Why is this man smiling?

flaherty112

News Bulletin

Federal deficit will hit record $50 billion plus

Source: The Canadian Press, May 26 2009

OTTAWA _ Finance Minister Jim Flaherty says the federal deficit will soar to a record $50 billion-plus this fiscal year.

That’s over $16 billion more than he forecast in January’s federal budget. In that budget, Ottawa estimated it would run deficits for five years and predicted a shortfall of $64 billion over the next two years. On Monday, Flaherty said the deep recession is wreaking havoc on the government treasury and will cause the deficit to balloon “substantially more” than projected.

He said the recession has hurt government revenues from personal and corporate taxes and raised spending requirements.

____________________________________________________________

Michael Wilson always kept an envelope in his suit jacket. And a gold pen. The finance minister of Canada would pull them out when he had an important point to make.

“Here,” he said, pushing the envelope my way as we sat in the coffee room beside national caucus one morning. “Look at this. It’s why we’re screwed.” On the paper was a big circle with a sizeable chunk scrawled out, and the number 32. The circle, he explained, was federal government expenditures, and the piece out of it represented interest payments on the debt. They amounted to 32 cents of every dollar the government spent.

“This is why we’re doing it.” Wilson said. “There is no other way out.”

That conversation took place almost 20 years ago. The federal deficit had just hit an unprecedented and shocking $40 billion. And Wilson had convinced the prime minister he had but one weapon capable of smashing a financial death spiral. The GST.

Fast forward to 2006, and the national sales tax is more than a dozen years old. Liberals decided to keep the hated tax when they formed government, and now the deficit is gone. In fact, budgets have been balanced for a few years – and now the incoming Conservative government will inherit a $15 billion surplus. Over the next two years, the GST rate will be dropped by almost a third.

Finally, a sunny May afternoon in 2009. The finance minister stands in front of reporters and says the government is about to run a deficit once again – a “substantially larger” bomb than the one forecast 100 days earlier. More, to be sure, than $40 billion.

Politics aside, this represents the most rapid and intense deterioration of national finances in the country’s history. The swing of more than $50 billion a year came partly through tax cuts some economists called reckless, partly because of big jumps in program spending and partly as a result of the global economic meltdown.

There will be plenty of blame to throw around, so let’s just look at the consequences.

* Interest rates will rise. Count on it. Deficit-plagued governments have to borrow heaps of cash to carry on. This money is typically raised on bond markets, where more competition for funds equals higher yields, resulting in costlier mortgages, bank loans and business borrowings.

* Taxes will increase. Annual deficits are added to the debt, on which interest has to be paid. As rates rise, so do debt payments – which is what caused Mike Wilson to see one third of government spending obliterated. The only ways out are big spending cuts (hard to do in a recession),or higher taxes for years to come.

* The economy will slow further. Higher rates and more taxes make the country less competitive – hardly what our decimated manufacturing sector needs. They’re also inflationary, bad news with oil prices starting to shoot skyward.

* Most real estate will stagnate. These factors all but guarantee a multi-year mess for housing. The only reasons we have a mini-boom in some markets now – cheap rates and green shoots – will be gone.

* The boomers are screwed. Just as the age wave is trying to unload its trophy real estate, you can expect a retirement crisis since most of these folks are house-rich and cash-poor. Even Ontario’s finance minister is warning of a “deep depression” in 10 to 15 years as millions of retirees just run out of cash. Sadly, this will happen when debt-laced governments are unable to offer income support, or even properly fund the health care system, soon to be overwhelmed.

Deficits are a tax on tomorrow, so if you think today sucks, just wait.

Of course, government over-spending will succeed in preventing a depression, a collapse in the financial system and social breakdown. But the price to pay is truly Faustian.

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110 comments ↓

#1 Finanzkrise on 05.25.09 at 11:13 pm

Great post, Garth

Can you elaborate as to why you reckon that government overspending now will likely prevent a depression? I have been pondering that very point – PREVENT(at the cost of stunting growth to a crawl for years) or POSTPONE (i.e. eventual disruption in the global bond markets as governments sink under the weight of their own debt?)

Thanks

#2 Madame Guillotime on 05.25.09 at 11:14 pm

Do not expect government to solve the problem.
It is the problem.

#3 tjmikey on 05.25.09 at 11:29 pm

Well Garth,

That was certainly doom and gloom.

I’ll have a Glenlivet on the rocks.

#4 deja.vu on 05.25.09 at 11:30 pm

off topic.

prime borrowers in trouble. the next wave of defaults coming to a theatre near you!

http://www.nytimes.com/2009/05/25/business/economy/25foreclose.html?em

#5 Eduardo on 05.25.09 at 11:46 pm

Garth: “Rising taxes will make us less competitive!!!”
JoeBlow: “Uhhh you just complained about cutting taxes.”
Garth: “Outrageous bailouts and spending were caused by the government”
JoeBlow: “Actually Garth, the Conservatives were forced into it by a trifecta of self-serving political parties banded together as one.”
Garth: “Interest rates will rise!!!”
JoeBlow: “Uhhh the overnight rate is 0.25%, it can’t go any lower so yeah… that’s kind of obvious”
Garth: “The Manufacturing sector is in trouble”
JoeBlow: “Uhhh, only Ontario is based entirely on the auto economy”

#6 Republic_of_Western_Canada on 05.25.09 at 11:49 pm

“Politics aside” – Yes, politics aside, but not before the emphasized reminder that the Lie-berals threatened to destroy our government just before Christmas unless it started spending like crazy to support a whole bunch of laid off fat-ass assembly-line workers in Ontario and just as many of Bay Street’s Goldman Sucks shylock buddies as well.

Interest rates should have risen a long time ago, but both Wilson and Obama bin Laden have been playing a game of chicken with Bill Gross’s minions and the Chinese for 18 months now.

I got paid over 20% interest for my money just before LaLonde’s NEP. No reason not to believe I’ll get 30% just before Wilson’s Armegeddon.

#7 Eduardo on 05.25.09 at 11:54 pm

At some point you should change the name of this blog from “Greater Fool” to “BabyBoomerOntarioAutoworkerSoonToBePoorPensionerLiberalBlog”

#8 ryan on 05.25.09 at 11:56 pm

I wish I had the option of taking my portion of the tough medicine now and avoiding the interest inflated portion I am going to get stuck with later. Anything to get re-electedf

#9 Ed on 05.26.09 at 12:56 am

Hey Garth, Awesome website – Just want your opinion (or anyone else) on want the banks might do next year concerning interest rate hikes. I prefer VRM however my wife wants the security of locked in mortgage

I have a $294,000 mortgage locked in at Scotiabank for 4.3% ending October 1, 2010 (the principle will be $281250 then). Other banks are offering cashback incentives for ones’ mortgage business: 2% cashback with a 3 year closed mortgage (or longer) of 3.3%. The cashback would be $294,000 x 2% = $5880. However I would have to pay a $3180 penalty to Scotiabank for breaking the mortgage. A $2700 profit for switching banks. My question to you (or anyone else) is that:

1 – Do you think banks will still have this incentive come October, 2010 when the Mortgage rates start rising? I do not have to pay the $3180 penalty after October 1, 2010 and I am hoping not to have to pay it.
2 – What rates do you think the banks will have (estimate of how much higher) after October 1, 2010?

3 – Come the summer of 2010 when interest rates hike, what advice can you give concerning VRM vs locked in?

Any information about any other Bank Programs and/or information would be greatly appreciated. I want to so that I use the banks to MY ADVANTAGE, not the other way around.

Ed – Vancouver BC

#10 MenWithHats on 05.26.09 at 1:04 am

Because he is a blithering idiot surrounded by morons .

#11 Da HK Kid on 05.26.09 at 1:13 am

Let’s hope we can keep the RE agents out of the rental scene as well. They made their bed along with the Investment Bankers who all have Engineering Degrees or BA’s and if they didn’t save any hay when making tons of it, tough luck kiddies!

LIFE LESSON!

#12 MenWithHats on 05.26.09 at 1:14 am

“Two things are infinite: the universe and human stupidity; and I’m not sure about the the universe.”

Albert Einstein

#13 . . . fried eggs and spam . . . on 05.26.09 at 1:23 am

“. . . the most rapid and intense deterioration of national finances in the country’s history. . . . through tax cuts [and yet] Taxes will increase. . . . Interest rates will rise. Count on it. . . . The boomers are screwed.”

So are CPP / OAS / GIS; ‘owzabout a large tax bite on RRIF’s, selling homes, health care, etc.?

Bankrupting the health care system is a neat way of moving to an American style of health care, where the rich can afford it, the middle-class (after losing homes, jobs and income) and poor are barely able to afford a bottle of Aspirin.

” . . .the most rapid and intense deterioration . . .” — I’ve said it a few times here — the karmic pace of time has greatly sped up, for reasons which are mostly unknown to most as they are too caught up in their own personal lives.

With the three shots of the flu garbage now required in the US, it may be close to time for plenty of us to move back to the other worlds again (the other side).

The NWO (Bilderberg Group) and others associated with them are getting what they want. At least they THINK they are!

Don’t count humanity out — there have been a few other occasions when things have looked bleak, yet despite ourselves, we’re still here!
——
A day or two ago, Obama told Americans “There isn’t any more money.” So take the heading from the lead-in to this report, apply it all across this continent and — BINGO!

To modify Garth’s headline, it should read: “Why are these men (Geithner and Flaherty) smiling?” Because the bailouts were never designed to end, that’s why!

More than that, we’re so broke we’re now full of emptiness, so keep those presses printing more and more worthless moolah! — http://tinyurl.com/pnxfkh
——
Y’all know how the US likes sticking its nose in everyone’s business, and when they get their fingers burnt, a convenient scapegoat is usually found somewhere. Scroll down for a map, plus China is hanging around.

Speaking of China, the second link is quite interesting. — http://yayacanada.blogspot.com/ /\ http://tinyurl.com/pgnfe7

#14 dd on 05.26.09 at 1:33 am

Smiling … Why? Nice pension and cherry picked job when he leaves office.

#15 Ed on 05.26.09 at 2:49 am

Hey Garth, Awesome website – Just want your opinion (or anyone else) on want the banks might do next year concerning interest rate hikes. I prefer VRM however my wife wants the security of locked in mortgage

I have a $294,000 mortgage locked in at Scotiabank for 4.3% ending October 1, 2010 (the principle will be $281250 then). Other banks are offering cashback incentives for ones’ mortgage business: 2% cashback with a 3 year closed mortgage (or longer) of 3.3%. The cashback would be $294,000 x 2% = $5880. However I would have to pay a $3180 penalty to Scotiabank for breaking the mortgage. A $2700 profit for switching banks. My question to you (or anyone else) is that:

1 – Do you think banks will still have this incentive come October, 2010 when the Mortgage rates start rising? I do not have to pay the $3180 penalty after October 1, 2010 and I am hoping not to have to pay it.
2 – What rates do you think the banks will have (estimate of how much higher) after October 1, 2010?

3 – Come the summer of 2010 when interest rates hike, what advice can you give concerning VRM vs locked in?

Any information about any other Bank Programs and/or information would be greatly appreciated. I want to so that I use the banks to MY ADVANTAGE, not the other way around.

Ed Vancouver

#16 Steve on 05.26.09 at 2:59 am

Garth, don’t forget to mention that the children of the boomers will be bailing them out too, when they run out of cash–after all boomers will be old, and as we already know, the old vote!

#17 wjp on 05.26.09 at 5:35 am

“WHY IS THIS MAN SMILING?”

Quite obvious, does a further downturn in the economy affect his pension? Does he have enough to invest in tax free investments? Will any of this impact on his standard of living? In his position, I would suggest we would all be smiling! Hope no one is thinking he might have the interest of the average run of the mill Canadian at heart.
Most politicians, of all stripes, are only interested in power, not people. Look at how much of the stimulus money announced in the Jaunary budget has hit the streets…that should speak volumes about the governments concern for the unemployed and the economy. Why just yesterday, they reannounced in Oshawa some money already promised in the January budget. For some reason, they just keep anouncing but nothing is happening. I have no problem with no bailouts but I do have one with withholding promised money from the unemployed…screw the corporations and support the poeple!
By the way, one has to smile when one is off the mark by a SUBSTANTIAL amount when it comes to predicting deficits. Does anyone think we are getting the truth from our elected officials?

#18 JO on 05.26.09 at 6:57 am

As far as I am concerned, the CONservatives are socialists…spend and spend under the most misguided and disastrous economic theories ever. You cannot solve an excessive debt and spending problem by spending more. The long term damage to the economy from future spending cuts and attempts to raise taxes because of all this debt (“economic stimulus ???)simply means future GDP is held down with structurally high unemployment and less prosperity for all. These nonsensical plans will simply extend the pain for all.

As for avoiding depression, not so sure about that yet. If anything, they are pushing it out to 2012-2015. That is much more likely. If we just step back and think about what morons these people are for planning to run multi year deficits, much of it spent on stupid, temporary projects, it is easy to get depressed. If anyone cared about the middle/working class, they would be holding massive taxpayer revolts right now. Multi year deficits are nothing but theft from savers and future taxpayers to help bailout the stupidity of 2001-2007.

JO

#19 Madame Guillotime on 05.26.09 at 7:28 am

I think we have more machinery of
government than is necessary, too
many parasites living
on the labour of the industrious.
Thomas Jefferson

#20 Rob in Onterrible on 05.26.09 at 7:34 am

@Ed, Tough to say what the interest rates will be in 18 months from now but interest rates will not jump up like a rocket. I believe that they will slowly increase 0.25% at a time just like they did on the way down. RE sales will be slow next October so there will likely be a lot of incentives from the banks, especially for first time buyers.

My guess for mortgage rates next October is 6-7% but maybe someone here has more insight. Personally, I think you should forget changing banks to get $2,700. You can save 10X more than that by increasing your mortgage payments to biweekly and paying a bit extra every time to lower the principle.

#21 to all please speak up on 05.26.09 at 7:38 am

Please all of you of this web site, do the easy thing:
1. google jim flagherty
2. send him an e-mail of strong disapproval for running the mother of all deficits.

When they fly a balloon, we must at least respond. Never been so easy.

If you want no deficit, say it to the man.

#22 Canned Goods and Buckshot on 05.26.09 at 7:39 am

dd

My only point is that nowadays, especially on this site, contra advice would be to buy a big house, invest in a hummer, and max out any leverage. I think were both on the same page.

#23 molson cdn on 05.26.09 at 7:50 am

do you need an affordable vacation?
heres the ultimate family vacation spot, especially in these times. Great opportunity to escape from noise of the city and get back balance into your soul!

http://www.somalicruises.com/

#24 Nostradamus jr. on 05.26.09 at 8:11 am

>Vancouver was picked as the best investment market in North America by the Washington-based Urban Land Institute last fall.<

http://www.theglobeandmail.com/report-on-business/vancouver-still-draws-the-deal-makers/article1152229/

…Once and for all, North Shore of Vancouver IS DIFFERENT!….(North Van & West Van)

…..Within a 5 or 10 minute drive, nowhere in any other North America city can you hike a river gorge(Capilano Fish Hatchery), climb a mountain (Grouse Grind), ski three different mountains(Cypress, Grouse & Mt Seymour), hike First Growth trails (Lighthouse Park, Stanley Park, Just to name two), Golf nearly year round..& the North Shore, hike two pet friendly trails a day for a month and not do the same one twice.

Nowhere.

…And to my friend who supposedly lived in Van for a couple of years here but had to move back to Montreal for “culture”………

Hogwash……Quebecois is not a culture…It is “Faux French”….”Snow Removal industry or Federal $$$ funneling are not cultural.

…and anyone can see Socialized European French Culture is also dying.

Thanks to its immigration policies…allowing uneducated foreign families who have an average of 8 kids, will sooner than later kill France…and other Euro’s, like UK and Spain too.

…Furthermore, France stealing other countries artifacts thru wars is not culture!

#25 Live Within Your Means on 05.26.09 at 8:25 am

Turning the Screws

http://thetyee.ca/Views/2008/03/04/Flanagan/

Its all part of a master plan. Why is any one surprised.

#26 John on 05.26.09 at 8:38 am

I don’t think the retirement crisis will cause a depression.
It will just mean the many boomers won’t retire at 65.

They will keep on working because they have to. That’s a pretty interesting scenario. All those old people still slogging away every day. How should we plan to deal with that?

#27 Jonathan on 05.26.09 at 8:53 am

Give me a break Garth, government spending has not stopped a depression..!

In the great depression, over 3,000 banks went bankrupt.. and yet the first couple years of the depression were moderate than this. It was not until the government started spending and involving itself in the free markets more that the depression accelerated.

I ask you all this.. did government involvement in 2001 stop the recession? US budget deficits soared in the 500 billion dollar range consistently for years after, the current account deficit remained at 800 billion per year, and the whole country became drunk on cheap credit.

The best thing the government could do is just keep out of the way.

#28 Signal Loss on 05.26.09 at 9:09 am

The recovery from the ‘recovery’ is going to be the real fight.

#29 bill on 05.26.09 at 9:20 am

So we’re going to be screwed for the next 3 to 5 years….. then there will be a Boomer led depression 5 years after that…. so there will be a window of opportunity in about 2014-2019…. and then you best retire with wacks of cash to a self-sufficient, heavily secured, tax-haven….. Why wait? Just get out now.

#30 Bill-Muskoka (NAM) on 05.26.09 at 9:22 am

Why is Dim Jim smiling? Because he is a Con Artist and a FOOL!

#31 john m on 05.26.09 at 9:26 am

Great post Garth..in my opinon the Harper-Flaherty incompetence was headed for disaster long before any acknowledgment of a recession.The Harper government’s wild vote buying spending spree’s and squandering of an inherited 15 billion surplus. Last election before they even recognized a recession they were already headed for debt,the surplus was gone. Now recession (depression ) has hit and is no excuse for their incompetence leading up to it. What i find really shocking is–we have a minority government,the people nor the opposition even know how far we are in the toilet nor are these facts open to the public—as with everything in the Harper government honesty and openness have been replaced with dishonesty,misleading statements and an uninformed population along for the ride. Is this democracy or dictatorship? Imagine if Harper and Flaherty controlled our banks and it was no longer necessary to disclose how much money we had in our accounts,any shortcomings would be replaced by loans and under pressure every few months vague statements would be issued— that is the case with our tax payments,expenditures and future commitments.

#32 smw on 05.26.09 at 9:44 am

#7 Eduardo

So your a housing bull and a CPC supporter? Your opinions all make since now, your following the Jimmy F and Stevie H book on economics. Just to note, its the same book Greenspan and Bernake have been reading out of.

Welcome to the new Communist Party of Canada, aka the CPC. So much for the term “tax and spend liberals”… Its not just the label for one party anymore.

Keynes economics at its best.

If the dollar keeps shooting any higher, we’ll be in the same boat as the American’s, no exports.

Election please, I gave Harper the selective conservative a chance, now I’ll give a real social conservative a chance, Iggy.

#33 smw on 05.26.09 at 9:50 am

Garth,

My main concern is just this:

The economy will slow further. Higher rates and more taxes make the country less competitive – hardly what our decimated manufacturing sector needs. They’re also inflationary, bad news with oil prices starting to shoot skyward.

We are less competitive(with less worldwide business) today then we were a year ago.

That para from you is the biggest problem we face, and the one the perma bulls don’t factor in.

Its going to make the recessions in the 80’s and the 90’s look like good times.

#34 Bill-Muskoka (NAM) on 05.26.09 at 10:01 am

OWWWWWWWWWWWWW!

So, all you ‘investors’ out there making gobs, and gobs of money. Read THIS!

Thousands of Canadians taxed on ‘phantom income’: Employees who lost on stock options face bankruptcy over huge tax bills

#35 Jason on 05.26.09 at 10:28 am

Vancouver_Renter

I’m very interested in joining your investment club. Any chance for a new member?

Please reply to: [email protected]

Everyone else….sorry for the spam. This shall be my third and hopefully final try at contact.

#36 Bill-Muskoka (NAM) on 05.26.09 at 10:28 am

Does anyone think we are getting the truth from our elected officials?

#17 wjp

ROFLMAO! When the moon turns chartreuse, whales fly, and they disbain all political parties…Then MAYBE?

#37 JOHN on 05.26.09 at 10:33 am

Hey Garth,

NOw that oil prices are going to be at $100 a barrel quiteb soon does that not bode well for Alberta’s economy because of oil companies reinvesting in projects once shelved??

#38 Just a Girl on 05.26.09 at 10:40 am

#3 tjmikey – LOL.

Make that two.

#39 Rhino on 05.26.09 at 11:00 am

#28 Nostradamus jr. on 05.26.09 at 8:11 am

(smile)

Struck a nerve… did I?

I did not mention Van is populated by creations like you, since your affliction is rather extraordinary, and I know lots of good folks out there, with open and non-bigoted minds.

Great place to go all “outdoorsey”, but that is not “culture”. Personally experienced everything you mentioned, and several you did not.

Have a nice day. Hope you eventually see the sun…

#40 Rhino on 05.26.09 at 11:06 am

A passing comment on GM workers’ “difficulties”…

Did anyone else catch the CBC interview of a 24 year assembly line veteran’s reaction to the wage roll backs and concessions voted on?

His comment (almost verbatim…)
“well, with $6-8000 reduction in wages and benefits, I guess we will not be going to Florida this year”.

Nice… consider the 7000 “union brothers” being laid-off. How about the rest of us struggling to pay the rent. Such HARDSHIP!

Seems long term union members still look after themselves first.

#41 wjp on 05.26.09 at 11:06 am

#37..John, it would if world demand was equal to the price but the oil expert from Oppenheimer in the U.S. says world demand is falling…and it was his suspicion those who pushed oil to $147 a barrel are back in the market and this will all end badly for those jumping on the oil band wagon…I am sure you could find that interview on the BNN website…so don’t fire up the engines quite yet just in case he is right!

#42 VOODOO on 05.26.09 at 11:10 am

Garth thought this could be a good picture to use too:

http://www.ingdirect.ca/en/aboutus/whoweare/whatwereupto/tfsa_card.html

Finance Minister Jim Flaherty (left) and National Revenue Minister Jean-Pierre Blackburn (right) accept a giant thank you card, signed by more than 2,000 Canadians, acknowledging the government’s introduction of the Tax-Free Savings Account. ING DIRECT Canada President and CEO Peter Aceto presents the card.

#43 Marc on 05.26.09 at 11:24 am

I am going to meet my Dad in Louire valley of France for a week of golf on Friday. I went to my local bank to try to convert Cdn.$ to Euros. I pay a premium as the bank will never charge market rate, always a little higher to buy, and a little lower to sell, fair enough. Now they charge a 5$ currency conversion fee. I told the manager to pound salt, and to either wave the fee, or I will convert elsewhere. They were going to charge $824CDN for 500 Euros +$5. Market rate would give me 500 Euros for just less then $790 Cdn, so I think any fee is excessive. Good thing my Dad can convert for me for market value. I would have paid the premium, but a fee ontop of a premium, they can find another fool.

#44 PTDBD on 05.26.09 at 11:24 am

just saying if…

If governments are creating money out of thin air,
if they don’t have to publish how much money they create, if they now can legally invest this money into the bond and preferred share market to “backstop” them,
if they can buy up their own currencies to prop them up when they come under pressure
if accounting rules can be changed to turn losses into profits…

then shouldn’t Canada get into the prestidigitizer paper printing biz toutedefcknsuite just to stay competitive?

Doesn’t it seem that we are participating in a liars poker game where the chips have long been replaced with match sticks and paper IOU’s? If so, let’s get our forestry workers back out there and create an infinity of match sticks and go “all in” with these bullsheize artists.

Unless of course, our forward-looking, prescient, ahead-of-the-curve, solid as the Canadian Shield finance gnomes really do want us to “become a second-tier socialistic country, boasting ever more loudly about its economy and social services to mask its second-rate status.” (Stephen Harper quote)
:-) moving forward :-)

#45 Kelly McMae on 05.26.09 at 11:30 am

He’s smiling cause he just finished soiling his adult undergarments and did so remarkably in-front of the camera’s watchful eye.

I’ll be happy when the Reformers are de-elected.

As for our troubled future. Live smaller and work under the table as much as you can.

#46 dd on 05.26.09 at 11:36 am

#22 Canned Goods and Buckshot

Yes … I should have said contra to what the guys wife wants and most of people buying houses these days.

#47 ally ally oxycontin free on 05.26.09 at 11:39 am

Geez, a really big SHIFT, eh, Garth!

From Oct 7 ’08, when ‘things are looking better for Canada than anywhere else in the world’ … and ‘share prices are falling so sharply it’s a good time to buy for mother’s portfolio.’

“HYPING” … Stock Markets & Job Losses

http://online.wsj.com/video/less-unexpected-bad-news-is-the-good-news/EFCAB2B3-B635-4FDE-84C5-F42E64F75395.html

“DROPPING OUT” … In despair

http://online.wsj.com/video/keeping-the-unemployed-linked-into-work-force/1B5C7860-BD72-4499-87F2-DB64117AC58E.html

QQ from the Pequod … Say, how good a money manager is Jim Flaherty anyway?

Audit Comment Dec 3 2002 Globe & Mail

“As enterprise minister, he also oversaw the Ontario Innovation Trust, which received $750-million from the government to support capital research but which did not provide any information to bureaucrats—or the auditor—about how that money was spent. Taxpayers’ money, that is.”

Is that when Flairity developed a real distaste for TRUSTS?

#48 JGoh on 05.26.09 at 11:44 am

Same thing that I’ve heard from a couple other people, including one of my bosses. He got a degree in economics, and admits that he’s not a great economist, but one of the things that he did remember is that a direct result of this kind of monetary policy is interest rates going way up. It’s just the way it has to be.

So, Garth, how do we take advantage of that inevitable increase? I’ve got a bunch of money sitting around because of a house-sale last fall, and I’m not going to buy another place for at least 4 years (when I can use the RSP Home Buyer’s plan again). In the mean time, I want to get that money to do something but still say semi-liquid. The problem I’m having right now is that investing it generally means locking it in for longer than I’d like.

Any advice on how to make this situation work for us? I think most of us that read your blog realize the bad situation we’re in. How do we leverage it to our advantage? I’ve gotten out of the housing market. That was step 1.

#49 Barb the proof reader on 05.26.09 at 12:22 pm

#61 David Bakody on 05.25.09 at 8:10 pm http://www.greaterfool.ca/2009/05/24/no-dear/#comment-29847
“Some people only see their life and never another”

David,
So true.

Posted a comment for you [awaiting moderation] on the last thread

#50 alberta ed on 05.26.09 at 12:24 pm

It’s all about getting re-elected, really. Since Harper has sold his soul, we’ll just have to wait for another Messiah to drag us out of this mess. I’m not holding my breath, tho’.

#51 Barb the proof reader on 05.26.09 at 12:32 pm

#34 Bill-Muskoka (NAM) on 05.26.09 at 10:01 am

Hey Bill, great link. Wow, I did not know that.

#52 john m on 05.26.09 at 12:49 pm

Credit swells

Bank of Canada data released Friday showed lending by the chartered banks has flagged in the weak economy — except in consumer credit, which continues to swell.

Personal lines of credit expanded to a new high of $181 billion outstanding in April, an increase of 6.2 per cent year-to-date, and up 20.4 per cent from a year earlier. This type of debt has bloated from $100 billion five years ago and less than $50 billion at the start of the decade.

Personal loans from banks totalled $48.5 billion, up 8.1 per cent from a year earlier, and bank credit-card receivables were up 8.9 per cent at $51.5 billion.

CGA-Canada said Tuesday’s report indicates a need to improve public education on financial management and the economy at large”.———-but,but,but dim jim and slippery steve encourage spend,spend,spend and borrow,borrow,borrow in fact they are leading by example——–gee whiz hmmm who to believe :-)

#53 Munch on 05.26.09 at 12:50 pm

South Africa oficially entered a recession today, with a 6.4% drop in GDP!

Like, DOH!

Our illustrious Finance minister famously predicted we would not enter a recession, and he is (stranegly) MIA today

There’s a lag in the worldwide recession in South Africa, much like in Canada I suspect.

The green shoots” fairy tale reached us as well, with all the “paid for” economists trying to talk everything up

Same shit, different day

Regards

Munch

#54 Got A Watch on 05.26.09 at 12:54 pm

‘Dim Jim’ is an idiot of epic idiocy. And that makes his boss, smiling Stevie, one too, for hiring him. here is a guy touted for his ‘economics’ background – “a university trained economist” they say. That and $1.50 will buy a Tim’s coffee.

I voted for this dream team. I will not, any more, but my riding full of moronic sheeple will undoubtedly vote Conservative as they have every election since 1864.

#55 CM on 05.26.09 at 1:17 pm

Sunny Jim was all smiles when he showed up at Meech Lake (don’t they remember what happened there the last time that name was in the news?) and all cloudy and furrowed when he came out. (Note to wardrobe: green ties are just not your colour, m’boy, no matter what your last name is.)

Meanwhile, in the U.S., the true cost of the bailout – who wins, who loses, who knew.

From Tom Dispatch:

The Greatest Swindle Ever Sold

http://www.tomdispatch.com/post/175075/andy_kroll_six_ways_the_financial_bailout_scams_taxpayers

#56 hkris on 05.26.09 at 1:26 pm

GST will come back to 7% soon

#57 Svejk The Banker on 05.26.09 at 1:41 pm

ED.

I think your calculation may be wrong. Your penalty will be the Interest Rate Differential and not 3 Months Interest. The penalty looks to be too low.

#58 Dan in Victoria on 05.26.09 at 1:55 pm

I reconize that smile.My wife gets the same look when her and her girl friend go “Shoe Shopping”in the states.Then comes the hangover,then the charge card comes in”Holy Crap I didn’t think all those pumps cost that much.”Didn’t we try this deficit experiment in the 60’s,70’s,80’s,90’s?What was the outcome?Idiots,you have to learn or you will just keep repeating it.

#59 ralph on 05.26.09 at 1:59 pm

This is slightly off the topic but felt it important to bring up on this blog. That is an article called “Cover Your Privates” by Edward Greenspan in yesterday’s Sun.

He writes about the continual erosion of our personal privacy. I feel this is a slippery slope to a police state. Most people won’t even know it is happening until it is too late.

History has proven that it can happen. No reason to believe that it couldn’t happen in our society, too. As Greenspan comments we need to wake up and stay awake……

#60 PTDBD on 05.26.09 at 2:13 pm

To those expecting the inevitble interest rate increases, remember that those came about as natural balancing reactions to market forces in a relatively “free market” economy. Circumstances have changed and so have the rules. Interest rates could be held at zero for years until all “savings” are squezed out.

In today’s extraordinary manipulated financial environment, I wouldn’t expect a balancing out of anything unless the whole confidence game edifice collapses. Ironic isn’t it….no balance until the tilting gyroscope goes bonkers.
In that case, expect interest rates to instantly leap to a sane level.

#61 David on 05.26.09 at 2:17 pm

Good on Jim for having a toothy grin in the face of debt bomb implosion. Government, corporate and personal debt are destroying the economy.
Rather than say game over, print more money and hold interest rates at absurd low levels. This gambit has been tried a thousand times and proven to be wanting.
Sad to say, but the boomers are screwed as far as real estate goes. Housing does not create wealth, it simply transfers debt from one generation to another. All this works out fairly well when there is a fundamental alignment between mortgage debt and family incomes. With mortgage debt growth outstripping median family income in an era of job losses and soon to be rising interest rates, it will not be a matter of conjecture as to what will happen.
Lots of blame to throw around, I agree. People wanting something for nothing. Suck air into the lungs for two years by living in a place and make a 30% price appreciation with a fresh coat of white paint on walls full of black mold. Party over.

#62 Shifty on 05.26.09 at 2:18 pm

CBC news

The number of Canadians collecting regular employment insurance benefits grew by 65,300, or more than 10 per cent, in March, marking the biggest monthly increase since the job market began to deteriorate in October.

#63 CaNadians dIGGing Deeper Hold on 05.26.09 at 2:34 pm

http://ca.news.finance.yahoo.com/s/26052009/2/biz-finance-canadian-households-1-3-trillion-debt-digging-deeper.html

#64 Mike B formerly just Mike on 05.26.09 at 2:45 pm

Why is he smiling??? Because he is a dope and liar of epic proportions …. why else…. So much for his promise but a year ago of no debt on his watch… Just tack on another 15-20 Billion coming up to a grand total of 60 Billion. Nothing at all you say… well perhaps compared to the US or UK but a large some nonetheless.
And, if I am not mistaken, this gets added onto the existing country’s debt .. this number is not THE DEBT but the deficit…
Maybe after politics smiling Jim can get a job as a Wal Mart greeter with that Grinchy grin.

#65 Rhino on 05.26.09 at 2:48 pm

Hey! Barb!

Thanks for your reply. Well said, and, it looks like we are still on a similar page for this BS.

The consultancy/self-employment took a major downturn with clients dropping like flies. Some fearing the downturn, others experiencing revenue loss. Things like these times are self-perpetuating…

So, now I am a counter person at a retail hardware chain, making even less. Great job for a university graduate with great resume and 30 years experience, eh? Still trying to keep my little business open, and hoping it will recover. But… hope does not put food on the table.

Just back from a doggie walk, off leash, in a rural setting. Just what is needed for recovery of spirit.

Yes, those of us who know how to live “without money” will do much better than over-leveraged fools. But, gee it would be nice to be able to relax again…

TTFN

#66 Mike B formerly just Mike on 05.26.09 at 3:10 pm

Top Ten Reasons Jim is smiling

10) Soiled his undies (thanks Kelly)
09) Finished the Jumble puzzle just under 6 hours
08) Managed to keep his clip on tie from falling off
07) Modeling for a bobble head
06) Being pleasured by freshly pressed pants
05) He has reserved the window seat on the plane ride
back to Ottawa
04) Just sold some crown land for 10 cents on the dollar
03) Finally got the punch line to the Family Circus cartoon from last week
02) Looking forward to join the Governor General in a tasty raw seal meal.
01) At this press conference he is limited to multiple choice answers

#67 Flip on 05.26.09 at 3:48 pm

Canadian household debt swells to $1.3 trillion

Canadians are increasingly relying on credit cards and credit lines to finance day-to-day expenditures, and the total national household debt in Canada reached an all-time high of $1.3 trillion, according to a report released Tuesday.

http://www.cbc.ca/consumer/story/2009/05/26/canada-household-debt854.html

#68 David Bakody on 05.26.09 at 3:54 pm

#49 Barb the proof reader on 05.26.09 at 12:22 pm

Thanks Barb, what I did not mention he was born Christmas Day and most everyone never remembered and he never complained he would just sat in the back of the room smoking a cigar and enjoying a beer or two. He was the first to sit down to eat and the last to finish always stopping to compliment all who provided both time and effort putting the food on the table.

We now go out for the Christmas Brunch ( first sitting) at a very nice Hotel …(Marriott Harbour Front) I pause and reflect to the many times my Dad ( WWW II Chief ERA) sailed out the exact same harbour and his tales of some fine Canadians who did not return. He built a home for us after the war about the size of living room in one of those McMansions Garth speaks of …… we had a great life food on the table a roof that did not leak and were loved to bits. So Barb these people who feel they are hard done by because they can decide to buy another $700,000 house or not or will loose a hundred grand over some dumb move seems rather senseless.

#69 Tim Bit from Timmins on 05.26.09 at 4:11 pm

“Why is this man smiling? No it’s not the government pension. Mr. Wilson made millions in the 80’s as a big shot at Dominion Securities, probably Canada’s most influential stock brokereage house and underwriting firm….untimately bought out by the
royal Bank. He is a pretty sharp guy. I thought he did a great job as Finance Minister.

#70 Grumpydawgs on 05.26.09 at 5:14 pm

For those who may not have noticed, the news about EI claimants tends to focus on the monthly additions rather than the overall total recipients. Undoubtedly, some article has stated the total number of claims now active as of the end of March 2009 at 681,400.

Do the math 681,400 times average claim of $325.00/ week. This gives a run rate of about $220 Million/week. or around $1 Billion/month. Guess we will be hearing these numbers soon as a rebuttal for those who wish to increase the EI bill.

A better question is: “Where will the EI recipients be in 6 months when their claims run out. I sure don’t see 500,000 new jobs on the horizon ?” A very long line at the provincial welfare gate seems most likely. Then, we will have a very large population of listless poor people falling out an existence.

Options at present seem to be very limited. Some of the folks involved in government retraining locally had this to say. They are shell shocked with: 1. the demand numbers, 2. the funding and 3. capacity that they do not have (and will not have for 12-24 months if they get the funds to expand). The above 3 items sit beside the fact that their programs are barely relevant to start with. Choices available for retraining in these programs are largely irrelevant to a job market which isn’t being driven by a fairly strong market demand for low skilled labour.
For the most part, many of the retraining programs are driven by establishing basic literacy and numeracy capabilities.

Also, I got an email from TDBank offering me City of Vancouver Bonds at 3.50%. I would touch that deal with a ten foot pole. It would seem the the COV’s hole goes much deeper than the billion they have had to borrow to finish the Olympic condo mess on the feces stained shores of false Creek in Vancouver.

I talked to a once wealthy boomer couple who have both had to return to work after two years of retirement. They have only their own savings no defined pension benefit like the few unionized civil servants enjoy, Nope these rae just average Canadians whose nest egg has been blown to smithereens by the downturn in the markets, intrest rates and falling real estate prices. In a nut shell I spoke to the guy and I was left with the impression that his retirement plan was based on perfection, rising prices ad infinitum. Only two years of retirement and he’s screwed. Is this a story that more people are reading but it’s just not being told yet by the MSM.

Lets not forget that an additional 10,000 families with children applied for welfare in BC recently. That stat does not include the couples with no children and the single workers whose EI has also ran out and are now having to resort to welfare. the number has to be triple 10K based on demographics alone. The problem is much larger than the smiling face of JIM the Minister is letting on. I smell an opportunity.

#71 nonplused on 05.26.09 at 5:18 pm

“Of course, government over-spending will succeed in preventing a depression, a collapse in the financial system and social breakdown.”

Why so sure? Over the long term of history goverment overpsending usually leads to the above at some point.

#72 OttawaMan on 05.26.09 at 5:21 pm

Ottawa is so screwed.

#73 PTDBD on 05.26.09 at 5:33 pm

Flaherty plans huge changes in dipping into the Canadian Pension cookie jar:

Ottawa to allow working people to draw CPP cheques

(Garth, this seems to offer fertile ground for a new book. Add chapters on the Tax Free Savings Account, the RRSP meltdown strategy, the RRSP mortgage financing options and the thing will be a sizzler.)
Possible title: “Preparing Aging Canadian’s Bacon – From the frying pan to the fire.”

#74 Bill-Muskoka (NAM) on 05.26.09 at 5:57 pm

#73 PTDBD

At age 60 you can already draw on your CPP but at a 30% reduction from the full amount. You can continue working, but will have to pay taxes on the full income as usual. If you wait until age 65 then you get to have the full amount.

#75 Two-thirds on 05.26.09 at 6:10 pm

Perhaps it is because of this?

” March’s 10.6 per cent surge in employment insurance recipients, to 681,400, is the most since the recession began and gives added ammunition to opposition parties who have threatened a possible early election unless the government relents on increasing benefits.

But in an ironic twist, it also supports Finance Minister Jim Flaherty’s contention that Ottawa is contributing more as the economy deteriorates, since the percentage of jobless people receiving benefits also jumped, to 47 per cent from 43 per cent. ”

http://finance.sympatico.msn.ca/investing/news/businessnews/article.aspx?cp-documentid=20012460

No green shoots in our economy yet. Those who claim otherwise are either colour blind or in denial.

#76 Bill-Muskoka (NAM) on 05.26.09 at 6:20 pm

If we have aaaaaanother election this summer we should make sure that Steve and Dim Jim realize they have reached their Expiry Date together with the entire CRAP Party!

#77 Bill-Muskoka (NAM) on 05.26.09 at 6:26 pm

07) Modeling for a bobble head

#66 Mike B formerly just Mike

Ah, you may be correct. Isn’t it about time those overpriced, used, reconditioned tanks started showing up for the ‘Ghan mission? Perhaps Dim Jim is planning on taking a ride like Micahel Dukakis did? Weeble Rules you know? LMAO!

#78 Live Within Your Means on 05.26.09 at 6:46 pm

#74 Bill-Muskoka (NAM) on 05.26.09 at 5:57 pm

#73 PTDBD

At age 60 you can already draw on your CPP but at a 30% reduction from the full amount. You can continue working, but will have to pay taxes on the full income as usual. If you wait until age 65 then you get to have the full amount.

Bill – I retired at 54, having bought back some Fed service from the late 60’s. I attended a couple of pre-retirement sessions. The break even age of collecting CPP at 60 versus 65 was at age 77. If you think you’ll live beyond 77, by all means take CPP at 65. My colleagues chose to collect it at 60 based on actuarial advice at those seminars. I’m quite sure I’ll never see 77.

#79 Dan in Victoria on 05.26.09 at 6:46 pm

A BILLION DOLLARS A WEEK,WTF?I can’t remember who said it “A billion here a billion there pretty soon you’re talking real money.”Hang on this is going to be a wild ride,straight to the bottom!

#80 john on 05.26.09 at 7:01 pm

Look at that stock market go!!!

Crooks are making money again while we sit quietly.

There is absolutely no reason the market should be this high…this is ridiculous. Plain and simple it should be in freefall towards 4000. When is the day of reckoning coming? It’s not a matter of hoping for bad but the reality is the reality…let’s pls face it. It is necessary!!!

#81 Barb the proof reader on 05.26.09 at 7:07 pm

To: Jim Flaherty

Your rise to power and position was mystery..

Now your phony “career” will be history.

#82 . . . fried eggs and spam . . . on 05.26.09 at 7:23 pm

Wally, my hero and one of Dilbert’s co-workers has long fascinated me by being paid US$100,000 / yr., drinking 40 cups of coffee and smoking 100 cigarettes daily. His daily output is zilch.

Creativity unbounded! Here he shares a unique method of time management. — http://www.dilbert.com/ — BTW, the ‘eggzpurtz’ that the pointy-haired boss refers to are all on Wall St.!
——
#59 ralph at 1:59 pm — “. . . the continual erosion of our personal privacy. I feel this is a slippery slope to a police state. Most people won’t even know it is happening until it is too late.”

The police state you mention is well underway in the UK and US — we’re following very quickly. An excellent post, and should be read in conjunction with this. — http://tinyurl.com/q7x5uw
——
Comparison time between apples and a lemon. Note the triad of countries now agreeing on most things. — http://tinyurl.com/qqcjc5

Next, the lemon arrives to leave a sour taste. — http://tinyurl.com/qqlp4u — Doing everything possible to start a war with Iran based on lies (same as Iraq).
——
I guessed someone put these two together around 1965 — The Titanic and the United States. — http://tinyurl.com/9bkne

#83 Live Within Your Means on 05.26.09 at 7:35 pm

On a lighter note.

Mint Flavored Birth Control Pill:

The Cadbury’s Candy Co. and Merck Drug Co. have combined to market the new Mint flavored birth control pill that women may take immediately before sex.

The Pill will be distributed by the large major drug store chains.
They’re going to be called….

‘Pre-dick-a-mints!’

#84 Barb the proof reader on 05.26.09 at 8:21 pm

#65 “Yes, those of us who know how to live “without money” will do much better than over-leveraged fools. But, gee it would be nice to be able to relax again…”
:)
Rhino,
It’s not easy, but DO keep remembering, it’s all in the attitude.
I, too, bemoan — at times — how easy it would be “if only”.
And look at what happens with many people.. after they get enough, apparently it still isn’t enough.
Someone here quoted Mark Twain the other day, “A human being has a natural desire to have more of a good thing than he needs.”
Why when we have food, family, safety, do we want more?
It’s all about comfort (free from the insecurity of fear). Sadly, we have a habit of forgetting where the real line in the sand is.
A trick:
Always keep up the pursuit of “more”, but perhaps force oneself to drop the feeling of discomfort at not having it.
As I say, I suspect it’s all in the attitude. When I extrapolate about things I wish for, I see that they wouldn’t really help after all, and sometimes even have a downside. Don’t overlook the possibility that maybe you already have everything you want.
BTW I have said several times lately that one of the most desirable jobs for boomers forced out of work, is to work at the local home and hardware store. My neighbour does, as do two other friends. Good seeing your posts Rhino.

#85 smwhite on 05.26.09 at 8:42 pm

This man has a striking resemblance to to our honorable finance donkey…

http://www.nndb.com/people/598/000043469/

Well, the good old days of dual comedic acts are back, now anyone any good with photoshop?

http://www.loc.gov/exhibits/bobhope/images/vc118.jpg

Insert Harper above!

#86 WillsDad on 05.26.09 at 8:56 pm

My prediction:

Boomers are going to start leaving Canada in droves for third-world retirement living.

#87 Gord In Vancouver on 05.26.09 at 8:57 pm

Today’s BC Economic News – CBC

http://www.cbc.ca/canada/british-columbia/story/2009/05/26/bc-emploment-insurance-claims-raise.html?ref=rss

http://www.cbc.ca/canada/british-columbia/story/2009/05/26/bc-rising-household-debt.html?ref=rss

#88 POL-CAN on 05.26.09 at 9:14 pm

A must read:

The Greatest Swindle Ever Sold

How the Financial Bailout Scams Taxpayers, Subsidizes Wall Street, and Props Up Our Broken Financial System
By Andy Kroll

http://www.tomdispatch.com/post/175075

#89 Eduardo on 05.26.09 at 9:20 pm

I never said I’m a housing bull. I just don’t think it’s going to collapse US style. In Alberta it’s already fallen 18% from the high and the economy is much stronger than Ontario.

For the last time, ANYONE WHO BLAMES THE CONS FOR SPENDING IS RETARDED. THEY WERE FORCED INTO IT BY THE 3 OTHER COMMUNIST PARTIES BANDING TOGETHER.

#90 OttawaMike on 05.26.09 at 9:27 pm

Here’s a link to a MSM story summarizing many of the excesses often discussed in this blog:
http://articles.moneycentral.msn.com/SavingandDebt/LearnToBudget/thats-so-2005-what-were-we-thinking.aspx?page=1

One of the excellent links posted by Pol Can a couple of days ago made an interesting point. March 3 the markets bottomed and Obama said that very day that stocks were an good deal. The market has inexplicably risen since then. Either he’s the best stock picker ever or I can’t think of any better evidence of what a rigged game stocks are…

#91 CalgaryRocks on 05.26.09 at 9:33 pm

#89 Eduardo on 05.26.09 at 9:20 pm
For the last time, ANYONE WHO BLAMES THE CONS FOR SPENDING IS RETARDED. THEY WERE FORCED INTO IT BY THE 3 OTHER COMMUNIST PARTIES BANDING TOGETHER.

Amen to that.

#92 POL-CAN on 05.26.09 at 9:36 pm

#90 OttawaMike

Rigged game is what we have down south. The rest of the world makets are like sheep that we keep talking about on this blog. Still rigged but to a lesser extent IMO.

#93 CalgaryRocks on 05.26.09 at 9:40 pm

#90 OttawaMike on 05.26.09 at 9:27 pm Here’s a link to a MSM story summarizing many of the excesses often discussed in this blog:
http://articles.moneycentral.msn.com/SavingandDebt/LearnToBudget/thats-so-2005-what-were-we-thinking.aspx?page=1

I haven’t had any debt except for my meager mortgage for almost 10 years since I discovered the likes of Dave Ramsey.

When I was working in the US the secretary at my company was driving a BMW and I was into a paid for 4 year old pick-up. I was making over 3 times her salary, maybe more. Silly Americans.

That being said, I haven’t noticed the same thing in Canada, certainly not to the same extent.

#94 Mark on 05.26.09 at 10:03 pm

About the photo of the finance minister. Did it remind you of Alfred E. Newman as well? I notice the Star now has a much more serious photo of the finance minister on their web site. Communications people must have thought it would not look good for our finance minister to be laughing at a time like this, or else they also thought of Alfred.

#95 Dan in Victoria on 05.26.09 at 10:24 pm

So I finally capitulated and looked up “faustian” at Thesaurus.com so I now know what that means,just for fun I typed in “Dim Jim”what do you know “NO Results,Did you mean damaging”now thats a dictionary I understand.

#96 Just a Girl on 05.26.09 at 11:01 pm

#78 Live Within Your Means wrote: “Bill – I retired at 54, having bought back some Fed service from the late 60’s. I attended a couple of pre-retirement sessions. The break even age of collecting CPP at 60 versus 65 was at age 77. If you think you’ll live beyond 77, by all means take CPP at 65. My colleagues chose to collect it at 60 based on actuarial advice at those seminars. I’m quite sure I’ll never see 77.”

Do you happen to recall if there were any base investment factors in taking the CPP at age 60, to break even at 77 … eg. 3% per year compounding, etc? Just curious as I have a friend who turns 60 this year, and is debating the same thing.

#97 Tony on 05.26.09 at 11:09 pm

For the people without much background in economics you will soon see the magic 3 consecutive minimum wage increases has on Ontario’s unemployment rate in the early part of 2010. Business will close up wholesale and move to other provinces or simply go out of business. Ontario’s unemployment rate should reach 14 percent in the early part of next year.

#98 Irene on 05.27.09 at 12:02 am

Why is he smiling? Because he’s so dense he doesn’t realise he’s out of his league as a Finance Minsister. Combine that with his boss the self proclaimed economists and what can he expect. They are both losers and couldn’t work their way out of a paper bag let alone an economic crisis.

Cheers

#99 taxpayer like you on 05.27.09 at 1:13 am

Somehow my text “disappeared” from the comment box. Sorry if this appears already.

Barb said:

“It’s all about comfort (free from the insecurity of fear)”

So true Barb. I had just about written you off after yesterday. Do you know what I fear? GM retirees taking my tax dollars!

Now on Bills link to “phantom income”. You did not express an opinion, and David B didnt really say much either. How do you feel about it?

#100 Barb the proof reader on 05.27.09 at 1:31 am

#68 David Bakody: “..over some dumb move seems rather senseless”
David,
So true.
And I very much enjoyed hearing about your dad – he was a good man. You really should write a book about your dad (and mom too – her common sense quotes). Don’t you think the world would be better if those memories of your wonderful parents were written down? Just write from the heart, you’re good at that.
BTW I wondered what “Chief E.R.A.” meant, so before I asked you I Googled the exact phrase. To my surprise the 1st searches brought up web pages which you had contributed to! Must be an area of interest for you, and your bro?
I still don’t know what ERA stands for, but realized your dad was in the Navy? My F-I-L was too, posted the entire war in Halifax, a couple of trips overseas at best. He was once put on KP for falling asleep on duty. He laughs about that! He spent most of the war on the ship in the Harbour. By 1962 he had signs of MS. At the time the doctors said it was all in his head because it was unknown then.
So what does Chief ERA stand for?

#101 Bill-Muskoka (NAM) on 05.27.09 at 8:33 am

He’s not smiling now!

Deficit hits $50B as economy crumbles

And neither are we Canadians according to the Comments!

#102 Bill-Muskoka (NAM) on 05.27.09 at 8:37 am

#89 Eduardo

LMAO at you! I can always tell when a die hard Conswervative is crapping their panties because they always revert back to calling everyone else Communists. God, you people are retarded.

You may return to your delusion!

#103 Bill-Muskoka (NAM) on 05.27.09 at 8:38 am

#83 Live Within Your Means

ROFLMAO! That’s one of the best puns I have read in a long time. Thanks

#104 Barb the proof reader on 05.27.09 at 1:00 pm

#99 taxpayer like you asked: “Now on Bills link to “phantom income”. You did not express an opinion, and David B didnt really say much either. How do you feel about it?”
If you’re the taxman I have nothing to say :o

But if you’re just being curious, I read it, and thought to myself, “Gee, now I don’t feel so bad that I don’t get stock options anymore” :)

#105 Barb the proof reader on 05.27.09 at 1:05 pm

#102 Bill-Muskoka (NAM) “LMAO .. always tell when a die hard Conswervative is crapping their panties because they always revert back to calling everyone else Communists”

Hey Bill, don’t forget, the Cons-bots big weakness, the need to falsely accuse people of bein’ union-lovin’ reds!

#106 gold bugger on 05.27.09 at 2:49 pm

Government over-spending will prevent the depression and social breakdown?

Honestly, read a book about Germany between the wars. You’re starting to embarrass yourself.

#107 Bill-Muskoka (NAM) on 05.27.09 at 3:55 pm

#105 Barb the proof reader

That too! When they have no facts they resort to FUD, which makes their point a DUD!

#108 jess on 05.28.09 at 3:18 pm

who are the board of directors who decide this?
CPP bosses to receive millions in bonuses

#109 Bill-Muskoka (NAM) on 05.28.09 at 5:44 pm

#108 jess

Please see my comment in the Pucker topic!

#110 PJB in Sydenham on 05.28.09 at 10:13 pm

An old friend of mine recently pointed me toward this blog after I had advised him to buy a house despite the supposed current macro-economic woes. Interesting read indeed. May I point out that you could very well be on to something here regarding the high end real estate market in large cities. Unfortunately, the way in which you depict this phenomenon and how it specifically relates to the average Canadian may be somewhat difficult to interpret especially considering the cyclical semi-predictable nature of real estate markets and their vast regional dissimilarities. I look forward to reading about your proposed solutions to the issues you shed light upon.