Irony

Don’t know about you, but I dig irony. Already this week’s drenched in it. In Canada a new survey shows business confidence is shooting its little nub up, while economists were aroused at the latest housing starts. Meanwhile in the rest of the world they’re busy passing around hard hats and meal rations.

In case you missed it watching back-to-back episodes of House Hunters (‘Will it be the house with the Man Cave, the one with her Dream Kitchen but no roof, or the one they both hate but can almost afford?”), risk is back. Not that it ever vanished, of course, but in the last few weeks people who actually have money think they should protect it.

Hence the sell-off in stocks, and the run-up in bonds.

Forget the tax-evading profligate Greeks. Now we’re all worried about Portugal and Spain. Oh yeah, and sustained growth in China. But mostly, America. The jobless numbers on Friday sucked, and Obama seems headed for an impasse on critical talks to cut federal spending and raise the debt ceiling. Of course, there will be no default on American bonds, but all this (combined with a viciously bad housing market) is pointing towards a weaker US economy. That means less demand for stuff, bringing on falling commodity prices, cheaper oil and a chill in Edmonton.

See the irony? Canadians – who have the most to lose of anyone on the planet if America stumbles again – are merrily buying houses and counting future profits, while borrowing their buns off. I guess that’s because it’s different. After all, everyone wants to live here.

So, here’s Tim. Let’s do him.

Being a recent follower of your blog, it is quite obvious that you currently don’t hold the real estate market in very high regard.  Being from Hamilton and working in Toronto, my girlfriend and I have found house hunting in Burlington/Oakville an exhaustive task.  We don’t see bidding wars or houses going to well over asking but do see inventory levels as fairly low with most places selling within 24hrs of listing if they are at all half decent.  Being a hopeful first time homebuyer, I just can’t justify spending that amount of money in such a short time period.  I need to think things over.  All this being said, are you of the opinion that all first time homebuyer should avoid the current market?  I will explain my situation below:

Price range = $200,000 to $300,000
Down payment = Will equal 20% = $40,000 to $60,000
Combined annual gross income = approx $110,000
Current debts = $10,000 (student loans)

Currently we’re planning on spreading the mortgage over 30yrs and making lump sum and double payments whenever possible.  This will allow us to maintain proper emergency funds / rainy funds etc.  I feel that we’re planning on living well within our means but also feel that if the market is set for a 10% to 15% corrections within the next year or so that we should wait until then before buying.  Any advice you can offer would be greatly appreciated.

Well, Timmy, you sound like an earnest young egg, and we’re all impressed you and she plan on putting down 20%. Also, you’re looking in a price range that is just three times your annual household (are you going to marry her?) income. Also good.

But is buying a condo or a small townhouse in that area a good idea? Oakville maybe. Forget Burlington, unless you like growing old on the GO train. The key is getting a first home with resale value, since it won’t be your last. So if you want to build a secure financial future, or just break even on a place you might own for a few years, it has to appreciate in value. If there’s little prospect of growth, don’t do it. Renting’s far cheaper.

Ironically, of course, the housing market is far more prone to decline than advance. That means a $300,000 purchase falling 15% wipes away $45,000 of your $60,000 equity. And yet your occupancy costs do not erode by a single nickel. If, as I suspect, we enter a number of years of a soggy or melting market, you might never get your capital back, selling for a loss you can’t even claim.

But, worse, it sounds like the two of you – even with a $300,000 house, will be spending almost everything you earn. Bad move, dude. This might have worked for your parents during inflationary and expansionary times, but in this world of deleveraging and (likely) deflation it’s no way to get ahead. Far better that you take your liquid savings and profit from days like these – buying financial assets when equity traders are hurling themselves from short buildings.

After all, you don’t need to buy a house to live in one. You don’t need real estate to have a home. You just need each other. And lots of money.

Most people don’t get this. Likely never will. They junk up young lives with stuff and obligation, believing this will bind them. But debt isn’t wealth. And freedom lost is often gone forever. Most relationships fail amid a bounty of possessions.

That’s irony.

190 comments ↓

#1 Raincouver on 07.11.11 at 9:14 pm

People mostly believe if house values rise and they borrow from their house they are just spending lottery winnings. Vancouver is building enough housing to last 10 life times.

#2 Cranky Cyclist on 07.11.11 at 9:16 pm

“But debt isn’t wealth”. Truer words have never been spoken. I said the same thing to my stockbroker, and he stared at me like I was an alien.

#3 Mark Carney is a Fool on 07.11.11 at 9:16 pm

Smokingman and all ther other realtors can talk all they like but credit is running out in Canada. Buddy in Vancouver in his million dollar townhome is UNDER WATER. How? How in a rising market? His cashed out his equity. Yup bought a few years ago and cashed out the “equity” since they COULD NOT afford to live. Another buddy is having problems with her credit card as it seems someone is using her card around town,this has happened more then once . Now for the next five day she has no credit card. I said to her why don’t you use cash. This is a “home ownerof one year said to me “LOL…..what money? I live off credit” Yes that was the response back. Canada is in the biggest credit bubble in history. It is now bigger then the credit bubble in the US. Have a banker buddy who tells me they have now started to “LIMIT” peoples credit since many have maxed out or close to maxing out and are asking for more money. The banks are now saying NO! . People will borrow until the banks stop them. This EXACT same thing happened in the US. We all know the outcome. Welcome to the 2011 CREDIT CRASH of Canada. Sorry smokingman but light up another cause the crash is coming RIGHT NOW. Look out below indebt to your eyeballs.
—————————————————————–

My BIL and my sister are totally living off credit and they do not care. They think their home will make them money and they will pay off the debt with that. Imagine tens of thousand of others doing the same think. Mark Carney you are a fool.

#4 Government Dude on 07.11.11 at 9:19 pm

Don’t buy a house!
It could depreciate.
Sell the house.

#5 Imstupid on 07.11.11 at 9:19 pm

I posted this late today, hopefully I can get some different views since I’m emotional right now.

Hi Garth and others I need advise.

Just had both my cars broken into yesterday night. Went into locked garage and stole I’d credit cards and cash($200). I know I’m an idiot for leaving it their. My problem is as follows:

I no longer like neighborhood, I live in down town Toronto. I own the home value 600k I want to sell and buy in a better part of city or just outside city. The problem is that I know homes will correct and will overpay if I buy now but will also sell for more than what I will get later. Is my insecurity (having just been robbed for the 5th time) clouding my judgement? I have an income of 150-200k and 200k savings and I’m 31 so retirement is not even an issue yet. I know I will pay more for a new home as I am going on pure emotion. What should I do I dont like the area anymore. Do I stay put and feel insecure. Do I move to more expensive home and blow my savings knowing I’m throwing money away but get security back? I’m stuck what would everyone here do if they were in my shoes?
The cars were in the garage. The door was busted in and they looted.

Thanks

#6 Joe on 07.11.11 at 9:22 pm

This is eerily and remarkably similar to the situation that me and my girlfriend would be in about a year and a half from now… But I know better than to buy a house in this market, and I’ve got her to be a little bit suspicious of being in a rush to buy.

The letter wasn’t from me, but it’s almost as if you’re speaking to me…

Anyways, I already knew all that and agree with you. Thanks for nothing! :p

#7 McSteve on 07.11.11 at 9:22 pm

Most relationships fail amid a bounty of possessions.

Well said. Marriage is the most important financial decision you will ever make.

#8 WI Boomer on 07.11.11 at 9:32 pm

Why add a thing? Garth has made a fitting explanation of the current situation. Wait. Rent. Make the honey a wife….see ya in a couple of years.

By the way, there will STILL be houses for sale, and likely at better prices, too.

#9 George on 07.11.11 at 9:34 pm

Garth,

What do you think of commercial real estate? A friend of mine who is a realtor (yes, they do have friends) wants me to look at a commercial property that is fully leased with a high profile restaurant chain in Edmonton, the income is about 8% of the investment, do you think commercial property is a good invesment?
Its a rather big investment at over $1 million.

Too big a question to answer here, but I’d buy a commercial property in a heartbeat compared to residential. I addressed this in a recent post. — Garth

#10 BPOE on 07.11.11 at 9:36 pm

And that folks is why gold is going over $2000 very very soon. The other safe haven is Vancouver consistently outperforming the World.

#11 Kimi on 07.11.11 at 9:39 pm

OMG … am i???

#12 Bottoms_Up on 07.11.11 at 9:42 pm

A mortgage of $240,000 ammed over 30 yrs will cost about $1200/mo.

Add in property tax of $250/mo, maintenance of $300/mo, water/heat/hydro at $200/mo and you’re looking at a monthly payment of around $1950.

You can rent a nice 3 bedroom apartment in Burlington for around $1000.

Thus, you’re out $950/mo by buying.

And don’t forget the lost opportunity cost of having your $60,000 tied up in real estate, and don’t forget your closing costs of ~$2000.

So you’re going to be ‘out’ $62,000, plus $950 every month just to say you are a home owner.

In your position, I would invest the $60,000 for my retirement, rent for a few years and bank the $950/mo until you save for another 20% dp.

At that point in time real estate should have hopefully calmed down and you can vultch to your hearts’ desire.

#13 steve p on 07.11.11 at 9:44 pm

the only thing holding this ponzi up is the low variable rate mtg.

the interesting thing is low interest rates are actually a very negative thing.

the interest rate is simply the price of money which is a function of supply and demand. it means low interest rate equals low demand for money. high interest rate means high demand for money.
high demand for money means economy is booming and people will pay more money to borrow capital. low demand for money means economy is not booming and people do not want to borrow capital for expansion

#14 Greek Roman Aryan Era on 07.11.11 at 9:45 pm

Loaded Dumpsters
Food, clothes, tools
By the curbside

War, fight, team up
For the demo
of autocracy

move along, miss Foolpants on
The smoky highway #1,
littered withcrashtest dummies
To the acid water beach,
stuck between the no Parking
Moment in time.

#15 Bottoms_Up on 07.11.11 at 9:49 pm

#5 Imstupid on 07.11.11 at 9:19 pm
—————————————–
I find it hard to believe that after having been robbed 4 times you still left money and credit cards in your car.

I also find it hard to believe that someone with an income of 150-200k is soliciting advice from strangers.

If, by some miracle, you are not making this stuff up, I would then recommend moving to your desired neighbourhood ASAP. You can’t put a price on safety and peace of mind.

#16 Harvard Grad on 07.11.11 at 9:49 pm

I come to this site for insightful vision – but a overwhelming number seem so fixated on housings “supposed”death spiral that they sit and hum to themselves that the market will fall, the market will fall – while the market moves higher – and those who bought are lavishing in the many positive aspects of owning a home – look past the monetary aspect – a home is your own piece of the pie – your castle – your domain – a little piece within a world of chaos and confusion.

I started my road to home ownership in 2002 – with miminal savings – I lived life for what is was meant to be – trips, sailing, fine dining, fast cars, and countless adventures – luckily I’m not one of the people in here who pinch pennies – worry that prices will drop 10% – sh%t, life is too short to be consumed “what if’s”- and what have you experienced so far – basically nothing – unless walking to the corner store is what you call an adventurer – stop being so cheap –

Garth had previously wrote books on buying realestate, now he tells us to run as fast as you can away from it – too where – is renting your safe haven, as I said before, if inflation gets out of control – hard assets is where you want to park your money – anything less will be foolish.

There is never a right time or wrong time to buy – it depends on the individual – what risk tolerance they have – and what is there long term goals – period –

Too many in here wet themselves on something we have no control over – relax, buy your dream home – put in that pool in the backyard and enjoy (cause if the Mayan calender is correct – time is ticking to an end)…. you come into this world with nothing – and you’ll be leaving with nothing so stop sweating the small stuff – live it up – wankers!

#17 kimi on 07.11.11 at 9:53 pm

You are right Garth… my last had it all, all and then some and debt to boot. Nice clothes, nice car, brand name everything and I added to it as I thought it was easy to make him happy because he liked stuff. I now regret it … I could have had offered more in regard to time and knowledge. I could have made a difference and let it be known ‘its not about the stuff’ but in the end he left… because he was stressed about the debt and ‘stuff’. I ended up getting a good bye email and so much for that.
Lesson is .. some people are open to seeing a different way, a way out of the box that others aren’t. It seems on this blog, you get smart people who hook up with people ‘stuck in the box’. All I can say is good luck with that, cause it didn’t work for me.

#18 $froma$ia-(Money does come from trees!) on 07.11.11 at 9:57 pm

wELL Garth is still wrong and have been waiting for a long while for him to be right…..

Marc Carny needs to raise rates, the reconing needs to come for all other nations followed Amerika into cheap debt.

$$$

#19 squidly77 on 07.11.11 at 9:59 pm

http://1.bp.blogspot.com/-LbtGuHngx-U/ThuTym_3SKI/AAAAAAAAATc/Yoa8drVfs8s/s1600/europe-debt.jpg

And people worry about the U.S.

#20 BC Bring Cash on 07.11.11 at 10:00 pm

Harpers steady hand on the tiller. How reassuring are his words? Lets perhaps just imagine that a lot of our export eggs are in the China basket. (Our commodity exports) China has been increasingly advertised as our salvation due to the soft demand from the USA. China is concerned about default on local Government debt. If China has a financial crisis Harpers bets are way off.
http://www.chinadaily.com.cn/cndy/2011-07/11/content_12872197.htm

#21 Omni on 07.11.11 at 10:02 pm

#5 Iamstupid…. simple reply buddy: If you read this blog then try to sell your place and rent. Save the money from the house and build it up for a few years. List your place a bit lower than the rest. Cash out my friend. You are 31. I have a decade on you, its not about the break-in, you ask because you ‘know’, you are not stupid! You ask us because you already know the answer to your question and that is sell it… sell it while you can my friend, a home owned or rented dosent define you.

#22 DML on 07.11.11 at 10:04 pm

God is an Iron.

#23 Snowman on 07.11.11 at 10:05 pm

“Price range = $200,000 to $300,000
Down payment = Will equal 20% = $40,000 to $60,000
Combined annual gross income = approx $110,000
Current debts = $10,000 (student loans)”

“But, worse, it sounds like the two of you – even with a $300,000 house, will be spending almost everything you earn”

Lets see: $300000 house => $50000 down => $250000 mortgage @4% for 30 years =>$1188.80/month =>$ 14,265.6/year. Now if you compare that against $110,000/year what they make, I just don’t see how they spend almost everything they earn on the house? Where did you come up with that?

His words. — Garth

#24 Utopia on 07.11.11 at 10:05 pm

#7 McSteve on 07.11.11 at 9:22 pm

“Marriage is the most important financial decision you will ever make.”
———————————————–

Those may be the most brilliant words ever spoken on this blog. Well done Steve.

#25 kimi on 07.11.11 at 10:05 pm

#7 Mc steve… you are right. Most relationships fail unless you have the same finacial practices. Either that or somewhat the same. McSteve it is the most important financial decision you will make. Bravo!

#26 Snowboid on 07.11.11 at 10:06 pm

#9 BPOE…

Don’t care a bit about gold, just don’t want the stuff in my mouth to fall out.

But I’m assuming your comment about Vancouver is ‘tongue-in-cheek’ as there is nothing safe about the RE market there.

And your reference to ‘haven’ must mean the TV series that dabbles in the supernatural.

It will take some serious witchcraft (apologies to any Wiccans on the site) to keep Vancouver from imploding.

But hang in there, RE investors – I’m sure you will have some wicked tax write-offs in the next year or so!!

#27 squidly77 on 07.11.11 at 10:09 pm

The U.S. will soon have the world by the nuts.

If you owe the bank $100,000 and can’t pay, YOU have a nasty problem.

If you owe the bank $1,000,000,000 and can’t pay, the BANK has a nasty problem.

The U.S. owes China $1,000,000,000,000+ So tell me, who has the problem.

#28 squidly77 on 07.11.11 at 10:14 pm

The U.S. can handle all credit, social commitments and their countries banking needs internally.

The U.S. can supply all it’s food and energy needs internally.

The U.S. needs no one. The U.S. has the most powerful and destructive military on the face of the planet, no country threatens the U.S.

So tell me again, who has the problem.

Sorry to be so far off topic.

#29 nonplused on 07.11.11 at 10:21 pm

Go to fairewinds.com and watch the video http://www.fairewinds.com/content/why-fukushima-can-happen-here-what-nrc-and-nuclear-industry-dont-want-you-know

In the long run, we are doomed if we don’t start doing something about this. The world will end not with a bang, but with a whimper and giant cockroaches that will eat your children. Assuming there are any children. Luckily it’s a slow process, could take 100 years. But all these long lived radioactive materials we have created will not stay in their containments anywhere near as long as they will be disastrously poisonous and world wide there is a lot of it. A lot.

But back to the blog topic:

No American default, eh Garth? Probably true, in the short term. But long term it’s inflate or die. None of the promises that cannot be kept because they are impossible will be kept. Social security? Not a chance. Teacher’s pensions? Plan like a private sector employee because the pension fund will go broke and the government will not be able to backstop it. Retire at 55 on a pension? Hahahahaha. Might work for a few years.

Things that cannot go on forever usually don’t. But they will go on for a little while yet as the crisis deepens. And then one day, they won’t.

There is no way that the western world can pay back its debt at current purchasing power. So it won’t. But we’re ok for a few more years of Ponzi promises.

If the wealth existed to keep this gravy train going, we wouldn’t be in debt up to our eyeballs on every level, federal, provincial, municipal, and personal. We are broke. Our lenders are not getting paid back in real, inflation adjusted dollars. No way. It’s not possible. Maybe if we invent some sort of free, flexible, universal energy and robot, genetic, and nano technology approaches the realm of science fiction, but so far no dice. The promises were based on cheap oil in unlimited supply, and the tank is half empty.

Your advice to Timmy is spot on though. You seem to have the real estate thing down pat. On the investment side, you aren’t bad, but you are no risk manage. You only plan for events that diversification can smooth, and rely far too much on historical performance as opposed to risk assessment. On the other hand, you’d make a good credit rating agency. The world is about to change, and the dominos are lined up everywhere.

#30 Carlyle on 07.11.11 at 10:22 pm

#5

sell and RENT

The answer is so simple it hurts.

why must you own? sell and rent some nice digs until the market cools/collapses then vulch if you must own.

#31 Unafordable on 07.11.11 at 10:23 pm

We make 150K/year taxable, but at these unfordable prices in Toronto, I am wondering who is buying? 2% interest fine, but how do you pay the average 750000 back??? It is puzzling, that we really do not know ANYONE that can afford current prices. Another sign, this induced ‘mirage’ won’t last the summer. Toronto and poorer sister Vancouver will crash a lesson for history books.

#32 Cato on 07.11.11 at 10:23 pm

The recession never ended, it was simply masked by misguided stimulus spending. Italy is in even worse shape than Spain or Portugal and if just one falters the eurozone collapses. Dig a little deeper into the jobs numbers and even Canada is in dire straights. Its even worse than first glance, the american govt dollar strategy is having its desired effect. Canada is losing high paid manufacturing and tech jobs to the US, to be replaced with part-time domestic mcjobs.

Tim needs to wait this out a few years. Its not going to be much longer before we see what sort of world emerges from the other side.

We’re going to see plenty of posturing but eventually Obama & congress will get what they want. Both secretly want the same thing, a hike in the debt ceiling large enough to carry another round of stimulus for one last election cycle. They just have different ways of selling it. But this is were it ends, the supposed infinite fiat credit card will finally be maxed out and the world will rebalance itself.

Change brings opportunity for those who are prepared. Being prepared means access to liquid capital & mobility. A house brings neither. Be a shark Tim, be ready when the blood starts flowing.

#33 T.O. Bubble Boy on 07.11.11 at 10:23 pm

Speaking of HGTV shows, Til Debt Do Us Part Home Edition was on this evening, with one of the best intros I’ve seen in a long time… the “owners” of 3 properties had stated that their goal was to have a million dollars in mortgages!!!

When a mortgage is considered an investment, you know this will not end well.

#34 Learning to Invest in Kelowna on 07.11.11 at 10:28 pm

Just wondering how your portfolio has held up over the last quarter? My portfolio has been pretty much neutral so far for the year. I have the following asset allocation which is made up of a mix of ETF’s and one specific dividend paying stock which has actually been the best performing of the bunch.

35.9% – Canada, 34.4% – USA, 14.3% – Emerging Markets, 15.3% – Bonds

I was also wondering if you have any thoughts on the TD E-series of funds? They are mutual funds however they have low MER’s (not as low as ETF’s) but the advantage for a young investor like myself who doesn’t have $50+G’s sitting in the bank is that you can add money without getting hit with trading fees of $29.99 for every trade which is the main disadvantage of ETF’s for us youngin’s! I really like the idea of dollar cost averaging and am confident that over my lifetime I will make money investing but I will make real money by compounding interest over 30-40 years.

I’m debt free, house free and the only thing that I’ve got against me is that my gf is bugging me for a ring, hey it could be worse! She could be bugging me for a house! ha…

Keep up the good work, I am ready for the schooling and thanks for your time.

#35 squidly77 on 07.11.11 at 10:31 pm

http://www.zerohedge.com/article/eur-plunges-after-lagarde-intimates-greek-bankruptcy?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29

The EURO is free falling, tomorrow could be ugly.

Again, sorry to be off topic but this story is quite big.

#36 westcanguy on 07.11.11 at 10:32 pm

I’mstupid wrote…

Just had both my cars broken into yesterday night. Went into locked garage and stole I’d credit cards and cash($200). I know I’m an idiot for leaving it their. My problem is as follows:

I no longer like neighborhood, I live in down town Toronto. I own the home value 600k I want to sell and buy in a better part of city or just outside city. The problem is that I know homes will correct and will overpay if I buy now but will also sell for more than what I will get later. Is my insecurity (having just been robbed for the 5th time) clouding my judgement? I have an income of 150-200k and 200k savings and I’m 31 so retirement is not even an issue yet. I know I will pay more for a new home as I am going on pure emotion. What should I do I dont like the area anymore. Do I stay put and feel insecure. Do I move to more expensive home and blow my savings knowing I’m throwing money away but get security back? I’m stuck what would everyone here do if they were in my shoes?
The cars were in the garage. The door was busted in and they looted.

_____________________________________________

First off, I call bullshit. Your income varies 50k? You’re 31 and make that kind of money and have saved 200k already and own a home?

Of course I could be wrong, wouldn’t be the first time or the last I’m sure… and this could be legit. If so, then your name is fitting.
Blow some dust off a little bit of that 200k and invest in proper security features for your home and garage. Arm it.
Will it stop all burgleries? no but thieves look for the easy break ins. They don’t want to deal with alarms, reinforced doors and security bars. Get a rott or pitbull and let him sleep in the garage. They look for tightwads who can’t be bothered to protect themselves.
Oh…and no matter where you live…there are thieves.

#37 City Slicker on 07.11.11 at 10:32 pm

I wonder what the statistic is on failed marriages due to financial stress nowadays. And what percentage are young couples in their twenties.

#38 Bruce on 07.11.11 at 10:32 pm

“Mark Carney you are a fool.”

Indeed he is, and if ANYONE believed that rosy “forecast” from the BANK OF CANADA(headed by an ex-Goldman Sachs boy)then it’s further confirmation that we are more stupid than I initially thought. I watched CTV news tonight, with a smiling Lloyd Robertson and Genevieve Beauchemin interviewing all these financial “experts” who all were all pretty much in agreement that Happy Days are Here Again… I damn near spit out my drink while desperately trying not to howl with laughter. Do they really, HONESTLY think we are that stupid? It’s to the point where they’re almost getting desperate to bolster public confidence–even if it means telling a bold face lie on national television by using the corporate owned media to spew their fibs. I guess it’s true what they say: you write what you’re told. In any case, I’ll be watching the next few weeks and months with great interest, and so should you, Mr. Carney—you know damn well how this game is going to end. Don’t play us for fools.

#39 Hoof - Hearted on 07.11.11 at 10:36 pm

I dunno

CrowdedElevator Fartz (CEF)and Abiotic Oil?

The world is thy abiotic Oystee CEF

Crowded Elevators could be major Fossil Fuel supply..ask Goldman Sachs…

#40 Burnt Norton on 07.11.11 at 10:36 pm

After all, you don’t need to buy a house to live in one. You don’t need real estate to have a home. You just need each other. And lots of money.

Most people don’t get this. Likely never will. They junk up young lives with stuff and obligation, believing this will bind them. But debt isn’t wealth. And freedom lost is often gone forever. Most relationships fail amid a bounty of possessions.

That’s irony.

——————————–

Hi Garth, this is one of the most important points I have ever read here. Thank you. I’m saving this article along with many of your previous ones for my son’s primer on financial mgmt / life skills 101 in a few years.

#41 nonplused on 07.11.11 at 10:39 pm

When the world was first formed (3.4 billion years ago is one estimate, contradicts the other 6,000 year estimate, but I’m going with the former), it had a fair blessing of all kinds of radioactive elements like uranium, plutonium, caesium the bad isotope, etc. Uranium has a very long half life so it doesn’t in nature produce a lot of the dangerous elements like plutonium per year, and they are mostly buried in rock, so they don’t move much. And they decay much faster than they are made.

By the time life evolved (or God created the world, which my 5 year old highly contests because “Don’t be ridiculous dad, God didn’t create the world because God is a man” as he put it, Jesus story has him a tad confused), the nasties like plutonium were highly depleted through natural decay. There wasn’t hardly any around. DNA strands were somewhat safe.

But now we have found a way to take uranium and make large quantities of the nasty daughters. They will decay quickly too, on a geological time frame. But some of this shit has a 200,000 year half life. That is about 199,950 years longer than we have made any plans to contain it.

And we have made a lot of it. Every spent fuel rod, every warhead, every reactor core. All of it will leak into the environment eventually if we don’t come up with a plan. And a damn good plan too.

#42 Tigger on 07.11.11 at 10:45 pm

#5 Imstupid:

Sorry to hear about your rough luck…Your solution though is not rocket science. Sell your windfall house and rent where ever you want for a year or two…a nice little stint in a new ‘hood to help clear your head. Not to mention if you play your cards right, you will be a millionaire (in cash/liquids) before you’re 35. Not bad.

Cheers

#43 Republic_of_Western_Canada on 07.11.11 at 10:48 pm

#28 squidly77

‘Can’ and ‘will’ are as different as ‘can’ and ‘does’, and the difference is huge. Politico-cultural behaviour can and has screwed things up quite often throughout history. No reason to believe that’s going to change anytime soon.

Gated communities are one of the greatest inventions of mankind.

#44 Omni on 07.11.11 at 10:57 pm

#39 Bruce: Unfortunately Carney knows that the majority are fools, so in some odd way, when you look at all the chips … you have the possibility, the real possibility to capitalize on your knowledge.
I looked at the chips and all of a sudden… I got it… these Carney people maybe bulls–ters but when you, someone smart as you, put the anger aside and you figure it out, and you are at that point …its an all win, all win: for you.

#45 Dave in Victoria on 07.11.11 at 10:58 pm

It’s shocking that they have the student loan debt still, given their savings.

Whack the debt dudes.

#46 Jean on 07.11.11 at 11:04 pm

@#13 Steve P:

You are so right!

#47 kimi on 07.11.11 at 11:04 pm

41 … Burt Norton…. `we get caught up in mortgages, time payments and perposerous gagitery and before we know it the tomb of youth is sealed. So what shall it be, bankruptcy of purse or .. bankruptcy of Life.

I wanted to end that with a question mark but I got the damn french keys working … anyways above statement I read when I was 15. Memorized it and hey.. life my life by it. I rent and rent is paid for by investments, and earned money… is all my own. You cannot put a price on freedom.

#48 nonplused on 07.11.11 at 11:04 pm

The coming nuclear contamination will eliminate our species and any that have long gestation or rearing periods. 50 years from now, maybe 100, the problem will be that people live on average 20 years before the cancer gets them. That means half are already dead. But a female still has to be 12 before she can have a baby, and many of those will be deformed and we will be living like primitives so many mothers will die in childbirth. Mothers that have their first child at 12 will on average raise them to the grand age of 8, and then they are on their own.

Short lived creatures like many insect will fair better but they will be prone to large numbers of mutations and high numbers of defects. They ultimately will not survive either. Not even plants.

This ultimately explains why SETI hasn’t found any radio signals. Uranium is found throughout the galaxy, and any species that is smart enough to unlock its’ secrets also exploited them, but economics dictated they would die before they mastered them.

The universe may be filled with life. But its short life span bugs. Intelligence plus uranium means no long lived creatures.

#49 nonplused on 07.11.11 at 11:07 pm

We have already wiped out all life on earth. It’s just a matter of when the containments fail.

#50 Gretzky4Life on 07.11.11 at 11:11 pm

The Agenda had “The Case Against Home Ownership” tonight. Robert Shiller was on saying all kinds of “Turnerisms”. Why weren’t you there Garth? I wanted to see you yelling about how you’ve been trying to beat this into Canadians’ head for years.

#51 The InvestorsFriend (Shawn Allen) on 07.11.11 at 11:15 pm

BUT (YOUR) DEBT ISNT (YOUR) WEALTH

Garth and number 2 cranky say:

“But debt isn’t wealth”.

Of course not. Wealth is assets minus debt.

But as I have said before “one man’s debt is another man’s savings”.

Nutbar fractional-reserve-banking-alarmists always dispute this thinking that the bank lends out thin air.

The banks as a whole do create money but that is only because the economists of the world only count the deposit as money and don’t subtract the loans. So the bank can lend you thin air but only because you will immediately deposit that loan back into the bank (or spend it and the vendor deposits it). When a bank lends thin air its weath does not change when the loan is created. Nor does that of the borrower.

I myself in fact will lend you $1 million at just 3% as long as you promise to let me keep the $1 million on deposit with me and I will pay you 0%. You will be able to show an asset on your own personal balance sheet of the $1 million I have lent you, albeit offset by a liability to me of $1 million. You just need to send me my interest of $30,000 per year. Now you understand banking a bit better!

Anyhow, trust me when you take a loan it is matched by a deposit at the bank. If YOU owe money, it in effect is the deposit or the wealth of some depositor or other.

Not all of us are in debt. In fact many of us over 50 set have financial assets including bank deposits. Our houses are often paid off and many of us have no debt.

Yes Virginia there is a bank deposit on the other end of your mortgage.

Okay, bring on the fractional reserve wacko comments and links and general bank bashing…

GEYSERS say… YOUR DEBT IS OUR WEALTH (Thank You, but could please start to pay us a decent interest rate?)

#52 JohnnyBravo on 07.11.11 at 11:34 pm

#16 Harvard Grad on 07.11.11 at 9:49 pm

I agree with the spirit of your comment, but not with the letter of it.

I certainly agree that: 1) if ownership is what you prefer and 2) you can truly afford it, then why put your life on hold? Buying a home is much more than just a financial decision for many people. Understanding the risks is important, but predicting the future is something else entirely.

Either you are not very responsible with your money by most people’s standards, or you have lots of it to spend. No everyone is in the same boat. Most home buyers take on a huge amount of debt. Not that I agree with that, but it’s a fact. Therefore, yes, most average people are going to be very careful about making the “biggest purchase of their lives”, especially when the risks are high, as they are now. I know of quite a few people who bought at the peak of the last boom and were forced to sell in a down market for personal financial reasons. These people lost a great deal of money.

I find it reassuring if Garth once touted real estate and now he is warning against it for the average wannabe home owner. It shows he does not need to “talk his book” so to speak, but rather offers genuine, sincere guidance based on market conditions and economic factors. The “advisors” who worry me are the ones who tell you it’s ALWAYS a good time to buy (gold, stocks, houses, whatever). Based on what I know, I believe Garth truly has the interests of Canadians at heart. The next time you put some cash into your TFSA, say a little thank you to him.

#53 debtified on 07.11.11 at 11:36 pm

#5 Imstupid on 07.11.11 at 9:19 pm

I posted this late today, hopefully I can get some different views since I’m emotional right now.

I’m stuck what would everyone here do if they were in my shoes?


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

‘stupid’, if I were in your shoes, I wouldn’t ask the same stupid question once again. All you’re going to get are equally stupid answers (like this one). Thank you.

As for Timmy who, after having been reading this blog, still asks if buying a house at this market and economic conditions is a good idea; knowing full well that he and his girlfriend would have to spend almost everything they earn in doing so….

Nevermind… It’s hopeless. We are all so screwed.

Garth, I am sure you get countless emails similar to this. How you manage to keep it together is beyond me. You must be numb, a masochist or bordering on martyrdom.

I’m taking a week off from this blog. Life’s too precious.

My V-Max and I will be heading west to the coast – through the spectacular Canadian Rockies and the beautiful BC interior. How can such a beautiful country be filled with such utter stupidity? Serenity now!

I might see some of you at the Sturgis North. Don’t drink and ride!

#54 Killer Chicken or Imploding Boomer? on 07.11.11 at 11:55 pm

34 Tbl – I’ll have to disagree. Greece (both the govt and
the citizens) lived beyond their means. Taxes? Just dont
pay them. Retirement. Pick a number – how bout 54?
Stuff like that just cant last.

#55 cassandra on 07.11.11 at 11:58 pm

nonplused wrote:
But now we have found a way to take uranium and make large quantities of the nasty daughters. They will decay quickly too, on a geological time frame. But some of this shit has a 200,000 year half life. That is about 199,950 years longer than we have made any plans to contain it.

Hi nonplused:

But we have made a “plan” to get rid of it all. Have a look here:

http://www.youtube.com/watch?v=qoyKe-HxmFk

The full movie is as sobering as the trailer. I don’t think people have really internalized this…we are in a lot more trouble than we realize.

Cassandra

#56 AACI Home-Dog on 07.12.11 at 12:15 am

#2: Cyclist
“But debt isn’t wealth”. Truer words have never been spoken. I said the same thing to my stockbroker, and he stared at me like I was an alien.

time to change brokers, dude…how has he been treating you lately ? You sound smarter than him…why pay that bozo commissions ?

#57 Devore on 07.12.11 at 12:15 am

#5 Imstupid

What should I do I dont like the area anymore. Do I stay put and feel insecure. Do I move to more expensive home and blow my savings knowing I’m throwing money away but get security back?

What you have experienced is what we call “real life”. The solution is not to run away and hide, but to confront it and learn to deal with it. Hopefully, this is not the first time you have experienced this, this is the same feeling and situation you had when:

Your car, that has always been reliable and you trusted, one day does not start. Even though you got it fixed, you will never trust that car again. There will always be a doubt when you turn the ignition. The solution was not to forsake cars, or to buy a really expensive one with a super-extended warranty. It was to accept that sometimes things break and you should have a contingency plan.

And of course everyone has been betrayed in one way or another by someone they trusted. Ever since then, every person they meet has an agenda and ulterior motives. They will never be able to so naively surrender themselves and completely trust again. The solution was not to forsake human relationships and intimacy, but to realize people, including us, are imperfect, and sometimes we’ll get hurt, and to learn to deal with it.

The solution to your problem is not to move into a gated community fortress with a 24×7 guard posted by your door. It is to accept that petty crime happens everywhere, is mostly random, and you can deal with it and minimize the potential damage (such as by not leaving valuables in your car to be stolen).

Hey, it’s just been that kind of day today.

#58 AACI Home-Dog on 07.12.11 at 12:16 am

#2: Crank Cyclist
(unless of course…you are an alien !)

#59 AACI Home-Dog on 07.12.11 at 12:22 am

#5 Imstupid

The market in DT “Tronna” is hot now, no ?
sell & rent, somewhere different, to try the new area out….I imagine it can be no fun living where you are unhappy.

#60 Raincouver on 07.12.11 at 12:28 am

$froma$ia-(Money does come from trees!)
are the tress you speak of sold by the pound?

#61 Slow Learner on 07.12.11 at 12:30 am

Isn’t finally reaching the limit of personal debt what really killed the US housing market? Subprimes were just the poster child. Credit default swaps and the like were a bonus that almost brought the world economy down at the same time.

The increase in personal debt, now replaced by Federal debt, kept the US economy growing, as it is still doing in Canada. We create money from thin air from HELOCs and credit card debt, and the government facilitates it as long as possible as it is stimulus without government needing to borrow. Canada has now managed to stretch the process even further than the US, good for us.

Something will eventually burst the credit bubble, the only way to identify what will be in hindsight.

#62 Devore on 07.12.11 at 12:40 am

#12 Bottoms_Up

That’s a pretty good analysis. When the cost of buying is so out of whack with the cost of renting, it’s really not a difficult exercise.

There is an analogous situation with people who have bought their houses a long time ago, and haven’t been tempted by the HELOC fruit. If you are in a position to capture, say, $1M by selling your house today, why wouldn’t you?

I know if you listen to the media today people are throwing around billions and even trillions like it was packet change, but a million bucks is still a lot of money. Think of what you could do with that. You could live anywhere in the world for a couple of years, see how you like it, or even just somewhere else in your city. You could pay for your kids education. Start a business. Retire. REALLY indulge in your hobby. Buy a boat, travel the world.

You’re sitting on a gold mine. You can do nothing, continue sitting on it, even as it evaporates slowly (although gold doesn’t oxidize, but it’s an analogy, bear with me). Which is what most people are choosing to do. When do they are forced to spring into action, there’ll be nothing but a sprinkle of dust left, and the place will be crawling with prospectors.

#63 Utopia on 07.12.11 at 12:52 am

#159 GtaGuy wrote……

“For my morning laugh I listened to Lloyd Robertson on CTV”
————————————————————————

Not wanting to repeat myself too much GtaGuy but give my idea a moments time for reflection……

….then throw your TV in the bloody dumster and never watch one of those pollution devices again nor allow one back into your life as long as you are still able to control the media sources that are attacking your mind.

It is all crap.

I cannot however comment directly on Lloyd Robertson because I don’t know his work but all media pumps a message that is an agenda (and it is not ever your’s).

So trash TV and cable news. Now, start thinking for yourself.

#64 Devore on 07.12.11 at 12:56 am

#16 Harvard Grad

You bought a house when houses were cheap. Now you consider yourself a wizened real estate investor. Am I ever unimpressed.

You are very much mistaken when you say there is never a wrong time to buy a house. There most certainly is. And just like anyone, renters or owners, are perfectly capable of either saving their money, or blowing it all, both renters and owners can put their life on hold, or live it perfectly fully. There have been far too many stories of people postponing starting a family, getting married, moving for a far better job, because they are trapped in a house they “own” that is suddenly woefully inadequate for their needs.

Living your life is an attitude that is not somehow unique to owners (neither is financial stability or personal wealth and net worth for example); it is quite irrelevant to how one pays for their housing. If there is one thing you will learn in life it is that acquiring the trappings of success is not the same as actual success. Cart before horse please.

#65 westcanguy on 07.12.11 at 12:56 am

Squiddly77 spewed…

The U.S. can handle all credit, social commitments and their countries banking needs internally.

No they can not. If it wasn’t for the chinese buying their bonds, they would have to artificially print money and their dollar would be in the toilet. Various States are closing schools and laying off teachers along with police officers because of money restrictions. How is that keeping social commitments?

The U.S. can supply all it’s food and energy needs internally.

Sure, if you like living on GM corn. The eastern seaboard gets a lot of their energy from Canada. The southwest is quickly running out of water. They are dependent on foreign oil.

The U.S. needs no one. The U.S. has the most powerful and destructive military on the face of the planet, no country threatens the U.S.

Really? for being the most powerful and destructive military power, they didn’t fare too well in Vietnam and they will have the same outcome in Afghanistan.
For a country that you say is threatened by no one, they closed air traffic real fast on 9/11 and ever since, they force their people to rude, embarrassing body searches to seniors and children at airports.
How much do you think the terrorists spent to bring Americans to the paranoia they live with now?…and how much do you think the Americans have spent on 2 wars and added security at airports, train terminals and federal buildings?

So tell me again, who has the problem.

Yes, tell us who has the problem….

Sorry to be so far off topic.

#66 skip on 07.12.11 at 1:03 am

Garth, can you turn form housing to world finances and how we can protect ourselves from the Capitalist world crash in the next few years?

We have Greece in the shits, Portugal hanging out with them, Italy on the next Euro chopping block, the Middle East in disarray, the USA gone down faster then…, China in a massive debt crisis that no one wants to talk about, Japan that is trying to wake up from a financial migraine, Britain that is in such bad shape that they Royaled out the Will and Kate show, France were they got rid of the current Governments opponent in an American sex scandal, the list goes on and on, with it all ending in a Canadian public that is completely blind to reality.

We, they need help…..

#67 cornstar on 07.12.11 at 1:08 am

Garth there are
more hard hats in the garbage in Van , and more begger’s on the streets , more Klown’s doing the civil work . or any work ! (less Quality more Quantity )
home shepple ! (depot) sales go up now . and the real wholesale dudes are barely swimming ! self employment is down ! but part time jobs are up ? oh yeah !

#68 bcPaul on 07.12.11 at 1:23 am

#42 Just a litttttle of topic wouldn’t you say.
Just smells like more taxes.

#69 Utopia on 07.12.11 at 1:26 am

#25 kimi

Do you know how to can tomatoes Kimi?

#70 Thetruth on 07.12.11 at 1:51 am

Canada brings in 550,000 immigrants per year. This is a fact. Please don’t censor this number as has been the case many times.

Another article (read second last paragraph) supporting this fact.

http://www.torontosun.com/2011/07/11/suspected-war-criminals-assured-privacy

The vast majority go to Toronto and Vancouver…hence the pressure on housing.

#71 Wags on 07.12.11 at 2:06 am

That last paragraph almost sounded like it came from an Austin Powers movie. How Groovy is that baby!!!?!

#72 Jody on 07.12.11 at 3:05 am

“but in this world of deleveraging and (likely) deflation.”

No, no, no, no, no, no! Inflation, if we’re lucky. There will be a QE3, you can’t keep printing trillions of dollars and think nothing will happen, even if you are the worlds reserve currency.

http://www.huffingtonpost.com/alan-schram/is-hyper-inflation-coming_b_188973.html

http://blogs.forbes.com/michaelpollaro/2011/02/19/monetary-watch-february-2011-obamas-budget-the-gop-and-its-implications-on-us-inflation/

http://www.marketoracle.co.uk/Article26805.html

http://lewrockwell.com/schiff/schiff128.html

http://www.lewrockwell.com/orig12/williams-j1.1.1.html

http://www.lewrockwell.com/orig9/polleit2.html

http://lewrockwell.com/rozeff/rozeff359.html

#73 Jody on 07.12.11 at 3:07 am

Don’t buy Timmy. Maybe buy a Timmie’s but don’t buy a house.

#74 keny65 on 07.12.11 at 4:46 am

Ok the x factor that you don” t take in garth is that Canada never left the european monarchy”s side(controlled by the jesuits)therefore will never feel the wrath or vegeance that they have unleashed on the US.Ok maybe they will lean on us a bit to make sure we keep being loyal minions but it will never be as apocalyptic as the states who are being destroyed by design since the american revolution, and there plan is coming to the endgame,america is broke or they believe the illusion that has been put in front of their eye” s.Canada is being propped up by the monarchy as the ultimate refuge for the elite of the world…wich it will soon be.Will and kate are ushering in that movement.If we would have an iota of pride or decency we would revolt with the states once again against the tyranny of the vatican and the royal courts…because the thing with a revolution is that it always has to be “re”-done…

#75 SquareNinja on 07.12.11 at 5:26 am

Garth, your last paragraph was so poetic!

#76 Tim on 07.12.11 at 5:39 am

#37 – Your income can vary 50k per year in construction easily so its not that far fetched. Frankly any business has its good and bad years….

#77 Smoking Man on 07.12.11 at 6:09 am

#3 Mark Carney is a Fool on 07.11.11 at 9:16 pm

I’m Not a realtor. I day trade and a part time freelance code smith. ( coding mostly to learn and inhance my trading models, from other traders)

Just because I am bullish on real estate at this time it does not mean I am a realtor. That is far to much work for my fat @ss.

In fact A housing crash would be a huge benifit to me and my kids, I make a tone of money in the top 1% , my real estate holdings (down to one) is mabey 1 20th of my net worth.

I am not pumping I call it like I see it. I am a short to mid term investor, long term is to boaring, In the short to mid term Real estate will be hot.

#78 Danforth on 07.12.11 at 6:09 am

@ #42 nonplused

Thanks for your common-sense words about science fiction vs. science fact !!

We live in a world where we’re supposed to respect ridiculous views simply “because we’re supposed to”.

I laugh outright at people who hold the views which you mocked, just as I laugh at people who carry large amounts of Consumer Debt.

And when I’m questioned on my comments about those people, I get an earfull: “well, LOTS of people carry LOTS of consumer debt…its just how it is nowadays”.

I respond with – “Yes, and they’re all stupid!” And they are! – all as stupid as those who believe the world is 6000 years old , humans and dinosaurs co-existed, and the rest of the horses-ass tale that goes along with it !

Just because other people do something, and just because there may be a LOT of those people doing that, doesn’t make it right.

#79 T.O. Bubble Boy on 07.12.11 at 7:12 am

It’s all over for Vancouver – first they lose the Stanley Cup, and now they’re not even the most expensive city in Canada:

http://www.theglobeandmail.com/report-on-business/economy/economy-lab/daily-mix/toronto-trumps-vancouver-as-countrys-most-expensive-city/article2094353/

#80 GTA Girl on 07.12.11 at 7:21 am

Fella named Harvard Grad, is a Oxymoron

#81 Onemorething on 07.12.11 at 7:49 am

HEADLINE “Steel Town Boy and Girl rent prime townhome in MR and MRSauga”

Waiting for the time to pounce on real deals in the next 60 months, with a 10 min drive to the office, and a real life outside the commute and boring burbs are leading the way to show the rest of Ontarians how to release the emotional ties with RE.

#82 Truth seeker on 07.12.11 at 8:13 am

Danforth,

I am to assume your faith is that if you put a pile of elements out and let it be for billions and billions of years (once upon a time……), it will become everything we see including you…… Your faith is just incredible.

Science fact is just like those incredibly “educated” economists with degrees from Harvard, Yale, that did not have a clue about the meltdown in the economy (which
was likely 99.9% of the people in the field)

I do agree with the fact that just because everyone is spending money like crazy with huge mortgages, it is not a reason to do it yourself!

#83 Halifax_Ed on 07.12.11 at 8:30 am

Halifax might be getting the message:

http://www.thechronicleherald.ca/Business/1252951.html

Demand up for apartment construction: Slow growth, flat wages blamed for trend

SLOW ECONOMIC growth and flat wages are driving multiple housing starts in Halifax, says Matthew Gilmore, senior regional market analyst with Canada Mortgage and Housing Corp.

“Wages aren’t keeping up with inflation,” he said in an interview Monday. “It doesn’t lend itself to home ownership.”

#84 kimi on 07.12.11 at 8:38 am

#71 Utopia …. Sure can! Its easy, you just need tomatoes, Lemon juice, water, pinch of salt… about 7 large tomatoes fit in the bigger jars, that way you’ll know how many jars you’ll need. Plus you should cut an X in the top before you cook them so they are easier to peel. You can skip the salt, I like to add salt later on, when I am cooking.

#85 The InvestorsFriend (Shawn Allen) on 07.12.11 at 8:48 am

BigLebowski says U.S. two weeks away from default.

Someone forgot to inform the U.S. government bond market about this where the yield on the 10 year bond is 2.94%, down from 3.22% on July 1.

Maybe you are right Lebowski, but the Big leBond Market is voting with real money that your opinion (apparently unbacked by any fiancial bet) is WRONG!

But, hey often contrarians win so we shall see.

#86 Mr. Reality on 07.12.11 at 9:04 am

It amazes me how many people cannot separate “wants” from “needs”. The people that only deal with the “needs” in their lives always seem to be the folks with no debt issues.

The majority of people spend away and accumulate debt fullfilling all their “wants”. Then they hit rock bottom.

Realtors thrive of convincing people they “want” something they do not “need”…….

Mr. R.

#87 Daisy Mae on 07.12.11 at 9:11 am

Bruce on 07.11.11 at 10:32 pm

“Mark Carney you are a fool.”

Yes, he is. Another fool is Flaherty.

However, neither of them do a thing without Harper’s specific direction….

#88 Bottoms_Up on 07.12.11 at 9:19 am

#16 Harvard Grad on 07.11.11 at 9:49 pm
———————————————
Good post. Didn’t you know that (S)he who dies with the most money wins? ; )

#89 Daisy Mae on 07.12.11 at 9:19 am

Re Bruce: “Do they really, HONESTLY think we are that stupid?”

Perhaps ‘gullible’?

#90 ritenote on 07.12.11 at 9:25 am

“And freedom lost is often gone forever. Most relationships fail amid a bounty of possessions. That’s irony”

Real Estate? What Real Estate? I come here for the poetry…

#91 Daisy Mae on 07.12.11 at 9:27 am

nonplused on 07.11.11 at 10:39 pm ‘When the world was first formed (3.4 billion years ago is one estimate, contradicts the other 6,000 year estimate, but I’m going with the former)….”

More like 4.5 billion years ago….

#92 Bottoms_Up on 07.12.11 at 9:33 am

#52 The InvestorsFriend (Shawn Allen) on 07.11.11 at 11:15
———————————————
Thanks for posting.

#93 Bottoms_Up on 07.12.11 at 9:44 am

#63 Devore on 07.12.11 at 12:40 am
————————————–
Yep, I know a recently retired Boomer living in his paid-off $400,000 bung and will not sell because it is his home.

I mentioned Garth’s strategy to him (sell, invest the 400k at say 5%/yr, generating 20k/yr, or $1700/mo, and use this money to rent a place) but he would have none of it. These people are staring a lottery win in the face and not taking it. This money can be used to finance their living for the rest of their lives, but they would rather stay put because they are comfortable with the familiarity.

#94 BrianT on 07.12.11 at 9:49 am

#16Harv-Very ironic that a guy with the handle HARVARD GRAD is calling others wankers.

#95 BrianT on 07.12.11 at 9:52 am

#28Squid-Pretty amazing that in 2011 after all that has happened there are still people who think like you do.

#96 Junius on 07.12.11 at 9:53 am

#72 thetruth,

You keep pumping and pumping the “immigrants will save the market” mantra every week. You are wrong.

2 things. First of all, where do you get the number 550,000 per year? Proof please.

Secondly, read this:

http://www.theeconomicanalyst.com//content/superficial-appeal-population-growth-drives-canadian-house-price-argument-does-it-hold-water

#97 BrianT on 07.12.11 at 9:57 am

#42Non-Your concerns will likely not be shared by most living in 2061 or 2101. Do some research on world energy supply (look at realistic forecasts).

#98 Daisy Mae on 07.12.11 at 9:57 am

History of the Earth
From Wikipedia, the free encyclopedia

Geological time put in a diagram called a geological clock, showing the relative lengths of the eons of the Earth’s history
The history of the Earth describes the most important events and fundamental stages in the development of the planet Earth from its formation 4.54 billion years ago to the present day.[1] Nearly all branches of natural science have contributed to the understanding of the main events of the Earth’s past. The age of Earth is approximately one-third of the age of the universe.[2] Immense geological and biological changes have occurred during that time span.

#99 this is wonderland on 07.12.11 at 9:58 am

so why 60 months?

#100 Junius on 07.12.11 at 10:00 am

#66 Devore,

Good response. You beat me to it. Proving that graduating from Harvard or anywhere else doesn’t mean you know what you are talking about. Of course, one of the architects of the US bubble was the former President of Harvard Larry Summers so there it is.

What people seem to keep forgetting is that the housing market of the past decade is much different than the decades before it. The system was fundamentally changed to create an incentive to take on debt.

For a generation homeownership started with a 20% downpayment and was a place to live while you raised your family. 20 years later the house was mostly paid for and people had equity. However the game was changed to the benefit of the banks and consumers fell for it hook, line and sinker.

Now that the consumer is choking on debt including mortgages the game is up.

#101 poco on 07.12.11 at 10:03 am

82 GTA Girl

Fella named Harvard Grad, is a Oxymoron
—————————————————————

I noticed that too—–as in also

#102 Bottoms_Up on 07.12.11 at 10:06 am

#85 Truth seeker on 07.12.11 at 8:13 am
—————————————–
I’m sure you believe dinosaurs never existed? (and that the discovery of fossils is just a big conspiracy theory to promote science and archaeology?)

How does oil get produced? Diamonds? These things happen over the span of a few hundred years?

Do you believe something just because someone else told you to believe? Have you ever questioned WHY you believe? What FACTS stand behind your beliefs?

Once one begins to look at the facts (ie., that our DNA is 99% similar to mice DNA), the evolution of our planet and our species becomes very clear.

#103 BrianT on 07.12.11 at 10:16 am

#101Daisy-I am just a little skeptical that some naked ape has accurately figured out the age of the “universe”.

#104 Cookie Monster on 07.12.11 at 10:19 am

#13 steve p on 07.11.11 at 9:44 pm
Yes and to add to what you’re saying, the problem with central banks setting interest rates and allowing banks to lend more money or credit than they actually have in time deposits is what makes excessive low interest rate credit expansion possible. The interest rate should be a function of savings, such that when savings are high, the banks will lower interest rates to encourage borrowing, and when savings are low, the banks will raise interest rates to curb borrowing, all by market forces.

Increased savings and low interest rates means there’s enough money available for future consumption and business are wise to invest in expanding their production to meet future demand. Interest rates are low.

If savings are low then there will be little demand for future consumption and businesses would be unwise to expand their production. Interest rates are high.

This is how free markets are supposed to work, the central banks of the world have destroyed the natural market feedback loop. Hence we now have erratic markets and large debts due to malinvestments in things like housing and overcapacity of auto production and not enough investment in other manufacturing. Where ever credit financing drove demand we got over indebted and over invested while other areas suffered from lack of funds.

#105 Bailing in BC on 07.12.11 at 10:27 am

Sorry I’m eight and just can’t help myself.

Utopia and Kimi up a tree…..

#106 Junius on 07.12.11 at 10:44 am

It has been discussed in the past the role of the corporate media in twisting the public’s perception of events such as the financial crisis. However nothing has been quite so interesting and infuriating as watching the current scandal in the UK involving 2 of Rupert Murdoch’s publications.

Great article by George Monbiot of the Guardian:

“The corporate media is a gigantic astroturfing operation: a fake grassroots crusade serving elite interests. In this respect the media companies resemble the Tea Party movement, which claims to be a spontaneous rising of blue-collar Americans against the elite but was founded with the help of the billionaire Koch brothers and promoted by Murdoch’s Fox News.

Journalism’s primary purpose is to hold power to account. This purpose has been perfectly inverted. Columnists and bloggers are employed as the enforcers of corporate power, denouncing people who criticise its interests, stamping on new ideas, bullying the powerless.”

Full link is here:

http://www.guardian.co.uk/commentisfree/2011/jul/11/media-corrupt-hippocratic-oath-journalists

In Canada the CRTC has just completed their Vertical Integration hearings on the impact of the take-over of our broadcasting system by four main corporate players, Bell, Shaw, Rogers and Quebecor. These giants now control more than 80% of cable subscribers and 100% of satellite in addition to nearly 80% of the broadcasting channels. Now in the name of “free markets” they are looking how to justify this with no restraints.

When will we learn?

#107 poco on 07.12.11 at 10:51 am

#5 Imstupid
Just had both my cars broken into yesterday night. Went into locked garage and stole I’d credit cards and cash($200). I know I’m an idiot for leaving it their. My problem is as follows:
—————————————————————
–have to agree with Bottms_Up and westcanguy on this one –sounds a little like BS

but i’ll bite anyways—your biggest problem is not whether to move or stay but the fact that there might be two “Imstupids” in the future’
Have you any idea what a “good ” crook can do with $200 and some ID–it doesn’t take much for a thief to get photo ID of himself in your name—open up a bank account with your $200 and then the fun begins—you may not know for months that this has happenned—until the collection agencies come looking for you
How many credit card apps do you get in the mail each month?
suggest you look up some cases of “identity theft”–it’s scary —very scary

#108 Cookie Monster on 07.12.11 at 10:51 am

#52 The InvestorsFriend (Shawn Allen) on 07.11.11 at 11:15 pm
No one takes a line of credit and then time deposits it into the same bank as they borrowed it from.

Banks have capital ratios of 15:1 or 20:1. This ratio is the fraction of time deposits versus outstanding loans. Notice the term ‘time deposit’, is not just any deposit, only interest bearing time deposits count as bank property for the duration of the deposit, a transfer of control or ownership, a true loan of capital to the bank.

Demand deposits and chequeing account balances DO NOT COUNT as time deposits because there is no contracted transfer of ownership. They can be removed without notice or warning, they are very liquid. Hard to lend a mortgage when the deposit can be pulled in a hart beat.

#109 AG Sage on 07.12.11 at 10:52 am

>#2 Cranky Cyclist on 07.11.11 at 9:16 pm
“But debt isn’t wealth”.

It is if you die owing it.

#110 Bruce Chase on 07.12.11 at 11:01 am

I live in small town outside the Nation’s Capital. Early this spring, a house on my street went up for sale, and being nosey I wanted to know what they were asking. They had a web site specifically made for this house….so I went and found that the asking was $349K……well it sat there for a number of months until recently when I noticed a SOLD sticker. I revisited the web site and saw that they had cut the price to $289K. Don’t know what the final selling price was but the new asking was 17% below their initial asking price. NICE HOUSE though. check it out
http://www.youtube.com/watch?v=9-db0h__PwE&fmt=18

cheers from Small town Ontario.

#111 betamax on 07.12.11 at 11:16 am

#16 Harvard Grad: “blah blah blah irrational nonsense”

Proof that even an expensive education can be wasted on some.

Given your nickname, here’s something else you obviously never learned:

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

No charge.

#112 Danforth on 07.12.11 at 11:19 am

@#105 Bottoms_Up
Thanks for your sensible contribution.

@#101 Daisy Mae
3.4B, 4.5B years. What’s 1.1B years, pocket change :) …

At least its the right debate when _interpriting history_.
Entertaining the 6000 year number as part of the discussion. Its analogous to a Reproductive Scientist going into debate with one who espouses the “stork theory”.

Which takes us to:
#85 Truth seeker

Economists and Scientists are not to be compared as you’re trying to.

Scientists look at empirical evidence. They typically don’t have motives at certain outcomes (okay – lets not get into funding and global-warming-gate, that’s atypical).

Economists are essentially trying to interprit economic factors and trying to derive meaning. There is very little in the way of _empirical evidence_ when it comes to the practise of Economics.

Economists are not much different than Political Pundits, though with different subject matter. And we can see that political punditry is not much beyond POV-pushing…

#113 Crow on 07.12.11 at 11:23 am

Condo market is booming:
http://www.dcnonl.com/article/id45232

#114 JoshL on 07.12.11 at 11:31 am

#66 Devore,
I agree with your assessment of Harvard Grad. Like him I bought a house right before the boom. Did I know that a massive credit bubble was coming that would quickly balloon my equity? No, that was just dumb ass luck. What I did do is compare the alternatives and it didn’t make sense to rent a box for $1000 a month when I could get a mortgage for $1000 a month AND have room mates. Yes there were additional costs of home ownership, but at the time you could still expect home prices to rise and then of course the roomies more than made up the difference. Fast forward to today … IF I was just starting out again I would say, why would I pay $2000 a month mortgage when I could rent for $1000 a month. Look at all the chart, house prices have become unhinged from reality due to money that comes cheap and easy from the banks (highest debt per capita and debt per income ever is all the info you need to back that statement up).

Just because something worked in the past is no gaurantee it will work again. Harvard Grad is falling victim to the “Casanova Fallacy” or the “Survivor Fallacy” (explained in the book the Black Swan). Basically he has taken many chances and they have all worked out. He reasons that taking blind chances is the secret of success. What he doesn’t know is there are dozens of other guys who have taken blind chances and ended up in the gutter. You only hear stories of Casanova or the survivors. Just like you only hear from your buddy after he’s won $1000 at the casino … he always fails to mention that he dropped $2000 the week before.

#115 Daisy Mae on 07.12.11 at 11:35 am

Bailing in BC on 07.12.11 at 10:27 am “Sorry I’m eight and just can’t help myself. Utopia and Kimi up a tree…..”

Well, I did bring up the subject of tomato canning with Utopia a couple of days ago, and it kinda went from there.

I feel a wee bit like Cupid….

#116 TO Girl on 07.12.11 at 11:47 am

Garth, did you happen to watch last night’s program on The Agenda? The panel included Robert Shiller and Phil Soper among others. The topic discussed was “The Case Against Home Ownership”.
How I wished you were there.

http://www.tvo.org/cfmx/tvoorg/theagenda/index.cfm?page_id=7&bpn=109241&ts=2011-07-11 20:00:00.0

#117 Dad on 07.12.11 at 11:50 am

Garth please do not approve any more religious debate BS in here what a joke. Atheists/Fundamentalists take your garbage where it belongs, the dump!

#118 MR BLOBBY on 07.12.11 at 12:13 pm

The banks as a whole do create money but that is only because the economists of the world only count the deposit as money and don’t subtract the loans. So the bank can lend you thin air but only because you will immediately deposit that loan back into the bank (or spend it and the vendor deposits it). When a bank lends thin air its weath does not change when the loan is created. Nor does that of the borrower.

I myself in fact will lend you $1 million at just 3% as long as you promise to let me keep the $1 million on deposit with me and I will pay you 0%. You will be able to show an asset on your own personal balance sheet of the $1 million I have lent you, albeit offset by a liability to me of $1 million. You just need to send me my interest of $30,000 per year. Now you understand banking a bit better!

Anyhow, trust me when you take a loan it is matched by a deposit at the bank. If YOU owe money, it in effect is the deposit or the wealth of some depositor or other.

Not all of us are in debt. In fact many of us over 50 set have financial assets including bank deposits. Our houses are often paid off and many of us have no debt.

Yes Virginia there is a bank deposit on the other end of your mortgage.

Okay, bring on the fractional reserve wacko comments and links and general bank bashing…

GEYSERS say… YOUR DEBT IS OUR WEALTH (Thank You, but could please start to pay us a decent interest rate?)

#119 squidly77 on 07.12.11 at 12:13 pm

#67 westcanguy

First off the U.S. is not going to default, no way.

But lets think outside the box shall we.

If the U.S. did go bankrupt, how would their creditors make out ? Would they send a battle ship to collect their money ?

The U.S. needs nothing from China, Europe or Africa.

#120 MR BLOBBY on 07.12.11 at 12:14 pm

I live in small town outside the Nation’s Capital. Early this spring, a house on my street went up for sale, and being nosey I wanted to know what they were asking. They had a web site specifically made for this house….so I went and found that the asking was $349K……well it sat there for a number of months until recently when I noticed a SOLD sticker. I revisited the web site and garth you are a poo face and saw that they had cut the price to $289K. Don’t know what the final selling price was but the new asking was 17% below their initial asking price. NICE HOUSE though.

#121 Hoof - Hearted on 07.12.11 at 12:15 pm

Ah yes…..Tenants and Landlord….

Walking down the street about 3 weeks ago…….and there was a garage sale.

Quite a few deals…but I didn’t see anything I “needed “.

The house was vacated….I saw a large dumpster….then a few days ago the landlord shows up.

We chatted…and he said they previous tenants owed $7000 in rent and were asked to get out.

I was invited in…and couldn’t believe what was left.
Tools, TV’ s ladders, wheelbarrows…collectibles….and the landlord says take it….he just wants to clear it out.

I think this is going to be a common phenomenon….

In a bad economy…..Renting will not be an affordable option either…..I think too many people knee-jerk believe renting is the solution.

BTW our coffee maker died…and went to Value Village to get one for $ 7

#122 The InvestorsFriend on 07.12.11 at 12:19 pm

Number 111 Cookie Monster says:

Banks have capital ratios of 15:1 or 20:1. This ratio is the fraction of time deposits versus outstanding loans.

Sigh, this is why they say a “litle knowledgge is a dangerous thing”

You have it wrong. Few people seem to understand how capital ratios and bank reseve ratios (two very different things work)

The Capital in the capital ratio requires that the bank have assets (mostly loans) not exceeding say 15 times the capital of the bank. The capital of the bank is the common equity and the money issued as debt. Capial is investor money. The loans are in fact usually about 92% funded by deposits.

The reserve requirement meanwhile is that they don’t lend out 100% of their capital plus ALL deposits. They keep on reserve about 5% of deposit liabilities as a cash asset in case people want their (non-time and notice) deposits back.

Here is my article on how banks work.

http://www.investorsfriend.com/September%2028%202008.htm

(Garth please forgive me posting a link to my own Site here, but a little education is needed. As you may have noticed I have contributed to the discussion for several months now without linking to my site because you told me to “buy an ad”. Problem is my site has the best material there is on some of these topics. I am just trying to educate people and contribute to the discussion)

And if you were modest, you’d be perfect. — Garth

#123 truthseeker on 07.12.11 at 12:24 pm

Danforth,

A lot of scientists analyze the empirical evidence and come up with the conclusion that billions of years cannot result in the evolution of matter into man.

Very similar to a few economists looked at the pre crash data and came up with the conclusion that it was a house of cards –ie: Peter Schill, etc. Just because less “scientists” believe this doesn’t mean they are wrong does it.

Actually if you were to look into the evidence of Jesus and the resurection, you might start to question yourself too. Lee Strobel, an investigative journalist took 2 years of his life to research and de bunk the “Jesus” myth and now he is one of the best at presenting the evidence.

#124 Sumadartson jr. on 07.12.11 at 12:28 pm

Garth, time to write three new books.

…Toronto is now most expensive city in Canada.

…State of California considering splitting in two.

…Western Canada has all the food, water, other natural resources and only 12.5 million citizens.

#125 disciple on 07.12.11 at 12:37 pm

#27, #28 squidly77…your argument is clever; however, the serious flaw is that you do not make the correct distinction between the people of those countries, and their governments. These two entities are not one and the same. When one benefits, the other doesn’t necessarily, and vice versa.

Do you seriously believe that the 343 traitors in Washington represent the 300+million people? Here it is even worse, we still have a monarchy and an overtly unabashedly medieval UN-elected Senate. I welcome you back to the real world.

#126 BrianT on 07.12.11 at 12:46 pm

#105Bottom-IMHO you don’t have a clue how our species evolved-you are just defending what some authority figure told you in school. A hundred yrs ago you would have been vigourously defending the 7 day story.

#127 The InvestorsFriend on 07.12.11 at 12:48 pm

Cookie Monster at 107:

I partially agree with you when you say:

central banks setting interest rates and allowing banks to lend more money or credit than they actually have in time deposits is what makes excessive low interest rate credit expansion possible.

You are right the central banks sets the interest rates too low.

You are wrong that banks lend out more than the deposits. Check any bank balance sheet you will see deposits are about equal to loans.

But yes the federal bank has set interest rates too low.

On the one hand no one forces us to accept 0.25% on our short term deposits. But the reality is that is all we can get. The reason is the Central bank stands ready to lend to the bank at say 0.25%. The banks don’t typically actually borrow ANYTHING from the central bank, instead they have deposits at the central banks. The central bank also encourages the banks to lend and borrow to each other at this artifically low 0.25% (or so) rate.

But the banks say OK, none of us are going to pay more than about 0.25% on deposits since we can if we want borrow all we need from the central bank at 0.25%.

So the central bank in effect provides an articfical competition to you as a depositor.

I agree Cookie Monster , interest rates should be set based on supply and demand and the central bank should not offer to lend to banks at all except in an emergency and should not try to influence the rate at which banks borrow and lend to each other.

Now the low short term rate also affects the long term rate. The banks refuse to pay you more than say 3% on 5 year GICs since at anything above 3% or so the bank figures it is better off just using short term money and taking the risk that interest rates don’t rise.

If interest do rise we will probaly see banks in touble as they actually do typically lend out short term money on 5 year mortgages. The saving grace for Canada is our banks typically seldom lock in a mortgage rate longer than about 5 years and when they do they charge a very high rate. In the U.S. banks always let customers lock the rate for 30 years because Federal laws say they must do so (at least with many of their mortgages). Customers in the U.S. meanwhile are allowed to get out of that 30 year rate at a small penalty anytime they want. It was and is a recipe for disaster.

#128 The InvestorsFriend on 07.12.11 at 12:50 pm

Garth said to me at 125: And if you were modest, you’d be perfect. — Garth

Funny, I was going to mention that my only fault is that I am often too modest. I’ll try harder.

#129 BrianT on 07.12.11 at 12:51 pm

#119Truth-The seven day story is silly and it has become politically correct to point out that silliness. The Darwin story is almost as silly yet it is not yet politically correct to point out that emperor has no clothes.

#130 Sir Geoffrey on 07.12.11 at 12:56 pm

I was taught in University that standard of living is defined by the degree to which a peoples’ wants exceed their NEEDS. I wonder how long it will take for the up and coming generation of big house buying newbies to realize that taking care of your NEEDS first will allow you to have a rising standard of living over time as opposed to a forced reduced standard of living once the interest on the debts gets too painful.

#131 Bottoms_Up on 07.12.11 at 1:01 pm

#129 BrianT on 07.12.11 at 12:46 pm
—————————————-
Actually I do.

Our ancestors came from Africa. This has been proven by DNA sequence homology.

The current debate is which area of Africa did we originate from.

Our brains grew bigger over time because of our ability to harvest sources of protein.

This lead to the development of our neocortex.

Our brains continued to get bigger. Our gestation period had to shorten so that our big heads could get out the birth canal. That’s why babies are so dependent, they really should be in the womb longer.

Just because we have a neocortex, and the ability to reason, and to explore and try to understand our beginnings, doesn’t mean that such thing as a God exists.

Oh yea, by the way, every single molecule in your body was produced and existed billions of years ago inside a star (and likely many stars).

We are stardust, believe it or not.

#132 Thetruth on 07.12.11 at 1:03 pm

Junius,

You are a lawyer and have handled immigration law as per your posts the last few years.

Of course you know the 550,000 number to be fact.

If it were lowered, you’d loose quite a bit of income, so enough of the proof thing. It’s been provided many times before. Get into another field.

#133 Cookie Monster on 07.12.11 at 1:09 pm

#125 The InvestorsFriend on 07.12.11 at 12:19 pm
Come on now, I’m not that far off. So ok, add in shareholder equity as another form of real cash on the balance sheet, the capital ratio is total capital versus total loans. Either way, for a capital ratio of 20:1, if 5% of loans go bad, or enough loans return net losses such that the total losses total the amount of capital on the banks balance sheet the bank becomes insolvent. The losses wipe out their capital and their leverage ration becomes infinite. Leverage is leverage, the bank can win big and/or lose big.

#134 squidly77 on 07.12.11 at 1:10 pm

The raising of the U.S. debt ceiling is all theatre.

If there was even the remotest chance of a U.S. default 5 and 10 year U.S. bonds would be spiraling up daily.

I am not saying that the U.S. will never go bankrupt, I am saying that it’s not in the near future.

If the U.S. ever did default it would be equally devastating to there creditors, maybe even more so.

Anyhow my comments were meant to spur debate and as a reminder that coins have two sides.

#135 Hoof - Hearted on 07.12.11 at 1:15 pm

#128 disciple

I agree…..

Do some research.

The US elected REPS are useless puppetts.
2008 Crash revealed a lot re how US works

Follow the Money…..
Their allegiance is to a small Middle East Country (guess ?)

They take orders from Bank of England (guess who owns that !)

Mighty US Military? bwhahaha
No doubt it is powerful…..but what is its purpose?

It is a tool for the elites…war is the most profitable enterprise….for the elites.

They send their sons and daughter to fight boogeymen, and die fighting ghosts…..not realizing the TRUE enemy is from within.

#136 Bottoms_Up on 07.12.11 at 1:17 pm

#126 truthseeker on 07.12.11 at 12:24 pm
———————————————
Sure there might be some scientists who disbelieve in evolution, however there is actual empirical data showing that the biological molecules of life can be produced from elements.

There is also empirical evidence showing that important amino acids and other molecules can be created/present in asteroids (through extreme cold temperatures and impacts with other asteroids).

Asteroids also brought water to planet earth.

We are (extremely) lucky in that we live on a planet that has a sufficient magnetic field (from a solid iron core rotating beneath liquid iron) that protects us (keeps our atmosphere intact) from the solar winds/blasts from the sun.

Mars use to have a magnetic field, but the planet was too small and the core froze. Thus, Mars use to have water, and an atmosphere, but those have been stripped away by the solar winds.

#137 Truth seeker on 07.12.11 at 1:21 pm

Bottoms up,

In fact, I came to believe there is a creator at age 33 after I was believing what I was told in elementary, high school and 7 years university (the evolution myth, …typical teaching— billions of billions of years ago ).

the fossil thing is fine but I do have trouble with the interpretation thing. Carbon dating is unreliable after a few thousand years. once again, a lot of scientists will support that. The fossil record actually supports the great flood and it also supports the idea of life forms being created in one big explosion–consistent with the creation account.

I agree that most people end up just believing what they are taught in school and by the majority–hence why most people have faith in the billion year evolution story. A lot of incredible faith to believe that !

#138 garrulous squirrel on 07.12.11 at 1:47 pm

You have to give kudo’s to the level of intelligence found in the British media….especially when we are bombarded with BS from the media in Canada. Hers an intelligent article about inflation……real inflation…as in the rising costs of the actual things we use everyday and not the garbage pumped out by the BOC and regurgitated dutifully by the ‘media’ in Canada.

http://www.telegraph.co.uk/finance/personalfinance/consumertips/8633011/Inflation-for-pensioners-is-20pc-higher.html

You see…..it’s a fact that seniors and normal working families are not impressed when the BOC baffoons state that inflation ( as expressed in hedonic terms) has gone down. The majority of people can’t afford the electronics, new cars, fashionable clothing and jet aircraft paint that the BOC uses as a guide to adjusting ‘inflation.

Real people eat food, pay fee’s, rates and taxes, consume heat and electricity…they have to pay for transportation to work and back. They are increasingly having to borrow more money from second tier financial credit ( visa , second mortgages etc) to pay the monthly bills and are hence paying far higher interest rates than the stated ‘national GIC rate’ BS.

The media here sucks…..they show very little ability to see through the smoke blown up by the BOC gladhanders, schills, pimps, parasites and unionized underbosses who’s only purpose in life is to keep the shell game going as long as it take to get another pension perk in the bag.

The truth is the ‘real people’ are suffering from ‘real inflation that is far above the stated rate when you strip out the government ‘averaging’ BS and focus instead on the daily lives of Canadians. Shame on the Canadian media for being such mindless buffoons and lickspittles.

#139 LS on 07.12.11 at 1:58 pm

A very interesting article, from HSBC’s lead economist, Stephen King. You can read it in its entirety here:

http://tinyurl.com/6xlmcrh

I’ve snipped out some of the most interesting bits.

Unemployment picture shows that the US economy has lost its vigour

Economic outlook: The US is limping along. And, as time goes by, the limp is becoming ever more pronounced. The rot set in long before the financial crisis.

With only 18,000 jobs created in June, the US economic recovery has gone badly wrong.

Once upon a time, the US economy was the envy of the world. It is no longer. Despite massive stimulus of both the monetary and the fiscal kind, it is struggling to break free from its post-financial crisis torpor. The level of economic activity today is barely higher than it was at the start of 2008. The unemployment rate remains stubbornly above nine per cent. And jobs are hard to come by. In the good old days, the US economy could happily generate 250,000 to 500,000 jobs per month. That performance is now no more than a distant memory.

The US is limping along. And, as time goes by, the limp is becoming ever-more-pronounced. The rot set in long before the advent of the financial crisis.

So what’s gone wrong? The problems began with the late-1990s euphoria linked to the so-called ‘new economy’, when the US stock market soared into the stratosphere. The subsequent crash at first seemed to offer a major wake-up call. The downward spiral in the stock market was followed by a major economic slowdown. As it turned out, however, the recession that followed was remarkably mild. Even if the ‘new economy’ was more dream than reality, US policymakers demonstrated a knack of turning dreams into reality without too much collateral damage. Investors breathed a collective sigh of relief.

Yet, in the attempt to keep the economy’s head above water, policymakers helped create the conditions that led, years later, to the financial crisis. Interest rates were set at shockingly low levels. The Bush tax cuts gave a shot in the arm to US consumers. Like the Clinton administration before it, the Bush administration actively encouraged property ownership, supporting the growth of the sub-prime market. Inevitably, housing investment boomed. The productivity revolution associated with the technology bubble was quickly forgotten. Instead, the US became hooked on real estate.

When the real estate bubble burst, America’s policymakers tried to offer the same ‘fix’ again. Interest rates tumbled. The budget deficit expanded massively. The Federal Reserve even resorted to printing money via quantitative easing. Yet, despite all this effort, the economy has simply refused to bounce back.

Companies are awash with money but they prefer to save rather than invest (and, if they are investing, they’d rather do it in China or Brazil than in their own nation). Households are still up to their eyeballs in debt and, with house prices constantly falling, feeling more and more impoverished. And the US government finds itself saddled with one of the biggest budget deficits in the world (measured as a share of GDP) and a seemingly out-of-control increase in government debt.

It’s a new experience for US citizens. And it’s one that shows, above all, that the American economy has lost its mojo.

#140 DP on 07.12.11 at 2:07 pm

@ Imstupid

Rent. Ta dah!

#141 Daisy Mae on 07.12.11 at 2:10 pm

BrianT on 07.12.11 at 12:46 pm#105Bottom- “IMHO you don’t have a clue how our species evolved-you are just defending what some authority figure told you in school. A hundred yrs ago you would have been vigourously defending the 7 day story.”

You said it — the ‘7-day story’ told 100 years ago was accepted. But not today….in this day and age, we’re enlightened.

#142 disciple on 07.12.11 at 2:16 pm

#129 BrianT…right on…

I offer the both of them a solution, a middle ground, earth-shattering as it may seem, but there is considerable evidence that human civilization is many millions of years old, suffering global cataclysms along the way, resulting in the situation we have now. Take a look at Hudson’s Bay on a map, or anywhere in Northern Quebec (circle lake), Yucatan, etc…the reality is that our history is closely linked with the stars in the skies.

As above, so below. Uriel’s machine. Pyramid city on Mars. Cairo translates into “mars”. Arthur C. Clarke knew more than he told us but he tried…

#143 jwkimba on 07.12.11 at 2:30 pm

#72
“Canada brings in 550,000 immigrants per year. This is a fact. ”

Sorry, quoting an unreferenced article in the Sun does not make that a fact.

Fact is, we import about 250,000 immigrants per year and have been consistent for last ten years or so. See the statistics canada 2010 report (FIRST paragraph….)

http://www.cic.gc.ca/english/resources/publications/annual-report2010/section1.asp

#144 ballingsford on 07.12.11 at 2:32 pm

We are soooo done! I have a pair of nice neighbours who are buying a home. They ask me when I’m going to buy. I say when the bubble bursts. He says homes always go up, never down. I shut my mouth and wish them well in my thoughts!

#145 betamax on 07.12.11 at 2:35 pm

#126 truthseeker[irony alert]: “billions of years cannot result in the evolution of matter into man.”

You’re right. “Magic” is the more rational alternative.

Where’d all the ‘magical entity’ nuts come from today? Did someone link to this blog from the Flat Earth Society page?

Oh yah, gold is god’s money. You heard it here first.

#146 disciple on 07.12.11 at 3:05 pm

#149…betamax…Rational, you say, eh?
Okay, if you say so. Whatever makes you feel better.

Anyone who does not believe what you do is a nut? That, my friend, is the definition of religious bigotry. Congratulations.

#147 poco on 07.12.11 at 3:15 pm

#16 Harvard

I come to this site for insightful vision – but a overwhelming number seem so fixated on housings “supposed”death spiral that they sit and hum to themselves that the market will fall, the market will fall – while the market moves higher – and those who bought are lavishing in the many positive aspects of owning a home – look past the monetary aspect – a home is your own piece of the pie – your castle – your domain – a little piece within a world of chaos and confusion.
—————————————————————

here’s a little of that “insightful vision” you come to this site for—–why don’t you ask these owners if they are lavishing in any of those “positive aspects” you may be talking about
I don’t think these owners (like hundreds of others)can look past the monetary aspect of their recent purchase and think of their home as a castle—the majority of the chaos and confusion being the fact they’re underwater and can’t sell in a deflating market
and no, you are not alone in your thinking that the market is going higher–just read some of the posts on this blog—but unfortunately, you, and they, are all dead wrong

V878978–#211-2620 Jane —bought June 07–206k
listed Feb-2010–225k—then 204.9k–now at 194.5k

V882400–#306-3250 St Johns–bought Apr 08–267k
listed Jan 2011–274.9–now at 249.9k

V880238–204-2228 Welcher–bought Sept 2009–317.9k
listed for 281.4k –now at 269.9k

V885690–3703 1178 Heffley–bought Nov 2008–380k
listed 379.9k–now at 375.888k
please HG check this highrise–#3608–same sq. footage is listed at 30k below the a/m

V843953–#402- 2477 Kelly Av-bought-Sept 08-353.9k
listed for about 1yr–now at 319.8k
this particular building had 11 suites for sale a couple of months ago –now there are 3–all have been removed from mls and now are on Craigslist as rentals–all too far underwater to sell–check it out HG

V880153–#88-1055 Riverwood-bought June 08–427.5k listed Apr 11–429.9k–now at 409.9k–this is a TH

these are but a few of the many underwater owners in the tri-cities–so HG do a little homework on the state of the housing market to see what’s really going on

–holding real assets sure worked well in the 80’s –didn’t it???

#148 Tony on 07.12.11 at 3:16 pm

#16 Harvard Grad

There’s no surer way to declare personal bankruptcy than to buy a house in Canada today. Your advice is not very forward thinking.

#149 Live Under Your Means on 07.12.11 at 3:19 pm

After 3 weeks away, w/o the net, am trying to catch up. Local paper that my PIL’s read provides mostly local news with a smattering of internalional news. Hubby & I consider it a RAG. Two or 4 pages of OBITS. FIL scans them daily & laughs that they don’t have to go to a funeral that week. MIL distrusts FIL – sure he missed some OBIT. That’s her life now. Both complain, non stop, about their health – 81 & 79, yet they manage well. MIL loves to bitch about her hubby & put down others. She cried on my shoulder when we left, fearing we would not see each other again. I’ve had some major disputes w/her over many years. She’s a total control freak. I know she loves me, but she also knows I will not take shit from her. And hubby agrees.

#150 The InvestorsFriend on 07.12.11 at 3:19 pm

136 Cookie Monster. I am in violent agreement with your last post. You bet banks can be highly risky.

They are sort of like high beam walkers except they have excellent automatic systems to balance the risks. But if their balance ever gets to far off, look out below.

Regulators try to insure there are safty nets (like mandatory CMHC mortgage insurance) and that the beam is wide enough (enough capital, though they live in a world where 8% or something is thought to be ample…

#151 EB on 07.12.11 at 3:19 pm

There are plenty of excellent sites to debate hollow earth theories, perpetual motion machines, creationism, and the theory of Atlantis. Personally I come here for financial discussion.

“But the fact that some geniuses were laughed at does not imply that all who are laughed at are geniuses. They laughed at Columbus, they laughed at Fulton, they laughed at the Wright brothers. But they also laughed at Bozo the Clown.”
— Carl Sagan

#152 Junius on 07.12.11 at 3:36 pm

#146 disciple,

I didn’t realize that “Chariots of the Gods” had made its way to YouTube.

Beam me up!

#153 Junius on 07.12.11 at 3:40 pm

#135 thetruth,

I have never worked in immigration.

I see you still can’t support your comments with facts. Nor are you able to contradict the article I posted that points out that supply of housing keeps up with demands.

Are you going to drop this line of argument or just keep on insisting it despite having nothing concrete or cogent to back it up with?

BTW – large immigration continues into the US. No sign of the end of the housing market crash. Think about it.

#154 BrianT on 07.12.11 at 4:03 pm

#134Bott-That is just theories-glancing at it, you could just as easily conclude that the brain grew larger because more thinking was involved in killing sources of protein (like an antelope) than picking a banana. These are all just theories that keep tenured slacker profs talking to little kids.

#155 BrianT on 07.12.11 at 4:14 pm

#149Beta-Higher life forms appearing simply because a long period of time has elapsed is the epitome of “magical” thinking. The life force has nothing to do with magic, it is simply reality, contrary to the moronic ramblings of guys like Kurziwell.

#156 Mr. Reality on 07.12.11 at 4:30 pm

I love this blog today. Even the crazy bible thumpers have something to say!

You know you are in a bubble when all this pestilence gravitate towards a lowly down and dirty real estate blog!

Short away!

Mr. R.

#157 Gong Show Contestant on 07.12.11 at 4:38 pm

Looks like the US of A better get that debt ceiling raised …
http://news.yahoo.com/obama-lawmakers-fall-short-debt-deal-045247357.html

#158 Imstupid on 07.12.11 at 4:51 pm

As for identity theft I cancelled my cards and called, eqifax and the other reporting agency I don’t remember the name. The manager at the bank did it for me yesterday. She said I was prime caditide for I’d thieft. So now all credit applications will show to call my phone number for confirmation.

I went to see my attorny today and fiqured out a solution. I’m getting my F.A.C. I’m going to install new doors and place a camera with motion sensor in my garage with alarm to ring in my bedroom. No lights no worming for thief, if he can get in and out in less than 90 seconds he can keep what he steals. If he can’t I’ll be in the garage with the new gun I’m going to get once I get F.A.C and we can talk. As for my home I think I over reacted yesterday. Iv lived in the same neighborhood my entire life, I can’t imagine leaving. This was the first time I was robbed from inside garage. The other times it was from driveway or on street. I never had anything in my car so they only took spare change the other times. But they got me good this time. I wasted the entire day getting ID back and doing police reports. That’s what sucks.

My income varies 50k because I’m self employed so I base it over 5 years.

#159 randman on 07.12.11 at 4:53 pm

Our little housing bubbel may be the least of our worries……….

Bob Moriarty

“The EU, the Euro, Greece, Portugal and Ireland are going to blow sky high. When they do, it’s going to bring down the entire $600 trillion in derivatives. Governments around the world have been kicking the can down the road since the Global Credit Crisis began in 2007 but they forget, market forces are far more powerful than any government or collection of governments.

The Euro was a flawed concept from the gitgo. It assumes Greece and Germany or Sweden all have similar financial policies. They don’t and never well. One day very very soon the whole thing is going to come crashing down.

If you don’t want to pay heed to what is going on in Europe, dear reader, you can shift your focus to the US. The US is in worse shape than the Greeks or the EU with five wars going on at the same time and ever cent for every war being borrowed.

The US is waging war in Afghanistan, Iraq, Libya, Yemen and Pakistan. I don’t know very many Americans who could even locate them on a map. I don’t know any who could even suggest why we are fighting or what we stand to gain.

The system is crashing right under our eyes and most people can’t see it. Cash up, keep some extra food and water and prepare for the greatest financial debacle in history. The US either defaults or we face a revolution.

Sure, the bond and equity traders of the world know less than a guy who runs a gold-pumping web site. That makes sense. — Garth

#160 smoking man on 07.12.11 at 5:07 pm

This not drinking has messed me up. After my trail I’m going back. I sold my condo like an idiot. Cdn bonds are on fire just kissed away 50 k for not holding another six months. Damn

#161 Truth seeker on 07.12.11 at 5:07 pm

Betamax,

In reality, all it takes is the existence of an all powerful, all knowing entity and then anything is possible–then it isn’t magic. That is easier to believe then us evolving from random molecules that existed billions and billions and billions of years ago….. If you really think hard about how ridiculous that seems, your mind wold likely be more open to the possibility of a creator that actually has a plan for your life.

#162 Harvard Grad on 07.12.11 at 5:19 pm

GTA Girl – what gives – jealous or just interested ? … I think its the latter… keep me in your thoughts okay.

Betamax – really, you are a puppet on a string – and I am your puppet master, you react as I had forseen, sad actually. When you move out of mommy’s basement apartment – let me know how it feels when the sun hits your pasty white face ….. you can’t even come close to challenging me on an intellectual scale (I do need to ask – are you still in grade school? Your writing shows signs of repressive tendancies ? Just asking…

#163 Truth seeker on 07.12.11 at 5:20 pm

Bottoms up,

Science is great and a lot of what you say is likely true but guess who created science and set the laws in place. I am all for science but that can definitely exist along side an all knowing and all loving creator .

The evolution theory is basically a theory and there is very little or no proof. There is actually a logical way to go about and reasonable prove the existence of God if you approached it with an open mind.
Once again, Lee Strobel, an investigative journalist spent 2 years of his life trying to de bunk the Jesus thing and after examining the evidence, came to believe in an all loving God.

#164 Timing is Everything on 07.12.11 at 5:56 pm

#142 TheBigLebowski – said “I am fully diversified, I own both gold and silver.”

Do you have your own water and food supply? Are you, more or less, self-sufficient? Do you have first aid experience? You get the drift. How ‘diversified’ are you, really?

#165 Get Real on 07.12.11 at 6:00 pm

#135 The truth

Junius,

You are a lawyer and have handled immigration law as per your posts the last few years.

Of course you know the 550,000 number to be fact.

If it were lowered, you’d loose quite a bit of income, so enough of the proof thing. It’s been provided many times before. Get into another field.
————————————————————-

“Lose” not “loose (as in not tight)”
“Lose” not “loose (as in not tight)”
“Lose” not “loose (as in not tight)”

Ain’t that the The Truth

#166 Mr Buyer on 07.12.11 at 6:09 pm

#149 betamax … The vast periods of time are not fully appreciated by most. Couple that with the less than random nature of electrostatic interactions (if you shake up a bag of magnets repeatedly there will not be a random distribution to the resultant conformations of the magnets over repeated trials) and the selective influences of micro environments and it is not that difficult to visualize what may have gone on to bring us here. God gave us a brain, expects us to use it, and as a supreme being is not threatened by our imaginings in any way. Quite the contrary, God is likely entertained by us, after all eternity is a very long time. Humanity and its struggles are probably like a really good television series for the almighty (not unlike the remake of Battle star Galactica in the first two seasons anyways) I imagine this creation/evolution thing is a storm in a tea cup from the perspective of a supreme being. God had to do it somehow, why wouldn’t it be through evolution? More importantly, upon submitting one’s application to enter heaven I can imagine one of the interview questions might go something like this…I gave you a superior intellect along with the power of reason, why did you not set about the task of fully understanding your surroundings? Why did you deprive me of the joy of seeing your understanding evolve? God likely does not want us worshiping black boxes. Scientists must understand that science has to be made accessible to as much of the population as possible. Religious types have not ended their war upon science. There is a long history of the masses revolting against oppression and scientists getting lumped in with the financiers during periods of reckoning (due to the perception of scientists enabling the continued prevalence of the status quo). It is high time scientists and science assumed political power.

#167 Peakoilist on 07.12.11 at 6:21 pm

#120 ok dad…just scroll on by ..its a free country, with the last time I checked,..free speech

#168 Mr Buyer on 07.12.11 at 6:23 pm

#140 Truth seeker … I can not help thinking you found curiosity a burden (with its demand that you continually refine your investigative techniques) and gave up. Even if there is a supreme being, this being will likely want to know your thoughts on a number of matters, you should have a firm command of the current level of human reasoning even if its just to be polite. I am sure it is quite tiresome for said supreme being to hear in response to queries ‘God did it, the almighty black box.’

#169 Peakoilist on 07.12.11 at 6:32 pm

Nostradamus…where are YOU !!!!! I need my fix.
btw
In today’s Hamilton Spectator.
Housing starts in Hamilton-Burlington down 45% in 2011.
Article states the only strong activity is starts for Condo apartments in Burlington..go figure.

#170 M.M. on 07.12.11 at 7:01 pm

Garth,

Please write something about commercial real estate. I’ve seen the Z-103.5 building for sale for a year now in Etobicoke.

#171 Utopia on 07.12.11 at 7:02 pm

#66 Devore

“If there is one thing you will learn in life it is that acquiring the trappings of success is not the same as actual success”
——————————-

Well said Devore. That is a terrific line. I don’t know many real estate geniuses but I do know a lot of people who thinks “theirs” does not stink because they happened to buy at the right time and got the easy benefit of inflation compounded with market greed and low rates. Cripes, all houses went up in value, mine included, and no special skill or talent or effort was ever required.

The real genius is knowing when to bail out.

#172 Daisy Mae on 07.12.11 at 7:16 pm

Bottoms_Up: “Do you believe something just because someone else told you to believe? Have you ever questioned WHY you believe? What FACTS stand behind your beliefs?”

Been asking myself that since I was 10. My aunt, when asked pertinent questions had a stock answer: “You MUST believe!” Really…?

#173 Cabot Lodge brylcreem & trenchcoat on 07.12.11 at 7:17 pm

Look at Deutschland – 2nd largest manufacturing economy in the world, exports galore, most productive country in the world. Look at Canada – skinned to a GTA financial hub – snots galore who can sell a mortgage or a mutual but can’t actually make anything. We’re seriously screwed.

#174 Trailer Park Boys on 07.12.11 at 7:19 pm

Flintstones are proof that men and dinosaurs existed at the same time.

Yabadabadoo !!!

#175 Daisy Mae on 07.12.11 at 7:22 pm

Bottoms_Up on 07.12.11 at 1:17 pm#126 truthseeker on 07.12.11 at 12:24 pm
———————————————
Sure there might be some scientists who disbelieve in evolution…

If so, their early teachings are getting in the way of current documented facts.

#176 Renter_in_Mississauga on 07.12.11 at 7:39 pm

My next door neighbors listed their home for sale in early March, right before the 35 year mortgage was slashed. Less than a week after being listed, the house had sold for $20,000 over asking. At around the same time, the other houses that were put up for sale in my area quickly exchanged owners. Fast forward a few weeks, and now there is a house nearby, it came up for sale sometime in April. Just had a $50,0000 price reduction.

On the weekend, we took the kids to a farm. During the drive we noticed a lot of “for sale” signs, and quite a few had “just reduced” notices on them. Change is definitely in the air.

#177 Amarillo on 07.12.11 at 7:50 pm

Please google ’10 reasons evolution does not work’

#178 Daisy Mae on 07.12.11 at 8:22 pm

Imstupid on 07.12.11 at 4:51 pm “As for identity theft I cancelled my cards and called, eqifax and the other reporting agency I don’t remember the name. The manager at the bank did it for me yesterday…”

Stop calling yourself ‘stupid’. Life is hard enuf without putting YOURSELF down. There are plenty of people willing to do that for you.

#179 Daisy Mae on 07.12.11 at 8:28 pm

Hoof -Hearted: ” BTW our coffee maker died…and went to Value Village to get one for $7.”

Yep. Value Village is going to see a gigantic increase in sales…

#180 SafetyBear on 07.12.11 at 8:44 pm

I see a lot of comments on this blog with people waving their cash around. “We earn $150k” you say or higher. Here in Australia I just lost half a contract and can barely make ends meet but I’m battle ready and debt free. Are you rich kids just soft and ready for the plucking? And how would you cope if your earnings were forcibly halved? Start preparing now because even if it doesn’t happen at least you’ll have some savings to keep you warm.

#181 Hoof- Hearted on 07.12.11 at 9:21 pm

#175 Utopia and #66 Devore

I would submit the premise is as follows:

Since Rothschilds….almost every Gov’t have been beholden to a fractional reserve/private banking system.

Through history, Gov’ts, the usual twits they are, have addicted themselves aka their citizens to a system of debt that can never be repaid.

Every so often a WAR is created via “manufactured consent”….to focus the public’s attention , faux patriotism….and cleanse the population numbers.

However, every such ponzi scheme runs it course, the manipulation runs out…the lies hit the wall …the truth becomes splattered.

The vested interest have run out of dot.com bombs….and RE was the last mass pimpable quantity.

The entire venture has run its course….nothing sacred…old rules don’t apply,( if they ever did)…..its time (long overdue) to take back what was stolen…maybe something like an economic Nuremberg Trial ?

#182 disciple on 07.12.11 at 9:47 pm

Political power IS held by Satanists.

They are also referred to as Luciferians. The bringers of light. The illuminated ones. The 5% of humanity that are psychopaths. They are in contact with ethereal entities that give them their knowledge and power. They run the court systems, hierarchical command structures, the shipping lanes, shadow banking, and all world religions. They get up pretty early in the morning while you’re still sleeping, thinking of new ways to suppress scientific progress.

To really scare the pants off of yourself, just Google John Dee and macrobes, or better yet, Youtube it. Where do you think the 2 million missing children go every year in North America?

The truth is extreme, to moderate it, is to lie.

#183 confused and a little crazed on 07.12.11 at 9:57 pm

Hi guys,

thru this turmoil i bought some stocks. As my previous posts I sold stocks …4 if them and bought some more this week.

I know their is turmoil but some of the stocks i bought are 40 % below its peak whether it a company splitiing or bad news …competiton ie Samsung vs Apple . the #s are good and you buy for longer term and good dividend yield.

Rule 1 : never buy at top
rule 2 : a good business will stay in business

i may never buy property in the lowermainland
my rent is about $7500 / year 1 bd
invest returns about $5400/ yer
therefore result $2100/ rent a year: $175 a month
as opposed to
$300,000 1 bedroom= $1485 a month (includes insurance/ maintenance/ taxes) at these historic low rates

I save about : $1310/ month_ $15720/ year not including the longer distance to travel for work. The T/H I looking at is not in Van.

good luck all

#184 disciple on 07.12.11 at 10:29 pm

Of the many lies, half-truths, and half-baked theories we are taught in school, continental drift is one of the biggies. Here is some info for the brave souls who would want to explore the higher implications of the Fact that the earth is growing in size – didn’t someone mention “finite sphere” somewhere on this blog?

http://tinyurl.com/yba8ajj

#185 Derek on 07.12.11 at 11:33 pm

Wow, Garth. Lunatics galore today. It was a pleasure to see the occasional posting on investment or real estate. Reminded me that this was a financial/RE blog. Even the goldbugs were making sense by comparison. But then it is full moon for the next few days so I suppose that I shouldn’t be surprised.

#186 Derek on 07.12.11 at 11:37 pm

Oh, by the way, since another Derek has shown up over the last few weeks, I’m changing my moniker to Derek R so as to avoid confusion in future.

#187 tran, Calgary on 07.13.11 at 4:03 am

Alien is God. God is Alien.

#188 Sky on 07.13.11 at 6:26 am

Creationism VS Scientism :

So the scientist says to God – ‘ Science has discovered the secret of life. We can make a better man, a stronger man, a smarter man than the original model. ‘

God replies, ‘ Go ahead. You have my blessings. ‘

The scientist smiles and reaches down and grabs a handful of earth.

God looks down , frowns, and shakes his finger at the scientist. ‘ No, no. That’s cheating. You have to make your OWN dirt ! ‘

#189 Sky on 07.13.11 at 7:01 am

Fiat science and fiat religion are a deadly substitute for the real thing.

Our ‘ science ‘ is in the service of barbarism. They promise us miracle cures ( always right around the corner ) and instead deliver nukes, RFID , and scalar weaponry.

Science sets our table with GMO fodder . Yummy ! I’ll take a heaping helping of their Global warming sprinkled with Fukishima fallout. Doesn’t sound so appetizing? What the hell. Wash down the whole mess with a jugful of their fluoridated water.

None of this will end well. The real estate fiasco is a gentle wave, washing onto a sunny beach in comparison to the tsunami of evil that science has unleashed.

#190 Steven Rowlandson on 07.13.11 at 10:41 am

Canadians really should get ready for the european union and america going tits up financially and may be politically and pray that canada only gets a haircut rather than a decapitation. Politicians will not do the right thing for very long if at all so individuals must help themselves.