Okay, first let me get this off my chest. Mark, dude, I’m sorry.

Sorry that I dissed you to reporters when you landed the job. Sorry I created a ruckus when you first appeared before a House of  Commons committee. Sorry I told the committee chairman to shut up, even when the moronic weasel deserved it. I’m sorry it delayed things when they tried to throw me out. Sorry I embarrassed you by asking about income trusts and Goldman Sachs and all that stuff you didn’t want to talk about. I’m even sorry I ran a pic of you here recently with the bottom of your face cut off.

Because, man, now I know two things. You, the Bank of Canada boss, actually do not inhabit your own planet. You walk among us. You have seen the human misery called Leaside and North Van. You know it is the work of the weak and the covetous.

Second, you read this blog, which is cool. Naturally, me and the dogs had our doubts. But not now. After your latest presser it’s completely obvious you sneak little visits here on your Berry when the lesser central bankers are off counting basis points. Indeed, look at what you said about people borrowing their brains out and gorging away on that ridiculously cheap money you gave them?

“We expect prudence from lenders. We expect, and we have confidence in, prudence from Canadians. We remind people that borrowing is for the period you are going to borrow, not just for the moment you take out the loan.”

Hey, that’s telling them. Straight up, Marko.

I know it took a while to spit it out, but this is the first time you’ve drawn that line between the 2% mortgages you gave us, and the mounting, growing, burgeoning asset bubble called the real estate market. As you pithily stated, “Obviously, consumer borrowing cannot grow faster than the economy forever.”

Just the kind of insight we expect from the guy in charge of the money supply, who’s been doling the stuff out like Hallowe’en bobbles. There are, in fact, consequences. If you flood the system with money, make it the cheapest in history, give weekly media conferences on how the recession is over, have CHMC take all the bank risk, then hold housing price hikes aloft as evidence your plan works, chances are some stupid consumers might actually think you mean it. They might overborrow, stagger into the housing market, get into a pissy bidding war and end up paying $200,000 too much.

And while that looks good on your GDPometer, Mark, it’s causing us all in the pack some serious grief. I mean, where’s the long-term good in rendering houses unaffordable? What’s the point of tricking first-time buyers into thinking they have to buy now, or buy never? Why are we better served when we’re all more indebted? And what happens if there’s a housing market correction and thousands of people end up with no equity and loads of debt – which is exactly what follows when you pull the plug? After all, isn’t that the big screwup your American buddy made? As if you didn’t know.

So, Gov, welcome. We were waiting. Yelping and foaming. Giving up hope. Thinking you were more worried about your legacy than your duty.

Now we know. You were just manipulating us.

And I’m sorry about that too.


#1 InvestX on 10.23.09 at 8:25 pm

Great post, Garth. We need more influential people like you confronting our politicians.

#2 Bill on 10.23.09 at 8:41 pm

Well said Garth. I wish we could think that Mark Carney is actually going to lose sleep knowing he’s destroying the lives of thousands of hard working Canadians.

But on the contrary, he and his brothers at Goldman Sachs will continue laughing all the way to the bank with all the schemes they have and will continue to orchestrate behind the scenes to line the pockets of the privileged few.

Make no mistake folks, these wall street/bay street investment bankers are true sociopaths…They will stop at nothing to gain then retain their power and wealth…And no matter how much of it they amass, it will never be enough.

#3 Roger on 10.23.09 at 8:44 pm

Its ridiculous. I just sold a 1000sq ft condo with no upgrades in downtown Toronto. When the tenants left, we spent $1200 painting and cleaning. It was listed for $459,000. It hardly had a view and a very tiny balcony. We had one offer on it for full price and by the time the owners had a chance to look at the offer, another offer came in for $485,000. Absolutely ridiculous. There has to be a market correction. I remember the market of 89 similar to this one. Buy now before it goes up up and up. The market can never end. Guess what…IT DID AND IN A VERY BAD WAY…This cannot last. And this coming from an honest Realtor….(there are some of us around)

#4 Kash is King on 10.23.09 at 8:46 pm

In all fairness to Mr. Carney, perhaps one should look at it from another angle.

Yes, on the face of it it looks irresponsible, especially as a play-by-play replay of what happened in the US; but, maybe it’s all part of the “creative destruction” of fiat money where Bix Weir postulated that Sir Alan Greenspan actually set in motion the prossess to let the cartrel destroy itself.
See : “Road to Roota II (Maestro Greenspan’s Magnum Opus!)”

Bix Weir just wrote “Road to Roota XXI – The Defining Moment”


Maybe the end of fiat is near? Who knows..?

I ‘m sure steps have been taken to protect the vulnerable.

Of course, Mr Carney would never admit to the creative destruction part. ;)

But if it’s the case… well done!

#5 Nostradamus jr. on 10.23.09 at 9:01 pm

“”You have seen the human misery called Leaside and North Van.””

…Garth, how in the Wide Wide World of Sports can you have Leaside in the same sentence with North Vancouver?

Leaside has the educated, wealthy, hoydy toidy, waspy, upper crust.

…We here in North Van are simple folk, poor, uneducated, tree hugging, bud growing, foreigner based, yahoos waiting for China to open up a satelite car plant so that we can elevate our incomes with part time jobs…we’re even willing to learn Mandarin….then maybe the Mandarin chain of restaurants from Toronto will open up one of their restaurants out here.


Nostradamus jr.

#6 David Bakody on 10.23.09 at 9:04 pm

Well not to worry Dude you mentor PMSH is on that good ode get tough on crime again locking people up at the cost of $80- $120,000 each per year, more prison guards and perhaps new hotels to house em all soon to come. This will take real tax dollars and with unemployment numbers sky rocketing and coupled with the lose of a home, well crime will go up for host of reasons. good plan! This may come as shock Mark, good house keeping at the Bank of Canada that would have see long term growth in the markets due to good paying jobs not layoffs and sound advice wrt household debt would have ensure jobs lots of jobs and hence less crime …. bin proven many times before. Heck Mark even your friends and family would like to have safe streets and workplaces free from crime don’t y’all think. California ….. nuff said. Bon Chance Sir …. good luck in the Senate or some other plush job when you leave millions of Canadian taxpayers to pick up the pieces!

#7 eddy on 10.23.09 at 9:08 pm

So, the aptly named Mr. Carney, has confidence in the “prudence” of lenders and Canadians. Well, that does remind me of a carnival – you know, insert a dollar in the dummy’s head, and a platitude is dispensed from it’s mouth!
Why is a Goldman Sachs shill running the Bank of Canada?

#8 Jon B on 10.23.09 at 9:15 pm

Does the Gov take the opportunity to correspond with the average lowly tax-paying Canadian? Good for you Garth in attracting his attention to your blog. I e-mailed a few comments to [email protected] but didn’t get a reply with any substance.

#9 Matt Dunnigan on 10.23.09 at 9:16 pm

Gold bugs beware, bubbles are everywhere



#10 Basil Fawlty on 10.23.09 at 9:22 pm

Thanks Garth, somebody has to expose the folly of another member of the Goldman Sachs Gang. After the massive financial failures associated with Goldman in the US and the revolving door between said company and government, we the people deserve better financial managers.

#11 Cory on 10.23.09 at 9:40 pm

Mark Carney is a Goldman Sachs stooge just like the rest of them in the US. He’s planted here to help facilitate Goldmans quest for world domination. The scary thing is, I’m not joking. Take a look around. In the US, the SEC has just hired a 29 year old (yes no typo here) as a COO for the Enforcement division. He was also with Goldman, just as every single one of Obabma’s current cronies were at some point.


All of them are lying thieves. Timothy Geithner????? Complete joke. Puppet on a string. Now Marko Carney inflating a housing bubble using the same madness (that obviously did not work) the US did prior to their big pop.

I guess what gets me in all of this madness here and in the US is nobody stands up and says enough. Without a revolution, nothing will ever change. The other part that gets me is how stupid people really are to buy into the bubbles. The govt will have to eventually forgive all mortgages. Good for debtors, bad and completely unfair for savers.

You’re the best Mark, Canada should be happy to have you.

#12 Spitzer on 10.23.09 at 9:48 pm

This may have already been posted but if not, it is a good read and more than likely a picture of things to come.

Why Canada’s Housing Bubble Will Burst


#13 Anon on 10.23.09 at 9:56 pm

Garth, did you really mean this stuff you wrote below? Market rates set by central planning instead of the market? Market rates being predictable? Narrow?

“In fact, if central bankers were acting normally, they’d be doing the job they are paid for, which is to (a) keep inflation in a narrow and predictable range through market interest rates, (b) maintain a stable money supply and (c) protect the value of the currency and prevent erratic exchange rate movements.”

#14 T.O. Bubble Boy on 10.23.09 at 9:57 pm

What?!?! Bubble in Leaside?!?!? Where??

Look at this nice starter home for all of you first-time buyers out there…


No renos since 1949, 3-bdrm, 1 bath, and affordable for anyone with 5% down and 35 years of $4000/month mortgage payments.

Take that, North Van!

This once-in-a-lifetime opportunity brought to you by Mr. Carney and the CMHC Bubble Insurance Company.

#15 Cendrine on 10.23.09 at 10:00 pm


Should I dust and clean the bunker now?

#16 Dan in Victoria on 10.23.09 at 10:15 pm

I’m just howling in the aisles here Garth.Sorry I ran a picture of you with your mouth missing…ha… i figured if i couldn’t see his lips moving he wasn’t lying was what i thought.Next time just run it full length…but from behind.
So they tried to throw you out,did they? So you do have another side.Good, shows character,I’ve been made to sit in the corner,stand with my nose against the blackboard,clean the chalk brushes,pickup paper,write lines,embarrased in front of the class,etc.etc etc.Never ever worked on me,always went my own way.Good for you Garth, it’s a lonely road.Keep at them.Canadians will soon need help.

#17 Mark Carneys brotherinlaw on 10.23.09 at 10:21 pm

Ho, so my granny-kicking kin has been sniffing about here? I guess you know he pilfered Gran’s last years CSB embossed Paisley shawl and left her an even cheaper .4% polyester one. Granny is so off her feed about it she is refusing to eat her kibbles and bits.

#18 Happy Renter in North Van on 10.23.09 at 10:27 pm

Mark Carney reminds me of a bartender telling patrons to drink responsibly while serving a large tray full of tequila shots to the party celebrating someone’s 18th birthday…

It’s not enough to warn bankers about the dangers of the punchbowl unless you threaten to take the punchbowl away…

#19 squidly77 on 10.23.09 at 10:28 pm

These are tough times in Alberta as jobs are disappearing at a rapid rate, and now Albertans are defaulting on their mortgages at a near record pace Provincial delinquency rates

#20 nonplused on 10.23.09 at 10:29 pm

A little late for him to come to Jesus at this point!

To be fair, if CMHC hadn’t gone crazy insuring everything under the sun the low rates would probably have just resulted in cheaper mortgage payments for a period of time, allowing everyone to buy more geegaws from China. It was the extension of amortizations and unbridled increases in the amount loaned based on the low rates that caused the damage. Back when CMHC had a “cap” of $170,000 on insurable mortgages the average house price was, guess what? $170,000. Now there is no cap and the average price seems unlimited.

In a few years he will be mimicking Greenspan’s “shock” that the lenders own self interest didn’t lead them to be more cautious about their business models.

#21 Drew on 10.23.09 at 10:32 pm

Why is it every time I hear the name Mark Carney, I have images of a bigtop tent for parliament, complete with calliope music being churned out from grand steam pipes?

#22 Cash is King on 10.23.09 at 10:32 pm

I never thought that I would type this but Maybe Nostra. jr IS correct. It is the immigrants moving to Vancouver that is driving the housing market out there.


Everytime I hear Mr. Carney speak, all I envision are Charlie Browns parents talking.

#23 nonplused on 10.23.09 at 10:36 pm

Further to that point, I think it would be fine for CMHC to insure variable rate mortgages, so long as the amount they will insure is based on what the borrowers cash flow statement looks like at the 5 year rate and 30% of verifiable disposable income. Then at least there would be some insurance that if rates rise the borrower wouldn’t be immediately in trouble.

And there needs to be a cap, and it should be somewhere around the average home price in a given market. CMHC was not intended to help people buy $800,000 McMansions.

#24 Concerned Citizen on 10.23.09 at 10:38 pm

Thank you very much for this blog.
I learn something every day.

#25 best place on meth on 10.23.09 at 10:41 pm

“We remind people that borrowing is for the period you are going to borrow, not just for the moment you take out the loan.”

Hey, it’s an improvement and a stern warning for a change.
If people don’t heed it, screw ’em.

#26 Gregor Samsa on 10.23.09 at 10:57 pm

“Where’s the long-term good in rendering houses unaffordable?”

That’s just it Garth – NOTHING that our so-called-conservative government is doing is about the “long-term good.” It is ALL about short term gain and winning a majority in the next election. That’s it. Every single thing the Harper government does can be traced back this one, single goal. We will pay for all of this later, and in Harper’s mind that “later” happens to be after he wins the next election. Then all of sudden we won’t be able to afford a bunch of stuff anymore, resulting in the completion of the corporate takeover of Canada (I figure the CBC is the first to go).

The banksters are happy to let Harper have at ‘er, because at the end of the day, they win. When people and governments become debt slaves, banks win. All I can say about Carney’s comments is that he must be having second thoughts about “killing the goose.”

It is definitely a threat. If Canada’s housing bubble does suddenly implode like what happened in the U.S., it will suck the entire economy into a deeper recession then the first one (if you happen to believe the first one ever ended that is). Of course, to many on this blog, there is no if, just when.

#27 alberta ed on 10.23.09 at 11:46 pm

Life’s a Carneval… (not).

#28 Aizlynne on 10.23.09 at 11:56 pm

Garth … doesn’t it feel better not to be beholden to the party line?? Now you can be who you are REALLY meant to be!

As for Mr. Carney, may I politely say his mouth leaks excrement every time he mentions how “well” the economy is doing.

Garth … I’ve made the Goldman Sachs connection but many of your readers haven’t. Maybe you could explain it on your blog.

I think we need to get these newspapers paying more attention to what the heck is going on! Anyone have any good connections?

#29 sfo on 10.23.09 at 11:58 pm

How did people protect themselves before the 1980’s RE crash ? Was there any way to diversify and even come out ahead with investments that ran counter to the RE bubble ?

#30 Ana al-Haq on 10.24.09 at 12:12 am

#2 Bill: “he and his brothers at Goldman Sachs will continue laughing all the way to the bank”

Bill, the problem is, people will be fed as long as they keep swallowing. Don’t worry about the profits somebody else makes – it’s their lives. Worry about your own profits – it’s your life.

If you don’t want them to grow richer and richer and richer at your expense – DO something. Spend all your savings today. Move to a different country. Do something that will make me a terrorist if I spell it out in full. DO something. They will keep pwning citizens as long as citizens don’t act – whole current business model is built on this: screw them all the way until they stand up.

Commenting on other people’s blogs is not action. For an example of action see Secessio in wikipedia. If you want a change, act. Don’t talk.

I am talking because I am well prepared: I own nothing. No home, no LOC, no savings, no hope, and more importantly – no desire to join the Ponzi scheme. Omnia mea mecum porto.

#31 Increasing that 1% on 10.24.09 at 12:18 am

After reading your book, “Sheeple”, sounds like a lot of people should be saying ‘Sorry’ to you, Garth, to start…

#32 Nostradamus Le Mad Vlad on 10.24.09 at 12:27 am

Is there any chance that management at the BoC, with their stupendously magnificent brains working in contraction with each other and peering out of their Crows’ Nest Soup, would offer us $5 mln. or so for our home?

Not that we need the money right away, but after Gordo’s failed ‘lympix ends, the new retractable roof plops on top of BC Place ($450 mln. or so), the entire cost of all the infrastructure work done then add in the HST, we could sure use the money!

If necessary, I’ll ask our neighbors to start a bidding war so we can net around $9 mln.!

BTW, did anyone ever ask Monsieur Carney how he, Hank Paulson and several others colluded to bring the fiscal system down (after their cozy days at Goldfart Suxman), or do the answers belong to the elite? Just asking.

O/T, but — “. . . me and the dogs . . .”

I know I’m having a really bad barf day (oops, the monitor just turned a spew-green projectile vomit color), but in the days of yesteryear, when I had a reasonably good education it would be “. . . the dogs and I . . .”

Did all the politically correct / new-age dingbats, now so authoritatively in charge of high positions (nothing jobs, which they are handsomely paid for) decide to re-write comprehension and other rules of good grammar?

Further evidence, I guess, that everything is always in a constant state of flux and change.
A long-shot, but it does happen. — It can go wrong

#33 Ian McDonald on 10.24.09 at 12:27 am

How’s the saying go again,… ” irrational exuberance can last longer than you can stay solvent “. I cannot believe to this day that anyone, in their right mind, would pay more than $225.00 per square foot for housing.

#34 LB on 10.24.09 at 12:57 am

CMHC is the Canadian equivalent to Freddie Mac and Fannie Mae in the US, and we all know what happened there.

How can there be any doubt now that our governments are not democratic institutions responsible to voters, but are owned and dictated to by the banks, when we see government taking on ALL the risks through CMHC and CDIC, while banks take only the profits?

This is how revolutions start.

#35 don bool on 10.24.09 at 1:11 am

Mark Carney

Mark Carney is a world authority on wealth destruction, having personally been responsible for evaporating $35 billion of Canadians’ retirement savings and the source of billions in annual taxes to Ottawa, as a sole result of his scheme to kill income trusts based on his fabricated tax leakage argument.
Meanwhile, just exactly where are our Paid Elected Members of Parliament who are supposed to defend us from blatantly obvious schemes like the one hatched by the overly ambitious Mark Carney at the behest of many of his former clients at Goldman Sachs? Is losing $35 billion of Canadians’ retirement savings not on their radar screen? Just who do they think they are elected to serve? The CEO’s of Canada or the taxpayers of Canada?
The only politician who had the guts to confront this fraud was Garth Turner and for his effort to serve the public these fraudsters black- balled him and cast him as a loose cannon. That,s how our politicians, media, and corporate Canada treat honesty and individuals like Garth who do their job and represent the public.
It is important to understand that no politician will probably ever be held responsible for this because so few citizens actually understand it. The real people responsible are the lobbyists that the politicians answer too. Until those guys are hanging by the neck from lamp posts, nothing much will change.

#36 Robert1 on 10.24.09 at 1:21 am

and this from a Finance Management Firm …. you know, the ones where the Big Dawgs play….


“One issue that we are closely monitoring in Canada is the recent increase in debt by Canadian households.
Since the summer of 2008 Canadians have increased household credit by 8% while U.S. consumers have
reduced their household credit by -1.5% in the same period. Canada’s household debt to GDP ratio now stands
at 90%, well above the long-term average.
Canadians may be feeling comfortable with
this debt load because of appreciating real
estate prices, but our models indicate that
home prices appear to be more than 10%
The longer interest rates are at historic lows,
the more indebted households are likely to
become and the bigger the potential housing
bubble. Because housing prices are an
important input in the Canadian inflation
index, the CPI, deflation concerns could
emerge if housing prices start to tumble.
Deflation is a very difficult economic problem
to address, especially in a highly leveraged
economy. A moderation in Canadian
household borrowing would help to avoid the
problem and ensure longer-term economic


Congratulations Garth …… I got same or better information from you, much sooner and I didn’t have to front up $200 000.00 to have a ” managed account”. Hopefully Carney takes a peek at this …… and perhaps Dim Jim and Deceivin Stephen as well.

#37 Maureen on 10.24.09 at 1:24 am

There is a whole culture of credit now. TV ads as prolific as Conservative stimulus ads air hourly about the need to protect your credit Grown men clothes- lining themselves with a reminder from TransUnion that we never know what might pop up on our credit rating. Another unneccessary need identified and marketed on the basis that we shoud fear the unknown.
The message is we must protect our credit rating above all else. It’s no wonder we’re in such as mess.

#38 Bruce on 10.24.09 at 2:37 am

I’m going to say that, fundamentally, there isn’t much difference between the ethics and philosophy of either Ben Bernanke or Mark Carney. Two of the most powerful and influential financial leaders on the world stage, desperately trying to keep the facade and game going as long as they can. Be it artificially low interest rates, or spouting off a good convincing line of bullshit when the situation warrants to re-assure and make us “feel good”, there’s not a damn shred of truth or logic to anything these guys do or say. In an ironic kind of way, I actually feel sorry for them, but that’s another topic altogether. Same story different book, with the same rules and philosophies recycled over and over and over again.

#39 TaxHaven on 10.24.09 at 2:39 am

Don’t go after him too much.

Capitalism, to be successful, has to reward the prudent, the shrewd risk taker and those able to exploit the naivete of other. There will always be winners AND losers. A successful capitalist system REQUIRES that the mistakes of others be exploited. And I’m dead serious in saying that.

Only we don’t have capitalism now. With CMHC, fractional reserve banking, our own little Federal Reserve misguiding investors with an artificial fountain of cheap money and fiat currencies to boot, I’d call it “national socialism”. Or “corporatism”. Or “fascism”.

It’s not all that different from down south, is it?

When stock, asset, commodity and housing prices reach utterly unsustainable levels, I WILL have cash at the ready. No need to try to save my victims. They are a necessity for future affordable house prices.

#40 Elle on 10.24.09 at 2:57 am

Garth………..so succinctly to the point! Poor Mark…. his ego will never recover!

This site has been a great educator ……….OMG…I would never have known the extent of the corruption
and pure ‘badness’ that exists with those who are paid so very well to “serve” us!!!!

I finally have learned how to ‘cut & paste’…or copy &…..oh whatever…….this bit on the link is relevant…..
so I hope it works…



#41 Hiteclowtec on 10.24.09 at 6:46 am

~We the unwilling, led by the unqualified, are doing the impossible for the ungrateful.

How did we end up with this parade of incompetents running our country into the ground ?

What possible benefit exists in rewarding debtors and punishing savers ?

#42 LatinLife on 10.24.09 at 7:00 am


Narc Carney.

A drug pushing carnival barker.

#43 Confused and... on 10.24.09 at 8:51 am

“..We remind people that borrowing is for the period you are going to borrow, not just for the moment you take out the loan…”

What is the translation of this in layman term please anyone?

Is this M C guy Canadian by birth?

#44 Seilfworcehtsa on 10.24.09 at 8:53 am

Well Garth, you let the Carney have both barrells as it were. You not only rose to the occassion you soared above it. Good on you…you got ’em talking and scratching their heads at the same time. Stupid is as stuped does and this just boomerangs back to Harper and Flaherty and thus we have the three stooges running the economy. What did we ever do to deserve this?

#45 ally ally oxycontin free on 10.24.09 at 8:53 am

You and Paddy Corrigan had the DUDE PEGGED a long time ago!


#46 Basil Fawlty on 10.24.09 at 8:54 am

There is a fascinating Frontline documentary available to watch online called “The Warning”. It aired this week and discusses the rolls of Alan Greenspan, Robert Rubin and Larry Summers in thwarting any regulation of the OTC Derivatives Market . In addition, the Financialsense Newhour, today, analyses this documentary and discusses the recent government bailout of Goldman Sachs and their current investments in the unregulated derivatives market, and how these corporations continue to lobby against the regulation of the growing derivatives beast. Of course, our finance minister will continue to say “nobody saw this coming”. If we had a real press in Canada, he would be laughed off the stage.

#47 Dan on 10.24.09 at 9:32 am

Look what the propaganda MSM is telling people to do. No wonder NA is going down the toilet while the sleeping dragon is awakening and ready to take over .

Why saving is for suckers

#48 David Bakody on 10.24.09 at 9:36 am

A much younger person told me that should she asked to be transferred to Vancouver, she would be promoted and receive double her salary. She now has a new two story home with a double car garage paying around 4K in taxes and living a good life with few if any wants. She decided to stay put for now or longer. This young gal understands less is more and the wide smile on her face proves to me there is hope for many of our younger generation. For Greater Fools and the likes of Mr. Carney have a good day.

#49 Bill-Muskoka (NAM) on 10.24.09 at 9:51 am

#2 Bill

BUT! BUT! They don’t need regulation! Just like an alcoholic doesn’t need to not drink!

They are all just narcissistic gamblers; Funnymentalists who only mix with their own and, therefore, are never confronted by reality. That is why they DEMAND to be left alone to employ their self-serving schemes and scams. Just like the obnoxious little brat who refuses to listen to mom, until Dad comes home.

As I recommended the other day, watch PBS’s ‘Frontline’ series on ‘Breaking The Bank.’ it is available online for free.

#50 Bill-Muskoka (NAM) on 10.24.09 at 9:55 am

#45 Basil Fawlty

Glad you also recommend the Frontline program. It exposed Alan Greenspan and Robert Rubin (Odd I find that Geoffery Rubin is the CIBC’s Big Boy?) for the completely disconnected from the masses elitists they are and always have been.

Too much power for too long just like PMJC ‘Too arrogant for too long!’, and I had a lot of respect for him until the hearings when he played with his balls! ;-)

BTW, how are things their at Fawlty Towers? LOL

#51 Bill-Muskoka (NAM) on 10.24.09 at 9:57 am

To Mark Carney,

Welcome to the world of Garth and his followers. Please experience real freedom and chat with us. We are the REAL PEOPLE! We are Canada!

#52 OttawaMike on 10.24.09 at 9:58 am

Here is a rebuttal letter to Diane Francis’ recent piece about CMHC excesses. It was penned by an exec of one of the smaller banks:
I feel much better now that a bankster has soothed me.

Diane also has an excellent column today about why big banks need to be broken up worldwide. More often than not her writings hit the bull’s eye just like that Garth guy does.

#53 OttawaMike on 10.24.09 at 10:01 am

Isn’t Carney the same guy that runs the country fair booth where you throw loonies into dishes and win the dish if the money stays on it?

#54 T.O. Bubble Boy on 10.24.09 at 10:05 am

Not sure if anyone has posted this link yet – another decent writeup of this CMHC Bubble:


Even the National Post (usually one of the bigger Harper/Cons cheerleaders) is calling this a bubble:


#55 Daystar on 10.24.09 at 10:29 am

#33 LB on 10.24.09 at 12:57 am

So true, so true. Generally kickoff begins when people start losing everything they own.

38 TaxHaven on 10.24.09 at 2:39 am

Don’t go after him too much. – Taxhaven.

Who, the banksta Mark Carney? (he sure is slick, though isn’t he? There’s 7 minutes of Mark scrolling 4 stories down on this media link)


I truly do urge people to give it a look.

Mark Carney says this early on: “A stronger than assumed Canadian dollar driven by global portfolio movements out of U.S. dollar assets could act as a signifigant further drag on growth and put additional downward pressure on inflation. Another downside risk is that the global recovery could be more protracted than projected.”

Canada’s future risk is currency related and things have changed from when we last visited a high dollar (U.S. empire didn’t have holders of the U.S. dollar fleeing in panick). This is the downside at present readers and should the feds tighten CMHC regs to cool off the housing sector until rates go up? Absolutely! Capitalism is a system of failure without sound regulations from housing to jurisprudence to healthcare and the environment. In the case of CMHC’s housing bubble formed from a government who wants to create a wealth effect to in effect buy our votes, we are now seeing regulatory failures in CMHC which has bred a housing bubble, no question, as a result of unprecidented temporary housing affordability. One has to wonder how many Canadians are getting in over their heads in this environment.

#56 Ken on 10.24.09 at 10:32 am

Hi Garth, I wish you were our PM. or at least finance chief. They are going to BOC etc. put us in the same mess as south of the border/

#57 Watched Bubble Never Pops on 10.24.09 at 10:35 am

#19 squidly77

“These are tough times in Alberta as jobs are disappearing at a rapid rate, and now Albertans are defaulting on their mortgages at a near record pace Provincial delinquency rates”

Big deal. The latest 0.42% deliquency rate is still almost 36% less than during the housing crash of the early 90s.

#58 ralph on 10.24.09 at 10:36 am

Great post Garth! Keep holding this aristocrat’s (and others) feet to the fire. Just maybe you can prick his conscious.

As far I am concerned these people are devoid of any feelings of compassion for people. That to me makes them psychopaths.

Keep up the good work Garth. Thanks!!

#59 Watched Bubble Never Pops on 10.24.09 at 10:39 am

#12 Spitzer

“This may have already been posted but if not, it is a good read and more than likely a picture of things to come.”

Just another opinion that, as each day passes, has shown itself to be completely wrong.

#60 Watched Bubble Never Pops on 10.24.09 at 10:42 am

#29 sfo

“How did people protect themselves before the 1980’s RE crash ? Was there any way to diversify and even come out ahead with investments that ran counter to the RE bubble ?”

There is no way to protect yourself against a crash because nobody has the ability to predict when a crash will occur – despite posters claiming that ‘I predicted that’ (oh, but I made no significant money off that prediction because it was dumb luck).

The only sure-fire way to build wealth is to pick your nose during good times and take advantage of crushed asset values during bad times. It’s as easy as that.

#61 vreaa on 10.24.09 at 10:44 am

I would love to have seen a faux question at the press conference along the lines of:
“Well, my bank, my realtor, and my friends all reassure me that I can afford the $750K Vancouver townhome I just bought on my $60K income because the monthly carrying costs seem manageable, and it’s obviously a good investment… that’s what you mean by ‘being prudent’, right Mr Carney?”

#62 The Vulture on 10.24.09 at 10:53 am

Brilliant post Garth! Simply brilliant. Right on.

Here is something to think about…(the opinions of the writer below concerning CHMC and the current real estate nonsense)

“Why Canada’s Housing Bubble Will Burst”

‘The largest sub-prime lender in the world is now the Canadian government.’
(By Murray Dobbin, 22 Oct 2009, TheTyee.ca)

Excerpts from the article. Full article follow the link (URL) below.

URL: http://thetyee.ca/Opinion/2009/10/22/BubbleWillBurst/

“What do the mid-recession housing boom and the Harper Conservatives’ rise in the polls have in common? Answer: the Canada Mortgage and Housing Corporation’s massive sub-prime mortgage scheme that is keeping up the appearance of an economic recovery. Reading the newspapers these days, you have to wonder whether Canada was on another planet when the global credit crisis hit. House prices have actually increased in some provinces and now there is a shortage of houses for sale in southern Ontario. Credit is flowing everywhere.

But what few Canadians realize is that the housing market has avoided collapse (prices are down 32 per cent in the U.S.) because the Harper Conservatives directed the CMHC to change the mortgage rules to effectively make the Canadian government the biggest sub-prime lender in the world. What’s almost as alarming as this reckless policy is that no one in the financial media is talking about it, even though everyone knows the facts. I was alerted to the scandal by David Lepoidevin, a financial advisor with National Bank Financial, in a warning letter to his clients.

The facts are that over 90 per cent of existing mortgages in Canada are “securitized.” That is the practice of pooling mortgages (or other assets) and then issuing new securities backed by the pool — MBSs, or Mortgage Backed Securities. That’s what happened with the sub-prime mortgages in the U.S. which (because the whole pool was so diversified) received triple-A ratings by the rating agencies. Losses around the world amounted to hundred of billions of dollars

“In order to find buyers for securitized mortgage pools, the Government of Canada has put guarantees on them” by directing CMHC to guarantee all Canadian mortgages.

Propping up the real estate market

But in 2007 the Harper government allowed the CMHC to dramatically change its rules: it dropped the down payment requirement to zero per cent and extended the amortization period to 40 years. In light of the mortgage meltdown in the U.S., Finance Minister Flaherty moderated those rules in August 2008 (it’s now five per cent down and 35 years). But these are still relatively very loose requirements and securitization has taken off.

In an effort to prop up the real estate market in 2008 (when affordability nosedived), the Harper government directed the CMHC to approve as many high-risk borrowers as possible and to keep credit flowing. CMHC described these risky loans as “high ratio homeowner units approved to address less-served markets and/or to serve specific government priorities.” The approval rate for these risky loans went from 33 per cent in 2007 to 42 per cent in 2008. By mid-2007, average equity as a share of home value was down to six per cent — from 48 per cent in 2003. At the peak of the U.S. housing bubble, just before it burst, house prices were five times the average American income; in Canada today that ratio is 7.4:1 — almost 50 per cent higher.

Putting off the inevitable

This high-risk policy actually prevents the natural playing out of the recession — that is, the purging of the excesses of the previous boom period. CMHC’s easy-money resulted in a 9.3 per cent increase in Canadian household debt between June 2008 and June 2009.

The banks themselves have taken on virtually no new risk. According to CMHC numbers in the two years from the beginning of 2007 to January 2009, Canadian banks increased their total mortgage credit outstanding by only 0.01 per cent. Fully 90.5 per cent of all growth in total Canadian mortgage credit outstanding since 2007 has been accounted for by Mortgage Backed Securities. Of course, the banks have no interest in saying no if you have qualified for a securitized CMHC loan — because they bear no risk if you default.

Sub-prime is any loan below prime. If a bank refuses you a loan, and CMHC gives you one, the loan is sub-prime. As Lepoidevin says in his warning letter, “Every single U.S. lender specializing in sub-prime has gone bankrupt. The largest sub-prime lender in the world is now the Canadian government.”

This is the ticking time bomb Prime Minister Stephen Harper has tossed at the Canadian taxpayer. Why? So that he can maintain the fiction that he is a good economic manager and win a majority in the next election.

The problem is no opposition political party wants to expose the looming disaster and risk being responsible for a dramatic fall in house prices. As Liberal finance critic John McCallum told The Globe and Mail: “I don’t think we want the government to be rationing Canadian home-buying.”

The price of political cowardice will be very high. And in the end the housing bubble will burst anyway, putting taxpayers on the hook for tens of billions of dollars in defaulted mortgages.”

#63 Downsized and Delighted on 10.24.09 at 11:04 am

Mark Carney is mainly worried about the us dollar tanking (read can $ soaring). There is not much he can do about it – except maybe stir up a little fear. As you have already pointed out Garth, the government created these subprime mortgages – they can easily get rid of them. Not until they get re-elected though!

#64 Gord In Vancouver on 10.24.09 at 11:30 am

#37 Bruce

I’m going to say that, fundamentally, there isn’t much difference between the ethics and philosophy of either Ben Bernanke or Mark Carney.

Bernanke inherited a mess while Carney didn’t.

Bernanke was ripped for NOT lowering interest rates until September 2007 well after the NYSE/NASDAQ and USA housing market crashed – he viewed lower rates as a last resort remedy. Carney lowered interest rates to obscenely low levels shortly after Canada’s real estate market started to slump.

Bernanke didn’t anger unemployed Americans by saying that everything was fine and dandy. Carney alienated Canadian exporters by boldly predicting that the recession would soon be over – which immediately caused the looney to soar by more than 3 cents.

Bernanke didn’t handcuff himself by applying time lines to his important decisions. Carney limited his ability to move by saying that record low interest rates would stay until mid 2010.

#65 Watched Bubble Never Pops on 10.24.09 at 11:35 am

#53 T.O. Bubble Boy

“Even the National Post (usually one of the bigger Harper/Cons cheerleaders) is calling this a bubble.”

I guess they must have changed their minds.

“…Canadians are inherently more conservative than Americans and that has kept the market steadier but Don Lawby, the chief executive of Century 21 Canada, says we also have a more structured housing market.”


#66 Watched Bubble Never Pops on 10.24.09 at 11:41 am

#62 Downsized and Delighted

“Mark Carney is mainly worried about the us dollar tanking (read can $ soaring). There is not much he can do about it – except maybe stir up a little fear.”

…or Mr. Carney can decide to print a lot of Canadian dollars and crush the relative value of the loonie.

#67 char on 10.24.09 at 11:50 am

# 12 Spitzer

Thank you so much for posting that article . Holy smokes !

I had no idea there was this level of securitization in Canada. Nobody I know of has written about this (which in itself is shocking).

Does anybody out there know who is selling/ offering these securities ( and what kind of returns they’ve been yielding ) ?

#68 slopetester on 10.24.09 at 12:04 pm

60 Million Mortgages Have Fatal Flaws:

In August 2008, Federal Judge for the U.S. Bankruptcy Court for the District of Nevada ruled MERS had no standing. ”Indeed, the evidence is to the contrary, the Note has been sold, and the named nominee no longer has any interest in the Note.”

In September of 2008, A California Judge ruling against MERS concluded, “There is no evidence before the court as to who is the present owner of the Note. The holder of the Note must join in the motion.”

On March 19, 2009, the Supreme Court of Arkansas determined that MERS was not the true beneficiary because the Note had been sold. Alabama and Florida have made similar rulings.

In each case, the reason stems from a fundamental misstep in the handling of Notes and Trust Deeds that runs contrary to established court policies which require that the real parties identify themselves to the court.


#69 pbrasseur on 10.24.09 at 12:04 pm

Very nice article (I happen to agree with) on the future of the USD and of the global economy:


#70 char on 10.24.09 at 12:10 pm

PS …Furthermore, who the heck is BUYING these securities, after all that has happened around the world ? (Hope it’s not my pension fund.)

#71 Men With Hats on 10.24.09 at 12:27 pm

Mark Carney member in good standing of the triumvirate of evil and stupidity .
No credibility to thinking Canadians .
Nothing but a big fat zero .

#72 taxpayer like you on 10.24.09 at 12:47 pm

46 Dan – I cant tell whether you’re saying the article you
linked to is meant to support your view or is part of
the “MSM propoganda”. Its actually a good reminder of how the banks make profits on the “spread”. I dont think the author is trying to tell us not to save.

Bill NAM – I really enjoyed “the warning” on frontline too. I’ll check their website for other programs.

#73 taxpayer like you on 10.24.09 at 12:59 pm

66 Char – you can start here


#74 Dorf on 10.24.09 at 1:05 pm

You worry too much, Garth.
There is now a Walmart with a big parking lot in just about every town.
If the whole system collapses, there is lots of room for people who still own a car, to park it at Walmart and live in it. They are doing it in the States and it is working out fine.
It’ll be OK.

#75 Kash is King on 10.24.09 at 1:06 pm

#69 char, maybe THIS is who is buying all those securities?

From the Office of International Treasury Controls (Chartered by the UN):

“Since being established, the OITC has become the largest single owner of Home Mortgage Securities in the World today. Original assets in the form of gold have been wisely and well utilized to create wealth that creates further wealth”

Here’s a link to the page:


Seriously, people need to RELAX, I think something truly wonderful and remarkable is underway worldwide right now. Chill out.

Funny, today is also International UN Day

#76 dd on 10.24.09 at 1:09 pm

Mark Carney…

The Canadian economy should increase x% under the following assumptions

Did I miss anything?

#77 jess on 10.24.09 at 1:41 pm



“default built into the pricing”
how does one build fraud into the discount rate?

Economists usually value goods received in the future less highly than goods received today…

“Theories of value disagree about the social value of distributing equal benefits to rich and poor.

Prioritariansim assigns greater social value to a given increase in well being if it reaches a poor person.

Utiltarianism assign the same social value no matter how benefits are distributed…..john Broome scientific american. june 2008 The Ethics of Climate Change.

so all we all equal or some more equal

What weighting do you give the future humans?


#78 Cash is King on 10.24.09 at 1:59 pm

This cannot be good. U.S. declares national emergency for Swine Flu.


Purpose of declaring national emergency is to speed treatment of the thousands already infected.The pandemic has the potential “to overburden health care resources”.

Most people have been so concerned about ex-Goldman-Sachs employess, gov’t and personal debt and bubbles that the swine flu continues to stay under the radar. soon, it may be the only thing on the radar.

#79 Great Blog today GTA on 10.24.09 at 1:59 pm

I’ve been following your blog for well over a year now and this is my first post. I only read the first 3 paragraphs of this entry and I’m like “You ROCK”.. put that man(Carney) in his place Garth. “This I told you so moment brought to you by greaterfool.ca”!
All my friends are buying places in the GTA, 1 – 2 condo/townhomes… and their argument is that the rental market Toronto Core will always be in demand. This seems to be true as they are finding renters quickly!!!! I don’t know.. I’ll just keep saving my pennies.

#80 Boombust on 10.24.09 at 2:05 pm

“I had no idea there was this level of securitization in Canada. Nobody I know of has written about this (which in itself is shocking).”

Yeah, you sure as hell won’t ever see it in the Vancouver Sun or Province.

#81 Nostradamus Le Mad Vlad on 10.24.09 at 2:28 pm

#11 Cory — “He’s planted here to help facilitate Goldmans quest for world domination.”

In unison with a few others, you are closer to the truth than most even think (Harper, Flanagan are also shills for this group). The following 40-second clip explains it better than I can. — Getting everything

#26 Gregor Samsa — “The banksters are happy to let Harper have at ‘er, because at the end of the day, they win.” — As always, the masses lose but good post.

A poster above said something to the effect of “. . . less is more . . .” — Is that ever true. Material stuff is necessary for the short time we’re here, but just enough, and no more.

#46 Dan — “. . . while the sleeping dragon is awakening and ready to take over .”

People generally don’t bother to look beyond their month-to-month chores of life, so they miss the constantly evolving major changes in the world.

One of the main ones is the re-emergence of Asia as the dominant race. The change won’t be fully apparent until mid-century (give or take a decade or so), so most of us won’t be here it happen.

You are right, of course. Due to most sheeple here focusing on what the polluted and controlled m$m spouts as news, they are blissfully unaware that NA is going down the toilet, and when the flush has settled life here will encompass a new (old) face. See link — Cyber stuff

Before that, water shortages across the globe, pandemics, population reduction, wars, civil conflicts (possibly leading to civil disobedience, as promoted by Gandhi), economic hard times (for those who are unprepared) and plenty of other surprises will happen.

#82 Gord In Vancouver on 10.24.09 at 2:29 pm

The pumpathon continues….


Notice how this article failed to mention the 40 year, nothing down mortgages that were here between 2006 and 2008.

#83 Nostradamus jr. on 10.24.09 at 2:29 pm

Garth, how can you expect Canadians to invest anywhere except into their own homes?

…Canadians can’t trust Wall Street/Bay Street…now they can’t even trust their own govt’s…

>>Benoit Labonté has suggested a three-per-cent skim off the top of city contracts has been channelled to city politicians, bureaucrats and municipalities<<


#84 The Great Gazoo on 10.24.09 at 2:44 pm

Not to go off topic from Mr. Carney but reading the news today –


WOW, in a four day span in Toronto Ontario the following has made headline news:
– GTA 14% hike in auto insurance from outta nowhere
– Rising fuel prices
– Government of Ontario announced a dire deficit with pending cuts looming
– Today’s news, from outta nowhere, City of Toronto announces “dire financial straits” with pending service cuts and tax hikes “certain”
– but hey, real estate is at record levels, keep buying – its the only good investment left

Long term, its the evolution of the demise of Ontario – now a “has been” province. Once a bastion of middle class prosperity through being the giant of North America’s automotive industry and high tech technology (see Nortel, Celestica), now the stripping away has been accelerated by corrupt and incompetent government (see ehealth, Cancer care, garbage strike sick days, ballooning debt levels..).

Buy hey, buy real estate – cause Markie Mark knows thats what gets us out of this colossal failure…

#85 Rob on 10.24.09 at 3:06 pm

Here, let me sum up what is happening and why in just a few points.
.The governments in the G-20 are all front men, puppets, and street hustlers appointed by the true shadow government, the bankers.
. Their agenda is to indebt the western world to the point that when things collapse we are forced to accept World government, a world bank, and a world currency manipulated and controlled to enrich them and rape us. They also want a world health authority that can overrule Government health officials, this is the World Health Authority and the have already been given powers to overrule Health Canada in the case of an emergency. Obama was just appointed to the head of the UN security council which is a direct violation of their constitution . He now serves two masters and answers to the UN which is the goal of the bankers to turn this into the world government.
.The goal is to have a ruling class and a worker or serf class which is us. They have done this through free trade, globalization, offshoring, and outsourcing. That basically means we pay taxes to have heavy industry and large corporations open up shop in third world countries. We are left competing with slave labor because free trade means no borders.
. None of this will make any sense until a person realizes this is all being done according to a plan. The Federal Reserve and the BoC have some of the most intelligent people in the world working for them. they know exactly what they are doing and what the end result will be.
. The Carbon tax is the biggest scam of all. The only scientists who support global warming are the ones that receive government funding. Anyone caught dis agreeing with this theory has their funding cut or is fired. The carbon taxing is designed to micro-manage every facet of our lives and to lower our standard of living and to drive industry overseas where there is no fake carbon tax. The biggest carbon credit trading company, Generation Investment Management private equity fund , is majority owned by Barack Obama and Al Gore, they stand to make billions off of cap and trade. Now if that isn’t an inconvenient truth. The main driving force behind the earths climate is the sun and how much solar radiation it emits. Over the past thousand years it has been documented that the earths temperature has changed in both directions. This is a natural cycle and has nothing to do with what we exhale when we breath.
. People need to turn off the idiot box and do a little research on their own. They will find things are quite what the main stream media tries to spoon feed you

#86 Mathew Gibson on 10.24.09 at 3:07 pm

# 63 Gord in Vancouver

“Bernanke inherited a mess while Carney didn’t.”


Bernamke was part of the Fed for a long time and fully supported the apporach of Greenspan. He is very much part of the problem that reached its peak in the period 2000-2008.

#87 Keith in Calgary on 10.24.09 at 3:14 pm

#79 Boom Bust…..

Ain’t that the truth…..the Calgary Herald never published it either.

#88 Kash is King on 10.24.09 at 3:39 pm

Wow, nobody else sees it in my post#74?

I think we are getting gold from the OITC in exchange for those Mortgage Backed Securities… It seems that’s the way they worded it?

#89 NKVD Black Raven on 10.24.09 at 3:53 pm

If it hadn’t been Mark.. it would have been some other rent boy/rubber stamp/rent-a-name – he’s PMSH’s insurance/fall guy.

#90 shifty on 10.24.09 at 4:06 pm

“I mean, where’s the long-term good in rendering houses unaffordable?”

Not to mention the long term effect on people trying to fund a decent retirement – which will be longer-term.

#91 piccaso on 10.24.09 at 4:17 pm

‘If you put the federal government in charge of the Sahara Desert, in five years there would be a shortage of sand.’Milton Friedman, 1976

I have always heard about this democracy countdown..

How Long Do We Have?

About the time our original thirteen states adopted their
new constitution in 1787, Alexander Tyler, a Scottish history professor at the University of Edinburgh, had this to say

about the fall of the Athenian Republic some 2,000 years earlier:

‘A democracy is always temporary in nature;

it simply cannot exist as a permanent form of government.’

‘A democracy will continue to exist up until the time
that voters discover they can vote themselves
generous gifts from the public treasury.’

‘ From that moment on, the majority always vote for

the candidates who promise the most benefits

from the public treasury, with the result that

every democracy will finally collapse due to loose fiscal policy, which is always followed by a dictatorship.’

‘The average age of the world’s greatest civilizations
from the beginning of history, has been about 200 years’

‘During those 200 years, those nations always progressed
through the following sequence:

from bondage to spiritual faith;

from spiritual faith to great courage;

from courage to liberty;

from liberty to abundance;

from abundance to complacency;

from complacency to apathy;

from apathy to dependence;

from dependence back into bondage’

#92 jess on 10.24.09 at 4:17 pm

Rob at least people are thinking about what to do with the leftover goo…what do you purpose?

Mr. gore and Mr blood
The Prudent Trustee: The Evolution of the Long Term Investor
The Prudent Trustee is the first working paper of Generation Foundation, in partnership with the Rose Foundation. The paper explores the evolution of the concept of fiduciary responsibility.

To provide transitional housing, and reduce poverty

and homelessness for families and individuals

The Rose Foundation for Communities and the Environment was founded by Jill Ratner and Tim Little in 1992. The Foundation is dedicated to the memory of Rose Ratner, whose wit, wisdom and commitment were forged in the neighborhoods of Chicago over the course of 50 years of community activism.

We believe that environmental stewardship, community regeneration, consumer protection, robust civic participation and a healthy economy are all inextricably linked. As a society, we cannot expect to achieve lasting economic progress at the expense of the environment, worker, or community rights. Similarly, lasting environmental, consumer, and community protections must also be grounded in economic reality. Civic participation, especially by traditionally disempowered communities, often serves as the necessary catalyst. Alliances between traditionally diverse interests provides a fundamental and lasting glue that binds long-term sustainable solutions.

New Voices are Rising Project
New Voices Are Rising strives to develop young leaders in low-income communities and communities of color in Alameda and Contra Costa Counties by helping young people gain the skills and experience in civic engagement required to tackle the many problems – especially environmental health problems – that disproportionately impact their communities. In so doing, the project seeks to reduce pollution – especially diesel air pollution and associated particulates, which severely impact both human health and the health of the San Francisco Bay.

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Grantmaking programs support community-based projects and organizations that are building long-term solutions. The Foundation does not have an endowment, so most grant awards are enabled by contributions from businesses, individuals and other foundations. If you are a grant seeker, see our section on how to apply for a grant.

Environmental Fiduciary Project
The Environmental Fiduciary Project conducts research and advocacy to change society’s outmoded “business vs the environment” dynamic. Working in collaboration with institutional investors, legal experts, nonprofit organizations and shareholder advocates, the project helps businesses and investors recognize that environmental stewardship is at the core of long-term profitability and shareholder value.

The Generation Foundation is dedicated to strengthening the field of sustainable development and sustainability research worldwide.
Please email us for further information.

The Generation Foundation was established in 2005 as a 501(c)3 in the United States and a registered charity in the UK. The Foundation is dedicated to strengthening the field of sustainable development and sustainability research worldwide. Jed Emerson is the first Generation Foundation Senior Fellow. Learn more about his body of work at Blended Value.

#93 Jeff Smith on 10.24.09 at 4:33 pm

Was this any surprise to anyone? Is this scary or what?
“By law, municipalities cannot run deficits, so the remainder of the shortfall would have to be covered by increased property taxes and user fees and/or transfers from the federal and provincial governments”


#94 coop on 10.24.09 at 4:36 pm

The Financial Post article has already been posted, but I thought this bit was very telling:

“Once the bank has a judgement against you saying you owe them money, it will follow you forever. Try getting another mortgage with an outstanding judgement. The judgement automatically attaches itself to any future property you buy. With a judgement against you, the bank can also try and garnishee your wages.”

Sounds like a threat to me, via our wonderful banks. They will “follow you forever”. God help us when people start defaulting… Maybe we should get the workhouses set up now.

#95 taxpayer like you on 10.24.09 at 4:44 pm

87 Kash:

They seem to have a little credibility problem….


#96 PTDBD on 10.24.09 at 5:09 pm

A good idea!

Hospitals in America have opened drive-thrus and drive-up tent clinics to screen and treat swine flu patients.

I never did think crowding side by side into a clinic or huge auditorium or lining up in the cold made much sense. Maybe they could co-ordinate the shots with your morning Tim’s pickup.

#97 Jake on 10.24.09 at 5:16 pm

#77 Cash is King said,
“Most people have been so concerned about ex-Goldman-Sachs employess, gov’t and personal debt and bubbles that the swine flu continues to stay under the radar. soon, it may be the only thing on the radar.”

Exactlly what you said, except the exact opposite. To say that swine flu has been under the radar makes me wonder what you consider radar to be. Every form of media has been covering it for months. I receive weekly emails to update the situation at the med school. Every free daily newspaper has articles about it. Trust me man, more people are concerned about Swine Flu than Goldman-sachs. I would be surprised if 5% of people out there even knew what Goldman-Sachs was. So no, I think you’re wrong. I think swine flu has been a great diversion to the raping and pillaging of Western capital that has been escalating over roughly the same period.

In other news, swine flu shots will be available at the U of A hospital on Monday…….anyone else want to camp out with me?

#98 Denis on 10.24.09 at 5:22 pm

A “we’re different” write up by the Financial Post:
From: @financialpost
Sent: Oct 24, 2009 3:33p

Canada vs. U.S. — The New Realty: Canada’s housing market booms while foreclosures still drag on U.S. http://bit.ly/2Q0yex

#99 Jake on 10.24.09 at 5:27 pm

#84, Interesting analysis. With regards to Gore, Dennis Miller’s warning comes to mind,
“Beware the prophet seeking profits.”

I wouldn’t be too quick to judge Obama and Gore though. Afterall, they have both recently been awarded the nobel peace prize, which means they have good hearts. With award in hand, they join the ranks of Henry Kissenger and Mother Teresa as some of the most peaceloving people the world has ever known.

#100 G.P.girl on 10.24.09 at 6:15 pm

#84 Rob
I already know all that. So any suggestions on how to stop the progression? It can’t be stopped until EVERYONE wakes up and that won’t happen as we haven’t suffered enough yet.
And even then, if they could all be taken out, another group would take their place.

#101 Nostradamus jr. on 10.24.09 at 6:27 pm

#83 The Great Gazoo

“”Not to go off topic from Mr. Carney but reading the news today –


…Mr Gazoo, I predicted the above nearly 500 years ago.

…My message in #82 illustrates how Quebec is also crumbling.

…I keep explaining that Eastern Canada is “donut dunked dead”…Its part and parcel with the GM massacre in Detroit.

In time, Western Canada will secede from Eastern Canada.

Nostradamus jr.

#102 George on 10.24.09 at 6:35 pm

#38 Taxhaven, I don’t know how anyone could have a good feeling about predator economics. I guess people losing their asses should theoretically make them wiser. So you, the savior of unloading the unwise is all good, right? I don’t know how good that would make anyone feel. But that’s just an opinion. Depressions seem to be events where the old economy/system drops dead and humanity (don’t you just love that word) “humanity” reinvents business as usual. Good luck. Maybe “capitalism” might help you find someone with down syndrome and a recent inheritance to go after. Or how bout this sweet scenario to spank a few private sessions to – dementia and alzheimer’s are experiencing growth. Thank Christ there will be plenty of “down on their luckers” Blessings on your effings!

#103 George on 10.24.09 at 6:45 pm

And Hey Garth, You are absolutely one fine dude and I have a tremendous amount of admiration for what you do. I am so saddened to see you dropping out of Fed politics. What a loss! and I mean that one sincerely. It’s too bad there weren’t 2 of you ten would be great and thousand would be even better. Hope whatever you got your mitts in with the extra time out of politics becomes Oprah Big or something like that. thanks again

#104 Nostradamus Le Mad Vlad on 10.24.09 at 6:54 pm

Time for a little fun, frivolity and mirth on this delightfully sunny day. So, a 2:56 sing-along, compliments of Auto-Tune The News #9
#73 Dorf — “. . . a Walmart with a big parking lot in just about every town.” — Ain’t Walmart grand?

A few days ago, Coopers Foods (a local grocery and convenience store, well established for nearly a century here), announced it is closing their West Kelowna store.

Why? Just down the road is a big-box Walmart, of course! Cheaper prices kill the competition!

Most of Coopers employees will be transferred to other locations, but the older ones are retiring.
#74 Kash is King \ #77 Cash is King \ #83 The Great Gazoo \ #84 Rob — Can y’all smell Martial Law reeking across the land, shortly after the ‘lympricks are done and dusted with? I sure can.

As to the pandemic, this from wrh.com: “These deaths are a tragedy for those families, but in truth are far less than the number of deaths (63,729 per year) from the normal seasonal flu, for which no national emergency is declared.” Not much of a pandemic so far.

Further, the total number of deaths linked to the vaccine (in Sweden) is four. Other countries haven’t said much yet, but the link I posted last night about the model becoming paralyzed after receiving the shot indicates where this is going.

California’s unofficial unemployment rate is now estimated to be around 40%, including those who don’t bother looking anymore. — Is California that bad? . . . and this — Who wants greenbacks

Aren’t the elite the ones behind the IMF? 5:24 clip, and global govt. is mentioned here. — US and IMF
At least this man stands up for his principles, which is a lot more than most politicians. — Gutsy soldier

#105 OttawaMike on 10.24.09 at 7:48 pm

Rumour heard today from one of my R.E. broker buddies:

The feds are mulling an end to the capital gains tax exemption on profits from sale of principal residence.
She told me it may also just be a modification to the one year rule, where the owner may have to occupy a property longer in future to be tax exempt.

Could this be a way of tempering the bubble?

#106 Cory on 10.24.09 at 7:56 pm

The whole world will be destroyed in nuclear war and the only thing left standing will be Goldman Sachs. Fact.

#107 HuLaLoop on 10.24.09 at 8:23 pm

Garth: I was just wonderi g how did you know he read this bolg.
Another question: does Harper read this blog too?

#108 BDG YYC on 10.24.09 at 9:04 pm

Peter Schiff’s Rant … Must Listen … “specially for the hard of hearing!


#109 Onemorething on 10.24.09 at 9:07 pm

Garth, we can assume Mr. Carnage will read this, I’m sure his souless body will embrace it fully.

Canada with the worst housing bubble in the world right now will never be the same.

It will be obvious who is to blame. It wont be the thousands but the hundreds of thousands of first time buyers and a quarter million (less than 15-20% down buyers) who will be sucked down the rat hole created.

1 in 6 foreclosures coming your way over the next 3-5 years EASY!

Canada has already been noted as the place NOT TO BUY by the Chinese as even with all their cash (which everyone who lives outside of China believes they have) try to make a good investment here and there!

I thought about Vulching on the left coast after the Olympics but really starting to wonder if it will even be worth it!

Planned for Retirement???? Forget about it!

Some Advise, get ready to retire somewhere outside of Canada, it will be your only solution! You cant keep working, there will be no jobs!

#110 Kash is king on 10.24.09 at 9:08 pm

#94 taxpayer

I dunno, but the OITC sounds wonderful though imho.

Here’s something of the very little available on it:




It may be way beyond anything we could have imagined.

Take away from the above what you will. To me something very different , but good, feels like it’s coming down the pike to us, maybe something hard to believe? Maybe I’m losing it? Wow just don’t know what to think anymore. Maybe we’ll find out the real story soon enough. I’m trying not to get surprised for anything at this point.

Also, there is chatter on the net of banks closing in the US and Europe today and tomorrow for “routine maintenance”.
Maybe nothing? Maybe a change? Maybe NESARA/GESARA is for real?

All of this is above the level of we little people for now?

#111 Evangeline on 10.24.09 at 9:08 pm


thanks for the article .. I agree with it as well. Another downside about China is the political risk that the Chinese people, who are becoming more connected with the free world, will throw off the shackles of their oppression. I believe that love of liberty is an innate human quality, so their enslavement will not go on forever.

I parted ways with a broker who was a firm believer that China was the world’s best hope and going to save the world; he bought into the decoupling theory that equates China today with the U.S. at the beginning of its powerhouse economic growth. I thought that thesis was superficial and silly.

The U.S. was founded by people who believed things like “Give me liberty or give me death” and millions of Americans today still believe that. That has been and will continue to be the basis of their economic power. The Chinese today are slaves. Make a mistake in business in China and you risk a death sentence. There is simply no comparison between the two economies.

#112 BDG YYC on 10.24.09 at 9:13 pm

A couple of items for … well … folks who are interested in … actually thinking …



#113 Ghost of Tom Joad on 10.24.09 at 9:25 pm

#98 Jake – Ha ha. You are quite the comedian. “Henry Kissenger .. most peaceloving people the world has ever known.”

Nobel Peace Prize is joke show — Kissinger is war criminal and New World [email protected] scum. [email protected]@ is puppet — wake up!

If you believe your nonsense, then you’ll also believe in a “jobless recovery” and that globalization is good for Canada and that there are green shoots everywhere.

And Jake, don’t forget to roll up your sleeve and get your H1N1 mercury shot — because having heavy metals shoot through your blood stream does wonders for the brain.

#84 Rob – for what it’s worth– good summary.

#114 Citizenman on 10.24.09 at 11:07 pm

Here is an interesting article about a recent run on the bank in the Netherlands:
Depositors bring down Dutch bank

#115 Watched Bubble Never Pops on 10.24.09 at 11:43 pm

#75 dd

Posters on this blog…

The Canadian RE market should collapse x% under the following assumptions

Did I miss anything?

#116 Watched Bubble Never Pops on 10.24.09 at 11:46 pm

#82 The Great Gazoo

“GTA 14% hike in auto insurance from outta nowhere”

So what?

“Rising fuel prices”


“Government of Ontario announced a dire deficit with pending cuts looming”

The U.S. has run a deficit in 32 of the last 33 years. So what?

“Today’s news, from outta nowhere, City of Toronto announces “dire financial straits” with pending service cuts and tax hikes “certain””

And the consequence of that is? Nobody knows.

“but hey, real estate is at record levels, keep buying – its the only good investment left”

It’s definately an ‘investment’ that has proven blogs like this wrong for many, many years.

#117 Watched Bubble Never Pops on 10.24.09 at 11:49 pm

#108 Onemorething

“1 in 6 foreclosures coming your way over the next 3-5 years EASY!”

Maybe if you continue to repeat this it may come true. lol

#118 Watched Bubble Never Pops on 10.24.09 at 11:52 pm

With regards to:

“Far from creating a bubble, the underwriting standards of CMHC has insured that Canada experienced moderate house price appreciation over the past decade rather than the boom and bust experienced in the United States as a result of uncontrolled lending.

“During the financial crisis, the fact that all mortgages over 80% were insured and all mortgages under 80% were underwritten to a similar high standards was one of the principal reasons that Canadian banks were seen as having solid assets rather than the “toxic” debt created by the European and American banks.”

Hm…it seems that history has thus far proven the aforementioned statement to be more true than the ‘RE will collapse’ speculation.

#119 Nostradamus Le Mad Vlad on 10.25.09 at 12:16 am

This is very funny, esp. the new lyrics (parody) of Queen’s Bohemian Rhapsody (further down). — Bohemian Bankruptcy
Whether these are connected or not, it is curious. Make of it what you will. — Bay Area Exercises

Now check this out. — Then this one
“. . . when the Monday story hits (if/when it does at all – since we could be wrong).

“Seeing as it arises out of ‘globalpop’, I am not really expecting it to be a USA-centered event. Maybe something in Asia (huge mega quake or financial lockup – something like that – or heaven forbid Israel takes out the Bushir reactor complex.)”

From wrh.com, this — Things are happening

“The power to force mandatory swine flu vaccinations on the entire population.

“The power to arrest, quarantine or ‘involuntarily transport’ anyone who refuses a swine flu vaccination.”

Just to make sure that one country in particular doesn’t get left out of all the fun — On their own

#120 char on 10.25.09 at 12:28 am

#72 taxpayer like you

Thank you very much for the link !

If I understand it, it’s largely banks issuing these securities (the same guys approving the mortgages on which they’re based !). If you scroll to 14 of the link , it says the issuer (banks,etc) must make payments to the NHA mortgage backed security investor, …and the CHMC (ie the taxpayer) protects the issuers !

So in Canada the taxpayer is on the hook for both (essentially) sub prime mortgages AND the asset-backed securities on which they’re based.


( The thing I can’t figure is why these guys think the issuer would fail to pay if the mortgages already are insured. Huh? Anybody?)

So #72, you’re saying relax because the taxpayer is on the hook to an international body. Dark humour, right ? I love it.

#121 Rob on 10.25.09 at 12:30 am

#98 Jake. The Nobel piece price is a total farce. Henry Kissinger was the Minister of deffense in the 70’s. He was instrumental in the support of Pol Pot and the overthrow of the Cambodian Government . Pol Pot was responsible for the murder of three million of his own citizens, rent the movie The Killing Fields, that might give you an idea of what a loving person Henry Kissinger is. The Trustees that voted Obama the Nobel peace prize had to have their selection submitted “12 DAYS AFTER OBAMA WAS ELECTED!” He had done nothing to deserve any award up until then. He has now increased the troops in Afganistan by 340,000, supported the continued torture of prisoners in Gwantonimo Bay prison, and has launched deadly counterterrorism strikes in Pakistan and Somalia. Hmmmm do you really think he deserves this award?
#99 G.P Girl
The last Civil war in the States was inintiated by only 5% of the population. It only takes a small minority standing up to get things rolling. People need to refuse to take H1N1 vaccine. In their own documents the UN has stated that the world population needs to be reduced from over 6 billion to a more managable 1 billion. Now they are jumping up and down pushing this swine flu vaccine saying it is for our own good, hmmm. We need to vote with our wallets, if you go out for a coffee, go to the local mom and pop coffee shop, avoid the big box names. Buy local where possible. Vote for independant members of government, avoid the left/right paradyme liberal , conservative WWF 2 headed one party dictatorship. The Greens and NDP are no better, they just use a velvet glove to push us into serfdome. Write your local paper exposing government coruption. etc etc. Last but not least, try to stay out of debt, because this is what the Globalist Bankers use to enslave the public.
There is a currency crisis coming in the next two years. All currencies will be re-valued and de-valued against each other with the USD taking the biggest hit. Government debt will be defaulted on amongst nations by at least 2/3. For this reason I believe gold/silver and related assets will be a place to protect ones wealth. Avoid the ETF’s like GLD and SLV since they have never been audited and hold only 30%-50% of the gold/silver they say they have. History tells us that Gold mining stocks out perform gold by 40x during a bull market in precious metals. We have been in a bull market for the last 6 years, look at a chart.

#122 char on 10.25.09 at 12:33 am

Oops, sorry, #74 Kash is King is the darkly humorous guy.

#123 Jojo on 10.25.09 at 12:49 am

Finaly something very good from you against Goverment intervention about unreal RE Market. However I was your opposition because you didn’t predict well “political problem” of Canadian Market (bad timing), but finaly you uncovered misery of Total control of goverment market what is UNREAL and too much interventions in the last 10 years.
Second problem is that total control and interventions of the market created Total corruption and bubble of “assets”.
Well you try to do some good point of the bubble and many,many future problems, but you missed
the real problem-
(total control=total corruption=unreal market(bubble)).
I’m really sorry but now is too late and we’ll see total collapse of all bubble assets in 2012 and Great Depression II, in Canada,USA,Western Europe and all over the world.
Collapse of the stock market what you never seen, at 2012.
Homo homini lupus and Hora incerta, mors certa.
On the end “Panta Rei” and any market values or society values were changed many times through history. Any Goverment is created to serve to the people, not to control the people and Market and stimulate bubbles.Free Market is freedom and through History many Goverments made millions mistakes when created Overvalued or Undervalued markets.
After 2-3 years when shit hit the fan?… Hmm

#124 char on 10.25.09 at 1:00 am

More oops … I meant the taxpayer is on the hook for sub prime mortgages and “…the securities based on them”.

It’s late. This stuff makes my brain hurt.

#125 nonplused on 10.25.09 at 1:45 am


What happened to bird flu? I thought we were already all supposed to have died from bird flu?

I also don’t understand why they need a second jab for H1N1. Isn’t the regular flu shot a concoction of common flu viruses expected to be making the rounds? So why didn’t they just add H1N1?

Seems like a lot of hype for something they could have just added to the regular vaccine. Oh and a large increase in business for flu shot manufacturers.

#126 Mark Carney on 10.25.09 at 1:51 am

Garth, you are far better as an educator than as someone with a vendetta.

It shows in the inferior quality of this post compared to insightful quality of your others.

Of course, your “blog dogs” will have nothing but praise for you. Let’s hope you aren’t becoming yet another person addicted to such.

#127 JoeCalgary on 10.25.09 at 2:50 am

#111, thanks for the link. $587 trillion in derivatives still outstanding. Wow

Thanks to Philip Greenspun’s LUSENET at MIT, I and thousands of others were reading about and discussing this in 1998, 1999. It’s really too bad Frontline didn’t do this show back then.


Just click on threads like “Banking and Finance” or “Stock Market” then ctrl-F and type in “derivatives” or “CDS.”

BTW, mention was often made of a guy named bin Laden there in those days, too.

#128 S. on 10.25.09 at 3:39 am

#68 pbrasseur

Thanks for the great link. The author is right on the money. With their one child policy and rampant corruption characteristic of dictatorial regimes China’s goose is cooked before it’s even fully in the oven. United Europe is a temporary phenomenon, one that’s been tried several times before and never with lasting success. If bilingual Canada with its two founding nations cannot put separatist tendencies to rest what is to be said of a continent whose borders were carved out through centuries of warfare and bloodshed where people tend to pride themselves on what divides them rather than on what unites them.
All this may of course be academic as these issues tend to play themselves out over decades (or centuries) while we are mostly concerned about our financial wellbeing now and in the immediate future. Still, writing off America is a fools bet any day.

#129 David Bakody on 10.25.09 at 6:47 am

#105 Cory on 10.24.09 at 7:56 pm

There is more to your words than you are aware of, having said that there are a few more members of the elite family than just these clowns. To victor go the spoils of war ….. As there were many (500 from the Forbes List) who lost during the last round their were winners also so the game is not limited to we peasants.

#130 Munch on 10.25.09 at 6:54 am

A Masterpiece, Garth – truly!

Keep it up!

PS: So sorry I did not win the prize!

Rgds, Munch

#131 miketheengineer on 10.25.09 at 7:17 am

Garth et al:

Just watched a segment on Alex Jones, where he interviews Lindsay Williams:

Predictions, middle east war in 2 years. Inflation within 2 years in the US. Demise of the current US dollar within 2 years. Their are 4 segments to the interview.


They promote the purchase of gold…

Maybe I will find a job next month, so I can buy some.

#132 lgre on 10.25.09 at 7:37 am

“With award in hand, they join the ranks of Henry Kissenger and Mother Teresa as some of the most peaceloving people the world has ever known.”

LOL, wow, Mother Teresa in the same sentence with Kissinger and the word ‘peacloving’. LOL, that is phenomenal//LMFAO.

#84, now you can see why nobody is awake.

#133 GregW., Oakville on 10.25.09 at 8:46 am

Hi Garth, FYI (don’t Harper want Canada to be more like the USA?)

President Obama declares national emergency over swine flu pandemic, but why?
Mike Adams
October 24, 2009

“Emergency powers trump the Bill of Rights

That’s the public explanation for this, but the real agenda behind this declaration may be far more sinister. Declaring a national emergency immediately gives federal authorities dangerous new powers that can now be enforced at gunpoint, including:”

• The power to force mandatory swine flu vaccinations on the entire population….”

“What emergency?

The declaration of this national emergency seems suspicious from the start. Where’s the emergency? The number of people killed by swine flu in the United States is far smaller than the number of people killed each year from seasonal flu, according to CDC statistics. People obviously aren’t dropping dead by the millions from H1N1 influenza. Most people are just getting mild flu symptoms and a few days later they’re fine.

So where’s the emergency?

The only emergency I can see is the emergency fabricated by Big Pharma to sell more vaccines. By declaring a national emergency over the H1N1 pandemic, Obama is playing right into their hands.

I find the timing of all this curious. Two days ago, New York gave up on its efforts to require mandatory vaccinations of health care workers. This was designed to defuse a large number of planned protests from health freedom-conscious people who don’t want government-mandated chemicals pumped into their veins.”
See link above for the whole atrical.

#134 Jake on 10.25.09 at 9:20 am

Rob and Ghost of Tom Joad,
I thought by comparing Henry Kissenger to Mother Teresa my sarcasm would have been obvious. Also, I am not a proponent of the swine flu shot. This nonstop campaign to sell the shot has been strange to say the least. Apparently people have died from it, but I am at a hospital everyday and no one I know has seen it first hand. The papers here in Edmonton have only ever mentioned one name, that I am aware of, and the young woman had predisposing conditions. I don’t know if the people who pass away with flu like symptoms are even tested to confirm that it is the swine strain. It is just assumed and then used to boost the numbers. Seriously, this is weird. We’ll see how Obama’s state of emergency plays out. Yet another step he is taking to take away the rights of the people. And yes, his Nobel prize is a joke. He was nominated 12 days after taking office and purely on speculation. He has done absolutely nothing substantial but talk. Here is a funny clip.


#135 Finanzkrise on 10.25.09 at 9:33 am

Excellent post, Garth.

The risks of significantly increased government intervention in the housing market since the start of this recession should not be overlooked, especially in the US but as evidenced by the rapidly swelling CMHC, Canada is not exactly acting prudently nor are we immune from the consequences.

Keeping house prices artificially high with cheap money, low down payments and first time homebuyer credits (as is the case in the US) serves only to reward the banks without much risk (they collect revenues while the debt is backstopped by taxpayers) and stoke public debt to dangerous levels.

It’s really just a game of kicking the can down the road that governments are playing. Or do they honestly believe that they have the ability to keep markets artificially high (or in their words: “stable”) forever? I’m sure the big buyers of the bond markets (e.g. China) will have something to say about it soon enough, once Economic Action Plan 2 / TARP 2 / Stimulus 2 are announced, and subsequent deficit forecasts are constantly revised upwards by a mile from previous forecasts.

Garth said it best – this will end badly.

#136 Nostradamus jr. on 10.25.09 at 9:47 am

Nosty La Vlad

…Rumors abound about a “world event” occuring at any moment.

…Ok…here it comes….Eastern Asia will be the epicentre point of this event.

I actually predicted this nearly 500 years ago.

Nostradamus jr.

#137 Grantmi on 10.25.09 at 9:49 am

What kind of wonderful tricks or treats is Mark going to give us this fall!!!?!?!?


“Move along! Nothing to see here!

#138 ally ally oxycontin free on 10.25.09 at 9:55 am

#50 Bill-Muskoka (NAM) on 10.24.09 at 9:57 am

Did you and all your constituents get your $eason’$ treats from the P-CRAPr$ [ ? ]

OR … Were you left holding an empty bag [ ? ]


#139 Devil's Advocate on 10.25.09 at 9:58 am

1.) If you own your home free and clear and the housing market drops by 20%, you loose 20% of the equity in your home.

2.) If you have a mortgage on your home equal to 50% of it’s value and the market drops by 20% you loose 40% of your equity.

3.) If someone has a CMHC insured mortgage equal to 95% of its value and the market drops by 20%, technically they owe 118.75% of the value of their home to the bank. Discouraged they drop the keys in the banks mail slot and walk away. The bank seeks a court ordered sale, finds out they can’t recover the full amount of the loan after market changes and selling costs and seek restitution by CMHC for the shortfall. The bank is not going to take you to court for the shortfall and the chances CMHC will are remote. Even if they did there is good rationale that they should not win their case for not having lent the money with prudence in the first place.

So 1.) and 2.), after having endured their own loses, get to bail out 3.) through CMHC and incur yet further loses. What kind of sick mixed up world is this?

Time to sell, stash the money, take out a new CMHC insured mortgage and then default.

My experience differs. Banks will, and routinely do, pursue those who renege on mortgages. And why not? It costs peanuts for them to use staff lawyers to register claims against the mortgagees, who almost never have the resources to litigate in their own defence. Courts rule in favour of the plaintiff, and then a judgment is attached to the lives of the former homeowners. It follows them forever, jeopardizing new property purchases, potential employment opportunities and will result in garnisheed wages. This is not a reasonable or viable option, and yet most new 5/35 borrowers are being deceived into believing they can walk, by watching US television. This is Canada, folks. Banks rule. — Garth

#140 Kash is King on 10.25.09 at 10:23 am

#120 Rob,

Benjamin Fulford’s thoughts on the Nobel “Peace” Prize:


#141 Basil Fawlty on 10.25.09 at 10:48 am

Mainstream US television news program discusses the bailouts and loan quarantees given out through the TARP program etc.. The total is $23.7T and the banks continue their leveraged derivative bets, while giving themselves massive bonuses all backed by the US taxpayer. The largest unregulated public ripoff and fraud in world history.

#142 Kash is King on 10.25.09 at 10:54 am

This NESARA stuff has dragged on on-line for years, and I almost feel like a loon posting this link, but he sounds so sure! I dunno? But holy cow!


#143 piccaso on 10.25.09 at 11:32 am

The Buck Stops Here
Jun 4 2009 12:10PM

By Douglas E. Johnston, Jr

The global monetary system which was laid out by the Allied nations at Bretton Woods, New Hampshire, in 1944 is nearing its end, and daily we move closer to the threshold of a financial new world order. The United States, having created the most powerful economic system yet devised by man, and having earned global ‘reserve currency status’ for the US Dollar through America’s unequalled military and economic power as the victor of two World Wars, is now nearing the unthinkable loss of the global financial dominance of the Dollar. Following the residential real estate ‘Bubble’ of 2002-2006, the sub-prime Credit Crisis of 2007, and the broader global financial meltdown which has followed, the U.S. has experienced dramatically declining levels of core lending & general economic activity. With bold but ineffective stimulus and bailout plans failing to stem the dramatic fall in both business activity and tax revenues – and all in the midst of major banking and industrial restructurings – the deficit-laden U.S. has

This entry was 4,360 words long, and has been deleted. Have some respect for the people who come here. Next time, post a link. Real estate’s more precious here than in Yaletown. — Garth

#144 TJ on 10.25.09 at 12:02 pm

Your Credit Card Rate JUST DOUBLED

Ed Myska works as executive vice president of El Segundo’s Bank of Manhattan, so it’s pretty fair to say that he knows a thing or two about keeping his financial house in order.

Yet he was among numerous people who have been notified by Citibank in recent days that the interest rate on their credit cards is soaring to almost 30%.

Letters being mailed out by Citi say only that the rate increase will allow the company “to continue to provide our customers with access to credit.”

Myska told me he seldom carries a balance for more than a couple of months and never misses a payment. He now plans to burn off the mileage accumulated on his plastic and then switch to another card.

Nice. Think Garth and us like minded watchers of the dreaded “ Bond Vigilante” are warning of a rate hike shock.

Here is more evidence from the United States. I am trying to NOT post again about the scandal at CMHC but that being said, someone knows something is up .

This from Karl Deninger:

Credit Catastrophe Ahead?

I am hearing repeated anecdotes from multiple areas that foreclosed property held by banks with multiple full-price offers that include a financing requirement are being sold instead to people with actual cash at radical reductions from that price.

This implies that these financing contingencies are regarded as not only potentially no good but factually no good, as if the banks know for a fact that the credit pipeline will (not might), within weeks or months (in the time required to close), disappear. There is no other rational explanation for this behavior.
Citibank’s credit-card terms change implies a willingness to accept and even provoke a complete and intentional destruction of their credit card business as a very high probability outcome, given that nobody in their right mind will accept a 30% interest rate who has an alternative.

The obvious implication is that only those who can’t transfer balances out will remain and if your credit is that impaired there’s a good chance you will default – either intentionally or otherwise. This too implies foreknowledge of a near-complete impending freeze in the credit markets.

This data is not conclusive. But – if you are dependent on credit access and these anecdotes are in fact indicative of actual knowledge of an impending lock-up you are at grave financial risk.

Therefore, if you are dependent on such credit access I would take immediate action to do whatever is necessary to mitigate, to the extent you are able, the consequences of such a dislocation.

Consider how you survive returning to what essentially amounts to a cash economic posture in your business and personal life.

The change in terms on credit accounts is NOT confined to Citibank. I have received a fax from a customer of Infibank with substantially identical terms, in which both the standard and penalty rate was adjusted to 29.99%. This strongly implies that whatever Citibank smells the problem is not confined to them.
Both of these credit card “adjustment” letters are of course marginal rate changes. That is, they are both based off the PRIME rate. The importance of that is missed by many. Don’t be one of them (more on that below.)
I recently received a back channel communication indicating that The Fed is aware that this has been and still is a solvency problem and has so briefed certain members of Congress. This from a source believed reliable, but which cannot be independently confirmed.

#145 Kash is King on 10.25.09 at 12:43 pm

Here’s some of the chatter about temp bank closings this weekend..alternate source mind you…


But now with the H1N1 emergency and this from 2008:

I’m getting a little creeped out. Why is everyone so certain about a second wave?

#146 jess on 10.25.09 at 12:58 pm

so will they go bankrupt or raises taxes to save jobs cut jobs to save money combination of all three perhaps the king should call a jubilee and declare us all insolvent!

cities cash strapped-the creative innovative financing that rushes in to meet demand…

“Jefferson County’s saga began in 1993, when members of the Cahaba River Society complained that the county’s sewer system was discharging raw sewage into waterways. Federal officials issued a consent decree in which Jefferson County promised to upgrade the system.

To do so, the county issued $3 billion in bonds, an incredible amount for a sewer system with only 150,000 customers. As sewer rates rose to meet those costs and Jefferson County struggled under its debt, county officials looked for a way to lessen its loan payments. In 2002 and 2003, they refinanced their bonds with variable-rate and auction-rate securities. Auction-rate securities are bonds where the interest rate is reset by auctions conducted by brokerage firms every few weeks. “It’s a little like someone buying a house and getting a pretty good 30-year fixed-rate mortgage,” says Christopher “Kit” Taylor, former executive director of the Municipal Securities Rulemaking Board. “Then somebody says, ‘Why don’t you get an adjustable-rate mortgage?’”

Auction-rate securities were supposed to be safe, but the auction-rate market collapsed in February 2008. That wasn’t the county’s only misfortune. The bond insurance companies that were backing the county’s debt suffered their own fiscal problems and their credit was downgraded. All of which caused the county’s interest rates to skyrocket, much like a homeowner whose subprime mortgage has just reset. Revenue from sewer fees could not keep up with the borrowing costs. On April Fool’s Day 2008, Jefferson County couldn’t make its payment on its debt. Instead, it reached an agreement with its creditors to pay the interest and get an extension on the principal.

These forbearance agreements have continued ever since. Last September, creditors took the case to federal court, hoping a judge would appoint a receiver to force the county to pay the nearly $4 billion it now owes. It wasn’t until this June that the judge ruled that federal law prevented him from appointing a receiver. In other words, Alabama’s most populous county simply hasn’t been paying its sewer debt for the past 16 months.

Why not? For one thing, Jefferson County’s choices are truly unappealing. The county could raise sewer rates again, but they already are among the highest in the country. The county could file for bankruptcy, but elected officials worry that such a move would be a black eye for the county with potential long-term fiscal consequences.

County commissioners and other Alabama political players have conceived a variety of creative ideas to solve the sewer mess—to no avail. Governor Bob Riley spent last fall negotiating with creditors but, despite winning concessions, he couldn’t find a plan that the county would accept.

#147 $fromA$ia "Garths Nugget Boy" on 10.25.09 at 1:08 pm

“We expect, and we have confidence in, prudence from Canadians.”

Theres nothing prudent about the desperate middle class trying to get by in society, willing to take risks because of the suppression of the upper class.

This is the catalyst of all bubbles!!!

Marc, open your eyes buddy!

#148 Live Within Your Means on 10.25.09 at 1:25 pm

Over 36 years ago I took out a bill payer loan, a couple thou. Paid it off & have only paid interest on a visa bill once – came due while I was on vac. I swore if I couldn’t pay it totally off when it came due, I wouldn’t charge it. That’s been my philosophy since. We don’t owe (other than $4K on an investor loan) & can sleep at night without worries. BIL spoke to hubby last night & think he was looking to hubby to loan him money. Been there, done that. They have been living beyond their means for so long. Hubby, thankfully, didn’t offer to bail him out. 17C & sunny here :-)

#149 Keith in Calgary on 10.25.09 at 2:14 pm

Judgements expire and become invalid after 10 years, unless they are renewed prior.

Judgements need to first be registered against the specific individual assets of the debtor, in order for the judgement to have any enforceable effect such as a sheriffs seizure order or the filing of a writ, against a piece of RE, etc.

A debtor, with assets acquired later on in life, being held in, or by, an entity other than the name which is registered on the judgement, is scot free and said assets are not attachable.

There are lots of ways to escape collectors……even with those waving judgements around.

It is not the end of the world folks……there are lawyers who specialize in this kind of stuff.

You can “creditor proof” yourself quite easily for a couple of thousand dollars…….just like the big guys in Canadian business who screw little guys like you and me all the time.

Sadly you are quite misinformed. In any case, only a fool would incur a judgment, thinking it can be sidestepped. Priced a litigation lawyer lately, cowboy? — Garth

#150 Devil's Advocate on 10.25.09 at 2:21 pm

“My experience differs. Banks will, and routinely do, pursue those who renege on mortgages. And why not? It costs peanuts for them to use staff lawyers to register claims against the mortgagees, who almost never have the resources to litigate in their own defence. Courts rule in favour of the plaintiff, and then a judgment is attached to the lives of the former homeowners. It follows them forever, jeopardizing new property purchases, potential employment opportunities and will result in garnisheed wages. This is not a reasonable or viable option, and yet most new 5/35 borrowers are being deceived into believing they can walk, by watching US television. This is Canada, folks. Banks rule.” — Garth

Why would they waste their time? The mortgage is insured, the shortfall, after all, is made up by CMHC. There is no further gain to be realized. CMHC will review the matter and if there was a lack of due dilligence done on the part of the lender then they might be S.O.L. but for the most part costs, expenses and losses are covered. Granted there may be damage done to the borrowers credit for some time as the “forclosure” is a matter of record that might prejudice future lenders from lending to the forclosed.

This is the way I understand it, and that CMHC is not insuring the full mortgage amount but only the costs, expenses and losses the bank incurs through the process of power of sale/foreclosure. Still the potential losses CMHC has saved banks from might well be significant that we the tax payer are likely to be on the hook for someone elses lack of prudent lending/borrowing practices just when we are being beat up ourselves with no such safety net… Lenders and Borrowers against CMHC (us the taxpayer) Freddy and Fanny all over again but North of the 49th.

CHMC insurance is on the full amount. That’s what buyers pay a hefty premium for – on behalf of the banks. — Garth

#151 Devil's Advocate on 10.25.09 at 2:36 pm

“This is not a reasonable or viable option, and yet most new 5/35 borrowers are being deceived into believing they can walk, by watching US television. This is Canada, folks. Banks rule.” — Garth

It’s economic stimulus… it’s working, but can’t for long. Most disturbing is how much it costs those of us who are nothing more than innocent bystanders on the pretense that it is good for the economy and thus for us. Yet those “subprime” borrowers and lenders benefit greatly at our eventual expense… but the government is doing such a wonderful thing – putting home ownership within grasp of those who might never otherwise own a home… not to mention they have not yet worked for it and are not thereby yet rightfully entitled to it. But I’m sure many will debate that with me as would anyone who might see a freebee being offered fear it’s withdrawl by they who pay.

#152 Cash is King on 10.25.09 at 3:38 pm

# 96 – Jake,

My comment was about the posters on this blog, not the public in general. Besides, very few people expected the US to declare a state of emergency this early.

#124 Nonplused

Bird flue killed 10’s of people in North America and most of those were health care workers. H1N1 has already killed over a 1,000.

I’m not saying that everyone needs to rush to be vacinated, but as Garth has pointed out before, a full scale, stay at home, close the mall, cancel all sporting events, wear masks pandemic, especially with the upcoming Christmas shopping season will collapse all financial markets to never before seen territory.

#153 comrade okie on 10.25.09 at 4:15 pm

Scanned a few posts. Yes, yes I know it’s all about them.

The world of gaming/xbox is representative of your empty lives. It’s not your fault.

It’s the fault of your mentally lazy parents. And yes, that is some comfort to you. It is everyone else’s fault.

Get over it.

Garth Turner is trying to maintain a significant profile in this odd world in order to help you to deal with the consequences of your being so easily influenced by commercial interests.

I could say very much more, but you likely wouldn’t listen. My written word isn’t nearly as powerful as the very costly advertisements that are everywhere, that you accept as gospel. The tidy right gospel that liberal thinkers reject, yet aspire too, as well. Think about it.

Yea, though I walk through the Valley of Idiocy, I will forever try to assist those who will listen, even momentarily, to be cautious in respect to the carpet baggers who sell stocks, shorts and suckle on the blood and toil of their fellow citizens. Those without conscience. Those without Heart. Those without Soul. The Whores of Babylon.

Perhaps, we should now discuss the value of your homes.

#154 jess on 10.25.09 at 4:16 pm

Whose Lying in the Liar’s Lair?

The Sydney Morning Herald has a story regarding a rich socialite who is in default on her properties and her defense is most interesting. She is the victim of a liar’s loan and she claims that she isn’t the liar!

Under Duress or Overdressed ?

#155 David Bakody on 10.25.09 at 4:16 pm

#132 GregW., Oakville on 10.25.09 at 8:46 am

Hey Greg …. the strange thing about any illness it can all be a joke until it is you! followed by someone you love. Then it is a whole new ball game. I and my family all have appointments and will put forth our arms and hope for the best.

#156 Auditor General on 10.25.09 at 4:18 pm

Well played Garth. You said the majic words “Goldman Sachs” to set your tribe into a frenzy. Yes I know they control the world. Or is it the Rockafellers, or the Rothschilds. I always forget because the quacks can’
t make up their minds. It must suck to ponder the fact that the majority of your followers believe in one world government, 9/11 inisde job, blah blah blah. So flattering on an intellectual level. Why dont you get it over with and start a cult where you become their leader and they have to give you 20% of their income. They probably would if you asked. It would be like christianity where you wait for the real estate crash like they wait for the coming of the messiah. That racket has gone on for centuries so you should be able to milk this one for a while. Gotta go get my H1N1 (mind control) shot on my way to the free masons meeting tonight.

#157 comrade okie on 10.25.09 at 4:56 pm

Auditor General;

How audaciously disingenuous.

#158 breezer1 on 10.25.09 at 5:06 pm

will you even consider running again?

#159 comrade okie on 10.25.09 at 5:14 pm

Baghdad bombs kill 132, government slams neighbours


Someone else’s problem.

We didn’t have anything to do with it.

#160 DaBull on 10.25.09 at 5:34 pm

Everything you wanted to know about the Canadian Mortgage market but were afraid to ask.


It not as bad as some think. It’s actually in very good shape.

#161 CinToronto on 10.25.09 at 5:58 pm

I couldn’t let Auditor General get the last word. If AG reads blogs or online newspapers at all, AG would know that there is always a fair percentage of posters who are conspiracy-minded, flat-taxers, or just plain nuts. Just read any Globe article that allows comments to see. For the record, I have a Ph.D. , plan to get a flu shot, and don’t believe in any Rothschild or 9/11 conspiracy. There are plenty of other people like me reading Garth’s blog every day. Spit your venom elsewhere.

#162 Double Diamond on 10.25.09 at 5:58 pm


Sorry to derail your article but I am searching for a past article you wrote and maybe you can help me… It was in relation to the CMHC and Canadians being leveraged 7-1 vs Americans 5-1 and included average Canadian income vs American income at the time the wheels came off down South. I can’t for the life of me find this article and need the stats/info for an argument with “greater fools”. Any help?

#163 jess on 10.25.09 at 6:09 pm

“Storm Financial went into administration in January after its business model of clients mortgaging their homes to invest in index funds collapsed in market falls last year, wiping out about $3 billion in investor funds….

Storm acting to obtain mortgages and margin loans that formed the basis of investments into index funds would represent “pooling” or “common enterprise”, which are defining characteristics of an MIS.(management investment scheme)


#164 Keith in Calgary on 10.25.09 at 6:11 pm


You say I am misinformed, yet you post no proof that what I say is untrue and cannot be done. I respectfully suggest that on Monday you make a phone call or two, as I am sure you won’t get a bill for the answers.

Remember that I was a banker ? I have chased more than one person who was legally smarter than the system set up to keep them straight. I am not suggesting that someone do this for the express purpose of intentionally and inmmediately defrauding someone, as the veils that exist would be broached in court in that event, but to properly cover one’s backside for the legitimate and genuine untimely event of civil default, is another story entirely, and entirely legitimate and defensible.

Even a cursory GOOGLE search reveals clues to the strategy one must use in order to do so. When I had my last business for 5 years, I paid a civil litigation lawyer roughly $11K to setup both my personal and corporate affairs to be creditor proof in the event of having a judgement entered against either of those entities having any valid effect on day to day operations, or the quick liqidation of assets. In my case, the most likely source of such grief, should it have come my way, would be from one of the many ambulance chasing law firms that would have sued me, my insurers, my shareholders and my companies in the event of a motor vehicle injury accident, as I was a high end car dealer.

Geez…….even our government is allowing it to happen to us (as we are the eventual creditors) thru the CMHC MBS program that cover’s the banks off, who are the beneficiary of the robbery and theft that is taking place in our marketplace, yet with none of the risk or recourse.

#165 Nostradamus Le Mad Vlad on 10.25.09 at 6:52 pm

#123 char — “This stuff makes my brain hurt.” — You’re lucky. I’ve been running on empty for eons!
#135 Nostradamus jr. — “Eastern Asia will be the epicentre point of this event.”

Hi Nosty. Checked the wall map, EA, etc. Right now, this — Shipping down is the only thing that stands out.

Japan is cuddling up to China, distancing itself from the US. It sure will be interesting to see if this “event”, whatever it may be, coincides with #138 Devil’s Advocate post, namely the para.:

“So 1.) and 2.), after having endured their own loses, get to bail out 3.) through CMHC and incur yet further loses. What kind of sick mixed up world is this?”

A sick world for sure. Not the planet, just all the yahoos and dipshits (those in charge) currently inhabiting it.

Seems as if sheeple of the world are being nicely set up to have all their assets stripped away, without them knowing a thing about it.

This, then leads to #125 Mark Carney and #155 Auditor General (interchangeable).

With regards to these two, one can’t count and the other can’t spell, but that’s to be expected. After all, they are fed. shills. Possibly these two, along with Stevie, Jimbo, etc. run the whole show from The Land Below Hell.

If one wants to have a better understanding of what is going on with the controlled m$m, then — Truth? Not Really!

BTW, if anyone forgot about CC (global warming / cooling / level playing field), this: — Who is in charge? “So if you guessed the name Rockefeller as the major known backer of 350.org, you would be correct.”

Chances of a one-world govt. are not that high, as North Korea, China, Russia and several other countries which enjoy their independence will fight like hell to keep it. Politics don’t play a part.

H1N1 — Don’t Leave Home Without It! — Autism and Clip of Autism MD

#152 comrade okie — Nice to see you, Comrade. Posted a few jokes over there. Keep well!

#166 john m on 10.25.09 at 7:02 pm

I find it quite curious how some posters find security and something positive in a deteriorating economy……..and it is…every minute of every day…..government spending is at record levels…..revenue is at record lows…….and dropping…….????????? …….. Suck up the propaganda if your gullible enough………personally i’m not ………many years ago we had a government in Canada building a country and a future…………now it appears to me its all for the VOTE and all parties are guilty.

#167 Men With Hats on 10.25.09 at 7:49 pm

I used to think Canada was an intelligent,well educated, country .
Now I am not so sure .People keep falling for the con-bot propaganda aided and abetted by people like Mark Carney and his flying circus .
People actually believe that the con-clowns atr handling the economy in an efficient manner .
This after an economic update that promised no deficit or recession .
Seems to me Canadians are hetting dumber by the minute as they swallow this garbage HL& S .
Go ahead and give the morons a majority . You richly deserve it for being so stupid

#168 dawson on 10.25.09 at 7:53 pm

Vacation comparable with China, expensive real estate, cold… what is the advantage of Canada?


#169 Rob on 10.25.09 at 8:33 pm

I bet #155 hasn’t even spent 5 minutes reseaching anything that he so eagerly discredits. History will reflect on people like him as enslaving themselves into the Globalist agenda.

#170 Rob on 10.25.09 at 8:46 pm

#160, Its sad to think someone with a PHD would think mercury, formaldehyde, squalene and live cancer viruses are something that a person should be injecting into their arm. 6 months ago Baxter International was caught trying to release live bird flu in their vaccines in Europe. They are one of the main distributors of this vaccine. But I guess having a PH.d means you don’t have to follow current events and gives you a lifetime pass on knowledge. Doctors are threatened with lawsuits if they tell people not to get the vaccine, yet if someone has an adverse reaction or dies from the vaccine the pharmaceutical companies have be exempted by new legislation. Don’t try and make people think this vaccine is safe, because I KNOW it is not.

#171 Watched Bubble Never Pops on 10.25.09 at 9:37 pm

#159 DaBull

In retrospect that IMF document about Canadian mortgages has, year after year for the last decade, shown why RE doomsayers have been repeatedly wrong.

#172 Ron on 10.25.09 at 10:13 pm


I read ‘Greater Fool’. I’m reading ‘After the Crash’. Both are easy and interesting reads.

I agree that real estate is grossly over-valued. I agree that consumer debt is out of control. I agree that there will be painful consequences, for many.

However, I’m not sure that I agree with the ‘worst case’ consequences.

Generators? Matches? There’s still power, resources, infrastructure. Wouldn’t there just be a revaluation of everything so that our world continues to function?

When building a house of cards, and it falls, we have 2 options:

1) Point and scream at the fallen cards
2) Start building again

Keep posting.

#173 ally ally oxycontin free on 10.26.09 at 7:14 am




#174 Alex on 10.26.09 at 12:18 pm

We should borrow the central bank governor from the EU, Australia or Israel. Their banks governors have “A” rating. Our Mark got only “B” mark.

See central bankers report card:

#175 Shiner on 10.26.09 at 2:08 pm

Dude… that was Freakin’ brilliant!!! Freakin’ Brilliant Garth.

#176 been there on 10.26.09 at 5:12 pm

haven’t done that
I rather rent forever than working double job to own a house
I would call owning a house now mission critical
Everything has to stay perfect on the course
let say gas for example; how quickly the tides can turn

#177 jess on 10.27.09 at 7:33 am

The village is getting smaller to us humans. Virus and bacteria have no borders whether you live in a tent or have brick surroundings.

Many millions don’t have regular preventive health care in the U.S.A. and don’t receive vaccines that prevent disease . If this continues will we start to see a resurgence of whooping cough etc …
As i see it many Americans have no health care + no home /Canadians that are homeless still have health care .

Do you think the richer humans will decide to go to public option due to these facts or are they really compassionate? If Greed is the push factor. Charity lately seems to be tied to richer humans who used ‘donation’ as a tax schemes to improve their lives.

#178 jess on 10.27.09 at 7:54 am

rob – So did Baxter get it’s license?

serendipity – there are good accidents and unfortunately bad ones.

none of the 36 or 37 people who were exposed to the contaminated vaccine became infected, the incident is being described as “a serious error” on the part of Baxter, which is on the brink of securing a European licence for an H5N1 vaccine. That vaccine is made at a different facility, in the Czech Republic.
“For this particular incident … the horse did not get out (of the barn),” Dr. Angus Nicoll of the ECDC said from Stockholm.

#179 RJD on 10.27.09 at 6:23 pm

Just read the IMF paper that “watched bubble” said explains why our bubble doesn’t exist. Did “Watched bubble” read it? The paper has nothing to do with the overall integrity and risks of our system. This is what it covers:

“This paper builds on past research and argues that the paucity of longer-term loans is caused by a five-year maturity cap on government-guaranteed deposit insurance, and a prepayment penalty limit on residential mortgage loans in the Interest Act. In addition, the availability and cost of residential loans for prime borrowers are comparable to those in the United States.”