Glands

Mark went for a road trip last weekend.  “Drove through Boomer Heaven, Prince Edward County,” he said, referring to that verdant oasis two hours east of the Big Smoke, “and noticed about half the property, maybe more —  cottages, farms, vacant land — between Picton and Deseronto — had “for sale” signs. Something pretty bad is happening to people who thought they could afford a second property in the country.”

In Muskoka, historically the recreational playground of the urban wasted, prices for all properties in the first three months of this year (the latest numbers, for some strange reason) were down a substantial 28% from last year. For waterfront sales (average price now just $369,351), the haircut’s a withering 45%.

Across the nation, says shameful Re/Max in one of its famous ‘news’ releases, sales of luxury homes are up everywhere, except Vancouver – where they crashed by 31%. And in Victoria these days a stunning 151 houses priced between $1 million and $2 million are on the market in a small city where the average household earns just $76,650. Sales, as you might imagine, suck. Says one experienced realtor, “Anyone who wanted into this price range and waited six months, just saved $500,000.”

But the industry continues to pump out a different story. CREA made headlines earlier this week saying sales and prices across the country are just peachy – with the value of homes up 0.9% from last year, to an average of $375,810. The Toronto Real Estate Board’s mid-month stats show sales ahead 14% and prices up 6%, with the average SFH in 416 changing hands for $835,000. And that Re/Max report on ‘luxury’ home claims sales galloped higher in 13 of 16 Canadian markets.

“While the ranks of the rich expand in both population and wealth, their impact on the Canadian residential landscape is undeniable,” says the company hyperventilated. “Their confidence abounds from coast-to-coast, irrespective of price point.”

Unpublished are a few salient facts. Like ‘sales’ in Toronto count pre-sales of condo units, thousands of which may never be built if conditions change, with no actual property changing hands. In reality these are just futures contracts, not real estate transactions. Also of interest is the fact there are 4,500 houses for sale in Victoria (population 330,000), and 8,749 in the GTA (population 5,583,064). As you can see, at 10,000 sales a month, Toronto has a 3.5 week supply of homes. With about 550 sales monthly, Victoria’s supply is 8 months. And in VanCity, 16,500 listings. Good luck.

This is why numbers so mislead. If you’re in most of BC, central Canada cottage country, southwestern or eastern Ontario, or anywhere in New Brunswick or Nova Scotia outside of the HRM, real estate is a lonely mummy in want of Lady Croft. In Vancouver, for example, the malaise this malevolent blog has moaned about is now the stuff of the MSM. Check out this snippet from yesterday’s Globe:

“In a market once famous for being overheated, Mr. Arora (a real estate broker) said he hasn’t seen a bidding war in months. “It’s totally a buyers’ market. Buyers are determining the price,” he said. “And sellers are surprisingly accepting it. They are taking it.”

And recall that days ago I posted a video clip from CTV which aired last weekend telling homebuyers they must beware of new mortgage rules (from OSFI) which could actually cost them their properties, should financial conditions change. It’s exactly this kind of message, now repeated in daily media, which makes the danger of a credit and housing bubble real. The fools who fall for the siren song of Re/Max, CREA or a real estate board will soon find the music ending, and no chair.

Already there’s solid evidence of what happens when you leave the thinking up to your glands.

A new survey by BeeMo is chilling. It tells us 51% of Canadians expect to be still paying a mortgage by the time they retire. In BC (big surprise), the number shoots to 60%. Not only does this leave less money for personal lubricant and butt lifts, but it promises to kick the stuffing out of consumer spending, and hit the economy as a whole. That, in turn, makes real estate weaker.

By the way, for those who still believe Boomers will just take over reverse mortgages and stay in their homes until they collapse into dust bunnies, the bank survey calls you out. Ain’t gonna happen. Not with more than half shouldering mortgages which will be resetting at higher rates.

Of course, you know all this. You are the chosen ones. You’re all coming on my ark.

Unlike these people. They turned up last weekend to view plans for 600 unbuilt homes in a distant GTA pasture called Upper Unionville, where demand for $500,000 to $1 million houses is so great bidders have to pre-qualify online, then wait for a lottery to gain a sales appointment, to which they must bring a chequebook.

They can swim.

233 comments ↓

#1 J.I.M. on 05.16.12 at 8:39 pm

Sounds like the real estate market starting to fall!

#2 TurnerNation on 05.16.12 at 8:41 pm

2nd post I hope.

#3 Helpful Advise on 05.16.12 at 8:42 pm

FUUURST!

#4 Shane on 05.16.12 at 8:44 pm

HAM hard at work again….I hope the prices in Markham and Richmond hill drop 40% over the next 3-5 years..

#5 TurnerNation on 05.16.12 at 8:45 pm

From Toronto Strife magazine – people are no longer gorging on gorges.

http://www.torontolife.com/daily/informer/to-market-to-market/2012/05/16/cottage-market-lagging/

Ontarians aren’t buying cottages (even though prices have plateaued)

Even if summer weather calls for decompressing in front of a lake (that is, one that’s out of earshot from the Gardiner Expressway), Ontario’s cottage market is lagging. Royal LePage just issued a report on the recreational property market that says a whopping 59 per cent of Ontarians who planned to buy a cottage have postponed the decision because of global economic uncertainty. With the slower demand, and an abundance of supply coming from baby boomers who no longer want their vacation homes now that their children have grown up, prices have plateaued—although waterfront properties under $400,000 and over $1 million are still attracting buyers. But cottage lovers who don’t want to take the plunge into ownership can always rent—and may want to check out twohoursnorth.com, a new Toronto-based site that lists rental cottages by travel time so they’ll know exactly how long they’ll be stuck in traffic before arriving lakeside.

#6 Aussie Roy on 05.16.12 at 8:50 pm

Aussie Headlines

A $400 million prison in Ararat is in limbo months from completion, with the company building it placed into liquidation.

There are six sites – mostly large-scale residential towers across Victoria that are now shut down, with more than 300 subcontractors owed about $20 million.

St Hilliers Construction Pty Ltd had been negotiating a $150 million bail-out from the government, Ararat Prison equity investors and its bankers, but talks failed.

http://www.heraldsun.com.au/news/more-news/state-governments-400-million-prison-in-ararat-in-limbo-after-company-building-it-goes-bust/story-fn7x8me2-1226357302828

Did I mention we have a shortage?, a shortage of buyers.

#7 Randy on 05.16.12 at 8:51 pm

There will be lots of country properties and cottages for sale cheap because the Wind Farms are coming….Property values could drop by 40 per cent if they are in view….

#8 furst on 05.16.12 at 8:52 pm

Not…..FUURRRRSSTTT!!

#9 thinker on 05.16.12 at 8:53 pm

Muskoka down 40%, lakefront? Are you serious – can I please get some listings, I don’t believe this?

This is the latest market release from the local real estate board. — Garth

#10 LH on 05.16.12 at 8:57 pm

Upper Unionville!??

Yes, those in the suburbs/exurbs can sink or swim, but check out the supply/demand imbalance for SFH in C01. Most new listings get lifted within a week. Some like 39 Beverley, for much more than ask.

Ask: 900k
Sold for 1.23M

http://www.torontomls.net/PublicWeb/CL_CF.asp?link_no=43298412.175000&t=l&fm=F

This is the new reality in the central core.
Manhattan, London etc have gone this way before. Is this happening to Toronto now?

Interestingly enough even at these prices, $/sq ft is still generally lower for SFH than for condos. However, this mispricing is tightening fast. I predict the next compression will be between downtown proper (C01, C02) and the overpriced Yonge subway corridor. The subway at rush is getting awfully crowded these days, far better to walk downtown to work!

#11 Elmer on 05.16.12 at 8:59 pm

That guy looks like Mr. Weatherbee.

#12 DondWest on 05.16.12 at 9:03 pm

Well Garth, it needs to be said. . .

In your picture at the very bottom of the article, every single greater fool strikingly resembles a particular race, with the notable exception being a baby boomer Caucasian on the far left corner whose expression on his face resembles a kid who just entered Disneyland.

He was managing the event. — Garth

#13 Smoking Man on 05.16.12 at 9:05 pm

#5 TurnerNation on 05.16.12 at 8:45 pm

Cottage Country has been in a decline for awhile, Prices have been melting for years.

You wan free up some loot if things are not going well, it’s the cottage is first on the chopping block.

Been looking at a property up north, really nice almost bought it a few times, been bought and sold 3 times in the last six years, 300k cheaper than it was when I first set my eyes on it.

#14 ANONYMOUS on 05.16.12 at 9:07 pm

Muskoka prices down !??? Oh-my-God, I thought I’d never see the day when that would happen !

————-
EVERYBODY ! I’VE GOT A VERY IMPORTANT QUESTION TO ASK EVERYONE HERE ON THIS BLOG:

WHICH ONE OF THESE IS DIFFERENT FROM THE REST (which one has not popped yet) ?:

– Ireland; had a huge amount of ‘EASY-CREDIT’, which led to a huge percentage of the population working in Real-Estate related industries (as all their manufacturing jobs had gone away earlier) building a huge amount of housing for the ‘NEW RICH’, and they had about 70% of their population buying their own homes. They all thought they were ‘SO SMART’, and luxury cars filled the streets.

– Spain; had a huge amount of ‘EASY-CREDIT’, which led to a huge percentage of the population working in Real-Estate related industries (as all their manufacturing jobs had gone away earlier) building a huge amount of housing for the ‘NEW RICH’, and they had about 70% of their population buying their own homes. They all thought they were ‘SO SMART’, and luxury cars filled the streets.

– The UK; had a huge amount of ‘EASY-CREDIT’, which led to a huge percentage of the population working in Real-Estate related industries (as all their manufacturing jobs had gone away earlier) building a huge amount of housing for the ‘NEW RICH’, and they had about 70% of their population buying their own homes. They all thought they were ‘SO SMART’, and luxury cars filled the streets.

– Greece; had a huge amount of ‘EASY-CREDIT’, which led to a huge percentage of the population working in Real-Estate related industries (as all their manufacturing jobs had gone away earlier) building a huge amount of housing for the ‘NEW RICH’, and they had about 70% of their population buying their own homes. They all thought they were ‘SO SMART’, and luxury cars filled the streets.

– America; had a huge amount of ‘EASY-CREDIT’, which led to a huge percentage of the population working in Real-Estate related industries (as all their manufacturing jobs had gone away earlier) building a huge amount of housing for the ‘NEW RICH’, and they had about 70% of their population buying their own homes. They all thought they were ‘SO SMART’, and luxury cars filled the streets.

– CANADA; Still has a huge amount of ‘EASY-CREDIT’, which led to a huge percentage of the population working in Real-Estate related industries (as all their manufacturing jobs had gone away earlier) building a huge amount of housing for the ‘NEW RICH’, and they had about 70% of their population buying their own homes. They all STILL THINK that they are ‘SO SMART’, and luxury cars fill the streets. (BMW, CORVETTES, AUDI, MERCEDES, etc.)

#15 timbo on 05.16.12 at 9:08 pm

Ok Garth you have to warn us holding coffee when you put pictures up like that!!!! The smile he has is one to remember. That is now on my desktop , thanks :)

http://www.telegraph.co.uk/finance/financialcrisis/9270884/Debt-crisis-Greek-euro-exit-looms-closer-as-banks-crumble.html

“President Karolos Papoulias told party leaders that banks had lost €700m in withdrawals on Monday alone as citizens rush to pre-empt capital controls and a much-feared return to the Drachma. ”

bank run!!!!!!!!

#16 Smoking Man on 05.16.12 at 9:09 pm

#10 LH on 05.16.12 at 8:57 pm

Forgetting the lake shore go line, still way under priced.
George Town and Milton caught it, prices up.

But Mimico and Long branch, that’s the place to be for the next rush, especially south of lake shore. 22 min from front door to union, walking and train.

#17 Deano on 05.16.12 at 9:13 pm

Oh man, #7 Randy…these people whining about wind farms. They’re the same people who say nothing about massive, sprawling suburbs eating up farmland…say nothing about nuclear power plants near major population zones…and say nothing about anything else unless they can see it with their beady little eyes. Give me a break. I’ve lived in two places with wind farms all around (Netherlands and California). Rest assured property values did not suffer long term damage b/c of them.

#18 Linda on 05.16.12 at 9:13 pm

#11 Elmer

Ha ha! Thanks for the chuckle.

#19 Foggy on 05.16.12 at 9:15 pm

No surprise there about cottage country. The prices and interest stopped abut 2 years ago. I was following my neighbours cottage, starting in early 2008 listed for $315K. It was still on the local realtor’s website after a staggering 4 years (price unchanged) when it finally disappeared. I checked the SOLD section and nowhere to be found. So he either gave up or the bank foreclosed.
Recreational properties are always a leading indicator of trouble on the horizon.

#20 Balmuto on 05.16.12 at 9:16 pm

Muskoka waterfront average sales price down 45% – my guess is we’re not dealing with comparables here – the higher end properties making up a smaller percentage of total sales this year, skewing the average price lower. Which may be a bad sign in itself. But I highly doubt that the value of the average cottage has gone down 45% in a year. The same article cites the average non-waterfront sales price has gone up 6% this year.

Who goes to Muskoka for non-waterfront property? — Garth

#21 Fleabitten Monkey on 05.16.12 at 9:22 pm

Global TV in BC tonight ran the story of a 19% drop in Metro Van sales year over year, yet a 4% increase in prices. How does this reconcile to the approx 10% drop in the avg Van prices according to the Canada Real Estate Association in the Globe and Mail article from yesterday? Can anyone shed light?

#22 mid-Ontario on 05.16.12 at 9:25 pm

“Of course, you know all this. You are the chosen ones. You’re all coming on my ark.” – Garth

Indeed, I am packing up ready to board your ark.

However, I am really not comfortable thinking about sitting around in the ark with a bunch of know-it-alls.

Is there “preferred accommodation” for those of us who want to be alone?

No. This is the love boat. — Garth

#23 furst on 05.16.12 at 9:28 pm

I long to be a blog hero
With throngs of followers
Hanging on to my every word
Garth has stolen my thunder
It wasn’t fair from the start
FUURRRSSSTT!!!

#24 Robert Pereira on 05.16.12 at 9:35 pm

The reports on Global Television about the bubble in Vancouver are confusing Hoping that the prices go down

#25 Kip on 05.16.12 at 9:36 pm

“You are the chosen ones. You’re all coming on my ark.”

I’ll take a pass. Sail on captain!

We’ll send a Re/Max shark back for you. — Garth

#26 Ryan Perich on 05.16.12 at 9:38 pm

http://www.edmontonjournal.com/business/Pigeon+Lake+property+values+fall+cent+report/6631933/story.html

My 2nd cousins bought a house cottage out @ pigeon lake in 2008….

Does this sound about right for order of price drops

1. 1 bedroom apartment condos
2. 2 bedroom apartment condos
3. vacation properties @ the lake
4. townhouse condos
5. townhouses
6. duplexes
7. SFH that are junk
8. decent SFH

The writing is on the wall, and in the Edmonton J’urinal…vacation properties hit after a 70 % drop in the apartment condo in Edmonton since 2007….

The drops to normalcy cometh, and that right soon.

#27 coastal on 05.16.12 at 9:39 pm

“And in Victoria these days a stunning 151 houses priced between $1 million and $2 million are on the market in a small city where the average household earns just $76,650. Sales, as you might imagine, suck. Says one experienced realtor, “Anyone who wanted into this price range and waited six months, just saved $500,000.”

That’s very funny cause a rookie agent I heard does nothing but tout the million dollar sales as if the rich are blowing their brains out on Victoria mansions when reality is the smart millionaires are dumping ASAP. Thus what separates the wet-behind-the-ears agents and the experienced agents, AKA the truth versus the bullsh*t. Not to forget about the other 4300 places for sale that sit there and stagnate month after month like moldy old socks.

#28 Scottq on 05.16.12 at 9:40 pm

Garth, i have enjoyed your posts and commentary for the last month since i was introduced to it by a friend. my question is what event do you see accelerating the actual popping of the bubble? i anticipate a rising interest rate? greece? its amazing to think how long it could merely stagnate forward without any major changes…not asking for a prophecy just some more interesting thoughts to consider.

#29 Dan T on 05.16.12 at 9:47 pm

Isn’t north Unionville really just Stouffville?

Closer to Orillia. — Garth

#30 Mister Obvious on 05.16.12 at 9:51 pm

“Of course, you know all this. You are the chosen ones. You’re all coming on my ark.”
——————

Well that’s rather a comfort in these, the final days.

Unfortunately, I have some dear friends whom I fear have waited to long to repent in spite of my urgings over the last two years.

They are now unlikely to find their way to the arc in time. I am troubled over their futures.

#31 vatoDETH on 05.16.12 at 9:52 pm

One of my bosses is a soon-to-be-retiring boomer. He was talking about selling the 2800 sq ft house and downsizing when he’s ready to retire. I’m sure he has some pension and savings. I never really got into it with him. But yes, it’s true, he considers a big part of his retirement savings to be downsizing his house in the coming years…

#32 Renting In The GTA on 05.16.12 at 9:52 pm

I work 10 minutes away from Upper Unionville.

I have 3 colleagues that want to buy in that area.

Surprisingly enough, I convinced them not to buy there.

Or maybe they just realized they don’t actually have enough money…

#33 raider on 05.16.12 at 9:53 pm

“Of course, you know all this. You are the chosen ones. You’re all coming on my ark.”
Big thanks Garth! Keep it going!

#34 real estate bear on 05.16.12 at 9:53 pm

Thinker, please do {think}.

#35 disciple on 05.16.12 at 9:56 pm

If we’re gonna be stuck on a boat, we’ll need some entertainment. So I caught up with Monica Lewinsky. She goes by the name of Stacey Tollman Lax now. Another family member.

http://xdisciple.blogspot.ca/2012/05/monica-lewinsky-is-stacey-tollman-lax.html

#36 Ferrari321 on 05.16.12 at 9:58 pm

Did anyone else notice in that Upper Unionville pic – that its all asian people?? (except the white guy who’s laughing because he’s probably a developer waiting to sell these homes). Being asian – I just hate the mentality that asian people have regarding real estate – its just utterly retarded.

#37 Inglorious Investor on 05.16.12 at 10:04 pm

#209 Aussie Roy on 05.16.12 at 7:41 pm
(from previous post)

“Pay down the debt.” Yes. Best option.

“Forgive […] the debt.” Yes

“Inflate the debt away.” Governments’ favourite option (for itself). And this is essentially the solution proffered by Keen––although his approach is different. His proposal is very insidious and may seem attractive on the surface, but it would be even more destructive of people’s wealth than governments’ current repressive monetary policies.

At least under the current approach (which I do not like), the monetary inflation can be contained somewhat within the banking system. But if enough money was actually printed to pay off all debts and just handed to the people, all hell would break loose.

Even Keen seems to have little idea how his proposal could actually be implemented in a properly controlled manner. It’s pure theory. If he thinks the government would be able to direct how people use the money, he’s sadly mistaken IMO.

“Go bankrupt and reboot.” Yes. This is the extreme version of a default. Not a desirable solution, but it happens all the time. A structured default or debt restructuring is also very common.

“[…] more debt.” No. This appears to be Krugman’s, the Keynesians’ and the MMT solution. They think if government spends more and goes deeper into debt, eventually the economy will get back on track. But two things: spending does not generate wealth; demand based production does. And governments do not create wealth; they take it from the people. Government can play an important role in the economy, but mainly, all government spending can do is redistribute wealth and time shift demand.

MMT advocates think wealth comes from governments because they create currency, spend it into the economy and kickstart demand. They think that the people’s wealth is just the flip side of government debt, so that the more you increase government debt, the wealthier the people will be. What they seem to fail to understand is that economies develop just fine without governments. That people create the wealth first. Government issued currency is just a universal proxy used to facilitate trade. The reason governments create and control currency is for the efficient collection of taxes and so they can use inflation as a means of appropriating wealth from the people (ie another form of tax).

Unfortunately if the Krugman/Keynesian/MMT approach was tried in ernest, the only way we would know it didn’t work would be a currency collapse. Because no one knows how far you can take the sovereign debt of any specific county before creditors boycott your debt. The US has more leeway than most because of its military and other factors, but even the US has limits. Do we really want to test them?

#38 Paolo on 05.16.12 at 10:05 pm

The train wreck is beginning to take shape.

Even the herd mentality at work (coworkers) are beginning to express doubts at lunch and around the water cooler.

How does it go? Denial gives way to fear…

Greed. Fear.

Ballots for a bedroom community north of the GTA.

Brilliant.

And lots of coconuts ready to take the bait. The Greater Fools, defending Berlin to the last man when all has alrea

This will end badly. After 4 years of following Garth and fellow bloggers, I think we have reached the tipping point.

No more emergency interest rates, no more nonsense. No more enabling behaviour from F or Carney. The fact that they are doing all they can to distance themselves from this world of hurt says it all.

Trainwreck is here.

Crazy.

Hold on Dorothy, Canada is going bye bye…

#39 Einzatgruppen kanada on 05.16.12 at 10:08 pm

I wonder about 1 Bloor [GTA].. snails pace. So far dug down not much else happening. Must have been 2 years plus since demolition.

#40 torontorocks on 05.16.12 at 10:10 pm

Hey they’re all Chinese.

#41 John on 05.16.12 at 10:12 pm

People looking to buy in “Upper Unionville” are not buying houses. They are looking to live in a Chinese community because they are Chinese. Can you put a price on this? The Chinese community ( from what I know of it) is healthy, filled with culture and family ties. It would be wonderful to live in Toronto and be Chinese. And especially be near to now far too expensive fairly close buy anchor communities ( like Markham).

Chinese people want the real deal, and they are the real deal. So they want to separate and live in their own communities. These, and many many other dynamics, are rarely included in Canadian thinking. Mostly for abusive discriminatory reasons. Instead of saying what is, it’s best to pretend we’re all “together” in a “shared” multiculture (?). We’re not…and by saying we are ( as Canadians), it just breeds ugly racism.

Do people really know what matters to an Upper Unionvillian? What it would mean for a young Chinese Canadian couple to wait as much as 2 years to be in their own community, near literally hundreds of good friends and relatives?

No…of course not. That doesn’t matter. Chinese Canadians ( the Unionville variety) might not have as much good information as can be found here, due to focus and culture. They might think it could be 2-5 years for a correction, if they think about it at all.

Look at the people in the line. Not a greater fool among them. They have real culture and real community, and it’s not for sale at any price.

Want insanity? These comments would be considered “racist” by many Canadians. Not one single Chinese person would think so.

#42 ottawa pete on 05.16.12 at 10:13 pm

This house has been sitting empty and in the builder’s inventory since built 7+ years ago:

http://tinyurl.com/86tn5on

Any idea why the builder would not want to just unload it years ago?

#43 Harry Palms on 05.16.12 at 10:19 pm

#16 Smoking Man on 05.16.12 at 9:09 pm
in response to #10 LH on 05.16.12 at 8:57 pm

…………But Mimico and Long branch, that’s the place to be for the next rush, especially south of lake shore. 22 min from front door to union, walking and train.

Mimico and Long Branch might be low cost as far as 416 neighbourhoods with viable transit go, but there’s a bit of dirt under the fingernails with both.

In a past life, I had a lovely rental in Port Credit. 5 to 10 minutes further than your two hoods, one helluva lot nicer. Might be costlier to buy into, though, haven’t been home shopping in many years.

If you’re looking at your house as a place to live and commute to downtown from as opposed to a financial instrument, some of the East end Lakeshore ‘hoods might be better value than West Side.

Guild, Bluffs, Birchcliff all have beautiful pockets, ~22 minute GO trip times, GO / subway access equal to or better than West Lakeshore, and are also bargains relative to other mature Toronto areas.

Whatever. I’m just lucky I won’t need to earn my living as a track 6 commuter.

#44 Snowboid on 05.16.12 at 10:25 pm

#31 vatoDETH on 05.16.12 at 9:52 pm…

Tell him to list it…now!

#45 Mr Buyer on 05.16.12 at 10:30 pm

I suspected more than a little jiggery pokery with the stats was going on. BUYER BEWARE. THE BUBBLE HAS TOPPED. NOW IS NOT THE TIME TO BUY A HOUSE. SALES ARE FALLING ACROSS CANADA (and soon to be undeniably all of Canada).

#46 TurnerNation on 05.16.12 at 10:33 pm

Shall we expect a spin-off weblog?
GreaterTool.com?

#47 Inglorious Investor on 05.16.12 at 10:34 pm

The drunk and stoned partiers in the basement turn up the music and bring out more booze, while the nascent fire on the second floor quietly begins to spread.

#48 Stinky the Fish on 05.16.12 at 10:38 pm

DELETED

#49 Husky on 05.16.12 at 10:40 pm

I POSTPONE MY TRIP TO THE HONG KONG BECAUSE OF THIS NEW RELEASE FROM THE UPPER UNIONVILLE. I REGISTER FOR THE LOTTERY ALREADY AND IF THEY NO CALL ME THEN I WILL BE VERY ANGRY AND WASTE MY TIME.

WHY THEY HAVE TO DO LOTTERY LIKE THIS. THEY SHOULD DO THE WHOEVER COME FIRST GET TO BUY.

I KNOW SOME PEOPLE WILL DO THE CHEATING AND DO THE REGISTER MULTIPLE TIME JUST TO HAVE MORE CHANCES IN LOTTERY.

FINE OK THEN I REGISTER 5 TIMES ALREADY USING DIFFERENT NAME AND NUMBER.

#50 CrowdedElevatorfartz on 05.16.12 at 10:46 pm

Ladies and Gentlemen
First I must apologize for being late.

Randy, Mr Lahey and the Trailer Park Boys took me out to an “All You Can Eat Mexican Buffet” and BOY! Did I EAT!
Between Rum and Cokes, Randy kept babbling on about trapping BPOE in an elevator and “gassin im”.
Not sure what thats about…… anywho.

I wasnt totally full after the free meal (Thanks Guys!) so I decided to drive downtown and fill up on Chinatown’s famous “Flattened honey glazed Duck” at Ho Ho’s Restaurant.
Still didnt do the trick so off I went to South Surrey where I could get some extra spicy curried beef.
Still hungry, must have a tapeworm, I’m now back in Richmond. Ate at a Vietnamese restaurant who’s name escapes me but the simulated deep fried battered baby mice were extra crunchy.

Im now on the hunt for BPOE……..
I know what condo he lives in so its only a matter of time before Randy gets his wish…….

#51 Smoking Man on 05.16.12 at 10:46 pm

#43 Harry Palms on 05.16.12 at 10:19 pm

I like dirt. In time it eventually turns to Diamonds

#52 wes coast on 05.16.12 at 10:47 pm

Can it be considered a hate crime that the white dude is ripping off all the asian folks in that picture? Maybe he should have hired some lawn caucasians.

#53 renters rule on 05.16.12 at 10:57 pm

John = realtor who preys…er, I mean, sells, to people of chinese cultural background.

Is that politically correct enough for y’all.

Regardless of their ethnicity, they will still get fleeced.

It’s over.

#54 Steven Rowlandson on 05.16.12 at 10:59 pm

Unlike these people. They turned up last weekend to view plans for 600 unbuilt homes in a distant GTA pasture called Upper Unionville, where demand for $500,000 to $1 million houses is so great bidders have to pre-qualify online, then wait for a lottery to gain a sales appointment, to which they must bring a chequebook.

They shouldn’t even bother trying to buy a home with out winning the Lotto max or 6/49 jack pot first.
It is that or hold out untill the price collapses and then move in and vultch for 5 or 10 cents on the dollar.
No point in paying more than you can afford is there?

#55 Dave on 05.16.12 at 11:02 pm

Definitely a lot of HAM in that picture. Maybe they’ve moved on from Vancouver and are now attacking Ontario?

HAM = Hot Asian Money. Like, from “Asia.” It does not mean people who look different than you, and were born here. — Garth

#56 Inglorious Investor on 05.16.12 at 11:08 pm

To: penpal, Aussie Roy and Derek R

I just received a note from John Tamny, senior economist with H.C. Wainwright Economics (http://www.hcwe.com/root_pages/root_jetamny.php) , editor of RealClearMarkets, and a senior economic adviser to Toreador Research and Trading. He’s also been interviewed several times on BNN.

He told me the following regarding Steve Keen’s plan, which I thought I should share with you.

“[…] Keen, how silly. You and I know this because beyond the devaluation that such a move presumes, how do people act when their debt is paid down? They feel good for a moment, then run up more debt. We should embrace the personal debt for enforcing some form of discipline on overextended people.”

If you are interested in economics, you should read Tamny. He knows what he’s talking about.

#57 P & T S on 05.16.12 at 11:09 pm

Garth’s Ark – “The Luurve Boat”!!

Be seeing you out there (we’ve got our own as you probably know, thanks to NOT investing in Real Estate!!)

#58 Aussie Roy on 05.16.12 at 11:10 pm

Inglorious Investor on 05.16.12 at 10:04 pm

#209 Aussie Roy on 05.16.12 at 7:41 pm
(from previous post)

“Pay down the debt.” Yes. Best option. REALLY?.

“Forgive […] the debt.” Yes

“Inflate the debt away.” Governments’ favourite option (for itself). And this is essentially the solution proffered by Keen––although his approach is different. His proposal is very insidious and may seem attractive on the surface, but it would be even more destructive of people’s wealth than governments’ current repressive monetary policies.

…………………………………………………………………………..

Your hyperinflationary stance is what I question.

I see Steves idea as debt forgiveness to which you said yes.

I can find no evidence through history a debt jubilee (debt forgiveness) has ever caused hyperinflation?. Stopped a deflationary sprial yes, hyperinflation not once. If you can find an example I would be more than happy to study it.

Think about it, if the allies after WW1 would have forgiven Germanys debt, they would have never experienced their hyperinflationary event. Who knows how that may have affected the rise of Hitler and the destruction that went with it.

Germanys problems were caused by printing too much money. What people don’t seem to ask is why were they printing so much money. It was because of the demands placed on them to pay their debt.

I don’t disagree with most of your comments but I really think you have the wrong slant on what Steve is suggesting, leading you to predict the wrong out come.

Also I would point out that recently a number of countries have given Burma a debt jubilee (debt forgiveness) to help reduce the demands placed on the countries economy and help kick start growth. I didn’t see any hyperinflation there, just an economy which now has more money for productive investment as the debt demands (interest payments) are gone.

We can learn from history, pity it’s not studied in economics any more.

#59 charles on 05.16.12 at 11:14 pm

finally sold the summer cottage after being listed for 2 years $50,000 lower than asking. What a relief!!!!!

#60 Not 1st on 05.16.12 at 11:16 pm

Garth, I think a lot of asian immigrants haven’t seen a recession or depression first hand, thats why they are so bubbly about RE no matter what the price. Talk to some WWII era or even boomers who survived early 1980s and I think the take would be very different.

#61 BigAl (Original) on 05.16.12 at 11:17 pm

Relative in Chilliwack, BC put up his house for sale last year in summer 2011.
Original asking: 405K
Then: $429K
Then: $419K
Switched Agents
Then: $399K
Then: $389K
Sold 2 weeks ago: $330K

Also lied in the ads about the square footage. He included the garage I think. House is only about 1700 sq ft, 2400 if you include the finished basement. Had it listed as 2800 sq ft. Must have pissed off any potential buyers.

#62 disciple on 05.16.12 at 11:18 pm

Michelle Obama is Regina King. Daniel Bushell of Russia Today newswire is Prince William’s other job. Voice match. To verify for yourself, you can do a google image comparison or play both in youtube simultaneously. I’m too tired to post details, so you guys are on your own until I have some more time.

You have been lied to.

#63 The Real Jimbo on 05.16.12 at 11:18 pm

We desperately need restrictions on offshore ownership and speculation in Canada. We’re one of the only countries in the world who allows our real-estate to be used as a global casino.

I’ve said this many times about Hot Asian Money… You don’t care much about it and you may go as far as making accusations of racism when you hear about someone complaining about it UNTIL it comes to your neighborhood.

When, one day, you’re shocked to find every house on your street has been bid up by HAM and your kids have no hope of ever affording a home, you suddenly care… a whole lot. But by then, it’s too late to do anything about it.

Remember the famous quote from Niemoller:

“First they came for the communists, and I didn’t speak out because I wasn’t a communist.

“Then they came for the trade unionists, and I didn’t speak out because I wasn’t a trade unionist.

“Then they came for the Jews, and I didn’t speak out because I wasn’t a Jew.”

“Then they came for me and there was no one left to speak out for me.”

After that post, who would want to? — Garth

#64 the word of reason on 05.16.12 at 11:22 pm

Oh all you haters will still keep getting yours Toronto is the new newyork , prices will not drop just keep rising …

#65 Devore on 05.16.12 at 11:26 pm

#41 John

What are you going on about? I don’t know.

Look at the people in the line. Not a greater fool among them. They have real culture and real community, and it’s not for sale at any price.

Well, apparently it IS for sale. And there most certainly IS a price. But nice rhetoric. Are you in marketing by any chance?

#66 mark on 05.16.12 at 11:33 pm

The bimbo filling in on L&O’L had a different phrase for Vancouver, “it’s cooled a bit”.

#67 thinker on 05.16.12 at 11:33 pm

So if all the Chinese people want to be with other Chinese people why don’t the move to China? Why even come to Canada – not racist here, but people are posting the value of community and culture, doesn’t get any better then the motherland?

Oh wait, in China, first world education and health care cannot be bought via property tax, you have to pay very very expensive prices to get those things. Otherwise, why would someone leave the beautiful land of China and come to freezing cold Canada?

Who wakes up in the morning and says I want to move somewhere where it is freezing cold 10 months of the year and join a group of self segregated community?

Canada is not some place where you can move into your own community ghetto, it’s a place that has to much compassion and has allowed this to happen

CBC

Stupid words. Likely most (if not all) in that photo were born here. Man, this blog smells of racist resentment today. — Garth

#68 rentin on 05.16.12 at 11:45 pm

Your picture clearly demonstrates that the oriental buyer phenomenon is consistent across Canada.

They do have a higher tolerance for risk, just go to a casino and watch who is throwing down the big money at the tables.

#69 Debtfree on 05.16.12 at 11:45 pm

60 percent in BC remaxedoutcreditdummies. No wonder we get so many snide looks . Oh well at least there are 40percent of the Debtfree . Thanks Garth . When can we expect the next book . Not rushing you . Just asking . Maybe ask the amazons to massage the quill arm a little. Or some ice if it’s sore. Tia

#70 OwlEyes on 05.16.12 at 11:47 pm

Awesome photo. Check out this article:
http://www.theglobeandmail.com/globe-investor/personal-finance/rob-carrick/boomers-have-a-stake-in-gen-ys-success/article2435015/

#71 Canadian Watchdog on 05.16.12 at 11:47 pm

Having trouble paying your mortgage? No problem. Genworth’s new homeowner assistance program will help pay your mortgage by extending payments years down the road, so you can keep your granite top–stainless steel kitchen, for just a little bit longer.

Genworth Homeowner Assistance Program
http://www.genworth.ca/homeownership/c_on-your-terms/HomeownershipWeek_Friday.asp

Of course, this was not really designed to help homeowners, rather to free up Genworth Canada’s capital to help its soon to be bankrupt parent company to the south, Genworth Financial Inc. http://tmx.quotemedia.com/quote.php?qm_symbol=GNW:US

#72 Mr Buyer on 05.16.12 at 11:48 pm

#42 ottawa pete on 05.16.12 at 10:13 pm
This house has been sitting empty and in the builder’s inventory since built 7+ years ago:

http://tinyurl.com/86tn5on

Any idea why the builder would not want to just unload it years ago?
…………………………………………………………………..
He is waiting for the market to crash so he can unload it at a huge loss

#73 Hmm on 05.16.12 at 11:54 pm

Hi Garth,
That image is of an actor-friend of mine.

#74 Al on 05.16.12 at 11:56 pm

Sales to listings ratio in the GTA is dropping like a stone. Small business bankruptcies are rising like a rocket. We are doomed !

#75 pablo on 05.16.12 at 11:57 pm

They can swim.- garth
Of course they can swim, how do think they got to cda in the first place. Look at em all, not so inscrutable are they number one son.

#76 formerly horny on 05.16.12 at 11:58 pm

sniff, sniff, that picture wreaks of house porn!!!
Fools!

#77 Alberta Ed on 05.17.12 at 12:03 am

“The fools who fall for the siren song of Re/Max, CREA or a real estate board will soon find the music ending, and no chair.” That would be the CBC and G&M ‘business’ reporters.

#78 Johnny Eastside on 05.17.12 at 12:11 am

In Spain prices are dropping by a 1/3 to 1/2. Check this out: http://www.vivaestates.com/buying/reduced-properties-costa-del-sol/

Today I was going for a walk near Cambie St. in Vancouver, I saw a Global TV guy filming a house with a for sale sign. I wonder if they are actually going to say prices are still going up.

I have a European passport, maybe I should sell up and head to Spain!

#79 LSD on 05.17.12 at 12:31 am

Gartholomew can be a confusing character sometimes. He rips on his underlings for being ‘racist’ for blaming HAM for driving up prices, then posts a picture of an exclusive HAM buying frenzy.

I doubt anyone in that pic is not a citizen. What an idiot comment. — Garth

#80 house burden on 05.17.12 at 12:37 am

Hey I believed all those people were at the royal casino last week

#81 Jim on 05.17.12 at 12:39 am

#41 John,

It is a sad reflection on our moral degeneracy that Chinese people who wish to live in highly homogeneous communities are to be praised as ‘protecting their culture’, while Europeans who attempt to do the same thing are called racists.

I’m okay with Chinese people. I’m okay with them creating ethnic enclaves. I am not okay with the double standard that white people are nazis for wanting the same thing.

#82 Carpe Diem on 05.17.12 at 12:42 am

#41John

Hey John … how real is this?

China’s empty cities!
http://www.youtube.com/watch?v=rPILhiTJv7E

Chinese folks follow the herd and will keep being sheep and some will get harmed doing this. I see it with friends (Chinese decendents) in Vancouver … they beleived the herd was coming but in the end only crickets came.

#83 Nostradamus Le Mad Vlad on 05.17.12 at 12:44 am


“Unlike these people. You are the chosen ones. You’re all coming on my ark. This is the love boat. They can swim. Good luck. That was exciting. — Garth Real estate is a lonely mummy in want of Lady Croft, for example, the malaise this malevolent blog has moaned about is now the stuff of the MSM.”

My spideysenses are tingling, indicating a massive brAin farT is about to explode world wide. Victoria Tea Party and onemorething have expressed similar concerns, but #14 Anonymous summed it up well.
*
#6 Aussie Roy — “A $400 million prison in Ararat is in limbo months from completion, with the company building it placed into liquidation.” — Harper’s doing the same thing here, building new prisons and buying US military jets while the country goes broke. See #14 ANONYMOUS’ post for clarification.

#21 Fleabitten Monkey — “Can anyone shed light?” — Yes. It’s known as the paid-for and controlled m$m for a reason. “If you can’t baffle ’em with bullshit, then dazzle ’em with brilliance.” That’s why those who do not follow Garth’s prose are sheeples, and we’re not.
*
Unsustainable US and Cdn. health care systems; Shrinking Credit in recession; Diamonds Are 4Ever; We’re Turning Japanese! Hot Money or Too Big To Fail? Money and lots of it; India, China and Russia; RE crash in China; Tim Horton’s Time to buy? Yen sell off? Attack on Paul Krugman; Curiosity and curiosity; Slowing Population; Chinese copper and Renmibi exodus; Greek exodus; The Price Of Rice around the world.

The Wealthy Barber’s secret to success; Ask and ye shall receive; Commodities Cooling; BoE More QE? Soros more than tripled gold investment in first quarter; TED See the presentation; Energy in Canada; New Star System or the US economy? Canada, Iceland and Greenland; Lottery Winner Positive vibes; America’s energy future; JPM’s Waterloo? Link in, but a short read; Recessin? Blame the Queen; Cameron and Merkel They’re both going down hard; Obomba Saving face; 5:04 clip How money dies.
*
1:39 clip Are we being watched? It appears so; Victoria Tea Party Curious to be a fly on the wall! Somebody loves Obomba; Jokes Galore about the F-22 Raptors bombing Iran. They can’t even fly properly; Erupting Headlines all at the same time; First, the F-22 Raptors followed by this; Russian Women In good shape for a century plus; US shadow war in east Africa; No to NATO Good on Brit. citizens — they have finally grown a spine; Blue Peter BBC1 moving it to another channel after 53 years; Image Problem About time, too.

#84 house burden on 05.17.12 at 12:55 am

#46 TurnerNation on 05.16.12 at 10:33 pm

Shall we expect a spin-off weblog?
GreaterTool.com?
=======================

No I think Garth’s next blog should be how to survive on

Mac and Cheese.
or
Living on tree bark.
or
How to live off of government subsidies!!!

#85 Waterloo Resident on 05.17.12 at 12:57 am

Wow, WALL-TO-WALL ASIANS !!!

And only one white dude selling them the crap !

Look at him, he’s laughing so hard he can barely contain himself !

When those asians lose 20%, they are going to find him and kill him !

#86 Deliverator on 05.17.12 at 12:58 am

Fractional reserve banking expained:

DELETED. Posted 11 times, and useless in each instance. — Garth

#87 Derek R on 05.17.12 at 1:23 am

#37 Inglorious Investor on 05.16.12 at 10:04 pm wrote:
But if enough money was actually printed to pay off all debts and just handed to the people, all hell would break loose.

Yeah but are we talking about printing enough money to pay off ALL debts? I don’t think that would be wise. Or necessary.

And if you think about it, the current government already did this on a small scale in 2009 when it introduced the Home Renovation Tax Credit. This was basically a free cash give away which people got when they submitted their tax returns. It didn’t seem to have any measurable effect on inflation but I’m pretty sure that it was one of the factors that stopped the Canadian house bubble popping at the same time as the American one.

Still if we’re looking for a non-Krugman/non-Keynesian/non-MMT solution to the debt problem which doesn’t involve printing money how about this?

Step 1: We abolish Federal GST, giving everyone in the country extra cash in their pocket and a boost to domestic industry.

Step 2: To fill the budget gap we introduce a Federal property tax. This will have the same effect on property as raising interest rates but the advantage is that people will have more cash to pay it because of step 1.

So balanced budget and a stimulus. It’s not Keen’s idea but it still sounds good to me. Not only that but the tax evasion rate for property taxes are much lower than the evasion rate for GST, so the honest tax payer ends up paying less. Plus owners of Canadian property who live abroad have to start contributing to the CRA in a way that they would never do with GST. So once again that reduces taxes for Canadian residents.

Who knows? They might even use the extra money in their pockets to pay down their debts.

#88 Soylent Green is People on 05.17.12 at 1:30 am

100% that is not monica god youbguys are morons on pof i have to delete guys because the same ones keep emailing me whenever i change out the profile pic duh?

.
http://Www.unseatharper.ca
.
.
.
.
.

#89 TRT on 05.17.12 at 1:41 am

OFSI should do this first:

1) Limit mortgage amortization for insured mortgages to 67 – Age. If you are 40, then max 27 year amort. If you are 50, then get an uninsured mortgage.

2) Verify income via previous year’s CRA official tax return.

3) Put a price ceiling on CMHC insured mortgages.

That simple Garth. No need to throw around rhetoric regarding requalification. Will never happen.

#90 Ben on 05.17.12 at 2:05 am

Ha Ha… The only caucasian is the realtor.

To funny!

#91 Aussie Roy on 05.17.12 at 4:31 am

Aussie Update

The Australian Housing and Urban Research Institute has released some research that suggests Australia is moving to a housing-based welfare system.

Our homes are our superannuation nest-eggs, our unemployment insurance and our rainy day fund all wrapped into one debt-laden, interest-rate-sensitive package.

And because of the importance placed on “the great Australian dream” of home ownership, households are going into greater debt for longer periods and exposed to credit risk for a greater proportion of their lives than previous generations.

In the past, redrawing on your mortgage was a loan of “last resort” for borrowers, usually later in their lives.

Now, more flexible mortgage products mean younger families can redraw on their equity. But instead of being used to help fund a holiday or a house renovation, redraw is being used as a type of financial buffer or an insurance against economic tough times.

AHURI researchers Gavin Wood and Rachel Ong estimate 43 per cent of Australian home owners added to their mortgages without moving between 2001 and 2005, borrowing on average an extra $20,000 in cash.

What’s more, the researchers found the cash wasn’t used for round-the-world trips but “pressing financial need”.

Wood and Ong argue there is a growing group of Australian households that cling to the fringes of home ownership. They may own their own home – but only by the skin of their teeth.

Housing wealth accounts for about 64 per cent of the gross wealth of Australian homeowners, but unlike with other financial assets, a homeowner cannot hedge against house prices or interest rate changes.

http://afr.com/p/opinion/it_all_depends_on_home_ownership_dHPJCmMkAJZxGyVao9EfAM

Canberra’s market for apartments and units could be at ”saturation point”, with the ACT government failing in recent attempts to sell residential land packages zoned for multi-unit development

http://www.canberratimes.com.au/act-news/no-sale-units-reaching-saturation-point-20120513-1ylaw.html

#92 Monster Cookie on 05.17.12 at 4:41 am

The housing market has been such a bore for soooo loonggg. Glad to see it’s finally getting exciting! Let the good times roll.

The door bell is in the toilet and the ding-dong is now the home owner.

#93 villain? on 05.17.12 at 4:56 am

A city where no man will live.

Maybe canadians should plan a takeover, quick- send in the realtors!

http://redicecreations.com/article.php?id=19791

#94 Regan on 05.17.12 at 7:05 am

I have to admit I find the concept of Hot Asian Money is something that gets thrown around, but doesn’t explain anything? What’s the story behind it? That Asians (‘Asia’ is a big continent with vastly different socio-political conditions and cultures, could you be more specific?) have money (from jobs? investments? other real estate? tech startups? where?) and they want to buy real estate (um, okay, unlike everyone else?). It’s just a prejudice masquerading as an explanation. IF anyone could actually show meaningful statistics and then some meaningful analysis, I think it would be helpful. Otherwise, you’re just turning some racist RE propaganda into racist anti-RE propaganda. As for the group of folks in the pic, you’ve got no more info than they look…um, some variety of Asian. Canadian-born? Quite likely. Toronto is really diverse like that. New Canadians? Also possible, Toronto has lots of immigration. From what I recall as a kid though, immigrants tend to move in waves into new construction because, you know, other people already live in current construction and new areas have hundreds of homes for sale all at once. That’s how my home town ended up with pockets of U.K., Polish, Italian and Chinese communities. My mother walked off a boat and moved with her family into a little Scottish enclave that eventually melded with the larger community. Pretty much how it’s been working since Columbus. So, does immigration keep up demand for new housing and stimulate the economy? Yes. And given that the median age in Canada is now 41, that’s a very good thing.

#95 Randy on 05.17.12 at 7:30 am

http://www.cbc.ca/news/canada/story/2011/09/30/ontario-wind-power-property-values.html

#96 bigrider on 05.17.12 at 7:33 am

An update on the RE101-gottohumpahoma virus.

Origins of the virus in the GTA have been determined to have started with the Italian immigrants but the mutated version we are seeing now rests squarely with the asians.

As a reminder signs, you may have been infected include:

1) a need to wander into open houses in your community
2) talking about your home’s price appreciation with friends and neighbors who have experienced same phenomenon
3) Mike Holmes wet dreams
4)Logging on to mls.ca as much as redtube
5)daytripping the family into local Lowes,rubbing copper eavestrophes over at Rona

I can provide full blown symptoms if anyone is interested.Just let me know.

#97 Beach Bum on 05.17.12 at 7:46 am

I noticed in the past month or so I had to zoom in an extra level in realtor.com in the areas i keep eyes on or I get “your search returned too many results”. Things are getting interesting west of the GTA….

#98 bigrider on 05.17.12 at 7:47 am

I’m surprised Garth of what seems to be your ‘Keynesian’ leaning toward your economic viewpoints. Seem sort of pollyanna. There are real endemic and systemic economic problems in the world that seem destined for a corrective action of biblical proportions.

I would think that with your practical approach to personal finance you would subscribe to a more ‘austrian’ view of the world.

Is your keynesian leaning a function of the years you spent in political office?

I would be disappointed if you deleted this rather than explain,defend or refute my observation , I think it a fair question.

#99 Beach Girl on 05.17.12 at 7:53 am

I am happy today. My Miss Daisy (the Jack Russell) is going senile with her mother. We are going to Rona this morning to buy more string for our weedwacker. And destroy the backyard.

I used to live in Unionville. When it was Unionville. Beautiful. Honestly it was. I hate going back there. Nice Chinese food and the like. I am not racist, don’t really care. But it is totally non-white.

Upper Unionville, what a joke. Try getting car insurance there, when you tell them your ZIP code. Good luck. LOL.

#100 salonist on 05.17.12 at 7:56 am

for mr. one toke over the line

http://www.theglobeandmail.com/globe-investor/personal-finance/rob-carrick/a-29-year-old-on-the-difficulties-of-landing-a-first-job/article2434807/

re: you are irrelevant to the rich
had an opportunity to go to a friends parents cottage(nine bedrooms in the main residence)on an island in lake st. joseph a few years back.my friends mom remarried into the melon family.they ived in a castle in france,lake st.joseph,freeport and a ranch in arizona for around 3 months each.
some locals came over, asked what i did, i tell them(i’m making well over 200k as a printing broker)
the response was “how boring”

the island accross from us was owned by the owner of sp*rting l!fe, the boat house was larger than downtown milton.

to these folks muskoka property value % up % down makes no difference

#101 Gypsy Kid on 05.17.12 at 7:58 am

To: The Real Jimbo;
You were only being “racist” because you singled out a particular “race”.
But yes. There is a big big problem the Cons are clearly ignoring/fostering…
My question is why, why why are they ignoring/fostering the issue?
Garth? What is their benefit? I dont believe they’re doing this because they like foreigners. There is an ulterior motive, probably short term economic benefit…

#102 Buy? Curious? on 05.17.12 at 7:59 am

Garth,

2 questions: Why are you surprised about the racist feedback when you post pictures of Chinese (with Canadian citizenship, of course) people beating other Canadians at the money game? You know whiny racist remarks is the mating call of a loser. And…..

What happened to the sexy sexy pictures you used to post that was juxtaposed with the topic of the daily blog? Did someone rattle your jewelies?

Anyway, I glad to hear that your predictions are coming true, with the housing correction building momentum. When I hear someone having to sell their cottage or take on a second job to deal with a bloated mortgage, I’m going snap my fingers, Ali G style (Booyaka!) and say “Garth told you so, greedy mofo.” Then I’ll strut down Yonge st. air guitaring “Closer to the Heart” but replacing Heart with Garth.

http://www.youtube.com/watch?v=rs4qn_bHQQ0

#103 fancy_pants on 05.17.12 at 8:09 am

Eurozone crisis pushing up UK mortgage rates, Bank warns

http://www.myfinances.co.uk/mortgages/2012/05/17/eurozone-crisis-pushing-up-uk-mortgage-rates-bank-warns

…looking at the global forest through the trees, this will not end well

#104 Steve on 05.17.12 at 8:27 am

I inadvertently drove past Upper Unionville last week on opening day (Thursday) and it was a sight to behold, even from 16th Ave. The ‘circus’ even had tents! Made me think that publishing the ‘rules of the game’ for Van condos has been upgraded and taken to new heights. Then I heard the rest of the process, and the picture above confirms it: The majority of us (them?) are falling for whoever is serving up the latest razzle-dazzle. It is amazing to see how a site once short listed to become a landfill has ‘evolved’ into the latest ‘it’ burb.

We might be susceptible to leaving our thinking up to our glands, but we are also apparently susceptible to ceding control of those glands to others. Frightening!

#105 xman on 05.17.12 at 8:32 am

facts only GARTH. (distant gta pasture)

20 minutes by GO transit train to downtown torontos union station(near ur Bay Street banking buddies)

Recent school rankings place this areas schools as some of the best in Ontario/Canada

Angus Glen golf club (one of the best-can u say Canadian Open) 5 mins away

Newly constructed Downtown Markham 5 mins away.
You say real estate is local but yet it seems you know nothing of the area. This project is located in an area that is considered one of the best in the GTA.

no Garth im not a real turd dont really like them that much they put too much spin on.
I like ur blog but ur starting to put too much spin on also.

Have urself a great day. (I actually mean it)

#106 Herb on 05.17.12 at 8:46 am

#62 Disciple,

I have a suggestion for how you can save some more of your precious time: stop drivelling on this site.

#107 Herb on 05.17.12 at 8:48 am

#89 Soylent Green,

?

#108 mythbuster on 05.17.12 at 8:52 am

Garth, reading what you write I find it necessary to check Urbandic so frequently that I wonder: Do you spend half your day studying Urbandic, or do you author it?! :)

#109 Steve on 05.17.12 at 8:54 am

#29 Dan T on 05.16.12 at 9:47 pm Isn’t north Unionville really just Stouffville?

Closer to Orillia. — Garth

Ok, both the question and the answer are worth a pretty good chuckle.

For those from outside the GTA, the Upper Unionville development is (presently) a just de-topsoiled farmers field in Markham with a few sales centre/circus tents on the corner, oh, and a big parking lot for the buyers, er lottery entrants. It is basically at the edge of the continguous civilization represented by ‘GTA’. Most of the area north of there is still farmers fields. All of the area south of there is already 99% urbanized.

Stoufville is a few kilometers farther north and a few more farther east – a distinct town of about 40k people, surrounded by rural areas – farms and quarrys abound. It will take many decades before all the land in between is engulfed in the inevitable sprawl, even longer if the economy totally tanks.

Orillia is the last significant civilization to the north before you reach Muskoka (famed cottage country, now full of lakeside bargains I here), over an hour (at non-racing speeds) from the GTA.

So sure, they are all about the same.

#110 Dontcallmeshirley on 05.17.12 at 9:00 am

That Flaherty devil said it again, this time before a Senate banking committee.

“…government mortgage insurance not essential”

http://ca.reuters.com/article/businessNews/idCABRE84F10N20120516

#111 Gotthardbahn on 05.17.12 at 9:04 am

DELETED

#112 Dontcallmeshirley on 05.17.12 at 9:06 am

@ #90 TRT,

OFSI should do this first:

—-

All good ideas TRT, but each has a bit of mud on it:

1) Limiting amort to age is prejudicial. Mandatory life insurance addresses it. Plus what if older folks want a mortgage for a rental income property?

2) Cross referencing income with CRA is a no brainer, but it shouldn’t be just an indicator, not the sole arbiter. Why? Some folks have lots of “wealth” but they don’t work that much. Lenders don’t mind this.

3) Price ceiling restrains trade? Maybe charge more premium for more insurance?

#113 steev on 05.17.12 at 9:09 am

I think most of us don’t understand the definition of HAM, and should bone up on it before passing judgement on the people in that picture. Hot Money is by definition speculative, it’s not meant to be here for long. Here’s the generally accepted definition for it.

Hot Money: Money that flows regularly between financial markets as investors attempt to ensure they get the highest short-term interest rates possible. Hot money will flow from low interest rate yielding countries into higher interest rates countries by investors looking to make the highest return. These financial transfers could affect the exchange rate if the sum is high enough and can therefore impact the balance of payments.

HAM may as well stand for Hot Antarctic Money for all we care. You will never see the face of a hot money investor in your neighborhood. Even if the house next door is bought with hot money, it will likely be sold after a short period, it doesn’t preclude your kids from buying in your hood unless Canada stays hot for longer than a generation, which won’t happen. So, the people in that picture do not represent HAM, they represent greater fools.

No resentment required.

Cheers

#114 CrowdedElevatorfartz on 05.17.12 at 9:09 am

FOUND HIM !

#115 Inglorious Investor on 05.17.12 at 9:14 am

#58 Aussie Roy on 05.16.12 at 11:10 pm

“I see Steves idea as debt forgiveness to which you said yes.”

OK, first, when I say ‘paying down debt’, I mean the debtor pays it down, not a third party. Sorry if I misconstrued your intent. The point being, people should not expect someone else to pay their debts for them. Second, Keen’s idea is not debt forgiveness; it’s payment in full via currency devaluation. This approach will wipe out debts, but it will also wipe out all savings.

Aside from the fact that it is monsterously unfair to steal the wealth of one person to pay the debts of another, this would also destroy the capital base from which economic growth depends.

“Germanys problems were caused by printing too much money.[…] It was because of the demands placed on them to pay their debt.”
Yes, and Weimar’s solution is essentially Keen’s solution. Except in Keen’s proposal the money would be given directly to the people. As John Tamny pointed out to me, once a person’s debt is paid off, they’ll simply run up new debt. What do they care? Daddy government will just bail them out again, right?

So, I am not against debt forgiveness if it’s done judiciously. Debt forgiveness harms the creditors, who took the risk in the first place. Also, debt forgiveness is inherently deflationary, which means it can protect and even increase the value of existing money/savings.

———————————————————————–

#88 Derek R on 05.17.12 at 1:23 am

“Yeah but are we talking about printing enough money to pay off ALL debts? I don’t think that would be wise. Or necessary.”
Well, that’s what Keen is proposing, unless he changed his plan.

The home reno tax credit is not inflationary because, strictly speaking, it’s not creating new money; it’s just taking less of it from the people and channeling the difference into spending on a specific sector of the economy. Remember, we create the wealth, not the government.

In terms of taxes, aren’t we already taxed enough? The Fraser Institute’s tax freedom day for last year was June 6. In other words, everything we earned up to June 5 was only to pay taxes to the three levels of government. I say we should have less taxes and more policies that encourage savings, investment, innovation, production; and discourage the use of debt for consumption (e.g. cars, homes, tvs, vacations, etc.)

#116 helpful on 05.17.12 at 9:17 am

Prices wont go down, no more than 5-10% of original overpriced tag. So those ones who get exited because got a 10% haircut….it was already up significantly. Then it will come a period of frozen prices for years. No more 6-10% gain anually neither crash!

#117 disciple on 05.17.12 at 9:28 am

Glands, and their ancient association with botanical flora, can help us ascend to the “high”er realms. Spiritual ascent is our natural tendency, we just go about it in sometimes absurd and counter-productive ways. Well over half of Canadians need intervention for some type of addiction (I’m including twitter and tumblr and FB, and this illustrious blog).

As we age, the ability to alter our conscious state through our addictions starts to fade, and we begin to realize that we were always in that altered state, and had the ability to transcend at will, and did not actually need to indulge in our addictions to do so. Like in the recent Avengers movie, Dr. Banner says that his secret is that he is always angry. Think on this. It is only your cultural programming that is clouding your mind. Strip this away and you are affronted by your own nakedness like in the mythical Garden. The wisdom from thousands of years ago (probably millions) still faintly echoes and beckons. Truthiracy: Chrisopher Lord.

http://www.youtube.com/watch?v=QCiWf8XYKjg

#118 Dontcallmeshirley on 05.17.12 at 9:32 am

HAM shmam…how about a round of applause for the Italian builders?

#119 disciple on 05.17.12 at 9:37 am

Nostradamus… I found out today that Michael Rivero of WRH also played John Wenckus a passenger on Flight 11. Most photos have been pulled from the web but you can find one here: what say ye?

http://letsrollforums.com/alex-jones-sidekick-mike-t20826.html?s=94099e1571964360faa79a244bda58ff&

#120 timbo on 05.17.12 at 9:41 am

http://www.bloomberg.com/news/2012-05-16/italy-tax-agents-on-frontline-of-anti-austerity-backlash.html

“Italy will boost security measures against the rising threat of violence, including stepping up the use of armed forces to safeguard more than 14,000 sites across the country, the Interior Ministry said today in a statement after a meeting with the country’s top security officials.

The government has already raised alert levels at some sensitive sites and may even use the army to defend the tax agency, Interior Minister Anna Maria Cancellieri told newspaper la Repubblica in an interview on May 13. ”

Anger over taxes can lead to bigger problems. Thank god Italy has little debt….oh wait.
http://2.bp.blogspot.com/-JX1tch2MZpI/TjWCGcHu30I/AAAAAAAAClA/ry4m9NkVeZ8/s400/Italy-debt-to-GDP.png

interesting times indeed….

http://www.arabianmoney.net/us-stocks/2012/05/17/goldman-lays-off-all-its-facebook-ipo-risk-ready-for-the-issue-to-flop/

“This is also precisely the sort of issue that will drag down the market will it. Once Facebook shares fall then there will be a contagion to every Internet stock under the sun. Fair justice, they are all very overvalued right now after a second Internet stock market bubble.”

Goldman its ipo shares in facebook? If the market is fixed we shall soon see…….

#121 fancy_pants on 05.17.12 at 9:43 am

China Real Estate Unravels

http://chovanec.wordpress.com/2012/05/16/china-real-estate-unravels/

#122 Daisy Mae on 05.17.12 at 9:48 am

14ANONYMOUS on 05.16.12 at 9:07 pm

WHICH ONE OF THESE IS DIFFERENT FROM THE REST (which one has not popped yet)?

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

Well, it proves one thing — not one of these world ‘leaders’ can think for themselves.

#123 Karie on 05.17.12 at 9:54 am

Is this not a positive thing? This is great for the developer who is making lots of money, great for people in trades who will get a lot of business, great for Chinese people get to live in brand new homes with others of their same culture. If lots of people want to get in – you buy for your family if you can afford it, or you can buy and get roommates or buy and rent out part. People can set up accounting, law offices, restaurants, etc. servicing people of their culture. Even if the house falls 20%, you are only the greater fool when you’re selling. If you can buy and hold and live there a long time, wouldn’t that be fine?

#124 ANONYMOUS on 05.17.12 at 9:55 am

#82: Carpe Diem = Thanks for showing that link to the Ghost cities and ghost malls in China, I’ve been reading a lot about this for a few months now and it looks to me as if the Chinese economy is finally starting to crumble under the weight of all of this bad debt.

There is NO WAY any of that money that was used to build those cities and malls is ever going to be repaid back again, not even 10% of it will be repaid. This is going to go down as one of the BIGGEST real estate bubbles the world has ever known, HUNDREDS of times bigger than the bubble that popped in America !

If anyone wants to get a brief idea of what’s happening in China right now, just imagine if Harper wanted to keep the Canadian economy going by simply building a new duplicate of Toronto, somewhere in Bruce country (just West of Wasaga Beach a bit). Imagine that in the middle of nowhere, the building of thousands of totally empty office towers / malls / and apartment buildings were keeping millions of people gainfully employed, and that this was all done using borrowed money.

There was no hope that any of these places were to be filled, or even 20% filled, but that didn’t matter, the only thing that mattered was to keep the people happy and in jobs. How long do YOU think such a massive over-building and over-borrowing could continue?

Well, that is exactly what is happening in China right now; the world’s biggest bubble about to pop.

And Canada is currently in its own little min-version of our own, we are building condos that are remaining empty, and this will pop in the same way too. The only good thing coming out of it so far is that construction people have jobs, realtors have jobs, and for every one of these jobs there are 4 to 6 other jobs on the side that are created, just like what is happening in China with the growth of all of those GHOST CITIES.

#125 CP on 05.17.12 at 10:02 am

Garth;

http://www.torontostandard.com/the-sprawl/condo-bubble-death-watch

Participants at Bloomberg’s Canada Economic Summit asked that the rhetoric surrounding the bubble be toned down, with Gordon Nixon, CEO of Royal Bank of Canada, saying that, “there might be pockets of vulnerability but we remain quite comfortable.”

CBDW has learned that other participants – responding to on-going concerns about quality of construction in new condos that have dogged the industry since plates of balcony glass shattered and rained shards on the streets below last year- asked critics to “cool it.”

(Here’s the kicker:)

The summit released a statement saying, “Put it in perspective: Would you rather have to dodge falling glass every time you left your condominium, or would you rather be a building who can’t see because your glasses keep falling off?

#126 CP on 05.17.12 at 10:05 am

Stupid words. Likely most (if not all) in that photo were born here. Man, this blog smells of racist resentment today. — Garth

Prove it?

We’re not racists, we’re realists.

#127 KingBubbles on 05.17.12 at 10:17 am

Big slowdown in parts of Manitoba Cottage Country
The Muskoka Flu starting to spread ?

http://www.winnipegfreepress.com/breakingnews/Cottage-buyers-in-drivers-seat-in–Lac-du-Bonnet-area-151734145.html

#128 greed on 05.17.12 at 10:31 am

Garth very interesting comments on the blog today.
As soon as I saw the picture of these Asian people buying real estate in the picture I knew that we would see some wacky posts. I lived in Asia for about 7 years and would say that I find real estate here or there and Asian or Non-Asian is the same just people excited about spending money on their dream = to own a home/or profit from selling it later. Nothing strange or unique about this.
It is unfortunate that we as a group have to try to buy all at the same time. This urgency to be part of the group is what brings markets up and takes them down. Binge Buying…..it goes on with everything from Apple products to Cabbage Patch Kids(sorry I dated myself with this). People like to participate and own these coveted things of that time. It will never change there is no viable solution to the herd mentallity programed into the human brain it is a survival feature – group think because hundreds of years ago contrarians were hung from trees. As they say in Japan the nail that sticks out….well you get the picture.
The next Buying Binge hoisted up through the rafters for our entertainment will be Facebook. Yahoo!

#129 mousey on 05.17.12 at 10:31 am

Re: Post 97
I didn`t think your comment was idiotic. You make a valid point and GT – somebody pee in your cornflakes?

Back to real estate. Checked out the Vancouver Price Drop site. What a hoot! Some properties go down and then up a whopping $500,000 within weeks. Prices clearly being set on whimsy or advice from assylum.

#130 Ed from TO on 05.17.12 at 10:37 am

So Garth,
just so we have this straight.
Canadians citizens of Asian decent are jumping through these crazy pre qualifing hoops (entering draws) and paying stupid money to own a home.
Maybe you should have a chinese translation of your blog.

I hear they speak English. — Garth

#131 Victoria on 05.17.12 at 10:45 am

What if they were all attractive Swedish Hunks in that photo?

Or Sexy Swedish Stewardesses?

Or Brits with bad teeth?

#132 refinow on 05.17.12 at 10:47 am

Prices increasing still when sales are dropping…how can that be???

If you step back and think it actually makes a lot of sense. In Vancouver and even Toronto now, the outrageous prices that were being paid for “crack shacks” doesn’t necessarily represent the “Normal homes” in the area. Drive down any suburban street, there is always some “POS” style homes. (POS) Pieces of Sh*t. The speculators who stay too long at the the dance and go home with the “fatchick”, meteorically speaking. Grabs one of these POS homes, starts to dream of 6 digit profits when he fixes it up…

But either way, the dance is over, they have turned out the lights.

Now we have the the not in my back yardigans, finally coming to the same conclusions that the Housing dance is over, and start to list their normal….upgraded well kept for homes, that they initially list for prices well above what that POS sold for down the street. But no offers come. So they either take their home of the market, with hopes of a better future market, which we know is not coming…. Or the smart ones realize the dangers that are approaching and start to drop their prices.. It gets really tough when the price approaches what that POS sold for… last month… But the smart ones will still hang in, and consider another price drop.

Now some Greater fool comes in thinking he is getting the deal of the century because he just paid less then what that POS sold for down the street.

These prices are still higher then the average sale price of last month.

But the nice upgraded house that was owned for many years still sells at a profit because the previous owners, bought that home many years ago, looked after it loved it, invested real money and time, maintaining that home over the years, still sold for profit…No loss can be detected. They bought it X# of years ago and sold it for many times the the purchase price…..

But what we have is when people are blindly purchasing crack shacks for $1,000,000 + it represents the final apex of the start of of a massive housing correction. Happened in Vancouver……Plain as day…happened in Calgary before that….. Now it is happening in Toronto……

Number of sales should be the only thing we look at to determine the strength of the market, and even that is skewed with the increase in population over the last 20 years…

Time to listen to chicken little…

Garth you got room for me and my 3 kids on your ark ??

#133 Ed from TO on 05.17.12 at 10:49 am

DELETED

#134 thinker on 05.17.12 at 10:49 am

Canada has seen this type of problems before with China, it was in 1885.

The Chinese head tax was a fixed fee charged to each Chinese person entering Canada. The head tax was first levied after the Canadian parliament passed the Chinese Immigration Act of 1885 and was meant to discourage Chinese people from entering Canada after the completion of the Canadian Pacific Railway. The tax was abolished by the Chinese Immigration Act of 1923, which stopped Chinese immigration altogether, except for business people, clergy, educators, students, and other categories.[1]

http://en.wikipedia.org/wiki/Head_tax_(Canada)

Disgusting then, disgusting now.

#135 DUI on Money Road on 05.17.12 at 10:49 am

#85 Waterloo Resident on 05.17.12 at 12:57 am
———————————————
They are Canadians of Asian (likely Chinese) descent.

Just like you are likely Canadian of Irish or Scottish or English or French or Italian or German or Jamaican or African or Australian or Russian (AKA Asian) etc. descent.

#136 Dontcallmeshirley on 05.17.12 at 10:56 am

@ #121 Karie,

Is this not a positive thing? This is great for the developer who is making lots of money, great for people in trades …

—-

It’s great for the folks you mention, but to the larger entity – Canada – it produces not a single incremental dollar.

Trading houses, selling new houses, only shifts money from one citizen to another citizen.

Lots of of our economy is redundant like that, but Carney and Flaherty are saying now that there’s too much redundancy.

#137 disciple on 05.17.12 at 11:00 am

#106 Herb… Thanks for the suggestion. I’ll add it to the pile of useless comments in my deleted bin, you know, like all the racist rants in the comments section today… Sheesh, apart from stealing from productive Torontonians, there is not much else to do in Ottawa, eh?

#138 broadway skytrain on 05.17.12 at 11:03 am

WASHINGTON (MarketWatch) – Business conditions at manufacturing firms in the Philadelphia region worsened in May, according to the monthly survey issued Thursday by the Federal Reserve Bank of Philadelphia. The Philly Fed index fell to -5.8 from 8.5 in April, well below expectations. Economists polled by MarketWatch had expected the index to increase to 10.0. Reading below zero indicate that more companies are contracting instead of expanding. The new-orders index dropped to -1.2 from 2.7 in April and the employment index, a gauge of hiring expectations, also turned negative.

and

us mtge rated set new record low

and

and Fed to ease further if reqd’…..

tells me no rate hikes near or far, and keep shorting stocks!

#139 John on 05.17.12 at 11:12 am

Waterloo Resident:

“Wow, WALL-TO-WALL ASIANS !!!

And only one white dude selling them the crap !

Look at him, he’s laughing so hard he can barely contain himself !

When those asians lose 20%, they are going to find him and kill him !”

—————-

Waterloo Resident is miserable. There is no crime in this, but it’s a fact. There’s nothing funny or clever about your comment.

You lose because you have to support that pain 24 hours a day.

I have a Korean friend here in Santiago and you might see someone of her culture literally once a month. And many Chilean people call her “Chinita”. It’s harmless
( annoying though) because the people have no experience with this.

On the other hand you do, and are pretending to “laugh” about it. The people in the picture don’t give a crap about you “20%”, they are interested in LIFE. It’s called community. And it’s a fine community.

Think about it. You’re being a dick. A comment which matches the strength of the misery, hidden by a joke.

#140 LSD on 05.17.12 at 11:15 am

I doubt anyone in that pic is not a citizen. What an idiot comment. — Garth

Touched a nerve have i garth? You’ve been programmed well to turn a blind eye to reality. Of course you will adjust the circumstances to always suite your argument. Your arrogance is starting to get the better of you.

No nerve, but you do repel me. Send us a picture so we can judge you. — Garth

#141 Steve on 05.17.12 at 11:16 am

Definition of PREJUDICE
1: injury or damage resulting from some judgment or action of another in disregard of one’s rights; especially : detriment to one’s legal rights or claims
2a (1) : preconceived judgment or opinion (2) : an adverse opinion or leaning formed without just grounds or before sufficient knowledge b : an instance of such judgment or opinion c : an irrational attitude of hostility directed against an individual, a group, a race, or their supposed characteristics

Definition of BIGOT
: a person who is obstinately or intolerantly devoted to his or her own opinions and prejudices; especially : one who regards or treats the members of a group (as a racial or ethnic group) with hatred and intolerance

#142 LSD on 05.17.12 at 11:16 am

DELETED

#143 bill on 05.17.12 at 11:18 am

”When, one day, you’re shocked to find every house on your street has been bid up by HAM and your kids have no hope of ever affording a home, you suddenly care…”

What a load of crap.
I sure dont care. My parents dont care either. My dad says the ‘new’* Canadians [from taiwan and hk for the most part] are the nicest ,quietest neighbors he and mom have ever had and they dont want to borrow the ladder, lawnmower or any other garden implement .
When I was a lad there were mx bikes running around on the streets and loud explosions from various pyrotechical devices not to mention a pile of juvenile boomers loose and undersurpervised so to speak.
not to mention neighbours that thought it was their birthright to borrow the extension ladder….

* many arent exactly new anymore as they have lived here for 20 plus years now.

#144 truth hammer on 05.17.12 at 11:21 am

I would have to guess that the people in the bottom picture are either smart….they have figured out that Carnage Carney is just blowing hot smoke up everyones arses and has no intention of doing anything on rates except talk about them in the hopes that ‘sausion and jawboning’ bring about the change F desires….or…….they are complete idiots who read the ethnic papers where commentary is strictly the domain of the pimps…..which is it?

Will RE continue to inflate along with the ZIRP continuum…..? All the ‘rule changes’ in the world don’t change a thing as long as money is being shoveled out the door. After all….there is more than one way to qualify for a loan…….sleazy pimps are very persuasive….and creative.

I have noticed a lot more ‘articles’ relating to granny bashing……..look for other repititious ‘articles’ and draw your own intelligent conclusions…….always remember that Canada has no ‘fair disclosure’ laws……the media has free reign to lie lie lie lie lie without any comeuppance.

http://www.theglobeandmail.com/globe-investor/personal-finance/tax-matters/how-the-bank-of-dad-and-mom-can-help-your-child/article2435080/

#145 bill on 05.17.12 at 11:21 am

#124 CP on 05.17.12 at 10:05 am
why dont you prove it cp?

your a realist?? Not really. unreal I would buy tho’….

#146 WPG_Savant_Syndrome on 05.17.12 at 11:26 am

For all you non Winnipeggers that pic is of HAL Anderson and he was voted the 34th Greatest Canadian of all time.

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

That guy is freaking awesome!

#147 Junius on 05.17.12 at 11:27 am

#58 Aussie Roy,

Inglorious investor does not understand Steve Keen. I agree with you.

Keen does not advocate more debt or more printing. He thinks there should be a global debt write-down. He is arguing against a straw man.

#148 truth hammer on 05.17.12 at 11:28 am

BTW….isn’t it interesting how Canadians display their ignorance by jumping over the other by proclaiming to ‘catch a rascist’ in the act. It took thirty years of Liberal brainwashing , gag laws, billions in government advertising to create a society where the truth must not be spoken……otherwise we all jump through the Pavlovian hoop and start ratting on one another…..unbelievable…..you’re right Garth….you’re blog is quite pathetic. The politically correct Liberal drama queens are refusing to leave the stage.

#149 Arshes on 05.17.12 at 11:33 am

#81 Jim on 05.17.12 at 12:39 am #41 John,

It is a sad reflection on our moral degeneracy that Chinese people who wish to live in highly homogeneous communities are to be praised as ‘protecting their culture’, while Europeans who attempt to do the same thing are called racists.

I’m okay with Chinese people. I’m okay with them creating ethnic enclaves. I am not okay with the double standard that white people are nazis for wanting the same thing.
——————————————————–
Maybe because there is no “white” culture?????

Theres Italian neighborhoods, Polish, Ukranian, Irish, etc. but everyone around you being white is not a “culture.”

#150 Jack on 05.17.12 at 11:44 am

Not sure if Garth would allow this comment, but I have something to say about the picture.

Nope. DELETED — Garth

#151 Balmuto on 05.17.12 at 11:48 am

What is HAM? Obviously Canadian citizens of Chinese descent are not HAM. But what about recent immigrant from China that works and lives here but has family (and family money) in China, investments and savings in China, maybe owns property in China, etc. Has one foot in either country, so to speak. Like the guy I just sold my condo to – he lives and works in Toronto, but he had to get a wire from a bank in China for the downpayment on the mortgage. I would consider this HAM – because the money is coming from China (probably family money). The important thing is the money flow, not the ethnicity of the buyer. When the money flow dries up (or even starts going the other way, as Chinese investors sell their Canadian properties to cover losses in their own real estate market), it will have a significant impact on our market.

#152 spaceman on 05.17.12 at 12:13 pm

“The average price for waterfront sales was $369,351 in March 2012, down 45 per cent from a year earlier.

The non-waterfront residential average price was $220,228 in March, an increase of six per cent compared to March 2011”

Now that is interesting… obviously water front was in its own little bubble…

#153 John Prine on 05.17.12 at 12:25 pm

27 coastal on 05.16.12 at 9:39 pm
“And in Victoria these days a stunning 151 houses priced between $1 million and $2 million are on the market in a small city where the average household earns just $76,650. Sales, as you might imagine, suck. Says one experienced realtor, “Anyone who wanted into this price range and waited six months, just saved $500,000.”
—————————————————————–

Greater Victoria including Esquimalt, Saanich and Oak Bay. Todays listings…..

Total Residential listings 1,789

Listings over 1 Million 185

Sales last 7 days 68

Sales over 1 million 7

Not much demand for anything this spring season.

#154 Farmer Fred on 05.17.12 at 12:26 pm

Yep, when oil goes to $200 a barrel, the words of economist Jeff Rubin will come true and these McMansions in Unionville will be torn down and the land plowed back to agricultural use. Looking forward to seeing corn and barley fields instead of these ugly monstrosities.

#155 Daisy Mae on 05.17.12 at 12:39 pm

#99 Beach Girl: “I used to live in Unionville. When it was Unionville. Beautiful. Honestly it was. I hate going back there. Nice Chinese food and the like. I am not racist, don’t really care. But it is totally non-white.

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

“Assimilation usually involves a gradual change and takes place in varying degrees; full assimilation occurs when new members of a society become indistinguishable from older members.”

So tell me……when ethnic groups form their own communities, seemingly excluding others, are they becoming ‘indistinguishable’?

#156 Tom from Mississauga on 05.17.12 at 12:39 pm

Yup, the GF’s parents cottage in Muskoka has 9 properties in walking distance that can be bought for the back taxes. She mentioned we should buy one as an investment. My ribs almost broke from laughing so hard. And she didn’t know she had a sense of humour!

#157 Mike on 05.17.12 at 12:44 pm

Wow. Pigeon Lake prices dropping 20%. For those of you not from Alberta, Pigeon lake is the be-all, end-all highly coveted lake just south of Edmonton.

And I’m amazed that there’s not more news on all these Chinese ghost cities. I’ve been reading about them for a few years now on the odd article, but no serious coverage.

#158 Arthur on 05.17.12 at 12:52 pm

I think my early 30’s coworker is the greater fool. After being unable to buy where he wanted in Vancouver (not qualifying for enough) he has bought a house in North Van. He wouldn’t tell me how much his down payment was but needed CHMC insurance. He needs to put in a suite right away. He can make payments without but probably not once his spouse has a kid and goes on maternity leave.

He even knows housing will probably go down but he said he doesn’t care as he plans on retiring in this house.

#159 shanks on 05.17.12 at 12:56 pm

here vlad, a nice link for you:
http://www.youtube.com/watch?v=GicOsOY6oO8&feature=related

funny if you look at the cbc website, the big front page is Donna Summers and Quebec students, but if you look a little deeper at the business section you the beginings of a run on spanish banks… 1 billion in cash in less than a week in withdrawls! to me, that is news.

#160 Skiffy on 05.17.12 at 1:01 pm

#128

Here you go: http://translate.google.com/translate?sl=auto&tl=zh-CN&js=n&prev=_t&hl=en&ie=UTF-8&layout=2&eotf=1&u=http%3A%2F%2Fwww.greaterfool.ca%2F

Send it to all your non english speaking friends

#161 greed on 05.17.12 at 1:07 pm

http://vancouver.openfile.ca/vancouver/text/space-cases-100-years-complaining

#162 Bubbleshooter on 05.17.12 at 1:12 pm

Hey Garth,

Just to clear something up…. Thinker (#67) may actually be Chinese. He had CBC under the post. That stands for Canadian Born Chinese in some circles. Just speculating.

#163 Devore on 05.17.12 at 1:21 pm

#98 bigrider

I would think that with your practical approach to personal finance you would subscribe to a more ‘austrian’ view of the world.

Even if one has an Austrian view of the world, one has to be realistic and recognize that we live in a Keynesian economy, and Keynesian policies will be used in response to economic conditions. As an investor, you have to be able to predict the future to some extent, and this means Keynesian outcomes, not Austrian, whether you agree with them or not.

The practical approach is to deal with what is, not what should be. Check your idealism at the door.

#164 tkid on 05.17.12 at 1:22 pm

Lovely photo! I like this one as much as I did Joy.

#165 Steve on 05.17.12 at 1:25 pm

#150 shanks on 05.17.12 at 12:56 pm

There is no context! How does $1b in a week compare to a typical week? A real run on a big bank would certainly be bad, but apparently all that is needed is the suggestion of one to start the panic ball rolling.

The bank’s response, unfortunately, could mean either that it is not happening, or it is happening and they are denying it in an attempt to dampen effects.

Only time will tell, but let’s not jump to conclusions… Or we could go with (as Garth often says) if it is published by MSM, then it must be true…AAAHHHHHHHhhhhhhh

#166 Still Renting on 05.17.12 at 1:25 pm

Capital Economics seems to be a reliable source of economic analysis that you have referenced from time to time. In recent months, they has been predicting that, contrary to Flaherty’s warnings, the BoC will actually cut rates to 0.5%. That would be stunning to say the least. What are your thoughts?

http://business.financialpost.com/2012/03/02/will-slowing-gdp-growth-drive-boc-to-cut-rates/

http://www.capitaleconomics.com/canada-economics/bank-of-canada-watch/bank-of-canada-unlikely-to-raise-rates-anytime-soon.html

You’d better hope that does not happen. We’d need to be in a near-depression. — Garth

#167 Canadian Watchdog on 05.17.12 at 1:42 pm

ON SALE 10% Down Payment – 5% Cash Back – Limited Offer *Toronto – It’s Different Here” Black T-Shirt*

http://i45.tinypic.com/157nrf7.png

#168 Blacksheep on 05.17.12 at 1:45 pm

“DELETED. Posted 11 times, and useless in each instance. — Garth”
——————————————-
Wow, that must be a record. Seems many dogs see things….differently.

“They show extraordinary intelligence, even problem-solving intelligent.”.

“That one… when she looks at you, you can see she’s working things out.” circa: 1993 Jurassic Park

take care
Blacksheep

#169 John on 05.17.12 at 1:56 pm

It’s good that the deeper dynamic of real estate is revealed with the “enclave” issue. Very positive that all is put up on the table.

I’m not at all a liberal, brainwashed sheep…who lets others think for me. So where would I fit in? What’s my label? If a community desides to build up a certain area and join based on VALUES and CULTURE…c’mon. That’s the idea. That’s as good as it gets. Others might choose to live in different communities. We still have FREEDOM.

Plus, this comment ( below) quickly unmasked the nonsense. “White” people. Lots of “culture” in that term.
——-
There are Italian neighborhoods, Polish, Ukranian, Irish, etc. but everyone around you being white is not a “culture.”

#170 EdmontonJim on 05.17.12 at 2:00 pm

How is this continuing?

Who are these people still buying houses in Toronto for greater and greater amounts of money? I would understand if median wages were rising to match, but they’re not.

There is a cultural factor at play here, but it is not necessarily Asian. It is simply old-world.

In the Old World, rentiers were the wealthy ones, so owning land was the way to get wealth. But here in Canada we don’t have any shortage of land. It still has value of course, but only in terms of proximity. Land here derives its value not by what can be produced on it, but what it is close to.

When did we lose sight of that? I know the addage ‘They’re not making any more land’ is still true, but if people haven’t noticed, we’re not running out of it either.

To make matters worse, the government confused a shortage of affordable housing with a shortage of affordable real-estate. So they subsidised the purchase of land (which is not in short supply) instead of the building of smaller houses (which is still in short supply). Real geniuses there.

So here is a quick and dirty solution to ensure these things never ever happen again:

All new mortgages can only be as large as the ammortized value of the improvements (existing or to be completed within 24 months). No loans can ever be backed by land again (except as collateral).

The bank can still make loans to buy land, but they will not be insurable, and they cannot go on the banks books as an asset-backed loan. So if you want to buy that $2 million 2 bedroom in Vancouver with a loan you still can, but the bank will give you two loans: A mortgage at 3% for $100,000, and an investment loan at 8% for $1.9 million.

#171 Vancity on 05.17.12 at 2:03 pm

What disqusts me about that picture is it’s 99% Asians. What’s wrong with this picture?

What’s wrong with you? — Garth

#172 disciple on 05.17.12 at 2:10 pm

Daisy Mae…”seemingly excluding others” – That’s self-serving a little, don’t ya think? Blaming the victim? Even on this blog, there is considerable ignorance concerning the constitution of what “Asian” means. There are deeply contrasting cultures within the Orient. But oh no, let’s just put everyone in a little box with a label because it makes us feel better? Thus, is our much-lauded educational system an outright failure.

Prejudiced people end up being the ones victim to their own ignorance. The rest of us should know better.

#173 JRH on 05.17.12 at 2:21 pm

Good point Jim, #81

#174 TRT on 05.17.12 at 2:26 pm

Jason Kenney Immigration minister has a question and answer session with the Globe and mail.

It is clear that Kenney wants to dramatically increase immigration rates. Looks like his party will lose in the next election.

Oh, it sucks to have to relearn Punjabi again…only way to be successful in the new Canada, otherwise it is a huge disadvantage.

http://www.theglobeandmail.com/news/national/time-to-lead/immigration-minister-jason-kenney-answers-reader-questions-in-video-qa/article2433574/

#175 LSD on 05.17.12 at 2:26 pm

No nerve, but you do repel me. Send us a picture so we can judge you. — Garth

All i have done is point out your hypocrisy, then you aggro’d big time. I have said nothing bad or negative about asians. But i do find it interesting how you persist in trying to cast me as a racist. Which is obviously a smoke and mirrors attempt to deflect your erroneous thinking.

#176 EdmontonJim on 05.17.12 at 2:26 pm

You’d better hope that does not happen. We’d need to be in a near-depression. — Garth

I hope that does not happen, but theres always a risk. It is possible that another crisis in Europe could spark a near-depression.

There is another alternative however; a lowering of interest rates combined with tighter lending restrictions and higher government spending could be used to create a targeted inflation scenario. The chances of the BoC and all levels of government cooperating in such a blatantly manipulative and politically suicidal scheme is less likely than a depression though.

#177 Still Renting on 05.17.12 at 2:35 pm

Wow, there’s a lot of anti-Asian/anti-Chinese sentiment on the comment board today.

Here’s a different perspective based on my experience: I’m 41 and have lived in the same neighbourhood in Toronto all my life, with the exception of a couple of stints working overseas (which I would highly recommend to many of those here who need to broaden their horizons). When I was a kid, the Asian community in my neighbourhood was fairly small. Since then, the number of Chinese and Korean immigrants settling here has grown enormously. Some people resent this change and I’ve certainly heard many xenophobic comments over the years about the changing face of the neighbourhood. However, as someone who has experienced this transition first-hand, I can honestly say I have seen nothing but benefits.

The neighbourhood is now far more vibrant. Run-down storefronts have been replaced by well-kept new businesses that display a true pride of ownership, There is a great diversity of tasty restaurants; there’s a nightlife where none existed before; and the street explodes in jubilant celebration whenever Korea’s soccer team wins a match.

I always have to walk my dog through this neighbourhood very late at night (he just can’t hold like he used to). We pass by many Asian late-night hangouts, such as clubs, karaokes and 24-hour restaurants. Lots of young, mostly Asian kids (teens – early 20s) gather in front of these places to talk or have a smoke. In many cities, this mix of youth, alcohol and late-night partying can lead to trouble. But I can honestly say, I’ve never seen the slightest bit of trouble in all these years. None of these kids hassles anyone, they’re just having a good time and they’ve always been good-natured in any interaction I’ve ever had with them.

The influx of Asians has certainly changed my neighbourhood dramatically. But it has changed it for the better! They have completely revitalized the area. What was once a sleepy, boring, somewhat dilapidated area, is now a friendly, diverse, fun community, pulsing with life.

So lighten up people. There’s no Asian invasion. They’re just hard-working people like you and me who come here wanting to give their families a better life. And for the most part, they contribute far more to their new communities than they take.

#178 Daisy Mae on 05.17.12 at 2:35 pm

#135 Don’tcallmeShirley: “Trading houses, selling new houses, only shifts money from one citizen to another citizen…”

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

And….land transfer taxes to provincial governments.

#179 Harlee on 05.17.12 at 2:50 pm

#98 bigrider
I have only the basic understanding of Keynesian and the Austraian economic theories but the impression I get from Garth is that he believes in a “common sense”,balanced approach to finances.For individuals and goverments.Unfortuntely “common” sense isn’t all to common these days. We (personally,and as a society)all to often ignore fundimentals for short-term gain and then suffer for it later. I think this what Garth is trying to get through to us ,without pushing any particular theory.Maybe Garth does subscribe to some classical economic ideas but to me it’s the message that’s important,not what label you want to stick on it.

#180 J.I.M. on 05.17.12 at 2:54 pm

Mr. Turner
I notice that you occasionally post pictures that feature people of one visable minority; which routinely generates comments that you , and many others deem rascist, ignorant, xenophobic etc. You then chastise, or outright delete these comments.

Perhaps you could avoid posting said pictures.

#181 Nostradamus Le Mad Vlad on 05.17.12 at 3:04 pm

Horsetrading

Last Tuesday Prime Minster Harper got off the helicopter in front of Parliament Buildings — carrying a baby piglet under each arm.

The squared-away Mountie guard snapped to attention, saluted and said:

“Nice pigs, sir.”

Harper replied:

“These are not pigs. These are authentic Arkansas Razorback Hogs.

“I got one for Minister of Defense, Peter MacKay, and one for Minister of International Cooperation, Bev Oda.”

The squared-away Mountie again snapped to attention, salutes and said,

“Excellent trade, Sir.”
*
#119 disciple — Good work. I stopped reading Alex Jones’ work when his true side (zionism) came out, and as with with Harper, Rae and Mulcair, their only duty is to serve one country, and it isn’t Canada. wrh.com is a great site for all the stuff that the m$m won’t let us read.

#123 ANONYMOUS — “This is going to go down as one of the BIGGEST real estate bubbles the world has ever known, HUNDREDS of times bigger than the bubble that popped in America !” — This could be one way China gets back at the US, by bankrupting itself first, calling all their IOUs from the US (putting it close to bankruptcy), then dropping one of their two currencies and rebuilding from there.

#142 bill — “My dad says the ‘new’* Canadians [from taiwan and hk for the most part] are the nicest ,quietest neighbors he and mom have ever had . . .” — Agreed. The better half is from HK, and they are great people. Unlike us, they work very hard, tend to keep their opinions of others to themselves, mind their own business and have a live and let live attitude.

#158 shanks — Great link. Interesting that the announcer said at the beginning ‘people feel that something is changing, but don’t know what’, or similar words.

He is right, of course as none of us in this present lifecycle remembers what a cycle change is like (rebirth is part of the process in the lower psychic regions). That is what is happening now, a cycle change from the caucasian to the oriental races. Should be completed in a couple of decades.

#182 mel in victoria on 05.17.12 at 3:07 pm

Watch out below!!…

Bank shares dropping like a huge turd from a long legged cow!!

#183 Sebee on 05.17.12 at 3:09 pm

Stupid words. Likely most (if not all) in that photo were born here. Man, this blog smells of racist resentment today. — Garth

HAM = Hot Asian Money. Like, from “Asia.” It does not mean people who look different than you, and were born here. — Garth

Garth,

Surely you know that picture tells a thousand words. And surely you know the reaction to these photos is predictable. Therefore, if you are reporting and documents it like it is, simply filter the comments that are inappropriate and don’t allow it on your blog. Even if they are to illustrate the public preception – accurate or not, why waste time defending it. Otherwise, your defence of those in the photo and your assumption their birth is Canada without proof puts your otherwise well researched daily reads in question about accuracy.

Reality is, there is not a single person here who can prove the identity and birth/citizenship of the individuals in that photo. And it’s only their checkbook that matters in anyway. I don’t believe it’s against the law to overpay for something. Ideally it would be fantastic to balance photos where Chinese buyers line up to buy up a development with photos of Canadians of all shapes and colours doing same and that will quiet down this storm in a tea cup.

#184 Harlee on 05.17.12 at 3:11 pm

#171 disciple
And thank you for a good post with some real sense to it. I actually feel sad for people who let their prejudiced views blind them. As you say in the last two lines of your post: THEY are the ignorant ones.

#185 Deb on 05.17.12 at 3:32 pm

For the second time, Parliamentary Budget Officer Kevin Page has reported that the federal government can afford the current system of Old Age Security. Page added that it is not necessary to make younger Canadians wait an extra two years to receive benefits.

It is now clear that Stephen Harper, Jim Flaherty and Diane Finley are hoping that Canadians will accept their argument of OAS unsustainability, based not on economics, but on raw ideology. We will not be fooled again.

#186 NFN_NLN on 05.17.12 at 3:34 pm

#103 Buy? Curious? on 05.17.12 at 7:59 am

2 questions: Why are you surprised about the racist feedback when you post pictures of Chinese (with Canadian citizenship, of course) people beating other Canadians at the money game? You know whiny racist remarks is the mating call of a loser. And…..

Sorry, did you mean to say “money game” or “borrowed money game”?

#187 Chris on 05.17.12 at 3:42 pm

What is the point of moving your list price up and down and all over the map like what’s been going on in Vancouver, other than to attract more attention for those buyers searching MLS at a specific price point? (Ie $500-550K)

I don’t know about in Van or elsewhere, but in Saskatoon, any realtor can look up the property’s history up to 10 years back. List and selling price. So any realtor with half a brain that genuinely is looking out for their buying-clients best interests should be able to easily tell if the listers are on crack and listing the house all over the price spectrum.

It doesn’t make sense? To me it reeks of desperation by the seller.

#188 Onthesidelines on 05.17.12 at 3:52 pm

Stupid words. Likely most (if not all) in that photo were born here. Man, this blog smells of racist resentment today. — Garth

Actually neither you nor anyone else can tell whether these people are Canadians or not from that photo.

And, by the way, Multiculturalism as a national policy is STILL very much an ONGOING experiment. Assimilation is not a given nor proven.

Tolerance of cultural differences, tribal behavior and alliances based on ethnic cliques gets pretty thin when things start to get tough.

Just remember, many Poles and Germans stood by and did nothing when their Jewish neighbors got rounded up. Japanese murdered their Korean neighbors during the Great Kanto earthquake.

You are naive to ignore recent human history.

Multiculturalism is not assimilation. The rest is unworthy of a response. — Garth

#189 Spiltbongwater on 05.17.12 at 3:57 pm

I like Chinese, I like Chinese, they only come up to your knees…. Love that Monty Python song, but alas, Monty Python was a bunch of racists apparently.

#190 Toronto_CA on 05.17.12 at 4:08 pm

Have to agree with others that photo is just inviting controversy. We really don’t know if those are mostly Cantonese born people living in Canada (my guess) or Canadian born people of asian descent (what Garth insists) or any other possible combination of asian/Canadian ancestry. And it really shouldn’t matter, because no matter what background they have, *no one* should line up like sheep to buy a million dollar house like they would to buy the latest iPhone.

But putting that particular picture on a blog about the housing bubble in Canada is a beacon for racism.

I think more telling is the recent article in the G&M that pinned the decline in sales/prices of Vancouver on the lack of foreign buyers (HAM perhaps); after many people insist the foreign buyers don’t have influence on the bubble. Who is right?

#191 Gypsy Kid on 05.17.12 at 4:09 pm

Wow. Beach Girl. You remind me of this ignorant racist woman who lives in my neighborhood…she also claims not to be a racist while trashing people of certain races and saying things like oh i remember this neighbourhood when it was white, blah blah blah…i guess back then it was trashy.

#192 bigrider on 05.17.12 at 4:16 pm

Day 1 of a U.S dollar collapse .

http://www.youtube.com/watch?v=hir7limRXUk&feature=related

#193 upper unionville on 05.17.12 at 4:20 pm

I totally agree with #106 xman

I myself is a Chinese living in Markham. Upper Unionville is sitting at an ultra prime location and should not be compared with Orillia or Stoufville or Milton.

In general Garth’s logic make sense, but the truth is, chinese who can afford a house there will not be squeezed financially even there is a downturn. Many people have help from family and you dont need to be ultra rich to own a $1m house there. A regular two bedroom small condo in HK would cost just as much.

So for this specific niche of ppl, Garth’s view just wont hold. Those are real house users who have the dough. They want to live in a quality community with quality house. They are not fippers or speculator. They are not leveraged as you would imagine.

#194 The American on 05.17.12 at 4:21 pm

Vancouver home prices down 10% YOY… That’s already 25% of the way there in way of the market correction with my prediction. As I said before, Vancouver market will correct in excess of 40%. GUARANTEED.

#195 Ozy -where do you move the 40% bankrupt homeowners? on 05.17.12 at 4:22 pm

Where do you move the 40% bankrupt homeowners?

#196 Mister Obvious on 05.17.12 at 4:24 pm

#177 J.I.M.

“Perhaps you could avoid posting said pictures.”

————————————–

You bet… in future all pictures should be screened for correct socio-political ethnic balance.

Have you listened to yourself?

#197 Devore on 05.17.12 at 4:24 pm

#177 J.I.M.

Perhaps you could avoid posting said pictures.

Or, perhaps, he can continue to do what pleases him, and the bigots can think about what they’re saying. Why would you censure yourself just because it might cause someone to say something inappropriate? How is that your problem?

#198 Ozy -where do you move the 40% bankrupt homeowners? on 05.17.12 at 4:26 pm

Price wise, they should easily afford bankrupt america, if they liberalize the immigration…kanatian foreign minister/lobby to work hard

#199 bigrider on 05.17.12 at 5:15 pm

#193 Upper Unionville.

“Ultra prime location ” ? Really ? Why? and for who? Asians only or others?

Explain please. What could possibly be ultra prime about ‘upper unionville’

#200 LSD on 05.17.12 at 5:18 pm

DELETED

#201 Lemur on 05.17.12 at 5:40 pm

Garth, not meaning to stoke the fires too much, but why did you go off on LSD about citizenship? LSD didn’t mention anything about the asian buyers being citizens or not?

#202 BPOE's BrainFart on 05.17.12 at 5:51 pm

Folks,folks,folks,folks, your still not getting it!
HAM is rolling across Canada like a rice steamer-oller .
As my good friend Tom Vu used to say before he went to jail,” Your friends are ALL Losers! Dont hang around with losers!”

so before any of you get ideas about buying just remember.
HAM has bags and bags of money to spending buying up your formerly glorious country! Stop trying to compete!

HAhahahahahahahahahahaahhaahah

#203 J.I.M. on 05.17.12 at 5:52 pm

@197 Devore

As we censor others, so must we censor ourselves!

#204 harden on 05.17.12 at 5:58 pm

Re: #21 Fleabitten Monkey

It’s difficult to get an accurate read from average price. Statistics aside, what IS fact is market sentiment has changed in Vancouver (actually about 6 months ago). Prices are soft. Of course sales are occurring but buyers can afford to be very picky – there is no urgency to buy. Realtors and Global TV continue to try to spin the market as ‘balanced’ – but who in their right mind believes prices in Vancouver will be anything but lower than they are today in August? No wonder there are reports of people walking away from their deposits.

#205 Harry Palms on 05.17.12 at 5:59 pm

#106 xman on 05.17.12 at 8:32 am
facts only GARTH. (distant gta pasture)

20 minutes by GO transit train to downtown torontos union station(near ur Bay Street banking buddies)

You have to actually get inside 416 to have a GO commute in the order of 20 minutes, but hey, you were only off by 2/3……if the switches aren’t frozen.

GO’s morning schedule shows 33 minutes from Unionville Station, and 40 ish or better from most of the rest of Markham. To add insult to injury, I’m guessing you don’t even get a seat by Unionville on the busier trains……I remember the drill coming in from a West Lakeshore stop.

I thank my stars every day that I don’t have to deal with this track 6 BS…..

#206 Westernman on 05.17.12 at 6:09 pm

DELETED

#207 Onthesidelines on 05.17.12 at 6:15 pm

Multiculturalism is not assimilation. The rest is unworthy of a response. — Garth

While Multiculturalism does indeed demand a lesser degree of assimilation ( at least in theory) than the American Melting Pot model, you are gravely mistaken if you think any society can coexist peacefully in both good times and bad without assimilation on the very basic values it cherishes.

The real question, of course, is what is culture. Does it include values and, if so, what are the core Canadian values that we expect all Canadians to embody regardless of ethnicity?

Shall we allow sharia law to co-exist in certain communities alongside civil and criminal law? – to give an example of an issue facing Britain?

Not worthy of comment. Right, got it.

#208 Westernman on 05.17.12 at 6:25 pm

Westernman @ # 206,
Too much truth for the sheeple to handle I guess…

God, you are tedious. — Garth

#209 pjwlk on 05.17.12 at 6:32 pm

#102 Gypsy Kid Said: To: The Real Jimbo; You were only being “racist” because you singled out a particular “race”.
—————-
Speaking of singling out one particular race, seems like the “Upper Unionville” developer was pretty successful in doing just that with his you must apply to be invited to buy a home routine…

#210 LS in Arbutus on 05.17.12 at 7:08 pm

#194 The American on 05.17.12 at 4:21 pm Vancouver home prices down 10% YOY… That’s already 25% of the way there in way of the market correction with my prediction. As I said before, Vancouver market will correct in excess of 40%. GUARANTEED.

———————

40% is my GUARANTEED correction prediction as well. It could be as high as 50%… and, potentially more.

#211 Tony on 05.17.12 at 7:16 pm

Re: #4 Shane on 05.16.12 at 8:44 pm

My brother lives in Markham. From what he sees a lot of the sales are to white people. Daft white people unless they’re downsizing. The taxpayers will be on the hook for all those houses.

#212 Nostradamus Le Mad Vlad on 05.17.12 at 7:17 pm


#177 Still Renting — “But it has changed it for the better!”
— plus —
#184 Harlee — “THEY are the ignorant ones.”
— also —
#196 Mister Obvious and #197 Devore — All great posts. Seems some of us are evolving quicker than others.

#189 Spiltbongwater — The Pythons had the right take, that life is worthy of spoofing, and they did that very well.

Chances are the material they wrote in the ’60s and 70s would be too risque for this current group of pansies, the new-age politically correct generation.

#202 BPOE’s BrainFart — “As my good friend Tom Vu used to say before he went to jail,” Your friends are ALL Losers! Dont hang around with losers!” — HA! Outed you! Good impersonation, ‘tho. How’s Tom doing?
*
Falling Rupee = inflation; The US Fed More QE in June. BoE is doing the same thing, and The US$’s replacement plus Globalists’ replacement? Bank Runs in Spain and Greece; Bigger Economic Crisis esp. if the Rupee and others fall to zero; Panic over Gay Marriage while the ‘conomee is in the crapper; 2:02 clip Assaulting austerity; Bright Sparks The EZone sure needs some! JPM was the front for GS; Fracking the Fed Yes, it can be done; 1:30 clip Joe Biden says jobs are coming back, others see things differently; GS and Greece This is becoming a sordid tale.
*
Sudden Death Antibiotic linked; 2:52 clip Drone has near miss / crash with jet; CFR and African Depop. On the agenda; US Ambassador to Israel Plan to attack Iran ready (May 20?); 4:50 clip 3D shots of Dimona, with Eng. subtitles; Middle East conflicts; Facebook Getting worse, not better; Bittorrent Piracy boosts music sales; Monsanto GMO seeds and bee die off; New Planet? “It has been known that the orbits of the planets are being distorted by undetected mass beyond the orbit of Neptune. Explanations for this unseen attractor range from large clumps of debris in the Oort cloud and Kuyper belt, to the dark and cold core of a companion star to our sun 12 times the mass of Jupiter and .25 light years out. While I was at the Table Mountain Observatory we devoted several nights and a lot of photographic plates searching the sky where one set of calculations indicated the “Tenth planet” (this was before Pluto’s demotion) might be. We only had a 24 inch scope and while we did find a new asteroid, we did not detect any super large masses.” wrh.com.

#213 Al on 05.17.12 at 7:18 pm

Re: #207 – Onthesidelines; Sharia Law is like a Kangaroo Court. Why should we go backwards and allow kangaroo Courts in Canada?

We don’t. Worry about things that matter. — Garth

#214 Bigrider on 05.17.12 at 7:18 pm

I just can’t see how those who subscribe to Keynesian economic theory can continue to do so.

Simply, a US deficit of 14.5 trillion, two QE easings and no improvement in economy , coupled with horrid financial markets once again and I would think that keynesians would have given it up by now.

Just saying

#215 dd on 05.17.12 at 7:19 pm

JP Morgan loss now $3billion. Up 50% in a couple of days. That is the thing abour derivatives – you never know your loss until settlement.

And JP has $11b in equity.

And $100 billion in profits. — Garth

#216 upper unionville on 05.17.12 at 7:21 pm

#199 bigrider

it is considered ultra prime from the chinese community’s perspective. Good school (chinese c.ares a lot about education). Close to chinese community. Family and social circle close by.

Bottomline is that it is considered prime by those buyers and they have the money. period.

#217 Sebee on 05.17.12 at 7:24 pm

Is assimilation and integration so far apart?
I always felt strongly against people of same ethnic background pooling together in housing or business areas. It undermines the plan of us becoming one. Reality is the more you look, the more you see that we wish to be segregated. To eat foods, speak our native language, be among those like us. If it is true that Chinese are buying out these projects to self segregate than that’s unfortunate. But they certainly would not be alone in doing so.

On subject of race, a friend who is Canadian born Mexican has a Chinese wife and teen boy. He went to China with his family two years back and he said he has never experienced the type of racism as he did while there. Chinese were pointing at his family and son, taking pictures, lauging, etc. His boy was in tears and they returned early. Just saying – we’re all capable of ugliness. We could all do a bit of work in this area.

#218 Westernman on 05.17.12 at 7:42 pm

Westernman @ # 208,
Does being right count for anything on this pathetic blog?

You haven’t tried that tactic yet. — Garth

#219 Cautious on 05.17.12 at 7:56 pm

Re: #188 Onthesidelines: “Just remember, many Poles and Germans stood by and did nothing when their Jewish neighbors got rounded up.”

Ignorant prick, nearly 3 million Poles were killed by the Nazis and Poles were executed immediately for helping Jews. Nonetheless, Poles rank first among “the Righteous Among the Nations” for helping Jews.

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

http://www.holocaustforgotten.com/Lucaire.htm

#220 TurnerNation on 05.17.12 at 7:58 pm

TLT.US – US long bond ETF – has just supassed its 2008 GFC highs….

#221 Dan in Victoria on 05.17.12 at 7:58 pm

Apparently the Gold Bugs have mutated.

#222 Daisy Mae on 05.17.12 at 8:14 pm

#183 Sebee:”Garth, Surely you know that picture tells a thousand words. And surely you know the reaction to these photos is predictable. Therefore, if you are reporting and documents it like it is, simply filter the comments that are inappropriate and don’t allow it on your blog. Even if they are to illustrate the public preception – accurate or not, why waste time defending it….”

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

“Inappropriate”? Sez who? We DO still have free speech in this country? We ARE entitled to our opinions?

#223 eddy on 05.17.12 at 8:25 pm

Re OFSI. I think its fear mongering-

“you don’t qualify on down payment so we’ll insure you with CMHC; however, you may fail to re qualify in the future, at that time we may cancel your loan”

Looks like we need insurance on insurance, or perhaps the security and peace of mind of a TEN YEAR TERM

Life is too short for racism, no one asked to be born. If you are afraid of Sharia Law- you have been brainwashed- turn off your television immediately.
The #1 rule in ‘The Art of War’ is ‘know your enemy’. Our enemy has already tricked us into thinking that the enemy is something else-
Communism, Zinonism, Capitalism,Nazism, Socialism, Terrorism, and Harper’s creation ‘Islamism’, our enemy is none of the above.

#224 Junius on 05.17.12 at 8:26 pm

RE: JP Morgan,

And $100 billion in profits. — Garth

Yes, without making a single consumable product or doing anything of tangible value to society.

Just like this blog? But without $100 billion? — Garth

#225 Bigrider on 05.17.12 at 8:30 pm

# 216 upper unionville to bigrider. “considered ultra prime by Chinese”

Thanks for clarifying. I did think that is what you meant.

I would be careful if I were buying. I would prefer to buy in say an area like Richmond Hill where demand is just as extreme but is coming from all ethnic groups , not just one.

I mean , sentiment can change in a group as well and demand can wane within any tight group.Anything can change, but where demand comes from all sources , better chance of price stability.

Just a thought

#226 Nonno Nicola on 05.17.12 at 8:51 pm

#214 Bigga Rider

Whya you alway talk about da Austriano school of economia when I keep a telling you dat da Calabrese school of economia is da besta. You buya da housa in 2001 and you a doubla youra moneta wid no headacha. No, you a smarto pants who keep talking about da Austrianos like dey know what da hella dey are talking abouta. No country ever implementa da Austriano school of economica Bigga Rider. Not even da Austrianos demselves!!! Da Calabrese school of economia Bigga Rider, dat is da one you gotta use!

#227 TurnerNation on 05.17.12 at 9:32 pm

#106xman on 05.17.12 at 8:32 am

1/2 a mill for a freaking townhouse in that area? No way. People are going broke paying – monthly – taxes, mortgage, insurance, 2 cars, fuel, hydro, heating, food, extras, entertainment, booze, kids, RESP, RRSP, clothes, charity, vacations, child care, pet care, maintainance, internet, cable, cell phone bill, rennovations, kids sports, eating out. Endless.

http://www.realtor.ca/propertyDetails.aspx?propertyId=11907272&PidKey=-397060034

#228 Daisy Mae on 05.17.12 at 9:41 pm

Multiculturalism (Wikipedia) The term multiculturalism generally refers to a de facto state of both cultural and ethnic diversity within the demographics of a particular social space. Some countries have official, or de jure, multiculturalism policies aimed at preserving the cultures or cultural identities — usually those of immigrant groups — within a unified society. In this context, multiculturalism advocates a society that extends equitable status to distinct cultural and religious groups, no one culture predominating. Multiculturalism generally allows for the extension of legal recognition to specific minority groups (Black, White, Hispanic, Christian, Muslim…) and even special legal protections for the members of these groups.

Assimilation (Wikipedia) Cultural assimilation (often called merely assimilation) is a process of consistent integration whereby members of an ethno-cultural group (such as immigrants, or minority groups) are “absorbed” into an established, generally larger community. This presumes a loss of many characteristics of the absorbed group. All of this is legally re-enforced, within the assimilation model, by laws that forbid any formal governmental recognition being given to groups of different kinds . Legally, all citizens are simply recognized as citizens, as opposed to “French Algerians” for example.

The two approaches are quite different. The contrasts between them are often given comparative analysis in France (assimilation) and Britain (multiculturalism). The world continually refers back to these two case studies in order to weigh the pros and cons of these two social models. With both countries holding tight to these different models, and with other countries diverging in their choice between them, the debate continues to be hotly contested and highly important to how societies deal with diversity in an attempt to construct the best, healthiest, safest, most dynamic, and most productive nation and world.

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

Good grief…it’s imperative that we complicate things as much as possible?

#229 Bigrider on 05.17.12 at 9:45 pm

Nonno , I think you have blown your cover. You are pretty informed for a calabrese , grade 2 educated( according to you anyway) nonno who no speaka de englisha very well.

Enough already. Tell us what you really know so we all may learn

#230 Don't read his post on 05.17.12 at 9:51 pm

Nono nicola……ma ke katzo dice????? I canna beleve youa knowa how to use da intranet

#231 disciple on 05.18.12 at 9:33 am

#224 Junius… Excellent comment. And quite right. But here is something you probably didn’t know. Pay attention because it is a little complicated:

Theodore Roosevelt had a brother who was said to have committed suicide, Elliott. He didn’t. Instead, he played the role of VP and then President Taft, and also JP Morgan. A character that still holds importance today.

Teddy Roosevelt’s son Kermit played the roles of Hitler, Disney and Father Coughlin – all three characters fomented WW2. Teddy’s son Quentin was said to have been shot down as a pilot in WW1. He didn’t. Instead he took on the role of Joseph Kennedy. Joseph Kennedy had a daughter who was said to be a moron. She wasn’t because she went on to play the role of Margaret Thatcher.

Why would they do this? Easy. They made fortunes from the anti-trust and prohibition. Not to mention Bethlehem steel, and also the birth of Hollywood as a moneymaker and avoiding insider trading charges.

Junius, the word ignorance entails “ignoring”. So while I often use the term willful ignorance; actually, the word ignorance encapsulates the full meaning within it already. Take note.

You’ve lost it. — Garth

#232 Beach Girl on 05.18.12 at 2:32 pm

#231 disciple on 05.18.12 at 9:33 am

#224 Junius… Excellent comment. And quite right. But here is something you probably didn’t know. Pay attention because it is a little complicated:

Theodore Roosevelt had a brother who was said to have committed suicide, Elliott. He didn’t. Instead, he played the role of VP and then President Taft, and also JP Morgan. A character that still holds importance today.

Teddy Roosevelt’s son Kermit played the roles of Hitler, Disney and Father Coughlin – all three characters fomented WW2. Teddy’s son Quentin was said to have been shot down as a pilot in WW1. He didn’t. Instead he took on the role of Joseph Kennedy. Joseph Kennedy had a daughter who was said to be a moron. She wasn’t because she went on to play the role of Margaret Thatcher.

Why would they do this? Easy. They made fortunes from the anti-trust and prohibition. Not to mention Bethlehem steel, and also the birth of Hollywood as a moneymaker and avoiding insider trading charges.

Junius, the word ignorance entails “ignoring”. So while I often use the term willful ignorance; actually, the word ignorance encapsulates the full meaning within it already. Take note.

You’ve lost it. — Garth

Disciple WOW, that is just messed.

Daisy Mae, really didn’t understand that.

And Gypsy everyone is racist to some degree. Otherwise they are lying.

Have a nice long weekend everyone.

#233 First Wave Boomer on 05.19.12 at 4:39 am

These are just a couple of examples about how highly targeted the Chinese are in the real estate ad world. The May 17 edition of the local Vancouver Ming Pao daily has an insert of 128 pages called the Property gold pages. I wonder what “gold” they are refering to. It is thicker than the Main 102 pages which has an article on you guess – real estate stats.

The Epoch Times which some consider an “anti chinese revolution paper” has an English and Chinese edition and guess again. What does the Chinese edition have that the English edition doesn’t? Real Estate.

The Chinese have their own koolaid fountain and it is much more refreshing than the other sources. Buy buy buy is ingrained. Real estate has always gone up in Asian eyes as remember the history of what Asia was 30 years ago. It was a backwater so real estate had no where to go but up in the last 30 years and even when there was a correction it ended up going higher. Many have made fortunes in Hong Kong real estate.

I remember stories about the Wealthy people from Hong Kong coming over 20 odd years ago and visiting just for a day and buying 10 houses at a time. They would be driven around by an agent and they would not even stop to view the house. They considered the prices to be dirt cheap. I do not know if there is any truth to this. Maybe today we live in a faster pace society so helicopters are a better way.