Bad decisions

Condo nightmare: Van pulls plug on Ghost Village: Here

Well, so much for that.

Barely 24 hours after the nation’s realtors, bank-employed economists and sycophantic media pronounced housing had bounced off the bottom, with a triumphant return to, say, 2006, trouble blew into town.

I mean, was it only Monday the TD Bank was declaring peace in our time? “If you’ve ever wondered what a soft landing in housing looks like,” cooed one of the gurus from the economics department, “this may well be it.” Apparently he failed to look outside and count the bodies. He should have. He might have said a less stupid thing.

In recent hours stocks have been chewed up. Gold plunged again. The dollar stumbled. Commodity prices crashed. Bond yields soared. So did the US dollar. This wasn’t in the game plan of those who thought economic shocks were passé, Yankee dollars were going to zero, gold was on its way to two grand an ounce or real estate was in nascent renaissance.

As you may know the latest news is that (a) Ireland fibbed about being okay. It’s pretty much screwed and headed for a debt crisis. (b) This has all of Europe flubbed and could cause a massive plop in the Euro. “We are in a survival crisis,” said the EU Council president. (c) This restores last spring’s debt crisis and now we have to worry about the profligates in Greece, Portugal and Italy again. Enough already. Get a job. (d) China’s overheating and has raised rates once, with more to come. (e) It’s bad news for commodity prices and places with commodities (like us) as Chinese demand wanes. (f) Worried money has streamed into the US dollar, like it always does. That clobbered everything denominated in greenbacks, like gold and our dollar. (g) Yields for US bonds have jumped to the highest level in most of a year as the spectre of a global debt mess rears its unpleasant head.

So what does this mean in, like, Etobicoke or Airdrie?

Only that you should never call a game too early. For example, those long-term mortgage rates which have been inching down – taking a five-year mortgage to less than 3.5% – are on their way back up. (Remember that VRMs are dictated by the Bank of Canada and bank prime while fixed-rates follow bond yields.) So, you might want to get that borrowing done this week…

It also means trouble for a hunk of the Canadian economy, heavily dependent (as is the TSX) on the resource sector. As you know, this has been one of the brighter spots, as soaring commodity values helped wipe away some of the pain of lost manufacturing and export jobs in the wastelands of central Canada.

Mostly, though, it rattles people. Coming two years after all this financial meltdown stuff was supposed to have climaxed, it may remind them what they’ve spent all this time doing. Putting their affairs in order? Paying down debt? Getting diversified and more liquid? Bailing out of real estate at the top, when the bailing was good?

Yeah, right.

Instead, you well know what your neighbours and useless relatives have been doing. Lines of credits, HELOCs and mortgages have gone crazy. Last year people borrowed $41 billion against homes they already owned, for example. Car sales have leapt higher. Savings rates have collapsed. Household debt’s in record turf.

Endless bad decisions have been made by young couples buying houses without money and by the banks which let them use mortgage cash-back funds for down payments. Unemployment’s still at recession levels and household incomes are comatose, and yet people are borrowing and spending like fools.

Why? Don’t they know about Greece and Ireland? The US real estate depression? Ottawa’s $50 billion deficit? The HST? The housing bubble? The recession? Or did they forget the panic they felt in the winter of ’09?

Try all of the above. Most people have had so much sunshine blown up their rear ends they glow in the dark. And it happened again this week, thanks to the economists. The house pumpers. The economists. The politicians. Bereft of possible actions, they know the best chance of staving off worse times is to convince the common folk to borrow and spend, rinse and repeat.

But the more it works, the greater the inevitable.

Hard to say if the next debt crisis will mushroom or be contained. But the lessons should be obvious.

* Be a seller, not a buyer, of housing.
* Pay down debt in a panic.
* Keep real estate under 40% of net worth.
* Own bonds, equity ETFs, preferreds, REITs.
* Max your TFSA in growth assets.
* Worship liquidity.
* Don’t ever be Ireland.

193 comments ↓

#1 Paolo on 11.16.10 at 5:21 pm

How quickly fortunes change in this new decade…

#2 Praveen on 11.16.10 at 5:25 pm

And Garth what about selling some stocks at the top now to get a pile of cash you can use to buy back in after the market dives on all this worry. Otherwise you hold a bunch of stocks that just get cheaper. And you have no money to buy any when they are on sale. Even Warren Buffet has been selling a bunch of his positions lately, presumably to buy back in when things drop to lower prices on the stock market.

#3 Willy H on 11.16.10 at 5:26 pm

It also means trouble for a hunk of the Canadian economy, heavily dependent (as is the TSX) on the resource sector. As you know, this has been one of the brighter spots, as soaring commodity values helped wipe away some of the pain of lost manufacturing and export jobs in the wastelands of central Canada.
_ _ _ _ _ _ _
Dead-on. Many firms in Canada are looking at 2010 results so far and the only thing keeping them from dipping below 2009 is the buoyancy of the resource sector YTD. Sinking commodity prices will cause many an CEO to strap-on the diaper!

#4 BrianT on 11.16.10 at 5:34 pm

Looks like trouble ahead. In other news, many Americans are now saying The TSA is not going to do sex to me http://market-ticker.org/akcs-www?post=172442

#5 Danforth on 11.16.10 at 5:48 pm

*Don’t ever be Ireland.

I understand the Guinness is better there than the kegs they export. Let alone the single malts.
And they could use the tourist revenue!

re: your guidance:

* Keep real estate under 40% of net worth.

Might help worth clarifying:
a – the value of one’s home vs. value of other investments , or
b – the value of the paid-off portion of the home, vs value of other investments.

Perhaps its a matter of symantics…but people might get confused on this point.

#6 Danforth on 11.16.10 at 5:53 pm

*Pay down debt in a panic.

– trust this means “non-mortgage debt” ? Otherwise this conflicts with your next point around the % of realestate in the mix…

#7 Frank form Calgary on 11.16.10 at 6:05 pm

Garth
A prophet is seldom seen as one in his own land. People rather listen to the cheer leaders with a vested interst (and bonus pay) in proping up the housing market.

But at least some of us appreciate your council and advice…..please keep it up.

Thanks

Frank

#8 Nostradamus Le Mad Vlad on 11.16.10 at 6:06 pm


Scheduled time of arrival is as said earlier — right about now!

The elite have pulled the rug out from under our feet and left us falling all over the place.

When this gooey, sticky financial cheesecake is well underway in North America, with no one paying attention, WW3 may possibly the next bad apple to fall among us, with everyone blaming everyone else.

Sure nice to be debt-free, living well within our means and taking care of the necessities of life.

#9 X on 11.16.10 at 6:17 pm

‘Most people have had so much sunshine blown up their rear ends they glow in the dark.’

So True. I often wonder how the RE industry can continue to put such a positive spin on everything.

#10 Junius on 11.16.10 at 6:32 pm

Garth,

One of those days that should give the pumpers of Re and Gold pause.

It won’t – of course. But it should.

#11 Dean, the bubble watcher on 11.16.10 at 6:37 pm

“Don’t ever be Ireland”…… Gulp….. It looks like we’ve got them beat as for debt per g.d.p. and public debt per person. Check the link:

http://www.economist.com/content/global_debt_clock

Mish Shedlock explains this interactive debt map further:

http://globaleconomicanalysis.blogspot.com/2010/11/interactive-map-of-global-debt.html

No kidding it’s time to be liquid! Time to make sure the neighborhood attracts a lot of squirrels.

#12 tigerbaby on 11.16.10 at 6:46 pm

I thought it’s common sense that getting offered lower rates and higher limits does not mean I should be swiping more stuff on my credit card?

I have not seen it mentioned here, but perhaps the “rich d*d, poor d*d” series of books should take some of the blame along with individuals, banks and governments. It created the myth that everyone can make it as a real estate tycoon like the Donald. People are so drawn by the jet setting lifestyle and the dream of telling other people “you’re fired” that they willingly jump head over heels into big mortgages, ignoring the multiple bankruptcies credited to Trump.

I also get a feeling that perhaps what the banks did was the inevitable result of capitalism, and what the governments did was the inevitable result of democracy … truth be told no economic and political system is perfect, but unfortunately most of us are so enamoured we have neglected the due diligence that’s required of us, we have forgotten or not willing to face the burden that necessarily come with the benefits. After all, would the invisible hand be rational when all the individual actors are not?

#13 Dan in Victoria on 11.16.10 at 6:51 pm

Morgan Kelly.
Not the actor.

#14 timbo on 11.16.10 at 6:55 pm

perfect Garth..

thanks again for the books…..

#15 Crash Callaway on 11.16.10 at 6:58 pm

What’s happening in Europe is like the
“Weekend at Bernie’s” movie.
The body pops up in Greece, Spain, Portugal, Ireland.

Compulsory play.

#16 tigerbaby on 11.16.10 at 7:05 pm

and I see little point in blaming the education system either … you only need to know how to add and multiply to roughly gauge the true cost of loans and mortgages. In case you don’t know how to do those (and you wonder why the jobs are going overseas), there are loads of mortgage calculators available online. The reason why people don’t do it for a million dollar decision is simply because of Greed, the necessary and sufficient ingredient for any bubble. I am afraid many of the buyers who thought “real estate always go up” are even more guilty than the realtors for wanting to get paid a wad of money for doing f*ck-all; and no amount of math/accounting class will cure this.

#17 KS on 11.16.10 at 7:08 pm

It’s ok, Calgary’s different…

right?

#18 Makeorbreak on 11.16.10 at 7:14 pm

They will have to take reservations:

http://www.ctvbc.ctv.ca/servlet/an/local/CTVNews/20101116/food-bank-use-highest-yet-101116/20101116?hub=BritishColumbiaHome

#19 Get Real on 11.16.10 at 7:18 pm

Thanks Garth. Great advice

Unsurprisingly

http://ca.news.finance.yahoo.com/s/16112010/2/biz-finance-rbc-td-canada-trust-hike-mortgages-quarter-percentage.html

#20 Business Unusual aka the BUN on 11.16.10 at 7:26 pm

“Free AK-47’s Assault Rifles When You Buy a Pick-up Truck?”
http://www.businessunusual.net/ads/freeak47weirdadvertising/

Should we panic? Is this any sign of the economic times?

#21 Business Unusual aka the BUN on 11.16.10 at 7:33 pm

I agree with most of your financial strategy.

Can’t argue with paying down debts in a panic. 5 min ago I called my broker to transfer out cash to pay down debt in a ‘panic.’

However, I think equities are going down down down even if dividends are good.

BTW – at the bottom of the crash I scooped some income trusts that were paying ridiculous ROI’s … in the 10-28% range.

Be patient. The time be comin’

#22 Makeorbreak on 11.16.10 at 7:37 pm

http://www.leap2020.eu/GEAB-N-49-is-available-Warning-Global-systemic-crisis-First-quarter-2011-Breach-of-the-critical-threshold-of-global_a5458.html

#23 Right All the Time on 11.16.10 at 7:38 pm

Ah, a couple of days of volatility and already to throw the towel in on the market? Nothing like extrapolating a days stock market activity onto the overall state of global economic affairs. Gee, is not like we have not had these potential market changing events and headlines for 1.5 years now.

Ah, I forget bears like to point to every micro indicator and piece of bad news as being indicators that the collapse is coming in RE, that the stock market is going to test new lows, and that people should stock up on ammo and squirrel recipes.

Lets face it, the vast majority of bears here cheered the 2008 crisis thinking that it would speed up the demise of the RE market. Alas, the vast majority of you failed to anticipate that cheap credit would pump the RE and stock markets. From 2008 on, every couple of months a potential market changing event would occur (other nations raising rates, end of economic stimulus, etc) and the cries for an end to the “deadcat bounce rally” in both the RE and stock market came forward.

Today’s events are no different. In good ol’ Vancouver, sales are on a tear. While I pointed out last month how sale/list ratios had become incredibly bullish, many of you mocked me for pointing to one days list sell ratio.

Well after more than a month of a sales tear, I guess you can go hibernate in your caves once again. After all, the collapse is just around the corner in…ummm…2011. Yes, it will be 2011 because 2008, 2009, and 2010 didn’t work for you…

#24 Utopia on 11.16.10 at 7:51 pm

And then we have this…..

A 15 story hotel in China that was constructed entirely in only 6 short days. Gee, I wonder if they are building a bubble over there?

http://video.ca.msn.com/watch/video/a-tall-tale-china-hotel-built-in-six-days/17y1jhh9w?from=en-ca-infopane

#25 T.O. Bubble Boy on 11.16.10 at 7:59 pm

Another impact that Garth failed to mention:

Higher Fixed Mortgage Rates (like TD’s after today’s hike) = Higher CMHC Qualification Levels (since these are based on the Banks’ posted 5-year rate)

It just got more difficult for newbie buyers to qualify for those 5%/35-yr mortgages… a few more of these fixed rate hikes, and a domino effect will begin.

#26 Timing is Everything on 11.16.10 at 8:00 pm

“The number of new homes built in Greater Victoria will hit 2,100 by the end of the year — nearly double last year’s total — and then edge down slightly in 2011, says Canada Mortgage and Housing Corp.”

http://www.timescolonist.com/business/CMHC+predicts+home+starts+double+last+year/3834545/story.html

#27 Larry on 11.16.10 at 8:02 pm

“Don’t ever be Ireland” So true, i left that Island many years ago, great people, beer and craic but always trying to keep up with the Jones. I was back during the Celtic Tiger times and was shocked at what my native country had become. Sadly the Irish were greedy little bastards and now that the tide has gone out. Thank God Canadians are not (Sarcasim intended). Cheers Garth i’m off for a pint of Guinness.

#28 Leanne on 11.16.10 at 8:08 pm

Sounds like we might be needing these soon…

Squirrel Recipes:

http://www.itv.com/Lifestyle/MarcosGreatBritishFeast/Recipes/Squirrelwithwalnuts/default.html

http://www.backwoodsbound.com/zsquir.html

#29 Timing is Everything on 11.16.10 at 8:10 pm

So what does this mean in, like, Etobicoke or Airdrie? – Garth

Where’s Etobicoke? Oh, you mean Toronto. It’s all the same to me. Is it different in Etobicoke?

#30 T.O. Bubble Boy on 11.16.10 at 8:14 pm

“The 905” (Toronto burbs) are in trouble: based on mid-month November stats, detached house prices are up 0% from 2009, and condo prices are down 2%.

The 416 area is doing pretty well — prices up 12% for detached houses and condos, despite the number of sales going down -12%.

I’d be interested to see the Median Price… I have a feeling that the median increases would be far less than the average price increases.

#31 virginhomebuyer on 11.16.10 at 8:17 pm

Garth, aren’t you worried that nobody will be able to afford your books?

There’s always the library. — Garth

#32 jess on 11.16.10 at 8:34 pm

Mike Smyth, an economist who sits as an adviser on the EU’s economic and social committee in Brussels, stressed that protecting this low capital taxation is of paramount importance to the Irish government. “One of the main reasons why the Irish government is reluctant to accept an EU bailout is that the quid pro quo for billions of European aid would the revision of Ireland’s low capital tax rates.

They fear that the EU will ask the Irish to review their low taxation rates for corporations. Even if news broke out that there would to be a revision that could be enough to spook chief executives all around the world who were thinking of investing in the Republic,” he said.

Smyth said the removal of Ireland’s right to impose its own capital taxation rate would be a serious blow to the country’s overall national sovereignty.

============================
Multinationals’ ability to substantially lower their tax
burden by routing capital flows through mailbox compa-
nies in tax havens provides them with unfair competitive advantages vis-à-vis their – often smaller – competitors in developing countries

#33 Junius on 11.16.10 at 8:35 pm

#23 RightAlltheTime,

Yes, Mr. Right. We throw in the towel. You cannot possibly be wrong.

Please go out and buy to the max with the biggest mortgage possible. Since we cannot for fear of leaving our parents basements we must live through you and all your maxed out glory.

I promise to praise you in your foresight and bow to your wisdom in hindsight in several years when your new purchase has doubled or tripled in value.

I recant my previous views in light of your bold and matchless arguments. They are too much for my small bear brain.

I look forward to hearing about your new glorious purchase o wise and humble one.

#34 RickOShea on 11.16.10 at 8:36 pm

Free AK-47′s Assault Rifles When You Buy a Pick-up Truck?

When they’re offering a free truck when you buy an AK-47 — that’s when you start to worry in earnest.

#35 Junius on 11.16.10 at 8:39 pm

#23 Jerkallthetime,

Just so I understand this o glorious one when you say, “Well after more than a month of a sales tear” you define a “tear” as one day in a month when sales surpass listings.

Good to know. I would have thought when we have more listings in a month than sales it was cause for concern but obviously I don’t know math like you do. Thanks for clarifying.

#36 Jsan on 11.16.10 at 8:42 pm

I lost count at the very beginning of the US housing meltdown of all of the voices who declared that the worst was over. You could not turn on CNBC or the US evening news without some economist, bank, developer or other Real Estate vested company or person declaring “the worst is over” to this “temporary” slowdown and decline. They eventually gave up declaring “the worst is over” after saying it a dozen times in as many months.

It’s too bad for all of the suckers who once more got sucked into over paying as the slide continued for months and even continues to this day. Bubbles are very hard lessons to learn.

#37 hobbygirl on 11.16.10 at 8:43 pm

I’m still waiting for the day of reckoning on the stock market, for plunges in the high three digits, wait for bottom to hit and then vulch (non-renewable energy stocks, and buy a piece of the bank). Then sit back and wait 20 years for payday and retirement. Maybe a lot longer if I’m wrong, but I think I’m making a safe bet.

#38 TaxHaven on 11.16.10 at 8:47 pm

It’s oxymoronic to believe that the any one person can simultaneously believe “housing is in a nascent renaissance” and “gold will go to two grand”.

The two are mutually exclusive economic bets.

#39 Ben on 11.16.10 at 8:56 pm

TD Canada Trust and the Royal Bank of Canada said separately that they are increasing some of their fixed-term mortgage rates by as much as one-quarter of a percentage point, effective Wednesday.

At both banks, five-year mortgages, one of the most popular among Canadian homeowners, will rise by 0.25 of a percentage point to 5.44 per cent.

#40 Nostradamus Le Mad Vlad on 11.16.10 at 8:58 pm


“Don’t they know about Greece and Ireland? The US real estate depression? Ottawa’s $50 billion deficit? The HST? The housing bubble? The recession? Or did they forget the panic they felt in the winter of ’09? Try all of the above.”

Indeed. Toss them all into the same Duncan Hines cake mix, stir accordingly then flush them thar sheeple down the toilet.
*
Dow Dumps “All Goldman’s horses and all Goldman’s men, can’t put this one back together again!

“Remember that every financial institution involved in plunge protection has vast blocks of stock on their balance sheets. In a major stock drop, these institutions will be instantly insolvent. No doubt Bernanke’s phone is ringing off the hook with begs for more “instant cash” (printed at your expense) to prop the charade up for just one more week!” wrh.com.

Surviving Inflation. Argentina post-2001.

More Shit Hitting The Fan “I warned you this would be back after the election was over! HR 3808 is the bill that allows banks to evade the question of MERS and who actually has the note to a property by substituting a notarized statement in place of the actual mortgage paperwork. Do you still believe this government speaks for the people?” wrh.com.

No, I don’t believe that any govt. works for people anymore; they are controlled puppets. The elite are the masters, sheeple are serfs.

4:41 clip Some jackass says Ireland (which is broke) should take out a loan to pay off their debts. Huh?

Permanent Bailouts Where do I apply? Sign me up!

November 30 is the last date mentioned for a ‘net takedown. Not sure whether it includes Canada — Harper + minions are in Obama’s (and therefore Soros’ and the elite’s pockets). Might be a good time to think of a Mac, or Linux / Ubuntu instead of Silly Billy’s Microshit. Also — 5:44 clip.

Nov. 30 is also a hypothetical date when TSHTF, but that seems to have been brought forward.

5:40 clip Ireland, like Poland, Iceland and Latvia are under the control of the IMF. Aren’t there Rothschilds / Rockefellers sitting on the IMF? Plus — Silly Season Bloomberg is this brainless (unless they are controlled by others)? “Ireland and Portugal need bailouts. Will it crash the EU? China holding Russian/Brazilian currency to avoid the world’s reserve currency — a post US dollar era?”

Xpurts “We are not at war with Iran. Iran is our friend. Iran has always been our friend! We are at war with China! China is our enemy. China has already been our enemy!” — Big Brother. Would these experts the same ones that told us the RE doowop would never happen?

Geithner “Brilliant TAKEDOWN of Bank of America by an anonymous hedge fund manager.” Keep in mind that BoA is (apparently) on the hook for all the toxic mortgages, so as with Bear Stearns, BoA may just be allowed to slip quietly into the afterlife.

Funny Money China seems to have taken a wide berth.

Pull The Plug on crooked criminal banxsters and politicos, including president’s and prime ministers!

Live by the sword, die by the sword. Revenge is a dish best served stone cold!

147 Pensions have gone broke so far. “It noted that 147 pension plans failed, up from 144 a year earlier.” What happened to the I.T.’s? Ahh yes: C-H-F.

Comment by wrh.com is much more interesting: “The fighting in Yemen is escalating because the US in invading, and the reason is clear why this is happening today. The DOW is down about 200, and as a result, many of the financial institutions that helped with plunge protection for the last two administrations and carry huge blocks of stock, on their balance sheets might well be insolvent as of this moment. So, let is return to history.

“The US Government got out of the economic crisis of 1907 by getting into WW1. The US Government got out of the economic crisis of 1929 by getting into WW2. Here we are in the economic crisis of 2007 and look how hard the US is trying to start wars with … everyone.”
IMF — International Money Fraudsters. Meet the elite!

#41 realpaul on 11.16.10 at 8:59 pm

Indeed Garth..they can’t find buyers for Greek, Irish, Portugese or Spanish bonds……and the next show to fall is the satellite Eastern Bloc that has been on lifesupport….even at 10 and 11%…there is no private money coming in.

The EU and other governments, ours included are buying their own bonds to keep the ZIRP scam going. The national debt of every country ..Canada included is skyrocketing…never mind the headline number of the 55 billion dollar deficit…thats good news compared to the debt.

So ..as the debt market backs off we see that it is only the government willing to offer outlandishly low rates to consumers…beyond that rates have no cieling…its everyman for himself…..we have a slightly better credit profile…but that doesn’t mean that rates can’t shoot up double and triple to what they are…as we see from the EU example.

EU took a while to hit the debt wall but when they did ….splat…we can expect the same furious turn of events happen here….suddenly…quick….nasty.

And BTW…turns out it wasn’t ‘swamp gas’ in Mexico that killed those people after all…the Mexicans were just makin that shit up.

Funny that one of the people interviewed had complained that she had smelled a sewage smell and was told that it was also ‘swamp gas’ but when she asked what the detrious was in the ocean she was told that it was ‘swamp runoff’. People……..look for a sewage processing plant nearby your hotel strip before you get into the water. If you don’t see one…then it probably means that the hotels are pumping the sewage directly into the ocean in front of the hotel.

Vancouver and Victoria do this…do you think the hoteiers in Cancun are putting in sewage treatment plants to make us look bad? Where do you think the poo poo go’s? If ‘super rich’ Vancouver pumps over 800 million liters of fresh o into the pristine waters of English Bay every day…do you actually think the Mexicans are doing any differant. Its a good thing you can’t swim in the water here in Vancouver but when you do in Mexico…well sweety…….don’t swallow.

#42 Brian1 on 11.16.10 at 9:03 pm

I saw Shilling tonight on Lang Oleary. It seemed he was talking out of both sides of his mouth. Unusual. He said it was a good thing this crisis was taking so long or we’d have a depression yet he thinks they should hurry and get it over with (stopping QE). Which is it Gary?

It could be there is no intention of continuing QE but they are really trying to psychologically prepare the American public for austerity or maybe it is a last chance to take some major debts back into the banks because of the high ratios created from QE.

#43 theletterM on 11.16.10 at 9:05 pm

“Most people have had so much sunshine blown up their rear ends they glow in the dark.”

Truer words have never been spoken!

#44 BrianT on 11.16.10 at 9:08 pm

Chris Whalen says Cali will default (which would be the logical move if the legislators were actually working for the economic future of California) http://www.businessinsider.com/california-default-2010-11

#45 Utopia on 11.16.10 at 9:09 pm

“In recent hours stocks have been chewed up. Gold plunged again. The dollar stumbled. Commodity prices crashed. Bond yields soared. So did the US dollar. This wasn’t in the game plan of those who thought economic shocks were passé….” —Garth

——————————————————-

The Canadian housing bubble may indeed be only one “stock shock” away from the correction many anticipate.

The double whammy of rising rates in the bond market meanwhile is sending a chilling message to indebted home owners.

For now, I see the US dollar rally as a corrective and much anticipated bounce and am not altogether too concerned. Even without the Euro troubles being reignited, a dollar bounce was fully expected.

Further, the technical guys have been warning of a downdraft in precious metals and commodities for two weeks already, so again this was not a big surprise.

I remain partial to an ongoing commodity boom and a generally continued and ongoing rise in gold prices and so see this as a welcome pullback that will offer up tremendous buying opportunities in the near future.

None of those remarks should suggest we be complacent though. Debt is still dangerous and I wholly agree Garth that the story of our future is not written yet.

Keeping all your eggs in one basket, be it real estate, gold, bonds, stocks or cash, is foolhardy at a time like this. The key word is “all”. Even squirrels have the brains to store their nuts and seeds (wealth) in a wide variety of locations.

In case anyone had not noticed, the world is getting to be a more dangerous place to invest, not an easier one. So that should be telling us that diversification is essential to surviving the unknown pitfalls that lay ahead.

So where will YOU run and hide?

#46 kitchener1 on 11.16.10 at 9:12 pm

Rough day on the markets. Bond yields are spiking and will continue to do so just like they did the first time Bernake tried QE.

Silver/Gold are hurting as they have raised min margin requirements for them, same will happen with cotton/corn etc…

South Korea/China both raised rates, will see if this spreads past asia but if it does, Canada will follow. The US does not have to raise rates yet as their currency is always seen as a safe one.

Soft landing, LOL, lets see the soft landing when 5 year rates are at 7%.

#47 HouseBuster on 11.16.10 at 9:13 pm

There’s no way the EU will not bailout Ireland or whomever. And every time China talks their economy down and slam commodities they are busy buying behind all the resources they can behind the scenes at reduced prices.

After a couple of days of beatings…today was a good buying opportunity for those stocks that got hammered. IMO.

#48 Spiltbongwater on 11.16.10 at 9:16 pm

#20 Business Unusual aka the BUN on 11.16.10 at 7:26 pm
“Free AK-47′s Assault Rifles When You Buy a Pick-up Truck?”
http://www.businessunusual.net/ads/freeak47weirdadvertising/

Should we panic? Is this any sign of the economic times?
.

I wonder if they thought out on how they are going to repo to truck if the owner is not willing to pay.

#49 dd on 11.16.10 at 9:21 pm

#10 Junius

…One of those days that should give the pumpers of Re and Gold pause. It won’t – of course. But it should…

Oh I paused. Heard the press saying that “Euro is bad, US dollar good.” So the dollar rallies and Euro slides. Say, isn’t this a repeat of a repeat? Too funny.

#50 palebird on 11.16.10 at 9:21 pm

Been a while since I have been in Calgary but wow,the sprawl is incredible..and ugly.. walking around Kensington could not believe how many of the ww2 era bungalows had been torn down and replaced with chipboard palaces, reminds me of Van..

#51 realpaul on 11.16.10 at 9:22 pm

The number of civil service parasites has grown dramatically in the past few years…now higher numbers of parasites than ever have been promoted to the top tier of pay and pension benefits. They work less and get to take any number of unquestioned days off. Any wonder why the number of poor in this country is skyrocketing….wonder why your taxes have gone through the roof?

http://www.theprovince.com/opinion/Guest+column+Civil+servants+from+overworked+underpaid/3833868/story.html?cid=megadrop_story

Its a field day for pigs at the trough…this at a time when Canada’s national debt has surpassed the USA and Great Britian……this can’t be good.

http://globaleconomicanalysis.blogspot.com/2010/11/interactive-map-of-global-debt.html

#52 john on 11.16.10 at 9:33 pm

I think Canada is in more debt that Ireland when you factor in all Provincial and Federal Debt. Debt per % of GDP is higher for Canada. Australia very low and they are in very good position.

#53 TheBestPlaceonEarth on 11.16.10 at 9:36 pm

Soooooo, the Resource Sector has a few bad days after an exceptional few months and some people are throwing in the towel. Please, if you have this mentality do not buy resource stocks. The last couple of days were great days to start a position or buy more on weakness. Part of this site is about Real Estate. The only thing standing in the way of explosive movement is Canadians. I look forward to higher interest rates and unemployment. I want to shake out the weak hands, and we all know who that is – Canadians. Bag loads of money from Asia is coming to Vancouver, they are buying everything in site. The best thing now for Vancouver is for high unemployment and high interest rates, bring back 5 years at 23% and lets get the Canadians out of here once and for all. Asia will mop up the bids and then watch us really soar. I don’t have anything against Canadians but they have no business being in Vancouver. This is the BestPlaceOnEarth and unfortunately this means it is a place of exlusivity for the creme de la creme. We all know Canadians just don’t fit that mold. Recession, Depression, Stagflation, Inflation, Deflation, the World of the Mega Rich want the Dream

#54 bigrider on 11.16.10 at 9:50 pm

#30 T.O bubble Boy

No way TO proper up 12% and burbs flat (0).

Way to general. In fact if you take an average of all suburbs and all TO ,% increase/decrease will look identical.

Also, increase in RE prices over past 10 year bull market for RE burbs verse city proper within 20% TO proper ahead by small bit.

There seems to be a big delusion that city limits so much higher then burbs and it is simply not true

#55 NotAGreaterFool on 11.16.10 at 10:13 pm

On the subject of mortgages, why isn’t a bigger deal being made about the new TD collateral mortgages? I know Garth spoke talked about this subject not to long ago but not a word from the mass media?!

http://gailvazoxlade.com/blog/archives/2230

#56 Sam on 11.16.10 at 10:18 pm

Garth,

I think you should give up and pack up.

#57 BAD on 11.16.10 at 10:19 pm


Garth wrote:

For example, it now seems all but certain those long-term mortgage rates which have been inching down – taking a five-year mortgage to less than 3.5% – will be on their way back up.

They already are on their way up:

TD Canada Trust and the Royal Bank of Canada said separately that they are increasing some of their fixed-term mortgage rates by as much as one-quarter of a percentage point, effective Wednesday.

At both banks, five-year mortgages, one of the most popular among Canadian homeowners, will rise by 0.25 of a percentage point to 5.44 per cent.

Mortgage rates move higher

Meanwhile more and more Canadians are going hungry:

HungerCount 2010, an annual survey of the nation’s food banks, suggests the 2008-2009 recession has taken a direct toll on Canadians. And although the economy is recovering, hunger continues to grow.

Food bank use in Canada hits highest level on record

Well at least we have Glodilocks RE, eh?

So everything seems to be “hunky-dory” except for that pesky body count…

#58 Jeff Smith on 11.16.10 at 10:29 pm

#11 Dean, the bubble watcher on 11.16.10 at 6:37 pm
“Don’t ever be Ireland”…… Gulp….. It looks like we’ve got them beat as for debt per g.d.p. and public debt per person. Check the link:

http://www.economist.com/content/global_debt_clock

Mish Shedlock explains this interactive debt map further:

http://globaleconomicanalysis.blogspot.com/2010/11/interactive-map-of-global-debt.html

No kidding it’s time to be liquid! Time to make sure the neighborhood attracts a lot of squirrels

The west is in huge debt.

#59 ulsterman on 11.16.10 at 10:34 pm

Re: Post 11 and the debt clock: Give the numbers, can someone explain how Ireland is staring into the abyss and Canada is being touted as a paragon of fiscal responsibility? I don’t get how this works.

#60 Basil Fawlty on 11.16.10 at 10:34 pm

The story is that the big problem in Ireland is the banks and that the Irish government committed to back their bonds. The Germans are helping push Ireland to accept a bailout, since their banks have exposure to those in Ireland. The last thing the people in Ireland and other EU countries want is a bailout package put together with help from the IMF, since this will mean austerity measures.
People are getting fed up with reductions in their standard of living to bailout the insolvent banks and in Europe they tend to get right vocal and take to the streets. On Wall Street the estimated total compensation for 2010 is $114B, for a group that ran the financial system into the ground and had to be bailed out. In Europe people are marching in the streets, in North America we watch “Dancing with the Stars”. Privatize the profits, socialize the costs, it’s pathetic. Same as it ever was, same as it ever was…

#61 smw on 11.16.10 at 10:36 pm

Schiff & Prechter inflation / deflation debate…

(1.) http://www.youtube.com/watch?v=Sq_WMkiS2jE

(2.) http://www.youtube.com/watch?v=EOeRM3cAfEc&feature=related

(3.) http://www.youtube.com/watch?v=j0V7g_PdR1w&feature=related

(4.) http://www.youtube.com/watch?v=mJOnlbdcOHI&feature=related

#62 UrbanCowboy on 11.16.10 at 10:47 pm

Lets not confuse precious metals with base metals. Precious metals pulling back after a big tear and will consolidate, before another move. World currencies will continue to lack investor confidence thus silver/gold will continue to be safe havens. Base will suffer if production and the economy lags.

#63 T.O. Bubble Boy on 11.16.10 at 11:09 pm

@ #53 bigrider:

I didn’t make those numbers up, they are from the GTA Real Estate Board (TREB):

http://www.torontorealestateboard.com/consumer_info/market_news/news2010/pdf/nr_mid_month_1110.pdf

#64 Utopia on 11.16.10 at 11:18 pm

#58 ulsterman on 11.16.10

“… can someone explain how Ireland is staring into the abyss and Canada is being touted as a paragon of fiscal responsibility”?
———————————————————

Ireland has been a knowledge economy for some time. It is poor in resource wealth relative to it’s population and therefore constrained in it’s options to raise capital when it’s economy is hurting. It does not, in blunt terms, have the hard goods that can back up it’s words if it faces default. Canada does.

#65 hmm... on 11.16.10 at 11:19 pm

(f) Worried money has streamed into the US dollar, like it always does. That clobbered everything denominated in greenbacks, like gold and our dollar. (g) Yields for US bonds have jumped to the highest level in most of a year as the spectre of a global debt mess rears its unpleasant head.

I hate to say that, but, should the yields collapse when money flows in….? hmm..?… well??

#66 vreaa on 11.16.10 at 11:30 pm

Vancouver House,
$548K in 2000, $2,468,000 in 2010

Realtor Opinion: “You have to take a deep breath and realize that the world you thought you knew is not as it appears. You must understand and accept that there is untold wealth that exists within our city. A paltry $2.5 mil is chump change. What we are experiencing now is only a beginning.”

http://wp.me/pcq1o-1xQ

#67 Soylent Green is People on 11.16.10 at 11:41 pm

Ottawa’s $50 billion deficit? You mean Harper’s $50 billion deficit.

The two main problems I have with Harper are:

1. He killed democracy in Canada.

2. He blew a $ 34,000 MILLION surplus and racked up a $ 64,000 MILLION deficit.

http://www.thestar.com/news/canada/stephenharper/article/825809–travers-changing-canada-one-backward-step-at-a-time

~~~~~~~~~~~

http://www.urnews.ca/2010/11/ireland-returns-to-pathos/

Gov­ern­ment offi­cials promised to respond first with com­bat­ive bravado, then vio­lence and finally maudlin self pity.

#68 Right All The Time on 11.16.10 at 11:44 pm

#34 JUDAS

Just so I understand this o glorious one when you say, “Well after more than a month of a sales tear” you define a “tear” as one day in a month when sales surpass listings.

Good to know. I would have thought when we have more listings in a month than sales it was cause for concern but obviously I don’t know math like you do. Thanks for clarifying.
************

Ummm, actually if you look at the daily sell list ratios, you will note that the ratios are in the 70 – 80% range which is bullish. Also, you will note that inventory is going down, not up, and that inventory levels have dropped from the 20k bear party levels in the summer back to something closer to the boom years.

Yes, we did have one day where the sell list ratio was over 100%. But days where the sell list ratio are in the 70-80% range are actually bullish. This bullish range has been in effect for over a month now.

You seem to be a amateur at this real estate thing. I am getting tired of explaining things to you and pointing our your logical fallacies. Do we have to re-examine your brilliant posts on asian investors.

#69 Utopia on 11.16.10 at 11:54 pm

I should have added Ulsterman, that the US too has tremendous assets available that back it’s use of wealth. Too many people are doing simple arithmetic of digital transactions between nations and debt. They often fail to consider what wealth really is made up of nor how it can be employed.

Resources are at the heart of wealth. For individuals this might be gold or silver. For countries it is iron, water, food, copper and lumber as a few examples.

When you read in the 80’s that Ethiopia had run out of food and millions were in a famine did you think “but they are a rich country”?

Of course not. With a population exceeding 82 million, a land defoliated from end to end, few active mines, a political system in dissaray and virtually no productive capacity we all knew they were dirt poor. They are still dirt poor and famine awaits each season depending on the rain.

The difficulty Ireland is now experiencing is one of wage rates substantially above competing rates in developing nations and Asia.

We have discovered with the advent of broadband and wireless that the best brainpower can be sourced in some of the poorest countries. A knowledge economy is a very risky model in a hungry world.

What company wants a unionized, mortgage strapped, spoilt and demanding workforce that demands new benefits each year, more childcare services, extra health benefits and sick days when you get all the real goods (the brainpower) for next to nothing in countries offering a similarly educated workforce?

And that is why it all comes down to what is in and upon the ground itself and what you can produce from it.

And this is in essence why Saskatchewan has rebuked a foreign takeover by BHP Billiton and why our legislative acts regarding foreign takeovers and ownership are about to be reviewed and amended.

If we keep ceding control of our gems to overseas interests then we will have lost the one real bargaining chip that can actually keep us out of the poorhouse.

Resources.

#70 Harry Cho on 11.16.10 at 11:59 pm

Whassup Jeff Smith.

Nice links. So “the west is in huge debt” huh and to those damn foreigners nonetheless. LOL

What some people fail to understand is that the lenders are actually in more trouble then the borrowers.

In other words Uncle Benny and his western cavalry have those damn foreigners mostly Chinese over a barrel.

Even on a micro level, who needed the bailout US banks or defaulting borrowers?

#71 reality, doesof on 11.17.10 at 12:08 am

Plenty of individuals making bad real estate decisions.

But plenty of professionals and semi-pros. Some of the old-timers provide great perspective to new real estate investors.

So You Wanna Be A Real Estate Developer:
http://www.planbeconomics.com/2010/11/16/so-you-wanna-be-a-real-estate-developer/

#72 Porteño on 11.17.10 at 12:23 am

Why are you advocating bonds in a rising interest rate environment? Won’t prices be falling?

Balance, dude. And knowing when to buy. Rates are just one driver. — Garth

#73 palebird on 11.17.10 at 1:00 am

How many of you have been to Ireland? How many have been to Dublin and worked with Anglo Irish on millions of dollar deals? Maybe one or two maybe?? I thought so.. Ireland has absolutely nothing special to offer other than a penchant for taking risk and the gift of the gab..and guess what..it caught up to them..so be it..any other bets? no I think the Irish are off the table for a long while now, especially cause the powers that be in the eurozone cannot stand these upstarts and would like nothing better than make them eat crow (potatos) and keep their smart mouths shut..and so it goes..

#74 Nostradamus Le Mad Vlad on 11.17.10 at 1:04 am


Next in line: Commercial RE.

Europe to collapse faster than expected? Wouldn’t be at all surprised.

Whoops! Who started the fire?

Describes Black Tuesday’s events quite nicely. Plus California.

US$650 billion exposure from European banks to Ireland, so can Ireland bail out Hamtramck in mid-town USA?

Beck on Soros More blather.

Iris Scanners Orwell was right, got the date wrong. One outta two ain’t bad.

At last! Carbon taxes are a scam, so says the Greek PM.

Like Water For Chocolate Enter Monsanto for GM chocolate! Eat yer Smarties quick!

Another industry leaves the west for the east.

Quakes are one thing, ice age is another. Here both are joining together. Posts further down seem to indicate this. There were (at last count) a series of 38 almost continual ‘quakes in the Gulf of Aden.

Sumtin’ smells kinda strange, unless China turns more of its debt holdings in material assets.

#75 Joseph [Original] on 11.17.10 at 1:09 am

Yet another tremendous entry. How you keep both your feet so firmly planted in reality when you (like the rest of us) keep reading all of the hype on Canadian real estate is beyond me. This place always brings me back to a sane focus because, I have to admit, I get affected by the news and at times feel like an idiot for not have thrown all my cash into a house!

#76 JB on 11.17.10 at 1:11 am

A couple of bad days on the TSX and gloom and doom.

But some of us are going shopping…on the TSX.

Yummy yummy dividends.

Keep selling. And people like me will keep buying :)

#77 Blacksheep on 11.17.10 at 2:43 am

Canada cannot default on debts in it’s own currency unless it chooses to.
Ireland can,will & should default (restructure?) do to it’s lack of a sovereign currency, before it becomes a slave to the IMF.
Euro’s going down.
take care,
BS

#78 Thetruth on 11.17.10 at 3:01 am

#69 Utopia

Well said.

#79 TheBestPlaceonEarth on 11.17.10 at 3:03 am

Garth,
It’s time to take your ball home. No one wants to play anymore. Real Estate the past decade has been a triumphant success to say anything else is just plain wrong. Going forward Cities where Canadians have invested will be hurt but juggernaut Vancouver with billionaires from Hong Kong to Dubai will explode – This is one for the history books folks. Xanadu=Vancouver. God Bless and God Bless Vancouver and God help the rest of Canada

#80 GTAInsider on 11.17.10 at 4:42 am

Just past by a downtown new site (Yonge and Eglinton) free PUMP UP dinner banquets offered by the developers , results : over 400 Asians shown up even we received a severe weather warning, over half of them are YOUNG Asian guys and girls who wants to own a piece of the so called T.O landscape…WOW !!!

#81 Tony on 11.17.10 at 6:05 am

Well yields went up one day and down the next. Interest rates seem to stil be on a down trend in Canada and sideways in America. Like i’ve said before where do you get these quote higher rates from? The smart money in Canada will still be in a variable rate mortgage.

#82 Tony on 11.17.10 at 6:23 am

RE: #68 Right All The Time

Have you ever heard of western Canada? You know British Columbia and Alberta. They do exist you know. Both are dead and buried on the sales to list ratio.

#83 Herb on 11.17.10 at 8:05 am

unrealpaul @ #51,

to cite what our host added to Comment #83 at 9:17 am on 8 Nov –

Stupid comment. PS salaries are generally substandard to those in the private sector. The DB pension plan is meant to be the leveler, but should probably become DC. — Garth

But don’t bother checking facts. Just stick to beating the drum of unqualified opinion.

#84 bigrider on 11.17.10 at 8:06 am

#63 T.O Bubble Boy.

I read your link. Yes I am and was already in agreement that past year had seen a rise in T.O proper prices and flat price increases in the suburbs. I suppose this lends to the argument that the price melt, as Garth infers and we both agree on I think, starts from the outside and moves inward.

My point was that the price appreciation we have seen over past 12 years or so in this bull market for RE has affected both the city and suburbs about the same ,or within 20% or so.

City property price appreciation on a percentage basis has not outstripped the burbs by any really large margin..that seems to be an illusion.

If you owned a townhome at Yonge and hwy 7 for 200k in 1998, it is worth 500k today. A home purchased at Yonge and lawrence in 2000 for 500k worth 1.2 mill to 1.4 today, same 150% price appreciation or so.

#85 HouseBuster on 11.17.10 at 8:54 am

I still don’t get it… why would anyone want to live in Vancouver?

#86 AM on 11.17.10 at 9:02 am

#68 Right All The Time on 11.16.10 at 11:44 pm

So now the sell list ratio is your basis for the recent bullish numbers in Vancouver. Have you not realized that the sales side is way down along with listings. Using your logic, if on a given day in Vancouver there are only ten new listings but 9 sales, then Vancouver is on fire. NOT!

Have you even considered that listing are drifting down as they would typically do this time of the year. Fewer people want to deal during the Christams season.

As this plays out, I suspect that the spring cycle will bring even more listings, and a whole new ball game. On top of that we will likely have even higher fixed mortgage rates. I’ll let you do the math from here since you claim to be smarter than the rest of us.

#87 The Original Dave on 11.17.10 at 9:06 am

Garth,
It’s time to take your ball home. No one wants to play anymore. Real Estate the past decade has been a triumphant success to say anything else is just plain wrong. Going forward Cities where Canadians have invested will be hurt but juggernaut Vancouver with billionaires from Hong Kong to Dubai will explode – This is one for the history books folks. Xanadu=Vancouver. God Bless and God Bless Vancouver and God help the rest of Canada
——————————————-

you keep telling yourself that. It’s too bad the super rich from Dubai have fled their local real estate market. The party was the same in Dubai as it is in Vancouver. The party is over in Dubai now. I think they’re able to understand what’s coming to Vancouver.

#88 GregW, Oakville on 11.17.10 at 9:12 am

Hi Garth, fyi re: f

Oakville Chamber of Commerce Lunch
Hon. Jim Flaherty
Federal Minister of Finance
Monday, November 22 (11:30)12-2
“Current Economic Environment & Priorities for the Upcoming Budget”
http://www.oakvillechamber.com/event_register.aspx?event_id=440&date=2010/11/22

#89 GregW, Oakville on 11.17.10 at 9:22 am

Hi Garth, re: pic, it might be funny if not true.

Who put the # on her?
Why is no one spotting?
Some make fun of weight,
but pay little attention to
what people are forced to
drink and eat.
Fluoride was once used to treat
over active thryoids.
Thryoids help control your bodys
systems.
Why are we all being forced to drink
fluordiated water still? It is toxic!

#90 Toronto on 11.17.10 at 9:22 am

you heard it folks …the rates are going up …better buy a house before they go up.

Flip side… rates are low…time to buy now…

realtors will always have a sales pitch

#91 dark sad person on 11.17.10 at 9:22 am

In recent hours stocks have been chewed up. Gold plunged again. The dollar stumbled. Commodity prices crashed. Bond yields soared. So did the US dollar. This wasn’t in the game plan of those who thought economic shocks were passé, Yankee dollars were going to zero, gold was on its way to two grand an ounce or real estate was in nascent renaissance.

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

And don’t try and post anything counter to that statement-or it wont get posted-
even when its the truth–

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

#10 Junius on 11.16.10 at 6:32 pm

Garth,

One of those days that should give the pumpers of Re and Gold pause.

It won’t – of course. But it should.

*******************
Tell us why it should-
Tell us all you know about it-
I understand your main focus is on DA and RE-but it
sounds like you’re ready to take on the goldbugs-so-why not show us why 1 or 2 down days should give us “pause”

#92 Got A Watch on 11.17.10 at 9:34 am

“Most people have had so much sunshine blown up their rear ends they glow in the dark.” LOL Garth thanks for the laugh.

Think of the real estate market as the cheerleader in the photo above. The product of a decade of pigging out on fast food, cookies, chips, and soda pop.

———————————————————–

“Xanadu=Vancouver” = “‘super rich’ Vancouver pumps over 800 million liters of fresh o into the pristine waters of English Bay every day…do you actually think the Mexicans are doing any differant.” One is the truth, the other a lie, can you guess which is which?

In Xanadu, they don’t dump their sewage water into the ocean. They do that in 3rd world countries. And Vancouver. And Halifax.

That is why I hold the politicians and residents of these cities in absolute contempt. At least Halifax and other East Coast cities have some excuse, they really can’t afford it, but it should have been done many decades ago with help from our pathetic Federal Government. In Vancouver, what is it, again? Might have to cut back on the latte budget? Oh well, can’t afford a proper sewage plant then.

Vancouverites are always falling all over themselves as to how ‘Green’ and super environmentally friendly they are. I have a friend there, several degrees, fancies himself on the “cutting edge of Green science”, but actually the only green thing he sees daily is the bud he smokes. Always lecturing me about how “sustainable” and oh so nature loving he is, and trying to sell enviro/green products he invents, that nobody seems to want to pay any actual money for. Another idiot who likes to claim Vancouver is oh so planet lovin’. 3 college degrees, and collects “farewell” because nobody wants to hire him. Our last e-mail exchange, I lost it, and told him what I really think of him and his green moldy bullshit, have not heard from him since. Good riddance.

The utter hypocrisy stinks like, umm, the sewage they are dumping into the ocean. If I was a fish, I would start an anti-Vancouver armed resistance group, and seek to rid the planet of the burden of these delusional hypocrites.

The next time some greenie idiot from BC lectures you about how much they love the planet, pour a bucket of that fresh chunky “water” from English Bay over their heads.

#93 GregW, Oakville on 11.17.10 at 9:40 am

Hi #4 BrianT, thank for the 1-1/2min video link to

The tsa is not going to do ‘SEX’ to me.
http://market-ticker.org/akcs-www?post=172442

I sent it to my wife. I told her last week I will not fly with her to the USA until this stops. Cuba or anywere else would be ok for vaccation.

#94 Xnilo on 11.17.10 at 9:44 am

Masters of real estate?

Homburg University would focus on research and professional training in real estate, including such subjects as property appraisal, finance, banking, planning and construction.

http://ca.news.yahoo.com/s/cbc/101115/canada/canada_pei_pei_homburg_university584

I can already see the course listings: Pump & Dump 101, Bidding wars 102, House staging 105.

#95 BrianT on 11.17.10 at 10:01 am

#92Greg-even Taiwan is commenting http://www.youtube.com/watch?annotation_id=annotation_461991&v=TBL3ux1o0tM&

#96 Soylent Green is People on 11.17.10 at 10:18 am

http://cowboysforsocialresponsibility.blogspot.com/2010/11/how-does-jim-flaherty-get-something-so.html

How does Jim Flaherty get something so obvious so wrong so quickly?

In August 2010, Standard and Poors downgraded Ireland’s credit rating.

By coincidence or design, failed Ontario Tory leadership candidate and Canadian Finance Minister Jim Flaherty found himself in Ireland on official business right after the downgrade. At the time, Reuters reported:

Canada finance minister defends Irish policy after downgrade

(Reuters) – Canadian Finance Minister Jim Flaherty said Ireland had a solid bank plan and was Europe’s leader in fiscal reform, warning not to take rating agency views such as S&Ps downgrade of Ireland this week too seriously.

Dublin will welcome G7 chair Canada’s defence of its “bad bank” plan and efforts to stem the rise in its budget deficit after S&P on Tuesday cut Ireland’s credit rating to “AA-“, pushing up its borrowing costs.
Less than three months ago, Flaherty believed that Ireland had a solid plan to fix its fiscal crisis. Canada’s Finance Minister even went on to take a shot at the rating agencies:

The rating agencies were part of the problem that caused the crisis. I am not a big fan of Moody’s and Standard and Poor’s and so on when they start to pontificate on certain issues. After all, they were responsible for rating some of the securitisations on Wall Street that contributed greatly to the crisis we’ve been facing for the past few years, so I take it all with a grain of salt from the rating agencies.
That unprovoked cheap shop did not go unnoticed in Canada. Globe columnist Norman Spector wrote:

While things are going well in Canada today, the global economic recovery is still fragile and we are not yet out of the economic woods. For the life of me, I can’t think of a single reason why Mr. Flaherty would think it’s wise and in the interest of Canada to have entered a dispute between Ireland and the ratings agencies. And, in particular, how he thought it would be helpful to Canadians for him to take a shot at Moody’s and at Standard & Poor’s.

Today, Reuters reports that Flaherty is washing his hands of the whole Irish imbroglio:

“It doesn’t directly have any significant impact on Canada but it’s important that Europe deal with this situation and they may well have the assistance of the IMF,” he said.

Any chance that Flaherty is going to apologize to S&P for being so completely wrong?

Yeah, we didn’t think so either.

#97 Hiteclowtec on 11.17.10 at 10:20 am

#91 Got A Watch

I used to love the lake Erie perch, real tasty and a favorite at the local Legion fish fry. Then one day I read an article about Detroit dumping 20 Olympic size swimming pools of raw sewage into the Detroit river every day. It also mentioned that the city of Windsor was just as bad.

I`m big on beef these days !

#98 45north on 11.17.10 at 10:22 am

TheBestPlaceonEarth: well I like how you have added capitals to your name to make them readable – unlike hiteclowtec – which I see as HiteClowTec which doesn’t make any sense at all.

Going forward Cities where Canadians have invested will be hurt but juggernaut Vancouver with billionaires from Hong Kong to Dubai will explode

this blog is going to outlast TheBestPlaceonEarth, I’m thinking that we aren’t going to see the name next year (2011)

I see Tony still posts but he doesn’t bring up Brampton anymore.

honestly TheBestPlaceonEarth if you spent 60 minutes reading the US blogs you would know how wrong you are: here’s two:

http://thehousingbubbleblog.com/index.html

http://patrick.net/housing/crash.html#links

#99 dale in van on 11.17.10 at 10:25 am

van treats 100% of wastewater

http://www.metrovancouver.org/services/wastewater/treatment/Pages/treatmentplants.aspx

VICTORIA does not

who is letting idiots post lies on here?

#100 dale in van on 11.17.10 at 10:35 am

“bucket of that fresh chunky “water” from English Bay over their heads.”

i’ve been on the water in english bay and howe sound for 15yrs – chunk free all the way – plenty of good fishing all the way into the city too. this year whales and dolphins have moved in too.

most beaches in the area have NEVER been closed – hfx, different story (just reopened since NEW plant cleaned up hrbr.) jeeez, don’t you ever watch the news?

#101 PTDBD on 11.17.10 at 10:43 am

In case you are wondering where the IMF paperprestidigitizer gets its money from to become the big lender of last resort to support Ireland Bank bailouts…it comes partially from your wallet.
IMF Members and Quotas

The funniest thing is that the bankrupt USA contributes 17% of vapour paper to the IMF.

So, the looting continues flowing out of the commom man’s pocket to support the higher strata of vampiric feeders. That’s why you are glowing in the dark….. You are the hollow man, the hollow woman being sucked dry of your juices day by day by an infernal money machine.

#102 GregW, Oakville on 11.17.10 at 11:02 am

Hi Garth, FYI, 3 videos scroll down

http://www.infowars.com/tsa-hit-with-lawsuits-as-revolt-explodes/
November 17, 2010

The TSA has been hit with a number of lawsuits as the revolt against Big Sis, naked body scanners, and invasive groping measures explodes, with one case involving a woman who had her blouse pulled down in full public view by TSA goons who then proceeded to laugh and joke about her exposed breasts.

#103 Gary Anderson on 11.17.10 at 11:04 am

I don’t know about Canada, but an article I posted at business insider shows that Wall Street was to blame in the US. It is amazing to read comments there where this all is looke upon as a bet that mainstreet lost, and oh well.

These Wall Street types are without conscience. http://www.businessinsider.com/tea-party-rant-and-foreclosuregate-for-dummies-2010-11

#104 Basil Fawlty on 11.17.10 at 11:24 am

“On Wall Street the estimated total compensation for 2010 is $114B”
Sorry, the number is actually $144B for compensation and bonuses, as many Lear Jets and 30,000 sqft homes have reached the end of their useful lives and must be replaced.

#105 Junius on 11.17.10 at 11:28 am

#85 AM,

Forget it with our friend Mr. Right. He doesn’t see it coming.

He makes the same mistake as the ultimate pumper her BPOE that it will just continue as it has been regardless of reality.

Don’t waste your time.

#106 Junius on 11.17.10 at 11:32 am

#90 Dark Sad Person,

I almost missed your reference to me as I don’t often read your posts.

I am pointing out what we all know about gold which is that it is a hedge and its prices is not based on its intrinsic value but only on speculative value. Don’t get me wrong, I hold about 5% of my net worth in gold but as a hedge. I know that it is currently over valued in the long run.

#107 Toronto McMansion on 11.17.10 at 11:46 am

Did anyone else notice that the media is allowing the CREA to compare July 2010 raw numbers to October 2010 raw numbers?

What happened to ‘seasonally adjusted’ figures?
What happened to year-over-year comparisons?

Not only is this a major sign that the housing market is hurting, but the media is in the pocket of the Realtors. The titles of the articles are seriously misleading– Canada’s housing did not ‘rebound’ nor did ‘home resales climb again’.

http://www.moneyville.ca/article/890923–canada-s-housing-market-rebounds

http://www.bnn.ca/News/2010/11/15/Home-resales-climb-again.aspx

#108 OttawaMike on 11.17.10 at 11:49 am

#91 Got A Watch on 11.17.10 at 9:34 am

Mr. Watch,
Like most things, ocean disposal of untreated wastewater is a complex issue. I’m in the water biz and can tell you that there is strong evidence that Victoria’s deep water disposal method in the Straits of Juan De Fuca is sustainable. In the interests of brevity it involves the water temperatures, currents, depths, all providing a natural treatment system in that particular case.

You have to know that in a modern sewage treatment plant the vast hydro consumed and the CO2 emmissions produced are never talked about. Also the process is strictly biochemical so the trace toxins still remain in the effluent stream. If you dig a little deeper, some of the strongest pressure for Vic to install full treatment came from the engineering consultancy lobby who stand to reap millions building the new facility. Plus the city of Port Angeles on the US side that got EPA guilted into building a state of the art plant in the early 90’s and asks why not Victoria?

Curbside Recycling is another similar example we coud debate to infinity. Paper and cans, yes, easy to recycle and a good market.
The other stuff? Highly doubtful that the diesel and manpower is worth it but there are the intangibles like landfill space and the public consciousness about being green.

My own belief on recycling is that it masks the problem of our rampant over consumption and over packaging as everybody feels they have done their part by participating in the blue box program and can carry on consuming guilt free.

#109 Zaza on 11.17.10 at 11:49 am

I’ve been monitoring this house on our street. It’s been for sale for 2-3 months. Original price was $799K, then in went down to $769K then it was $739K for a month and now it’s $699K. Price was reduced by $100K in three months. A number of houses were taken off the market in our neighbourhood…

#110 Zaza on 11.17.10 at 11:50 am

Sorry forgot the link
http://www.realtor.ca/propertyDetails.aspx?propertyId=10052839&PidKey=-1660867329

#111 GregW, Oakville on 11.17.10 at 11:50 am

Hi Garth, fyi, I assume you and your family try and stay health, but what do you know about Codex?

The History of Health Tyranny: Codex Alimentarius, part 1
http://www.infowars.com/the-history-of-health-tyranny-codex-alimentarius-part-1/

#112 dark sad person on 11.17.10 at 11:54 am

#105 Junius on 11.17.10 at 11:32 am

#90 Dark Sad Person,

I almost missed your reference to me as I don’t often read your posts.

I am pointing out what we all know about gold which is that it is a hedge and its prices is not based on its intrinsic value but only on speculative value.

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

LOL–if that’s what you know-you don’t know shit-

Go back to playing your little game of being the “other junius”
Sounds to me like someone trapped in adolescence-

#113 Devil's Advocate on 11.17.10 at 11:59 am

#89 Toronto on 11.17.10 at 9:22 amyou heard it folks …the rates are going up …better buy a house before they go up.

Flip side… rates are low…time to buy now…

realtors will always have a sales pitch

Yes… the guns we hold to their heads. Shameful ;-)

Or you could wait for the monthly cost of ownership to adjust to comphensate for the increased cost of financing by real estate values falling.

Oh… and what exactly is it that influences real estate prices most? Organized real estate or interest rates? Or could it be possibly supply and demand? Nah it couldn’t be supply and demand. It must be those con artist REALWhores. ;-)

#114 s on 11.17.10 at 12:02 pm

are we a day behind on this blog? This says 16th but today is 17th?

#115 tran, Calgary on 11.17.10 at 12:07 pm

http://finance.yahoo.com/news/Why-the-Irish-Crisis-is-Going-usnews-4028366968.html?x=0

” Ireland is in the midst of a real estate bust that could trump even the ruinous downturns that turned parts of southern California and Nevada into suburban ghost towns, with home-grown banks stoking it all. Now, those banks are trying to manage catastrophic losses. The Irish government has effectively nationalized the nation’s biggest banks by guaranteeing their debt, which would be akin to the U.S. government taking over Citigroup, Bank of America, J.P. Morgan Chase and Wells Fargo.”

CMHC?

#116 Vancouver_bear on 11.17.10 at 12:16 pm

#53 TheBestPlaceonEarth on 11.16.10 at 9:36 pm

Ever heard of MRI scan machines? Get your head scanned, you will save the planet.

#117 bruce corell on 11.17.10 at 12:18 pm

We are already Ireland. Mr. Turner is too positive.
(“905″area ) Real estate sales for 1st 2 weeks of Nov.
1,756 sales down 18% $ 399,128 Nov 2010
$ 395,195 Nov 2009
Prices down $9K from october and falling fast.
Intest rates just increased today……
This will be an ugly ugly winter…………….

#118 Rasputin on 11.17.10 at 12:26 pm

Meanwhile in Calgary…if CREB figures are to be believed…the median house price has rocketed up $30k in the past month. I’m still waiting patiently for the big correction but fear I may get shut out completely.

#119 mattbg on 11.17.10 at 1:04 pm

One interesting part about today’s RBC/TD announcement was that RBC ended the 60-day special rate offer. Does that mean the idea of the rate being locked in for 60 days after pre-approval is over?

“RBC’s 60 Day Special Rate offer will also be withdrawn effective November 17, 2010. ”

source: http://ca.news.finance.yahoo.com/s/16112010/30/link-f-cnw-rbc-royal-bank-changes-residential-mortgage-rates.html

#120 tran, Calgary on 11.17.10 at 1:05 pm

Now is already mid-Nov, and Brampton sales data for Sep. & Oct. is still not available. What is happening?

#121 GregW, Oakville on 11.17.10 at 1:12 pm

Hi Sue, fyi, more to think on when drinking
YouTube video link

Dr. Mercola Interviews Dr. Paul Connett on Fluoride (Part 1 of 5)
http://www.youtube.com/watch?v=UpPv290z2-Y

#122 OnlyTheBankersLaugh on 11.17.10 at 1:17 pm

Dale in Van – read the following link… I dealt with GVRD for 5 years at Annacis Island and watched them flush taxpayers money to tune of $2B when similar plants were built for $400M which was original capital project announcement in 1990. Engineering consultants made out like bandits there as government don’t want any repsonsibility for anything. Just pay me now and pay me the pension and don’t expect me to make decisions.

Can you supply me with some facts other than a city’s web site? This is like Conservatives giving me the update on how they’re doing without any analysis. Or, hey, it’s like Globe or any paper providing REA news without any analysis except the REA’s own economist or some bank economist’s point of view. No bias there. Don’t stop….. believing… hold on to that … who am I kidding, whatever, I can’t sing Journey.

http://thethunderbird.ca/2008/05/04/vancouvers-toxic-sewage-dumped-in-ocean/

#123 Brandon on 11.17.10 at 1:37 pm

“* Keep real estate under 40% of net worth.”

What’s the magic formula to adjust that percentage for younger couples?

#124 Junius on 11.17.10 at 1:44 pm

#111 DSP,

Charming, as usual.

#125 OnlyTheBankersLaugh on 11.17.10 at 1:47 pm

GregW on Flaherty speaking next week Chamber of Commerce in Oakville …. please make a huge sign “Stop the massive CMHC hedge fund” as we didn’t sign up for that hedge fund like risk. Please get it in the photo with you and the Flab. I am sure Garth would use it here. I would join you from Burlington but have to go to Kuwait and Saudi to make some money for my TFSA and do some creative shopping for my lovely wife. Golden opportunity missed at home again to hear The Flab speak.

#126 Business Unusual aka the BUN on 11.17.10 at 1:48 pm

#117 Rasputin “I’m still waiting patiently for the big correction but fear I may get shut out completely.”

The last part of bubbles is usually the most bubbley. BUT I know what you mean – I’m losing patience.

Don’t rush into buying anything out of fear because you’ll hate yourself in the morning.

#127 Devil's Advocate on 11.17.10 at 2:00 pm

There will always be homes bought and sold for more than the pups and poodles would be willing to pay. And that is why a lot of pups and poodles will never own a “home”.

Most people buy based on emotion. They justify their purchases with logic but only long after they made the commitment to buy. “Home” is a very emotional thing. There is no denying the “nesting” instinct of women as there is no denying the natural inclination of men to attract women by being a good provider. The psychology and sociology which engrains home ownership is unbreakable and will continue to push and pull real estate markets in ways that pups and poodles will never understand.

How shallow must be the lives of they be who do not understand this.

Bring on your condemning comments as I am sure you will. But those of us who understand this would never trade that which we have for that which you seek. Reminds me of the saying “Power boaters are always in a hurry to get somewhere. Sail boaters are already there.” ;-)

#128 Debtfree on 11.17.10 at 2:19 pm

greg 101

not everyone is taking it .
http://wewontfly.com/

#129 PTDBD on 11.17.10 at 2:29 pm

Fed’s reply to QE Criticism – The bad decisions will continue until we turn things around

Evans:
– more such purchases will be required until we see the situation changing.
– $600 Billion is a good place to start

…they’re just getting started, THIS is the exit strategy

#130 GregW, Oakville on 11.17.10 at 2:45 pm

Hi Garth, fyi

Former Treasury Secretary Rubin: Bond Market Could Implode; Vote to Increase Deficit Could be the Trigger
http://www.infowars.com/former-treasury-secretary-rubin-bond-market-could-implode-vote-to-increase-deficit-could-be-the-trigger/

Former Treasury Secretary Robert Rubin is laying it on the line. At a confrence today at the Pierre Hotel in NYC he said, according to Arron Tusk, that the soaring federal budget deficit and the Fed’s quantitative easing are putting the U.S. in “terribly dangerous territory” and warned of a bond market “implosion.”

Get this. He said Congress’ vote on raising the deficit ceiling next spring could be the “trigger” for a rout in the Treasury market.

He also said the Fed’s plan to buy $600 billion of Treasuries “has a lot of risk,” calling the international reaction “horrendous.”

#131 PTDBD on 11.17.10 at 3:00 pm

Smelter & refinery in Thompson to close in 2015 – 500 workers

As stated, they buy us out and then close us down. Bad Decisions.

#132 Another Albertan on 11.17.10 at 3:25 pm

#97/45North:

“High Tech, Low Tech”.

Everyone else’s mileage may vary.

#133 jess on 11.17.10 at 3:33 pm

73 palebird
The Fed has no control over how that liquidity is used.”

Bernanke’s ‘Cheap Money’ Spurs Corporate Investment Outside U.S.

http://noir.bloomberg.com/apps/news?pid=20601010&sid=ad9J7.T_jWy8

#134 Junius on 11.17.10 at 3:43 pm

#102 Gary Anderson,

Great article. While Canada did not have the degree of fraud that you have in the US we have our own versions of teaser loans, Re Industry babble and a Gov’t lead ponzi scheme guaranteed by the Federal Gov’t. It will end in a similar fashion to the US. Not as extreme but similar.

What is interesting about your article is the fact that the Tea Party has taken up the “borrowers are losers” rant from Santorelli and others. We have the same classic manipulation going on here in Canada – don’t blame the banks, blame the borrowers. Caveat Emptor and all of that crap.

Here is the heart of your article which in many important ways applies to Canada as well:

” he tag “losers” implies that these people understood the nature of the Ponzi that was going on around them, that they made a bet and lost. I would say that by far the vast majority did not understand it. Furthermore, the price appreciation of the houses was artificial based upon the easy money loans themselves.

People were told they could refinance later. They were told that real estate always goes up. They were told that if they didn’t get in they would be locked out of the market. Almost every day on CNBC, David Lereah of the National Association of Realtors (NAR), was allowed to come on and say these things.

So then, this was a very sophisticated scam that included bankers, real estate professionals and mortgage professionals. Underwater borrowers were victims of a very sophisticated and lawless scam. The lawlessness centers on the corruption and taking away of underwriters, who have historically protected sound and honest banks. The underwriters were the law, the authority, of the banks regarding good loans and solvency. While not having sound underwriting violates no governmental law, it violates the principles that guide banking. Take away sound underwriting and you are guaranteeing bank insolvency and government bailouts of the biggest banks. That is exactly what happened.

Not only was it a sophisticated scam, but it was a scam that deliberately corrupted the underwriting process. These underwriters were important assets to banks because they always made sure in the past that people would not buy “too much house” based on their incomes. But with the new plan, the desire banks had for everyone to “qualify,” so that they could get as many mortgages as they could to pool into the mortgage bonds sold abroad and to cities and counties, resulted in the massive Ponzi that has caused foreclosuregate.”

#135 Live within your means on 11.17.10 at 3:44 pm

.#91 Got A Watch on 11.17.10 at 9:34 am

In Xanadu, they don’t dump their sewage water into the ocean. They do that in 3rd world countries. And Vancouver. And Halifax.

That is why I hold the politicians and residents of these cities in absolute contempt. At least Halifax and other East Coast cities have some excuse, they really can’t afford it, but it should have been done many decades ago with help from our pathetic Federal Government.
………………….

You should research your subject before state something as fact. Re Halifax see http://www.cbc.ca/canada/nova-scotia/story/2009/04/15/ns-sewage-update.html

‘The sewage treatment plant was opened in the fall of 2007’. Yes, they’ve had some major problems since. Yes, I’m ticked off that since ’76 we’ve had a surcharge on our water bill for the harbour cleanup and guess what, that money was diverted and our water bills have greatly increased in the last several years. Not sure if Mtl & suburbs still spew raw sewage into the St. Lawrence. I do know, however, that they do not pay a separate water bill – it’s included in their home taxes, which IMO encourages wastefulness.

#136 Junius on 11.17.10 at 3:49 pm

#111 Dark Sad Person,

You said of me, “Sounds to me like someone trapped in adolescence.”

Fair enough. Your rants always sound to me like you are an old, tired curmudgeon with more than a few loose screws whose only interest is in making himself feel better through insults and mockery.

Just so we understand each other.

#137 Junius on 11.17.10 at 3:54 pm

#126 DA,

You said, “Most people buy based on emotion.”

Actually, most people buy based on available credit.

#138 Sail1 on 11.17.10 at 4:05 pm

#30 T.O. Bubble Boy

I see sold signs, all around. There are still many people buying. I just don’t see these drops in prices manifesting any time soon, if at all.

#139 Hitec/lowtec on 11.17.10 at 4:10 pm

Hi tech treatment plant or Low tech sewer.

Waters-Great Lakes Coalition. He says 41 billion gallons of untreated sewage were dumped into the Great Lakes last year.

“The amount of water that flows over Niagara Falls in a 15 hour period, that’s how much raw sewage we continue to dump into this resource that we all love, that we know is so important to the culture of this region,” said Skelding.

http://www.publicbroadcasting.net/wbfo/news.newsmain/article/1/0/1686419/WBFO.News/Buffalo%27s.untreated.sewage.into.Lake.Erie

#140 dark sad person on 11.17.10 at 4:21 pm

Bank of Canada Governor Mark Carney’s car was broken into by a thief in Montreal on Nov. 1 and a bag containing classified documents was stolen, the Globe & Mail reported, citing Jeremy Harrison, a spokesman for the central bank.

While the papers had varying levels of security classification, none were related to sensitive policy matters such as the direction of interest rates, the newspaper said.

The incident led to a review of the bank’s security procedures, policies and training, the Globe & Mail cited the spokesman as saying.

http://www.bloomberg.com/news/2010-11-17/papers-stolen-from-bank-of-canada-governor-carney-s-car-globe-mail-says.html

******************
Typical Canadian Political Cluster F-

So-we grope old ladies and fondle children at airports to “tighten up” security against “all” enemies-young and old–
And meanwhile the pigmen are swilling down expensive wine at our expense and leaving top secret documents laying around in cars or on the bed at some hells angels girlfriends place of “business”
And these are the “people” who are supposed to guide us through this-
Whata fu–ken joke-

#141 Sail1 on 11.17.10 at 4:22 pm

#116 bruce corell

This will be an ugly ugly winter…………….

Did you stock up on supplies and get the bomb shelter ready. And don’t forget the generator.

#142 VICTORIA TEA PARTY on 11.17.10 at 4:24 pm

LUCK OF THE IRISH, AND THE REST OF US, INDEED.

#32 and some others.

These new “troubles”, in the Irish state, are a case study of what happens when a government guarantees real estate butts, with local taxpayer support, because of a continuing world-wide economic catastrophe overlaying unsustainable, thus incompetent, domestic economic policies.

If the Irish are afraid of giving away their sovereignty, through its government’s decision to one day accepting financial help, from the ECB and IMF, they have only to remember back to their recent decision to accept the Lisbon Treaty that confirmed their “membership” in the EU community.

“Membership has its privileges,” of course, especially when the inevitable economic troubles show up to blow up.

In the end, which means right now, the country will accept help, or it will be rammed down their throats by the EU and IMF. Ireland will face huge tax increases and service cuts as a result. It’ll be ugly, and economcailly damaging, for many, many years. Irish luck has just left town, and a lot of folks are leaving, too. Good luck to all.

Greece is experiencing similar trials and tribulations, with Portugal, Spain and Italy next up to be batted about. And then there’s the eastern European drones.

So, the main overriding issue here is the growing worry about the continued viability of this grand experiment known as the European Union.

This is why the Irish will have to accept help with tight ropes attached because the EU is approaching a precipice over which it could well tumble, thanks to all of these troubled economies.

An end to this experiment thus becomes a reversion to mean, back to the good old days, borders, customs, trade protection and potential ethnic conflicts all of them deserving of panic responses amongst the Euro-elites at this time.

If anything, this situation is an interesting diversion from the even more troubling US’s ongoing economic decline.

And there are some other matters, within China: a decision to soon jack up its interest rates, to cool inflation; imposing hot money import controls, to punish the US dollar; manipulating commodity prices to just be difficult and bitchy.

Meanwhile, markets are moving in interesting, often inflationary, directions.

If ever there was a time for Canadians to start paying down their debts (listening to Garth’s good advice), it is now.

Forget about the debt-laden real estate egos, the arrogant granite and steel, the exploding fun destinations in machine-gun Mexico; whatever.

Nothing wrong with chilling out in a timelessly cold Canadian winter. Our ancestors did, in droves, and the result was good.

Sackcloth and ashes in our future? Oh, yeah.

#143 Devil's Advocate on 11.17.10 at 4:25 pm

#134 Live within your means on 11.17.10 at 3:44 pm
.#91 Got A Watch on 11.17.10 at 9:34 am

In Xanadu, they don’t dump their sewage water into the ocean. They do that in 3rd world countries. And Vancouver. And Halifax.

Yet drive your car which spews tons of pollutants into the air – not to mention the environmental damage done exploiting that resource which powers them. The ocean is well equipped to deal with that human waste compared to the airs ability to deal with that produced by your car. Do I support dumping sewage into the ocean? “No.” But we do a whole lot worse than that which you should be more concerned about than that biodegradable dumping.

It is intellectually dishonest to speak of environmentalism without discussing population control. The womb is by far the greatest polluter of all.

#144 Sail1 on 11.17.10 at 4:25 pm

#119 tran, Calgary

Now is already mid-Nov, and Brampton sales data for Sep. & Oct. is still not available. What is happening?

If you can’t wait, check on an Indian or Pakistani web site. I’m sure you will find them there.

#145 Jason on 11.17.10 at 4:38 pm

Garth, you may want to remove Italy from your list of pigs since its public and private debt is the lowest of the G7. Yes its public debt is high, however, one thing the credit crisis in te US has taught is that public and private debt are not inseparable. The next country to go in the Euro zone is either Spain or the UK where public and private debt are about 400% of GDP. Italy’s deficit is about 3%, lower than Canada and its public debt is almost all owned by Italians – similar to Japan. Also Italy is no Greece, it makes trucks, cars, ships, planes, heavy industrial equipment etc.

#146 bruce corell on 11.17.10 at 4:57 pm

Canadian home prices should ring alarms, says leading U.S. expert
Wed Nov 17, 3:38 PM
The Canadian Press

By The Canadian Press

OTTAWA – One of the first economists to accurately predict America’s housing meltdown is warning Canadians they could face something similar if steps are not taken to restrain the sector.

Dean Baker of the Washington-based Centre for Economic and Policy Research says he sees no reason why average home prices in Canada should be about 50 per cent higher than in the U.S.

He says Canada could see house prices collapse by 25 to 30 per cent if interest rates rise by about two percentage points.

Given the economic damage that a burst housing bubble can cause, Baker says Ottawa should look at tightening regulations further and the Bank of Canada should consider raising interest rates.

Baker was recently given the Revere Award along with two others for being the first to sound the alarm on the U.S. housing bubble, five years before it burst.

#147 George on 11.17.10 at 5:04 pm

Housing prices should ring alarms in Canada say US economist

http://ca.news.finance.yahoo.com/s/17112010/2/biz-finance-canadian-home-prices-ring-alarms-says-leading-u.html

#148 Hitec/lowtec on 11.17.10 at 5:52 pm

Trillions for the banksters ,”Tada gan iarracht” for the Irish.

I guess all that Quantitative easing, shovel ready, trickle down BS has to end up somewhere.

#149 jess on 11.17.10 at 5:58 pm

…when you have seen homes sit unsold for months and their prices reduced. Then, as the housing market was slowing even more, those homes sold for tens of thousands of dollars more than the previous listed price.hum????????Reminded me of arizona

January 23, 2007
Cash-back mortgage fraud
Calculated Risk: More Trouble for Lenders
21 Jan 2007 … The fraud involves obtaining a mortgage for more than a home is worth … an Arizona Republic investigation into these cash-back deals found

=

This prosecution is part of an initiative called “Operation Cash Back” in which dozens of defendants—including many real estate professionals—were indicted between 2007 and 2009. To date, 49 have been convicted through guilty pleas or following trial.

Operation Cash Back is part of a nationwide initiative under the Financial Fraud Enforcement Task Force established by President Obama. In Arizona, Operation Cash Back represents the efforts of the U.S. Attorney’s Office, FBI, Internal Revenue Service-Criminal Investigation Division, U.S. Immigration and Customs Enforcement, Department of Housing and Urban Development Office of the Inspector General, U.S. Marshals Service, U.S. Postal Inspection Service, U.S. Secret Service, the FDIC-OIG, Arizona Department of Financial Institutions, Arizona Attorney General’s Office, county attorneys and local police departments.
========
Four Arizonans sentenced in mortgage fraud scheme
by Rynski on Mar. 30, 2010,
============================

From the cbc.ca
Housing bubble a danger:
Dean Baker
why should canadian home prices be 50 percent higher than american prices? If interest rates rise by two per cent, canadians could see house prices collapse by twenty five to thirty per cent.

#150 Moneta on 11.17.10 at 6:13 pm

While not having sound underwriting violates no governmental law, it violates the principles that guide banking

Government officials have a fiduciary duty to their people. They psuhded social policiesknowing fully welkl that houtsands and millions would gorge themselvles on debt.

Bankers also have fiduciary duties and must act in good faith. They made thousands and millions of loans knowing households would suffer and that they were too big to fail.

At the heart of Quebec’s civil code is the concept of good faith.

Laws have been broken all along the way.

#151 Prem on 11.17.10 at 6:23 pm

#119 “Now is already mid-Nov, and Brampton sales data for Sep. & Oct. is still not available. What is happening?”

Word is insiders claim sales fell by more then 50% but the fact the brampton RE board refuses to release them tells me sales are even worse then that? Garth you have any inside information or why Brampton sales data for Sep. & Oct. is still not available? Anyone know why?

#152 GregW, Oakville on 11.17.10 at 6:25 pm

Hi #124 OnlyTheBankersLaugh,

Good ideas can come form the most unexpected places
sometimes.

re: please make a huge sign “Stop the massive CMHC hedge fund”

What size do you think it should be?

Although the idea is interesting, I feel I should really start to attend to more person maters. A few hours ago I actually wrote myself a note to spend less time on the net for a week or two.
(Then I got a few loads of laundry done and folded to keep out of real trouble, you understand.)
Hopefully I can resist and keep the time spent in places like this to a minium for a while.
I can’t promise for sure, but hopefully.

I will need to at the very least read Mr. Garth Turner’s blog entrees of course! and maybe comments?
At least I have some work all weekend to keep me occupied. I hoping for ok weather at Rattlesnake point.

Perhaps another could take up the cause you suggest for F on Monday?

PS, what type of work do you do, if you don’t mid me asking?

#153 GregW, Oakville on 11.17.10 at 6:37 pm

Hi Grath, fyi still flying? atrical, what have we come to?!
Still letting your family fly?

TSA – Sexual Assault
http://www.infowars.com/tsa-sexual-assault/

#154 Prem on 11.17.10 at 6:38 pm

http://www.bramptonandarearealestate.com/2010_Residential.html

Can we believe the number for Sept and Oct even if they do come out? Where are the numbers?

#155 Business Unusual aka the BUN on 11.17.10 at 6:40 pm

Vancouver Update

1. Sales volume at record low.
2. Listings at or near record low
3. Mortgage rates at a low
4. Prices unchanged at record high. WTF?!

Questions:
1. Is the sh*t about to hit the fan?
2. Should we all get one of those free AK-47’s I talked about in post #20 to cover our butts?

“Free AK-47′s Assault Rifles When You Buy a Pick-up Truck?”
http://www.businessunusual.net/ads/freeak47weirdadvertising/

#156 GregW, Oakville on 11.17.10 at 6:43 pm

Hi #124 OnlyTheBankersLaugh, re: F Monday.

I wonder if Garth will go and ask a question?

I bet Grath has better thing to do, possible.

#157 OnlyTheBankersLaugh on 11.17.10 at 6:49 pm

#130 PTDBD on 11.17.10 at 3:00 pm

Put Vale Inco Thompson mine closure on the watch for 2015. Close it if demands aren’t met. That value is still in the ground. Pull it out with a new more “productive” labour force in future. Brazilian government will subsidize the deal. Imagine if Canada’s went to Brazil and tried this one on for size.

#158 sue on 11.17.10 at 6:56 pm

Greg Oakville
I follow Dr. Mercola regularly. I think he’s a genius and I wish more docs knew even 1/10 of what he does.
Thanks for the link. I am a pharmacist and am sickened by what I see every day. I try my best to steer people in the direction of health. It’s the least I can do.

#159 Jack on 11.17.10 at 6:57 pm

BREAKING: City announces Olympic Village developer Millennium is in receivership. Ernst & Young Inc. will assume control

http://twitter.com/vancouvermetro

#160 Ndg on 11.17.10 at 7:07 pm

BNN…
Classified documents stolen from BoC governor’s car
The Bank of Canada is dealing with a serious security breach after a thief smashed the window of Governor Mark Carney’s unattended car in Montreal and made off with a travel bag containing classified documents.

#161 Nostradamus Le Mad Vlad on 11.17.10 at 7:25 pm


#100 PTDBD — “. . . the bankrupt USA contributes 17% of vapour paper to the IMF.” — Vapour paper. That is a great new moniker if, or when I switch from NLMV!

#128 PTDBD — “…they’re just getting started, THIS is the exit strategy”

— and —

#129 GregW, Oakville — “Bond Market Could Implode; Vote to Increase Deficit . . .”

Here are two fine posters, one writes THIS is the exit strategy (correct), and the next who gives the reason — Bond Market Could Implode.

Stir everything together and the only thing that remains unclear is timelines. Would the elite please inform us of the actual dates? Thank you!

Wouldn’t it be a hoot if they actually took time to read this?! Way too much fun!
*
Not sure if this is what Ben And The Boyz had in mind with QE2. “Only if Ben Bernake’s and the Fed’s desired outcome from QE2 was the complete destruction of the American economy, only then can we say “mission accomplished!” wrh.com.

Yemen “This has everything to do with controlling the Gulf of Aden, in advance of an impending attack against Iran, and nothing to do with getting the Yemeni government to fix the fundamentals of government and infrastructure which, to people who have nothing left to lose, can make insurgency look attractive.” wrh.com. This could be linked to the responses I gave to #128 PTDBD and #129 Greg W. Get sheeple thoroughly bamboozled on a dying economy, add a couple of FF’s then use Yemen to invade Iran, as no one here will be watching.

Missile The US govt. appears to be shooting itself in the foot. Again.

‘Net Censorship “. . . President Obama urged other countries to stop censoring the Internet. But now the United States Congress is trying to censor the Internet here at home.” Double standard!

Philly Cheesesteak “You could sell that bell on eBay if it wasn’t cracked!” wrh.com.

Cdn. GW “Desperate attempt by the warminazis to keep selling their carbon tax to you.” wrh.com.

Jaws Of Debt are about to consume the US.

4ClosureGate “Latest word is that Congress will override Obama’s veto of HR 3808, giving banks and mortgage companies the legal right to seize homes with just notarized statements, rather than to require the actual note and deed on the home.” wrh.com. If it passes, stealing homes will rocket ahead.

Uh Oh “The bond market has been pretty volatile and flooded with new issues,” said Mike White, the controller.”

2:29 clip If ladies are planning to travel to the US, this may be of interest.

Euro doo-doo “The entire European Project is now at risk of disintegration, with strategic and economic consequences that are very hard to predict.”

14:17 clip “The Medicated World We Live In, All In The Name Of Pharma Profits.”

#162 Bill Grable on 11.17.10 at 7:31 pm

The Milly Water – 750 million dollar fiasco, that many of us blog dawgs knew was ahem, a dog – as you now see is in ‘receivership’.
The City of Vancouver used to make joke about the Big O. Well now our snotty, ratty little burg full of schnooks, will see taxes rise on their million dollar dumps. I mean DUMPS. Vancouver has a huge case of “about to get ours”….and I for one, can’t wait to watch the rats run for cover.
Mr. Turner tried to point out the folly – but no one listened.

If BNN is correct in reporting that there has been a huge security breach with Mark Carney’s office – an alleged theft?

It sure will be an interesting few weeks, er months.

Took profits and walked with entire portfolio up 17% – and now going to watch the carnage.

No debt – and enough to live on – I am fine – and my old Honda is too.

I know folks that are paying 500 bucks to lease DODGES. Jeez, Louise.

READ MR. TURNER’S BOOKS. You will sleep a lot better at night.

#163 smw on 11.17.10 at 7:36 pm

Dean Baker talks Canadian housing…

“no reason why average home prices in Canada should be about 50 per cent higher than in the United States”

http://www.thespec.com/news/business/article/276981–canadian-home-prices-should-ring-alarms-says-leading-u-s-expert

#164 Moneta on 11.17.10 at 7:37 pm

BNN…
Classified documents stolen from BoC governor’s car
The Bank of Canada is dealing with a serious security breach after a thief smashed the window of Governor Mark Carney’s unattended car in Montreal and made off with a travel bag containing classified documents.
.
———–
So let’s speculate, our national pastime, on what’s in this bag:

1. A copy of the G&M
2. A copy of the WSJ
3. A GM prospectus from GS
4. An extra Swatch
5. Jogging shoes and stinky clothes

#165 Vancouver_bear on 11.17.10 at 7:41 pm

Hey, BESTPLACEONMENTH, how come your super rich buddies did not buy it up? …..They did not have it in their sight? Sucks to be them.

http://www.theglobeandmail.com/news/national/british-columbia/vancouvers-olympic-village-goes-into-receivership/article1803471/

#166 Vancouver_bear on 11.17.10 at 7:43 pm

#53 TheBestPlaceonEarth on 11.16.10 at 9:36 pm

http://www.theglobeandmail.com/news/national/british-columbia/vancouvers-olympic-village-goes-into-receivership/article1803471/

Think about getting MRI scan for your head, and stop smoking that crap.

#167 Alister on 11.17.10 at 7:45 pm

Here is an interesting link that supports Garths theories.

Notice California house sales peaked in 2003, but prices peaked in 2007, a full 4 years later. Since the price peak, prices have fallen 40% since then.

Imagine all that nice weather, and all the wealth of it’s highly paid citizens, and the market still fell.

http://www.doctorhousingbubble.com/the-canary-in-the-southern-california-housing-market-signifies-a-sizeable-home-price-decline-for-2011-fred-mac-calculator/

#168 Devil's Advocate on 11.17.10 at 7:49 pm

#136 Junius on 11.17.10 at 3:54 pm
#126 DA,
You said, “Most people buy based on emotion.”
Actually, most people buy based on available credit.

Not so much really. According to a survey of October 2010 Buyers;

47.75% financed through a conventional mortgage of 20% down or more

Only 25.53% financed using High Ratio Mortgage (less than 20% down payment)

27.03% paid cash for the purchase of their home with no financing what-so-ever.

Most of those who did finance through conventional means, you can be sure, had significant skin in the game.

#169 Junius on 11.17.10 at 8:00 pm

#154 the BUN,

Vancouver is in the same pattern as the US before the crash. Sales slow to anemic and sellers pull their listings if they are not getting their price. Prices remain firm……until rates or the economy change and people have to sell. So long as the rates hold and the economy remains in its current state it will continue to melt but slowly.

The market now moves into the slow season. Pace of decline will quicken over the next few months.

#170 S.B. on 11.17.10 at 8:00 pm

#80 GTAInsider -Yonge and Eglinton is not considered a downtown location. It is firmly uptown.

#171 T.O. Bubble Boy on 11.17.10 at 8:04 pm

@ #137 Sail1:

“I see sold signs, all around. There are still many people buying. I just don’t see these drops in prices manifesting any time soon, if at all.”

So, not only are you racist (based on your india / pakistan comment #143), but you also can’t read?

I was reference the Toronto Real Estate Board’s mid-month stats… it is the TREB themselves that are saying 905-area condo prices declined from last year, and that 905-area detached homes are flat (0% price difference) from 2009.

http://www.torontorealestateboard.com/consumer_info/market_news/news2010/pdf/nr_mid_month_1110.pdf

#172 Mark on 11.17.10 at 8:07 pm

Globe And Mail – Vancouver’s Olympic village goes into receivership

http://www.theglobeandmail.com/news/national/british-columbia/vancouvers-olympic-village-goes-into-receivership/article1803471/

#173 T.O. Bubble Boy on 11.17.10 at 8:08 pm

Wow – so, I guess the City of Vancouver was in the dark on the Millenium Water receivership?

From November 5th:

http://communities.canada.com/vancouversun/blogs/civiclee/archive/2010/11/05/vancouver-s-mayor-insists-city-will-get-all-its-olympic-village-money.aspx

“On Friday morning Robertson insisted that the city won’t suffer any shortfall if Millennium Developments has to lower the prices on its 480 condos in the troubled village. He made it clear that he expects Millennium to cover its entire debt to the city – including the remainder of the $750 million loan and the balance of the $230 million purchase of the land – regardless of what it gets from condo sales.”

And this is only 12 days ago!

Is this “Canada’s Lehman Brothers Moment”?

#174 Alberta Ed on 11.17.10 at 8:16 pm

And now Vancouver’s Olympic Village has gone bust…

#175 Devore on 11.17.10 at 8:21 pm

#133 Junius

People were told they could refinance later. They were told that real estate always goes up.

It is trivial to verify and debunk that real estate always goes up. Most don’t even have to reach into dusty old records, they just have to remember far back enough. They were told they could refinance… how? by taking on more debt? You know, at some point you do have to start paying for your house, the bank is not a charity.

TINSTAAFL

They were told that if they didn’t get in they would be locked out of the market. Almost every day on CNBC, David Lereah of the National Association of Realtors (NAR), was allowed to come on and say these things.

And there were plenty of people on TV that were saying the opposite. That they were ridiculed and shouted down by the clowns should have been the first clue.

There are no new miraculous paradigms. Whether it’s the New Economy(tm) or the Ownership Society(tm), every generation has one or two blockbuster scams or snake oil medicine. Every time, apparently reputable establishment doctors, professors, lawyers, economists, are trotted out to toe the line. And those who keep falling for it never learn. That’s why they call them Greater Fools.

TINSTAAFL

#176 Devore on 11.17.10 at 8:37 pm

#133 Junius

So then, this was a very sophisticated scam that included bankers, real estate professionals and mortgage professionals.

The scam was very simple. It was the same as every other scam before it. “If you get in now, you will make big bucks in the future. Trust me.” Only its scale and duration are noteworthy.

TANSTAAFL

#177 45north on 11.17.10 at 8:40 pm

The latest movie Wall Street with Michael Douglas. that really was about Bear Stearns?

#178 Devore on 11.17.10 at 8:45 pm

#165 Devil’s Advocate

Most of those who did finance through conventional means, you can be sure, had significant skin in the game.

… and they still bought based on how much they could borrow, because prices are set to whatever the market will bear.

Boy, even with all those handy numbers available at your fingertips you still know nothing.

#179 jess on 11.17.10 at 8:46 pm

soylent

some cheerleaders from the past :
“the economic condition of the world seems on the verge of a great forward movement”
“stock prices have reached what looks like a permanently high plateau”
and then Herbert Hoover after the crash , “The fundamental business of the country … is on a sound and prosperous basis.”
http://www.americanheritage.com/articles/magazine/ah/1965/5/1965_5_88.shtml

http://www.americanheritage.com/articles/magazine/ah/1965/5/1965_5_88.shtml

#180 dark sad person on 11.17.10 at 9:30 pm

#163 Moneta on 11.17.10 at 7:37 pm

So let’s speculate, our national pastime, on what’s in this bag:

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

How about “something” that might be “asked for” somewhere in the future and unfortunately just happened to be in that bag?
Not that anything ever had to be in the bag-but-it “could” have been in the bag and “there” sits the open window-
Wonder how “big” the bag was-wonder how many documents it could have held?

The GS paranoid-conspiratorial gold poisoned mind races–

#181 Devil's Advocate on 11.17.10 at 9:37 pm

#171 Devore on 11.17.10 at 8:21 pm
#133 Junius
People were told they could refinance later. They were told that real estate always goes up.
It is trivial to verify and debunk that real estate always goes up.

Historically speaking over the long run despite its ups and downs real estate has trended up. You may that will not continue into the future, that is your prerogative. I think most others believe it will return to an upward trend in the not too distant future consistent with the patterns of the past and then surpass the historical highs.

#174 Devore on 11.17.10 at 8:45 pm
#165 Devil’s Advocate
Most of those who did finance through conventional means, you can be sure, had significant skin in the game.
… and they still bought based on how much they could borrow, because prices are set to whatever the market will bear.
Boy, even with all those handy numbers available at your fingertips you still know nothing.

How do you know they “bought based on how much they could borrow?” A good many I know could have borrowed a lot more than they did. Even Garth, not long ago was advocating borrowing from the bank while they were practically giving the money away. There were a lot of good reasons to borrow despite that you didn’t need to. In fact that is probably the best time to borrow… when you don’t need to but it makes financial sense given the low cost of borrowing. It’s called leverage. It increases cash flow.

“What ever the market will bear?” Of course! What ever makes you think it would be otherwise. Supply and demand… Geesh read some simple economics why don’t you? And you are calling me out saying I don’t know anything? OMG.

#182 S.B. on 11.17.10 at 9:54 pm

Translation: we will steal your resources. Robberbarrons! Some things never change…
Remember folks, the world is ruled by violence not by democracy. What we are witnessing is a violent economic attack upon the Western Middle Class.
R.I.P Middle Class: 1946-2010!!

IMF chief links good governance to fair share of wealth

ALGIERS (AFP) – The head of the International Monetary Fund, Dominique Strauss-Kahn, on Thursday appealed in Algiers for good governance and a fair share-out of wealth in resource-rich countries.

“A strong commitment to good governance lies at the heart of responsible management of natural resource wealth,” Strauss-Kahn said at the opening of a high-level two-day seminar organised by the IMF Institute and the Central Bank of Algeria.

“Good governance helps ensure that commodity revenues can benefit all in society,” he added. “That is why institutions with a high level of accountability are so important.”

“Your countries have been blessed with tremendous natural resources and yet in many of them, unemployment is high, especially among the youth, and millions remain in poverty.,” he told an large international audience.

“It seems only right that your countries’ natural riches should be used to tackle constraints on growth and development, to create the decent jobs needed to raise living standards.”

#183 Junius on 11.17.10 at 9:54 pm

#172 Devore,

You said, “The scam was very simple.”

I disagree. Read Michael Lewis’ book, “The Big Short.” It was a pretty small group of people who really figured out the coming collapse. Even the investment banks including Goldman Sachs were late to the party.

The thing that strikes me about the entire securitized mortgage fraud is that it doesn’t really start out as a scam or a Ponzi scheme. It gradually becomes one as the demand for securitized mortgages builds in the market. In order to meet demand for product the banks begin to relax lending standards and over the course of a few years fraud becomes rampant.

I don’t see how the consumer is supposed to understand any of this when it didn’t occur to hardly anyone until 2005 or later.

The culprits for the scandal are clearly at the banks but also the politicians who relaxed regulations going back to Reagan through Phil Gramm and including Clinton along with all their advisors.

Again, pointing the finger at borrowers just allows this gang of incompetents and thieves to do all of this again.

#184 Junius on 11.17.10 at 10:00 pm

#177 DA,

You said, “I think most others believe it will return to an upward trend in the not too distant future consistent with the patterns of the past and then surpass the historical highs.”

I think most of the people here agree with this. The problem is that once we start speaking about historical patterns we immediately see we are way, WAY over fundamentals per the Case/Shiller index.

What most of us are arguing is that we will return to historical norms before we rise again. Perhaps in 100 years Vancouver will once again rise to the average home price of $1 million. Or it will take 50 or 200. Who knows?

All we know is that right now prices are way over historical prices and will fall for a long period before they rise again. Meanwhile, own a home and not an investment.

#185 Mikey the Realtor on 11.17.10 at 10:21 pm

You’re awsome DA, keep hammering the pups and poodles, they dont know RE like you and I. We are at the top of the food chain and they should respect us for it. My career has been taking off in the last week, the fools are packing in and I may need a bigger office to house them all, what do you suggest?

#186 George on 11.17.10 at 10:24 pm

#30 T.O. Bubble Boy

I don’t see sold signs at all. There are still many house which are sitting empty and no one is buying them. I been seeing drops in prices in my area and so many sellers are getting worried.

#187 Little Timmy on 11.17.10 at 10:32 pm

Well Said DA,

It is intellectually dishonest to speak of environmentalism without discussing population control. The womb is by far the greatest polluter of all.

Your poor mother…the guilt she must feel…

#188 Gary Anderson on 11.17.10 at 10:52 pm

#133 Junius

It is unfortunate that Devore is sans conscience. He just doesn’t understand that for most people it wasn’t a bet, but rather people were afraid they would be left out of the market. Now, if there are people in Canada telling the same thing with the same air time that is different. Trust me, and you can tell Devore, that did not happen in the USA. No, we bloggers warning about this got no air time until very late into the bubble.

So for most people it was not a simple bet. I am very troubled by people who think that was the case in the US. It was not. People were hurt. This wasn’t just a bet by bankers who get the property back when people screw up.

Bankers have a responsibility as I wrote here. I hope Devore reads it: http://hubpages.com/hub/Its-a-Wonderful-Life-Bankers-Reputations-Lower-Than-Used-Car-Salesmen

This was picked up by Business Insider but I have videos on the original site that do make the point. I hope the people of Canada who can will sell before there are more problems. Here is the issue, will China end up limiting their purchases of commodities in an effort to kill QE2? Something to think about.

#189 Happiness on 11.17.10 at 11:11 pm

To me this sounds like a moral correction is also in the works. People have sought happiness in the things they consume such as the houses, cars and products for way too long. Yes some people will lose lots of money and will suffer and from my perspective that’s just what our greedy society needs. If our world can finally realize that happiness comes from within and can’t be purchased these troubled times may actually be positive for human kind and our planet.

#190 dark sad person on 11.17.10 at 11:37 pm

#185 Happiness on 11.17.10 at 11:11 pm

To me this sounds like a moral correction is also in the works. People have sought happiness in the things they consume such as the houses, cars and products for way too long. Yes some people will lose lots of money and will suffer and from my perspective that’s just what our greedy society needs. If our world can finally realize that happiness comes from within and can’t be purchased these troubled times may actually be positive for human kind and our planet.

*******************
Somebody gets it–

Without hungry sheep to herd-there would have been no business-

http://www.youtube.com/watch?v=-2rsiER-OnU

http://www.youtube.com/watch?v=28VIz9gg0po&feature=related

http://www.youtube.com/watch?v=nNaeL7vdax8&feature=related

#191 tran, Calgary on 11.18.10 at 12:01 am

Any buy-one-get-one-free sale at Olympic Village soon?

#192 Herb on 11.18.10 at 3:39 am

Mikey the Realtor @ #185

“… what do you suggest?”

That you get real.

#193 GregW, Oakville on 11.18.10 at 10:38 am

Hi #158 sue, re: health and water fluoridation

Sue, Thanks for being informed and using your own brain! Have you added name yet?

PROFESSIONALS’ STATEMENT: 3,199 Medical, Scientific, and Environmental Professionals Sign Statement Calling for End to Fluoridation Worldwide
http://www.fluoridealert.org/professionals.statement.html