Run

Three and a half years ago Peter and his GF sold their condo for $295,000. “We’ve been renting ever since,” he says. “Today that same condo can be bought for less than my selling price.” He likes being a renter – “It’s great, expenses are low and we’re mainly liquid.”

But, Peter’s wrinkly Boomer parents won’t stop ragging on the guy. (“It’s an issue for them since a lot of their net worth has been built from real estate.”) And they just came in for the big kill.

“At lunch yesterday my dad presented me with this: they would sell their place and buy a place with us. They would occupy most of the house and we would have our own separate space. The house would be about 1.5 mil to 2 mil. We would have to come up with $350,000. Our ownership percentage could be somewhere around 15% to 30% depending on what we buy.”

“However I feel incredibly uncomfortable about this. Mainly because of the value of the home and ridiculous interest payments I would pay if I put little down. Not to mention back at home living with the parents. Why is renting such a blasphemy? Right now I rent for $1300/m is a really nice place and life could not be better. I just wish I could save more but my motorcycling habit gets in the way. I enjoy the blog. What should I do?”

Peter, it’s a trick. One of several things has likely happened. They lost all their money buying Facebook when it hit $45 a pop for eight minutes on Friday, and don’t have enough now to close on a property they went firm on last week. Or they plan on buying this place with you living in the basement, overdosing together in the tub on Cialis, then teaching your sorry renter’s ass a lesson by leaving you the monster. Or they’re adopting, and need some live-in siblings. Or they simply love and immensely pity you.

In any case, run.

For starters, the last thing you need to get messed up in is familial fractional ownership. This almost never works out well, and usually leads to strife and bad feelings (unnecessary in your case). Deeds put into multiple names can result in major issues when one party wants or needs to sell, plus when bank financing is involved, everyone ends up being equally on the hook. Never, ever do this.

Worse, what self-respecting blog dog wants anything to do with a two million dollar suburban pile of bricks and sheets of pressed glue-filled corn flakes? There’s absolutely no long-term future for this kind of real estate, and if it weren’t for your delusional Bee Gees-loving parents, no buyers would exist. Besides, if you do this deal, how the hell will you ever get out? There’s nothing to sell to a third party. No marketable equity. Just an eternity with your mom. Yow.

Speaking of oppressed renters, let’s do Jocelyn:

“Here’s an idea,” she suggests. “why don’t you write a blog posting called ‘a guide to telling people why you don’t want to buy a house.’ I’m totally and completely stumped/frustrated now on what to say to people. My poor mother is at a loss for words when my aunt says to her ‘why don’t Jocelyn and Paul buy a house’.

“And she replies ‘because now is not a good time’- only to hear ‘she’s been saying that for years and so and so have made money off of their house…’ AND  ‘she’s just throwing money away on rent’. I’m desperately trying to be courageous.  But it’s a jungle out here. Help me Garth.”

It’s a phat idea, Jocelyn. And it shall be done.

Actually I’ve run a few columns in past months showing the actual math of renting versus owning similar digs, and the result is always the same: on a cash flow basis, renting costs a third to a half less than owning, even factoring in today’s dirt-cheap mortgage rates. This is universally true when you take into consideration the opportunity cost of owning – which is the income an owner forgoes on money tied up in equity.

The only time owning wins is when there are consistent capital gains in the value of the real estate – enough to overcome the huge costs of buying (including land transfer taxes) and selling (realty commission). But, your meddling, irritating, prune-dried aunt counters, doesn’t a house always go up in value?

No, is the answer. Not always. In the absence of steady economic growth, stable jobs and constant inflation, annual rises in real estate values are not to be expected – and that’s the environment today. Now add in some awesome current risks. Cheap rates have caused excessive borrowing, reckless buying and inflated house prices. In fact, never before in history has shelter cost this much, even as family incomes fall behind the cost of living.

Nothing goes up endlessly. Demand wanes when debt hits these levels. Listings jump, then prices fall. The pattern never fails to repeat – and is playing out now in lots of markets. But there’s more. The banks will soon be forced to adopt more stringent lending standards. Mortgage rates have nowhere to go but up. The agency which insures loans, letting banks loan to anyone with a pulse, is about to hit its debt ceiling. And (see poor Peter’s letter above), those damn Boomers will bomb the market when they try to convert their pathetic palaces into cornea and knee replacement money.

Jocelyn, sweetie, it’s time to face facts.

Your aunt is possessed. Run.

215 comments ↓

#1 shanks on 05.18.12 at 9:40 pm

1st!!!

#2 TurnerNation on 05.18.12 at 9:41 pm

2nd?

#3 John G. Young on 05.18.12 at 9:42 pm

#188 };-) aka DA on 05.18.12 at 7:45 pm

DELETED

You’re seventy-one days early.

#4 Steve Thompson on 05.18.12 at 9:44 pm

Here is an article that shows how a collapse in the real estate bubble could have a ripple effect throughout the economy, impacting every Canadian taxpayer but, most particularly those that are either retired or very close to retirement:

http://viableopposition.blogspot.ca/2012/05/canadas-perfect-retirement-storm.html

Underfunding of both CMHC and CDIC could come back to haunt Canadians since taxpayers are ultimately on the hook for any shortfalls in funding.

These points have been covered here. Demographics is not longer our friend. — Garth

#5 furst on 05.18.12 at 9:44 pm

FUUURRRRSTTT!!!!!

#6 george on 05.18.12 at 9:46 pm

ATHENS—The head of Greece’s radical left party says there is little chance that Europe will cut off funding to the country and if it does, Greece will repudiate its debts.

In an interview, Alexis Tsipras, the 37-year-old head of the Coalition of the Radical Left, also known as Syriza, warns that financial collapse in Greece would drag down the rest of the euro zone. Instead, he says, Europe must consider a more growth-oriented policy to arrest Greece’s spiraling recession and address what he calls a growing “humanitarian crisis” facing the country.

“Our first choice is to convince our European partners that, in their own interest, financing must not be stopped,” Tsipras said in an interview with The Wall Street Journal Thursday. “If we can’t convince them–because we don’t have the intention to take unilateral action–but if they proceed with unilateral action on their side, in other words they cut off our funding, then we will be forced to stop paying our creditors, to go to a suspension in payments to our creditors.”

http://online.wsj.com/article/SB10001424052702303360504577410302436923364.html?mod=googlenews_wsj

#7 Blue Monster Lover of Meats and Vegetables on 05.18.12 at 9:50 pm

#155 Westernman on 05.18.12 at 2:44 pm

Truth Hammer @ # 118,
Dead on again.
——
From yesterday’s thread.

Right you are sirs. I say, if you can’t beat em’, use em! Don’t let them use you.

The best thing to do is recognize the problem and manage it in our own self interest. Like quit working and go black market since you have the moral authority to protect what’s yours and your own prosperity, the productivity of your day to day activities belongs to you.

By playing in their system, filing your taxes on employment income and voting in their elections we only sanction the bloody thieves and submit to their control. I say do not cooperate, suck as much from the handout system as you need it and help bring it to collapse. Like Greece. It’s the right thing to do.

This year will likely be my last year with T4 income. From here on out I will earn zero employment income and work for free while I transition my company to another country and retire, and I’m not that old.

I suggest everyone in the private sector draws down their wealth and move it offshore and start making plans to get at least one foot out this country. Use Canada as a fall back joint and do everything you can to be low income in the eyes of the government. This is what the socialist nightmare is all about, so use it how it was intended. Utopia. Let the geniuses in the government figure out how to finance it while everyone gets everything for free. After all, everything is a human right, the poor things. The elected ones are brilliant and smarter than us plebs. So let them have it.

Funny how the decades of Marxist propaganda that’s been spewed all over Western societies and universities is coming back to bite the politicos knobs in Quebec. It looks good on em. Maybe it’ll spiral into a Franco-Canadian civil war. It’ll be classic!

Head down to the nearest food bank and get some free popcorn and enjoy the show and don’t worry be happy. You’re Canadian! We’re special.

#8 lil RoNiE on 05.18.12 at 9:56 pm

lil RoNiE here

those r some ugly mutts

down here in lil cuba we would have none of that roaming the street, lock dem bowies up.

back to why i stopped in for a lil man chat, this dude Pete best get his shizzle on the go or maybe the parents need him to take care of dem?

where my main man sm? he must be lounging up in some casino on a fryday nite….come by and hola!!

#9 MO on 05.18.12 at 9:56 pm

Let’s all move to the US. Apparently it has the cheapest real estate in the world.

http://www.planbeconomics.com/2012/04/05/us-has-the-most-affordable-real-estate-in-the-world/

#10 Brother John on 05.18.12 at 9:59 pm

Aloha Garth,
First time posting and most likely the last time.
I would like to say “Thank you” for sharing your free knowledge for so long. I feel fortunate to of heeded your sage advice a few years ago. We met in Kelowna two years ago. I hope you enjoyed the bottle of fine Okanagan Organic Summerhill wine and the local Tree Brewing “Double Hop Head” beer.
My retirement has been a transformation of a debt shackled slave to a debt free king. This has been an amazing change for my family (Hot wife and 3 kids under 10) not to mention myself. We were living a stressful illusion, now we live a worry free dream. Priceless! Every day is the best day of my life. What is the day today? I really should have given you my old watch, neck ties and cell phone. Too late now, I gave away already. Life is not measured by a day timer, alarm clock, memos and emails. My yearly review is based on photo albums and smiles. I have so much free time, I volunteer to seriously help others in need. I have empathy for those that are finally waking up. I hope it’s not too late for other young families. I couldn’t think about helping others when I had to punch the clock to keep up with the Jone’s. If you weren’t so generous, I would still be crossing my fingers and filling out a “Vacation Request Form” once a year for a couple weeks to improve the banks property. I’m chuckling. My life is a vacation.
I really hate to boast about my blessings, cause I can’t keep count. I celebrate our future blessings; I don’t fear the bubble anymore. Our portfolio is bigger than we need and the surf is up at the beach. I would appreciate advice on how to keep sand out of the house. We’re on acreage, not a condo. I’m sorry, that’s just mean to say to the “cash/time strapped Jone’s”. I love Canada but the weather is way better here. I no longer swim/fight with the sheeple up stream. I snorkel in the ocean usually by myself, unless you count the dolphins, sea turtles and tropical fish. So I got that going for me, which is nice.
The real reason I’m posting is to say”Happy Birthday” to The Smoking Man. You’re my kind of crazy. Burn a Fat Birthday candle for me. ; )
Praises to Garth”The Truth” Turner. It worked for me.
Peace, Blessings and Gratitude,
Brother John
P.S. Is DA short for Devil’s Advocate. I guess he’s your real client. Maybe Dumb Ass would be a better fit? I’ve lost the taste of the Kool-Aide.

#11 Squish on 05.18.12 at 10:00 pm

Honestly, I’ve received enough pressure from family and friends that it just feels like full blown nosy rudeness at this point. I used to try to explain, answer questions, foreword articles. I now respond in exactly the same way I would if someone inquired about, say, my income:

“That is absolutely none of your business.”

#12 george on 05.18.12 at 10:04 pm

The Jig is Up

http://www.prudentbear.com/index.php/creditbubblebulletinview?art_id=10666

#13 Blue Monster Lover of Meats and Vegetables on 05.18.12 at 10:15 pm

Unbelievable employment insurance. Since when was it ok to pay into an insurance policy all our lives and then at a whim the government can just change the rules and dictate to us what an acceptable job is for us?

It’s stunning! Let me see my policy please?

The new policy is, go pound sand! Join the chain gang and if you’re a good little slave we’ll give you your bread and water.

Thank dog I don’t pay into that racket. Sorry for those who do. You know the solution. Quit work and go black market. Hell, go on welfare if you can tolerate jumping through hoops. Not me. I’d rather leave. Too much pride i guess.

Need help with the bags? — Garth

#14 D-dawg on 05.18.12 at 10:18 pm

As a renter you forego the opportunity to generate cash from a rental suite (condos excluded, of course)

When that is factored into the rent v. own calculation renting rarely looks good.

Why would you want someone in your basement? How is that different from being a renter yourself, except you shoulder big debt? — Garth

#15 Fleabitten Monkey on 05.18.12 at 10:28 pm

How about Bob Rennie’s newest on the baby boomer generation? How many would bet on his hypothesis that they’ll buy down, free up equity and help out their kids? There must be a lot of “kids” in the lower mainland hoping for a hell of a handout to continue to afford real estate in this town, since also according to him, there’s no bubble here……

#16 rp1 on 05.18.12 at 10:28 pm

“The banks will soon be forced to adopt more stringent lending standards.”

Lending will contract, along with bank profits. Oh what will the bankers do? Raise the costs for existing borrowers. They will all do this. People locked in with high debt are a captive customer base. They will pay whatever interest rate Canadian banks need to maintain profit margins. This is already playing out in Australia, with people crying “no fair”.

Nice theory, but banks don’t actually set interest rates. — Garth

#17 DJB on 05.18.12 at 10:31 pm

I really enjoy the writing creativity in this blog, it keeps me coming back. All the other R/E doomer blogs pale in comparison.

I’m a little sunbeam. — Garth

#18 Devore on 05.18.12 at 10:32 pm

I don’t understand why people need to explain themselves for their own actions. When family/friends ask me why I’m not buying, I tell them I don’t want to. Period. End of story. I’m a responsible adult, I need to manage my own finances. And I don’t need to explain myself, it’s my own business.

People don’t need an explanation, or a guide, they need a backbone.

#19 Foggy on 05.18.12 at 10:33 pm

I never got the “house nagging” from my parent but I sure got it from friends and people I worked with. This was back in the mid-80s. Hell I was renting a 3 bedroom duplex for $550 a month, utilities included. And these buffoons want me to upgrade that to a $2000 a month mortgage plus taxes, maintenance etc for a crummy Scarborough bungalow. I pointed out how stupid this was and they went away. I eventually did buy in 1991 after the market dust had settled – but I never had cash flow like that again.

#20 Blue Monster Lover of Meats and Vegetables on 05.18.12 at 10:36 pm

Need help with the bags? — Garth
——
No, no, don’t trouble yourself. I think there’s a government program to help me called containers without borders.

#21 Mark W on 05.18.12 at 10:37 pm

http://www.torontolife.com

Current issue entitled “Reasons to Love Toronto Now.”

I see that Garth Turner is mentioned in a negative way as being the prophet of doom & gloom, and that according to Toronto Life Magazine there is no condo bubble in TO.

But then again the magazine is filled with full page ads for condos.

#22 D-dawg on 05.18.12 at 10:40 pm

C’mon G. Really? Why? Because he pays the interest and then some on the mortgage.

I know I don’t have to explain to you how the rent v. own is a no-contest when the dude in the basement is tossing g-note per month your way for rent.

The greater fool is the dude living downstairs.

You mean the one who lives for less, in your house, and has no debt payments, maintenance, property tax or insurance? Yeah, right. — Garth

#23 Aussie Roy on 05.18.12 at 10:44 pm

“My poor mother is at a loss for words when my aunt says to her ‘why don’t Jocelyn and Paul buy a house”.

Interest money is a waste of money. In fact as Garth points out interest and other costs of ownership can be double the price to rent.

Other bubbled house markets around the world have taugh us that, unsustainable house prices are driven by emotion and debt, lasting house prices are driven by wages. How much have house prices risen and how much have wages grown, here?. Surely you don’t suggest there is no relationship between wages and house prices are you?. That’s the same mistake as most other people made in bubbled house markets around the globe.

We are more than happy to stay away from a market clearly driven by emotion and debt. We know how these markets end and no, it’s not different here. Perhaps when you stop pushing us to buy it might indicate a change in the unhealthy emotional (you can’t lose) debt driven nature of this market.

For now we are happy to rent a house instead of renting the money to buy, lets revisit who was right in 5 years. Until then I suggest you keep an open mind and perhaps look at some of the reasons why, we think our decision is correct and far less risky than buying something which has never been more expensive.

You can start by visiting Greaterfool.ca.

#24 T.O. Bubble Boy on 05.18.12 at 10:44 pm

Many Toronto neighbourhoods are still experiencing a lack of listings, and – believe it or not – there are a few greater fools ready to play the bidding war games.

A sign that the “Vancouverization” of Toronto is continuing: the door-to-door house hunter. Yes, this is a real thing – couples will walk up to every house in a neighbourhood and ask to buy it. Sometimes this involves simply knocking on the door, in other cases personal letters are put in every mailbox, and there are also times where the homeowners are instructed to contact a realtor if interested.

Regardless of the tactics, this is a strange trend that seems to be an act of desperation – consistent with the bubble mentality of “buy now or be out of the market forever”.

In a few weeks/months, we will all look back at the Facebook IPO frenzy and think of how ridiculous the whole build up was — and housing in Canada is no different. Being a buyer of some of those 580 million FB shares that exchanged hands today does not make you a member of some kind of exclusive millionaire’s club, just as buying into the myth of the exclusive SFH does not guarantee any kind of future return (or even a guarantee of current market conditions where listings are low and buyers are house-horny and desperate to put their cheap debt to work).

#25 Westernman on 05.18.12 at 10:44 pm

DELETED

#26 Doc Holiday on 05.18.12 at 10:45 pm

Just die boomer scum, hurry up and die and take your selfish rot with you

Well, that’s a pleasant change from hating Chinese. — Garth

#27 timbo on 05.18.12 at 10:49 pm

http://brucekrasting.blogspot.ca/2012/05/on-fx-and-worst-fears.html

“There is a story/rumor going around that Euro denominated bills will soon be stamped with a single letter of country origin. This is what may happen in Greece. To stop the cash drain from the local banks, bills taken from a bank/ATM would have a red G on them. Any money transfers out of the country would similarly be flagged G (or temporarily blocked). Functionally a two tiered Euro will have been created.”

rumors are so 2008…….

http://www.streettalklive.com/daily-x-change/876-3-risks-to-the-next-recession.html

“With the Eurozone slipping into recession, combined with the economic contraction in China, the most likely event will be an export related slowdown for the U.S. The recent plunge in durable goods, factory orders, and many of the regional manufacturing reports point to early signs of a slowdown. The Eurozone accounts for about 20% of U.S. exports and profits and any slowing of consumption due their economic ills will wash ashore in the U.S.”

Slowdowns lead to a higher stock-market, higher oil prices and booming commodities. Canada’s position is sound….oh wait?!

#28 Aussie Roy on 05.18.12 at 10:52 pm

Aussie Headlines

If we are to liberate conversation from the chains of real estate, it is important to know our enemy. Why is it that we, a highly educated, creative and culturally eclectic nation, fall victim so easily to its lures?

Is it just a serious case of Stockholm syndrome where we love our warden for locking us inside a brick-veneer prison with Miele appliances, a home theatrette and crushing debt?

The question should no longer be why it’s unaffordable. We all know the story of how house prices doubled from 1996-2006.

The question should be why we continue to call a nightmare a dream. Why do we search for security and identity in the over-priced boredom of bricks and mortar?

We need to question whether working weekends so that we can pay off the pool that we never get to swim in because we’re too busy working to pay off the pool is REALLY worth it. And we need to believe in a world where property no longer cannibalizes every conversation.

The best thing about cocooning ourselves away in national and domestic homes is that chrysalis is inevitable. Let the metamorphosis begin!

http://theage.domain.com.au/real-estate-news/conversation-killer-australias-real-estate-obsession-20120518-1yv33.html

The fate of another retailer is under a cloud, with fears Retravision Southern may slide into administration.

Retravision Southern, the buying and marketing company for 99 privately-owned Retravision stores in Victoria and Tasmania, reassured employees yesterday that they would be paid if the company fell into administration, according to a trade publication

http://www.theage.com.au/business/administration-fears-for-retravision-20120518-1yugj.html

#29 boomorbust on 05.18.12 at 10:52 pm

“Nothing goes up endlessly.”

The hot air coming from our politicians frontal upper orifice will never cease and it always goes up.

Unbelievable, G made a mistake in public. It really is the end of times! All those other crazy predictions, like the world is going to end in December might true.

Say it ain’t so.

#30 Westernman on 05.18.12 at 10:56 pm

Westernman @ # 25,
Garth, you do realize these deletions only add to my already substantial allure on this blog?

Then let’s continue. — Garth

#31 Market Bull on 05.18.12 at 10:59 pm

“The pattern never fails to repeat – and is playing out now in lots of markets.” ~Garth

Name the markets – provide the data.

Anecdotal nonsense

Done. — Garth

#32 Retired Boomer - WI on 05.18.12 at 11:02 pm

Yeah, tonight the wing-nuts apear out in force.

Garth, good luck with this crowd.

#33 Doc Holiday on 05.18.12 at 11:05 pm

Double Dippers, cronyism, nepotism. No Kidding
http://tinyurl.com/bpnzg8h

#34 D-dawg on 05.18.12 at 11:13 pm

I suppose *all* those un-godly ownership expenses more than off set the annual 12k of rental income from the greater fool.

We’ll be seeing that analysis on the next blawg?….yeah right.

#35 Carol Lane on 05.18.12 at 11:23 pm

Hello Vancouver,
Why buy at hugely inflated prices when you could live in peace and harmony in a beautiful home on an acreage for less than a condo. With technology today you could work from home and go to the office once a week. The airport is only 45 minutes away. Check out my for sale by owner at realtor.ca mls DELETED or call me direct at DELETED Yes, I’m a boomer – at the tail end of them anyhow – forced to retire early because of my eyesight. My place is great but needs someone younger. I need to move to town. Would be great to hear from you. The Best to all in Life.

Does this look like Kijiji? — Garth

#36 Canadian Watchdog on 05.18.12 at 11:27 pm

Vancouver West – MLS Listings Map http://i50.tinypic.com/350ng5e.png

Keep in mind total sales for Van West was 550 in April and there are more listings on the concentrated dots. From most of my analysis on data correlation and behavioral patterns, Toronto is only lagging by 2-3 quarters before the market gets illiquid.

What are behavioral patterns? Read one here http://en.wikipedia.org/wiki/Hundredth_monkey_effect

#37 Not 1st on 05.18.12 at 11:29 pm

Facebook stalled, retail investors didn’t take the bait. Now cue the tech bubble 2.0 pop.

#38 Chaddywack on 05.18.12 at 11:29 pm

My dad tried to pull the same thing on me “You need a partner, it’ll get you out of East Van.”

Right dad….and I need to live in the basement of your house like I need a hole in the head.

#39 John G. Young on 05.18.12 at 11:40 pm

#34 D-dawg on 05.18.12 at 11:13 pm

“We’ll be seeing that analysis on the next blawg?”

Maybe not, because they’ve already been presented here several times.
Maybe you could go into the archives and look it up…yeah right.

#40 daystar on 05.18.12 at 11:49 pm

#7 Blue Monster Lover of Meats and Vegetables on 05.18.12 at 9:50 pm

Cheap and selfish was all I got out of that (with a scapegoat theme generated by beliefs in inequality and “exclusiveness” to elevate a sense of intellectual superiority/pride in the mix or in short, shallow). Was that the desired impression you wanted by chance?

#41 MrHulot on 05.18.12 at 11:57 pm

Hey Garth I wanted to ask you for a long time about the disparity between “Garth the Blogger” and “Garth the radio/TV guest”

I am not trying to be disparaging. This is an honest question.

Why does “Garth the radio/TV guest” come off as pleasant, humble and friendly while “Garth the blogger” an over-confident, overbearing A___hole?

Bite me. — Garth

#42 thinker on 05.18.12 at 11:58 pm

This story is a little twisted, it actually sounds as if they know that when the lad decides to buy he will coming to bank of mom and dad. Instead, they have come up with a pre-emptive strike to get him moving and have warned him that no free call option exists on bank of mom and dad. Save, rent, buy or whatever you decide, don’t come knocking on our door for the downpayment like your other friends get from mom and dad.

This intergenerational transfer + low rates is guiding an even younger group of people into the debt path. Everyone always complains about the income to debt ratios, blah, blah…yet everyday they are working out just fine at the higher levels. It doesn’t capture savings or bank of mom and dad. Or everyone is lying about their income?

The government has no clue on how to even check if punters from outside Canada are buying real estate, you think the CCRA has a clue on how many “mortgage helpers” income goes under the table or how a parent can use many names for principal property status?

20X leverage, tax free unreported income, and keep 100% of the gains and banks tossing < 3% rates at me. At some point, you have at know what you are missing.

#43 Debtfree on 05.19.12 at 12:00 am

Peter family and business don’t mix period ……….S.
My grandfather in the old country used to say that fresh fish and family smell the same after three days if left around the house.
Westernman “allure” isn’t that what girls and woman have . You better watch that. Your Freudian slip is showing . Btw is there anything you do like?

#44 Confused Track 6'er From Montreal on 05.19.12 at 12:00 am

With all the references to “Track 6-ers” courtesy of Smoking Man, could someone from Toronto please explain what exactly a “Track 6-er” is to a non-native (in Canadian English, not Smoking Man-ese)?

I understand that Smoking Man means “platform 6-er”, as the train can only be on one track. But I have never run across a train station where it was physically possible to board a train from 2 different platforms (they normally run 2 tracks between each physical platform). How is the Toronto station configured to allow this?

Thanks in advance…

#45 MrHulot on 05.19.12 at 12:01 am

And more importantly— which is the real Garth?

#46 Nostradamus Le Mad Vlad on 05.19.12 at 12:24 am


To Peter and his GF: “Never, ever do this.” (Paraphrasing Garth.)

To Jocelyn: “My poor mother is at a loss for words when my aunt says to her ‘why don’t Jocelyn and Paul buy a house’.”

Recommend telling the aunt to MYOB in a sweet, sensitive voice while smiling happily.

For all of the above — read #10 Brother John’s post again, and enjoy renting.
*
Marc Faber Love or hate him, he has this one right; Interesting site; NASDAQ 2000 – 2012 The twelve year cycle; Trichet declares war First para. is quite revealing; Border Controls on EZone countries; JPM: Isn’t life strange? If it is proven that JPM was a front for GS’s backhanded dealings, it will become a lot stranger; The Allies are not so allied; FB and Europe difference; Where has it gone? No one knows; Your Money’s Safe! A sure sign that something is up; EZone exposures to a Greek default; The Coal Panic Time to buy? A look Down Under; Trouble in Europe? No, seriously! Walmart Safe stock for boomers; Inflation Will it / won’t it? Cdn. Friday links; Paying off debt quickly.

Hypothetical Europe, incl. Greece toast? 5:04 clip Water Wars – fed. vs. state govts.; US$ – Euro Swaps Knock, knock, knocking on heaven’s door; Coordinated Obomba tells IMF; China and SKorea building low cost jet fighters. When the US military can’t sell their main export (war) to anyone, they’re done, and this;
Oil Sands Pictorial of Athabasca; JPM US$100 bln. of risky bonds.
*
onemorething This one’s 4 U; Sabotage of the Greek elections. TPTB always choose their own; 13:37 clip Beyond the sun are clothes lines for washday; Question of the Day: Will Israel attack Iran during the G8 – 20 meet? Cancer Disfigurement Pic is somewhat graphic, but surgery removed the tumor; Lunar Eclipse Dark Side of the sun; Never too old; Nanny State Jocelyn can use this as blatant interference; Chile and Quebec Student protests make strange bedfellows.

#47 B.Anchor on 05.19.12 at 12:46 am

Could the Vancouver blog dogs on this site pls update us periodically on that Vancouver shack that appeared on this site recently that someone is trying to flip. A final sale price would be an interesting piece of evidence re market conditions. Thanks in advance.

#48 Phil Indablanque on 05.19.12 at 12:47 am

Why do non renters think that rental accomadation is sub standard? My rental is a far cry from a damp basement suite with noisy neighbours upstairs. Speaking of which, I never did understand the logic of deciding to buy a place for yourself so that you could have a stranger live in it with you. Oh wait, its so you can afford to “own” it. Let’s hope your nice tenant doesn’t come with her own stalker, like my co-worker’s. Smashing windows and flashing blue lights in the middle of the night do not make for a good night’s rest.

#49 Chris on 05.19.12 at 12:50 am

I wonder what would have to happen for CREA to say something negative about the Canadian real estate market. Would they ever?

#50 Foggy on 05.19.12 at 12:50 am

@37 Not first:
Facebook stalled, retail investors didn’t take the bait. Now cue the tech bubble 2.0 pop.
—————-
The absurdity of this company being evaluated in the same region as Apple, Google and even Microsoft at $38. Most technical analysis puts it at around 15 bucks – based on today’s earnings. And those are slipping. Don’t contribute your hard earned money to the hooded one’s wealth.

#51 Phil Indablanque on 05.19.12 at 12:50 am

I meant accommodation.

#52 Aussie Roy on 05.19.12 at 1:04 am

Market Bull on 05.18.12 at 10:59 pm

“The pattern never fails to repeat – and is playing out now in lots of markets.” ~Garth

Name the markets – provide the data.

Anecdotal nonsense

Done. — Garth

…………………………………………………………………………..

How about the delusional nonsense from the RE crowd, like, it’s different here, houses only ever go up, house prices double every X years, lasting house prices have no relationship to wages and debt doesn’t matter?.

Nearly forgot my fav, you better buy now or you will be locked out forever – LOL.

Ever asked for the data to support this nonsense, I guess you haven’t.

#53 John on 05.19.12 at 1:12 am

Not to harp but doesn’t glue and pressed cornflakes apply to more than just real estate? What would be a more realistic view of the system? Wouldn’t it be easier to just accept what is, and work from there?

It’s hard to come up with workable strategies without a dashboard. Diversification doesn’t seem much better than finger crossing.

#54 Chico on 05.19.12 at 1:22 am

#188 };-) aka DA on 05.18.12 at 7:45 pm

DELETED

Garth… you are a man of sincerest mercy!

#55 Gun Boat denier on 05.19.12 at 1:50 am

Peter – your situation has little or nothing to do with money.

#56 rentin on 05.19.12 at 1:52 am

Garth is not always right, but he is here. Rules to live by:

1. Buy stuff that you NEED on sale
2. Don’t get into business with family
3. Don’t live with your parents

#57 DondWest on 05.19.12 at 1:53 am

Split mortgages between several parties are usually a bad idea.

#58 dangeresque2 on 05.19.12 at 1:56 am

Peter: that is coma terrible idea, don’t do it… It would stress all of your important interpersonal relationships – parents and gf. Also, owning less than half means you don’t call the shots. And then trying to sell or change your mind someday? Impossible. If they are really good at real estate, they will be structuring this deal to be good for them.

Jocelyn: try using some deflection in the language, it’s worked for me… They ask, are you buying? say simply: maybe! If you want to be more direct, say you have it all figured out! When you start worrying about what they think and what they say, and they this and that… You’re giving your power to them! Ask your self, or ask them even… Why are they so interested? Are they worried about their own situation? Are they looking for their own reality to be manifested in you? What if people didn’t buy houses, would that mean that they were wrong after all?

#59 Blacksheep on 05.19.12 at 1:59 am

“Blacksheep… Stefan Molyneux is confirmed opposition. Proof: He is closely associated with Max Keiser and Alex Jones, both confirmed actor roles. He also took over the reins for Peter Schiff at certain times, and I’ve already told you a couple of times who Peter Schiff is.”
————————————————-
Disciple, when it comes to the whole, actor/double thing, nobody’s got it covered like you.

So…. How bout that Victoria Grant.

She’ now gone mainstream. On CTV.ca and cbc.ca

What’s your opinion on the content of her message?

take care
Blacksheep

#60 ANONYMOUS on 05.19.12 at 2:40 am

Oh-oh, America is the next Greece !

Yes, that might sound a bit nuts, but just watch this video and decide for yourself:

(“US government debt charts resemble those of Greece.”)

http://www.youtube.com/watch?v=yX4eQ8CCWM0

If that is true, then this will be the chart of where interest rates in America are headed pretty soon:

http://en.wikipedia.org/wiki/Template:Greek_governmental_bonds_2_years_graph

Now just imagine this: If America’s real estate market is in the dumpers while interest rates are 1.5%, and mortgage rates are 4%, just imagine what the real estate market in the U.S. will be like when rates hit 177% ?

#61 bbrodriguez on 05.19.12 at 2:42 am

Oh.

My.

God.

Garth, I was in the middle of writing you an email when I saw this post. My inlaws have just proposed something very similar to this to my wife and I, because, well, as everyone knows “we’re priced out forever”.

I was at my inlaws for mother’s day, and some neighbors were over. They were all talking about how much their houses were worth. I mentioned that “real estate prices have never been higher and interest rates have never been lower.”

It was like I’d farted in public.

#62 Freedom First on 05.19.12 at 3:10 am

It never ends:) ……..Garth, I have said it before, you are an extremely patient man, and your replies to the clueless are a great example of tolerance and/or, a keen humourous wit.
So much insanity by posters tonight I have to state my own tiresome belief system:
I like diversified assets, cash, cash flow, and NO debt is good debt. Requires hard work, discipline, creative thinking, and what Warren Buffett said when asked what he thought about what “so and so said”, Warren said: “I don’t care what anyone else thinks.” The difference between Mr. Buffett saying this, and the no cash house horny saying the same thing, is, Warren Buffett is smart.

#63 new-era on 05.19.12 at 3:11 am

Greek Fire

years ago it was the asian contagion which brought japan to its knees.

Now Greek fire is about to spread, and appears to be unstoppable. All I can say to the greater fools still buying recently is

You’ve got to ask yourself one question: ‘Do I feel lucky?’ Well, do ya punk? (clint eastwood)

http://www.canada.com/Greek+debt+disease+spreading+China+back+Canada+economists+warn/6647079/story.html

#64 TRT on 05.19.12 at 3:28 am

Ahhhh… the long weekend…Victoria day…Crown ;)

Kudos to Garth for continually refreshing this blog. It is appreciated…even though we don’t agree on many issues.

anyone second that?

#65 P & T S on 05.19.12 at 3:32 am

“Nth where N is an integer > 0” (just to annoy!)

Garth – down here in Orztralya the Banks DO set their own interet rates. NAB made it very clear some time ago that they would NOT be tied to the rate decisions of the Australian National Bank, and the same mindset seems to have been adopted by the other members of the “Big Four” – Westpac, Commonwealth, and NAB.

Funny that the “Independent and Proud of it” Banks here were quite happy to harvest bailout money from the US Fed, AND enjoy a Government backed guarantee on all deposits up to $250,000.

With the “slowdown” in China, and a slowdown in the Aussie resource business (basically dig it up and sell it to anyone out there!), the local feeling is that things are not going “quite as well” as expected, with even major centres having a retail problem (not enough shoppers, or rather, not enough people spending).

We’ve driven from Fremantle (near Perth) all along the South Coast road as far as Melbourne (so far), and the situation in the smaller towns is very worrying – shopping malls everywhere with premises to let – often more premises to let that those still trading, and of those still in business, many are running “Everything Must Go – Relocating (or Closing Down) Sales”.

These are not signs of the Government’s alleged “Booming Economy”, more signs of an economy really struggling, and with the dreaded “Carbon Tax” around the corner all the locals are expecting more financial stress in the future.

Perhaps Aussie Roy might be able to confirm this situation? Certainly we’re very happy that we’re just visiting – and once we get to Sydney we’re back off home; everything just so expensive, and everyone’s so miserable, especially in Melbourne. Don’t suppose the unusually cold (for them) weather has helped much though!

Incidentally, the Kia Carnival we’ve hired managed an amazing 5l / 100km across the Nullabor Plain, which was just incredible. Even around town we’re getting better than 7, and this is on a small 2.2 litre diesel, which can accommodate eight adults (as long as the last row three are Korean-sized!!). Must say we’ve completely changed our perception of Kia, and would certainly consider buying one if they are available in Quito.

(I don’t even want to think how many litres per km your Hummer does – you Eco-terrorist, you!!)

All the best from cold Melbourne!

#66 John Myers on 05.19.12 at 4:55 am

Peter decided to buy, but it was after he bought and sold his place in a condo. So he wanted to be a home owner in the beginning. How did he come to the conclusion that condo is a good investment by then? Didn´t he just send a signal to his parents that he wants to own a house? To Rent or To Buy blogs and articles generally suggest that it is smarter to own than rent. They are counting with the common nonsense that there will be a neverending growth on the real estate market. Of course they are only speculating and probably will be surprised one day.

#67 Buy Curious on 05.19.12 at 5:15 am

Garth,

Last night, while enjoying a bubble bath and watching Facebook’s stock shit the bed, I had a “Holy Shit!” moment of clarity like in the final scene of The Usual Suspects when we find out Kevin Spacey’s character is indeed Keiser Sosay (sp). Allow me to explain and connect the dots. First, Sherry The Crypt Keeper Cooper sells her pad, then Celine My Heart Will Go On Dion puts her Donald Trump inspired gawdy decorated palace up for sale in the province where the native youths are tossing around Molotov cocktails and now Facebook is being propped up like Donovan Bailey at a roadside soberity test. Do you see what’s happening? The proverbial shit is hitting the fan! I’m afraid. And now all these Spanish banks are being downgraded? Not am I getting financially liquid, I’m taking all of my cash out the bank later this morning.

#68 No comment on 05.19.12 at 5:54 am

Garth,

Hot about a test – comment free Fridays. One blog a week with no comment option. Think of the free time you’ll have not having to validate this crap. You can check to see if it has impact on traffic as well.

#69 Deb on 05.19.12 at 6:23 am

Red flag alert, Peter! Whichever way you look at it – financially, physically, or psychologically – this potential arrangement reeks of short-term and long-term danger. It would be similar to agreeing to accept permanent residence on the set of a horrible sit-com with you and your GF playing the strait lead, and your parents getting 100% of the laughs. In fact, when you think about it, this proposition makes Hobbes’ state of nature – where the life of a person is “solitary, poor, nasty, brutish, and short” – appear fairly attractive in comparison.

#70 Kitchener on 05.19.12 at 6:25 am

Rent

I must be leaving with my head in the sand, I have heard of people lining out to buy homes and putting in multiple offers. But here is a first. A friend sold their condo in Toronto and decided to rent. They told me that there were three bidders on the rental property and that the owner had a R/E to screen all the applicants and Bids.
I have never heard about this situation. Is this generally true around Toronto?
Is this something that should be on the radar of things to come?

#71 David B on 05.19.12 at 6:31 am

Run baby run, beholding to family is worst that beholding to a guy named Bubba. Gifts are great …. other than that the price metal price tag is just too high.

#72 bigrider on 05.19.12 at 7:08 am

An update on the RE101-gottohumpahoma.

Much worse then the H1N1-bird virus of the past.

Funny how they both originated from/affected the asians first.

Just an observation, please don’t make it more than it is.

#73 Regan on 05.19.12 at 7:29 am

I have friends who got into a convoluted RE deal with their parents – one friend wanted to live in the family home that she grew up in and her parents wanted to retire to someplace smaller. So the couple bought her parents a condo for them to live in and they live in the house. It worked for about 3 years. Now the parents need cash and announced that they want to sell the house. Naturally, since they own a condo, they can’t afford to buy. I think they are going to move into the condo, although I’m not sure that would’ve been their first choice in housing, but they feel trapped. They aren’t choosing the timing on any of this, have 2 young kids, and the familial relationships have been strained.
In other news, real estate flyers, solicitations and agents routinely appear on my doorstep asking if I want to sell. But this week, a rep from Edward Jones came by to ‘introduce himself.’ What’s that about?

#74 Regan on 05.19.12 at 7:36 am

Oops, re-reading that I see I had too many ‘they’s in that comment. To make it clear – parents live in condo and own house. Kid lives in house, owns condo. When the parents sell the house, she has to move or buy the house. In some small act of rebellion, I think her response is ‘fine, I’ll move into my condo and now you have to move.’ I won’t even get into the ‘but of course you should pay us for the repairs we did to the kitchen/plumbing/deck on YOUR house/YOUR condo’ arguments that always come up.

#75 WA Surfer on 05.19.12 at 8:02 am

#65 P & T S on 05.19.12 at 3:32 am

Its even worse than people realise, the next six months here in Aus are going to be very interesting. Cashflow for a lot of companies has dried up. I’m taking a big long holiday over the next few months, while deciding where I’d like to live after the resource sector driven Australian economy has sunk into recession. I might head to Canada for a few months to enjoy the fresh air and affordable cost of living. Any recommendations of places to visit?

#76 Linda Pearson on 05.19.12 at 8:08 am

#46Nostradamus Le Mad Vlad on 05.19.12 at 12:24 am

Recommend telling the aunt to MYOB in a sweet, sensitive voice while smiling happily.

My personal favourite that I read in a book once: “The very first instant that I think that is any of your business, I’ll call you; really, I will.”

#77 Herb on 05.19.12 at 8:23 am

Blue Monster …, Truth Hammerer and Westernmoron –

the last of the Cold War living braindead!

#78 J.I.M. on 05.19.12 at 8:43 am

Talking to a realtor about basement rental suites. I said that I assume that the ideal tenant is a quiet non smoking employed female. Her reply was “Gawd no!, after she signs the lease that quiet non smoking female will show up with her 2 little kids, a dog, a cat and a biker boyfriend.” Little food for thought for all you newbie home owners thinking that renting a portion of your house is an easy way to subsidize your mortgage

#79 Ralph Cramdown on 05.19.12 at 9:01 am

Now here’s a fun tale: Lifelong renter sells a FSBO. I did it for relatives. I had it appraised, looked at comps and assessments, put together a feature sheet and hammered in the sign. Yes, you DO meet flakes, lowballers and deadbeats, but lots of other great people, too.

The worst of it was, of course, the real estate agents. Anyone else coming through the house, I may have misread their willingness and resources, but with an agent, I ALWAYS knew it would end up going nowhere, even though I always offered to cooperate with their broker if they brought a buyer — had a lockbox and everything. Many of them told me the home was underpriced. “SO BRING ME A BUYER!” But of course they just wanted 1.5% to put it on MLS.

It helps to have a sense of humour. Yesterday I said to the eventual buyers “If this place doesn’t sell today, I’m *Increasing My Marketing Budget!*” (waving a bag of balloons).

Yeah, I’m just a loser renter. I could have bought the place for cash, but here I sit, paying my landlord’s mortgage. Saving $20k for a week’s work was pretty sweet, though. Or maybe the cartel could have gotten me enough extra to pay their fees, but where’s the fun in that?

#80 };-) aka DA on 05.19.12 at 9:05 am

#3John G. Young on 05.18.12 at 9:42 pm
#188 };-) aka DA on 05.18.12 at 7:45 pm

DELETED

You’re seventy-one days early.

DELETED

#81 Bigrider on 05.19.12 at 9:21 am

# 61 bbrodriguez

Speaking of farting in public, it seems to be a trend of some sort among the younger crowd.

More than once, I have been a victim of a fart bomb in a crowded club or restaurant. Last year getting on to an elevator at first Canadian place, a couple of teenagers , boys of course, rushing out the doors laughing,I did not take notice until I got into the elevator and the doors closed. Needless to say all those aboard quickly became friends as we had a common nauseating enemy to fend off while breathing through out arm sleeves.

#82 Halifornia on 05.19.12 at 9:23 am

Ha carol lane. Maybe add a classifieds section to the blog?

#83 Randy on 05.19.12 at 9:44 am

CRACK SHACK OR MANSION: How Well Do You Know The World’s Hottest Housing Bubble?

Read more: http://www.businessinsider.com/crack-shack-or-mansion-2012-5#-1#ixzz1vK5a3PpA

http://www.businessinsider.com/crack-shack-or-mansion-2012-5

That debuted on this site more than a year ago. It’s now old. Van is so 2011. — Garth

#84 rosie on 05.19.12 at 9:58 am

#33
Beware whining puppies. Every generation feels hard done by. In the 70’s, when I was a whining puppy, our parents had no time for our whimperings. They thought we were blessed for having educations that they couldn’t even imagine,(they were busy with a depression and a war). As for student debt, well I graduated with a debt equal to the price of a family car at the time. Doing the math, it looks like it’s about the same today. Unless, in your entitled stupor,you went nuts, or didn’t bother working, too demeaning for someone with your obvious talents.

#85 The American on 05.19.12 at 10:07 am

Some articles to consider if you’re evening thinking about buying Canadian real estate right now in Vancouver or Toronto.

http://www.theglobeandmail.com/report-on-business/vancouvers-real-estate-swoon-deepens/article2433053/

http://blogs.canada.com/2012/05/17/vancouver-is-a-drag-on-canadian-real-estate-says-crea-report/

http://www.cbc.ca/news/business/story/2012/05/04/toronto-vancouver-housing.html

http://www2.macleans.ca/2012/05/01/how-the-housing-market-is-pumping-up-our-gdp-numbers/

Amazing… Yeah, soooooooooo conservative and prudemt…. LOL
http://www2.macleans.ca/2012/04/26/banking-regulator-to-oversee-canadian-mortgage-and-housing-corporation/

http://www2.macleans.ca/2012/04/03/why-the-federal-budget-said-nothing-about-the-housing-market/

And my personal favorite…
http://www2.macleans.ca/2012/05/10/clear-evidence-of-a-bubble-is-lacking-really/

Look, its like this – These articles and topics of discussion/contemplation are so “U.S. circa 2007.” Americans have been reading these articles for years. Canada is about 5 years or so late to the game. The fact that the media is now even remotely comfortable printing hypotheticals and rhetoric over such a nasty subject line is proof enough for me the real estate downturn in Canada has begun. It is precisely when people began taking not of the U.S. crash.

We’ve seen this story play out time and time again, and I am absolutely fascinated, no dumbfounded, by those buyers/sellers who still believe real estate will always go up. I’m even more enthralled by those who believe Canada cannot or will not suffer a U.S.-style collapse. The bottom line is it already is beginning. I believe, however, Canada’s housing collapse will be West to East (and statistically speaking, that is pretty much how it is playing out). In the U.S.it trended East to West over a period of 18 months or so, and it didn’t last only a few months.

I continually read comments on here from bloggers who believe a correction is coming with Canadian real estate, but then they make a comment like, “and NEXT year I’ll be ready to buy at 50% off.” Eh hem, that’s not how it works, people. This is going to be drawn out over a period of years before the bottom will be reached and people will be comfortable reentering the market again.

Everything in life returns to the mean. Such is life, even in Canada. Because Canadian real estate has run up significantly longer (less a two month minor correction nearing the end of 2008), the return to mean will be more painful for Canadians than what it was for Americans. Both countrys’ markets took off roughly about the same time. American prices have returned on average to around mid-2003 levels from our peak in 2007. So will Canada’s. Believe it. Canada will experience a correction that sets it back 9-10 years.

I’m curious about the perceptions of the Canadian population.

#86 Jim on 05.19.12 at 10:15 am

#21 Mark W

Not only is Toronto Life full of ads for condos, it has a habit of cooking up fake shots of locals and their new condos. They use stock photography of a condo interior, paste an image of a model into it, and then try to convince you that it is a natural shot of a happy condo owner in their lair.

Trouble is that the people are often 7 feet tall. They hover in the air, and don’t match the lighting in the room. You can tell instantly by the shadows and the diffuse versus specular reflection balance.

It’s a real estate puff magazine.

#87 Elmer on 05.19.12 at 10:16 am

Garth you should write about how boomers are mostly to blame for things getting as bad as they are. Here’s an excellent article: http://www.theglobeandmail.com/globe-investor/personal-finance/rob-carrick/boomers-have-a-stake-in-gen-ys-success/article2435015/

#88 Ed from TO on 05.19.12 at 10:20 am

@41 MrHurlot

you nailed it.

#89 Ben on 05.19.12 at 10:38 am

World financial markets crumbling, world real estate markets crumbling….. but it’s different here?

Grab a brain, the parties over!

#90 D-dawg on 05.19.12 at 10:39 am

#39 JGY

Can’t fool this dawg. Nobody has does that analysis because it gives the ‘wrong’ answer.

I’d do it but chances are it ends up on G’s cutting room floor. Maybe you could do it for us?….yeah….right.

#91 greed on 05.19.12 at 10:46 am

#37 Not 1st

Retail investors did take the bait on Facebook at $38 to $45 dollars. Did you look at the volume? this would be retail investors buying an overvalued stock at this stage with the hope/expectation that it becomes something.
Anyone in on this from its inception until 11:30am yesterday made off with with retail investors money in the truck loads.

#92 ALBERTAGUY on 05.19.12 at 10:54 am

Want to comment on the basement rental income posts.

#14D-dawg

I have been renting out lower for 2 years for 1000/mo as well. I claim the income but also deduct proportional maintenance, interest, taxes, insurance, utilties. This has paid for cost of reno and more plus the income carries $240k mortgage at 5%.

#78J.I.M. Agree about single females…generally more trouble and more untidy than guys.

The key to rental bliss is to do your due dilligence up front – screen all aplicants thouroughly and write a legal rental agreement with house rules.

Young professional employed male is the way to go. Include a good hd sports and wifi package and they are happy. They even offer to help out around the yard.

#93 Tony on 05.19.12 at 11:00 am

First of all interest rates will go nowhere but down especially in America. Second if the goof buys a house he can kiss his whole down payment goodbye and will enjoy declaring personal bankruptcy. Fourth Facebook will fall flat on its face. Like the converse of google when it ipo’ed this is a stock you dream of as a short seller.

#94 TurnerNation on 05.19.12 at 11:01 am

Long weekend! I bet our forum host is visting his Eastern cottage/getaway. I wonder if he rides there by bike, along the way stopping in front of 24 Sussex for some late night noisy burnouts and brake stands.

#95 TurnerNation on 05.19.12 at 11:07 am

Worth a re-post: quality of Toronto condos.

Shocking photos. A drunken monkey (even Junius’s) could build better.

http://poorconstruction.blogspot.ca/2012/02/m5v-condos-tas-designbuild-lifetime.html

#96 AprilNewwest on 05.19.12 at 11:25 am

#41 MrHulot
Because Garth isn’t insulted and disrespected on radio/tv……

#97 Dan7 on 05.19.12 at 11:47 am

Garth you should become a comedian……you made me laugh so hard i cried.

#98 MrHulot on 05.19.12 at 12:27 pm

#75 WA Surfer
Why don’t you visit Sydney, Nova Scotia. That way you don’t have to change your luggage tags.

#99 Tony on 05.19.12 at 12:28 pm

Re: #62 Freedom First on 05.19.12 at 3:10 am

http://www.theglobeandmail.com/globe-investor/markets/markets-blog/market-view-video/video-the-best-investment-try-cash/article2429027/

Cash is king get used to it.

#100 kirby on 05.19.12 at 12:37 pm

Peter, don’t get sucked into a mortgage with your parents. Your parents want you to do this because they likely don’t qualify for the mortgage on their own. Know what happens in a few years? Your GF will be ready to dump you because she’s tired of your mother poking her nose in your business. You’ll beg her to stay together so you’ll get a new place on your own…but when you go to the bank you don’t qualify because your parent’s mortgage is on your credit bureau. So you’ll ask mom & dad to take your name off title but, surprise!, your parents have to requalify for their mortgage on their own and if they don’t then you’re stuck with their mortgage around your neck for the forseeable future. Not so much fun, is it? And do you really want to spend your future full of resentment? It’s not worth it.

#101 jess on 05.19.12 at 12:43 pm

I wonder how those real estate “clubs” are going to fare.

mr. market futures should think about the “now” problem
http://news.sympatico.ctv.ca/home/fukushima_reactor_4_poses_massive_global_risk/85067920

#102 Ben on 05.19.12 at 12:47 pm

Facebook IPO was a flop and I’ll tell you why…

-Young tennagers who are 95% of Facebook with their 650 friends don’t think it’s cool anymore.
-The advertising on Facebook is a joke, nobody even looks at it.
-The timing of this IPO couldn’t be worse with the world markets in a nose dive.

#103 VicBC on 05.19.12 at 12:54 pm

Why would you want someone in your basement? How is that different from being a renter yourself, except you shoulder big debt? — Garth

In Victoria you end up trading your house for a liveable Condo with very little cash left over. When I bought my home in 93 for 245g’s the old couple bought a condo for 200g’s not much left over from buying selling expenses. Not much has changed today so it makes more sense to me since I’ve installed a suite to stay put and let the suite cover home expenses when I retire.

Why would you want someone in your basement?

Why would you want to contribute to urban sprawl?

#104 Blue Monster Lover of Meats and Vegetables on 05.19.12 at 1:00 pm

#40 daystar on 05.18.12 at 11:49 pm

#7 Blue Monster Lover of Meats and Vegetables on 05.18.12 at 9:50 pm

Cheap and selfish was all I got out of that (with a scapegoat theme generated by beliefs in inequality and “exclusiveness” to elevate a sense of intellectual superiority/pride in the mix or in short, shallow). Was that the desired impression you wanted by chance?
—–
Not cheap, frugal and yes selfish. I care about myself, family and friends more than I care about you and the rest of Canada.

If you’ve ever struggled to start a business and suffered the hardships over decades while barely making enough to survive maybe you would understand where I’m coming from.

Watching governments waste mountains of money and paying public sector rich compensation and benefits in a monopoly non-competitive system is not what I worked hard to support. Maybe if you have a cushy job you consider the waste or overpayment inconsequential or normal but for a small business, cutting waste and being frugal is crucial.

So my contempt for government is deeply ingrained by experience. Watching the circus show, lies and waste by selfish greedy bureaucrats and bleeding heart socialist who claim to be trying to solve social problems by taxing the productive is outrageous. Where’s the morality in taking from those who succeed to give to those who don’t? Taxation and inflation are stealing, legalized theft but stealing none the less.

The only defense a person or business has is to not succeed or to shelter their success or leave. That’s the incentive created by heavy taxes in a bloated public service oriented society.

If you do well in Canada/USA today and earn piles of money by doing something the market chooses to buy, the government will take most of your earnings, and you wonder why our economy is dying. Think about it, there’s no incentive to succeed here just to be sacrifice to the public ‘good’.

So I’m absolutely selfish, but on the other hand, I don’t want anything from anyone or government for free. I would rather pay for what I need. Unlike most socialist, who demand government provide all things for free. Who’ are the greedy, shellfish and immoral ones? It’s the voters who vote for free benefits, not the wealthy creators who want to keep what belongs to them.

The problem with our society, especially the monopoly healthcare system, is there is no allowance for competition since the current public system is afraid competition. Healthcare is the best example of how bad the economic incentives are in Canada, but the same principles apply across the board.

Fact: When revenues for a service are fed by taxes and not voluntary exchange in a free market, costs will rise and quality will suffer. And I won’t support it.

You can if you want because ‘your a nice guy’. Not me.

It’s a shame that I have to choose between leaving my country or be sacrificed. But that’s my choice. Thanks Canada.

#105 DM in C on 05.19.12 at 1:01 pm

};-) aka DA on 05.19.12 at 9:05 am

#3John G. Young on 05.18.12 at 9:42 pm
#188 };-) aka DA on 05.18.12 at 7:45 pm

DELETED

You’re seventy-one days early.

DELETED

DA’s BEST POST, EVER!

<:-D

#106 Blue Monster Lover of Meats and Vegetables on 05.19.12 at 1:15 pm

Daystar,
Understand this, the larger a government is in society and the greater the role in providing public services and the greater the costs relative to the private sector tax base that finances it the more difficult it is for a small business to succeed. The higher the bar is to reach break even. Taxing labour is the worst offense by far. Taxing jobs is the dumbest thing and substantially raises the bar on what’s a viable business and what is not.

Notice in Canada only the most lucrative business still exists which also happen to be unmovable.

It’s almost to the point that if you’re not in mining, oil or energy, you’re not going to be viable on a global market.

My business can not grow in Canada. I would have to double my prices and double my sales to pay for workers here. The cost of living in Canada demands a fairly high wage prior to taxes and deductions. Manufacturing in this country is no viable.

#107 Derek R on 05.19.12 at 1:28 pm

#90 D-dawg on 05.19.12 at 10:39 am wrote

Can’t fool this dawg. Nobody has does that analysis because it gives the ‘wrong’ answer.

Of course it would give the wrong answer: you’re not comparing like with like. If you want do an analysis where you have a home-owner sharing their home with a renter, you need to compare that home-owner with a renter who shares their similarly-sized home with another renter.

And if you do that I’m pretty sure you’ll find that renting will still come out ahead.

#108 bill on 05.19.12 at 1:34 pm

d dawg
i think you are going to have a bit of competition for that ”dude in the basement’
currently we are having difficulty renting in one of our downtown Vancouver apt blocks.
not to mention the surrey apt is not at full capacity either.
you may find that all your potential ‘dudes and dudettes in the basement forking over a g ‘ are rare…and getting rarer.
good luck finding renters dawg.
we are pro’s at this and we are experiencing the aforementioned lack of renters right now.
do you really want to have a battle for renters with a national company that has very deep pockets?
we can rent the apts very cheap indeed if we have to.
give it some thought eh?

#109 bigrider on 05.19.12 at 1:49 pm

#93 and #99 Tony.

What do you do for fun on your days off from the funeral home? LOL (Im just kidding).

I watched your Globe and Mail link but did you happen to notice the one below? ie. big investors get bullish when retail get scared?

I am just as disgusted with stock market performance as anyone else past twelve years. Secular bear market we have experienced since the turn of the century as bad as anything past 100 years but I guess I am somewhat optimistic that next ten years will not be similar to past ten (hopefully better not worse). Even in a low growth environment stcoks look cheap compared to the risk free rate of return (U.S Treasuries)

No such hope in your heart is there?

#110 Derek R on 05.19.12 at 1:53 pm

Interesting little article on Iceland here. Shows that debt forgiveness is one of those silly ideas that works in practice even though it doesn’t work in theory…

#111 Mister Obvious on 05.19.12 at 1:55 pm

I’m in Victoria this weekend. Lovely, as usual. I just picked up the Saturday Times Colonist paper.

There are 6 sections, the last two of which are called “Homes” and also “Homes”. Together, these sections total 20 pages and constitute 25% of the paper.

Why two sections both called “Homes” are necessary I can’t even guess. But optimism certainly abounds on the real estate front here in Tiddlycove.

#112 Canadian Watchdog on 05.19.12 at 2:36 pm

$4.2 million Forest Hill mansion foreclosed. http://i49.tinypic.com/w02l50.png

So it begins…

#113 Herf on 05.19.12 at 3:07 pm

#23 Aussie Roy

I believe what you describe is best summarized by the following proverb:

“Proverbs 22:7 The rich rules over the poor, And the borrower becomes the lender’s slave.” (NASB)

May God have mercy on the lives (and souls) of the indebted, because the banks, other creditors and the taxman probably won’t.

#114 John G. Young on 05.19.12 at 3:10 pm

#90 D-dawg on 05.19.12 at 10:39 am

“I’d do it but chances are it ends up on G’s cutting room floor.”

Don’t be so pessimistic. Garth allows all kinds of comments on this blog.

“Maybe you could do it for us?….yeah….right.”

I’m not an expert on finances. I come here to learn, not to do the bidding of others. I’m sure that’s why you come here too…yeah…right.

#115 John G. Young on 05.19.12 at 3:17 pm

#57 DondWest on 05.19.12 at 1:53 am

I see you’re back.

I’ll alert the 85 year-olds.

#116 MrHulot on 05.19.12 at 3:18 pm

#99 Tony on 05.19.12 at 12:28 pm

I wouldn’t put my money on what Jeff Rubin says. He predicted $200 a barrel oil a few years ago.

#117 John G. Young on 05.19.12 at 3:19 pm

#80 };-) aka DA on 05.19.12 at 9:05 am

“#3John G. Young on 05.18.12 at 9:42 pm
#188 };-) aka DA on 05.18.12 at 7:45 pm

DELETED

You’re seventy-one days early.

DELETED”

You’re seventy days early.

BTW how’s the therapy going?

#118 };-) aka DA on 05.19.12 at 3:23 pm

#105DM in C on 05.19.12 at 1:01 pm
};-) aka DA on 05.19.12 at 9:05 am

#3John G. Young on 05.18.12 at 9:42 pm
#188 };-) aka DA on 05.18.12 at 7:45 pm

DELETED

You’re seventy-one days early.

DELETED

DA’s BEST POST, EVER!

<:-D

DELETED

#119 Blacksheep on 05.19.12 at 3:24 pm

Disciple,

“Blacksheep… Stefan Molyneux is confirmed opposition. Proof: He is closely associated with Max Keiser and Alex Jones, both confirmed actor roles. He also took over the reins for Peter Schiff at certain times, and I’ve already told you a couple of times who Peter Schiff is.”
————————————————-
Disciple, when it comes to the whole, actor/double thing, nobody’s got it covered like you.

So…. How bout that Victoria Grant.
She’ now gone mainstream. On CTV.ca and cbc.ca

What’s your opinion on the content of her message?

take care
Blacksheep

#120 Mark W on 05.19.12 at 3:59 pm

http://www.winnipegfreepress.com/local/triple-whammy-hits-homes-151667585.html

Add zero demographic growth to the mix and tons and tons of land.

#121 brainsail on 05.19.12 at 4:18 pm

#24 T.O. Bubble Boy

“In a few weeks/months, we will all look back at the Facebook IPO frenzy and think of how ridiculous the whole build up was — and housing in Canada is no different.”

That was a very good comparison. Thankyou.

In the last couple of weeks Apple has dropped almost 20% from its high of $644 to $530. I wonder how much of this profit taking was used to throw at the FB IPO? Probably alot. People thinking that the over hyped and highly anticipated IPO would yield them the same results as Apple. People putting all of their eggs in one basket.

I read somewhere in the last couple of days that there have been 50-60 US tech IPO’s so far this year and the average gain on the IPO start date was 30%. The FB IPO was a flop.

This all reminds me so much about the Canadian housing mania. People using their good equity from their primary residence to invest in an additional one hoping to flip it in the future for a huge gain. And then there is my 90 some year old mother that has made alot of money with her 300 shares of Apple and when it hit $644 I suggested she should sell and take a pause. “No way, they say it is going to a $1000 after the Iphone5 is released!” I guess its all just a Canadian thing, something about being different there and gravity does not exist.

#122 Karie on 05.19.12 at 4:26 pm

@Jocelyn – These people have your best interests at heart, right or wrong. How about a smile and “we’ll see…”

@Phil – whether you get a renter or have a landlord, you are getting into a relationship with a stranger that can be fantastic or horrible.

@Peter – To save all your personal relationships, I would kindly decline your parents’ offer.

#123 Spiltbongwater on 05.19.12 at 5:09 pm

“those damn Boomers will bomb the market when they try to convert their pathetic palaces into cornea and knee replacement money.”-garth

People need money to buy knee replacements? This is Canada, the land of universal healthcare, are you saying these boomers will queue jump the less fortunate and go outside Canada as health care tourists? I think I would be better to spend the money I would use to buy a knee replacement and run for M.P. and get front of the line taxpayer funded healthcare, no waiting list required.

There is no such service, of course. — Garth

#124 Westernman on 05.19.12 at 5:48 pm

Debtfree @ # 43,
” By the way, is there anything you do like?”
Yeah, guitars that are tuned good and firm feelin’ women…
Is that watered down enough to get by, Garth?

#125 Monty on 05.19.12 at 6:14 pm

“on a cash flow basis, renting costs a third to a half less than owning, even factoring in today’s dirt-cheap mortgage rates.”

Right. So why is Garth still an owner?

Because real estate is an asset class and having some is perfectly fine as part of a diversified financial life. Just abide by the Rule of 90. — Garth

#126 furst on 05.19.12 at 6:19 pm

A PoEm By FuRsT
Money makes the world go around
But not really
The gravitational rhythms do
Those who learned that
Must have forgotten
For what goes up
Must come down

#127 Westernman on 05.19.12 at 6:27 pm

Well, well, looks like I got a post through… maybe I’ll take a step further in the future and perhaps take a stance on an issue that might just be slightly out of the mainstream – no abrupt control movements of course… I don’t want to appear “rude” …

#128 mark on 05.19.12 at 6:47 pm

I’d get away from those parents as quickly as possible. They’re insane!

#129 Canadian Watchdog on 05.19.12 at 7:18 pm

I regret to inform this blog that as of 48 hours ago, new information reveals OSFI’s regs, guidelines and oversight has turned out to be a sham.

The Department of Finance will have two directors installed on CMHC’s board and will reserve the right to set insurance fees, however for the time being, CMHC will still determine insurance rates.

As for oversight, there will be an annual review by OSFI which was estimated to begin next year some time. OSFI will make recommendations on the basis of its supervisory framework to CMHC’s board of directors, who would vote to implement any changes if necessary. Furthermore, OSFI’s annual review will remain confidential from the public and parliament.

Despite a lack of regulation and more transparency, there will be higher costs for financial institutions to insure mortgages and obtain new capital. These higher costs will be passed down to consumers, in effect raising mortgage loan payments.

As expected, it’s a hands-off policy that awaits a housing crash in order to handout another bailout. This is global looting. There are no rules.

#130 D-dawg on 05.19.12 at 7:23 pm

#108 bill

Well i cant’t speak to what you are doing and the challenges you face. I supect apt renting is different than suite renting. However, Dawg-land you post an add in Craig’s List with some photos. Provided you have a suite worthy of a g-note…..gar-on-te’ed you’ll have 20 e-mails and/or calls within a day.

15 of them will be single moms with 3 kids and two boyfriends, with three kids…not ideal…..give it two weeks you’ll have the ideal renter. Been doing it for 5 years and i have only ever missed one month of g-notes…actually its g+100 notes is what I get at the moment. 60+k$ total over the 5 years.

I’m not good at math but i think i am barely covering all those terrible ownership expenses.

#131 jess on 05.19.12 at 7:56 pm

Richard Dawkins the arch-atheist backs Michael Gove’s free Bible planAuthor of The God Delusion says providing free Bibles to state schools is justified by its impact on the English language

belief systems
http://www.youtube.com/watch?v=8ucVDpmFz-E

http://www.guardian.co.uk/world/2012/may/19/psychiatrist-admits-gay-cure-study-flawed

infant corpses were being offered to wealthy clients through a website advertising black magic services.

The authorities said the remains were bought from a Taiwanese national for 200,000 baht (£4,000) and could have been sold for six times that amount in Taiwan, where it is thought they were to be smuggled.

Black magic rituals are still practised in Thailand, where street-side fortune tellers offer ceremonies to reverse bad luck.

#132 Frank the skank on 05.19.12 at 8:16 pm

I search tirelessly on the Internet for someone who can provide some useful statistics proving that it’s different here in Canada and that housing prices will rise forever. I have not been able to find anything, from any source. I’ve read a lot of “I’m rubber your glue” type of rebuttals and people pushing their self serving agendas. It pains me to see the herd continue to walk towards the cliff, where the ground is so eroded that a fly would cause it to collapse. Seriously, where are our leaders at? Canada will be laughed at for a long time for not mitigating a disaster that happened multiple times across the globe. So can somebody tell me how we are different in Canada without being insulting, condescending, arrogant or rude?

#133 one goat on 05.19.12 at 8:27 pm

#63 clint had a 44 magnum with only 6 shots our gov. has a sub machine gun that shoots m16 bullets.
can’t win!

#134 Investx on 05.19.12 at 8:47 pm

MrHulot on 05.18.12 at 11:57 pm
Hey Garth I wanted to ask you for a long time about the disparity between “Garth the Blogger” and “Garth the radio/TV guest”

I am not trying to be disparaging. This is an honest question.

Why does “Garth the radio/TV guest” come off as pleasant, humble and friendly while “Garth the blogger” an over-confident, overbearing A___hole?
_____________________________

I made the same observation as well, after seeing him on TV (“The Hour” with George S., for example ).

#135 Gun Boat denier on 05.19.12 at 9:35 pm

87 Elmer – make sure to read the link from the 29 yr old who cant land a job. Strange he doesnt tell us what his education is, what job he’s looking for, or where he is located.

#136 P & T S on 05.19.12 at 9:37 pm

Hi WA Surfer!!

We cannot really comment on Canada since only the one of us (Phil) has been there, and that was in the mid 1980’s (was planning to do a Post Doc. there but got a better offer back in the UK!!).

We used to live in South Coast NSW (Shoalhaven) but relocated to Ecuador over a year ago – so if you fancy Ecuador we do have contacts. Worth visiting – it’s the Number One retirement location for US migrants (since it uses the US$ as currency – for the moment (see below!). Living costs are low, and services are perfectly adequate: If you had private health cover in Aus. (and you DO need private cover there!) you’ll find it cheaper here (and the clinicians are better trained – mostly in good US Medical Schools!). Cost of everything is lower, and there are a lot of O/Seas migrants here from, well, everywhere!

We rent: Maybe we’ll buy if the right place is available, but renting here’s not as “scandalous” as in Aus., especially if you rent in the “top end of town” – and for a small fraction of the rent on an Aussie condo, you can rent a Spanish era hacienda with mahogany doors, and a fountain in the cobbled courtyard! We live 20km inland, and the cost of a round trip into town (by taxi) is ONE $US!

If you choose to work, Spanish is the local lingo, and there are lots of courses for non-Spanish speakers. The lady who helps arond the house is teaching us both the local dialect, which is an added extra (housework and language lessons for US$ 5 a week – beat that in Aus!) The local economies are expanding, and there are loads of opportunities here should you wish to work. Definitely the feeling is that the South Americaln economies are heading to expansion, whereas the rest of the World heads for contraction.

On the matter of contraction – one for our host the Rt.Hon.:- One day the US$ will cease to be the World’s Reserve currency – and this is just one of very many articles exploring the consequences. Seeing as the US has successfully p****d off even their closest colleagues over the past decades (e.g. funding the IRA’s bombing campaigns agains the UK – ” a useful means of regulating the UK Economy for the benefit of the US”), it’ll be very interesting to see just how many other skeletons are lurking in the cupboards of the CIA, and others!

“Don’t bet against the US”?? – I’m sure the same was said when Spain, England, Rome, etc. “ruled the World”. Everyone’s days at the top of the pile are limited, and the durations of World Rule are getting shorter . . . . . .

http://www.alt-market.com/articles/784-how-the-us-dollar-will-be-replaced

#137 Onemorething on 05.19.12 at 9:47 pm

Your aunt is possessed. Run. – Garth

Dont stop there, the possession has reached massive proportions in CANADA.

It’s okay, they are zombies before and after the crash!

The DEBT is constant, the market the variable!

#138 Mr Buyer on 05.19.12 at 9:52 pm

#129 Canadian Watchdog on 05.19.12 at 7:18 pm
I regret to inform this blog that as of 48 hours ago, new information reveals OSFI’s regs, guidelines and oversight has turned out to be a sham.

The Department of Finance will have two directors installed on CMHC’s board
………………………………………………………………
If I am not mistaken OSFI’s regs, guidelines and oversight apply to the banks and not CMHC. I believe OSFI’s regulations apply to lending practices and not mortgage insurance. As for these regulations and guidelines they will impact only the timeline not the ultimate outcome (which will be a crash that will eclipse even the epic scale of the real estate bubble). BUYER BEWARE. NOW IS NOT THE TIME TO BUY A HOUSE. THE BUBBLE HAS TOPPED. SALES ARE FALLING ACROSS CANADA.

#139 Marshy on 05.19.12 at 10:16 pm

Westernman @124

“firm feelin’ women”

Did you mean the blow up kind? …. just wondering.

#140 Pr on 05.19.12 at 10:34 pm

That is the guy who took the check ,for is sold house, from the notary last Friday!

http://theeconomiccollapseblog.com/wp-content/uploads/2012/05/Eject-440×509.jpg

#141 Mister Obvious on 05.19.12 at 11:16 pm

The audience for this blog is not the same as the audience for the CBC’s ‘The Hour’. One should not be surprised by a somewhat different ‘delivery’ depending on the communication platform. Makes perfect sense.

For example, you see Jay Leno doing his 10 minute monologue nightly at the start of his show. Yeah, its kind of funny most nights. But then you go to see him doing a live 90 minute no-holds-barred show at your local casino showroom. No comparison. It ain’t family night, if you know what I mean.

Muse on that for a while and Garth’s apparent chameleon-like persona will not seem so odd.

#142 Mr Buyer on 05.19.12 at 11:23 pm

Nice try at making the crown corp. CMHC THE bubble propagator. CMHC was created and in place to facilitate home buying by lower income families and filled that role admirably until this government changed its role into acting as a key element in enacting this government’s policy of creating and inflating this horrific real estate bubble.

#143 daystar on 05.19.12 at 11:31 pm

#104 Blue Monster Lover of Meats and Vegetables on 05.19.12 at 1:00 pm

Watching governments waste mountains of money and paying public sector rich compensation and benefits in a monopoly non-competitive system is not what I worked hard to support. – BMLMV

When it comes to for profit services the same can be said that costs will rise and quality will suffer with some services like insurance. Do you know why Canada ended up with so many crown corps, do you know Canadian history?

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

Close to 90% of our crown corps back in the day came into existence because private corps couldn’t make a go of it. They either couldn’t generate the Canadian capital to invest within a guns to their head mentality “make money or die” environment and many did die, or foreign corps wouldn’t touch us. Whether it was railways, commodities telecomminications, healthcare or otherwise, government came in where the private sector either could not or would not due to the costs of development and/or expectation of services that needed to be provided like health care to the poor. The alternative was foreign investment that literally owns your resource and gives you a small royalty and lower wages for development and depletion while the tax base gets nothing from foreign corps, hardly a thing of realistic government desire.

Wheat board existence? Farmers couldn’t sell wheat and those who they could sell to kept going broke. Farmers need to cash cheques to make it, y’know? Do you know why private/public healthcare is split in the way that it has? Same reasons, expensive healthcare treatment would be denied to the poor. Private simply wouldn’t offer inclusive services. Offer public service and there is no need for insurance (unless you live in a province that thinks so and taxes you for it, a dumb tax grab I think is unfair double taxation but thats another story). For profit healthcare couldn’t guarantee inclusiveness, the main reason why government stepped in.

Why so many crown corps? Mainly private corps couldn’t take it on and if government didnt’ step in, it didn’t get developed or done. Universal service just doesn’t get provided by the private sector if they can’t make a buck. What does for profit healthcare service do for the poor? You know the answer. Canadian lives have value here, even poor ones.

If the Canadian private sector won’t develop strategic assets like potash and uranium or foreign corps won’t pay corporate taxation, where is the incentive for government to go with private investment? Its still about jobs, jobs, jobs, right? Develop it publically. Same dif.

Do you know your history? I’m trying to understand all this “socialist” talk like its a bad thing for people to get together and pool their wealth. After all, isn’t that what private corporations do? Get a bunch of people together and pool wealth? Hey, if a bank won’t support the venture, what choice is there for government? Invite foreign investment to “own” the resource and extract the wealth for a wage and say goodbye to tax revenue potential had it been developed domestically? Dumb governments would. Dude, thats what we do world wide in commodities in the second and third world, its a big part of how Canada generates wealth, have you seen our equities in Toronto and where we do business? Please don’t tell me you are naive.

As for manufacturing, Canada is not the place to be unless you can make an exclusive product that is in demand with Canadians themselves. Otherwise, the loonie isn’t kind. Come back when the loonie falls because it will but in the meantime, brush up on your history.

“Where’s the morality in taking from those who succeed to give to those who don’t?” – BMLMV

Are you suggesting that governments shouldn’t spend money on education since children shouldn’t go to schools because they aren’t productive, or seniors shouldn’t get pensions even though they contributed to pensions and taxes because they aren’t productive, y’know, old… and the ill shouldn’t be treated by hospitals if they can’t afford it because they aren’t productive?

Did you really mean that?

“Taxation and inflation are stealing, legalized theft but stealing none the less.”

I guess all nations steal! Wow! Holy!!

“The only defense a person or business has is to not succeed or to shelter their success or leave. That’s the incentive created by heavy taxes in a bloated public service oriented society.” – BMLMV

https://www.cia.gov/library/publications/the-world-factbook/fields/2221.html

You can always go manufacture goods in Afghanistan. Tax levels there are a meagure 8.8%. Forward thinking Nigeria comes in at a frugal 9.9% collective tax on GDP. Taiwan, Phillipines, Pakistan, tax rates are in the mid teens, labour is dirt cheap, maybe thats it for you! You don’t need to be one dimensional or one nationary, its a big world, best of luck and I hope your taxation shopping works out for you. :)

#144 Canadian Watchdog on 05.19.12 at 11:45 pm

#138 Mr Buyer

No, because any bank loan that is insured under CMHC must follow their underwriting standards. If a bank wants to loan at 95% LTV uninsured, they may do so, however, no bank will issue risky loans without insurance since their only intention is to securitize it in a short time.

It seems as though they are ring-fencing CMHC considering the talk was mainly about credit, operational and management risk. It was also stated that one of the directors is a portfolio risk manager from the Department of Finance.

I believe they are preparing for a market downturn.

#145 Bill on 05.19.12 at 11:49 pm

Truth hammer, westernman and blue monster are completely insane…. I’m certainly glad they will be leaving and, presumably, setting up shop someplace without government. I hear that Somalia is nice this time of year – no government and plenty of fellow extremists. So long losers.

#146 ozy - depression at horizon in canada on 05.20.12 at 12:06 am

Depression at horizon in canada – see energy, materials, financial stocks last 30 days, DISASTER, DISASTER, DISASTER
Expect more ripoff from govt. via inflation, rising taxes (like HST and LTT were not enough) and bailouts to the smart corporations…made you vomit?

#147 ozy - time to SEELLLL on 05.20.12 at 12:09 am

Time to SEELLLL all RE you can (so, if you only have one, you won’t). Next time buy more when is cheap, just ask your employer more dough, don’t work cheapo manno! Slavery has been abolished legally.

#148 ozy - ask for a 10% increase on 05.20.12 at 12:11 am

We should all ask for a 10% increase, company should have no problem providing it. Real Estate was up 25% in most valuable area where the approvers are living, so they WILL surely understand, just ask.

#149 Junius on 05.20.12 at 12:20 am

#64 TRT,

I second that. I do not agree with you on many issues either.

#150 Nostradamus Le Mad Vlad on 05.20.12 at 12:37 am


I had two Leafs tickets lying on the dash of my truck, when some asshole broke in and left two more; lock your doors! — Just wondering — was it really 1467 when the Toronto Maple Juggernauts (as they were then known) last won Lord Stanley’s mug, beating Robbie Burns’ XI in the final? Time flies!
*
#129 Canadian Watchdog — “This is global looting.” — Yep, and we’re suckers for punishment because the banxters continue getting off scot-free.
*
G8, Iran and Oil Markets “Europe’s economy teeters on the brink, with banks runs in at least two countries and riots in most of the rest, threatening to shatter the whole European Union and because of the credit default swaps, push Wall Street over the edge as well … and the G8 is spending their time slapping Iran around?” wrh.com; Homeless This is no joke. Illinois requires a home address for street people; US$642 bln. for the military? FB It’s a pump-and-dump operation, like Nortel, Bre-X etc. and FB #2 “All those Wall Street banks that bought huge blocks of Facebook stock to prop up the price on Friday, including Morgan Stanley, JPMorgan Chase and Goldman Sachs, are going to have a really bad Monday! This will be strike two for JPMorgan Chase!” wrh.com; Twenty US Cities that are being hit with 4closures; Robert. Reich to college grads — “You’re (naughty word); USPS Engineered austerity; 29:49 clip What is happening with metals? Frankenstein a.k.a. Europe; Centralization About to reverse or disappear? Are sheeple waking from their slumber?

UK’s Financial Tsunami 2008 x 1000, and Worse off; Greek EZone Exit Cost That’s why Germany and France are shitting bricks! Plus Drachma printing; Concerning the Queen of England; Screwing Sheeple in one pic; Morgan Stanley and FB; 7:26 clip Exploding Nassim Taleb? Smokiing Man Warren Buffett partly agrees with you; Out of sync UBS explains why.
*
6:22 clip Fascinating look at a lady cellist, playing for and with elephants. The communications (vibration) between them opens up; Monsanto and Africa US$50 mln. ‘investment’, while the west’s war pigs are already in the process of destroying it; States ban UN Agenda 21 policies; 26:15 clip Last year, there was the Arab Spring. This year, it is the American Spring – Summer – Fall, etc.; Turkey – Israel More fisticuffs? Ohypocrisy Why are fed. agents shutting down small farms and ending Farmer’s Markets? The right hand doesn’t know what the left is doing; Hidden in Plain View and Here is the document to prove it; Jeopardy! The ‘power-players’ were on, and they continually managed to embarrass themselves. These people are critical thinkers? Gluggglle New reasons to switch to alternative search engines; Shake, Rattle and Glow Japan’s nuke facilities; Denmark Good for them! Haunted House? No, just sheeple dragging their ball and chain; Polish Supercar Similar to the Batmobile? 2:13 clip CME’s, supervolcanoes etc.; and 14:45 clip Planetary alignments and stuff.

#151 Daniel on 05.20.12 at 12:51 am

I was thinking about interest rates and bank profits recently.

The banks are offering people interest rates of 3% and people are taking $500,000 in debt. So, many people are taking on large mortgages because of low rates.

What a great business model, suck everyone in with low rates and huge debt, then raise rates in 5 years when people renew.

Of course all banks would have to be on board, but it makes sense. Most people that want a mortgage have one, they don’t need “new” clients – they already have “old” clients with millions in mortgage dollars. Why try to get the new customers at 3%, when you can just keep your old customers at 5% and make even more money without any work!

I thought about this when Godaddy re-registered one of my domains at $12.99. When I signed up they got me with the $6.99 introductory offer. Now I pay $12.99 per year and they don’t need to market for more customers! Genius.

#152 Daniel on 05.20.12 at 1:52 am

#102 Ben…

Facebook IPO was a flop and I’ll tell you why…

———————————————————

hahahahah, you idiot. The FB IPO was a huge success, especially for the reasons you outlined.

It was a huge success for all the people that got in early; it valued a company with crappy advertising, a little revenue, or revenue possibility at 100B!!

The IPO was a huge success! It’s those that get in now that will flop.

#153 ekstso on 05.20.12 at 2:09 am

http://ca.finance.yahoo.com/news/victoria-grant-video-canadian-banking-123700315.html

#154 Aussie Roy on 05.20.12 at 3:03 am

Aussie Headlines

RE industry peak body (HIA) screams for govt help to keep ponzi going.

Australia’s residential property industry is facing its worst conditions in decades and heading for recession, it is claimed.

Large and small builders, and building product manufacturers have issued a blunt warning that federal, state and local governments must act now to head off the looming recession in the residential building industry.

‘New home building has collapsed and jobs are being shed right across the country. The Australian housing industry is facing its worst conditions in decades,’ said Shane Goodwin, managing director of the Housing Industry Association.

It was different here, until it wasn’t.

http://www.propertywire.com/news/australasia/australia-real-estate-warning-201205186543.html

#155 Herb on 05.20.12 at 8:11 am

#143 Daystar,

beautiful, Lorne, just beautiful. Too bad it’s wasted on malevolent morons.

#156 First to last on 05.20.12 at 9:06 am

Everything is going to be fine. F says there’s no such thing as a bad job so that just solved the unemployment problem…

#157 TurnerNation on 05.20.12 at 9:11 am

See: TLT.US etf.

Treasuries in Longest Winning Streak Since ’98 on Europe

Treasuries posted the longest streak of gains in more than 13 years, pushing 10-year yields close to a record low, as investors sought the safety of U.S. government securities while Europe’s debt crisis worsens.

I can’t make the argument for rates to move up visibly higher from here because you still have all of these forces weighing on the whole U.S. rate structure,” said Kevin Flanagan, a Purchase, New York-based fixed-income strategist for Morgan Stanley Smith Barney.

http://www.bloomberg.com/news/2012-05-19/treasuries-in-longest-winning-streak-since-98-on-europe.html

#158 Van Isle Renter on 05.20.12 at 9:25 am

Just looked at an open house down the street out here on Van Isle. Beautiful home… stunning really… Dropped in price by $200K over the past two years, probably still $100K over the market. And about $150 over where I’d be willing to write the cheque.

The funniest part was the realtor’s breathless support of another realtor’s attempt to ignite a bidding war on a nearby property. It was if she felt that we should be impressed and that it was a reason for us to get into the market.

As my wife and I discussed, if we would have bought that house two years ago it would have cost us roughly $8,000 per month to live there.

Nice place, but not that nice. We’ll keep renting. And did I mention that my landlord is stopping by next week to clean the gutters and power-wash the house and driveway?

Me? I’m going fishing. Nice Spring salmon run going on.

#159 daystar on 05.20.12 at 9:48 am

#155 Herb on 05.20.12 at 8:11 am

Now, now, Herb, everyone’s got their own learning curve, we all have to start somewhere, he’ll get it. It might take a few life times (generally a whole lot more for us all, truth be told) but he’ll get it. Not everyone is on the same level y’know? We just need to adjust for it. :)

You should have read what I was originally going to send. Completely different, totally off topic and twice as long so I scratched it but it was good. Have a good one!

#160 robert james on 05.20.12 at 9:49 am

HAM in a hurry. Will there be more HAM ers getting out of Vancouver ?? http://vancouver.en.craigslist.ca/van/reo/3026416518.html

#161 Ben on 05.20.12 at 9:57 am

#152 Daniel on 05.20.12 at 1:52 am

“It was a huge success for all the people that got in early”

——————————————————

And flipped it for a couple bucks profit, twice.

#162 Kaganovich on 05.20.12 at 10:11 am

Daystar

Don’t waste too much time trying to legitimize a mixed economy or pointing out the historical context of crown corps to cookie monster. The poor soul doesnt even believe there is such a thing as society! But good post btw.

#163 TurnerNation on 05.20.12 at 10:20 am

“Welcome to HarperNation, home of the Whopper Mortgage. May I take your order”?

#164 T.O. Bubble Boy on 05.20.12 at 10:28 am

I agree that the Facebook IPO was a smashing success for insiders… They left zero money on the table. One could argue that this was one of the most “efficiently priced” IPOs in history, given the tiny difference between offering price and the closing price.

#165 Ben on 05.20.12 at 10:45 am

#161 T.O. Bubble Boy

I agree that the Facebook IPO was a smashing success for insiders

———————————————————-

No it wasn’t, insiders didn’t make s hit on this IPO… unless you think they got their hundreds of million shares at $20 or something? LOL

#166 Ben on 05.20.12 at 10:54 am

As you know by now, a “bubble” is when an asset reaches an unsustainably high level due to artificially stimulated demand.

Housing is entering a historic bubble because government policies such as excessively (artificially) cheap credit has inflated the price of real estate to nosebleed levels. The real estate mania in Canada has buyers going berserk.

Housing in Canada is at a dangerous phase and real estate investors and speculators will get hammered. The bottom line is that when an asset (real estate, stocks, whatever) gets bid up to high levels artificially (a level way above its true market price), the next step will be a painful plunge.

#167 John G. Young on 05.20.12 at 10:56 am

Garth, I wanted to thank you for giving me/us a break from Westernman’s hatred. Since that now appears to be over:

#124 Westernman on 05.19.12 at 5:48 pm

“” By the way, is there anything you do like?”
Yeah, guitars that are tuned good and firm feelin’ women…”

I have never heard a straight man say he liked women ‘firm’; as much as the thought repulses me, perhaps Debtfree (#43), Marshy (#139) and others are on to something when they suggest you’re just a big ol’ closet case. (Interesting how you never respond to THEIR posts…)

After all, we already know you’re a fake cowboy like H. (In your case you said you took your “rugged good looks” away from Toronto because you were tired of getting hit on by guys, although judging from your personality I suspect it had more to do with fleeing a warrant.)

#145 Bill on 05.19.12 at 11:49 pm

Re Truth hammer, Westernman and Blue Monster: “I’m certainly glad they will be leaving…”

Would that that were true. Sadly, I suspect that they with us forever; it seems that the only pleasure they derive from life is in trying to make others miserable, screaming the same thing over and over and over.

#168 timbo on 05.20.12 at 11:08 am

http://www.ritholtz.com/blog/2012/05/syndicate-if-you-can-get-it-run-the-other-way/

“In the end, the age-old Wall St. adage proved true yet again: Retail investors should be circumspect (to put it politely) of any offering they’re able to get their hands on. If you can get it, chances are you don’t want it.”

lets just see if Facebook face-plants, hype e-damned…

http://www.telegraph.co.uk/finance/financialcrisis/9277428/Spain-reeling-over-financial-fears-Will-my-money-be-safe-ask-customers-in-Madrid-banks.html

“The central bank announced late that evening that the level of bad loans on the books of Spanish banks was at an 18-year high, fuelling concerns about the financial sector in the eurozone’s fourth-largest economy.

Then the finance ministry said late on Friday that the deficit could reach 8.9 percent of GDP after four of its 17 regions overshot their expected budgets. ”

kicking the can down the road does not solve the problem. It just gives you more time……….

#169 Harlee on 05.20.12 at 12:28 pm

#146 – ozy
It all starts on May 27th. The End of the World. This time it’s real,you can count on it. An evangalist ,whose name I can’t remember at the moment,said so.I’m hitting a bar on the 26th and getting drunk ,spend all my money at a casino and maybe find myself a firm feelin’ woman.Become a combo of SM and WM for one day (what else can a guy do when Armageddon beckons…?)
#150 Nostradamus
No…it was only in 1867 when the Leafs last won The Cup.Macdonald had just been sworn in as PM but couldn’t get to the game because he was suffering from another hang-over (he was famous for them). I read this in a Charlie Farquarson book so it must be true.Good ol’ Charlie wouldn’t lie to us ,would he ?!

#170 Gun Boat denier on 05.20.12 at 12:32 pm

155 Herb – I am supposed to ask my local
government what colour I can paint my house. They had
to hire people to write a huge document for it, involve
elected representatives to debate it, staff now has to
review it and issue a permit, and there has to be
someone to patrol and enforce it. They are raising
everybody’s property taxes by 10%. Great use of the people’s money.

#171 Gun Boat denier on 05.20.12 at 12:54 pm

67 Blue Monster from last thread

$25K for a bicycle? I can get better deals than that:

Specialized S-works SL4 – $11K
BMC Team SLR01 – $12999
Pinarello Dogma – $16K
Trek Madone 6.9SSL $11686

Or is yours a TT bike? I might go higher for that.

#172 brainsail on 05.20.12 at 1:00 pm

“The Failure of Facebook’s IPO”

“Company filings after the market closed on Friday night however revealed the extent to which the banks who led Facebook’s initial public offering – in which $16bn of shares were sold to new investors – were forced to move in to the market and buy shares in order to keep the price above the $38 level. Morgan Stanley, Facebook’s lead financial adviser, ended the day with 162m shares, worth $6.16bn. Other banks including JP Morgan and Goldman Sachs also bought shares, ending the day with $3.2bn and $2.4bn holdings respectively.”

http://www.forbes.com/sites/timworstall/2012/05/20/the-failure-of-facebooks-ipo/

#173 FI Guy on 05.20.12 at 1:04 pm

“#144 Canadian Watchdog on 05.19.12 at 11:45 pm

#138 Mr Buyer

No, because any bank loan that is insured under CMHC must follow their underwriting standards. If a bank wants to loan at 95% LTV uninsured, they may do so, however, no bank will issue risky loans without insurance since their only intention is to securitize it in a short time. ”

Canadian banks are legally required to ensure loan insurance is obtained if > 80% LTV.

Interestingly, significant discounts are being provided for client-insured mortgages (more profitability). So, if you have high credit quality, put 5% down, you might be able to obtain a better mortgage rate than someone refinancing up to 50% LTV – less profitability because not insured & cannot securitize as readily (without portfolio insurance). This is a difference in the “liquidity premium” of a mortgage rate.

#174 1drs on 05.20.12 at 1:05 pm

Wow ! The waco right wing haters are really at it on the comments these days. But still , Garth toils on, Thanks for that.
This blog entry reminds me of a little family drama a few years back.
A young couple in the family couldn’t afford the prices in Vancouver (how could that happen ? ) so the in-laws offered to buy a new home with a largish basement suite to allow the young couple to get some equity going and thus be able to purchase a home on their own. The young couple bought into this idea and they were subsequently put on the mortgage as co-owners and they paid their half of the mortgage for the next 9 years.
After 9 years the young couple had aspirations of their own and 2 children so they went to the in-laws and said “We want our equity out now so we can buy on our own” . Of course, the boomer parents were outraged. “We won’t be giving you ungrateful losers anything, but you may leave at the end of the month so we can get a renter in”.
One lawsuit later , the house is sold and the proceeds divided up . The in-laws no longer speak with the young couple or their grand children. The young couple lives in a nice 3 bedroom town house on the fringes of Vancouver and the in-laws still have a mortgage on their new SFH . . . So, if you hate your parents but just don’t know how to tell them , get into a real estate deal with them and the rest will follow . Or, as Garth says , you could just RUN !

#175 TurnerNation on 05.20.12 at 1:09 pm

Over in “BPOE” a spate of Whistler business closings. Buildings forclosed.

http://www.piquenewsmagazine.com/whistler/macs-opening-three-restaurants-now-closed/Content?oid=2299878

#176 DM in C on 05.20.12 at 1:21 pm

Yeah, guitars that are tuned good and firm feelin’ women…

Ahhhh any man that can quote Waylon Jennings can’t be all bad……

#177 Dan in Victoria on 05.20.12 at 1:36 pm

BMLMV @104
“If you have ever struggled to start a business and suffered the hardships over decades while barely making enough to survive maybe you would understand where i’m coming from.”

I have and I do.
I could go on for ever about employees stealing, padding hours, contractors and home owners not paying their bills. Other contractors not having insurance, no compo,not taking permits out, working under the table…….
On and on.
But you know what I survived, I made it and I’m so happy to have what I have.
I’ve lost count of the people that I’ve given a chance to, gave them 20 bucks to get by.
Donated time, money, materials to the less fortunate.

You know what my biggest complaint is ? Government the way it is today.
Its out of control.
Unfortunately the fight is gone out of me now. My friends are all slowly dying off , all I want is to get a couple more decades of healthy life and it will have been a good run.
Manufacturing in Canada is a dead issue you know that, you’ll have to adapt or be crushed.
Your business model must change and adapt to survive.
Thats a fact deal with it.
Don’t hate Canada, move on to where ever to survive.
Many contributors here have done that and post about it.
Just leave the hate out, it’ll eat you up inside.

And yet many of us are still in Canada posting away trying to wake the masses up, trying in our small way to make things better.
Good Luck.

#178 Foggy on 05.20.12 at 1:39 pm

@152 Daniel:
…The FB IPO was a huge success, especially for the reasons you outlined…

———————–

In fact, it has been widely reported that the underwriters had to step in to prevent the stock from falling below its $38 issue price, which would have truly been an unmitigated disaster. This type of “pump and dump” is supposed to be illegal. No doubt they (Morgan/Stanley) will continue to prop it up on Monday until the whole sham becomes obvious to everyone.
Maybe Facebook should merge with Twitter and MySpace. They could call it “MyTwitFace”.

#179 MarcFromOttawa on 05.20.12 at 1:39 pm

#102 Ben
The timing of this IPO couldn’t be worse with the world markets in a nose dive.

The Nasdaq is 10% off it’s all time high and more than double where it was in March 2009. Smells like fearm mongering.

#180 truth hammer on 05.20.12 at 2:20 pm

Why is it only people with government jobs that are adamant that Canada’s socialist system is perfect…..? Gee…do you think they have an agenda?

Blue M…..don’t be surprised to find yourself in the majority. If anything speaks volumes about the true state of affairs for private enterprise in Canada it’s the numbers of working ex pat business owners you’ll meet in places like the Bahama’s , Thailand, Singapore etc.

If truth be told smart people are exiting the country in droves in order to particapate in the economy of canada as little as possible….some very signifigant numbers of professionals leaving altogether.

What you won’t find is the true diversity of opinions ‘published’ in the Canadian media and so the ‘comments’ of many still remained mired in the catch phrases of the 1970’s…..as if these people have no ability of their own to formulated individual thoughts. News flash……Trudeaumania is dead …..but the union halls and politically correct government work force appointed under the past legacy system is bellowing the echo of a past ideology…..to a succeeding generation who doesn’t want to listen.

If the Liberals in our society are wondering what happened to their majority and why they have crashed so miserably, it is that a majority of Canadians are waking up from the drugged out state of bitter propaganda and failed ideology they were force fed over a period of three decades of political manipulation of Parliament.

Remember people……when they start taking 100% of your paycheque….that’s called communism…..and what are we at now….direct and indirect taxation…..just over 80%….the writings on the wall……for a new generation that doesn’t have 80% to fritter away….theres no more ‘wriggle room’.

We now pay more that 80% of pre tax income on housing alone…….no one is able to live on the net benefit of their labour……..something has to give.

IMHO……the housing situation is a symptom of a much larger disease…..and we know what unchecked diseases do eventually.

“If the Liberals in our society are wondering what happened to their majority and why they have crashed so miserably, it is that a majority of Canadians are waking up from the drugged out state…” Actually a majority of Canadians did not vote for Mr. Harper. — Garth

#181 John G. Young on 05.20.12 at 3:25 pm

#192 truth hammer on 05.18.12 at 8:35 pm

“blah blah..you know I’m right…deal with it.”

If we all “know” you’re right, then why do you and your ilk feel the need to keep yammering on and on and on and on and on about it?

#182 Devore on 05.20.12 at 3:36 pm

#176 DM in C

Haha, I was just about to Google because those words sounded mighty familiar. Hats off to Westernman, the cowboy’s cowboy! The neanderthals so crudely implying latent homosexuality can crawl back into their caves. That’s so 1980s, they should get on with this whole “progressive” thing already.

#183 John on 05.20.12 at 3:36 pm

Freedom First wrote:

I like diversified assets, cash, cash flow, and NO debt is good debt. Requires hard work, discipline, creative thinking, and what Warren Buffett said when asked what he thought about what “so and so said”, Warren said: “I don’t care what anyone else thinks.” The difference between Mr. Buffett saying this, and the no cash house horny saying the same thing, is, Warren Buffett is smart.
///////////////////////////////////////

If you believe that the financial scenario today has as it’s best message your conclusion and strategy, you’re mistaken.

All that “hard work, discipline, creative thinking and not caring what anyone else thinks”…in what? Getting out of debt and workin’ the ponzi?

Huh?

When a building is burning, getting out of the building is cool, but building a pup tent in front of it doesn’t make much sense. If you don’t think that’s a good assessment of what you are proposing, spell out you’re understanding of the opportunities in the world right now. That should confirm the obvious. Your sideline is a cliff of denial. Popcorn or not, “hard work and creativity” or not.

It’s an uniformed delusional position…it may not even be that much better than buying a new house in Vancouver next Tuesday.

Warren Buffet is smart? His world is built on Alan Greenspan. Is yours? It sounds as if there is no understanding of the actual problem and thus a closed door to the huge, winning opportunities.

#184 Westernman on 05.20.12 at 3:39 pm

Truth hammer @ # 180,
I couldn’t have said it better myself… although if I would have tried I’m sure the DELETE would have been employed…
Oh well, I’ll take a swing at it anyway…
It can be stated that a majority of Canadians at this stage of our colonial development have no interest whatsoever in personal freedom – they are quite happy being slaves and paying about three quarters of everything they make to Nanny State in return for more regulations, taxes etc. etc. etc.
Just look at this blog, just the mention of individualism, personal responsibility, free market principals and the like brings screams of pain – and these are the enlightened ones – imagine what the average Canadians is like…
As our delete happy host would say – this will not end well…

#185 Westernman on 05.20.12 at 3:44 pm

John G. Young @ # 167,

DELETED

#186 coastal on 05.20.12 at 3:59 pm

#179 Linda from the previous thread.

Your friend’s imminent divorce is one major point that is severely and intentionally overlooked by the MSM and dumbass rookie agents attempting to spin real estate.

With more and more people living common law, they are not a trackable statistic when things break down. I bet in many cases one person winds up with the house and the kids with a much larger mortgage payment and the other person gets a cash payout but usually will not be in a position to repurchase because that person is most likely paying child support which comes right off the top of any income qualifications for a new mortgage. You can only see that tightening worse with the banks already in choke mode.

With the HELOC’s explosion, I would gather there will be a major increase in both people being totally screwed as per your friend. Divorce talk in the real estate world is a big taboo where families are happy forever and there is never a real life crisis.

#187 Jonno on 05.20.12 at 4:17 pm

#179 Marc from Ottawa I think you meant
Currently the nasdaq sits at 55% 2778.79 of its all time high close of 5048.62 from mar 2000. It sits at 219% of the mar 2009 low. My comment. It currently also sits below its 2007 peak hardly a stellar 5 year return. YTD it is up 4.9% a healthy return if you locked in any profits. I am not even going to pretend to know where it will end for 2012.

I know of no investor who holds the NASDAQ as an index over a five-year period. — Garth

#188 Canadian Watchdog on 05.20.12 at 4:18 pm

#173 FI Guy

I’m talking about cash back mortgages and people who borrow down payments from LOC to avoid the insurance premium. There are many real >80%LTV borrowers appearing as <80% LTV loans.

The 'ultimate' goal for banks is to make crappy loans in order to gain high yielding premiums — securitize it — then sell it as low risk AAA.

#189 TurnerNation on 05.20.12 at 4:57 pm

Facebook IPO trading was rigged/broken. Opening was delayed a few times and NASDAQ level 2 quotes were broken for much of the day. Many US major execution venues (Knight, Citi, and so on) were unable to get fills or outs on their orders ALL day! At end of day NASDAQ sent an email offering to manually reconcile all outstanding orders/fills.

What kind of free and open market is that.
Trading blind.
After noon, at $40 level there were over 2 million shares bid. The level held. Then, the bids were suddently pulled and it fell fast, in short order.

Leading up to the close there were over 8 million shares bid at 38. In the final minutes it fell to 5m..4..3..2…by some miracle $38 held. After hours in thin volume it traded up to 38.42.

Final score: Goldman Sachs 1, Retail 0.

#190 brainsail on 05.20.12 at 5:19 pm

RUN…

“Facebook has yet to show how it will cash in on members using the service from smartphones or tablet computers. Ads are only displayed when people visit Facebook from desktop or laptop computers.”

“More than half of Facebook’s approximately 901 million users connect with the social network from mobile gadgets each month, according to Chowdhry.”

http://news.yahoo.com/facebook-stock-limps-monday-142511626.html

And from the comments section.

“Typical Wall Street and media hype here. Just like they hyped the housing bubble. Anyone with common sense should have known that when the cost of housing outpaced wages it will crash sooner or later.”

#191 Junius on 05.20.12 at 5:52 pm

Does anyone else think that Truth Hammer and Westerman should get a room? I haven’t seen such a Conservative love in since Reagan and Mulroney. Oh wait, they would both be Liberals to these 2 neocons. Maybe since Dick Cheney looked in the mirror?

#192 Elmer on 05.20.12 at 6:12 pm

Here’s a photo you can use Garth: http://beta.images.theglobeandmail.com/archive/01259/allowance_1259907cl-8.jpg

it made me LOL

#193 Ben on 05.20.12 at 6:25 pm

#179 MarcFromOttawa

The markets have given back everything they gained in 2012 in the month of May and May ain’t over.

Sell in May and Go Away

Actually, this is when smart people buy. — Garth

#194 Nostradamus Le Mad Vlad on 05.20.12 at 6:59 pm


One of the questions from a career placement test given applicants for a job placement was:

“Rearrange the letters P N E S I to spell out an important part of human body that is more useful when erect!”

Scroll down for the answer . . .

Those who spelled spine become doctors, the rest of us are gigolos.
*
#169 Harlee — “No…it was only in 1867 when the Leafs last won The Cup.” — Thanks for the update! It leads to an interesting, but hypopathetical question:

If the Trawna Maple Sausages and Vancouver Gay Lumberjack Dandelions were to meet in Lord Stanley’s omelette, series tied 3-3, last game tied 3-3 and about to start OT, then (without warning) the world exploded and no winner is ever declared, which city would riot first? Hmmm. That’s a real poser!
*
FB “Facebook turns people’s private information into its own private income stream.”; G8 and Iran “This has historical precedent. The United States got out of the crash of 1907 by getting into WW1. Then they got out of the crash of 1929 by getting into WW2. Here we are in the crash of 2008 and look how hard they push for WW3, trying to erase the red ink on the balance sheets with the red blood of your children. Did you ever stop to think that prior to the creation of the Federal Reserve, there was no such thing as a world war?” wrh.com; JPM Interesting, because last week there was a link which said that all this JPM activity was a front for GS to hide some its dirtier dealings, which they didn’t want known; UAE cancels debts Nice owners! Property Tax Revolution! Starting in a few states; TPTB “We are going to have to get used to eating beans and rice for a while.”; Options What happens when the pantry is bare? HSBC Ready for drachma; Boomers Mass vaccinations, here we come so no CPP – OAS – GIS or SS; It’s 8 am — Where is our tax money going?
*
5:05 clip Watch (if you can) and try not to die while laughing hysterically! Military War? No, energy war; NATO Mass Murder Gotta start somewhere, so here are the three patsies to kick things off, and 2:33 clip; Cameron All politicos are where they are supposed to be, at the beck and call of TPTB; Further description of sheeple “The new tyranny is arising in the West, not in Russia and China.”; Exercise in Futility War games in the ME; Bayer and CCD “CCD is Not a Disease.”, and Govt. tyranny; New Thalidomide drug is available; FB Signs of desperation?

#195 TurnerNation on 05.20.12 at 7:16 pm

Coboconk Ontario’s historic Pattie House is closed and for sale. Area cottagers may remember this place. Sign of the times.

http://www.icx.ca/propertyDetails.aspx?propertyId=11682308&PidKey=227247922

#196 DM in C on 05.20.12 at 7:54 pm

Devore;

Yep, I may not like Calgary cause it’s got more money than brains…. but the whole cowboy persona works for me.

Don’t forget the gland-equipped Silverados. Tres butch. — Garth

#197 John on 05.20.12 at 7:56 pm

The blog is packed with info and personality…lots of good comments and endless links. The “Westernman-Delete” association is one more flavor. Very funny.

#198 TurnerNation on 05.20.12 at 8:28 pm

Looking for a short squeeze in US market tomorrow. In Financials – ETFs took a huge drop:

http://stockcharts.com/h-sc/ui?s=UYG&p=D&yr=0&mn=6&dy=0&id=p22832296489

That’s what you get for buying a leveraged, synthetic ETF. Bad idea. — Garth

#199 Westernman on 05.20.12 at 8:34 pm

Junius @ # 191,
My labors pay for your welfare check so show a little appreciation…

#200 Canadian Watchdog on 05.20.12 at 8:45 pm

“Actually, this is when smart people buy. — Garth”

Not yet Garth. We’ll have a little relief rally then down she goes again. BTW, I underestimated REITS, but here was the trade I called in late Feb/Mar. http://i50.tinypic.com/5orsyu.png

#201 Smoking Man on 05.20.12 at 8:51 pm

Run?

Run 6er Run. Dig that hole forget the sun and when the work is done it time to dig another one.

Bubble heads is this the year your going to quit being slaves and oun your own.

Or another year of safety .

Tommow marks 29 years with same woman. Would not change a thing

#202 DonDWest on 05.20.12 at 9:59 pm

#115 John G. Young

DELETED

#203 John G. Young on 05.20.12 at 11:31 pm

#201 Smoking Man on 05.20.12 at 8:51 pm

“Tommow marks 29 years with same woman. Would not change a thing.”

Congratulations to you and your partner. It’s nice to know that men like you still exist.

Cheers,

John

#204 John G. Young on 05.20.12 at 11:47 pm

#185 Westernman on 05.20.12 at 3:44 pm

“John G. Young @ # 167,

DELETED”

#202 DonDWest on 05.20.12 at 9:59 pm

“#115 John G. Young

DELETED”

Hi Garth, I’m thinking that this is your way of letting me know that these hate-filled comments were directed at me personally.
If that’s the case, then thank you for confirming what I have long suspected, particularly with regard to Westernman’s and DA’s comments.
I find it interesting how these posters hide behind the banner of “freedom of speech” to launch personal attacks and attempts to stir up hate, but go apeshit when someone dares stand up to them.

Cheers,

John

#205 truth hammer on 05.21.12 at 1:32 am

#184 West…..Sad but true. I can’t wait until we get to the 100% taxation ‘stumbling block’……what we’ll hear from our sacred cows then? We’re past 80% now……hell yeah…take it all ?

Trotsky must be doing cartwheels looking up at Canada.

And Garth…….I think what you wanted to say was that a majority of Canadians did not vote for the Liberals.

#206 Professional Landlord to Amateur Landlord: “You may find that all your potential ‘dudes and dudettes in the basement forking over $1K per month’ are rare…and getting rarer.” | Vancouver Real Estate Anecdote Archive on 05.21.12 at 9:02 am

[…] indeed if we have to. Give it some thought eh?” – a post by commenter ‘bill’ on greater fool.ca, 19 May 2012, who appears to be a professional property manager. Share: This entry was posted in 10. […]

#207 TurnerNation on 05.21.12 at 9:24 am

“The modern conservative is engaged in one of man’s oldest exercises in moral philosophy; that is, the search for a superior moral justification for selfishness.”

John Kenneth Galbraith

#208 daystar on 05.21.12 at 10:08 am

#180 truth hammer on 05.20.12 at 2:20 pm

https://www.cia.gov/library/publications/the-world-factbook/fields/2221.html

Overall Canadian taxation (fed, prov, municipal, GST) in Canada is at 38.5% but you would have known this if you would have checked out the link I provided… for a reason. lol.

#209 disciple on 05.21.12 at 11:33 am

#59 Blacksheep…So it seems that Dondwest was a shill/agent provocateur. Anyway, Victoria Grant’s real identity is Johnny Knoxville’s daughter. She also goes by the peudonym Madison Clapp. If you quickly survey the message boards, you’ll see that CBC has censored any comments related to this, so I’m not the only one who knows, very telling and PROVES that MSM endorses these lies…

Some other fresh data:

Christine Lagarde is Martina Navratilova
Jennifer Simpson is Fergie (Ann middlename common)
George Noory is Yousuf Raza Gilani PM Pakistan
Mrs. Ron Paul is Joyce Riley
Warren Buffett and his daughter are actors also (I’ll work on getting more info in next two weeks)

Like I said, if it was just one or two, perhaps it’s just a coincidence that their ears/voices/molespots/agendas match, but several hundred identified already? That’s the real Occam’s Razor, zeeman1…

#210 TurnerNation on 05.21.12 at 3:50 pm

#198TurnerNation on 05.20.12 at 8:28 pm

Yeah big short squeeze in tech and high beta stocks today. FB aside. VIX down a whopping 12%.

#211 Westernman on 05.21.12 at 3:57 pm

Disciple @ # 209,
Congratulations! Your diploma in useless Pop Culture trivia is in the mail.
With that and a dollar you can get a cup of coffee…

#212 John G. Young on 05.21.12 at 5:01 pm

#211 Westernman on 05.21.12 at 3:57 pm

“Disciple @ # 209,
Congratulations! Your diploma in useless Pop Culture trivia is in the mail.
With that and a dollar you can get a cup of coffee…”

Yep, gotta spew your hate — doesn’t matter who or why.

#213 Westernman on 05.21.12 at 7:04 pm

John G. Young @ # 212,
So you are a fan of useless Pop Culture trivia – who would have guessed? I guess it comes standard with your “lifestyle”…

#214 John G. Young on 05.21.12 at 7:57 pm

#213 Westernman on 05.21.12 at 7:04 pm

“John G. Young @ # 212,
So you are a fan of useless Pop Culture trivia – who would have guessed? I guess it comes standard with your “lifestyle”…”

Not a fan, but not a hater either.
Kind of a fan of Disciple, although (or maybe because?) his ideas are so out there.
Free your mind from the chains of stereotypes. I’m a slob, have no sense of style or fashion, don’t cook, don’t garden. (I DO like Broadway musicals though.)

Cheers,

John

#215 A Little Family Drama – “If you hate your parents but just don’t know how to tell them, get into a real estate deal with them and the rest will follow.” | Vancouver Real Estate Anecdote Archive on 05.22.12 at 4:35 pm

[…] know how to tell them, get into a real estate deal with them and the rest will follow.” – ’1drs’ at greaterfool.ca 20 May 2012 1:05pm Share: This entry was posted in 03. Changed my Life, 05. Where do Buyers get the money?, 14. […]