Chain of fools

TESTO

Just another week of fools. Bitcoins crashed and burned, losing over half their value in a day. Gold melted, shedding almost eighty bucks an ounce on Friday. It’s now down an attention-grabbing 18.6% since the year began. Iconic Canadian gold producer Barrick gave up 8% of its value in a single trading session and has a one-year return of negative 44.1%. Ouch. And Scotiabank capped off the week with a sour note for homeowners, saying: “we expect increased downward pressure on prices in the latter half of the year and into 2014.”

Meanwhile the Dow and the S&P made new records highs. The latest stats show growth in the US economy exploded at a 3% rate in the first quarter of the year (twice what it was in December). Consumer spending soared and the savings rate plunged – Americans are saving less than at any time in the last seven years, while amping up deals for new cars and houses. Car sales are the highest in six years while real estate is appreciating at the fastest rate in nine years. For the first time since 1995, the US is producing more of its own oil (sorry Calgary) than it’s importing. New housing construction in 2013 will be restored to 2007 boom levels. The median price of an existing house climbed 11.6% in the last year – the most since 2005.

These are facts. Investors see them. They’re voting with their cash.

More proof of what I told you last year was coming. Real assets down. Financial assets up. Remember that?

In terms of economic recovery and stock markets the advice was simple: ‘Don’t bet against America’? Plus, when it came to real estate, two years ago I counseled you to ‘Sell Canada, buy US.’ To date, these words have provided a successful roadmap. Despite whatever the doomers spin you about the Fed’s printing press, 20 million unemployed or 50 million on food stamps, there’s an American renaissance taking place which should surprise no one.

There’s also a reckoning for Canada. Over 150,000 jobs lost last month, record household debt, real estate saturation, negative growth and now falling values for the one asset that 70% of us own. A generation ago people paid off their houses in their thirties. Now, says CIBC, the average 57-year-old is still indebted. In BC (where the savings rate is negative 8%), it’s 59. That pretty much guarantees most people will be running out of money in retirement.

So, real assets and Canada are on a downward trajectory. Financial assets and America are ascending. If you want to protect your family, and your wealth, then embrace this. The logical actions are to reduce your exposure to real estate, diversify net worth into things like ETFs, have US and international financial assets, avoid GICs and savings accounts, have balance between growth assets and safe fixed income, and get good help if you’re too busy earning a living.

Most people won’t do any of it, which is why we have wealth concentrating at the top among folks who do. Others will buy equities at fresh highs, after sitting on the sidelines while they doubled. It’s why the middle class is being screwed over daily, trying to follow an out-of-date playbook. It’s why we have the momma of all retirement crises brewing at this very moment, and get worked up about non-stories like RBC’s little imports.

Time for an example. So let’s mock Sandor.

Wife and I are in our thirties with a two year old daughter and a semi in Markham.  We’re finding it difficult to pay our monthly expenses with the daycare, mortgage, and a KIA! With combined income of 110K, we’re a grand to two short every month. I have investments on the side in the TFSA but would rather not use this savings to offset the monthly debt.  We’re looking for a solution and one thought is to use our untouched HELOC 50k @ 4% to max out both of our TFSA accounts.

My wife is very skeptical of investing, she’s seen her father crash and burn with Nortel so I’ve been looking for high yield dividend investments.  One that I came across seems to  have been paying out big dividends since 2004 and could return close to 11% annually.  But is it too good to be true, we’re wondering if there’s a catch?

Sandor and Wife (lovely name) and kid can’t make it on $110,000, spending about $20,000 more annually than they bring home. His solution: more debt, borrowing money to top up TFSAs which he’ll then shovel into one Canadian stock with a magical yield. This is a path to disaster.

Their debt load’s too high already. They’ve little in the way of liquid assets, so almost all net worth is in a semi in the burbs, ripe for a price correction. Interest on the HELOC wouldn’t be deductible (since the money’s going into a registered plan). Putting all of into one equity paying a big return to attract capital is a train wreck waiting to happen. Besides, earning a net 5% on fifty grand will buy scotch and daycare for about a month. So, how does piling on more debt fix anything?

So dude, if Wifey is risk-averse, why’d she marry you? You pretty much define trouble. A few more years on this path and you’ll be irretrievably in hock, especially when your equity falls and your mortgage rate rises. You have scant choices, none of them happy. Sell and rent a cheap condo for a couple for years until you get the finances in order. Budget and live within your means – no excuses. Get a second job. And be honest with your family. The status quo is unsustainable. Change it or you all go down together.

In recent days this blog’s been overrun with people pissed the life they feel entitled to won’t happen. They want the middle class thing their parents enjoyed. House, babies, career, pension. Daily I explain why that’s not going to happen in a changed world, unless they also change.

Real estate’s often at the heart of my arguments, since it’s the core Canadian holding. Combine that with financial illiteracy, and the result is Sandor. Just the average guy wondering why it’s all so hard.

Another fool. In excellent company.

357 comments ↓

#1 TurnerNation on 04.12.13 at 8:24 pm

More splot today.

#2 Chain of fools — Greater Fool – Authored by Garth Turner – The Troubled Future of Real Estate | The Affluent Boomer™ on 04.12.13 at 8:26 pm

[…] Just another week of fools. Bitcoins crashed and burned, losing over half their value in a day. Gold melted, shedding almost eighty bucks an ounce on Friday. It’s now down an attention-grabbing 18.6% since the year began. Iconic Canadian gold producer Barrick gave up 8% of its value in a single trading session and has a one-year return of negative 44.1%. Ouch. And Scotiabank capped off the week with a down note for homeowners, saying: “we expect increased downward pressure on prices in the latter half of the year and into 2014.” Continue reading → […]

#3 waiting on 04.12.13 at 8:29 pm

great post again. You have a way of cutting to the chase …

#4 Derek R on 04.12.13 at 8:31 pm

And here’s the GarthFAQ for those are a bit flummoxed by the jargon round here.

#5 Tim on 04.12.13 at 8:31 pm

Care to comment on the economic status of Alberta over the next few years? Big oil projects now being cancelled and loads of LNG turning up in the states. No diversity whatsoever in Alberta–economically that is.

#6 Randy on 04.12.13 at 8:31 pm

I’m not a ‘real’ Canadian …I don’t like debt…haha

#7 Nodebt on 04.12.13 at 8:32 pm

FedEx Monday am!!

#8 Godth on 04.12.13 at 8:33 pm

“In BC (where the savings rate is negative 8%)”

Everyone I talk to here is borrowing to invest in the stock market. :)

http://neweconomicperspectives.org/

http://www.youtube.com/watch?v=I-ofKI8QFWY

#9 Dorko on 04.12.13 at 8:33 pm

For a post like this,
I think you deserve an award.
Regardless of the contents,
Surely you can’t do better,
Thanks for your daily work.

#10 Tom Vu on 04.12.13 at 8:36 pm

DELETED

#11 reader on 04.12.13 at 8:36 pm

Today I spent hours online searching if online gambling income is taxable and still don’t have clear answer…

some sources say it isn’t (losses are not deductible, gambling income is tax-free, etc) , other say it is taxable at standard income rates

anybody ??? reliable sources???

thanks

#12 Mark on 04.12.13 at 8:36 pm

$2 grand short a month on $110k a year? What is this world coming to?!?

Cut some spending fools!

#13 dave on 04.12.13 at 8:37 pm

now that is a cool photo!

#14 Deano on 04.12.13 at 8:37 pm

This guy needs http://www.mrmoneymustache.com

Desperately.

#15 prairie person on 04.12.13 at 8:38 pm

Many years ago when I was still teaching, I had a grade ten student get pregnant. A grade eleven student helped her with that. She was outraged that the company (it was a company town) wouldn’t provide her and her husband (they got married) with a house like her parents. Her father and his father had doctorates in science and senior positions with the company. Both mothers had master’s degrees and were working. She’d had a very privileged life to which she felt entitled by birth. Life, suddenly, got very hard. What I read about on this blog is much the same. The ages are ten years older but there is the same sense of privilege. The same sense of having the right to what parents have or had. And, to have it right now. The best house, the best appliances, the best furniture, the best car, the best holidays, the best clothes. Paid for not with earnings and savings but with debt. No smarter than that 15 and 16 year old who were incapable of grasping cause and effect, act and consequence.

#16 Derek R on 04.12.13 at 8:39 pm

Oops, wrong link. Try this. The GarthFAQ

#17 Smoking Man on 04.12.13 at 8:42 pm

Turner nation you had your chance to pass off Dr Wayne.

First is all you had to say… Mind you getting old, just let a perfect camel toe slip out of range by not paying attention, that’s trading..

#18 Nodebt on 04.12.13 at 8:43 pm

110k/year between both of them?
What the hell are they spending all
Their money on? Start a budget ASAP
And live within your means! You both
Need help ASAP !!!

#19 DaleFromCalgary on 04.12.13 at 8:46 pm

I’m very suspicious of any investment paying 11% on a regular basis. The best I can do in the oil patch with pumping wells is 8% and most other investments I have are about 4% to 5%.

If you can’t raise a kid on $110,000 per year, even with a mortgage, run, don’t walk, to a financial advisor. Fast food meals at work and coffee with foam and chocolate sprinkles can cost you $20 a day without realizing it. Do you really need 57 channels on cable, etcetera? Have a trusted outsider look at your expenses all the way down to that chocolate bar and show you what you can live without.

#20 Squatter on 04.12.13 at 8:46 pm

The government is doing exactly like today’s fool.
With MY money. Grrrrrrrrr!
Can politicians be IQ tested please? (this remark doesn’t apply to you Garth!)

#21 Soylent Green is People on 04.12.13 at 8:48 pm

Meet @pmHarper’s newest cabinet minister… http://www.telegraph.co.uk/news/worldnews/northamerica/usa/9986039/Hermit-who-lived-in-US-woods-for-27-years-suspected-of-1000-burglaries.html … #cdnpoli #idlenomore #occupy

#22 Small Town Steve on 04.12.13 at 8:50 pm

Other than the 15% witholding tax do these 3 as well as US mREITs qualify for a tfsa? MLPA,VYM and instead of individual mREITs MORT or are these subject to 30% full tax that is non refundable.

#23 civilservice royalty on 04.12.13 at 8:57 pm

You can have it all….join the civic service….better pay than any Canadian worker…pensions up the hoop…paid leave….can’t be fired for dumb dumbs on the job….we are the Canadian elite…the rest of you idiots can f off….we got it made.

heh heh heh LCBO….8 managers for every 1 employee……managers all make over 100 grand per year…supervisors taking in $700,000 per year……you lose drinky suckers….money go to us …civil service say ‘let them eat caca’.

In BC…skytrain double dipping cops…$200 k per year….why work eh?

Jim Chu…police chief Vancouver makes $315 p/a…..New York Chief…$214……..our Jimmy makes more than the president of the united states…….sucker worker…we civil servants got you by the nut sack…

multiply all the graft we got going…..we take the diaper off your kids bottom….we rule…civil service…..royalty….an nothing you can do about it.

#24 PokerCat on 04.12.13 at 8:57 pm

A household makes $110k and still can’t make ends meet? There something seriously wrong here…

Garth’s right, don’t borrow money to fund a TFSA, you’re barking up the wrong tree. Financial literacy is certainly part of the problem.

Forget the TFSA, you’d be better off spending $60 to buy Quicken (and actually use it consistently, mind you) and learn how to manage your money better. Also, you could google ‘personal finance blogs’ (and for free!)

Not sure why I decided to stop lurking, I know I just wasted my time giving decent advice that won’t be followed. Not sure if Sandor is the idiot for not knowing how to balance a chequebook, or me for wasting my time writing this…

#25 AK on 04.12.13 at 9:08 pm

“For the first time since 1995, the US is producing more of its own oil (sorry Calgary) than it’s importing.”
——————————————————————-
Last time this happened, Oil was trading under $10.00 a barrel. Where will it be this time around?

#26 Shrit4brawns on 04.12.13 at 9:09 pm

agree with Garth on the diversified financial assets

that said, i bought more ABX today (Barrick)….

buy when things are down, not up

#27 Smoking Man on 04.12.13 at 9:11 pm

DELETED

#28 matt on 04.12.13 at 9:11 pm

hey garth,

i thought you would get a kick out of this:

“home and condo sale” show at the metro toronto convention centre this weekend CANCELLED due to “unforseen circumstances”.

check out their webpage:

http://www.homeandcondosale.com/

classic.

if you are interested, here’s their facebook page too:

https://www.facebook.com/HomeAndCondoSale

apparently, it was going to be the “world’s largest real estate sale”…

#29 JSS on 04.12.13 at 9:12 pm

Garth –

Is the TSX dead?

#30 McLovin on 04.12.13 at 9:15 pm

The TSX IS Dead.

So is Smoking Man apparently

#31 Bill C on 04.12.13 at 9:16 pm

Im still not sold on this US “recovery”. Maybe Im wrong, but it just seems like a dead cat bounce. Time will tell.

#32 Victor V on 04.12.13 at 9:16 pm

Eric Sprott sells big chunk of Silver Trust units

http://www.theglobeandmail.com/globe-investor/inside-the-market/eric-sprott-sells-big-chunk-of-silver-trust-units/article11157109/

Eric Sprott has been busy offloading units in his Sprott Physical Silver Trust over the last few weeks.

It may be fortunate timing; the fund hit a record low today amid the vicious 5 per cent plunge in silver prices.

INK Research, which monitors insider buying and selling activity, points out to us that regulatory filings show Mr. Sprott sold $46,258,984 (Canadian) over the past 30 days in the trust. The sales to the public occurred almost daily in several transactions.

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

With all this gold talk, let’s not forget that precious metal ‘superheros’ like Sprott have quietly been dumping their silver holdings too.

This will not end well for the bugs.

#33 Smoking Man on 04.12.13 at 9:21 pm

God if I could only write, let you dogs into my head….. It would be an amazing rush…….

God why did you deprive the weak… Let them hear the story. Give me the right key storks, but no…. You challenge me on the lake.

You can’t beat me god.. Your older than me, time to retire shit head… Move along time for a new world order….

Just saying god….

#34 T.O. Bubble Boy on 04.12.13 at 9:21 pm

Wife and I are in our thirties with a two year old daughter and a semi in Markham. We’re finding it difficult to pay our monthly expenses with the daycare, mortgage, and a KIA!

Semi in Markham runs between:
$300k and $750k (seriously?).

Let’s assume it is an “average” semi like this:
http://www.realtor.ca/propertyDetails.aspx?propertyId=12977131&PidKey=-396547570

$475k, 5% down, 25-yr @ 2.79% = about $2100/month. Add in property tax ($400), insurance ($50/month), utilities ($250/month), and general maintenance, and you’re up to $3000/month just for the basic costs of the semi.

$110k/year = $9167/month pre-tax, or about $5,800 after-tax.

So, this couple (and their kid) have about $2,800 to spend each month after the house payments etc.

Daycare? $1500/month… down to $1,300
Kia payment? $300/month… down to $1,000
Internet/Cable/etc.? $200/month…. down to $800
Food? $800/month… down to $0.00

(notice: no savings, no investments, no clothes, no entertainment, no vacations, no life)

Welcome to the six-figure household in Canada, where debt and HELOCs are the only way to pretend to keep up!

(what bubble?)

#35 Paul on 04.12.13 at 9:22 pm

This might help for some folks out there. It’s free.

https://www.mint.com

#36 mark on 04.12.13 at 9:22 pm

I’d say I’m surprised the guy can actually breathe without opening his mouth, but I’m guessing ‘Wife’ is doing most of the spending for them.

Heard it before, “oh I don’t trust investing, but I do trust consumer debt, eating out several nights a week and endlessly renovating the house by refinancing the mortgage.”

Slavery is still alive today.

#37 Paully on 04.12.13 at 9:25 pm

Sandor has to stop trying to keep up with the Jones…or the Chungs or the Singhs, or Alis or whomever else in Markham is inspiring them to spend so much more than they make.

#38 Soylent Green is People on 04.12.13 at 9:27 pm

I would settle for grocery money!!!!!!!!!!!!

#39 AK on 04.12.13 at 9:27 pm

#22 Small Town Steve on 04.12.13 at 8:50 pm
“Other than the 15% witholding tax do these 3 as well as US mREITs qualify for a tfsa? MLPA,VYM and instead of individual mREITs MORT or are these subject to 30% full tax that is non refundable.”

——————————————————————–
All qualify for a TFSA.

Canadian residents who receive ordinary dividends from
U.S. REITs are normally subject to a 30% withholding tax.
However, there is a reduced withholding tax of only 15%
under the Treaty if the investor is an individual.

#40 simpleton on 04.12.13 at 9:30 pm

Hm

#41 Smoking Man on 04.12.13 at 9:31 pm

DELETED

#42 simpleton on 04.12.13 at 9:33 pm

interesting development today, 500 tons of gold short/paper sold. In a single day, Bullion banks seems becoming desperate. Short squeeze? Almost no changes in pricing on Scotia Mocata…

#43 TurnerNation on 04.12.13 at 9:34 pm

That must be the Camaro “IIROC” edition.
And someone’s stolen its car phone with all the data.

(Too soon ;-) ?)

#44 simpleton on 04.12.13 at 9:40 pm

There is NO fundamental reasons for the stock market rise. Complete detachment from fundamentals. Scary times ahead…

Read the piece. — Garth

#45 Victor V on 04.12.13 at 9:41 pm

#28 matt

Want more insight — Check out the popularity (lack thereof?) of their facebook page:

https://www.facebook.com/HomeAndCondoSale/likes

#46 Dean Mason on 04.12.13 at 9:49 pm

The highly indebted Canadian is the real problem and their spending is out of control. People have to learn to live in reality by start saving and investing every month. The $110,000 a year income leaves them about $76,000 a year net after taxes and they are still short $2,000 a month.What is wrong with these people.

A $600,000 home with 3.00% mortgage 25 year amortization with all expenses,property taxes,utilities,insurance,CMHC insurance etc. would cost about $3,667 per month or $44,000 a year.They still have left $3,200 a month for food,clothing,vehicle expenses,daycare ,gas etc. They must be really bad money managers.

They want to borrow $50,000 with the fantasy of making 11.00% a year return. Where do they get these financial reckless ideas from.This goes again to the last post I mentioned inflation for myself and my family it is 2.50% but I can see for these guys it is going to be high like 7-8% a year with all their debt and spending situation.

#47 Jeff in Moose Jaw on 04.12.13 at 9:49 pm

In the picture, is that a Dodge Viper parked next to that 2nd gen Camaro? The need for speed…

#48 Jon B on 04.12.13 at 9:52 pm

Good post tonight. I sense some anger in your words about Sandor. Likely frustration. I think the efforts made by the the big evil banks is a prime reason why so many people think that debt is the best tool to solve money problems. The banks have made it so benign, so harmless, so friendly, so accessible. Folks in their 30’s want it all and have figured out that cheap debt is the easiest path to having it all. Sandor is just another lemming. Borrowing your way to financial freedom IS the financial strategy for most of Generation X. We are living in a golden era for the banks.

#49 Dean Mason on 04.12.13 at 9:53 pm

I made a mistake it is $32,000 a year or $2,667 per month left.Just one last point, if they could save say $19,800 in their RRSP’s which is the maximum they would get back about $8,000 a year which would help their cash flow and maybe use it for other expenses or put the $8,000 in TFSA’s. They have to live within their means and join reality for the good of themselves and their family.

#50 abraxas on 04.12.13 at 9:56 pm

Seems like the TSX is such a laggard this year it’s tempting to shift money into it vs American stocks. Or would that be catching a falling knife?

#51 simpleton on 04.12.13 at 10:04 pm

Read the piece. — Garth
——————————-
You mean the phony race of the stock market and suppression of commodities so somebody can buy resources with newly minted out of nothing dollars?

Love your name. — Garth

#52 valyrian_steel on 04.12.13 at 10:05 pm

Wife and I are fortunate to earn well into the 6 figures for income. Somehow (acutally its quite easy) we manage to save around 5k every month. This surplus is plowed into Garth’s delightful concoction of investment instruments and generates even more financial goodness. We probably hold more cash than Garth would advocate, but there is something comforting about a “cash stash”. You don’t hear a lot about people like us in the blogosphere, but there must be more.

#53 No mans land on 04.12.13 at 10:06 pm

Nice post. I’m a little confused over the whole gold thing though. I hear there is a difference between gold paper and physical gold buying. Sounds like the wealthy and central banks are all hoarding physical gold which seems to be in short supply. Can anyone explain the difference?
thanks

#54 simpleton on 04.12.13 at 10:07 pm

#50 abraxas
————————-
TSX might go lower. But when the smoke and mirrors illusion of US recovery disappears it could skyrocket. Resources are bullish long run, financials are scam.

Like the bank profits? — Garth

#55 No mans land on 04.12.13 at 10:10 pm

I also bought some gold shares after reading insiders are loading up on them in the below article. With the DOW at all time highs and gold at monthly lows is it maybe time to sell the DOW and buy gold?

Goldman Sachs (whom I don’t trust after calling people “muppets”) say they are short gold, or is this their ploy to get people to sell gold to them, and dump their DOW stocks to the muppets?

What a world we live in, eh.

http://www.theglobeandmail.com/globe-investor/inside-the-market/insider-buying-of-gold-stocks-surges-to-multi-year-highs/article10312788/

#56 toughguy on 04.12.13 at 10:10 pm

There’s a difference between the way the rich and poor think.The poor wait to see what the rich do and then copy. The rich see what the poor are doing and then do the opposite.

#57 Bottoms_Up on 04.12.13 at 10:10 pm

Sandor I’m in the same boat, daycare and debt thing. Hold tight–don’t borrow money to invest. Limit the debt damage over the next couple years, sell stuff, reduce your standard of living, get your debt accumulation in line. Then when your daughter hits school age, take the money that was going to daycare and start paying back the debt. Hopefully you’re debt-free by the time she’s 10, and you’ll have a chunk of equity in your house that at that time you could borrow against to invest for the future.

If you can’t find ways to limit your debt accumulation, then Garth’s advice is probably best, you’ll have to sell your house and rent in order to limit the damage.

#58 Weedeater on 04.12.13 at 10:12 pm

Oh Sandor … you two need to take a hard look in the mirror. $110K per year and it’s not enough?! Stop the madness and get rich quick schemes. You need a long term strategy that includes retirement and RESP, paying down non mortgage debt, and bulking up TFSAs. Planning another baby? Create a spousal RSP which can be withdrawn from after 36 months. In short, get good advice, read some frugal & finance blogs, and stop pretending you are Jay-Z with his money.

#59 Mick on 04.12.13 at 10:14 pm

Garth bashes the precious metals crowd as doomers for no other reason than to gain credibility. Imagine being dumb enough to invest in the same thing the richest banking families in the world hold in large quantities……

Utter nonsense right Garth?

Pointing out that an asset pays nothing and is insanely volatile it not ‘bashing.’ It’s being astute. — Garth

#60 m on 04.12.13 at 10:15 pm

Sandor! There is a noble Hungarian name! Oh my god…you are going in deeper every month. Do not borrow more. Re-group, reassess…did I mention do not borrow more?

#61 Bottoms_Up on 04.12.13 at 10:16 pm

#46 Dean Mason on 04.12.13 at 9:49 pm
———————————————-
You obviously don’t have to worry much about money, or don’t realize the costs on young families.

A good daycare centre can run $1300-1600/mo.

Food for 3 (2 adults, formula etc. for the baby) can easily run $1000.

So now you’re at $2600, leaving only $600 for everything else. How far does $600 go when you’re trying to pay bills, buy clothes, put gas in the car, live life?

#62 Cristian on 04.12.13 at 10:17 pm

“US economy exploded at a 3% rate in the first quarter of the year”

“Exploded”!!! at a rate of…. what? 3%!!!!… Wowee!!!
I almost choked with my tea while reading this, it was so funny. I have to admit, you’re a funny guy when you want.

“These are facts. Investors see them. They’re voting with their cash.”

Investors have been known to be always right and all one has to do is follow them. Or does one?
Was it investors who bought into the dot.com boom? Was it investors who bought the Nortel?
Hmm, I guess not. But if not, who, then?…

As for Sandor… my advice: sell the house and rent, sell the Kia and take transit. Me and Wife (lovely name, I know) and two kids live on 80K net a year, rent a 2,8K apartment, take transit, have our RRSPs, TFSAs and RESPs filled to the brink, take two overseas vacations each year and have cash left at the end of the year too. But we are thrifty and do budget. You can’t have your cake and eat it too. Get your priorities in order and stop whining.

Further reading will show you that 3 per cent real GDP growth is substantial, especially coming from recent levels. This will assist you in future from embarrassing yourself. — Garth

#63 Chuchu on 04.12.13 at 10:17 pm

#11 reader
Today I spent hours online searching if online gambling income is taxable and still don’t have clear answer…
—————————————————-
Should be non-taxable unless the gambling is your “business” or “profession”, that’s why its a grey area. The idea of a “business” can be subjective. But generally its non-taxable unless you want to try to claim “business” expenses, then you will have to claim the income. CRA has not come down on gamblers and thier winnings so non-taxable unless that changes.

#64 ChickenLittle on 04.12.13 at 10:18 pm

#15 prairie person on 04.12.13 at 8:38 pm:

What do you expect of the Bubble-Wrap Generation? They were never allowed to take risks as children, so now they do not understand the concept of try and fail at all! They were never allowed to fail seeing as everyone got a ribbon at the end of they day.

#34 T.O. Bubble Boy on 04.12.13 at 9:21 pm:

Thanks for doing the math! $110k does not go far in the GTA.
Right now my insurance in Mississauga is $350 for two vehicles and will be going down to $200 when I move 15 minutes down the road.
And don’t forget that babies are expensive!
Don’t forget car insurance, cell phone bills, gas, etc.
I have a ten year old, paid-off Honda that still costs me $280 per month in gas.
Life is not cheap anymore. That’s why I don’t understand how people on this blog and in life whine so much about how expensive everything is, and then come down on a guy who couldn’t even get approved for the avarage home in Toronto by an honest bank.

Let’s not make this one of those “I’m smarter than you” blogs, even though it already is.

#65 editor on 04.12.13 at 10:20 pm

They could sell the semi and rent a whole 4BR house in Markham for what they are likely paying for housing now. l
Pay less for a 3 BR which is all they need.

#66 renting and waiting no more on 04.12.13 at 10:21 pm

“There’s also a reckoning for Canada. Over 150,000 jobs lost last month, record household debt, real estate saturation, negative growth and now falling values for the one asset that 70% of us own. ”

— yeah, yet you continue to defend Outsourcing and offshoring as sound strategy. SURELY you understand that unemployment would be lower, wages would be higher, household debt would be lower, and therefore more people would be able to afford to own their own homes which would mean that the housing crash wouldn’t even have to happen to the extreme that it will happen IF COMPANIES DIDN”T OFFSHORE THE JOBS!

And don’t give me this “they want to save money, Canadians are too pampered, it’s called Capitalism” nonsense, because you know it’s nonsense. You have written time and again that corporations are not reinvesting their wealth in Canada so what good does it do anyone if they make more and more and more by unemploying our citizens??

#67 rosie "moving backwards" on 04.12.13 at 10:22 pm

I know this is from the Star and we’re all on our own and living in an Ayn Rand fantasy world, but average people really don’t stand a chance. I guess it’s like shooting fish in a barrel when we mock these people. Somehow it seems wrong. http://www.thestar.com/news/canada/2013/04/12/former_outsourcer_describes_how_rbcstyle_job_destruction_works_walkom.html

#68 Bottoms_Up on 04.12.13 at 10:24 pm

#24 PokerCat on 04.12.13 at 8:57 pm
——————————————
$110,000 sounds like a lot of money, but it’s not. That’s basically the wages of the working poor these days, especially for young families.

I think people don’t realize the ‘start-up’ costs of having a child (at least $2000-5000), plus recurring costs like diapers, wipes, cream and the hit to salary for maternity leave, plus a yearly after-tax daycare bill of $18,000 once both parents are back at work.

It’s kind of sick really. And young (middle-class) families these days are either taking on debt to get by, or they have extensive help (basically a live-in grandparent–which is the equivalent of having a free full-time nanny).

#69 toughguy on 04.12.13 at 10:25 pm

Sandor and Wife (lovely name) and kid can’t make it on $110,000, spending about $20,000 more annually than they bring home. His solution: more debt, borrowing money to top up TFSAs which he’ll then shovel into one Canadian stock with a magical yield. This is a path to disaster.

lol Garth, apparently its ok if the us solution is more debt to shovel in garbage bonds to keep this phony dow and S&P500 levitation going for a little while longer you are a economic comedian what ever happened to your sell high buy low mantra (shorting all paper now while its still good and going liquid ) liquidity is good in your own words

In other words, you missed the markets doubling in the past three years. — Garth

#70 TurnerNation on 04.12.13 at 10:27 pm

Smoking man this weblog is pathetic enough – without the firsters. Perhaps I could have punctuated my sentiment with: “oh yeah, baby!!”.

Gearheads you should be focusing on whether it’s got a 9 or 10 bolt rear end. And it looks like Moses parted those panel gaps. Typical Domestic.

#71 McExpat on 04.12.13 at 10:29 pm

@32 viktor
Sprott has sold and reinvested in silver equities and mining companies. Perhaps keep reading before you post. Clearly the guy has no idea what he is doing

#72 marnic on 04.12.13 at 10:30 pm

There is NO fundamental reasons for the stock market rise. Complete detachment from fundamentals. Scary times ahead…

Read the piece. — Garth

Read the macro data.

#73 Cardboard Barometer on 04.12.13 at 10:31 pm

Boss man a few weeks ago stated very clear ‘Do not buy real estate for at least the next two years’…worth north of 1/2B…when the 1% says to your face “Don’t gamble on Real Estate” probably should listen…can mean many different things…high turnover in my work….hope that shields me…as Garth has said ‘Don’t catch a falling knife’….the true 1% has spoken…make your own bed and lay in it!!!

#74 Bottoms_Up on 04.12.13 at 10:32 pm

#19 DaleFromCalgary on 04.12.13 at 8:46 pm
————————————————-
In order to (best) trim your monthly budget, it makes sense to look at the big ticket items. I use to think cutting cable was the answer, but ultimately is $30 a month actually going to solve the problem?

Likely order of biggest expenditures:

1) Mortgage (can’t do much about that, unless they sell)

2) Daycare bill (could look for cheaper daycare, or convince a family member to move in and work for free)

3)Food (could likely cut out a hundred bucks or two per month by being frugal and eating at home only)

#75 Cristian on 04.12.13 at 10:33 pm

“Meanwhile the Dow and the S&P made new records highs. The latest stats show growth in the US economy exploded at a 3% rate in the first quarter of the year (twice what it was in December).”

So it would seem that the economy influences the stock market, right?
Well, wrong!
At least according to
http://www.theglobeandmail.com/globe-investor/investment-ideas/dont-confuse-the-stock-market-and-the-economy/article11166348/

So “abraxas” seems to have a point when thinking of buying the TSX rather than the SP500.

#76 Bottoms_Up on 04.12.13 at 10:34 pm

#11 reader on 04.12.13 at 8:36 pm
—————————————-
I don’t think governments have enacted taxation on on-line gambling proceeds.

#77 John in Mtl on 04.12.13 at 10:35 pm

The US is doing exactly what Sandor wants to do: indebt your way to prosperity. I wouldn’t bet for, or against, the US at all. Anyways…

We’re not the only ones in trouble. The Netherlands at a glance: “… Consumer debt amounts to about 250% of available income…”, “… No nation in the euro zone is as deeply in debt as the Netherlands, where banks have a total of about €650 billion in mortgage loans on their books. …”

“… The Netherlands is still one of the most competitive countries in the European Union, but now that the real estate bubble has burst, it threatens to take down the entire economy with it. Unemployment is on the rise, consumption is down and growth has come to a standstill. …”

Article: http://theautomaticearth.com/Finance/dutch-delusion-europes-core-she-rots-some-more.html

Hum, sounds strangely familiar. Canada, anyone?

John

#78 Ken R on 04.12.13 at 10:38 pm

As always, another great post Garth. I really have learned a great deal from your daily observations.

The issue here is not more income for Sandor and his family, but to control the expenditures. That is, however, contrary to the new Canadian custom.

If you sit in a bar and listen to the patrons, everyone brags about how much income they make. Does anyone gets points for how little they spend? The licence on the car says it all. We have had it so good for so long we have become arrogant.

#79 VanPerfecto on 04.12.13 at 10:39 pm

BitCoins are in their infancy. They are thrashing about like crazy with huge swings both ways. This is new and many in the financial industry don’t know what to make of them. BitCoins are designed for the under 30 crowd. Over 30 can continue with ETF’s and Mutual Funds

http://www.economist.com/blogs/freeexchange/2013/04/exchange-rates

#80 Al Bundy on 04.12.13 at 10:41 pm

#4 Derek R on 04.12.13 at 8:31 pm

Well done Derek! That list of Garthisms is spot on!

#81 Bottoms_Up on 04.12.13 at 10:43 pm

#4 Derek R on 04.12.13 at 8:31 pm
———————————–
I think you should add some definitions on blogger’s too. For example:

Nostradamus Jr: The original ‘Devil’s Advocate’ of the greater fool blog who believed in the inertia of the Vancouver real estate market and thought anyone that wasn’t buying a house in Vancouver circa 2009-2011 was a fool. His posts became more crude and fanatical and was eventually banned.

Devil’s Advocate: A Kelowna realtor that frequently posted his insight on the local market, got heckled, then committed to leaving the greaterfool site, then returned, got heckled again, then left, then returned, then left, then returned…then was banned.

Smoking Man: A dyslexic split personality Boomer that is a self-proclaimed millionaire due to his batman and camel toe trading strategy. Has recently had some banned posts…could he soon suffer the fate of Nostradamus jr. and Devil’s Advocate?

#82 Contrarian on 04.12.13 at 10:44 pm

“US consumer debt up $16.2 billion in January, led by gains in student and auto loans category”

http://www.foxnews.com/us/2013/03/07/us-consumer-debt-up-162-billion-in-january-led-by-gains-in-student-and-auto/

Garth I question some of your above sources, is real savings leading the renaissance or more debt levels. The whole problem since 2008 is the middle class had no savings and the economy was built on debt, where did all these “savings” come from if many were wiped out in 2008? Sounds like the cycle is just repeating itself with a bubble in car/student loans….and Canada is just completing a debt cycle in RE.
Any thoughts on this?

My facts are accurate. Your comment is conjecture. — Garth

#83 Contrarian on 04.12.13 at 10:51 pm

“For the first time since 1995, the US is producing more of its own oil (sorry Calgary) than it’s importing.”

This is because Indonesia and Iran are joining the BRICS as trade partners built on a gold exchange system. The Saudi’s will be there soon too, they are simply moving away from the toxic funny money petrodollar.
If the US economy was in real recovery they would shut off the QE taps and raise interest rates. But this is not happening because of a time bomb called derivatives, too many floating around in the system, that is the real nuclear threat, not Korea!

Actually it’s because extraction from shale rock formations in North Dakota and Texas have put the US on track to surpass record domestic crude output. But enjoy your fantasy. — Garth

#84 Bottoms_Up on 04.12.13 at 10:52 pm

#62 renting and waiting no more on 04.12.13 at 10:21 pm
—————————————————-
These large corporations, by off-shoring jobs, have bitten (off?) the hand that feeds them. The smart ones are/have realized this, and are starting to bring jobs back. If a large portion don’t get on board, however, in 20 years they (and us) will likely only exist in the history books.

Have you noticed our governments are now starting to try to stand up for and protect the middle class? Ontario hydro supplement. Ontario government trying to reduce the cost of auto insurance. Feds reducing the cost of tariffs on sporting goods and baby clothes. etc. It’s about time (hopefully not too little too late).

#85 Suede on 04.12.13 at 10:53 pm

Next up, German Elections in 5 months.

Factor or non-factor…watch the markets and the price of the Euro

Also seeing and hearing first hand anecdotal evidence of Gen Y union workers not happy with their unions because the Gen Xers and Baby Boomers are coasting into retirement and pensions. Something’s brewing…

#86 Blacksheep on 04.12.13 at 10:58 pm

“In recent days this blog’s been overrun with people pissed the life they feel entitled to won’t happen. They want the middle class thing their parents enjoyed. House, babies, career, pension.”
—————————————————————
True words. This is why I’m an advocate for systemic awareness. The Cattle need to adjust how they see them selves and society. Their self image and their place in it. Take this anger and channel it. Life is a choice. Alpha or omega, predator or prey? Owner or slave? (the Blacks dictionary, legal description of the employee-employer relationship) Sick of the system? Game it. Stop whining. Stop wasting time on distractions and pay attention to WTF is really going on.

As much as I hate to admit this, I fundamentally agree with Smoking Man and his take on our sich. His version is crass and in your face, but fundamentally correct. We all get one kick at the can, decide what you want, and take it.

http://www.youtube.com/watch?v=6s1Jsz1lj1Y

#87 renting and waiting no more on 04.12.13 at 11:01 pm

#83 Bottoms Up

I don’t see the government standing up for the middle class – quite the contrary. Giving someone a wee bit back for kids’ equipment is simply not enough.

Allowing people to keep their jobs by clamping down on foreign workers and offshoring, investing in training / grants / bursaries, lowering income taxes, upping the requirements for corporations in terms of rules and investment and taxes, routing out their own waste (Tony Clement, all the senators, Peter MacKay).. I could go on.

I do agree with you though that there are many experts who are trying to get the message out that offshoring doesn’t end up saving any money. I wish we didn’t have to make the mistake first before we get the message, tho.

#88 Contrarian on 04.12.13 at 11:02 pm

My facts are accurate. Your comment is conjecture. — Garth

———————————————————
How did you measure people’s savings, and how much of their real savings they spent vs. debt accumulation i.e buying a car.

#89 Cardbordbarometer on 04.12.13 at 11:08 pm

Thank you moderators for getting my voice out… I am in the trenches…call myself ‘Cardboard Barometer’ because gues what…. I work in waste and I am willing to bet that the economy is relevant based on how much I tip…that includes everybody from commercial to residential…want a true barometer of the economy????Ask me and I will tell you the ‘End Result’…Smoking Man…………info not privileged to…name your price…NWO…suck it,capitalism=how much can you sell out your fellow man to make a buck….don’t like my comments…buy shares and try to become the 1%…when you become 1% it is a lot easier to stay 1%…..

#90 Retired WI Boomer on 04.12.13 at 11:08 pm

You, Wife, one kid, earning 110K and WON’T make ends meet? Notice, dude, I did NOT say “couldn’t” make ends meet….I said WOULD NOT…

First, my household has never made $110K a year in our entire working lives!! I retired Jan 2012, wife still works.

You are in your 30’s which was about the same age we were when we finally got a clue, so you aren’t hopeless schmucks yet.

First, let’s think about a few basics:

Your largest single source of power is your income.
Learn how to allocate that income to work FOR you. Learn how to budget. It’s really ugly for the first few months, but then they begin to work -just a little bit. Each month gets slightly better.

Look at your DEBT levels. I suggest listing each debt smallest to largest, and try to pay off the smallest, when its gone add that freed up dough to the next, and so on.
Please… NO NEW DEBT!!

Look at your income.
Do you have a 401-K type plan (US name of it) at work?

Does the company match your savings? If yes, start there, at least up to the match, hell it is “free” money. If no 401K matches there use the tax free savings vehicles for up to a maximum of 15% of income.

Look at housing costs, its a depreciating asset right now.
You might want to think about options.

I hate to think, if you can’t make the numbers NOW…what are you going to do when you get fired and find a replacement job with 80% of current wages.
Pretend that just happened….and make your budget accordingly!

Now at 61 I just ran the numbers…..my tax deferred savings will have me in the HIGHEST tax bracket by the time I’m forced to take a minimum distribution. (Good thing I have time to convert it in smaller pieces (lower taxes) to a Tax-Free vehicle. See 30’s isn’t hopeless!!

Trim up that life style a little bit, you guys.

#91 Eddyo on 04.12.13 at 11:10 pm

@ #50

…. more like rebalancing

#92 reader on 04.12.13 at 11:13 pm

#11 reader

Today I spent hours online searching if online gambling income is taxable and still don’t have clear answer…
—————————————————-

#54 Chuchu on 04.12.13 at 10:17 pm

Should be non-taxable unless the gambling is your “business” or “profession”, that’s why its a grey area…

CRA has not come down on gamblers…
—————————————————-

First of all, thanks for your comment.

This was presented to me today as part of a tax/financial discussion (you know, tax season… 6.49 at $55M, etc…) Somebody brought this to my attention as a non-taxable income, but after research it’s a gray area indeed.

I found interesting resources, but the jargon is too confusing, e.g.:

http://www.cra-arc.gc.ca/E/pub/tp/it334r2/it334r2-e.txt

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1809270

#93 Contrarian on 04.12.13 at 11:14 pm

“For the first time since 1995, the US is producing more of its own oil (sorry Calgary) than it’s importing.”

Actually it’s because extraction from shale rock formations in North Dakota and Texas have put the US on track to surpass record domestic crude output. But enjoy your fantasy. — Garth
———————————————————-
That might be a small piece of the puzzle, but their lack of oil importing is due to usage being at all time lows due to:

(1) continued shrinkage of US industrial activity,
(2) a reduction in vehicle miles traveled, and
(3) recessionary influences (likely related to high oil prices) on businesses, leading to job layoffs and less fuel use.

http://www.theoildrum.com/node/9811

PS – hence one of the REAL reasons they don’t need Calgary oil.

While you’re cribbing from Oil Drum don’t neglect their biggest factor for reduced demand – better cars, better mileage. Fail. — Garth

#94 45north on 04.12.13 at 11:16 pm

In recent days this blog’s been overrun with people pissed the life they feel entitled to won’t happen. They want the middle class thing their parents enjoyed. House, babies, career, pension. Daily I explain why that’s not going to happen in a changed world, unless they also change.

Jon B: I think the efforts made by the the big evil banks are the reason why so many people think that debt is the best tool to solve money problems. The banks have made it so benign, so harmless, so friendly, so accessible.

$50,000 HELOC! What are the banks thinking? Maybe that CMHC insures the loans? I thought CMHC only insures mortgages? Tell me that CMHC does not insure HELOCS.

CMHC and the banks enable the debt and I doubt their ability to deal with it. I mean seriously to what degree can they deal with it? I am sort of thinking that they can deal with up to 1% delinquencies – right now they are running under 0.5%. Over 1% they are going to fold, just like in the US there will be endless political programs to modify mortgages. Mark Hanson points out that the mods are worse than sub-prime. His latest piece “Phoenix Phenomenon” describes the dis-functionality of widespread – virtually universal foreclosure moratoriums.

Sandor and wife cannot afford their house.

#95 Andrew on 04.12.13 at 11:17 pm

Reading the comments here is like people-watching at a monster truck show.

#96 toughguy on 04.12.13 at 11:20 pm

In other words, you missed the markets doubling in the past three years. — Garth

nope just cashed in my TFSAs to go liquid ,remember sell high buy low in your own words . I will get back in later i cashed out in july 2008 got back in jan 2009 smart move on my part thanks to your advice SELL HIGH BUY LOW

Wow. Your whole TFSA. — Garth

#97 The Man From Nantucket on 04.12.13 at 11:21 pm

#34 T.O. Bubble Boy on 04.12.13 at 9:21 pm
…………Semi in Markham runs between:………..

I think you just presented a great theory on why our gracious host is right when he says it’s going down.

When a couple is “privileged” enough to have 6 figure income, and still they cannot afford a semi in a second rate suburban wasteland, well, something is out of balance.

#98 AK on 04.12.13 at 11:23 pm

#83 Contrarian on 04.12.13 at 10:51 pm
“This is because Indonesia and Iran are joining the BRICS as trade partners built on a gold exchange system.
——————————————————————–
The Fab 5 and Iran? :-)

This I would like to see. You can’t be serious.

#99 Freebird on 04.12.13 at 11:23 pm

@#15 prairie person

Well said and written! One of the most articulated and rational comments I’ve read on here, and so true for so many. I know grown adults who live as you describe and younger adult step kids who learned lessons the hard way about the difference between privilege and right. They were really PO’d with us at times and even indignant…how dare we not bail them out (always) or provide money like an ATM.

Thx for the comment.

#100 Godth on 04.12.13 at 11:23 pm

#15 prairie person

“The ages are ten years older but there is the same sense of privilege. The same sense of having the right to what parents have or had. And, to have it right now. The best house, the best appliances, the best furniture, the best car, the best holidays, the best clothes. Paid for not with earnings and savings but with debt. No smarter than that 15 and 16 year old who were incapable of grasping cause and effect, act and consequence”

Irony alert! Aside from wondering who taught them their (our) values you’re completely ignorant regarding money as exponential debt (growth). Neither Adam Smith nor J.M. Keynes believed it was possible but hey, we’re genius. Cause and effect are sorely underappreciated when one is profiting, it’s true. The enviroment, humanity and even our children are up for grabs. I win! You lose, loser! Become a sychophant to the transnational corporations and the investing class who open new markets with military interventions to teach the ignorant our advanced ways. Forget small local business and embrace the big box store complexes dotted every 5 kms. along the 401. Work harder and sacrifice to eat your GMO’s, invest in Monsanto! They’re winners! If you’re organs fail and you become sterile invest in pharmaceutical companies and fertility tech. as an insurance. Yes let’s blame the future for it’s so much more convenient than acknowledging what we’ve wrought at a profit. We’re WINNERS! I’m investing in those who produce adult diapers. I’ve worked in an institution that specializes in demetia.

#101 Cardbordbarometer on 04.12.13 at 11:24 pm

Waiting for Smoking Man…seems like he would step over his own family to make a buck…..

#102 Chepo on 04.12.13 at 11:26 pm

My income is more less same $120K
MY friends hates me and some of the relatives think i live a non standard life. By the way relatives lives in Markham
Here are my expenses:
Condo: $150 K paid off no mortgage – 30 year old building who cares – It is accessible to two buses (TTC)
Maint: 610, Taxes 100 total – 710
Car – Camry 2002 Insurance, Gas – $350
Other expenses(phone grocery etc) – $1500
Day Care $ 1200
Total- approx $3800
saving $2K
Investment: Beside trying to build balance portfolio, wife and I are going to invest in further education.
Not buying house until Garth gives heads up
life is simple, keep it that way

#103 earlybird on 04.12.13 at 11:27 pm

I absolutely love reading your blog….its not pathetic at all…ironically. Thanks for cutting through the BS…saves me the time!

#104 Contrarian on 04.12.13 at 11:27 pm

While you’re cribbing from Oil Drum don’t neglect their biggest factor for reduced demand – better cars, better mileage. Fail. — Garth

———————————————————
“A SMALL part of the decline in oil consumption comes from improved gasoline mileage.”

“Apart from improved gasoline mileage, the VAST majority of the savings seem to come from (1) continued shrinkage of US industrial activity, (2) a reduction in vehicle miles traveled, and (3) recessionary influences (likely related to high oil prices) on businesses, leading to job layoffs and less fuel use.”

Speaking of conjecture ;)

Right, cause everyone can afford a $40k electric/hybrid car with borrowed money. Actually makes sense in the US system the way they run things nowadays. Boy do I miss the 50’s.

#105 Chepo on 04.12.13 at 11:29 pm

I forgot to mention – I am gold buyer , Gold jewellery not selling it

Gold for investment purpose – All sold out at $1800 this year

#106 T.O. Bubble Boy on 04.12.13 at 11:29 pm

This weekend’s Financial Facelift in the Globe and Mail:
http://www.theglobeandmail.com/globe-investor/personal-finance/debt-could-reset-retirement-clock/article11157628/

$45,000 in *CAR LOANS*

wtf is wrong with people?

#107 a prairie dawg on 04.12.13 at 11:30 pm

And now for something completely different…

This isn’t Monty Python.

It’s a new GE (Matrix-style) commercial.

Red or blue? lol

http://www.youtube.com/watch?feature=player_embedded&v=loinY8MmVq8

#108 toughguy on 04.12.13 at 11:31 pm

Further reading will show you that 3 per cent real GDP growth is substantial, especially coming from recent levels. This will assist you in future from embarrassing yourself. — Garth
may i remind you that the CPI is a phony # why? because governments can overstate GDP . say you have 1%CPI and 2%GDP your net GDP is 1% but lets be real here for a moment CPI is really more like 6% with food and gas in there so your net GDP is negative of maybe I’m just a doom and gloomer negative person i dont know

#109 Cardbordbarometer on 04.12.13 at 11:33 pm

#94…pull your head out of your ass…is it worth your time and effort to flap about someone else’s problems!!! Better make sure that you have enough money come’retirement to ensure that you won’t have to rely on Socialist programs that very well might not exist!!!!

#110 Additional advice on 04.12.13 at 11:35 pm

Do not take kids if you cannot afford them.

#111 HDJ on 04.12.13 at 11:37 pm

“… and get worked up about non-stories like RBC’s little workers.” Garth

Your words are stepping on innocent people – what’s the point?

That you commented on this. The media played you. — Garth

#112 Herman Vos on 04.12.13 at 11:41 pm

You’re wrong Garth; the despicable treatment of the RBC “little people” resonates with Canadians who care about those whose jobs are being lost to offshore outsourcing. In their quest to maximize profits and to enrich themselves personally, our corporate leaders could care less at the damage done to middle class families and to society at large. Aided and abetted by your Conservative buddies, this is something that truly won’t end well. Instead of mocking ordinary people, why not take on the rich and powerful for a change.

RBC employs 80,000 Canadians. This affected 45. Get a grip. — Garth

#113 NoName on 04.12.13 at 11:47 pm

Income mobility. On income mobility chart Canada scored green, but general prediction is that good score is temporary. Chart is a bit confusing but boils down to smaller the number better.

Interesting read.

http://goo.gl/KlJE9

#114 Cardbordbarometer on 04.12.13 at 11:48 pm

BANNED

#115 Cardbordbarometer on 04.12.13 at 11:52 pm

BANNED

#116 Vangrrl on 04.12.13 at 11:55 pm

#85:
What gen Xers are “coasting into retirement”? The oldest of us are only hitting 50.

A couple people, in calculating Sandor’s monthly expenses, mentioned clothes- this is not a monthly expense. Do people buy new clothes every month?! A baby needs loads of diapers and new clothes, yes, but it’s easy to find second hand baby clothes which have barely been used (the kid won’t care).
Cell phone bill- no need to spend a dime over $30/mth (and yes, that’s for a Smartphone).
Cable- ditch it. Wireless gives you access to online tv. TVs are so 80s.
Cars are money sucking monsters, esp new ones. I imagine the transit in Markham is sketchy… why do people live in the burbs again?? If you can’t walk to a cafe within 10 min you may as well live on the moon as far as I can tell, or at least a nice cabin in the woods if you’re going to isolate yourself like that anyway.

I’m guessing Sandor is in his early-mid 30s and barely remembers a time when he didn’t have a debit or credit card. That shift in the late 80s- early 90s or a bit later where debit is concerned has made a huge impact on how people think and relate to money.

As someone else mentioned, check out Mr Money Mustache to start, Sandor. There is lots of good info out there.

#117 Googled it. on 04.12.13 at 11:59 pm

Talking about facts,from MSM Media:

http://www.bloomberg.com/news/2013-04-12/is-the-u-s-economy-slowing-again-.html

http://www.telegraph.co.uk/finance/economics/9990178/US-economy-stalls-as-retail-sales-fall.html

http://www.bloomberg.com/news/2013-04-12/michigan-consumer-sentiment-declined-in-april-to-nine-month-low.html

http://business.time.com/2012/12/07/is-the-housing-recovery-just-an-illusion-created-by-the-federal-reserve/

http://www.forbes.com/sites/morganbrennan/2011/05/19/dont-expect-a-housing-market-recovery-until-2014/

http://www.guardian.co.uk/business/2013/apr/12/us-economy-budget-imf-world-forecasts

http://www.businessweek.com/articles/2013-03-14/the-stock-market-and-the-economys-apparent-disconnect

http://business.time.com/2013/01/17/how-long-can-the-stock-market-defy-economic-gravity/

http://moneymorning.com/ob-article/jim-rogers-major-crash-ahead-2.php?code=3242&utm_campaign=content&utm_medium=cpc&utm_source=taboola#.UWjKZbVf2tY

http://www.guardian.co.uk/business/2013/jan/23/nouriel-roubini-quantitative-easing-zombie-banks

http://www.cnbc.com/id/46893252

So, don’t invest. If being afraid is your thing, carry on. — Garth

#118 renting and waiting no more on 04.13.13 at 12:01 am

“RBC employs 80,000 Canadians. This affected 45. Get a grip. — Garth”

this particular story was about 45 people, but the big picture is that outsourcing, offshoring and TFWs are replacing hundreds of thousands of Canadian workers, driving wages down and taking away opportunities for the people who need them most.

Not to mention the way the TFWs are exploited. It is a filthy, dirty game and not everyone is perfectly okay with it in order to make a fast buck. Some of us will not sell out our ethics or our fellow human beings in exchange for money. There are other ways to get comfortable on planet earth besides screwing each other over.

#119 Smoking Man's Old Man on 04.13.13 at 12:03 am

Garth, your intentions are good, no doubt about that, but overspending, home ownership, living beyond our means, are all signs of a much deeper societal problem. Sitting down with people who feel “empty” inside, and sorting out their expenses, won’t fix the long term issues of all the is wrong in the world today…

#120 HDJ on 04.13.13 at 12:10 am

“… and get worked up about non-stories like RBC’s little workers.” Garth

Your words are stepping on innocent people – what’s the point?

That you commented on this. The media played you. — Garth

—————————————————————-

Garth, You’re a smart guy, but referring to these fired RBC employees as “little workers” is dumb and insensitive.

I referred to the foreigners. — Garth

#121 Derek R on 04.13.13 at 12:11 am

#81 Bottoms_Up on 04.12.13 at 10:43 pm wrote:
I think you should add some definitions on blogger’s too.

Cheers! BU, and thanks for the examples. I’ve considered doing that but there are two reasons why I decided not to.

Firstly, some of these “gentlemen” have big enough egos already without making them even bigger. Talk about a bubble. The last thing they need is to be added to a Hall of Fame!

Secondly, it’s a bit difficult to know where to draw the line. There are lots of regular commenters, some entertaining, some educational, and some just plain interesting. Others less so, of course. We’ve all got our favourites but they’re probably all a bit different. It would be far too difficult for me to decide who should go in and who should be left out. So I don’t.

Sorry if that’s a disappointment but I hope you see my point of view.

#122 jd on 04.13.13 at 12:14 am

RE Diversified Portfolio–what do you think of investments which include Japanese companies? Is Abe’s pump priming working or only short-lived?

#123 AprilNewwest on 04.13.13 at 12:21 am

#102 Chepo – Maintainance of $600 per month??? on a condo worth 150.000. Is that for real? I live in the Lowemainland of bc and condo fees are not anywhere near that high unless one owns a higher end condo perhaps.If I should ever buy a condo I won’t pay more than about 200.000 [lots of decent ones for sale at that price just outside Vancouver ] and the fees will have to be under 300 per mth or I’m not interested. They usually are around that amount for a 2b/r up to about 900 sq ft, give or take.

#124 BramptonSux on 04.13.13 at 12:24 am

“diversify net worth into things like ETFs, have US and international financial assets”

Is it still worthwhile owning international equities despite the non recoverable withholding taxes?

#125 VanPerfecto on 04.13.13 at 12:26 am

Sorry Garth, the RBC story is not going away and is not an insignificant story no matter what the buds tell you at RBC

http://www.cbc.ca/news/canada/british-columbia/story/2013/04/12/bc-rbc-apology-union-business-reaction.html

#126 tim on 04.13.13 at 12:58 am

RBC’s outsourcing — the stuff you don’t hear about affects a lot more than 45 people and it is one of the reasons we have high unemployment. Garth doesn’t want to touch this one, so he doesn’t respond to the fact that the middle class is being hollowed out in large part because of outsourcing.

Hardly. The unemployment rate is 7%. The stupidity rate is far higher. — Garth

#127 Alberta Ed on 04.13.13 at 12:59 am

“While you’re cribbing from Oil Drum don’t neglect their biggest factor for reduced demand – better cars, better mileage. Fail. — Garth”

Not to mention, the Harley…

#128 Timing is Everything on 04.13.13 at 1:06 am

#67 rosie “moving backwards”

A real ‘Royal’ pain in the arse…

http://tinyurl.com/bmv7zxm

#129 CarPicker on 04.13.13 at 1:16 am

No paper money, no plastic money, bitcoin style soon.

http://techland.time.com/2012/04/10/canadian-government-considers-completely-digital-currency/

#130 [email protected] on 04.13.13 at 1:22 am

Garth,

You’ve made some really good predictions on the stock market but your real estate predictions aren’t as accurate. I know the US markets have really taken off since Nov 12. But this remarkable run will not last long as a gloomy outlook is what we see for the global economy.

Also, what happened to the S&P the last 2 times it hit new highs?

#131 Cardboardbarometer on 04.13.13 at 1:23 am

DELETED. This poster is also BANNED.

— Garth

#132 Dean Mason on 04.13.13 at 1:24 am

# 61 To Bottoms Up

If daycare is too expensive it looks it’s better for her to stay home and take care of the children. They could save a great deal of money $1,300-$1,600 per month in day care. Also, they would only need one vehicle because she would not need it for work and driving to and from the daycare center.

The savings of having one less vehicle is huge with gas,insurance,maintenance,repairs,monthly lease or financing payment etc. I believe CAA in 2012 said it cost $927 per month or $11,124 per year to own and operate a vehicle. So $1,600+$927=$2,547 cost of her working and not raising the children at home.

Remember this is net after tax dollars so it is equivalent to about $43,600 per year. If she is making that $43,600 income per year she is basically working for free and can’t raise their children at home.People have to make good financial decisions in their lives or they get nowhere or worse goes backwards like the $2,000 a month in debt they are racking up.

If the average interest rate on all this debt is 5.00% in 5 years it will accumulate to $132,615.15.If there is a large amount of credit card debt it could be much higher at say 10% average interest rate.The 5 years would accumulate to $146,522.40,YIKES!.

I used a $600,000 home as an example but what if they needed say a $475,000 home.The extra $125,000 mortgage,property taxes,utilities,CMHC insurance,home insurance,maintenance,repairs,land transfer tax etc. would be about $917 per month.

Now, they would have $11,044 net after tax more every year which is equivalent to $15,750 in annual gross income. She could raise the kids at home and not be in the rat race paying for an extra car,bigger house thinking that they are getting ahead but actually falling behind and getting into more debt.

They have to make the best financial decisions for their family and be smart consumers,savers and investors.They are spending too much money somewhere and they have to fix it or they will be ruined in less than 5 years.

#133 Mike on 04.13.13 at 1:25 am

Anybody that takes a good hard look at commodities and bond yields can tell you that deflation is coming.
If it wasn’t for the phony financials the TSX would already be nosediving, but the financials just broke support this week and the nosedive is coming.
Chinese data is a joke :) who knows what the hell is going on there, anyways their stock market has been going down and they led the declines in 08 as well, soon enough NA markets will follow them again.
Tech insiders know this and are running for the hills:
http://www.cnbc.com/id/100634578
Look at the 10 yr treasurey Note TNX, welcome to deflation.
The mirage of the FED will soon be over, cash is going to be KING!

#134 Mel on 04.13.13 at 1:29 am

Honestly, it is time for you to stop pushing people to buy stocks. I thought not so long time ago you said that ” I do not own stocks”. If that were so, why are you so excited about stocks these days.

You are telling people to own stocks when they are at their highest. The same thing when you go out and buy overpriced houses. In both cases, you will loose money.

People on this blog should not listen to your financial advice. Perhaps only when it comes to houses, but it is too late for most people. It will be too late for many if they buy Banks shares,……All of us should be holding cash. When the crash comes, you will have the cash to buy from the fools who followed advice to buy stocks.

Lastly, stop telling people that all is well in the USA. It is not, and is in recession already. And yes Garth, Europe will matter. All is just a matter of time.

No sure who peed in your corn flakes, but there is no crash coming, the US is most decidedly not in recession and I have counseled nobody to buy stocks. How can it be so many people on this blog have no idea what a diversified and balanced portfolio is, or how it is constructed over time? — Garth

#135 Charles Ponzi on 04.13.13 at 1:31 am

Garth mocks Sandor for trying to solve his problems with more debt, yet he believes that US will now power ahead economically despite a growing debt problem??? Sandor is obviously not living within his means and the US is no different.

#136 Wilbur on 04.13.13 at 1:40 am

Garth, what is your feeling on porfolio asset weight in Canada and USA? 40 Canadian 60 American?

#137 Kilby on 04.13.13 at 2:28 am

Good post but there should be concern with the auto industries great successes lately as nearly 70% of all new cars are financed for more than 72 months and 40% of all trades are underwater with the balances being tacked onto the new loans…A little auto “bubble” in the making.

#138 groovin_123 on 04.13.13 at 2:34 am

Thank you Jeebus for another easy trade.

Load those GLD calls on Tuesday, once the retail panic is done Monday. Aim for 3 months out with a strike price of $1500. Sell it in a week, or perhaps two.

As for the DOW making new highs. OF COURSE it’d be half of where it is now if it wasn’t for goobermint money printing. But that doesn’t matter. Why? Because they CANT and WILL NOT stop for as long as it works. Japan’s been doing it for 20+ years – although, their time for reckoning is getting close.

Gold bugs aren’t “wrong” they are just way, way too early on the “doomsday trade”. There is still a wad of time to ride the phony paper printing wave.

This won’t get ugly for some time. This is THE last hurrah of the credit expansion so enjoy it. Don’t ever wish for doomsday, you don’t want it.

#139 Charles Ponzi on 04.13.13 at 2:52 am

The stock market is fickle and can change direction quickly. Not a problem if you have lots of money that you can afford to lose or the time to rebuild what has been lost. The reality is that most young people don’t have loads of money to invest and the baby boomers don’t have time on their side should they lose a substantial part of their savings.

Yes, go ahead and mock others but don’t expect much sympathy from me when your stocks crash. As far as not betting against America–no superpower is invincible to changes in fortune. Canadians should be familiar with the fate of the British Empire and the two world wars that followed its decline.

#140 Charles Ponzi on 04.13.13 at 2:52 am

We have seen green shoots quickly whither and die in America before and I don’t see how this time will be any different. Things won’t get better until everyone learns the hard way that d-e-b-t is a dirty and dangerous four letter word that is more likely to lead us into war than economic recovery.

#141 Scott in Gibsons on 04.13.13 at 2:59 am

I’m struggling for a metaphor for Garth’s optimism about the US economy……………

At some point during the Titanic sinking the stern broke away and seemed to right itself; Garth is telling us to climb aboard the stern and all will be well. This appears to be good advice in the long term the US economy is doomed by its need for exponentially larger borrowing needs to stay afloat. Its a mathematical certainty that exponential growth in anything must stop eventually; and when it does, what does the US economy look like?

#142 Long Time Reader on 04.13.13 at 2:59 am

>While you’re cribbing from Oil Drum don’t neglect their biggest factor for reduced demand – better cars, better mileage. Fail. — Garth

http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=A123600001&f=M
Wrong, Garth. Fewer miles traveled. People don’t have jobs, therefore they don’t have to drive anywhere.
Can you seriously lay off that krugmanite nonsense?

#143 betamax on 04.13.13 at 3:03 am

Many of my colleagues at work (in Van) make almost 6 figures; many are married making six figures plus in total – and none of them have any money. They’re all indebted to the gills trying to live a middle-class lifestyle they can ill afford. It’s crazy out there.

#144 Devore on 04.13.13 at 3:37 am

#64 ChickenLittle

Let’s not make this one of those “I’m smarter than you” blogs, even though it already is.

There will be plenty of that, to be sure.

But the bottom line remains. There has ALWAYS been pressure on middle- and lower-class family budgets. Always. This generation is not different. They do not have it harder. You can’t tell me with combined income of $110k they can’t make ends meet. That they’re screwed. Hopeless. Median household income in Canada is a bit over $70k. Higher in Ontario. And these people can’t make it on $110? I wonder how people making less than median (that’s 50% of all households) get by, must be eating cat food.

Actually, this generation IS different. Garth took a swing at it. The expectations are different. I hesitate to say “entitlement”. Such a charged word. People need to start living the life they can actually afford, not one they believe they deserve.

It is understandable with a new house and new baby things are tight. But not to the tune of $2000 a month. Where is that money coming from? What would their life look like if a bank wasn’t standing behind them throwing a bag of money every month?

#145 Buy? Curious? on 04.13.13 at 3:53 am

Gold down, real estate down? I think in a few months, it’s time to go shopping! What’s that expression about stocks, “Sell in May and go gay.”? Bay Street, I’m looking at you.

http://www.youtube.com/watch?v=z0S8bAjTZsk

#146 Freedom First on 04.13.13 at 3:56 am

Sandor and wife. Excellent example of what is going on in Canada. There is no excuse for them being in their situation. Even worse than their situation, is the solution they have come up with to try and get out of the situation they have placed themselves.
I am finding out more and more from people sharing their problems with me, just how many young couples are in the same situation as Sandor and wife with nice name. As Garth has mentioned numerous times, I am seeing first hand just how many parents are “helping” the many Sandors and wives out there, bankrolling them in too many ways to even start listing them, and usually by parents who are sabotaging their own financial well being by doing so.
There is a difference between: helping, enabling, and being a caretaker. Garth’s advice to S&W with nice name, is what is called helping. When people enable, or act as caretakers, everybody gets hurt. It does not work. No exception.

#147 Small Town Steve on 04.13.13 at 4:08 am

To all the whining babies crying about outsourcing and every other puddly feel good MSM bank/corporation/blame capitalism/blame everything and everyone but themselves for their shortcomings negativity is the normal state of being kind if people.

The world does not owe you a living. You have the right to seek one but that is no guarantee that you will be successful. Nothing and no one can stop you from earning a living if you want one you have the same right to try as everyone else. Yes there are tools (like your often neglected and under used brain coupled with a sense of entitlement but it is up to you to actually use it).

Nothing is stopping you from success but yourself. Anything worthwhile often takes work. Sometimes more work than the average pooch pounder is willing to do.

News flash this just in:
A company’s main responsibility is to it’s SHAREHOLDERS!! Not me, not you not the starving children in Africa. (Unless you are of course a shareholder too.)
A company produces and trades value for value to it’s customers regardless of that company’s size that is it’s function. It does it in a way to maximize PROFITS.
If you work for a company you enter into a voluntary agreement to trade mutually agreed upon value for value. A good company invests in its people. A good employee/subcontractor etc in order to provide value should strive to increase his or her skills so as to continually increase his or her value to the company in a mutually beneficial way. If you do not then how can you expect to receive increased wages if you become an ever decreasing value or even a burden??!! This is fact, this is reality. To those that evade or blame every one and everything but themselves(ignoring self reliance and self responsibility) do not be surprised when reality asserts itself and Texas curb stomps you into the ground because you were too busy being irresponsible. “It is different here” is just one of many ways people avoid reality.
As Garth had pointed out in so many ways 70% of Canadians are homeowners. I believe only about 20% should be. CMHC is just our version of Fanny and Freddy. We all saw what happened down South and most deluded themselves into thinking “it is different here” and “our banks are more responsible”. Well of course they are going to take risk free money when the government is going to back a loan that would never in a million years be granted. Do not blame the banks! Blame government interference.

Reality is that if sanity is to be returned after this long slow melt a change is needed to the way banks do things. A removal of limited liability would be one step.
A return to SOUND conservative lending practices would be a result. Not only should a bank and it’s managers have liability for unsound lending practices but it’s shareholders should be fined by a negative dividend. Sounds backwards but the result would be no mortgages issued without a minimum 40-50% down payment and a 10-12% interest rate depending on the length if the mortgage. Think many people would default if they had a 50% stake in their home from the first day?
Think there would ever be a housing bubble ever again?

Well that’s enough from me for now…

#148 Alliston Anti-Guru on 04.13.13 at 5:46 am

I never understand why the 99% come out and bash a program to keep it simple, balanced and diversified. The wealthy put their money in the stock market for income and capital appreciation, not to “get rich quick”

A good stable source of income from your “time in the market” NOT speculating on commodities.

#149 Devore on 04.13.13 at 6:21 am

Actually it’s because extraction from shale rock formations in North Dakota and Texas have put the US on track to surpass record domestic crude output. But enjoy your fantasy. — Garth

Science and facts? On my internet? Now back to trolling and astroturfing.

#150 detalumis on 04.13.13 at 7:17 am

#112 Get a grip Garth, there are a lot more than 45 employees that have been outsourced, I was outsourced 3 years ago and this has been going on since 2005. I would estimate close to 1,000 good paying jobs that have been removed from the Canadian economy just in IT at one company i.e. good paying private sector jobs. IT has been decimated in this country. All the other banks have done the same thing as well as Loblaws and Canadian Tire. They also outsource functions like HR itself (just not the VEE PEE jobs) – net result lower wages, fewer benefits.

Wages today in many private sector jobs like IT are ratcheting downwards paying less than they did 10 years ago. Countries like India have low paid teachers, police and nurses and no social safety nets. That is the future of this country if we continue on this path.

You sir need to look farther than the braggarts that post here everyday, all of them making 6 figures with babe girlfriends and selling gold at the peak just in the nick of time. The reality is that this country really is cannibalizing itself for short-term profit.

I regret your job loss, but it’s a manifestation of exactly what I have been saying. The world has changed, and is not changing back. Globalization will not be reversed. — Garth

#151 David W on 04.13.13 at 7:40 am

Living within or below your means is key here. Wife and i put away $2.5k each month or 40% of our after tax income. We’re comfortable and still buy and do things we like. the thing is, we rent and haven’t ever bought a brand new car (just gently used).

The thing is, no1 taught me how to invest. Garth, or anyone for that matter, any advice regarding what institution I should go with (or online so I can do it myself) to start investing?

#152 Raven on 04.13.13 at 7:55 am

I concur with your analogy of the US resurgence. But, “2013 housing starts will match the boom year of 2007”
This may be a bit of a leap of faith. The US new home market is only at approximately half of the 1.5 million homes that were being built in 2007.

Canadians using their HELOC’s to put down payments on sand belt homes constitute 25% of all current sales in the US. What will happen when Canadian home prices fall and people here lose their jobs? May effect a flattening of US prices. Exchange rate disparity may help if the Can. Dollars swoons on economic hardship.

Difficult at best to assess the health of the overall US housing market as traditional first time home buyers are replaced by Hedgefunds and income property speculators. Affordability indexes still show that rent vs ownership may allow for a small correction in price appreciation if foreign buyers or funds slow their US home purchases.

Although my own opinion, it may also be the greatest deception men suffer from, their own opinion!

US builders will start 970,000 houses this year, up from 780,600 in 2012 and the most since 2007. I don’t just make this stuff up. — Garth

#153 EIT on 04.13.13 at 8:09 am

Apparently The word is that bitcoin crashed because of lack of infrastructure. Does anybody else find this incredibly ironic.

#154 AisA on 04.13.13 at 8:52 am

MMM tasty, the whole world is living in debt la la land. The temperature was slowly rising, just enough for the indebted to not notice the change. The beast is never satisfied, there is room for everyone, hurry hurry, jump into the pot. Soon as the pot starts to bubble, the lid will be clamped down on top of it.

Or …….. you can stop pretending that the pile of sticks you want so badly (that sells for 100k just south of the border) is worth half a million.

#155 T.O. Bubble Boy on 04.13.13 at 8:56 am

@ #124 BramptonSux on 04.13.13 at 12:24 am
“diversify net worth into things like ETFs, have US and international financial assets”

Is it still worthwhile owning international equities despite the non recoverable withholding taxes?
—————-

The withholding is on dividend payments, not capital gains. If you’re worried about losing say 15% on a 3% yield, you’re missing the point. Dividend-paying emerging market ETFs (for example DGS) have gained far more than the 2%-3% yield they pay. International Fundamental/Value ETFs like CIE on the TSX have also gained far more than what they yield.

FYI – you can also look to DRIP certain ETFs to avoid dividend payments altogether (and just keep increasing the # of units that you hold).

#156 Linda Mulligan on 04.13.13 at 9:18 am

I find some of the figures being thrown around mind boggling – like $1,000 mo for 2 adults, 1 baby for food. My husband & I eat extremely well & spend about $650 per month (by extremely well I mean rack of lamb, organic beef tenderloin, bison, pheasant, halibut – no kraft dinner here) & no, we don’t own a farm & raise our own meat. However we do cook & our brown bag lunches to work every day include all the food mentioned above & more besides. I’m with those commenters who point out eating out at work plus coffee can cost $20 or more per day. Do the math – 2 adults working, $10 per day each for food, 5 working days per week. That is $100 per week or $5,200 per year & good luck with spending ‘only’ $10 for your food/coffee etc every day. Then times that by 25 years which most people work before retiring & you have $130,000. IF you are spending $20 per day then that figure jumps to $260,000 & I’d say $20 per day is more in line with what people spend on lunch/coffee out these days. So if the semi cost $750K that is better than one third the purchase price ‘saved’ just by cooking your own food & bringing a thermos of coffee to work every day!

#157 Tony on 04.13.13 at 9:32 am

Re: #8 Godth on 04.12.13 at 8:33 pm

Your friends will be living at the food banks and begging for change soon as all their quote investment money fades into the great beyond. I thought the people who bought stock before the ’29 crash were stupid the people buying today will at least make them look a lot less stupid.

#158 Ralph Cramdown on 04.13.13 at 9:37 am

#150 detalumis

You sound like the second coming of Ross Perot. It isn’t just this country that is “cannibalizing itself for short term profits,” that’s what capitalism has been all about since mechanization and the industrial revolution. It isn’t changing. To ensure that you’re not outsourced, you need a skill that either requires physical presence or you need to be value added — part of a company’s profits rather than its overhead.

#159 renting and waiting no more on 04.13.13 at 9:43 am

Smalltown Steve,

that argument is done and over with. I’m sure you can’t tell, but when you make it you sound like those old jokes: “I walked to school barefoot, uphill both ways!” Or like the teacher on Charlie Brown, wah wah wah.

The sentiment that everyone needs to get in the ‘game’ reveals you willingness to close your eyes and go along with the system that is eating people up and spitting them out. the admonishment that corporations are responsible to SHAREHOLDERS (your yelling, not mine) is pretty much precisely what the new generation knows and is disgusted by. It is clearly the problem.

I don’t know if your old and set in your ways or if you’re brainwashed, or if you’ve got they type of job that makes you hurt people every day and so long ago you chose monetary reward over personal integrity, but something black has happened to you.

I’m going to give you your own advice: get in the new game or be left behind by society.

#160 renting and waiting no more on 04.13.13 at 9:45 am

“I regret your job loss, but it’s a manifestation of exactly what I have been saying. The world has changed, and is not changing back. Globalization will not be reversed. — Garth”

really? You regret this person’s job loss? What if he was an employee of a company who got to pay a few cents higher return to their investors because they offshored, though? Would that make you regret it less?

Stupid question. I work daily to assist people. And you? — Garth

#161 Ralph Cramdown on 04.13.13 at 9:46 am

#141 Scott in Gibsons — ” in the long term the US economy is doomed by its need for exponentially larger borrowing needs to stay afloat.”

My granddad used to tell me about a time when the US ran surpluses. They still had debt, but the economy was growing and they were paying it down. A man by the name of William Jefferson Clinton was in the White House.

#162 Mr Buyer on 04.13.13 at 10:02 am

Entitlement. That is the root of the problem? I think not. In fact I think it is a lack of effective response to the systematic stripping of entitlements that has brought us to the point where 110k cannot support a family. Canadian pricing systemically set 15% higher by multinationals (yes the same multinationals the evolved from our largely unchallenged headlong dive into globalization). If there was and is a problem with entitlement it largely lies with the 1% that feels it is entitled to concentrate wealth in their ranks to such a degree. Pretending that suckers such as myself have any real hope of providing even a passable existence to our children under this continually increasing slope in the playing field is simply not reporting all the facts. I can say wholeheartedly that the social contract has been at BEST unilaterally renegotiated. Looking out my mid-April ice covered window in my rental unit here in Canada and seeing huge sums of cash get consumed daily simply eating at home I can tell you fear is upon me. Entitlement my eye, more like degradation.
PS.
We have recently arrived here in Canada, from Japan for a one year period within which my children will be learning English and I will be working on an MSc.

#163 The Man From Nantucket on 04.13.13 at 10:07 am

#132 Dean Mason on 04.13.13 at 1:24 am
………….
Remember this is net after tax dollars so it is equivalent to about $43,600 per year. If she is making that $43,600 income per year she is basically working for free and can’t raise their children at home……..

Struggled through the same decision with the wife.

We’d love to have an extra $40, 50, 60K whatever coming in.

When we looked at the cold hard reality, we came to a similarly ridiculous “break even” point. The only difference is I was looking at day care for two pre-schoolers.

To me, unless there’s years of contributions towards a good pension plan at stake, you’re probably better off to refute the myth of the two income household.

#164 The American on 04.13.13 at 10:13 am

I’m totally cracking up. For those struggling to understand Garth, meaning those in denial, you should continue on your path and let us all know how that works out for you 1 year, 2 years, 5 years down the road. The U.S. is back and cooking like mad, regardless how much you’d like to deny it. Facts are the U.S. economy and the USD are, once again, viewed as the safe haven for investors. Sorry to those who want to deny it and continue being idiots. It is a fact. And, as I said, Bitcoins is a joke… no safe haven there, unless you’re some whack job crazy who thinks a currency based in nothing, a feeling, is at all is safer than the USD (despite printing, the USD has much to back it up). Yep, 19 million people out of work, 14.83% (46.37 million people, or 22.4 million households) of the population receiving food stamps (normally, it is about 9%), and there’s definitely room for improvement. Well, give it some time as it is improving without question. People are, once again, spending. They’re spending not only in the stores, but buying stocks, real assets including homes and cars, etc. That is actually great news for a consumption-based economy, unlike in Canada where it is a commodity-based economy. And, as for the U.S. producing more of its own oil, that trend is only going to continue. The U.S. will be at or near 100% energy independence by 2020, and that’s a fact. That won’t bode well for Canada whatsoever as the U.S. is Canada’s largest trading partner in terms of imports into Canada (the U.S. provides 50.37% of Canada’s aggregated imports), not the other way around (so often I hear many of you say that Canada is the U.S. largest trading partner in terms of U.S. imports, and nothing could be further from the truth. China wins in this category). Watch for that trend to continue as the U.S. need for Canadian oil is only going to move downward. Believe it or not, the largest oil reserves AND natural gas reserves in the world are sitting not only in North America, but underneath U.S. soil itself.

#165 rosie on 04.13.13 at 10:33 am

Looks like a B.C. labour group might need a financial advisor. They may diversify out of banks. Saner heads? http://www.huffingtonpost.ca/2013/04/13/rbc-foreign-workers_n_3073989.html?utm_hp_ref=canada

#166 jess on 04.13.13 at 10:37 am

the world has changed indeed!

retained ,contained swiped ,faked, lost, where does it go and where does it end up does anyone know

transparency and accountability can be powerful motivators for changed behavior and demands for more scrutiny.

http://www.publicintegrity.org/2013/04/12/12488/continuing-our-investigation-trillion-dollar-world-offshore-tax-havens?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+publici_rss+(The+Center+for+Public+Integrity+Latest+Stories)

An anonymously written note – first spotted by the North Korea Tech blog — makes the claim, and discloses what are said to be six sample user records for the site, which is run out of China.

The posting, which is in English, boldly demands that Kim Jong-un resigns and installs free democracy in the country. It also calls on the country to stop its commitment to nuclear weapons and introduce universal Internet access for its citizens. According to the note, the hacker/hackers have access to the country’s local intranets, mail servers and Web servers and are promising to wreak more havoc later this month as part of the Anonymous #OpFreeKorea campaign.

“First we gonna wipe your data, then we gonna wipe your badass dictatorship ‘government’”, the statement says.
================
As a protest against his support for the increasing use of biometric data, the hacker group Chaos Computer Club published one of Schaeuble’s fingerprints in the March 2008 edition of its magazine Datenschleuder. The magazine also included the print on a film that readers could use to fool fingerprint readers.[11wiki

Hackers Could Use Electric Vehicle Charging Stations to Cripple grid
Researchers Show How a Car’s Electronics Can Be Taken Over Remotely …

#167 Tailchaser on 04.13.13 at 10:46 am

Part of my job right now is working with companies to help them outsources their HR, Payroll and benefit functions to India. The big banks in a Canada are just a couple of our big name clients. It would be one thing if the quality of e services was up to pat and I really thought this outsourcing was saving any money. I spend so much time on the phone trying to get basic tasks completed, that it hardly seems profitable. I am miserable about doing this for a living and am looking for other work.

#168 Derek R on 04.13.13 at 10:46 am

#135 Charles Ponzi on 04.13.13 at 1:31 am wrote:
Garth mocks Sandor for trying to solve his problems with more debt, yet he believes that US will now power ahead economically despite a growing debt problem??? Sandor is obviously not living within his means and the US is no different.

Two big differences between Sandor and the US. First Sandor isn’t allowed to print his own money; the US is. Second Sandor doesn’t have a bunch of unemployed people he could set to work; the US does.

That’s why Sandor is in big trouble; the US isn’t.

#169 Richard in Kelowna on 04.13.13 at 10:52 am

Too bad the precious metals sector doesn’t enjoy the support and benefit the Working Group on Financial Markets provides the US stock markets.

http://www.archives.gov/federal-register/codification/executive-order/12631.html

#170 Doug in London on 04.13.13 at 10:53 am

I’ve been following this blog for about 3 years now. From the start I figured housing in Canada was in a housing bubble, except for a few economically depressed areas. It seemed like a no brainer to a 52 year old like me, who has seen housing and other assets go into a bubble then go bust in the past. What I didn’t understand was how bad some people’s finances are. What been posted here is a real eye opener if what’s going on. It defies intuition, as I could see people in a poor third world country being in such a situation but not in a wealthy country like Canada. Well it’s not all doom and gloom, look on the bright side. According to some self proclaimed “experts”, there will be a labour shortage when the Boomers all retire. If their finances are that bad, most won’t be retiring any time soon. Personally I never bought into that idea, and have more faith in the Trailer Park Boys than the clowns who made those predictions.

As for Sandor and family, they should have never bought a house in the first place if they can’t maintain payments and save some money for contingencies. They should, as another commenter said, look at http://www.mrmoneymustache.com for advice on living more efficiently. You should be able to live better than they do on 110 grand, even in the expensive GTA.

#171 Al Bundy on 04.13.13 at 10:58 am

#151 David W on 04.13.13 at 7:40 am
… any advice regarding what institution I should go with (or online so I can do it myself) to start investing?

I have experience with a few online stock trading brokers – TD waterhouse and Questrade. Both were highly rated, and for simple investing, both filled my needs just fine. Questrade is cheaper per trade at $9.99 max, while TD waterhouse is $29.99 if you have less than $50K invested through them.

Good luck and do your research before picking stocks/etfs.

#172 ChickenLittle on 04.13.13 at 11:18 am

#90 Retired WI Boomer

“Does the company match your savings? If yes, start there, at least up to the match, hell it is “free” money.”

No offense, but your generation had it good if your company matched your savings. This is unheard of now. NO ONE I know gets this perk! Heck, not many people even get a bonus at the end of the year.
Don’t compare us to you.

“You can’t put new wine into old wineskins.” Jesus

Amen to that! You can’t tell boomers that job perks no longer exist. Our reality is very different than your was.

#173 ChickenLittle on 04.13.13 at 11:22 am

Mind you, before I went to school I saved up $8000 in one summer for my school expenses, but I do not have a baby. So it is possible, but then again I rent… :)

#174 Ralph Cramdown on 04.13.13 at 11:29 am

#162 Mr Buyer — “I think [the root of the problem] is a lack of effective response to the systematic stripping of entitlements that has brought us to the point where 110k cannot support a family. […] If there was and is a problem with entitlement it largely lies with the 1% that feels it is entitled to concentrate wealth in their ranks to such a degree. […] I can say wholeheartedly that the social contract has been at BEST unilaterally renegotiated.”

First off, $110k is still lots of money to raise a small family on and save besides. I don’t see the 1% generally as a homogeneous group except perhaps at Republican fundraisers. Most of them are simply hard working individuals who’ve made their money work just as hard as they have. I doubt I’ll ever get into that group, but getting into the top 10% by assets ought to be easily achievable by anyone born without cognitive impairment and raised in a decent home, in this spendthrift society of ours.

North America enjoyed a few decades of glory after Europe and developed Asia had been bombed flat and the rest of Asia were illiterate subsistence farmers. No longer. Now everybody’s working hard. A lot of people are working hard to convince other people who can’t really afford it that they need and deserve two $30,000 cars, a $600,000 home, a $300/month telecom package and a barista who makes it their way. In a nation of price takers, this works surprisingly often. But throughout most of human history, most people spent all they had and some spent even more, with only a small fraction actually accumulating wealth.

Has the social contract been unilaterally renegotiated from where it was a few decades ago? Absolutely, but that’s because labour hasn’t shown up at the table, except in the public sector. I can understand how auto plant workers face little choice between reduced real compensation watching the work go to Mexico, but my mind boggled watching the individual unions at Air Canada and the railroads allow themselves to be picked off, and watching half of America’s vast middle class vote for Mitt Romney because they didn’t realize that when he talked about cutting entitlements to poor people, he was talking about them.

#175 Ralph Cramdown on 04.13.13 at 11:32 am

Am I the only person who’s starting to suspect that bitcoin was invented by the gold cabal to make their preferred store of value look safe, stable and sane by comparison? NUTS IN THE GUTS!

#176 Stoopid Idiot on 04.13.13 at 11:33 am

AKA Dr.Wayne

Last time this happened, Oil was trading under $10.00 a barrel. Where will it be this time around?

===========

You have no basic understanding of economics do you? When was oil last $10.00 a barrel and at that time what was the average price of milk?

Name me one oil company that can turn a profit at $10.00/BBL ?

#177 Fed-up on 04.13.13 at 11:36 am

I can be such an ass. I was making a deposit at the ATM yesterday and noticed 4 ATM receipts left on top of the counter and couldn’t resist to take a peak. All were $300-$600 withdrawals with “balances” of -$11500, -$6600, -$4800 and get this one…-$174000. Just rounding off the numbers.

I know you shouldn’t keep much in the bank but I seriously doubt any of these fine Canadians had a dime to invest with bank balances like those.

#178 INTERESTING TIMES on 04.13.13 at 11:36 am

TOO LATE, the 50% RE Crash has started in Canada already.

Read and learn HGTV virgins as all is not well in Canada, US, Europe & Asia.

Get out there and start low balling the Realtards by 50% on any home you desire.

Canada’s RE only went up this high in order to bankrupt you the Middle Class and there Baby Boomer Parents (Look at want happened to the folks in the USA, Europe and China’s empty Cities).

If it was not for all the FREE MONEY given out by the banksters and your CON government with 0 down, 40 year, then 35 year mortgages, bailing out CDN banks with 150 billion on the back of CHMC taxpayers we would have had our crash 3 years ago. A nice 50% off.

Unfortunately, there is no more FREE MONEY for all the HGTV Virgins to hang themselves with this Ponzi Scam and the piper has to be paid.

Start low balling RE my virgins as all is not well in Canada and around the world.

Garth Turner is being very gentle with all you virgins calling for a 15% crash only. Also he is correct that you should not have all your egg’s in one basket and be leverage like 75% of the HGTV RE virgins are today.

Tough Times Coming for many so please prepare and educate yourselves!!!

READ AND LEARN, what is going on around you!!!

http://www.telegraph.co.uk/finance/financialcrisis/9990651/Portugals-elder-statesman-calls-for-Argentine-style-default.html

http://www.theglobeandmail.com/report-on-business/economy/us-retail-sales-hint-at-flagging-economic-momentum/article11126842/

http://www.theglobeandmail.com/report-on-business/economy/jobs/temporary-foreign-worker-program-twists-labour-market-economists/article11172991/

http://www.theglobeandmail.com/report-on-business/economy/lagging-investment-a-threat-to-canadian-auto-industry/article11167942/

http://business.financialpost.com/2013/04/12/cyprus-now-needs-a-bail-out-thats-bigger-than-its-economy/

http://business.financialpost.com/2013/04/12/cyprus-now-needs-a-bail-out-thats-bigger-than-its-economy/

http://www.telegraph.co.uk/finance/financialcrisis/9988358/Cyprus-bailout-cost-surges-to-23bn.html

http://www.theglobeandmail.com/report-on-business/international-business/european-business/greek-jobless-rate-hits-record-tops-27/article11046286/

http://www.theglobeandmail.com/report-on-business/international-business/european-business/greek-jobless-rate-hits-record-tops-27/article11046286/

http://www.theglobeandmail.com/news/national/passport-office-plans-25-staff-cut-as-it-rolls-out-new-chip-embedded-10-year-documents/article10976495/

http://business.financialpost.com/2013/04/10/toronto-condo-kings-retreat-to-avert-property-hard-landing/?__lsa=d00c-1bb6

http://www.thestar.com/news/queenspark/2013/04/09/tim_hudak_lays_out_his_vision_for_ontario_at_fundraiser.html

#179 Small Town Steve on 04.13.13 at 11:37 am

#159
I don’t know if your old and set in your ways or if you’re brainwashed, or if you’ve got they type of job that makes you hurt people every day and so long ago you chose monetary reward over personal integrity, but something black has happened to you.
——————————————————————-
I have a specialized job, it pays well, I also work 90-100 hours a week. I hurt no one, my job actually prevents deaths. I am in my forties. I also know what it is like to eat Kraft dinner and hamburger 5days a week because that was all that was in the budget during hard times.
I have a strong work ethic and my services are invaluable to who I collect my cheque from. It happens when you strive to be the best that you possibly can be.

So I am black hearted because I prepare for the worse? I have a family, they are my responsibility to look after them. I owe collective society nothing. I got to were I am because I have integrity not because I clawed my way to the top at the expense of anyone, but by my own merit.

Just stop blaming capitalism for societies problems. We do not actually have capitalism. We have a mixture of socialism with just enough capitalism thrown in to avoid tall poppy syndrome, of which only 200000 seem to have avoided.
Nothing wrong with socialism, great system until you run out of other people’s money.(I believe the Iron Lady coined that phrase.)

Btw..no need to shoot the messenger

P.S. I believe I may have mentioned this in a post once before.
You get the government you deserve.

#180 AK on 04.13.13 at 11:41 am

#164 The American on 04.13.13 at 10:13 am
“The U.S. will be at or near 100% energy independence by 2020, and that’s a fact.”
——————————————————————–
By 2020? I would say that it’s going to happen by the end of 2016.
I still can’t believe the number of companies that are trding below their tangible book value on the S&P 500.
To the Canadians that like to take advantage of the “Withholding Tax”, then TD is your best bet to take advantage of the ongoing U.S. boom.

#181 AK on 04.13.13 at 11:49 am

#157 Tony on 04.13.13 at 9:32 am
” I thought the people who bought stock before the ’29 crash were stupid the people buying today will at least make them look a lot less stupid.”
——————————————————————-
Hey Tony. Thanks for the laugh, Bud. :-)

#182 jess on 04.13.13 at 11:50 am

your title today aptly describes this scandal :
which is still ongoing today

http://en.wikipedia.org/wiki/Firepower_International
Firepower International was advertised as a Hong Kong-based company owned and operated by Global Fuel Technologies Ltd, specializing in technology purporting to reduce the fuel consumption and environmental impact of petrol-operated vehicles.[1] There were other offices in Sydney, China, Rhodes, Athens and Papua New Guinea, according to the now-defunct official company website. But “in reality it was a handful of people in an industrial estate in Perth”, who were conducting a complex of fraudulent operations.[2] The original entity—Firepower Operations Pty Ltd—was a $1 company, first registered in December 2004, owned by Firepower Holdings Group Ltd, a company with an address in the British Virgin Islands.[3]

Through connections created with gullible Australian federal ministers, trade officials and their networks, the governments of Britain, Russia, Romania and many others were persuaded to believe Firepower offered important solutions to global warming and the peak oil energy crisis.[4] However, after questions were raised about the efficacy of the ‘Firepower Pill’ and related products in reducing engine fuel consumption, the Firepower organisation’s principal, Timothy Francis (Tim) Johnston, was claimed by media critics to have perpetrated a large-scale confidence trick or scam, the subject of investigation by the Australian Securities and Investments Commission (ASIC).[5][6] In July 2011, ASIC banned Johnston from managing any company for twenty years.[7][8]

#183 Mr. Monday Night on 04.13.13 at 11:51 am

This blog is particularly nasty today to poor Sandor et al. Not helpful.

Sandor is one of many who have made poor choices financially, but at least give him credit for reaching out for help. Laying out one’s financial situation and shortcomings is one of the most difficult things to do. There are plenty of Sandors out there who are still living in denial but are too afraid of admitting it for fear of being shunned by the herd.

Folks need to understand that there while people mostly did it to themselves, there was a huge machine at work to ensure that people like Sandor bought into the culture of entitlement, that debt was the answer to fulfill dreams. This machine is still at work in the form of Scotiabank commercials, HGTV and cheap debt. I’m certain that Sandor has friends and family who have achieved certain successes (real or debt financed) and feels pressured to keep up or be left behind.

I am one of those people who wasted their twenties racking up debt to keep up and is now hunkered down in my thirties paying it off so I’m not forced to eat cat food in retirement. I also have many friends who racked it up only to suffer a sudden job loss or divorce and find themselves totally screwed. I don’t think HGTV or Scotiabank have a show or commercial for that. I can remember a few years ago when a few colleagues lambasted me for not getting in to the zero down, 40-year mortgages. Most are divorced now and heavily leveraged in properties they cannot get rid of. They have my sympathy, not my contempt.

I tip my hat to the arrogant 0.5% of you who claim to be able to save $2.5K / month and are incredulous that most of us peasants can’t do the same (I call BS, David W). The majority of Canadians are barely keeping their heads above water and are one small slip away from a major catastrophe but are afraid to admit it.

#184 HAWK on 04.13.13 at 11:55 am

#129 CarPicker on 04.13.13 at 1:16 am

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

LOL – A sign of the times, the ever expanding power of Big Brother over the sheeple, a digital currency of bits and bites, no need to engage in the cumbersome task of printing paper

It reminds me of the scene from Star Wars when the Sith Lord, anoints Darth Vader and ends a long speech with the words ………”in time to come you will call me MASTER”.

#185 AK on 04.13.13 at 11:55 am

#155 T.O. Bubble Boy on 04.13.13 at 8:56 am
“The withholding is on dividend payments, not capital gains. If you’re worried about losing say 15% on a 3% yield, you’re missing the point. Dividend-paying emerging market ETFs (for example DGS) have gained far more than the 2%-3% yield they pay. International Fundamental/Value ETFs like CIE on the TSX have also gained far more than what they yield.”
——————————————————————–
You are spot on.

I believe that there are some shady financial advisors that are throwing their clients in Canadian only investments, and they are using the bullshit tax credit tactic as a selling tool.

#186 DreamingInTechnicolour on 04.13.13 at 11:59 am

We need to stay in reality and not get sucked in by those who don’t want to take off rose colored glasses & face facts – the US could not pay its bills if their outstanding loans were to get called by foreign gov’ts- the end result will not be much different than when millions of families lost everything in the US housing crash. The institutional investors are simply trading back and forth amongst themselves and propping up the US stock market in order to keep the pension plans and mutual funds they manage on on life support for a while longer- not the 50% of Americans on some sort of social assistance, or the tens of millions more who are letting go of their employees, closing up their businesses and retiring across the US. Watch out for stagflation and lots of people out of work and out of money. Watch where the stock market heads then.

No major western country can pay sovereign debt. The key is servicing it and debt size relative to GDP. You are talking through your sock. — Garth

#187 Loopback on 04.13.13 at 12:05 pm

You forgot to mention the not so minor fact of out-of-control U.S. deficit spending which pumps short-term liquidity, fuelling renaissance bubbles. The resultant U.S. debt presently surpassing 100% of GDP [see St. Louis Fed paper]. If it wasn’t Bernanke Fed directly inflating asset markets the U.S. would be toast – it’s a false renaissance.

#188 AK on 04.13.13 at 12:06 pm

#148 Alliston Anti-Guru on 04.13.13 at 5:46 am
“I never understand why the 99% come out and bash a program to keep it simple, balanced and diversified. The wealthy put their money in the stock market for income and capital appreciation, not to “get rich quick”’
——————————————————————-
It’s the reason why 1% controls 40% of the wealth.

http://www.henrymakow.com/stiglitz.html

#189 renting and waiting no more on 04.13.13 at 12:08 pm

““I regret your job loss, but it’s a manifestation of exactly what I have been saying. The world has changed, and is not changing back. Globalization will not be reversed. — Garth”

really? You regret this person’s job loss? What if he was an employee of a company who got to pay a few cents higher return to their investors because they offshored, though? Would that make you regret it less?

Stupid question. I work daily to assist people. And you? — Garth”

I make the world more beautiful through my work, and I speak up for those who have a hard time speaking for themselves. I walk the talk. (not saying you don’t, but your talk is kinda selfish and meaningless regarding the path to personal freedom)

And.. you didn’t answer the question. Is it okay for this person to have lost their job if it means a greater return for the corporation and (sometimes) the shareholders?

#190 HAWK on 04.13.13 at 12:11 pm

#159 renting and waiting no more on 04.13.13 at 9:43 am

I read Small town Steve’s post, and your response to it with interest. My position is somewhat half way between the two :-)

Steve, basically is correct that large corporations have a duty to their shareholders. The government however does not, it has a duty to the citizenry of the land. And there is no reason why corporations should have the best of both worlds (i.e. produce overseas and sell in N. America) at the expense of the average citizen.

Capitalism is necessary for a society and the forces of demand and supply should govern the market place, but it should be within the nation state. There isn’t an obligation on the part of any nation state to either the world or to corporations, only it’s citizenry.

My belief is that’s the balance that has been lost and should be regained and sustained.

In a world with trade barriers we would have a far lower standard of living. You can’t suck and blow either. — Garth

#191 Raven on 04.13.13 at 12:11 pm

Reply #152

” Builders will start 970,000 thousand homes this year, up from 780,600 in 2012, the most since 2008. I don’t just make this stuff up. – Garth

I do agree with your statement but in your story you said that 2013 housing starts would equal 2007 starts. The starts were highest in April 2007 at 1,487,000 on an annualized basis. I think that call was a bit of a stretch. At least I would hope, or we could be forming another bubble in US housing.

It is easier to reset at the beginning than at the end!

The statement is totally correct. — Garth

#192 Richard in Kelowna on 04.13.13 at 12:11 pm

Any particular reason you declined this post: ?

“Too bad the precious metals sector doesn’t enjoy the support and benefit the Working Group on Financial Markets provides the US stock markets.

http://www.archives.gov/federal-register/codification/executive-order/12631.html

I didn’t. — Garth

#193 AK on 04.13.13 at 12:19 pm

#171 Stoopid Idiot on 04.13.13 at 11:33 am
“When was oil last $10.00 a barrel and at that time what was the average price of milk?”
——————————————————————–
Here you go, A$$HOLE.

1999

January….. $9.86 July…… $17.43
February… $9.30 August $18.55
March…… $12.05 September $20.94
April…….. $14.60 October $19.93
May……… $15.17 November $22.26
June…….. $15.24 December $23.33
Yearly Average $16.55

http://www.ioga.com/Special/crudeoil_Hist.htm

#194 Figmund Sreaud on 04.13.13 at 12:26 pm

“…the US is producing more of its own oil (sorry Calgary) than it’s importing.”
__________________________

Ah, yes! You noticed a following graph circulating, too! :)

http://4.bp.blogspot.com/-HPRgJEf0Vlc/UUqVFQ32nQI/AAAAAAAAADQ/kbb3WFv2UeA/s1600/crude-production-v-net-imports.gif

… but have you noticed a ‘tricky’ use of different scales – left vs. right?

Anyway, I generally agree with much what you have to say, … but regarding energy issues, I suspect that you are missing the point that shale oil in the U.S. is so, so much foolishness!

You may want to look into this issue more closely, … just sayin’.

F.S. – Calgary, Alberta (… stupid to the last drop of oil town!)

P.S.: You may also have a look at this:

http://www.eia.gov/cfapps/ipdbproject/iedindex3.cfm?tid=50&pid=57&aid=1&cid=ww,&syid=2005&eyid=2012&freq=M&unit=TBPD

#195 Danno on 04.13.13 at 12:32 pm

#23 Civil service hater

While I see your point about some of the excesses, try to avoid lump hating.

In the private sector your less likely to be shot at, beat up, bitten, spat at, catch a blood born illness, die from a rare respiratory disease, burn in a fire, etc. I help save lives on a weekly basis and make less than a teacher. Remember not all civil servants suck off the golden nipple.

#196 JustTryingToProtectEquity on 04.13.13 at 12:33 pm

#183 Mr. Monday Night

Kudos. A very well written post. I share many of your sentiments. It serves no purpose to poke fun at somebody who is asking for help. That said, I think one of the things that frustrates those of us who have and do live frugally is this, the debtors will bring us all down in the end. It makes us angry to see them living above their means. But, you’re right, better to help them understand the error in their ways than to make fun of them. They have us outnumbered.

#197 Old Man on 04.13.13 at 12:43 pm

I am beginning to understand what happened to Sandor and so many others, as it was composed of several factors over the past years. It was an inherent mix of psychological, generational, emotional, and greed which became a trap to buy debt in the end. They saw an opportunity of having it all without waiting for a normal buy, as the mantra was with this cheap cost of money we can have it all now. In effect, the dream of ownership bought them real estate by skipping a normal trade-up in life, so they jumped in without thinking about the future consequences of their actions.

#198 CrowdedElevatorfartz on 04.13.13 at 12:45 pm

hmmmm #2 Mr “cut and paste” is posting his usual mindless drivel again.

How surprising.

#199 TurnerNation on 04.13.13 at 12:48 pm

Death by Kia lease!

“There’s no replacement for displacement.”

Gold got dunned yesterday. As in: Billy Bob did dun buy some more gold.
Also Billy Bob panned some fancy coloured diamonds while fumbling for crawdaddies in the crick.

For the horsey set:

http://www.postcity.com/Eat-Shop-Do/Do/April-2013/A-bleak-market-shift/

Turner on Real Estate: a slow and steady march to the bottom is well underway

By Garth Turner

For the Kia set:

http://www.thegridto.com/life/finance/spent-getting-by-in-toronto/

So you’re young, you’re ambitious, you’ve got a degree or two—and you’re making less than $35,000. How exactly do you live off that kind of cash in a city like Toronto? Well, it looks something like this.

#200 CrowdedElevatorfartz on 04.13.13 at 12:56 pm

@#183 Mr Monday Night

i didnt realize saving 2.5 k a month lumped me in with the 0.5% of the arrogant wealthy.

So be it.

I am mostly able to save due to frugal financial decisions.
My car is 10 years old and paid for. It runs great but do I “need” a new car? No.
I pack a lunch to work unlike 95% of my “pay cheque to pay cheque” co workers. The same co workers that think nothing of paying $4 for a coffee with a debit card( add another .50 0r $1 to that coffee)
I buy with debit or cash not credit cards ( if I dont have the money obviously I cant afford it).

I purchase RRSP’s and use the tax rebate to reinvest instead of ‘splurging” on a holiday.

I recently sold my “mortgage free” house and have slowly been investing THAT money.

Mr Monday Night, I find that the majority of my co workers can prattle off useless NHL of NFL stats like nobody’s business but if you ask 95% of them about ANY current events. Political, financial, whatever, they couldnt form an opinion without a tabloid crossword puzzle to help them.

Ignorance truly isnt bliss. financially speaking, of course.

#201 Louise R on 04.13.13 at 1:09 pm

“For the first time since 1995, the US is producing more of its own oil (sorry Calgary) than it’s importing. ”

False, False,,,, FALSE!!!!! Unless you have a better source than the EIA….

Total US Production-Crude Oil for Jan was 7,005 thousand barrels/day for that month.

Total US Import-Crude Oil for Jan was 10,042 thousand barrels/day for that month.

Here are the links to the sites that publish the crude oil imports and production figures for the US. (US Energy Information Administration, eia)

http://www.eia.gov/dnav/pet/pet_crd_crpdn_adc_mbblpd_m.htm

http://www.eia.gov/dnav/pet/pet_move_impcus_d_nus_Z00_mbblpd_m.htm

As Kyle Bass would say this is an example “Axiomatic through induction” (like that phrase, it means if enough people repeat the bullshit numbers (ie THE LIE) enough time it must be true…..)

I call bullshit on your numbers… lol (in a nice way…..)

Do your homework! Bad boy!!!!!

From Bloomberg: “The U.S. produced 84 percent of its own energy in 2012, the most since 1991, according to data from the Energy Information Administration, the statistical arm of the Energy Department. The measure of self-sufficiency rose to 88 percent in December, the highest since February 1987. U.S. production of crude oil in the fourth quarter of this year will exceed imports for the first time since 1995.” — Garth

#202 Jazmine on 04.13.13 at 1:18 pm

RBC’s outsourcing — the stuff you don’t hear about affects a lot more than 45 people and it is one of the reasons we have high unemployment. Garth doesn’t want to touch this one, so he doesn’t respond to the fact that the middle class is being hollowed out in large part because of outsourcing.

Hardly. The unemployment rate is 7%. The stupidity rate is far higher. — Garth

Yes…..the stupidity rate is definitely much higher than 7% if you think the real unemplyment rate is 7%.

At some point on this blog you might try to be more convincing than abusive. — Garth

#203 Jazmine on 04.13.13 at 1:22 pm

#23 Civil service hater

While I see your point about some of the excesses, try to avoid lump hating.

In the private sector your less likely to be shot at, beat up, bitten, spat at, catch a blood born illness, die from a rare respiratory disease, burn in a fire, etc. I help save lives on a weekly basis and make less than a teacher. Remember not all civil servants suck off the golden nipple.

This is not the USSR

No one forces you to work there. Yeah….I know….you do it cuz you want to “help people”……..gag….

#204 Toronto_CA on 04.13.13 at 1:29 pm

Blog dogs, do you think it is a good year to sell in May and go away? I’m thinking with the gains I’ve already made this year I may divest myself of my S&P500 ETFs and move the money into fixed income funds until September or October.

I am not feeling that the market gains are going to be sky rocketing this summer, more like holding or a correction. After being up about 29% year to date on my portfolio I think I wouldn’t hurt myself if I missed 3-4 months of gains on the chance the bull market roars ahead through the summer.

#205 jess on 04.13.13 at 1:34 pm

“expansionary austerity” is this an example of suck and blow?

Under the theory of expansionary fiscal contraction (EFC), a major reduction in government spending can change future expectations about taxes and government spending, encouraging private consumption and resulting in overall economic expansion.[5]
The Expansionary Fiscal Contraction (EFC) hypothesis predicts that, under certain limited circumstances, a major reduction in government spending that changes future expectations about taxes and government spending will expand private consumption, resulting in overall economic expansion. This hypothesis was introduced by Francesco Giavazzi and Marco Pagano in 1990 in a paper that used the fiscal restructurings of Denmark and Ireland in the 1980s as examples.[1]

The concept that fiscal contraction can result in growth is commonly known as “expansionary austerity”.

#206 Old Man on 04.13.13 at 1:37 pm

Whatever happened to the traditional home purchase that was called a starter home? A young married couple would buy a modest home with a budget, and spend years with the mutual joy of renovating that included landscaping it too while saving their money for a better day. The next step would be to sell for a trade-up with increased earnings, equity, and savings.

A family would be started, but all within a budget for many more years of joy, and the final trade-up would come much later, as all was done in steps to wealth creation with financial control. Thanks to Caesar and F the trap was set by changing the mortgage rules with cheap money as bait to increase the GDP in order to win an election.

Now, you tell me, as was this all done with intent? So all these fools trashed traditional patterns to buy the most home with the least of payments, and sat back telling themselves we have hooped the system in a state of denial, and our dream has now become a reality, or did they buy a nightmare about to unfold?

#207 Moosey on 04.13.13 at 1:38 pm

“Others will buy equities at fresh highs, after sitting on the sidelines while they doubled”

What to do…Get in now while the market is still climbing for wait for it to fall? I have just opened a TFSA and planned to invest in a balanced portfolio but now it seems it’s not the right time…or is it?

#208 Dwilly on 04.13.13 at 1:43 pm

Constantly amazed at how much Canadians overestimate how much they pay in taxes. Almost like it’s being used as an excuse or crutch, or at least just something to complain about.

A couple making 110k combined (assuming a 50/50 or 60/40 split – not a 99/1) is probably paying 20-30k total in taxes (fed, provided, cpp and ei), a very far cry from the 30-40% estimates being thrown out here. Don’t believe me? Go check a calculator. Remember to deduct 7k worth of daycare expenses as well. They should be left with $6400/mth easily, after tax, and I’m sorry, but even in Markham, there’s no reason why you can’t live on that.

Garth is right. This is just plum poor financial management, so no need to whine about taxes and house prices as a copy out.

#209 Smoking Man on 04.13.13 at 1:48 pm

Ok Dogs my very bad trading week…….This one hurt

Trading Forex is dangerous…..Her is why…..

http://dyslexicsmokingman.blogspot.ca/

#210 Fed-up on 04.13.13 at 1:53 pm

@#202 CrowdedElevatorfartz
——————————————————————————–
Your situation seems totally plausible to me. But I have noticed from my own personal experience, that posts that try to impart some wisdom or good personal fortune from a financial perspective, are often met with hostility, sarcasm and disbelief. As if it’s impossible that some posters here actually have substantial savings and a paid off home at a relatively young age. Some petty minded individuals will dismiss someone like yourself as “FOS or BSing” then go off to misinterpret and question why you bother participating on this blog or even live in this country (as was my experience some Dingboat dude).

Haterzzzz…

#211 Herb on 04.13.13 at 2:04 pm

Oh ye of little faith, hear how Brad Lamb proposes to lead you out of poverty into properous retirement. And pay particular attention to the last sentence!

http://www.househunting.ca/homes/buying-homes/Brad+Lamb+strategy/8211258/story.html

#212 Louise R on 04.13.13 at 2:06 pm

“The latest stats show growth in the US economy exploded at a 3% rate in the first quarter of the year (twice what it was in December).”

Usually GDP is expressed in Quarterly units, not monthly… to much noise from month to month to develop a reliable trend.

Further more those numbers are revised as more complete data becomes available, the first raw numbers are not very accurate. This is an important point to understand and can be clearly seen by looking at the historical data, the revisions to the reports and the “impact” those revisions have, ie comparing the initial number to the final number and look at how “accurate” the initial numbers were….

IF you take a little bit of time and look at the link to the US Bureau of Economic and the current revised gdp numbers for the fourth quarter of 2012 you will see that the GDP growth rate for that quarter was 0.4%….. (I don’t need to comment on this do I????? You get what this means don’t you???)

http://www.bea.gov/iTable/iTable.cfm?ReqID=9&step=1#reqid=9&step=3&isuri=1&903=1

Currently, GDP predictions for 2013 are all over the place,( trying to filter out the non-biased sources), I have looked at the IMF and White House (there are better ones out there but they are “think tanks” and don’t have name recognition).

“IMF draft report cuts US 2013 growth outlook to 1.7% from 2.0%, cites US fiscal cuts for weaker GDP outlook….”

“The White House predicts a 2% growth in 2013…. ”

I predicted nothing. GDP swelled to 3% in the first quarter. Live with it. — Garth

#213 AK on 04.13.13 at 2:09 pm

#207 Toronto_CA on 04.13.13 at 1:29 pm
“Blog dogs, do you think it is a good year to sell in May and go away?”
——————————————————————–
“Sell in May and go away” is a myth. Nuff said.

#214 Marnic on 04.13.13 at 2:09 pm

#204, FarFlung:

“Have a look at what David Walker has to say about the condition of America’s finances. GDP growth has to be in the double digits for years to make it all work. Garth is all cranked up by 3%…”

Exactly, and this on the same day Bloomberg reported the IMF was about to cut their 2013 US GDP prediction (subject to revisions) to 1.7% from 2%.

#215 Old Man on 04.13.13 at 2:19 pm

I have no idea why IT outsourcing has become an issue with RBC, as years ago needed a new computer so shopped around on the net and saw a sale with Dell Canada, so wanted to buy with a phone number to use my credit card with a person, rather than on the net.

I told this person the model that I wanted to buy with my credit card, but he had an accent, and he said I am in India which killed the deal, as will never give my personal info to someone that does not live in Canada, as was using a high level credit limit on it, and needed to be prudent; as well as, cautious.

Ok, so went down the street to a shop that has been in business forever, and did a custom built tower instead with them, as wanted control over my money, and the rest bought as separate items here and there in stores based in Canada. I do not like giving my credit card info to anyone that does not live in Canada.

#216 AK on 04.13.13 at 2:19 pm

#203 Louise R on 04.13.13 at 1:09 pm
“False, False,,,, FALSE!!!!! Unless you have a better source than the EIA….

Total US Production-Crude Oil for Jan was 7,005 thousand barrels/day for that month.

Total US Import-Crude Oil for Jan was 10,042 thousand barrels/day for that month.”
——————————————————————–
North Dakota is still in the early stages.

http://mjperry.blogspot.ca/2012/08/some-amazing-north-dakota-oil-facts.html

#217 Louise R on 04.13.13 at 2:33 pm

“Car sales are the highest in six years ” ( lets see that would be 2007…?)

Garth, This data is available via the St Louis Federal Reserve.. this site will give you the total vehicle stales (and a shit load of other creditable statics, respectfully suggest you avail yourself of this information in the future…) in a nice easy to read chart of your choosing… you will see them referred to as FRED Charts….

Here is the link to the FRED chart for “TOTAL VEHICLE SALES” in the US… the data in this chart goes back to 1975.

http://research.stlouisfed.org/fred2/series/TOTALNSA?cid=32993

Once again the data, from real creditable sources (US Department of Commerce in this case) conflicts with your statement…

Very Bad Boy….. lol

#218 Louise R on 04.13.13 at 2:42 pm

“The median price of an existing house climbed 11.6% in the last year – the most since 2005.”

Here is the link to the FRED chart for the S&P Case-Shiller 20-City Home Price Index and the National Composite Home Price Index for the United States.

Once again this data is not supporting your statement.

http://research.stlouisfed.org/fred2/graph/?id=SPCS20RNSA,USCSCOMHPINSA,

The median price of an existing house climbed 11.6 percent in the 12 months ended February, the biggest year-over- year advance since November 2005, according to figures from the National Association of Realtors. — Garth

#219 Ayn Lemon Rynd on 04.13.13 at 2:43 pm

I regret your job loss, but it’s a manifestation of exactly what I have been saying. The world has changed, and is not changing back. Globalization will not be reversed. — Garth

Ok lets say that globalization will not ever be reversed, what implications does this have for Canada. Will it become more like china and india ? How long will their cheep labor be economical ?

Anyone can see that our quality of life is not what it was. We traded nice houses and food for electronics and more flights. We still have nice houses and food but not as good as we once had. It is the trend that is of concern.

At what point is the western world tapped out ? By which I mean that whole prosperity thing of the later 20th century is eroded, and that wealth cant be used to create jobs in places like india.

My current situation is decent, but going forward I don’t see how I can maintain anything close to my quality of life no matter how high my (nominal) wage and investments are.

Its suicide to just watch your neighbors lose their decent paying jobs, and say “Well you cant stop globalization” or “India deserves your job”.

Because eventually you will see that the streets will be ALOT less safe (its started already). Just because we have resources doesn’t mean that our quality of life will be good going forward ( look at eastern Europe ).

I expect some awesome one liner from Garth saying something like or “Go buy some tin foil from costco”, or “Well you shouldn’t expect to be wealthier than someone in Calcutta ” ( Yeah they have a warm climate, good on them).

Still I appreciate that he putting this blog and making the effort that he does.

#220 AisA on 04.13.13 at 2:47 pm

DELETED

#221 Louise R on 04.13.13 at 2:50 pm

“In recent days this blog’s been overrun with people pissed the life they feel entitled to won’t happen. They want the middle class thing their parents enjoyed. House, babies, career, pension.”

This video might help explain what is going on with this point… it was recorded in 2008, and is a lecture given by Elizabeth Warren, called “The Coming Collapse of the Middle Class”.

http://www.youtube.com/watch?v=akVL7QY0S8A

Elizabeth Warren is now Senator Warren…..

#222 gladiator on 04.13.13 at 2:53 pm

@202 Crowded:
funny, you just described my situation: will be saving 27k this year from my slightly-under-100k salary, with a non-working wife and 2 kids at (a rented) home.
Car is 13 yrs old, but in good condition; pack breakie and lunch to work; pay cash for food and pay off credit cards every month; no debt; etc. So it looks like I’m one of the 1/2 percent too… But why don’t I feel rich?

#223 renting and waiting no more on 04.13.13 at 2:54 pm

#190 HAWK –

I didn’t disagree with Steve about corporations being responsible to shareholders. Of course they are – it’s the law for crying out loud. And that’s part of the problem. Maybe it worked back in the day when shareholders were NOT essentially corporations unto themselves, but what we’ve got now is a bunch of corps having no responsibility to anyone other than another bunch (probably owned by the same people) of corps.

Corporate ‘personhood’ = gigantic problem for real persons, also.

It’s such a tired, old, worn through argument that no one is falling for any more. “The world doesn’t owe you a living!!” I just read a great column about this in the Huff Post, and part of it was a guy called Steve Seibold (maybe smalltown steve himself, who knows, sure sounded like him). He basically gave the same word for word response to Canadian outrage over TFWs as Smalltown Steve did. It’s become a classic of an outmoded train of thought.

The world, in fact, does NOT owe me a living. And I, in fact, owe nothing back to the world. If it weren’t for the rules of ‘society’ (which change and change) none of us would be in these positions. the ‘world’ is not a problem – society is. The notion that there is some limited pot of security and we’d all better get used to ripping off our neighbours, poisoning the earth, and celebrating greed is so early 20th century.

It’s over. People don’t want that any more. I’m sure there were things they used to repeat ad infinitum to slaves and slave owners back in the day, too – who knows what, but it probably sounded something like “guess what? the world doesn’t owe you anything -using the labour of the brown people to get rich is the way of the world, if you don’t like it you will always be poor!” This bullying worked and it worked and the people on top got rich right up until they lost their plantations.

Georgia will be on fire – it is on fire – all over again.

#224 Louise R on 04.13.13 at 2:54 pm

The median price of an existing house climbed 11.6 percent in the 12 months ended February, the biggest year-over- year advance since November 2005, according to figures from the National Association of Realtors. — Garth

Thank you for citing your sources, they are a very large trade association and lobbying group, do you believe that their number and statics are creditable and unbiased?

It is the only national resale housing database. Believe what you wish. — Garth

#225 Dr. Hoof - Hearted on 04.13.13 at 2:59 pm

#23 civilservice royalty on 04.12.13 at 8:57 pm

You can have it all….join the civic service….better pay than any Canadian worker…pensions up the hoop…paid leave….can’t be fired for dumb dumbs on the job….we are the Canadian elite…the rest of you idiots can f off….we got it made.

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

CTF reported our School District Superintendent got a 13% raise, which worked out to $20,000. These types get 5 year contracts.

However, most civil service pensions are based on the 5 best earning years. If not mistaken the pension rates are 60-70% of 5 best earning years. So, the Superintendent, based on this $20,000 raise, gets an EXTRA $12,000 + added annually to the rest of the lifetime pension.

I contacted our School Trustee Chair to confirm this.
She stated that they were playing catch up with other school districts..the old song and dance about the size of our school district in comparison to others, and yet how we are still not at the top. Whoooooppeeeee !?

Most of these parties retire by 60, an its indexed, so my guesstimate is they will get an EXTRA $250,000 over the life of their pension, on top of the already generous pension.

IMHO…I am tried of this leapfrog game that plays the taxpayers for suckers. Different Local Gov’ts take turns to set the reference point…then this is used by other Local Gov’ts. I would say take it or leave it..or F*ck off.

This formula is pretty standard in the Civil Service.

Jim Chu ? He was appointed by an ex- Mayor to cater to the ethnic vote. Vancouver Police Chiefs have a history
of getting backstabbed, but Chu is simply bland and token. Nice juicy pension awaits him as well

What you see is this unholy alliance between politicians and civil service, as the politicians have let it get out of hand, letting the civil service lead them by the nose and short hairs.

Regardless, its not sustainable. It will collapse like in the US.

#226 Loopback on 04.13.13 at 3:10 pm

Seriously, the above blog post makes no sense. Especially since it’s counter to what was written in the “Money Road” book . . . ‘the American empire’s in decline’ . . . versus . . . ‘Don’t bet against America’. Somehow it’s now okay to discount historical low interest rates and central bank liquidity, deficit spending and GDP/Debt ratio as not being problematic. This isn’t a sustainable consumer-led ‘renaissance’, more reminiscent of economy still hooked on handouts.

A little unkown factoid regarding oil and gas fracking, the Halliburton Loophole, in 2005 Congress—at the behest of then Vice President Dick Cheney​, a former CEO of gas driller Halliburton—exempted fracking from regulation under the Safe Drinking Water Act.

Doesn’t that just give you the warm fuzzy feeling that hydraulic fracturing is indeed safe.

#227 Old Man on 04.13.13 at 3:20 pm

Now will tell you a secret about car sales in Canada that few will ever know about. The dealerships report sales as a matter of public record, but that includes all sales off the lot both new and used, and the used cars are selling best to pump the figures up. One can buy a new car today for 84 months with 0% interest costs, and no downpayment for just $84.00 payable on a bi weekly basis which means about twice a month. What a deal, or is it?

#228 QQ on 04.13.13 at 3:30 pm

don’t quite agree with Garth on the optimism in USA.

i m sure the recovery down there is real but not as rosy as many ppl think. US citizen remain heavily indebted as is their gov’t. i see a lot of down side risk. i’d stick with diversification.

#229 debtors_winners on 04.13.13 at 3:49 pm

the world has changed indeed!
_______________________________
…and there is no scientific theory explaining what lies ahead of us. All old school political economy, sociology, social economy etc disciplines were developed long ago and can explain processes of the past. There is no currently any reliable new economic theory explaining the future. All attempt to come up with any suggestions get blocked at the very beginning. Just a fresh example: Dominique Strauss-Kahn, Director of International Monetary Fund, professor of economic, was careless enough to publicly touch the subject of a necessity of multiple currency areas where US dollar might not be a dominant one. Next day after that IMF had a new Managing Director… Through the official media we are pushed into a believe that dollar will prevail forever… don’t pay attention to systematically growing debt volume… and don’t even think about practical feasibility of paying it off (is it meant to be paid off having it’s reached that astronomical value ?)… shortly speaking: don’t think, sleep well, trust us – US will power ahead regardless…

#230 Dr. Hoof - Hearted on 04.13.13 at 3:54 pm

#150 detalumis on 04.13.13 at 7:17 am

#112 Get a grip Garth, there are a lot more than 45 employees that have been outsourced, I was outsourced 3 years ago and this has been going on since 2005. I would estimate close to 1,000 good paying jobs that have been removed from the Canadian economy just in IT at one company i.e. good paying private sector jobs. IT has been decimated in this country. All the other banks have done the same thing as well as Loblaws and Canadian Tire. They also outsource functions like HR itself (just not the VEE PEE jobs) – net result lower wages, fewer benefits.

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

I would recommend this :

Free Trade and the Culture War

http://grizzom.blogspot.ca/2013/04/reconstructions-live-with-mike-sledge_11.html

I agree with Garth re Globalization is here…but that does not imply a happy ending.

As Sledge states, our economies have gone from production based TO consumption based.

Different nations have been used as proxies to displace middle class jobs. ie Japan was built up , chewed up and spit out. N-E-X-T !

Sledge gives a good explanation of Free Trade….Economists Friedman …Rothbard etc. and why NAFTA was a disaster. This was all so predictable.

What we see in Canada is a return to hewers of wood and drawers of water..aka we are selling out our natural resources. Multi-National Corporations are their own Gov’t and make their own rules.

Again, once any economy takes out the middle class..you have a new version of the feudal system…in essence Communism

#231 Flummoxed on 04.13.13 at 4:07 pm

Welcome to Globalization 101

The 5 Creepiest Ways Major Companies Are Watching You

http://www.cracked.com/article_20358_5-dystopian-sci-fi-scenarios-now-being-used-marketing.html

#232 HAWK on 04.13.13 at 4:08 pm

In a world with trade barriers we would have a far lower standard of living. You can’t suck and blow either. — Garth

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

Yes but the Indians and Chinese for example do have some trade barriers, when it suits them.

It’s not possible for people in developed nations to work for the same wages as exist in those lands, because the price of goods and services over there are much cheaper also. I would know this as I am from that part of the world.

Also, how else can our society move away from the destructive welfare state if unemployment continues to grow over here?

http://www.bloomberg.com/news/2013-04-01/china-cited-by-u-s-for-trade-barriers-on-autos-steel-dvds.html

http://www.indianexpress.com/news/us-exporters-face-trade-barriers-in-india/932036

Canada unemployment 7.2%. India unemployment 9.4%. — Garth

#233 Loopback on 04.13.13 at 4:09 pm

re: Dow and the S&P made new records highs
———

Due to margin not revenues. Margins are more than 70% above their historical norm – unsustainable.

Now, that’s funny. — Garth

#234 Toronto_CA on 04.13.13 at 4:15 pm

#216 AK on 04.13.13 at 2:09 pm

I don’t know, the wikipedia entry for it seems to paint a convincing picture that it works based on historical data in several world markets. Plus this year has had such a bull market winter/spring….

#235 Tom Vu on 04.13.13 at 4:17 pm

Smoking Old Man:

Why all this talk about Forex ?

Didn’t you have it removed when young ?

#236 Linda Mulligan on 04.13.13 at 4:20 pm

Re: #195, 202 & 213 – right on. People read about gold plated pensions & figure everyone who works for gov’t gets them – only if you are an MP/MLA or very high level gov’t employee do you get that gold plated pension. Most gov’t employees get less than $35,000 per year pension BEFORE taxes & that only if they have 30+ years of service in prior to retiring. When we bought our house in 1984 we paid less than $100,000 but our combined gross income was about $70,000 per year before tax. Interest rates were still high – 15 to 16%! For the first 5 years of our mortgage I had exactly $10 left over to spend as I pleased every payday – everything else was to cover mortgage, groceries, utilities, property taxes, insurance etc. However, we paid off our mortgage in 14 years AND we began to build up both RRSP’s & an investment portfolio on that aforementioned $70,000 gross income AND my husband was not working for at least 2 of those 14 years – had gone back to school so household income was $40,000 before tax for 2 of the 14 years. So – no fancy trips. Only 1 car & maintain/use that vehicle until it is no longer cost effective to repair rather than buy. We are now on car #3 & it is 10 years old this year. Brown bag lunches every work day. Investments are doing well, house is paid off – husband laid off in Jan 2009 & took 20 months to get another job but our standard of living not impacted because we had no debt & lots of savings because we kept on putting $ aside once the house was paid for just in case of job loss etc. Now, after our mortgage paid off & assets built up we are enjoying ‘the good life’ because we’ve the money to pay for it up front – not running up debt & trying to figure out how to afford it after the bills come in, having already spent every dime we make & more besides. Was it hard to wait? You bet, especially when friends/acquaintances were gushing about that trip to Mexico/Europe/Australia, or their fancy new car(s), or their complete home remodel, or showing off their new bling etc. All financed & all gone when times went bad & jobs were lost in the 90’s & again in 2008…..

#237 Basil Fawlty on 04.13.13 at 4:39 pm

“No major western country can pay sovereign debt. The key is servicing it and debt size relative to GDP. You are talking through your sock. — Garth”

Given that the US Fed is purchasing $45B per month of the country’s treasury bonds, one could argue that they are currently unable to service their debt.

Many commentators, such as Dr Paul Craig Roberts, are suggesting that gold prices are being suppressed in the paper market, through naked shorting, which is illegal.

“At some point on this blog you might try to be more convincing than abusive. — Garth”

Garth, please read your own quote above, before labelling Dr Roberts a “nutbar”, as you do with so many others!

But he is. — Garth

#238 brainsail on 04.13.13 at 4:40 pm

Today, I am seriously suffering from data / analysis paralysis.

#239 betamax on 04.13.13 at 4:40 pm

Dean Mason — great posts, thx for running the numers.

#135 Charles Ponzi: “Sandor is obviously not living within his means and the US is no different.”

Good point. At some point the bill comes due for both.

Of course not. People are not countries. There is no comparison. Citizens are in far worse shape. — Garth

#240 worried boomer on 04.13.13 at 4:45 pm

#131 …exponential growth in anything must stop eventually;
————————————————————-
that’s a very interesting point, many big names in the theory of capitalism pointed out that capitalism is supposed to exist only on condition of extensive development (“capitalism could only exist in the form of expanded capitalist reproduction” – Adam Smith) When extensible (exponential) growth is not possible anymore, what will be then? Can the long extensive phase be turned into an intensive one? Is that possible for capitalism to start developing intensively? What is a condition for that intensive phase to begin? Technological breakthrough? Investments into technological innovations? Why, in this case, the governors bothers only with speculative bubbls and nothing else?

#241 betamax on 04.13.13 at 4:52 pm

#170 Doug in London: “According to some self proclaimed “experts”, there will be a labour shortage when the Boomers all retire. If their finances are that bad, most won’t be retiring any time soon.”

True, but in time they’ll all be forced to retire, late or soon. However, our consumer-driven economy will contract with them, so I’m not sure how much of a labour shortage will exist to benefit Gen X, Y or Z.

#242 Behavioral Finance on 04.13.13 at 5:08 pm

I always get a chuckle from people saying that the stock market fundamentals don’t reflect reality. Now the counter argument goes like this:
1. A lot of US companies derive their income from global activities. It is not just US. (example. Google derives 54% of its revenues from international operations)
2. A lot of companies sit on piles of cash
3. Companies have learned to be lean and hold very little inventory.
4. Have you ever analyzed a 10Q or 10K form?
5. 11 Trillion dollars sitting in treasury bills and cash equivalent.
6. Central banks around the world printing amazing amount of cash to spur raise in financial assets. That money is not going directly into the economy hence very little inflation considering the amount of cash being printed.
7. Bottom line this global economy cannot afford deflation since its driven by debt. Japan has already tried that and it didn’t work. If it wasn’t for international trade Japan would be in serious trouble.
8. As they say you can look at glass as half empty or half full. Some people will never be happy about where the market is.

#243 Angry But Not Unhappy Twenty Something on 04.13.13 at 5:10 pm

With globalization, will employees in countries abroad start to demand a higher standard of life?

In the near future I imagine Canadians will have to learn to live with less…but in 20? 30? 40 years? Will things re-balance themselves?

#244 Flummoxed on 04.13.13 at 5:12 pm

No major western country can pay sovereign debt. The key is servicing it and debt size relative to GDP. You are talking through your sock. — Garth

THE INTERNATIONAL FILM THE ESSENCE OF BANKING TO CREATE PERPETUAL DEBT

http://www.youtube.com/watch?v=UiN1xHaNDJ0

#245 rembrandt on 04.13.13 at 5:34 pm

Contrary to your rosy outlook there are several bubbles ready to blow. Just follow the money (created out of this air). Following are Jim Sinclair’s and Harry Schultz comments about the levitating of the US$ and the suppression of gold.

#246 Godth on 04.13.13 at 5:39 pm

#233 Dr. Hoof – Hearted

“Again, once any economy takes out the middle class..you have a new version of the feudal system…in essence Communism”

Who owns the means of production?

http://www.econlib.org/library/Enc/Fascism.html

#247 Godth on 04.13.13 at 5:47 pm

#232 debtors_winners

Check out Post-Keynesians and MMT.

http://moslereconomics.com/

#248 Macrath on 04.13.13 at 5:51 pm

#246 Angry But Not Unhappy Twenty Something

will employees in countries abroad start to demand a higher standard of life?
——————————————–
How would they do that? Unionize China and India? Ain’t gonna happen!
We are well on our way to joining them at the bottom of the barrel .

A prophetic interview with Sir James Goldsmith in 1994

http://www.youtube.com/watch?v=4PQrz8F0dBI

#249 rembrandt on 04.13.13 at 5:52 pm

By cutting off my submitted piece you destroyed the entire (unpublished) content.

Use a link. — Garth

#250 Bobbo on 04.13.13 at 5:54 pm

Gold is just the beginning
Wake up
The ones telling you buy are the ones selling

http://www.zerohedge.com/contributed/2013-04-13/entire-economy-ponzi-scheme

#251 rembrandt on 04.13.13 at 5:55 pm

DELETED.

You are done here. — Garth

#252 rembrandt on 04.13.13 at 5:58 pm

DELETED

#253 Smoking Man on 04.13.13 at 6:03 pm

#246 Angry But Not Unhappy Twenty Something on 04.13.13 at 5:10 pm

With globalization, will employees in countries abroad start to demand a higher standard of life?

………………

Did you know CSIS has been keeping track of groups and individuals who chirp globalization…..

They are the machines muscle…

Workers are nothing… People who buy and sell have value… Slaves none.

Grow up, get use to it, and join the darkside.

Sell stuff………

Amazing with RBC fkup this week, herd, track6ers got but a wee fleating glimpse.

#254 Cow Man on 04.13.13 at 6:21 pm

#115

Garth you are so wrong about the number of RBC employees affected by the temporary workers program. The number is significantly above 45. Gord Nixon first claimed on CBC that it was only 1 worker. Then a letter of apology with no numbers attached.There are more out source contract companies than just iGate.

Does anyone thank RBC for supporting 80,000 families? Didn’t think so. — Garth

#255 renting and waiting no more on 04.13.13 at 6:22 pm

Smoking Man –

grow up, get used to it, sell stuff, you say..

I sell stuff. I just don’t jack anyone between my work and its sale. As for growing up – done. Get used to it? Get used to what? If you can spell it out then we can talk. (well, then *I* can talk. :) )

you’re old right? so you might not have to watch as Capitalism as we currently know it crumbles.

#256 blok existentialist on 04.13.13 at 6:47 pm

There is an alternative solution for middle-class families caught up in financial synchronized swimming (that’s what it looks like to me, anyway).
In a word, polygamy. Bring another wage earner into the family. Heck, bring three.
Otherwise, you should take Garth’s wise and gratis advice, as well as that of others on this blog, and begin divesting yourself of the status quo.
If you need some light reading to stimulate yourself to change, try “Two Pence to Cross The Mersey” … nothing to do with the Beatles. It’s the true story of an upper-class family in England who end up dirt-poor in Liverpool, struggling to survive the Great Depression.
The contrast between their sense of entitlement to the good things in life which they can’t afford and the common-sense survival skills of their blue-collar neighbors is enlightening.
And uncomfortably close to the situation at hand.

#257 Ralph Cramdown on 04.13.13 at 6:56 pm

#240 Basil Fawlty — “Many commentators, such as Dr Paul Craig Roberts, are suggesting that gold prices are being suppressed in the paper market, through naked shorting, which is illegal.”

Why suggest when you can verify? The SEC publishes details about failures to deliver here: http://www.sec.gov/foia/docs/failsdata.htm

Current to mid-March (conspiracy?) and here’s the data for GLD:

20130301|78463V107|GLD|256|SPDR GOLD TR, SPDR GOLD SHS|152.96
20130304|78463V107|GLD|382|SPDR GOLD TR, SPDR GOLD SHS|152.44
20130305|78463V107|GLD|9579|SPDR GOLD TR, SPDR GOLD SHS|152.30
20130306|78463V107|GLD|784|SPDR GOLD TR, SPDR GOLD SHS|152.38
20130307|78463V107|GLD|2849|SPDR GOLD TR, SPDR GOLD SHS|153.23
20130308|78463V107|GLD|25522|SPDR GOLD TR, SPDR GOLD SHS|152.69
20130311|78463V107|GLD|117|SPDR GOLD TR, SPDR GOLD SHS|152.71
20130313|78463V107|GLD|292|SPDR GOLD TR, SPDR GOLD SHS|154.19
20130314|78463V107|GLD|482|SPDR GOLD TR, SPDR GOLD SHS|153.66

The fourth column is the number of shares, and the biggest fail total was 25k shares, or about 2,500 troy oz of gold. Does it really take that light a thumb on the scales to suppress the price? Why would an institution go to the trouble of shorting paper gold in the cash market when it can legally short it in the futures market with less margin and no underlying cash position (i.e. naked)?

I have to admit I’ve developed a fondness for some of the goldbugger blogs lately. The constant conspiracy theories, the SHOUTING, and the oh-so-cheezy banner ads for survival seeds and such (you can really tell a site’s clientele by the ads). The latest is PHYSICAL SHORTAGES! BUYERS OUTNUMBER SELLERS 50 TO ONE! Geez, does anyone pick up the phone to Scotia Mocatta and see if they’re out of stock?

#258 Herb on 04.13.13 at 7:02 pm

#224 Louise R.,

thanks for that video link. It explains a lot, except how we got there. The affected will have to figure that out for themselves, and when they do, look out!

There was an expression coined during the Prague Spring : “Truth is what remains after everything else has been frittered away.” In more current language, “Truth is what remains after everything else has come unstuck”. It will take a while for the lies and machinations to come unstuck, and then people will deal with reality.

#259 commentary on CAD Housing on 04.13.13 at 7:07 pm

She forgot to breathe
She forgot it was make believe
I still see her eyes
She never stayed for long goodbyes
Hey it’s over
Hey it’s over
The dream is over

#260 Dr. Hoof-Hearted on 04.13.13 at 7:10 pm

Just talked to a party who is studying our changing demographics.

They said that a report was released recently that Richmond BC has the L-O-W-E-S-T per capita earnings in comparison to other Metro Van cities.

I stated the implication is that with all our veneer of wealth and prosperity ( McMansions and Mercedes etc.), that most of the wealth is earned elsewhere, not domestically…or conversely, you are SOL if you try to make a living here.

#261 aaci-home dog on 04.13.13 at 7:25 pm

Garth…..you could make a small fortune on ‘deleted comments’ book…please…and, thanks for all the great posts !

#262 Godth on 04.13.13 at 7:33 pm

“Does anyone thank RBC for supporting 80,000 families? Didn’t think so. — Garth”

Funny, I see that as 80,000 + families supporting RBC with their labour and business. Who granted RBC it’s charter?

#263 Figmund Sreaud on 04.13.13 at 7:37 pm

” …and get worked up about non-stories like RBC’s little imports.” – Garth
_______________________________________

Non-story this? I beg to differ with you grossly!

For your edification, this type of inshoring of jobs separates consumers from the incomes and careers associated with the production of the goods and services that they consume. As does offshoring of job!

Anyway, such action represents unadulterated arbitrage of labour! Period. Labour arbitrage is a pursuit of absolute advantage.

Of course, some will argue that labour arbitrage is a fair game, … is a part and parcel of free (and globalized) trade. But such argument fails to hold water, considering profits are produced by rendering a country’s work force unemployed.

… this will not end well!

F.S. – Calgary, Alberta.

#264 Smoking Man on 04.13.13 at 8:26 pm

#258 renting and waiting no more on 04.13.13 at 6:22 pm

Smoking Man -grow up, get used to it, sell stuff, you say..I sell stuff. I just don’t jack anyone between my work and its sale. As for growing up – done. Get used to it? Get used to what? If you can spell it out then we can talk. (well, then *I* can talk. :) )you’re old right? so you might not have to watch as Capitalism as we currently know it crumbles.

………………

Your young foolish…… No matter what system rules us, capitalism, corporatetisum, communism.. Smokingisum… Don’t matter.

There will always be track6ers that will be taken advantage of by Track5ERS…I don’t make the rules, I don’t complain about the rules..

I mean look at the billions of people that belive in god, ha, easy pickings…..

I observe the game, I use logic, formulate a plan, execute and win..

So hate me cause I don’t drink Kool aid, I brag about being a lier yet pump the most truth… Truth hurts..

Lot to learn little grasshopper…

#265 Dipper Tar Dust and the con bots from mars on 04.13.13 at 8:32 pm

All this talk about “resistance is futile” globalization is unstoppable. You have no clue what the future will hold. You just assume that because that is the current trend, this will continue.

It might, but you would have no idea.

#266 Loopback on 04.13.13 at 8:34 pm

re: Dow and the S&P made new records highs
———

Due to margin not revenues. Margins are more than 70% above their historical norm – unsustainable.

Now, that’s funny. — Garth
——-

Margin is high because corporations are taking out cheap loans at subsidize Fed rates to build huge cash reserves. I’ll say it again, unsustainable.

#267 Freedom 85 on 04.13.13 at 9:00 pm

#183
Mr. Monday Night
I tip my hat to the arrogant 0.5% of you who claim to be able to save $2.5K / month and are incredulous that most of us peasants can’t do the same (I call BS, David W). The majority of Canadians are barely keeping their heads above water and are one small slip away from a major catastrophe but are afraid to admit it.
END

Garth,
This comment is bang on!

Your comment to Mel #134

No sure who peed in your corn flakes, but there is no crash coming, the US is most decidedly not in recession and I have counseled nobody to buy stocks. How can it be so many people on this blog have no idea what a diversified and balanced portfolio is, or how it is constructed over time? — Garth

End

These two comments are very closely tied together. The reason people don’t really listen is because a goodly portio of your readers haven’t got the necessary savings to take advantage of your recommendations. Lots of people having trouble these days just keeping up with the bills. I truly fear the time when barely keeping up becomes not being able to keep up and people just give up. That’ll be the time your banks begin bleeding red(losses). Let’s hope people stay peaceful but I worry of a significat loss of living standard may really be the tipping point for very poor relations between people.

#268 Slippery Joe on 04.13.13 at 9:07 pm

I predicted nothing. GDP swelled to 3% in the first quarter. Live with it. — Garth
—————————–
CPI adjusted? I don’t think so. Real annual inflation of 9 % – shadowstats vs. 1.5 official CPI..

Read David Stockman. Former Reagan budget director.
Bumpier road ahead for US. Either dollar collapse or market collapse. Bond market long dead.
Scary staff. And this is not someone one can ignore. Much more trustworthy than Big Ben.

#269 Nostradamus Le Mad Vlad on 04.13.13 at 9:14 pm

Smoking Man and Blacksheep — I sent both of you a link on 9-11 (on your blog SMan), the USAF has shut down a bunch of its operations, and the crap about NKorea is pure BS, simple fearmongering by the western m$m designed to scare us.

Thing to remember is that NKorea and Iran have a plentiful supply of rare earth minerals, just as Haiti is sitting on a large oil deposit, and the US just happened to be there when the ‘quake happened. Cheers!

#270 Mark on 04.13.13 at 9:32 pm

Yeah, let’s go. I want to see an off day dedicated to the deleted posts.

Should be fun to see the twisted realtors and gold bugs getting bent out of shape.

#271 Slippery Joe on 04.13.13 at 9:36 pm

I don’t believe a country can become richer by impoverishing its people, that the corporate profit is synonym of prosperity.
Sir James Goldsmith

There were times when everything new was engineered, discovered in US. Everything was made in US.

Boy how have we lost our way…. I am thinking whether it is not better to boycott the system so it fails but we save ourselves vs. being compliant and save the system or whatever is left form it but kill ourselves,

Honestly we better be in the 70-es and 80-es.

Imagine you’re in the 1940s. What a bunch of defeatists. — Garth

#272 Gunboat Denier on 04.13.13 at 9:36 pm

239 Linda – that represent 2 $16-17/hr jobs in 1984. That was decent money.

#273 Slippery Joe on 04.13.13 at 9:44 pm

Sure posting the link:

http://forum.prisonplanet.com/index.php?topic=198612.0

#274 Mr Buyer on 04.13.13 at 9:54 pm

If we were in the 1940s we would be fighting and dying and the 1% would not dare pull the shenanigans that flood the news. There would be a a new social contract pending to be negotiated with battle hardened veterans that understand all to well that freedom is not free and elites would ensure populations of such individuals had decent jobs to go to and homes to live in, OR ELSE…

Give the class warfare a rest. It’s getting old. — Garth

#275 Dipper Tar Dust and the con bots from mars on 04.13.13 at 9:58 pm

Imagine you’re in the 1940s. What a bunch of defeatists. — Garth

I think your the defeatist, if you don’t believe in national sovereignty. If you think that Canada is not a real society. That giving jobs to foreigners is acceptable.

This has turned into the xenophobia blog. More divorced from reason with each post. So, the discussion’s over. — Garth

#276 Smoking Man on 04.13.13 at 10:07 pm

#273 Slippery Joe on 04.13.13 at 9:44 pm

Sure posting the link:http://forum.prisonplanet.com/index.php?topic=198612.0

Dude Alex Jones is 100 precent CIA

HOW DO I KNOW….

Would not allow any links to http://www.keysme.org

He probably never started out that way but they made him an offer he could not refuse…. Look at his rant on gun thing on can..

Being a supper dupper code smith, trying to access his site under the covers… Huh can’t say… Try linking to a video while browsing in indigo..

Good luck…..

Why am I saying all this, I Wana work for them too..

But they can’t read me, super human analytics here, even they don’t trust me..

There is only one smoking man

#277 Bottoms_Up on 04.13.13 at 10:27 pm

#208 Dwilly on 04.13.13 at 1:43 pm
——————————————
The daycare tax break reduces taxable income, it’s not a tax credit. Therefore, what you believe to be a $6000 break or credit is really only about $2000 (on a yearly bill of approximately $18,000).

#278 Smoking Man on 04.13.13 at 10:41 pm

Rule 101 in the control the world manual, control decent

ALEX JONES…..

you have no chance in fighting it, join it and get your price of the pie.

My problem I get kicked out of every club I join…

Sadly only one Smoking Man

#279 Humpty Dumpty on 04.13.13 at 11:09 pm

Some one say 1940’s…

Its Sat night… Lifes good…

come on G… When was the last time you danced with your wife…

Enjoy….

http://www.youtube.com/watch?v=shzJafxvaq4

#280 Smoking Man on 04.13.13 at 11:20 pm

My previous post ment to say incognito….

Facebook CIA, Goggle CIA….

fight it, your wife has to where a higab, you need to pretend you belive in god… Smoking man gets beheaded….

Nope I’m with the machine…..

Sorry rebels, till you figure out how to were the crown, I’m with the machine

#281 Smoking Man on 04.13.13 at 11:25 pm

This 18 year old scotch…… Wow

#282 Small Town Steve on 04.13.13 at 11:26 pm

Defeatist is right Garth, my good lord it is saddening the amount of despair prevalent here. As an employee I payed 65000k in taxes last year afterrr I maxed my RRSP. This is what my tax dollars are supporting? It amazes me the number of people that blame corporations for their angst. Ever heard the saying “do not bite the hand that feeds you?”
Perhaps people should take a crash course in Milton Freidman 101 then act accordingly.
For the most part people can still have free association in Canada. This is much better than forced association/outright statism.

I too feel bad for those that lost their jobs due to outsourcing (or other reasons). On the bright side they can seek employment and/or retraining elsewere now.
Being unemployed is never a permanent situation!
Live within your means, stay liquid and debt free. Have a balanced and diversified portfolio. These are rules to live by.
Young people! You have a HUGE advantage, you have a long time period. I know being young you want to party like a rockstar and statistically you will not make much money until you get some skills. Even if you are making a small amount of money get into the habit of putting away 15%(or more) of what you make even if that only adds up to $112.00/month. You will be well on your way to true freedom later in life. (Stats show that those that do this often become tomorrow’s millionaires).

Sigh..Garth you have the patience of a saint.

#283 Tom Vu on 04.13.13 at 11:32 pm

#276 Smoking Man on 04.13.13 at 10:07 pm

There is only one smoking man

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

Thank God !

Must be a product of Monsanto…terminator gene technology.

Praise be the machine !

#284 Rob Smith on 04.13.13 at 11:45 pm

#239 Linda Mulligan on 04.13.13 at 4:20 pm

Re: #195, 202 & 213 – right on. People read about gold plated pensions & figure everyone who works for gov’t gets them – only if you are an MP/MLA or very high level gov’t employee do you get that gold plated pension. Most gov’t employees get less than $35,000 per year pension BEFORE taxes & that only if they have 30+ years of service in prior to retiring.

———————————-

you’re embarrassing yourself, a civil servant gets 70% of his best 5 years, a teacher working 30 years will make well into the six figures ( ie, this years sunshine list we had a few making over $150k and one grade school teacher making $171k last year).

Now, without even using a calculator I can say that they will make more then double your professed $35k and even triple that. On the other hand, I don’t see it being sustainable so for now it’s all in theory anyway.

#285 Blair on 04.13.13 at 11:52 pm

During the past couple of years, bank accounts, money market funds, and other safe time deposits have been paying one percent annualized interest or less. Fueled by freshly created currency from [insert name of central bank here], investors have gone on a quest for high-yielding assets such as utilities, REITs, telecommunications companies, household consumer names etc. As a result they have become dangerously overvalued, and not surprisingly, perceived as being safe. The bubble in these assets is no less dangerous than similarly overpriced peaks for technology shares in early 2000 or U.S. residential real estate in 2006. Short term money, fed up with the slow economy has left PMs and associated mining stocks, yet fundamentally nothing has changed.

Garth calls himself a contrarian, whcih may be true when it comes to real estate, but not the market. Now is time to start thinking about dollar cost averaging (back) into this sale on PM’s.

There is no comparison between a REIT or a utility stock and dot-coms. The former own assets and cash flow, or are regulated monopolies. The latter were profitless and entirely speculative. Yes, like gold. A most ill-informed and emotional comment. — Garth

#286 Aussie Roy on 04.14.13 at 12:32 am

#135 Charles Ponzi: “Sandor is obviously not living within his means and the US is no different.”

Good point. At some point the bill comes due for both.

Of course not. People are not countries. There is no comparison. Citizens are in far worse shape. — Garth

………………………………………………………………………..

Not sure if the household versus country comparison is valid. Like all countries the US dictates it’s own revenue, I doubt Sandor could just dictate to his employer what his revenue (wages) should be based on his requirements to meet his current expenses.

Attempting to understand macro economics by comparing them to a household, is just plain silly. Govt’s control their income, very few if any individuals have this type of control.

I agree with Garth, with an additional warning, beware of rising taxes and govt charges. Never forget, we are the ones who fund govt and service their (our nations)debts.

#287 Heather Washburn on 04.14.13 at 12:39 am

Uh – “A generation ago people paid off their houses in their thirties. Now, says CIBC, the average 57-year-old is still indebted.”…. A generation ago (say 20 yrs) the average 57-year-old, WAS in his/her thirties. Therefore I cannot get my head around the quoted statement.

#288 KommyKim on 04.14.13 at 1:06 am

RE: #77 John in Mtl on 04.12.13 at 10:35 pm
We’re not the only ones in trouble. The Netherlands at a glance: “… Consumer debt amounts to about 250% of available income…

I guess you could say that the Netherlands is under water. LOL!

#289 McLovin on 04.14.13 at 1:09 am

“If we were in the 1940s we would be fighting and dying and the 1% would not dare pull the shenanigans that flood the news. There would be a a new social contract pending to be negotiated with battle hardened veterans that understand all to well that freedom is not free and elites would ensure ”

BLAH BLAH BLAH

Except its not the 1940’s. You and your ilk are camping out on lawns, smoking pot and collecting Gov’t benefits. Don’t expect the rest of us to feel afraid of you or sorry for you.

#290 tkid on 04.14.13 at 1:14 am

#167 Ditto. Your experience is mine.

#291 DonDWest on 04.14.13 at 1:50 am

Here’s what Garth and the top 1% don’t understand: What chance do I have of winning a game against the game programmers? And make no mistake – it is a game.

Best to clear the board, I say. . . It’s a lost cause to compete directly against the very people who wrote the rules.

So what’s the solution? What’s our imperative? Making a new game board? The people who have dedicated their family bloodlines towards manipulating societal game boards for generations will simply hack any new game board created.

We must fight our human nature – we must fight the need for security and “order.” Our desire for security and order allows the rich parasites to feed on us. Our imperative is that we must embrace chaos. The rich cannot control us when there are no rules to be used as a vehicle of control. For the rich have a lot more to lose in a world of chaos than we do – here we have leverage.

Chaos theory – look it up my young revolutionaries.

You sound like me in the 1960s. Fortunately I got over it. — Garth

#292 David McDonald on 04.14.13 at 2:06 am

I know two young couples who have probably committed financial suicide by buying a house this year on credit. They don’t read this blog. They are naive and just wanted to live like their parents.

Essentially they are just like my wife and I were 30 years ago. The big difference is that in the early eighties interest rates were sky high so housing prices were low. Buying a house was the smartest thing we ever did but now the rules have changed; for the worse.

#293 Onthesidelines on 04.14.13 at 4:32 am

From Bloomberg: “The U.S. produced 84 percent of its own energy in 2012, the most since 1991, according to data from the Energy Information Administration, the statistical arm of the Energy Department. The measure of self-sufficiency rose to 88 percent in December, the highest since February 1987. U.S. production of crude oil in the fourth quarter of this year will exceed imports for the first time since 1995.” — Garth

Sort of like repeating a Realturd data quote from the Vancouver Sun on the rosy housing situation.

Why do you accept media crap in one case and not in another?

Bloomberg is a beacon of journalist credibility, rare among news outlets today. Beyond that, this is simply a recounting of statistical data from the US Energy Department. — Garth

#294 Mr Buyer on 04.14.13 at 7:33 am

#286 McLovin on 04.14.13 at 1:09 am
BLAH BLAH BLAH

Except its not the 1940′s. You and your ilk are camping out on lawns, smoking pot and collecting Gov’t benefits. Don’t expect the rest of us to feel afraid of you or sorry for you.
……………………………………………………………
BLAH BLAH BLAH. That just about says it all…

#295 Herb on 04.14.13 at 7:36 am

Garth,

we certainly can give “class warfare” a rest here, but Mr. Buyer is absolutely right in his #274. Great Britain was “liberalized” after World War I and “socialized” after World War II because the lower classes who had fought in such numbers could no longer be ignored.

And let’s not ignore the effect the WWII “Veterans Charter” had on Canadian society. (See the last chapter of Jeffrey A. Keshen,Saints, Sinners and Soldiers: Canada’s Second World War, UBC Press 2004) Any war changes the society that fights it, a good reason to keep conflicts confined to small professional armed forces.

#296 Mr Buyer on 04.14.13 at 8:05 am

#274 Mr Buyer on 04.13.13 at 9:54 pm
Give the class warfare a rest. It’s getting old. — Garth
…………………………………………………………………..
Hey, I did not incite 1940 and I am only underlining what you yourself have been highlighting recently. The great unwashed can eat cake I guess. I have to literally work through the night to cover bare-bone living expenses and I had to create the job myself. There is no getting ahead this next year simply because almost everything is way too expensive and most people’s salaries do not cover these expenses. For me this year is simply trying to minimize depletion of savings. While the answer provided by yourself is wise investing and this is an option available to myself in truth most people do not and will not have this option available to them. You can call it class warfare if you like but it feels more like degradation of quality of life. I learned a long time ago it is not in my best interest to harangue people I need so I will not mention the multitude of Canadian poor and the worsening quality of life they and their children are experiencing in the comments section of your blog, after all it is a relatively free internet and I can find the proper forums and blogs to bandy about such ideas in. Consider class warfare and anything remotely close to it rested.

#297 Herb on 04.14.13 at 8:07 am

#288 McLovin,

your invincible neandercon ignorance is showing.

#298 Steven on 04.14.13 at 8:27 am

With all due respect Garth you are either in denial about certain things or your knowledge of how the world really works has limits. The gold price fell not because of lack of value or public disdain for it but because the the price setting mechanism is in the hands of financial institutions and they naked shorted gold by 500 tons on friday. It is market manipulation plain and simple and it is not an anomaly, it is standard operating procedure.
They do it because they can, because they think suppressing the price defends the fiat currencies which it does not and for religious reasons found in the Talmud.
Robbing the gentiles is allowed and is profitable according to their religious teachings!
Your not an Illuminati type or a jew are you Garth?
If not wake up ,smarten up and face reality. And don’t you dare give me any of that crap about being a conspiracy theorist, gold bug or an anti semite. If you even try then I will know and others will know that you are playing for the wrong team for sure.

I have allowed publication of this post so visitors here will understand why this poster is now banned from participating further on this blog. — Garth

#299 X on 04.14.13 at 8:34 am

re #96 -how were you able to cash out your tfsa in july 2008 when they did not start until 2009?

#300 Piccaso on 04.14.13 at 8:56 am

Anyone notice RBC a sponsor at the Masters.

#301 Eaglebay - Parksville - Victoria on 04.14.13 at 10:15 am

Lessons from the past.
Capitalism doesn’t exist.
We are screwed by politics and tree huggers.

http://www.washingtonpost.com/opinions/fareed-zakaria-could-margaret-thatchers-reforms-work-in-2013/2013/04/10/68e58eb4-a20b-11e2-82bc-511538ae90a4_story.html

#302 Don on 04.14.13 at 10:41 am

re-#298 Steven on 04.14.13 at 8:27 am

——————————————————————–
Do you Laugh or Cry?
I am convinced I couldn’t do what you do.

#303 Tony on 04.14.13 at 10:47 am

Re: #285 Blair on 04.13.13 at 11:52 pm

The problem is most people are too young on this blog. They don’t understand how the world economies work. I’d venture a guess and say currency funds will provide the highest returns for the coming decades in the future. Why people chase things is beyond me? That seems to be the cardinal mistake young people make today.

#304 Gunboat denier on 04.14.13 at 11:13 am

210 Fed-up – no, no hatred towards bloggers who have been successful. In your case, it’s the attitude that puzzles me. You called Canada a frozen second rate
country with 34M pizza guys. You have also contradicted yourself. These leads me to doubt the sincerity of your claims. But hey, it’s just a blog.

#305 Smoking Man on 04.14.13 at 11:16 am

#298 Steven on 04.14.13 at 8:27 am

Must of felt good getting that of your chest. Was 911 and inside job. Absolutely… So what…. Let’s assume your analysis of how the world works is correct, have your stopped to consider what the alternative would look like, I have its called Mexico….. Gangs and guns and death.

Your rant was definitely anti semitic…… What your real problem is you don’t know how to make loot and can’t blame yourself so you target others…

From the begging of humanity there has always been injustice and up until the time an asteroid wipes out all life on earth there will be injustice here and there…

We living in the western world got it good compared 99 present of the world population….

Get over it, start a business make money and stop blaming others for your shortcomings…

#306 Ralph Cramdown on 04.14.13 at 11:19 am

Study this list: http://en.wikipedia.org/wiki/List_of_Canadians_by_net_worth

For the most part, this does not appear to be the spats and monocle set. Many of these people are first or second generation wealthy, while the top two are third generation. I would also note in passing that, contrary to oft seen assertions, most of Canada’s wealthiest did not make their money in real estate, though some did.

This country is still a land of opportunity, entrepreneurs are encouraged here to a greater degree than in much of the world, and tax rates for people who save, invest or start a business are far less onerous than for those who labour for a wage and spend it all. If that’s class warfare, pick a side.

#307 Dr. Hoof - Hearted on 04.14.13 at 11:32 am

DEFEND CANADIAN WORKERS FROM DISPLACEMENT. TURN THE FLOOD OF TEMPORARY FOREIGN WORKERS INTO A TRICKLE

ON LINE PETITION to sign, click on link.

Not on this blog. — Garth

#308 Godth on 04.14.13 at 11:46 am

#303 Tony

“The problem is most people are too young on this blog. They don’t understand how the world economies work”

If you understand how Macroeconomics works you’ve been terribly cruel keeping it a secret all these years. Works for whom?
Search Paul Krugman Steve Keen and start reading. There’s a war of words and ideas taking place among economists at the moment over macroeconomic theory. Neo-Classical/ Neo- Keynesians versus Post- Keynesians and MMT (modern money theory).
They even got into the money multiplier. The Federal Reserve admits it doesn’t work as assumed. Why does the Fed. then act as though it does?
http://pragcap.com/your-textbooks-lied-to-you-the-money-multiplier-is-a-myth
We’ve been operating under so many fallacious assumptions, and continue to do so with cheers from the cheap seats.
Works for whom?

#309 DonDWest on 04.14.13 at 11:46 am

#282 Small Town Steve

“I too feel bad for those that lost their jobs due to outsourcing (or other reasons). On the bright side they can seek employment and/or retraining elsewere now.
Being unemployed is never a permanent situation!”

It’s financially unsustainable for the individual to be employed for five years and then have to “retrain” for another four years in yet another field that may last only five years. That’s the structure of the economy at present – that’s how fast she moves.

The frustration coming from my generation mostly stems from the fact we’re expected to adapt, but our elders stubbornly refuse to do the same. In a world where people are expected to have 5-7 careers in their life time, asking for a college degree makes ZERO sense, yet that’s exactly what the baby boomer employers’ demand (and yet don’t respect). Asking for college is old school.

Long story short, I’m sick and tired of having to go back to school a million times, stuck in perpetual “retraining and reinventing.” I’m now entering my 30’s; I’m not being permitted to grow up because I’m constantly stuck in a classroom due to a bad economic and societal experiment that we call globalization. It’s unsustainable for me at a micro-economic level; it’s unsustainable in the long run for society at a greater macro-economic level. I’m not independently wealthy; I don’t have the time and money to go to school at an interval of every five years and maintain a proper adult lifestyle. That’s a luxury for the rich aristocracy classes.

“Just get a better education kid,” is a lazy man’s response to how to deal with structural unemployment at both the micro and macro-economic level. That argument should be banned in debates of economic policy, and yet it’s preached, mostly because any idiot can preach it. I’m done with schooling, I’m not stepping foot in that environment ever again, and many “young people” now feel the same. We’ve wasted more than enough time, life, and money in that machine – it’s a meat grinder. We’re not falling for that trap anymore.

I guess that means you’ll be hiring more foreigners then, people too stupid to understand that paying 50K in student loans (including the opportunity costs of up to four years), and then finally getting a job that pays 30K to 40K a year GROSS for five measly years is a shitty deal. Hiring based on people’s inability to do the basic economic math I outlined above confirms my suspicion that employers are correspondingly hiring people who are dumb, dumb, and dumber. They don’t value intelligence. Good luck Canada in building an economy that increasingly values stupidity above all else. Good luck!

“Employers are correspondingly hiring people who are dumb, dumb, and dumber. They don’t value intelligence. Good luck Canada in building an economy that increasingly values stupidity above all else.” It must be an awful burden to be so much smarter than “foreigners.” I just don’t know how you cope. — Garth

#310 Behavioral Finance on 04.14.13 at 11:54 am

Let’s get something straight. To short a asset such as gold you need to borrow it first so you need to find someone to lend you their long position. Naked shorting is a fairy tale to make excuses for a fall in asset price. The reality is big players are getting out of safer assets and moving into riskier once.

Since when is gold, which pays no interest or dividends and regularly incurs volatile and unpredictable swings in value, a ‘safe’ asset? Actually investors are deserting a risky one for safer financial securities with cash flow. — Garth

#311 The Prophet Elijah on 04.14.13 at 12:00 pm

The American:
“the largest oil reserves AND natural gas reserves in the world are sitting not only in North America, but underneath U.S. soil itself.”

———————————————————-
Source?

#312 Tom Vu on 04.14.13 at 12:09 pm

#281 Smoking Man on 04.13.13 at 11:25 pm

This 18 year old scotch…… Wow

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

Dirty Old Man … stick with someone your own age.

#313 Canadian Watchdog on 04.14.13 at 12:14 pm

Since when is gold, which pays no interest or dividends and regularly incurs volatile and unpredictable swings in value, a ‘safe’ asset? Actually investors are deserting a risky one for safer financial securities with cash flow. — Garth

Just admit your belly can’t handle volatility. The cure to that is to ignore monthly noise and look at long term fundamental trends.

Year S&P500 Gold
2005 3.0% 17.8%
2006 13.6% 23.9%
2007 3.5% 31.6%
2008 -38.5% 4.0%
2009 23.5% 25.0%
2010 12.8% 30.6%
2011 0.0% 7.8%
2012 13.4% 8.7%

Average 3.9% 18.7%

Don’t miss it again Garth!

Go patronize someone else. Key ingredients of safe are low volatility and consistent cash flow. Gold provides neither. — Garth

#314 Small Town Steve on 04.14.13 at 12:23 pm

#309 DonDWest on 04.14.13 at 11:46 am

“Just get a better education kid,” is a lazy man’s response to how to deal with structural unemployment at both the micro and macro-economic level.

Move to Alberta.
Pick up a trade. Become for example an apprentice welder. Starting wage usually 18-20 an hour. Work is 10-12 hour days. After months go to welding school for 3months voila you are a first year apprentice. You get a raise. Rinse and repeat for 3 years. Get your journeyman B pressure ticket. Oh and because you worked all through your apprentiship guess what? No student loans.
Good B pressure welders make 300-500k/ year.
Option B? Become an apprentice pipe fitter if you suck at welding, it is an art form all in its own so you either got it or you don’t.(you can still do structural though).

Now stop crying that there are no opportunities.

While I agree with the premise, B pressure welders appear to earn about $35 an hour, or less than $80,000 per year. Let’s have a reference for a welding job that delivers $400,000 annually. Or was that an Albertanism? — Garth

#315 Canned Goods and Buckshot on 04.14.13 at 12:24 pm

Eaglebay says “We are screwed by politics and tree huggers.”

Your link to the Washington Post article on Thatcher’s reforms does not support your statement. What is your point?

#316 Dipper Tar Dust and the con bots from mars on 04.14.13 at 12:35 pm

HA HA this one was on for 230 just a few months ago… now its on for 200.

http://www.realtor.ca/propertyDetails.aspx?propertyId=13033985&PidKey=-87063827

#317 Dr. Hoof - Hearted on 04.14.13 at 12:37 pm

#309 DonDWest on 04.14.13 at 11:46 am

Long story short, I’m sick and tired of having to go back to school a million times, stuck in perpetual “retraining and reinventing.” I’m now entering my 30’s; I’m not being permitted to grow up because I’m constantly stuck in a classroom due to a bad economic and societal experiment that we call globalization. It’s unsustainable for me at a micro-economic level; it’s unsustainable in the long run for society at a greater macro-economic level. I’m not independently wealthy; I don’t have the time and money to go to school at an interval of every five years and maintain a proper adult lifestyle. That’s a luxury for the rich aristocracy classes.

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

I hear you….

I love this re-training crap red- herring.

When BC Forestry was hit….and major layoffs…the Gov’t rolls out all sorts of these “retraining programs” usually to give them basic computer skills..like to people in their 40’s and 50’s. Gives them all important false hope.

Now we see major ad campaigns for skills training….y’know, the token female electrician etc.

IMHO, the scam is to keep people in this education mode…which keeps their eye off the ball. Instead of a market flooded with useless university degrees, we will end up with a flooded market of tradespeople, as I feel that we have overbuilt and sucked job from future generations.

There was a guy down my street who was a plumber. In 2 years he came home with about 4 different company trucks.

Keeping people in school buys time for Gov’ts. Its not much different than a juggler keeping as many balls in the air.

#318 Small Town Steve on 04.14.13 at 12:40 pm

If you own tour own rig you can get 150/hour

#319 Ralph Cramdown on 04.14.13 at 12:51 pm

#313 Canadian Watchdog — “Just admit your belly can’t handle volatility. The cure to [volatility aversion] is to ignore monthly noise and look at long term fundamental [gold price] trends.”

… he said, posting numbers for only the last 9 years. The S&P 500’s total return with dividends reinvested since August 1971 is 5463%. Poor old gold only managed 4220% with greater volatility. And that through several periods of high inflation.

Volatility is something only enjoyed by gamblers, day traders and option writers. The rest of us only put up with it in exchange for hopefully higher returns.
http://dqydj.net/sp-500-return-calculator/

Friday was fun. Gold down 5%!!!!! You’d think the world was going to end. My portfolio regularly sees a stock up or down 5% in a day and I don’t sweat it because I know that each one is backed by a business generating cash, with real assets and real customers, and that continuing income stream has value. Goldbugs know that there’s no level gold can drop to where it will be supported by dividend seekers, value investors, corporate turnaround or breakup artists, industrial users stockpiling for the future, or anybody else. Somebody somewhere has a model where jewellery demand and marginal cost to mine (if you can figure THAT out from miners’ disclosures) are at equilibrium, but I bet that isn’t providing support at anywhere near current levels.

#320 brainsail on 04.14.13 at 12:58 pm

#311

The Green River Formation contains the largest oil shale deposits in the world.

#321 DonDWest on 04.14.13 at 12:59 pm

‘It must be an awful burden to be so much smarter than “foreigners.” I just don’t know how you cope. — Garth.’

Not all foreigners are stupid – in the example I gave many locals have fallen for same trap. It’s just that a person from another nation is obviously more ripe to be exploited in the education for a job scam. I know a Canadian private college that charges on average three to four times the regular tuition price tag for shoddy degrees that would at best qualify people as a secretary for their given positions. 90% of the students enrolled are international students – just saying it’s a problem, and pretending it doesn’t exist in the name of political correctness solves nothing.

That being said, employers still hire those international students for that secretary position over a local High School kid. Regardless of whether they paid 50K in tuition to get the position, employers don’t care, because they didn’t have to pay for it. Hence my argument you can’t compete directly against such stupidity.

Hiring a foriegn-born person over you is ‘stupid’? Better work on that. — Garth

#322 Godth on 04.14.13 at 1:00 pm

Dishwashers make $80K a year in the tar sands, it’s called overtime (and union contracts). It’s not the most expensive oil in the world for no reason. It’s also a very poor ROI in energy, 5:1.
Welders make a lot more than $35.00 an hour, regular time, let alone all the overtime. The big, big bucks are made owning your own welding truck.
It’s not uncommon to meet people making $100.00 an hour doing various things up there.

Show me the $400,000 welder. — Garth

#323 not 1st on 04.14.13 at 1:02 pm

Garth, I think if you stay on RE and financial assets in your posts that will keep a lot of these doomer metal freaks from coming here. Taunting them just makes them crazier.

For you people who think that gold is some failsafe currency in a financial crash are obviously taking crack cocaine. If such an event does occur, things will jump right over gold to bartering. You going to ride into the big city with your gold bars and buy something while gangs of looters roaming the streets- get a grip. You will be separated from your hoard by whoever has the greater firepower. Garth is right – go get a goat and a well and a piece of land. Much more valuable.

#324 brainsail on 04.14.13 at 1:04 pm

#311

Link…

“An American Oil Find That Holds More Than All of OPEC

http://abcnews.go.com/Business/american-oil-find-holds-oil-opec/story?id=17536852#.UWrgoW8o4zs

#325 Tom Vu on 04.14.13 at 1:06 pm

Car in blog photo from Ontario.

It has sat parked overnight and still not up in blocks and windows smashed ?

Must be parked in Surrey.

#326 McLovin on 04.14.13 at 1:07 pm

This blog is really going down hill.

Class warfare, racism, panicked and angry gold investors, conspiracy theorists, survivalists and of course Smoking man. These make up more than 50% of the posts.

Garth can you do some spring cleaning?

Just watch me. — Garth

#327 Godth on 04.14.13 at 1:08 pm

Show me the $400,000 welder. — Garth

I can show you a $200K a year Chef with some authority. Welders, particularly if they own their own rig(s) are earning a lot more. Is this news to you?

Show me. — Garth

#328 DonDWest on 04.14.13 at 1:11 pm

#314 Small Town Steve

“Move to Alberta. Pick up a trade. Become for example an apprentice welder. Starting wage usually 18-20 an hour. . .”

I’m already paid around that much and here it doesn’t cost 500K for a mobile home – unlike Fort Mac.

Sorry buddy, Alberta isn’t the holy jobs grail you make it out to be – and with the increasing oil reserves being discovered in the United States – we’ll soon find out just how “robust” the mighty Albertan economy truly is. . .

I guess I forgot to add “just move to Alberta” as the next lazy man’s response. Another I see popping up lately is “just move to Shanghai. . .” *Trying to hold in my laughter*

I don’t even know why I bother arguing economics with conservatives anymore – it’s more than obvious the patient is riddled with cancer, but deniability is soooo sexy amongst conservative circles.

#329 Oilsands Guy on 04.14.13 at 1:12 pm

# 314

While I agree with the premise, B pressure welders appear to earn about $35 an hour, or less than $80,000 per year. Let’s have a reference for a welding job that delivers $400,000 annually. Or was that an Albertanism? — Garth

++++++++++++++++++++++++++++++++++++

No company will pay an employee close to that much, but it certainly is possible for an independent contractor.

Most good tradesmen in oil and gas work about 75% of the time or more. Let’s say 280 days / year. Those days will be 12 hrs or more, let’s use 12 hr days as an average. $100 an hour at these hours makes $336,000 per year. Mind you, that is not take home income. The guy’s fully equipped truck ($175k?), supplies, fuel, etc, have to come out of that.

#330 Fed-up on 04.14.13 at 1:15 pm

#304 Gunboat denier
—————————————————————————

Ummmm no, you contradict yourself…you said I was FOS after sarcastically saying I was rich and should sell everything I own at 75% of its value totally (and intentionally) missing the point of my post that several others 100% concurred with, so nice try pal. I also said that we had 34 million people living on the world’s second largest land mass yet value our property as if we are falling off of the edge of the earth. And, I said we attract 300,000 pizza delivery specialists every year…I should have said that some of those are taxi drivers as well.

Oh and BTW, it’s April 14th and still snowing in most of the country including Victoria BC and the warmest spot in Canada as I write this, is a mind bending 6 degrees, so I stand by the fact that this is a 2nd rate meat locker with a false economy of paper pushers and public sector leaches who speculate and build nothing of substance.

That is, until you can prove otherwise.

#331 Old Man on 04.14.13 at 1:19 pm

Imao, as just saw the latest stats for a course that I know about, whereby, a young man or lady out of highschool can take a two year course with unlimited demand for decades; be it full time when young or just part time in later life. I got it a bit wrong as it pays more than I thought, so how about the median earnings in Canada at $67,000 a year working under the best possible office conditions; no university degree is required, but a two year community college course of study, and you are off and running. Now you can work with a professional as an assistant, or take advantage of new changes in the law to go private for the big money.

#332 Canadian Watchdog on 04.14.13 at 1:46 pm

#319 Ralph Cramdown

If we're talking big money and total returns, then start compounding lease rates with gold. Gold wins.

My portfolio regularly sees a stock up or down 5% in a day and I don’t sweat it because I know that each one is backed by a business generating cash.

Of course, this is the common muppet behavior that hedge funds and arbitrageurs understand very well, because the little investor always seems to find comfort (like sheep in a herd) with his or her money where volatility is low and presumed safe. What does big money know? They know that 80% of the money is made in 20% of the time. Watch the model here at 18.20min

It's all good investing until that morning you come off the toilet and look at your screen and say, OMG!

#333 Godth on 04.14.13 at 1:52 pm

You don’t believe me I guess, since you didn’t post my comment. You should apply. http://www.local47.net/

When was the last time you had a real job?
http://www.youtube.com/watch?v=Mz_01tjBwAE

The only comment of your unpublished was a vid about Obama and cat food. May I remind you this is a free blog and you are my guest. Behave like one. — Garth

#334 Fed-up on 04.14.13 at 2:14 pm

@#329 Oilsands Guy

————————————————————————

So suddenly working nearly 6 days and 75 hours per week all year long, will net (but still before taxes) more like $160,000 – $200,000 after expenses and expensive equipment ownership… if you don’t drop dead from working harder and longer hours than a plow horse.

That’s a completely different picture those painted in posts 314, 322 and 327.

It’s a cowboy thing. — Garth

#335 Old Man on 04.14.13 at 2:21 pm

It is fine to talk about welding and other trades, as met a young woman a few years ago taking the welding gig for a cost of $15,000, and she was excited about her future; love youth who get fired up in life. The world has changed, and one must change the think process as to what is important, as the university degrees are not what they use to be, unless you are going all the way into a high level profession that costs a lot of money and years to complete.

Parents and their children must rationalize the future with demand from society and discuss this all with reality and facts. There are those with university degrees without jobs; there are those with trades or skills that will be layed off or a plant closes, or the Real Estate market goes south and construction workers have no jobs = no cashflow and bills to pay. Even the government workers are being thrown under the bus with cut backs.

Time to discover for your kids a new way of thinking to provide them a career based upon future demand so they can make a great living for years to come.

#336 Godth on 04.14.13 at 2:28 pm

The only comment of your unpublished was a vid about Obama and cat food. May I remind you this is a free blog and you are my guest. Behave like one. — Garth

I see you did publish it, apologies on that point. Yesterday you didn’t publish two vids. (Michael Hudson and Bill Black), it wasn’t the first time, your blog, you moderate, your perogative.

Here’s the thing though, I suppose I find it disappointing to see someone so good at calling B.S. in one sector being so apologetic in another. Oh, well, we all have our limits, I respect that.
You have a very derogatory, dismissive, authoritarian style. If your willing to dish it out…
Regardless, Peace.

#337 [email protected] on 04.14.13 at 2:40 pm

I’m not understand the foreign worker vs. local born CDN argument? Shouldn’t we take care of us first? Like France? etc.

And if university degrees aren’t what they used to be, what do you recommend career wise based on future demand?

Excellent idea. Let’s be like France! — Garth

#338 Timing is Everything on 04.14.13 at 2:43 pm

Just watch me. — Garth

Fuddle duddle.

#339 Devore on 04.14.13 at 2:45 pm

#324 brainsail

“An American Oil Find That Holds More Than All of OPEC

Deposits are not the same as reserves. There are indeed huge deposits in shale, but maybe 1% can be counted as reserves. “Shale oil” extraction and processing is even more energy and water intensive than oil sands, and the deposits in the US are simply not going to be unlocked.

And for what it’s worth, no one really knows the extent of Saudi oil deposits, except maybe the Saudis themselves, and they’re not talking. So any comparison is baseless from the start.

#340 [email protected] on 04.14.13 at 2:55 pm

That photo people were ALSO protesting and asking for more work. Is Canada really better than Europe? We need more jobs for Canadians who live right here. Why doesn’t Canada put CDN citizens first?

#341 sue on 04.14.13 at 3:02 pm

I see a lot of families paying $1600 for daycare and own 2 cars when the mom only makes $15/hr. They are paying money so that she can work and not raise their kids. It’s like they don’t own a calculator.

#342 sue on 04.14.13 at 3:23 pm

My Dad keeps telling me (for the last 18 months) that the market is going to CRASH and get into cash. I love reporting the gains of my diversified portfolio every 3 months..lol Thanks Garth.

#343 Ralph Cramdown on 04.14.13 at 3:46 pm

#332 Canadian Watchdog — “If we’re talking big money and total returns, then start compounding lease rates with gold. Gold wins.”

I think you’re reading those charts upside down. Isn’t the gold lease rate the rate you PAY to borrow dollars with gold as collateral? Who on earth would pay money to borrow gold, pay more money for its safekeeping in a vault, and then return it again?

Besides, even if there were periods when gold was in backwardation and you could make an extra percent or two a year, I don’t know that it would close the gap with the S&P. And actually, I thought we were talking about the average investor, not someone who needs a forklift to move his gold stash around…

#344 gladiator on 04.14.13 at 3:54 pm

@341 sue:
do you have kids? do you know what toll it takes on the mother?
1600 per month for daycare + 500 for the car, while making 15$/hr allows the mother to break even, but the time away from all that kid stuff helps her keep her sanity. I have a wife and 2 kids and know what I am talking about.
You see, life isn’t only about numbers, otherwise, people wouldn’t go on vacations, wouldn’t go to movies, wouldn’t eat out because all that is just throwing money away, right, sue?

#345 Stoopid Idiot on 04.14.13 at 4:34 pm

Ralph Cramdown

Friday was fun. Gold down 5%!!!!! You’d think the world was going to end.

It was great fun…. I averaged down on some great Gold& Silver producers

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

344 gladiator

Are you for real? You sound neutered

#346 DondWest on 04.14.13 at 5:33 pm

#344 gladiator

Yes, because working a sleazy corporate job for $15 an hour does so much to help your sanity and personal fulfillment over taking care of your own kids.

*Sigh* Where did we go wrong?!

Au revoir, l’empire de l’ouest!

#347 Blacksheep on 04.14.13 at 5:56 pm

“Class warfare, racism, panicked and angry gold investors, conspiracy theorists, survivalists and of course Smoking man. These make up more than 50% of the posts”
“Garth can you do some spring cleaning?”
———————————————————-
Yes Garth, great idea. Take your relatively open economic blog (housing focused) and sensor it to please a minority. Reduce action by 50% and make it boring. The only viable complaint from the above bitching is racism and you already apply the delete button judiciously. Look at the comment count. The more you whack the Dogs bees nest with controversial statements, the more your count exceeds 300, like today. If you don’t like what your reading, don’t read it.

Don’t fix what isn’t broken.

#348 TurnerNation on 04.14.13 at 6:46 pm

400th? Sign of the times: Dollarama is a real crackerjack – went bazooka with earnings last week.

http://stockcharts.com/h-sc/ui?s=DOL.TO&p=W&yr=2&mn=0&dy=0&id=p57160544975

The horsey set scrounging RC Cola?

#349 Gunboat denier on 04.14.13 at 7:57 pm

330 Fed-up – no snow here. 11C. Rode my bike. Maybe
I’ll work in the garden next. Now, exactly why are you
still here in this “second rate” country again?

Oh and I believe your comment at 334 is quite accurate.

#350 Gunboat denier on 04.14.13 at 10:52 pm

Fed 330

“you said I was FOS after sarcastically saying I was rich
and should sell everything I own at 75% of its value totally (and intentionally) missing the point of my post that several others 100% concurred with”

Maybe this from your comment a few days back might
shed some light here:

“A mere decade later I’d need to borrow nearly a million bucks and have to cough up twice the down payment while earning the same poke and paying twice as much for everything. Why the hell would I be entitled to over $800,000 appreciation and that kind of affordability in only 12 or 13 years?”

That was in reference to your house. I see a contradiction here between the appreciation which you
are not entitled to(?) but you wont sell at my suggested reduced price. You also own two other properties (in
other countries?) but dont consider yourself rich? What are we missing?

#351 Charles Ponzi on 04.14.13 at 11:22 pm

I know Sandor can’t legally print money like the US government, but I can’t think of any country in the past that was ever better off in the long term by debasing its currency and digging itself deeper in debt while a slight rise in interest rates would wipe out its economy.

Printing money is a short term solution but it will cause bigger problems in the long term. Currency wars have a habit of turning into real wars.

#352 The American on 04.15.13 at 12:24 am

At #311: The Prophet Elijah, ugh. Do you even read? If you did, you’d have read this a few years ago. This isn’t any big news. Or do they still tell you in Canada that Canada has the largest reserves?

http://www.ft.com/cms/s/0/8c2bcdf2-2c9f-11e2-9211-00144feabdc0.html

http://commodityhq.com/2012/america-home-to-the-worlds-largest-oil-reserve/

http://www.forbes.com/sites/eco-nomics/2012/11/13/u-s-to-become-worlds-biggest-oil-producer-but-hold-the-applause/

http://abcnews.go.com/Business/american-oil-find-holds-oil-opec/story?id=17536852

http://dailycaller.com/2011/03/10/new-report-says-u-s-has-largest-fossil-fuel-reserves-in-world/

http://www.ft.com/intl/cms/s/0/8c2bcdf2-2c9f-11e2-9211-00144feabdc0.html

#353 Charles Ponzi on 04.15.13 at 4:14 am

A funny comment offered below from SATYAJIT DAS concerning the effectiveness of a country printing money in an attempt to attain prosperity:

Ultimately, a policy of devaluation to attain prosperity is flawed, especially when all major nations implement similar policies. Everybody cannot, by definition, have the cheapest currency. In the words of one central bank official, it is like peeing in bed to keep warm. While it might feel good at first, it soon becomes messy and difficult to clean up.

http://www.abc.net.au/unleashed/4629622.html

#354 futureexpatriate on 04.15.13 at 7:09 am

All America had to do was get the conservatives out of the White House, and next year, the Congress.

Take a hint and do ye also.

#355 sue on 04.15.13 at 10:10 am

#344 Gladiator
The people I am referring to is retail pharmacy technician who stand up for 8 hrs straight, count pills, take verbal abuse from Oxycontin addicts, answer nonstop phonecalls and hate their job…LOL That’s a nice break from taking their own kids to the park and have a nice picnic…hahahahahaha You’re so funny. These jobs are even worse than the corporate sleazy job as per Dondwest. Yes, its a bad sign for society when decisions like these are made to get away from your kids.

#356 Canadian Watchdog on 04.15.13 at 10:40 am

#343 Ralph Cramdown

Isn’t the gold lease rate the rate you PAY to borrow dollars with gold as collateral?

GOFO is borrowing rate (cash for gold), LIBOR – GOFO is lending rate (gold for cash). Both are referred to at lease rates depending on the context.

I thought we were talking about the average investor, not someone who needs a forklift to move his gold stash around…

In that case, if we're talking a diversified stock investor vs coin collector starting from 1970, start including premiums on coins. Here's one issued by the RCM in 2011 that sells for around 3x spot, or go to ebay and look at premiums from coins issued in 1970 to present. Gold wins again.

#357 Jonah on 04.15.13 at 11:44 pm

I am looking for affordable houses in the GTA area. I have gone all the way to east as far as bowmanville and recently made an offer on a house for 640 in newmarket which was originally listed as 670. We knew that the pricing was inflated and seller was hoping to make a killing. We offered 640K based on the confition of the house. A 670,000 dollar house was kept like a beaten egg. Owner had done the paint himself on the entire house as you could see on the carpet and on the edges. The basement had a different story to tell, it was walk out and claimed to be finished by builder for an extra 40K as per the seller but it seemed as if the builder had forgotton to fix holes, hanging pot lights etc. The seller was king enough to not reject the offer though; they countered offer with 670K (original listing price). Our RE told us that they have not seen anyone so firm in the price. They expect us to get the house for 670K with paint job from hell, without Central Air, and Central Vac and without clauses like certified electric, and warranty from the builder (mind you house is 3 years old). I have decided that I will rent off some fool in GTA close to my work and have piece of mind and have him worry for mortgage and interest rate and insecurities while I worry about myself, my family and health. I am confident that some greater fool will offer them the listed price and buy the house AS-IS just like the fools that bought a 30 year old 500,000 house in old ajax for 550,000.

I am now praying and hoping that some crazy adjustment to fix the brains of these retarded investors.