 8:42 pm

Guaranteed minimum income from Kathleen Wynne will solve this! Being house rich and cash ooor will help these people qualify for more government income.

#74 Ian on 09.26.17 at 8:44 pm

Will be absolutely fascinating to see if the new Fed chairperson in Feb 18 not only goes more dovish, but also suspends the unwinding of the 4t on their balance sheet.

If the unwinding continues, as slowly as it may be, yields in the US will rise across the yield curve throughout 18 and 19.

Put Mark down for an announcement about a lack of Canadian inflation in both Oct and Dec as he rants about the BoC raising each time!

#75 El Joko on 09.26.17 at 8:53 pm

Man, $10/year/person.

Amazing the things that Conservatives manage to get hyperbolic about. That $10 is going to sink the economy. Ruin the government. Collapse the world order. Undermine the quantum physical underpinnings of the universe!

It’s much less than what the mayor gifted my local billionaire hockey team owner when he decided to build him an arena, because they happen to go to the same synagogue (and sure as shit, down the line, mayorboy and his family will get a good job at KatzCo).

But nobody on the right cries when that happens. Or when the other billionaire hockey team owner moves his home address to a tax haven.

#76 Ian on 09.26.17 at 9:00 pm

Is it just me or should Trump focus on the debacle in Puerto Rico and tax reform instead of the NFL?

#77 Lost...but not leased on 09.26.17 at 9:05 pm

I see that one of my discilples… crowdedescalatorflatulence has made the psychological connection between Kubricks 2001: A Space Odyssey and the fake moon landing.

==================================== Also see that Ontario Hockey coaches are req’d to take a mandatory course re: transgender players…or they will not receive the certification to coach.

Other than Sm&king M#n ..anyone have a punchline ?

#78 Penny Henny on 09.26.17 at 9:08 pm

These days it’s estimated 70% of all workers have no corporate plan with any kind of defined benefit -Garth

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

wow what a difference a day makes.
Yesterday employees had pensions, today 70% do not.
yowza!

Defined benefit. Do you need that translated into crayon? — Garth

#79 Where's The Money Guido? on 09.26.17 at 9:12 pm

Taking a page from SM:
https://www.youtube.com/watch?v=VL5IcnD9gqo

Ginger Baker (Cream, Baker Gurvitz Army) age 78 now, played drums on this song back in 1988

I ain’t winnin’…

Walking down the street I can feel the tension
Everybody on me like I’m some kinda suspect
It’s gotten me to thinkin’ life’s some kinda survival
Hell, that’ll be the day when love is my rival
Get me on a plane to the Himalayas
I’ll find a little ruby to waste my time with and…

Paint me a picture
And make it the devil
We’ll run down the hole if
The roof ain’t level

Domino
Domino

Well, I’m shit outta luck today man
Now I’m callin’ in my favors
Seems that I can’t chew on whipped cream
Without me wakin’ up some neighbor who’ll…

Paint me a picture
And make it the devil
We’ll run down the hole if
The roof ain’t level
Domino’s fallin’
Black spiders spinnin’
The white gloves flashin’
And I ain’t winnin’

Sounds like a plebes calling……

#80 Entrepreneur on 09.26.17 at 9:12 pm

Still chuckling about the overlords #47 nonplused, who cares about the your sex orientation #37 rainclouds, #62 Funky on we can call Justin for some advice and many others, too funny.

A few good suggestions have come up on this blog but I don’t think the leaders have time for us working slaves, middle class.

Sometimes I wonder what Trump thinks of Trudeau, complete opposites in leadership. Trump is fighting for his country for the best interest of all the people (fair trade not free trade) while Trudeau is off making all sorts of free trade leaving many behind.

#81 Costco Nation on 09.26.17 at 9:23 pm

Everyone tipping around, many not realizing. It’s the Red Coats. Wake up. Nothing changed for centuries. Serf in chains or in debt. No difference. It’s the soft heavy hand you’re dragging on your shoulders. It’s that palace heating you slaving for. And the fine paintings. And gold filigran clothes. Are you going to wake up from the nighare, or get that stroke while sleeping? Are you gonna do something about it, or wait for “things to come”? It’s not going to solve itself. We’re here to change, and change is acting. FREEDOM IS NOT FOR FREE.

#82 Stone on 09.26.17 at 9:32 pm

#69 john m on 09.26.17 at 8:36 pm
There are no ‘loopholes’. People playing by the rules, paying every cent they have been obligated to, are being targeted. Don’t fall for cheap government propaganda. — Garth<<<<exactly Garth and that is why the rules are being changed so we all are treated fairly,the average Canadian does not have the resources nor the excess income to play by these rules.

Not everyone chooses to be average. — Garth

—–

Garth is absolutely right. Why would anyone want to be average. That's boring and poor. And indebted. Heavily indebted to your eyeballs. No thanks. It might be exciting for others but definitely not for me. The average Canadian chose not to give themselves options to have the resources nor the extra income. As I mentioned earlier, the only ugly bastard to blame is the one you look at in the mirror. It's better to stand up and take charge of your life. Trust me, you'll feel better. I know I do.

#83 Silver on 09.26.17 at 9:34 pm

i think the tax breaks for bc film
alone
would cover the public pension shortfall of 400 mil
on a yearly bases.

#84 For those about to flop... on 09.26.17 at 9:36 pm

Well it’s getting toward the end of the month and so that’s normally when I check in and run the numbers to see what’s happening on the low end of the market.

I normally do up to 1.3 million but I have a couple of houses near me having trouble selling and have dipped below 1.4 and so I checked that out as well.

The results…

Houses in Vancouver proper under 1.3m
45
Number of these with price reductions
10 or 22%

Houses in Vancouver proper under 1.4m
78
Number of these with price reductions
18 or 23%

So a little lower percentage wise from last month but still quite high considering these are the so-called affordable ones in Vancouver.

Also I noticed 5830 Alma st. Vancouver has been sold or removed again and so if a realtor on here wants to shoot me the details that would be great.

It is a long term Pink Snow case that was sold and then the buyer backed out and they have had to do the dance again all summer.

I am trying to bring a small amount of transparency to the Vancouver market and am interested in working with realtors on here to achieve this anonymously for them and I so we can go about our day to day business unaffected.

Calling realtors on here shysters is funny for about 5 minutes and then you realize it doesn’t help bring transparency to the marketplace ,which a lot of people on here have asked for and I have tried to provide.

Some of them are no doubt questionable in character and some of them are true professionals.

I’m sure a large percentage of them are playing by the rules and it is these rules that need changing rather than attacking these individuals.

Hate the game,not the player…

M43BC

Vancouver detached under 1.3

https://www.zolo.ca/index.php?sarea=Vancouver&ptype_house=1&max_price=1300000&min_price=800000&filter=1

#85 POLL on 09.26.17 at 9:36 pm

OK, time for a poll: how many blog dogs own, rent? For how long?

#86 Paul on 09.26.17 at 9:38 pm

#76 Ian

Trump/ FEMA has sent in 10,000 people to help get them on their feet. What have you done?

#87 Wrk.dover on 09.26.17 at 9:39 pm

You nailed it again! We ate home made mac and cheese for lunch here, preceded by half of an homemade three pound raspberry pie for breakfast and followed up with fresh haddock and garden veggies for supper, on two CPP’s and one OAS, down here in NS.

And all the DBP does is keep the two TSFAs topped up, and provide a few weeks total at an all inclusive Jamaican 4 star each winter.

My OAS kicking in next year will help with putting chump change aside.

#88 Pete from St. Cesaire on 09.26.17 at 9:39 pm

Living overseas in Australia, born and bred in Ontario. Over here they have superannuation (there version of RSP). Big difference is that its mandatory that at least 9% of your income goes into it. At least over here people will have something when they return.
——————————————————–
No. They’ll be coming to take that away too. Mark my words. It’s not different down under. It’s just a big cash-cow that they’ve established ‘for the good of the people’ and plan to plunder when the time comes.

#89 Lost...but not leased on 09.26.17 at 9:39 pm

#80 Entrepeneur

What Trump thinks of Trudeau?

USA 2nd best President, Richard Nixon thought T2’s dad T1…was a “son of a b*tch”….an @sshole..”a pompous egghead”.

Not only that..Nixon gave a toast to “future PM of Canada Justin Trudeau”.

Clearly Trump is establishing himself as a Top 5 President….and should T2 make Canada tank..emergency legislation will be tabled to allow Trump to ” trump” T2 and be installed as President of all land North of the Mexican border.

What happens to T2???….either a career in LCBQT boxing..or Canada’s Guantonomo bay..anything East of BC.

#90 crowdedelevatorfartz on 09.26.17 at 9:40 pm

@#77 Lost and last

No .
I just realized that you’re unbelievably thick headed and any more time wasted typing a reply to someone as truly paranoid and delusional is a waste of time.

Go tell your neighbors your thoughts of conspiracy.
Its a confirmation of your insanity and will hopefully speed up the incarceration process.

#91 Free Trade, its a Wrap! on 09.26.17 at 9:41 pm

220% retaliation on Bombardier planes going to the US.

If there was ever a sign that the NAFTA agreement is soon to be DOA, this is it.

Get your stateside shopping trip in now before its too late.

#92 T2 calling on 09.26.17 at 9:45 pm

Right up there with Justin calling me for advice.

That remote possibility was gone the moment you called him T2. You would not call after that, either.

How is that insulting? We all know he’d not be PM if his name was Justin Jones. — Garth

#93 Terrie Rolph on 09.26.17 at 9:50 pm

“And his boss already gutted the TFSA.”
Teensy teensy exaggeration, in my humble opinion. The annual contribution amount was 5500, since inception. Harper amped it to 10 grand ) in 2015, and Trudeau rescinded that and took it back to the original 5500.00.

#94 Smoking Man on 09.26.17 at 9:50 pm

Met a dude on a cruse ship many moons ago.
He took out a ton of loot in the form of a casino credit.

I noticed he only played for about 5 min.
Next day we stop at an island which will be nameless

We go into town and I see the bugger go into a bank. Nothing strange about that.

I’m sort of wondering what the guys up to. That night on the ships casino he’s playing black jack and having a few drinks. I start up some small talk.

Apperantly the guy is forex trader from NYC. We go to the disco floor. Have few more drinks and the guy spills his guts.

Let’s just say a beautiful mind.

If you want get rich you need good mentors is all I’m saying.

We’ve been friends for 12 years.

#95 MSM-Free Zone on 09.26.17 at 9:51 pm

A brief history lesson…..

Wall St. Deregulation > Wall St. Corruption > Wall St. GFC 2008 > Dodd-Frank Act > Quantitative Easing > Emergency Interest Rates > Easy Credit > Record Housing Prices > Unaffordable Home Ownership > No Dicsretionary Spending > Record HELOCS > Record Personal Debt > No Retirement Savings > Record anxiety > Record Divorces > Record Intolerance > Record Protectionism > Record Electoral Stupidity > Record Workdwide Political Instability

Rinse & Repeat

#96 T2 calling on 09.26.17 at 9:52 pm

#86 Paul

#76 Ian

Trump/ FEMA has sent in 10,000 people to help get them on their feet. What have you done?

Virtue signal snowflaking. Craving for Likes, what doesn’t exist here.

#97 Stone on 09.26.17 at 9:56 pm

#71 Hans on 09.26.17 at 8:40 pm
#63 Stone.

They do exist and you do have to look a little harder than usual to find them. Economically depressed areas would have a cap rate that more reflects the increased risk of doing business there (think Windsor downtown – area in major transition). Cap rates of 10% exist within the greater toronto area. Look for towns within commuting distance of a major center and you will find them, rent isn’t $1500 for a bachelor like in TO, however you’re also not paying a mint to buy the place. Economically depressed – not within the GTA, employment is still very strong. I’m speaking from experience too, so it’s not a matter of convincing anyone that they exist. They do, and the point I was trying to make is that if someone owns multiple properties, they can claim that they are a retirement plan (not necessarily so if you depend on capital gains).

——

Sorry, that requires too much effort. I only consider what is the least I need to invest for maximum return with the least risk possible. Running around chasing a near non-existant 10% cap rate property is a waste of time and effort. And come on, I haven’t even mentioned rent control. Gahhh! Commercial real estate is a joke too. Overvalued. To many amateurs and foreign investors there too. That’s going to crash and burn eventually. Also, Windsor? Why buy in the armpit of Ontario?Throwing money into downtown Windsor is like throwing money into the toilet. Smells the same. I will never go back there. Only other option is becoming a slumlord. No thanks. I need to be able to put my head on my pillow and sleep well at night knowing I don’t own tenement housing.

I recommend the following: Buy ETFs to create a balance and diversified portfolio. Rebalance annually or more frequently should a major shift occur. In the meantime, enjoy life and steady income stream. Smell the roses.

Too many amateur landlords who are already getting their asses burned with negative cash flow. I wonder how the roses smell to them? Lets not encourage that type of irresponsible behaviour. I don’t drink that Kool-Aid.

#98 bitgold on 09.26.17 at 10:02 pm

So Garth,
How many bitcoins do you have in your portfolio?

RE is old hat. Welcome to new risk:
Massive herd mentality to buy in on non-existent non-currency because it will continue to go up…

do you get this new cryptocurrency crap?

#99 MCYVR on 09.26.17 at 10:04 pm

Hey Flop , thanks for doing this research on YVR RE . It’s quite helpful to get a ballpark on what’s happening locally . Agree it’s high time to revamp the info system regarding agents , sales prices etc . On an investment of this magnitude information/knowledge is power for the consumer and that is absolutely as it should be . No more secrets .

#100 Smoking Man on 09.26.17 at 10:06 pm

Do any of you dogs remember when I was talking about Euthereum about six months ago. I had a bit on blockchain too.

I just wish one day I can tell truth. The ego rush almost worth a jail sentence.

Mike is a Smoking Man fan.

http://www.zerohedge.com/news/2017-09-26/how-one-trader-made-billions-ethereum-and-what-hes-doing-next

Just amazing how many donations are hitting best invoice website.

I got live some how now that DM has put me on the global shit list.

And that list is real. I know people.

#101 T2 calling on 09.26.17 at 10:07 pm

#92 T2 calling on 09.26.17 at 9:45 pm

Right up there with Justin calling me for advice.

That remote possibility was gone the moment you called him T2. You would not call after that, either.

How is that insulting? We all know he’d not be PM if his name was Justin Jones. — Garth

===

You are damn right about that. Bringing this up is triggering enough for him, I bet.

Anyway, the first tattoo I ever saw was on the arm of a woman, ugly numbers, it used to replace her name for a while, luckily she survived. Since then I much prefer name for a person. I may be too sensitive about this childhood memory.

#102 Small business owner on 09.26.17 at 10:11 pm

Why doesn’t Trudeau and bill just get rid of old age pensions and Canada pension?

#103 Gregor Samsa on 09.26.17 at 10:12 pm

The true sign of the financial illiteracy of Canadians is the fact there are not thousands of applicants for every single public sector job. The public sector gets higher pay, lower hours, more benefits, a good portion don’t even really have to work at all, and the cherry on top is a lifetime salary in the form of a pension.

The only industry doing really well in Canada is construction, living large on guess what, yet more government money.

The fact is, private sector wage slaves are being squeezed out of existence, and thus the only place left for governments to seek revenue is contractors and small business.

Interesting times ahead, as none of this is sustainable.

#104 Smoking Man on 09.26.17 at 10:17 pm

Hey T2

First off I’m a dude never going girly cause girls hate that in a man. Human nature. You don’t get it. Your woman 100% is going to cheat on you at some point in time and you will be cool that cause your insane.

Just because your woman never took your full last name doesn’t mean real dudes should follow in your nave footsteps.

Smoking Man
PhD Herdonomics
Accountant at the local Bro club.

#105 Mah Jong on 09.26.17 at 10:29 pm

#36 Smoking Man on 09.26.17 at 7:28 pm
The 45% of boomers who’s pention is in their house is the reason Housing Market is not coming back anytime soon. If there is even a slight up tick in prices unlike before were we saw inventory dry up. The exact opposite will happen.

They missed the big boat in April now they will be happy with a life raft.

Just look at the listings surge in Sept.

Dr Smoking Man
PhD Cluelessness
————

We will see soon in Sept.

#106 Flyboy on 09.26.17 at 10:30 pm

Bombardier got rocked BIG LEAGUE!! Good to see. They are a crown corp now anyways.

#107 Doug in London on 09.26.17 at 10:30 pm

Don’t people understand a one-asset strategy is the ultimate definition of risk?
——————————————————
Just ask anyone who put a large amount of their portfolio into that once great company Nortel 17 years ago.

#108 45north on 09.26.17 at 10:33 pm

Leichendiener: The U.S. values its relationship with Canada but even our closest allies must play by the rules,” Commerce Secretary Wilbur Ross said in a statement.

Chrystia Freeland, Canada’s Foreign Affairs Minister, said: “While this is only a preliminary stage in the investigation, and no duties can be imposed until the final investigations are completed, Canada strongly disagrees with the anti-dumping and countervailing duty investigations into imports of Canadian large civil aircraft. This is clearly aimed at eliminating Bombardier’s C Series aircraft from the U.S. market.”

http://money.cnn.com/2017/09/26/news/companies/bombardier-boeing-cseries-delta-itc-ruling/index.html

So the American Government is not encouraging the Canadian airplane industry but the Canadian Government needs to. One of things it can do is to allow the C-Series to land at Toronto Island Airport.

JustMe: More than 1,000 planned purpose-built rental units have instead been converted to condominiums in the Greater Toronto Area since Premier Kathleen Wynne’s government expanded rent control in the spring, according to a new report that warns the region’s rental supply crisis is poised to worsen.

there are more tenants than landlords so by expanding rent control she figures on getting the tenants’ vote. Short term gain for long term pain.

#109 JustMe on 09.26.17 at 10:35 pm

#47 Nonplused

The only other thing I have to say is “Venezuela”. Yes it can happen here. Venezuela suffered no natural disasters nor a lack of resources. It suffered bad politics. Yes it can and it is happening here.

—————————————————————————–

When President Donald Trump criticized socialism during his speech Tuesday at the United Nations, he seemed to expect roaring approval from the audience. Instead, world leaders responded with laughter and weak applause.

There is growing support for socialism—and a growing rejection of capitalism—among millennials, who entered adulthood well after the collapse of the Soviet Union.

http://www.newsweek.com/trump-was-laughed-world-leaders-dissing-socialism-667785

#110 Smoking Man on 09.26.17 at 10:37 pm

#104 Mah Jong on 09.26.17 at 10:29 pm
#36 Smoking Man on 09.26.17 at 7:28 pm
The 45% of boomers who’s pention is in their house is the reason Housing Market is not coming back anytime soon. If there is even a slight up tick in prices unlike before were we saw inventory dry up. The exact opposite will happen.

They missed the big boat in April now they will be happy with a life raft.

Just look at the listings surge in Sept.

Dr Smoking Man
PhD Cluelessness
————

We will see soon in Sept.
….

Don’t be nasty, I hope I’m wrong. My kids are trapped in this shit hole communist experiment.

My wisdom does not reside in a community of hugs and kisses. It lies at the bottom of a lonely empty bottle of Jack Daneals.

It’s pretty accurate

#111 NoName on 09.26.17 at 10:40 pm

http://www.bbc.com/news/business-41399497

Vacuum is very good, I hope that Dyson car will be good a vacuum.

#112 FOUR FINGERS WATSON on 09.26.17 at 10:41 pm

How is that insulting? We all know he’d not be PM if his name was Justin Jones. — Garth

Perhaps people think that Turdo inherited some of his father’s “statesmanship”, but conveniently forget to mention that his mother Margaret Sinclair Trudeau was a national embarrassment and was hospitalized for mental illness. Perhaps he inherited some of that too.

#113 Nuke on 09.26.17 at 10:42 pm

I used to be self employed until a large financial firm and then the government wanted to pay me for the work I used to charge independently. Now with fixed hours, months off each year, full indexed pension, 100% paid for health care and after decades have never seen a single person fired. Work with people who never knew anything but this have no idea how the others live. Secure every adult day of your life. Everyone should live this way, but would anyone work.

#114 Sad on 09.26.17 at 10:44 pm

This blog used to be interesting and fun before it took to daily, endless long-winded end-of-world denouncements against tax changes that will actually have little to no effect on everyone except the savviest and highest-earning of private corporations. And now more and more this line is being combined with tired, useless vitriol against any employee who dares to earn a half-decent living. Because God forbid anyone be able to support a family through their employment, and heaven help us if they actually have a union or work for the government. Lazy slobs, leaching off the job creators!!

#115 Victor V on 09.26.17 at 10:47 pm

“Once the phony consultation period is over, the Liberals will come off the ropes and will be able to put forward revised proposals that, presumably, do not include plans to bankrupt the nation’s farmers.” — John Ivison

http://nationalpost.com/opinion/john-ivison-liberals-rope-a-dope-strategy-might-work-but-tax-reform-affair-has-hurt-them

#116 n1tro on 09.26.17 at 10:49 pm

#65 bring it on on 09.26.17 at 8:24 pm

Yeah I’m so dumb…there aren’t any scientists in the private sector doing research and other important stuff?!

Is that the best you got? Go take another family day on the tax payer’s dime you dumb ass.

#117 S on 09.26.17 at 10:49 pm

#10 john m on 09.26.17 at 6:31 pm

“…after all we are all Canadian’s and we all deserve the same anything else is a culture of entitlement and discrimination …”
“”just an old man stating his opinion”

Pretty lame attitude for an “old man”. If I chose (hypothetically) to work 35 hrs a week, spend on fast cars, faster women and expensive vacations I do not deserve the same as someone who slaves 80 to a 100 hrs a week and plans for retirement.
A female physician friend of mine was recently told by her son as he was departing for university that he did not remember her from his childhood. See, for long periods of her small community carrier she’d by off to hospital at six am, then office then back to hospital to be home around 11-12 at night.
No way I deserve same retirement as she does.

#118 Ian on 09.26.17 at 10:52 pm

Roy Moore for US Senate!

He will make Jeff Sessions look a bit left of Megan Leslie.

#119 conan on 09.26.17 at 10:53 pm

Yellen already coming out with the bad news.
We are not out of this yet. Expect a sell off, especially if Korea gets nasty. I think it is profit taking time myself.

http://beta.latimes.com/business/la-fi-yellen-in-ohio-20170926-story.html

#120 Smoking Man on 09.26.17 at 10:54 pm

Libralism cockis meeting.

We got to shut up smoking man.

I’m a whore show me the money. My disability pention it’s not enought.

#121 Ian on 09.26.17 at 11:00 pm

#102

As Gregor Samsa awoke one morning…

Brilliant!

#122 Mark on 09.26.17 at 11:01 pm

” In fact, Mr. Morneau is about to tax the poop out of small business earnings set aside for retirement.”

How exactly are small business retained earnings ‘set aside for retirement’? Isn’t this dangerous, as a small business owner, to have a substantial investment account in the business (fully exposed to business creditors), as opposed to personally (ie: in a RRSP) where there is creditor protection? If the small business falls onto hard times, it can be theoretically re-capitalized out of the RRSP of the business owner if compensation taken from the business was invested in a RRSP over the years. But money stuck in an investment account of a business is fully available to creditors. In which case, a small business owner may very well be left ‘destitute’ in their retirement.

I’m all for people taking risk, but is this *really* an argument in favour of allowing businesses to retain excessive earnings at favourable tax rates that are not invested in relevant plant and equipment of a business?

No. — Garth

#123 Ian on 09.26.17 at 11:03 pm

My only question about Chrystia Freeland is why with all this Liberal $ hidden offshore no one would stump for some basic dental care for her.

#124 Mark on 09.26.17 at 11:04 pm

“One of things it can do is to allow the C-Series to land at Toronto Island Airport.”

The Toronto Island Airport does not, and never will have adequate runways for heavy turbine aircraft like the C-Series. The approach path and regime for missed approaches creates some serious perils for aircraft and buildings which are in the vicinity. Weakening the YYZ hub would be quite disappointing for those of us in the west and east who rely upon YYZ to connect. And there is ample connectivity between downtown and YYZ to support the needs of downtown residents.

Are a few high flying investment banker types who haven’t discovered that wonderful thing called video conferencing, really so important that residents of downtown Toronto must suffer living literally next door to a major airport with wholly inadequate infrastructure?

If anything, the highest value use of the downtown airport is to turn it into some combination of housing and recreation. Shut it down entirely. If an overflow airport is needed for YYZ, I’m sure something could be rigged up at Downsview.

Who needs transportation and connections to the outside world? We want more condos! Sheesh. — Garth

#125 2 Cents Canadian on 09.26.17 at 11:05 pm

Eff this! …… too cold ….. I’m going back to decathlon?

#126 Lost..but not leased on 09.26.17 at 11:05 pm

#90 crampedescalatorbrokenwind

That was one of the best ad hominem attacks ever levied…

Congrats !
====================================

Re rising interest rates and RE.

While the RE market is certainly overheated…a rate of 5 % hasn’t been around since the 2008 crash. A rate like this would most certainly separate the wheat from the chaff..ie differentiate the locals vs the offshore money….ie the local owners will go underwater whereas offshore much less so ?!?

There are articles that claim the foreign buyers are balking at the 15% tax…but if the locals RE holdings tanks will the offshore vultures sweep in whereby 15 %
becomes a moot point if RE tanks more than 15%, or a decline scares off these flipping artists regardless as well ?

#127 Mark on 09.26.17 at 11:14 pm

“The true sign of the financial illiteracy of Canadians is the fact there are not thousands of applicants for every single public sector job. ”

Actually there are. In fact, so many that even for fairly higher-level professional positions, the government doesn’t even provide the basic courtesy of a response.

Last time I spoke with a government HR staffer, in a relatively small government organization, they had 20,000+ applicants per year for a mere hundred or so jobs that they had advertised to the public. Even though internal referrals (ie: no external advertisements), they were getting 50+ applicants. People are desperate out there. If public service jobs were exposed to legitimate and good faith competition, most positions would effectively driven down to compensation more reminiscent of volunteer work.

Its a real travesty these days, to attend a job fair, and see that the biggest lineups are not at the booths for solid private sector companies, but rather, chasing government employment.

#128 Leo Trollstoy on 09.26.17 at 11:32 pm

So the Fed will raise rates again this year and the Bank of Canada will follow.

Are they hiking because the economy is strong or is the economy strong so they’re hiking?

How smert am I?

Whut?

#129 Leo Trollstoy on 09.26.17 at 11:36 pm

Getting a government job isn’t hard. Assuming of course the applicant is competent

Friend was a partner in law firm for 25 yrs. got job with the city now. Wasn’t hard. Competent. Says the job is way easy.

If you have difficulty finding a job, then all bets are off – public or private sector. Can’t fix hopeless

#130 Leo Trollstoy on 09.26.17 at 11:38 pm

Why I like second best about Canada is that inflation has been at a healthy level for a couple decades. Everything has been inexpensive and good

What I like best about Canada is the quality of life. Pretty awesome!

#131 Linda on 09.26.17 at 11:57 pm

If the majority of people owning homes are depending on it for their retirement income, what chance is there of their actually getting full value when so many properties hit the market at the same time? Seems to me that most will end up not receiving the amount they think their property would be worth & if they ‘have’ to sell to make ends meet, will end up accepting less. Also, where are all these former home owners going to live? If they need the cash to live on, will they be able to purchase another (less expensive) home or will they need to rent? If they end up renting, is there enough rental accommodation to house the hordes? Based on blog comments it seems finding rental accommodation of any kind is not the slam dunk one might think it to be. How likely is it that sufficient rental housing will be available to rent once the great housing exodus occurs?

#132 Yuri on 09.27.17 at 12:17 am

The decay and eventual collapse of the West is imminent, here are the reasons why:
1. Need to discuss everything with first nation and other interest groups, no decision gets passed, projects are stalled. Russia and China, the boss on the top says do it, and its done, fast, cheap, and efficient
2. Bloated govt with indexed pensions, disability pay outs, welfare, EI, First Nation benefits, etc, etc. Russia and China, no payouts, you’re disabled then you freeze on the street, welfare? Dream on buddy!
3. More takers than givers, this leads to Venezuela and Cuba, everyone will be poor
4. Too many rules and regulations, while the Russians and Chinese are in a rush to deregulate as much as they can to grow the economy, this has negative side effects such as congestion and pollution
5. Flight of manufacturing, outsourcing, robotization. The Chinese and Russians close the borders to competition while supplying their own with domestic products and at the same time grabbing foreign orders (China in particular).
6. Natural resources, China, Russia, and India just signed the biggest deal on Forestry, Mining, Coal, Gas and oil (will mostly come from Siberia). US and Can can continue dreaming about LNG and exporting to the Chinese, they simply cannot compete due to first nation debates and too many regulations.
7. In the long turn we are stuck with high taxes, low productivity, too many rules, and bloated govt. One don’t have to be a genius to figure out where this all is going to go.

#133 M-cube on 09.27.17 at 12:48 am

Garth, just wondering why you don’t talk about your old pal and real estate bear Ross Kay anymore?

It seems to me that Ross Kay is the only public voice speaking about the real shenanigans behind this market.

Thank you poster #6 Howestreet.com for enlightening me in that most recent podcast

#134 BillyBob on 09.27.17 at 1:06 am

#123 Mark on 09.26.17 at 11:04 pm
“One of things it can do is to allow the C-Series to land at Toronto Island Airport.”

The Toronto Island Airport does not, and never will have adequate runways for heavy turbine aircraft like the C-Series. The approach path and regime for missed approaches creates some serious perils for aircraft and buildings which are in the vicinity. Weakening the YYZ hub would be quite disappointing for those of us in the west and east who rely upon YYZ to connect. And there is ample connectivity between downtown and YYZ to support the needs of downtown residents.

Are a few high flying investment banker types who haven’t discovered that wonderful thing called video conferencing, really so important that residents of downtown Toronto must suffer living literally next door to a major airport with wholly inadequate infrastructure?

If anything, the highest value use of the downtown airport is to turn it into some combination of housing and recreation. Shut it down entirely. If an overflow airport is needed for YYZ, I’m sure something could be rigged up at Downsview.

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

Could you please refrain from branching out from your usual topics you’re completely mistaken about, into random topics like this which you obviously also know nothing about?

I admire the willingness to display ignorance so publicly and regularly – that takes commitment. But some readers actually know a bit about specific topics you claim expertise in. Most of us don’t even bother to make an effort to refute your nonsense, it just makes us tired.

Thanks.

#135 BillyBob on 09.27.17 at 1:13 am

#72 Old Dog on 09.26.17 at 8:41 pm
Rich people have one or more of the following traits, and it has nothing to do with which generation you belong to.

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

And thought this was an absolutely great post – hope you don’t mind if I cut and paste it to share elsewhere.

#136 Keith in Rio on 09.27.17 at 1:22 am

I am very happy the hammer got dropped on Bombardier.

Their C series has been boondoggle from day one and the only reason Delta gave them a shot is because they gave the planes away. No one wants them. Their previous CRJ is a POS.

If this company was not QUEBECOIS it would have been removed from the taxpayer’s trough decades ago.

#137 Not Awsome on 09.27.17 at 1:23 am

Canada is emoswa! The country is so corrupt that it stinks.

#138 takedatknee on 09.27.17 at 1:24 am

How is that insulting? We all know he’d not be PM if his name was Justin Jones. — Garth”

Justin Jones has more of an NFL QB, or MMA vibe to it.
Wasnt there a June Jones on Argos once?

#139 Mark on 09.27.17 at 1:46 am

“Getting a government job isn’t hard. Assuming of course the applicant is competent “

What part of receiving 50-100+ applicants per position do you not understand? Do you really think the unsuccessful applicants are incompetent? Lol. Lots of incredibly competent applicants don’t even get called in for an interview in most cases. I know of some pretty egregious examples, people literally experts in their fields, ignored by the public sector recruiters.

Public sector compensation is so disconnected from reality that its not funny. If competence was how government recruited, why is there so much incompetence in government? Your comments are comical.

#140 AGuyInVancouver on 09.27.17 at 1:52 am

#51 Greater Fool on 09.26.17 at 8:01 pm
This is the email I got this morning from my MP:

Dear Greater Fool,

Thank you for writing about rising housing prices. I share your concern that housing is increasingly out of reach for all but the wealthiest in the lower mainland and on Vancouver Island.

Part of the reason prices are so high is due to the Immigrant Investor Venture Capital Program established by the previous government, which made it very easy for investors not living in Canada to purchase residences here. Fortunately, the program is now closed. However, the federal government must still do more to ensure housing affordability in BC as prices continue to rise.

I have been pushing for both a National Affordable Housing Strategy, and a reformation of the tax system, to further address the problem. I have met with the minister responsible, the Hon. Jean-Yves Duclos, on this issue. I am pleased that he realizes that the federal government must re-engage in the issue of affordable housing for all. ..
_ _ _
This. I was surprised there wasn’t more discussion her over rumours the Liberals were going to make housing a right, as part of a national housing strategy.
http://www.macleans.ca/politics/liberals-ready-to-make-housing-a-right-as-part-of-national-strategy/

Given how the free market has failed ordinary Canadians in the area of housing it shouldn’t surprise anyone the Feds might become a lot more active in it.

#141 Oft deleted much maligned stock.picker on 09.27.17 at 3:00 am

Civil service DB pensions will not fail. Trudeau got a majority with 34% of the vote…..cvil service unions members dependant on Liberals continuing the scam are 25% of the population. Stuff the ballot boxes with fast tracked welfare dependant otherwise unemployable special interest groups and voila…..another majority. The civil servant unions spend millions on propaganda to elect Liberals. Our national broadcaster is happy to take the money and spin spin spin…..also a Union shop that got a billing in payola for being loyal last election.

The 60 percent of you who don’t vote Liberal still have lots of tax dollars to contribute. …..and Trudeau is busy taking all he can to pay his friends to vote for him. When income taxes hit 100% don’t say we didn’t warn you.

#142 Oft deleted much maligned stock.picker on 09.27.17 at 3:01 am

Civil service DB pensions will not fail. Trudeau got a majority with 34% of the vote…..cvil service unions members dependant on Liberals continuing the scam are 25% of the population. Stuff the ballot boxes with fast tracked welfare dependant otherwise unemployable special interest groups and voila…..another majority. The civil servant unions spend millions on propaganda to elect Liberals. Our national broadcaster is happy to take the money and spin spin spin…..also a Union shop that got a billing in payola for being loyal last election.

The 60 percent of you who don’t vote Liberal still have lots of tax dollars to contribute. …..and Trudeau is busy taking all he can to pay his friends to vote for him. When income taxes hit 100% don’t say we didn’t warn you.

#143 Oft deleted much maligned stock.picker on 09.27.17 at 3:09 am

BTW…..I think you’ve shot over most readers heads mentioning the LIRA……an ugly beast…..care to elucidate?

#144 Jay (not that one) on 09.27.17 at 4:46 am

It’s painful.

Special interest group after special interest group is coming out of the woodwork to whine that their special tax loophole is being closed.

“Boo hoo! We’ll have to pay the same as all the scrubs!”

I’m sorry that the left handed midget librarian tax credit got crushed. As someone who isn’t in a special interest group, I’ve got a message: “welcome to the club”. You’re not special, you shouldn’t be treated as special, get used to it.

#145 Burrito Billy on 09.27.17 at 5:17 am

I can see the new campaigns by realtors now – “buy a house or you’ll never be able to retire!!”

#146 FLHTK on 09.27.17 at 5:49 am

And what are the odds of that? Right up there with Justin calling me for advise but I’m ready!

Haha love it!

#147 rainclouds on 09.27.17 at 6:42 am

#84 flop “I’m sure a large percentage of them are playing by the rules and it is these rules that need changing rather than attacking these individuals.
hate the game,not the player…”

What you are doing is very much appreciated. If we had transparency it wouldn’t be required and far more info would be available to anyone able to type.

as mentioned many times Zillow has been providing all this and more in the US for over 10 years. Viewpoint in NS for over 5.

The only thing stopping the rest of Canadians from independent real time information is Realtor associations.(And the glacial pace of the Competition Board /Courts. which wouldn’t be required if the boards cared about the consumer)

Realtors could demand their boards serve the consumer in the best way possible. They dont.
And yes, some are honest and very good. Clearly, based on this court battle,a tiny minority.

I am willing to bet: EVERY CANADIAN REALTOR PURCHASING PROPERTY IN THE US USED ZILLOW….HAPPILY AND FREQUENTLY. But we cant.

If it wasn’t a cartel this would be a done deal

Once again, thanks! you Tasmanian Devil you……..

#148 Dharma Bum on 09.27.17 at 6:57 am

Stash your cash.

Starve the machine.

Save yourself.

Taxation is theft.

#149 maxx on 09.27.17 at 7:26 am

“Seems like we have two sets of rules. No?”

Ageist and elitist.

The “Middle Class”, whose belief in the system erodes daily and the Selfie Squad with grand delusions of adequacy.

The cupboard is less than bare and the fools on the hill spray taxes as though through a fire hose into the black hole of waste.

…….and they can’t even manage to pay their staff properly……………

#150 Herb on 09.27.17 at 7:43 am

Food for thought for those concerned:

… berating people on the internet for their personal views never actually changes someone’s mind. It’s theatre, largely: an expression meant to demonstrate one’s moral superiority to a social media circle and/or a cathartic release of personal grievances.

http://www.cbc.ca/news/opinion/sidney-crosby-white-house-1.4308012

#151 T2 on 09.27.17 at 8:21 am

I need no advice and I don’t have time for all you working slaves. The budget will balance itself. sunny days, sunny ways :)

#152 When Will They Raise Rates? on 09.27.17 at 8:23 am

#139 AGuyInVancouver on 09.27.17 at 1:52 am

Given how the free market has failed ordinary Canadians in the area of housing it shouldn’t surprise anyone the Feds might become a lot more active in it.

——————–

LOL

#153 When Will They Raise Rates? on 09.27.17 at 8:25 am

Privatized profits and socialized losses isn’t exactly a “free market”.

#154 crowdedelevatorfartz on 09.27.17 at 8:37 am

@#134 BillyBob re Mark
“Most of us don’t even bother to make an effort to refute your nonsense, it just makes us tired.”

+++++

It just makes us tired?
You give Mark credit…..
Most of us just scroll past the endless prattle……
The only thing recieving a workout when spotting Mark’s ad nauseun comments de jour is my index finger on the mouse wheel and my yawn reflex.

#155 Dups on 09.27.17 at 8:52 am

How many of us are “New Era Slaves” with invisible chains?

HOUSE—-Maintenance————————
BANK——Mortgage—-{Enter Name Here:}–EMPLOYER
GOV———-Taxes—————————–

I am, I bet most are too…so it is safe to say: this is slavery in disguise!~

#156 Ootadahhouse on 09.27.17 at 8:55 am

“The CPP and OAS? Fine, if you live on Cape Breton and like mac & cheese. Every day.” … or communal everything so everything is free.

In Ontario the electricity was communal, such that you do not have to pay for it if you can get your income down below $28000. $30 monthly was recently increased to $45 monthly and the money was taken from ratepayers. The new free electricity was moved from ratepayers to taxpayers and that is how the new 25% electricity price cut is being funded.

I think that huge price cut indicates a huge number of people were getting free electricity at the expense of ratepayers. Why did we commune electricity? Does that mean heating is communed next?

The communist mindset will hire more government workers to make more goods and services for us, like free electricity. They think we should not need savings to retire because that is unfair.

The artificial prices, like electricity jacking up and down twenty-five percent, will break our economy, like it broke USSR. That is why communism fails; ie. no real prices, just whim by the single payer.

#157 Tater on 09.27.17 at 8:55 am

#3 JSS on 09.26.17 at 6:10 pm
Since the topic du jour is around pensions, how much money should a 43 year old married straight male have in their RRSP/TFSA etc. by now?
——————————————————————-

Back of the envelope, assuming you want to retire at 65, save 10% a year and achieve 7% annually you need around 2 times your current salary.

#158 crowdedelevatorfartz on 09.27.17 at 8:56 am

And in the Babble On style of mark

Gee Saudi Arabia has lifted its ban on women drivers. The Last country in the world to have such a ban.

And what “drove” the impetus behind that decision?
Human Rights? Bwahahahahaha. Just kidding.
Nah.
The economy you social just warrior fools.
Seems the Backward Kingdom is spending more money than it has and unemployment is up, up, up.
Hence people cant afford to hire male drivers/escorts to take the women folk to do such mundane tasks as drive the kids to school or drive to the grocery store for a jug of milk.
Hurray for equality!
Just dont hold hands in Saudi…You’ll earn a good flogging for your efforts.

I assume we should expect more archaic rules to be banned/ recinded as the King and his hundreds of parasitical royal family members continue living their wasteful lifestyles.
Trudeau and his rich elites( insert public servant mandarins here) should take note.
The similarities are breathtaking. Only instead of a flogging and jail….we get higher taxes.

#159 Victor V on 09.27.17 at 9:52 am

Here are a few ways to oppose the upcoming small business tax regulations. The site includes a link to an online petition and ways to contact your local MP.

http://www.ontariosdoctors.com/support-your-doctors/

#160 maxx on 09.27.17 at 9:58 am

“….people require house prices to escalate annually – and hold at those levels until the day they need out.”

Made a casual verbal offer on a property last month. Realtard barks “the owners are not prepared to accept an offer this low. They’ve had offers in the region of blah, blah, blah dee blah……” Fine, flake off. Let some other sucker deal with the septic, roof, dock and a pile of other repairs. Let some other fool overpay.

FF to yesterday, realtard emails asking for an offer, because, well, you never know.

Liquidity is still soooooo underrated.

#161 IHCTD9 on 09.27.17 at 10:27 am

#140 Oft deleted much maligned stock.picker on 09.27.17 at 3:00 am

Our national broadcaster is happy to take the money and spin spin spin…..also a Union shop that got a billing in payola for being loyal last election.
_______________________________________

Don’t forget the Ontario Teachers Union who received millions from Wynnie as compensation for costs incurred via the act of negotiating.

If that sounds the same as taxi drivers being compensated by the government for costs incurred via the act of driving a cab – that’s because it is.

#162 Dissident on 09.27.17 at 10:33 am

RE: – #17 armpit on 09.26.17 at 6:37 pm

Hot damn, armpit. You are right. Tax loopholes got too mainstream. Everyone’s opening their own side hustle. Likely to keep up with the housing market, and so they can actually make some money to retire on, sans pension. Government got wind of that. Time to shut it down.

“When only minority Privilege discover the loophole, it is allowed. But when the masses learn about it and implement it…the government will shut it down.

No worries though, another loophole will be created for the Privileged and the cycle will repeat.”

#163 PastThePeak on 09.27.17 at 10:45 am

I am not someone affected by the proposed CCPC tax changes, but that doesn’t mean I support them. I don’t know how much the eventual changes will really result in increased taxes for the average small business – or the average incorporated professional. Perhaps most will only have a slight impact. However, even slight impact will still affect the money they have to spend and invest, thus adverse effects on the economy. There is nothing about this that is “positive” for the economy.

What I do know is that the “message” to the almost 2 million affected CCPCs is that they are ‘rich, tax cheats, not deserving, and should shut up and pay more’. This is regardless of how much additional they pay in tax, or lose in restructuring parts of their businesses. The class warfare has been launched, and I don’t expect it will be the last time the Libs do it.

What is missing in most of the debate is that the amount of new tax revenue projected is small, and no doubt will be less than that once people adjust. So this is NOT, in any way, going to close that Liberal deficit. It was *only* 17B in 2017 FY, instead of $23B – during a time of some of Canada’s best growth in a decade. And the spending is just getting started. It will likely be over $20B next year – again, when economic growth is highest it is likely to be for some time.

Despite all the whining about “Harper’s debt” – which at the time was much demanded by the coalition of the idiot left/separatists – it occurred during the Great Recession (no one seems to remember), and the deficit was brought back to 0 at the end. Could the Cons have done a better job at bringing that down sooner? I think so, and some criticism there is warranted.

But, that is nothing like what the Liberals are doing. They are creating a “structural deficit”. The deficit is still high even during strong economic times. The deficit is primarily based on higher social spending – not infrastructure like they emphasize. Only something like 20% of the recent budgets were for “true infrastructure” (building stuff), of that, much of it was to replace something existing with something else *green. Some might think a green, solar powered water treatment plant is good for environment – but it isn’t going to improve the economy. It is not helping productivity. The productive types of investment were under 10% of the supposed $100B+ debt plan. So despite the claims that the Liberal investments will help the economy do better in the long run, the spending just isn’t in this area.

Structural deficits, that are high in good economic times, are horrible when the economy turns, as the spending which needs to be cut will cause endless screaming (and lost votes!!!) from those affected. Does anyone really believe that Trudeau will cut the child care benefits, or increased funding for First Nations, or environmental programs? Reduce the civil service (enough)?

It will take a new gov’t, and the one that does will be extremely unpopular when (if) it does what needs to be done. At best it will only stop the bleeding for awhile, and then the Libs (or god forbid, the NDP) will be back to spend us to prosperity again.

It will take an entirely new generation to come around to the need to get our finances in order. It was by mid-90s only that enough Canadians wanted action that it was a Liberal gov’t of all people (working with GST revenue brought in by Mulroney, together with great economic times, and stuffing the provinces) that righted the ship. I think at least 10 more years enough think that way again.

With Trudeau (or Gerald Butts) at the helm, no attempts to address spending will take place – only new/more revenue stream focus. Sorry to say it, but Liberals will win the next election in 2019 with another majority. Nothing sticks, the media love him, and the unions are more aggressive than ever in elections. So we have another 6 years of Trudeau Libs at least.

Taxes are only going up, and the new top bracket and CCPC reforms are just the start. Expect an increase in the capital gains inclusion, changes to taxation on stock options (exempting perhaps small amounts), an increase in the 2nd highest tax bracket (between $142K and $202), and possible changes on dividends as well.

None of that will of course close the deficit – at best it would still be $10+B in 2020 and beyond, but could easily be higher if recession/slow economic growth, bond rating cut, or increased interest rates (fighting stagflation possible – what rate Fed Gov’t sells bonds for is not determined by the BoC rate).

No, it is not a pretty picture…

#164 Where's The Money Guido? on 09.27.17 at 10:46 am

B.C. Hydro was nine per cent over budget and already dipping into contingency funds from day one on the main construction contract at Site C…
Huge over runs!!!! Lies upon lies. This is all due to a US energy critic-the BC Liberal gov’t and BC Hydro hid from taxpayers.
Now the truth comes out.
BC Liberal gov’t=big fat liars
Can’t lie your way out of this, it’s all in black and white.
How many more dastardly deeds are we going to unearth from these scofflaws.
http://vancouversun.com/opinion/columnists/vaughn-palmer-b-c-hydros-site-c-promises-ring-hollow

#165 Kayaker23 on 09.27.17 at 10:46 am

Garth, you discussed exactly what the wife and I are seriously contemplating – moving to Nova Scotia though Cape Breton hasn’t been on our radar but its beautiful countryside. Yes, we have some cash and still adding but the bulk is in the home. Plan is too sell (and I have no issue selling below market level to move it as I bought in 2002 and prices have appreciated substantially since then) with luck we hope to bank a few $100Ks after buying our forever retirement home (we are 45 and 50 respectively) with visions of getting both CPP and OAS to cover basic expenses while paddling our kayaks through the thousands of gorgeous lakes in Nova Scotia. It works for us – I can stress and pinch pennies but for what. Life is too short to be live those productive years in constant angst worrying what if – not me, I’m not sticking my head in the sand and not dealing with issues but I refuse to let things take away what life has to offer today. Great job Garth, should I ever come into some serious coin you will be my first contact if I need any financial planning (again, leave the worrying to someone else).

We all need to chill – grab a kayak and paddle that stress away!!

#166 mike from mtl on 09.27.17 at 10:55 am

#123 Mark on 09.26.17 at 11:04 pm
….really so important that residents of downtown Toronto must suffer living literally next door to a major airport with wholly inadequate infrastructure?………………………………………………………………………..

How about having a pretty decently active international airport (YUL) on the same island and no easy access? Roads, terrible, public transport, take the bus. No direct train, no direct metro.

YYZ is fairly usual as far as north american transport goes. Could be better yes, but you guys have nothing to complain about.

#167 maxx on 09.27.17 at 10:59 am

#2 bb on 09.26.17 at 6:07 pm

““Half have a mortgage, half do not.”

That’s a lot of of (mortgage free) boomers and cash buyers!”

Not quite. That is a lot of POTENTIAL (mortgage free) boomers and cash buyers!

That other, luckier half (savvy savers and investors) knows full well the immense value of their liquid – and more importantly, that today, money is MUCH harder to get (requires quality jobs) and nearly impossible to keep, what with escalating costs of mere basics.

So, while the cost of borrowing money has been stupidly cheap and still is, by historic standards, the smart ones know that the value of liquid savings today is very nearly priceless.

Many, if not most realtards will simply have to suck up that reality, let alone those in debt…….which includes an overlap pile of realtards.

#168 jess on 09.27.17 at 11:12 am

triple tax exempt bonds (capital gains) puerto rico?
relationships
https://jalopnik.com/heres-why-puerto-rico-was-denied-the-same-shipping-waiv-1818825248

this is math
especially interesting @11.28min and capital gains exemption watch the “promotional” ad at 11.28 and hear the “business man”

Puerto Rico: Last Week Tonight with John Oliver (HBO) – YouTube
Video for triple tax exemption puerto rico video
▶ 21:22
https://www.youtube.com/watch?v=Tt-mpuR_QHQ
Apr 24, 2016 – Uploaded by LastWeekTonight
Bonds issued by the government of Puerto Rico and its subdivisions are exempt from federal, state, and local taxes (so called “triple tax exemption”). However, unlike other triple tax exempt bonds, Puerto Rican bonds uphold such exemption regardless of where the bond holder resides

It Takes Dark Money to Make Dark Money
Little is known about who funds CFIF.the Center for Individual Freedom
http://www.motherjones.com/politics/2012/04/karl-rove-crossroads-gps-center-individual-freedom/

==============================
Max Hopper, who pioneered a reservation system for the airline, died in 2010 with assets of more than $19 million but without a will and testament
https://www.bloomberg.com/news/articles/2017-09-27/jpmorgan-ordered-to-pay-more-than-4-billion-by-dallas-jury

#169 jess on 09.27.17 at 11:18 am

what were they thinking?

, “Puerto Rico’s Payday Loans.”

The crux of the crisis centers on what are known as capital appreciation bonds. According to the ReFund America Project, Puerto Rico borrowed $4.3 billion using this costly and risky form of debt. When the bonds expire decades from now, Puerto Rico will have to pay back $33.5 billion in interest—a staggering 785 percent interest rate. In some cases, the interest rate will top 1,000 percent. It’s a scandal that received almost no attention during the recent congressional debate over the so-called PROMESA bill, which will establish a federally appointed control board with sweeping powers to run Puerto Rico’s economy.

https://www.democracynow.org/2016/7/15/puerto_ricos_payday_loans_nearly_islands

#170 Where's The Money Guido? on 09.27.17 at 11:40 am

Re: #72 Thirtysomething Sense on 09.25.17 at 8:12 pm
Really appreciate the perspective shared in this post.

The hypocrisy it’s highlighting of bureaucratic entitlement vs. the upcoming tax shakedown of job and wealth creators has me furious.
But it’s a perspective I didn’t have before so I’m glad I read this.

This is long so bear with me…

It’s both sides playing you including municipal, provincial, federal…The adversary game.
Once they get into gov’t, what’s the mantra; it sure isn’t “We need to find a way to REDUCE gov’t-taxes” (evidenced by the minimum 3.5 million workers paid by taxes)…though they may believe this lie before election, if they’re a newbie.

The position then behooves them to increase taxes to pay increasing salaries that are negotiated behind closed doors. Now why is that? They even used an “independent” auditor to see what they should be paid (KPMG for eg.). LOL…

http://www.cbc.ca/news/business/canada-revenue-kpmg-secret-amnesty-1.3479594).

How have legal firms benefitted through these deals, including Morneau’s?

These firms, in cahoots with the markets/Wall Street/gov’t, are all behind the chicanery in every facet in Canada and abroad. You can see these firms, along with the accountant firms, involved in almost every YUGE! scandal that’s happened everywhere around the world. How many of these top firms in Canada are ensconced elsewhere and doing the same thing there? Answer: all of them!!! We can’t forget the ones that morphed or were taken over like Arthur Anderson. Check any number of the big firms and see the slime ooze.

http://www.lexpert.ca/500/canadas-largest-law-firms/
http://www.accounting-degree.org/scandals/
https://www.theguardian.com/business/2015/jul/21/the-worlds-biggest-accounting-scandals-toshiba-enron-olympus

It helps their position (and their scummy legal firms) to let salaries rise and fake low inflation.

Just look at all levels of gov’t mantras: “What about “so and so” getting a 10% raise, aren’t we worth that?” That was all we heard from the initial get-go, and the funny thing, it worked!
When the people got sick of that story, they switched it to the supervisors-managers-engineers mantra, “If we don’t pay them this, they will go somewhere else!”. Then they fed off the raises their minions got, and so on, and so on.

Then the hubris of the politicos, “We need an 18 month or so “retraining” gift at full pull so we can assimilate into the plebes life when we get booted to the curb, even though they end up in a cushy post with the insiders. Now how entitled is that?

So the union overlords see that (in cahoots w/the overlords?), and then it’s, “They get it, so why don’t we?. Everything’s behind closed doors, to “ensure” privacy…
And who gets it? Has anyone really looked at the coin Business Managers make in unions? Well, I do, and it’s the same BS.

Can’t you see, they’re playing all plebes for fools, no matter what side.

Oh I agree, we need money for health, policing, but haven’t you seen the way the game has changed in the last 20-30+ years. Or has it always been this way since the Khazarian-Rothschild dynasty set up the first banks, infiltrated-started every gov’t and loaned money for interest and included Military Industrial Complex-manufactured war as a buffer).

It’s so adversarial, concocted by the overlords, to create dissent between the plebes.
Whatever you are, if you’re not insider, you will work because of debt they conned you to get and make you struggle all your life.
Imposed gov’t by your overlords will do everything to make your life shite, while they abuse their power and position!

It’s a choice they demand you make, either you rebel (increasingly hard by the controls they impose, especially gun control) or you “abide”, as the DUDE would say……and let them do their thing, as they burrow a YUGE! hole in your ass.

If the latter, then rant all you want, you deserve to cry like a baby, hence the huge hole in your a-hole. But don’t think that I will agree with your “mantra”, gov’t imposed or not.
All these pension/benefits will slowly be taken/robbed by any chicanery they can pull off, the slow boil. Why? Because it works!.

#171 IHCTD9 on 09.27.17 at 11:58 am

I think Trudeau is going to be having heart problems come election time in 2 years. By then he’ll have a pretty good understanding that all of his tax increases have actually reduced revenue rather than raised it.

The more I observe, the more I can see where things are headed. I’m sure all the honest law abiding business owners (who have paid huge taxes for decades) just loved being put on stage by Trudeau in front of the entire country and referred to as rich cheating loophole exploiting scumbags.

How hard would it be for them to respond in kind by ACTUALLY BECOMING a cheating scumbag? Being honest got them nowhere with Trudeau. Think any are pissed? Think any were tempted in the past but had no reason risk their reputation? What rep have they got now for their effort? Trudeau and Morneau label them, they’re ripping off all Canadians, they’re cheaters, they’re greedy, SCUMBAGS.

Meanwhile governments are trying to catch actual real cheaters by employing bots on Kijiji and Ebay. It doesn’t get any lazier and ineffective than that. I’m sure the curbsiders are shaking in their boots. Go look and see how many “frames with ownership” are available. Have a look and see how many smashed and branded high end vehicles along with a matching identical but low end model “parts cars” are up for sale. They’re scared alright.

Trudeau has probably lit more than just a few fires that will burn him down the road.

#172 Mark on 09.27.17 at 12:00 pm

“and the deficit was brought back to 0 at the end.”

Nope. Harper ran a deficit of $14B in his last year in office.

http://www.bankofcanada.ca/markets/government-securities-auctions/goc-t-bills-and-bonds-outstanding/

November 2015 = $650B
November 2014 = $636B

I’m not a fan of the Liberals, but the Conservatives’ revisionist history (or put another way, lies) around the sorts of deficits that were run under their administration (~$240B cumulatively since Harper took the PM chair) is really unfortunate.

#173 saskatoon on 09.27.17 at 12:09 pm

what i find so interesting about the liberal mind:

calling it unethical is simply regarded, and easily dismissed as “name-calling”.

“immorality” is instantly synonymous with “loser” or “a-hole” or “monster”.

#174 Victor V on 09.27.17 at 12:13 pm

No ‘predetermined path’ for rate hikes, Bank of Canada’s Poloz says

https://beta.theglobeandmail.com/report-on-business/economy/no-predetermined-path-for-rate-hikes-bank-of-canadas-poloz-says/article36408611/

Bank of Canada Governor Stephen Poloz insists he has not set a firm course for future rate hikes, citing the unusual number of “unknowns” hanging over the inflation outlook.

The warning Wednesday from Mr. Poloz could dampen expectations in financial markets that the bank will raise its benchmark interest rate – now at 1 per cent – at least one more time this year.

“There is no predetermined path for interest rates from here,” Mr. Poloz insisted in notes prepared for a speech to the board of trade in St. John’s. “Monetary policy will be particularly data dependent in these circumstances and, as always, we could be surprised in either direction.”

#175 Victor V on 09.27.17 at 12:18 pm

Sorry to burst your bubble, but owning a home won’t fund your retirement: Rob Carrick

https://beta.theglobeandmail.com/globe-investor/personal-finance/household-finances/sorry-to-burst-your-bubble-but-owning-a-home-wont-fund-your-retirement/article36396255/

#176 TurnerNation on 09.27.17 at 12:26 pm

I found some more elite Party overlords. At their trough. Commonwealth – ours is theirs.
But fear terr**ists right?

http://www.postcity.com/Eat-Shop-Do/Do/September-2017/Sewell-on-City-Hall-80-police-officers-costs-12-million/

https://www.thestar.com/news/city_hall/2017/09/26/toronto-hydro-ceo-faces-questions-over-pay-of-more-than-1-million.html

#177 Ian on 09.27.17 at 12:31 pm

Poloz on the wires now talking about being ‘cautious’ in speech today. Not sure what to make of this…

https://www.bloomberg.com/news/articles/2017-09-27/poloz-says-bank-of-canada-to-proceed-cautiously-key-takeaways

#178 jess on 09.27.17 at 12:46 pm

The case is No. PR-11-3238-1: In Re: Estate of Max D. Hopper, Deceased, Jo N. Hopper v. JP Morgan Chase Bank, N.A., et al, in the Probate Court of Dallas County, Texas.

#179 NoName on 09.27.17 at 12:51 pm

For some time now I keep seeing lots of new payday loan places opening around town. But what is interesting now I am noticing on couple of places that second payday loan store will open with in walking distance of “old” store. Also restaurants are empty and closing…

#180 aa3 on 09.27.17 at 1:11 pm

It doesn’t take a math prodigy to see that Canada’s private sector of low productivity small businesses who also deploy small amounts of capital.. will not be able to support a massive and well paid governments.. let alone the 3 layers of Municipal, Provincial and Federal.

#181 Stan Brooks on 09.27.17 at 1:15 pm

#129 Leo Trollstoy on 09.26.17 at 11:38 pm
Why I like second best about Canada is that inflation has been at a healthy level for a couple decades. Everything has been inexpensive and good

What I like best about Canada is the quality of life. Pretty awesome!
—————————

I need yous rosy glasses.

What are your drinking/smoking?
I am doing Johnny,

#182 Ian on 09.27.17 at 1:16 pm

This is very up in the air, dogs.

Might mean:

1) Undoing the 2015 ‘oil and gas’ rate reductions is enough (which they’ve already done in July and October)…since Plozzer did make reference to that today

2) They do October, but not December

3) They do both October and December and then wait, which might make sense as they are probably taking into account the likely new dovish Fed chief in Feb 18.

I’m going to say #3 is the most likely.

Murky!!

#183 Stone on 09.27.17 at 1:31 pm

#173 Victor V

Not a bad article. I pulled this piece out of it:

“A lot of people want to live large in retirement, which can mean moving to a more urban location and buying something smaller but also nicer. With the boomer generation starting to retire, this type of housing is in strong demand and thus expensive to buy. Prediction: We will see more people who take out mortgages to help them downsize to the kind of home they want for retirement.

Selling your home and renting will put a lot of money in your hands, but you’ll need a good part of it to cover future rental costs.”

I thought the last line was a bit extreme. I guess it depends how much equity you pull from the sale. When I sold my house at the end of last year, I invested the profit. The dividends alone from the ETFs cover my rent. I don’t need to touch the invested funds at all and am watching it grow due to the capital gains. To me, sell and rent is a win win. No maintenance. No responsibility. The funds invested in a balanced and diversified portfolio continue to grow and hopefully always (exluding market crashes of course which are just buying and rebalancing opportunities) stay ahead of inflation.

#184 RL on 09.27.17 at 1:45 pm

“Says the regulator’s report: “Findings suggest a large number of Ontario homeowners, 45 plus (particularly pre-retirees) are replacing retirement planning with the belief that home equity gains will finance their retirement.”

This idea keeps getting echoed in the media until it turns into a ‘fact’, but I’m not sure I believe this. I think people in this age bracket are just running out of options to fund their retirement. If you haven’t started saving for retirement in your 20s and 30s, and you have no pension to fall back on (and OAS is a joke), what’s left?

#185 PastThePeak on 09.27.17 at 1:47 pm

#170 Mark,

Nope, the non-partisan Parliamentary Budget Office was on record to say that the books were essentially in balance in Harper’s final year when *he* left office.

“The (Conservative) government handed over a set of books that were, for all intents and purposes, in balance,” said Page.

http://www.cbc.ca/news/politics/baloney-meter-federal-surplus-1.3569943

#186 PastThePeak on 09.27.17 at 1:51 pm

#172 Victor V

My guess (as good as the next guy’s which is to say not much…) is that Poloz holds off on next rate hike until the US Fed does so first (or at least is very strongly likely to),so as not to let the $CAD get too strong. Does that align for a December increase? Hard to say – BoC meeting is Dec. 6th, and the US Fed is 12-13th.

Certainly seems like some increased inflation is working its way through the system, and this is before the Ontario min wage hike to $14 hits in Q1/18.

#187 Eks dee Sipal on 09.27.17 at 2:07 pm

#65 bring it on… You haven’t really addressed the valid points from n1tro… You are wrong if you think that the government conducts INDEPENDENT statistical analysis that has no commercial value. This assumption just shows how clueless you are. I’m surprised n1tro didn’t really rip into you.

#72 Old Dog … That is Conservative drivel. Ever heard of Mozart? Tesla? Any other brilliant and hard working person in history that died a pauper? How old ARE you, BTW?

#127 Leo Trollstoy… I see you haven’t finished the Aberfeldy yet.

Face it. Conservatives are boring as hell, checking their Excel spreadsheets at the end of the day like Stone. They need the Liberals and Dippers in their lives to create drama and give their lives meaning. Very sad.

#188 Brett in Calgary on 09.27.17 at 2:30 pm

It seems Calgary isn’t all better… not yet at least. Nexen and Husky just laid off another couple hundred.

#189 Trump tax cut plan on 09.27.17 at 2:43 pm

Garth, Trump’s tax cut plan is out.
What’s your opinion about it?
Care to compare it with the Liberal’s plan?

#190 Smoking Man on 09.27.17 at 2:44 pm

Bombardier gets bitch slapped by Trump. 200% + Taraf.

T2 is out of his league, to consumed with putting transgender and no existant woman’s issues crap into NAFTA.

Truly Remarkable. Is there anything between rich boys ears.

USDCAD on fire.

Poloz chickens out on the next rate hike. Wonder if it’s related to the Taraf. Or maybe Poloz knows the confiscation of wealth from small biz is a disaster waiting to happen.

#191 IHCTD9 on 09.27.17 at 2:46 pm

#170 Mark on 09.27.17 at 12:00 pm

Nope. Harper ran a deficit of $14B in his last year in office.
_______

Nope.

Oct 2015 deficit was 941 Million, you can look it up.

Now thanks to wonder boy it’s about 17 BILLION.

#192 Ace Goodheart on 09.27.17 at 3:12 pm

So there’s a certain feeling that one gets at the end of the month, when all the emails come announcing the monthly dividends have arrived. Opening up the account online and withdrawing thousands of dollars you have done nothing whatsoever to earn. Knowing you can go out and spend this and it’ll be back again next month and the month after that, forever.

It feels very comfortable. Calming. Adds years to your life. Makes health problems go away.

Tax time is even more fun. The realization that one pays much less tax, earning money by doing nothing at all, than those who work for their money. Again the feeling is not capable of description and must be felt to be appreciated.

This is how the 1% earn their incomes. And this is also how I earn mine.

Only I am not 1%.

I just put together a portfolio that pays me every month to do nothing. I did this over a 12 year period. 1/2 the money came from running businesses the other 1/2 from a couple of real estate plays that turned out.

Anyone can do this. I started out as a homeless 17 year old.

No assets no wealthy family no income nothing at all.

All one has to do is understand money. It is not something you spend. It is something that works for you. So you don’t have to.

And understand that the 1% will always rule the rest of us and they will never tax themselves. So earn your money how they do. And you will pay very little tax and have a very comfortable life

#193 chapter 9 on 09.27.17 at 3:34 pm

By whacking small business owners (who have no pensions) as the government is proposing, an estimated $250 million will be realized–Garth

That is just about of the amount of cash that is needed to pay for the increased budgets for 2017/18 for the following money pits
CBC–$150 million, Canada Council for the Arts–$75 million, Telefilm Canada–$5 million, National Film Board–$3 million, Showcase Canada’s Cultural Industry to the World–$25 million
But, if your a plumber that is augering out a urinal, you have to understand that the “francophonie games in West Africa” are a priority.

#194 IHCTD9 on 09.27.17 at 3:37 pm

#156 Tater on 09.27.17 at 8:55 am
#3 JSS on 09.26.17 at 6:10 pm
Since the topic du jour is around pensions, how much money should a 43 year old married straight male have in their RRSP/TFSA etc. by now?
____________________________________

Real world safe I’d say 250K. If you got that much now, keep adding 1000.00/month and do so till 65 averaging out 4.0%, you’ll end up with about a Million at 65.

Using the above guide, there is an outstanding chance that you will do better. Bumping the average return to 6.5 while keeping everything else the same get’s you near 1.6 Mil and kicks off near 100K per year.

Work around scenario #1 so you won’t be disappointed – financial SHTF could be coming in our lifetimes. Government is already insane trying to raise revenue, voting public today has less brains than a hunk of limestone.

Tread carefully.

#195 Dups on 09.27.17 at 3:40 pm

The story of the Ant worker:

https://www.slideshare.net/effat57/the-ant-story

#196 n1tro on 09.27.17 at 3:50 pm

Jamie Dimon on bitcoin…”it’s a fraud.”

This may be true Jamie and I’m sure it takes someone with a lot of experience in fraud to spot a fraud.

https://finance.yahoo.com/m/af3ace01-3045-39f3-8b37-38ab47d3ee3f/jpmorgan-ordered-to-pay-more.html

from the article….”The jury found that instead the bank committed fraud, breached its fiduciary duty, and broke a fee agreement.”

#197 Dude Duderson on 09.27.17 at 3:53 pm

Simply declaring something a “right” doesn’t make it appear.

Positive rights are a pain like that.

#198 IHCTD9 on 09.27.17 at 4:02 pm

#188 Smoking Man on 09.27.17 at 2:44 pm

Bombardier gets bitch slapped by Trump. 200% + Taraf.
____________________________________

Trudeau’s small guy syndrome is going to hit hard now – prepare for stupidity on a never before seen scale – even for him. He’s going to snap! lose it! and overact, but Justin will be the one taking the flurry to the solar plexus. The Trump administration will take turns slapping Trudeau around.

I know a few folks who work for an Aerospace manufacturer in a pretty small town. That particular company’s largest customer by far is Boeing.

I’ll bet they’re not making any plans for a winter get away.

#199 Entrepreneur on 09.27.17 at 4:11 pm

David Eby is in the spotlight again, not in housing directly but in the casinos and money laundering. David Eby come to the mid island where there is a casino and the house prices are beyond the local salary.

A local restaurant could not sell at a cheaper price two year ago but doubled the price and sold. What is really interesting is that the new owners have not opened it and it has been about eight months. Must be nice to have that kind of money, yawn.

#200 Stan Brooks on 09.27.17 at 4:48 pm

Bomb a deer getting destroyed while chicken little (Poloz) chickens out from further rate hikes.

They/BOC only increased rates so they can cut back down the road folks! It is a psychology play/a scam!

Temporary strength of CAD seems over.

#201 Manitoba Whale on 09.27.17 at 4:57 pm

#162 PastThePeak on 09.27.17 at 10:45 am
No, it is not a pretty picture…
*****

I just shrug my shoulders now.
I envy those people who just bump along in life, not worrying about things, letting governments and institutions lead the way, trusting blindly.
My empathy for these people is at an all time low.
It kind of feels like 1999 before the wheels fell off.

Is there consequences for our actions and the actions of our government? I used to think so.

#202 Lost....but not Leased on 09.27.17 at 5:10 pm

#174 Turner Nation

Re: the Police..

Probably THE biggest featherbedders….

In the good olde days..they used to recruit police right out of high school..now they want some sheepskin to prove indoctrination by higher powers.

A friend of the family wanted to be a cop..warned them not to…setting self up for PTSD.

There is a funny scene in one of the Phantasm movie series..one of the protagonists hits a zombie cop with his car..and quips”Cops can be real assholes”

In my City…we unfortunately have RCMP under contract…which obligates us taxpayers to whims of Mountie head office. When you assess your annual taxes..Police and Fire take up the lions share.

Our RCMP tend to be diverse and wet behind the ears…aka young and full of themselves.

Finally..met a criminology student few years back..and he stated one of his profs submitted “the system is a success because it’s failure”..implying that existence of criminals creates jobs for cops, lawyers, judges, prison guards etc. etc.

People should perhaps look at the fiscal records of their local gov’t and see how much OVERTIME their police log.

THEN via sheer gall…..Cities/Cops claim that they need more cops…due to either more crime and or population increases…when perhaps it is the failure of the justice system that creates the ever increasing demand.

#203 Manitoba Whale on 09.27.17 at 5:17 pm

#190 Ace Goodheart on 09.27.17 at 3:12 pm
All one has to do is understand money. It is not something you spend. It is something that works for you. So you don’t have to.

*****
Had a discussion about this exact thing yesterday with a 91 year old man who still volunteers his accounting skills!
LBYM, collect your divs and relax.

#204 Lost....but not Leased on 09.27.17 at 5:49 pm

#197 Entrepeneur

I know some activists( most of whom simply humble folks who have had enough), but advise them to be careful of burnout… there is a point that one has done one’s best…don’t let the given issue/s consume you…perhaps time to let others take the torch

This casino issue is one of them…
I’ve posted on this previously, but the literal open border policy to offshore funds has become a cancer to such a degree it really won’t be seriously investigated..because if it was there are not enough prisons to hold the parties who are culpable under the dictum “ignorance is no excuse.”.

In BC..local gov’ts get a cut of casino revenues..and the City of Richmond has benefitted the most,to the point that many of its ego- driven capital projects like the Olympic Oval could/should be confiscated via the proceeds of crime…

In other words….moreso in BC…the new NDP gov’t will realize the huge mess and back off.

#205 Mark on 09.27.17 at 6:07 pm

“Nope.
Oct 2015 deficit was 941 Million, you can look it up.
Now thanks to wonder boy it’s about 17 BILLION.”

Maybe $941M for the month, but for the last year that Harper was in office, the Government of Canada spent $14B more than it took in. The issuance of government debt makes this very clear, government debt used to finance the spending of government.

There’s of course, some seasonality if you use month over month numbers, and maybe the tax collection situation was improving for the last month he was in office, but the Bank of Canada data is clear and unequivocal; Harper ran huge official deficits for most of his time in office.

#206 Tony on 09.27.17 at 6:28 pm

From what Poloz said it looks like Canadian interest rates have already normalized. With no more rates hikes coming out of America it looks like the next move in both countries is down not up. I told Ian but he doesn’t believe me.

#207 maxx on 09.27.17 at 7:06 pm

#11 Hans on 09.26.17 at 6:31 pm

“When they say that real estate will fund their retirement, are they differentiating between hoping for a capital gain on the property and those renting part or all of the property out? Important distinction imo.”……….

“Price it into what you’re thinking about doing with a property and if the shoe fits, buy it.”

Don’t forget to factor in the fact that at retirement, most people’s tolerance for, putting it politely, counterproductive behaviour and ageing property is a mere fraction of what it was when they were young.

The last thing I’d want to be doing at this time of life is managing tenants, repairs and optimizing occupancy…….ughh.

Takes away from other pursuits that are way more fun.

#208 Bezengy on 09.28.17 at 7:59 am

Balanced Budget? I see the left really has a hard time admitting Harper had a balanced budget. I guess people will believe what they want to believe. In my life time I’ve seen three balanced budgets, Harper’s, Martin’s, and provincially the Harris budget. I think T2 should get down on one knee, (just like the NFL guys), and beg them to come back to the big house and show him how it’s done.

#209 Weaver on 09.28.17 at 12:56 pm

Speaking from an Ontario standpoint, our taxes are out of goddamn control. Beyond not being okay with the rate of taxes, the income threshold for them is linked to some bizzaro world cost of living.

Why is income over 45k for instance taxed at a rate of 30% when a crumbling 65 year old bungalow costs $800k and a one bedroom cost $2k a month to rent?

The government DRAMATICALLY needs to shift these tax bands to affect how much it actually costs to fucking live in this country.

IMO first $30k should be completely untaxed – this is simply how much rent, food, and transport costs in Ontario.