Sex toys

Apparently six in ten divorces are caused by fights over money. How many sheets do you think grow cold because of bubbles?

“In 2008,” Brian told me, “we offered on a house in Oakville, I was 27 and oblivious to debt and just thought this is what you do.” The place was listed for $465,000, Brian offered $435,000, and there were multiple offers. He lost.

“It went for 470,000. That same house today just went back on the market at $540,000. Here is what I am getting: ‘See Brian, if you had gone all in you would have made 70,000.’ But I tell her if we  would still be living there, how would we get the 70K?  Apparently that part doesn’t matter, it’s all about the wealth effect.”

Actually, Brian, give her a calculator for your next anniversary. And buy a big one for yourself. After all, a house purchased for $470,000 with a high-ratio mortgage and traditional closing costs would end up with a price tag of $490,400. The same house put on the market for $540,000 and selling for $525,000, after commission and a small mortgage-breaking penalty, would net $491,688. Profit: $1,288. I don’t think that’s enough to pay for the truck that moved you in or out.

This is why residential real estate is a tough place to make money – even in a rising market where a house has appreciated in value by almost 12% in just two and a half years. So just imagine what happens over the next few years, when prices start to flatline, and then trend lower.

Will you look like a genius for having backed away, or will you forever be a loser? Like Michael…

My name is Michael and I have been following your blog actively since late 2008.  While everything you said make sense to me, my decision not to buy then has left me wondering if that was really a good decision or not. My wife and family members have been pressurizing me to buy ever since and I am now left to look like a loser every time I meet them at family gatherings.

I initially used to impart them with some of the knowledge from your blogs but with every passing month it seems like I have never been more wrong. My wife keeps reminding me if we had bought at that time we would be ahead at least 25% now and paid down some principal while enjoying the low interest rates.

I hate to see myself being stuck in this situation while everyone is enjoying getting ahead with paying down their mortgage and enjoying their increase in net wealth from their houses.

I’d say this is a good letter to finish off the week with. It proves once again we’re surrounded by people disconnected from economic reality – pushed and prodded into major financial decisions by peer pressure, horny spouses and idiot in laws.

Just to remind you, Michael, last month the number of people working in paid jobs in Canada actually declined. Stock markets are tossing their cookies over recent economic data. Greece (where unemployment has increased 40% in a year) is about the fall, again, taking others with it. There are three active wars. Governments and families have never been so in debt. Austerity and higher taxes are sure things. And house prices are at nosebleed level.

This probably means the smartest thing you ever did was not buy three years ago, since the gain since then is an illusion, you’d have paid virtually nothing off on the house, and your entire net worth could soon be locked in a giant, illiquid box with a roof and doors.

So it’s time to man up, dude. Stop this sniveling parrot talk about “everyone enjoying getting ahead, paying down their mortgage and enjoying new wealth,” when it’s profoundly untrue. That house is only a good place to put money when values are consistently rising over decades, when you bought cheap, when you don’t have a 30-year amortization, and when you’re not browbeaten and dazed enough to stuff all your money in one asset.

The biggest investment mistake is to assume what’s happening today will occur tomorrow. That’s why most people flock to buy stuff that’s rising in value, then stampede to get out when it’s plunging. It’s why the herd was desperate to bail out of stocks and mutual funds in March of 2009, and why bidding wars for crappy houses are taking place now.

Explain this to your squeeze, Mike. Seize control, defend your position and stake your ground. Time will vindicate you.

And remember. Behind every successful man stands an astonished mother-in-law.

211 comments ↓

#1 Stefan on 06.10.11 at 9:29 pm

With the American elections coming up in the fall, the President’s Working Group on Financial Markets will do everything they can to keep the music going… including bailing out foreign countries like Greece, via IMF, which the US contributes to the most. The end game will come at some point,.. but not before they run up the oil over $150/b through their wars.

#2 Siddelly on 06.10.11 at 9:31 pm

It does take guts to be a basement dweller, but the stress levels are so much less when the bank account drains at a slower pace as well.

good end to the dismal week Garth! ([email protected])

#3 Stefan on 06.10.11 at 9:33 pm

correction: fall of ’12

#4 Bob Gunn on 06.10.11 at 9:36 pm

First! – I feel dirty.

#5 Mark on 06.10.11 at 9:37 pm

Yup. Watch the TSX double over the next few years, while housing goes down 20-30%. You can practically throw a dart at the TSX and find top quality stocks trading at 10X earnings in this 1% interest rate environment, which is unprecedented.

Why? The banks’ books are chock full of adjustable rate mortgages that are 100% guaranteed by the CMHC and for which the interest rates can rise with inpunity. Gold and oil are heavily in demand. Long-term debt at utilities and telecoms is being rolled into new low interest rate debt. The future for the stock market in Canada has almost never been brighter. And the housing downturn will ensure that inflation doesn’t become a problem.

#6 Bill Grable on 06.10.11 at 9:43 pm

A quick note about what is becoming really common in YVR. We sold and have a 2 year lease. Owner has been trying to sell and the RE agent keeps breaking rules of showings. No warnings.
Phoned the Senior Broker at the Agents home office and raised hell – politely. The Senior Broker was quick to apologize and said he would drop a call on the smarmy agent.
Think this might be a sign that Agents are desperate because this million buck apartment has had very little interest from the suckers, and so anyone who even shows interest – to heck with the rules.

Things are crazy here in YVR, as I have noticed an explosion of For Sale signs – like dandelions after a Summer rain.

Sellers must be freaking.

#7 JohnnyBGood on 06.10.11 at 9:44 pm

An excellent reminder that: 1) any potential profits are only realized when you sell, and: 2) you can’t calculate the profit without subtracting the costs.

It’s astounding how many people don’t factor in the costs when trying to gauge home affordability. Heck, most people don’t even know what the costs actually are.

#8 not 1st on 06.10.11 at 10:03 pm

Wives don’t give a bloody damn if you ever own a stock or a bond or a GIC. They only care about one asset and thats a nice big house with room to grow. They don’t care about its future value.

#9 Brad in Cowtown on 06.10.11 at 10:32 pm

to #6 Mark…

You think the TSX will double over the next few years?

That’s funny, because I think it’s more likely to fall about 25% over that same timeframe.

#10 Nick on 06.10.11 at 10:36 pm

If you think the market is slow now, wait until interest rates go back to normal levels, in a couple of years, just in time for the return of the mandatory 20% downpayment, like they’re doing in the UK right now. I’m not buying until rates are at 7%+.

#11 Cato on 06.10.11 at 10:38 pm

Don’t cave yet Mike, your so close to vindication you should be able to taste it. In the years ahead you’ll be sitting at dinner table with the in-laws lecturing your kids about how close you were to making the mistake of a lifetime.

Here in BC everyone is distracted by playoffs – just wait for a slew of odious news to hit the fan once the ‘nucks take the cup. The propaganda coming out of the govt now has a distinctive air of desperation.

Positive jobs report was a fallacy. Canadians are swapping out highly paid work for McJobs, as for the big spike in self-employed numbers how can anyone with an ounce of pride be expected to answer the survey. When asked if they are working would they say no, I’m an unemployed loser or would they say yes, things are happening I’m working for myself.

Cracks are now so obvious they can’t be easily hid by propaganda. Enjoy the summer amongst the blissfully ignorant, next year no-ones going to be smiling.

#12 Tim on 06.10.11 at 10:40 pm

the TSX is about where it was 6 months ago. Now is the time to buy more stocks. Keep your eye’s on Teck Cominco and some of the big oil companies

#13 Tim on 06.10.11 at 10:42 pm

We’re priced out of Vancouver, even with a healthy correction. It would have to fall over 50 percent for it to make sense to buy. Here’s the next craze, Mississippi shotgun housing. Check out this 320 Sqr footer:

> > http://ca.shine.yahoo.com/downsized–family-lives-mortgage-free-in-320-square-foot-home.html

#14 Tim on 06.10.11 at 10:44 pm

Our PM can be blamed for this mess

Protesters take aim at Harper:
http://www.torontosun.com/2011/06/10/protesters-take-aim-at-harper

Here’s a sign well see more and more…

http://ca.news.yahoo.com/blogs/canada-politics/photoshopped-stop-harper-sign-stanley-cup-finals-signals-204028946.html

#15 J on 06.10.11 at 10:56 pm

Go Canucks Go!

#16 SMOKING MAN on 06.10.11 at 10:58 pm

Bat Man showed his ugly head on the TSE on 5 year charts Bond Market on fire, and a dumb ass herd in Canada will listen to what ever Peter Mansbridge says.

World Economy going down the toilet, money comeing the Canada like no tommorow. Carney will be lowering the overnight rate in October, not rasing it. Fixed rate mortgages that are tide to bonds will dive probably next week

Buy real estate this week end you will not regeret it.

#17 An Cat Dubh on 06.10.11 at 11:02 pm

Here is what you can buy for just under 2Mill. in Montreal. Pricey but way more than you will ever get in Van for that money. No leaks, mold, and even a Maytag dishwasher.

http://home.mytelus.com/telusen/portal/NewsChannel.aspx?ArticleID=news/capfeed/national/MG1529.xml&CatID=National

#18 Min in Mission on 06.10.11 at 11:10 pm

@8, JBG, yes. You are correct about the costs. When we purchased, [email protected] couldn’t understand why I was going through those types of calculations. Even the people that should be able to “show the way” seem to be oblivious or uncaring.

Plus, like many others, I have never considered the “paper profit” as real money.

#19 Wendy on 06.10.11 at 11:13 pm

Most wives don’t but not all. As a wife I’d like to say it’s untrue but many of my friends all think in the “Houses are always good investments!” and “Renting is not something you want to do when raising a family”. Hell, I’ve got 2 small children, a dog, 2 cats, a rabbit, poultry and some small lizards and I’m happily renting. (And no, my house does not look like a dump or a zoo)

#20 Kim on 06.10.11 at 11:16 pm

#9 … you married the wrong woman

#21 Aussie on 06.10.11 at 11:19 pm

I empathise with Michael. We sold our house in Australia in 2009, amidst warnings that we’d never be able to get back into the market, and that we were doing the wrong thing. As it turned out, it was the worst time to sell, because the global financial crisis had hit, and the Australian government had pulled out all stops by increasing the first home owner grant, lowered interest rates, increased migration and relaxed laws on foreign ownership, so while 1960s 2 bedroom apartments in my area were selling for over $500,000, houses and townhouses were languishing. First home buyers were flooding the market which is why apartments were setting new records. Meanwhile, our house had been on the market for 6 months and our agent pushed us to sell far below what we could have received. I kick myself every day for not being strong enough to pull the house off the market and wait, because as soon as we sold house prices started booming and by waiting a few more months we could have got another maybe $200,000 for the property. Sure enough we were priced out of the market, and although we were planning to rent anyway for a year or two, the shame and embarrassment of renting has severely impacted our self-esteem and social life. Everyone we know lives in their own house and most have several rental properties which have appreciated in value more than they could ever have expected. Although prices have now started to fall, and the MSM call it a buyer’s market, falls of 2 or 3% hardly make property affordable.

This is why I like reading this blog and comments. The similarities between the Canadian and Australian markets are uncanny. Whilst first home buyers are now largely priced out of the Australian market, those who bought years ago are sitting on huge fortunes, which, even if they lose 30% have still made a huge profit.

Australians who bought in the last few years with huge mortgages will of course be the most impacted in the event of a housing crash. There are now several blogs and forums relating to the Aust. housing bubble.

We will get back into the market eventually, (maybe 2 or 3 years if things pan out as we expect) but in the meantime, it is very hard to hold your head high and still be a contrarian!

#22 Vancouver mama on 06.10.11 at 11:19 pm

Money’s made on the buy….

#23 Kim on 06.10.11 at 11:21 pm

My girlfriends mom just cosigned a mortgage for her 19 year old gran daughter. Whos the smart one?
Niether one. They both lose.

#24 Nostradamus Le Mad Vlad on 06.10.11 at 11:24 pm


“. . . to look like a loser . . .” — Looks can (and generally do) deceive, esp. “. . . peer pressure, horny spouses and idiot in laws.” See #9 not 1st’s — “Wives don’t give a bloody damn . . .” post.

“There are three active wars.” — With Yemen, there will be four; Saudi Arabia and Iran on the horizon. Add in the US debt / deficit which exceeds their economy, war is about the only thing the Pentagon and WH have left to export. 2016 could be one of the reasons, and Growing mistrust between Pakistan and the US.

“Austerity and higher taxes are sure things. And house prices are at nosebleed level.” — Time to pull the plug and end the charade, move on to the next one.

It will be interesting to see if Obama gets a second term, which is why illegal immigration is being encouraged — that’s the only way he will be re-elected, but the Repubs. are no better.

Best thing Michael can do is to ignore the masses — family, friends — remind them of Bre-X, Nortel, dot.coms, etc. They were all at their price peak, then gone — just like RE now.

A lot of people got hurt then, an awful lot of people are about to get hurt.
*
#171 BrianT — “The latest news (blacked out in Canadian MSM) . . .” — I’m surprised it even made it to the US m$m. Someone must have slipped up.

The only journalist there (he’s been there before, making a nuisance of himself) is Charlie Skelton.

Thanks #166 Derek for pointing that out — 2:12 clip Bilderberg list with countries named; Unilever Bilderberger’s corporate sponsor. Someone has to pay for all my food / booze / naughties! Panic! Can y’all smell the stench of fear? Wall St. is close to ex- or imploding (or maybe both concurrently).

Bonds and Dollar Death “Currently, those bonds yield only about 3%. This implies a huge collapse of bond prices – a collapse of more than 50%. A collapse of that magnitude would completely wipe out the stock market. It would be a massacre…”; Spiral Failure; US jobless rises (unexpectedly); Egypt’s Economy he Arab Spring was a curse; Economic Fundamentals don’t apply to this planet; 14:41 clip Save (and buy) gold now, spend it in 2013; Libya US$2 mln. per day — cost of Libyan war.

‘Quakedateup Not only are wars increasing, so are ‘quakes, volcanoes, etc. 9:35 clip; Geo-Warming jus prior to Japan’s quake. Science stuff, way beyond me. Nevada Son of Fukushima?

Obama Do the Joint Chiefs of Staff and the Prez. know something? NGO’s The new, but unknown govt. leaders of tomorrow. E.coli Life is a bubblegum, and we’re in it. Ooohhhh for the good ol’ days of sex, drugs and rock ‘n’ roll!

#25 2deep on 06.10.11 at 11:27 pm

Speaking of debt and housing screwing up your marriage: I took the wife on a trip to a spa resort and she spent more time watching HGTV in the hotel room than anything else (that’s right, zero action).

I’ve never been so upset at house porn. There’s good reason why I refuse to waste money on cable tv drivel at home.

#26 Tony on 06.10.11 at 11:39 pm

#6 Mark

Nice to know there’s someone to cover all my short positions. I’m betting heavy the TSX will drop more than 50 percent over the next three years.

And you will lose big. — Garth

#27 Utopia on 06.10.11 at 11:44 pm

#7 Bill Grable said…

“Sellers must be freaking”
=======================
They should be freaking Bill. We are just arriving at D-day for Vancouver’s bubble. Everyone who paid attention is already out. Good for them.

The rest are just getting a little taste of reality now. More to come as the ever-rising price fantasy comes face to face with reality.

It is amazing how quickly a bear market in stocks brings everyone back to their senses though. They actually sober up, which is good. They do it way too late, which is bad. This one (correction in equities) has just begun but I assure you, it will be ugly.

Housing will be affected of course because home values in bubbly markets are based more on confidence and (theoretical) potential returns rather than on business models and realistic expectations of investments. Why does everyone forget that leverage works both ways? When prices start dropping you get your heart ripped out along with your wallet.

As Garth has already pointed out today, much of the theoretical gain is just vapor anyway. You only bank it when you sell but in selling the truth is exposed.

Not real money for most after fees, commissions, interest, closing costs, repairs, staging, regular maintenance etc. are finally tallied.

Not as much as they thought anyway. Those bragging to friends about how big a gain they made in a short period of time are mostly just blowing smoke.

Those who hold and expect more appreciation yet are in for a very nasty rude surprise. This year. I wish I was just making it up but there will be hell to pay for those who bought in at the top with small down-payments.

Lots of loneliness between the sheets too I am sure.

#28 Alberta Ed on 06.10.11 at 11:48 pm

Mike should get a good financial adviser. That would bolster his net worth and provide snappy come-backs for the in-laws.

#29 god on 06.10.11 at 11:49 pm

As it was written…

Women ( of which mothers-in-law are approx 50% )have their places.

If they step beyond the biblical boundaries as outlined in the Old Testament, there will be plagues (+ HST)

PS Satan is a realtor/CMHC banker and a Bilderberg member in Eastern Canada (redundant)

#30 Jane on 06.10.11 at 11:51 pm

Love the example of how $70 K turns into $1288. This should be a financial planning textbook every high school and post secondary student is required to read. I always wonder how so many people (me included) are so financially illiterate and ignorant.

#31 Dark Sad Monster Bunny on 06.11.11 at 12:06 am

7 Bill – why do you live at the airport?

#32 Basil Fawlty on 06.11.11 at 12:16 am

Year over year price increases on select commodities:
Corn 118%, Wheat 71%, Cotton 83%, Sugar 61%, Coffee 96%.
What is happening here on planet earth? Will it affect my freedom 55 golf game?

#33 Ex-Cowtown on 06.11.11 at 12:30 am

Mike:

We had the big house in the upscale neighborhood. It looked great from the outside, but it was a money pit and cost a fortune in maintenance, upkeep and taxes. We sold it a couple of years ago, pocketed the cash and now rent. Yes, it was nice taking a capital gain off the table, but surprisingly, the biggest reward was the piece of mind knowing that we were no longer at risk with so much of our net worth in one risky asset.

And the second biggest surprise was how much our relationship improved with all the pressures of home ownership off the table. Anyone who tells you that owning a home is a pleasure is a liar. It is a hassle. If a boat is a hole in the water into which you throw money, a house is a hole in the ground. GT’s view is correct, your house should never be more than 30% of your net worth, then you don’t worry about whether it goes up or down in value, it’s just a place to live.

And isn’t that what your home should be?

#34 Utopia on 06.11.11 at 12:52 am

You just have to read this article. Not kidding.

This is beyond incredible. In the US, Banks are not repossessing homes, home-owners are living rent-free for years on end, bank balance sheets are ruined, the Government itself may be on the hook in the end……..

It is a rare day that an article on Zero Hedge receives more than 600 hundred comments. This is obviously very emotional stuff.

I have to wonder if what we are now witnessing is the socialization of housing itself for a growing underclass of the disenfranchised and dispossessed.

Is America now heading into a period where the Government (who backstops bank debt and other obligations) will ultimately become the landlord of last resort as stressed banks fail and massive real estate portfolios are acquired by the state?

Crazy right? Think of the USSR here and how most real property became assets controlled by local and regional bureaucracies.

That is not possible though, you cry out!!! It just cannot happen in America! Maybe yes and maybe no.

Read on and then you decide what the future might hold as the housing market there continues to devolve and millions more home owners are scheduled to soon be underwater on their mortgage debts as the bottom continues to fall out of the market…..

http://www.zerohedge.com/article/meet-squatters-here-are-millions-americans-who-live-mortgage-free-5-years-and-counting

The original CNN article that touched a big raw nerve..
http://money.cnn.com/2011/06/09/real_estate/foreclosure_squatter/index.htm?iid=Lead

Like I said. You absolutely have to read about the state of US housing where “The topic of Americans living mortgage-free in foreclosed homes on which banks do not have proper titles…” has now become an issue of entitlement for the millions who squat for a living in their own houses.

Millions,…millions!………..Just Incredible.

#35 Randis on 06.11.11 at 1:03 am

Very well said, as time will tell everything.

Just came across this story today: someone I know bought a pre-build condo a couple of years back and finally it closed. For ~700 sq ft. he bought for 430k. For some reason he wants to sell and agent told him it worths 460k. After some time he still owns it and the hopeless man is soo desperate he is listing it at 415k now … still no buyers around, and he is crying he pants off everyday.

Anyhow, I never liked this guy so I don’t care about him as he has always been stupid. I mean, heck, he even suggested my then-girlfriend-now-fiancee to break up with me because I am too handsome and I would cheat. WTF is that?

#36 604genX on 06.11.11 at 1:13 am

There are few things worse than listening to a bunch of subprime borrowers crow about how smart they were to buy and how renters are “just renters”.

My solution to shut them up: rented an outstanding house better than any my friends own. Rented at reasonable rate and well well under carrying cost. The reaction: some envy cause they know it is a great deal, others less smug because it turns the discussion into pure economics of ownership (which they cannot win). I’ll ride out the coming meltdown in style. Living in this place already feels good. Watching values melt around me will be even better.

BTW it is owned by offshore Chinese. They are subsidizing my stylish livin-large lifestyle. Love it and love them!

#37 Coho on 06.11.11 at 1:22 am

And remember. Behind every successful man stands an astonished mother-in-law.

LOL! That’s a good one, Garth, and it’s truer than we think. The culture of “no one is good enough for my son or daughter” is alive and well. Family ego…often 3’s dressed as 9’s putting on airs. Love can be blind — that is understood — just hope you don’t fall for a daddy’s girl or a momma’s boy…..

In such cases it is hard if not impossible to be truly embraced by the family you’re marrying into at the best of times. Add in money issues or not being able to keep up with the Jones’ and one goes from being tolerated to being the Goat. So, the pressure is great to accommodate or attempt to rise to the expectations of the “family”. If you are unlucky enough (or blind enough) to marry into this kind of family, you may find that if you do well, they’re jealous. If you struggle, you’re criticized. You can’t win.

So, whatever you do, make your own decisions (between the two of you) and thus make your own mistakes if that be the case. If you submit to pressure from the outside and go against your own better judgment you will be adding water to the seeds of disharmony between you and the peanut gallery, whoever they may be. And you won’t be too happy with yourself for caving in, either.

#38 Duke on 06.11.11 at 1:26 am

“Behind every successful man stands an astonished mother-in-law.”

I fell off my chair on that one! Good one Garth!

#39 Bailing in BC on 06.11.11 at 1:44 am

#9 not 1st

You appear to be marrying the wrong type of woman.

#40 Josh L on 06.11.11 at 2:42 am

#6 Mark,
Why would you throw a dart at the board to pick a stock when you can throw a hundred darts at the board with one ETF? Diversity is your friend.

#41 Utopia on 06.11.11 at 2:56 am

Will Adam Smith be vindicated in the end?

Do states actually mis-allocate funds and create malinvestment through negligent policy, easy credit, leverage and intervention?

Jim Chanos seems to think so and I happen to agree with him where the Chinese property bubble is concerned.

Let’s then take a small step back in history. We will travel back a mere 6 months to December of 2010 and review a video interview and Seeking Alpha article of that month.

At that time, Cullen Roche of “Pragmatic Capitalism” wrote an article entitled “Biggest Story of 2011, China’s Real Estate Bubble….”. [see below]

As we are now seeing, he could not have nailed it more accurately. The video interview with James Chanos is well worth your time and review as what we are now witnessing is almost exactly as he predicted.

Mal-investment has reached a climax. The property bubble there is deflating and the consequences for the global economy should now be clear as demand for almost all commodities except food begin to taper off.

So this is it, CNN video attached: Watch it. Wake up.

http://seekingalpha.com/article/241215-biggest-story-for-2011-china-its-looming-real-estate-bubble-and-neo-mercantilism

Not related to the story but worthy of note is how some Euro Union Members will fare during a slowing global economy as the China miracle fades slightly.

Let’s think this through….with debt/GDP levels already at extremes, how will those stressed member states manage as export revenues decline and debt burdens become a larger share of GDP? How will they manage their debt burdens under IMF auspices and ECB oversight? Will default then become inevitable for Greece, Ireland and others?

You probably already know the answers. I won’t therefore, bore you with the details. I will only suggest that getting your personal investments to a safe shelter is probably a very good idea right now.

There is a shit-storm of trouble coming. Can you see it?

#42 Aaron - Melbourne on 06.11.11 at 3:02 am

Brian and Michael, you guys need to cultivate a healthy sense of schadenfreude.

Quietly recline safe in the knowledge that you have aired your views and those that are dissenting will look the fool when the inevitable happens.

If you come out the other end with your finances intact, you’d be entitled to a certain aire of smugness.

And if you’ve got pressure up the wazoo from family members DON’T YIELD to the herd mentality. There can be nothing more satisfying than a sturdy and well placed “I TOLD YOU SO” to assert your credentials for future family debates.

#43 Aaron - Melbourne on 06.11.11 at 3:06 am

A divorce-forced sale could be a blessing in disguise?
How does that song go again?

Whoa-a-oh: TAKE THE MONEY AND RUN

#44 Utopia on 06.11.11 at 3:10 am

#9 Not 1st wrote……..

“Wives don’t give a bloody damn if you ever own a stock or a bond or a GIC. They only care about one asset and thats a nice big house with room to grow.

They don’t care about its future value”.
==============================

You have never gone through a divorce, have you?

#45 Aquarian on 06.11.11 at 4:22 am

Not all wives are like that! I’ve got one husband and when his friends start spouting about how much they made in the first three months of owning property, I’m like that doesn’t even cover your costs!!
Love the blog Garth! Even if you are a boomer:-))

#46 SquareNinja on 06.11.11 at 6:13 am

#7 Bill – If the REALTURD doesn’t stop via senior manager’s warnings… get his name and call up the Real Estate Board of Greater Vancouver. He’ll be really screwed, then!

#47 David B on 06.11.11 at 6:14 am

The roller coaster is on one of those slow downward rolling turns ……

From this mornings WSJ ….

By E.S. BROWNING
Friday’s stock market plunge knocked the Dow Jones Industrial Average below 12000 for the first time since March, sending the index to its sixth consecutive weekly decline, its longest losing streak since 2002.

The blue-chip swoon, which pushed the average down 172.45 points, or 1.4%, to 11951.91, was fueled Friday by fears of continuing U.S. economic weakness, as well as growing signs that Greece will prove unable to repay its debts and worries about slowing Asian growth. The Nasdaq Composite Index, which has been buoyed by technology shares, shows a small decline for the year.

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

Here in Canada …… Ottawa has has the axe out industries/business will follow like sheep …. and that you can take to the bank. How safe is your job and wealth?

#48 bullion.bunny on 06.11.11 at 6:56 am

#10 Tony on 06.10.11 at 11:39 pm
And you will lose big. — Garth

Don’t think so, liquidity is disappearing fast. The sub-prime mortgage bonds (ABX.HEAAA.06-2) have broken down again. The was the indicator for the 2008 meltdown, not to mention the fact that the Chinese market has broken down.

http://www.zerohedge.com/article/guest-post-classic-technical-signal-china-breaks-down

Better yet how about the down grade of U.S. debt by German and Chinese rating agencies?

http://ca.news.yahoo.com/china-ratings-house-says-us-defaulting-report-054309883.html

http://www.zerohedge.com/article/german-rating-agency-feri-downgrades-us-government-bonds-aaa-aa

Your belief that this market we be levitated until the end of time is wishful thinking at best. Housing will collapse here in Canada as it has in the U.S. The party here in Canada has been fueled by nothing more than debt expansion and heavy government spending. Once that ends the contraction that started in 2008 will continue and this includes the stock market. Credit expansion leads the stock market, leads the economy. It’s worked this way from the days of Rome. Why is it different this time?

#49 Lisa on 06.11.11 at 7:57 am

To “Aussie”,

No shame in renting…don’t buy into that line of thinking. There’s plenty of shame elsewhere. Yes, in our vapid consumer, material culture, it seems like the worst thing in the world to lose out some money and not “WIN”, as that wacko Charlie Sheen puts it, but get some higher perspective.
I too sold a house in 2009 in Toronto and lost out big time. Renting now and saving, biding time…there will be a better day coming. This is only a blip on the radar. It does not define you! It is a bump on the road!

#50 Kim on 06.11.11 at 7:57 am

#9 Brad .. I meant #8 “Wives don’t give a damn…” LOL

#51 Daisy Mae on 06.11.11 at 8:33 am

Tim on 06.10.11 at 10:42 pm

“We’re priced out of Vancouver, even with a healthy correction. It would have to fall over 50 percent for it to make sense to buy. Here’s the next craze, Mississippi shotgun housing. Check out this 320 Sqr footer:

> > http://ca.shine.yahoo.com/downsized–family-lives-mortgage-free-in-320-square-foot-home.html

How does this differ from a mobile home…except that mobiles are, well, movable?

#52 Heloguy on 06.11.11 at 8:52 am

Garth wrote “It proves once again we’re surrounded by people disconnected from economic reality”.

This is just a nice way to say that the average Canadian is too stupid to think for themselves and will follow what their parents and others tell them they should do. I’ve stopped sugar coating the predicted outcomes and just tell people now that they should go ahead and buy the house they want (not need) and when I’m laughing at their expense when they can’t afford to feed themselves to not come knocking on my door for a can of beans.

Cheers

#53 BrianT on 06.11.11 at 8:53 am

#34Utopia-The MSM take on this one is somewhat misleading. These people bought homes. They borrowed money to buy the homes. As proper procedures were totally ignored by the financial firms, it is unclear who has an actual lien on the property, or who the money is actually owed to. Imagine if the situation was reversed-what if you had millions of USA homeowners who had paid off their mortgages in full yet had absolutely no documentation proving that they had ever paid a dime. They wouldn’t be getting any sympathy from the MSM-people would say they should be out on the street for being so reckless with their finances. Yet when the financial firms DO THE SAME THING it doesn’t count.

#54 Ex-Cowtown on 06.11.11 at 8:54 am

Been following the Sino-Forest saga. Caught a blurb this a.m. on TV from a Shanghai based analyst dismissing Sino-Forest, not that it is a fraud, but more that it is just business as usual in China. These guys claim that they send their own people out into the field to check things in China and kick the tires and that there are frauds all over the place.

The interviewer then asked how can a retail investor protect themselves. The analyst said “You can’t”.

Apparently the Wild Wild West is now the Wild Wild East.

#55 Kaganovich on 06.11.11 at 9:06 am

Utopia

Here is an essay by a Chinese activist/scholar explaining what happened politically in his country over the past couple decades. I have the subscription but you will be able to read in in full on Monday. Most people here still seem to think China is communist when it seems to be mired the same crony-capitalist muck we find ourselves in, hence the bubble. Minq Li’s explanation of the political shifts in China will give some a much clearer view of the Sino situation. You will find it interesting no doubt.

#56 Kaganovich on 06.11.11 at 9:07 am

Utopia, sorry, forgot to post the link:

http://monthlyreview.org/2011/06/01/the-rise-of-the-working-class-and-the-future-of-the-chinese-revolution

#57 Form Man on 06.11.11 at 9:08 am

A representative from a large local readi-mix company stopped by my construction site office in Kelowna yesterday. ” Getting any sales ?” he asked. “Nope, I said, not since last October”. “Oh”, he replied. ” Well I just heard that home prices are going to start going up”. I reminded him that there are over 5300 MLS listings in Kelowna right now, and some 300 per month in sales. I felt it was unlikely prices would rise until inventory dropped substantially. “The real surprise”, I added, “is that prices have remained as high as they have, given those stats”. He brightened at that statement. ” that’s because everyone wants to live here” he said………………

#58 Form Man on 06.11.11 at 9:26 am

E.I has a program for extending benefits for an extra 12 months. This program pays recipients, and coaches them in the intricacies of setting up their own business. These people are classed as ‘self-employed’ during this process, even though they are still collecting benefits. When you read stats that show self-employment increasing, that is due to these people. This kind of blatant manipulation of statistics is troubling; not to mention the dubious merit of deciding the long term unemployed are suddenly good candidates to be in business for themselves……

#59 Brad in Cowtown on 06.11.11 at 9:43 am

re: betting against the TSX

“And you will lose big. — Garth ”

I would sincerely be anxious to hear the reasoning behind this opinion. With a Conservative majority meaning no more stimulus, high dollar, crippled trading partner to the south, personal debt levels out of control, housing about to fall wiping out massive “wealth”, inflation eating away affordability, wages stagnating, and unemployment rising…

Somehow in all that you see the TSX rising?

Seriously?

It’s all a function of commodity prices and corporate profitability. Neither will be halved. That is an absurd position. — Garth

#60 Justsayin on 06.11.11 at 9:51 am

#8 you are exactly right! My wife and I have a 5 month old baby. My wife’s master plan of wedding, house, baby has run into a snag. I refuse to buy into this madness and everyone (and I do mean everyone we know) is pressuring us to go $500,000+ into debt so we can live happily ever after. Unfortunately a couple of our friends bought 5 years ago and have done well so far and that makes it hard. I quietly go to open houses and ask questions to make realtors squeamish. I spoke with one last week and explained that I believe we are in a for a nasty correction and she actually agreed we are in a huge real estate bubble in Victoria. I looked at my wife whom has a degree in economics from UVIC and that didn’t even phase her. She hears what she wants to hear.

#61 maxx on 06.11.11 at 9:52 am

#10 Nick on 06.10.11 at 10:36 pm

“If you think the market is slow now, wait until interest rates go back to normal levels, in a couple of years, just in time for the return of the mandatory 20% downpayment, like they’re doing in the UK right now. I’m not buying until rates are at 7%+.”

Were it only so Nick- it looks like some of the UK banks are at it again. In the 04 June edition of The Guardian, there is an article on page 6 of the Money section about the return of the 95% mortgage, albeit at higher rates.
On page 1, there is an article about a couple of brothers who have acquired 120 lower-end properties and are now headed to own 200.
Here’s the problem I have with these brothers and many others like them:
1-They are sponging properties that many young and financially adept people who want to start a life and build their own wealth would love to own but are stuck off of the property ladder unless they ante up stupid prices for very modest homes;
2-They are skewing prices artificially skyward with bulk ownership and ruining the real economy with a disproportionate quantity of landlord-owned real estate;
3- They don’t care for these properties the way a non-landlord homeowner would;
4- Their business model adds very little to the tax base.

Yes, we live in a capitalist society, but when capitalism becomes far more important than people, the economy will suffer. A huge quantity of motivation is removed from society and its fabric weakens. 120, 200, 1000 properties? How much is enough? There should be limits put in place to optimize economic health. I am not leftist, far from it, and I believe in economic prosperity and the motivation to acquire wealth.
I propose the following:
By all means, buy as many properties as you like, however, in order to promote fairness (not everyone wants to be or can become a multiple property owner) acquiring real estate should only ever be permitted according to the following:

-Home properties under 500K: maximum 1 per person; cottage property, same deal; (therefore, one of each category per person);
-500K to 1MM: Max 2 per person;
-1MM and up: knock yourself out.

This would contribute in a huge way to balancing economies by implementing a stabilizing anchor in real estate, and therefore the real economy.

What to do about current owners of multiple properties? Let attrition take care of it and have a sliding scale of rent tax, increasing with each property owned above the prescribed limits.

Just saying…..

#62 Daisy Mae on 06.11.11 at 9:57 am

“….average Canadian is too stupid to think for themselves….”

They can’t read, either.

Re BC’s upcoming HST referendum, people who dislike the HST say they’re voting ‘no’.

Wrong! If they want to get rid of the HST they must vote ‘yes’.

It’s a clever maneuver — a trick question — and Clark states she is “not responsible for the wording”. So this referendum is going to be a farce…

Read the question!

#63 Daisy Mae on 06.11.11 at 10:03 am

The referendum question will be:

“Are you in favour of extinguishing the HST (harmonized sales tax) and reinstating the PST (provincial sales tax) in conjunction with the GST (goods and services tax)?”

#64 Don'tBelieveTheHype on 06.11.11 at 10:04 am

Michael, here’s the mantra I follow: The more they tell me I’m crazy the more I know I’m right. Hang in there.

#65 JohnnyBGood on 06.11.11 at 10:11 am

#182, 183 disciple on 06.10.11

WHAT IS ELECTRICITY? WHAT’S THE CONNECTION TO HOUSE PRICES?

You bring up some interesting points about electricity. I am not an expert, but I have done some research into this area. Some points for anyone who is interested:

Electricity is radio-frequency electro-magnetic radiation. Yes, electricity is radio waves, just like the ones that bring you tv (even via cable), cell phones, Internet, radio, and microwaves.

Electricity does not travel through a wire. The wire is merely a waveguide. The electro-magnetic field surrounds the wire and radiates out from it.

The electrons are not the power source. The electrons are merely carriers. The energy comes from photons that jump from electron to electron. The photons come from the electrons.

Electrons do not travel through the wire at the speed of light. The electrons oscillate very quickly because they are being constantly excited by photon transfer, but they travel through the wire very slowly.

Photons are the carriers of electro-magnetic energy. When they oscillate within the right frequency range we can see them as light. At other frequencies we call them radio waves, which include microwaves.

Wireless is simply radio without, well, the wire. You can induce an electric current with sufficiently strong radio waves.

That’s what Tesla (as far as I know, but I haven’t really studied him in depth) was onto. The idea of wireless electricity is nothing new, and it’s no great leap of intellect when you understand what electricity really is. The question is: is wireless electricity feasible? I really don’t know.

Tesla’s great leap was that you can pull electricity right out of the air for free and transmit it wirelessly.

Some people claim that JP Morgan, who financed Tesla for a while pulled out because he realized the economic implications of free, wireless electricity and he tried to thwart Tesla’s work.

JP Morgan was America’s top banker. He was behind the formation of the Federal Reserve. The Fed gave us fiat money and inflation. This created the housing bubble. When the bubble burst, house prices in the US and around the world crashed.

Maybe Morgan should have stuck with Tesla.

#66 KIM on 06.11.11 at 10:13 am

Utopia # 34

What is more amazing is that the US economy is still in shambles and millions of people living for free have extra money to spend but the economy is still bad. What if these people had to pay mortgage/rent? That would be less money for the economy. These banks are pretending these mortgage defaults are not on their books. If the banks were to write the bad loan off many banks would be bankrupt. Amazing how the conservatives seen the housing mess in the US and created one here.

#67 Daisy Mae on 06.11.11 at 10:15 am

“….I’ve got one husband….”

Only one?

#68 Mr Buyer on 06.11.11 at 10:18 am

I have been checking mls listings in Ottawa for detached SFH for over a month now in the price range from 125k to 250k. This is the first place I have seen in over a month (I did not see any for months before that either but I paid closer attention this past month)
http://www.realtor.ca/PropertyDetails.aspx?&PropertyId=10778388&PidKey=-1675778511
I was talking to I guy while standing in this part of Ottawa a few weeks ago and he said in passing houses were now going for 350k in that area. This floored me because this part of town is not the prettiest with lots of old houses, old bars and shadier types hanging around (scott street is not so bad but the houses are still old)

#69 Mr Buyer on 06.11.11 at 10:19 am

I should clarify that I was looking for places in the city

#70 eaglebay on 06.11.11 at 10:38 am

#61 maxx on
Your idea is ridiculous. Freedom is freedom.
True capitalism doesn’t exist in Canada.
Go hug a tree. Duh!

#71 KindaDifferent on 06.11.11 at 10:48 am

Dear Not 1st,

You are a f’cking misogynist! All you men so worried about your money, real estate, stocks, fine but don’t trash women, you horny bastards!

#72 KindaDifferent on 06.11.11 at 10:51 am

#25 Maybe you’re just not that interesting and your wife seeks a diversion from your pathetic presence and turns on HGTV in the hotel room? Just a thought….

#73 Utopia on 06.11.11 at 11:08 am

#53 BrianT on 06.11.11 at 8:53 am

“#34Utopia-The MSM take on this one is somewhat misleading”.
==================

No problem Brian I sure agree with you there. The media often slants stories and this is no exception. But still, the outcome is really beyond belief. You just can’t make this stuff up. To me, it is just one more sign of how out of balance the economy really is in the US. The social implications alone are probably worth a book. What is strange is how so many have just adapted as if it is all normal. Hardly anyone recalls what normal is anymore when it comes to home ownership.

#74 TorontoBull on 06.11.11 at 11:26 am

‘It’s all a function of commodity prices and corporate profitability. Neither will be halved. That is an absurd position.”
and commodities are a function of loose monetary policies..if we see monetary tightening look out for a correction in commodities.

#75 JRL on 06.11.11 at 11:26 am

Great webpage Garth – I generally agree, but unfortunately I had to learn the hard way. Men hunt, women nest, and women seem to be hard-wired to want the biggest, swankiest ‘nest’ you can afford, presumably a reflection of their domestic success. Terminology is the tipoff – “It’s not a house, it’s a home!” (whatever that means?) House-porn is basically correct.
I played the game when I was young, but then I grew up, grew old, grew cynical. Now I just want a shotgun shack in the bush where I can get off the grid and get far away from the big city hive-mentality, go fishing, hunting, be left alone. Been watching the prices fall in Nova Scotia, with cash. No more of that mortgage nonsense for me. You are giving good advice Garth, wish I knew this when I was younger, but then again, young men think with the little head so I probably would have repeated the same stupid moves.

#76 Ronaldo on 06.11.11 at 11:39 am

http://money.cnn.com/2011/06/09/real_estate/foreclosure_squatter/index.htm?iid=Lead

Living rent and mortgage free in Florida….

#77 Mister Obvious on 06.11.11 at 11:51 am

#60 Justsayin

“I looked at my wife whom has a degree in economics from UVIC and that didn’t even phase her.”
———————-

Perhaps a re-accreditation of University of Victoria’s economics department is in order.

#78 BrianT on 06.11.11 at 11:58 am

Often posters will discuss the “world class” city of Chicago and compare it favorably to Toronto-this is absurd-Chicago is going down for the count-now even the best neighbourhoods are under seige-Janet Tavakoli summarizes this http://www.huffingtonpost.com/janet-tavakoli/chicago-gang-violence-_b_873200.html

#79 TurnerNation on 06.11.11 at 12:08 pm

Reading the Whistler BC (a resort town) weekly newsmagazine I see a couple of articles lamenting the area’s ecomomy in the post Owe-limpics haze. Hotel bookings down, taxes up.

#80 Debtisforever on 06.11.11 at 12:10 pm

Last night’s top story on Global Tv here in Vancouver was the economic situation. Bunch of analysts were interviewed saying perhaps we’re in worse shape than we thought (not a great jobs report, more people dropping out of labour force, things bad down south, interest rates going up, too much debt).
Of course, the Canucks were on so I doubt anyone was really watching.
Carry on! Buy that $800k house with 5% down! Nothing to see here folks.

#81 Nostradamus Le Mad Vlad on 06.11.11 at 12:10 pm


Another delightful day here — still above zero, the ‘Nucks are one win away from the biggest orgasm Vancouver has ever known, and I managed to fall out of bed at the crack of noon!
*
Radioactive Steam See clip from six mins. and watch how the cloud blankets the area. Edgar Cayce may well be proven accurate with his prophecy, that Japan would sink, and School Zone limits almost 90 times higher than Chernobyl.

The m$m Is Really Stupid Here to confirm that is the Top 10 List of Bilderbergs from the Stoopidm$m, and And now . . . The five unnamed guests to Build My Burger Please!

Not the Ministry of Silly Walks Instead, this is a brand new ministry created by the US govt. Spot the difference! Alternate Universe Apparently, NATO has one and it’s not the Vancouver RE market, and Bushama The final bubble.

Opposition Trouble is, it is not Obama’s war on Libya; it is the elites. Obama is simply following orders.

8:01 clip Jim Rogers may have cottoned on to something here.

1:26 clip Evidently, sprouts did cause the E.coli outbreak in Europe.

#82 Ronaldo on 06.11.11 at 12:11 pm

http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2011/6/11_Eric_Sprott.html

Eric Sprott on the May 1st takedown in the silver market and the economy in general…

#83 2 deep's wife on 06.11.11 at 12:17 pm

#25

Hubby took me to a “spa resort” but the only action I saw the whole weekend was watching Holmes on Homes and dreaming of his impact driver.

He’s too busy getting his kicks from chatting up the girls at our cable company trying to shave a few pennies of our cable bill.

#84 TurnerNation on 06.11.11 at 12:18 pm

Taxes in Toronto: Ford’s (aka Boss Hogg) private army of security & revenue enforcers do not come cheaply!
Don’t even try and protest…they’ll go all G20 on you:

TPSB ratifies new contract for officers
Toronto police officers are set to become some of the highest paid officers in the province.

The Toronto Police Services Board ratified the police force’s four-year contract Thursday, meaning officers will see an 11.5 per cent pay increase.

That works out to just over 2.7 per cent a year.
Some Toronto city councillors have questioned the increase, saying the spike is at odds with Mayor Rob Ford’s demands of 10 per cent cuts in every city department.
Currently, salaries make up about 90 per cent of the police operating budget.

#85 TurnerNation on 06.11.11 at 12:27 pm

Maybe it’s time for a special Renters’ Suicide hotline (call 1-800-RENT-SHAME) to help these wretched renters deal with the inter-generational shame and failure they’ve bestowed upon their lineage? ;)

Ancestry.com should have a special tag for “Renters” in the family tree, so as to warn potential suitors of a flaw in this bloodline’s gene pool.

#86 Cookie Monster on 06.11.11 at 12:29 pm

#63 Daisy Mae on 06.11.11 at 10:03 am
The referendum question will be:

“Are you in favour of extinguishing the HST (harmonized sales tax) and reinstating the PST (provincial sales tax) in conjunction with the GST (goods and services tax)?”

Yes, the question more accurately should be “Do you want to be shot in the head or shot in the stomach”. We encourage everyone citizen of this great country to exercise their vote. Your death is your fault. You got what you voted for. Good luck.

————
Also, couldn’t remember what the acronym FIAT stood for so I made one up… Federal Inflationary Asset Trap. This I can remember.

#87 Barb on 06.11.11 at 12:32 pm

The broad generalizations about “wives” is a bit ridiculous. There are all types in each gender. I don’t feel the need to defend my gender very often, but the truth needs to be spoken in this case!

#88 JohnnyBGood on 06.11.11 at 12:38 pm

#71 and 72

Wow. I usually don’t like to get personal with comments, but you sound like you have more issues than Maclean’s.

#89 Cookie Monster on 06.11.11 at 12:48 pm

65 JohnnyBGood on 06.11.11 at 10:11 am and Disciple,

Electrons do exist and only zero mass particles can travel at the speed of light, meaning light, meaning photons, meaning the electromagnetic field around a current carrying conductor. The net velocity of DC electron flow is measured as DC current, the NET speed of AC electron flow is zero, the AC current is an RMS value. The speed at which electrical signals travel through a conductor is dependent on the electromagnetic impedance of the conductor or circuit. With AC current the electrons just oscillate back and forth in the wire, but the speed of the wave field is very fast, say half the speed of light such that the voltage at any point on a 1000 mile conductor rises and falls very close in time, at say at half the speed of light.

Like the speed of sound in air or water is different, the speed of the wave front movement or pressure is not actual movement of the air or water molecules themselves, it’s only propagation of wave or pressure signal that is moving very fast, pressure or transfer of force between adjacent molecules. In electricity it’s electrons.

Cookie Monster
B.Sc. electrical engineering

#90 Herb on 06.11.11 at 12:53 pm

Mr Buyer @ #68,

note that the listing starts off with “contractors take note …”

Hintonburg is one of the Ottawa areas being gentrified, and the reason the house is only priced at 250K is its small lot, which limits expansion or rebuilding, although renovation could add a lot of lipstick. An MLS search – http://tinyurl.com/3bjbh2v – shows that it is the cheapest of the 52 houses in the 250-300K range in urban Ottawa, including Gatineau.

Don’t know where you moved in from, but don’t expect to find a detached SFH in downtown Ottawa for 125-250K.

#91 detalumis on 06.11.11 at 12:54 pm

#8 I am sure you picked your wife for her hotness factor and not her intelligence or financial acumen. If I had waited for my husband to provide for me I would be living in social housing today. Everything I have I worked and paid for myself including my house. Buying this overpriced thing in 1990 before the last crash and watching it fall and rise and fall in value is very entertaining and I would say it’s the best thing I ever purchased. The big reason is that it is on a great big treed lot in the middle of south Oakville trophy wife country, has convenient access to Toronto, I am overtop an underground stream and can drill a well to get my own water and it has enough room to raise chickens. My neighbours have put in some nice chicken coops and I think I will follow suit.

#92 Dark Sad Monster Bunny on 06.11.11 at 12:58 pm

Kinda different – I hope you are.

For many men, the role of “breadwinner” remains the
largest part and source of stress in their lives. While I
know couples who successfuly run the “dual” household,
for many, including younger ones, the traditional model
is followed. While women today are supossedly
empowered, there remains for many a fallback position –
marry a good provider. For men, this is socially still not
generally accepted.

Even if not married, men are still expected to be
productive workers. Think of guys who may work part-
time in order to support their passions – skiing, surfing,
whatever. We label them “ski bums”. If women do this,
we call them “free spirits”.

From my upbringing, this doctrine was not only implied, it was just simply there – ie no other option. It remains
that way for me today.

#93 jess on 06.11.11 at 1:13 pm

mad vlad

Ever wonder why they scream at the teacher who makes 47k /year and PAYS TAXES whilst the screamers pay ?
Betsy DeVos
From SourceWatch
Jump to: navigation, search
Betsy DeVos, the former “chair of the Michigan Republican Party, has a little known connection to war profiteering and private security forces in Iraq.” Her younger brother, Erik D. Prince, is “the founder of Blackwater USA, a private security firm currently working in Iraq.” [1] [1]

Betsy DeVos
Last year, for example, just one political action committee registered by AFC in Indiana amassed $4.6 million from only 13 donors–none from Indiana. The list included Alice and Jim Walton (two billionaire Walmart heirs), a trio of super-rich global speculators (who, interestingly, say they base their risky gambles on poker strategies), a multi-millionaire operator of a national chain of for-profit charter schools, and Betsy herself. Very little of the money stayed in Indiana–more than $4 million was flung out to pro- privatization front groups and candidates running campaigns in Florida, Georgia, New Jersey, Pennsylvania, Utah, and Wisconsin. This shell game is repeated in campaigns around the country, with the same core group of gabillionaires putting up the cash.”

=
front groups
AMERICAN LEGISLATIVE EXCHANGE COUNCIL.

Billionaires’ front groups attack workers, public schools, and young voters
http://www.hightowerlowdown.org/node/2680

Erik Prince is the founder of private military corporation Blackwater USA.[1] In February 2009, shortly after Blackwater changed its name to “Xe,” Prince announced he was stepping down as the company’s CEO, but would remain its chair. “I’m a little worn out by the whole thing, the politics of it all,” he said.

#94 Nick on 06.11.11 at 1:18 pm

#61 maxx Thanks for the update, interesting indeed.

#95 Hoof - Hearted on 06.11.11 at 1:20 pm

S*x toys?

Aaron Russo – Architecture Of A Prison Planet (Pt. 4)

Re Women’s movement…. part of NWO?..interesting thesis

http://www.youtube.com/watch?v=_cgl_N0THFs&feature=autoplay&list=PLD11952E899DF1932&index=4&playnext=4

This is an 8 part series ( you can track them on you tube )

Here’s part 1

http://www.youtube.com/watch?v=NbhzgZqWt8k&playnext=1&list=PLD11952E899DF1932

#96 kata on 06.11.11 at 1:34 pm

I think there is no correction. You will see what I mean. Prices wont go up, they will stay as it is for many years to come. If you did not buy, sorry for you. You will be paying rent for many years to come as well.

#97 Sad on 06.11.11 at 1:35 pm

TurnerNation on 06.11.11 at 12:18 pmTaxes in Toronto: Ford’s (aka Boss Hogg) private army of security & revenue enforcers do not come cheaply!
Don’t even try and protest…they’ll go all G20 on you:

TPSB ratifies new contract for officers
Toronto police officers are set to become some of the highest paid officers in the province.

The Toronto Police Services Board ratified the police force’s four-year contract Thursday, meaning officers will see an 11.5 per cent pay increase.

That works out to just over 2.7 per cent a year.
Some Toronto city councillors have questioned the increase, saying the spike is at odds with Mayor Rob Ford’s demands of 10 per cent cuts in every city department.
Currently, salaries make up about 90 per cent of the police operating budget.
———————————————————-

Toronto is like a police state? Lot’s of money for corporations and special interest groups and lot’s of money for the police who protect said corproations and speacial interest groups. Not one word from the corporate media. Why? Anyone else asking for an increase get a mouthful from the corporate media. They have to pay people good money if you want a G20 police force where corproate law rules the day and the people mean nothing. Welcome to Conservative land under the leadership of Ford. If I was the public sector I would rings that bell about police getting CRAZY increase in pay and benefits all day long. Ford and the corporate media do not have a leg to stand on. That won’t stop them spreading their corproate media propaganda.

#98 BrianT on 06.11.11 at 1:48 pm

#87Barb-Yes these are generalizations, however these generalizations are more accurate than pretending the differences do not exist in this regard. You are simply not going to meet men who will want to buy a house even if they are certain it will likely be a financial disaster. That is a female trip solely. In the same way, you will not read about a female senator or congresswoman sending pictures of her vagina over the net to scores of men-not gonna happen EVER.

#99 oldmac on 06.11.11 at 1:53 pm

A common meme I see around here is ‘the social pressure and embarrassment of renting’. Look, if your friends and family insist that you buy a home you can’t afford to, just to live up to their expectations; they suck. Yeah that’s right, get new friends. Maybe stop talking to your crappy family for awhile. They probably aren’t that awesome anyway.

You know, if your kids are suffering because of your living conditions or you live in squalor; yeah maybe you should pull yourself together. Maybe that criticism is just. But when society sees it as more acceptable to buy an overvalued, 800 sqft condo to squeeze yourself into than rent an 1800 sqft house for the same monthly cost, we’ve got some backwards expectations.

As a young man who makes twice the median earner in Canada, I rent. In some parts of the country it would make more sense for me to buy, but not where I’m at currently. Everything I own is paid for. That by definition is ownership. I rent my house from a landlord, others rent it from the bank. They assume they are owners because they have title for the time being. This also gives them the perception that they ‘own’ the $50,000 truck they drive around. They don’t. I own my car. I own my truck. It’s because they’re paid for. The same with all my tools. The same with all my technical gear. And those assets, along with my investments, are a hell of a lot more liquid than a house. They also have more intrinsic value than this suburban heaps or leaky condos that are smashed together in an array of ugliness.

My conditions give me a sense of mastery over my environment. I don’t have to sacrifice my principals to some asshat boss or a crappy job because I might ‘lose’ my house. I can take the next year off should I so decide. I can learn things outside of my primary designation without fear I’m wasting time on things that don’t directly contribute to my income. I can approach things in a retracted and logical way because I’m not so emotionally charged by my situation. I don’t have some trophy wife with delusions of grandeur and no work ethic pulling my strings. I don’t have a bunch of crappy friends that laud themselves as economic scholars for owning houses.

Some my friends own houses, some of them don’t. Most of them who do have the intellectual honesty to admit the burden it causes them in this climate. Some of them regret buying. Some of them have resigned to the fact that they will be putting some 45% of the after-tax household income toward this thing for the next 30 years, and have adjusted accordingly. I don’t envy their position. Reality is quickly catching up with them.

As Garth’s picture alludes to; the conditions a good many people expose themselves to by home ownership will inevitably lead to divorce. The kids get dragged into this. They friends and family become aware. The mortgage looms over your head like a dark cloud.

It gets ugly real quick. That 40 extra lbs you carry around on your gut is no longer seen as ‘cute’ or passable by your spouse when the housing market tanks. It was OK before when you were ‘a good earner’; now you’re just a broke fatass that your yoga obsessed wife has to sleep with when the money train stops. She quickly becomes cynical. Your boss and co-workers saw you as a king of your domain, because you had the pricey ride and the fancy digs. Now they see you as a bumbling idiot. They scrutinize every task, instead of quietly giving you a pass. Your faults, that seemed in the past as part of your charming personality, are now illuminated as glaring deficiencies. The ego takes a kick in the face, from which many won’t recover.

In the past, what you had was an indication of your competence. Now for most it’s an indication of how much debt you’re ignorant enough to take on. It gives people a false sense of accomplishment, rather than being a testament to hard work, skill and tenacity.

As Garth mentioned to one reader – a man (or woman) who lives by their principals, has no regrets. That’s sound advice, unless you get your principals from HGTV. So have some backbone. If you cave to the pressures of your peers; be willing to accept the consequences. They won’t have to deal with them. Those same friends and family might not be around when you’re looking for a shoulder to cry on. Turns out they weren’t that awesome anyway.

#100 Bill Gable on 06.11.11 at 1:56 pm

Richard Russell, who is considered one of the leading economic gurus of the last 50 years has come up with this latest cookie – ready?

“The whole current mess reminds me a lot of 1929-30. After the crash of ‘29, the stock market roared higher, even as the economy was simultaneously weakening.

When the great post-crash rally died in April 1930, the market turned down with a vengeance, and the Great Depression began.

…The market is probably now in the process of forming a complex top. If the market now turns down convincingly, we could see the beginning of Great Depression No. 2.”

> Enjoy that new House!!

From “Wealth Daily”

#101 Mr. Reality on 06.11.11 at 2:05 pm

#72 KindaDifferent on 06.11.11 at 10:51 am

Kinda Different? More like psycho……..

Mr. R.

#102 JohnnyBGood on 06.11.11 at 2:05 pm

#89 Cookie Monster on 06.11.11 at 12:48 pm

Thanks for the extra detail. Like I said, it’s not my field of expertise but I find the topic very interesting.

BTW, I did not say electrons don’t exist. I merely said they are not the source of power; photons are. Electrons are the transfer medium.

What do you think of Tesla?

JohnnyBGood
BDes, Industrial Design
Nice to meet you.

#103 Burnt Norton on 06.11.11 at 2:15 pm

@88 JohnnyBGood – LOL

@71 & 72 – Here are a few stocks you might be interested in (or not):

COH
TIF
PYX
LLL
REV
MSO
PLA

#104 El Cheapo & Happy on 06.11.11 at 2:19 pm

Dear Mikey-

Forget the pressure. Here in the U.S. prices had zoomed WAY too high…prices have now fallen up to 60% in some markets, down about 25% where we live.
We looked around 15 years ago at the “junk” on the market. Calculated that for us, buying an improved (water & sewer) piece of ground in a small town, and building what WE wanted made the most sense. We shopped til we found a reasonably priced piece of dirt, bought it, and then shopped for the house to erect on it.
That was 1997. Put the required 20% down got a 30 yr fixed at 7.5% (the BEST rate at that time). Paid about $100 more than the required payment, and as rates fell eventually re-fied at 4.5% on 14 yrs (basically the same payment we had been making) and paid ahead as we could afford it. Paid the dam thing off in 12 yrs total…including finishing out the basement with another bedroom family room and full bath.
Today NO mortgage, paid for cars, no credit card debt. We are one of those 50’s boomers…
Don’t be in a hurry. Our home today is worth about basically what it cost us to build it. BUT…it is OURS.
Save up that 20-25% down payment. Take out that 15-30 yr mortgage as long as it is not over 25% of your earnings (gross). Plan to pay ahead on the mortgage minimum, too. If the numbers are TOO BIG you just can’t afford to buy, or build right now. WAIT, save, and RENT CHEAP!!

IF YOU can’t afford that dream home, your fellow co-workers can’t affort to buy it either….prices DO have a way of coming back down to earth. Trees do NOT grow taller forever do they? Don’t get caught in a debt TRAP!!

Save for your retirement as well. Figure on placing 15% to 20% into retirement funds use stock indexes or prefereds not GICS this is money you won’t need for 30-40 years it will be there, trust me!!
My wife and I will retire in less than 5 years boomers ya know-but we won’t HAVE to sell to EAT! With no debt and over 600K in saving & investments we just might make it!!! Enjoy life, it’s shorter than we realize

#105 Devore on 06.11.11 at 2:26 pm

Now on the house porn channel: Selling New York. NY family wants to sell house, which is not an investment because it pays them no money, just costs them money, to downsize to a $3M house, invest the difference for cashflow. Ultimately decide to rent instead.

These people figured it out. High end rentals are very popular across US. Everyone wants to lease (fancy word for rent) a million dollar house, no one wants to buy one.

Rich people aren’t rich because they own real estate, they own real estate because they are rich. Something to think about next time you want to imitate the wealthy and successful to become like them. Horse always goes in front of cart; money first, then expensive toys like houses.

#106 Lost the taste for RE on 06.11.11 at 2:30 pm

On the subject of “foreign ownership” — does anybody realize how easy it is to disguise foreign ownership of real estate? Why, you just spend a couple of hundred dollars — or a couple of thousand with a lawyer — and incorporate a local company to purchase the house, condo, land, whatever. The company is “local” to the province of incorporation, although the directors and shareholders live and work halfway across the world. But the property Owner is considered local/resident. It can be handy for writing off costs, including property taxes. Of course, living in the home would have to be considered a taxable benefit and accounted for, but many people are not completely scrupulous about such things, are they?

When a house stops being a place to live and becomes “an investment”, the stage is set for all manner of greedy, dishonest and ultimately dangerous games.

#107 Daystar on 06.11.11 at 2:39 pm

Don’t want to bum readers out, but lets not trick or fool ourselves, there will be a good deal of human casualties as this bubble deflates. Some of us will lose everything, including their parents. The relationships that are held together by money and status only, built on credit for many, will crumble and leave broken homes in their wake. Relationships that are built on love will be tested to their fullest and a good chunk of them will fail as well.

Illusions of financial security is set to vanish and be taken out to sea to sink with the tide. The U.S. meltdown has, since the start, gone through 9 million bankruptcies in a nation of 300. Thats 3% of the entire population of which maybe 60% have the ability to declare such financial ruin (money earners, I refer to). Thats 1 in 20 adults in the U.S. that have gone under. How many avoided the books and still faced a wipeout financially? Try 1 in 10 or more. The stats are hard to find, but its a good guess. Its ugly there.

Travel to Phoenix before buying and one quickly realizes why that is. Brown lawns, empty houses, it compells one to ask how much excess capacity in housing Canada has, because people, whether they go broke or not, have to live somewhere and our winters are colder here.

It could be 5 to 7 years before the Canadian housing market finds its bottom. Maybe longer… I don’t know. What I do know is that real estate bubble collapses are brutal on the social aspects of society. Unemployment skyrockets, crime goes up, divorce rates escalate, the family unit that politicans swear to represent is strained if not directly, indirectly through the financial collapse of their neighbors. (and I can’t help but feel compelled to mention the “it’ll never happen to me” or “until it happens to me, I can’t be bothered” mindset. Illusions/lack of empathy is everywhere and has been for some time. Is that whats to us when we become worth more on paper?) 7 to 8% of Canadian adults could be financially destroyed by a major housing correction in Canada that will effect everyone. Japan, the U.S., Spain… and now here.

Maybe voters should be asking why we really need more prisons. I suppose, when the economy takes people’s homes away and rent is no longer so affordable, they have to live somewhere… right? Maybe thats why we have such a high native count in our penal institutions. Its a step up from where they live now.

Its all perception and some of us literally live inside our boxes. Perhaps it long overdue, time to step outside of our boxes and connect, however painful (or otherwise) to see how the rest of us are coping and truly ask that question… “what will happen to us when interest rates finally rise and our houses, built on credit, fall?” We are vulnerable. Our institutions, financial, political, media… have led us there for the most self interested of reasons and sadly, darkly, there is a certain half truth to them merely representing the “will” of the people. The rewards of connecting to the reasons why we have arrived at this place are slim yet very real, reality its only reward at times (and perhaps the best reward of all, the fact that it is real), the future holding not much more than damage control and certain loss for many… most of it preventable and now we must inevidably learn from it. Understand it.

I hope, for most of us, at the very least to be sympathetic instead of pious because we do, all of us, have the ability to evolve and change and I can’t help but think that this is where change starts, beginning with empathy itself. “Use it or lose it” referring to the simplistic ability to care… is an apt cliche’.

#108 Increasing that 1% on 06.11.11 at 3:04 pm

from #11. “Here in BC everyone is distracted by playoffs – just wait for a slew of odious news to hit the fan once the ‘nucks take the cup. The propaganda coming out of the govt now has a distinctive air of desperation.”
===========
All the bars have been full in dwntwn TO too, everywhere there’s a ‘screen, noticed esp. ‘Wayne Gretzky’s’- doing well, cp24 was there (but-‘they’re everywhere’)

Could probably fill the Skydome -or, oops The Rogers Centre (just to confuse people, I mean, really what happened to the name- The Skydome should be in the name- ’cause that’s what it is)

Brings back memories of TO Maple Leafs in ’92/93 with Doug Gilmour, and TO& area going crazy….at the risk of being blasphemous….wth…still wonder if there was some payoff going on when they lost

Anyways, in relation to Real Estate, this was when the bubble was popping and spreading out, unbeknownst to those until and unless they had to sell, by just how much
———————————–
And wrt man/woman husband/wife buying house/vs/renting- I don’t know any more women than men who push about owning, and don’t hold their house/cottage as some sort of status symbol

#109 Gord In Vancouver on 06.11.11 at 3:31 pm

Great post, Garth.

Apparently six in ten divorces are caused by fights over money. How many sheets do you think grow cold because of bubbles?
_______________________________

Vancouver divorce lawyers are in for a huge windfall soon : ) I’ll feel for the kids but not the people who made the stupid decisions.

#110 BPOE on 06.11.11 at 3:32 pm

Although many renters turn to drinking, anti depressants and constant suicidal thoughts as they compare themselves to owners a house at the end isn’t worth ending your life. Own up like the american and junius and bear, that you made a UFD Unrecoverable Financial Decision. If your Canadian you have no business buying in Canada as you don’t have the financial ability. Just find a place to rent and enjoy your life. Your descendants will lament your ability to execute the BUY when homes were cheap but you’ll be long gone and never hear the whining.
*********************************************
TurnerNation on 06.11.11 at 12:27 pm
Maybe it’s time for a special Renters’ Suicide hotline (call 1-800-RENT-SHAME) to help these wretched renters deal with the inter-generational shame and failure they’ve bestowed upon their lineage?

Ancestry.com should have a special tag for “Renters” in the family tree, so as to warn potential suitors of a flaw in this bloodline’s gene pool.
.*

#111 Bottoms_Up on 06.11.11 at 3:40 pm

#92 Dark Sad Monster Bunny on 06.11.11 at 12:58 pm
————————————————–
I entirely disagree with your ‘traditional’ model take on young people. My immediately family members, friends and colleagues at work (all between 27-35 years of age, and many have children) live in dual income households, and earnings are essentially the same (I can think of 3 couples where the women make more, 3 couples where the men make more, and 3 couples earning about the same).

And these are all educated couples (minimum B.Sc.), the lowest earner is probably around $50,000 (sales; bank puppet) and the highest around $120,000 (medical doctor).

#112 BPOE on 06.11.11 at 3:41 pm

Aussie,
The story very similar to Vancouver where dumb dumb Shiller spooked some people out of buying or taking big mortgages. Garth spooked Canadians as well and many a bitter renter not pleased with following his advice of diversification. If you bought 5 years ago and houses come down 50% your still further ahead than renting. The difference between Australia and Vancouver is the 1 billion buyers banging down the doors. Vancouver will NEVER be affordable EVER again. I have yet to see a post here thanking Garth for getting a person out of Vancouver Real Estate years ago and having a diversified portfolio.

******************************************
This is why I like reading this blog and comments. The similarities between the Canadian and Australian markets are uncanny. Whilst first home buyers are now largely priced out of the Australian market, those who bought years ago are sitting on huge fortunes, which, even if they lose 30% have still made a huge profit.
Australians who bought in the last few years with huge mortgages will of course be the most impacted in the event of a housing crash. There are now several blogs and forums relating to the Aust. housing bubble.
We will get back into the market eventually, (maybe 2 or 3 years if things pan out as we expect) but in the meantime, it is very hard to hold your head high and still be a contrarian!

#113 Devore on 06.11.11 at 3:41 pm

Sink your teeth into this one:

http://flippersintrouble.blogspot.com/

The URL gives it away. Site lists flip properties in Sacramento California, a heretofore hot market that always went up, many of which flips have been on the market for THOUSANDS of days, with losses already in the HUNDREDS of thousands.

#114 BPOE on 06.11.11 at 3:48 pm

Most women secretly want to leave their renter partner due to the SHAME. They want to LIVE life not feel overwhemed with RD (RENTER DESPAIR) Very hard to find a new partner who is an owner. Owners don’t usually want a new partner who is a renter. They bring nothing to the table and usually need a bath

#115 eaglebay on 06.11.11 at 4:32 pm

#99 oldmac on 06.11.11 at 1:53 pm
Couldn’t have said it better.
Nice to see common sense even with your “principals”.

#116 eaglebay on 06.11.11 at 4:39 pm

#103 Burnt Norton
Do your DD on VMS and GBB.
Next things to a sure thing. X10.

#117 Abitibidoug on 06.11.11 at 4:39 pm

Michael:
About the only bit of advice I can add is there are 3 secrets to winning at investing (including, of course, in real estate) and they are patience, patience, and patience. This market will come back to reality sooner or later, just like it did in 1982 or the early 1990’s so if you hold off now you’ll have the last laugh at the real losers and there will be plenty of them.

#118 confused and a little crazed on 06.11.11 at 4:39 pm

6# Mark
26 # Tony

Though I agree with you there will be a correction. I do not believe there will be big one . i mean 15 % – 20 % is highly probably but 50 %…why?

There is greece/ high debt across the world and political instability from the middle east…big problems yes…but not unmanagable

I mentioned earlier I sold my commodities which made gains but will buy again probably later this year once certains signs of stability is emerging.

Last tine the 2 hedge funds over ( 80 millions) were written off …just like that was a sign for me to sell in late 2007 and i did so. i sold msft/ dell/ RBC and now they are up again.

Unless you see a definite sign I see no reason to expect aa monumental crash. The Debt ceiling for the US will be raised but govts will cut back/ and the % rate will only increase a little. I see no signs to say to otherwise

#119 Jeannie on 06.11.11 at 4:51 pm

#21 Aussie. Too bad about your timing, patience and your day will come. My son and his Aussie fiancee could easily afford to buy a house in Darwin, but instead have opted to rent a house on 3 acres.
Sure they’re paying a hefty rent, however they have big future travel plans, and will finally settle outside of Australia.
They’re not in the least embarrassed to admit to friends that they rent. The fact that they haven’t tied
themselves down with mortgages,taxes,home improvements etc., has put them in an envious position.
Hope it all works out for you.

#120 Hoof - Hearted on 06.11.11 at 4:54 pm

This is on Alex Tsakumis’ blog

http://alexgtsakumis.com/2011/06/11/breaking-news-christy-clarks-family-first-fraud-her-hard-line-against-b-c-doctors-and-you/
June 2, 2011

Letter from BCMA president

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

Dear Colleague,

I am writing to you on a matter of great importance to all physicians in B.C., the negotiations for the renewal of the Physician Master Agreement.

As some of you are aware, we have been having informal discussions with the government on this matter since last summer. We believed that significant progress was being made and that we would be able to conclude an agreement without arbitration or a confrontation. These discussions were delayed after Premier Campbell resigned and the Liberals chose a new leader. They resumed formally on May 17th and on May 24th the government tabled its proposals for the non-compensation parts of the agreement. Their proposals came as an unpleasant surprise and signaled a very different approach by the new government than we had experienced with the previous administration. Some of the more concerning proposals are:

•Reinstating prorationing as a tool to control expenditures on physician services;

•Eliminating the longstanding Tariff process for the setting of fees and effectively removing physician involvement in that process;

•Eliminating from the contract the provisions that require peer involvement in audits and inspections;

•Removing the spending authority of the GPSC and the Specialist Services Committee;

•Eliminating the Rural Joint Standing Committee;

•Requiring that physicians must provide call coverage whether or not they are paid for it;

•Permitting the health authorities to prorate MOCAP payments;

•Requiring that physicians on a MOCAP contract provide on call coverage to more than one facility;

•Eliminating the Alternative Payments Committee;

•Eliminating call back payments;

•Ending the monthly support payments to physicians who participate in the PITO programs for the adoption of electronic medical records.

The BCMA Executive met on Friday, May 27th to review the government’s position and to chart an appropriate response. Clearly, the new government’s proposals are entirely unacceptable and reverse the many gains of the last decade.

As a result of the government’s dramatic change in its approach to the negotiations and the untenable positions they have advanced, we are proceeding with an expedited review of all of our interactions with government.

You can be assured that your negotiators will push back hard against the draconian changes the government is proposing. We will keep you apprised of further developments as they occur.

Sincerely,

Ian Gillespie, MD, FRCP(C), DABPN

President

British Columbia Medical Association

#121 Hoof - Hearted on 06.11.11 at 5:08 pm

#97 Sad

Re Police:

If Local Gov’ts are placing police contracts on the high priority list..that’s a bad sign.

Effectively, police are simply next level down from the military.

Moreso now than in past…Police seem Unaccountable for there action, given the litany of compliants ranging from beatings to killngs

Once you have the cops on side sucking on the public teat, the polticians have THEIR army.

I have never seen a correlation that more cops or higher paid cops reduce crime..all I see is massaged stats, much of which is based on frustrated victims who can’t be bothered to pursue charges (ie B and E’s etc…)

I just read the Canucks Stanley Cup run has cost the City of Vancouver $1.3 Million for extra policing.

#122 oldmac on 06.11.11 at 5:27 pm

BPOE, your desperation is showing.
As per my earlier post… sorry everyone forgive my spelling and grammar; Android speech to txt isn’t perfect. Apparently neither are my editing/review skills.

#123 Dark Sad Monster Bunny on 06.11.11 at 5:36 pm

111 Bottoms – good to hear from you. You’ll notice in my earlier post, I said “dual” and not “dual income”. You can have a dual income household, but still you will find many men who feel it is ultimately their repsonsibility to
make sure there is food on the table. They dont feel they have the option to leave their jobs and be supported by their spouse. I’m not saying they should feel this way.

I do know young couples like you’ve described. Dad
(with BSc) and a municipal white collar job, stayed home with newborn while mom (MD) went back to work. Makes sense. These couples you know are all highly educated,
which is still not the norm.

#124 TurnerNation on 06.11.11 at 5:40 pm

Weekend off topic: we knew this…

The potential health effects of the very low frequency of electromagnetic fields surrounding power lines and electrical devices are the subject of ongoing research and a significant amount of public debate. While electrical and electromagnetic fields in certain frequency bands have fully beneficial effects which are applied in medicine, other non-ionising frequencies, be they sourced from extremely low frequencies, power lines or certain high frequency waves used in the fields of radar, telecommunications and mobile telephony, appear to have more or less potentially harmful, non-thermal, biological effects on plants, insects and animals, as well as the human body when exposed to levels that are below the official threshold values.

One must respect the precautionary principle and revise the current threshold values; waiting for high levels of scientific and clinical proof can lead to very high health and economic costs, as was the case in the past with asbestos, leaded petrol and tobacco.

http://www.assembly.coe.int/Mainf.asp?link=/Documents/WorkingDocs/Doc11/EDOC12608.htm

#125 TurnerNation on 06.11.11 at 5:50 pm

Weekend O/T (the medical cartel):

Burzynski, the Movie is the story of a medical doctor and Ph.D biochemist named Dr. Stanislaw Burzynski who won the largest, and possibly the most convoluted and intriguing legal battle against the Food and Drug Administration in American history.

In the 1970’s, Dr. Burzynski made a remarkable discovery that threatened to change the face of cancer treatment forever. His non-toxic gene-targeted cancer medicine could have helped save millions of lives over the last two decades had his discovery not been criminally suppressed by the US government, as his therapy, called “antineoplastons,” have been shown to effectively help cure some of the most “incurable” forms of terminal cancer.

This documentary takes you through the treacherous 14-year journey Dr. Burzynski and his patients have had to endure in order to finally obtain FDA-approved clinical trials of antineoplastons.

His story is yet another testament that fact can be far stranger than fiction, as the film exposes the powerful, unscrupulous forces that work to maintain the status quo of the medical- and pharmaceutical industry at any cost—including the lives of millions of people.

http://articles.mercola.com/sites/articles/archive/2011/06/11/burzynski-the-movie.aspx

#126 vyw on 06.11.11 at 5:58 pm

A couple of bubbles:
1. Shanghai stock market (2007 bubble; 2008 crash):
http://ca.finance.yahoo.com/q/bc?s=000001.SS&t=5y
2. Hong Kong housing market (1997/98 and 2007/08):
http://c598995.r95.cf2.rackcdn.com/wp-content/uploads/2011/01/Hong-Kong-Real-Estate-History-in-a-chart1.png

The Chinese are used to bubble markets actually. I believe that the Chinese Govt will backstop this – perhaps after allowing a few speculators to suffer – after all, the Govt needs construction to continue to employ people and sustain spending or else face the wrath of the unemployed. Ghost cities or riots in the streets – take your pick.

Sell or rent in BC? A friend of mine sold his place last year and now rents. He has some regrets. Let’s assume he was able get a return of 10% on his equity this year; the house that was sold also appreciated by 10% over the same time period. This and low interest rates may help to explain the lack of listings this spring in Vancouver. If there is a lack of supply, I wouldn’t rule out a final leg up (30+%) in Vancouver market.

#127 TurnerNation on 06.11.11 at 6:03 pm

p.s. I’m a renter here is my building in Toronto:

http://www.leasefifty.com

Had the rooftop patio/party room all to myself this morning for a nice BBQ. :-D :-D

#128 eaglebay on 06.11.11 at 6:13 pm

#109 Gord In Vancouver
Sounds like money buys love.
No money, no love.
Probably shallow people to begin with.
What a world. No honey, I will not buy you a house.
Goodbye to you too.

#129 mad vancouver on 06.11.11 at 6:37 pm

I really do not understand all that stereotyping about women and owning a house.
Both my husband and myself agree it is better to rent at this time, and I actually feel much safer renting than having to repay a huge mortgage that would make me lose sleep. It also means I can work part time and spend time with my kids. Also less expanses and time spent on maintenance.
I see no point in owning a home now.
I am the one running the $ simulations and looking for other investments vehicles.
And, btw, I am blonde ;)

#130 Bottoms_Up on 06.11.11 at 6:41 pm

#123 Dark Sad Monster Bunny on 06.11.11 at 5:36 pm
———————————————–
Ok, so you mean men think of themselves in a ‘traditional’ way. I think it’s obviously hard to make this generalization because it’s tough to get inside the minds of others.

But, I do know that the majority of men I know do a lot of cooking, cleaning etc. in order to contribute to their family unit. In terms of them feeling like they need to be the “bread winner”, well, those are dicussions we just don’t have.

#131 ballingsford on 06.11.11 at 6:44 pm

#144 BPOE, you are quite the person! Quite = a jerk.

Us renters can afford to take a shower since we don’t have to pay to heat the water and chicks dig us because we smell clean and fresh. Some of us probably don’t care much about chicks anyway because we are happy with our mates.

We also have lots of cash to spend and we aren’t in debt!

How is life with you anyway? Are you happy?

#132 Big Gable on 06.11.11 at 6:51 pm

Another leg UP in Vancouver of 30%? Put down the bong, dude.

I walked the West End today, while the incompetent and frankly borderline, shady agent, shows our place (two year lease_) with improper notice – but concierge in Bldg we are in, said the Agent had the first (in two months) “interested buyer” – and “they were only upstairs for about 10 minutes”.

I laughed my patoot off – the owner in Shanghai has listed this place for a million bucks and this place will never move at that price.

A lot of accidental landlords are trying all kinds of shady guff in Vancouver. (*get the place tenanted, and put it back on the market and screw the renter – nice eh?)

The West end was ablaze with Open Houses – and the tumbleweeds were blowing through lobbies all over this area.

Mr. Turner, (* and Richard Russell – see earlier post) has said with certainty – “This will not end well”.

Warren Buffett has a famous saying – ” it’s only when the tide goes out, that we find out who has been swimming naked” – and believe me, there must be a TON of angst among the naked and leveraged out there – bueno suarte amigo.

One last anecdote – a SOLD sign has been in front of the condo across the street for 4 months!

Sure…..read “Freakonomics” and look up “incentive” – and apply it to the lovely Real Estate “profession”.

We have a plan and we are going to turn the tables on this owner – we have a new place lined up – and when we leave, this place drops to the bottom of the rental pool – SCREWED.

Won’t be able to rent for about 5 years, the waiting list is so long. *this building is half empty!

Cue Nelson Muntz > HAH HAH.

#133 Bottoms_Up on 06.11.11 at 6:54 pm

#125 TurnerNation on 06.11.11 at 5:50 pm
———————————————-
It makes sense that the government would try to stop a doctor for treating cancer patients with untested medicine.

What strikes me as peculiar is that peptide and amino acid therapy, as it would have pertained to targetting cancer genes in the 1970’s, would have been extremely advanced and likely very costly (it’s even costly today to synthesize peptides). There’s likely no way that doctor knew how his therapy even worked.

It also strikes me as interesting that although phase II clinical trials have been conducted, no peer-reviewed publications have come out. Could it be that the medicine isn’t as good as the “conspiracy theory” documentary would have you believe?

http://en.wikipedia.org/wiki/Stanislaw_Burzynski

#134 Bill Gable on 06.11.11 at 6:55 pm

Addenda: New Computer and I blew ‘resign’ up – I couldn’t even spell my own name – gee, how can you tell it’s been a bit stressful around our joint? – sorry Mr. Turner.

#135 Devore on 06.11.11 at 6:55 pm

#126 vyw

Sell or rent in BC? A friend of mine sold his place last year and now rents. He has some regrets. Let’s assume he was able get a return of 10% on his equity this year; the house that was sold also appreciated by 10% over the same time period.

Lets not assume anything. Just because the average has gone up some percentage, does not mean the average property has as well. The market in Vancouver, Richmond, Burnaby to some extent, has not been a steady typical market. Property type (condo, TH, SFH, teardown), location (down to cross-street) and the lot have a lot to do with what sells quickly for top dollar, and what sits on market.

If your friend had a condo, chances are he would be selling for less this year vs last year. If he’s outside the “hot” zones (say, in the tri-cities), chances are he’s taking a five figure loss over a year ago. Houses are not fungible, like stocks. Unless the house sold again this year, all you can do is assume some paper gain, which may or may not reflect reality.

#136 Bottoms_Up on 06.11.11 at 6:59 pm

#125 TurnerNation on 06.11.11 at 5:50 pm
———————————————
Remember, if it sounds too good to be true, it likely is. Turns out Dr. Burzynski is likely a quack….(see link for messages from actual cancer patients)

http://www.cancercompass.com/message-board/message/all,15853,0.htm

#137 Patiently Waiting on 06.11.11 at 7:01 pm

#126 – Inventory is on the upswing in Vancouver. Its weird how so many are listing now, at the end of the Spring market. Not typical for this time of year.

#138 Nostradamus Le Mad Vlad on 06.11.11 at 7:14 pm


#85 TurnerNation — “. . . to help these wretched renters deal with the inter-generational shame and failure . . .”

BPOE and / or Mikey the Realtor (The Bilderberg Sisters!) can step right up and help them acquire huge amounts on unrepayable debt in deteriorating markets!

#86 Cookie Monster — “Federal Inflationary Asset Trap. Your death is your fault. You got what you voted for. Good luck.”

FIAT = Death. Nice way outta this joint, and blame others to boot!

#93 jess — Interesting post and link. “Very little of the money stayed in Indiana–more than $4 million was flung out to pro- privatization front groups and candidates running campaigns in Florida, Georgia, New Jersey, Pennsylvania, Utah, and Wisconsin.”

Some of these states are where union-busting is happening, and it is not pretty as a lot of the former union jobs are being replaced with cheap labor (re: Walmart wages).

Having worked in union and non-union composing rooms (financial, legal, commercial, composing and setting ads in jobshops and newspapers), I can say the union ones are slightly more efficient, but technology is changing so quickly now, plenty of composing rooms have gone the way of the dodo bird; hence, there are a lot of unemployed typographers.

#99 oldmac — “. . . to squeeze yourself into than rent an 1800 sqft house for the same monthly cost, we’ve got some backwards expectations. It gets ugly real quick.”

Exactly! The whole mess is an illusion, played into our psyche and fronted by the m$m and realtors.

Shelter is a necessity; McMansions look better when rented. When TSHTF, the speed will catch most off guard. Possibly #110 BPOE can meet with #113 Devore and #127 TurnerNation , to chew the fat over #114 BPOE’s RD (Renter Despair) with RE (Renter’s Elation!), at not being subject to property taxes, constant maintenance and expensive upkeep. Waddaya say?

#104 El Cheapo & Happy — Also a good post, going somewhat with #99 oldmac’s post. Good to put away for a rainy day (retirement) as well!

#125 TurnerNation — May like to have a quick view — one covers the movie you posted — Cancer One and Cancer Two.
*
Cyberattacks The IMF seems to be pushing a FF, designed to restrict one’s freedom of access to the ‘net.

NASA, Bilderbergs and Hookers R Us “It’s about to hit the fan people and all this talk about Sept/Oct 2011 looks more and more to be the real deal folks.” The Sun is also a conspiracy theory. Well, possibly.

De Marketts “The Federal Reserve is a system that creates money out of thin air to loan to the people, but refuses to allow the people to create money out of thin air to pay them back!” wrh.com.

Gigolos Now the REAL reason for the Bilderberg Fest comes to light!

4:23 clip Dictatorship. The more laws that come into being, the less freedom one has. Cedar Falls.

The US is busy. The South China Sea, Yemen and Mexico.

GM Milk Brings back memories of thalidomyde.

Cheers! Not the TV show, but Monsanto has been given the boot from India.

Ayn Rand Was she An Inconvenient Truth?

#139 Mr Buyer on 06.11.11 at 7:15 pm

You know how the Japanese deal with the Doctors. They train huge amounts of them. One of my acquaintances is a top flight cardio-vascular surgeon. He makes the same salary as any specialist which is around 120k. Some doctors make more if they open their own clinics and become popular. There are no shortages of doctors. I believe doctors are the most important professionals in a society but doctors that are overcome with a huge number of patients or huge amounts of debt have very different priorities than the doctors my grandmother used to worship. TRAIN MANY MANY MORE DOCTORS.

#140 Daystar on 06.11.11 at 7:18 pm

A prohetic look at an 08′ prediction in U.S. housing. (note, for those who watch the video that we can make predictions in Canada with what 5 year interest rates have been over the last 5 years and correlate this with future interest rate scenarios to establish risk and future default predictions, the template is there)

http://www.youtube.com/watch?v=6kAfuFGi7bY&feature=related

It really isn’t all that hard to put 2 + 2 together.

http://www.youtube.com/watch?v=a3g6Yr5S7cg&feature=related

If these charts are correct, housing will be a drag on the U.S. economy until the last quarter of 2012. Give it 6 months to a year for the banks to beef up their balance sheets, and it will be 2013 before interest rates rise in the U.S. with housing in mind.

#141 vyw on 06.11.11 at 8:27 pm

#132 thanks for the update on the condo market – the figure in the realtylink report show that prices are flat.

$135 good points Devore – and my example is only one story and the property was a SFH in Vancouver – prices are up 10%. The point is there is some regret since he sold last year.

Will there be a last speculative burst? Who knows? But demand is strong for SFHs in the sought-after areas, interest rates are low, listings are low (except for Richmond last month). I know that many experts are calling for a correction from these frothy prices but I wouldn’t be surprised if there’s another leg up before that takes place.

#142 Alan on 06.11.11 at 8:36 pm

Garth,

I have not been checking your blog as often as I use to. You may remember me as the guy who said the Asians were buying and driving up prices in Vancouver and the blog dogs were always asking for proof. Well, all I have to say this time is stop trying to convince people that buying real estate has anything to do with finance and returns. People don’t care. Let them have what they want and pay for it more ways than they will ever know. It’s good for the country and the economy.

best
Alan

#143 Hoof - Hearted on 06.11.11 at 9:00 pm

Re HAM and Cam ” the HAM ” Good

From a Globe and Mail article

Dan Scarrow, vice president of corporate strategy for Vancouver-based Macdonald Realty, believes that an office based in Asia is more useful for getting listings than selling condos.

“Having an office there is more a ploy to get listings with developers,” says Mr. Scarrow, who speaks Mandarin. “You are not going to sell many units in China. The Chinese are like any other buyer. They need to see the project to buy it.”

He also believes that the new Chinese buyer is fuelling the Vancouver market because they believe in the appreciation of real estate.

“A large number of Chinese people who’ve come over recently, their experience with capitalism is that everything goes up forever, because it has for the last 20 years in China, so they have that mentality. “

#144 poco on 06.11.11 at 9:03 pm

#35 Randis
Just came across this story today: someone I know bought a pre-build condo a couple of years back and finally it closed. For ~700 sq ft. he bought for 430k. For some reason he wants to sell and agent told him it worths 460k. After some time he still owns it and the hopeless man is soo desperate he is listing it at 415k now … still no buyers around, and he is crying he pants off everyday.
______________________________________________
I’ll bet money this story belongs in the tri cities—lots of flippers now so desperate to get out they’ll look at any offer –reasonable or not–more and more sellers waking up to reality and finally seeing what’s on the horizon for them–lots of these “flippers” turning into rentals with the hopes the market will turn around next spring—not !!!!!

#145 jess on 06.11.11 at 9:32 pm

106 Lost the taste for RE

Friday, July 25, 2008
18,857 firms: one registered address. Ugland House goes to Washington.

In its report to the U.S. Senate Finance Committee, the U.S. Government Accountability Office states that Ugland House, George Town, Cayman Islands, whose sole tenant is the law firm Maples & Calder, is now the registered office of 18,857 distinct legal entities. This news was greeted with some incredulity at the Committee’s hearings on 24th July, where it was noted that 5 per cent of these entities were wholly U.S. owned, and up to half had a U.S. billing address….

Addressing the Committee’s hearings, TJN senior adviser Jack Blum said it was completely unacceptable for offshore corporations to continue to be treated as beneficial owners and he proposed that, amongst measures to tackle tax evasion the qualified intermediary programme, which was comprehensively abused by the U.S. division of Swiss private banking giant UBS, should quite simply be abolished.

#146 jess on 06.11.11 at 9:38 pm

Nostradamus Le Mad Vlad
…all the tax holiday supports and winamerica front group for mitty…Ya think their stashes are at risk of being seized in some of these “foreign elsewheres? …hell the sheeple need a jubilee!

#147 Utopia on 06.11.11 at 9:44 pm

#134 Bill Gable on 06.11.11 at 6:55 pm

“Addenda: New Computer and I blew ‘resign’ up – I couldn’t even spell my own name”
============================

Bill, I have absolutely no idea what you are talking about. Fill me in.

#148 T.O. Bubble Boy on 06.11.11 at 9:49 pm

Not sure if anyone posted this yet… it looks like a wave of Preferred Share buybacks may be coming soon, as banks try to make new capital ratio requirements:

http://www.theglobeandmail.com/globe-investor/investment-ideas/portfolio-strategy/why-the-preferred-shares-party-might-be-winding-down/article2056326/

(National Bank and other have already started doing this)

This refers only to one kind of preferreds – rate reset. Others are not affected. — Garth

#149 45north on 06.11.11 at 9:51 pm

Devore: Just because the average has gone up some percentage, does not mean the average property has as well.

very true, as the housing market freezes up, high end houses are sold to high end buyers, low end buyers are scared and don’t buy so the average price goes up but the average property doesn’t

Big Gable: when we leave, this place drops to the bottom of the rental pool

pretty funny, isn’t that Bill Gable?

BrianT: Chicago is going down for the count

Think of trying to run Chicago’s transit system on old dilapidated buses.

Ottawa will buy 226 buses from New Flyer Industries Inc. at a 19 percent discount after Chicago delayed an order when funding didn’t come through.

http://mcaf.ee/bhc16

Form Man: ” Getting any sales ?” he asked. “Nope, I said, not since last October”.

cement is unforgiving and merciless, men who work with it are tough, I think BPOE wouldn’t last an hour

604genX: rented an outstanding house better than any my friends own

pretty funny

#150 Abitibidoug on 06.11.11 at 10:24 pm

@Allan #142;
It will be even better for the country and economy when the bubble bursts, values come back to normal, and once again housing is sensibly priced and affordable.

#151 Mister Obvious on 06.11.11 at 10:31 pm

The human population at any time is the fleshly manifestation of those genes that replicated best. Put another way: those genes that most successfully pass into subsequent generations. Humans behave the way they do because that specific behaviour has been a recipe for success to the present day.

Women pass genes one ovum at a time. Each must be painstakingly nurtured to a point where they are able to reproduce.

Men pass genes often, in batches of many thousands, with practically zero energy invested.

Even minimal reflection on these facts quickly reveals why men and women have evolved entirely different survival strategies.

The male evolutionary agenda involves, if possible, spreading seed as far and wide as possible without major time and energy commitments which would hinder that basic goal.

The female evolutionary agenda involves, if possible, gaining the singular commitment of the best alpha male she can find to help her protect and care for her offspring. And only hers, if possible.

The exquisite interplay between these two apparently competing agendas is what constitutes a large part of the ‘human condition’. Viewed in that light, it’s not such a mystery why men and women, in general, view the resource consuming ‘family home’ with polar opposite viewpoints.

I do not intend to paint all women or all men with the same brush. There are plenty of role reversed cases that do not fit the general model. But on balance, the world is unfolding as would be expected.

#152 Observer3 on 06.11.11 at 10:44 pm

Is it true….Carney is at Bilderberg 2011? If he is, that should fuel a conspiracy theory or two.

#153 45north on 06.11.11 at 11:10 pm

Cookie Monster: the speed of the wave field is very fast, say half the speed of light such that the voltage at any point on a 1000 mile conductor rises and falls very close in time, at say at half the speed of light.

the whole eastern grid then goes up and down 60 times a second in sync?

#154 Nostradamus Le Mad Vlad on 06.11.11 at 11:31 pm


5:49 clip It’s a depression, from one in a car. Survival tips, etc.

4:33 clip Alex Jones and Fox News. Everyone has their price.

Curious Has the earth shifted? Are we in The Twilight Zone or a polar shift cycle? Well, with this happening, and lots more to come (like this) anything is possible. Also — Missouri River could see flood of epic proportions.

Parking Tickets, road rage and more in Wales.

WW3 The only clear reason why the US is getting itself involved in so many fake wars, is that they realize all their debts will disappear. Their mfg. / industrial base is moving elsewhere, so someone will be held accountable for their debts / deficits.

Deep Space Nine — a.k.a. Lost In Space.

Russia and China send a clear message to the UN.

California IOU’s and Hissy Fit.

Hypopathetical Hypothesis Only on the economic collapse.

Desperation at Dawn Interesting conglomeration of several events happening simultaneously, almost all of which are ignored by the m$m. Fortunately, I’m not mainstream — a little out in right field maybe, but definitely not mainstream!

#155 Cookie Monster on 06.11.11 at 11:43 pm

#102 JohnnyBGood on 06.11.11 at 2:05 pm
Your post was good too, the electrons do exist comment was for Disciple from yesterday who was rambling on about some kind of marijuana theory.

Electricity is fundamentally based on electrons and the corresponding electromagnetic fields where relevant, such as for wireless communications, optical devices, or transformer applications.

Electric fields are an abundance of electrons (negative pole) or lack of electrons (positive pole) between two surfaces, the field can be AC or DC, meaning changing with time or steady state. Then there’s also a magnetic field when ever the current is flowing, ac or dc. So static electricity or the charge on a capacitor has only an electric field whereas current movement in a conductor, ac or dc, has both an electric and magnetic field, so it’s an electromagnetic field, and the magnetic field is made up of photons, I’m not sure what a static electric field is made up of, I guess it’s photons too, not sure why if the electrons are static and not moving where would the photons come from?

In a conductor the energy is not transferred by photons jumping from electron to electron, but simply by conduction of electron movement, each electron repels the ones next to it during conduction as electrons are forced by the source since like charges repel.

Power transfer is calculated at the load as current times voltage, P=IxV. Like water in a pipe, the power flow equals the water pressure times the amount of flow.

Photons have energy proportional to their frequency spectrum. Sun light photons are highly energetic photons, 200-400THz frequency, radio communications photons are in the 1-30,000MHz spectrum, so they’re low energy photons. The WHO is full of BS to say cell phones are dangerous, cellular phone photons have 1/200,000 the energy of the photons from the sun.

Transmission of energy through free space is very inefficient since they scatter all over the place, so Tesla’s old idea of wireless power transmission is not likely to ever become feasible. It’s much better to use wires like we do today. Tesla was an amazing guy, but keep in mind he had grand ideas where some panned out well and some not so well. It was all new at his time and he was a once in an eternity trail blazer for planet earth like Galileo, Newton, Einstein and Darwin.

#156 Cookie Monster on 06.12.11 at 12:02 am

I guess it’s photons too, not sure why if the electrons are static and not moving where would the photons come from?
—-
I’m answering my own question, I think the electrons are just jostling around with each other, even when static, so this is where the photons come from in a static field, and they must be firing back and forth between the positive and negative poles in order to maintain a net zero energy balance. This is now quantum physics, now not my area of expertise.

#157 Pat on 06.12.11 at 12:57 am

@ #139 Mr Buyer,

100% agree. I don’t know about Japan, but the shortage of doctors situation in North America is very artificial.

http://www.infoplease.com/ipa/A0934558.html

In Canada, I believe the number is around 200 doctors per 100,000 people. This profession has become too exclusive and costly – both to attain and for the society to support.

(disclaimer: before somebody has jumped to accuse me of jealousy, one of my parents is a doctor, specialist)

#158 MR Sheep on 06.12.11 at 1:09 am

BPOE , BPOE BPOE BPOE BPOE BPOE BPOE BPOE BPOE
what are imaginary gains worth? Is the bank a good landlord, since they own you for anywhere between 0-40 years. I was just wondering how you can make money by gaining imaginary value. If someone said that the steaming bag of shit you bought was worth 10million dollars does it really mean you could sell it for 10mil? Btw who needs sunshine and beaches, when I can have clouds and rain.

#159 Cookie Monster on 06.12.11 at 1:10 am

Transmission of energy through free space is very inefficient since they scatter all over the place, so Tesla’s old idea of wireless power transmission is not likely to ever become feasible.
———
Correction, it’s not the scattering of photons that’s the problem, they can be focused into a very tight beam, maybe use a laser.
The problem is the primary efficiency in the transmitter and the secondary efficiency in the receiver, both are shit. Skin and proximity effects on electrons in the conductors are killer.

I build switch mode power supply transformers where the primary and secondary are tightly coupled around a ferromagnetic core where at best the efficiency is 98%. Whereas a piece of wire over the same distance would get you about 99.999999%. And over a long distance through air transmission, where electrons generate photons that are transmitted and received and regenerate into free electrons in the receiver, I would guess at best might be 25% efficient. Never to be improved due to physical limit.

#160 Cookie Monster on 06.12.11 at 1:28 am

Unless of course superconductors can help….. then maybe Tesla’s wireless transmission is possible.
So I guess never say never until you’re sure and I’m not sure. It’s a tough nut.

#161 skyce on 06.12.11 at 2:03 am

Stormy Skies for Canada’s Middle Class

The Canadian middle class is in crisis. Each year, its share of our national income shrinks, relative to that of the richest few. Recent reports show Canada’s wealthiest one per cent accounted for 32 per cent of all income growth between 1997 and 2007 – the most in recorded history. Thanks to skyrocketing executive compensation levels and an aggressive attack on well-paid, family-supporting jobs, the gap between the rich and the rest of us grows ever wider.

http://ca.news.yahoo.com/stormy-skies-canadas-middle-class-151419160.html

#162 T.O. Bubble Boy on 06.12.11 at 7:43 am

Does this sound familiar?

London (UK), soon to have the 2012 Olympics, is seeing another run-up in real estate — but only the high-end. The buyers are mostly foreigners, who are purchasing 2nd and 3rd homes for their kids to live in while they attend school:

http://economictimes.indiatimes.com/news/nri/nri-real-estate/rich-indians-flocking-to-buy-houses-in-london/articleshow/8823934.cms

“In 2010, rich Indians bought residential property worth 290 million pounds in the city’s prestigious areas of Mayfair, Belgravia, South Kensington, Chelsea and Holland Park.

Indians show a preference for properties in areas such as Mayfair, Belgravia, Regent’s Park, St John’s Wood.

The properties are reported to be second or third homes for a rising number of wealthy Indians.

The average property in this segment is a four-bedroom house, with a room for domestic help, used as a second home by rich Indians or their children studying in the city.

London is considered to be particularly attractive to the global super-rich because of its accessibility, stability, and the global standing of its financial institutions.

It is seen as a magnet to the world’s billionaires.”

#163 I pity the fool who drinks soy milk on 06.12.11 at 8:02 am

RE: Bilderberg

I admit I used to think it was a bit ominous sounding. Think about this though: current/former attendees Heather Reisman, Charlie Rose, and Peter Mansbridge? Does anyone really think these deep thinkers are into manipulating geopolitics, or would be privy to the plans of those that are? Do more than a handful of people GAS about “Heather’s Picks” or watch “Mansbridge one on one”? Charlie freakin’ Rose? Not exactly Goebbels there.

#164 BrianT on 06.12.11 at 8:06 am

Ignored by the MSM: the entire 600 Billion of US taxpayer money taken in QE2 went to EUROPEAN banks http://www.zerohedge.com/article/exclusive-feds-600-billion-stealth-bailout-foreign-banks-continues-expense-domestic-economy-

#165 I pity the fool who drinks soy milk on 06.12.11 at 8:08 am

Further to my previous post, I guess it is possible that those people are forced to sit at the kids table, out of earshot of the grownups. hmmmmm.

#166 FranSix on 06.12.11 at 8:19 am

Something about the Canadian housing price bubble that people are ignoring is the banking sector activity on the short side. Somebody is concentrating risk assets in mortgage tranches, possibly a risk cartel is forming, as it had in the United States.

While mortgages with huge amounts of leverage are being doled out to anyone willing to exchange their printed currency for a debt instrument, credit default swaps are accumulating in the banking sector and amongst pensions funds.

Now, the whole housing price bubble can burst all at once, with no subprime, alt A and option arm waves, but at the same time you have the decline in interest rates. So no new lending possible on top of the blowout meaning despite the correct bet by the banks and pension funds corralling all the risk assets, the whole thing can go illiquid on the collapse.

#167 Alex on 06.12.11 at 8:37 am

Its funy to read a post that says WE NEED MORE DOCTORS. That is exactly conclusion that I came to regarding dentists. I went to Ukraine this spring and went to dentist. Root canal is 100 USD, and that is in fancy clinic . Reason is quite simple, there are tons of those clinics around the city and they compete with each other. Auto Insurance 50 USD PER YEAR. (you get covered for car damages though, not health which covered if you decide to have it by another insurance). High Speed Internet 8 USD per month Unlimited download, and speed is at least 5 times better ( I mesured) then my 60 bucks per month BELL high speed service(with 50gbs limt)here. There is more capitalism in former Soviet Union Countries then here. Property? You can buy 100 K appartment about 100 sq. meters in Odessa with view to the Black Sea and rent it for 700 USD per month. So for 500K that I have to spend here, pay taxes (4000 CAD per year) I can buy 5 appartments and rent them for 3500 USD per month minus expenses (which is not more then 500US). Here u buy a house (overpriced thanks to government involvment through CHMC) and u go in minus, there u can buy 1 appartment, rent another 4 and may very well call it a pension. For those who lived through Socialism in USSR it is so glaringly visible how all socialisms are look alike each other. Native canadians can’t compare hard core (USSR style) socialism with soft Canadian version, but to me its there. Canadian politicians are building it. When USSR went to Afganistan we were told it was ” International mission”. Here? I wonder what Canadian troops are told why they are there for. On public they are talking about international freedom mission but with wives and relatives ? I don’t think they call it this way. If you think it didn’t happen, think again, my parents talked about USSR reality in kitchens not publicly. Why there is NOONE on national TV questions presence of Canadian troops in Afganistan on daily basis?, who decided to call 401 a Highway of Heros? People? No some politicos. Why CHMC exists? Why our children have to pay todays politicians who sleep in bed with bankers sharing taxpaer dollars through CHMC? Fish rottens from head. Don’t blame people who bought houses with 0/5% downpayments. And list goes on and on.

#168 Hoof - Hearted on 06.12.11 at 9:05 am

Watching these YouTube clips

Max Keiser

MAX KEISER: NO EXIT FOR THE BOTTOM 99.9%
MAX is on his game !!!!

http://www.youtube.com/watch?v=ZY2JKf6UVvw

Watch at 3:41

1 out of 2 Congressman (261 lawmakers )are millionaires
Congressmen are allowed to trade on INSIDE information..its a law…free to trade on inside info…..when doing bailouts were able to front run every TARP, stimulus etc..they, Congress were providing.

WTF?

#169 maxx on 06.12.11 at 9:08 am

#58 Form Man on 06.11.11 at 9:26 am

” E.I has a program for extending benefits for an extra 12 months. This program pays recipients, and coaches them in the intricacies of setting up their own business. These people are classed as ‘self-employed’ during this process, even though they are still collecting benefits. When you read stats that show self-employment increasing, that is due to these people. This kind of blatant manipulation of statistics is troubling; not to mention the dubious merit of deciding the long term unemployed are suddenly good candidates to be in business for themselves……”

Excellent post. Business and government using MSM to grasp at straws that increasing numbers of readers realize don’t exist. Public service jobs are being cut, austerity is here to stay, McJobs are practically the only game in town and even those are mostly seasonal. The economy will not do well until interest rates rise and then those with actual cash will resume spending.

#170 Hoof - Hearted on 06.12.11 at 9:25 am

4 easy steps to brainwash a nation told by ex KGB officer. Host G. Edward Griffin

http://www.youtube.com/watch?v=O44vKR5bFxs

KGB? most of it NOT intelligence gathering.
Only 15 % of is espionage.
Other 85 % is slow and subtle ideological subversion, change the perception of reality .

1.Demoralization
(15-20 years ) aka education of single generation

2. Destabilization ( 2- 5 years )

3. Crisis ( 4 – 6 weeks)

4. Normalization ( lasts indefinitely )

Absolutely fascinating…..this interview was made in 1985 ……..see how apropos it is today

#171 Kim on 06.12.11 at 9:33 am

#151 Mr. Obvious … well said.

#172 The American on 06.12.11 at 9:33 am

For those of you out there who are fans of The Economist, the following is an article in this week’s issue. It is an interesting read as it outlines many of the challenges facing Canada’s cities, focusing primarily on Vancouver. In total, Canada’s large cities need roughly C$238Billion to repair and expand its infrastructure, but lacks the means to make it happen. Apparently, greater Vancouver is set to rise from roughly 2MM people today to about 3.4 MM people by 2041 (that’s basically the size of what greater Seattle is today).

http://www.economist.com/node/18805931?story_id=18805931

#173 The American on 06.12.11 at 9:43 am

Bubble with Burst on Lofty Vancouver Home Prices: Economist

http://www.winnipegfreepress.com/business/Bubble-will-burst-on-lofty-Vancouver-home-prices-economist-123456039.html

#174 Jed on 06.12.11 at 10:03 am

How many people who post here are schizophrenic or paranoid delusional? Really, like Nostradamus le something or other? At least put a disclaimer on your posts so I can skip them, unless I want to study clinical psychology, and get to the ones that are interesting, relevant, realistic…

#175 Alex2 on 06.12.11 at 10:05 am

#167 Alex

Easy big fella. It will never happen here. That’s why we are here.

#176 Uki_7 on 06.12.11 at 10:18 am

#116 eaglebay on 06.11.11 at 4:39 pm:
Do your DD on VMS and GBB.
Next things to a sure thing. X10.
—————

Can someone please decrypt this ?

#177 Daisy Mae on 06.12.11 at 10:36 am

#83 Cookie Monster: “Yes, the question more accurately should be “Do you want to be shot in the head or shot in the stomach”. We encourage everyone citizen of this great country to exercise their vote. Your death is your fault. You got what you voted for. Good luck.”

Yeah, well….BC did vote to adopt the HST, but not me. It is of absolutely no benefit to the consumer, costing the average family $350 a year. Everything is now taxed — everything. Business has not passed on their tax savings to the consumers as the government suggested they could do. It is not compulsory, so why would they?

I wonder what the government has done with the $1.6 billion federal bribe? Or have they even received it yet? Nary a word.

Has anyone seen the BC government ‘stickman’ TV commercials? Millions of tax dollars spent saying nothing…

#178 Hoof - Hearted on 06.12.11 at 10:39 am

#169 maxx

Another thing on Kaiser report…

40% of jobs in US are service sector,…implying McJobs….

#179 Daisy Mae on 06.12.11 at 10:53 am

Further to last…apparently the HST was going to generate thousands of jobs, but I understand that hasn’t happened.

Nothing beneficial has happened…from the consumers point of view.

LETTERS from Capital News:

“Bob is a hard worker who didn’t know what to think about this HST, so he didn’t. However, his boss did and announced one day that the HST was increasing company profits and he wanted to reward the employees and gave them all a raise. Bob began to think that the HST was a good thing — he got a raise because of it!

Bob wants to save money so he will purchase privately when he can. The neighbour had his truck for sale so Bob decided to buy it.

Oh, no! There is now HST on the purchase when he goes to transfer it which previously just had PST on it — an extra 5% for Bob to pay.

The good news is that Bob feels he can finally upgrade to a larger house.

Oh, no! There is now HST on the commission he has to pay his realtor to sel. his current house…

So after getting hit with these new taxes, Bob decided to look on the government website to see what else he has to pay new taxes….”

Bottom line? Bobs new tax burden is costing him more than his raise.”

#180 Victor from Vancouver on 06.12.11 at 11:32 am

I’d like to add a few words to a rosy picture of Ukraine painted by Alex. His calculations are right. It is true that money invested in Ukrainian real estate will bring a few times greater profit then money invested in Canadian RE, and, in addition to that, there are very small condo fees in Ukraine and no such things as special assessments for condo owners. One missing point is affordability of real estate and all other things including auto insurance etc for local people in Ukraine. In the small town where I lived average family income is about 4-5 thousand USD per year. A house costs 50-100 thousand. A condo costs 25-50 thousand. Simple calculation shows that affordability in small town Ukraine is worse than in Vancouver BC, i.e. average house is roughly 15 average annual family incomes. Odessa described by Alex is a relatively rich big city and I guess the average family income must be about 10-20 thousand USD per year. A price of condo therefore is 5-10 times family income, a house will be probably 15-20 times family income. Think of affordability and incomes, and you will understand why people keep leaving Ukraine. There is no “third world paradise” for you if you live on a local third world income. And my feeling now is that Canada slowly moves to the same direction, i.e. becomes a society of rich and poor, without middle class.
From my Chinese friends in Vancouver I heard that they look at Canada the same way Alex looks at Ukraine, i.e. they consider it a bargain. There is one problem in their thinking though. Mathematically RE investment in Ukraine is cash positive, and Ukrainian RE bubble already crashed in 2009, but RE investment in Vancouver is cash negative, and the bubble only seems to be growing. Another note is that in Ukraine RE bubble collapsed about 50% in 2009 even without significant borrowing and leverage by the buyers, and Odessa which is one of the most international cities in Ukraine significantly exposed to foreign buyers was one of the first places to crash.
I hate political topics but I will also comment on Alex’s notes regarding Afghanistan etc. Afghan war in my opinion is a result of cold war. The war in Afghanistan was originally started by the USSR-USA and KGB-CIA in 1970’s and turned into a never-ending internal civil conflict and a disaster for people of Afghanistan. Canada never created this mess and never participated in it and therefore it has no obligations to clean it up. Russians and Americans are responsible for what happened in that country so it looks strange that Canadians do somebody else’s job there.

#181 Dark Sad Monster Bunny on 06.12.11 at 12:47 pm

130 Bottoms – Interestingly enough, I was doing the laundry last night. Part of my domestic duties, along with occasional vacuum, chief BBQer, recycling and all the yardwork. Mrs Bunny looks after the shopping and cooking most of the time.

Yet my income is much larger, and work hours higher. But my wifes upbringing was in a dual income household. So every Saturday was house cleaning day. When she was at home raising the kids, Saturday was still the house cleaning day because that’s the way she had been brought up. I dont know why it wasnt done sometime during the week when she was at home and the kids at school.

#182 vreaa on 06.12.11 at 12:48 pm

Spot The Vancouver Speculators #42 – “In my neighborhood, the people who are buying the overpriced homes sold their smaller overpriced home and took on a new mortgage. They are not speculators.” [Yes, they are.]

http://wp.me/pcq1o-2tV

#183 Ronaldo on 06.12.11 at 1:05 pm

#176 UKI_7 – VMS = VMS Ventures, GBB = Gold Bullion Dev. Corp., both junior gold mining exploration comapanies. Two of many hundreds out there. XIO would appear to be a IShares Exchange Traded Fund but I think the symbol is incorrect.

#184 Daystar on 06.12.11 at 1:05 pm

#41 Utopia on 06.11.11 at 2:56 am

I looked for Jim Chanos on youtube not long ago and couldn’t find anything recent from him until you provided the link (thanks). I’ve liked what he has to say for years, likely because he needs to sell shorts and to do that he has to make a compelling case of which the most compelling one of all is the one that makes the most common sense or comes closest to the truth. What I admire about him is that he identifies weakness in government policy/circumstances but stays away from making timeline predictions of the fallout.

Essentially, Jim states what he believes and why for the most part and looks for the profit potential from the causal effects of what he sees and thats why I like him. Jim offers a needed voice out there because its sincere from what I can tell and its a contrary heads up even though he’s a hedgefund manager and its his job to create in some ways the need to hedge but thats just it. Jim doesn’t have to create it, the need is already there. He just has to identify it… which he does and Jim communicates it well which is why I look for and respect what he has to say. Thanks again for the link.

#185 Daystar on 06.12.11 at 1:09 pm

#16 SMOKING MAN on 06.10.11 at 10:58 pm

“Buy real estate this week end you will not regret it.” – smoking man

Are you going to be around 2 to 5 years from now for us to remind you of this quote? Now is the time to retract it or change your mind as it is now on the record. Just sayin’.

#186 Ronaldo on 06.12.11 at 1:12 pm

#177 Daisy Mae “I wonder what the government has done with the $1.6 billion federal bribe? Or have they even received it yet? Nary a word.”

Probably use 1 billion to pay for the security for the G20 for a start. Thanks BCers, F.

http://www.theglobeandmail.com/news/world/g8-g20/news/g8g20-security-bill-to-approach-1-billion/article1580865/

#187 Aussie Roy on 06.12.11 at 1:32 pm

Cookie Monster

Excellent comments on EMF, RF etc. Been a ham radio operator since 1954 have loved the hobby ever since. Still active on the ham bands and looking forward to solar cycle 24.

Aussie Update

The most indebted home owners in the world.

http://www.news.com.au/business/breaking-news/new-research-shows-australian-home-owners-among-the-worlds-most-indebted/story-e6frfkur-1226072347372

Gee, How debt chews up a families income.

http://www.news.com.au/money/money-matters/how-debt-chews-up-the-familys-income/story-e6frfmd9-1226072807223

Listings up 50% in Melbourne as sales slow.

http://www.heraldsun.com.au/news/more-news/costliest-homes-take-a-long-time-to-sell/story-fn7x8me2-1226073311733

Aussie TV house porn show “The Block”…

http://www.news.com.au/money/property/profit-on-chopping-block/story-e6frfmd0-1226073598839

The last man to be paid is the TAX man.

http://www.dailytelegraph.com.au/money/cash-strapped-businesses-and-individuals-owe-147b-in-tax/story-e6frezc0-1226073641024

Great comments on this story.

http://www.brisbanetimes.com.au/business/property/to-rent-or-buy-which-suburbs-have-the-smallest-gap-20110609-1fuqn.html?comments=18#comments

There has been some new Aussie slang just formalised.

The MEGA Mortgage MUG.

http://www.urbandictionary.com/define.php?term=mega%20mortgage%20mug

#188 April on 06.12.11 at 1:38 pm

The American #172 – I always enjoy reading your posts. Problem I have with these reports though is that they all sound the same. It’s always ‘if ” this or that happens. At least Garth tells it like it is. I’m seeing price drops from NewWest out both South and East. I don’t know about Burnaby or Van. Garth sees it happening across Canada. Why don’t these people – Economist among others, come right out and say the bubble is already deflating. Maybe afraid to stick their necks out?

#189 Utopia on 06.12.11 at 1:50 pm

The Big Picture?

Only GOD knows what is in store for us all and that includes the stock markets. Some of you will have realized I am bearish in general. I try not to let that blind me to daily realities though.

I am a bit of a fan of Dr Robert McHugh. Some of you might be interested in looking at his version of technical analysis. It will warp your minds for sure kids, so be prepared.

It is, nonetheless fascinating stuff if you have a bent for charts and graphs and long term trend analysis on the markets based on the technical picture. You even get a free pass to look at it if you are new to the site which is nice. It is not for everyone though and that is for sure.

Anyway, Robert sees major trouble ahead (after a final bullish impulse leg up to new highs on the Dow and others). He is strictly technical though and does not give a lot of consideration for political interference and machinations that might alter his charts going forward.

If you enjoy nightmares about the future of the economy and the solvency of your pensions you should take a look. The warnings are stark, the inevitability of financial calamity certain (only if you are a believer of course). But what the hell. This is a Sunday.

Have you got anything better to do than worry right now?

technicalindicatorindex.com
https://www.technicalindicatorindex.com/Default.asp

#190 poco on 06.12.11 at 2:05 pm

#54 Ex-cowtown
Been following the Sino-Forest saga. Caught a blurb this a.m. on TV from a Shanghai based analyst dismissing Sino-Forest, not that it is a fraud, but more that it is just business as usual in China. These guys claim that they send their own people out into the field to check things in China and kick the tires and that there are frauds all over the place.
The interviewer then asked how can a retail investor protect themselves. The analyst said “You can’t”.
Apparently the Wild Wild West is now the Wild Wild East.
______________________________________________
how can anyone protect themselves ???
the Canada Pension Plan apparently owns 2 million shares of this stock—was worth appr. 46 million—i wonder what it is worth now

#191 realpaul on 06.12.11 at 2:23 pm

Bubble markets like to take as many people down into hell as possible. This isn’t theory or paranoid misgiving…it’s just a fact. This market will crater when the last bleating fool has been sucked into the vortex thinking that ‘this time it’s differant’. The stock market is a great place to observe cycles and the herd mentality…….the streets are bathed in the blood of greater fools. Why think housing is any differant. Well it is differant from the prospect of fungibility…….RE can’t be sold when the market is goiung down.

It’s hard to imagine ‘not getting in’ when the market disproves the most ardent observers. It’s hard to believe that we’ll ever run out of HAM given the millions of corrupt civil servants, army men, police officials, bureaucrats, politicians sweeping the vaults clean and rushing to hide the loot in Canada before the hammer comes down and the last fools start receiving bullets to the head in the ‘corruption makeover’ that the Communist Party will put on when thye find the polls working against them. They’ll have some very public trials followed by the obligatory firing squads and organ donations to reaffirm their committment to good governance. But the flood will have already upset the lives of every Canadian….or will it?

Remember when everyone was considering having to learn Japanese? Fools are notorious for their their ultra short memories.

It’s hard to imagine the Canadian government raising interest rates…thats just disengenuous with the pimping campaigns in the media. Or will the National debt become so onerous that even the hide a way projects like the CMHC become so indebted…like the Student Loan Program has been maxed out and can’t be carried…that it MUST be discontinued or changed to such an extent that few qualify for loans anymore. There is just so much money a government can borrow before blowing up…think PIIGS.

#192 An Cat Dubh on 06.12.11 at 3:28 pm

Yeah, well….BC did vote to adopt the HST, but not me. It is of absolutely no benefit to the consumer, costing the average family $350 a year. Everything is now taxed — everything. Business has not passed on their tax savings to the consumers as the government suggested they could do. It is not compulsory, so why would they?

I wonder what the government has done with the $1.6 billion federal bribe? Or have they even received it yet? Nary a word.

Has anyone seen the BC government ‘stickman’ TV commercials? Millions of tax dollars spent saying nothing…

Business got spoiled the last 40+ years. Lots of boomers entering the labour force, women entering the job market in greater numbers. This only meant more competition for jobs, which means lower wages, which increases prices for many items like real estate. Now in Alberta, some industry types are raising the “labour shortage myth” again. They just want to import foreign workers at lower wages so they can profit more. This happens in the Okanagan Valley in the wine industry. A few years ago a vineyard in Naramata laid off it’s workers who were making $12\hr, and then hired Mexicans(legal guest workers) for less. Many farms advertise on Craigslist and Govt. Canada job site for workers. Wages $9.28 per hour. Usually they always pay $10, but it’s only enough to pay the bills.

#193 zombiedelight on 06.12.11 at 3:43 pm

It’s all a function of commodity prices and corporate profitability. Neither will be halved. That is an absurd position. — Garth

_____

Yes that is so absurd, everybody knows the world economy is doing fantastic and that real estate bubble in China, Canada and elsewhere will have absolutely no effect whatsoever on wealth, economy or on the stock market….
Brilliant!!

Hey Garth, did you ever notice the TSX is down 1200 points from a couple months ago?
Did you notice it just confirmed last week a prolonged sharp and straight slope down?
Did you notice the Dow jones follows?
Did you notice anything??
When its gonna be down 2400 points from the start of march, will it be called a correction in your mind or will you still call it a ‘rising tsx’ ???

TSX likely in for further declines amid more negative U.S. economic news
http://ca.finance.yahoo.com/news/TSX-likely-further-declines-capress-3230212883.html;_ylt=Akc2iD33GqB782lTuXYjEYhyzJpG;_ylu=X3oDMTE4ZDNtMDFiBHBvcwM2BHNlYwN5ZmlUb3BTdG9yaWVzBHNsawN0c3hsaWtlbHlpbmY-?x=0

Markets soar past their moving averages, then correct below them. It ain’t a crash yet, sailor. Keep your shorts on. — Grath

#194 confused and a little crazed on 06.12.11 at 4:40 pm

172/ 173 American,

Good to see you are out and about I do enjoy you candids posts. Not fluffy …just ” AS is” . I been to bellingham a few times and seattle only once. A long time ago

My shopper friends say the deals are definitely there belligham/ seattle …why pay 20 % more when an hour 1/2 drive gives you a better selection and price

Anyways . as humans we all want good value for our money…except when it comes to real estates then the fundamentals and math do not matter

hope you enjoy the weather out there :)

#195 BigAl (Original) on 06.12.11 at 4:43 pm

Scary isn’t it?

We have the example of the U.S. where, while housing has absolutely tanked, the stock market has rallied (recovered?) like never before.

According to conservative ideology and econ. theory, all of that wealth and those gains by the rich, plus the Bush tax cuts, should be trickling down the the American people any time now………..

Any time…….

Any time now…..

Trickle?……..

Just a little?…….

Any time now…………………………………………………………………………………………………………………………………………………………………………………………………

#196 Utopia on 06.12.11 at 4:59 pm

Anyone else agree sugar is looking like a really good bet right now?

Daystar #184: You are welcome. I agree. We could use a little more Chanos in our day to day lives. There are still too many out there living in the mythology of the never-ending Chinese growth story. They are in for a surprise. Guys like Chanos put a little flame to the feet of that myth of “It is different there”. Of course it is not different in China. The reckoning there will come too in time. Those of us who follow this site can perhaps see more easily than others the insanity of having almost 60% of your economy wrapped up in construction, housing and capital projects. I mean seriously, who are those analysts really trying to convince when they insist that growth model (exceeding 8% GDP annually) will just keep going and will not end very badly at some point? Not me, that’s for sure.

#66 Kim: Good points. As you said, what if all those living rent-free had to pay the full price for their accommodation. That would indeed take a bite out of national consumption numbers and would result in some marginal increase in unemployment. This is just another of the economic distortions that are a harbinger of trouble in the future versus a sign of better times coming. There are so many signals lately I can hardly keep up with them all. The numbers involved are freaking staggering too. It is not as if we are just discussing a local or regional anecdotal story or a quaint blip on the radar. Millions of people are now affected and the lifestyles they lead are feeding directly into the new data stream. It is material.

#55 Kaganovitch: Thanks for the link. I will wait for the whole story to be offered on Monday. It looks interesting. What many economists seem to overlook is the social aspects of economies under a microscope. Too many are obsessed with the raw data, imports, exports and trade balance numbers. That is a mistake in my opinion because it only represents a part of the picture. Politics plays a huge role. You can ignore it at your peril. Social discontent can be even more destabilizing and in a country like China where the majority still live on less than 2 dollars daily while billionaires are being minted in the big cities indicates that problems are developing in equity and social opportunity. I worry that this is indeed China’s Achilles heal. They might be the mightiest producer of goods on Mother Earth today but they will be brought back down to ground violently and from within if they cannot manage the unrest that is now developing between the elites and the urban poor. Let’s not forget China’s past. They have been there before. Hopefully they have learned the lessons of the past and know how to contend with the social discord and political unrest that defines economic imbalances. The same kind of situations as are now rising again.

#197 Herb on 06.12.11 at 5:16 pm

(Un)realpaul @ 191

you are one sick puppy.

“Army man”

#198 VICTORIA TEA PARTY on 06.12.11 at 5:38 pm

#179 Daisy Mae

BREAKFAST OF CHAMPIONS!

So the gentleman’s HST’s experiences weren’t quite what he thought they’d be. Fine. OK. Alright. Now, get a life!

Here’s the deal on the HST. It’s a CHOICE; NOT an OBLIGATION.

In other words, if this chap didn’t have the “NEED” to buy a truck and upgrade to a larger home, then there’d be no damn HST to pay!

We have choices in this society, whose citizens (those who are still taxpayers as opposed to others who are free-loading zombies) must pay income, property and other taxes because there is NO government money. It’s OUR money! Who ELSE is here to pay the fabulously out of control costs of health care, education and welfare, little green freaks from Pluto?

We pay enough income tax, so the option of an HST is a “gift” more than an “obligation”. It forces us to make clear consumption choices. And that’s good. It may EVEN help many to reduce their debt burdens.

ANOTHER CONSUMPTION SUGGESTION

So, at the dining-out facility you intend to next visit, why go in the first place?

You’ll only be set-upon by some tip-trolling, bitchy, little HST-conflicted wait-person while you and your’s navigate through large near-empty plates featuring possible visible indications of “food” costing a few good C-notes.

Instead, consider staying at home and munch on good old-fashioned steaming hot oatmeal porridge topped with raisins, brown sugar, and one per cent milk. Later, take a walk, get some fresh air. Feeling better already? Of course, y’all do. And no HST!

Breakfast of Champions…for the Bonus Crowd!

#199 Nostradamus Le Mad Vlad on 06.12.11 at 6:32 pm


#179 Daisy Mae and #192 An Cat Dubh — “BC did vote to adopt the HST, but not me.” — Thanks for posting updates on the HST farce.

The HST wouldn’t be so hard to swallow if it had been bought it with public discussion beforehand, to let each voter make their own mind up.

However, Gordon ‘Sneaky’ Campbell added a whole bunch of other untaxed items to the list.

Because Campbell used the same trick as H-F did with their I.T. lie, criticizing Ralph Goodale for contemplating a 10% tax on I.T.’s, then saying “the CPC will never tax income trusts” and lying about it — it seems quite clear that C-H-F were behind the HST — the feds. need more revenue to pay for their wars (not my wars, theirs).

The better half and I will be voting Yes to scrap the HST. Apparently, less than 10% of the BC populace are businesspeople, yet they are the ones — along with the province and feds. — who will benefit the most by it, ordinary people don’t.

Keep the updates coming!
*
Fukushima Radiation spiking.

China “Welcome to the liquidation sale of the United States of America.” wrh.com. “The fed now owns the debt — but the debt is no longer our problem — trillions of ready American dollar liquidity (spendable cash) in the hands of China is the new hurricane on its way through the American’s America.” 11 States most likely to default in the next five years.

Arizona Stoopid iz az stoopid duz (and other links); IMF More computer-based FFs, to cut back on our freedom of choice; Retirement? Fuggedaboudid!; US QE2 The money went to who?; IMF and World Bank Global loan sharks, in collusion with the m$m.

Cover-ups and Deceptions “This reminds me of the Gary Condit/Shandra Levy situation in the summer of 2001,right before 9/11, when this was almost all you could hear blathered by the Corporate media. Levy, a congressional aid to Condit, went missing, and her body was ultimately identified. But this was also the summer when the Bush administration was attempting to convince the Taliban to negotiate a deal on pipelines. Further: http://911falseflag.com/pipelinemap.htm ; 5:55 clip Hidden agenda — “Britain and France are still pushing for a UN resolution, condemning the brutal crackdown against anti-government activists in Syria. Russia, which opposes any attempts to intervene in the Syrian conflict, said it won’t back the move.”.

Gas Bubbles a.k.a. deep undersea volcanoes. Utah 15 feet of snow in June. It’s a polar shift!

4:12 clip “Online Censorship — Did you know that governments can and do ask YouTube to remove certain videos? The US and the UK are the biggest customers of this “service.”

“How it works.”
Being Arrested for feeding the homeless.

The west interferes again. Gold, oil, control of Africa, etc.; Iraq One and Iraq Two. The US has a bloody nerve! Black Sea The US is pushing its luck, ‘tho they have nothing left to lose.

Monsanto I preferred Joe Six Pack; Shadow ‘Net is bankrolled by the . . .

#200 Mikey the Realtor on 06.12.11 at 6:34 pm

@Hoof – Hearted

Alex Jones says hi, I just bought my new gold coloured tin foil hat off his site, get one before it’s all sold out.

#201 Ronaldo on 06.12.11 at 6:58 pm

http://talkdigitalnetwork.com/2011/06/copy-week-money/?utm_source=weeklyrecap&utm_medium=email&utm_campaign=Weekly%2BRecap

Great interview Garth.

#202 Daisy Mae on 06.12.11 at 7:01 pm

#198, Victoria Tea Party — “We pay enough income tax, so the option of an HST is a “gift” more than an “obligation”. It forces us to make clear consumption choices. And that’s good. It may EVEN help many to reduce their debt burdens.”

Well, it will do that — decrease our spending even more. LOL People ARE

#203 Daisy Mae on 06.12.11 at 7:22 pm

#199 — Nosty

“The HST wouldn’t be so hard to swallow if it had been bought it with public discussion beforehand, to let each voter make their own mind up.”

Well, it WAS Campbells’ undoing.

Clark is promising the 12% HST will drop to 10% — it’ll take two years to get to that point, however, but it didn’t take any time at all to implement the HST — and just how long will it stay at 10%? I hear this crap ALL DAY. LOL

Are people buying into this garbage? Are we THAT damn stupid? The governments’ arguments are pathetic….so shallow, so transparent!

With the economy going down the old proverbial tube, people will just be FORCED to adopt an austerity program for themselves, even more so in BC.

I really hope this backfires on the government.

#204 BPOE on 06.12.11 at 7:27 pm

Ecomomist Magazine = Shiller = Full of BULL
The Economist Magazine for years have stated how overpriced Vancouver is. Office full of fools and should be held liable for their off the cuff comments on a city they know nothing about

#205 Daisy Mae on 06.12.11 at 7:39 pm

I checked a Walmart receipt a while back and noticed I was charged HST on a ‘bottle’ deposit. Well, I sure wasn’t refunded that tax when I returned the cans.

We are being charged HST on the product, HST on the recyling fee (a service)…but HST on the bottle deposit?

So I reported it to the Walmart manager…she checked into it…and sure enuf! Consumers were being falsely charged and all electronic cash registers had to be adjusted. Walmart didn’t receive this illegal windfall…the BC government did.

This must have been going on since the HST implementation. And this is just one instance….

#206 Hoof - Hearted on 06.12.11 at 7:44 pm

Mikey the realtor……

Remember time we went to Mumbai got hammered..

You woke up in bathtub full of ice with no kidneys…no heart….no brain…and still selling real Estate.

Man what a machine

#207 JohnnyBGood on 06.12.11 at 7:46 pm

#155 Cookie Monster on 06.11.11 at 11:43 pm

Excellent info! Some questions remain, however, particularly vis-a-vis photons. I can’t remember if I actually found info re: photon transfer between electrons, or if I am conflating this with the fact that electrons emit photons when they drop to a lower energy level.

In any case, it is very difficult to find information on the fundamental nature of electricity. Here is an article that blames the problem of understanding electricity to the various definitions of electricity. I can’t speak to the credibility of the source, but it’s interesting none the less. http://amasci.com/miscon/whatdef.html

Great discussion.

#208 Utopia on 06.12.11 at 7:51 pm

#198 VICTORIA TEA PARTY

“So, at the dining-out facility you intend to next visit, why go in the first place? You’ll only be set-upon by some tip-trolling, bitchy, little HST-conflicted wait-person while you and your’s navigate through large near-empty plates…”
=======================================

Tip-trolling, bitchy little HST conflicted wait-person? HaHa! Too funny. I really hate going to restaurants some days too. Nobody gives really good service anymore. Not like the old days when waiting was actually considered real work and a legitimate career and not just a pit-stop on the way to some fantasy executive office or research position.

I loathe restaurants now because the thoroughly jaded and entitled, overeducated juvenile creeps dishing out the menus and bringing the meals all hate their bloody “service sector” jobs like poison. Too much education. Too many expectations of better careers. They are too good for their customers.

They seem to hate the public in fact and deeply resent what paying customers represent. People with a right to a basic polite meal service based on degrees of menu prices, postal codes and serving tradition.

Oh some of them are good, no doubt. They try to please and do make an effort to earn a tip. If you had to listen to the belly-aching and bitching behind the scenes though you would never go into most traditional food establishments.

The kids would just as soon poison us as serve a paid meal. Hard to know where all this attitude really started. They seem to think the Boomer’s destroyed the world and ripped them of their fair share of the action.

Maybe they just hate their parents.

#209 BrianT on 06.12.11 at 8:10 pm

#200Mickey-Ignorance is bliss-you must be one happy SOB.

#210 Glenn on 06.12.11 at 8:34 pm

Strange how some “smart” people can manage to add 2 and 2 and decide the smart thing to do is not get tangled up in real estate.

Yet those same “smart” people still rush out and marry a feminist (yes, the vast overwhelming majority of all females in North America, the ones that deny it are the biggest feminists of them all).

Then when they get served with divorce papers, finding out the hard way that 70% of all divorces are initiated by the female, and the rate of divorce is somewhere around 70%, they are somehow surprised?

Two plus two is still four, right?

#211 Trailer Park Boys on 06.12.11 at 8:49 pm

WTF is this electrical shite ?

All I know is bootleg off Randy and Laheys power for the dope operation.

How it works and why it works is uselesss bullsh*t for guys who can’t get laid…mostly guys past Grade 12