Rate limp

SAFE2

If you believe the headlines and the realtors, the real estate market rocks. If you ask the new home builders, it’s a near-depression. Listen to the news, and the economy sucks. Watch Twitter stock, and you’d swear it was 1999 all over again.

To say this is a confused moment would be understatement. And I haven’t even mentioned a crack-smoking, debauched, amoral mayor or sexy drama in the Senate, of all places. Most people have an exceptionally thin grasp of what’s happening, or what’s next. If they did, they sure as hell wouldn’t be doing what they are.

Yesterday the dudes running the European Central Bank surprised everyone by cutting the key interest rate, down to just one quarter of a per cent. The rate it already pays on deposits is 0.0%. There was even some talk rates in Europe could go negative soon. That’s when the bank pays you to take money.

This morning the latest US job stats were published. While the number of positions climbed (to over 200,000) the unemployment rate also ticked higher. As I wrote here yesterday, markets and investors are doing great. Workers? Not so much.

Bond prices popped, as yields fell back to levels not seen since early summer. People who loaded up on fixed income, including preferreds and interest-sensitive things like REITs, four months ago now look like geniuses.

What’s it mean?

Not what the realtors are telling you, that’s for sure. The fact interest rates are under pressure is anything but good news. Almost five years after the great recession, the last thing central bankers thought they’d be doing is doling out cash at some of the cheapest levels in history. In Europe inflation has essentially disappeared – down to the lowest level since the dark days of 2009. No inflation means, basically, no growth. It’s why there’s an unemployment rate of  27% in Spain, 11% in France and 8% in Britain.

Essentially, Europe just had a big deflation scare. “We are ready to consider all available instruments,” bank boss Mario Draghi said as he promised to make money all but free until at least 2015. This wouldn’t matter as much if we hadn’t just seen the Bank of Canada capitulate on rates or the US Fed abruptly decide it’s too dangerous to end its massive stimulus program.

In other words, if we didn’t have central bankers around the world diddling with the money supply, providing more stimulus than Miley Cyrus or suppressing lending rates, we’d be out shooting squirrels.

Not a lot of people expected this (other than the Nobel Prize-winning economists and celebrated quants who populate this pathetic blog). The recovery’s been uneven, halting, tortuous and has done a great job of screwing with most people’s heads. Your mom and fool BIL, for example, think this is a great time to get into a bidding war for an ancient urban semi held up by mold and bug spittle. The disconnect between an unravelling economy and popular opinion is stunning. It’s at the heart of what I wrote about here yesterday – the yawning canyon between those who hold assets and those who hold debt.

For a long time this blog has told you to be more afraid of deflation than inflation. That’s when struggling employers reduce jobs and paycheques, leading to falling retail sales, which bring wages and prices down further. In days like that, whether a mortgage is 4% or 2% hardly matters – especially when house values are eroding along with family incomes.

But the thing about deflation is that money grows more valuable, not less. Every month it buys more, as the 1930s proved. People with the cash to snatch real estate, for example, can create fortunes – something we caught glimpses of three years ago when US house values collapsed 32%.

Now, nobody’s suggesting the Thirties are coming back. They’re not. Forget that. But rate chops and stuttering economic growth this far into a recovery could certainly be a harbinger of job cuts and wage woes. Combine that with off-the-chart levels of personal debt and real estate prices which your hormonal friends sent ballistic, and it’s easy to be depressed. Unless, of course, you have a pile of money which is likely to get more valuable instead of a house that won’t.

I visited today with a 69-year-old widow who sold a downtown home last year after living in it for three decades. The family pleaded with her to get out, since it was literally condemned, and she had zero money for repairs. Some deluded hipster couple bought it for $600,000. Now she has five hundred thousand in a 2% GIC and won’t stop talking about buying again. Obsessed, truly. She will not listen.

But this isn’t 1983. And a mess of people are about to learn mistakes no longer inflate away.

189 comments ↓

#1 T.O. Bubble Boy on 11.07.13 at 9:37 pm

But Garth — you left out the U.S. GDP numbers, which were just a little *too* good, and spooked everyone into thinking the Fed will reduce stimulus sooner.

If we’re focused solely on stock markets, a bad jobs number is (ironically) a great thing.

The GDP reflected an inventory build-up. Discounted. — Garth

#2 Shanks on 11.07.13 at 9:38 pm

1st

#3 Ronaldo on 11.07.13 at 9:39 pm

”Watch Twitter stock, and you’d swear it was 1999 all over again.”

Hard to believe a company that has never had a single profit ever is now worth several billion dollars. Shades of 1999 for sure. Will be interesting to see where this one goes after the hype has worn off.

#4 Squatter on 11.07.13 at 9:39 pm

ha! ha! ha!
Is it your next book Garth?

#5 TheRealTruth on 11.07.13 at 9:42 pm

Garth, Thanks for acknowledging the Nobel prize.

So if rates are staying low in the first world…means trouble ahead…so what does more QE to ‘stimulate’ the economy in the future mean to asset prices?

What EVENT will trigger THE PANIC?

#6 Raging Ranter on 11.07.13 at 9:45 pm

10 years of deflation might teach us respect debt a little more.

#7 BG on 11.07.13 at 9:49 pm

I’m looking at the S&P500 historical data, from 1974 to now. We are right at the top on a peak that looks very similar to those of the dot com bubble and 2008 crash.

Why isn’t anybody claiming that another crash is coming?

That’s an actual question. I’m curious.

Now layer over S&P corporate profits and look at it again. — Garth

#8 T.O. Bubble Boy on 11.07.13 at 9:49 pm

Question of the day:

What’s a bigger bubble, Twitter’s stock, or Leslieville Semis?

#9 Retired Boomer - WI on 11.07.13 at 9:50 pm

Is there a ‘FORD’ in your cities future?

Toronto, you CAN do better. Give his horror the mayor what he has earned -UNEMPLOYMENT.

’nuff said- watch his latest video.

Geez, you’d think the came directly from the US house of representatives…..

#10 Smoking Man on 11.07.13 at 9:51 pm

THE TORONTO STAR

Those Liar’s and pumpers of Real Estate Frankenstats.
But that kind of lying don’t count.

Ladies and gentlemen. We have now hit a new low in Canadian MSM.

Those Brave warriors in spineless padded pink shirts pay for a video of Ford in not one of his finer moments. I can see it now, that high pitched emasculated laughter in the news room. “We got the fat bustard now.”

They rush to get it out to all MSM so their quest to bring down a politician with the biggest heart I have ever scene in a public figure.

The curtly they exhibit going after and picking on him is astounding and beyond comprehension to any civilized man. Ravenous rats is too kind of a word to describe them.

Ford is a lush, ok we get that, Is he going to get help, yes. The editors and writers at The Toronto Star are demented and psychopathic in trying to dish out that much pain, for a crime hardly news worthy. I equate them to child pornographers and baby killers.

“You want to F with us you Gross Fat Man we will show you.”

Cowards and bullies I’m saying.

One Man .vs the World. And he’s still standing. How? I have no Idea, but he is. Even me with my hyper apathy and narcissism could not do it.

He knows those lefty parasites leaches want him go so they can turn the taps of the gravy train to full throttle, after all there is some catching up to do. Back untendered contracts, to the friends of the Star.

To me he’s like Jesus Christ take it for all of us hard working tax farmers.

The Star is Complicit and partners by silence when it comes to:

Orange.
e-Health.
Power Plants.
Auto Insurance.
And all the ones we haven’t found out about yet.

So I ask myself why are these vermin out to crucify so furiously.

I think for about 5 seconds talk to the UCC and Boom it’s simple let me explain.

1) He owns a 100 million company. Jealousy big time.

2) He’s Fat, my wife goes up and a few dress sizes from time to time, at the regular weight, men open doors for her, make small talk, [email protected] is pleasant. Up a few sizes people are down right rude.

3) Behavior, It matters not what you score on your tests in school, it’s all about your attitude, Individuals with free spirits get crushed. Conformists are rewarded, rebels are punished. It’s all about slave making.

The conformist ass kissers absolutely hate it when the rebels succeeds.
Now If you’re a Fat Rebel, who is rich, and has a do it my way attitude.
That is like a declaration of war to the conformist, the schooled.

And if you’re tree hugging lefty your vindictiveness hate and jealousy knows no bounds.

Are you starved for attention? — Garth

#11 Victor V on 11.07.13 at 9:51 pm

#56 Bob Rice on 11.07.13 at 12:27 am

On investing in preferreds, is this a type of vehicle that you buy and hold (more of a long term investment) or can they be purchased with a short term window in mind (1 to 2 years?)

Thanks

Either. Fully liquid. — Garth

So I’m thinking blue chip preferrers, like banks and the like?

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

Unless you’re building a large $ portfolio don’t bother with individual picks.

Go with an ETF like CPD and you’ll be nicely diversified:

http://ca.ishares.com/product_info/fund/holdings/CPD.htm

#12 Victoria Real Estate Update on 11.07.13 at 9:54 pm

The MLS HPI is the home price index that is put together with information from participating real estate boards across Canada. Victoria has recently become part of this.

. . . Percentage Price Decline From Peak (MLS HPI) . . . . .
. . . . . . Greater Victoria Single Family Homes . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
– 3.0%. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
– 3.5%. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
– 4.0%. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
– 4.5%. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
– 5.0%. X. X. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
– 5.5%. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
– 6.0%. . . . . X. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
– 6.5%. . . . . . . .X. X. X. . . . . . . . . . . . . . . . . . . . . . . . . .
– 7.0%. . . . . . . . . . . . . .X . . . . . . . . . . . . . . . . . . . . . . .
– 7.5%. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
– 8.0% . . . . . . . . . . . . . . . X. . . . . . .X. X. X. . . . . . . . . .
– 8.5% . . . . . . . . . . . . . . . . . . . . . . . . . . . . X. . . . . . .
– 9.0% . . . . . . . . . . . . . . . . . X. X. X . . . . . . . .X. . . . . . .
– 9.5%. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .X . . . . .
– 10.0%. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
———————————————————————————————-
. . . . . . . M. J. J. A. S. O. N. D. J. F. M. A. M. J. J. A. S . . . . . .
. . . . . . . . . . . . . .2012. . . . ./. . . . . . . . 2013. . . . . . . . . .

This chart shows that Greater Victoria single family homes have experienced a total price decline of 9.7% from peak, based on the MLS HPI data. This (realtor generated) data is more optimistic than the 3-month median data, which shows total price declines of -10.6% (upper end SFHs) and -13.3% (lower end SFHs).

In light of the fact that some Canadian real estate boards have recently released somewhat manipulated housing market data to make the numbers look stronger, it makes sense to question whether or not this data has been manipulated and made to look stronger as well.

Girls and guys, single family home prices in Victoria have fallen 10-15% from the peak in 2010, which is surprising, considering that href=”http://www.ratehub.ca/5-year-fixed-mortgage-rate-history”>5-year mortgage rates have also declined significantly over the same period of time. However, rates have stopped declining and the housing market will no longer have that strong force pushing upward against falling prices. The result will be even bigger price declines.

If you buy now, you will be forced to watch the value of your house fall significantly. That would be a very difficult thing to deal with. Renting is the way to go. It will enable you to watch prices decline from the sidelines, knowing that you have avoided much financial hardship. It will also enable you to buy at much lower prices in the future.

Until next time – Cheers!

#13 Mr. Reality on 11.07.13 at 9:55 pm

Yup the largest demographic shift in the history of man kind is underway. Boomers age, they do not replace their numbers and consumption slowly erodes.

Debt induced deflation. And people are still going eye balls deep in debt and buying houses.

Silly sheeple.

Mr. Reality

#14 His questions don't auger well on 11.07.13 at 9:55 pm

Was that the Mary Quant who invented the mini-skirt and hot pants? How did she predict the direction of the economy? Are hem lengths in fashion as a predictive tool? For the economy, at least?

#15 Ford Prefect on 11.07.13 at 9:57 pm

Garth, I know you have little (no?) faith in real estate data put out by CREA etc. Nor do I.

Perhaps building permits, put out by Stats Can/ BC Stats, have some validity. If they do the Comox Valley, touted for years, at least here, to be the future real estate hotspot on Vancouver Island is really in the dumps. It looks like this area will see a building decline from the peak in 2010 of $144m to around $60m this year. If this happens it will be clear there has been a complete collapse of real estate here – in 2012 for example the second worst year in the past five years building permits were $98m. As you say, for home builders it is near depression.

#16 Smoking Man on 11.07.13 at 9:58 pm

Are you starved for attention? — Garth

I go through fazes……………

#17 Babblemaster on 11.07.13 at 9:58 pm

“We are ready to consider all available instruments,” bank boss Mario Draghi said as he promised to make money all but free until at least 2015.

————————————————————

Perhaps one of the clever steps (or instruments) they’re considering is to confiscate money from all the “rich” people as they did in Cyprus.

Regarding interest rates, they’re on a downward trajectory worldwide and obviously will not going up “significantly” for a long, long time.

Regarding the US Economic Recovery. To that I have to say BS! There’s no real recovery. It’s being artificially propped up with stimulus programs and emergency rates.

Garth, would you say that a person on life support (for five years) was recovering if removal of life support were to doom him?

#18 Nosty in Lapdance Land on 11.07.13 at 10:02 pm

#102 Smoking Man on 11.07.13 at 9:49 am — “BUY REAL EASTAE, BUY EQUITUES, BUY BONDS,”
— and —
#172 Smoking Man on 11.07.13 at 6:22 pm — “Who you going to believe, F trying to talk down the market, or little old Smoky…..”

H&F are proven lying politicos, so ‘nuf sed but you’re onto something there, SMan. As constant change is racing along at breakneck speed, too fast for the sloths in m$m to keep up with, don’t discount that either Russia or China could easily bring in a gold or silver backed currency. That is akin to foxes running henhouses, and would create enormous disruption worldwide.

Russia (and Hungary) have both ditched their Rothschild / IMF private-for-profit central banks (Libya is doing well, isn’t it?), and now have the freedom to do as they please.

Remember, a lot of top brass at the BBC are pro-Israel / zionist. What better platform to promote their anti-Muslim histrionics?

“I’ll bet those sources are the US and Israel. Saudi Arabia has been cozying up to China. There is a possibility Saudi Arabia is going to walk away from the Petro-dollar [which is what Iraq was about to do] deal and sell their oil to China for the Yuan without going through the US dollar. That puts Saudi Arabia on the US Government’s Special High Interest Targets list, and it is no coincidence that we are seeing these claims by anonymous sources that Saudi Arabia can get nuclear weapons “at will” as a precursor to the inevitable “Saudi Arabia is going to nuke Israel and so we MUST invade them NOW” crap to sell us yet another war.” wrh.com. SArabia and Venezuela

TPP — Further to confuse this world’s nonsense.

#157 broadway skytrain on 11.07.13 at 4:13 pm — “. . . he is def not one bit drunk, notice the water bottle, where’s the booze?” — That’s what the m$m crooks are for — Dazzle us with brilliance or baffle us with BS. Ignore their BS.

BTW, Kelowna’s RE market appears to be waking up, just in time for the big meltdown. It’s quite complicated, esp. for a simpleton like moi.

#19 not 1st on 11.07.13 at 10:11 pm

Twitter had a valuation of $25 billion at its opening price today. Its up almost 50% in one day. A company that basically does nothing, creates nothing, has nothing other than a little snippit of code and a lot of servers in their basement.

This is totally the pets.com moment in the tech sector again. I will stay wide and clear of that industry and let the fools rush in.

#20 renters rule on 11.07.13 at 10:12 pm

have to agree with smoking man tonight. The media and certain other groups’ relentless hounding of Rob Ford is psychopathic. I’d take Mayor Ford over Mayor Moonbeam every day of the week.

#21 crack head conservative on 11.07.13 at 10:13 pm

Only a crackservative would loan out $600,000,000,000.00 in sub-prime / liar loans to dead beats using taxpayers money. Do all conservatives smoke crack?

#22 eddy on 11.07.13 at 10:14 pm

Let’s keep Robs shenanigans in perspective. I recall Gordon Campbell was premier of BC when police records from Hawaii said he was smashed behind the wheel and swerving all over the road. Is it moral to bomb civilians with a signature? or walk around in private with a strap-on?

Rob only hurt himself

#23 AK on 11.07.13 at 10:24 pm

#7 BG on 11.07.13 at 9:49 pm
“I’m looking at the S&P500 historical data, from 1974 to now. We are right at the top on a peak that looks very similar to those of the dot com bubble and 2008 crash.

Why isn’t anybody claiming that another crash is coming?

That’s an actual question. I’m curious.”
====================================
What was the PE ratio in 1999 and 2008 ????

The PE ratios in 1999 and 2008 were well into the 20’s. The forward PE ratio is 15. You are not going to see a crash with a PE ratio of 15.

#24 AK on 11.07.13 at 10:25 pm

#75 Tony on 11.07.13 at 2:29 am
“The present day stock market is the same as the casino with the players long about to crap out. The people today are buying into a pyramid or ponzi scheme and we know how those always end.”
====================================
Hey Tony,

You need to cut down on your home made wine consumption…

#25 AK on 11.07.13 at 10:28 pm

#20 renters rule on 11.07.13 at 10:12 pm
“have to agree with smoking man tonight. The media and certain other groups’ relentless hounding of Rob Ford is psychopathic. I’d take Mayor Ford over Mayor Moonbeam every day of the week.”
====================================
Agreed. I would take Mayor Ford over any other Mayor that the City of Toronto has had over the past 50 years….

#26 StatInChance on 11.07.13 at 10:29 pm

Sooooo….if I have lots of ETF’s (very diversified), no debt, no mortgage (sold the house 3 years ago) but lots of cash still, then what am I doing with the cash (part of my diversification theory) if deflation is creeping up on us?

#27 Mike on 11.07.13 at 10:32 pm

The Star is Complicit and partners by silence when it comes to:

Orange.
e-Health.
Power Plants.
Auto Insurance.
And all the ones we haven’t found out about yet.

——————————————————–
In this rant is a grain of truth; why is everyone harping on Ford and Duffy, while nothing has been mentioned about the power plant cancellations. People have been on Ford from day one, and frankly, I’m sick and tired. Waste a billion dollars and everything is fine, but smoke some crack while drunk and you hear “how could he not be forced to resign; get him the f*** out of there!!” I’d rather Mcguinty smoked coke than wasted a billion dollars; using public funds for self-interest is totally fine.

#28 Mike on 11.07.13 at 10:34 pm

#26 StatInChance on 11.07.13 at 10:29 pm
Sooooo….if I have lots of ETF’s (very diversified), no debt, no mortgage (sold the house 3 years ago) but lots of cash still, then what am I doing with the cash (part of my diversification theory) if deflation is creeping up on us?
———————————————————-

Bonds

#29 Dan on 11.07.13 at 10:38 pm

I bought a chunk of XPF back in September, and I’ll keep the monthly dividends, but I’d hardly call its rise since the August bottom a “genius” investment.

Are you still convinced that the Fed will be done with QE completely by next fall, Garth? You were pounding the table for inevitably higher rates when TNX was spiking in the summer. Seems like you are flip flopping in light of the recent BoC and ECB developments.

Good boys go to Heaven. Bad boys go everywhere. — Garth

#30 Christopher Lackey on 11.07.13 at 10:40 pm

Montreal real estate market is DOWN year over year – reported today in La Presse business section. Bring on the hard times for the local pumpers and “only trends upwards” crowd.

I’ve run afoul of Garth a few times for professing my love of individual stocks – I feel the need to clarify only insofar as they are included in a balanced, diversified portfolio.

I had a feeling Twitter was going to do that today, but I stayed away. Tech and pharma literally are the casino. At least resources will always be worth SOMETHING

#31 Tripp on 11.07.13 at 10:52 pm

“…other than the Nobel Prize-winning economists and celebrated quants who populate this pathetic blog”

The latter may include some of the former…

#32 gladiator on 11.07.13 at 10:53 pm

Garth, if we didn’t have central bankers diddling around with the “levers” they have, we wouldn’t be in such a mess in the first place. If the average Joe didn’t have his money stolen quietly but systematically by these central bankers via inflation (they have a target inflation number and this is official information), the world economy would be on a much stronger and, more importantly, STABLE footing. People around the world would have much more confidence in their and their children’s futures and so on.
The self-proclaimed geniuses who call themselves “central bankers” screw with things too important to be screwing with like money supply and interest rates to “promote a stable growth of the economy” – something that only exists for short periods of time.
And don’t get me started on whose interests they protect and promote and who their Masters are…
If you want to write “cancer” in two words, it will be “central banker”.

#33 Smoking Man on 11.07.13 at 10:56 pm

Good boys go to Heaven. Bad boys go everywhere. — Garth
…………………………………………….

Awesome Sir

Meatloaf, sorta. — Garth

#34 Derek R on 11.07.13 at 10:59 pm

Garth wrote:
But the thing about deflation is that money grows more valuable, not less. Every month it buys more, as the 1930s proved.

True enough, Garth. And when you put it like that it all sounds fine and dandy. Especially for those of us with loads of cash.

But the scary part is that debt grows more valuable with deflation too. Every month it becomes more difficult to pay off, both for businesses and for households, as money becomes scarcer. As the 1930s also proved.

That’s why everyone should be scared of deflation.

#35 45north on 11.07.13 at 11:09 pm

mike: why is everyone harping on Ford and Duffy, while nothing has been mentioned about the power plant cancellations.

yeah that’s the biggie, Rob Ford as mayor of Toronto is small beer. I mean City Council cannot vote him out but it can vote him down. The Ontario deficit is $11 billion – that’s deficit not debt!

#36 Something on 11.07.13 at 11:10 pm

I think S&P 500 was due for a correction. I think it started today.
1. Earnings are good – ppl buy stocks, gold was moving down – S&P 500 was the place to be.
2. The end of the year is here.
3. And the most important part. Both Europe and US are going to start stress tests on the banks in few weeks. All banks have to prepare for that. How do you think they can pass the tests?
I think it’s time for the big guys to take some profits.
I’m expecting a solid short term market correction.
Thoughts?

#37 gladiator on 11.07.13 at 11:11 pm

Haha, the Liberals use Ford as the easy-to-punch schmuck for the peeple and in the same time getting away with literal murder – billions in losses for Ontario. To me this looks like a very agile guy dangles a toy in front of your eyes (and you focus your attention on it) while he steals money out of your pocket.
For the human mind it is much easier to understand and react to crack smoking than to wrap itself around a billion dollars that no one saw. Yes, it is a lot, but I didn’t see it, it’s somewhere out there and I have nothing to do with it.

It boils me blood just thinking about what’s being done to us by someone who will not be held responsible for it, while I pay for their very comfortable retirement in the future.

#38 renters rule on 11.07.13 at 11:11 pm

good girls go to heaven. bad girls go to montreal. ;-p

(I have the t-shirt) :-)

#39 jaguar on 11.07.13 at 11:20 pm

Garth..do you believe there will be a Black Swan event?

#40 not 1st on 11.07.13 at 11:25 pm

I think secretly Garth still believes in the political system.

Not me. I have seen enough of Duffy and Ford and Brazeau. Everyone of those **** are only in it to line their pockets and waste tax payer money or use it to buy votes or give it to some other group.

So my solution is to act like a 1 percenter as much as I can. My household income will be limited to $100k per year and only come in as dividends. I will pay no tax on this amount as the rules on dividend tax credit allow that much income without tax consequences.

All other income will be through my corporation and will be sheltered in my company at the minimal marginal tax rate of approximately 10-12% and I will endeavor to offset that even further with deductible capital investments in my business.

#41 Grasshopper on 11.07.13 at 11:28 pm

@27 and 28 Mike

I agree with both of your comments.

So how do you propose to affect a change?

(I’d like Rob Ford to make a positive change in Toronto. I’d like to understand why it will cost over a billion dollars to taxpayers for something that wasn’t built.)

#42 Carpe Diem on 11.07.13 at 11:29 pm

Twitter has eyes. Not mine but lots of other people.

It’s all about how many people go to your site (and app).

Twitter folks are genius (not that bought their stock).

They get very little data out per person but have lots of people getting notifications.

Low bandwidth costs, high number of views and opp to advertise.

I’ve had plenty of ideas in life (too bad I never executed correctly).

But this one, in terms of computer science and economics is awesome.

Now if they could just make money!!!

They should contact me since I now have an idea.

#43 Carpe Diem on 11.07.13 at 11:39 pm

SM 10 …

Now that rocks dude!

Although I agree with the thoughts …

Ford, being a public figure should have been more discreet in terms of his ways. If you have a private, party life, make sure you keep it that way!

He’s not so smart … getting into crack is being an idiot … seriously. Even if it was one time (unlikely).

I do not live in TO. I have a man-voiced, probably gay mayor. My mayor rocks compared to TO’s.

But I agree with you on so many levels on your post!

#44 omg on 11.07.13 at 11:41 pm

OK, so we have a had a few bad economic numbers, and everyone is talking slowdown and deflation.

A few good macro numbers over the next weeks and everyone will be back to talking about tapering.

Short-term market sentiment is run by the media – best to not worry about the short-term static and keep the longer-term trends in perspective.

The only long-term trend that you need to remember is that equities, over the past 100 years, beat the crap out of all other passive investment classes.

Is it possible we are heading into deflation or another recession – yes, – is it probable – NO.

So do not get spooked.

#45 jim on 11.07.13 at 11:45 pm

#22

Indeed, it was something of an obscenity to hear ana bailao call for Ford to resign. A woman who was caught driving while solidly inebriated excoriates someone for recreational drug use. She could have killed someone, while Mayor Ford merely looks like a trailer park denizen. Which is actually dangerous?

(Not that I am a fan of Ford, but let’s not be unrealistic about the danger posed by drunk drivers)

#46 Mark on 11.07.13 at 11:54 pm

“The PE ratios in 1999 and 2008 were well into the 20′s. The forward PE ratio is 15.”

“forward PE ratio”. Based on analysts who have mostly been wrong. The 1929 crash was from a P/E of 17 I understand.

Not even close. In 1929 it was 32.6. — Garth

#47 Grasshopper on 11.08.13 at 12:09 am

@Gladiator #32

The powers that be do not want confidence or stability.

I’m trending towards becoming a “Smoking Man” convert: what is required are slaves.

Follow the rules, be a good employee, pay your taxes and borrow, borrow, borrow. Expose yourself to advertising and purchase to feel complete.

Now you are in debt. Once in debt, you are a slave to your master. (the entity to who you must repay the debt)

And this is where most Canadian consumers are …

#48 Inglorious Investor on 11.08.13 at 12:09 am

Smoking Man, in your own dyslexic way you hit the nail on the head RE: Rob Ford.

There is a powerful cabal of neo-communists on city council who hate the idea of more efficient, fiscally responsible government. They have been targeting Rob Ford since he was elected.

Now they are trying to remove, by decree, a democratically elected leader. It’s a coup, pure and simple. Remember, nothing happens by accident in politics. Rob Ford is not in trouble just because of his flaws. He’s in trouble because they tried so hard to expose those flaws. You can usually find dirt on someone if you dig deep enough.

It’s just such a shame that Rob Ford gives them so much ammunition with which to shoot him down. He has the tax payers’ interest at heart. All the neo-communists care about is expanding the gravy train (for them). God help Toronto if one of the members of this commissariat gets elected mayor and their supporters gain the upper hand . Property taxes will skyrocket and they will devise new taxes, fees, levies, surcharges, etc. never before conceived by man or God.

Working people of Toronto, be careful what you wish for. I hope he beats the coup, stays in power, gets straight and gets back to business as quickly as possible.

#49 Grasshopper on 11.08.13 at 12:12 am

@37 Gladiator

bingo

#50 Smoking Man on 11.08.13 at 12:17 am

Garth just saw F talking about the ford’s, first instinct wasa a smoky act. But it was sincere.

F is not bad guy, just a conformist, I think I like him.

You know him.. Not asking you to comment. But think I grew a tone of respect for him tonight.

He’s human.

Thanks for letting me play here. Sober during the week and the hyper typing is helping huge.

Can’t wait till tomorrow, it’s Friday and I get a pass.

#51 jj on 11.08.13 at 12:22 am

#10 Smoking Man on 11.07.13 at 9:51 pm

Let me start off by stating I am Not a Leftist, I am a capitalist.

But your line of thinking is Cracked. Ford LIED, yes LIED repeatedly about the fact he did smoke crack. That alone destroys all credibility heloooooooo you there smoking man (I won’t go there, too easy).

Next just the fact he smoked cracked, only confessed when the Tapes showed up, last I checked there are alot of families that happen to have kids that must be represented in the towns, cities, provinces and yes countries by people who at least uphold good judgement and personal responsibility of their actions.

Rob Ford is only out to help and save Rob Ford and only cares about, wait for it, ROB FORD, end of story. The actions of him is the sociopath AND not the media, you have it backwards, a lot like your incoherent nonsense you spew on this blog everyday.

As if you impart your confused, awkward, and often idiotic diatribe masquerading as so called wisdom on us, Thanks but this Gen Xer sure as hell don’t need it.

Ford, paid by taxpayers money, must resign, it’s done. Thanks but the taxes I pay to my so called “leaders” will not be going to lying crack head losers. He also must be charged, but hey, I actually have an independent point of view on this matter.

I am not a lefty, nor a righty, I am politically atheist who see’s a huge amount of problems we currently have in our Republic (yes not a democracy) that need to be changed. They won’t, not before we collapse.

Take that advice

JJ

#52 JimH on 11.08.13 at 12:23 am

#23 AK
Not wanting to split hairs, but while the forward PE of the S&P 500 is still attractive, the current PE of ~19.5 makes me lean a little towards prudent profit-taking at this time.
Just the same, I remain bullish on the American market longer term, but expect a draw-down over the next few days. This will present some better entry levels for the Bearded Clam’s grand finale.
“Helicopter Ben” is about to produce the greatest Xmas goose the American markets have ever seen, prior to his year-end graceful exit.
Thus have we made the world, my friend.

#53 HDJ on 11.08.13 at 12:27 am

A gloomy economic outlook. However, there’s also David Suzuki’s recent warning about Japan’s Fukushima nuclear plant. “I have seen a paper which says that if in fact the fourth plant goes under in an earthquake and those rods are exposed, it’s bye bye Japan and everybody on the west coast of North America should evacuate. If that isn’t terrifying, I don’t know what is.” Getting 7% on my investments isn’t that important. HDJ

#54 Inglorious Investor on 11.08.13 at 12:35 am

“For a long time this blog has told you to be more afraid of deflation than inflation.”

It’s a common mistake to frame the current economic situation as a binary choice between inflation vs. deflation, whereby inflation means rising incomes and prices, while deflation means falling incomes and prices. Deflation in the real economy is being offset by monetary inflation in the banking system.

Currently, the most likely scenario is stagflation (as in the US): rising prices for goods and services, but stagnant or falling wages.

But even if that were not the case, what really matters (as is always the case in economics) is the relative rates of change in co-related metrics, not their nominal values. Prices can be falling (price deflation) but if liquidity is falling even faster, then goods and services can drop dramatically in price and still become less affordable. This is in fact what transpired in the 1930’s as prices collapsed, but money became extremely scarce, such that, even at lower prices, things became increasingly unaffordable for the average person.

All the central banks have managed to do so far with all of their money printing is devalue their currencies, driving up the cost of living. So, yes, you are correct that if you have money to spend (after the monetary inflation devalues it) when/if a deflationary episode occurs, you may be able to buy assets on the cheap, but the average person will simply find living less affordable.

Always remember: there is no free lunch. But the central banks, in their attempt to keep the money supply expanding so that the banks don’t collapse, are trying to convince the people that if they keep printing long enough, eventually we are all going to get to eat as much yummies as we want.

It is simply insane, and one day people will realize just how insane it is. Except at that point it may be too late.

#55 Yuus bin Haad on 11.08.13 at 12:36 am

#10

And, who now in the world hasn’t heard about Toronto and is motivated to find out where it is (and maybe visit) … Finally!

#56 KommyKim on 11.08.13 at 12:36 am

RE: #48 Inglorious Investor on 11.08.13 at 12:09 They have been targeting Rob Ford since he was elected.

Now they are trying to remove, by decree, a democratically elected leader. It’s a coup, pure and simple. Remember, nothing happens by accident in politics.

Rob Ford is a buffoon. He has not been framed, tricked, or forced into smoking crack cocaine. He does not know how to handle the media or how to resist his basest urges. He does not know how to securely delete files on a memory card. He is no victim. He is a loser. People who defend him are losers.

#57 len on 11.08.13 at 12:41 am

I know that people still really believe in the system: Ford is a scapegoat, Harper just had a misunderstanding with some corporate toady Wright etc.

Meanwhile, the Federal Banks are desperately shoveling money to banksters so they don’t pull the plug on all of us. We are like the dancing chickens: the federal banks turn up the heat under our feet so we dance because we are too distracted to notice we can jump off the stage before we get fried completely. What else can they do but desperately try and maintain the status quo. Someone asked about a black swan: impact of Snowden revelations AND backing away from tapering. Be nimble and ready to jump off that stage on a very very short notice!

#58 Inglorious Investor on 11.08.13 at 12:50 am

#53 KommyKim on 11.08.13 at 12:36 am

Don’t be so naive. Of course he’s a victim. He’s just a very easy target. And people who defend him are not losers. They are simply people who are fed up with so much waste and corruption in government. I hope if he gets pushed out, we get a mayor with the same basic agenda, but not all the personal flaws. If not, EVERYONE in Toronto will lose. Eventually, even those who suck money from the system rather than contribute to it will lose too. Socialism is great until you run out of other people’s money. But when you do run out, then what? Detroit?

#59 jj on 11.08.13 at 12:53 am

For you smoking man, Garth will not post my link, but in my post above I added a link from youtube of George Carlin on Cigars. Youtube it up, specifically for you and Ford worshippers.

JJ

#60 HAWK on 11.08.13 at 1:02 am

#34 Derek R on 11.07.13 at 10:59 pm

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

Where exactly do you see the deflation?

Well besides falling wages due to outsourcing of N. American jobs to cheap overseas labor markets and perhaps a ridiculously oversold condo market that will experience correction for some years, because of crazed over-construction.

These few things do not constitute “deflation” from an overall economic perspective.

Virtually everything else i.e. food, energy, transport, utilities, useful land, urban housing, furniture, cars etc and even high tech gizmos are going up in price. Unless I am missing something, there’s not much deflation around town.

BTW – Even if deflation were to occur, there has hardly ever been a case of hyper-deflation in modern history, several case of hyper-inflation.

#61 Inglorious Investor on 11.08.13 at 1:07 am

Why Socialism Fails (From a recent post by Martin Armstrong)

A class at a community college in the US insisted that Obama’s socialism worked and that no one would be poor and no one would be rich, a great equalizer.

The professor then said, “OK, we will have an experiment in this class on Obama’s plan”.. All grades will be averaged and everyone will receive the same grade so no one will fail and no one will receive an A.

After the first test, the grades were averaged and everyone got a B. The students who studied hard were upset and the students who studied little were happy. As the second test rolled around, the students who studied little had studied even less and the ones who studied hard decided they wanted a free ride too so they studied little.

The second test average was a D! No one was happy. When the 3rd test rolled around, the average was an F.

As the tests proceeded, the scores never increased as bickering, blame and name-calling all resulted in hard feelings and no one would study for the benefit of anyone else.

To their great surprise, ALL FAILED and the professor told them that socialism would also ultimately fail because when the reward is great, the effort to succeed is great, but when government takes all the reward away, no one will try or want to succeed. Could not be any simpler than that.

———

What’s even sadder for Obama’s supporters, is that “Obamacare” is NOT socialized medical care, like Medicare in Canada. It is form of coercion whereby you are forced to buy PRIVATE insurance or be fined by the IRS. Already people are finding that their medical insurance costs are going through the roof under the new, so-called Affordable Care Act plan. People, it’s a scam. And it should be illegal.

#62 As Is Old Man on 11.08.13 at 1:08 am

Where is Old Man? I ask as miss him and his stories as are amusing.

#63 Country Girl on 11.08.13 at 2:03 am

#14
The story goes… The economy predicted the length of the skirt.
When the economy was down women couldn’t afford new pantyhose so the length of skirts when down to cover up more. When times were good, skirt lengths were shortened because now women could afford new pantyhose.
Also an interesting more current note, when times were bad underware (men & women) sales went up because it was the only clothing item people could afford to buy to make themselves feel better.

#64 Marginal on 11.08.13 at 2:12 am

Home late this evening, but so glad that the situation in Toronto has now been put to rest. Rob and Dougie did their best, but it didn’t work. They had to bring out the heavy artillery, Mom and Sis.

Yeah, Mummy, Diane Ford, is the political matriarch hosting the BBQs and having once told John Tory (2003) that the Fords would support him for mayor but then it would be Robbie’s turn. Poor Sis Kathy, former heroin addict and common law spouse of a drug dealer. There seems to be a common drug theme (see G&M article re Doug dealing drugs in high school).

I guess with the Ford women having to step forward to defend both Rob and Doug (Kathy said Doug has to chill out), one could ask if they are real men.

I am a fiscal conservative, but this is la la land. Would not normally have posted this comment, but seeing all the other Ford posts, what the heck…don’t want to be a supporter of what appears to be a major drug theme in this very wealthy and influential Toronto family.

#65 Marginal on 11.08.13 at 2:25 am

#10 Smoking Man on 11.07.13 at 9:51 pm

Ornge (not Orange) scandal was brought to light of day by the investigative reporters at The Toronto Star.

Surprised that someone like you (tapped into UCC etc.) would let ideology get in the way of conclusions.

#66 Tony on 11.08.13 at 2:26 am

Re: #23 AK on 11.07.13 at 10:24 pm

Today we see voodoo accounting, mark to market and things people don’t even know about yet. The P/E ratios are probably around fifty in the present day market not 15.

#67 Future Expatriate on 11.08.13 at 2:26 am

#21 Only when they’re in a drunken stupor.

#68 Andrew Woburn on 11.08.13 at 2:33 am

Re Twitter: I have discovered that Twitter does not necessarily post what you send it. I made several attempts to tweet to a specific hashtag. Each time my tweet appeared in my account but not on the hashtag. When I dug for an explanation, I found out that Twitter has an algorithm which determines what it is going to save based on factors such as the sender’s number of links, retweets and prior activity. The process is apparently intended to conserve Twitter’s capacity. In other words, good luck getting anything out there if you are a new user. Seems a bit odd for a multi-billion tech company with global ambitions.

Re Rob Ford: In all the acres of words I have seen about Ford, I have not yet seen the word, “shame”. Must be one of those obsolete 20th century concepts. For younger readers who have never encountered the word, it is roughly equivalent to the Chinese concept of “face”.

#69 P.Bocanegra on 11.08.13 at 2:36 am

I bet “Inglorious Investor” and “Smoking Man” are the same really screwed up guy.

And remember folks: the lying crack smoking degenerate is not corrupt. No sir. Its all the “neo-communists” fault. And the great Liberal Media conspiracy. And so on.

#70 crackservative on 11.08.13 at 2:42 am

Lol are the people of toronto are the biggest morons in Canada? No wonder housing prices are where they are. They voted for a crackservative or should I call him a conservative or just a crack head? People all over the world are laughing at the stupid toronto voters. Anyone who votes for a conservative must be on crack. Conservatives are the biggest crooks and in Toronto case a Crackhead

#71 94 on 11.08.13 at 2:48 am

Are we in for another temporary correction on the S&P 500?

#72 Happity on 11.08.13 at 2:48 am

David Stockman says it all for those with the digital investment fetish…

“There’s no one in the stock market today except drugged-up day-traders and robots… This is utterly irrational.”

#73 crackservative on 11.08.13 at 2:52 am

It’s scary to see these rich kids running the country and in Toronto case the city. You don’t need education for most jobs just connections. I can only imagine what it is like to be part of the good old boys club? Garth is still a member but he cared to much for the average Joe and the CONS kicked him out. Garth could be running the country. He is smart enough he may not be that high up on the good old boys ladder. G.W Bush was US President and rob ford mayor of toronto. These are just two examples that money connections and high enough on the good old boys ladder and you can be whoever you want regardless if you have no talent or brains. It’s crackhead crazy but ture.

#74 Marginal on 11.08.13 at 2:53 am

#22 eddy on 11.07.13 at 10:14 pm
#45 jim on 11.07.13 at 11:45 pm

Given your concerns about drunk driving, I’m sure you will both be pleased to know that even Rob Ford’s mother and sister told CP24 late this afternoon that “Mayor Ford needs to get a breathalyzer to start his car and see a counsellor”.

Google National Post for more details.

#75 Valleyboy on 11.08.13 at 3:22 am

Good article Garth

Are you loosing faith in central bankers? should I say the g word naa.
Sadly I wanted to actually buy some of this dam Bitcoin a week ago, but decided to set up a trading account. Account at https://www.cavirtex.com/ account still not activated and bitcoin 200 to 300 now in a week wtf is up with this bitcoin. Is it going to crash again, get hacked, get Controlled by one miner group, go to 1 mill as some talk about, or government take control of the internet to send b coin to 0.
Hmm to buy or not to buy what is the answer?

#76 cynically on 11.08.13 at 3:51 am

#51 jj – Canada unfortunately is a monarchy, not a republic. Remember the Lady across the water.

#77 toronto world class joke on 11.08.13 at 4:00 am

You shameless toronto realtors trying to compare toronto to other real world class cities like Paris or New York is laughable. Toronto doesn’t hold a candle to Chicago where $400k there gets you a home that would cost $1 million in crack loving toronto. Canadians must all be on crack and your housing bubble / ponzi / scam proves it.

#78 expat on 11.08.13 at 4:42 am

“In Europe inflation has essentially disappeared”

hhhmmm tell that go the cost of energy…. it goes up about every year about 15%

only the “official” numbers show zero inflation… things that make you go hhhmmm

#79 Pulp Faction on 11.08.13 at 5:08 am

(other than the Nobel Prize-winning economists and celebrated quants who populate this pathetic blog)

Seriously ?

#80 Buy? Curious? on 11.08.13 at 6:09 am

Hey Garth! Guess what? I bought TWTR (Twitter) for $33 and sold at $38, a 15% return for less than an hour’s work! (Smoking Man, are you proud of me?) I made more money in that one hour than I did working summers inbetween University. What’s my point? I used most of left over profit from the sale of my first house to sink all into one trade. I bought that house with no money (I got a loan for the downpayment from a guy named Pavideer). You can call it gambling if you will, but who cares? My trip to France is paid for. If I was renting from 2003 until now, investing in REIT’s, ETF’s and WTF’s, I’d be lucky if I had $100k.

Houses are commodities just like stocks, telecommunications, data storage etc. Everyone should get in while the getting is good!

http://www.youtube.com/watch?v=gzZNh0P9K38

#81 sam spade on 11.08.13 at 6:40 am

Quant
noun \ˈkwänt\
Definition of QUANT
: an expert at analyzing and managing quantitative data
Origin of QUANT
short for quantitative (analyst)
First Known Use: 1979

#82 sam spade on 11.08.13 at 6:43 am

Want to keep your job? Rent, don’t buy!

I believe Garth wrote about his months ago.

http://money.cnn.com/2013/11/07/news/economy/homeownership-unemployment/index.html?iid=HP_River

Encouraging young people to buy a home may be storing up trouble for the future in the shape of higher unemployment, according to a new study.

Researchers from Dartmouth College in New Hampshire and the U.K.’s University of Warwick say that when countries see an increase in home ownership, unemployment begins to rise a few years later, partly because people become more reluctant to move to find a job.

As well as reducing labor market mobility, the researchers said home ownership leads to longer commutes, which are a waste of time and money.

Homeowners are also more likely to be opposed to new businesses opening in their neighborhoods, stifling entrepreneurship.

#83 Twtr on 11.08.13 at 7:03 am

Twtr never traded at $33????????

#84 willworkforpickles on 11.08.13 at 7:32 am

Ford likely had paranoid thoughts of Deliverance (the movie) on his mind and thought it better to do a pipe than risk being jumped and humped and forced to squeal like a pig.

#85 eddy on 11.08.13 at 7:34 am

@#77 toronto world class joke

and

#70 crackservative

—–

Are you guys related to ‘realtors in a panic’?

#86 jj on 11.08.13 at 8:02 am

#76 cynically on 11.08.13 at 3:51 am

We may be symbolically represented by the monarchy, but laws of the land are not dictated and enforced from outside the country via the monarchy in Britain, but are voted upon and enforced by a representative democracy which is what we have now.

That means the mechanics of how laws are created and governed are in a representative democracy, where a representative votes on bills for you and me, and not a individual democracy where you and I vote on any new laws or bills are brought to floor.

The country I would like to have is a individual democracy when it comes to voting on bills, laws, taxation, or any other contract laws that are proposed. As well as the fact proposals can be reviewed from citizens.

That and my taxes only remain within the community and not sent to a centrally run governance.

On top of making it illegal for our government both locally, provincially, and nationally to ever borrow in exception to times of war. Not as aggressors but as defense.

So in essence, the mechanics of how Canada works currently is much more like a Republic. That and we have career politicians where we need 2 year maximum in office to avert or at least minimize cronyism and corruption.

I can go on and on, but my basic point is we are not a democracy, but more operated as a republic.

JJ

#87 Obvious Truth on 11.08.13 at 8:12 am

# 80

Was there a secondary I wasn’t aware of or did you buy and sell a couple million shares on the floor between 930 and 10 yesterday?

Oh wait auction opened in the 40s. Must have been the secondary.

Do you think Garth laughs when he reads your post.

Your imagination just went limit up.

#88 pulse on 11.08.13 at 8:45 am

“In other words, if we didn’t have central bankers around the world diddling with the money supply, providing more stimulus than Miley Cyrus or suppressing lending rates, we’d be out shooting squirrels.”

Really??? The guards holding the keys are those who bring freedom? Please explain the thought process which twists honest weights and measures into such a misguided perception of elite benevolence. (It is consistent with past drivel which occasionally drips from this blog…just trying to understand the evolution of an unrepentant boomer.)

We do have the power to change all of this …. it will cost us a lot and the reward is not measured in dollars, but sense. The other route assigns the next generation to perpetual debt servitude.

The debt peddlers have systematically crippled free will and forgiveness while promoting division and isolation. This trap of compounding interest systematically deceives and attacks families, initiative, honest ambition and forces people, who could be easily assisted by their neighbour, to cuddle up to a temptress which so many think of as a “Safety Net.”

Oh well…. let it be…. I can do nothing about it…. and various other self-immolations. All these false messages are designed to emasculate us and submit.

Some have the gift of real experience in these matters. They can hold the status quo responsible or continue to serve the masters of deceit … you see they were also given free will.

Good luck, Mr. Turner.

#89 detalumis on 11.08.13 at 9:01 am

I’m not sure what you want the 69 year old widder-woman to do. She obviously has never lived in a nice place her entire life, it was make do and make do, probably married to a really cheap guy. In ten years she won’t care where she lives.

So you are suggesting she save her money, rent, invest it in something better, leave the money for her kids to spend and prepare to die. I would tell her to go buy a little centrally located condo and furnish it with nice stuff. So what if the price falls at least she gets to experience having something nice for once in her lifetime.

And live on what? OAS of $540 a month? — Garth

#90 CrowdedElevatorfartz on 11.08.13 at 9:44 am

@#53 HDJ

Ahhh yes David Suzuki’s wonderfully vague statement “I have seen a paper …..” smacks of alarmist rhetoric at it’s lowest form.
Who wrote the paper? When was it written? Why has no one else seen this “paper”.
I’m sure if the situation in Fukashima was as dire as he would lead us to believe, the US would be in there like a dirty shirt. ( They’ve bombed countries flat for less).

David Suzuki’s sensationalist drivel should be taken for what it is. Environmentalist alarmism without the evidence to back it up…. Nothing like drumming up a little business for the lecture tours.
Dont forget, he has lectures to perform to help pay for the mortgage on his carbon “not neutral” mansion on the west coast.

#91 Derek R on 11.08.13 at 9:47 am

#60 HAWK on 11.08.13 at 1:02 am asked:
#34 Derek R on 11.07.13 at 10:59 pm
============================
Where exactly do you see the deflation?

In the money supply.

The following items tend to cause inflation: exports; government spending; new loans; savings withdrawals; falling productivity.

The following items tend to cause deflation: imports; government revenue; loan repayments; savings deposits, rising productivity.

If the inflationary items total more than the deflationary items, there will be inflation. And vice-versa.

Don’t get misled by rising prices. Inflation causes rising prices but so do other things, such as shortages or monopolies. So rising prices can happen even in a deflationary economy.

#92 Rexx Rock on 11.08.13 at 9:55 am

We all know the goverments and the Central banks colluded to get everyone enslaved.Its part of the new world order.The masses are sheep and its goig to get worse like Garth is trying to warn us.Be prepared because the working class are going to screwed royaly.Are standard of living will become like Mexico in a few years and that is a fact.

#93 Sydneysider on 11.08.13 at 10:00 am

There is no Nobel Prize for economists. perhaps you are thinking of the Bank of Sweden Prize (awarded in honour of Nobel, but funded by the bank).

#94 Daisy Mae on 11.08.13 at 10:03 am

“The disconnect between an unravelling economy and popular opinion is stunning”….AND we vote into office “crack-smoking, debauched, amoral mayors”…and a number of us think that’s just fine.
We’re a bright bunch! LOL

#95 Macrath on 11.08.13 at 10:07 am

OH great, now we can be scanned by every punk with a cellphone.

Smartphone app that allows credit card skimming ‘real risk’ to consumers: experts

http://globalnews.ca/news/508214/smartphone-app-that-allows-credit-card-skimming-real-risk-to-consumers-experts/

#96 JimmyAAA on 11.08.13 at 10:15 am

#58 Inglorious Investor on 11.08.13 at 12:50 am
#53 KommyKim on 11.08.13 at 12:36 am

Don’t be so naive. Of course he’s a victim. He’s just a very easy target. And people who defend him are not losers. They are simply people who are fed up with so much waste and corruption in government. I hope if he gets pushed out, we get a mayor with the same basic agenda, but not all the personal flaws. If not, EVERYONE in Toronto will lose. Eventually, even those who suck money from the system rather than contribute to it will lose too. Socialism is great until you run out of other people’s money. But when you do run out, then what? Detroit?

=====================================
How about DOING some of the things they say they are going to do. Maybe socialism has its faults, but show me a single conservative government that has a sustainable fiscal program. I think you support HIM because he says the right things. Gravy train and all that. Of course he never actually did any of that. In Canada, the only conservative governments that have been able to balance their budgets have either had 1) huge revenue windfalls from resources that they completely spent or let infrastructure completely rot and then left it to the next government. Every other one – DEFICIT, DEFICIT, DEFICIT. Frankly in our country, only Liberals balance the budget.

BTW – there are shit load of Northern European Countries that practice varying degrees of socialism quite successfully. They aren’t failing in the slightest. Of course they understand that public servants often have valuable jobs.

You conservative types keep repeating the same shit and SHOW ZERO facts that what you espouse has ever worked. 40 + years of this crap (since Reagan/Thatcher) and you NEVER can balance your budget. Because you always cut taxes waaaaay too soon. You always say that waste and corruption are the reason and you will find efficiencies. And then you never do. You wanna know why? Because there isn’t nearly as much waste as people believe. And often those social services are more valuable than people believe. You wanna cut all those entitlements, then be prepared to have a $2000 deductible after your house gets broken into for the 4th time. Or your car. Or maybe you will just let the streets rot beneath us. Thats what happened to Edmonton. Just cut spending and then one day the potholes are bigger than the car. Or better yet cut Mental Health and outpatient them all. Because a very mentally ill person will for sure take his meds if he is told to. And if not we will just jail him eventually.

I give up, you are all freaking brainwashed. Go kiss his fat ass. He is a hell of a leader for your type.

#97 pbrasseur on 11.08.13 at 10:18 am

Bloody nose for Garth this morning ;-)

http://money.msn.com/business-news/article.aspx?feed=OBR&date=20131108&id=17081443

As I always said, this blog is fine to follow RE, for other topics such as investment, economy and markets you may want to open your horizons…

Not my nose. I quoted a consensus of economists. How’s the view from the back seat, anyway? — Garth

#98 Herb on 11.08.13 at 10:27 am

#68 Andrew Woburn,

“shame” is only for girly men/equivalents, obvious failures, and the civilized. Real, Smoking Men and successful politicians don’t have it.

#99 Stuck in Vancouver on 11.08.13 at 10:28 am

I will make this comment but I risk it being misinterpreted. I think Toronto is awash in cocaine. If I had to guess which Canadian city out of all the cities in Canada would have a mayor on crack, I would have guessed Toronto. Toronto is a fast-paced city, it is a party city, it is a work-hard, play-hard kind of city. Cocaine is the best drug for a city like Toronto. When my friends moved to Toronto from Vancouver they all started dabbling in cocaine. I think there is a lot of cocaine and crack in Toronto–disproportionate to the population. Vancouver is more of a hippy drug kind of city–pot–and for the hardcore, heroin. Don’t get me wrong, there’s crack and cocaine in Vancouver too. But a lot of the druggies in the Downtown Eastside are doing heroin. It’s telling that in Vancouver, they want to set up supervised injection sites whereas in Toronto the debate about harm-reduction concerns supervised inhalation rooms. Yes, you can inject crack–but most users smoke it. Injecting is more associated with heroin. So Vancouver is more of a heroin city and Toronto is more of a cocaine city–the drugs match the vibes of the city. Vancouver is laid back and sleepy (well at least it used to be) so heroin is a downer so that fits. Toronto is a fast go-go-go city so cocaine as an upper fits.

#100 Inglorious Investor on 11.08.13 at 10:42 am

#96 JimmyAAA on 11.08.13 at 10:15 am

Your comment indicates how confused you are, and how poorly you grasp the fundamentals.

#101 Buy? Curious? on 11.08.13 at 10:43 am

I smoke crack cocaine.

#102 jess on 11.08.13 at 10:46 am

New index reveals UK runs biggest part of global secrecy network

TJN’s 2013 Financial Secrecy Index exposes yawning gap between G20 rhetoric and reality

Today the Tax Justice Network launches its 2013 Financial Secrecy Index, the biggest ever survey of global financial secrecy. This unique index combines a secrecy score with a weighting to create a ranking of the countries that most actively and aggressively promote secrecy in global finance.

http://taxjustice.blogspot.co.uk/2013/11/2013-financial-secrecy-index-press_6.html

===========

debt as the reserve currency?
http://www.golemxiv.co.uk/2013/10/global-debt-global-currency/

#103 ss on 11.08.13 at 10:47 am

I disagree on the deflation point. Although the official inflation stat is close to nil, anyone running a household knows everything is going up – taxes, GO train tickets, food (grocery, takeout, meals in TO PATH), gas, etc.
The best case is cars and electronics, prices almost remain same but replaced with new models. Oh, forgot about wages too!

As I have stated many times, price inflation is not the same (or as dangerous) as asset deflation. Do not confuse the two. — Garth

#104 Network Admin on 11.08.13 at 10:49 am

#95 Macrath on 11.08.13 at 10:07 am
Smartphone app that allows credit card skimming ‘real risk’ to consumers: experts
——–
The RFID chip can be “burned” (of course you won’t be able to use it after that)
http://hackaday.com/2009/12/22/terminate-rfid-tags/

#105 Smoking Man on 11.08.13 at 10:52 am

#59 jj on 11.08.13 at 12:53 am
For you smoking man, Garth will not post my link, but in my post above I added a link from youtube of George Carlin on Cigars. Youtube it up, specifically for you and Ford worshippers.JJ
…………………….

Nothing to do with worshippe

I hate bullies, I hate the star.

Espicaly hate Rosie DiManno’s view today.

A heartless attack on ford’s mom and sister, kick them in the face when they down. Shoot the dead body up with a hundred bullets cause it’s fun.

She needs a Shrink and perhaps a more fulfilling love life to release some stress.

#106 Daisy Mae on 11.08.13 at 10:53 am

#45 Jim: “….while Mayor Ford merely looks like a trailer park denizen. Which is actually dangerous?”

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

Wasn’t Ford threatening to kill someone — quote: “either he dies, or I die?”

#107 Shiner on 11.08.13 at 10:55 am

#10 – Smoking Man
“They rush to get it out to all MSM so their quest to bring down a politician with the biggest heart I have ever scene in a public figure.”

There’s no doubt he’s probably got an enlarged heart by now.

#108 JimmyAAA on 11.08.13 at 10:56 am

#61 Inglorious Investor on 11.08.13 at 1:07 am
Why Socialism Fails (From a recent post by Martin Armstrong)

A class at a community college in the US insisted that Obama’s socialism worked and that no one would be poor and no one would be rich, a great equalizer.

The professor then said, “OK, we will have an experiment in this class on Obama’s plan”.. All grades will be averaged and everyone will receive the same grade so no one will fail and no one will receive an A.

After the first test, the grades were averaged and everyone got a B. The students who studied hard were upset and the students who studied little were happy. As the second test rolled around, the students who studied little had studied even less and the ones who studied hard decided they wanted a free ride too so they studied little.

The second test average was a D! No one was happy. When the 3rd test rolled around, the average was an F.

As the tests proceeded, the scores never increased as bickering, blame and name-calling all resulted in hard feelings and no one would study for the benefit of anyone else.

To their great surprise, ALL FAILED and the professor told them that socialism would also ultimately fail because when the reward is great, the effort to succeed is great, but when government takes all the reward away, no one will try or want to succeed. Could not be any simpler than that.

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

This is so simple it almost laughable. What about the 3 people who already have a 98% because most of the test was written for them already. 2 with 85%. They have to answer 1 or 2 questions to get 100%. Would they not do it still. Or perhaps they would change their answers to get a lower mark because they don’t want to share. That is actually plausible in the real world when it comes to taxes. In that test – not so much.

What about the 5 people who cheated with a crib sheet.

What about pride – guess what – some people still have it. They would refuse to get a bad mark and some would gladly try and lift the average. Especially of the stupid mark actually meant something.

The professor is he really exists is an idiot. I’ll tell you what I would fail that class because I’d tell him his is a simplistic ideologue. Life is not simple. People are complex and irrational. Socialism in its simplest form would fail. But so would capitalism. The answer are more complex and believe me the raw capitalism of today has failed. We seriously need a serious blend of fiscal conservatism and social awareness

There is just still so much veneer and gloss on Capitalism, that we cannot see how rotten it is. A lot like what Garth is saying about RE. Just because everything looks good, doesn’t mean things are good.

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

What’s even sadder for Obama’s supporters, is that “Obamacare” is NOT socialized medical care, like Medicare in Canada. It is form of coercion whereby you are forced to buy PRIVATE insurance or be fined by the IRS. Already people are finding that their medical insurance costs are going through the roof under the new, so-called Affordable Care Act plan. People, it’s a scam. And it should be illegal.

====================================
Most people are quite aware of what it is not. And it is that not because of Obama, it is that way because that’s what the lobbyists want. It is a POS system built to try an fix a completely busted system that entrenched interests (ie insurance Cos) did not want fixed

#109 :):(Ying Yang on 11.08.13 at 11:00 am

#50 Smoking Man on 11.08.13 at 12:17 am
Garth just saw F talking about the ford’s, first instinct wasa a smoky act. But it was sincere.
F is not bad guy, just a conformist, I think I like him.
You know him.. Not asking you to comment. But think I grew a tone of respect for him tonight.
He’s human.
Thanks for letting me play here. Sober during the week and the hyper typing is helping huge.

Can’t wait till tomorrow, it’s Friday and I get a pass.

Smoking Man its time for the Casino again. My girlfreind wants to go tonight. I will be at Niagara Fallsview Hotel and Casino. She convinced me to get a room. We are going to Golden Lotus then up to have drinks at R5 club.
Will be there around 9:00PM tonight. I will be the sad guy drinking if she spends all of my money. If I win I will be the guy buying drinks. We can talk investment strategies if we meet up.

#110 Smoking Man on 11.08.13 at 11:11 am

Ying Yang.

Are you insane, Falls view… Those machines have the lowest payout algos in the world.

Seneca has the highest, your throw away loot lasts longer.

I will be the drunk barely standing at the centre bar tonight, one week of being sober, got some catching up to do. High probability of carpet burns to the head finding my room tonight.

#111 Inglorious Investor on 11.08.13 at 11:12 am

#109 JimmyAAA on 11.08.13 at 10:56 am

That’s right… it’s always somebody else’s fault. Spoken like a true socialist.

#112 Mixed Bag on 11.08.13 at 11:13 am

#10 Smoking Man on 11.07.13 at 9:51 pm

One Man .vs the World. And he’s still standing. How?

——————————

He’s like a Timex, takes a licking, keeps on ticking.

#113 Poorgeoisie on 11.08.13 at 11:17 am

Inglorious # 61,
Interestingly enough a similar social experiment was done at a Nevada University back in the 80s. The professor announced a contest wherein the school would forgive tuition costs to the top one third of the class. Each student would have an equal opportunity and if they worked hard enough they would get quite a nice reward. But then came the curveball each student pulled lots and a lucky one third of the class got essentially golden tickets as these students would only be required to one tenth the assignments as the others. A 20 page essay for everyone else was a 2 page for them. Additionally, the students in the lucky third would be marking their own assignments. Not surprisingly students in the unlucky two thirds started failing while the lucky third was A+’s all around. The unlucky ones complained that it wasn’t fair but the professor noted that everybody had an equal chance to be in the lucky group and even if they weren’t they could still get to the top if they worked hard enough.
Yeah I made that up but so did whoever started spreading the one you heard:
http://www.snopes.com/college/exam/socialism.asp

#114 lawboy on 11.08.13 at 11:19 am

#93

I’m sure many people know the Nobel in Economics is funded by the “Bank of Sweden” but chose to call it the Nobel prize nonetheless.

Do you work for them? Trying to make sure they get their money’s worth from their sponsorship? If not, get a life.

#115 Inglorious Investor on 11.08.13 at 11:32 am

“As I have stated many times, price inflation is not the same (or as dangerous) as asset deflation. Do not confuse the two. — Garth”

What really scares the banks and govs is DEBT deflation.

People with stagnant incomes, few assets, and big debts care a lot about price inflation/deflation.

People with assets and little debt care about asset inflation/deflation.

We have the worst possible potential: asset deflation with high debt. We don’t need a remedy. What we need is a whole new monetary system. And it looks like we may be on that path. Old Yellen, Draghster et al are trying push back the day of reckoning by slowly draining the people for the banks without hitting some monetary, fiscal, social-econmic or political tipping point. So far so good (for them).

#116 jj on 11.08.13 at 11:41 am

#106 Smoking Man on 11.08.13 at 10:52 am

My take on MSM is If I read it I look for the opposite POV and read many sources on the same subject. That’s if I give a crap about it to begin with. I do not get the great majority of my news from MSM and you ole man need me who is much younger than you to tell you that?

As for bullies I, and I am sure you do as well, take em on when they challenge.

As for your take that it was a heartless attack on Fords mom and sister, my take is they both voluntarily invited the wolves into their pen. They took their chances where they should know better, especially since they are no strangers to media attention, so please.

As for the whole Ford affair, I wonder after viewing the second video if we caught the real Heisenberg. Lame jokes aside, the facts, as admitted by Ford himself, remain.

Funny thing is for me, its not the fact that he smoked crack, although I admit should be enough to bow out with Grace please, but the fact that he tried to mislead, dodge, and dare I say outright lie about it for several months where he could have addressed it up front right away.

And you know what? Had he done that, the issue might pop up here and there but I would say he would still have garnered widespread support simply because he did not Mislead or lie about it. What the hell is so hard to get about that? What the hell is wrong with you guys? Martha if you did it then just fess up, THAT is what people forgive, yea they won’t forget but they do forgive! Now you lie to me? Forgive this, (open bird).

Now that we have this new vid out with the violent lip service tirade now what?

And exactly what is that video all about? There is never just one cockroach. I am a trader, yes a day trader and swing trader and if your half the investor you tout yourself to be you know very well that cockroach saying.

FS man, Ford; DO an open apology to all involved, secondly resign already with any shred of dignity remaining and let this whole thing cool out.

JJ

#117 Macrath on 11.08.13 at 11:51 am

#105 Network Admin

Cool, I`m guessing they are not for sale at Walmart but every Walmart customer should have one.

http://www.engadget.com/2010/07/26/walmart-to-add-rfid-tags-to-individual-items-freak-out-privacy/

#118 Scibidubadebumbado on 11.08.13 at 12:13 pm

#51 jj on 11.08.13 at 12:22 am
“Ford LIED, yes LIED repeatedly about the fact he did smoke crack. That alone destroys all credibility ”

Hey jj You are really a hard ass!
Did you ever screw around on your wife?
What are the top 3 worst things you have ever done?
If you don’t tell me you are LYING aren’t you?

What consenting adults do in their off hours is their business. You peeping toms have no business delving into the private lives of anyone Just because they are elected.

We all have problems in our lives. We all have things to hide. Things we are ashamed of. Things we regret we said.

Our society is slowly waking up to the realization that celebrities are real people. This is evidenced in the fact that Rob Fords popularity is rising amid this concocted scandal.

Side note: Did you notice how the Canadian Media, CBC, CTV and Toronto Star have said nothing about Rob Fords Increase in Popularity? CNN reported it! Obviously the daggers are out for him. This is very personal.

#119 Mister Obvious on 11.08.13 at 12:17 pm

#99 Stuck in Vancouver

I think the most highly overused drug in Vancouver is caffeine. There’s a Starbuck’s pusher on every second corner here.

The next most used drug is prescription Ativan to help us all get to sleep after six lattes.

#120 avoiceinthe wilderness on 11.08.13 at 12:32 pm

I do this….I have developed what I call ‘ the F – You Resume’. No matter what happens you must be prepared for all contingencies. I own a house in Vanc..I don’t care what it’s worth…..it’s only a small part of my overall portfolio. I have enough cash to last another recesssion of five years or longer….I don’t care about opportunity cost because its only a small part of my overall portfolio. I own lots of stocks but I don’t care what they do from day to day because I take no income from the dividends…I DRIP instead and add more stock if the market is down …called dollar cost averaging….I don’t care about the daily struggle because it’s not the only pillar to my portfolio.

I don’t care if I lose my job…I have cash…I don’t care if the real estate market goes down I have a free place to live….I don’t care about the stock market crashing…thats actually good for my long term goals

Its called the F-You Resume because it doesn’t matter what happens…it’s designed to insulate you from every conundrum that can possibly happen. Personal smarts and good risk management….

#121 jj on 11.08.13 at 12:36 pm

#120 Scibidubadebumbado on 11.08.13 at 12:13 pm

When my tax dollars pays for it then yea I do think it is my business.

Elected officials, according to proper definition, work for the private sector that is why they are called “Public Servants”.

So in other words, Ford, Harper, and any senator, cop, fireman, hospital care etc actually works for me you and everyone else in the private sector which is paid from my taxes.

That means I / we private sector Pay them like they are our employees.

Therefore yes I expect a level of conduct, professionalism, appropriate behavior et al out of an employee that works for me.

Is that concept lost on you? Or in your world is it the other way around?

I am hardly a hardass, just wait till I get old…

JJ

#122 jj on 11.08.13 at 12:44 pm

#120 Scibidubadebumbado on 11.08.13 at 12:13 pm

One other thing, in your world elected officials are celebrities.

Not in mine they aren’t. Don’t confuse Mayors and movie stars, that’s another issue going on these days and you spoke loud and clear of it.

JJ

#123 Andrew Woburn on 11.08.13 at 1:02 pm

#98 Herb on 11.08.13 at 10:27 am
#68 Andrew Woburn,

“shame” is only for girly men/equivalents, obvious failures, and the civilized. Real, Smoking Men and successful politicians don’t have it.

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

You are right, Herb. It is obvious when you think about it. You can’t have shame in a world without honour.

#124 Penny Henny on 11.08.13 at 1:04 pm

Hey jj
Funny thing is for me, its not the fact that he smoked crack, although I admit should be enough to bow out with Grace please, but the fact that he tried to mislead, dodge, and dare I say outright lie about it for several months where he could have addressed it up front right away.
—————————————————–
my thoughts, and the thoughts of many.
His nine lives are up.

#125 Beach Girl on 11.08.13 at 1:08 pm

DELETED

#126 HDJ on 11.08.13 at 1:13 pm

#90 CrowdedElevatorfartz

Yes, David Suzuki should provide a link to the paper that was the source of his information. Is your real name Ezra Levant?

#127 Smoking Man on 11.08.13 at 1:16 pm

For those of you wondering where old man is at.

Just emailed me a pic, he’s down in Mexico with hottie, not sure when he’s coming back. Or if he’s ever coming back. The

Love that guy…..

Herb some lessons for you here.

#128 Son of Ponzi on 11.08.13 at 1:25 pm

Google, Twitter and Bitcoin going through the roof.
Cleaned out my attic.
Found some Bre-x shares.

#129 Steven on 11.08.13 at 1:25 pm

Some deluded hipster couple bought it for $600,000. Now she has five hundred thousand in a 2% GIC and won’t stop talking about buying again. Obsessed, truly. She will not listen.

Financial and mental illness indeed! Excessive greed and continuity bias are classic symptoms. There is a time to sell over priced assets and just wait and bide ones time so that one can buy underpriced assets with good fundementals.

#130 TorontoBull on 11.08.13 at 1:35 pm

ironically the Rob Ford scandal may save Toronto Star :)
how would you like that SM?

#131 ZED on 11.08.13 at 1:35 pm

Garth, just last night who spoke of the good guys who bought REITS the last couple of months at a low price and then BANG, big loss today since jobs appeared in Canada and the U.S. so the yield on bonds in way up.

So difficult to forecast the future!

I have both REITS and insurance companies in my portfolio, they balance each other very well. I fully get your message, DIVERSIFICATION is what is needed in a balanced portfolio for good growth.

Your REITs pay you the same cash distribution today as they did yesterday. Don’t sweat daily price fluctuations. — Garth

#132 bigrider on 11.08.13 at 1:42 pm

That condom isn’t going to protect anyone in the GTA from the gottahumpahoma virus.

No hard wood love without the glove

#133 broadway skytrain on 11.08.13 at 1:46 pm

124 HDJ on 11.08.13 at 1:13 pm
#90 CrowdedElevatorfartz

Yes, David Suzuki should provide a link to the paper that was the source of his information. Is your real name Ezra Levant?
—————————–

suzuki is an ignorant alarmist fool – fruit fly genetics do not nuclear plant eng/physics make.
his job is to alarm because it PAYS him very well.

news flash – they have just started REMOVING the fuel from pool4, ahead of schedule, dr fruitfly could have, at least, done a quick google to see the current status before spouting his GARBAGE, but it appears he was too lazy to do so.

#134 Ralph Cramdown on 11.08.13 at 1:51 pm

#116 Inglorious Investor — “We have the worst possible potential: asset deflation with high debt. We don’t need a remedy. What we need is a whole new monetary system.”

Knock yourself out. You can choose to be old school with gold (down 2% in 24 hours) as your base, or new school with bitcoin (up 10% in 24 hours) as your base. No need to wait for the rest of us to catch up. Enjoy the roller coaster ride.

Hey, how are Rob Ford and Peter Munk similar? They’ve both worn out their welcome, but neither is going anywhere… yet.

#135 TheCatFoodLady on 11.08.13 at 1:52 pm

I’ve been reading the comments here the last few days & just shaking my head. “Capitalism sucks. Socialism sucks. It’s all the fault of the big banks, central banks, my bitch-ass mother in law. The system has to change – I’m getting screwed. I’m only a small person with few dollars – no fair. Not worth even TRYING to better my lots.”

Sounds like a bunch of excuses to me. I have made plenty of monetary mistakes in my life & will no doubt make more. I don’t recall anyone holding a gun to my head as I signed on to a poorly thought through loan or impulsively bought shiny, blingy crap.

Don’t have a lot of money to start with? Start anyway. Give it time & it will grow. As Garth & other smart planners say – diversify. I’ll never be able to afford a house – that’s not envy, just reality. If I could afford one AND what it takes to maintain it properly considering our personal circumstances – I would. Can’t. I could whine over not being able to own a piece of the housing pie but why? Plenty of other tasty pies out there on which to nibble.

Some posters here intimidate me. They toss around terms, concepts & acronyms that have me rushing to Investopedia & other places to try & understand. But I learn.

My personal monetary meme is easy. I’m low income – REALLY low income. So… eschew debt. If I can only purchase what I need – I’m better off than 75%+ of people in the world. If sometimes I have a bit left over (after needs & saving/investing), for wants – bonus!

You don’t need to be a genius to partake of the economic buffet. There’s a ton of good advice out there from solid, reliable sources & nothing replaces common sense. Anything sounding too good to be true – is. Financial products are called PRODUCTS for a reason – someone is selling them & I don’t know anyone selling anything without expecting a cut. Minimize what others take out of YOUR pocket. Question everything – it’s your money.

Have I made investing mistakes? Oh, have I ever. Thankfully, I’ve figured most of those out & changed what I do. Now to figure out the rest… Is it worrisome to learn to manage your money. Yup – but so was skiing, riding bikes, etc. when I first tried. I’m not dead yet. No matter if you’re starting with a small amount or a large windfall, one can learn. Nothing motivates one more than using one’s own money or that of a loved one.

Maybe the market is crooked. Maybe QE, bailouts, etc. skew the ‘natural’ markets. Maybe, maybe, maybe. Minimizing debt, building an asset base that’s diverse & remaining flexible, open to changing conditions in both the markets & one’s personal circumstances never hurts.

Funny, I’m way lower income than all of my employers & most of my family/friends. I feel richer because I’ve no debt keeping me up at night. Sure, they have nicer hoes, vehicles & toys – WAY nicer. Few are paid for & if the rug is pulled out from under them, they’re screwed. They’re stuck with unrepayable debt on depreciating assets, no knowledge of how to live really small for a time & no appreciation for the good things in life all around that are free.

It crosses all age lines – it isn’t just the selfish boomers, the feckless kids or needy wrinklies – it seems to be part of every cohort. Nothing says we have to fit the parameters of whatever demographic we find ourselves in.

I’d rather be visibly poor, have a decent little portfolio & OPTIONS that a ‘flash now, crash later’ lifestyle.

#136 NorthOf49 on 11.08.13 at 1:53 pm

#61 Inglorious Investor on 11.08.13 at 1:07 am

Why Socialism Fails (From a recent post by Martin Armstrong)

A class at a community college in the US insisted that Obama’s socialism worked and that no one would be poor and no one would be rich, a great equalizer.
————————————————————

Bunk.

http://www.snopes.com/college/exam/socialism.asp

#137 coastal on 11.08.13 at 2:05 pm

Bond market getting whupped today in spades. Mortgage rates heading up, hope the bulls got their depends on tight.

#138 Tony on 11.08.13 at 2:09 pm

Re: #136 Ralph Cramdown on 11.08.13 at 1:51 pm

Good to see Peter Munk gone. I’ve cursed his heathen soul since the day he took too long to buyout Arizona Star in which a had a large holding at the time.

#139 TheCatFoodLady on 11.08.13 at 2:54 pm

On the theme of ‘Banks Are Not Your Friend’. The Main Squeeze recently opened a TFSA at our bank. Diddly in it yet – we’re just starting & our disposable income is minute. I was looking at the section of our bank’s web site that talks about TFSAs & this gem caught my eye:

***What types of investments can I put in a TFSA?

Eligible investments that you can place in your TFSA portfolio include cash deposits, GICs and mutual funds (similar to what’s available for RRSPs).***

Not a peep about equities, ETFs, bonds, eligible shares of small businesses as outlined by CRA…

Speaking of ETFs – allegedly my bank sells some – boy would I LOVE to find, on their web site, a list of what’s available. Index mutual are so-so. I’d prefer a long, hard look at ETFs. Anybody know where CIBC hides that info?

#140 spaceman on 11.08.13 at 3:04 pm

Why isn’t anybody claiming that another crash is coming?

Its coming… we had a brief fart in 2012 that released some pressure, but in time, 2 years or so, you can bet a big correction will happen. Daniel Park seems to be bang on with her site JugglingDynamite.

Canada, may lead the decline this time, with RE valuations too high… its always a gamble, but I am suggestting to people, now is a great time to Balance your portfolio… The leaders this cycle seem to be the Nasdaq, TSX, Dow, and have a look at Berkshire. There will be no spike in interest rates, not for years to come, so don’t bet on that, we are stuck in an up down cycle for a while. Possibly a decade or more, hey, it took 30 years to get here… 15 to get back to “Normal” interest rates will not surprise me.

#141 Canadian Watchdog on 11.08.13 at 3:07 pm

Below are subdivisions rated by size and dollar contribution to GTA’s average price.

Top 10 GTA Average Price Contributors

1. Vellore Village – Vaughan
2. Churchill Meadows – Mississauga
3. Bay Street Corridor – Toronto C01
4. Erin Mills – Mississauga
5. Jefferson – Richmond Hill
6. South Riverdale – Toronto E01
7. West Oak Trails – Oakville
8. Central Erin Mills – Mississauga
9. Lisgar – Mississauga
10. Eastlake – Oakville

Bottom 10 GTA Average Price Contributors

1. Waterfront Communities – Toronto C01
2. Patterson – Vaughan
3. Sandringham-Wellington – Brampton
4. Fletcher’s Meadow – Brampton
5. Niagara – Toronto C01
6. Unionville – Markham
7. Hurontario – Mississauga
8. Maple – Vaughan
9. City Centre – Mississauga
10. Old Oakville – Oakville

#142 NoName on 11.08.13 at 3:07 pm

bitcoin can be used now days to buy RE in China. Exchange rate does not favor buyer. 30-40% cut in developer favour (depends on exchange rate for that day).

http://goo.gl/zvKFym

#143 not 1st on 11.08.13 at 3:09 pm

Ford is master politician. He will now take a couple month leave absence due to medical (addiction) problems, let council fight among themselves for that time, then come back clean and sober and much healthier and play the sympathy/re-emergence card. He may even do a stint on Biggest Loser for a few hundred G.

His re-election is cemented for sure now. Well played Mr. Ford.

#144 not 1st on 11.08.13 at 3:12 pm

Eligible investments that you can place in your TFSA portfolio include cash deposits, GICs and mutual funds (similar to what’s available for RRSPs).***
___

Because you didn’t open your TFSA in the right area. You probably opened it under your other regular accounts which makes it a savings vehicle.

Tell your bank your want it opened under a self directed investment account and then I guarantee they will give you a call and help you fill it with real financial investments.

#145 not 1st on 11.08.13 at 3:14 pm

BMO only bank offering true ETFs. Any other investment offered by a bank is a mutual fund or a decedent of a mutual fund.

But you don’t need a bank to buy one, any investment account will access all the ETFs with the most popular ones under the iShares name.

#146 spaceman on 11.08.13 at 3:17 pm

Cat food lady…

ETF’s are purchased like stocks thru a direct investing account. Make a date with [email protected] and talk with her. Many banks now are offering Direct Investing accounts inside of TFSA’s, you can purchase anything that is available on markets and pink sheets, some even let you dabble in options… REITS, stocks, bonds, bond etfs, Index ETF’s, you name it. Most banks amalgamated their Stock Brokers into the Bank as one, to offer this service. Its like a discount brokerage service. RBC had Dominion Trust, which deals with this.

With a TFSA, you pay no tax on money made, so it makes sense to put your high earning stocks into there. concievably, you should be doing the best with your shares of Twitter, and Google, so why pay tax on your huge profits? (unless like me you completly fail and lose money most of the time…)

#147 Mr. Frugal on 11.08.13 at 3:18 pm

This lady is 69, widowed and sitting on $500K. At this point she should move in with her kids and let them look after her! After all, she raised them and if they put up a fuss, she can always write them out of the will!

#148 Network Admin on 11.08.13 at 3:23 pm

#141 TheCatFoodLady
I’d prefer a long, hard look at ETFs. Anybody know where CIBC hides that info?

Don’t think CIBC issues ETFs. I think the only big bank in Canada that issues ETFs is BMO
http://www.tmxmoney.com/en/sector_profiles/exchange_traded_funds/funds/funds.html

However, you can certainly open an investor account in CIBC that can hold ETFs. https://www.onlinebrokerage.cibc.com/Customer/accountOpen/openAnAcctExt.cibc?execution=e1s1

#149 Grooby on 11.08.13 at 3:23 pm

I was wondering if we were not getting enough incorrect ‘Fox News/Sun TV’ perspective on things in this blog (hah!).

Thankfully we have Inglorious Investor to repeat ad nauseum conservative talking points with no basis in fact.
Think for yourself, and get educated from a wide variety of sources, not just those that confirm to your existing notions.
It’s ok to be skeptical, but cynicism is the crutch of the ignorant and easily manipulated, where facts are malleable.

#150 Ralph Cramdown on 11.08.13 at 3:26 pm

#141 TheCatFoodLady — “Speaking of ETFs – allegedly my bank sells some – boy would I LOVE to find, on their web site, a list of what’s available. Index mutual are so-so. I’d prefer a long, hard look at ETFs. Anybody know where CIBC hides that info?”

A TFSA is a type of account. If you walk into a bank, you get a TFSA that can hold GICs, cash and a selection of the bank’s own crappy mutual funds — that’s all the employees in the branch are licensed to sell, er, advise you on.

Every bank also has two brokerage subsidiaries; a full-service one for rich people who need their hands held and a discount one for poor folk, cheap folk and DIY folk.

Rich folk: http://www.cibcwg.com/
Po’ folk: https://www.investorsedge.cibc.com/

Unfortunately, CIBC Investor’s Edge charges $29 per trade unless you’ve $100k in assets with the bank or $50k with the brokerage, so it ought to be called House Edge.

There’s cheaper options for small accounts, generally independent from the large banks.
http://www.theglobeandmail.com/globe-investor/online-broker-rankings/
http://www.moneysmartsblog.com/canadian-online-discount-stock-brokerage-comparison/
http://www.dripprimer.ca/canadiandiscountbrokers

#151 :):( Ying Yang on 11.08.13 at 3:27 pm

#111 Smoking Man on 11.08.13 at 11:11 am
Ying Yang.
Are you insane, Falls view… Those machines have the lowest payout algos in the world.
Seneca has the highest, your throw away loot lasts longer.
I will be the drunk barely standing at the centre bar tonight, one week of being sober, got some catching up to do. High probability of carpet burns to the head finding my room tonight.

Sorry Smoking Man its the girlfriend she wants to go as some of her friends will be there. Pussy rules! We will see if she gets bored perhaps I will go to the bar and look for you! Need a indicator of who you are? I would guess the drunk guy that is siting at the bar smoking, I’m the tall Asian guy that also smokes. I will not be drunk by then but I am going to take a taxi over if I go.
Will probably be drunk when I leave! You are right the US Casino has been a bit better for us too but they have all these Asian hosts and restaurants in Niagara, again my girlfriend originally from Hong Kong and very much an Asian princess! lmao

#152 Daisy Mae on 11.08.13 at 3:34 pm

#56 KommyKim: “Rob Ford is a buffoon. He has not been framed, tricked, or forced into smoking crack cocaine. He does not know how to handle the media or how to resist his basest urges. He does not know how to securely delete files on a memory card. He is no victim. He is a loser. People who defend him are losers.”

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

I agree wholeheartedly. That damaging video is going to come back to haunt.

#153 Beach Girl on 11.08.13 at 3:36 pm

Didn’t think I was offensive. But, can live with this.

#154 jess on 11.08.13 at 3:38 pm

impacted 17 states

A glitch in the electronic transfer benefit card (food stamp debit cards) made them from $50 to limitless . Food frenzy ensued. Shelves were emptied. But, the purchases were still tracked on the cards.

http://www.youtube.com/watch?v=pZfL8azUD8Y
http://www.ksla.com/story/23679489/walmart-shelves-in-springhill-mansfield-cleared-in-ebt-glitch. ===

========
By MICHELLE MILLHOLLON
November 07, 2013
The Jindal administration vowed late Wednesday to strip food stamp benefits from recipients who misled retailers about their spending limits during a technical malfunction.
http://theadvocate.com/home/7514395-125/jindal-moves-to-strip-food

•Food Stamp Fraud: Beneficiaries Illegally Sell EBT Cards On Craigslist, Social Media Sites
custom software to scour social media daily — Craigslist, Facebook, Twitter — in search of illegal ads like the ones

#155 Daisy Mae on 11.08.13 at 3:51 pm

#126 Henny Penny: “….he tried to mislead, dodge, and dare I say outright lie about it for several months where he could have addressed it up front right away.”

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

Liars and cheats lose all trust, credibility…generally, forever. “Leopards don’t change their spots”.

#156 jess on 11.08.13 at 4:09 pm

Johnson & Johnson to Pay More Than $2.2 Billion to Resolve Criminal and Civil Investigations
Allegations Include Off-label Marketing and Kickbacks to Doctors and Pharmacists

http://www.justice.gov/opa/pr/2013/November/13-ag-1170.html

#157 JimmyAAA on 11.08.13 at 4:31 pm

#112 Inglorious Investor on 11.08.13 at 11:12 am
#109 JimmyAAA on 11.08.13 at 10:56 am

That’s right… it’s always somebody else’s fault. Spoken like a true socialist.

=====================================
You got that right. Mostly its the fault of people like you who vote for buffoons like Rob Ford rather than pragmatists that actually get things done. Rob Ford has done NOTHING. Get it – NOTHING. Yet you will continue to say he must be reelected to finish the job he started. What has he started – cutting a tax or two, blowing a shitload on a less essential subway line. He has not fixed anything. He has created a divisive council. All he has done is made a mockery of your city.

#158 Mister Obvious on 11.08.13 at 4:40 pm

#149 Mr. Frugal

“This lady is 69, widowed and sitting on $500K. At this point she should move in with her kids and let them look after her!”
—————————

Perhaps a good idea in theory, but really, who the hell wants to live with their kids?

#159 Holy Crap Wheres The Tylenol on 11.08.13 at 4:42 pm

OMG could it get much worse for poor Rob Ford. All of the lefty, commie, pinko wackos are just salivating right now they can taste blood. Wow when you are down and out it isn’t nice to get kicked in the kahunas twice in the same game. Well lets see what happens next week, same bat time, same bat channel! Have you driven a Ford lately?

http://www.youtube.com/watch?v=qrqyt96C9bc

#160 JimmyAAA on 11.08.13 at 4:43 pm

#101 Inglorious Investor on 11.08.13 at 10:42 am
#96 JimmyAAA on 11.08.13 at 10:15 am

Your comment indicates how confused you are, and how poorly you grasp the fundamentals.

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

Thanks the standard non answer from people of your ilk. Any facts to back up your assertion. I love how you xnip the entire answer so people are forced to search out the original comments. No chance to view the ammo without some effort. Discredit me with a throw away comment and NOTHING else. Standard conservative/republican bullshit. Come on King Kong. Name me a conservative government who stripped out social programs / and or cut civil service to the core, cut taxes and balance the budget. The third is the key. I can name a number of Liberal/ Democrat ones. Can you? The silence id deafening.

#161 Smoking Man on 11.08.13 at 4:45 pm

#153 :):( Ying Yang on 11.08.13 at 3:27 pm

Bald, braking bad look alike Glasses, (sades) slight Pot belly, drinking white wine, and in between band sets head phones on listing to opera.

Seeing seth myers, but will be at bar by 9, keep an eye out for you.

#162 Holy Crap Wheres The Tylenol on 11.08.13 at 4:46 pm

I digress, “poor Rob Ford” Can someone please tell him to stop stepping in doggie dew! For gods sake can’t he see it right in front of him?
Holy Crap when I see doggie dew on the ground I just avoid it. Problem solved no Crap on my shoes, nothing to clean or discuss later!

#163 Smoking Man on 11.08.13 at 4:48 pm

#154 Daisy Mae on 11.08.13 at 3:34 pm
#56 KommyKim: “Rob Ford is a buffoon. He has not been framed, tricked, or forced into smoking crack cocaine. He does not know how to handle the media or how to resist his basest urges. He does not know how to securely delete files on a memory card. He is no victim. He is a loser. People who defend him are losers.”

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

I agree wholeheartedly. That damaging video is going to come back to haunt.
…………………………………..

See ladies that why some people are rich and most poor, the peasants worry about the small stuff. Crack Smoking Liar.

Me the billions .

But hey so show off your schooling…

Signed
The Loser….

PS he is getting more popular by the minute………..

#164 Charles Ponzi on 11.08.13 at 4:49 pm

“Now, nobody’s suggesting the Thirties are coming back. They’re not. Forget that.”

Yes, we’re heading for something much worse than the the Thirties.

#165 Stickler on 11.08.13 at 5:15 pm

“…People who loaded up on fixed income, including preferreds and interest-sensitive things like REITs, four months ago now look like geniuses.”
————————————
Um, geniuses, …not so much:

ZRE (REITs) 1 month performance 0.27%, 3 month 0%, 6 month – negative 15% (your 4 month is -negative too)

CPD (Preferreds) 1 month performance 0.43%, 3 month 0.37%, 6 month – negative 6.57% (your 4 month is -negative too)

#166 espressobob on 11.08.13 at 5:26 pm

Rob Ford? Craig Ferguson sums it up best.

http://www.youtube.com/watch?v=2TPSc2ZkYps

#167 Susan on 11.08.13 at 5:29 pm

Garth – What’s all this talk on the alter net about major global banks being technically insolvent and caught in a “straightjacket” of derivatives investments? I understand that derivatives are a form of off-balance sheet financing and do not require capital reserves. If global banks are over-leveraged and under capitalized, could this cause global calamity? Dramatic language aside, how much of a concern should this be for the average working Canadian and how should we protect our investment portfolios if it is true? Thank you.

#168 Stickler on 11.08.13 at 5:33 pm

@ #92 Rexx Rock on 11.08.13 at 9:55 am

We all know the goverments and the Central banks colluded to get everyone enslaved.Its part of the new world order.The masses are sheep and its goig to get worse like Garth is trying to warn us.Be prepared because the working class are going to screwed royaly.Are standard of living will become like Mexico in a few years and that is a fact.

>>> But with higher utility costs & higher taxes too ;)

#169 Herb on 11.08.13 at 5:33 pm

#129 Smoking Man,

what lessons, SM? A split personality doesn’t really mean that you and you alter ego can be in two places at the same time. Except in your imagination, of course.

(Your ignorance is really showing in #165.)

#170 Herb on 11.08.13 at 5:50 pm

#90 CrowdedElevatorfartz,

lemme see, Suzuki’s “Environmentalist alarmism without the evidence to back it up….”, or the evidence of denial prouced and paid for by the hydrocarbon industry.

Not being a scientist, I’d apply the cui bono test and ask “Who has the most to gain?” Who do you think, pardner?

#171 jess on 11.08.13 at 6:09 pm

SAC Billionaire Steven Cohen Can’t Make His Mommy’s Monkey Jump
Friday, 08 November 2013 10:28
By Greg Palast, Truthout | Op-Ed
http://truth-out.org/opinion/item/19906-steven-cohen-cant-make-his-mommys-monkey-jump

#172 Smoking Man on 11.08.13 at 6:33 pm

Herb, I respect the elderly, not going to chirp you no matter what.

But what the f you taking about

#173 Smoking Man on 11.08.13 at 7:21 pm

Ying Yang @smokingman on twitter

#174 eddy on 11.08.13 at 7:33 pm

Years ago they had bumper stickers that said “Honk if you hate Mike Harris”; that’s how the Bolshevik mind works.
Mr. Harris was democratically elected fair and square but the Bolsheviks don’t believe in democracy. I won’t defend Rob Ford’s behavior, but I’ll defend his right to be wrong, his right to rehab, forgiveness and re-election. I’ve been much more ‘offended’ and outraged and financially hurt by individual Toronto City Hall employees who were incompetent, and by City Hall ‘policy’ that was written by freaks, and City Hall Councillors passing their opinions at Committee of Adjustment meetings who are completely Unqualified to pass anything but wind

#175 TheCatFoodLady on 11.08.13 at 7:40 pm

Ralph at #152 & the others who addressed my points – thank you. I have an Investors Edge account for a small trust for which I’m trustee – THAT was an adventure filled learning curve! After some incredible idiocy by the so called ‘advisor’ I was assigned, I promptly went self directed. I kept track of what his advice would have done for the portfolio compared to what I did end up purchasing. Let’s just say there’s a considerable difference.

Because my husband, who inherited the money in trust, gets ODSP, it either had to go into trust or be ‘used up’ as per their yearly rates. They weren’t going to tell us about the trust option but quickly changed scripts when we made them aware we knew that option existed. Interestingly, there’s a limit on how much you can accumulate in trust & it’s not even close to enough to become financially independent. But between their rules, CRA rules & as much learning as I can cram in, I’m learning to nickel & dime our way to keeping as much of our money for OUR use as I can. I love it when my bank makes money – helps the investments – but I’ll let Greater Fools contribute to my profits.

The Main Squeeze opened a TFSA & was specifically TOLD those were his only options for any TFSA with the bank & yes, he opened it under retail banking. I’ll be opening one in the New Year & I will not be using that bank nor will I opt for [email protected] options.

If the trust wasn’t already fairly close to the exempt asset limit, I’d be seriously pursuing finding another investing venue as far from retail banking as possible.

Don’t get me wrong – banks have their place, (in preferreds, etc.) & can be useful in many mundane ways. But for making serious money – I see them as a lower rung on the investing ladder. At some point, you’ve got to move beyond retail banking or more of your money ends up in their coffers.

#176 Blacksheep on 11.08.13 at 7:45 pm

Herb,

Smokie gotta teleporter time machine from that chick in the sky. Its how he makes them prescient calls, buy zipping to the future (and Mexico).

#177 Smoking Man on 11.08.13 at 7:55 pm

#169 Susan on 11.08.13 at 5:29 pm

I’m only answering cause I’m 1/2 cut and it’s only 7

OTC derivatives are all hedged, hopefully with dot frank, your counter party’s have the loot the withstand a bitch slap.

We will see……..

I’m the old dude with a girly voice on trade floor, with the best connection to the universes energy.

A bit mad, but the instinct off a god.

Shooting the shit with an Arab mossad agent, wondering if he’s going to kill me tonight.

Just hedging, if I’m gone tomorrow you all know what happened.

Where is the waitress……?

#178 economictsunami on 11.08.13 at 7:57 pm

My largest concern about the global economy lies with what is being done by western central banks.

Economic and financial data is heavily influenced by CB monetary policy (stimulated or unreliable data) is being inputted into neo classical economic models which have never been tested under “like” conditions.

Are we again trapped by circumstances that cause us to recognize financial hazards but are preordained to run into them anyway; for fear of tanking a still shaky recovery?.

Roubini says central bankers have a tough choice: Kill recovery or risk bubbles.

http://blogs.marketwatch.com/thetell/2013/11/06/roubini-says-central-bankers-have-a-tough-choice-kill-recovery-or-risk-bubbles/

Bernanke: Why the 2008 crisis was a lot like the Panic of 1907

http://www.washingtonpost.com/blogs/wonkblog/wp/2013/11/08/bernanke-why-the-2008-crisis-was-a-lot-like-the-panic-of-1907/

What is being done by western CBs is highly experimental.

What is being proposed and implemented in Japan is Plan B…

#179 Son of Ponzi on 11.08.13 at 7:59 pm

#140
“bit coin can now be used to buy RE in China”
That seems to be a perfect fit. Both have no foundation and will collapse soon.

#180 TurnerNation on 11.08.13 at 8:01 pm

FordNation? More like JerrySpringerNation.

His Mommy came on TV and defended him.
What a squirrely man…

#181 TurnerNation on 11.08.13 at 8:02 pm

TLT.US crushed today. Will it finally return to double digit levels? XRE.TO slagging.
Big Beta Baboons buying Blocks instead.

#182 KommyKim on 11.08.13 at 8:26 pm

RE: #174 Smoking Man on 11.08.13 at 6:33 pm
Herb, I respect the elderly, not going to chirp you no matter what.
But what the f you taking about

Um. It’s pretty obvious.

How much money is there to be made by the “global warming alarmist scientists”
Answer: In the millions.

How much money is there to be made by the oil cartel global warming deniers?
Answer: In the trillions.

So, who has the most resources for their “message”?
I think you know the answer.

#183 grum on 11.08.13 at 8:46 pm

#137 CatFoodLady,

You rock!

That post, for beginners, plus, for those with more in the game, #122 avoiceinthe wilderness pretty much cover the spectrum of financial wisdom. Great stuff.

35 years ago I was CatFoodLady, now I’m more avoiceinthe wilderness, next month I retire at 55. Booyah!

#184 Daisy Mae on 11.08.13 at 9:27 pm

#171 Herb: (Your ignorance is really showing in #165.)

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

My sentiments exactly…. ;-)

#185 Rexx Rock on 11.08.13 at 9:37 pm

I can’t think of mayor that best represents a city than Rob Ford.A crazy,drug addicted ,obese man.Way to go Toronto.

#186 Crackservative on 11.08.13 at 9:44 pm

Holy Crap Wheres The Tylenol on 11.08.13 at 4:42 pm OMG could it get much worse for poor Rob Ford. All of the lefty, commie, pinko wackos are just salivating right now they can taste blood. Wow when you are down and out it isn’t nice to get kicked in the kahunas twice in the same game. Well lets see what happens next week, same bat time, same bat channel! Have you driven a Ford lately?

http://www.youtube.com/watch?v=qrqyt96C9bc
———————————————————-

LOL.. you right wing crack smoking wackos need to lay off the CRACK and sober up. Crackservatives …LOL what a joke.

#187 screwed on 11.08.13 at 9:55 pm

Garth, good to read your blog again. Was worried you had gone over to the dark side of the Bulls.

Now, let’s try and predict where this currency and money from too much debt nightmare is potentially headed. Massive entitlements and liabilities that are unfunded unless growth persists.

I’m not afraid of deflation, I’m more afraid of what the central bankers might do to combat deflation. A reset and debt write offs are necessary.

We also need policy changes and take away the wet dreams of multiple decades of comfy retirements for the millions sucking the public teet. The programs aren’t designed to support 20+ years of retirement payments plus the cost of health care.

Something’s gotta give. They can inflate and create money flow with helicopters or do the sensible thing and reduce the budgets. Either way, the gong show is not sustainable and it’s not prudent to saddle kids and grand kids with the foolish mistakes of the boomers.

#188 :):( Ying Yang on 11.08.13 at 10:06 pm

#175 Smoking Man on 11.08.13 at 7:21 pm
Ying Yang @smokingman on twitter
Smoking Man no Ying Yang on Twitter, the girlfriend is happy spending my cash over here in Canada, it sucks every time I want to go for a smoke I have to go out on the patio and freeze my ass off. Next time I am coming over to Seneca. Have a drink on me!

#189 Rexx Rock on 11.10.13 at 1:28 am

What I read in news is that Canadians are tighting their belts and paying of debt.Like most Canadians were pretty conservitive and live within are means.Thats what were known for.Maybe only the young irresponsable are loading up on debt.