Elevated risk

Well, just when real estate ‘s chilling, rates are rising and regs erecting comes word the feds would like to make it easier for the self-employed and newly-arrived to buy houses. Yes, like the home ownership rate (at 76% of those over 45) ain’t high enough already. Maybe we should strive for 100%, and beat those lousy house-horny flippy Romanians (96%).

This week, amid little fanfare, CMHC said it would soon loosen the restrictions on small business people and immigrants, since it’s unfair they have to prove income levels the way people with salaries or citizenship status do. “Right now, under our mortgage insurance policies, you have to be able to document income to get mortgage insurance, to a level of specificity that discriminates against new Canadians, because they can’t do that,” says agency boss Evan Siddall. “It discriminates against entrepreneurs, as well, because they can’t prove their income as well, so we’re looking at our own policies to try and make sure that there is more equity in our mortgage insurance programs.”

The issue is income verification, yielding a great example of how our esteemed leaders can suck and blow at the same time. Even a Dyson can’t do that.

Here’s CMHC recognizing entrepreneurs (whom T2 apparently hates) often have wildly fluctuating cash flow and inherently unstable personal finances. So the rules will be altered to allow them to qualify for insured mortgages. Same with newcomers who may have no credit history and scant employment data. More accommodation for them.

But at the same time, the bank regulator, OSFI, is on a different path – scolding the big lenders for handing out cash too leniently and warning its stress test is nigh. “OSFI expects all financial institutions to exhibit rigour in the verification of a borrower’s income as it is a critical element in the residential mortgage underwriting process,” it said in a bombshell letter to all the banks on July 7th.

Why is the bank cop being tough? Simple: “The current macroeconomic environment in Canada is characterized by elevated financial risks and associated vulnerabilities for Canadian financial institutions,” it says. “Persistently low interest rates, record levels of household indebtedness, and rapid increases in house prices in certain areas of Canada (such as Greater Vancouver and Toronto), could generate significant loan losses if economic conditions deteriorate.”

If you’ve any doubt where this is headed, give it up. The next hammer’s about to fall on housing, whacking the self-employed plus old and new citizens equally. The universal stress test so many people in the industry fear is now just 100 days away.

Top bank cop Jeremy Rudin came out swinging Tuesday saying his agency will publish its new draconian regs by the end of October, ready for implementation early in 2018. Included will be the stress test requiring any borrower – regardless of how much is put down – to prove they can carry the loan at the current rate + 2%. As I have told you, it turns 3% mortgages into 5% loans – a dramatic change from the two per cent levels of last spring.

“We clearly see the potential risks caused by high household indebtedness across Canada, and by high real estate prices in some markets,” he said in a speech in the very epicentre of frothy excess and hormonal hedonism (Toronto). “We are not waiting to see those risks crystallize in rising arrears and defaults before we act.” Clear enough for you?

The effects?

It’s anticipated there will be an overall reduction in credit extended to borrowers of about 18%. The biggest impact will be in Toronto and Vancouver where house prices have totally outstripped income growth. Less so in Regina, Montreal or Tatamagouche. Also impacted will be many people whose mortgage comes up for renewal after the new rules materialize.

If you renew with the same lender, have missed no payments, still have a job and the bank doesn’t order an appraisal, you’re good. The renewal should be automatic – but likely at a stiffer rate. If you don’t like what’s being offered and decided to switch lenders, you’ll be caught in the stress test mesh. No mortgage unless you clear the high hurdle. Thus, your bank can hold you hostage, milking you for whatever rate it can reasonable justify because your bargaining power just went to poop. Also at risk will be borrowers who took loans from Nic’s Mortgage Emporium & Under-car Oiling, who may have sold your loan to another lender after being placed.

One thing for sure: cheap loans and available credit created the bubble and made slanty semis worth $1 million. Higher rates and less credit will do the opposite.

$     $     $

Days ago I shamelessly exploited this blog to try and recruit a pneumatic, dog-friendly, clever employee for my financial business. And while some might have expected a crop of deplorable, blinky-eyed, mouldy, renting, basement-dwelling candidates to emerge, this was (I can report) not the case. Instead, a tsunami of talent. Who knew so many quants, financiers and titans read this pathetic site? There were dozens of wildly qualified people to choose from, even after all the cat-owners and Kia drivers were discarded. I was humbled.

Anyway, it’s done. The new hire is perfect – a Bay Street player with experience, no pretension and a five-year-old mixed breed. The pooch starts Monday.

196 comments ↓

#1 Al on 10.03.17 at 5:26 pm

“Maybe we should strive for 100%, and beat those lousy house-horny flippy Romanians (96%).”
I hope this is a joke. I’m Romanian and I really hope we are not so stupid.

#2 Money Miser on 10.03.17 at 5:35 pm

Seems very strange to be making home ownership more difficult for some and much easier for others, especially newcomers to Canada.

I found it very odd that I could apply for a mortgage here without even being a permanent resident (luckily I backed out). The bank also didn’t care that I had debt back home in the UK to the tune of $50,000. If it wasn’t Canadian, it didn’t count, they said…

#3 Mike in Edmonton on 10.03.17 at 5:35 pm

So is there going to be a mad rush of greater fools buying before the new OSFI rules are implemented? Will they be able to qualify on Dec 31st, and then have the usual ~120 days to buy a house, or will some other timeline transpire?

If the above happens, house prices may be propped up until end of April 2018, at which point they’ll hit the 18% wall, would they not?

#4 HoweStreet.com on 10.03.17 at 5:36 pm

Ross Kay on HoweStreet.com Radio:
Trudeau Policies Making It Harder to Buy a Home?
Real Estate Industry Covering Up Their Miserable Failure Rate?

http://www.howestreet.com/2017/10/02/trudeau-policies-harder-to-buy-a-home/

#5 WW1 on 10.03.17 at 5:36 pm

Will the new person be posting on the weekends too?

#6 Jerry on 10.03.17 at 5:39 pm

All I can say is what the hell has taken so long.
It’s already too late.
This mess is going to spread.
If you need to sell you better put up your home now,
Or you may be in the same location for quite a while.

#7 Smartalox on 10.03.17 at 5:41 pm

Monday is a stat. Can the pooch start Tuesday?

#8 Smartalox on 10.03.17 at 5:45 pm

Does anybody know if the OSFI is still talking about a +3% stress test on mortgage renewals?

Or are they just hoping that the +2% stress test will gut the market, and then maintaining LTV requirements will do the rest?

#9 Sarcastic Man on 10.03.17 at 5:47 pm

Let OFSI bring down the real estate bubble in Toronto….Us Trump’s supporters been waiting a darn long time to prevent another housing bubble down here in the States to take away our jerbs.

I’m laughing at the day when all of you Toronto Hipsters end up crying over spilled latte and avocado guacamole…You vouch for equality, but force Mexican avocado farmers to sell their produce for pennies on the dollar.

#10 When the Whip Comes Down on 10.03.17 at 5:47 pm

So it will be a very busy winter as people try to rush and beat the OSFI rule implementation deadline……

#11 I’m stupid on 10.03.17 at 5:57 pm

So can anyone that’s not qualified under the new regs simply say they’re self employed and get a mortgage?

#12 Mike in Cowtown on 10.03.17 at 5:59 pm

Starts in 100 days? So much for the hammer coming down this fall from OSFI.

#13 Mike on 10.03.17 at 6:09 pm

.
Prices can only go up in Canada at a 2 year point…i.e. between any 2 years in recent history. My friend in Vancouver just sold his 5000sqft lot house in a damp corner at 1.6M, 70k ABOVE asking.

Canada, eh!! Keep trying but it wont pop – EVER.

OSFI will come and go….

#14 Randy on 10.03.17 at 6:09 pm

Aren’t Romanians like gypsies ?

#15 Stone on 10.03.17 at 6:13 pm

Interesting. Does CMHC have sales targets? Sounds like they’re down on their sales and need to bump them back up. Why don’t they put up a sign that says “We’re desperate! Please take out a CMHC insured mortgage.”

I’m rooting for the OSFI guy. At least he has some balls. Now make sure the new regs are stiff as hell. It will be for the greater good even if the general populace won’t see it that way.

Congrats on the new hire, Garth. Sounds like you had a real pick of the cream of the crop. Hope all works out nicely for everyone involved.

#16 Regardless on 10.03.17 at 6:15 pm

regardless of how much is put down

I don’t understand the rationale behind this.
If someone has a 60% downpayment, and 40% loan, why on earth would you bother with testing that?

The bank’s money is completely safe there.
Bank won’t get bitten, borrower wont go bankrupt, even if the home value does -50%.
At any time, the bank can gets it money back from a loan with that much equity.

#17 Toothless Ones on 10.03.17 at 6:16 pm

Lol – what one hand giveth the other taketh!

So we have B20 regs coming designed to cool the market while at the same time lessening the requirements for the self-employed and immigrants – whose numbers collectively can overwhelm the market.

As everyone has pointed out here, bears wait for the next provincial or federal measure to cool the market all the while ignoring that measures to cool the market have failed for almost 10 years!

First it was the elimination of the 40 year amortization; then changes to withdrawing equity from your home; then down payment increases; then the new stress test.

Face it, we see a constant ‘suck and blow’ mentality at the federal level as no one wants to see the market correct.

Nine years and counting of toothless measures! Don’t worry, in six months time, we will all be wondering why B20 had no impact and will be eagerly discussing the next proposed toothless measure – as we have been for 9 years on this blog.

#18 Penny Henny on 10.03.17 at 6:26 pm

#1 Al on 10.03.17 at 5:26 pm
“Maybe we should strive for 100%, and beat those lousy house-horny flippy Romanians (96%).”
I hope this is a joke. I’m Romanian and I really hope we are not so stupid.
////////////////////

No we are not.
But you are.
Just joking :)

#19 Rainclouds on 10.03.17 at 6:28 pm

Just brilliant. Give the idiots and banks 2 months to keep inflating debt. Drive prices up another 10%.

If they want to stop morons from self immolating perhaps next Tuesday would make more sense……oh wait OSFI only cares about the banks.

Meanwhile in The corruption capital of Canada the NDP sits with their thumbs up their posteriors. Condos not included in the 15% foreign tax so guess where the money goes. Gonna be interesting when Condos pass houses in price………………

Eby and Horgan railing about RE malfeasence while lowly MLA’s in opposition, mute now, New boss same as the old boss.

Glad I didn’t vote for those hypocrites

Pathetic

#20 JR on 10.03.17 at 6:29 pm

Garth: “Anyway, it’s done. The new hire is perfect – a Bay Street player with experience, no pretension and a five-year-old mixed breed. The pooch starts Monday.”

Congratulations Smoking Man!!! You got the job!!!

#21 Bob Dog on 10.03.17 at 6:39 pm

Isn’t CMHC run by a bunch of ex worthless parasite realtors?

If they are favouring newcomers, can I sue them for discrimination?

#22 Rental property math on 10.03.17 at 6:40 pm

Does this mean prices are going to go back to 2014 levels and happy housing crash everyone will be able to afford a house? Probably not.

Who needs a rental application?
I hope you like whatever colour I chose to paint your home (which belongs to me, you’re just paying for it)

#23 Dolce Vita on 10.03.17 at 6:41 pm

Not only do they want income verification they want the same for the down payment (where the money came from).

They do not want bundling, another loan to circumvent the LTV, secured using the same property (alternate lender money).

TransUnion saying about 50% of uninsured mortgages were financed using bundling (and barely able to scrape together the 20% down payment with funds from alternate lenders).

Income verification is not the only problem, add downpayment verification to prevent bundling to the list.
____________________________________

#13 Mike

1 observation out of the 122 detached sales in Vancouver.

That makes your story statistically insignificant.

Provide at least 34 more like that and I might believe you that “wont pop – EVER.”

Besides, the cheapest average detached is about $2.4 MM now, so what did your friend sell, a tool shed on that lot? A pretty low selling price.

#24 Tony on 10.03.17 at 6:41 pm

The OSFI stress test is designed to bring all the first time buyers back into residential real estate. First they increase the minimum wage in Ontario and Alberta then they restrict credit meaning most people will be buying condos and townhouses just like we already see in Vancouver. Without the first time buyer the housing market collapses so all the changes in the future will be to bring the first time buyer back into the market pushing up prices at the low end of the market just like we already see in Vancouver. Most people don’t even see this, no one fools me.

#25 ej on 10.03.17 at 6:41 pm

That photo looks like the not-so-princely Prince Rupert; cow bay.

#26 Smartalox on 10.03.17 at 6:45 pm

From the ‘If you can’t beat ’em – might as well join them!’ file:

CMHC Looking to Partner with Air BnB to boost supply of long-term rental units

CMHC chief executive Evan Siddall said his agency recently approached Airbnb, the largest such service in Canada, to see if there are ways to turn those short-term rentals into apartments available to locals to rent for longer terms. He cautioned that it was still early days with a lot of details yet to work out.

“I think VRBO and Airbnb should get ahead of this, because they could be giving us some social utility by helping us spawn supply,” Siddall said in a recent interview with The Canadian Press.

Lindsey Scully, a spokeswoman for Airbnb, said the company is speaking with potential partners about ways to “create economic opportunity for everyday people.”

“We take the issue of affordable housing seriously and that is why we are collaborating with communities and organizations across Canada, sharing comprehensive data and detailed information about our community,” she said.

https://beta.theglobeandmail.com/report-on-business/cmhc-looks-to-airbnb-in-bid-to-boost-supply-of-affordable-rental-units/article36470320/?ref=http://www.theglobeandmail.com&

#27 FOUR FINGERS WATSON on 10.03.17 at 6:47 pm

More air in the bubble. They are not gonna let the bubble pop. Been sayin’ it for years…..

#28 TurnerNation on 10.03.17 at 6:49 pm

One one realises 80% of news is faked/predictive programmings…the latest one has a movie soundtrack, all the key talking points, local photos of four, and of course a Go Fund me campaign ($!). All wrapped up in one day – dead men tell no tales.

Latest in socialist bafflegab: your money is theirs. Be fair, they should earn more – they deserve this.

https://www.thestar.com/news/gta/2017/10/03/toronto-residents-do-not-make-enough-money-to-thrive-report-says.html

#29 Lost...but not leased on 10.03.17 at 6:49 pm

Bifurcating all the bullsh*t…leads one to deduce Garth’s latest hiree is either Howie Mandel or Stephen Harper..

#30 A123 on 10.03.17 at 6:49 pm

Aren’t Romanians like gypsies ?
———
Can’t be.
Gypsies don’t own houses.

#31 Tony on 10.03.17 at 6:50 pm

Re: #12 Mike in Cowtown on 10.03.17 at 5:59 pm

100 days should coincide with interest rates in Canada starting to fall again after a very short period of flat lining. I believe falling interest rates in Canada will bring more buyers back into the housing market as the stress test has virtually no affect on the speculators who pay all cash for everything. Expect the Bank of Canada rate to fall to one half a percent by the end of next year.

Rates in 2018 should be 1% higher. — Garth

#32 Doug t on 10.03.17 at 6:54 pm

I listened to a panel of the top climate experts in the world on the radio today and perhaps we don’t have to worry about retiring with enough money – they basically said we are doomed in 10 years continuing the way we are because nobody is actually doing anything that will change the outcome of disaster that we are heading toward.

Spend it now folks
RATM

#33 Screwed Canadian Millenial on 10.03.17 at 6:55 pm

There are PhDs driving TTC buses and doctors driving taxi cabs all over Garth. What did you expect? The labour market is a disaster. Of course you received a ton of qualified applicants. This country wants its people indebted, desperate and willing to work for peanuts.

I’m sure I would have won had I applied, but who wants to work for a mean boomer who hates Screwed Canadian Millenials..

#34 tccontrarian on 10.03.17 at 6:57 pm

“…the bank regulator, OSFI, is on a different path – scolding the big lenders for handing out cash too leniently and warning its stress test is nigh.” -GT
—————————————————————–
“handing out cash” is not the same (to me) as “issuing debt”;
just as ‘fiat’ currency-notes are not the same as ‘money’ or… ultimately, gold!

Being in the field of finance, Garth, I’d expect you to adhere to a higher standard and acknowledge these differences.

TCC

You actually sent time typing that. Amazing. — Garth

#35 FOUR FINGERS WATSON on 10.03.17 at 6:57 pm

Easy financing for new arrivals, no capital gains tax…..the world will beat a path to our doors ! Pump that bubble, we are all gonna be bazillionaires !

#36 dakkie on 10.03.17 at 7:02 pm

Guess Where the Biggest Housing Bubble in the World is in 2017! Hint: Not in Asia

http://investmentwatchblog.com/guess-where-the-biggest-housing-bubble-in-the-world-is-in-2017-hint-not-in-asia/

#37 kommykim on 10.03.17 at 7:03 pm

RE: Even a Dyson can’t do that.

Actually all vacuum cleaners suck AND blow equally. Otherwise they would implode or explode eventually.

What a blog. — Garth

#38 Burnaby Boy on 10.03.17 at 7:03 pm

Selling houses to immigrants is a great idea.

“Take care to sell your horse before he dies. The art of life is passing losses on.” – Robert Frost

#39 MSM-Free Zone on 10.03.17 at 7:08 pm

“…..Top bank cop Jeremy Rudin came out swinging Tuesday saying his agency will publish its new draconian regs by the end of October…….”
____________________________________

“draconian”: brutal, cruel, heartless, oppressive, painful, ruthless, vicious…

If stricter OSFI mortgage regs are being floated to prevent dreamy-eyed, financially illiterate speckers and morons from bringing further harm to themselves, I fail to see the connection.

#40 TurnerNation on 10.03.17 at 7:13 pm

To my point…haven’t read the book but it sure sounds scary – and this was before Internet and Big Data and A.I. which now is running the show:

https://www.amazon.ca/Mighty-Wurlitzer-How-Played-America/dp/067403256X/

#41 TurnerNation on 10.03.17 at 7:20 pm

And what of the “N. Korea” threat even this blog mentioned? A madman at the ready. Now nothing.
They’ve moved on. It made the Prez look good, sold a few fighter jet contracts I bet. How the game is played.
In a few months they’ll roll out the “Middle east peace” process sham – it’s been only since 1948. I know right.

#42 John on 10.03.17 at 7:24 pm

“If you renew with the same lender, have missed no payments, still have a job and the bank doesn’t order an appraisal, you’re good. The renewal should be automatic”

Ok, this makes sense. A while back you told me renewals would be included as well. Didn’t make sense if your making your payments and using the same lender.

#43 JustMe on 10.03.17 at 7:24 pm

Romania

Own outright 95.5 %
Own with mortgage 1.0 %
Rent at market price on private rental market 1.0 %
Rent at reduced/subsidised price 0.9 %
Other, unknown 2.0 %

http://www.oecd.org/social/affordable-housing-database.htm

#44 FOUR FINGERS WATSON on 10.03.17 at 7:27 pm

Rates in 2018 should be 1% higher. — Garth

That would make it harder for the newly arrived to buy a house Garth. Not fair. Not gonna happen.

#45 Ian on 10.03.17 at 7:27 pm

Why is OSFI taking so long? How many months does it take to design a +2% stress test? A dog could do it in five minutes.

This is really worrying me. This should be in place already.

#46 mortgageman on 10.03.17 at 7:27 pm

Hey screwed canadian millenial, I do a bunch of business with hard working successful millenials

want me to introduce you to them so you can see how success is done?

You maybe need to soar with the eagles instead of hanging out with turkeys

can do you a lot of good

you get one shot at this life, why not make the most of it?

if you keep on blaming others for your lack of success it is not going to help you get ahead

#47 Stone on 10.03.17 at 7:28 pm

#32 Screwed Canadian Millenial on 10.03.17 at 6:55 pm
There are PhDs driving TTC buses and doctors driving taxi cabs all over Garth. What did you expect? The labour market is a disaster. Of course you received a ton of qualified applicants. This country wants its people indebted, desperate and willing to work for peanuts.

I’m sure I would have won had I applied, but who wants to work for a mean boomer who hates Screwed Canadian Millenials..

—–

So…you got a reject letter. It’s ok cubby. You needed social skills to apply. Unfortunately, that disqualified you. So screwed. Or did you send your mother to do the interview for you. LOL

I know that was mean and I’ll probably burn in hell for that but it was worth it.

#48 overthehill on 10.03.17 at 7:39 pm

https://beta.theglobeandmail.com/globe-investor/for-the-wealthy-debate-over-renting-instead-of-owning-takes-on-heft/article36462170/
finally …the G&M seems to get it!
Thanks, Garth!

#49 Capt. Serious on 10.03.17 at 7:39 pm

I’m not sure I understand why the OFSI is going with current rate +2% for the stress test. Seems what they really want is a floor, something like 5% that people need to qualify at if the prime is below that level. Enjoy the lower payments, but ensure people could pay more. I’m not sure they’re going to like the outcome of this model if (perish the thought) the prime rate reaches 7%. Once rates normalize, there is equal chance for rates to rise or fall, and it doesn’t make sense to artificially restrict the market. Take out the risk of ultra low rate lending (would have been better if implemented 5 years ago), but don’t disrupt the whole lending mechanism. I suppose they can back off this +2% stress test at some point, and it’s probably what they have in mind, but it would nice to hear them say that.

#50 crowdedelevatorfartz on 10.03.17 at 7:42 pm

Geez,
The Politically Correct Liberals are pulling out all the stops to not get re-elected.

House Horny Greaterfools will be scrambling to renew in a few years as Banks loan money to immigrants and entrepreneurs…….
How DOES one say “vultching” in Syrian?

#51 AGuyInVancouver on 10.03.17 at 7:43 pm

#21 Bob Dog on 10.03.17 at 6:39 pm
Isn’t CMHC run by a bunch of ex worthless parasite realtors?

If they are favouring newcomers, can I sue them for discrimination?
_ _ _
Exactly, how can it not be discriminatory to deny Canadians with years of tax returns and proof of income the same benefit extended to someone who just arrived here?

#52 isuckless on 10.03.17 at 7:44 pm

“Aren’t Romanians like gypsies ?”
This is insulting, like calling black people n$&&@“?

Oh and climate change: also insulting to intelligence

#53 crowdedelevatorfartz on 10.03.17 at 7:44 pm

@#37 Communist Kim
“Actually all vacuum cleaners suck AND blow equally. Otherwise they would implode or explode eventually.

What a blog. — Garth
+++++++

I hate to say it Garth but Kim Jung Il is right!.
Vacuums do suck and blow at the same time!

#54 Darryl on 10.03.17 at 7:45 pm

I’m sure I would have won had I applied, but who wants to work for a mean boomer who hates Screwed Canadian Millenials..
————————————————————
Which reminds me of a joke .
What’s the difference between SCM and a picnic table ?

The picnic table can support a family of four .

#55 mark wolovetz on 10.03.17 at 7:49 pm

Does anybody have a good link on where to access housing price rising or declines for specific markets in canada, lets face it most places wont suffer vancouver or toronto fate and some small cities will thrive? So what you say all.

#56 Garthjr on 10.03.17 at 7:50 pm

With cooling the Canadian real estate market, it’s always 1 step forward and 2 steps back.

#57 Linda on 10.03.17 at 7:53 pm

I’m not sure what to say to the news that CMHC is going to offer unverified coverage to anyone who is considered either an entrepreneur or a new/recent immigrant. I’m not unsympathetic to the desire to own a property – but I am less than thrilled at the possibility that CMHC is apparently going to become a sub-prime lender of choice with our tax payer dollars as the backstop should this gravy train derail.

Now, there may be some safeguards (other than our beleaguered tax dollars) to prevent such a disaster. If for instance CMHC only offered coverage if the entrepreneur/new immigrant had a 25% down payment then I’d be willing to back those folks, as they obviously have proven they were willing to put their personal financial future on the line.

#58 Smoking Man on 10.03.17 at 7:59 pm

#33 Screwed Canadian Millenial on 10.03.17 at 6:55 pm
There are PhDs driving TTC buses and doctors driving taxi cabs all over Garth. What did you expect? The labour market is a disaster. Of course you received a ton of qualified applicants. This country wants its people indebted, desperate and willing to work for peanuts.

I’m sure I would have won had I applied, but who wants to work for a mean boomer who hates Screwed Canadian Millenials..
…..

I think you’re like the typical millennial, everyone gets a trophy. Admit it, you are afraid of risk, the risk of rejection.

I wasn’t, I put in for it. I got my rejection letter.

Garth was a bit afraid I would burn down the building out of boredom. He’s right.

Plus I’m sure I would have had a problem with the dress code, I want to wear flip-flops year round. So it wasn’t a good match.

#59 JustMe on 10.03.17 at 8:01 pm

Sweden

The World Wealth Report by CapGemini has mapped the world’s high net worth individuals, or people with combined savings of at least a million U.S. dollars in securities, real estate, or cash (HNWIs).

In both Norway and Sweden, the number of HNWIs grew by 13% last year. The European average is 7.7%.

“What makes us different is that we [Swedes] become rich on real estate. Asia’s fortunes are mostly dependent on a higher share of entrepreneurs and companies that are being built,”

http://www.businessinsider.com/the-number-of-millionaires-in-sweden-and-norway-is-growing-fast-2017-10

#60 crowdedelevatorfartz on 10.03.17 at 8:03 pm

@#148 James

I believe that Smoking Man was attempting to say while rather intoxicated was.

Why do the main stream media make these “shooters” famous by publishing their names?

All these “lone gunman” atrocities seemed to be carried out by losers who crave attention….even in death.
Dont give it to them.
Dont say their names when reporting them.
Scatter their ashes out at sea to avoid any “monuments”.
Remove all records of them.
Period.

Mass murders of innocent people deserve much more than anonimity.
But ….if thats the only “punishment” that would sink into their tiny, fevered brains…..so be it.

#61 paul on 10.03.17 at 8:03 pm

44 FOUR FINGERS WATSON on 10.03.17 at 7:27 pm

Rates in 2018 should be 1% higher. — Garth

That would make it harder for the newly arrived to buy a house Garth. Not fair. Not gonna happen.
——————————————————————–
The newly arrived live at times with 4 families. Plus they pay their mortgage.

#62 Ronaldo on 10.03.17 at 8:03 pm

#4 HoweStreet.com on 10.03.17 at 5:36 pm

Ross Kay on HoweStreet.com Radio:
Trudeau Policies Making It Harder to Buy a Home?
Real Estate Industry Covering Up Their Miserable Failure Rate?

http://www.howestreet.com/2017/10/02/trudeau-policies-harder-to-buy-a-home/
—————————————————————–
Good talk by Ross Kay on the housing market. Pass it on.

#63 JustMe on 10.03.17 at 8:13 pm

#30 A123
Aren’t Romanians like gypsies ?
———
Can’t be.
Gypsies don’t own houses.

—————————————————————————-

Gypsies’ gaudy mansions built in Romania

http://www.dailymail.co.uk/news/article-1389282/Benefits-boulevard-Built-Romania–YOUR-money.html

#64 Ronaldo on 10.03.17 at 8:16 pm

#51 AGuyInVancouver

”Exactly, how can it not be discriminatory to deny Canadians with years of tax returns and proof of income the same benefit extended to someone who just arrived here?”
————————————————————–
I don’t think they will be doing them a favor. More like getting them into a trap like everyone else. Just more greater fools being led over the cliff.

#65 MM on 10.03.17 at 8:20 pm

#14 Aren’t Romanians like gypsies ?

And this is not a racist comment that needed deletion …

First post here from a millennial immigrant from Romania.

*No, they are not Randy. But like Canada they were giving out mortgages only with an ID combined with extensive building during communism we ended up with lots of shitty concrete buildings and a bubble crash. I vaguely remember as a kid during communism the skyline with the cranes looked like Toronto now, they were building the same type of apartment buildings.

With all honesty what I see now in Canada I saw 8 years ago in Romania and yes the housing market collapsed badly.

This article summaries what is going on now in Canada, just replace the words with something that makes sense for Canada:

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

Now as a Canadian and EU citizen I regret choosing Canada. In consequence I sent all my hard earned down-payment intended for a Canadian house back home and invested in a EU subsidized business, best decision ever, thanks to you Garth and this blog we planned the exit strategy really carefully and not purchased a house here.

#66 Asterix1 on 10.03.17 at 8:24 pm

RE bulls out in force tonight! They are truly worried but cant hide it well!

#67 FOUR FINGERS WATSON on 10.03.17 at 8:28 pm

#61 paul
——————————————————————–
The newly arrived live at times with 4 families. Plus they pay their mortgage.
………………………….

Copy that Paul. You gotta pay the mortgage to collect the tax free capital gains…….and keep the bubble inflated.

#68 Robert White on 10.03.17 at 8:30 pm

Only rich wealthy investment advisors can afford dog food & vet bills these days, Garth. Wise investors would always choose a cat over a dog when it comes to upkeep. Moreover, cats like ice cream too, eh. You could double sales at the store if you had the right disposition towards domestic pets here in Ontario, Garth. #Cat-Lives-Matter, BuckO!

;)

RW

#69 Matsebula on 10.03.17 at 8:36 pm

Did anyone else see the Dominion Lending Centre full-page ad in the Globe today? They sent an impact statement about the mortgage qualification changes to every MP, complaining of unequal access to housing and other very sad things. They also mentioned the 20% credit restriction that has been discussed here. People are starting to become awfully skittish.

#70 I thinks I know something on 10.03.17 at 8:37 pm

Here’s CMHC recognizing entrepreneurs (whom T2 apparently hates) often have wildly fluctuating cash flow and inherently unstable personal finances. So the rules will be altered to allow them to qualify for insured mortgages. Same with newcomers who may have no credit history and scant employment data. More accommodation for them.” – Garth

————————————————————

As I said yesterday, any policy changes purportedly aimed at controlling housing prices are just BS. The powers that be, just want to make it look like they’re taking a tough stance, but they certainly don’t want housing prices to actually go down.

My prediction is that in 10 years, GTA houses will cost more than they do today. Maybe a lot more.

#71 Nonplused on 10.03.17 at 8:37 pm

I don’t understand how making small business owners easier to qualify at the same time as jacking their taxes makes any sense. Oh well give Bombardier another billion and it will all work out.

#72 westcdn on 10.03.17 at 8:40 pm

I enjoy a challenge. It gets me to focus on solutions and better my life as it runs out. I can’t take me with me but I can still leave something. I lagged the market in September but it looks my income stocks are getting over interest rate increase threats as inflation remains low. Why? My theory is the velocity of money went into asset valuations and not consumption by mainstream.
Yellen wonders where inflation is and I can say you to look at assets. Well, income inflation has not kept up debt accumulations for the mainstream and that takes significant banker interest rate increases off the table. Governments don’t want the asset bubble to burst by making money expensive because debt deflation will follow and TPTB would demand a head. They do not want asset bubbles getting larger and they want to see money flow into productive activities rather than paper asset values. How does a house put food on the table for a country?

I am still sitting on my hands when it comes to going long (buying) on stocks. My confidence in markets and leadership is low. With the recent increase in interest rates, I am okay with buying down investment debt and creating dry powder. I checked my credit scores through freebees with Mogo Financial and my bank. 860 and 900 – pretty good for a joe. I read the business releases on the TSX website and saw nwh.un had announced a placement so I put in an “expression of interest” – I like the company.

The Monty Hall problem. https://priceonomics.com/the-time-everyone-corrected-the-worlds-smartest/ She took a lot of heat from male PhD’s who thought they were smarter. The key point – biases and egos.
My conclusion – keep an open mind as others have ideas that are better than yours.

Tom Petty – I will give ground but I will not back down.

#73 I thinks I know something on 10.03.17 at 8:40 pm

“If you’ve any doubt where this is headed, give it up. The next hammer’s about to fall on housing, whacking the self-employed plus old and new citizens equally. The universal stress test so many people in the industry fear is now just 100 days away.” – Garth

————————————————————

What about all the other previous “hammers” that were supposed to stop GTA RE in it’s tracks?

#74 Lost...but not leased on 10.03.17 at 8:44 pm

So…is the CMHC your friend…….or schadenfreunde?

Why the CMHC would liberalize lending at this point in economy is rather strange….is it to deflect attention or __??? __?

At the end of the day…methinks that the collective of oversite agencies have let the issue” suck and blow” far too long…and how the Dyson dust settles is anyone’s guess.

#75 Tbone on 10.03.17 at 8:50 pm

I did my own stress test when I bought my first house. I took on a payment at half of what I could afford . Had an open mortage so I could make double payments. I was debt free in 3 years.

#76 Game Over on 10.03.17 at 8:53 pm

Garth I love ya and this blog, but if this was a fight, it would probably have been stopped by now. The coming correction/melt argument is seriously down on points and at this point, a knock out is required! Will the OSFI stress test be it? Even though in the same breath they are basically saying lets start NINJA loans Canadian style? 8 years of this and the contrarians are dead wrong, myself included. Rope a dope only works when the opponent tires. So far, the housing market is like Drederick Tatum vs Homer..

Anyway, thanks for everything you do!

#77 april on 10.03.17 at 8:59 pm

#3 – That seems to make sense that people will try to beat the new rules which will continue to push up prices. The correction will have to be a very big one and long drawn out to make homes, even condos, affordable again.
Why wait 100 days? Why not now?????

#78 ANON on 10.03.17 at 9:03 pm

#65 MM on 10.03.17 at 8:20 pm
I vaguely remember as a kid during communism the skyline with the cranes looked like Toronto now, they were building the same type of apartment buildings.

Yup. People think here it’s gonna be different. And it is, the debt is orders of magnitude larger, and it is private, cannot be easily printed, has to be put on the public balance first. Oh, boy, they’re in for a surprise.

BTW, MM, you seem like a smart kid. Here’s what happened in Romania:
http://www.theoildrum.com/story/2006/7/9/134211/8155
http://www.theoildrum.com/node/8855
That oil production chart looks familiar? It’s textbook bubble chart. You can spot the depression and the ’89 revolt easily on it. Then the small kitty bounce with external credit.
You figure out the rest…

#79 Blacksheep on 10.03.17 at 9:04 pm

Honest, straight up question:

Who here, assumes ANY politico will intentionally trigger a significant housing correction, on their watch?

I don’t mean forced Interest rate moves via bonds or US pressure, I mean, intentional systemic actions taken by a governing body to cause a significant loss of equity (20%+) for the 76% of owners (voters) in our vast nation.

Just look At Horgan and the BC NDP.

He’s all balls, even cheats his way to power until he gets educated about the economic consequences for 3/4 of the voting public.

Then he sounds just like Christy Baby, with the “We can’t put home owners in a compromised position, by reducing their equity postions”

I figured this out about 3.5 years ago.

Lately, I have noticed a distinct shift in the force here at G.F. Some of you are becoming immune to the daily dose of kool aid / group think prevalent in any single sided / sourced debate.

I have said if for years now, align your investments with the wants of the system, as it gives you the best chance for $ success.

#80 april on 10.03.17 at 9:06 pm

Ross Kay keeps the best for his paying members. He won’t tell when or where to buy or where to avoid buying.

#81 For those about to flop... on 10.03.17 at 9:09 pm

howmuch?

I dunno , you will have to click on the link to find out…

M43BC

The Most (and Least) Valuable States in America

Everyone knows location is the most important part of real estate. You can’t change where your house is (all things being equal). You have to consider school districts, crime rates, commute times—the list goes on and on. It can be much simpler when you’re considering buying a home to compare apples to apples so you can see how the real estate market differs according to location. So we created a new visualization showing land and housing prices at a glance.”

https://howmuch.net/articles/most-and-least-valuable-states-of-usa

#82 home ownership worldwide on 10.03.17 at 9:13 pm

40% Of Millennials Own Their Own Home. The rate of global millennial homeownership is 40%, a little higher than I expected. Leading the pack are Chinese millennials, where 70% owned their home. That’s not a huge surprise since the country’s national average of homeownership is a whopping 90%.
Are Chinese people flippy???????

#83 For those about to flop... on 10.03.17 at 9:13 pm

It probably won’t help much ,but if someone sets up a go fund me page for MF to get his condo so he can get on with his life, I will chuck in 50 bucks.

Will probably drink 80 bucks worth of booze at the house warming party though…

M43BC

#84 Bob Dog on 10.03.17 at 9:15 pm

It’s so depressing to read about the origins of CMHC. After WWII Canadians took on risk so that war heros could buy a home and start a family. At the time no bankster would lend to people with no money to put down. Since then the dirty shister parasite realtors have distorted and transformed CMCH into a major liability that has become the exact opposite of what it was intended to be. Now Canadians take on risk so that anyone can buy a home here. I would need to learn German to properly express my contempt for what Canada has become. English and French just don’t sound foul enough.

I can only laugh at Canadian fools who serve and put their life on the line while their country is sold out from under them.

#85 Kia Canadian Moose on 10.03.17 at 9:24 pm

” and Kia drivers were discarded”

I drive a Kia! And love it. I should sue for discrimination by car brand Garth.

Oh right I didn’t apply for the job. Not with these nutballs on this blog.

No thanks. Oh and good evening from the Hinterland –

#86 Blacksheep on 10.03.17 at 9:31 pm

“This week, amid little fanfare, CMHC said it would soon loosen the restrictions on small business people and immigrants, since it’s unfair they have to prove income levels the way people with salaries or citizenship status do.”

“It discriminates against entrepreneurs, as well, because they can’t prove their income as well, so we’re looking at our own policies to try and make sure that there is more equity in our mortgage insurance programs.”
———————————-
I couldn’t make this shit up, pure comedic gold!

Like I said, don’t bet against the system.

#87 Smoking Man on 10.03.17 at 9:34 pm

Watching Bill Morneau in question period makes my skin crawl. Morneau Sheppel sells pension consulting, every time someone asks him about the dr tax the son of a bitch keeps calling small business owners wealthy.

I became self-employed in 1989, Highs and lows, even a bankruptcy. Back in the day, I was a young cowboy wearing flip-flops decide to cheat on my taxes.

Got nailed, CRA was merciless, did not give one shit I had 3 kids ages 8, 6 and 4. I learned my lesson the hard way, and never did it again.

In fact, in the archives, I’m on record saying we all should pay our taxes.

Now with this new Dr tax, it is confiscation of wealth, small business is at war with globalist big corp companies like RBC and Amazon that want to eliminate small business.

For any small business who are not planning how to get into full scall evade taxes schemes. You’re not going to survive. Min wage going up, after that, CPP that the employer pays is going through the roof.

T2 and Morneau are going to turn me into a criminal.
But what can they do, I gave my two companies to my family in the USA, I’ll run them for free, collect my Disability Pension, and when I need some loot, I’m sure Smoking Man fans out there will make donations to my best invoice website to my pay pal.

Grey area I’m sure.

Worse case scenario, minimum security prison, three meals a day. No worries, I can really concentrate on writing how mental liberals are.

#88 Ponnaps on 10.03.17 at 9:48 pm

Hi Garth,

Just received my weekly equity digest (from one of the Big 5s)and stunned to see 3 pages of coverage dedicated to extolling the virtues of investing in India centric instruments.

In all my years receiving this digest, it typically selects 5-6 equities/sectors and spends no more than 1-2 paragraphs analysing each. So 3 pages of India focus is unprecedented and frankly baffling to me.

Would you happen to know if something of interest brewing out there..
Is it time to go long and increase exposure to India among all the other EMs???

Cheers,
P

#89 Spectacle on 10.03.17 at 9:55 pm

Regarding ::

“#80 april on 10.03.17 at 9:06 pm
Ross Kay keeps the best for his paying members. He won’t tell when or where to buy or where to avoid buying.”

1) He won’t tell when to buy
= Best answer , Not Now!

or 2) He won’t tell you where to avoid buying.
= Best answer, not Canada, not now!

KaaPOW!!

#90 Smoking Man on 10.03.17 at 9:58 pm

The evolution of the Smoking Man.

My heart was broken watching all the victim stories of the Vegas shooter. Country music fans, who I have personally made fun of over the years. Going with my man Roger Waters.

Screw Roger Water. Burning all the Pink Floyd shit I have.

Going to get into country music now, did you see all the dudes at that concert protect their woman like human shields. Just like in the Titanic.

Sorry feminazis, men, and women are not equal.

Next step, got make an effort to find god, cause he is a country music fan, need a mentor.

#91 Crazy on 10.03.17 at 10:01 pm

DELETED

#92 Smoking Man on 10.03.17 at 10:11 pm

The Evolution of Risk.

Surgeons, a list of excuses when operating on liberals.

Opps.
Didn’t see that.
It was a complicated Surgery.
I had mini-stroke during the surgery.
It’s the anesthesiologist fault.
Long hours caught up to me.

#93 I am Romanian and Canadian on 10.03.17 at 10:29 pm

#14 Randy

“Aren’t Romanians like gipsies?”

I can imagine only a clueless, stupid redneck asking this question.

FYI Randy – gypsies – wikipedia:
Gypsies (or Gipsies), which some people consider pejorative due to its connotations of illegality and irregularity. …originated in Northern India and arrived in Mid-West Asia, and Europe around 1,000 years ago.
Romania‎: ‎620,000 ( 3% of population)
Italy‎: ‎120,000–180,000‎
France‎: ‎350,000–500,000‎
Spain: 1,500,000
Russia: 1,200,000
Etc.
Roma were slaves (until 1856) in Romania, then they were liberated.

Different from gypsies, the name of Romania comes from the Romanian Român, which is a derivative of the Latin adjective Romanus (Roman). Romanians speak a Romance language. Like French, Italian , Spanish.

This is how a Romanian looks like:
https://www.antena3.ro/show/tabloid/andreea-raicu-se-pregateste-sa-devina-mamica-409087.html
https://en.m.wikipedia.org/wiki/Nadia_Com%C4%83neci
https://en.m.wikipedia.org/wiki/Constantin_Br%C3%A2ncu%C8%99i

When Canada didn’t even exist as a word, Romanians were fighting to defend the Europe’s Eastern gates against the Turks, and building churches.
Romania is considered an IT hub in Europe and they say that the second language spoken at Microsoft after English, is Romanian.

Instead of farting these pejorative questions here Randy, it would take you less time to go to wikipedia and do a search. At least TRY to expand your mind a little bit.

#94 MF on 10.03.17 at 10:32 pm

Blacksheep on 10.03.17 at 9:04 pm

I agree and I too have learned that this place, and other blogs/forums, can be an echo chamber.

I should have listened to my gut and bought a condo in 2013 when I was seriously looking. The condos are more expensive now but I am worth more (due to saving and working hard and not investing) so I guess I am at the same level. Lesson learned.

Osfi is nothing but hot air and the CMHC and BoC are incompetent.

MF

#95 Smoking Man on 10.03.17 at 10:39 pm

#60 crowdedelevatorfartz on 10.03.17 at 8:03 pm
@#148 James

I believe that Smoking Man was attempting to say while rather intoxicated was.

Why do the main stream media make these “shooters” famous by publishing their names?

All these “lone gunman” atrocities seemed to be carried out by losers who crave attention….even in death.
Dont give it to them.
Dont say their names when reporting them.
Scatter their ashes out at sea to avoid any “monuments”.
Remove all records of them.
Period.

Mass murders of innocent people deserve much more than anonimity.
But ….if thats the only “punishment” that would sink into their tiny, fevered brains…..so be it.

Thanks, that was exactly what I was trying to say. Someone spiked my cool aid with Jack Danials

#96 Duke on 10.03.17 at 10:50 pm

#22 Rental property math on 10.03.17 at 6:40 pm

If anyone think house prices may go back to 2014 level, think again. It will actually go back to 2008 level. Homeowners with big mortgage and HELOC are doomed.

#97 Screwed Canadian Millenial on 10.03.17 at 10:54 pm

What a joke this country has become.

Mom warns of ‘exploitative’ labour practices after twin boys nearly stiffed on newspaper delivery wages
http://www.cbc.ca/news/canada/toronto/mom-warns-of-exploitative-labour-practices-after-twin-boys-nearly-stiffed-on-newspaper-delivery-wages-1.4316609

#98 Screwed Canadian Millenial on 10.03.17 at 11:03 pm

#58 Smoking Man on 10.03.17 at 7:59 pm

I think you’re like the typical millennial, everyone gets a trophy. Admit it, you are afraid of risk, the risk of rejection.

————–

Or maybe I just had no interest in the job. Being some financial vulture, raping and pillaging, pushing companies to ship jobs overseas, replace workers with TFWs, suppress the hell out of wages, lay off lifelong dedicated employees, all so the stock can go up a few points and the a$$holes at the top can take home big bonuses. Destroy families and lives all to serve the billionaire globalist elites that you proclaim to hate Smokey. F that. That world is not for me.

For the record I’m not speaking about Garth specifically, just that industry as a whole and what this world has become.

The hard working men and women at the bottom who actually enable the profits, can’t get a raise. That’ll ruin the economy. Even though it never does.

But the billionaire parasites at the top need MORE tax breaks. That’ll be good for the economy. Even though it never is.

Gimme a break. It’s all screwed up man.

#99 Screwed Canadian Millenial on 10.03.17 at 11:07 pm

#54 Darryl on 10.03.17 at 7:45 pm

The picnic table can support a family of four .

—————————

Nearly half of Canadians are living paycheque to paycheque — and that has big consequences for retirement security
http://business.financialpost.com/personal-finance/retirement/nearly-half-of-canadians-living-paycheque-to-paycheque-and-that-has-big-consequences-for-retirement-security

Over half of Canadians are $200 or less away from not being able to pay bills
https://globalnews.ca/news/3434447/over-half-of-canadians-are-200-or-less-away-from-not-being-able-to-pay-bills/

It’s just me though right Darryl? Apparently I’m better off than most Canadians. Not crazy in debt. But definitely not crazy enough to have kids. This is not the country to have and raise children. Even with those CCB handouts from the gubmint. Canada isn’t for Canadians.

#100 JustMe on 10.03.17 at 11:08 pm

#65 MM

With all honesty what I see now in Canada I saw 8 years ago in Romania and yes the housing market collapsed badly.

—————————————————————————–

Maybe the collapse had something to do with declining population.

https://www.populationpyramid.net/romania/2017/

#101 For those about to flop... on 10.03.17 at 11:17 pm

Ponnaps at 9:48 pm
Hi Garth,

Just received my weekly equity digest (from one of the Big 5s)and stunned to see 3 pages of coverage dedicated to extolling the virtues of investing in India centric instruments.

In all my years receiving this digest, it typically selects 5-6 equities/sectors and spends no more than 1-2 paragraphs analysing each. So 3 pages of India focus is unprecedented and frankly baffling to me.

Would you happen to know if something of interest brewing out there..
Is it time to go long and increase exposure to India among all the other EMs???

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

Hey Ponnaps, you might want to check this visualization out.

India is expected to lead the way with 7% annual growth over the next decade.

And it is predicted for the next decade I will still be on this blog annoying the crap out of Thor Turner…

M43BC

https://howmuch.net/articles/best-of-money-visualization-2016

#102 Happy Housing Crash Everyone! on 10.03.17 at 11:36 pm

You guys have to email MP , OSFI , T2 ans even CMHC. Let them know NINJA mortgages are unacceptable to the taxpayers. A mortgage is not right. Don’t just complain here email everyone. Keep the pressure up. You can see mortgage brokers and realtors aka the two biggest shysters in the world are financially suffering. The market has stalled and is falling. Keep the pressure on .

#103 Victor V on 10.03.17 at 11:43 pm

#90 Smoking Man on 10.03.17 at 9:58 pm
The evolution of the Smoking Man.

My heart was broken watching all the victim stories of the Vegas shooter. Country music fans, who I have personally made fun of over the years. Going with my man Roger Waters.

Screw Roger Water. Burning all the Pink Floyd shit I have.

Going to get into country music now, did you see all the dudes at that concert protect their woman like human shields. Just like in the Titanic.

Sorry feminazis, men, and women are not equal.

Next step, got make an effort to find god, cause he is a country music fan, need a mentor.

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

Dedicated to you Smokey: https://youtu.be/Jj4nJ1YEAp4

#104 g2thabla on 10.03.17 at 11:46 pm

Don’t they file income tax? Why can’t those numbers be used to verify income?

#105 Hmm on 10.03.17 at 11:50 pm

An interesting comment re interest rates and housing….

at still the same event, Blackstone Group CEO Steve Schwarzman noted that most interest-rate hikes have typically resulted in an uptick in home prices.
“Twenty-five out of 26 times when interest rates went up, home prices went up,” Schwarzman said.
If that is indeed the case, homebuilders may be better building more and aiming to make it up on margin. Even at the end of 2016, interest rates are expected to remain near record lows for the last half-century.

#106 Ponzius Pilatus on 10.04.17 at 12:00 am

#37 kommykim on 10.03.17 at 7:03 pm
RE: Even a Dyson can’t do that.

Actually all vacuum cleaners suck AND blow equally. Otherwise they would implode or explode eventually.

What a blog. — Garth
———-
Your blog, your rules.

#107 Ponzius Pilatus on 10.04.17 at 12:15 am

#93 I am Romanian and Canadian on 10.03.17 at 10:29 pm
#14 Randy

“Aren’t Romanians like gipsies?”

I can imagine only a clueless, stupid redneck asking this question.

FYI Randy – gypsies – wikipedia:
Gypsies (or Gipsies), which some people consider pejorative due to its connotations of illegality and irregularity. …originated in Northern India and arrived in Mid-West Asia, and Europe around 1,000 years ago.
Romania‎: ‎620,000 ( 3% of population)
Italy‎: ‎120,000–180,000‎
France‎: ‎350,000–500,000‎
Spain: 1,500,000
Russia: 1,200,000
Etc.
Roma were slaves (until 1856) in Romania, then they were liberated.

Different from gypsies, the name of Romania comes from the Romanian Român, which is a derivative of the Latin adjective Romanus (Roman). Romanians speak a Romance language. Like French, Italian , Spanish.

This is how a Romanian looks like:
https://www.antena3.ro/show/tabloid/andreea-raicu-se-pregateste-sa-devina-mamica-409087.html
https://en.m.wikipedia.org/wiki/Nadia_Com%C4%83neci
https://en.m.wikipedia.org/wiki/Constantin_Br%C3%A2ncu%C8%99i

When Canada didn’t even exist as a word, Romanians were fighting to defend the Europe’s Eastern gates against the Turks, and building churches.
Romania is considered an IT hub in Europe and they say that the second language spoken at Microsoft after English, is Romanian.

Instead of farting these pejorative questions here Randy, it would take you less time to go to wikipedia and do a search. At least TRY to expand your mind a little bit.
—————–
Thanks for educating myopic, ignorant Canadians, who thing there is no life outside of God’s country?
One ommision though:
There’s lots of Romas in Hungary, too.

#108 DON on 10.04.17 at 12:50 am

#19 Rainclouds on 10.03.17 at 6:28 pm

Just brilliant. Give the idiots and banks 2 months to keep inflating debt. Drive prices up another 10%.

If they want to stop morons from self immolating perhaps next Tuesday would make more sense……oh wait OSFI only cares about the banks.

Meanwhile in The corruption capital of Canada the NDP sits with their thumbs up their posteriors. Condos not included in the 15% foreign tax so guess where the money goes. Gonna be interesting when Condos pass houses in price………………

Eby and Horgan railing about RE malfeasence while lowly MLA’s in opposition, mute now, New boss same as the old boss.

Glad I didn’t vote for those hypocrites

Pathetic
****************
Hopefully you didn’t vote for the ones that made BC the Corruption Capital of the Western World.

#109 DON on 10.04.17 at 1:08 am

#71 Nonplused on 10.03.17 at 8:37 pm

I don’t understand how making small business owners easier to qualify at the same time as jacking their taxes makes any sense. Oh well give Bombardier another billion and it will all work out.
***************

Exactly cancel each other out to some degree. Besides Trudeau needs to shore up some votes and immigrants area great target – he looks life a Savior to some extent. Wouldn’t most business owners already have homes, no income verification happened before.

Think it through bulls.

#110 DON on 10.04.17 at 1:21 am

#79 Blacksheep on 10.03.17 at 9:04 pm

… Lately, I have noticed a distinct shift in the force here at G.F. Some of you are becoming immune to the daily dose of kool aid / group think prevalent in any single sided / sourced debate.

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

The distinct shift in the force is due to the realization that the slow melt is occurring.

Gone are the “Prices will rise forever” “Month over Month record sales”.

Now that all the housing stats look bad. Sentiment is changing. It simply became to expensive to own the average house in an average town, city or countryside for that matter. Things change in a sudden.

#111 DON on 10.04.17 at 1:33 am

#76 Game Over on 10.03.17 at 8:53 pm

Garth I love ya and this blog, but if this was a fight, it would probably have been stopped by now. The coming correction/melt argument is seriously down on points and at this point, a knock out is required! Will the OSFI stress test be it? Even though in the same breath they are basically saying lets start NINJA loans Canadian style? 8 years of this and the contrarians are dead wrong, myself included. Rope a dope only works when the opponent tires. So far, the housing market is like Drederick Tatum vs Homer..

Anyway, thanks for everything you do!
************************

I take it 8 years is a lifetime in your book. Mortgages last a lot longer in most cases. And the value of a house can go down. 8 years?? Seems like a long time but really isn’t. If you are flipping yes you can make money but how many people like moving.

Figger it out!

#112 M-cube on 10.04.17 at 1:41 am

Well fellow suckers…it’s over. This real estate madness is not in a bubble but a new normal. Modern immigrants worship real estate more than God.

Buy now or forever rent. I wish I were joking.

#113 M-cube on 10.04.17 at 1:57 am

BTW, in this CMHC vs OFSI policy tug-of-war, it’s the CMHC policy that wins. Even if the OFSI policy is implemented, the CMHC policy will only embolden those who are “self-employed” to falsify income sources.

It happens already and this CMHC policy will accelerate it. Mortgage brokers who understand the game will help clients achieve the right level of “paper income” to pass any OFSI stress test.

The only think that will pop this housing bubble is a direct hit of a North Korean nuke on Toronto, and even then I can see multi-dwelling ownership class viewing the whole disaster as an amazing buying opportunity. Lord help us.

#114 greenhahn on 10.04.17 at 1:59 am

Garth,

Can you post the cv and profile of the greenhorn, in case some of us bloggers aspire to the greatest fool handle.

#115 Kalergie on 10.04.17 at 2:35 am

The #1 google search word in Romanian is House. Crazy

#116 fishman on 10.04.17 at 2:57 am

All candidates meeting in Van to replace alderman Geoff Meggs. Geoff went on to chief of staff for Premier Horgan. Geoff is a Dipper fixer, smart ,savvy & real power behind the pretty face. B.C.’s version of Gerald Butts.
Looks like this is a one issue election, over 90% time spent on housing.
The one idea that garnered the most audience support was a policy dredged up from the most famous of long dead Vancouver aldermen, Harry Rankin.

He advocated a policy of expropriating developers land assemblies to build social housing. The updated version is to expropriate land along the Broadway corridor where a new rapid transit system will be built to UBC. The land then to be developed by the city as social housing.

Such overwhelming clapping & support. It wasn’t my place to spoil the crowd ecstasy over celebration of a final solution for Vancouver’s housing woes.. Only in the anonymity among Garth’s deplorable can we ask. Who gets to pick the people that get to live in these condos? Or as Stalin used to say ” Its not who votes that counts, its who that gets to count the votes.”

#117 AGuyInVancouver on 10.04.17 at 3:18 am

#69 Matsebula
Yup along with the full page ad from Oaken Financial aka Home Capital touting their GIC rates.

#118 Oft deleted much maligned stock.picker on 10.04.17 at 3:51 am

DELETED

#119 Howard on 10.04.17 at 3:54 am

#65 MM on 10.03.17 at 8:20 pm
#14 Aren’t Romanians like gypsies ?

And this is not a racist comment that needed deletion …

First post here from a millennial immigrant from Romania.

*No, they are not Randy. But like Canada they were giving out mortgages only with an ID combined with extensive building during communism we ended up with lots of shitty concrete buildings and a bubble crash. I vaguely remember as a kid during communism the skyline with the cranes looked like Toronto now, they were building the same type of apartment buildings.

With all honesty what I see now in Canada I saw 8 years ago in Romania and yes the housing market collapsed badly.

——————-

Romania has a shrinkage population and practically zero immigration. Canada….the opposite.

Agree with you re: “Gypsy” comment. A bit selective with the DELETEDs.

For those who aren’t aware, gypsy is a pejorative term to describe the Roma people (NOT Romanians, though there are indeed some Roma-Romanians).

#120 Rusty Nuts on 10.04.17 at 4:24 am

Paws up, those who remember 17+% mortgage rates.

A 2% stress test on today’s rates is peanuts in comparison to what history has shown is possible.

Physics dictate that a Dyson must be able to suck in order to blow. Hence, ya can’t blow if you don’t suck.

(Not all of us are here just for the dog porn, Garth)

#121 Reality 1 on 10.04.17 at 6:30 am

Facts:

The Bank of Japan buying up mass quantites of bonds and ETFs.

The Swiss National Bank is the 4th largest shareholder of Apple, plus another 100 odd Billion in foreign equities.

The ECB’s balance sheet is now larger than the Fed’s.

The Fed has 4.5 Trillion on its balance sheet.

Canada’s CMHC wants to expand its biz by throwing all caution to the wind for foreigners and entrepeneurs.

Residential RE is insanely priced in virtually every first world country.

Do you see a pattern here ?

Get the picture ?

They have MANUFACTURED WEALTH by dropping interest rates and loosening credit to absurd levels.

Now they are trying to PRESERVE THAT MANUFACTURED WEALTH.

Look for further absurdities as they try to make these INDUCED wealth gains stick.

The inaction of the NDP post election on the housing file ( a 180 degree turn from their election promises) is but a microcosm of what to expect.

This bear capitulates.

#122 Howard on 10.04.17 at 6:52 am

Hey what happened to my other comment? It was simply stating that entry-level or mid-level job ads receiving a tsunami of talented candidates is pretty much the norm in Canada. Very few Canadians under 40 can recall a time when it wasn’t like this.

Then just say it without denigrating others. — Garth

#123 Dharma Bum on 10.04.17 at 6:57 am

#33 Screwed Canadian Millennial

“This country wants its people indebted, desperate and willing to work for peanuts.”
——————————————————————–

SCM is actually correct this time (Yay!).

When I went on sabbatical one time back in 2011, the owner of the company said to me that he needs to be “more careful in the future and hire only desperate and indebted people”.

And that’s how our economy rolls along.

Debt.
Desperation.

http://tenfactorialrocks.com/debt-desperation/

#124 Dharma Bum on 10.04.17 at 7:07 am

#93 I am Romanian and Canadian

“This is how a Romanian looks like:”
——————————————————————-

How could you forget to include a link for the most famous Romanian in history?

http://s3-origin-images.politico.com/2012/05/120521_dracula_ap_328.jpg

#125 Howard on 10.04.17 at 7:09 am

Cat-owners are disproportionately female. The Human Rights Commission could nail you for systemic discrimination.

#126 Howard on 10.04.17 at 7:14 am

#58 Smoking Man on 10.03.17 at 7:59 pm
#33 Screwed Canadian Millenial on 10.03.17 at 6:55 pm
There are PhDs driving TTC buses and doctors driving taxi cabs all over Garth. What did you expect? The labour market is a disaster. Of course you received a ton of qualified applicants. This country wants its people indebted, desperate and willing to work for peanuts.

I’m sure I would have won had I applied, but who wants to work for a mean boomer who hates Screwed Canadian Millenials..
…..

I think you’re like the typical millennial, everyone gets a trophy. Admit it, you are afraid of risk, the risk of rejection.

I wasn’t, I put in for it. I got my rejection letter.

Garth was a bit afraid I would burn down the building out of boredom. He’s right.

Plus I’m sure I would have had a problem with the dress code, I want to wear flip-flops year round. So it wasn’t a good match.

——————

Smoking Man, whiny Millennials might demand trophies for nothing but Boomers are the ones who actually *received* those trophies for nothing. Including the really dumb ones, who get to preside over Millennials with twice their IQ.

#127 maxx on 10.04.17 at 7:23 am

“The pooch starts Monday.”

Lucky, lucky, lucky dawg!

#128 dave in kincardine on 10.04.17 at 7:37 am

I joined the self employed 24 years ago and bought a house three months later. I paid $185 000, and put $150 000 and had perfect credit and two of the three institutions turned me down. I had it paid off in 5 years. So I can see where they are going with this one. Having access to easy credit is a curse in my opinion unless it is for retirement, business building, home.

#129 MM on 10.04.17 at 7:57 am

#119 Howard
#100 Just Me

Population shrinkage, yes! Just one of the factors, replace that in Canada with people not buying just holding off or the market balancing where it reached the peak of flipping and everyone is happy with their new home. Any factor will bring the prices down. Yes immigration in Canada is a “thing” however, the population as a whole did not rise as expected, almost same amount is leaving, a balance, or even worse no natural increase:
http://www.statcan.gc.ca/pub/11-630-x/11-630-x2014001-eng.htm
This scares me a bit, it is about quality not quantity grown ups cannot be educated easily, be sure what you wish for. As a Romanian immigrant I was used and know how to give/take bribes to get things resolved you don’t want a majority like me :) in Canada and believe me when I’m telling you it easier here here than in Europe the laws are more permissive. I know a lot of immigrants defrauding the medical insurance in an organised manner for years. They learn from their mother land and apply it here. Not sure you guys realize how bad things can get with mature immigrants from poorer countries, the things they are used to and impossible to change for most of them, on the flip side they will buy houses from the money they make from insurance scams. I did not prepare for this when coming here, what I learned: humans are humans regardless of environment or location.

#130 james on 10.04.17 at 8:03 am

Such a tragedy in Vegas.
Peace to all those families.

#131 james on 10.04.17 at 8:13 am

Garth, I appreciate what you just did, editing my last comment.

But you also need to properly account for what can only be accurately described as the psychopathology of some of the comments here, by a few posters in particular.

Peace to the Vegas victims.

Your linking of a poster here with a murderer in Vegas was reprehensible. If this blog offends your sensibilities, you know what to do. — Garth

#132 james on 10.04.17 at 8:25 am

Your linking of a poster here with a murderer in Vegas was reprehensible. If this blog offends your sensibilities, you know what to do. — Garth

And yet anyone with even a year one understanding of psychology would understand the profound links between the thinking expressed by a poster here and the mindset of the lone wolf executioners that sadly abound in our world, this week in Vegas.

So you delete THOSE succinct and rational comments, that can be supported with abundant clinical research?

And yet, you routinely, DOZENS of times each week, permit comments that label feminists as “nazis”?

Nazis, Garth!

Is this blog stuck in 1984?

I loved the Eighties. Reagan and Thatcher. No Adele. — Garth

#133 crowdedelevatorfartz on 10.04.17 at 8:27 am

@#88 Ponnaps
“Would you happen to know if something of interest brewing out there…”
+++++

Would the “pro India investment” article be surrounded by advertisements promoting Indian companies and investment opportunities?
Paid propoganda?

#134 WowChow on 10.04.17 at 8:30 am

i trust you hired an amazonian goddess. we wont tell dorothy ;)

#135 Victor V on 10.04.17 at 8:39 am

Toronto home sales sink 35% while owners count on ‘uptick’

http://www.bnn.ca/toronto-home-sales-sink-35-while-owners-count-on-uptick-1.875077

#136 crowdedelevatorfartz on 10.04.17 at 8:43 am

Hmmmm.
Is TREB massaging the real estate numbers to stem the leaking information dike?

https://ca.reuters.com/article/domesticNews/idCAKCN1C91FI-OCADN

#137 Todd on 10.04.17 at 8:47 am

Can anyone explain to me why business reporter Mike Eppel is such a housing pumper? I just listened to him try to explain away the poor data from TREB this morning. Almost seems like his second job is a used house salesman, aka Realtor.

#138 westcdn on 10.04.17 at 8:52 am

I see ETF’s as being superior to mutual funds simply from a cost perspective. ETF’s passively use “indexes” so there is little cost of marketing. I don’t think there is an active mutual or hedge fund manager who is not also a salesman. There are good managers and worth the money for a while. However, mutual and hedge funds have a bad habit of concentrating on assets under management (AUM) and trapping capital.

ETF’s also pool various financial instruments and spread the risk. Their composition is more fixed because of the index they are based on and they are easily tradable much like stocks. However, they are sponsored by a fund of some sort. AUM is the driver and ETF’s die more frequently than mutual and hedge funds. No big deal as you will get the market value back.

It is interesting to who builds an “index”. There has been a proliferation of boutique ETF’s. Most won’t survive because of AUM which drives total management fees. After all, the sponsors are out to make a buck. It is surprising how easy it is to build an ETF if you have the money. What you need is an “expert” to recommend financial instruments to put into the index and that is negotiable between the sponsor and the expert. From what I see, most of the management expense ratio (MER) is paid to the expert. The expert makes recommendation to the composition of the index on God knows what reasons which the sponsor will try to follow.

I recommend people to stay away from boutique EFT’s. I say look at their composition and buy the individual ponies you see if you like the space. It is cheap to change your bet.

I was thinking about the Halloween income trust debacle I suffered. Only public income trusts were punished and the private ones seemed to be unaffected. It makes you wonder about the fairness motives of the TPTB (the powers to be).

I found this internet article that got me thinking about societies. https://qz.com/1090183/what-if-most-creative-breakthroughs-come-from-ordinary-people-not-geniuses/
The key point is collaboration to some degree. Everyone’s mileage will vary.

As a bonus, the latest musical video I like – ode to some millennial and disgust with the Vegas gutless wonder asshat. https://www.bing.com/videos/search?q=electric+love+song&view=detail&mid=0C55F009AAB6DFEBE4970C55F009AAB6DFEBE497&FORM=VIRE

I read somewhere that women find tats sexy – too bad for me.

#139 Victor V on 10.04.17 at 8:57 am

‘Changes are going to be required’ to tax proposals, Morneau says

http://www.bnn.ca/changes-are-going-to-be-required-to-tax-proposals-morneau-says-1.875032

“Changes are going to be required — as we move forward we will have more information on timing,” Morneau said in a brief interview after facing a barrage of pointed questions from senators over the tax proposals.

“We do need to make sure we take into account people’s points of view. That means reviewing what we’ve received, making sure we fully understand it and responding appropriately.”

Morneau also suggested that all three parts of the plan could see adjustments.

Does Bill read this pathetic blog? — Garth

#140 Smoking Man on 10.04.17 at 9:02 am

#132 james on 10.04.17 at 8:25 am
Your linking of a poster here with a murderer in Vegas was reprehensible. If this blog offends your sensibilities, you know what to do. — Garth

And yet anyone with even a year one understanding of psychology would understand the profound links between the thinking expressed by a poster here and the mindset of the lone wolf executioners that sadly abound in our world, this week in Vegas.

So you delete THOSE succinct and rational comments, that can be supported with abundant clinical research?

And yet, you routinely, DOZENS of times each week, permit comments that label feminists as “nazis”?

Nazis, Garth!

Is this blog stuck in 1984?

I loved the Eighties. Reagan and Thatcher. No Adele. — Garth
……………………

James, how dare-you attempt to make a connection like that. We all who you are talking about.

You are living proof that Liberalism is a horrible mental disorder. I found god recently so I’ll pray for you.

All the violence we see in Canada and The USA is initiated from the psychotic left. Antifa is a violent band of thugs and anarchists, who want to steal our wealth.

I like the 80’s as well, where Education meant, math English and science, not this basket case indoctrination into Global Communism.

I’m a proud Economic Nationalist Individual who does not need a sword, my flawed keyboard dismembers you weirdos one word at a time.

Now go run a warm bath of Diversity, Inclusion, Social Justice, soak in it till you feel better.

Let’s get back on topic. Whatever that is. — Garth

#141 Tbone on 10.04.17 at 9:05 am

Home sales down 35 % but prices are not free falling .
Buy real estate now , because you know… prices always go up.
This may be your last chance to get in while prices are stable.

We now return to regular programming. — Garth

#142 45north on 10.04.17 at 9:16 am

This week, amid little fanfare, CMHC said it would soon loosen the restrictions on small business people and immigrants, since it’s unfair they have to prove income levels the way people with salaries or citizenship status do. “Right now, under our mortgage insurance policies, you have to be able to document income to get mortgage insurance, to a level of specificity that discriminates against new Canadians, because they can’t do that,” says agency boss Evan Siddall.

I think this announcement is specifically aimed at this blog. To throw us off track. It reminds me of a course I took in the public service. There was a problem solving exercise. It was in a food-processing plant and the exercise was to find and the correct the problem. In the class, I was the first to find it. I put up my hand and explained the solution but the teacher did everything he could to throw me off track. He was genuinely displeased that I had found the answer. Evan Siddall’s announcement is meaningless by itself – he just wants to throw us off track.

#143 HaHaHa on 10.04.17 at 9:22 am

Smokey making sense??? Yup. SCM needs to quit whining. Young people, those under 30’s give or take need to listen to the elders. Does not mean you have to agree with all. Just shut up and grab a few pearls of wisdom. But please enough with the socialist crap. We have heard it over and over.

#144 jess on 10.04.17 at 9:28 am

SEC says “first ever cryptocurrency backed by real estate” is a fraud
Accuses REcoin’s founder of lying about initial coin offering
October 2, 2017
Ben Lane
https://www.housingwire.com/articles/41463-sec-says-first-ever-cryptocurrency-backed-by-real-estate-is-a-fraud

#145 45north on 10.04.17 at 9:44 am

The so-called Magnitsky Act, named after tax accountant Sergei Magnitsky, who was found dead in his Moscow prison cell after uncovering a $230-million corruption ring in 2008, will likely become law Wednesday.

http://nationalpost.com/opinion/john-ivison-canada-needs-to-stand-firm-and-pass-anti-corruption-legislation

Sergei Magnitsky. The man.

#146 jess on 10.04.17 at 9:53 am

http://www.cohousing.org/what_is_cohousing

How to build a better block: Jason Roberts at TEDxOU

#147 Noah Elwazani on 10.04.17 at 10:15 am

Rules should be the rules, the law of the land should be imposed on every body equally , without any exception
that is the only way we could pass this housing turbulence and scary debts level we are facing , and to avoid going into depression state .

#148 Smoking Man on 10.04.17 at 10:37 am

Toronto Will See 17,000 Pre-Construction Condos Go On Sale Over The Next 2 Months.

https://betterdwelling.com/city/toronto/toronto-will-see-17000-pre-construction-condos-go-sale-next-2-months/?utm_medium=pushnotification

Is that back to normal enough Gartho.

#149 Howard on 10.04.17 at 10:44 am

Conference Board of Canada out with a report/recommendation this week that will fix slumping house sales. Buy buy buy.

#150 ponnaps on 10.04.17 at 10:44 am

@133 crowdedelevator :

———–
Would the “pro India investment” article be surrounded by advertisements promoting Indian companies and investment opportunities?
Paid propoganda?

————————————-

It was an investor digest as stated. Pdf document by equity analysts. Didn’t have ads or promotions.

@ #101 For those about to flop…

.. thanks for the link

#151 Renter's Revenge! on 10.04.17 at 10:46 am

#138 westcdn on 10.04.17 at 8:52 am

It makes you wonder about the fairness motives of the TPTB (the powers to be).

=======

Thank you for spelling out what TPTB stands for. I always thought it meant “Toilet Paper Tube Barons”

#152 isuckless on 10.04.17 at 10:49 am

I loved the Eighties. Reagan and Thatcher. No Adele. — Garth

I would add no Drake too ;)

M59ON

#153 Feedback for Randy on 10.04.17 at 10:56 am

Randy, you epitomise the ignorance of the average Canadian. Imagine our surprise, when full cohorts of educated immigrants from Eastern Europe were lured here in the 90s against their best interests by slimy immigration agents from Canadian Embassies and consulates..for milk and honey. We left our old countries without the most technically educated generation in history that could have contributed back home to GDP growth :-)

What they didn’t tell us is that here, the milk was spoiled and the honey was stolen..LOL. Essentially a scam, need to look only at the average cell phone plans of the big three (B, R, T) compared to EU to realise what a scam this place has become..

Some of us hit it big if we bought the houses in late 90s, but for the late comers or the ones stupid enough to trade up and not get out in time it’s going to be a disaster.

When someone thinks: what are these immigrants going to do if they get shafted, I know many of them…let me tell you, most of them have a Plan B, and that involves shafting Canada, which shafted them in the first place..Think, most still have dual citizenship… You max out your all the CCs, your Helocs and get the f…k out of here, never to come back, unless you stayed over 20yrs and want that shit pension.

Canada has become a place where you emigrate from and not one where you immigrate to, and you know who’s leaving, the immigrant’s children: no opportunities, house prices are sky-high, and you need to only glance at Turdeau, Moroneau, and Poloz to realise there’s nothing in store for them here.

That’s why all the governments are desperate for fresh immigrant blood, level of education doesn’t matter, they bring them from all the hell holes in Africa, Asia with no credentials and hope they will integrate (buy a house)..LOL. As for Europeans coming here, that’s done it’s 5% of what it was in the 90s…we learn fast (20 years)…

As for the fact that calling a Roma a GIPSY is not Politically Correct, I am puking if I here more about PCs, I am fed-up with PC for the rest of my life.

“The Romani are widely known among English-speaking people by the exonym Gypsies (or Gipsies), which SOME people consider pejorative due to its connotations of illegality and irregularity”.

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

I will call a GYPSY a GYPSY because wikipedia says only some people consider it like that, why would I be offended if someone called me Romanian.

The offence that I take, is that they call themselves ROMANI which to me sounds awfully close to ROMANIAN, and then people like you think that we are one and the same.

P.S. Garth, nothing I said is anti any minority group, please let this post be read, and educate yourself.

#154 saskatoon on 10.04.17 at 11:09 am

#132 james

feminists aren’t nazis.

neo-feminists are nazis.

#155 Ace Goodheart on 10.04.17 at 11:15 am

So the Donald shows up in Puerto Rico and asks to meet with the President. He is told that the President of Puerto Rico is Donald Trump.

He is quite surprised. “That’s amazing” he says. “That he has the same name as me”. “I can’t wait to meet him”.

#156 Stan Brooks on 10.04.17 at 11:23 am

Does Bill read this pathetic blog? — Garth

————————–

Bill is instructed by his bosses at the BIS on how to act, he feels protected from the public, this is why he is so arrogant.

In a way this is what we really deserve, him and T2 who can not say a single simple statement without a dozen of Ah, Uh, Oh.

Pathetic that people like these can abuse government power for their own political agendas.

It stinks, but hey, suck it up and move on.

#157 Keith in Rio on 10.04.17 at 11:31 am

Does the new hire know that they are getting paid in Alpo ?

#158 Ian on 10.04.17 at 11:47 am

“My Millennial Life”, new documentary playing at Carlton Cinema:

http://povmagazine.com/articles/view/review-my-millennial-life

SCM can go and give us a critique of it.

#159 IHCTD9 on 10.04.17 at 11:59 am

#176 bdwy sktrn on 10.03.17 at 3:26 pm
#152 IHCTD9 on 10.03.17 at 1:14 pm
…. buy a Grizzly 700, you’ve got it made in the shade; work on staying healthy.

——————–
i was hoping you wouldn’t mention beloved toys today.

my ‘grizzly 700’ was a xr650l. mountains and city. ultra-useful and too much fun. (also free instant parking downtown)
some low-life renter took it off the street last night. (they left a ducati sitting next to it)
my baby is gone :(
damn renters!
___________________________________________

Sorry to hear about your loss – the XR’s are legendary bikes. I looked at a TRX700XX quad a while back – nice machine, and the engine was basically an XR650 engine with a bit more displacement. I have read that the old 700XX’s will eat a Raptor 700R in a drag race – I happen to also own an Raptor 700R, and faster than that thing is pretty impressive. The XR must have been a real torquey beast!

#160 Ace Goodheart on 10.04.17 at 12:35 pm

RE: “Days ago I shamelessly exploited this blog to try and recruit a pneumatic, dog-friendly, clever employee for my financial business. And while some might have expected a crop of deplorable, blinky-eyed, mouldy, renting, basement-dwelling candidates to emerge”

“renting”?

What exactly does that mean?

#161 The Limited Sage on 10.04.17 at 12:38 pm

I puked in my mouth when I read the headline. Then I really puked when I saw who wrote it…

This proposed mortgage rule will make home ownership harder for careful savers: http://business.financialpost.com/opinion/this-proposed-mortgage-rule-makes-home-ownership-harder-for-careful-savers

#162 Hamilton on 10.04.17 at 12:42 pm

Hi Garth,

From the toronto sun today,

Love how they try to make it look like housing is ok.

TORONTO — Home sales in the Greater Toronto Area fell 35 per cent in September compared with the same month last year, although the average selling price rose.

The Toronto Real Estate Board said Wednesday sales of all major types of residential property fell, but the biggest move was a 40.4 per cent drop in sales of detached homes.

The average selling price for all types of property sold in September climbed 2.6 per cent from a year ago, rising to $775,546.

The average price was also up 5.9 per cent from $732,039 in August — the first month-over-month increase since April, when the average hit a record high of $918,285.

“With more balanced market conditions, the pace of year-over-year price growth was more moderate in September compared to a year ago,” said Jason Mercer, the board’s director of market analysis.

He added there was an exception in the condominium apartment market segment, where average and benchmark sales prices were up by more than 20 per cent compared to last year.

The Toronto-area sales and price report comes a day after the Real Estate Board of Greater Vancouver reported strong demand for condos and townhouses in September.

The number of new listings in the Toronto on the Multiple Listing Service increased to 16,469 in September, up 9.4 per cent from a year earlier, and the number of active listings increased by 69 per cent from last year to 19,021.

“The improvement in listings in September compared to a year earlier suggests that home owners are anticipating an uptick in sales activity as we move through the fall,” board president Tim Syrianos said in a statement.

A spike in Toronto-area home prices early this year resulted in the provincial government’s imposition of a number of measures to cool the overheated market after a shortage of detached home listings helped push up prices.

There have also been a number of warnings about the economic risk to Canada posed by high consumer debt, mostly due to mortgages.

The Toronto board said high-priced detached homes accounted for a smaller share of sales than in September 2016 The region’s average price for that category was flat at $1,015,067.

Meanwhile the average price for condos was up 23.2 per cent to $520,411 and the average price for semi-detached houses was up 7.4 per cent at $752,379.

David Paddon, The Canadian Press

#163 Angela on 10.04.17 at 12:56 pm

Congratulations on the new hire!

#164 Stan Brooks on 10.04.17 at 1:20 pm

#153 Feedback for Randy on 10.04.17 at 10:56 am

Interesting view.
What else do you think is needed in order to attract relatively good quality immigrants, besides:
– particle board houses/glass condos that cost 25 times you gross annual salary.
– delicious GMO food.
– great weather.
– great leaders and freedom, where else can you get such transgender equality and freedom of expression?
Or Minister of fairness and such charismatic pot smoking PM?

So you do not think that the approach of over-loaning and indebting people then working them to death to pay the debt is a good idea?

Tricking you to get a risky loan (CMHC) while taxing you more so you can not pay it?

I think it is pure genius.

#165 Screwed Canadian Millenial on 10.04.17 at 1:24 pm

#158 Ian on 10.04.17 at 11:47 am

It’s amazing how little boomers care about the economy, labour and housing market that they royally screwed up. To say nothing of the planet.

You really are the worst generation ever.

#166 TurnerNation on 10.04.17 at 1:26 pm

Out of the frying pan and into the pyre.

HHC.

https://www.reddit.com/r/toronto/comments/747r05/mattamy_home_drop_presale_by_200k_flippers_bought/

#167 cto on 10.04.17 at 2:10 pm

#121 Reality 1

“They have MANUFACTURED WEALTH by dropping interest rates and loosening credit to absurd levels.
Now they are trying to PRESERVE THAT MANUFACTURED WEALTH.”

That’s exactly what I fear that they are doing and will stop at nothing to accomplish this. All counties the same, and as soon as they notice that their golden goes is in trouble, they will come out with every trick in the book to preserve it. Real estate is their golden goose and preserving the peoples finances who are in debt is their plan.
Garth,…did you ever get the feeling that all levels of government are essentially doing everything for the last 15 years to prop up housing… This has made you consistently wrong for a decade now. Not saying your logic or prudent behavior is incorrect, just the Government policy is rewarding the reckless.

#168 Doctors without Ethics on 10.04.17 at 2:26 pm

#92 Smoking Man on 10.03.17 at 10:11 pm

The Evolution of Risk.

Surgeons, a list of excuses when operating on liberals.

Opps.
Didn’t see that.
It was a complicated Surgery.
I had mini-stroke during the surgery.
It’s the anesthesiologist fault.
Long hours caught up to me.
………………………………………………………….
Is that what transpired to your malaise prone intellect when you were on the table last year? So why did you come to see a doctor in Emerg anyway? Why did you not just Google your infirmity you old fart?

#169 14% on 10.04.17 at 2:45 pm

Some people hit the jackpot.

Imagine an investment that does +14% every year, for 43 years.

That would make your $65,400 into a cool $1.8M.

https://torontolife.com/real-estate/couldnt-believe-house-worth-million-sold-nearly-two/

Adjusted for inflation the return is 3.6% – or about half what equities have delivered. Check it out yourself here. Math is hard, isn’t it? — Garth

#170 Blacksheep on 10.04.17 at 2:51 pm

Don # 110,

“#79 Blacksheep on 10.03.17 at 9:04 pm”

…” Lately, I have noticed a distinct shift in the force here at G.F. Some of you are becoming immune to the daily dose of kool aid / group think prevalent in any single sided / sourced debate.”

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

“The distinct shift in the force is due to the realization that the slow melt is occurring. Gone are the “Prices will rise forever” “Month over Month record sales”.
Now that all the housing stats look bad. Sentiment is changing.”
——————————————–
Game over # 76,

“The coming correction/melt argument is seriously down on points and at this point, a knock out is required! Will the OSFI stress test be it? Even though in the same breath they are basically saying lets start NINJA loans Canadian style? 8 years of this and the contrarians are dead wrong, myself included.”
——————————————-
There you go. Game Over’s comment is exactly what I’m pointing out.

I’ve noticed this type of frustration driven “I give up” commenting, getting more and more frequent here.
I did a quick ANTI vs PRO, R.E. posting count for yesterdays comment section on G.F.

Pretty much dead even.

“Prices will rise forever”

This is a pro RE flipper / realtor driven falsehood as prices don’t need to rise forever for the party that just wants to buy a home and live in it, as the home likely won’t maintain a constant or always increasing price point. Over the long term though, inflation does its thing.

Sample:

I bought a house in 1996 for 216K. Over the next few years its value dipped below 200K, but I just kept paying the mortgage. Circa 2008 I sold the same home for 440K.

How is this possible? To start with the FED/BoC targets 2% annual inflation.

Then Canada opens its doors to a global market and guess what happens? You can throw your fundamentals based on income, (4X) out the window as the equation no longer applies.

Central banks have been pumping liquidity (ZIRP) into global markets for almost 10 years now, is anybody surprised RE in certain desired locations world wide, has gone ballistic with trillions of $’s sloshing around the planet?

It is in Justin Trudeau ‘s and John Horgan’s best interest to slow (stall?) rapid RE price escalation.

But don’t kid your self, if anyone thinks these two want to see their constituency lose equity in what is likely the largest $ investment they will ever make, your dreaming.

Like I keep repeating, don’t fight the system, go with the flow, and yes, 8 years is too long to wait, while life passes you by….

#171 Balmuto on 10.04.17 at 2:58 pm

http://business.financialpost.com/real-estate/toronto-home-prices-rebound-sharply-in-september-but-sales-still-slumping

Toronto home prices resume their upward trajectory:

“The board said its sale price was up 2.6 per cent from a year ago but the MLS Home Price Index composite benchmark rose 12.2 per cent on a year-over-year basis.

“A key reason for the difference in annual growth rates between the average price and the MLS HPI composite is the fact that detached homes – the most expensive market segment on average – accounted for a smaller share of overall transactions this year compared to last,” the board said.”

So in other words, when you adjust for the sales mix the increase in Toronto home prices is even greater.

Where’s Mark?

#172 Manitoba Whale on 10.04.17 at 3:01 pm

#93 I am Romanian and Canadian on 10.03.17 at 10:29 pm
*****

Thanks for your thoughtful and passionate response.

#173 Overheardyou on 10.04.17 at 3:01 pm

#32 Screwed Canadian Millenial on 10.03.17 at 6:55 pm
There are PhDs driving TTC buses and doctors driving taxi cabs all over Garth. What did you expect? The labour market is a disaster. Of course you received a ton of qualified applicants. This country wants its people indebted, desperate and willing to work for peanuts.

I’m sure I would have won had I applied, but who wants to work for a mean boomer who hates Screwed Canadian Millenials..

Speak for yourself. You’re only indebted if you choose to be. I am a millenial too and I don’t in any way feel screwed until T2 and Wynne came into power. I went to Post secondary, worked summer jobs to pay for school. Zero Debt. Saved for the last 8 years and invested. Made good money on self taught investing. Didn’t anyone tell you, you need to work hard in life if you want good things?

I’ve only been following this blog for two weeks and all you do is complain. Grow up.

#174 TnT on 10.04.17 at 3:08 pm

#153 Feedback for Randy on 10.04.17 at 10:56 am

That’s why all the governments are desperate for fresh immigrant blood, level of education doesn’t matter, they bring them from all the hell holes in Africa, Asia with no credentials and hope they will integrate (buy a house)..LOL. As for Europeans coming here, that’s done it’s 5% of what it was in the 90s…we learn fast (20 years)…

P.S. Garth, nothing I said is anti any minority group, please let this post be read, and educate yourself.

Ignorant comment.

Very productive families with aspirations of achieving high education and a very strong entrepreneurial sense of work ethics from the very 2 continents you disparage.

Comedy Gold!

#175 Stan Brooks on 10.04.17 at 3:31 pm

#174 TnT on 10.04.17 at 3:08 pm
#153 Feedback for Randy on 10.04.17 at 10:56 am

That’s why all the governments are desperate for fresh immigrant blood, level of education doesn’t matter, they bring them from all the hell holes in Africa, Asia with no credentials and hope they will integrate (buy a house)..LOL. As for Europeans coming here, that’s done it’s 5% of what it was in the 90s…we learn fast (20 years)…

P.S. Garth, nothing I said is anti any minority group, please let this post be read, and educate yourself.

Ignorant comment.

Very productive families with aspirations of achieving high education and a very strong entrepreneurial sense of work ethics from the very 2 continents you disparage.

Comedy Gold!

————————

You must be joking. Or just plain clueless.

The list of top talent from around the world that is coming to Canada is … well, blank.

They all go to Silicon Valley or Boston, even New York.
Even Singapore is far more attractive.

You must be reading liberal propaganda/on their ‘superclusters’ which is laughable.
Any rudimentary attempt for data analytics is presented as AI – Artificial Intelligence.
Laughable, plain laughable and pathetic.

#176 Stone on 10.04.17 at 3:45 pm

#126 Howard on 10.04.17 at 7:14 am
#58 Smoking Man on 10.03.17 at 7:59 pm
#33 Screwed Canadian Millenial on 10.03.17 at 6:55 pm
There are PhDs driving TTC buses and doctors driving taxi cabs all over Garth. What did you expect? The labour market is a disaster. Of course you received a ton of qualified applicants. This country wants its people indebted, desperate and willing to work for peanuts.

I’m sure I would have won had I applied, but who wants to work for a mean boomer who hates Screwed Canadian Millenials..
…..

I think you’re like the typical millennial, everyone gets a trophy. Admit it, you are afraid of risk, the risk of rejection.

I wasn’t, I put in for it. I got my rejection letter.

Garth was a bit afraid I would burn down the building out of boredom. He’s right.

Plus I’m sure I would have had a problem with the dress code, I want to wear flip-flops year round. So it wasn’t a good match.

——————

Smoking Man, whiny Millennials might demand trophies for nothing but Boomers are the ones who actually *received* those trophies for nothing. Including the really dumb ones, who get to preside over Millennials with twice their IQ.

——-

Who’s actually the dumb one? The dumb boss or the dumb person going to work for the dumb boss? Twice the IQ? If that was the case, the Millenials would be the boss, not the employee. Please don’t actually believe that schooling = education and smarts. If you do, you might need to drop that IQ you so highly praise a little lower. Maybe a lot lower. A little more. And anyways, everyone knows IQ scores are worthless and subjective. Only dumb ones believe they have value. Just like trophies and gold stars. LOL

#177 Ian on 10.04.17 at 3:52 pm

#161 The Limited Sage

There goes Hudak and his ‘expand supply’ nonsense.

Is this what happens after politics? You become a highly paid shill in the private sector?

#178 jess on 10.04.17 at 4:01 pm

The Latest: Trump says US must ‘wipe out’ Puerto Rico debt
President Donald Trump’s budget chief said not to take the president’s suggestion that Puerto Rico’s debt would be “wiped out” literally, as the territory’s bonds plunged to a record low on Wednesday.
Published on Jun 17, 2016
w.bloomberg.com/news/articles/2017-10-04/trump-suggests-puerto-rico-s-debt-may-need-to-be-wiped-out
http://caribbeanbusiness.com/the-latest-trump-says-us-must-wipe-out-puerto-rico-debt/
Mulvaney walks back Trump’s comments on wiping out Puerto Rico debt
——————————————————————————————————————————–
COFINA bonds
For years, the identity of the owner of one of the largest holdings of Puerto Rican debts has been a mystery.
https://theintercept.com/2017/10/03/we-can-finally-identify-one-of-the-largest-holders-of-puerto-rican-debt/

It’s important to take a step back and ask why COFINA was created in the first place.In 2006, the island was in desperate need of money, but unable to issue debt because it had run up against its constitutional debt limit. In desperation, the island’s government created a sales tax revenue bond as a way for Puerto Rico to issue new bonds that would not count against the 15 percent limit on “full faith and credit” debt. While lawmakers must address this crisis, they must do it in a manner that will put Puerto Rico in a position to succeed over the long term — not by voiding contracts and bending to the will of COFINA creditors.

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

COFINA deal is huge blow to dwindling appeal of Puerto Rico’s bonds

By Iván Rivera Published May 02, 2016 Fox New

COFINA was a creation of Wall Street financial whizzes Goldman Sachs and counts large billion dollars hedge funds like Goldentree Asset Management, Whitebox Advisers and Baupost Group as bondholders.

It’s important to take a step back and ask why COFINA was created in the first place.

In 2006, the island was in desperate need of money, but unable to issue debt because it had run up against its constitutional debt limit. In desperation, the island’s government created a sales tax revenue bond as a way for Puerto Rico to issue new bonds that would not count against the 15 percent limit on “full faith and credit” debt.

Fast forward to late April 2016.
http://www.foxnews.com/opinion/2016/05/02/opinion-cofina-deal-is-huge-blow-to-dwindling-attractiveness-puerto-ricos-bonds.html

#179 Blacksheep on 10.04.17 at 4:11 pm

Screwed # 165,

“It’s amazing how little boomers care about the economy, labour and housing market that they royally screwed up. To say nothing of the planet.”

“You really are the worst generation ever.”
—————————————————–
This is a massive simplification and distraction away from the very real problems that western countries face.

Ray Dalio does a decent job explaining recessions and the 70 years debt super cycle that Central banks have been fighting since the GFC.

https://www.youtube.com/watch?v=PHe0bXAIuk0

The Capitalism model is quickly failing for much of society. Technological change and automation are wreaking havoc with almost all western economies.

Free trade with 3 billon people willing to work for pennies an hour was just a stupid bloody plan allowed via politicos and corp. lobbyist.

Blaming a single generation is naive, as we are all subject to the environment we are raised in. Gen X, Millennials or the G.I. Gen. would have behaved the same way, under the same circumstances.

Boomers where just fortunate to be born in a time of great industrial expansion, that’s all.

Check out Strauss–Howe’s: “The Fourth Turning” for Generational insights and some guidance as to where we may be going.

https://en.wikipedia.org/wiki/Strauss%E2%80%93Howe_generational_theory

#180 NoName on 10.04.17 at 4:15 pm

Two words for Romanians, bring more palincă and more mici.

#181 Dan.t on 10.04.17 at 4:20 pm

#79 Blacksheep
——–

perfect analysis.

No one gov party will touch real estate. I guess that is why the OSFI is forced to do something.

NDP won based on telling voters that housing affordability is nr.1 agenda…I would argue they won based solely on that reason, that and C. Clark was seen as a bowing to big business (especially RE cartel) and selling out BC to foreign buyers, and turning blind eye to lots of suspect stuff, among other things.

opps, you mean 75% of voters own homes and like 30% (guessing only) own multiple homes and if do anything that causes 75% of our voters to suffer, we are gone for another 16 years….NOT A CHANCE….says NDP!

Let someone else get the blame.

Christy Clark “well we can’t mess with peoples equity, here is 37k free money to buy a new condo with..hope that works.”

NDP Horgan “we can’t mess with peoples equity”.

No wonder no one trusts politicians. Look at T2 now.

No one will touch this gas bag. Just enact more measures to feed the beast. No one wants be seen as the catalyst. Let it implode on it’s own.

#182 Old Ron the Realtor on 10.04.17 at 4:27 pm

We have a 5.9% INCREASE IN PRICES TREB-SEPTEMBER. I have to admit I m surprised.

Dead cat bounce, or the shortest Bear market in history ?

On a 35% sales slump? I wouldn’t get too excited. — Garth

#183 Randy Feedback - Part Deux on 10.04.17 at 4:32 pm

#164 – Stan

Stan,

Take a look at this report…and tell me what it means. It’s from 2 years ago, still Harper…

http://business.financialpost.com/news/economy/job-quality-in-canada-dives-to-record-low-and-theres-no-relief-in-sight-cibc-report-says

If the quality of jobs declines over time, it’s clear that Canada doesn’t need to attract researchers from CERN – Switzerland but more Tim Horton temp slaves, meat packers, etc…. (10-15 $/hr) hence the downhill path for the quality of immigrants over the last 10 years with a clear acceleration noticed by me and many others after 2008. See “Idiocracy” and you will get what I mean…

What I think it’s diabolical, it’s the persistence of all the Canadian governments to offer these unfortunate souls, debt of up to 200K-300K for these salaries (the condo crowd), practically killing them over a 20-25 years span while pretending to help them get a place/advance in life :-). BTW all of this is performed when we will automate 95% of these jobs in the next 10 years…LOL.

And now the truly diabolical part, it is my personal opinion that T2-Turdeau was selected (i.e. not elected) precisely for his quality of being perceived by this target group and their children as being “their friend”.

So, he delivered :-), by targeting the small business sector, which is a big threat to the big corporate sector that’s behind this initiative…QED

FINAL GOAL: maintain the status quo and the machine that produces profit for the 100 Families (i.e. the warlords) or so that run Canada in good order and well oiled. Think Thompson, Asper, Saputo, etc..

For # 174 – TnT

I shouldn’t even dignify you with a response. Typical SJW and self-righteous type..

Anyway here goes:

http://www.cbc.ca/news/canada/toronto/lottery-scam-victims-finally-get-12-5m-1.979496

http://www.palmbeachpost.com/news/crime–law/lottery-suspends-sales-more-stores-after-post-investigation/eO7jBvC9OMEXkH1hBo0tLK/

http://cnews.canoe.com/CNEWS/Canada/2010/09/28/15512861.html

There is a large percentage of people from these areas, especially Asia, that have no work ethic, they come here to “start a business”, namely try to game the system. Ex: Convenience stores owners, florists, etc. to name just a few.. Now I’m not saying that all do that, only it’s a disproportionate percentage when you compare with the crowd that came from East Europe in the 90s to work in the land of “milk and honey”, with their high end jobs outsourced to India and China after 2008. As I said before, it’s spoiled milk and stolen honey…

In conclusion, Canada a whole is a pale image compared to what it was 20-25 years ago, and my crystal ball sees a lot of trouble ahead, nationalism rearing its ugly head being one of them…as it’s a response from biology.

#184 jess on 10.04.17 at 4:33 pm

The European Union has ordered Amazon to pay €250 million ($293 million) after finding that it benefited from an illegal tax arrangement with Luxembourg.
“Luxembourg gave illegal tax benefits to Amazon. As a result, almost three quarters of Amazon’s profits [in Europe] were not taxed,” said Margrethe Vestager, Europe’s top official in charge of competition policy.

======
Tax Gap
It is already a crime to evade tax, or deliberately help another person to do so, but on behalf of the majority of taxpayers who pay what is due, the UK government is now taking an even firmer stance on corporate fraud in a move designed to drive a change in corporate culture…. the Criminal Finances Act 2017 introduces two new criminal offences – one applying to the evasion of UK taxes and one applying to the evasion of foreign taxes…The offences hold corporations and partnerships criminally liable when they fail to prevent their employees, agents, or others who provide services on their behalf from criminally facilitating tax evasion. This is a significant change from existing law under which they can only be found liable for criminally facilitating tax evasion if the most senior members of the organisation – typically the board of directors – are aware of the facilitation.

https://www.gov.uk/government/news/stop-facilitating-tax-evasion-or-face-criminal-prosecution-hmrc-tells-corporations
September 2017
Understanding evasion by Small and Mid-Sized Businesses
HM Revenue and Customs Research Report 433
Justifications/rationalisations for evasion behaviours
Although all businesses interviewed were engaging in deliberate tax evasion, they did not always view themselves as ‘real’ evaders
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/647346/Understanding_evasion_by_Small_and_Mid-Sized_Businesses.pdf

http://economia.icaew.com/en/news/september-2017/hmrc-prosecutes-1135-tax-offenders

#185 TnT on 10.04.17 at 5:07 pm

For # 174 – TnT

Wow.. pure racist ignorant comment.

Anyone can generalize about any immigrant group.

I.E. Europeans came here and invented “gaming the system” with Mafias….

#186 TnT on 10.04.17 at 5:09 pm

#183 Randy Feedback – Part Deux on 10.04.17 at 4:32 pm

Would help to reference my reply. See above.

#187 Reality 1 on 10.04.17 at 5:10 pm

to # 167 cto

So, you get what I am saying.

I have watched for almost 10 years now as law after law is amended, ignored or newly implemented to force a “recovery” from the 2008 debacle.

To wit;

1) Trillions printed – none going to Main Street – all to Wall Street

2) US debt from 7.5 Trillion to 18.7 Trillion under Obama, yet not one quarter of 3 % growth (never happened under ANY US president in history)

3) GM and Chrysler bankruptcies bail outs – Chrysler deal REWRITES 226 years of US contract debt law by stiffing the bond holders (Cerberus et al)

4) FASB 157 – allowing financial institutions to recognize mtge assets at book value NOT marked to market to preserve solvency in the very companies that caused the 2008 GFC

5) residential RE downpayments in ALL 1st world countries slashed to anywhere from 0 % to 5 %

6) government backed / insured mtges for the buyers at all time high valuations

7) Not one person goes to jail for MBS /CDO fraud or the proximate cause of the 2008 GFC

8) AIG bailed out and pays counterparties 100 cents on the dollar in a forced liquidation (13 Billion to Goldman Sachs alone)

9) Timothy Geithner of the NY Fed meeting and informing all participant banks of the plans a week before enacting them – and f’ing ADMITS it to the press !

10) After lobbying by the RE cartel, lifting the anti money laundering safeguards if US residential property was purchased, resultin in a foreign influx of capital to try and re-inflate the bubble that had just burst.

11) Central banks (Swiss, Israeli, Japanese) buying 100’s of Billions in equities , let alone Trillions in bonds

These are off the top of my head – I could give you a books worth !

I just kept saying to myself, naw they can’t go any further, nah somebody is going to say something, they are abrogating decades, if not centuries of commercial, civil and criminal law !

Boy, was I naive !!!!!!!

These were acts of desperation and no INFORMED and SANE person could say otherwise.

I watched Cerberus slink away from their lawsuit against the US government after their Chrysler bond collateral ( $ 1.8 Billion I recall) was appropriated by the government and new equity given to the very UAW that sunk the company ! Approved by the US bankruptcy court !!! NEVER happened in 226 years of contract law.

So, yeah, I am pretty well informed, even communicating with Nouriel Roubini when he was at NYU about the MBS / CDO debacle BEFORE it happened.

Doesn’t matter – US market 4 X what it was at the lows – overvaluation by ANY HISTORICAL METRIC on EVERY asset class. Leverage up the wazoo.

We are not in Kansas any more Dorothy and have not been for almost a decade.

So, after all this shit going down, do you really think TPTB are gonna let this whole stinking house of cards fall, let alone the lynch pin of real estate ?

Not an f’ing chance.

Long everything until it blows up (or the TPTB see an advantage to letting it implode).

#188 Renter's Revenge! on 10.04.17 at 5:24 pm

#160 Ace Goodheart on 10.04.17 at 12:35 pm

“renting”?

What exactly does that mean?

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

I’ll take the bait on this one.

I think it means to pay someone for the use of something!

https://www.google.ca/search?q=renting+definition&oq=renting+def&gs_l=psy-ab.3.0.0l3j0i22i30k1l7.17257.17801.0.18990.4.4.0.0.0.0.115.415.2j2.4.0….0…1.1.64.psy-ab..0.4.411…0i67k1.0.sUELDvo5-Ig

Where are you going with this? Let me guess, even if you own property, you’re still effectively renting because you pay property taxes to a city or municipal government?

#189 TnT on 10.04.17 at 5:28 pm

#183 Randy Feedback – Part Deux on 10.04.17 at 4:32 pm

There is a large percentage of people from these areas, especially Asia, that have no work ethic,

In conclusion, Canada a whole is a pale image compared to what it was 20-25 years ago, and my crystal ball sees a lot of trouble ahead, nationalism rearing its ugly head being one of them…as it’s a response from biology.

****

Hard to keep up with such blatant ignorance.

You disparage Asians and you are concerned about trouble from nationalism.

Like I said, Comedy Gold!

Keep posting to show us more examples of your IQ, I love it!

#190 Blacksheep on 10.04.17 at 5:42 pm

Reality 1 # 187,

“Doesn’t matter – US market 4 X what it was at the lows – overvaluation by ANY HISTORICAL METRIC on EVERY asset class. Leverage up the wazoo.

We are not in Kansas any more Dorothy and have not been for almost a decade.

So, after all this shit going down, do you really think TPTB are gonna let this whole stinking house of cards fall, let alone the lynch pin of real estate ?

Not an f’ing chance.

Long everything until it blows up (or the TPTB see an advantage to letting it implode).
——————————–
Preach it brother.

Can’t say it enough.

Don’t fight the system.

#191 Blacksheep on 10.04.17 at 5:52 pm

Reality 1,

Your rant reminded me of this cult classic:

‘”I’ve got one that can see”

https://www.youtube.com/watch?v=qM6r8KapWIk

#192 Reality 1 on 10.04.17 at 5:53 pm

to Screwed Canadian Millennial

As much as I detest whining, I am in agreement (tangentially) with you about the “boomer” generation of which I am a tail end late one.

It galls me that the generation who protested all the evils of US imperialism / capitalism / war mongering / dark dealings / etc. of their then government are now far more corrupt / complicit / evil / war mongering / exploitive / etc. than their forbears ever were or thought to be.

Creating more war / destruction / interference in other sovereign nations / death, etc. while wildly spending their inherited systems’ wealth into insolvency with their grandiose and ultimately unrealistic ideas of what a higher standard of living should entail.

For that part I am embarrassed as a human and as part of the boomer cohort. Further embarrassment for their wanton consumerism and what they taught their kids – money and fame are everything!

F’ing sad !

One day, many years ago I was driving along in Toronto and it dawned on me and shook me to my core.

There I was, driving a new 911, a Rolex on my wrist, wearing an Armani suit, Prada shoes going home to an attractive girlfriend who was waiting in a luxurious condo in the “right” building, about to go out for an expensive dinner ( everything paid for, no debt and a fairly heavy bank account) and not entirely happy.

I was a F’ing CLICHE – I bought into all this shit and really it didn’t make me happy. It just made me want more and more and more – cause that is what I was “programmed to do” by my generation.

At that point I changed my life and moved out of the country to start a new life in an old land. Toronto still gives me the creeps because it still represents that hollow existence to me. I cannot see why anyone would CHOOSE to live there and immerse themselves in that consumeristic rat trap.

Well, aside from that being therapeutic, I sincerely hope that you come to terms with your life and the context in which you have to / choose to live it.

Might I suggest you read some history and realize that many generations in many countries have had it WAY worse than you ever will.

Cold comfort I know, but do something positive about your situation. That could be getting yourself into awesome physical shape, finding the best / hottest partner that you can or working your career choice like nobody else.

Be your own hero in whatever way you envision that to be and you may be surprised at what comes along.

Be brave and painfully honest to yourself and others. Work at it relentlessly until you look in the mirror one day and proclaim – with irrefutable cause – I am my own hero !

Think this is corny, old fashioned , not realistic?
I have met top athletes, actors , biz people , etc. and they all do / did this in one form or another to make it. Talent / aptitude obviously helps.

Go get’em or somebody else will !
Why not you ?

#193 Randy Feedback - Part Deux on 10.04.17 at 5:59 pm

Wow.. pure racist ignorant comment.

Anyone can generalize about any immigrant group.

I.E. Europeans came here and invented “gaming the system” with Mafias….

————————————————————–//

OK…racist my a..s LOL. Take a dose of reality below.

You make me roll on the floor laughing, Italian and Russian mafias.

Let me show you a bit of “ethnic diversity” in the best place in the world, GTA. All children of nuclear scientists and doctors in their old countries, I have no doubt… :-)

http://ikimap.com/map/brampton-indian-gangs

https://thunderbirdrising.wordpress.com/2015/02/19/gangs-and-violent-youth-are-the-norm-in-brampton-ontario/

https://www.inbrampton.com/ten-brampton-residents-arrested-in-connection-with-massive-gang-crackdown

Sometimes there’s even a “culture clash”…LOL.

Mark my words, when the economy turns sours, this are the seeds of civil war..

http://www.torontosun.com/2012/01/12/street-gangs-targeting-hells-angels-police-chief

http://nationalpost.com/news/canada/hundreds-of-counter-protesters-swarm-far-right-la-meute-protest-in-quebec-city

And where will I be? Oooh, on the first plane to Europe, just need to choose the country carefully..LOL.

P.S. BTW all of this is happening because of T2, Harper, Chretien, Moroneau and the rest and their greed.

#194 jess on 10.04.17 at 6:10 pm

fake100’s

The New Hamburg TD Bank branch is warning local businesses to be on the lookout for counterfeit money after a high-quality fake turned up in New Hamburg this week.

#195 TnT on 10.04.17 at 6:18 pm

#193 Randy Feedback – Part Deux on 10.04.17 at 5:59 pm

I see your problem Randy.

You are educated by headline news.

Stop grouping humans and start seeing human individuals. This will help elevate your perspective on reality.

#196 Mr_Silbergleit on 10.04.17 at 11:06 pm

Does it hurt? Please submit your story. LOL

http://newruleshurt.ca/about/