Thank you

Thank you1

Six years ago, in a low moment for us both, his eyes met mine. So sad.

He’d been there four months, watching others come and go in just days. It was now apparent there was little love waiting for a big, hairy, adult, scared guy who’d chewed so much of his tail off he was forced to wear a plastic bucket on his head. Big patches of his body were shaved around the wounds he’d received before being rescued. Another abused dog, age uncertain, male, neutered, now left.

Months later I asked Dorothy how we should mark Thanksgiving. Let’s make it Bandit’s birthday, she said. Because we are all deeply thankful. And so it is.

A few random things to be thankful for:

That American politicians are not total idiots. The budding compromise will result in the debt ceiling being raised, the government re-opened and the recovery continuing. There will be no default on federal debt. But then, there never was any chance of a default. Surely you know that.

That doomers are utterly, irrevocably, indelibly wrong. No debt crisis. No hyper-inflation. No rerun of Zimbabwe or the Weimar Republic. No systemic financial collapse. No failed banks. No FEMA death camps. No stock market crash. And there will never be a Canadian bail-in which steals your savings. The fear industry thrives on misinformation, hyperbole and fiction. Have none of it.

Be thankful for freedom and mobility. Stuff we take for granted. ATMs that work, banks on every corner, deposit and investor insurance, free heart surgery, bridges that stay up (except in Quebec), regulated markets (except unregulated realtors). An open country, since that takes courage and confidence. That I can write this blog and still be employable. And unincarcerated.

A leaky tax system. You can finance a mat leave with a spousal RRSP and income-split at the same time. You can shelter $51,000 from taxes if you and your squeeze have TFSAs. Kids over 18? Another twenty-five grand each. You can put your mortgage in your own RRSP and make payments to yourself. You can borrow at 3% and invest in preferreds paying 5.2% with a dividend tax credit boosting the yield to 6% or more. You can get a refund cheque for moving assets you already own into an RRSP.

That gold has collapsed. The yellow stuff has lost 20% of its value this year alone, and 34% over the past two years. Gold mining companies are gasping for air and metalheads are reducing to whimpering there’s a giant bankster conspiracy to screw them. Why be thankful? Because gold’s a proxy for fear, doubt, uncertainty and Plan B. When jobs are hatched, profits made and confidence rises, why buy rocks that pay neither interest nor dividends?

That Vancouver exists. If it didn’t we’d have to create a benchmark for house porn. Any time you’re sweating about buying a little house in Toronto or Calgary for $700,000, just think about delusional Van where a crack house with a grow op in the basement, three illegal suites with moldy, unemployed occupants and a hooker on the porch sells for seven figures. Hell, there are currently 3,500 listings above $1,000,000 in the Vancouver area, compared with 2,600 in the GTA, which has five times the population and 30% higher household income. What are those people smoking? Oh, wait…

Dogs. They don’t know what leverage or debt is. No speculation or gambling. No greed, little guilt, no regret. Dogs, like babies, don’t care if you own or rent as long as you’re there. Money, rates or tax-free capital gains don’t exist in a world of smell, devotion and touch. Dogs don’t know they’ll die or fail. They live for the now, assume no tomorrow. You should have a creature with you – a hairy, drooling reminder that the only irreplaceable asset is time.



#1 Victor V on 10.11.13 at 9:20 pm

Happy Birthday Bandit.

And Happy Thanksgiving to the rest of the blog dogs.

#2 gordon gekko on 10.11.13 at 9:20 pm

now iunderstand when gordon said

Anglos they love animals…they hate people.

#3 GobbleGobble on 10.11.13 at 9:22 pm

I’m thankful I’m not a Turkey this weekend.

#4 lily joe on 10.11.13 at 9:22 pm

Time – our most precious commodity!

#5 shanks on 10.11.13 at 9:22 pm

like a peanuts special…

#6 Habbit on 10.11.13 at 9:22 pm

We adopted our first dog four years ago. My wife volunteered at the humane society on weekends for a year and wanted one badly. We had a cat for 16 years before. Kids are gone now so she has a creature to look after. Makes her happy and makes me happy too. Unconditional love these creatures have. Happy thanksgiving Garth and dogs.

#7 Ob on 10.11.13 at 9:25 pm

Garth ,i was just reading the local paper and this is fitting for to-nights post.'s post.

#8 Mike on 10.11.13 at 9:25 pm

Touching….is that your dog Garth?

Somewhere under all that hair, yes. — Garth

#9 Jeff on 10.11.13 at 9:25 pm

Happy Birthday, Bandit. Good for you for adopting a previously unwanted dog, Garth. You are both lucky for finding each other.

#10 Big Bear on 10.11.13 at 9:26 pm

I’m thankful for,, RT and last but not least

#11 Josh on 10.11.13 at 9:27 pm

Canada’s biggest problem

Well as much is this blog is about the housing market allot of comments are about the US, Which I believe is our biggest worry. First problem federal reserve. A legalized printing press owned by private investors that control the biggest economy in the world. And anyone tries to audit them get swayed away when the push comes to shove. I say canadians should start our our own private printing press other than BOC why not. On top of it they lend this money created from nothing to there budies intrest free. Lol what a joke. So in that regard yes the economy is recovering just fine with 85 billion intrest free every month. Now you have that privately owned printing press giving some of the most corrup coporation free money to buy these mortgage back securities. Research Jp Morgan and Goldman how many fines and illegal activities those two banks have been involved with. So you have fed controlling intrest rates so low forcing the average joe into the stock market to try to keep up with inflation, and these corrupt banks that can crash the market with the push of a button. So I don’t believe it is a conspiracy it is out in the open that a select few individuals actually controll allot of the finances in the world. If anything they deserve props for orcastrating it. I just laugh that the American sheeple just stand by while there corrupt government and banks slowly take away there money and continually set them up to take more when they decide to crash the market. Don’t get me started on the algorithms a guy has to compete with and the insanely under monitored dirivitives markets these banks are involved in that can crash the world economy. Unfortunatly in canada we need the US Military or else Canada should not accept any American dollars for giving our resources away to a uncontrolled printing press is madness. Also all thought history gold has brought currency back to it realization. But this time it’s different we in the west are invincible. Oh ya and the Fed couldn’t even give Germany its worthless shiney metel back for some reason. There job was just to hold the shiney metel they couldn’t even do that, but lets let theM dictate the world reserve curencies printing presses. Lol monetary system can work but this one we are all in is the biggest joke.
Also ECB just signed a 57 billion dollar currency swap with china. So when the other contries of the world realize they don’t need the US dollar the send them back and cause hyper inflation. This may derail Garth’s housing crash if this hyperinflation hit the west.

Ms yellen bumps up QE TO 120 billion before June 2014.
Apple $600 a share when q4 profit release

Take care

#12 waiting on 10.11.13 at 9:28 pm

I’ve had twenty years of joy, and fun from two great dogs. The daily walks brought new friends into my life, gave me exercise and a connection with the great outdoors and the unconditional love reminded me that money isn’t everything. Happy thanksgiving.

#13 Sherwood Park on 10.11.13 at 9:28 pm

And thank you, Garth for your wisdom and insight. Enjoy the long weekend!

#14 tigerbaby on 10.11.13 at 9:31 pm

Most people don’t realize it, but the true purpose of all these condo towers is actually to provide decoy and cover for the actually valuable towers against terrorist attacks. Those high value towers use to stick out like sore thumbs, and were easy targets for anyone with two weeks of flight training. Nowadays you practically have to be Luke Skywalker to reach one of these suckers.

The main problems with this grand plan have always been financing the cost of construction and the building staffing (so they look valuable). Finding people who are willing to pay for the construction, and then to staff the buildings for FREE?? Jackpot!!

It turns out the condo king has actually been the great architect in the fight against terror. Instead of taking blames, he should be rewarded with a political appointment … perhaps the office of condo general? or maybe the chief erectoral officer?

In the spirit of the holidays, I shall take this opportunity to say: Happy Thankstaking Sir!! Baaaaaah

#15 vicpaul on 10.11.13 at 9:31 pm

Very nice…thank you Garth – for your lucid thoughts on RE and how a regular guy can finance a life by working consistently, investing wisely and, most importantly, realizing that love is what we all really need to share and receive. Thanksgiving = giving thanks.

#16 Big Bear on 10.11.13 at 9:32 pm

Nice pooch Garth, mine was rescued from Northern BC after we learned we couldn’t have kids. My wife has turned Waldo into a therapy pet who visits with ol folks and ex military with PTSD. He’s saved her from depression while lifting other spirits simultaneously. Simply awesome critter, I should pay more attention instead of ruminating on what’s past or worrying about what’s ahead…

#17 RayofLight on 10.11.13 at 9:33 pm

We adopted a kitten about 5 years ago. Training with a cat is a long, slow and frustrating process. Unfortunately for our cat, Pat and I are slow learners.

#18 HDJ on 10.11.13 at 9:34 pm

Garth, Nice blog. Having two dogs is even better.

#19 not 1st on 10.11.13 at 9:37 pm

“You can borrow at 3% and invest in preferreds paying 5.2% with a dividend tax credit boosting the yield to 6% or more.”

Thats investing a HELOC in the market you are talking about there. Thought this was a bad idea all around a few blog posts ago.

For most it is. For many it isn’t. And you need not use a HELOC. — Garth

#20 Debt on 10.11.13 at 9:39 pm

It still confuses me why an expansion of debt for the US is considered a good thing. At what point does it stop? Without the increases, government and spending would have to severely shrink causing a large recession/depression; at least respect that point of view. Without the debt and stimulus the US would be contracting, and the Fed knows it – there will be no taper anytime soon. The US was downgraded last time not only because of the political bickering, but because the debt went up – again.

The US borrows 46 cents of EVERY dollar spent. In order to start paying off the debt, that means not only does that 46 cents of economic activity go, but also a portion of the remainder to actually start making payments. No-one can afford for this to happen, until it is forced by the lenders. If you believe this debt is sustainable, then so is Canadian real estate.

On gold, despite all the bears, many central banks are still buying large amounts. Clearly they are not sharing the view it has no use despite the fact their mandate is centered around currency management.

I do believe that real estate will contract, I’m sure people on this blog don’t want to be called ‘real estate doomers’, wrong year after year after year (so far). Why deride people who are cautious of the US – clearly there are reasons to be.

(I have a chunk of stocks, small amount of precious metals and affordable real estate btw, so not a basement ‘Doomer’).

#21 AACI Home-Dog on 10.11.13 at 9:40 pm

In Dog we trust !
And securities…by definition.
And I thank Garth that I read this tonight…
very good post.

#22 Fed-up on 10.11.13 at 9:42 pm

Thankful for being debt free and for owning a tiny slice of the warm sun in Scottsdale AZ.

Oh and my cockapoo Simba rocks too.

#23 Valley Renter Chick on 10.11.13 at 9:43 pm

Thanks for this blog Garth – quite informative and entertaining. Nice dog btw. Happy Thanksgiving :)

#24 Ralph Cramdown on 10.11.13 at 9:44 pm

#11 Josh — “First problem federal reserve. A legalized printing press owned by private investors that control the biggest economy in the world. “

Just because today’s topic is dogs doesn’t mean that shaggy dog stories are welcome. Here’s the short term chart:

The long term chart is on page 5 of this fascinating paper:

#25 Second Class on 10.11.13 at 9:44 pm


People think the greatest asset anyone has is a house or a skill they have. The only thing you can’t get more of is time. You can waste time you can reduce the time you have but you can’t get time back unless you are marty mcfly and have a buddy you call doc.

Kids are givwn video games and other means to waste time by parents who wasted all of theirs. Debt robs you of time. Work more to pay more for stuff you can get earlier in time.

Renting a condo and putting off buying a house just taking my time. Saving a few thousand a month so I can enjoy a little more of it instead of working. People keep telling me I am running out of time to buy a house. By the time that comes I will hopefully be able to buy in cash and be debt free.

This blog reminds me going without at this point in time will save me time in the future.

#26 Goody Niosi on 10.11.13 at 9:52 pm

Now that I know you’re a dog lover, I love you even more

#27 Sally R on 10.11.13 at 9:59 pm

Happy Birthday, Bandit.
Thank you for reminding us of the value of pet adoption for we humans and our animal companions.
Thanks too, Garth, for keeping the realtors honest!
Happy Thanksgiving!

#28 Nuke it on 10.11.13 at 10:02 pm

Our was a pregnant abused Pom. She was left at a men’s shelter. I hand delivered the pups after driving back to TO in a blizzard from Huntsville.

She only went walking with me. After years of unconditional love, she passed in my arms.

#29 Cow Man on 10.11.13 at 10:02 pm

Sir Garth:

Just like the unregulated Real Estate Industry, there is also an unregulated Life Insurance Industry. I know I got creamed, by it. You did say at one time you were going to write about the Life Insurance Industry. If I thought you would post it, I would write the post for you.

#30 Rural Rick on 10.11.13 at 10:08 pm

Happy Birthday Bandit. Thanks for taking care of Garth and standing watch when he is riding the fences.

#31 Observer on 10.11.13 at 10:08 pm

Dogs don’t know they’ll die or fail. They live for the now, assume no tomorrow. You should have a creature with you – a hairy, drooling reminder that the only irreplaceable asset is time.


#32 Ogopogo on 10.11.13 at 10:11 pm

I’m thankful for this blog, the prime mover in pushing me out of my financial illiteracy and house horniness. I’m thankful to Garth for his tireless efforts to educate, cajole and coax the Canadian public. To say that I hadn’t a clue about the meaning of “preferreds,” “REITs,” “rebalancing,” etc. would be a gross understatement. I was a babe in the woods, prey to the rapacious banking industry. Hence I’m thankful too for the hundreds of dollars in dividends streaming in, instead of being tied up in a deflating bubble of a house.

And I’m thankful for the wife, the cats and my sweet, sweet landlady for munificently subsidizing my condo unit to the tune of thousands of dollars a year.

Ain’t life good?

#33 Retired Boomer - WI on 10.11.13 at 10:15 pm

Picture of contentment.

We have 3 cats not because we don’t like dogs, but we both worked, and i was gone overnight frequently.

Dogs have masters, cats have staff. Both reflect upon us.

Whatever problems we have, our pets love us, and that’s worth everything!

Happy Thanksgiving to all.

#34 Tigger on 10.11.13 at 10:15 pm

Bandit, because he stole your hearts…

#35 Kate on 10.11.13 at 10:16 pm

Finding a rent with a dog in Vancouver area is a big PITA. Our current rental allows it but who knows what happens when we decide to move…

#36 Bill Gable on 10.11.13 at 10:17 pm

Happy Birthday to Bandit – and I have to agree that life without the fur friends, would not be the same.

Best to you and Mrs. Turner, and that lovely four footed friend.

#37 TurnerNation on 10.11.13 at 10:36 pm

I am sure Buster Reeko sends his regards.

#38 Thankful on 10.11.13 at 10:38 pm

Thanks Garth.

#39 Joseph on 10.11.13 at 10:38 pm

Damn, that’s beautifully written Garth!

#40 Yuus bin Haad on 10.11.13 at 10:38 pm

I can smell the dog; I can smell the sea. Knew one called “Sammy” – original, eh?

#41 Randy on 10.11.13 at 10:42 pm

Life is short….play with dog…..In the here…and now…

#42 Basil Fawlty on 10.11.13 at 10:49 pm

“That doomers are utterly, irrevocably, indelibly wrong”

Sounds like in your world the LIBOR manipulation never happened.

Gold was $300 in 2001 and it’s now $1300, some collapse.

Without the trillions in bailouts in 2008 and the ongoing $40B per month purchases of toxic bank assets, there would have been a lot more bank failures than Bear Sterns and Lehman Bros.

Plus, there could be an asteroid.

#43 FATHER on 10.11.13 at 10:50 pm

Merci! beaucoup

#44 Jan on 10.11.13 at 10:53 pm

Beautiful post Mr. Turner.
I love animals too, much more then people as they are pure.
People are filthy scum and will betray you in a second .

Happy birthday Bandit and all the best to you Garth. :)

#45 W-hat on 10.11.13 at 10:56 pm

You can kick a dog you’ve just met and five years later when he see’s you again, he’ll attack you. The difference between the dog and a person is that the dog didn’t spend those five years thinking about how to get even.

Happy thanksgiving.

#46 takla on 10.11.13 at 11:01 pm

bought a generator today,added to my freeze dryed military rations an topped up the diesel\gas Gerry-cans……..If they get the debt ceiling raised in time,i guess it’ll all come in handy for the over-due pacific westcoast quake,,,feeling a little insecure today

#47 Steph on 10.11.13 at 11:03 pm

Thank-you Mr Turner!

I read your blog every day, I love your writing style and humour. I hope you’ll find another addictive subject like this bubble when all is said and done.

Thanks again!

#48 Son of Ponzi on 10.11.13 at 11:07 pm

So they just kicked the can a little further down.
When this is over, no cute dogs will make a difference.

When it’s over you might understand why dogs, and what they represent, were all that mattered. — Garth

#49 CrowdedElevatorfartz on 10.11.13 at 11:10 pm

Hey! That looks like a Lunenburg dock !

#50 Charles Ponzi on 10.11.13 at 11:18 pm

A leaky tax system would be improved by the implementation of extensive land value taxes:

“There are many good reasons that so many tax economists are keen on land taxes: they improve housing affordability and increase housing supply; they’re very difficult to avoid; and they are relatively easy to administer (we pretty much already do this everywhere for local government rates). They encourage the efficient use of land; they do not distort markets; they reduce rent-seeking behaviour by investors; they discourage land price bubbles caused by speculative investing and they can recoup government expenditure on services and infrastructure such as public transport, libraries, parks, schools and hospitals. – See more at:

#51 Ford Prefect on 10.11.13 at 11:29 pm

Garth, we have a pound hound. He is 14 now. We got him at age 1.

A few days ago I had a nuisance bear up a tree. Lo and behold our old mutt came galloping the length of the property or around 1,200 feet. And kept the bear up the tree for the time necessary to deal with the bear. This from a dog that can hardly walk.

#52 Son of Ponzi on 10.11.13 at 11:29 pm

So much for the RE recovery in the USA.

The story is about Nevada. Yawn. — Garth

#53 Julia on 10.11.13 at 11:38 pm

I met a young woman on the way home from work today walking a puppy that looked exactly like the dog I had growing up, an adorable fluffy samoyed with a big smile and a pure white coat as soft as down.

The girl said she finally was able to get the dog she dreamed of having. I told her what an amazing dog mine had been and how thankful I was to have it as a child.

Happy birthday Bandit and happy thanksgiving Garth and all the fluffy blog dogs.

#54 Josh on 10.11.13 at 11:46 pm

Thanks for the read ralph

Thanks for all your work in this blog also Garth. There is allot of good in Canada and allot to be thankfull for. I apologize for sharing my realistic view before this long weekend.
Hope for the best plan for the worst and enjoy the ride, while responsible trying to protect our future.

Happy thanksgiving

#55 Cici on 10.11.13 at 11:48 pm

Wow, that’s Bandit in the photo below! He looks so happy and healthy; I bet he’s so glad you found him, probably every bit as much as you are to have found him too ;-)

Thanks be Given to All Blog Dogs (and Felines)

#56 HAWK on 10.11.13 at 11:49 pm

The most interesting aspect about the Debt ceiling and in general the debt ridden insanity of our times is this:

Throughout human history people have always sacrificed themselves and their well being for those of future generations. Man has always wanted his children to do better than himself. It is anomaly that for the first time in mankind’s history people are overwhelmingly content to leave the problem of crippling debt on the shoulders of the unborn and future generations, so they can avoid pain at present, even though the misery is largely their own fault.

I guess in time to come perhaps the actions of the American politicians in this generation may be summarized as:

“Never before in history were so many, screwed over so much, by so few”.

#57 Waterloo Resident on 10.11.13 at 11:52 pm

A guy I know down the street; he’s 27, has a new wife 26, kid coming soon. He works part-time in a 7-11, makes $18,500 / yr. He’s buying a used 3-bedroom detached house here in Waterloo for only 443,000, 10% down.

His mother is so proud of him, and his wife is happy that he’s finally ‘MANNED UP’ and done the responsible thing of buying a house.


#58 Cici on 10.11.13 at 11:55 pm

#17 RayofLight

Stop training (that’s for dogs)! That cat wants YOU to be her bitch ;-) Just love her and humour her, and everything will be A-alright.

#59 Nemesis on 10.12.13 at 12:04 am

“The fear industry thrives on misinformation, hyperbole and fiction.” – HonGT

Unfortunately, AuldPol… so do the Panglossians. But let’s not go there this evening.

Instead, here’s something just for you [and those other SaltyDogs whose K9Imaginations are prone to wander… from time to time.]

Premise: What if… a dog… yes. A dog. Were reincarnated as a Vicar at a delicate moment in ImperialHistory?

“Remarkable events often have ordinary beginnings.”



PS – At the certain risk of chastisement, I must nevertheless inquire as to whether, “a hairy, drooling reminder that the only irreplaceable asset is time” isn’t actually an earnest [if deviously encoded] admonition to exercise ExtremeCaution in AllMattersNuptial. AmIRight?

#60 Cici on 10.12.13 at 12:05 am

#28 Nuke it

Wow, that’s a powerful post that brought tears to my eyes. Gonna go hug my KittyCat now ;-)

#61 Cici on 10.12.13 at 12:07 am

#25 Second Class

Yes, you are buying yourself time for a better future. Smart move, keep it up!

#62 betamax on 10.12.13 at 12:08 am

We have a rescue dog too — my wife is feeding him turkey right now. We don’t get ours till Monday, but no need for the now-pampered pooch to wait!

#63 Herb on 10.12.13 at 12:09 am

When I saw the pic and read the first paragraph, I thought that Bandit had joined Checka. Glad I was wrong!

Happy Thanksgiving, dawgs as well as Neandercon mongrels, from a not-quite innocent abroad in Europe for a few more days. And thank you, Garth, for seven years of digital democracy, insight, and virtual friendship.

#64 Cici on 10.12.13 at 12:11 am

I love this line (Garth responding to #49):

“When it’s over you might understand why dogs, and what they represent, were all that mattered.”

#65 Cici on 10.12.13 at 12:16 am

#48 Steph

It’s his writing that’s addictive; not necessarily the subject, although real estate is an emotional heart string for the average Canadian.

Don’t you worry; Garth’s got lots to say on a lot of subjects; we’ll keep him writing!

#66 Cici on 10.12.13 at 12:19 am

#32 Ogopogo

And I’m thankful for your post! You pretty much said it all for all us Blog Dogs and Felines. And “munificently” hug…that’s Garth lingo ;-)

Thanks Garth, we love you and everything you do!

#67 Nemesis on 10.12.13 at 12:22 am

Shame on me… Neglecting Bandit’sBirthday!

Bandit, you deserve it… and you know he can afford it.

So… just bite him if he won’t stump for the Tix.

OhYes… AeroMiles or not, best to give AirCanada a miss this weekend.

#68 geogar on 10.12.13 at 12:29 am

Happy Thanks giving to you and Dorothy Garth… Blog on dude.! Your insight with honesty is music among the deafening delusional theatrics of doomers and porn stars.

#69 Vangrrl on 10.12.13 at 12:41 am

Happy birthday Bandit!
I rescued my 15 yr old beast off a street in Taiwan when he was a month old. His zest for life is something else.
When he came into my life I was reading a book on Buddhism and I recall a line in the book that said ‘When you are ready your teacher will appear’.
Dogs, our little teachers.

#70 Soylent Green is People on 10.12.13 at 12:54 am

You don’t need a job. You need money.

We’ve been programmed to believe that the only way to get money is to earn it.

It’s time to separate income from work.


Our federal leaders are just one cooked bird away from returning to Parliament. This Thanksgiving weekend, here’s what they’ll carefully pack for the big day. I liked the backbencher name-tags in Harper’s suitcase.


#71 Bryan on 10.12.13 at 1:06 am

Sorry, Garth. I feel so sickened today by realtor David Fleming’s post that i need to vent. Unfortunately, my comment was sensored and did not go through. I just have to post it here. Blog dogs can visit this entry at about the couple hunting for a 999,999 home with 5% down did not get it as the new CHMC rules require at least 20% down.

My comment was:

Face it, David. Nobody in their right mind would be willing to pay 35k in CHMC fees (hst included) plus the cost of borrowing 150k when they have the means to put down the 20% minimum. That’s what? 25% return on investment right off the batch. I feel so sickened that people like these are shopping for million dollar properties while shifting all the risks and burden on the shoulders of taxpayers.

#72 JimH on 10.12.13 at 1:06 am

#11 Josh

Really? You haven’t learned a thing over the last 4 plus years, have you???? Actually, that really means that you know even less… and that you suffer from an understanding deficit; a sort of deflationary awareness.

You just have to shriek out the same tired, old, and oh so dead wrong saw. Has the though ever crossed your cemented (as opposed to the treatable demented) mind that perhaps it is you rather than the Fed that totally misunderstands the complexities and vicissitudes of the modern monetary system? (like poor old Peter Schiff and Zero-Hedge… still mourning the political passing of Ron Paul.) I digress…

Josh, the modern monetary system is somewhat more complex than your already meager and rapidly shrinking household budget, and a little tougher than managing your piker 5-figure investment accounts (if you have any at all).

Bitter, resinous of heart, beaten down, totally a victim of the times and of circumstance, and above all else totally lost and losing, you still persist.

Had the Federal reserve done in 1929-1934 what the Fed has done 2008-2013, there would have been NO GREAT DEPRESSION; no ‘Ten Lost Years’. Get over it.

Learn about Fed bond buying/selling at maturity and the mysterious world of asset swaps, and you might speak with slightly more credibility! As I’m told that “ignorance is bliss”, you should be the happiest man on the planet!

Yet, you’re not at all a happy camper, are you Josh? You know why? Yes, you do, don’t you… Ignorance really is a fool’s paradise, and you want to think this is heaven. But your bitterness tells me that you haven’t really found the answers you though you had; right, Josh?

Finally; Once and for all: THE FED DOES NOT “PRINT MONEY”.

You and your kind can continue to gripe, snivel, whine, complain, fantasize and wallow in your festering anger, daily setting your hair on fire in your ignorant and unfounded righteous indignation; continually searching out any available fool’s logic and simpleton’s advice to bolster the walls of the bunkers you construct down those rabbit holes you have now come to call “home”.

Or, you can try to understand and evaluate the fix the world is in (or at least parts thereof) and expel some sweat and energy at struggling to find ways to profit from it. You see, Josh; this is what real men do! (and to much surprise, what many women do even better)

Sweet Jesus! Sounds like hard work, doesn’t it? Well, trust me, Josh! After some 23 years in the markets, it is. Now, Josh, blow your nose, wipe away those silly pre-pubescent tears and grow up!

On a lighter note; Have a good day!

Happy Thanksgiving, Canada!

For myself, I am thankful for this not-at-all pathetic blog and the Lesser-Fool who wastes so much of his precious time preaching to the choir while failing to convert the foolish virgins, (and their quivering eunuchs).

Just the same, it is joyful to behold the ire of Canada’s annoyed (totally unregulated) Real Estate Industry as they struggle to poke their soft, manicured and fragile fingers into the rapidly failing dike supporting Canadian real estate.

A tip of the hat to you, the Hon. Garth Turner, and may from the spring of 2014, see the winds continually blow at your back, and the sun brighten your face.

As for Bandit; you two richly deserve each other. (and the profits from the last 2 days of the market… and MORE… sorry Josh)

Garth, please keep up the good work!

#73 Antonio on 10.12.13 at 1:07 am

Gotta a seven year old black lab/Havanese mix. Happy liitle dog. Had a inflamed disc the size of new york that rendered her paralyzed in her back legs. No warning. Had surgery done on August long weekend. Recovery took a few weeks with support but now we just returned from a 30 minute walk. amanda is happy and barking at the school kids again just like it never happened. Garth, thanks for the reminder to look on the sunny side of life like our pets do. Happy Thanksgiving everyone.

#74 Dog on 10.12.13 at 2:13 am

One of the best posts yet! Priceless. Great pyranese X chow? Hairy is right!

#75 Buy? Curious? on 10.12.13 at 2:33 am

Nice post.

#76 Snake on 10.12.13 at 2:48 am

just think about delusional Van where a crack house with a grow op in the basement, three illegal suites with moldy, unemployed occupants and a hooker on the porch sells for seven figures. Hell, there are currently 3,500 listings above $1,000,000 in the Vancouver area, compared with 2,600 in the GTA, which has five times the population and 30% higher household income. What are those people smoking?


i guess he was talking about this property as the house is a block away from crack central and working girls plying their trade around astoria hotel. read my comment below

#77 Freedom First on 10.12.13 at 3:35 am

Raising a dog from puppydom to old age, and having had adopted an adult dog facing the needle, made me a better man. Took a while, but I learned. And the dogs still loved me.

Happy Thanksgiving everyone. Thank you for your blog Garth. Much appreciated.

#78 sheane wallace on 10.12.13 at 4:16 am

I saw the fall of communism. Everything was rosy until it wasn’t.
US raised the debt ceiling because they can’t pay their bills.
Printing money to pay the bills is not recovery. The frankennumbers in US stats are worse than in CA real estate.
Trashing gold is very interesting trend. Makes you wonder what is going on.
The dollar is being stretched, it would eventually break.
The doomers would be eventually right, the timing is the key here.
I give it 3-4 years max.
And then…

#79 sheane wallace on 10.12.13 at 4:19 am

JPM was found guilty in at least 8 major market violations. So no silver manipulation, right? Free market eh?
Think twice.

#80 sheane wallace on 10.12.13 at 4:34 am

As on the timing just watch the bond market.

#81 TheCatFoodLady on 10.12.13 at 6:48 am

A weekend for thanks, indeed & this week, the Main Squeeze & I had many great reminders of how much we have to be thankful for here in Canada. We took a small trip – first ever for him & first in a long time for me & had ample opportunities to appreciate this fantastic country.

Clean, safe travel – it’s a marvel to sit at an airport waiting for a plane & watch the busy ballet that is a bustling terminal. Toronto was awesome – people of every background & culture busting their butts to make it all work, to make the experience as smooth as possible for travellers. The airline that bumped us up to business class because my Beloved had never flown & because they could; the gate steward who made sure the Main Squeeze wasn’t too nervous about flying by explaining turbulence & other things those who’ve flown don’t think about.

Toronto – OMG – nobody is kidding when they speak of a forest of condos & construction towers. My brain knew this wasn’t sustainable & now I’ve seen it.

Overflying this beautiful country in the fall, able to SEE the land, the water, the fantastic geography & geology for ourselves. We have so much to offer to those willing to work hard & seize opportunities. I almost wept with the grandeur of it.

Regina – a completely different experience for both of us & such differences can only help with perspective if you keep an open mind. I can’t fathom how they justify their RE prices though – I had time to peek through their glossy RE booklets & was staggered – obscene prices.

RCMP Depot – we were there for my son’s graduation & as special as we always knew he was, he was average in this group of new, young constables. They’re educated, life experienced, polished, eager to learn, eager to SERVE. If they’re reflective of what the force is graduating these days & I think they are, we are in good hands. The staff, sworn officers & civilians are outstanding. We, the families were made to feel part of the law enforcement community – no, the law enforcement FAMILY.

For every moldy, slacker kid I know, I saw dozens of hard working, young men & women everywhere we went. They cooked & served our meals, worked in our hotel, worked in various capacities at transportation hubs & simply everywhere.

The country may be going through a rough patch but by Gawd, a positive attitude, strong work ethic & practical attitude to money, (saw plenty of that & it’s encouraging), is still out there.

Family, friends, the bounty that we truly have here. I may be short on cash but I’ll never call myself poor again – not as long as I live here with all the opportunities available.

And yes – the unconditional love provided by our companion animals; Bandit exemplifying those for the blog dogs – there’s no way to put a proper valuation on that save to say, no number you care to put down in enough.

Thanx everyone for making this such a great country.

#82 economictsunami on 10.12.13 at 7:11 am

America is in deep default denial (they are not alone) and magical thinking does not change technical factors.

If we just believe with all our hearts and click our heals together…

James Grant is the editor of Grant’s Interest Rate Observer: America’s default on its debt is inevitable…

I am most thankful for deny/delay the obvious and magical thinking/accounting; at least until they no longer work…

#83 drydock on 10.12.13 at 7:14 am

Let it be done.

#84 Mak the investor on 10.12.13 at 7:33 am

Morning Everyone,

“You can get a refund cheque for moving assets you already own into an RRSP”

Can anyone elaborate. Sounds interesting but could not figure it out.

Have a happy Thanks giving.

#85 The real Kip on 10.12.13 at 7:45 am

I had to read between the lines a bit but to hear you praise Canada and Canadian institutions on our Canadian Thanksgiving is great.

We have plenty to be thankful for in our great country. Happy Thankgiving to all.

#86 jaguar on 10.12.13 at 8:04 am

Bandits tail looks in pretty good shape these days. He lies facing into the sun to enjoy its light and warmth, but keeps a watchful eye behind him. Keeping an eye on Garth to make sure he doesn’t go anywhere without him.

#87 maxx on 10.12.13 at 8:16 am

That is one happy little creature, with an incredible smile. One of our most beautiful traits is ability to sympathize with those in need, both furry and otherwise.

Happy TG, GT and blog dawgs!

#88 Beach Girl on 10.12.13 at 8:36 am

Well I own the lovely Miss Daisy.

A tall Jack Russell smooth coat. Total muscle. Jumps in the pool in the morning, whether you are up or not. Needs minimum 1 hour walk time. She is 13 now, but once she was the fastest dog at the beach. I love the Jack Russell Club. Love to see those dogs play.

One of my sons years back. Teenage crap. Was yelling at talking down to me. I am only 5’3.

Well, Miss Daisy was having none of that. Jumped up and bit his ass through his jeans. Drew blood.

Happy Thanksgiving to all. Will burn a bird. Next day going to an all you can eat buffet. Cooking is not one of my strong points. Have fun.

#89 leopotato on 10.12.13 at 8:39 am

You brought tears to my eyes with this post. I worked at the local shelter for awhile recently. Confirmed my idea that most humans aren’t worth the skin they are in.

We adopted Maggie from the shelter. She wouldn’t even bark for the first two months.

Maggie lives with her new baby brother, Harry the chocolate lab in her parents fully paid for modest home, eating homemade dog cookies and cuddling up with her favorite cat Sadie (her and her baby were rescued from a cat colony of 50+).

We have the most important thing of all. Happiness. There is no way you can buy that!

#90 T.O. Bubble Boy on 10.12.13 at 9:05 am

@ #73 Bryan on 10.12.13 at 1:06 am
Sorry, Garth. I feel so sickened today by realtor David Fleming’s post that i need to vent. Unfortunately, my comment was sensored and did not go through. I just have to post it here. Blog dogs can visit this entry at about the couple hunting for a 999,999 home with 5% down did not get it as the new CHMC rules require at least 20% down.

Your comment is there… no conspiracy.

#91 live within your means on 10.12.13 at 9:08 am

#1 Victor V on 10.11.13 at 9:20 pm
Happy Birthday Bandit.

And Happy Thanksgiving to the rest of the blog dogs.

I’ll 2nd that. We still miss our fabulous black Lab/Shepherd mix. She was a tiny puppy I bought as a Xmas gift for hubby. We both grew up with dogs & various other pets.

#92 Toronto_CA on 10.12.13 at 9:11 am

#85 Mak the investor on 10.12.13 at 7:31

Garth just means if you have money in a non-registered account and still have RRSP contribution room left, you can move your money into an RRSP account and claim that against your income in the year and get tax you’ve paid back (or tax you will pay back if you bring the credit forward).

Nothing too fancy.

#93 T.O. Bubble Boy on 10.12.13 at 9:15 am

oh – and I agree with your comment… paying $35k in CMHC fees vs. finding $150k should be a no-brainer for someone who thinks that they can “afford” a $1M home.

Just because CMHC sets the limit at $1M, and every bank will hand over that $950k loan to any couple with 2 incomes and a pulse, doesn’t mean that you target to spend the max.

Also – it is typical mortgage broker / realtor spin to say things like David’s response:

“I don’t think it’s a matter of having $200K of assets; those people probably had better uses for the extra $150K, which could generate a return greater than the cost of borrowing the additional $150K plus CMHC cost.”

Ya – that’s it… I’m willing to pay $35k out of my pocket to CMHC because I have $150k sitting somewhere else making such a great return that I couldn’t possibly use it on the house. Given that the interest on a $150k loan would be say $5k-$7k a year, why wouldn’t you go that option instead of paying $35k up front?

So – I call B.S. on the claim that “people have the $$$ to not pay CMHC, but need the flexibilty to invest it elsewhere”.

#94 T.O. Bubble Boy on 10.12.13 at 9:21 am

@ #85 Mak the investor on 10.12.13 at 7:33 am
Morning Everyone,

“You can get a refund cheque for moving assets you already own into an RRSP”

Can anyone elaborate. Sounds interesting but could not figure it out.

RRSP contribution = tax refund.

#95 Julia on 10.12.13 at 9:25 am

#37 al on 10.11.13 at 10:27 pm

Garth, i think the end of this post might have sneaked past your watchful eye for hateful offensive comments.

It did. Fixed. Thanks. — Garth

#96 someone on 10.12.13 at 9:31 am

Even the Chinese don’t like the Chinese in Vancouver.


#97 brainsail on 10.12.13 at 9:32 am

For those of you that are thinking of getting a dog but hesitate with the idea of getting a rescue dog because it might be like getting someone else’s dirty laundry.

We are now experiencing our second rescue dog and have found out that they are truly special. Once they settle in with their new environment they seem to realize that “this time it’s different” and magically transform into thanks giving creatures.

Our new dog, a Cocker, came with the name Miles which we thought was wrong because miles are what you put on a car so we renamed him Chip as in chocolate chip to reflect his coat color.

Chip will be completing his six weeks of therapy dog training tomorrow and will be tested next weekend. Hopefully, he will graduate and then begin his volunteer duties that our previous Cocker named S’more (coat color) performed at the children’s orphanage. Hard to imagine in this day and age that an institute full of abused and abandoned children exists. Rescue Children!

Happy Turkey Day Canada, from Central Texas!

#98 T.O. Bubble Boy on 10.12.13 at 9:36 am

One last link for the weekend… let me introduce you to a shady lending practice that I didn’t even know existed:

“Mortgage Bundles” are a mortgage package where you get a first mortgage for up to 75%-80% of the purchase price (to avoid CMHC), and a second mortgage for say 5%-10% to provide total mortgage debt of 85% of the purchase price.

Based on what this article says, OFSI/CMHC seem to be clamping down on some of the more blatant “bundled” mortgages (e.g. where the bank actually advertises that they will get you an 85% LTV loan), but that these packages are alive an well elsewhere.

This comment sounds just like that other blog with the couple shopping for a $999k house:

“It would be sad to see these products regulated out of existence. 85% bundles offer a valuable alternative for borrowers who don’t qualify for traditional insured mortgages, and who don’t have a 20% down payment.”

Ya – it would be soooooo sad to not let people borrow their brains out! It is their god-given right to borrow 85% or more of the money to buy a house!

Ladies and Gentlemen, your “Economic Action Plan” hard at work.

Happy Thanksgiving.

#99 Matt on 10.12.13 at 9:43 am

Hi Garth,

I’m a 30 year old canadian male with about 25,000 in school debt but I make an ok living. Anyway, I had zero savings but picked up your book “the road ahead” in a used book store. I read 3/4 of it in about 2 days, it blew my mind! Gave me renewed hope though and lead to me immediately opening a tfsa and investing in an index fund with low fees. You’re doing a good thing for people here, its funny I tell people the stuff I’ve learned and most think I’m just way off I can tell. Conventional wisdom=always buy house, pay off debt always, etc.. But they don’t sit down and do the math to see what works best for their situation. Anyway thank you! You’re doing a good thing for people.

Sincerely, Matt
(A man with a renewed optimism for his financial future)

#100 live within your means on 10.12.13 at 9:45 am

I’m so thankful for SO many things, especially that I have survived Stage IV cancer for 10+ yrs instead of 12-18 mos.

Many more to come, P. — Garth

#101 jess on 10.12.13 at 9:47 am

turkey substitution :
Happy “Double Irish Dutch Sandwich,”
chart Corporate Net Cash Flow with IVA (CNCF
2013:Q2: 2,053.3 Billions of Dollars Last 5 Observations
2013:Q1: 2,258.6
2012:Q4: 2,117.9
2012:Q3: 2,209.1
2012:Q2: 2,197.8
Quarterly, Seasonally Adjusted Annual Rate, Updated: 2013-09-26 7:51 AM CDT

IMF explains “Double Irish Dutch Sandwich” tax avoidance
Box 5 Tricks of the Trade
page 56 of 106 figure 5.1 Tricks of the Trade
By Michael Hennigan, Finfacts founder and editor
Oct 11, 2013 – 3:25 AM

#102 Kilby on 10.12.13 at 9:57 am

#29 Cow Man on 10.11.13 at 10:02 pm
Sir Garth:

Just like the unregulated Real Estate Industry, there is also an unregulated Life Insurance Industry. I know I got creamed, by it. You did say at one time you were going to write about the Life Insurance Industry. If I thought you would post it, I would write the post for you.

Just watching all the life insurance scams advertised on CBC that are targeted at seniors ” Up to $25,000 coverage and you can’t be turned town” Or ” We want to leave a little to our granddaughter so she can buy a house” These people make the real estate boards look tame….

#103 TurnerNation on 10.12.13 at 10:04 am

The only thing going uppa upp UPPPA, is Bigarider’s deleted post count.

When the music stops…can they?

[Duke] paid $180,000 back in 2000 for what was then an air-conditioning repair workshop used by two brothers, one of whom lived upstairs.
It’s been bought by Brad Lamb’s development company for $1.3 million, over seven times what Duke paid for it, and will be demolished along with most of the remaining houses on Richmond to make way for The Harlowe, a planned 14-storey-tall condo building.

618 Richmond St. W., which Duke bought in 2001 for $280,000 and has rented out to employees and family members ever since. That one also sold for $1.3 million.

#104 Iso-Classical on 10.12.13 at 10:26 am

Touching blog Garth!

There’s always something to be thankful for…one should always have an attitude of gratitude!

Happy Thanksgiving All!

#105 Smoking Man on 10.12.13 at 10:27 am

Major UFO sighting last night 401 and 427

5 fighter jets in pursuit, heading south towards my place.

And I wasn’t at home. Damn

My son an his girlfriend witness. They don’t think I’m nuts any more.

#106 Not 1st on 10.12.13 at 10:31 am

Garth you sure have a lot of faith in people after seeing their stupid financial decisions and the reality that there are so many abused and abandoned pets out there.

#107 Catalyst on 10.12.13 at 10:34 am

Hopefully this trend will come north too…

#108 renters on 10.12.13 at 10:40 am

Garth, this is what makes your column so readable. Underneath all that sarcasm there’s a big, gooey, generous heart. These are my favourite posts. Happy Thanksgiving to you and bandit and thanks for reminding me that even though I really, really want a house, I am lucky to have followed your advice and be renting. Because ultimately I am so very lucky not to be drowning in mortgage debt and holding an ‘asset’ that is on inevitable course of depreciation.

#109 Randy on 10.12.13 at 10:44 am

Everything is fine…..Until interest rates normalize…

#110 Ronaldo on 10.12.13 at 10:56 am

#79 Sheane Wallace – Garth is not against having precious metals as part of a balance portfolio. All he is saying is don’t have more than say 5 to 7% of your portfolio in such volatile investments. The same goes for real estate. You should not have the bulk of your assets in one asset class. You need to have a balanced portfolio that will provide you with a stable return regardless of what happens out there. For example if you had invested 100,000 at the beginning of this year and put 25% of this amount in precious metals, you would have lost 30% or $7500. If the balance of your portfolio (75000) had returned you an average of 10%, you would have gained $7500. But, the net would be zero because of the loss on the precious metals portion. Plus, Garth likes to rattle the metal heads. And if there is manipulation in the gold and silver markets (I believe there is), it’s another good reason to lighten up on this investment as part of a balanced portfolio. I enjoy playing the silver market and have done very well on it in the past 5 years but I ensure that I stay within my limit which is less than 10%. Each to their own though.

#111 Oceanside on 10.12.13 at 11:07 am

#108 Catalyst on 10.12.13 at 10:34 am
Hopefully this trend will come north too…

It is already here, only works if the vendor is asking a reasonable price, which they usually aren’t. Typically you will see a “For sale by Owner” on a sign bought at a local hardware store, it then stays up forever, sometimes they get a 1% commission deal going as they get more disappointed with no calls. It is then usually taken off the market or listed with a regular real estate company. We have sold and purchased homes privately but that was over 25 years ago….$52,900 and $129,000. People are nervous about spending $700,000 on a house privately as there are so many things that can go wrong both structurally and financially and it is nice to have some recourse when that happens. You do get this when dealing with a realtor. I am not a realtor but have bought and sold quite a few properties.

#112 Linda Mulligan on 10.12.13 at 11:09 am

Bandit is beautiful – nice to see the tail is in fine shape:) Happy Thanksgiving to all.

#113 Renter's Revenge! on 10.12.13 at 11:12 am

Hey Sheane Wallace! I give it 3-4 years, too. And then…

– North America achieves energy independence
– Canada supplies 50% of US oil needs
– 3D printing drops the cost of manufacturing simple objects to zero
– Nuclear, gas, solar and wind power generation proliferate
– Telsa builds a network of charging stations across the continent and 5% of the population is driving electric cars
– There’s no one left to fight, so the US cuts its defence spending in half
– At the same time, advances in medical technology and a crackdown on insurance abuses makes healthcare affordable for everyone
– The US feds start to run a surplus budget, paying down their debt, which they only needed to borrow to get through one of the worst recessions in a century.
– Gold drops to $500/oz.

I’m thankful for living where the future looks brightest – N.A., all the way!

#114 Basil Fawly on 10.12.13 at 11:17 am

“When it’s over you might understand why dogs, and what they represent, were all that mattered. — Garth”

Yes, too true!

#115 Who, Me? on 10.12.13 at 11:17 am

An interesting thing about my dog is that we share the same birthday. September 29th. She was born on my 40th.

Her name is ‘Hope’ she’s a Shih-Tzu/Lhasa Apso mix.

#116 Josh on 10.12.13 at 11:26 am

Thanks for the insite Jim H
Yes I have only been in the market for 5 years on my own, other than a 50 g luckey pick and over cockeyness I have been lucky enough to break even with allot of learning lessons. And I don’t believe throwing money at falling system saves it , just prolongs the pain and makes the fall harder. The rich need to give mo back to the poor for the system to return back to reality but unfortunatly the Rich are getting richer. I believe it’s currently the biggest separation from rich to poor just like before the great depresion. I have a low mortgage awesome wife and two young healthy kids and am very appreciative for my outcome. But yes I still have anger towards the way some not all leaders are continually benefiting there buds, and themselves and constantly lying. I will man up whipe my nose and accept it as I have been doing since my working career stated.

#117 gg on 10.12.13 at 11:40 am

Yet Yellen will increase QE to above $100b a month coming sometime in 2014. Most all got the last call wrong including you Garth and you will be get the next one wrong too. Watch – there is no exit.

#118 amazon girl on 10.12.13 at 12:28 pm

Happy Thanksgiving to you,Dorothy,and Bandid.
We give thanks for your friendship and all you
have done for us.

#119 Panhead on 10.12.13 at 12:29 pm

I like terriers. I call them “varmints.” Eddy wishes Bandit a happy birthday.
All you have to do is watch the “news” to see how good we have it here. On reflection a fellow worker (from the former Soviet Union) said of Canada … “It’s everything they always promised us but never gave to us.” Hope it never changes … Have a great Thanksgiving all.

#120 sheane wallace on 10.12.13 at 12:32 pm

I’m thankful for living where the future looks brightest – N.A., all the way!
Europe and Asia all the way.

#121 Mini Me on 10.12.13 at 12:40 pm

Can’t wait for the prices to drop !

Hoping for prices 25% lower than today before 2016… in Montreal

#122 Ralph Cramdown on 10.12.13 at 12:43 pm

#112 Oceanside —
#108 Catalyst —
> Hopefully this [FSBO] trend will come north too…

“It is already here, only works if the vendor is asking a reasonable price, which they usually aren’t. Typically you will see a “For sale by Owner” on a sign bought at a local hardware store, it then stays up forever […]”

Well, I don’t know that I’ve seen any data to indicate a trend of more FSBOs, Catalyst. The commissions in full service brokerage are so fat and juicy that FSBO helpers, discounters and everybody else has been trying to horn in since ages. Rogers and Bell have tried/are trying to get a slice in Canada just to name two, and they don’t come from low margin businesses. The sellers in the article paid 2% plus $750, so I’d call that more discount brokerage than FSBO.

And you’re probably right, Oceanside, about FSBO’s being a generally unreasonable bunch. On the other hand, my Father FSBO’d the family home when I was young, and I did one last spring. I got an appraisal ($300 from a former agent, current appraiser who has legitimate access to the board’s solds and gave me the comps he used), did a feature sheet, bought signs from the DOLLAR STORE (throw away good money at the hardware store? I don’t think so!), had a lawyer draft up blank agreements of purchase and sale (in hindsight I should have used OREA’s, perhaps with some changes, a the buyer was somewhat uncomfortable with the unfamiliar contract, but it was Friday afternoon, his lawyer doesn’t work Fridays and another customer was measuring the place for curtains, so he added an inspection clause and signed).

What else did I do? Walked the neighbourhood and rang doorbells of all houses which looked like recent builds or extensive renos, and asked for the contractors’ names, so I could contact them. Had the plan of subdivision and relevant sections of the local zoning bylaw (setbacks, lot coverage etc.) available. The place I was selling was on the cusp between fixer-upper and land value. I offered agents the locally customary 2.5% to their brokers if they brought a buyer.

What do I regret? Not having a mortgage agent lined up to work with buyers. My lawyer was a poor specimen, though the deal got done without any hitches. And getting the signs up an hour late. I did not know that there was going to be a fun run/run for the cure-of-the-week with hundreds of joggers passing the corner-lot property in question on the A.M. I prepared to raise my colours.

Got 6% above appraisal in six days with a short close. I probably wouldn’t try this at the wrong time of the year, in the wrong market or with the wrong competition.

#123 Just some guy on 10.12.13 at 1:49 pm

Good on you Garth for adopting a dog from a shelter. My wife and I also adopted a dog from the JRT rescue organization of Ontario. She was 11 years old at the time and she came up from Kentucky thanks to a group of volunteers. She is playful although she likes to play ruff, ruff, ruff.

Happy Thanksgiving to all.

#124 Something on 10.12.13 at 1:51 pm

RE: Gold mining companies are gasping for air.

Thanks for confirming my view. Looks like it’s time to buy some gold miners. Buy When There’s Blood In The Streets. I will start accumulate some ELD(the lowest gold production cost on the market) from current levels with 30 cents interval. Not going to buy a lot, but may be between 2-3k of shares. I would love to see what is going to the companies when the current gold price (1270) is already below production cost. Looks like M & A action is coming to the sector to protect the business.

#125 bill on 10.12.13 at 2:05 pm

Happy Birthday Bandit!
I cant imagine life with out cats or dogs. or birds…
Bandit looks like a fine example of a dog that provides much needed fur for bird nests throughout the maritimes.
I bet he likes getting brushed?
Have a great weekend folks .

#126 bill on 10.12.13 at 2:21 pm

doomers or others who are faint of heart:
-We have surmounted all the perils and endured all the agonies of the past. We shall provide against and thus prevail over the dangers and problems of the future, withhold no sacrifice, grudge no toil, seek no sordid gain, fear no foe. All will be well. -Sir Winston Churchill —Chateau Laurier, Ottawa, 9 November 1954

#127 Old Man on 10.12.13 at 2:52 pm

I will never forget the day that I freaked out my parents as they had this huge backyard with lots of trees, so being a young boy decided on a project for a sanctuary for the birds and the squirrels. I set up a water fountain, and bought 50 lb. bags of shelled peanuts, and stripped sunflower seeds from the farm co-op. They all came to hang out with nests in every tree; feed them with a water supply, with food and a sanctuary is born. The squirrels have two litters yearly; one in the spring and the other in the fall. The birds were all in place too flying around. My mom after a couple of years was freaking out with 50 squirrels running around, but she loved the doves who were cooing by the breakfast nook. Hey, what can I say, as was the best experience in my life, as it taught me the love of wildlife, and the head squirrel was a gray who brought into the house to look around as we bonded. The same holds true for a dog as a pet, as can become your best friend with trust, love, and great memories that will last forever.

#128 live within your means on 10.12.13 at 3:03 pm

I reread your wonderful post Garth. So touching. I was telling a sis about a news show on TV this week about a dog that was so abused by it’s original owner that the vets had to put it to sleep. It’s beyond our comprehension how people can be so cruel. Several years ago a cat appeared in front of our patio door. It was a sorry sight – half it’s hair was missing, etc. I brought it in, gave it some food, etc. but knew I couldn’t keep it. Took it to the SPCA, paid $40. along with some old towels, for the cages.

When we had to finally put our dear Echo down, rather than taking her to the vet, we asked the vet to come to the house. Echo hated going to the vet so we thought she’d be more calm. We were sitting on the deck & when Echo saw the vet & his assistant she was petrified. She died in hubby’s lap. It was instantaneous. Maybe morbid but I have a lovely urn & 2 pics of her front of it. She’s over the Rainbow Bridge.

#129 AfterTheHouseSold on 10.12.13 at 3:14 pm

We don’t have a dog but in the spirit of todays post:

“Where the Red Fern Grows”
by Wilson Rawls

This classic coming of age adventure about a boy and his hounds is set in the rural south during the 1930’s. Beautifully written, will tug at your heartstrings, bring a lump to your throat. A read aloud book for your 9-12 year olds but something for mom and dad too. Keep the tissues handy. Tuck this one under the tree and foster a love of reading!

Happy Thanksgiving and may your investments soar!

#130 Victoria - the Original on 10.12.13 at 3:30 pm

We have two spoiled dogs and 4 obnoxious spoiled cats. They are the light of our lives.

#131 TurnerNation on 10.12.13 at 3:44 pm

Gotta hand it to the Elites. They’ve convinced us – the working tax slave – that we are Kings.
Think of yesteryear’s Kings: sitting there, stuffing themselves, being entertained by casts of jesters, juggler, dancing girls; and knights willing to battle.

Today, we have the Tee-vee. Endless entertainment. On-demand. When you demand it. Entertainers, sports heros doing battle for you, lifestyle TV.

Or practice your kingmanship with realistic video games: World of Warcraft, or Call of Duty, or Gears of War. You decide who lives or dies.

Perhaps while enjoying the King of Beers or some Crown Royal, natch.

Driving around town in your massive SUV chariot). You’ve earned it (have you?).

This all comes with costs. You must first pay tolls: highest-in-the-world cable & internet charges, paid to the ‘Princes’ of the Rogers and Shaw families. (The offspring which running these companies.)
Extreme markups – and taxes – on alcohol, to the Bronfman family and others.

Taxes upon fees upon licenses for driving, gas; and finance charges and insurance, paid to the Big 6.

Till they pull the rug. GFC 2008, US housing collapse, man-made Argentinian and Russia debt crises. Then you become a pauper.

#132 J.T. on 10.12.13 at 3:47 pm

Hey Garth, your opinion on inflation and investments is interesting, although it depends on what you have to invest. If you have 500k invested in a conservative GIC at 2.5% that nets you 12.5k per year. My cost of living, milk, bread, utilities etc. are not increasing by anywhere near that amount each year. I also sleep very well at night and don’t have to worry about the stock market roulette wheel.

#133 Big Brother on 10.12.13 at 3:54 pm

#106 Smoking Man on 10.12.13 at 10:27 am
Major UFO sighting last night 401 and 427

5 fighter jets in pursuit, heading south towards my place.

And I wasn’t at home. Damn

My son an his girlfriend witness. They don’t think I’m nuts any more.

That was us Smiking Man MKULTRA says hello from space!

#134 TurnerNation on 10.12.13 at 4:00 pm

Adding: found out the cheapest Maple Laffs hockey ticket is $75-100. How can a family of four afford a night at the game? Add snacks and you are at $500. Who’s affording this? Not I.

#135 EdmontonMan on 10.12.13 at 4:39 pm

Peter Shiff was right, taper edition.

There should also be one for Garth was right.

#136 live within your means on 10.12.13 at 5:02 pm

As I said, I’ve grown up with pets my whole life. I think I recounted a story of our amazing Budgie, Dino, we had when I was in my teens. He had an amazing personality & memory for a Budgie. His cage door was left open so he was free to fly everywhere. We still talk about him.

#137 Old Man on 10.12.13 at 5:09 pm

#135 Turner Nation – this is simple as never had to ever pay for a ticket in TO, as for the hockey games block seats are bought by corporations, and always sat in the red section with my lady of choice, as all was free, and for the Argo games my friend was on the team, so they all had lots of tickets to give out, and always sat behind the bench with his wife, as he wanted me there with Pam.

#138 Jeannie on 10.12.13 at 5:14 pm

We’re thankful for The Greater Fool blog. We’d be even more thankful if you’d do some seminars in the far-flung regions of the Empire.
Some of us expats could use your advice and crusty wisdom.
Happy Thanksgiving Garth, Dorothy, and Bandit.

#139 Snake on 10.12.13 at 5:31 pm

The Accounting Song (Money All Day)

#140 johnnny on 10.12.13 at 5:43 pm

Garth – just curious.Does an author get his “cut” or what ever you call it , from a used book store?

No, nor from libraries. — Garth

#141 Smoking Man on 10.12.13 at 6:04 pm

#134 Big Brother on 10.12.13 at 3:54 pm
That was us Smiking Man MKULTRA says hello from space!

Perhaps they are looking to buy in Long Branch
I let them know via the UCC, best place to buy.

From last night on whatsapp. me and son 3 talking.

Son3 3.16 pm
Just fixed the meat guys program set it for 2 weeks
He Didn’t see it yet he’s been busy

Smoking Man: 4:39
Ok cool.

Son3 11:16 pm
Just saw a flashing light in the sky wasn’t a shooting star
Looks to be about 5 jets Circling the sky
At the 401and 427 cut off

Smoking Man: 11:16

Son3 11:18
So im driven back from hockey stuck in traffic and I see a bright light too big and too close to be a shooting star. I then see 5 fighter jets following that direction it’s making noooo sound Then I see a car smashed with white stuff all along the ground and two under cover cops.
Also 10 more planes in the air

Smoking Man 9:45 am
I Told You, you guys thought I was nuts last year, ha. Call me, I want details.

#142 Jack London on 10.12.13 at 6:07 pm

“When it’s over you might understand why dogs, and what they represent, were all that mattered. — Garth”

Old longings nomadic leap,
Chafing at custom’s chain;
Again from its brumal sleep
Wakens the ferine strain.

Buck did not read the newspapers, or he would have known that trouble was brewing, not alone for himself, but for every tidewater dog, strong of muscle and with warm, long hair, from Puget Sound to San Diego. Because men, groping in the Arctic darkness, had found a yellow metal, and because steamship and transportation companies were booming the find, thousands of men were rushing into the Northland. These men wanted dogs, and the dogs they wanted were heavy dogs, with strong muscles by which to toil, and furry coats to protect them from the frost.

#143 recharts on 10.12.13 at 6:36 pm

On this occasion,this is all I have to say:

“Be the person your dog thinks you are” :-)
“Don’t be the person your RE agent thinks you are”

#144 Ronaldo on 10.12.13 at 6:51 pm

Holy Toledo, batten down the hatches. According to the article in the Nanaimo Daily News on Thursday, the city needs to get prepared for a rush of Chinese real estate agents coming over to gobble up on residential and commercial real estate. Is that a yellow helicopter I hear coming? Ready the article below:

#145 Ronaldo on 10.12.13 at 6:55 pm

Try this link.

#146 live within your means on 10.12.13 at 7:22 pm

#128 Old Man on 10.12.13 at 2:52 pm

Lovely story. We`re big bird feeders too & have the little red squirrels – the most territorial of all. Tho we`re fairly close to the city we`ve had pheasants & other wild life in our backyard & last spring I saw a beautiful red fox cross our b`yard onto the street. What a beautiful creature. Two winters ago I counted 23 Morning Doves on our deck – I did a recount as we`d never had that many before. We have some beautiful birds that visit.

Xmas gifts to each other will include bird feeders cause those cute little “rats“ chew the plastic holes. We buy huge bags of different bird seed at Costco.

#147 Big Brother on 10.12.13 at 7:41 pm

Smoking Man must be at Seneca Casino again. MKULTRA says have a drink. Come home to see the lights in the sky.

#148 Fed-up on 10.12.13 at 7:52 pm

#135 TurnerNation on 10.12.13 at 4:00 pm
Adding: found out the cheapest Maple Laffs hockey ticket is $75-100. How can a family of four afford a night at the game? Add snacks and you are at $500. Who’s affording this?


Who you ask? The most mentally deficient sport fans (aka morons) on the face of the planet, bar none.

#149 Daisy Mae on 10.12.13 at 7:56 pm

#87 jaguar: “Bandits tail looks in pretty good shape these days….”


I was thinking the same thing. That is one very luxurious coat. Thanks for sharing, Garth.

#150 Aurora Borealis on 10.12.13 at 8:01 pm

Bandit is a beauty! It warms my heart to read his “story”. We have two cat kids…one we’ve had for nearly 20 yrs now, both had very rough beginnings. I don’t think you can fully appreciate life, if you’ve never bonded with a non-human, and made them a part of your family. I love to be reminded of your big heart Garth, it gives me the warm fuzzies… ;)
Happy Thanksgiving to all…we really do have so much to be thankful for, living in Canada.

#151 Air Canada Spokesperson on 10.12.13 at 8:38 pm

Dear Mr Turner,

We regret to inform you that your baggage named Bandit will not be completing his trip back to Toronto as scheduled.

Our cargo hold was overbooked, as is our right, and Bandit was discharged onto the tarmac. He was last seen chasing a baldheaded condominium developer towards downtown Ottawa.

Normally a $200 overbooking payment would be yours for this inconvenience. However, we have determined that Bandit is only actually baggage, so you are not eligible.

Please do not contact CNN or other U.S. media about this. We would hate to have to say that their entire government is shut down and about to default and this is how the US media spends its time.

By all means complain to Canadian newspapers as much as you like. They may be able to print a column about your baggage next to a condo advertisement.

In the future, you might wish to consider that cats make a better pet choice, per our Prime Minister, and are easier to transport via our aircraft. Your choice of such baggage as a pet may have contributed to your recent political falling our of favour.

Because Bandit did not complete the trip, you will not be receiving the 500 reward miles for this journey.

The ticket was not full fare, so no refund is available.

Please remind your blog readers that our stock price is up over 120% on the year, and makes a far greater investment than dog chow and veterinarian bills.

Sensitively yours,

Your Proud National Airline

#152 Serge on 10.12.13 at 8:55 pm

GTA Weekly Price Drop – October 12, 2013

#153 Smoking Man on 10.12.13 at 9:20 pm


#154 AK on 10.12.13 at 9:27 pm

#11 Josh on 10.11.13 at 9:27 pm
Ms yellen bumps up QE TO 120 billion before June 2014.
Apple $600 a share when q4 profit release

Take care”

Stop listening to Marc Faber and Peter Schiff. If you want to succeed in investing, try following the advise of Warren Buffett instead.

#155 live within your means on 10.12.13 at 9:30 pm

OT – Just watching TV5 – French singers singing

Just watching a tribute to Edif Piaf on TV5. Hubby told me about it as she`s one of my fav. French singers. None of the singers singing her songs can compare to her, IMHO. I have CD`s of her music as well as some of my other fav. French singers. I grew up in Mtl & listened to them as a teenager.

In case I forgot – Happy Thanksgiving to you Garth, Dorothy & and your beautiful Bandit. Thank you for all you do.

#156 live within your means on 10.12.13 at 10:08 pm

Hubby & another chap (on contract for now) worked all day today setting up MS tablets to dispense to school kids. They have only a week. It`s a pilot project. They both ran into so many problems. Hubby was on the phone with MS techs (on hold for a long time). Hubby`s tired. Well, at least his tech knowledge has been recognized by a high up in the Dept of Ed.

In addition, this has been a really bad couple of weeks for us. His Mom (81) was in the hospital for over a week, oodles of problems besides PKD (which hubby inherited) & his Dad (83) has been undergoing all kinds of tests. He may have cancer + other problems. Thankfully hubby`s youngest bro has been keeping us up to date daily via email & we call too.

#157 Smoking Man on 10.12.13 at 11:31 pm

Body fluids and Garth don’t mix. deleted

I love my wife……………………Brenda

on the 26th fans go to bar, ask Patrick where is Brenda

he will point you to to the old dude, with the Indiana Jones hat, sun glasses

I have second sight , amazing powers of observation

nicotine stains on my fingers.

No one home, the blond at the bar, sad……..

#158 Smoking Man on 10.12.13 at 11:58 pm

“Look mummy, there’s an aeroplane up in the sky”

Oooooooo ooo ooo ooo ooooh(x 3)
Did-did-did-did-you see the frightened ones?
Did-did-did-did-you hear the falling bombs?
Did-did-did-did-you ever wonder why we had to run for shelter
When the promise of a brave new world
Unfurled beneath a clear blue sky?

Oooooooo ooo ooo ooo ooooh
Did-did-did-did-you see the frightened ones?
Did-did-did-did-you hear the falling bombs?
The flames are all long gone, but the pain lingers on.

Goodbye, blue sky
Goodbye, blue sky.
Goodbye.(x 2)

#159 Mr Canuckle Head on 10.13.13 at 3:40 am

Happy Thanksgiving! Ok Garth, every dog has his day (;. Here are some reasons why I believe people should stay the heck away from the debt fueled stock market.

1) Cheap money has alowed corporations to borrow at rock bottom and it has increased there profit margins. Once interest rates rise profits will go down. Stock valuations will follow.

2. Balanced, prefered or not all stocks are risk assets. Low interest rates have people chasing dividends and capitals gains. Low rates juiced both the stock and housing markets because people are chasing decent returns with tax advantages. This can turn on a dime.

3. Long term all this money printing will end in tears
for the USA. Shorter to medium term the dollar and equities might go up even more ??? Not a bad short term trade but longer term do I really want to be here.?

4) This is the largest debt bubble in history. Stocks
and real estate have more in common than you may
want to admit.

5. The aging boomers are coming to suck every last penny out of the system. Taxes will rise contracting growth.

6. Cheap money has also aloud people to buy stocks
with borrowed money. Not just houses.

7. By 2016 China will surpass the US as the worlds biggest economy and the world will eventually de-peg from the continually weakening US dollar and economy.

I heard the same logic a year ago before the Dow advanced 21%. The question with equities (like real estate) is not whether to own any or not, but the correct exposure. A wise investor never exits an asset class completely, but adjusts the weighting to correspond with the risk/return sought. Amateurs bounce around taking extreme moves, precisely why the pros almost always eat them for lunch. — Garth

#160 Carpicker on 10.13.13 at 7:45 am

Old city Quebec, A Vendre signs every 10 meters, it doesn’t look good, Saint Laurent island even worse in 5 houses 3 or so for sale. Time to a buy a stone house !!!!

#161 Tony on 10.13.13 at 8:37 am

Re: #136 EdmontonMan on 10.12.13 at 4:39 pm

Bond purchases will increase next year probably to around 140 billion dollars a month to try to stave off an inevitable recession

#162 coastal on 10.13.13 at 11:52 am

The idiots in Washington are clearly still in denial but a couple of 500 point drops will wake them up. Last week’s 300 point pop was just short squeezing on rumors. Remember the Dow is only 30 stocks. If these Tea Party psychos think they can run the table they will wind up with a collapsing bond market and rates rising far faster than the last go around.

#163 wishfulthinking on 10.13.13 at 11:55 am

Wishful thinking again G?

“Because gold’s a proxy for fear, doubt, uncertainty and Plan B. When jobs are hatched, profits made and confidence rises, why buy rocks that pay neither interest nor dividends?”

National governments are buying gold in massive quantities….so ……why?

Hmmmmm…all the foriegn ‘house buyers’ in Vancouver are simply misguided Canadians of Oriental extraction? Not so…according to this study published by the uber leftist Vancouver Sun.


The study underlines the abuse of Canadian citizenship by foriegn ntionals who have aquired citizenship under false pretense…dumped the kids and elderly on the Canadian taxpayer and remove themselves to pay lower taxes elsewhere ( fact not my opinion) . Oh…and eventually they might come back and retire on the taxpayers dime……Didn’t we get slapped in the face hard enough after the Lebanon debacle not to see the forest from the tree’s?

By the way…..this scam is exactly why prices in Vancouver will find a natural floor. If Flaherty wants to curtail the house price inflation…..he should suggest a rationalization of phony immigration applicants. If these are the ‘Canadians buying houses and pushing up prices’ you keep defending…then you do it for political/ideological reasons….not based on the facts.

Why you would believe the Real Estate Boards assumption that only a miniscule percentage of Asian buyers are foriegn nationals and decry every other statistic they publish doesn’t make a lot of sense….

Vancouver. Xenophobia capital of Canada. — Garth

#164 Victor V on 10.13.13 at 1:20 pm

Wacky Toronto jeweler Russell Oliver is really happy he decided years back to become “The CashMan” rather than his original choice: “The GoldMan”.

Given the lacklustre price of gold – which has lost one quarter of its value over the last year – the kooky handle would have limited him today since he’s not seeing as many bullion baubles as he once did when the precious metal hit its peak of $1,900 (U.S.) an ounce in 2011.

His take on gold trinkets has shrunk dramatically from about 90 per cent of his business to 50 per cent. So Oliver is getting creative by expanding way beyond jewelry into laptops, watches, handbags, mortgages — even offering cash-back coupons to get more foot traffic in his longtime Eglinton Ave. W. digs.

With the pretty commodity at a less attractive $1,300 (U.S.) and ounce, potential customers are hanging onto their gold rings, necklaces and teeth waiting for the price to go back up, he said, “but it could go down.”

The tanking gold price has other buyers – who sprouted up all over the place a few years ago as bullion soared — pretty worried.

“Because the price goes up and down, people just don’t sell as much,” said Moshe Braunstein, owner of six GoldMasters Cash for Gold stores in Toronto, Vaughan and Hamilton.

He said he’s seen his business drop 50 per cent in the last year, and says if the price falls under $1,000 an ounce, it would probably put him and many others out of business — particularly with all the competition.

#165 Joyce on 10.13.13 at 1:38 pm

Happy birthday lil buddy.

I’m thankful for my fur babies, family, health and a steady job. I may never afford a house in Vancouver but that’s not the most important thing in my life.

Happy thanksgiving!
Thanks for the wonderful advice, Garth

#166 Old Man on 10.13.13 at 2:26 pm

#166 Victor V – I know what they all have done, as saw these ads for many years. First of all they were giving no real deals for jewelry, but giving the customer a discounted rate on spot price for gold; such a bargain. The next step, as they appeared to have unlimited money, but were taking out lines of credit against an assignment of inventory with a secondary bank of sorts, as all was a shell game. Now the hens come home to roost. :)

#167 Keith in Calgary on 10.13.13 at 2:31 pm

So I’ve been sitting in London Ontario for a week, and have one more week to go.

Yesterday I took a drive thru the upper western most part of the province to visit some clients, in addition to those I had been seeing this week here in London, and will be seeing the next week as well. My perceptions of your economy are as follows………

1 – Every street front, whether it be here in London, or any of the smaller cities and towns in the surrounding area, have numerous empty storefronts with FOR LEASE signs.

2 – Most of the buildings, not just those for lease, whether they be commercial or not, are, IMHO, 50+ years old and in need of dire repairs.

3 – As my basis of comparison is Calgary, it seems like that everywhere I go in Ontario, except for Tarrana of course, seems like a journey back to “the land that time, and apparently money, forgot”……….

4 – There are several vacant large commercial projects available for lease here, more than I ever expceced to see.

5 – The OPP are everywhere with their ticket books out.

6 – I bought a bottle of Smirnoff Vodka in the LCBO yesterday for $25.85……..and it’s only $16.99 in Calgary…….

7 – The HST is a killer.

8 – The biggest selling item in every car dealership is LOE coverage (loss of employment insurance)………many stores have 80% + penetration with this product. An amazing stat.

9 – Ontario is a bankrupt police state with a massive RE bubble and no means of apparent support for it.

Now drive east. The GTA is 200 km across, and makes Calgary look like Lethbridge. But, if Ontario ever flounders, fear not. This is Canada. We’ll have you to support us. — Garth

#168 Keith in Calgary on 10.13.13 at 3:05 pm

I acknowledged that in my point #3. But I am one of tens of thousands of westerners who would not voluntarily support anyone else.

FWIW…….Calgary is cleaner, shinier, and sleeker than Tarrana. But it’s a huge bubble too. Just a prettier one. It’s a shame it was built on a flat field of brown weeds though……the bloody countryside around SW Ontario is awesome.

All the money poured into Tarrana, and apparently, no where else…….and you can see what has ensued as a result. There is no economy in Ontario, except in Toronto, and it is a false one……just like Vancouver’s.

#169 Old Man on 10.13.13 at 3:12 pm

I will never forget that day that this old rich man kicked me under the bus, as told him he was out of his mind for a firm commitment for a $200,000 second on a property in Forest Hill. He just smiled at me, as was not paying attention, so gave me a lecture in my office. The property at that time was appraised with an AACI for about $450,000; the first mortgage was $50,000, so he said do the math. I am getting 15% on the second mortgage with a bankline at 11%, so my net spread is 4%, as assign the mortgage to the bank to secure my bankline. Now if all goes wrong what is my risk, as can pay out the first mortgage and take control with two options; either a Power of Sale or perhaps a Foreclosure action to take it all. Then he floored me as said my second mortgage is really a first mortgage.

#170 [email protected] on 10.13.13 at 3:46 pm

Looks like debt is the new cash…

Luckily in North America we adopted the dog as a domestic pet. We’d all be upset today if it was the Turkey.

#171 jess on 10.13.13 at 4:14 pm

prison reit …empty prison bed guarantee clauses

According to wiki :
In 2012, CCA sent a letter to prison officials in 48 states, offering to buy prisons from these states in exchange for a 20-year management contract and a guaranteed occupancy rate of 90%.[22] Community organizations have criticized the proposals, arguing that the contractual obligations of states to fill the prisons to 90% occupancy are poor public policy that could force communities into creating criminals, and that these contractual clauses end up costing taxpayers more than state-run prisons would.[23]
“A March 2012 CCA investor presentation prospectus, quoted by the ACLU, tells potential investors that incarceration “creates predictable revenue streams.” The document cites demographic trends that the company says will continue to expand profits. These positive investment trends include, the prospectus reads, “high recidivism”—“about 45 percent of individuals released from prison in 1999 and more than 43 percent released from prison in 2004 were returned to prison within three years.” The prospectus invites investments by noting that one in every 100 U.S. adults is currently in prison or jail. And because the U.S. population is projected to grow by approximately 18.6 million from 2012 to 2017, “prison populations would grow by about 80,400 between 2012 and 2017, or by more than 13,000 additional per year, on average,” the CCA document says.

Criminal: How Lockup Quotas and “Low-Crime Taxes” Guarantee Profits for Private Prison Corporations
Publication Date: 9/19/2013

#172 cynically on 10.13.13 at 4:25 pm

#165 wishfulthinking – I agree with much of what you and many other Vancouver posters have said about the enormous house price changes in this city and the concomitant arrival of Orientals over the last thirty or so years. This has to be the principle root cause of the realty problem that young people in Vancouver must face when wanting to buy somewhere in the city but must look to the far outside areas for their homes with the long commute to the city for work or pleasure. Is it any wonder that there are bad feelings but to say that they are xenophobic is a little too strong I think, as many of them blame the government as well.
You might think back to the time when you left the government and the conditions under which this took place. I’m sure, because you are human, that you might have thought or expressed some strong negative feelings but there was no real xenophobia in them. You were right just like most of the gripers in Vancouver, just expressing true feelings. Given today’s situation I’m pretty sure I’d feel the same way but I see many of the older Orientals contributing to the city through philanthropy and that is a very good example to not only their own but to all citizens of the city.

Saying the ‘arrival of Orientals’ in Vancouver is the ‘root cause of the realty problem’ tells us more about the twisted view in that city than anything else. ‘Orientals’ have been in Vancouver since 1858, which means it’s as much their city as yours. You folks are generally nauseating. — Garth

#173 Squatter on 10.13.13 at 4:48 pm

Go spend 2 weeks in Calgary with an Ontario license plate and you won’t say anymore that Vancouver is the capital of xenophobia.
They won’t scratch your car or bike, but they’ll let you know for sure that you’re not welcomed.

I have done so several times. It is Canada’s most American city. — Garth

#174 Pulp Faction on 10.13.13 at 4:51 pm

” the only irreplaceable asset is time ”

Words to remember.

#175 The Prophet Elijah on 10.13.13 at 6:38 pm

Sounds like US default is not off the table, Garth.
Just like everyone expected a Fed taper, another surprise might be coming down the pipe:

Gold to the moon?

Even if a mistake happened, it would be fundamentally inconsequential. You know the feeling. — Garth

#176 TurnerNation on 10.13.13 at 6:43 pm

Smoking man mentioned this. A small army of veterans. Ready to roll. I saw this linked on another site else would not have visited ZH. Pictures tell the tale. Just checking Futures tonite…

Protesting Veterans Tear Down DC Barricades, Chant “Shut Down The White House”
The “Million Vet March” in Washington D.C. appears to be escalating as reports of barricades being torn down, police in riot gear and snipers being deployed, and a growing crowd at The White House chanting for its shut-down suggest the people are growing restless.

#177 TurnerNation on 10.13.13 at 6:57 pm

Old man’s no Tracker6er. But does he still
Take the A Train?

#178 Smoking Man on 10.13.13 at 7:38 pm

Happy Turkey day everyone………….

#179 recharts on 10.13.13 at 7:44 pm

Chronologically I think that this post was written after the facts and the first fact was #6.
After you were finished with that everything made no sense.

1 – Every street front, whether it be here in London, or any of the smaller cities and towns in the surrounding area, have numerous empty storefronts with FOR LEASE signs.

2 – Most of the buildings, not just those for lease, whether they be commercial or not, are, IMHO, 50+ years old and in need of dire repairs.

3 – As my basis of comparison is Calgary, it seems like that everywhere I go in Ontario, except for Tarrana of course, seems like a journey back to “the land that time, and apparently money, forgot”……….

4 – There are several vacant large commercial projects available for lease here, more than I ever expceced to see.

5 – The OPP are everywhere with their ticket books out.

6 – I bought a bottle of Smirnoff Vodka in the LCBO yesterday for $25.85……..and it’s only $16.99 in Calgary…….

7 – The HST is a killer.

8 – The biggest selling item in every car dealership is LOE coverage (loss of employment insurance)………many stores have 80% + penetration with this product. An amazing stat.

9 – Ontario is a bankrupt police state with a massive RE bubble and no means of apparent support for it.

#180 Victoria Tea Party on 10.13.13 at 8:44 pm


In the wake of the Victoria Marathon, which was apparently won by somebody, some idle thoughts from your otherwise idle-minded correspondent!

As the Dow and S&P futures collapse while gold edges a little higher, I look at something completely different: a walk on Victoria’s real estate wildside.

For sale in the Fairfield (nice) area are the following I checked out this weekend:

–a well-used old house on a 45 by 104 foot lot; 1100 finished square feet; basement is “unfinished”; assessed at $548,000.00 on sale for $555,000.00 (DOM 1 day-Saturday). It was built in 1955.

–Farther down the street are two, one already sold, so-called “Emily Carr Replica” homes (presumably in “honour” of the late artist Ms. Carr? Or maybe not. Carr’s REAL family home is situated in the nearby James Bay neighbourhood, and is a major historic site).

These “replicas” look like elaborate dolls’ houses by comparisons, TINY: nearly 700 square feet on each of three floors; asking price $849 grand (taxes included); on a 50 by 60 foot lot (postage stamp sized); contains the usual stainless and granite stuff.

It’ll sell soon!


In a chat with a real estate mortgage broker I was told the Feds are really cracking down on matters real estate in our fair land.

For instance, it should come as little surprise that to get a mortgage in the high 3 per cent range means you have to qualify as if the interest rate is actually 5.34 per cent. That’ll do it!

I was also told is that real estate prices here are coming down and that buyers are in firm control. Of course they are!


In a chat with another real estate agent I was told that a number of homes selling in Oak Bay are encumbered by deferred municipal taxes (owing).

In BC, homeowners can apply for property tax deferments, principal residence only.

But when it comes time to sell the old glass palace, the province then comes knocking for its long sought-after pound (kilogram?) of flesh. Which means that the final selling price, with taxes owing, has to be eaten by SOMEONE, buyer or seller.


That familiar quote could have been the theme of a recent economic conflab in the US attended by a number of economists, and other financial industry types, according to a Zero Hedge blog report.

All participants were uniformly bearish on the world economic picture (in keeping with ZH’s current attitude).

Maybe they’re right or not.

For what it’s worth, one of the speakers, author, economist and financier, James Rickards, said: “If you want to know what a depression feels like, this is it.”

And one more quote: “The (US) Fed thinks it’s playing with a thermostat, but in fact it’s playing with a nuclear reactor, and if they do something wrong, they’ll cause a (financial) meltdown.”

Maybe by next spring real estate prices will be going up again here!

Yep. It’s all good.

#181 Doc Hudson on 10.13.13 at 8:45 pm

Hey Garth, love your site. I have a very diversified portfolio but I think your still way off base on were gold is and where it is going. That is why you were so WRONG ABOUT TAPERING, your good at the big bigger on real estate but really have a mental block on what real money is.

#182 Westcdn on 10.13.13 at 9:19 pm

Today’s blog comment reminds me of Zig Zinger (a motivation speaker – for hire leader). He told a story about Ralph who was berated by his arrogant boss because he didn’t perform as expected. Ralph was angered because he didn’t think he was to blame. Ralph took his anger out his innocent underling. The frustrated underling took his anger upon the unknowing secretary. The secretary took her frustration out on her hapless husband. The insecure husband took his frustration out their stay-at-home son. The son took his frustration on the family dog by kicking it. The question:
1. Would it have not been better for Ralph’s boss to kick the dog himself and spare everyone unnecessary pain?
2. Does sh*t roll downhill?
3. Should the dog bite Ralph’s boss?
I don’t know everyone’s experience but #2 seems too common to me. I am going to feel lousy tomorrow …

#183 cynically on 10.13.13 at 10:05 pm

Garth, the Chinese that came over in 1858 came with empty pockets but the willingness to work hard and they succeeded in doing so whereas the much more recent ones came with full pockets and help from the Canadian government particularly after the Hong Kong crisis. Certainly their purpose was not to cause the enormous rise in residential real estate prices but that is what started it and you had to live here to see it – and you didn’t. I’m certainly not xenophobic about it because I’m not affected by it but living here I can see why a lot of Vancouverites who were affected think the way they do but I’m sure they are not xenophobic, just very upset about what occurred with some exceptions of course.
By the way what is that comment in #175 about Calgary being Canada’s most American city in the context of what the poster was saying about Calgaryans unfriendliness towards outsiders visiting the city? Do you not like Americans? I find them just as friendly as Canadians, in fact more open, without that British reserve. Enough.

#184 Bubu on 10.14.13 at 3:00 am

Happy Birthday to your furry Bandit from our furry Bandit.

Bandits that are stealing our hearts. XOXOXOXOXO

#185 Ralph Cramdown on 10.14.13 at 9:34 am

#182 Doc Hudson — “Hey Garth, love your site. I have a very diversified portfolio but I think your still way off base on were gold is and where it is going.”

There’s no arguing where gold is. The price is off 33% from its recent high of more than two tears ago, which itself wasn’t as high in inflation-adjusted terms as its high of 1980. So depending on your time frame, it’s either two years or thirty-three years into a bear market. Will it eventually stop going down and start going up again? Probably. Will it retest its all time highs? Maybe, but IT TOOK THIRTY-ONE YEARS LAST TIME. These past few years have been the best of possible times for gold — a global financial crisis, the worst in decades, wherein a lot of people were worried about the complete collapse of the financial system, coming after a long increase in purchasing power for hundreds of millions of people who live in China and India, the two most gold-mad nations on earth. That was as good as it gets for goldbugs.

#186 TurnerNation on 10.14.13 at 10:30 am

Some might be wishing Bandit ‘Muzzle Tov’.

Scroll down here for another pic. Looks like he’s being held back…must have spotted a realtor.

#187 espressobob on 10.14.13 at 4:04 pm

Funny thing, I get the greatest joy from my pets! Their love is unconditional! And I show them the same!

#188 WomanwithattitudeinthefrozenNorth on 10.15.13 at 11:42 am

Happy Birthday Bandit! Happy Thanksgiving Garth!