The fix

Goodlife

Yesterday’s maudlin bitchfest on this pathetic blog nailed one fact. There are a lot of unhappy people. I wonder how many live in Winnipeg?

One year ago it was different there. I did a post on The Peg’s booming market in June of 2012.

“I’m in my late 20’s,” one woman told me then, “and have been watching friend after friend take the plunge, regularly bidding 10% or more over asking price. Note that many are single women who make between $30-$40,000. It’s incredible the pressure I am under.”

This week came news the local market is coming apart. Sales plunged 26% from a year ago, dollar volume is off 15%, deals so far this year have dipped 13% and are 19% below the 10-year average. The head realtor had this astonishing statement: “Buyers are noticeably absent from our market.” It’s a disaster.

But this is not about Winnipeg. It’s about choices. That fear and remorse would replace greed and speculation was never in doubt. Every market in the nation will be impacted this year, because it’s not different anywhere. Not only is the economy going limp, but we’ve reached a real estate saturation. Those who don’t recognize this will pay a large price.

Seventy per cent of Canadians have chosen to chosen to become homeowners. If 70% of people owned stocks, you’d get as far away from equities as possible. There is no greater contrarian indicator than the actions of the herd. As I’ve tried to point out endlessly, real assets have a dim future. Financial assets don’t. House lust has brought us to a dangerous point, when the bulk of most families’ net worth is in one place, and their debts are immense. In a world tipping closer to deflation than inflation, doing what your parents swore by is pitted with risk.

Dave says he knows it’s “impolite” to ask for free advice, but his Boomer parents are in a bad way.

“They live in a standard suburban bungalow with a pool, and owe: 350,000 mortgage, 35,000 2nd mortgage, 50,000 loans and other debt

“Part of the reason for the debt is that they had basement flooding twice that they had to repair, and my mother was forced her into earlier retirement by sickness. She’s 62. My step-father, whose 57, is a truck driver and makes fairly good money. I think last year he pulled in around 90k. Their house has been on the market since right after F changed the rules. It has gone through several price reductions, and still no offers. Obviously I’m worried about them.

“The house is listed at $469,900. It’s in good shape but needs some updating. If they do sell, after paying all the fees etc, I don’t even think they will have anything left over. I’ve been a reader of your blog for several months now and you have really opened my eyes, so I thank you for that. But any insight into my parents’ situation would be greatly appreciated.”

Dave’s folks are screwed. The decision to own real estate that was clearly beyond their means was a mistake. Not selling it when the market was robust was a mistake. Not investing or diversifying into other assets was a mistake. Hanging on now, in a house with no equity and debts equaling 500% of income, is a mistake.

Dave, your parents should go bankrupt.

Let’s assume they live in Ontario. A trustee in bankruptcy is appointed after the papers are filed. The bankruptcy starts immediately. You stop making payments. Creditors are notified within five days, and told to file a claim with the trustee. They almost never do.

Being bankrupt means you have to submit pay stubs to the trustee and prove your income. You must attend credit counseling sessions, and pay certain fees each months to cover the cost of the protection you’re receiving. This will go on for at least nine months, during which you also need to hand over any surplus income, inheritance or lottery winnings.

If this is a second bankruptcy, it could endure for three years, and will remain on your credit record for up to 14. But, you’re not stripped of possessions or necessarily thrown out of your house. You can keep almost $6,000 worth of personal possessions, and your car (but you have to pay the net value over $5,600), along with your furniture, tools, life insurance and locked-in RRSPs or seg funds.

The house? If you go bankrupt and own a home with no mortgage, you must cough up the cash value of the property, which goes to creditors, or lose it. If you have a mortgage, you must find enough cash to cover the equity. If, like Dave’s folks, you’ve only debts, then chances are you can negotiate a deal to stay there. After all, making payments on a mortgage is easier when all  other debts have been erased.

Bankruptcy is extreme, stigmatizing and humbling. But get used to it.

So many people have taken so many wrong turns we’re probably on the cusp of a debtor  tsunami. It’s one residue of an age in which people became convinced they could have everything, because that’s what middle class meant.

But as comments yesterday attest, the real harvest is alienation. No quiet fix for that.

230 comments ↓

#1 City that smells like it sounds on 04.08.13 at 8:50 pm

I’m furst. Deal with it!

#2 City that smells like it sounds on 04.08.13 at 8:55 pm

Regina prices keep going up folks!

http://www.newswire.ca/en/story/1140385/regina-house-prices-post-strong-increases-in-first-quarter

#3 Mr. Monday Night on 04.08.13 at 8:57 pm

I have more than my share of friends who have done this. I am too proud to not pay off my debts on my own, but it feels sometimes that people who’ve made some terrible choices with respect to debt get ahead by going bankrupt.

Ironically, they’ve all since recovered and managed to get into a nice big house. Can’t handle the luxury, I guess!

#4 asp on 04.08.13 at 8:57 pm

Oh boy, here come the comments about how immoral and unethical it is to skip out on your debts (aka, bankruptcy). But what these moral philosophers don’t get is that the cards are stacked. The banks, CMHC, real estate companies all have much more information, expertise and political connections than do ordinary consumers. They are the ones who should be responsible and pay when debts get out of hand. A contract is a two way street.

#5 T.J. BONES on 04.08.13 at 8:58 pm

Sir Garth: I miss FURST’s poetry!

#6 Gord In Vancouver on 04.08.13 at 8:58 pm

Excellent post, Garth.

All those young Vancouverites who became realtors during the bubble era will now become bankruptcy counselors : )

#7 PermaBear on 04.08.13 at 8:59 pm

Shelter Industries in Aldergrove, BC have just gone into receivership. The creditors are out of luck. Ex-employess might get something.

#8 ketch on 04.08.13 at 9:01 pm

hi garth. the new song for the ages. steely dans, everything must go. thanks

#9 wassup on 04.08.13 at 9:01 pm

RE is a goner now for a while ..that we can agree. Boring news.

For a better topic is RBC a good buy now or are they going to dip as a result of the labor fiasco?

#10 Ralph Cramdown Ⓤ on 04.08.13 at 9:02 pm

I don’t think a negative net worth is enough to declare BK. I think you actually have to not be in a position to meet your monthly obligations. I could be wrong. If the breadwinner owns his own truck, or is bonded, things might be affected, and I have no idea about US customs FAST Pass etc.

Good luck.

#11 T-bone on 04.08.13 at 9:04 pm

Sobering! Wrinkles going bankrupt in the autumn of their lives.

#12 Pascii on 04.08.13 at 9:05 pm

SO REITs aren’t really doing very well this year. Mine are down between 1.5 and 5.4% in the last 3 months alone. What gives Garth?

http://ca.finance.yahoo.com/q/ta?s=XRE.TO&t=1y&l=on&z=l&q=l&p=&a=&c=? — Garth

#13 [email protected] on 04.08.13 at 9:07 pm

Sad story and tough times.

Outsourcing, in sourcing, salary breaks and bringing in workers from abroad to do work that Canadians can easily do is just wrong. Is it possible to get the list of companies that applied for temporary foreign worker program for 2012?

#14 Herb on 04.08.13 at 9:09 pm

Useful advice, but hardly welcome. Hope someone somewhere is working out the implications for the econmy.

#15 Suburb boomer on 04.08.13 at 9:10 pm

Wow, how sad is that?

#16 Sam on 04.08.13 at 9:11 pm

http://www.youtube.com/watch?v=yHFDa9efCQU

#17 shanks on 04.08.13 at 9:11 pm

I wonder if the realtors noticed the same thing at the start of the last housing downturn, that there was a marked absence of buyers all of a sudden.

#18 Smoking Man on 04.08.13 at 9:13 pm

Watching the following, cold blooded killer friends with contitousionalist. Demonizing by association…

The machine never sleeps…

#19 Hoping for a slow down in the Peg on 04.08.13 at 9:14 pm

I wish I could agree with the comment about Winnipeg housing settling down but I have not seen it in the South part of the City. I have been renting for 10 months and I have watched the South market closely. The market slowed in the fall (when houses stayed on the market for all of three weeks and sold for asking or just below). This spring though the market has again picked up. There are lots of listings but as I drive by the listings the next week there are sold signs. The houses that I have gone to see sell the day after the open house for asking (or close to asking). The asking price is always just over what a similar house sold in the area last year. The open houses I attend no one even looks at the foundation, the outside, the ceilings, the basement. They just walk around, look at the furniture, the colours, the countertops and then leave. Obviously, no engineer’s reports, no home assessments, nothing, just bid and buy.

You can tell what the asking price is because it coincides quite closely with the assessed value for property taxes. Most of the assessed values are up around 10% to 20% since 2010. Assessed values are at the low range if the house has not had any work done to it, 20% if work has been done. You can to the City of Winnipeg website to see the assessed values and the difference between 2010 and 2012.

Wish I could agree Winnipeg is slowing but it isn’t yet.

#20 eviee1973 on 04.08.13 at 9:16 pm

Saw a laugh in Friday’s Calgary Herald, some developer in St. John’s Newfoundland was trying to market a condo townhouse development to home sick/retiring Newfoudlander’s. No pricing in advertisement.

#21 Sockeyemoon on 04.08.13 at 9:17 pm

CTSLIS -if you have nothing to say, it doesn’t matter if you’re furst.

—-
Bankruptcy is extreme, stigmatizing and humbling. But get used to it.
This has got to be bad news for equities too. What sustains the market when consumer spending goes into the toilet when all the debtors have their credit cards frozen. Time to short?!

#22 Jeff on 04.08.13 at 9:19 pm

I wouldn’t call what people in Loserpeg do “living”.

Oh wait, this just in, Ikea has opened up. House prices are justified, everyone.

I only called it ‘Loserpeg’ because of the nouveau Jets. I used to live there. I got out, you can too.

#23 Paully on 04.08.13 at 9:24 pm

It seems that every time there is some kind of a boom, bubble, whatever, there are always people that want to say “It’s different.” Sadly, it never is. Every boom ends. Every bubble pops. We always want to think that it is different this time, this place, this way, etc. Alas, no. Buh-bye real estate bubble!

#24 Weedeater on 04.08.13 at 9:26 pm

The parents maybe in a tight spot but I disagree about the bankrupcy recommendation. As another poster pointed out, there are other factors to consider such as how employment is affected. Sure, they should definitely suck it up and get out of debt, unload the house, and start living on cash. Once that’s done, bulk up a TFSA, and get some personal finance counselling. For instance, is his Mom getting early CPP? Has she visited the CRA calculator to figure out how much she can receive? If she converts a RSP to a RIF I believe she’s entitled to a $2,000 pension deduction on taxes. She can start bleeding the RIF into a TFSA. It’s unfortunate they’re so close to wanting to retire, but a few years of living small will go a long way to letting them sleep at night.

#25 East Van on 04.08.13 at 9:26 pm

Don’t worry. The Con Govt is looking after Canadians by allowing them to compete for jobs with visitors from Bangladesh @ 15% below the going rate. Thanks Steve.

#26 Garth is not god on 04.08.13 at 9:27 pm

Before declaring bankruptcy take of as much loan as possible and buy RRSP.

RRSPS (unlike LIRAs) do not survive bankruptcy. — Garth

#27 East Van on 04.08.13 at 9:29 pm

all this while we have 7% structural unemployment.

#28 Keeping the Faith on 04.08.13 at 9:29 pm

“ha ha ha ha Bankruptcy because of Real Estate, no way! … ha ha ha ha … that’s toooooo funny, real estate always goes up”

… a flashback conversation I had 2 years ago with a few house flaunting braggart former friends. They laughed at the thought of bankruptcy over housing choices.

At the same time they TRIED to convince me to buy and not rent because I was “Just throwing my money away” The Economist now believes owning Canadian real estate is 78% overpriced vs renting and we’re about to see a BIG correction.

… this is what it means when “The tables have turned”

#29 Dust in the wind on 04.08.13 at 9:31 pm

RRSPS (unlike LIRAs) do not survive bankruptcy. — Garth

——————————————
LIRA survives bankruptcy but would it survive the government long hands?

Absolutely. — Garth

#30 Cici on 04.08.13 at 9:32 pm

Garth,

I’m indebted to you for your good advice!

And now that the golden oldies are starting to go bankrupt, and that there won’t be a heck of a lot of people cashing in big while cashing out of real estate, could you please do a post on investment strategies for the poor surfs among us with precious little to invest.

OK, maybe I’m being impolite, but it seems to me that our numbers are and will be growing. I have been paying attention to your mantra: no house, no lousy GICs stuffed into the orange guy’s shorts, yeah TFSAs, and so on. But really, how are we supposed to create a “balanced and diversified portfolio” when we have to go about it one step and a time and without tens of thousands of dollars to throw about in different investment vehicles and sectors?
Look, I know you like ETFs and index funds, but should we really be buying these a thousand bucks at a time, or should we be hoarding our money at low interest rates in the orange guy’s shorts until we have a certain amount of capital, and if so what is that magic number at which we should break free and start building a real portfolio.
If you don’t feel like coughing up the free advice, but do have some guidelines on any of these subjects in any of your books, please list the titles.
It’s not that we surfs are necessarily cheap, its more that we have very small reserves to draw from in order to build anything at all.
Any advice (well except for nasty advice) would be much appreciated.

#31 Dimitri on 04.08.13 at 9:38 pm

Great post today.

#32 eagle eyes on 04.08.13 at 9:43 pm

$90,000 per year is a mighty lot of surplus income. You might as well lower the asking price of the house to a sellable price since you only have $385,000 mortgage on it. Deal with the $50,000 unsecured debt with a consumer debt proposal paid over 3 years. They will still have a modest income without declaring bankruptcy.

#33 DM in C on 04.08.13 at 9:47 pm

“If this is a second bankruptcy, it could endure for three years, and will remain on your credit record for up to 14. ”

I wondered about that. My brother and his wife declared in 2001. If they keep going the way they are going, another is coming. If the first bankruptcy is already +12 years ago, is the coming one again a first, akin to being a first time home buyer if you haven’t bought within the past 5 years — Or is the second (or more) bankruptcy over your lifetime?

#34 DM in C on 04.08.13 at 9:48 pm

edited to add….. Counted over your lifetime?

#35 Ralph Cramdown Ⓤ on 04.08.13 at 9:52 pm

“Hope someone somewhere is working out the implications for the econmy.”

“This has got to be bad news for equities too. What sustains the market when consumer spending goes into the toilet when all the debtors have their credit cards frozen. Time to short?!”

To the extent that your average bankrupt or discharged bankrupt is going to be spending more of his money on ‘stuff’ and less of it on ‘interest and principal payments from stuff he bought before,’ and since spending on stuff has a greater multiplier than interest and dividends paid to the investor class, I’d say the economy gets better off. The behaviour that led to the bankruptcy and the household’s balance sheet is in the past, so we’re not talking about the difference between prudent living and bankruptcy, but the difference between struggling under an already extant debt load and bankruptcy.

Now obviously some Canadian companies will do better than others in the event of a made-in-Canada recession.

#36 Tom Vu on 04.08.13 at 9:53 pm

All is not lost:

Most Winnipeg women can play linebacker, …. make big $$$ …. part time too.

#37 TurnerNation on 04.08.13 at 9:53 pm

Our new Kanada. Best epitomized by these Russian lolcats:

http://rolcats.com/page/2
http://rolcats.com/page/3
http://rolcats.com/

(I showed this site to a Russian-speaker he said the pictures themselves have altogether different caption translations – yet still funny!)

#38 Supreme Commander on 04.08.13 at 9:55 pm

it’s too soon for Dave’s folks to throw in the towel to bankruptcy. Sure make best efforts to sell the house, the unsecured loans or credit card debt could be negotiated down, “unsecured debt=negotiation” always. After that they can start living within their means. The only winners in bankruptcy are those who are gaming the system and do it intentionally after running up hugh debt levels, end up “richer than the think” shame on them.

#39 DaleFromCalgary on 04.08.13 at 9:56 pm

#17 – About your remark on realtors noticing absence of buyers. I know a few who were around when Calgary’s housing market collapsed in February 1982. Some of them said they could name the exact date when the phones stopped ringing. Not just a tail-off in calls, but a sudden dead stop. One day was regular business; the next day the phones did not ring once.

I bought my house shortly after for $20,000 below asking. I paid $80,000 and assumed the mortgage. The owner paid all the legal bills and commission and was happy to walk away with only a small loss of a few thousand. I lived in the basement suite and rented the main floor out. The rental income was nice but the real killing was that I could deduct half the mortgage payment, utilities, and property tax against the income. My tax refund was bigger than the rent. Eventually I paid down the mortgage to where I could take over the entire house after paying it off in 1997.

Any realtor who tells you Calgary is different should be told about what happened in the early 1980s when people walked away or sold to dollar dealers. It will happen again.

#40 Old Man on 04.08.13 at 9:58 pm

I had this friend of mine that declared a bankrupcy, as he went crazy with credit cards, and went through hell about it all. Life does on and asked me to file an income tax return for him after the fact, as said no charge, as his gross income was $100,000, as he knew I was good to hoop the Tax Man, so did a filing for him, and helped him out.

#41 Mithan on 04.08.13 at 9:59 pm

Sad post Garth…

#42 Notta Shepple on 04.08.13 at 9:59 pm

“……Yesterday’s maudlin bitchfest on this pathetic blog nailed one fact. There are a lot of unhappy people…..”
====================

No kidding. Wonder why?

Canadians forced to train their own foreign labour replacements? all approved by the Harpocrite government?

What’s next? an Action Plan shovel for every wrinkle to dig his/her own grave?

#43 Randy on 04.08.13 at 10:03 pm

More Liberalism will solve everything….bahaha

#44 ChickenLittle on 04.08.13 at 10:03 pm

“If you go bankrupt and own a home with no mortgage, you must cough up the cash value of the property, which goes to creditors, or lose it.” Garth

WOW! THAT is scary! Do people even realize this is what could happen if they bought a $750k house and couldn’t pay for it?!?

“If you have a mortgage, you must find enough cash to cover the equity. ”

That should be easy since no one put much down to begin with.

#45 Smoking Man on 04.08.13 at 10:05 pm

Love the pic….

The good life, do everything right, play your roll, follow the script, and your on the ground.

And I’m the insane one on here…..

Haha

#46 young & foolish on 04.08.13 at 10:05 pm

I still don’t understand why most people loathe renting ….

#47 Property Accountant on 04.08.13 at 10:08 pm

Source: http://www.thestar.com/business/real_estate/2013/04/04/canadian_housing_market_in_a_highly_unusual_place.html

“Highly unusal place”… what about canadian economy ? Recent job market report was devastating, S&P/ TSX index tanked from 12,840 in mid-March readings to 12,343 today. That’s 3-4% drop. And financial markets are usually right and predict far better the path where economy is going than real estate prices – which in “unusual place” like Toronto – tend to go up.

It is the job that allows to pay for those mortgage bills. What happens if it is gone? What if that job depends on canadian real estate market, which by some estimates employs directly or indirectly 60% canadians? Construction workers, concrete truck drivers, engineers, real estate agents and so on? Small contraction could cause a domino effect, just like macroeconomics teaches us.

How can people be happy about tanking real estate? Everyone please pray that nothing happens to our real estate market. Lets pray canadians work faster, better than US workers. Lets create some jobs. Or we are really doomed and Mr. F would have to step in again with some brilliant policy, let’s say, “quantitative easing” ?

#48 Paully on 04.08.13 at 10:09 pm

#32 Eagle Eyes

“Consumer Proposal” is the same as Bankruptcy in the eyes of any credit granter. If you choose to use either tool, you are just a flake who does not pay your bills, and you won’t be able to finance the steam coming off a hot lunch.

#49 Timbo on 04.08.13 at 10:12 pm

http://www.huffingtonpost.ca/2013/04/07/hd-mining-foreign-workers-cleared_n_3031230.html

“An internal federal review of a decision to grant permits to a Chinese company to bring temporary foreign workers from China for its British Columbia coal mine found the company met or exceeded all requirements.”

http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/oil-sands-firms-look-at-outsourcing/article1321304/

Aug. 23 2012 “Several oil sands firms have started discussions with management-consulting and outsourcing firm Accenture, which has completed a broad labour analysis that shows that 10,000 to 15,000 jobs could be uprooted from northeastern Alberta.”

This is systemic and affects all professions. Enjoy the job security…..snark…

#50 happy renter on 04.08.13 at 10:14 pm

Buy cash flow rental properties and let the renters pay of the mortage instead of the stock market.I guess if they keep pumping the market with 85 billion dollars a month for the next couple of years its a great investment. I wish Canada could pump the tsx for a least 50 billion a month,it be awsome.

#51 Need Sleep on 04.08.13 at 10:17 pm

This article does a great job explaining why it appears that prices are still going up even though the housing correction has already begun. http://www.huffingtonpost.ca/2013/03/20/house-prices-canada-february_n_2916164.html?utm_hp_ref=real-estate-canada

According to the latest data from the Teranet-National Bank house price index, Canada experienced its sixth consecutive month of house price declines in February, with prices falling 0.2 per cent from January.

They’re still higher, though, than they were at the same time last year — by 2.7 per cent, on average.

But with prices declining since last summer, those year-on-year “increases” will probably disappear from the stats soon. Will Dunning, the chief economist for the Canadian Association of Accredited Mortgage Professionals, predicts house prices will start showing annual declines around June of this year.

#52 John in Mtl on 04.08.13 at 10:19 pm

“Bankruptcy is extreme, stigmatizing and humbling.” – Garth.

I’m pretty sure people don’t give a rat’s ass about that, they know how to play the game. What’s the use of acting responsibly, your slate is clean to do it all over again a few years later! There’s little consequence to bankruptcy nowadays. Besides, the system needs consumer slaves to keep the ponzi scheme going.

John

#53 Good Authority on 04.08.13 at 10:21 pm

All this talk suddenly about bankruptcy.
Where did the slow melt scenerio go?

This is what it looks like. — Garth

#54 Timing is Everything on 04.08.13 at 10:22 pm

#9 wassup

It’s all good. RBC ‘clarifies’ outsourcing…

http://tinyurl.com/ct7jh4v
http://tinyurl.com/bn3xgke
—————————————————–
How ’bout some good news…

‘Onder Water’: The Netherlands Falls Prey to Economic Crisis

http://tinyurl.com/cpdznws
http://tinyurl.com/c7d76ph
—————————————————–
Garth. Just 4 U…To cheer up this pathetic blog, you understand.

http://tinyurl.com/bv6hece

#55 Not 1st on 04.08.13 at 10:22 pm

Garth that has to be the worst advice I ever heard. The dad is only 57 in good health pulling 90k. He could easily work another 7-10 yrs. makes no sense to declare bankruptcy – that is a last resort. Fire sale the house over the next year start banking that 90k and this couple could still have a decent retirement.

No equity in the home. Unrepayable debts. No way they’ll save enough to retire on. Some people just need a do-over. — Garth

#56 Retired WI Boomer on 04.08.13 at 10:23 pm

Well yesterday’s posts were a fun read, and quite insightful. Some of the latter posts were the best I’ve seen here (including my own penny dreadfuls).

I feel for tonight’s trucker. Transportation was my game.
Good money, but very few truckers & families knew how to manage money well. Apparently NOT just a US trucker issue.

Garth – selling the house relieves a LOT of their financial problems. Why would Bankruptcy be your first solution?

Why not update the house modestly, make it shine, price it correctly. Dirty used cars rarely sell at a good price, clean ones do. Same applies to RE.

Thanks to all for the heartfelt posts yesterday! Great!

If these folks price the house ‘correctly’ they will need to take a cheque to the closing. — Garth

#57 Bill Gable on 04.08.13 at 10:25 pm

Thanks a bunch for this clear and transparent info on bankruptcy. Better presented and explained than my Economics 402 Prof ever did.

Of course, hey was Keynsian.

Let’s not go there.

#58 prairie person on 04.08.13 at 10:26 pm

I don’t dispute the numbers and I recognize that the numbers available are for Winnipeg proper. However, I’ve been keeping an eye on Manitoba rural property. Prices don’t seem to have been affected at all. Because so few places sell, it is hard to get a real sense of what is happening–if anything is happening. Mortgage rates going up would have an impact. Those rural places where Winnipegers move after selling their house (resort areas on the various lakes) will be affected pricewise because fewer people will come and will have less money to offer to buy or build. A lot of building has gone on with houses in the 400-900,000 price range. Seems crazy to build that type of house in a small community in the country, lake front or not but people have been doing it.

#59 Good Riddance Margaret Thatcher on 04.08.13 at 10:31 pm

Smart commentators noted yesterday how the social contract has been fundamentally broken. This is the logical result of 30 years of seeping ideological sewage from conservative mental defectives running the western world. Reagan was an idiot, who according to Leslie Stahl of CBS news, was already showing clear signs of mental incapacitation by 1986. Thatcher was an uneducated twit and a racist who would rather Nelson Mandela remained in prison. Mulroney, as yet unindicted, still owes Canadians $2.1 million for the settlement he received after testifying under oath that he had no business with Karleheinz Shreiber.

Liars, frauds, sock-puppets, idiots, the lot of them. Harper, Hudak, the Ford Bros. and more are equally moronic as are all their followers.

The real estate melt, income disparity and the ongoing spiral to the bottom are continuing signs of the lingering effects of conservative stupidity now a generation old.

Thank God Obama destroyed Romney and the Republicans are about to implode.

The idiots who have brought us job outsourcing and no future for an entire generation will soon be outsourced themselves.

People elect leaders. To indict only the elected is an abrogation of your own responsibility. — Garth

#60 Ralph Cramdown Ⓤ on 04.08.13 at 10:31 pm

#43 Property Accountant — “What if that job depends on canadian real estate market, which by some estimates employs directly or indirectly 60%* canadians? How can people be happy about tanking real estate? Everyone please pray that nothing happens to our real estate market.”

If you were an accountant advising a firm that devoted 60% of revenues to executive office space while dividing up the remaining 40% among productive plant, inventory, labour and cost of capital, would you have any advice for management, besides ‘pray?’

There’s a big difference between hoping a serious misallocation of capital will end — the sooner the better — and being happy about the consequences.

* – I think that figure is far too high. Don’t bring ‘some’ estimates to a debate. Bring YOUR best estimate.

#61 Dr. Oblivious on 04.08.13 at 10:35 pm

Bankruptcy may be good advice for these folks but it reads to me like they still believe they can sell the house and save themselves. If they do believe that, they are not ready to accept bankruptcy. Hope, for their sakes, that either it sells soon even if it means a big asking price reduction. Also two basement floods sounds like maybe they need some expensive repairs or maybe it was built in a bad spot. Worse yet this spring looks quite wet almost everywhere.

#62 blase on 04.08.13 at 10:35 pm

I’d wager that most people on this blog are far more liquid than the average Canadian, and much more aware of what is really going on in the economy and in the political realm. It’s called reality, not living in a fantasy world of fast money and easy credit. You had a blog about bunkers only a few short years ago Garth, I’m sure you can relate.

#63 Old Man on 04.08.13 at 10:36 pm

I just took a look at the pic, and see it as what I call a point counter point in life, as the sign says Good Life with a homeless man sleeping below the sign which is a contradiction of reality, and Mr. Turner once again always has a pic with a hidden meaning. :) Come on and give me a hard one Mr. Turner.

#64 Investx on 04.08.13 at 10:37 pm

#48 Paully on 04.08.13:
#32 Eagle Eyes

“Consumer Proposal” is the same as Bankruptcy in the eyes of any credit granter. If you choose to use either tool, you are just a flake who does not pay your bills, and you won’t be able to finance the steam coming off a hot lunch.
—————————————-

A big difference is that a consumer proposal is reported to your credit file for 3 years, compared to the 7 years for a (first-time) bankruptcy.

#65 FTP - First Time Poster on 04.08.13 at 10:42 pm

I didn’t get a chance to post last nite as there were already almost 200 comments by the time I got around to reading what you wrote. I’m surprised Garth that you too don’t feel somewhat cynical with respect to the markets. We’ve seen a whole plethora of manipulation, payouts, handouts and down right theft.

Just to recap:

– GFC 2008 – Bear Sterns goes belly up, pulls Freddie and Fannie under, GM goes under. Massive bailouts. GM has the balls to put out an ad saying they’ve “paid back” the loans given to them by the gov’t – fail to mention the massive stock purchase with CDN & US Taxpayer dollars was a donation never to be seen again;

– Madoff looting his clients for billions with a slap on the wrist;

– John Corzine robs his clients (MF GLOBAL) blind and is still walking the streets. The SEC doesnt care;

– Muddy Waters exposes TRE.to for financial fraud;

– Congress allowing itself to conduct insider trading;

– The exposure of major banks – INCLUDING the Royal Bank of Canada in the LIBOR scandal. Subsequent action taken in the NY District Court resulted in NO banks being prosecuted or sued. It wouldnt even be heard in court.

And your views on the U.S.? All I can say about the US is “normalcy bias”. Its amazing that most baby boomers aren’t aware they’re witnessing the end of the U.S. as a global empire. What we’re seeing is the U.S. do what all empires do near the end – desperately pillage and loot to maintain power and the status quo.

Here’s my view of the U.S.

https://www.youtube.com/watch?v=16K6m3Ua2nw

Take the time to watch “Inside Job” it lays out pretty clearly why people are both leery, bitter and most of all – pissed:

https://www.youtube.com/watch?v=o1Xa6tLXvdA

The views on this blog, regardless of the percentage of posters, don’t reflect the views of the “nutjob”, “gold bug” or “doomsday prepper” – they reflect the views of a tired, broke, frustrated and financially uneducated public who have been royally screwed by those in political and economic power.

#66 Ralph Cramdown Ⓤ on 04.08.13 at 10:47 pm

#56 Retired WI Boomer — “I feel for tonight’s trucker. Transportation was my game.
Good money, but very few truckers & families knew how to manage money well.”

I have an uncle who drove long haul o/o as did his two sons, while his wife stayed home and kept the books. One son gets audited by CRA (our IRS) and they end up refunding him enough money that he buys himself a new Chevy sedan with it.

#67 Guy_in_Regina on 04.08.13 at 10:55 pm

#2, hey “Smell’s Like it Sounds”,

what they don’t mention is that YOY sales in Regina have been trending down since August, and cratered 25% in January (inventory up 18%) and 24% in February (inventory up 29%). March is not looking any better.

Prices lag, sales lead.

#68 brunette on 04.08.13 at 10:59 pm

Is there a way to rate the posts so that I can sort by rating and skip thought the low rated ones? I don’t have time to read 300 posts when New Girl and HIMYM are on. Thanks.

#69 Former lawyer on 04.08.13 at 11:00 pm

#26 ‘”Before declaring bankruptcy take of as much loan as possible and buy RRSP.

RRSPS (unlike LIRAs) do not survive bankruptcy. — Garth”

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

The rules around exemptions in a bankruptcy are tricky, but I think Garth’s comment that RRSPs are not exempt is out of date. In at least some provinces (BC and Ontario included) RRSPs will survive a bankruptcy, except for any contributions made in the 12 months before going bankrupt.

With all respect to Garth, my suggestion would be to discuss your circumstances with a bankruptcy Trustee who specializes in personal bankruptcies before pulling the plug.

Bankruptcy may end up being the best solution, but before going there an hour with a bankruptcy Trustee would be money and time well spent.

However the suggestion of the person posting at #26 is problematic both because of the 12 month restriction, and the general rule that a one should not take steps to hinder, defeat, or delay his or her creditors. Not cool to be broke and be a cheat.

#70 Smoking Man on 04.08.13 at 11:02 pm

Garth don’t know how to take my last post that vanished, token of friendship, or competitive rivalry..

Going with don’t know do it smoking man.

Ok garth…. Going with two

Equal treatment for anyone who tries to use the blog as a marketing device. — Garth

#71 Shawn on 04.08.13 at 11:07 pm

DON’T GO BANKRUPT – NOT YET!

No need to go bankrupt as long as new money can be borrowed to make payments on the old debt.

Keep the cycle going.

Only when no more new money can be borrowed and debts are truly through the roof with every credit card maxed to the hilt is it time to consider bankruptcy.

I’m kidding… but I suspect a lot of people do this.

Once you get in over your head with debt it’s hard not to keep borrowing as long as the lenders are willing.

#72 Smoking Man on 04.08.13 at 11:13 pm

Equal treatment for anyone who tries to use the blog as a marketing device. — Garth

Seriously, I’m marketing…

Oh grasshopper, just trying to share my pain and humanity. I goof

#73 David on 04.08.13 at 11:23 pm

It appears that nowhere and no one is immune to bubble nomics. House prices in Manitoba grew at about 10% on an annualised basis over the past decade. All the current hand wringing is a reality check.
Not to worry, North Dakota which is just due south was one of the few American states to escape the 2006 housing bubble collapse. North Dakota is now enjoying both a housing and oil drilling bubble that will likely end badly when well depletion rates start to exceed new production.

http://www.dailykos.com/story/2013/04/05/1198602/-Peak-oil-and-peak-silliness

#74 Old Man on 04.08.13 at 11:24 pm

There is one time in my life that considered bankruptcy as the only way out, and my dad stepped in with a banker to do a consolidation, and he co-signed the loan, as was spending too much money on women, as they were costing me about $1,000 a week.

#75 Mixed Bag on 04.08.13 at 11:29 pm

I must be old-fashioned. Declaring bankruptcy still seems like a get-out-of-jail free card. To be fair, I don’t know the details of this couple’s situation. But in general, it feels like someone can live irresponsibly, live it up in the process, then avoid the responsibility of paying for it by declaring bankruptcy, while I live below my means, making sure I have money for a rainy day, have never done one of those Caribbean vacations. I’ll grant that my impression may be over-simplified, but this is how it feels to a saver.

If we’re on the cusp of a debtor tsunami, what are the implications for the savers?

#76 Mixed Bag on 04.08.13 at 11:34 pm

BTW, Garth, you say in your post “locked-in RRSPs” are safe, and further in the comments that RRSP’s are not safe (implying those that are not locked in). Can a person convert their regular RRSP into a locked-in one? Whether or not it’s a good idea is another matter to think about. Thanks.

#77 Zorik on 04.08.13 at 11:37 pm

Timbo
Do not worry it is just matter of time.
Soon Chinese communist will slave zombies here.

#78 Grant on 04.08.13 at 11:39 pm

Bankruptcy=legalized theft

#79 The fool on 04.08.13 at 11:40 pm

I need some opinion guys, We just bought a house, and I am in process of mortgage related formalities right now.

We all know the famous debate on variable vs fixed. But my question is

5 year fixed at 2.79
or
10 year fixed at 3.69

Does anyone have any opinion on the subject given the current situation in Canada and the global economy over all.

#80 cramar on 04.08.13 at 11:41 pm

#2 City that smells like it sounds on 04.08.13 at 8:55 pm
Regina prices keep going up folks!

http://www.newswire.ca/en/story/1140385/regina-house-prices-post-strong-increases-in-first-quarter

—————–

Go figure! Got a call tonight from my son who lives in Regina. He is fed up with winter and would love to move away! It was -22c last night (with windchill) and there is still 5 feet of snow in his GF’s yard! Winter started at the end of Sept. when it started snowing—and winter hasn’t ended! I told him that yesterday here in Leamington it was +18c & sunny! My neighbour was mowing his lawn in a t-shirt. I was planting a veggie garden yesterday and today. Why is RE in Winnipeg, Regina, and like places, so expensive? Ah, I get it—they are such desirable places to live! In contrast, we also have some of the least expensive RE in the nation.

#81 StudentDormDiarrhea on 04.08.13 at 11:41 pm

It’s an anomaly, it’s due to cold weather says the G&M:

http://globalnews.ca/news/464453/cold-weather-chills-winnipeg-housing-market

#82 Tom Vu on 04.08.13 at 11:47 pm

“Art of War” versus Bankruptcy !

In all the financial commotion, I lost count of how many condos I bought !

Are you feeling lucky punk bankster ?
I still have $175 left on my 69 th credit card !

http://www.youtube.com/watch?v=tmxcOMjUkF0

#83 Smoking Man's Old Man on 04.08.13 at 11:49 pm

#36 Tom Vu

Too funny… if you not a comedian you should be.

#84 :):( Ying Yang on 04.08.13 at 11:52 pm

Bankruptcy is such an undesirable path, however been there and done that in early life. All I can say is dam Nortel. Had a friend also go under he had spread s lot of his wealth around just before they came a knocking at his door. He lost the business, house, Ferrari and a wife. He sailed his boat to the Caribbean where it mysteriously was stolen. He cashed out mega assets and went to Vegas to triple his money to pay creditors. Mysteriously lost his cash, creditors swooped in and picked what was left to the bone. Lets just say he is doing quite well after his so-called bankruptcy. My escapades with creditors were more dimune. After my nasty adventure with Nortel I rode the Au, Ag & Pt markets until I recovered. Yes I know we can’t mention Au here.

#85 HD on 04.08.13 at 11:53 pm

#30Cici on 04.08.13 at 9:32 pm

You raise some very good points.
In my case, I initially put all my money in savings account and in cashable GICs.

You are correct.

If you don’t have enough money, it is not worth it to build a balanced portfolio with ETFs.

The magic number is $50K.

Your transactions fees are reduced to $9.95 per trade with most brokerage firms once you hit $50K in financial assets.

When I hit that number, I started to build a balanced portfolio couch potato style with various ETFs.

Your other option would be to go with the e-series TD mutual Funds. They are among the cheapest mutual funds in Canada. You can build a balanced portfolio at very low cost with no minimum required. They don’t charge any fees for trade so you can rebalance very often if you like.

Once you hit $50K with your e-series, you can transition to ETFs but e-series are still a very good alternative for portfolios over $50K.

Best,

HD

#86 Wasn't that a party! on 04.08.13 at 11:58 pm

Here’s a good example….

“For McDonald’s shareholders, the past five years can be aptly summed up by the slogan “I’m lovin’ it.” According to Yahoo Finance, shares of the global fast-food giant are up 80 percent since April 2008—more than four times the gain of the S&P 500 over the same period. The company is robustly profitable—its profit margin hovers near 20 percent, and it’s got $2.3 billion in cash on the books.”

http://www.motherjones.com/

#87 ayn rand army on 04.09.13 at 12:01 am

Garth, looks like the best before date will be arriving soon on the USD. Are you ready?

#88 :):( Ying Yang on 04.09.13 at 12:01 am

Smoking Man we are still interested in the path of enlightenment regarding your ventured gains in Forex land. Way too fast for an old guy like me. Knock em dead and make some capital. My time had come and gone you are the grasshopper now. A word of caution stay away from Korean stocks for a while its about to heat up on the peninsula, to around 5000 degrees or so.

#89 Dr. Oblivious on 04.09.13 at 12:02 am

This post and several others plus all of the other opinions out there make me think. Whether it is a soft or hard landing for real estate is really going to depend on your personal position and when the SHTF for you.

#90 The fix — Greater Fool – Authored by Garth Turner – The Troubled Future of Real Estate | The Affluent Boomer™ on 04.09.13 at 12:02 am

[…] Seventy per cent of Canadians have chosen to chosen to become homeowners. If 70% of people owned stocks, you’d get as far away from equities as possible. There is no greater contrarian indicator than the actions of the herd. As I’ve tried to point out endlessly, real assets have a dim future. Financial assets don’t. House lust has brought us to a dangerous point, when the bulk of most families’ net worth is in one place, and their debts are immense. In a world tipping closer to deflation than inflation, doing what your parents swore by is pitted with risk. Continue reading → […]

#91 Dr. Hoof-Hearted on 04.09.13 at 12:06 am

Doctors driven to bankruptcy

http://money.cnn.com/2013/04/08/smallbusiness/doctors-bankruptcy/

QUOTE:

As many doctors struggle to keep their practices financially sound, some are buckling under money woes and being pushed into bankruptcy.

It’s a trend that’s accelerated in recent years, industry experts say, with potentially serious consequences for doctors and patients. Some physicians are still able to keep practicing after bankruptcy, but for others, it’s a career-ending event. And when a practice shuts its doors, patients can find it harder to get the health care they need nearby.

Chapter 11 bankruptcy filings by physician practices have spiked recently, noted Bobby Guy, co-chair of the American Bankruptcy Institute’s health care committee, who tracks bankruptcy trends tied to distressed businesses. Guy said there were at least eight filings in recent weeks, which he said was “very unusual.”

etc. etc.

#92 msnyahoo on 04.09.13 at 12:09 am

My interpretation of today’s pic.

You Run and Run and Run for the “Good Life”. And then comes a time when you are tired and you collapse.

#93 Victoria Tea Party on 04.09.13 at 12:13 am

#239Dr. Hoof – Hearted on 04.08.13 at 10:23 am
#185 Victoria Tea Party on 04.08.13 at 12:11 am

A response, but first your highlights:

“…Advice:
Don’t listen the court historians.
It’s called propaganda.

All wars are Bankers wars.
Maybe listen to Benjamin Friedmans speech(GOOGLE it).

FYI: Germany was dragged into every war.
They WON WW1…..but sought peace…the “Bankers” convinced Britain to say no….if they would be given Palestine, they would get the US into the War (Balfour declaration)…and BTW the Federal Reserve was created around the same time,…..connect the dots.”

OK

The Germans did not win WW1 because the country was suffering from a societal breakdown from 1917 onwards into the Weimar 20s, then through Hell after that until May 7, 1945.

In 1917 and 1918 Germany was a mess with internal street battles in Berlin between the commies and various right-wing groups, one of which later formed the core of the Nazi SS.

Read the book “The Orientalist” for a first hand unconflicted story about the left/right menace in downtown Germany; the mutiny within the German Navy; Germany allowing Lenin a free pass that took him from Switzerland through Berlin by rail and steamship (Baltic Sea) to Finland and thence to St. Petersberg in time for the later and “successful” Bolshevik Revolution in October 1917.

In those desperate days, Germany tried to cut deals with the Russians and other Entente countries. To no avail.

IN THE END

Germany’s manhood was lost on the battlefield. The same story was also writ for the young exclusively male soldiers from Great Britain, France, Italy and, to a lesser extent, the Ottoman Empire (Turkey).

WW2

Germany was responsible for this debacle, too.

A footnote of history: for a few years in the 1930s Soviet and German soldiers conducted training exercises on Soviet soil! This is where the German military also invented the Blitzkrieg (lightning war)and tried it out during the Spanish Civil War on the city of Guernica.

AND

Please don’t raise the issue of the Balfour Declaration. It was a highly provocate document that was read many ways and was no Zionist plot. It was a British foreign policy statement that was meant to mollify the participants but did no such thing.

The US Federal Reserve Bank was formed in 1913, before WW1.

The only connection between the Fed and WW1, in 2013, is that history’s unfinished business still abounds and the folly of our ancesters will haunt us forever.

Oh and yes, bankers always profit from wars. Someone has to!

#94 Notta Sheeple on 04.09.13 at 12:14 am

“… People elect leaders. To indict only the elected is an abrogation of your own responsibility. — Garth…..”
======================

Ideally, yes. I remember, as a naive, programmed young elementary schoolboy, waving my little 1967 flag on Parliament Hill, believing that freedom and democracy would somehow be the magical saviours of all that ills the world.

What a load of crap. History has proven time and time again that every government, whether Liberal or Conservative, Democrat or Republican, always morphs into the exact same abomination that they so furiously campaigned against.

Jaded? Absolutely. George Carlin summed it up best:

http://m.youtube.com/#/watch?v=rsL6mKxtOlQ&desktop_uri=%2Fwatch%3Fv%3DrsL6mKxtOlQ

#95 Nodebt on 04.09.13 at 12:16 am

90k/yr income and broke? Garth’s right claim bankruptcy and move on with your life! If your broke at 57 you will always be broke, unless you win a lottery or get a big fat inheritance. Got a aquantaince that came by my shop today he’s 41 just got divorced, sold his house for 479k and broke even after paying all debt off. He’s broke and since I have known him around 18 years hes always been broke, so he tells me most guys have been telling him it’s gonna take 10 years to to get back on his feet? My thought he’s screwed, he never saved his money in the first place so you think he’s gonna start now good f…..king luck! And he makes 70-100k /yr , so how the hell is a 57 year old guy gonna do it? This dudes 41 and he’s screwed to! I’m sure glad my dad told me to save all my money that I make for a rainy day!

#96 StudentDormDiarrhea on 04.09.13 at 12:19 am

Not G&M, it’s Global News – not much of a quality difference anyway :-)

#97 debtors_winners on 04.09.13 at 12:24 am

Canada lost a whopping 55,000 jobs in March and the unemployment rate rose to 7.2 per cent, a result that was much worse than economists had expected.

http://ca.finance.yahoo.com/blogs/balance-sheet/canada-loses-55-000-jobs-march-unemployment-rate-125317238.html

it seems it’s too early to turn into an optimist.

#98 Smoking Man's Old Man on 04.09.13 at 12:29 am

If 78% of former NFL players are bankrupt or financial troubled 2 years after retirement, it tells me that people in general are bad at managing money.

#99 West Vanner on 04.09.13 at 12:35 am

Worth a watch:
http://www.youtube.com/watch?v=rPILhiTJv7E

#100 TankingHousingMarketsHurray!! on 04.09.13 at 12:39 am

#47: it is high time for people to learn to live within their means, instead of speculating that they will make money in their sleep from ever-rising home prices that, as any fool can see, have been artificially created by government policies. This mentality amount to robbing from the young as well as from the prudent. Anyone who prudently bought a home without taking on speculative risk and with a long-term outlook has little to fear from deflating home prices. I very much look forward to a major tanking of the canadian housing market, if only to hammer some sense into the soeculating self-entitled masses!

#101 WARNING! on 04.09.13 at 12:51 am

EVERYONE!!!!

Garth is a damn IMPOSTER!!! Read!!!

http://news.nationalpost.com/2013/04/05/tory-backbencher-000034-dear-diary-it-only-took-a-few-seconds-but-i-had-broken-the-party-line/

#102 T.O. Bubble Boy on 04.09.13 at 12:56 am

$469,900 house with $385k in mortgages AND “needs some updating”???

They should talking to Gail Vaz-Oxlade, not Garth.

#103 Small Town Steve on 04.09.13 at 1:04 am

#49
Fact is we have a labor shortage, and a skilled work shortage. These people are being brought in because OTHER CANADIANS are too complacent or are not willing to relocate. Some(many) are unwilling to stop smoking weed so they can actually pass a pre employment drug test. Keep flipping burgers but stop bitching, you have no one to blame but yourselves.

#104 Soylent Green is People on 04.09.13 at 1:04 am

What do you mean elected! Harper stolen three elections now by my count.

……….

Sona, who was director of communications on the unsuccessful campaign of Guelph Conservative candidate Marty Burke, was charged Tuesday under the Elections Act for seeking to “prevent or endeavour to prevent an elector from voting at an election,” for actions alleged to have taken place between April 30 and May 2, 2011.

On April 30, someone established an account with voter-contact firm RackNine under a false name and activated the disposable “burner” cell phone that was used to send a fraudulent robocall to 7,000 opposition supporters on election day, May 2, directing them to the wrong polling station.

Sona has not spoken publicly since the charge was laid, but sent out a tweet Tuesday night suggesting that he is not “prepared to take the fall for this.”

Read more: http://www.ottawacitizen.com/news/Public+robocalls+documents+tell+full+story+case+against+Sona+expert/8191187/story.html#ixzz2PwJMb51N

O
O
O

#105 Kingbubbles on 04.09.13 at 1:21 am

Good post tonight. Have some experience in Winnipeg market and concur that the market is declining here. A friend just sold her place in river heights and it went for less than asking. I am also starting to get spam from my realtor who I have not heard from in a couple years now trying to drum up business. Maybe it is not that different in the Peg after all …..

#106 Who Farted? on 04.09.13 at 1:58 am

I don’t really have a constructive thing to say or whatever, but I have to express my disbelief at one aspect of today’s story.

So on a house that’s listed at 470k, after almost a decade of real estate bubble inflation, these guys have a 350K mortgage (I’m ignoring the second mortgage and the loan).

So how the hell is the mortgage balance 350k on a house worth less than 470k, I don’t understand? Did they buy the house yesterday? Did they not make any payments ever? I mean, if you bought a house say 2 years ago, and made interest only payments, then maybe I can understand, but otherwise what the hell happened?

#107 Onthesidelines on 04.09.13 at 2:07 am

“People elect leaders. To indict only the elected is an abrogation of your own responsibility. — Garth

Too funny. Like it matters which of the preselected assholians is up there reading the teleprompter.

Who is representing whom? Follow the money.

#108 A Yank in BC on 04.09.13 at 2:11 am

R.I.P Maggie. Don’t know where Britain would be today without you.

#109 Jazmine on 04.09.13 at 2:20 am

The idiots who have brought us job outsourcing and no future for an entire generation will soon be outsourced themselves.

People elect leaders. To indict only the elected is an abrogation of your own responsibility. — Garth

Unfortunately…..short of revolution…how do you change our one man dictatorship system?

#110 Notta Sheeple on 04.09.13 at 2:33 am

#65 FTP – First Time Poster on 04.08.13 at 10:42 pm
====================

Excellent post.

#111 NorthOf49 on 04.09.13 at 2:39 am

Garth, why straight to bankruptcy, could they not go Consumer Proposal first? The ex did this, debts of $35K were reduced to $7K (accepted by creditors), and she got to keep the house. Would this not help Dave’s folks clear the loans and other debt?

#112 Humpty Dumpty on 04.09.13 at 2:42 am

The Sting…..

Some might be surprised to learn that the fate of America’s economy has already been determined, verified and announced by the Obama White House. Yet, it has received scant attention from the corporate media. In 2011, economist Kyle Bass interviewed a senior member of the Obama administration about its planned solutions for fixing the US economy and trade deficit[ia].

http://canadafreepress.com/index.php/article/54163

#113 Humpty Dumpty on 04.09.13 at 3:06 am

The Remedy….

Vice President Joe Biden calls for the creation of a “new world order” at the Export Import Bank conference in Washington on April 5, 2013

http://www.youtube.com/watch?v=b1AMYHHAXhI&feature=player_embedded

#114 blase on 04.09.13 at 3:23 am

Just noticed something…

Richard Nixon, Watergate.

Gordon Nixon, iGate.

#115 Jane24 on 04.09.13 at 3:25 am

Number 59

You should read the Times from last Sunday. Big interview with Nelson Mandela about his deep friendship with Margaret Thatcher. What papers do your read?

Along with Sir Winston Churchill ( who won the war) and Clement Attlee ( who founded the National Health Service) she was the third greatest Prime Minster for Great Britain because she defeated the union barons and took control of the country back for the people of Britain.

She is getting a full ceremonial funeral in St Pauls for a reason. Note that Full Ceremonial is what the Princess of Wales received, one step below Full State which the Queen will receive.

#116 Humpty Dumpty on 04.09.13 at 3:32 am

#297 Canadian Watchdog on 04.08.13 at 3:34

Its already underway….

pmhttp://www.shanghaidaily.com/nsp/Business/2013/04/09/YuanAussie%2Bdirect%2Btrading%2Bto%2Bstart/

http://www.imf.org/external/pubs/cat/longres.aspx?sk=40112.0

#117 MDClarinet on 04.09.13 at 3:49 am

Wouldn’t it be a better idea to hunker down and live frugally? Take the bus and shop at the green grocer like so many retired folk I see in Vancouver. Rent out the basement suite to an exchange student. If they went through the whole bankruptcy thing, they would have no line of credit as a safety net, nobody is going to loan them money. You’re the financial planner and I’m just a basement renting musician, so let me know why bankruptcy is better than a little lifestyle change. I’m here to learn.

#118 angel on 04.09.13 at 3:49 am

#29 Dust in the wind on 04.08.13 at 9:31 pm

RRSPS (unlike LIRAs) do not survive bankruptcy. — Garth

——————————————
LIRA survives bankruptcy but would it survive the government long hands?

Absolutely. — Garth

How dare you not trust our governments you unpatriotic canadian they never change their rules after they make them

#119 angel on 04.09.13 at 4:21 am

#65 FTP – First Time Poster on 04.08.13 at 10:42 pm

thanks for the links …. absolutely agree 100%some peoples eyes are open

#120 observer on 04.09.13 at 5:14 am

You can see this coming several years ago. It like the banks giving you more and more credit until you max out. Then your basically done. Its too bad all these guys who bought at such high prices are now going to bring the entire nation down with a stream of bankruptcies

Yes there are more sold signs recently in Vancouver, but the price has also drop meaning the standoff between buyers and sellers is weakening.

Also Notice more and more rental suite. Several guys down stairs where I live move out of their little basement suite to a new condo at basically the same price or cheaper.

I notice some nice house/rental suites are not getting renters. The flood of condos units is now having its effects on the market

#121 pbrasseur on 04.09.13 at 7:27 am

Excellent example of how leverage and expensive housing can wreck people’s life. The only way this can work is if housing becomes even more expensive. And that’s called a Ponzi scheme.

Expensive housing doesn’t leave you enough to save, if you pay cash it’s a money pit, with leverage it leads you straight to poverty, like for these two.

#122 Bigrider on 04.09.13 at 7:33 am

Going through bankruptcy proceedings is easy peasy in this country. It should not be.

Kind of like giving a drunk driver who kills an innocent a slap on the wrist…we have stopped that practice as the charges are now serious.

You should be stuck with your bills. Creditors should not suffer for your stupidity. As consumers, we all suffer for the foolishness of a few bad debitors.

#123 Good Riddance Margaret Thatcher on 04.09.13 at 7:43 am

#115 Jane 24

You are a typical neocon twit.

http://www.theglobeandmail.com/news/world/thatcher-was-wrong-on-apartheid-mandela/article10926500/

Thatcher = idiot, unqualified, racist, economic crypto-fascist

Stop cherrypicking your data like right wing bozos who don’t know how to think for themselves. Good grief.

What next? The moon landing were faked? The Jews were in on 9-11?

The ceremony of one’s funeral determines one’s contribution to the world? Then this is YOUR kind of leader!

http://www.dailymail.co.uk/news/article-2079237/Kim-Jong-Il-funeral-Millions-crying-North-Koreans-line-Pyongyangs-snow-bound-streets.html

Like Thatcher, he was a fascist dumbass too. You’ll feel right at home.

#124 Coho on 04.09.13 at 7:46 am

Carlin rightly describes where the ‘worry about yourself’ mentality gets us. We get picked off one by one analagous to an army of soldiers (more like sheep) marching single file up to a ridge where it takes only one enemy sniper or perhaps two (provided they have sufficient ammo) to shoot them one by one the minute their head comes into view.

We need more George Carlins (otherwise known as tin foilers, conspiracy theorists, doomers, whackos, nutbars, whiners). Oh waiter, we’ll have a roll of tin foil for George and his rowdy friends, and a bucket of fluoride for the pro establishment table in the corner. :)

#125 Steve on 04.09.13 at 7:56 am

Bankruptcy will cause a step change to Dave’s parents’ obligations, but what will cause the needed change to their spending? Like too many, they have been living beyond their means, regardless of any circumstances. If they fail to learn how to manage their money, to live within their means, they will end up back in trouble as quickly as creditors allow it.

A trustee. A plan. Counselling sessions. Supervision. Reporting. Mandatory budgeting. That’s what the process is designed to do. — Garth

#126 Randy on 04.09.13 at 7:56 am

Exercise your Charter Rights……..Declare Bancruptcy…haha

#127 Notta Sheeple on 04.09.13 at 8:03 am

#103 Small Town Steve
“……Fact is we have a labor shortage, and a skilled work shortage. These people are being brought in because OTHER CANADIANS are too complacent or are not willing to relocate……”
====================

Steve? Stephen Harper is that you? Still pumping out the right-wing cool aid? Labour shortage? What a crock of CONservative B.S.

There is NO such thing as a labour shortage, only a shortage of labour at the wages Canadian employer is (un)willing to pay.

Ironic how the current Harpocrite government, ever the phony defenders of free markets and supply/demand principles, are so quick to prostitute themselves to their corporate donors and squash the earning power of middle class Canadians with a tsunami of Temporary Foreign workers.

News Flash: The price of a Canadian home, under the watchful stewardship of the Flatulance/Carneyval tag team, has doubled out of the reach of the average Canadian over the last decade, while wages have remained stagnant. So much for your phony labour shortage.

News Flash 2: TFW’s don’t spend their earnings here in Canada. They send them back to their home country where the average citizen doesn’t require high wages to pay for half-million dollar bungalows.

#128 pbrasseur on 04.09.13 at 8:31 am

I agree with Garth that in this case (and many thousands of others…) bankruptcy, as tough as it is emotionally is the most rational decision economically.

Also the sooner the better, because when you’re trying to build a retirement time is of the essence. The sooner you take action the less chances you have to finish your life in poverty. Obviously it is very late for those two.

I guess the “good news” for those that went too much and too leveraged into housing is they don’t have much in terms of other assets, therefore not much else to lose when they go bankrupt.

Get that CMHC?

I think F does (but it sure took a long time…)

#129 cmccullo on 04.09.13 at 8:32 am

#106 – Who farted the Banks have been very generous over the last years in allowing folks to fold debt into their mortgages. It’s called “consolidating” your debt to make it easier to hang yourself. Works well, unless your property value plunges just before you retire…but that was never going to happen, right?

#130 Steven Rowlandson on 04.09.13 at 8:47 am

Garth by the time every thing is sorted out everything that you admire in the world of politics and finance will be deemed to be a crime against humanity. The only respectable money will be metal and those that have any will be few and envied. Due to Fukushima and a little ice age we may see a higher tech rerun of the period between the 14th and 19th centuries with its attendant famine, plague and wars. Don’t be surprised if the current trouble makers incharge provoke a global thermonuclear war over the enforcement of political correctness and their satanic new world order. Given the attitudes and policies of the governments and elites in the western world that is a certainty.
With that in mind why are people paying so much for so little when it comes to real estate? In an hour or two of nuclear combat it could all be reduced to ashes including the home buyers. People are making a huge bet that there are no serious consequences for the actions taken by the powers that be. Once the brass keys are turned and the missiles fly it is game over!

Kim Jong-un called. He wants to do a dance video with you. — Garth

#131 Herb on 04.09.13 at 8:47 am

#115 Jane 24,

of course the Conservative PM who won three Conservative majorities will get a full ceremonial funeral from a serving Conservative government. Sheesh.

One really should distinguish political reasons from actual ones.

#132 I am in C on 04.09.13 at 8:48 am

What amazed the Godfather the most (about bancrupcy) was the –legality — of these swindles.
From ‘The Godfather ‘ by Mario Puzo
This was the line in the book, when I was reading it some 40 years ago, that really jumped out at me.

#133 Timbo on 04.09.13 at 9:00 am

http://www.nfib.com/research-foundation/surveys/small-business-economic-trends

““After another false start, small business confidence has sputtered and stalled again. For the sector that produces half the private GDP and employs half the private sector workforce -— the fact that they are not growing, not hiring, not borrowing and not expanding like they should be, is evidence enough that uncertainty is slowing the economy.”

meh…certain to go nowhere fast..

http://www.guardian.co.uk/business/2013/apr/09/eurozone-crisis-german-exports-slovenia

“We believe your request would lead to a huge volume of information, which would possibly not help the aim of your committee,” Stavrinakis said. This included foreign companies that transfer large sums of money each day, as well as Cypriots who bought property, he said.”

Power demands their money, in secret!. Now go away…

#134 Small Town Steve on 04.09.13 at 9:27 am

Harper is a 4 letter word +2. I am no conservative and I for one resent working 90-100 hours a week and paying 65-75k in taxes just so a bunch of socialists can vote for the crook that will steal the most from those that work the hardest so they can continue doing nothing. An election is nothing more than an advance auction of stolen goods. Screw the P.Cs and screw the libtards. News flash for you. If you make life harder for companies to make money guess were it goes? Out of the country with the jobs that go with it.

Unable to pay?? If I could find3 people that are willing to do the work that I could train I can guarantee they will make 100-120k / year RIGHT NOW. Sad fact is people are too god damn lazy to actually work for it!!!

Too many people are sheep. To many people think government has the answers. You are responsible for your self.

The price of the average home has skyrocketed due to government intervention. The government needs to get out of “running the economy”. The only thing any interventionist government is good at is running “the economy” into the ground.

News flash too. There is no difference between right wing and left wing both are branches of the same system that leads towards totalitarianism.

You either support a statist political system or you support freedom of man’s right to his own life. The only differences are in degree. I threw out the kool aid jug long ago. It is you that drank it.

#135 Buyer on 04.09.13 at 9:27 am

I am intrested in buying a house. If it is toronto, i can give you my e-mail and you can send me the details.
Ofcouse i need a good deal
I am serious

This isn’t Kijiji. Go away. — Garth

#136 mochimac @ save. spend. splurge. on 04.09.13 at 9:35 am

I always wondered how people my age (late 20s) could afford houses, with barely any money saved (10% down, would be a miracle).

There are a few who are actually smart enough to handle such a situation, but most of them say things like:

“We need a house because we’re expanding the family with a new baby and need to also buy 2 cars.”

It boggles my mind that a baby could need a house, when they aren’t even expecting anything out of the womb except food, love and warmth.

Another good one:

“It’s the only way to build wealth, that’s what my parents told me.”

Parents who are still in debt, of course…

Or:

“I hate renting because I am throwing my money away and I want to build equity and pay rent to myself.”

…and the bank, right? Don’t forget the bank.

The bottom line is that you don’t own a home unless you’ve paid it off free and clear — the bank owns it.

#137 amazona girl on 04.09.13 at 9:55 am

Garth,great post yesteday and today I am one of few
who lesson to you a few years back.
Bad times a head but atleast I have a charismatic
confident guy with great abs,nice hair and a balanced
portofolio.

#138 rosie "moving backwards" on 04.09.13 at 9:55 am

Interesting numbers for South Carolina, a Right to Work State, (read non-union). South Carolina is the home of BMW in the U.S. http://www.deptofnumbers.com/income/south-carolina/
I see Saskatchewan is the test case for similar proposals. http://www.huffingtonpost.ca/2013/04/09/bill-85-saskatchewan-employment-act_n_3039850.html?utm_hp_ref=canada-business.
The debate is complicated so you be the judge. http://abcnews.go.com/Politics/OTUS/work-law/story?id=17945956#.UWQdcXBnQUU

#139 Herb on 04.09.13 at 9:56 am

#35 Ralph Cramdown,

To the extent that your average bankrupt or discharged bankrupt is going to be spending more of his money on ‘stuff’ and less of it on ‘interest and principal payments from stuff he bought before,’ and since spending on stuff has a greater multiplier than interest and dividends paid to the investor class, I’d say the economy gets better off.

This may be economic theory, but I smell a logical flaw. If bankruptcy is due to credit overextended to buy “stuff” because earned income and the means at hand were not enough, and you remove the credit and reduce the bankrupt to earned income, how are they going to buy more “stuff” to spur on the economy?

#140 Need Sleep on 04.09.13 at 9:56 am

http://www.winnipegfreepress.com/business/resale-home-sales-in-rut-202065471.html

#141 brunette on 04.09.13 at 10:28 am

todays picture: a homeless person (cup for coins) was given a water bottle by a person working out – they are getting some sleep. It’s not raining on them so it’s a goodlife for them. One’s person’s version of a goodlife is another person’s nightmare I guess.

#142 Ralph Cramdown Ⓤ on 04.09.13 at 10:30 am

#138 Herb — If bankruptcy is due to credit overextended to buy “stuff” because earned income and the means at hand were not enough, and you remove the credit and reduce the bankrupt to earned income, how are they going to buy more “stuff” to spur on the economy?

Most people, I suspect, don’t have much credit left to remov at time of filing. They file because they’ve run out of credit or the ability to service it. Don’t compare his post-BK spending to his spending while he was digging himself a hole; compare it to his spending when he was already in the hole, credit had dried up and income was insufficient to service debt.

Deadbeats won’t lead an economic surge, obviously. But if they’re reduced to couch surfing and rice&beans, we’re all hooped.

#143 Tkid on 04.09.13 at 10:38 am

#130 Herb, she’s getting the Big Funeral not for the three terms. She’s getting it because she took the Unions on and won. Every politician in Britain is terrified of the Unions getting back the power they once had, which is why Britain imports LNG instead of reopening coal mines.

Defeating the Communists and accurately predicting the current chaos in Europe is just the icing.

#144 Pounding sand in Peachland on 04.09.13 at 11:02 am

96 is the fix

#145 I am in C on 04.09.13 at 11:05 am

Today’s offering from the Toronto Star’s resident real estate pumper Susan Pigg:

http://www.thestar.com/business/real_estate/2013/04/08/toronto_office_developers_launch_projects_early_in_face_of_high_demand.html

#146 Tony on 04.09.13 at 11:12 am

Most Canadian truckers make nothing. Americans do all the trucking for Canada. Any Canadian that tells you they make 90 grand a year trucking is full of it. No wonder the guy has to declare bankruptcy he doesn’t even know what he earns a year.

#147 Dupcheck on 04.09.13 at 11:14 am

80% of the population owns 7% of the wealth pie.
The other 20 % owns 93% of it.

The majority hope that by voting things will get better, do they? This just proves that the elected politicians are puppets, they can not do anything to help the 80% who elected them. What is going on?

#148 HAWK on 04.09.13 at 11:24 am

#91 Dr. Hoof-Hearted on 04.09.13 at 12:06 am

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

Perhaps these doctors might want to reconsider that just like every other profession, not every single Doctor should be making 6 figures +, only the better ones.

#149 HAWK on 04.09.13 at 11:28 am

#94 Notta Sheeple on 04.09.13 at 12:14 am

<<<>>>>

Agreed, that’s why I believe that in an imperfect world, the early Americans had the optimal worldview, which is absolutely minimal role of government and maximum freedom for the market place.

Unfortunately I don’t think it would ever revert to that model, in this lifetime.

#150 calgary_rip_off on 04.09.13 at 11:34 am

#39 DaleFromCalgary

It’s very interesting that people that specifically have purchased mortgages and are close to paying them off are easy to give advice. Mortgage owners need to look closer at what renters are paying in Calgary. Any moron who will be employed steadily in Calgary for more than five years should consider getting their own place. A person is taking a gamble on what may happen in the future, which may never come as predicted. In the meanwhile you are paying a mortgage for rent. Is the life you want, paying off someone else’s mortgage? You cannot justify this. As it stands right now, $30,000 wouldve been in my old schmuck landlord’s pocket right now if I had waited and taken the gamble that prices will crash outright, 1982 style. It’s ironic that people are grasping at security. There isnt any security in life, you could be dead tomorrow. Plan for life by looking at facts, at what is, not what may be, because this is reactive thinking. So if all of Calgary implodes financially I wont have a job anyway, so what will it matter if I cannot afford the house? I can leave.

#135 yes the bank owns it. Do you prefer that you are serf to your landlord and he owns it in the end? This makes sense only if you arent going to live there very long and need flexibility.

#151 Not 1st on 04.09.13 at 11:36 am

If there is one thing the US housing crisis taught us is responsible behaviour is overrated. Our govts don’t do it, our corps don’t do it, nobody does. So what a big surprise to people in 2007 that people don’t either. Why should I be a responsible owner who makes every effort to pay my way when nobody else does.

Thus the good ol USA became the nation of who cares. Who cares if I can’t pay my mortgage. The bank will foreclose and I can get a new one down the street. Who cares if I shop away 200% of my income. I guess I can’t take it with me but my debts won’t follow me either.

Now this brand of carelessness is coming to Canada.

#152 wilbur on 04.09.13 at 11:40 am

This article tells us why it is happening the way it is…

http://www.economist.com/news/americas/21574481-disappointing-exports-stalled-investment-and-fiscal-austerity-leave-overstretched-consumer

#153 Paul on 04.09.13 at 11:51 am

http://watch.bnn.ca/#clip901740

#154 Mrs. Riveriew in Winnipeg on 04.09.13 at 11:54 am

Garth, I understand and instinctively agree with all you have written but odd things happen in my neighborhood that suggest it is different here.

Looked at a house last fall, listed and sold for $375,000, only one offer. Hubby and I passed up on it because we thought it best to not increase our exposure to real estate.

New IKEA countertops, a slab of quartz in the kitchen and new paint throughout and the place listed and sold last week for $419,900.

This is why I am starting to think I am the Greatest Fool – prudence is not paying off, at least in the short term. I’ll stay prudent, because I still believe what you’ve written, but I am starting to doubt…

#155 bill on 04.09.13 at 12:02 pm

#114 blase on 04.09.13 at 3:23 am
Please have a look at this fine book:

http://www.amazon.co.uk/Steel-Bonnets-Anglo-Scottish-Border-Reivers/dp/0002727463

the author has put a ‘key to the border feuds” in this book that is quite illuminating.
there were many feuds but all the families of the northern marches had their knives out for the Nixons…..

#156 Bottoms_Up on 04.09.13 at 12:14 pm

#21 Sockeyemoon on 04.08.13 at 9:17 pm
——————————————–
Shorting the market is probably a mistake. Remember that the sea is very big, and there are a lot of big fish in it, so while the minnows flounder the storm can rage on.

#157 Bottoms_Up on 04.09.13 at 12:22 pm

#106 Who Farted? on 04.09.13 at 1:58 am
——————————————–
The couple in question obviously refinanced several times. They lived beyond their means, but they were able to because of the soaring value of their house. Houses are no longer ATM machines. They are something to be continually paid down and fully owned as an asset by retirement.

#158 Godth on 04.09.13 at 12:23 pm

149 calgary_rip_off

“Do you prefer that you are serf to your landlord and he owns it in the end?”

In the end we all find out what we truly own.
http://www.youtube.com/watch?v=g6bUUmelbyw

#159 lawboy on 04.09.13 at 12:25 pm

#135

Indeed. I point out to home “owner” a**holes who ask me ‘do you own?’ ; ‘oh, you rent?’ that they won’t be ‘owners’ until the mortgage is paid in about 20 years – they are just mortgagors until then.

#160 Bottoms_Up on 04.09.13 at 12:25 pm

#79 The fool on 04.08.13 at 11:40 pm
—————————————
Garth would say take the 10 yr fixed. I would say take a 2 yr fixed, and then a 10 yr, as I don’t see rates changing much in the next 2 years given what the US has said and is doing.

#161 Bottoms_Up on 04.09.13 at 12:28 pm

#68 brunette on 04.08.13 at 10:59 pm
—————————————–
No way to sort — but you can quickly scroll through the comments looking at those posts that Garth responds to.

#162 StocksRHot2013 on 04.09.13 at 12:29 pm

#134 @#&$! That was hilarious!

#163 winterpeg on 04.09.13 at 12:38 pm

Re: #19 “Hoping for a slow in the Peg” I wish I could agree with the comment about Winnipeg housing settling down but I have not seen it in the South part of the City.”

I tend to agree with you, although the news today did talk about a slow down. In my hood, ( a decent area) homes are selling quickly, so I assume sellers are getting what they want. Still overpriced, though.
Maybe the “slow thaw” applies to 1) the weather: still over a foot and a half of snow, 2) the market, and 3) people catching onto the concept of what’s happening in the market.

#164 Dontcallmeshirley on 04.09.13 at 12:41 pm

“Bankruptcy is extreme, stigmatizing and humbling…”

General Motors did just fine.

#165 Stew on 04.09.13 at 12:44 pm

You think our Canadian Banks are in Good SHAPE? Take a look at the Derivative holdings of each bank..ITS IN THE TRILLIONS:
OTC Derivative Contracts – Canadian Banks
Office of the Superintendent of Financial Institutions Canada
http://www.osfi-bsif.gc.ca/osfi/index_e.aspx?ArticleID=554

1. Select ‘Domestic Banks’
2. Pick from drop down menu (institution)
3. Select ‘Quarterly’
4. Pick from drop down menu (BCAR Derivative Components)
5. Pick from drop down menu (‘Quarter/Year’)
6. Click ‘Submit’

#166 all_we_need_is_mortgage on 04.09.13 at 12:56 pm

Construction activity multiplier in relation to overall GDP is between 1.34 and 1.62, according to National Association of Realtors (USA). Does that mean that each dollar decrease in housing activity will decrease the overall GDP by up to $1.62? Can Canada afford this now, when economic growth so negligible ?

#167 FullOfFear on 04.09.13 at 12:58 pm

“No equity in the home. Unrepayable debts. No way they’ll save enough to retire on. Some people just need a do-over. — Garth”

Advocating bankruptcy?! This blog needs a do-over.

#168 jess on 04.09.13 at 12:58 pm

good ridence you may like to read more
…1997 the Conservatives were voted out of office by one of the largest margins in their history.
http://michael-hudson.com/2013/04/failed-privatizations-the-thatcher-legacy/

#169 maxx on 04.09.13 at 12:59 pm

#65 FTP – First Time Poster on 04.08.13 at 10:42 pm

Great post. Agree completely…the views expressed yesterday and generally are not fringe, nor nut-bar; they are the views of a badly damaged middle class.

#170 CaptainObvious on 04.09.13 at 12:59 pm

@#149

Possibly this fact escapes you, but if you buy a house, and the economy tanks in Calgary and you are thrown out of work, you may have trouble leaving if you cannot sell your house at a price that covers your debt to the lender. If you rent, you can leave after your lease expires, or with 60 days notice if you’re month to month. Sometimes a landlord will let you break a lease.
If you want to look at facts, look at a historically anomalous increase in house prices since mid 2000s against a backdrop of plunging interest rates. The conclusions should be fairly obvious about where things go from here. Why anyone would lever up in this environment is beyond my comprehension.

#171 Holy Crap Wheres The Tylenol on 04.09.13 at 1:00 pm

I have lived in the US and can tell you when times get tough bankruptcy is the first words coming out of everyone’s mouth. Lived in the sunbelt and have personally been witness to foreclosure signs going up on our street. It didn’t bother me too much except that it does devastate the neighborhoods real-estate value. I was lucky as my corporation paid for my rental home for those two years I was positioned in the sunny south. I did keep my property in Canada and this was some years ago so I can not comment too much on today’s environment in the sunbelt. From what I hear the rumblings in the old hood that 2008-2010 was like carpet bombing to them. Bankruptcy is reasonable easy to get into but a hell of a price to pay for many years of a crappy credit rating (stigma) and depression. Banks are the only ones who usually walk away making money come hell or high water!

#172 K Morrison on 04.09.13 at 1:03 pm

Count our blessings. This from the WSJ:
“Nearly 12% of Irish mortgage customers were at least 90 days behind on their payments at the end of last year, according to the Central Bank of Ireland.”
Hard to believe that the Canadian market will ever reach these depths.

#173 Holy Crap Wheres The Tylenol on 04.09.13 at 1:04 pm

#153 Holy Crap Wheres The Tylenol on 04.09.13 at 1:00 pm

Forgot to mention my American neighbors were deserving of the home loans that they did have. The made great incomes but most of them did live just on the edge of their means. It was a tragedy to see them going belly up one by one. Good people, they really didn’t deserve to loose their homes.

#174 Mike in Surrey on 04.09.13 at 1:20 pm

#95 Nodebt
#106 Who farted?
So on a house that’s listed at 470k, after almost a decade of real estate bubble inflation, these guys have a 350K mortgage…
They have been treating home like their own ATM. A young family brought a house in Surrey BC, 400K 10 years ago with 10% down. A 360K Mortgage turn into 460K Debt (Current Mortgage and LOC). House currently assessed at 600K, and their income is like 150K. They had nanny for their two kids at $20K per year. So Dave’s folks must been living large till they’re broke.

#175 att0m on 04.09.13 at 1:33 pm

Garth, you should change your blog background from white to black.

#176 jess on 04.09.13 at 1:58 pm

better late than never doesn’t work when disqust sets in. On January 30, technology company Misys named Crosby as its new chairman. What an irony!

http://www.guardian.co.uk/business/2012/feb/08/misys-chief-mike-lawrie-payout

http://www.guardian.co.uk/commentisfree/2013/apr/07/brtish-bankers-unpunished-unashamed?INTCMP=ILCNETTXT3487

James Crosby to give up knighthood and 30% of pensionRequest by discredited former HBOS chief comes after MPs’ report slammed his management of bank

#177 Mike T. on 04.09.13 at 1:58 pm

#79 the fool

5 yr vs 10 yr

NOT ENOUGH INFO

where do you live? married? children? age? income? life goals? job security? other assets? price of home? staying put for 10 yrs?

no one here can answer your question

#178 jess on 04.09.13 at 2:05 pm

big fail

…”HIH suddenly went into liquidation on March 15, 2001. In what has become Australia’s largest corporate failure, HIH left in its wake more than $A5 billion of losses, two million worthless insurance policies and about 1,000 former employees. The total damage bill is still not determined. Justice Owen refers to a $5.3 billion debt, but estimates range from $2 to $10 billion.


According to a report by Canadian regulator John Palmer, filed with the commission, APRA ignored many warnings that HIH was in trouble. In 1999, actuaries within the HIH group advised APRA that HIH was insolvent. In June 2000, the Treasury Department told APRA there were problems at HIH. The following month, a senior HIH insider informed APRA of serious financial concerns. Around September 2000, APRA assessed HIH to be “high-risk” but apparently took no further action. Two state-based insurance authorities told APRA they intended to appoint inspectors to HIH, but APRA asked them not to.

By Ruby Rankin
10 January 2003
http://www.wsws.org/en/articles/2003/01/hih-j10.html

#179 Toronto_CA on 04.09.13 at 2:11 pm

Oh look, the public sector unions in Ontario are threatening to strike again so that no one can see the new pandas.

http://www.thestar.com/news/gta/2013/04/09/zoo_lockout_could_threaten_panda_opening_union_says.html

I’m starting to think that we should just implement a nice fat 5% Ontario provincial surtax on employment income for anyone in a public sector union. This should level out the playing field from tax payers who are fed up with this kind of total bullshit they pull while getting very good Defined Benefit plans, massive job security, and if the latest survey results are correct, higher pay for the similar work. All from a bankrupt employer (Ontario). Sickening.

Sorry – This is more towards your post yesterday Garth, about why people are more and more anti-public sector unions.

#180 robert james on 04.09.13 at 2:20 pm

One for the realtor haters.. http://www.cbc.ca/news/canada/british-columbia/story/2013/04/08/bc-realtor-inspection.html

#181 rosie "moving backwards" on 04.09.13 at 2:31 pm

Looks like your spot on Garth. http://www.macrobusiness.com.au/wp-content/uploads/2011/12/Slow-Melt.png

According to the money lenders. http://www.ctvnews.ca/canada/canadian-housing-market-will-have-a-soft-landing-scotiabank-ceo-1.1230127

#182 blinded on 04.09.13 at 2:36 pm

In summary the latest big investment craze has been real estate, and from this point forward the housing market is going to fall 10%, 20% maybe 30% over the next many months to years. Furthermore, roughly 50% of folks are living paycheck to paycheck and a shocking number have leveraged so much debt that they will be going bankrupt. Folks are also dipping into retirement nest eggs to live on in unprecedented numbers. The single largest pension fund, Ontario Teachers, is struggling.

So, where will the cash come from that is going to keep the stock market running higher?

#183 TEMPLE on 04.09.13 at 2:40 pm

#149 calgary_rip_off on 04.09.13 at 11:34 am

Wow, a lot wrong here!

owners need to look closer at what renters are paying in Calgary. Any moron who will be employed steadily in Calgary for more than five years should consider getting their own place…Is the life you want, paying off someone else’s mortgage?

Try not to be so dumb. You know that the monthly payment is not the total cost of owning a house, and it is disingenuous to simplistically compare the monthly cost of a mortgage to the monthly cost of renting. Especially when interest rates are so (temporarily) low.

Price to rent ratios for houses are outrageously high. That doesn’t mean that rent will go up. The beauty of renting is that rental rates are determined purely by supply and demand economics, and are largely immune to the dumb, over-leveraged money and emotion that puffed up the cost of houses. Nobody borrows to pay rent, they just find cheaper places to live.

it stands right now, $30,000 wouldve been in my old schmuck landlord’s pocket right now if I had waited and taken the gamble that prices will crash outright, 1982 style.

Right, and do you really think the last few years and current fundamentals suggest that it is a good time to leverage-up and buy a long overinflated asset instead of renting? Past performance does not…ah, nevermind. You should buy a few more houses and rent them out. Can’t lose. Renting is like giving money to a schmuck landlord, after all.

Do you prefer that you are serf to your landlord and he owns it in the end? This makes sense only if you arent going to live there very long and need flexibility.

It also makes sense when housing prices are likely to decline. And also when housing prices are so high that they lock up a lot of equity that could otherwise be more productive. For example, the dividend income alone on the equity that it currently takes to buy a house can easily pay for that same house’s rent.

Additionally, in my area, the rent I paid for a house was far less than the equity that the landlord lost on that same house’s value. According to my local real estate board, houses in my area declined in value by around 5-7% last year. Add inflation into the mix and you see how far ahead I am by renting.

My landlord is subsidizing me, not the other way around. Also, he fixes my toilet when it breaks.

TEMPLE

#184 blinded on 04.09.13 at 2:44 pm

“In a world tipping closer to deflation than inflation”

Ummm, Canada is not the world but a pimple in the integrated global economy. You have to contend that fact that Bernanke has the largest printing press in the world and has promised to fight deflation and unemployment with as much printing and low interest rates as it takes, and, recently the Central Bank of Japan who plans to double their debt in 20 months to devalue their currency.

#185 Tom Vu on 04.09.13 at 2:46 pm

I know how most politicians should be buried..something about old joke re bicycle racks.

#186 TEMPLE on 04.09.13 at 2:59 pm

#178 Toronto_CA on 04.09.13 at 2:11 pm

I’m starting to think that we should just implement a nice fat 5% Ontario provincial surtax on employment income for anyone in a public sector union. This should level out the playing field from tax payers who are fed up with this kind of total bullshit they pull while getting very good Defined Benefit plans, massive job security, and if the latest survey results are correct, higher pay for the similar work.

Oh boy, here we go again with the neocon bullcrap. Your survey is not correct. Pay rates in the civil service are quite variable compared to private sector wages for the same jobs. Most pay lower, especially in highly technical fields like mine. My civil service job, for example, pays me about 25-30% less than what I would make in the private sector. But I do it because I care about people- even people like you who have no idea what the civil service does for them.

Do I really need to comment on job security? Have you noticed the recent cuts to the civil service?

Also, as has been stated here many times, civil servants pay generously into their pension plans. This is true of young workers (like me) who stand very little chance of collecting much in the way of benefits paid in.

Finally, if you think working for the civil service is such a good deal, go work for the government instead of whinging about what civil servants make.

TEMPLE

#187 Mister Obvious on 04.09.13 at 3:06 pm

#138 Herb
#35 Ralph Cramdown

Bankruptcy a boon for the economy?

I have an acquaintance who feels the ‘leaky condo’ disaster in Vancouver will be ‘net beneficial’ in the long run.

The abundance of poorly constructed rotting junk kept a lot of people employed over the last 20 years.

Act II is now well under way.

“Always look on the bright side of life” – Monty Python

#188 jess on 04.09.13 at 3:08 pm

italy woe is me
http://www.irishtimes.com/business/sectors/manufacturing/steel-plant-pollution-and-bribery-scandal-engulfs-italians-1.953240
socialize the losses – €3 billion clean-up.\“Oh come on, two more tumours per year . . . That’s nothing.”

The comment, recorded on June 9th, 2010, comes from a wiretap ordered by Taranto-based investigating magistrates.
http://www.irishtimes.com/business/sectors/manufacturing/steel-plant-pollution-and-bribery-scandal-engulfs-italians-1.953240
Fabio Riva, believed to be in England, is officially listed as a fugitive from justice for whom an international arrest warrant has been issued. That warrant accuses him of “criminal association” that has generated an “environmental disaster” by the “emission of poisonous substances”.

acrobatic corporate transactions!
http://www.ilmessaggero.it/roma/frode_fiscale_alberghi_roma/notizie/264077.shtml

renewable energy tycoon nicknamed the “Lord of the Wind” has had £1.1 billion of allegedly Mafia-related assets confiscated by Italian authorities in the biggest seizure of its kind.

#189 rembrandt on 04.09.13 at 3:14 pm

“In the business world, the rear-view mirror is always clearer than the windshield.” –Warren Buffett

BUY COMMODITY SHARES LOW, SELL HIGH-YIELDING ASSETS HIGH (April 8, 2013): There exists an all-time record disparity between the shares of high-yielding assets and those of commodity producers. While everyone wants to buy the former and unload or even sell short the latter, it is essential to do the exact opposite.

Steven Jon Kaplan – http://www.truecontrarian.com

#190 Tyrone Asauras on 04.09.13 at 3:39 pm

#103Small Town Steve on 04.09.13 at 1:04 am
………………Some(many) are unwilling to stop smoking weed so they can actually pass a pre employment drug test.

……………………………………….

They actually do drug tests in parts of Canada?

The day my company orders me to take one is the day I leave a stool sample on da Prez’ desk and start looking elsewhere.

I have nothing to hide, but if my work gets done on time, they also have no real need to know.

#191 Piccaso on 04.09.13 at 3:47 pm

Young people today aren’t home owners… there mortgage owners and they pray the cost of owning that mortgage doesn’t change even a little.

#192 Dr. Hoof - Hearted on 04.09.13 at 4:30 pm

Re: Bankruptcies, MD’s etc.

Check out this link:

http://grizzom.blogspot.ca/2013/04/whats-ailing-america-with-dr-rebecca.html

Interviewer is Dr .Rebecca Carley….the guest is Dr Jennifer Daniels.

Both were practicing MD’s that upset the old boys club (Medical Boards) were attacked and no longer practice traditional medicine.

Both have their own internet radio shows, but what they say is something everyone should at least listen to. Todays topic is” Medical Assassins

MD’s going broke?

May be a sign people are waking up, that the health care system is not only out of control, it is falling apart. They go into how you are worth more dead than alive after being admitted to a hospital, and much of this is based on what insurance covers , and that studies show that those without health care insurance have a lower death rate.

The key is the same thing that allows Monsanto etc and Bankers….legal protection. As long as you follow the prescribed ” standard of care “…the MD is not liable….even if the protocol is seriously flawed…as long as the profession signs off on it…does not means its safe for patient…only that the MD’s butt is covered.

You can find their archived shows on line….Dr Daniels layed out a premise that we humans are being farmed.

Highly recommended (approx 90 minutes)

#193 observer on 04.09.13 at 4:32 pm

1 StudentDormDiarrhea on 04.08.13 at 11:41 pm

It’s an anomaly, it’s due to cold weather says the G&M:

http://globalnews.ca/news/464453/cold-weather-chills-winnipeg-housing-market
=======================

This article is a hoot. Winter Pig is always cold. Its also build on a flood plane. To pay big bucks to buy something there is mental.

There is no excuse for its market. Its just not a desirable place to live. Compare it to Hawaii, Paris, Florida etc

#194 Canadian Watchdog on 04.09.13 at 4:34 pm

CIBC, TD, Scotiabank and BMO replaced Canadians with temporary foreign workers, claim hundreds of emails. Link

Why is anyone surprised at this story? IT outsourcing is endemic. — Garth

#195 all_we_need_is_mortgage on 04.09.13 at 4:37 pm

#184 …Bernanke has the largest printing press in the world and has promised to fight deflation and unemployment with as much printing and low interest rates as it takes…
————————————————————–
It looks like financial elite is after people’s money – it doesn’t matter how will they act, through Cyprus style banks bailout or printing press – it’s still a confiscation anyway

#196 Herb on 04.09.13 at 4:38 pm

#137 Rosie “moving backwards”,

proving conclusively that unions are the condoms on the tool of corporate progress and must be eliminated.

#197 Godth on 04.09.13 at 4:44 pm

#190 Tyrone Asauras
He’s probably talking about the tar sands (given his 90-110 hr. work week). All employees are drug tested to work up there which is why cocaine is the drug of choice as it clears the system in 24hrs.

#191 Piccaso
My landlords (debtlords) aren’t young, speculated in housing to the max, bankrupt but haven’t realized it yet.

#198 Canadian Watchdog on 04.09.13 at 4:54 pm

Why is anyone surprised at this story? IT outsourcing is endemic. — Garth

Banks are not a private entities when they are backed by taxpayers. Get that?

Tell that to shareholders. — Garth

#199 Dr. Hoof - Hearted on 04.09.13 at 4:55 pm

#138 Herb — If bankruptcy is due to credit overextended to buy “stuff” because earned income and the means at hand were not enough, and you remove the credit and reduce the bankrupt to earned income, how are they going to buy more “stuff” to spur on the economy?

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

That’s just it. I think its over, and probably just as well.

I reflect back to say late 1960’s early 1970’s. Most people bought a home in an unfinished state and over time would complete it as they could afford it.

When dual incomes became the norm, one saw more homes built completely finished .

Then of course, it got out of control with stupidity, waaay over the top. It was only sustainable via the great fool theory…some other sucker would buy it. How many people can afford a $50 ,000 kitchen, $30,000 bathroom whats the payback ?

I was at a local appliance store to buy a part for our 16 year old stove…I could not believe the selection….fairly high end stuff .

The future will be much more spartan, and I see a black hole effect that will suck many businesses catering to this in before some equilibrium is achieved.

Hibachi may again be the “new mega BBQ”

#200 dv8 on 04.09.13 at 5:10 pm

“If you have a share of XYZ that is valued at $100, and the value of the dollar decreases by 50%, then the share of XYZ is now valued at $200, eventhough the underlying value of the XYZ company did not change.”

One thing has changed. You are now liable for $100 in taxable “profit”.

Congradulations on your win!!

#201 all_we_need_is_mortgage on 04.09.13 at 5:35 pm

Chairman of the Davos World Economic Forum, Professor Klaus Schwab: “Capitalism, in its current form, no longer fits the world around us”
– that affirmation doesn’t sound like a vain talk, or does it?
http://www.cbc.ca/news/politics/story/2012/01/25/pol-vp-milewski-davos-harper.html

#202 Gurmej on 04.09.13 at 5:37 pm

The most depressing thing I’ve read on this blog ever. But the truth hurts. As it should. I wonder who will be left to buy “single family” monster homes in Surrey? If housing deflation and borrowing costs remain unchecked. And we have debt standard living with low rates. How can anyone imagine our grandchildren being able to live in monster homes with 15-20 extended family members? The hard costs to carry such homes will remain the same in another 50 years? I think not.
Productive elements of society will get hosed and fleeced, we will be forced to pay more taxes. People are not having large families anymore. There is certain doom for home values here in Canada. And no it ought not to cost 10:1 income for shelter anywhere in Vancouver.

#203 Godth on 04.09.13 at 5:39 pm

Tell that to shareholders. — Garth

What, that the bank has been nationalized and the shareholders can pound sand?

That’s rich, coming from the anti-government forces. — Garth

#204 Devore on 04.09.13 at 5:43 pm

#125 Steve

As someone above mentioned, these people need to talk to Gail Vaz Oxlade, not Garth. At their age, with their income situation, there is a serious money management problem. They have to learn the basics, like making a budget, and saving money, not what ETFs are.

Yes, jars. That’s what they need! — Garth

#205 Timbo on 04.09.13 at 6:01 pm

http://www.avaaz.org/en/monsanto_vs_mother_earth_loc/?bVSKrbb&v=23909

“It’s unbelievable, but Monsanto and Co. are at it again. These profit-hungry biotech companies have found a way to exclusively ‘own’ something that freely belongs to us all — our food! They’re trying to patent away our everyday vegetables and fruits like cucumber, broccoli and melons, forcing growers to pay them and risk being sued if they don’t.”

Growing your own veggies ..patent pending….lol

http://timiacono.com/index.php/2013/04/09/debt-in-canada/

Short video on Canadian debt speaks for itself.

#206 HAWK on 04.09.13 at 6:02 pm

#65 FTP – First Time Poster on 04.08.13 at 10:42 pm

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

FANTASTIC POST………..but there is one thing missing, that’d add in….it i also our collective fault.

We (i.e. society) don’t FIGHT for positive change anymore, we just accept it, like sheeple. Of this we are collectively guilty. People just accept all the chicanery of government, elites etc and then complain, but they don’t fight, passively by voting, or actively by sheer force as did the early Americans when they threw out the corrupt British government.

It won’t change………. till the people change.

#207 jess on 04.09.13 at 6:05 pm

KPMG – Were They Threats or Desperate Pleas?
By Francine • Jun 20th, 2007 • Category: Pure Conten
remember those fraudulent 2005 tax shelters
http://retheauditors.com/2007/06/20/kpmg-were-they-threats-or-desperate-pleas/

Why is Flynn, the director ,most vulnerable to pressure from regulators and prosecutors? http://retheauditors.com/2013/04/03/jpmorgan-chase-and-dimon-starting-to-sweat-about-everything/

#208 jess on 04.09.13 at 6:12 pm

re the broke doctors…

Sam Parnia MD has a highly sought after medical speciality: resurrection. His patients can be dead for several hours before they are restored to their former selves, with decades of life ahead of them.

http://www.guardian.co.uk/society/2013/apr/06/sam-parnia-resurrection-lazarus-effect

#209 Skip Breakfast on 04.09.13 at 6:21 pm

Yes, I’m one of your maudlin readers who added a “negative” comment on your last post.

But lest you try to guilt or brow-beat me into changing my tune, let me just add that I’m not as “unhappy” as you suggest. In fact, I’m a happy person with a good life.

I just think the economy is going down the crapper and will take a lot of people with it, even those in preferred bank stocks. Even in the best of times, nothing is guaranteed safe. In less than good times, things are less than safe.

Indeed, being well positioned for safety has made me happier and more content than ever. I sleep very well these days. I got out of real estate. My bank accounts and private safety deposit box at the vault are comfortably full.

And I don’t live in Winnipeg. I’m looking at a palm tree as I write this.

#210 Godth on 04.09.13 at 6:24 pm

That’s rich, coming from the anti-government forces. — Garth
Sticks and stones…

I only represent me, myself and I, does that count as plural?
Did you enjoy all the dismissive names you were called for the years you spoke out about housing that you’ve decided to pay it all forward? Unfortunate.

What name did I use? I just find it amusing when anarchists want government to assume control of the banks. That should work out well. — Garth

#211 Danno on 04.09.13 at 6:38 pm

Just heard an ad on Toronto all news station for Butler Mortgage broker offering rates as low as 2.74 % supposedly from a regular bank. That’s one way around the elfin deity’s “Don’t race for the bottom.” Didn’t this happen in the U.S. not too long ago?

#212 brainsail on 04.09.13 at 6:40 pm

#197 Godth on 04.09.13 at 4:44 pm

“All employees are drug tested to work up there which is why cocaine is the drug of choice as it clears the system in 24hrs. ”

Saliva test only. Urine test is at least one week.

#213 Toronto_CA on 04.09.13 at 6:49 pm

#186 TEMPLE on 04.09.13 at 2:59 pm

I couldn’t live with myself if I was a leech on society, as these unions are. I’m far from a conservative or a neo-con I just believe in fairness and being fiscally prudent. Which the provincial government in Ontario (never mind the current Feds) have proven is beyond their grasp.

I’m glad you think the surveys and studies that have been carried lately out are wrong. I think they are right. You’re free to your opinion. But you’re in the minority on that, and people are getting more and more angry at public sector unions.

I hope we can all go see the pandas.

#214 Joe on 04.09.13 at 6:57 pm

CTV at 5. Real estate agents and developers giving us the inside scoop on the next boom.

#215 jess on 04.09.13 at 7:12 pm

outsourced temporary doctors

The sum could have paid the full-time wages of 32,000 first year junior doctors or up to 10,000 consultants over the same period.

The temporary staff are provided by agencies, which take a large percentage of the payments.

Read more: http://www.dailymail.co.uk/news/article-2305272/Trainee-doctors-paid-2-000-A-DAY-NHS-control-agency-payments-scandal.html#ixzz2Q0ikQJWv
Follow us: @MailOnline on Twitter | DailyMail on Facebook

#216 prairie person on 04.09.13 at 7:20 pm

Sorry guys but all the doom and gloom does not appear warranted. In a small Manitoba town a house just sold for 900,000. Regular size lot. It’s beach front on a lake. Prices in Manitoba are obviously not going anywhere.

Yes, one sale. That proves it. We’re done here. — Garth

#217 jess on 04.09.13 at 7:37 pm

going back 1990

Apr 4 2013
The CFPB takes action against mortgage insurers to end kickbacks to lenders

CONSUMER FINANCIAL PROTECTION BUREAU TAKES ACTION AGAINST MORTGAGE INSURERS TO END KICKBACKS TO LENDERS

The four companies named in today’s actions are Genworth Mortgage Insurance Corporation, United Guaranty Corporation, Radian Guaranty Inc., and Mortgage Guaranty Insurance Corporation. In exchange for kickbacks, these mortgage insurers received lucrative business referrals from lenders. These types of kickbacks were a common practice in the years leading up to the financial crisis. These four companies were key players during that time.

http://www.consumerfinance.gov/pressreleases/the-cfpb-takes-action-against-mortgage-insurers-to-end-kickbacks-to-lenders/

#218 Bottoms_Up on 04.09.13 at 7:38 pm

#213 Toronto_CA on 04.09.13 at 6:49 pm
———————————————
Painting a group of people with the same brush is a huge generalization and prejudiced. The fact of the matter is it takes two working wages these days to support a family, regardless if the workers are in the public or private sector.

I have seen horrible, horrible work come out of the private sector (contract work paid for by the government). This doesn’t mean the private sector is a leech on society does it?

#219 TurnerNation on 04.09.13 at 7:40 pm

Desperation at the banks?

TD sent me a letter for my unsecured (prime + xx) LOC, offering to fix the rate at 3.49% for one year.

#220 Godth on 04.09.13 at 7:45 pm

212 brainsail

No, it’s a urine test, you won’t make it into camp without one. The results take a couple hours. Some camps (more like small towns) have their own testing facilities on sight. If you have an accident you go for a pee. Suncor also employs sniffer dogs that go through the camp including rooms. How do I know? There’s only one way to know, been there, done that. I’ve also worked in camps that weren’t dry, all things considered I prefer the dry camps by a looong way. I’ve done my time regardless.

#221 TEMPLE on 04.09.13 at 7:49 pm

#213 Toronto_CA on 04.09.13 at 6:49 pm

I couldn’t live with myself if I was a leech on society, as these unions are.

I am not going to say much about this comment, but you are being ridiculous. This would be a very dark place without the civil service or unions. I’ve heard this kind of “leech on society” comment before, and it is just a way for the ignorant to ride on a moral high horse.

Anyhow, regarding surveys, I suspect you are referring to this recent report:

http://www.news1130.com/2013/04/04/civil-servants-earn-12-more-than-private-sector-workers/comment-page-1/

That “study” referred to is by the Fraser Institute. That should raise immediate alarm bells about the ideology that backs this kind of hack job. The authors of this “research” incorrectly conflate union jobs vs. non-union jobs with public vs. private sector jobs. It is a comparison that is entirely wrong, and pretty much destroys the credibility of their recommendations. This kind of “study” is pure spin. Don’t fall for it.

Obviously, this raises another question: given a disparity in wages between unionized workers and non-unionized workers, should we race to the bottom? Why assume that the lowest wages we can get away with paying people is beneficial for society? That kind of thinking just makes the rich richer by screwing down wages – in other words, standard neocon ideology.

Anyhow, believe what you want to believe.

Pandas shouldn’t be in a zoo.

TEMPLE

#222 Cowpoke on 04.09.13 at 7:56 pm

It is coming to this to a town near you, soon.

http://www.youtube.com/watch?v=Cup9CgSjr9g

#223 This Blog Needs More Smoking Man on 04.09.13 at 7:58 pm

With great respect Garth please do not delete Smoking Man comments. He is the best part of this blog and I look forward to reading his wisdom first and yours second most days. Please allow him to write what he needs to as it is often the only real and great wisdom on your blog. Let us be the judge instead of you deleting him.

Thank you, Smoking Man. — Garth

#224 Godth on 04.09.13 at 7:59 pm

What name did I use? I just find it amusing when anarchists want government to assume control of the banks. That should work out well. — Garth

Apparently I represent anti-government forces but got downgraded to an anarchist. lol

Privatizing profits and socializing losses is the new status quo then. My grandfathers should have stayed at home and invested in IBM, Standard oil, Chase Manhattan bank and Thyssen. They were sure the greater fools.
It’s all a moot point anyway, as you say Garth – whatever.
Take care

#225 Mithan on 04.09.13 at 7:59 pm

Cramar:
Real Estate is expensive in Regina because people were willing to borrow whatever the bank gave them, to purchase whatever they could purchase. Euphoria had a lot to do with it as well. Tis pretty simple really.

The main factor driving the low unemployment rate here right now is also Construction.

Not building “mines” and oil like the politicians want you to believe, but building homes. In the last 5 years, about 10,000 homes have been built. That is a LOT of employment.

Building homes begets employment, which begets building more homes, which begets more employment. Its a great circle until… something changes no longer building homes begets unemployment.

#226 Smoking Man on 04.09.13 at 8:35 pm

#223 This Blog Needs More Smoking Man on 04.09.13 at 7:58 pm

With great respect Garth please do not delete Smoking Man comments. He is the best part of this blog and I look forward to reading his wisdom first and yours second most days. Please allow him to write what he needs to as it is often the only real and great wisdom on your blog. Let us be the judge instead of you deleting him.

Thank you, Smoking Man. — Garth

Will you guys both relax, not going anywhere, I have an addiction problem and this pathetic blog is one of them.

But for all you dog lovers, just lost one off ours.

Born Dec 15 1997 ‘she passed away in my wife’s arms at 1:48 today.

She was a beautiful soul…. Glasses just steamed up writing this…

Give me a few days…..

#227 Cici on 04.09.13 at 9:08 pm

#84 HD

Thanks for your brilliant response HD ;-)

Much appreciated!

#228 Randman on 04.09.13 at 10:08 pm

CIBC, TD, Scotiabank and BMO replaced Canadians with temporary foreign workers, claim hundreds of emails. Link

Why is anyone surprised at this story? IT outsourcing is endemic. — Garth

True that….I’m in SE Asia now…I bet few people know
That Telus has a huge call centre in Manila!

#229 brainsail on 04.09.13 at 10:57 pm

#226 Smoking Man on 04.09.13 at 8:35 pm

“But for all you dog lovers, just lost one off ours.

Born Dec 15 1997 ‘she passed away in my wife’s arms at 1:48 today.

She was a beautiful soul…. Glasses just steamed up writing this…

Give me a few days…..”

My wife and I are very saddened by your loss. It was only a couple of hours ago that we had our dog euthanized at our house. He was a cocker named S’more that had we originally got as a rescue dog. He had lived the first five years as an ignored dog that was never let inside the owners home. When my wife first brought him home he changed and became the most loving creature that I have ever met. He changed our life. Cancer took over his lungs from a previous tumor that was removed from his neck a couple of years ago. A sad day for you and us.

#230 Ricky on 04.10.13 at 12:01 am

“…350,000 mortgage, 35,000 2nd mortgage, 50,000 loans and other debt…” Holy smokes they’re near retirement with this. I guess having paid of my mortgage and all debt before retiring makes me a financial genius. Who knew?