Vox populi

The Amazons decided the holiday was just too nice to do more logarithms, and announced they’d be catching rays au naturel on bunker’s heli pad. The pulchritude is blinding. Disabled as I am, then, plus temporarily incapable of rational thought, I’ll turn this pathetic blog over to others. Besides, I can’t make this stuff up. — Garth

In Calgary the myth that “it’s different here” still lives.

Yesterday, I told my realtor that I was going to continue renting for another year and see how things play out.  He thinks I am crazy.  I sent him a link to your blog – he didn’t have time to read it.  Too busy selling houses here, I guess.  I explained that I think house prices are going to drop but he disagrees with me.  I reminded him that he has been a realtor in Calgary for 20+ years and that he should be able to see what comes next – and actually, I resent him trying to sell me a house when he must know what happens after the boom.

His new argument is that because the government is going to encourage people on EI to relocate to provinces where there are jobs (Alberta, presumably) THAT will keep house prices and sales up here in Calgary.  People on EI have down payments for a house?  People on EI have the ability to make a large mortgage payment?  WTF??  Also, he has no clue who the OSFI are and no idea about the possibility that people may have to bring their mortgages into line when the interest rates go up. Oh yeah – I forgot to mention that he thinks that interest rates will “probably” go up.  Probably??

About a month ago he showed me a house that he thought was perfect for me.  “It’s not going to last long – this one is going to go quickly.  You could come in here, put some money into it and flip it.  There is a lot of upside here.”  Are you crazy, I asked??  I discussed rising interest rates, household debt, everything I could think of.  His response?  “It’s different here, honey.  We have oil.”  He called me honey.  I’m 46.  That same house is still on the market and just took a $10,000 haircut.  He asked me again if I wanted to buy that house.  Lots of upside there he still maintains even though “no one wants to buy it because of the street it is on”.

I fired him.  – Joanne

Cowtown houses now average over $500,000, which is curious for an equine version of Mississauga. The city is geographically featureless, massively suburban, arrogantly self-possessed and arguably our most American city. The myth that oil equals high real estate values has been repeatedly disproven but never disbelieved. Condo investing has been a disaster, and the fools buying now at levels equaling those of 2007 will learn what history is all about. You made the right choice, hon. — Garth

Hey Garth!  Reading your blog daily, waiting for a real estate correction. Given everything I’ve seen I’m sure we’re very close. Your last post touched on something I have some experience with – fractional ownership of properties with family members. My hubby owns a condo in Whistler with his sister, they bought about ten years ago when she suckered him into thinking this was a “great investment!” (He didn’t know me then, if he did, believe I would have hit him over the head with a frying pan before letting him go through with this bad investment.) Here are the numbers:

– The condo cost about $225k. It’s in a rental pool, meaning the property management company takes 40% of every dollar earned. The condo owner is on the hook for everything-strata fees, hydro, property taxes, maintenance, updating the suite etc. Oh, and a mortgage.

– Every single year since they’ve owned it, they’ve lost about $10k per year. I did some quick calculations and came up with the strata fees, property taxes and property management fees take up 94% of their revenues. So, even when they don’t have a mortgage on this sucker, they are guaranteed to lose money, or make pennies.

– Currently, the thing is worth about what they paid for it, ten years ago. If they’re lucky. Property in Whistler doesn’t look so hot these days, despite his sister telling me for years she was going to be a millionaire after the Olympics. (Ya, right). I haven’t heard this lately from her. I wonder why.

– The other kicker? They don’t ski. When we go to Whistler, we’re not even allowed to stay in the condo (she’s the majority owner), because it takes away from the potential rental pool revenue. Ya, I’m a bit bitter about this damn investment, hubby’s trying to get out of it, as I’ve been throwing these numbers at him for ages. He just says “Uh huh” and looks pretty glum.

So my point in….never EVER should anyone ever invest in real estate with a family member. It’s bad news. I’ve come to the conclusion that the only person you should buy real estate with is your spouse. At least then if you get divorced you can sell and split the proceeds. With other family members, it can be a horror story if you want to sell, you’ll have to convince them to cough up the cash and buy you out. Good luck with that!!! — Dian

Families are screwed up enough without adding in an investment component. Almost always, deals like this are done without being properly papered, and in a way you’d never enter into if the partner was, say, your proctologist. That means there’s no clear and pre-determined way to get out when things go south (and they always do). People related to you are no different from others. Expect the worse. And pray for Whistler. — Garth

Hi Garth, love the site! My wife and I are selling our Ottawa home and we had a request to do a vendor take back mortgage. To me it seems like a good idea but I was wondering if you could crunch the numbers and maybe turn a blog post out of it.

The details: We bought at 420,000 with 220,000 down. So we are at 200,000 for our mortgage. We haven’t lived here long so we still have roughly 200,000 owing.

The buyer agreed to purchase for 400,000 with 120,000 down. We would then give a 280,000 VTB mortgage @ 3% interest.

He is a business owner and thus the difficulty for him in getting a mortgage. He claims he could pay 5,000 per month; seeing his shop and how busy he is I believe him.

What do you think? What are the risks and benefits here? I’m a little confused about where the money comes from and where the ownership and liability rest so any enlightenment would be great! – Kevin

Kev. Dude. Are you nuts? You’re selling for less than you bought (so much for that strategy), and handing over your house to some guy who can’t qualify for a mortgage when banks are handing them out to retrievers. And for financing this high-risk loan you’re willing to collect a puny 3% on your investment which, after inflation and taxes (it’s taxed as income), will constitute a loss. Do you understand that if he lives there for a while and stops paying that you can’t just seize the property? You’d have to pay big legal fees for a power of sale action that could last for months and months – and could end up in a suit against you. The. Answer. Is. No.

Well, time for oiling. — Garth

133 comments ↓

#1 Raj on 05.20.12 at 9:09 pm

Morgan Stanley is next JPM.My suggestion to all,if you own MS,sell first thing in the morning.
They gonna loose their shirt on this.Accept it.they got into a bad bet.
Tech bubble2.0 popping all over again.

#2 george on 05.20.12 at 9:14 pm

FINANCIAL IMPLOSION: Global Derivatives Market at $1,200 Trillion Dollars … 20 Times the World Economy

#3 Nick on 05.20.12 at 9:18 pm

Always a pleasure!

#4 Tron on 05.20.12 at 9:18 pm

Working on a holiday…that’s dedication to the cause! In North van it’s starting to look like every street is named ‘open house’.

#5 TurnerNation on 05.20.12 at 9:19 pm

Tap tap. Is this thing on? Hello? Holidaze.

#6 LilyFlor on 05.20.12 at 9:23 pm

Great advice as usual

#7 LuckyRenter on 05.20.12 at 9:24 pm

Great post as usual. Thanks Garth.

#8 Scott on 05.20.12 at 9:25 pm

Garth, thought you might like to see the historical Calgary prices. The last 5 years have been the anomaly for sure. What’s the big trigger for the correction? Personally I think it will be the interest rate once it decides to hear north.

http://findcalgary.files.wordpress.com/2010/07/calgaryhistorical.gif

#9 Scott on 05.20.12 at 9:28 pm

I should have added this as well, it also shows links to CMHC and Bank of Canada responses

http://calgaryrealestatereview.com/2010/07/29/calgary-historical-average-house-prices-sales-timeline/

#10 DM in C on 05.20.12 at 9:33 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

Friends of a friend knew someone who had those awesome danglers — played a joke on him and painted them blue. They didn’t stay on very long.

#11 same house 24 years on 05.20.12 at 9:33 pm

drove by the lakeshore road in west island montreal those carriage trade waterfront/view homes recently fixed up are sprouting for sale signs all over the place. The race to get out by the rich flippers and contractor re-modelers has started in earnest.

#12 Ron on 05.20.12 at 9:35 pm

Families are screwed up enough with adding in an investment component.

I think you may have meant ….”without” instead of with.

Told you I was distracted. — Garth

#13 shanks on 05.20.12 at 9:35 pm

wa cant be 1st again?

#14 Aussie Roy on 05.20.12 at 9:37 pm

Aussie Headlines

It’s a buyers market. so buy now, PLEASE.

Results released by the Valuer General reveal most suburbs and towns suffered drops in their median house price.

The median metropolitan house price is now $380,500 – 7.2 per cent below the first quarter in 2011 and 2.44 per cent below the December quarter.

Real Estate Institute of South Australia president Greg Moulton said uncertainty about interest rates was deterring buyers.

“It’s really tough out there for vendors looking to sell as prices have eased over the last 12 months and the time taken to sell properties has risen considerably,” he said.

http://www.adelaidenow.com.au/real-estate/housing-market-favours-buyers/story-e6frefdc-1226334821001

Figures released by property analysts RP Data last week show houses sold in March this year had been on the market for an average 91 days – almost twice the 54 days recorded for homes sold in March, 2010.

Vendors are having to settle for less when they do sell, with discounting jumping in March to 7.3 per cent of the asking price – or $28,287 on the price of an average home – compared with 5.8 per cent at the same time last year.

http://www.adelaidenow.com.au/real-estate/news/its-double-trouble-for-home-sales/story-e6frefgc-1226361226724

#15 Mark W on 05.20.12 at 9:39 pm

http://www.realtor.ca/propertyDetails.aspx?propertyId=11896779&PidKey=-1906167999

You want condo NUTS …. here it is in ghetto-land downtown Winnipeg.

$479,900.

In a neighborhood where there have been ten murders within the last year within a ten minute walk radius of this condo.

Oh, yea, do not walk down the street late at night.

Get in, lock the doors, and do not go out again until the sun rises.

#16 zeeman on 05.20.12 at 9:45 pm

first….

garth, with the stock market getting rocked and europe in a recession and china slowing down, do you still think carney will raise rates?

Of course they will rise. — Garth

#17 Gun Boat denier on 05.20.12 at 9:45 pm

“When we go to Whistler, we’re not even allowed to stay
in the condo (she’s the majority owner), because it takes
away from the potential rental pool revenue. Ya, I’m a bit
bitter about this damn investment, hubby’s trying to get
out of it, as I’ve been throwing these numbers at him for
ages. He just says “Uh huh” and looks pretty glum.”

Sorry Dian, that is the correct way to do it. It’s a rental, and everybody pays rent. Or you could always arrange to
balance out the money at the end of the year.

You also require a “shotgun clause” which works more or less like this: At any time you may offer to buy out the other party, but they can automatically buy you out at 20% less. If the second party doesnt want to accept the offer but cant come up with the buyout, the entire property is sold.

#18 TurnerNation on 05.20.12 at 9:48 pm

Good to see this weblog hammering home its core message of Bike, Babes, and Balanced Portfolios.

#19 TurnerNation on 05.20.12 at 10:01 pm

Whistler commercial: a number of new prices. I imagine, one day, a unit in Function Juntion may be a good buy if you can find a tenant.

http://www.whistlercommercial.com/index.php/listings/featured-commercial-for-sale

I posted yesterday a link to three Whistler businesses (restaurant) shut-downs.

#20 Maxamillion on 05.20.12 at 10:01 pm

Your bunker has a heli pad? Now I’m jealous.

#21 Min in Mission on 05.20.12 at 10:03 pm

You are correct, that kind of stuff cannot be made up.

Years ago, a friend of mine and an acquaintance bought a lot in a development in Whistler. They built a small cabin, a bit at a time, when they could afford it. Sold it when it was partly finished. Their contract was that when either wanted out – then it was over. There was a bit of acrimony, but, a deal is a deal.

Say, want to swap Amazons for a couple of weekends?

#22 Herb on 05.20.12 at 10:05 pm

Of course the car will be cheaper, but it won’t be as rewarding. And your next financial advice is?

Easy, sailor. I know how old you are. — Garth

#23 Golden Stu on 05.20.12 at 10:14 pm

Just had dinner with friends/ relatives downtown Toronto. The obvious topic came up about the dozen holes with condos being built withing spitting range of here.
Conversation started when One guy actally said ” torontos booming, we have the most tower cranes of any where in earth just now. ”
Wife gave me the look ” don’t start….” I couldn’t help it… ”
Anyway his response ” it’s different here….” :-)

#24 Snowboid on 05.20.12 at 10:19 pm

Have to be careful what I say, with most relatives in Alberta either ranchers, farmers or oilers. But whether equine, bovine or black gold – they all have one thing in common – they are suffering financially.

One has put up the Edmonton McMansion and another their ranch – it will be interesting to see what happens.

Oh yeah, and a couple of them wanted to ‘buy-in’ to our winter property in Arizona!

I agree 100% is real estate deals with family are destined for misery down the road!

#25 thinker on 05.20.12 at 10:22 pm

Whistler is the perfect scam model, you take all the risk someone else makes the money – aka Toronto Trump is the same thing, that is why buyers are walking away or taking legal action. It still happens now and then. Look up a property in Whistler outside of the scam, a true home with no fee’s, strata, etc…It will be very expensive.

But one must ask, if you are so bullish on Whistler – just buy WB.TO, take your 11% yield and go ski. Why the hell would anyone buy a condo for a two week holiday, you wouldn’t buy a walt disney condo would you?

Real Estate is really a disney land, made up money sucking brokers…

Garth, change the tune a bit, put some stories folks who are make large money on real estate, has to be few….

#26 Spiltbongwater on 05.20.12 at 10:26 pm

Hopefully Dians husband had her sign a prenuptual agreement.

#27 Freedom First on 05.20.12 at 10:26 pm

Garth, love your headline, and the pic! Just a reminder that some guys will always have more money than brains:)……

#28 Tim on 05.20.12 at 10:26 pm

Finally starting to get some decent pics…
Calgary is different. The city who asked George Bush to speak. The city with hardly any trees, but plenty of characterless architecture, and a downtown where you wouldn’t want to go unless you had to go to work. A city where you could die without a car. A city where the only reason people move there is for work. What happens to Calgary when natural gas comes on stream in a big way in the US?

#29 timbo on 05.20.12 at 10:29 pm

http://www.cnbc.com/id/47498211

“The deferrals and defaults have only emerged in the last few days, traders said, and have contributed to a drop in iron ore and coal prices.

“We have some clients in China asking us this week to defer volumes,” said a senior executive with a global commodities trading house, who warned that consumers were cautious. “China is hand to mouth at the moment.”

The promise of having China spur on the demand is becoming a pipe dream…

http://www.theburningplatform.com/?p=34748

“That rush to complete inflated real estate investments, allegedly up 23.5% in the first quarter. Other statistics from the report tell the real story.”

Man that sign has got to go….:)

#30 Richard on 05.20.12 at 10:32 pm

No offence, but Kevin,,, you are a moron… how did you come up with $220000 in the first place?

#31 jess on 05.20.12 at 10:40 pm

Oxfam sues SEC to force completion of Dodd-Frank oil transparency rule
By Ben Geman – 05/16/12 11:35 AM ET

Oxfam America is suing the Securities and Exchange Commission to force completion of delayed regulations that will require oil, gas and mining companies to disclose payments to foreign governments.

The lawsuit filed Wednesday marks an escalation of human-rights groups’ efforts to ensure completion of the rules, which are required under the 2010 Dodd-Frank financial reform law but face opposition from the oil industry.

The litigation, filed by Oxfam in the U.S. District Court for the District of Massachusetts, asks the court to compel the SEC to issue final rules within 30 days. The SEC is more than a year past the deadline set by the Dodd-Frank law…”

http://thehill.com/blogs/e2-wire/e2-wire/227731-oxfam-sues-sec-to-force-oil-transparency-rule
===============
who is to blame?
…”From a policy perspective, and ask how you do something about the problem.

And this brings you to two policy alternatives.

1.If you think the problem is the ‘greed’ of feckless borrowers, then you legislate against greed.
2.If you think the problem is the irresponsibility of reckless lenders who knew they’d be bailed out, then you legislate against the banks.
So you have two alternatives. Either you put individual house owners in prison, or fine them heavily, or something, for borrowing too much.

Or you put in place appropriate financial legislation, and act on the lending side.

One of those two alternatives is clearly stupid, the other is not.

Very simple, really.

OK, there is a third way too, which should complement the second of those two options. That is the Land Value Tax.
(read more at
http://treasureislands.org/whose-fault-was-the-banking-and-mortgage-mess-there-is-a-simple-answer-actually/

#32 Rural Rick on 05.20.12 at 10:46 pm

Man severs real estate agent’s arm
puts him out of commission

http://www.japantoday.com/category/crime/view/man-severs-real-estate-agents-arm-with-katana

I love fark

#33 Sebee on 05.20.12 at 10:48 pm

What’s up with this Chinese hard landing – can’t click a link without reading about it. Are they landing hard, or soft like Canadian real estate?

#34 Mr Buyer on 05.20.12 at 10:53 pm

#8 Scott on 05.20.12 at 9:25 pm
Garth, thought you might like to see the historical Calgary prices. The last 5 years have been the anomaly for sure. What’s the big trigger for the correction? Personally I think it will be the interest rate once it decides to hear north.
…………………………………………………………………
fatigue

#35 North o' TO on 05.20.12 at 10:54 pm

re: post #17

Just wanted to throw my hat in and reaffirm the “shotgun clause”. Every partnership deal should have this in there….

#36 Canadian Watchdog on 05.20.12 at 10:59 pm

This offer was extended for the long-weekend.

LIMITED TIME OFFER – VIP SALE – 10% DOWN PAYMENT – 5% CASH BACK – DEPOSIT STRUCTURE AVAILABLE

All new Toronto “It’s Different Here” Black T-Shirt http://i45.tinypic.com/157nrf7.png

DON’T MISS OUT!

#37 ottawa pete on 05.20.12 at 11:04 pm

London Telegraph: “Mortgage lenders tighten criteria”

http://tinyurl.com/d48fvzt

Say hello to markedly higher mortgage rates and falling house prices sooner than you might expect. Canada will have to compete with increasingly desperate countries for increasingly more expensive money.

#38 Rene on 05.20.12 at 11:28 pm

These are my favorite blogs. I love the mailbox posts.

#39 Expat on 05.20.12 at 11:33 pm

An uncle of mine made a killing in Whistler, bought in the 1980’s when the place was going broke, sold in 2002 for a mint. He may not have pegged the peak in the market, but he sure as heck didn’t buy in a bubble!

Oh yeah, he handled the rentals without an agency, and also saved several weekends open each year to go skiing.

Get your timing right people.

#40 J.I.M. on 05.20.12 at 11:59 pm

So it begins!

http://www.moneyville.ca/article/1178779–marriage-ended-with-a-mortgage-debt-hangover-but-viable-financial-plan-possible?bn=1

#41 furst on 05.21.12 at 12:23 am

A poem by FuRsT
FUUUURRSSTTT represents
First
To post
To annoy others
To be at top of mind
No one seems to care
Until they do
Then anger arises
For those who are not furst
Are Laaasssttt!!!

#42 Nostradamus Le Mad Vlad on 05.21.12 at 12:26 am


“The pulchritude is blinding then, plus temporarily incapable of rational thought, . . .” — That is a very complicated sentence.

Are you aware that it is a holiday here on the left coast as well, and that citizens’ brains have basically shut down? Most here have trouble comprehending the word ‘a’ plus the number ‘1’. Please don’t make it any harder for us!
*
#201 Smoking Man — “Tommow marks 29 years with same woman. Would not change a thing” — Well done. Just shy of three and a half decades for us and, like you, wouldn’t change anything.

For a celebration (in case you weren’t aware), Roger Waters was on 60 Minutes Sunday. Here are the two clips — Roger Waters One and Roger Waters extra. Cheers!
*
Record Oil Prices on the way? BRICS vs. G5 Game (almost) over. Link in; Well off? It would go with Saturday’s link, about the UK about to be decimated by debt slavery and the NWO, and Cameron Whether Greece does / does not leave the Euro, chances are he will have more than enough on his plate to handle; Workers’ Rights Seems western govts. are running a well-orchestrated plan; 3:08 clip DOJ being sued over 4closure stuff;
First time ever; Fear vs. anger; People getting worried; Kyle Bass His ‘Oops’ moment; ECB Choices; FB stock may / may not tank this week; Snafu at NASDAQ? Global contagion.
*
NATO activates missile shield and TPTB stand to profit nicely from this war; Gun Control “On Wednesday, Obama Took the First Major Step in a Plan to Ban All Firearms in the United States. The Obama administration intends to force gun control and a complete ban on all weapons for US citizens through the signing of international treaties with foreign nations.”; Mick Jagger Wearing a tie and glasses? Fukushima and Italy — ‘quake time Sunday, and Water Supply to Tokyo cut; Anonymous is still alive and well; Western m$m conveniently hides NATO expansion; Evil or Stupid Em[ire? Not much of a choice; Policing for Profit Along with for-profit prisons, when govts. are desperate for money, anything goes; Are You Embarrassed Easily? This person seems to be.

#43 99% on 05.21.12 at 12:32 am

Dian- If your husband bought his Whistler condo 10 years ago, I’m sure the price has appreciated during those years. Even now the price should be higher than his cost 10 years ago. Why didn’t he sell during the Olympics?

#44 ozy - the chick magnet on 05.21.12 at 12:41 am

the car will always be worth MORE, such chicko magnet can bring 10 gorgeous chickittas a year, so maybe 100 in a life-time, bottom line:

Switch your investment advisor buddy :) and post a nicer bonita, so to match the car.

#45 Junius on 05.21.12 at 12:50 am

#33 Seebee,

China is landing very hard. Almost as bad as Canadian Real Estate. There are no soft landings.

#46 Junius on 05.21.12 at 12:53 am

#24 Snowboud,

I share your problem. Relatives in Alberta that claim it is different there. All of them with financial stress but an unshakeable belief that the next boom is upon them. So delusional.

#47 chojo88 on 05.21.12 at 2:28 am

stick a fork in it, HAM is cooked…..

http://whispersfromtheedgeoftherainforest.blogspot.ca/2012/05/ham-exit-stage-left.html

#48 chris on 05.21.12 at 3:35 am

HSBC dropping rates again, WTF.

Mortgage rates for HSBC Premier clients

Rates(APR1)

Term

2.60%
2.88%
3.39%
2.90%
3.60%

1 Year Fixed Closed
3 Year Fixed Closed
5 Year Fixed Closed
5 Year Variable Closed2
3 Year Variable Open2

#49 Ben on 05.21.12 at 6:07 am

CHINA’S PROPERTY MARKET CORRECTION IS IN FULL SWING

http://pragcap.com/chinas-property-market-correction-is-in-full-swing

#50 Ben on 05.21.12 at 6:08 am

THE RUN ON SPANISH BANKS IS VERY REAL

http://pragcap.com/the-run-on-spanish-banks-is-very-real

#51 David B on 05.21.12 at 6:53 am

Way back in the 1980’s interest rates were 16-22% a slightly used 4 bedroom, 2 story, attached garage, and central A/C sold for $68-70K (Kitchener/Waterloo) when interest rates dropped to 8-11% the same home sold for $118-124K …… to-day who knows?

So if one believes: What goes around comes around, should housing drop like it has south of the border …. just what do y’all expect the banks to do to recover their payroll?

Raise interest rates all-a-round making even more money as Real Estate bunnies say …. hey look what a steal, a couple of years ago it was twice the cost and may be again some day when you want to sell ….

Oh well, Happy Victoria Day one and all and should y’all see charming Prince Charles ….say hello ducky for me

#52 Westernman on 05.21.12 at 7:20 am

Fuuuuuuuuurrrrst!

#53 ANONYMOUS on 05.21.12 at 7:31 am

To all men here on this blog: WANT TO DIE A SLOW AND PAINFUL DEATH?

Well then, simply get married.

That girl in the photo says it all, and explains everything that you need to know about women and how marriage will screw you financially until you die.

If you want women to be explained in a more clear and well-explained way, then simply watch this video and that is all you will need to know about how women will change your life FOR THE WORSE:

( Men, Math, and Marriage )

http://www.youtube.com/watch?v=42sI2G4m5aU

#54 Steve Thompson on 05.21.12 at 8:06 am

Vancouver’s real estate bubble has now hit the American psyche:

http://www.businessinsider.com/crack-shack-or-mansion-2012-5?op=1

#55 DM in C on 05.21.12 at 8:07 am

Read something interesting online at the Calgary Herald ….. did you know that “”Selling a home in Calgary these days is a very competitive enterprise as demand in the housing market keeps rising”

I agree with one of the comments that this doesn’t make sense…..”If demand is rising, BUYING would be getting more competitive.”

What is the writer trying to accomplish here?

http://www.calgaryherald.com/business/real-estate/Calgary%20couple%20offering%20wedding%20gift%20incentive%20to%20sell%20their%20New%20Brighton%20home/6636876/story.html

#56 Mr. Anderson on 05.21.12 at 8:11 am

Facebook went public last week, Mark Zuckerberg gets married over the weekend, so who is the greater fool?

#57 Market Bull on 05.21.12 at 8:35 am

Mortgage rates poised to drop again:

http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2012/05/yields-double-back.html#more

Learn to read: “Despite banks’ drop in funding costs, however, many question whether they’ll price as aggressively this time around. Finance Minister Flaherty has strongly “discouraged” them from combative rate “sales.” — Garth

#58 T.J. BONES on 05.21.12 at 8:37 am

Sir Garth To Dian: A similar problem, shared ownership, came to my attention. A family member moved into the family home and did not buy out the other members. Further the said relative demanded the other family pay their . “share ” of the taxes and upkeep. My advice was that they rent out “their ” portion of the residence. Also they ( Dian ) could just sell his interest in the endeavor. In the case of renting, one look at the trailer trash the family was commencing to, the said relative suddenly came up with an offer to buy out the other members.

#59 John on 05.21.12 at 8:41 am

The next ten years are going to be entirely different than the last ten years. The problem is that this fact is now glaringly obvious, and necessary to ignore ( since planning would have to include living in a completely different reality, and letting go of false security).

So, real proactivity, creativity and planning aint gonna happen. Dealing with the glaringly obvious would mean understanding what’s behind the housing ponzi.

Notice how all talk of F&C evaporated? It won’t be coming back. Why? Because deep down everyone knows the deal. We know about irresponsibility. We know what it means to be a human being. Critical mass says flying F&C now would be a lead dirigible. So it’s on to other planes of denial.

Calgary and Whistler are included in “real estate economies” triple screwed into the derivatives ponzi. Period. Paragraph.

That said, entertainment and cleverness never goes out of style. Not on the wind-whipped heli-pad and not sitting around a campfire. Value is value.

#60 Market Bull on 05.21.12 at 9:36 am

Learn to read? You mean like this:

“So far, only a few lenders have lowered rates more than five basis points in the last week or so, despite yields diving 30 bps from April highs.”

“…If yields break below 1.30%, all bets are off.”

Wow. A whole .005%. — Garth

#61 brainsail on 05.21.12 at 9:37 am

FB 8:36 CT $35 -8% Vol 34M

#62 TurnerNation on 05.21.12 at 9:42 am

Facebook trading for about $34 today…

Score: Goldman Sachs 2, Retail 0.

#63 cramar on 05.21.12 at 10:11 am

Facebook this morning is down well below the IPO price. Reminds me of a sped-up version of real estate. Massive hype with JQ Public wanting a piece of the action because it will be another Google! So the public jumps in on the IPO instead of waiting.

#64 Canadian Watchdog on 05.21.12 at 10:16 am

Facebook snapshot. Day 2 http://i49.tinypic.com/2r61rth.png

#65 timbo on 05.21.12 at 10:26 am

http://www.bloomberg.com/quote/FB:US/chart

Just like you said about r/e Garth. When everyone is talking about investing it is time to get out because the smart money has or is leaving. When the dust settles, buy it hand over fist.

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/9265738/JP-Morgan-executive-to-walk-away-with-millions-following-trading-loss.html

“Ina Drew, the executive who ran the department behind JP Morgan’s $2bn (£1.2bn) trading loss, has left the bank and will walk away with about $32m. ”

justice bought and paid for…..love the system ;)

#66 Jim on 05.21.12 at 10:29 am

#44 ozy

Lease the car, date the girl (who by the way is rather fetching to my eyes… a little trashy looking, which is right for that role).

I would not want to be in the serious relationship dating scene as a guy who obviously had a lot of cash. One of my acquaintances at a martials arts dojo was a neurosurgeon. Nice guy, in great shape and with a very high paying and prestigious career. He used to tell women that he worked in IT on account of the responses that he would get if they found out he was a neurosurgeon. Flies to a fresh dog turd, apparently. They viewed him as a meal ticket, and not as a fit, smart, educated man with good morals.

I can only imagine what that car would bring in. 19 year old girls are probably few and far between compared to the 27-33 year olds looking for the opportunity to be a kept woman.

#67 Daniel on 05.21.12 at 10:30 am

Facebook – from yesterday, but still news.

As I said, IPO was a huge success (depends how you measure success of course). It was a huge success for facebook, a blood bath for retail investors.

Watch this stock continue to plummet to the 50B mark (perhaps lower) unless some good revenue starts coming on – remember they’re going to have to report all earnings quarterly and people will be watching.

Maybe you can pick some up sub $10 in September.

#68 no one is anonymous on the internet on 05.21.12 at 10:34 am

Re: comment #53

What a sexist and hateful comment. I am surprised this made it through moderation.


#53 ANONYMOUS on 05.21.12 at 7:31 am
To all men here on this blog: WANT TO DIE A SLOW AND PAINFUL DEATH?

Well then, simply get married.

That girl in the photo says it all, and explains everything that you need to know about women and how marriage will screw you financially until you die.

If you want women to be explained in a more clear and well-explained way, then simply watch this video and that is all you will need to know about how women will change your life FOR THE WORSE:

( Men, Math, and Marriage )

http://www.youtube.com/watch?v=42sI2G4m5aU

The comment is within the acceptable bounds of discussion. Most people are prejudiced by by their experiences, and I will allow as many comments about women and men as I do about Chinese and whites. — Garth

#69 Listings dropping in ottawa on 05.21.12 at 10:40 am

Hey Garth, the local realtor who belongs to a group we are in, said that number of sales are down this year in Ottawa. I just heard on the radio, from a real estate “team” that most agents sell around 5 houses a year. (of course their group claimed to have sold “thousands”. Some of these teams are selling houses in Arizona, but they add these sold homes to the number of houses sold by their “team” this year. NOT LOOKING GOOD IN OTTAWA. Prices seem to be holding, for the moment, but wait until the fall when people want to unload!

#70 brainsail on 05.21.12 at 10:45 am

Wow… look at all the money going back into Apple. +$19 or 3.5%.

#71 coldlazarus on 05.21.12 at 11:09 am

Well, I’ll bet, Garth, that you will not be on the Christmas card list from the Calgary Chamber of Commerce or the tourism board. That being said, both Calgary and Edmonton are filled with out of province plates and young couples loading up on big leased vehicles and McMansions in he outer reaches of grim flatlands or in some cases what used to be first class farmland. Debt, period.
Cheap money, and no one has heard of the debt threats roaming the global landscape. Todd Hirsch from the ATB thinks this can all end badly (read: Detroit)-no diversification in our economy unless you count the aforementioned business of vehicle sales and RE. He’s not the only one.

What’s and retired, aging boomer and native Albertan to do?

Keep your head and other appendages down near the helipad, thanks again for the books and the blog

#72 Canadian Watchdog on 05.21.12 at 11:24 am

Fraud and banks: Canada’s TD bank in the hot seat. http://www.economist.com/blogs/schumpeter/2012/05/fraud-and-banks

This is what happens when there is enough corporate interest to sue and expose our banks, not like in Canada.

#73 Burnaby Renter on 05.21.12 at 11:34 am

You made the right choice, hon. — Garth

Lol. Garth, your blog is not only informative, it’s entertaining too. Thank you.

As for Joanne, I’m in the market for a girlfriend and anyone referred to as “honey” must be sweet, so maybe you could start a dating link to your site.

#74 Uh Oh Canada on 05.21.12 at 11:39 am

The real life situations are priceless. It’s the everday people we need to talk to to realize just how screwed we are.

Here is a little tidbit of reality. My Canada Post mailman is moving from his semi-detached into a bigger house. The offer was accepted on the condition that he sells. He’s fixing it up, but still no offers. He also just put down $5000 to purchase a house in the country as a rental. He is has about 20K in personal debt and wife works at TD Bank credit department. They have two children.

Ah…we are screwed!

#75 CrowdedElevatorfartz on 05.21.12 at 11:47 am

several readers have asked why Dian’s hubby hasnt sold the Whistler condo.
Read the Post again….
The Sister is the majority owner.
The Sister is more of a greedy idiot than the brother and refuses to sell because prices will rise….
The brother is either too cheap to get a lawyer to write a “Shotgun Clause contract” or too spineless to force a sale….

Dealing with a family member that doesnt want to sell is a “lose lose” situation. They will hate you even if the sale makes money.

Dian, get your husband to offer her such a great deal to buy him out she cant refuse it. Take the losses and get out.
Try and save some of the family holiday gatherings… Whistler is too expensive and boomers are aging. older skier means less people on the slopes.

#76 Regan on 05.21.12 at 11:48 am

Check out this story: http://www.moneyville.ca/article/1178779–marriage-ended-with-a-mortgage-debt-hangover-but-viable-financial-plan-possible?bn=1
Basically, the divorce settlement saddled the woman with a rental property with a mortgage bigger than it’s worth, while her ex agreed to rent it for a time, and then he moved out. Now she can’t afford to sell, break her mortgage, pay fees and take the loss. The financial advisor in this series ‘helped’ her extend her mortgage and commit to the property for an even longer period of time just so she can ‘save’ $142/month for emergency expenses. Oy…
And as for the pis for today – yes Garth, teenage daughters are indeed expensive.

#77 CrowdedElevatorfartz on 05.21.12 at 11:49 am

Has anyone seen BeePee?

I misplaced his dog toys and he chewed his way out of the backyard……

“BPOE where are youuuuuuuuu?”

#78 CrowdedElevatorfartz on 05.21.12 at 12:09 pm

@ #2 George
While I agree that the Derivatives Market is the 800,000,000,000,000 lb Gorrilla in the room that no one wants to acknowledge.

Could you provide links to a website that is a tad more factual and a little less sensationalist?

The article seemed to spend an inordinate amount of print quoting (Tyler) Durdin……….

Tyler Durdin was the fictional character played by Edward Nortin/Brad Pitt in “Fight Club”…….

Yeeeeesh.

#79 John G. Young on 05.21.12 at 12:15 pm

#208 daystar on 05.21.12 at 10:08 am

The arrogantly self-named “truth hammer” has never let facts get in the way of a good polemic.

His moniker violates “truth in advertising” standards.
For that reason, I’m thinking of suing him and Western “man”. Maybe a class action suit?

Add those settlements to our fat welfare cheques and we’d be set for life — sweet!

Cheers,

John

#80 CrowdedElevatorfartz on 05.21.12 at 12:17 pm

DELETED

#81 ANONYMOUS on 05.21.12 at 12:21 pm

Interest rates on mortgages will be going down again, and again, and then again, closer to zero each time, but then again JAPAN did the same thing and America is doing the same thing too, and look how its turned out for them.

Eventually everyone who wanted to buy will have bought, and at that time offering more money at lower rates is simply ‘PUSHING ON A STRING’ as there just isn’t any demand for more debt.

What is REALLY going to kill this market is the new rules coming out at the end of the year, that is what’s going to get everyone to wake up and change their mind about buying.

From the few people who I’ve heard at work, some are talking about the new regulations that will soon come into effect and they talk is something like this:

“What, oh-my-God! I better buy my house right now as there is no way I will be able to get approved for a house next year! ”

That is what the last fools are saying and that is why this summer and fall is going to be one last SURGE in buying frenzy. After that, things will be pretty much dead in 2013 and 2014 with prices stagnant, and only in 2015 will prices finally start to begin to fall once sellers become desperate. Then for the next 10 years prices will begin their slow melt downwards.

#82 Canadian Watchdog on 05.21.12 at 12:28 pm

http://toronto.en.craigslist.ca/tor/reo/3004517060.html

“We have the right to assign [our unit], but not to publicly advertise (through MLS for instance).”

So let’s get this straight folks. Not only did those who purchased a unit on price speculation sign their own debt wish, but they also agreed NOT to advertise their assignment on MLS before construction completion, which pretty much narrows their chances of selling in an illiquid market to nil, considering that developers and wholesalers ARE allowed to sell on MLS prior to completion.

Mark my words. This will be the catalyst that sends the condo market into a tailspin disaster.

#83 CrowdedElevatorfartz on 05.21.12 at 12:38 pm

@#68
Ever known any divorced men that bragged about how financially better off they were AFTER the divorce?

just askin………

#84 Market Bull on 05.21.12 at 12:43 pm

“Neil Dutta, economist at Bank of America Merrill Lynch, says in a note to clients. “We expect several false alarms of BoC tightening over the next year-and-a-half before the BoC actually moves. This should create near-term trading opportunities in the short-end of the bond market.”

http://www.bnn.ca/News/2012/5/15/Sell-Canadian-equities-buy-bonds-Bank-of-America.aspx

Interesting, but the RE market will be cooked whatever rates do. — Garth

#85 Canadian Watchdog on 05.21.12 at 12:48 pm

#60 Market Bull

Learn to read a market going illiquid and remember that in 2011, 80% of Canadian banks’ funding came from the US.

http://i45.tinypic.com/2zizyo8.png
http://i48.tinypic.com/2myrpme.png
http://i45.tinypic.com/286qxs2.png

#86 goati on 05.21.12 at 12:52 pm

i saw bo peep hanging from a crane from one of the new condo towers near the airport.his new job,start yapping if a 747 gets to close to the building.so much for the pumping.oh watch your legs people, bee pee ,well you know rest.

#87 deja view? on 05.21.12 at 1:24 pm

re RE investment advice.
Confucious say.. always trust crocodile over realtor.

#88 furst on 05.21.12 at 1:35 pm

Poll to the people who read this blog. It seems that my posts add little to no value to the community at large. What can I do to improve things?

#89 dd on 05.21.12 at 1:57 pm

Former Assistant Treasurer … His view on the recovery in the US:

http://www.paulcraigroberts.org/2012/05/20/recovery-or-callapse-bet-on-collapse/

#90 McLovin on 05.21.12 at 2:05 pm

More on the glory days of Whistler…

http://www.piquenewsmagazine.com/whistler/when-times-were-good/Content?oid=2302516

#91 johnny5z on 05.21.12 at 2:09 pm

Just looking at the headline and the picture makes this website more than worthwhile. Then adding the content makes it great.

#92 ex bc boy on 05.21.12 at 2:18 pm

It is different here in Alberta: avg. income-90,000. Plus high divorce rate,high alcohol consumption/abuse, high rates of mental illness, highest rate of indebtness and highest rates of mortgage default. I hope the market plops a good 10-20% plus.

#93 Onthesidelines on 05.21.12 at 2:36 pm

The truth on wall street from SNL via zero hedge. Enjoy

http://www.zerohedge.com/news/blast-past-snl-explains-wall-street

#94 Peter Struk on 05.21.12 at 2:46 pm

Optional Advice for the guy selling the house in Ottawa.
If you have to and want to sell for a loss at 400k then
just do it but here is a suggestion of what to say too buyer.

Offer to carry VTB for $240k at prime plus %3 floating
rate.
Open mortgage
Payments of $3k(you have some flex here)
Ask him to get a 40K second on the open private market.
Buyer pays all legal costs for your VTB mortgage.
Please get 36 Post dated checks .
NSF bad check fee of $300

Then don’t sweat to much if he misses a payment or there. Also if Int rates go up you will benefit as long
as value of home does not drop below 280 or so.

#95 whiteshoes on 05.21.12 at 3:15 pm

Zombie Preparedness in BC

http://www.guardian.co.uk/commentisfree/2012/may/20/natural-hazard-sleepwalking-tragedy-editorial

#96 cramar on 05.21.12 at 3:29 pm

The number of Americans who view buying a home as a family’s best investment is down to 47%.

http://www.rasmussenreports.com/public_content/business/housing/may_2012/47_see_buying_a_home_as_family_s_best_investment

#97 Westernman on 05.21.12 at 4:06 pm

John G. Young @ # 79
Don’t let nothing but fear and good judgement stop you…

#98 John G. Young on 05.21.12 at 4:57 pm

#97 Westernman on 05.21.12 at 4:06 pm

“John G. Young @ # 79
Don’t let nothing but fear and good judgement stop you…”

You’ve used that one on me already — but I guess your options are limited (like your memory, vocabulary and life experience).

And BTW, it’s “anything”, not “nothing”, Mr. Fake Cowboy.

Might be time to open up a book…

#99 Bill Gable on 05.21.12 at 4:59 pm

*OUCH*

Eddie Murphy has finally sold the New Jersey home he put on the market in 2004.

The funnyman’s sprawling mansion in Englewood has been on the market for eight years – and he had to drop the price from $30 million to $12 million to sell it, according to reports.

The eight-bedroom Colonial-style home comes with an indoor swimming pool, bowling alley, a billiards room, movie theatre and a recording studio.

The Shrek star bought the house in 1985.

http://tinyurl.com/crsskfk

#100 VICTORIA TEA PARTY on 05.21.12 at 5:07 pm

#84 Market Bull

BOC INTEREST RATES: UP OR DOWN–DOESN’T MATTER ANY MORE

Simply because the world’s overall economy is pretty much cooked.

–China’s stockpiling copper, coal, iron ore pellets, and other raw commodities all over the place, according to a Reuter’s article today published on Zero Hedge;

–Eurozone…like what’s the point, Pilgrim?

–US, lookin’ like a pulled pork sandwich on Diners, Drive-ins and Dives, for cryin’ out loud. All that keeps that zombiefied former free enterprise bastion going is the guvmint lolly going to the masses because it is ELECTION YEAR!

IN CANADA…

…we’re very small spuds. I actually think the BOC could lower rates. It can move down 125bps in a heartbeat should another Lehman’s-style nightmare land on our pristine shores. And it will.

Meantime, Canada’s real estate industry, which “consumes” 28 per cent of our economy a simply huge figure, is declining at a fearsome rate.

Enjoy the show, a Shakespearian tragedy of King Lear proportions or worse, if that’s possible.

MARKET SILLINESS

Today’s finish on Wall Street BTW is a story of pumping up a good dead cat bounce, the Wall Street luminaries hope, to punch things up for a few more trading days, before the technicals and fundamentals catch up again, thanks to the reasons given above.

As for Faceplant, it’s done, and after only TWO trading days!

Lesson to all of you 20-something, latee-guzzling, egomaniaical, social media little weasles.

You’re about to find out how your grandfolks survived during the dirty 30s. The difference is they made it, you won’t, unless you change your attitudes; soon.

Good luck with THAT.

#101 Westernman on 05.21.12 at 5:11 pm

John G. Young @ # 98,
Shouldn’t you be out somewhere saving a kitten in a tree?

#102 Spiltbongwater on 05.21.12 at 5:29 pm

#99 Bill Gable on 05.21.12 at 4:59 pm

Wow, a young person who owns a swimming pool. Never knew young people could swim.

#103 cramar on 05.21.12 at 5:39 pm

Wealth is king in hard times. Getting a $150 million 57,000 sq. ft. “starter home” for a mere $85 million! Bargain!

http://www.marketwatch.com/video/asset/sisters-spend-150-million-for-two-houses/#!202CFC67-86BC-4451-885D-2E788A463051

#104 Junius on 05.21.12 at 6:13 pm

#79 John G. Young,

Don’t fall for the BS from Westerman and Truth Hammer. They are probably both unemployable and just bitter. Based on their posts neither posess the intellect to earn a decent living.

#105 John G. Young on 05.21.12 at 6:18 pm

#101 Westernman on 05.21.12 at 5:11 pm

“John G. Young @ # 98,
Shouldn’t you be out somewhere saving a kitten in a tree?”

Wow, that’s so toned down it’s not even an insult, although you must think it is…

Garth must have read you the riot act about your comments. The absence of projectile homo hatred is striking (and very, very welcome — thanks Garth, and if that’s true please keep enforcing it!).

Who knows? There might be hope for you if you continue to mind your manners.

#106 truth hammer on 05.21.12 at 6:29 pm

I’m looking at the picture of the child and the caption from a differnt POV…..not being the perv type who didn’t get enough in highschool…then married a fat cow and has led a life of misery……that was not my fate……and keeping in mind that Porsche sells it’s greatest number of cars to middle aged bald guys who are recently divorced. ( funny how this is the same demographic I look to loan second mortgage money to is a succinct coincidence….but thats another story)

As a father….who raised children successfully….brought them up in good neighborhoods and gave them the best schools so that they could associate with the best people and be socially accepted later in life and network with people ‘on the go’…..of thier own social calibre……………….the children get used to a certain standard of living.

In the case of this picture….instead of being a twisted beardy perv…….I will agree that the car is the cheapest thing you’ll ever by your daughter…….her upbringing will cost ten times the value of a Porsche…..and the education she’ll need to stay well above the unwashed drivel……..multiples of that……car = disposable trash………daughter = priceless….buy her everything she wants….so she understands how far above the scum burning Montreal she is.

It is my belief that the riots in Vancouver and Montreal are a product of covetous envy and denial of reality…..the nanny state has offered kids an unreal world of impossible expectations….and can not deliver on it’s promises…the frustration is rising up as the pressure on peoples lives is put directly at odds with the bureaucracy who treats citizens as a cash machine and in their narrow greed has failed to see what comes next.

These riots are not about hockey and tuitiion…the riots speak volumes about the underlying frustration of Canadians who are only recently poking their heads up and realizing the propaganda does not suit the real world of 100% taxation the ‘ploticians’ had in mind.

#107 Al on 05.21.12 at 6:37 pm

I like the comparison of Calgary to Mississauga, both equally boring, car centric and dead at night. If oil ever tanks so does this town, in a flash. Unless you are an engineer moving here will only get you average wages, we have been told our salaries are based on market conditions, so they had to give the engineers raises to keep them happy, everyone else nothing.
Most people move here, save up enough to go back or as a colleague says “I live here so that I can travel elsewhere.” Still its cleaner and less hassles than Toronto.

#108 Westernman on 05.21.12 at 6:37 pm

John G. Young @ # 105,

DELETED

#109 Devore on 05.21.12 at 6:44 pm

#94 Peter Struk

Vendor financing can be a good deal, but not at 3%. It comes with far too much risk to give away money that cheaply.

Also you cannot require post-dated checks, because the date doesn’t matter. If you don’t have the money to cover the checks you write, you are committing fraud. I know people will do it for convenience (such as to pay rent), but you can’t legally require it.

#110 Dan7 on 05.21.12 at 6:46 pm

Garth can you do a comparison stocks vs rented real estate for the last 20 years and see which asset class is best over long periods of time.

#111 Nostradamus Le Mad Vlad on 05.21.12 at 6:50 pm


#100 VICTORIA TEA PARTY — “IN CANADA … we’re very small spuds.” — Good headline for us. If the population was about 550 mln., the world would look at us differently, but it doesn’t. We’re better when people ignore us!
*
EUSSA and EUSSR Rising recession / depression on both sides would make sheeplezombies out of all of us; 13:49 clip Rule by compound interest; France Mtgs. bad here? Check France; Portugal Highway robbery; China “This tells us that orders from the rest of the world for Chinese raw materials have fallen off, which means orders for manufactured goods are likewise falling off. Given that this is the time of year when manufacturing for sales during the Christmas season starts, this is another sign the whole world is headed back into another recession.” wrh.com; Indonesia Bringing in new tax on gold, silver and platinum exports in 2014; Recovery or Collapse? 2:09 clip Sell silver and invest in German deutschemarks (humor / satire)! Gas Spending costs around the world.

Tumbling Dice Just our loonie; China Drowning “The evidence of a China slowdown which is somewhat worse (perhaps much worse) than what the market was expecting continues to pile up.”; 19:51 clip Hyperinf. in Germany — a senior tells what it was like; Bill Murphy and silver shorts; Wall St. uses FB to hand investor’s 20% loss; Inflation is color blind and doesn’t discriminate; Raw Milk Confiscations start “Judge ruling that owners of cows have no right to the milk their herds produce???” wrh.com; 0:15 clip Bain Capital got rich by firing a whole lotta people, except Mitt Romney.
*
11:59 clip Iran first, SArabia next. Moot point. When Israel implodes, or when India – Pakistan – China – Russia (one of them) destroys Israel, the cycle will be close to changing; 2:57 clip NATO (TPTB) is responsible for the wars thruout the world; UN Chicago Police “This is National Socialism in its ugliest form. The people who own the streets of Chicago are beaten down like animals by those deceptively referred to as public servants.” and 5:52 clip US vets throw medals at NATO; Entrapment Recall the three patsies who were arrested in Chicago? Somewhat different results; FB Virus Uses instant messaging; Control Freaks Should be interesting to see if the UN actually pulls this off; Advil side effects OTC migraine medicine, and Big Pharma marketing to healthy people? New Nuke Subs The UK is broke, but what’s a few billion between friends? Karzai’s Thank You to US taxpayers. War — What is it good for? No protests, no guns is how the feds. cheat Americans out of their guns; Big Ag. and Monsanto Turning research labs into propaganda machines; Monsanto’s Super Weeds They’re good for something.

#112 John G. Young on 05.21.12 at 7:02 pm

#104 Junius on 05.21.12 at 6:13 pm

“Don’t fall for the BS from Westerman and Truth Hammer. They are probably both unemployable and just bitter. Based on their posts neither posess the intellect to earn a decent living.”

Thanks for the advice. You may indeed be right (especially with regard to Truth Hammer), but of course there is no way of knowing. Like everyone else, I encounter this all the time (and especially on this blog): can I believe what this person is telling me?
What works best for me is to take people at their word; I have a good memory of what people say, and I’ve found that if they’re lying they will eventually trip themselves up. Also — and this may sound weird — but I just think it’s more respectful to others to assume that they are telling the truth until facts demonstrate otherwise; I’ve also found that standing at a remove from a person while attempting to assess the veracity of their statements actually interferes with getting to know them better.
Of course. I’m a psychotherapist, so establishing a trusting and emotionally intimate relationship is of importance for my work (and spills over into other areas of my life); I believe I read somewhere here that you are a lawyer, so I imagine that your goals and perspective would necessarily be different.

Cheers,

John

#113 Debtfree on 05.21.12 at 7:09 pm

@83 cef Yes several .

#114 Canadian Watchdog on 05.21.12 at 7:14 pm

Chart: Sizing up Toronto’s condo market http://i50.tinypic.com/33or8kx.png

#115 Vancouverite on 05.21.12 at 7:15 pm

Hi Garth,

Long time reader, first time posting.

Thanks for providing great information.

The housing prices in Vancouver are nuts. I think the people buying now are even crazier. I know one young person (20’s) at work is looking to buy now because interest rates are going to go up and others agreed this person is doing the right thing…..I kept my mouth closed as it was not my place to provide financial advice.

#116 MarcFromOttawa on 05.21.12 at 7:25 pm

LAST

#117 Form Man on 05.21.12 at 8:20 pm

Junius and others commenting on Greece

It is important to remember that the Euro is creating winners and losers due to individual countries being unable to manipulate their currencies. If Germany still used the mark, traders would be bidding it up because of Germany’s robust economy, thereby slowing imports and the economy down. Conversely these same traders would be pricing the Greek drachma lower, enabling their exports to be competitive. Unfortunately this cannot happen with a shared currency. The strong economies keep getting stronger and the weak ones keep getting weaker. In addition it needs to be pointed out that the debt that the Greek government took on was facilitated by ‘coaching’ from Goldman Sachs, who cleverly taught the Greeks how to ‘cook’ the books. It is ironic that both German and New York bankers are now scolding Greece ( who also have less total debt per capita than Canada ). Greece needs to follow Argentina’s lead and default, and re-establish a currency they can devalue.

westernman and truth hammer need to move to Somalia where they can enjoy a country without laws .

#118 Daisy Mae on 05.21.12 at 8:26 pm

#75 CROWDED: “The brother is either too cheap to get a lawyer to write a “Shotgun Clause contract”…”

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

Isn’t it a little late? It’s a done deal.

#119 Daisy Mae on 05.21.12 at 8:45 pm

Well, Garth, the long weekend is over. You had a relaxing and/or exciting time with Dorothy and are once again, refreshed?

Great! You said you were ‘distracted’….and it’s small wonder! Welcome back! LOL

#120 greed on 05.21.12 at 8:52 pm

#106 Truth Hammer

You certainly are the hammer.
What a bore!

Why don’t you post a useful link and save some space on the blog.

#121 John G Young you are boring, and passive aggressive on 05.21.12 at 9:07 pm

no, I’m not going to sign off with my “blog name” or else you’ll subject me to the same tiresome assaults that Westernman, Truth Hammer etc have to endure.

seriously, dude, you’re a psychotherapist.

it’s time to get over yourself, man.

hey, here’s a novel idea. Make a comment about the economy, or housing, or culture. Anything other than how you’ve been attacked or victimized.

I’m as left-wing as they come, but boy your act is tired.

Thanks, DA. — Garth

#122 salonist on 05.21.12 at 9:28 pm

been there for 12 years,bliss.

#123 Gun Boat denier on 05.21.12 at 9:31 pm

117 Form man – agreed on the shared currency. Disagree on the Greek govt debt. They have simply spent beyond their means. Government mandated freedom 55 and rampant tax evasion are recipes for disaster. The debt per capita comparison may be correct but their production is much lower.

#124 Debtfree on 05.21.12 at 9:44 pm

Thanks DA . ..LOl rotflmao . You da man Garth . That’s the funniest thing I’ve read for a while . I’m laughing so hard I’m having a hard time typing . Seriously da telling some else to get over themselves . Too rich . Are you sure they didn’t kick you out of cabinet because you have an acute sense of humor .

#125 Debtfree on 05.21.12 at 9:55 pm

Also Greece ??? You guys with Greece on the brain . 8 million Greeks are going to bring 400 million Europeans to their knees are you kidding . It’s as absurd as pei bringing Canada to its knees if they have a bad potato crop. You guys watch to much MSM or your calculator needs a new battery.

#126 John G. Young on 05.21.12 at 10:07 pm

#121 John G Young you are boring, and passive aggressive

Hi ){:/<? aka DA:

"hey, here’s a novel idea. Make a comment about the economy, or housing, or culture. Anything other than how you’ve been attacked or victimized."

OK. Repeat after me:

This is a moderated blog.
I am not the moderator.
I am a guest.

How's that?

BTW you're sixty-nine days early. I suggest you focus on your therapy — you got a lot of work to do.

Got you. — Garth

#127 Form Man on 05.21.12 at 10:10 pm

#123 gunboat

glad you agree about the Euro. It is also a fact that Goldman Sachs showed the Greece government how to run higher deficits than allowed as a Euro member, thus assuring Goldman of fat profits for underwriting the illegal loans. Time for Greece to give the proverbial finger to the fat bankers……..

#128 69 days early for what? on 05.21.12 at 10:15 pm

ohhh……

#129 Gun Boat denier on 05.21.12 at 10:44 pm

127 Form man – illegal loans for what? The banksters didnt magically put them in debt. It doesnt matter where
the money came from, the greeks or their govt still spent
it on something. Now they gotta pay.

#130 Form Man on 05.21.12 at 11:45 pm

#129 gunboat

the bankers most certainly did help put Greece in debt. Do your homework.

#131 whiteshoes on 05.22.12 at 1:30 am

John G Young

Your date awaits!

whiteshoes

Dr G., take steps:-)

#132 Gun Boat denier on 05.22.12 at 9:53 am

130 form man – the statement is more philosophical than practical. If the banksters somehow put the greeks in debt, they can just give the money back. Oops, they spent it.

#133 John G. Young on 05.22.12 at 10:23 am

John G Young

Your date awaits!

whiteshoes

Dr G., take steps:-)

???

Cheers,

John