What to worry about

LAWYER modified

Well, that was fun. Days ago markets were crashing and fools were selling. By Friday bargain-hunters were plumping stocks and draining bonds. It was enough to make a boy dizzy.

What happened, and what comes next?

In a word, markets (which were a tad frothy and fat) were attacked by fear. It may have been largely irrational, but fear’s like that. You don’t think it, you feel it. This time it came from worry everything was starting to come unraveled – Europe’s a mess, ISIS goons are winning, deflation’s coming, the US is sputtering, and Ebola.

Picture4  In fact, here’s an interesting chart for you (from Myles Zyblock, at Dynamic) which tracks the main American stock market, the S&P 500, and the number of news stories about the spread of the West African virus. Coincidence? Hardly. People are like that. They overreact to risk. Markets hate surprises. And selling begets more selling.

After a few days of this, driving share prices down almost 9% in New York and over 10% in Toronto, the panic petered out. The news got better. US corporate profits rose, consumer confidence shot up as mortgage rates and gas prices fell, central bankers stepped in and jobless claims dropped. Brave investors moved in to Hoover everything in sight. And up she went.

“Needless to say, we do not see the typical hallmarks associated with a deep and prolonged downturn,” says Zyblock in a research note. “In fact, leading data argues that the economy and earnings should continue to march higher over coming months – a development which is usually associated with positive longer-term returns for equity investors.”

In fact, when you think about it, not a lot changed last week to cause all the freaking. The American economy is doing just fine by every measure that matters – job creation, corporate profits and government finances, for example. The unemployment rate is at an eight-year low and the federal deficit has virtually plunged, thanks to less spending and more taxes.

Europe sucks, but we knew that. The central bank there is about to start a stimulus program, and has just slashed interest rates so much that some banks are charging to hold your money. ISIS is evil and scary, but will probably end up being bombed back to the 13th Century. And Ebola is pure terror – until you realize it’ll be heart disease or cancer that kills you.

The week showed how destructive emotions can be. Imagine rushing to your laptop to dump the equity ETFs in your TFSA on Wednesday, only to see them rocket higher on Friday. And being in a registered account, you couldn’t even save any losses to write them off against taxable gains. Bummer.

Human nature often betrays us. It’s amazing how much time some people spend trying to identify and avoid risk – driving, cooking, walking the dog, dressing the kids and, of course, investing. Meanwhile we pick careers haphazardly, and fall into love and marriage randomly. In short, we worry about the wrong stuff, fretting over global markets while we snorfle a maple glazed at Tim’s.

This is why having a balanced and diversified portfolio makes sense. When the TSX was nailed for a 10% loss this past week, that portfolio was down less than 1.5%. By design. ‘Balance’ means you own both growth assets (like exchange-traded funds holding the S&P) plus fixed-income stuff, like bonds – which soared in value as stocks fell. Meanwhile the diversification element gives you a steady income stream from more stable assets, like preferred shares, and ownership of stuff that’s not correlated to stocks, such as real estate investment trusts.

The goal is to grow money without swilling Imodium. The best way to do that in a world where you can’t control disease or stupidity, is to hedge your bets by owning a lot of assets, in a rational mix (40% safe stuff, 60% growth, works well) that ends up being an antidote for fear. In the past seven days there was all the proof ever needed that this approach works.

Now, what next?

Hard to imagine the volatility is over. The Fed still has to end its stimulus spending this month, or not. Either way, that will get people excited. So will more Ebola in the US, which looks predictable. Earnings season continues, and that’s going well. Lower gas and rates should goose consumer spending going into the key holiday retail season. Overall, the American recovery continues and Europe has only one direction in which to travel. No wonder some people were buying. They don’t believe the wheels are coming off. Me neither.

So, you can flop around with emotional wrecks flipping stocks in their Qtrade accounts. Or, you can build that portfolio and concentrate on your love life. Tough choice.

173 comments ↓

#1 the Jaguar on 10.17.14 at 6:14 pm

something bad is happening off the BC coast. A Russian tanker is drifting with tonnes of fuel on board that they fear could hit the coast. This is very bad.
The bad news just keeps coming this week….

Move inland and find a valley girl. — Garth

#2 Derek R on 10.17.14 at 6:15 pm

So our motto is “Steady as she goes”.

#3 Smartalox on 10.17.14 at 6:18 pm

How about that Russian freighter loade with 450 tons of bunker fuel and diesel, drifitng without power in 50knot winds and 7 meter seas, only 15 km of the coast of Haida Gwaii, and predicted to come ashore by 9pm PDT?

Can we worry about that?

#4 DV01 on 10.17.14 at 6:18 pm

LoL #Clueless

#5 the Jaguar on 10.17.14 at 6:25 pm

#3 Smartalox

An ecological oil disaster. Just what the oil patch needs. And for those who like to engage in schadenfreude, try to remember how much of your own local economy is tied to the issue.

#6 bdy sktrn on 10.17.14 at 6:25 pm

A Russian tanker – no!

it’s a container ship – alarmist alert

#7 Van Isle Renter on 10.17.14 at 6:35 pm

I kind of doubt that all of the drop is over and that it’s all clear to start buying again. Dead cat bounce? I think so

#8 Marian on 10.17.14 at 6:36 pm

central bankers stepped…
WHAT DOES THAT MEAN…MORE OF QE ( PRINTING MONEY ) ???????

#9 Roial1 on 10.17.14 at 6:43 pm

Oh s*ht. And here I am. Holidaying on the East coast.
I have to hope that they can clean it up by Christmas.
I plan to be back on V I just after the. New year.
I was in Lunenburg just last week and I can say that house prices are crazy low. Now I understand why Garth bought there.
All though the maritimes you can score a good home for peanuts.(by Van. Standards)
The fall colours down here are not as bright red as I remembered (from 50 years ago) but they are still brilliant.
Oh ya, my balanced portfolio is doing just fine.
Thank you very much. Garth.

#10 Marian on 10.17.14 at 6:45 pm

ISN’T Haida Gwaii Charlotte Islands ??? WTF is going on in this strange country ??????

#11 van guy on 10.17.14 at 6:45 pm

Markets bounced back from extreme oversold conditions. The FED made several statements to save the market from bleeding more. S&P is still below all of its major moving averages. The Russell is headed for a bear market. Today’s action suggest that the Russell was clearly oversold and shorts new that level was a cover spot. Many charts are a mess, moving averages criss crossing is bearish. Rallies being sold into (like today) is bearish. No crash, but more pain coming. Energy needs to rebound or else it may weigh on markets. Earnings will be key, Google and Netflix missed, this are big names that matter. Monday is Apple, that will be a market mover.

#12 David on 10.17.14 at 6:47 pm

This was a great week to have cash destined for the TSX. Maybe we’ll get lucky and see a similar sale on the S&P 500 around the midterms?

#13 Retired Boomer - WI on 10.17.14 at 6:48 pm

Garth,

I agree with you, slept well. Then there is Harry Dent, or Hairy Dent (what other kind is there?) predicting that stocks will visit 6,000.

Sure, sometime they might, by why is Harry, so Harried? Does he have any credibility?

By the way, move the picture tonight, poor guy.

#14 Nemesis on 10.17.14 at 6:48 pm

#”ItAlwaysStartsWithTheLittleThings”…

http://youtu.be/5ebv3i_9Ltc

#BonusZen… #Lockheed’sQuantumGizmo… #JustForTheScienceClub:

http://youtu.be/m3TOWanwuO8

#TrustMe… #ItReallyWorks:

http://youtu.be/DjK9GJMBpt0

#15 Alan Rockwell on 10.17.14 at 6:53 pm

The Vancouver Canucks just announced that their sellout streak ended at 474 games (i.e., 12 years!). If this isn’t a ominous sign for the Vancouver real estate market, I don’t know what is.

#16 Ray Skunk on 10.17.14 at 6:53 pm

I thought this was a good infographic worth sharing for those just starting out:

http://business.financialpost.com/2014/10/16/bond-basics-from-creation-to-maturity/?__lsa=82b6-16d9

Hopefully they’ll produce more of these.

#17 Oliver on 10.17.14 at 6:58 pm

# Waiting for all of the bossy divas, government trolls and corrupt public sector workers for this one:

The Ontario deficit is increasing every day, jobs are not accomodating to population growth (most of which are from immigration and fooling Indian doctors to drive taxis in Toronto) and youth unemployment is hovering at 30% in Ontario if you take into account those who are NEETs.

The housing market will see a correction when the 2015 economic cycle comes around. The coming months will be interesting times. Those who are well prepared and invested wisely will weather the storm, and those who took that 600,000$ mortgage for a shoebox will soon find out the hard way that one must live within their means.

#18 mitzerboy on 10.17.14 at 6:59 pm

luv is the drug I need + a beer or two

#19 smartalox on 10.17.14 at 7:03 pm

@bdy Skytrain,

Pictures of the ship in the globe show it’s a bulk carrier, not a container ship. Bulk carriers carry oil in tanks between their outer skins and inner holds. They’re not dedicated tankers (where all a tanker holds is petroleum) and have less stringent safety requirements because of their smaller petroleum carrying capacity.

#20 Don on 10.17.14 at 7:07 pm

Keep in mind there is a very simple way of keeping it off the rocks. We do this on smal boats as well. You drop your anchor deep in the open water….as you get closer to land
it will grip and keep you offshore…container ships have 2 huge anchors to drop

#21 Basil Fawlty on 10.17.14 at 7:09 pm

‘In a word, markets (which were a tad frothy and fat)”

$10T in digital money printing by central banks, over the last 8 years, could create a tad of frothiness!
Stocks, bonds and real estate are in a bubble, based on money creation well above and beyond economic growth and the lowest interest rates in about 300yrs.

In addition, how can anyone take US job growth statistics seriously, when the labour participation rate is the lowest in 36 years?

#22 Tony on 10.17.14 at 7:11 pm

I agree nothing has changed profits are still falling but now at an accelerated pace. The FED and the bankers will still be buying calls to keep the DOW above 16,000 this month. Nothing usually falls in a straight line. Looks like the big crash has been postponed until January 2015.

#23 crowdedelevatorfartz on 10.17.14 at 7:14 pm

What timing.
The same week Harper comes out in favour of the BC Peace River dam and the LNG pipeline…..we have a “rooski” ship adrift in the treacherous seas around the Queen Charlotte islands.
Gotta love natures way of telling humanity,
“I will crush you like a bug.”

#24 sideline sitter on 10.17.14 at 7:19 pm

Did I miss picking up some bargains? I was sunning my buns in the Caribbean this week.

Damn.

#25 Has anyone read..... on 10.17.14 at 7:19 pm

This?

http://www.dailymail.co.uk/news/article-2794974/it-s-coming-meteorologists-warn-polar-vortex-strike-u-s-winter.html

#26 DV01 on 10.17.14 at 7:21 pm

Per @FactSet, 16% of SPX has reported. 3Q EPS tracking 5.1% vs 9.4% on 6/30/14; sales 3.6% vs 3.7%. Sales inline, margins not

#27 Joseph R. on 10.17.14 at 7:22 pm

#5 the Jaguar

Actually, it will reinforce the need to build the Keystone XL pipeline; just like the tragedy at Lac-Megantic put the issue of transporting Oil by Rails on the spotlight.

It’s my understanding that if there is an oil spill, by the London Protocol on Marine Pollution, Putin will have to foot the bill.

#28 Ozy - sell and spend it on 10.17.14 at 7:24 pm

Sell and take profits off the table

Owning stocks does not necessarily bring happiness

Spending and enjoying the happiness you’ve brought around you – It Does!!!!

Print and post!!!

In the last years, I’ve simplified my financial life, sold stocks and now will sell bonds at peak. Pay off all debt and enjoy pressure free life. And part time work. Very fulfilling and not a lot if tax grab

#29 Cici on 10.17.14 at 7:33 pm

#1 and #3

What’s very interesting here is (despite the obviously worrying situation) is that that “container” freighter was reported to have originally been on course towards Russia FROM Washington State. Apparently transporting tons of fuel (hydrocarbons), mining materials and other related chemicals…

Did I miss something? Didn’t the US recently impose major sanctions against Russia? Maybe they just holding off on US beets, but I could have sworn energy-related materials was part of that?

#30 Son of Ponzi on 10.17.14 at 7:38 pm

#27
Putin will have to foot the bill.
—————–
Like your sense of humor.

#31 the Jaguar on 10.17.14 at 7:41 pm

The Keystone has been marketed as a supply of “safe oil from a friendly neighbor”, despite the real goal of piping to Houston to be shipped out of North America. The USA doesn’t need our oil, doesn’t know where Haida Gwaii is located, and frankly can barely remember Stephen Harpers name. Any crisis that doesn’t get their attention as being ‘in the strategic interests of the United States of America’ isn’t on their radar. But the hearts and minds of British Columbian’s and First Nation’s groups will be taking the damage in as they well should. BC is the most beautiful province in the country, largely unspoiled because of its topography. This is bad publicity for the transport of oil and gas anywhere. The opponents of Keystone will be all over any disaster like white on rice.

#32 David McDonald on 10.17.14 at 7:46 pm

I sold at the end of August and bought everything back from Wednesday to Friday morning this week. I know that is not the advice you are giving. I know I should have a more balanced portfolio and just stay invested. Nevertheless your common sense view that the US economy is getting stronger and no repeat of 2008 was likely gave me the courage to buy when most people were selling. It has been a good week. Thanks Garth.

#33 crowdedelevatorfartz on 10.17.14 at 7:53 pm

@#15 Alan R.
“The Vancouver Canucks just announced that their sellout streak ended at 474 games (i.e., 12 years!). If this isn’t a ominous sign for the Vancouver real estate market, I don’t know what is….”
+++++++++++++++++++++++++++++++++++
Nah, it’s just that the idiots that bought Seasons Tickets, year after losing years have finally wised up.
That, and the price of a “nosebleed section” Canucks seat, plus parking , plus food, plus booze is well over $150. Times 2 for a date…….fuggeddaboutit.
Go to a sports bar and spend the 300 bucks while watching the Canuckleheads lose.
You might get a bang for your buck.

#34 crowdedelevatorfartz on 10.17.14 at 8:00 pm

@#27 Joseph R.
How does a ship in distress off the coast of BC “reinforce the need for the Keystone pipline”

People in BC dont want massive oil spills on their coast.
The Keystone pipeline will garantee a future Exxon Valdez no matter how many times our “beloved” Premier blathers on about “the 100 conditions to garantee no oil spills”.
She’s a mouthpiece for the oil and gas industry,nothing more.
She’d wear a road killed skunk as a hat for dinner with the Queen if that would get this pipeline/LNG deal signed, sealed and delivered.

#35 Brian Ripley on 10.17.14 at 8:06 pm

Anecdote: This week I helped an Asian woman read (she did not have her glasses) the listing price on a realtor spec-sheet of a Fairview Vancouver strata unit. Discovering the asking price to be $1.3 million she exclaimed that it was way overpriced for the age of the building.

Thank you Cool Asian Money.

It is well know in Vancouver that despite the runaway prices of single family dwellings, strata units have remained flat since 2007 as evidenced by the chart: http://www.chpc.biz/vancouver-housing.html

Cool Asian Money was not interested.

Now that the equity markets have demonstrated again that one cannot simply bid prices up without good risk management, I bet we are going to see the return of prudence in the uncorrected Canadian real estate markets.

Also the continuing plunge in commodity prices should be a warning to would be real estate buyers, that housing is a commodity and subject to depreciation and repricing when investors look at other markets that are on sale.

#36 Mike in the Okanagan on 10.17.14 at 8:08 pm

“In short, we worry about the wrong stuff, fretting over global markets while we snorfle a maple glazed at Tim’s.”

Love it…so true! People have no sense of probability. This is why people sit at slot machines and buy lottery tickets.

#37 bdy sktrn on 10.17.14 at 8:11 pm

20 Don on 10.17.14 at 7:07 pm
. You drop your anchor deep in the open water….as you get closer to land
it will grip and keep you offshore
—————————–
ha ha been there done that!

the panicked natives up there need to know this.

#38 Nemesis on 10.17.14 at 8:13 pm

#@/SideLineCrowdedSittingElevatorFartz… #WeKnowWhoYouAre! #”LikeBugsWillWeCrushYou!”

http://youtu.be/rnW5z_9L2VQ

#”ButFirst,WouldYouMindFetchingMitzerBoyAnotherMojito?”…

http://youtu.be/ml75GSIY8mw

#39 Smoking Man on 10.17.14 at 8:15 pm

Ground Hog day again….. I need a life

#40 bdy sktrn on 10.17.14 at 8:16 pm

the area where this ship is so remote that without Radar/satellite 10 ships like this could crack up at once and no human would likely notice anything happened.

#41 Doug in London on 10.17.14 at 8:18 pm

I rushed to my laptop to BUY equity ETFs, not sell them on Wednesday. At present I’m disappointed the awesome sales ended so early. Market volatility? Bring it on!!!!!!

#42 Piccaso on 10.17.14 at 8:23 pm

Meet the cast of ‘Ultra Rich Asian Girls’ of Vancouver reality show

http://www.theprovince.com/Meet+cast+Ultra+Rich+Asian+Girls+Vancouver+reality+show/10296625/story.html

#43 crowdedelevatorfartz on 10.17.14 at 8:27 pm

@#27 J.R. “Ewing”

Apparently this ship has “only” 450 TONNES of fuel to spill……..
If oil tankers start plying BC waters to China with toxic Alberta bitumen.
The new Panamax double hulled tankers can carry more than the Exxon Valdez which spilled 35,000 TONNES of oil.
But human nature being what it is.
You’re only as good as the engine that drives the boat. And when that engine quits………….Amoco Cadiz, Exxon Valdez, etc.
But look on the bright side as the president of the Mt Polley mining disaster was so quick to point out.
“The clean up creates jobs!”

Yeah, thats what we want, jobs to clean up the mess……awesome. I want to be the guy pulling dead sea otters out of the oily muck……..

#44 Grantmi on 10.17.14 at 8:33 pm

#8 Marian on 10.17.14 at 6:36 pm

central bankers stepped…
WHAT DOES THAT MEAN…MORE OF QE ( PRINTING MONEY ) ???????

Yes! AssClown James Bullard…(Non-voting FED head) comes out on Bloomberg yesterday in the afternoon and JAWBONES the markets into a SNAP BACK FRENZY!!

Since Yellen can’t do it herself without looking like QUEEN ASSCLOWN.. she send out one of her lap dogs.

Look for the markets to continue their reverse next week.

(Look at WALLY MART stock Chart! Holy Snickies!!)

#45 Son of Ponzi on 10.17.14 at 8:33 pm

#27
It’s my understanding that if there is an oil spill, by the London Protocol on Marine Pollution, Putin will have to foot the bill.
————
Sure, right after he annexes Haida Gwaii.

#46 Playing4fun on 10.17.14 at 8:34 pm

For all who may loath paying financial advisers(and I cant say I havent questioned it myself from time to time). Had my monies worth last week. Was advised to “cream off the top” some stocks that had appreciated 20 to 30 percent over the past year as there was an expectation of a drop in the coming weeks and months. Could they have guessed this past week? Probably not but realizing a re-balancing was in order, they parked some profits in cash which I was glad to say was well worth the 1% management fee.

#47 not 1st on 10.17.14 at 8:41 pm

Garth, here is a story on young hornies in Vancouver. Obviously they aren’t worry about much;

http://www.theglobeandmail.com/life/home-and-garden/real-estate/how-young-vancouver-buyers-are-crashing-the-real-estate-party/article21142644/

#48 Sheane Wallace on 10.17.14 at 8:46 pm

I kind of enjoyed the fall.

Europe does not suck, Europe rocks. Germany is still the only functioning Western large economy in normal circumstances with huge trade surplus and no QE.
Euro or better, the Swiss frank would be worth more and more in the future. VGK yields 4.3%.

The risk of downside in the next few months is larger then the upside. No savvy investor would buy at this level unless they have insider information that Fed will stop and even reverse QU. The markets could easily go 15 % down from here. I am not buying nor selling, just waiting.

#49 devore on 10.17.14 at 8:47 pm

#1 the Jaguar

something bad is happening off the BC coast. A Russian tanker is drifting with tonnes of fuel on board that they fear could hit the coast. This is very bad.

It’s not a tanker, it’s a container ship, as you can clearly see from the pictures. If it runs aground that is never good, but it’s no Exxon Valdez.

#50 Happy Renting on 10.17.14 at 8:49 pm

#24 sideline sitter on 10.17.14 at 7:19 pm

Limit orders, my friend! Work on your tan then check to see what deals you picked up.

I’d already done some buying, so the surge today was welcome. It did seem like yesterday we’d entered irrational-panic land.

#51 crowdedelevatorfartz on 10.17.14 at 8:50 pm

@#38 Nemo
Deep.
I’m not sure if the orchestral accompaniment was the recurring “theme” or the Cuban references. ) I particularly liked James Bond’s erect cigar when he was talking to Jinx. Very symbolic.
Unlike your links.
Anywho, I have alcohol to drink,(thats what Friday night and pouring rain on the west coast will do to one’s “soul”)
Either way, a puppy licking my face would be more of a Nemesis…

#52 Son of Ponzi on 10.17.14 at 8:53 pm

#36
Love it…so true! People have no sense of probability. This is why people sit at slot machines and buy lottery tickets.
———–
Remember, low probability – high impact.

#53 Joe2.0 on 10.17.14 at 9:20 pm

The market turned around when Yellen and Bullard hinted at more QE-4 and that’s the only thing keeping it from dumping.

That’s why they either print money or talk about printing money when ever it starts tanking, and then up she goes.

But it’s going to strategically be drained by the vampires.

#54 Smoking Man on 10.17.14 at 9:24 pm

What the hell do you do for fan when you live life as beast. 5 trips to Vegas a year, every weekend at Seneca. By day code smithing for the brightest of the bright, and they think know you’re bright.

ALL while running to small business’s and day trading forex, equities and Bonds on your phone. Short term rentals when required.

I’m board, I wish I could figure out how to trap Aliens, steel their space ship, and go for a whizz around the moon.

I should really just go to Mississippi, join a church, then take it over. I can be on stage playen preacher, doing a bit of song and dance while my worshipers adore me.

That’s more of a nightmare.. But hell, really board..

#55 Smoking Man on 10.17.14 at 9:35 pm

I can grow a mullet, buy a fishing rod, and fish. I would rather get water boarded.

I’m out of ideas for boardum releaf, Thank good I’m a writer now..

Have a few sips, and vanish in a world that has no boundaries or rules…

Back to book.

#56 Yitzhak Rabin on 10.17.14 at 9:45 pm

Within one week of stocks going down, the Fed parades out Williams and Bullard to discuss keeping QE in action or re-starting another verison of it. This is no surprise. The majority of the market gains since 2008 have been due to money creation by the Federal Reserve, each time they stopped markets fell and another version of QE came into force.

The economy that lives by QE, dies by QE, and each version of it distorts the real economy even more. This week’s bluff by Fed officials will not stop this decline for long.

Expect more QE’s than Rocky Movies.

Actually, I expect QE to end on schedule. — Garth

#57 SWL1976 on 10.17.14 at 9:47 pm

#25 Has anyone read….. This?

Because of this our new polar vortex’s are mostly man made

If you can’t see it you’re not looking

#58 Joe2.0 on 10.17.14 at 9:47 pm

Smoking Man
You have become an opera singer.
Me, Me, Me
Life’s not always about ones self.
Get out of your comfort zone, help the less fortunate.
Feed the hungry, visit some lonely oldster at a care home.
Lots of real need out there.
Hursts weren’t built to pull U Hauls.

#59 Son of Ponzi on 10.17.14 at 9:48 pm

#53 Joe2.0 on 10.17.14 at 9:20 pm
The market turned around when Yellen and Bullard hinted at more QE-4 and that’s the only thing keeping it from dumping.
That’s why they either print money or talk about printing money when ever it starts tanking, and then up she goes.
—————–
Right on.
I call it the “Money Printing Machine Rule”.
She, who ownes the printing machine, rules.

The Fed has gone from $85 billion a month to almost zero. Time for you to stop being wrong. — Garth

#60 Joe2.0 on 10.17.14 at 10:01 pm

Since 2008 the Feds printed over 3 trillion dollars.
It takes you 36 thousand years to count to 1 BILLION.

#61 Whinepegger on 10.17.14 at 10:04 pm

While we’ve all been focused on the indices there has been another major development in the world of science that may be a world changer. Seems that cold fusion has been confirmed. Read this: http://www.extremetech.com/extreme/191754-cold-fusion-reactor-verified-by-third-party-researchers-seems-to-have-1-million-times-the-energy-density-of-gasoline . I find the last few lines illuminating: “The next few weeks could be very interesting indeed. According to one report at Sifferkoll, a big bank downloaded the new E-Cat report just minutes after it was made available online — and “oil futures have stayed volatile since.”
And Lockheed-Martin has already chimed in: http://www.theverge.com/2014/10/15/6982101/lockheed-martin-announces-its-skunk-works-wants-to-build-a-fusion
And the oil companies are bracing for news from a delegation of scientists heading to Sweden next week to verify the announcement: http://cold-fusion.ca/oil-companies-braced-for-e-cat-developments-35000

I did a bit of math and calculated that a reactor the size of an 18 wheeler would replace the power generated by all of Manitoba’s Hydro dams. If its true, we’re about to witness a transformation as great as the move from horses to cars. Should be a few good investments to be found along the way.

#62 dosouth on 10.17.14 at 10:05 pm

Looks like Marks leadership is not going well across the pond….

.99% mortgage from HSBC

#63 Marnic on 10.17.14 at 10:06 pm

Ebola? Garth, I think you may have the wrong coincidence there…

#64 Smoking Man on 10.17.14 at 10:09 pm

#58 Joe2.0 on 10.17.14 at 9:47 pm

Do that every day Joe, I fork out at leased 100 a day on the homeless, food bank on Thanksgiving and Xmas, you must be new here.

Just saying success leaves you with less challenges. It’s shity.

Perhaps that’s why I keep smoking, drinking… Bring on a problem God…I need a challenge, That’s when I’m in my zone…

I need hard, Imposable puzzles to figure out, and there are none at the moment..

#65 Bottoms_Up on 10.17.14 at 10:15 pm

So the price of oil gets driven down, and Russia then abandons a fuel-laden ship alongside the coast of BC. Are we just in a giant chess-match between energy giants, with the people and environment pawns?

#66 David W on 10.17.14 at 10:18 pm

I can’t figure out this market. It’s still near record highs, how much further up can it go before a real crash?

Why would it crash, unless the economy does? — Garth

#67 Bottoms_Up on 10.17.14 at 10:19 pm

#43 crowdedelevatorfartz on 10.17.14 at 8:27 pm
——————————————————
This is exactly how Putin wants you to respond. You do realize he also funds the anti-pipeline movement here in Canada….

#68 Joseph R. on 10.17.14 at 10:28 pm

#34 crowdedelevatorfartz

I think you are confusing the Keystone XL pipeline (the one connecting Alberta to Texas)with the northern gateway pipeline (connecting Alberta to Prince Rupert) that recently received the OK from the Federal Government.

The Northern Gateway is to transport LNG from Prince Rupert to Malaysia (Petronas).

#43 crowdedelevatorfartz

I never said I was a “broken window” economist. Where did you get that idea?

#69 Nemesis on 10.17.14 at 10:32 pm

#PartingFusillades… #JustForOkieMike… #LongJohnSilver… #KnowsAThingOrTwo… #AboutTheRealTerrors’OTheBrinyDeeps… #Or,”ThemThatDiesIsTheLuckyOnes”…

[TheTyee] – Slots on Ferries a Complicated Bet, Warned Finance Ministry

http://m.thetyee.ca/News/2014/10/16/Slots-on-BC-Ferries/

[NoteToGT: On the BrighterSide… You just know that SmokingMan won’t be be PayingAttention when the Tannoy™ announces, “AbandonShip!”. On the DownSide, the inflatable’s Cigarette & JD supply can exhaust much faster than you’d think. I say, “Haul him in!”]

#70 Smoking Man on 10.17.14 at 10:32 pm

It’s retarted, I paid and reserved a huge both at Stir tonight, the humans are looking at the loner, feeling sorry for me, he has no friends…

Ha, I loath them all… I only like the ones who have been bitch slapped by life, I help them.

I have issues…

#71 Christopher Lackey on 10.17.14 at 10:33 pm

People will not listen to reason. Anyone who thinks they got problems because they sold something at a gain that went even higher after needs to look at the average investor. Nobody went broke taking a profit, but selling on a bad news day is always a mistake. The S&P took seven years, until 2007, to again reach the all-time high it hit in 2000. Two years later it was down again, 60% off. Yet everyone who panicked and said they would “wait until things stabilize” missed a 20% gain in one day not even three weeks later.

Hang on, sit tight, collect your dividends and buy more if you can. It’s not hard. History shows that those who do that, succeed. Those who panic and go cash, never get anywhere, and no wonder.

It’s funny to see BXE, TOG, TBE, and SPE all up +10% in the last two days, the two days after the newspaper was full of articles about the pending demise of the oil industry. This pattern is just doomed to repeat itself. What side of history do you want to be on?

#72 Joseph R. on 10.17.14 at 10:33 pm

#30 Son of Ponzi

Yes, Russia is a signatory party of the London Convention:

http://www.imo.org/OurWork/Environment/LCLP/Documents/Map%20of%20Parties%20Sept%202014.pdf

#73 Kenchie on 10.17.14 at 10:51 pm

#100 Retired Boomer – WI on 10.16.14 at 11:37 pm
“CATO vs KENCHIE Film at 11.

My money is on Kenchie. While CATO is a capable blogger the posts often drip with untempered right wing dribble, often something the Cato institute for the mildly insane like to produce. While they often sound alluring, much like that used car we have often drooled over in our youth, it seldom proved a good buy over the long term.

CATO, keep writing, you do prove interesting. My hope is the alluring idealism will someday be tempered by the practicalities of a life well lived. Ah youth, why is it always wasted on the young?”

Thanks for your input, Retired Boomer.

One reason I give Cato the Elder my time of day is that I, too, had very similar thoughts along his current lines (although not so extreme). But then I continued learning from other economic/political sources and, more importantly, my (real life) elders. So I see a lot of my former self in Cato.

Another reason I give Cato the Elder my time of day is that he provides plenty of opportunities to show another point of view (and sometimes links) on so many topics for readers to digest. I’m sure plenty of blog dogs (Garth included) ignore our ramblings, which is perfectly sensible, but maybe they learn something from our debate. Each to their own.

Cheers

#74 Smoking Man on 10.17.14 at 10:51 pm

This week, I get a new over Lord at the tax farm, I’m board and want to test the waters… My contract is up at end of the month. I demand a 25% increase in my rate.

Looking forward to the negotiations, the out maneuvering, testing each other’s bull shit skills.

The bastard said OK..

I have no luck…

#75 Kenchie on 10.17.14 at 10:56 pm

#104 Helen on 10.16.14 at 11:57 pm
“No one is reads comment over 15 lines. Not even your Mom. Be concise.”

“#106 Too Much Kenchie on 10.17.14 at 12:14 am
Right?

I don’t listen to the soapboxers.”

Sorry. Although I did give a disclaimer!

#76 Kenchie on 10.17.14 at 11:11 pm

#10 Marian on 10.17.14 at 6:45 pm
“ISN’T Haida Gwaii Charlotte Islands ??? WTF is going on in this strange country ??????”

Too much “political correctness”.

#77 joblo on 10.17.14 at 11:22 pm

“Meanwhile we pick careers haphazardly, and fall into love and marriage randomly. In short, we worry about the wrong stuff, fretting over global markets while we snorfle a maple glazed at Tim’s.”

Kanada …… a country of gamblers and speculators
Family, Career and Home decisions are made solely on monetary decisions.
Sadly it’s what the machine wants.
Indebted slaves.
Time for a change
Anyone?

#78 Son of Ponzi on 10.17.14 at 11:49 pm

#72 Joseph R. on 10.17.14 at 10:33 pm
#30 Son of Ponzi
Yes, Russia is a signatory party of the London Convention.
————
Of course, they are.
They also signed the Geneva and the Timbuctu convention. And the Warshaw, the Paris, the Vienna and the Ulan Bator Convention.
What’s your point?

#79 Setting the Record Straight on 10.17.14 at 11:55 pm

@
CATO vs KENCHIE Film at 11.

My money is on Kenchie. While CATO is a capable blogger the posts often drip with untempered right wing dribble, often something the Cato institute for the mildly insane like to produce. While they often sound alluring, much like that used car we have often drooled over in our youth, it seldom proved a good buy over the long term.

The Cato Institue? Really!
Nothing but “Beltway libertarians”

Not the real thing

#80 kommykim on 10.17.14 at 11:55 pm

RE: #60 Joe2.0 on 10.17.14 at 10:01 pm
It takes you 36 thousand years to count to 1 BILLION.

Only if you are a uneducated redneck.

#81 crowdedelevatorfartz on 10.18.14 at 12:09 am

@#60 Joe2.Zero
“It takes you 36 thousand years to count to 1 BILLION.’
++++++++++++++++++++++++++++++++++++

“One to one Billion” took me 2 seconds to “count”.
Perhaps you could be a tad more specific. As in , it takes 36,000 years to count from 1 to 1,000,000,000 numerically.
Just sayin’

#82 crowdedelevatorfartz on 10.18.14 at 12:11 am

@#67 BumUp
“This is exactly how Putin wants you to respond……”
++++++++++++++++++++++++++++++++++++

Truth be known, I work for Putin.
YOU will be assimilated…..silly HU-Man.

#83 Cici on 10.18.14 at 12:11 am

We may be in the clear:

The Canadian Coast Guard vessel Gordon Reid has managed to secure a line and is towing the incapacitated Russian cargo ship Simushir away from the Haida Gwaii coast, according to officials with the Joint Rescue Co-ordination Centre in Victoria.

http://www.cbc.ca/news/canada/british-columbia/simushir-fuel-laden-russian-cargo-ship-under-tow-off-haida-gwaii-1.2803590

#84 Rexx Rocks on 10.18.14 at 12:24 am

Inthemoneystocks.com is great for swing trading stocks.For $50 its like a full service broker.These guys are great!

#85 Nemesis on 10.18.14 at 12:25 am

#”UnderneathTheMangoTree…”… #GoodMorning,Boyz!”…

http://youtu.be/m3lAjyUUS1g

#86 Joe2.0 on 10.18.14 at 12:28 am

Smoking Man
I’m talking about getting your hands dirty, it’s easy to give money.
Get in the trenches, sacrifice.
Not preaching, suggesting from experience.
Had the job the cars the girls, big houses, bikes, the toys the “habits” the cash…
That doesn’t fill the void its diversion.

#87 Tony on 10.18.14 at 12:43 am

Re: #66 David W on 10.17.14 at 10:18 pm

It looks like the FED and bankers can avert a crash until the start of next year. When it’s all over it will go down as the most overvalued market of the millennium or last one thousand years a thousand years from now in the future.

#88 crowdedelevatorfartz on 10.18.14 at 12:49 am

@#68 j.R.
Sorry, my mistake. You’re right. ( and I dont admit that unless I’ve drank as much as Smoking Man)
BUT the Northern pipeline is not just for LNG. Alberta is salivating at the thought of sending Tar Sands “Bitumen” through the Northern Pipeline to Asia.
http://www.google.ca/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=1&cad=rja&uact=8&ved=0CCYQFjAA&url=http%3A%2F%2Fwww.theglobeandmail.com%2Fglobe-debate%2Fmunk-debates%2Fexporting-bitumen-to-china-would-be-environmentally-and-fiscally-detrimental%2Farticle625502%2F&ei=8u1BVI-fGoH0iAKjtoGABQ&usg=AFQjCNFLSWS2hvF60UoMDDS4_cdSumoi0g
Unfortunately Bitumen (which is about 12% fuel and mixed with about 70% sand and clay) needs to be heated to 250 Celcius , pumped to high pressure, and mixed with toxic chemicals (naptha) to keep it in a fluid state…….. So you have old style ( designed and built in the 60’s) oil pipelines(Keystone) designed to flow refined oil, diesel, gas suddenly being used to flow hot, sandy toxic goo that eats the inside of most regular pipes.
Hence the endless pipline spills all over the U.S…..Old pipelines that cant handle the new, corrosive crap.

As for Lac Megantic. The fuel was from the Bakken Shale Oil field. Extremely volitile and extremely dangerous. THAT was well known to the people transporting it. They were all about cutting costs and saving money.
It wasnt from the Tar Sands.
The Tar sand goo is a totally different beast.
WHEN there is a pipeline leak or a tanker spill. It solidifies and sinks….Zero chance of cleanup. It sinks to the bottom of the ocean where it pollutes for generations
Keystone, Northern Pipeline, poTAYto, PoTAHto. Either way ……
ITS ALL ABOUT PROFIT
Right J.R.?

#89 crowdedelevatorfartz on 10.18.14 at 12:57 am

@#54 Smoking Man
“I should really just go to Mississippi, join a church, then take it over. …….”

+++++++++++++++++++++++++++++++++++
God help us all is you become a “born again”.
But, I would pay serious money to hear your speeches from the pulpit.
What am I saying?
Time for a single malt

#90 JimH on 10.18.14 at 1:02 am

More and more BS about Fed “money-printing”. This term is absolutely nothing more than a catchy phrase, and one that is overly appealing to those too lazy to get a better handle on what QE is really about.

There is a ton of misunderstanding of how QE works, and it is true that even the Fed itself is partly to blame for this. But then again, the Federal Reserve is not known for giving a rat’s ass about what you or I think!

Make no mistake; the implementation of QE does not result in an increase in the quantity of money “stored” in the economy. That is exactly why all the frantic projections about hyperinflation from so many folks that should have known better back in 2008 failed to materialize.

There is a world of difference between “money printing” and an asset swap, and this is key to beginning to a basic understanding of QE.

With QE, the Fed simply exchanges, or swaps, a bond for bank deposits. There is NO increase in the net financial assets within the private sector as a result, and therefore no hyperinflation. (BTW, why doesn’t anyone notice that when the Fed sells these bonds at auction, that money is not being “unprinted”?… Curious, isn’t it?)

All that has really changed is the composition of the assets; bonds for reserves/deposits. In other words, from one class of interest bearing assets to another class of interest bearing assets.

Cullen Roche says it better than most:
“The Fed, by buying the bond, is temporarily removing it from the private sector which results in an increase in deposit liabilities (and assets), but also reduces the quantity of T-bonds. This is the equivalent of the Fed unprinting a T-bond and a bank (acting as the middleman) printing a deposit.
Since the Fed remits interest income to the Treasury every year (which reduces the budget deficit), the private sector is losing all of this interest income it would otherwise have earned (which has been about $100B per year for the last 5 years).”

So T-bonds are swapped for reserves. The interest-bearing bonds are sold at auction (usually at maturity). The interest goes to the Fed. The lesser interest earned on reserves (banks do not loan out reserves) goes to the bank. As noted, this has been about a $500 billion gain in the Fed’s favor.

And that is why there is a startling absence of hyper-inflation. It is also part of the reason the greenback has soared into overbought territory while the precious metals have become somewhat less precious, and will continue to lose their luster.
————–
On another note:
Yes, the US markets sold off with a vengeance of late; mostly due to reasons outside of the US economy, which is by far the best of a poor lot.

There are some on this blog who love telling the markets what to do, and see the last 3 days as proof that we’ve hit a bottom. (Did you notice the Russell 2000 today?)

As an old trader, not an investor, I suggest patience right now; a deeper pullback would be better. In any case, I am watching and waiting for a “higher low” before jumping back into a market I mostly sold out of back in late June and July. The trend is your friend, and we are still in a down trend until we see higher lows and higher highs.

Good luck!

#91 nonplused on 10.18.14 at 1:06 am

Ya spot on again Garth, but as always it’s more complicated. At $80 oil the shale dream dies and well it’s going to go the way of shale gas. Sure it was great for the economy but it nearly bankrupted most shale producers. Even the gas producers that haven’t gone into the red are surviving on liquids, and now they are in the crapper too. So how can you achieve energy independence in north America if none of our marginal production is profitable.

Say bye bye to cowtown. Nat Gas at $4.00 was a near natural disaster but that and oil at less than $80 WTI (so less than $60 at Edmonton)??? Last one to leave turn out the lights.

Of course, gutting the oil industry will have one eventual consequence. Oil will go higher again with mostly Saudi and Russian production, as our industry gets gutted again. What do they call that? Oh ya, predatory pricing.

The other thing I can’t get is how banks make more borrowing at 1% and lending at 2% than they did when they borrowed at 4% and lent at 6%. Sure it looks like the profit ratio has doubled but not so. Making 2% on your reserves is better than making 1% on your reserves. Something is all weird. Of course the whole reserve thing has changed now too such that banks basically don’t have any, so maybe 1% on nothing is an infinite amount of profit whereas 2% on something was not. But anyway it implies that the demand for new money is pretty low, even with the housing bubble.

#92 Adam Smith on 10.18.14 at 1:16 am

I’m still having trouble believing the US economy is actually bouncing back. 62% of Americans make less than $20 bucks an hour, 1 in 5 families don’t have a single person working in them, the number of women working is less than the number on food stamps.

They were caught shorting gold to prop their dollar and some of the big economies are doing their best to move away from the US currency. The 16 US intelligence agencies made a report discussing the end of the US dollar as reserve currency and I personally got to talk with Colin Powell’s Chief of Staff Lawrence Wilkerson who seemed pretty convinced the US is going down for financial reasons.

I know they have their own energy now and that should count for a lot but I’m having trouble ignoring all of those signs.

#93 GARTH VADAR on 10.18.14 at 1:29 am

Here we take great advice from a man that is right on with canadian real estate forecasts. However he actually believes that the u.s. is in a “legitimate” recovery?! And when the next mega crash comes wiping most people out, he will say it was still a recovery until it wasn’t. All the while the deer was in the headlights all along. I hope people are diversified outside of stocks & bonds. If you don’t hold it, then you can’t own it will one day again become true.

#94 From builder to landlords on 10.18.14 at 1:39 am

Bosa properties have built many condominiums in Vancouver and the surrounding area. This is the first time I’ve seen them rent. Does anyone know whether they weren’t able to sell these units so decided to become landlords?

http://bosa4rent.com

#95 Kenchie on 10.18.14 at 3:15 am

#120 Cato the Elder on 10.17.14 at 9:45 am

Cato, I’m going to be as concise as much as possible.

We get it, you don’t trust government. You think gov’t institutions, such as the SEC, are incompetent and inefficient, and that their isn’t a legitimate reason for their justification. In other words, you are advocating that the SEC, and others, should be abolished.

If the SEC wasn’t around to police the financial markets, regardless of efficiency of their crime solving skills, Madoff and his ilk would get away with their heinious schemes without suffering much punishment for their actions. In effect, you are advocating that it is okay that innocent people are misled, defrauded and taken advantage by unscrupulous people because “caveat emptor” is more important than regulation. If you truly believe this, from the bottom of your heart, then I have nothing left to say to you, except that I feel very, very sorry for you.

For real, good luck moving up in the world. However, if how you are in real life resembles your mentality on this blog’s comment section, you’ll need much more than luck.

#96 Corduroy cowboy on 10.18.14 at 3:16 am

I usually scroll straight past Smoking Man’s keyboard diarrhea but tonight my eye caught not once, but twice his plaintive refrain about how he is “board”. Good god buddy, you are not the only one, I for one am getting quite jaded by your relentless “look at me, look at me” one man shit show and let me tell you that it is indeed getting boring. FFS get a life. Get off your ass and get outside. Get some fresh air and instead of trolling this site every night trying to sell everyone on this phony persona that you’ve invented, create a real one. Volunteer at a soup kitchen, start birding and do a life list, join Green Peace, the possibilities are endless…I’ve always said that a bored person is a boring person and you’ve made my point in spades.

#97 late learner on 10.18.14 at 6:48 am

I get a kick out of reading smoking man’s comment. but it is getting stale. he is a narcissist. me…me..me…. ignore him. he will get more annoying. after a while he will find another blog that will feed to his narcissiasm.

#98 David McDonald on 10.18.14 at 8:03 am

JimH (post 90) gave us a very cogent opinion on the effect of QE and whether or not I got caught in a bear trap last week. Maybe there will be more swings and even a bigger drop but I have bet against that as Garth advises. Nevertheless I think we both agree with Garth that improvement in the US will lead to slow steady growth. I don’t expect much stock appreciation but I will take those dividends.

#99 Bottoms_Up on 10.18.14 at 8:16 am

#60 Joe2.0 on 10.17.14 at 10:01 pm
———————————————-
It doesn’t matter how long it takes a single human to do anything.

The US GDP is 1.5 trillion per month (close to 20% of monthly world GDP). That’s what matters.

#100 Steve French on 10.18.14 at 8:45 am

You know, all you blog dog geniuses might be right for once…

The wisdom of blog crowds.

Here we are all… waiting for the promised economic and housing correction.

Waiting and waiting. tapping our fingers.

It’s like watching a pot boil. It never happens while you are actually watching.

We all know the big correction is coming.

Or the slow melt. Either way. The same outcome will occur. Housing will correct relative to incomes. Revert to the mean.

In the meantime, we should all just get our balanced portfolio in place, following Gartho’s advice, and go fishing and camping for a year. Live off the land for a while. Get back to mother nature.

Maybe when we come back, in late 2015, or even 2016, something might actually have happened in the Canadian housing market.

So, I’m going to live off the grid for a while.

Smoking Man, other blog dogs…you in?

I’ll bring the single malt. We can sit around the campfire and tell tall tales about the demimondaines at Seneca Casino.

Housing remains strong now in just three cities. Most markets pose another story entirely. — Garth

#101 Victor V on 10.18.14 at 8:56 am

Unsteady oil markets prompt fears Calgary housing will follow suit

http://www.theglobeandmail.com/report-on-business/economy/housing/unsteady-oil-markets-prompt-fears-calgary-housing-will-follow-suit/article21138452/

#102 Honey Dripper on 10.18.14 at 9:13 am

What I worry about – what age to meltdown my RRSP?

It has nothing to do with age (unless you are 71) and everything to do with taxable income. — Garth

#103 norman on 10.18.14 at 9:55 am

Fed Reserve bank president Bullard said something very interesting during his bloomberg interview: “We could react with more QE if we wanted to.”

So the Fed is basically ready and willing to untaper, with more than $85 billion a month to help out the big banks shore up nice balance sheets. It may soon be time for them to buy US bonds, lock in the spread and improve their liquidity.

He said nothing of the sort, and the Fed is not going to spend $85 billion a month on new QE. — Garth

#104 Millenial on 10.18.14 at 10:31 am

He said nothing of the sort, and the Fed is not going to spend $85 billion a month on new QE. — Garth

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

LOL, Garth, the Fed doesn’t “spend” any of their money for QE, they create it with a few keystrokes! Expect more volatility in North America once QE ends (I hear this is at the end of the month) and the Europeans start their own version of QE. What we witnessed this week was nothing; the markets are so far up that a less than 10% correction is really meaningless. I personally didn’t consider this week much of a buying opportunity, unless you absolutely had to get out of cash for some weird reason.

I’m personally very interested in seeing what effect lower oil prices finally will have on these highly indebted and barely profitable shale oil companies. Next half a year is going to be really interesting.

Save your pennies everybody, we’re in for a wild ride.

LOL. The ‘spend’ term is the vernacular, so kids like you can comprehend monetary policy. — Garth

#105 Millenial on 10.18.14 at 10:35 am

Oops, I meant save your nickels, not pennies! ;)

#106 chapter 9 on 10.18.14 at 10:40 am

We lost a good man in Ottawa six years ago today. Honest,worked and represented the people that elected him. Another giant step backwards for democracy in this country.
Garth, thanks for all your good work!!

#107 Smoking Man on 10.18.14 at 11:05 am

demimondaines

Ha, perfect…. I’m in Steve French… You still in the church of Dude…?

I finally saw the movie.. Big L

Classic

There is more to you than meets the eye..
I’m sure of it, after you pulled the above word out of you hat.

#108 Doug in London on 10.18.14 at 11:09 am

@Ozy – sell and spend it, post #28:
By buying stocks or ETFs when they are cheap (I scooped up more last Wednesday) I’m able to retire and live off the dividends and distributions, as well as the odd capital gain here and there from selling investments that have had a good run.

#109 chapter 9 on 10.18.14 at 11:22 am

Stand corrected it was “eight years ago today not six” probably feels like six sorry Garth

#110 Retired Boomer - WI on 10.18.14 at 11:35 am

# 79 SETTING THE RECORD STRAIGHT

Cato Institute? Really!
Nothing but “Beltway libertarians”
Not the real thing

You are quite correct. CATO institute is more the Libertarian Bent. (Still conservative thinking here)

CATO the Elder’s posts are more similar to the ideals espoused at ‘Heritage’ or ‘The American Enterprise Institute’ more traditionally conservative voices.

My analogy was somewhat mis-placed, sorry

#111 ham on 10.18.14 at 11:46 am

“#15 Alan Rockwell on 10.17.14 at 6:53 pm

The Vancouver Canucks just announced that their sellout streak ended at 474 games (i.e., 12 years!). If this isn’t a ominous sign for the Vancouver real estate market, I don’t know what is.”

I dont think that is the case. The Canucks suck now and Vancouverites dont want to pay to watch a losing team. Its been that way before. The frustration in this city from losing time to time seems to be the norm. Over 40 years of losing and no cup. We are not like Leafs fans, they like to pay big bucks to boo their team.

#112 Millenial on 10.18.14 at 12:07 pm

Hey Garth,

Over in England, HSBC is to launch its lowest ever two-year discounted variable rate of 0.99% for borrowers with a 40% deposit. It comes with a £1,999 booking fee and is available for loans of up to £500,000.

http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/11170759/HSBC-slashes-mortgage-rates-to-0.99pc.html

Dangerous times these are, n’est pas?

#113 Joe2.0 on 10.18.14 at 12:14 pm

Bottoms_Up
Yes that’s what they are reporting.
But going by the corrupt US banking system I don’t believe them or their creative book keeping.
1-proven metals manipulation.
2-Libor rigging.
3-money laundering.
4-high frequency trading.
5-derivatives / housing market.

I’m tracking inflation, stats re unemployment and the amount of citizens on food assistance.

A big problem is we try to access a corrupt market and it’s reactions in a honest logical way.

The books are cooked and for all of you who shake your heads at this statement, look into the banks laundering and Libor…

Why would these theives stop there?

What a sad creature you are. Everyone conspiring against you. — Garth

#114 Blacksheep on 10.18.14 at 12:22 pm

JimH # 90,

Solid post.

Cullen Roche is a smart guy.

#115 Herb on 10.18.14 at 12:46 pm

#106 Chapter 9,

nice thoughts that I second, but you’re out by a couple of years.

Garth was turfed by Harper on this date in 2006, stayed in Parliament as an Independent for six months, then as a Liberal until defeated in the 2008 election. He would have continued as a Liberal candidate, but Ignatieff pussyfooted around his nomination in Caledonia, so Garth threw in the towel and said goodbye to electoral politics in October 2009.

Although I understand his decision to focus on the financial salvation of individuals rather than fight the political tar baby of parties and sheeple, I do miss having Garth as a virtual MP in Ottawa, especially the “digital democracy” he introduced and practiced.

Garth, thanks for what you tried to do, and what you do now.

#116 Joe2.0 on 10.18.14 at 1:16 pm

Garth.
Nothing personal, are you saying that the corruption in the financial markets is no big deal?

It’s fact, have you not heard about the Libor rigging aka price fixing.
The accessed penalties will add to last years 2.2 billion assessed to 5 banks colluding over derivates.
The settlement is based on anti trust laws which also accuse the banks of operating in and as cartels.

Or the metal manipulation?
Deutsch Bank and Barclays have been accused of metals fixing.
Also being sued are HSBC-Bank of Nova Scotia, Societe Generale.

Or Banks laundering drug money via the Sinola drug cartel MX.
HSBC was nailed failing to monitor 680 Billion dollars.
The bank was mast to pay a 1.33 billion forfeiture and 650 billion in civil penalties.

How about the sub prime crisis and the lending practices with the banks fractionating of the inventory?

These are just some of the numerous accounts of illegal activities.

This isn’t effecting at just me is it?

If you look at the billions upon billions of dollars the Libor fixing involved, some how it effected almost every consumer involved with banks.
By your some what sarcastic comment I can only assume you know which institutions won’t or aren’t involved in unethical practices.

Please share.

#117 hickster on 10.18.14 at 1:24 pm

Garth says 8% drop in Regina, but CREA stats say median price down 1%, composite index down 3%.

Can somebody help me out here?

SFH values, not composite. — Garth

#118 Spectacle on 10.18.14 at 1:55 pm

Wow, a sincere thank you for your Political Marksmanship in Government, on behalf of Canadians Garth! Thanks again for going public with Greaterfool blog too.
M
*****************
Re: 94 From builder to landlords on 10.18.14 at 1:39 am
Bosa properties have built many condominiums……. This is the first time I’ve seen them rent. Does anyone know whether they weren’t able to sell these units so decided to become landlords?

********************
My reply: Real Estate development /management companies hold/rented real estate , renting (whatever ancient mildew palace exists on the dirt) out for many years before the development process even begins. Even several decades. Peter Wall owned his recent Granville estate for some 30 plus years before the new 2014 development broke ground.

Yes, rental is a big part of a Balanced portfolio plan; think of it as a self administered REIT. Corporate Investors are in for a piece, and can buy, hold, rent, their particular “factored” or parcel as per their agreement. They can be the last money in, but the first money paid out! If the developer was in need of that kind of money. Nosa, Aqualini etc are not in need of menu at all.

Now is a buy & hold position. They own the dirt, so renting out boxed units, is a viable option far into the future now. It makes them money based on the original ( not 2014 purchase cost) purchase cost many decades past, and current build costs.

Its s a different game than some guy in Fort mac, or Vancouver , buying/renting a property or ten. Now is not the time to buy, as outlined on prior blogs by Sir “G” on his blog. It’s like purchasing individual stocks, rather than a small selection of ETF’s for that portion of your portfolio. Remember to rebalance when you check the smoke detectors, or your blood pressure on your semi-annual visit….

Hope that helps,

#119 Jonah on 10.18.14 at 2:03 pm

Garth,
You are wrong. the fear still exists, anything that is not close to 52 weeks low is a big risk. What we saw recover back on Thursday will deplete over next week or months as some stocks did fall back to their low on Friday. Stocks are overvalued like housing in Canada and people will lose their life worth savings in weeks and months to come if they don’t make smart decisions. US is on track to be doomed by the very ISIS goons they had created to manipulate resources at international level and draw new border lines. As Canadian, we should stay away from path of US, why should we follow a doomed nation?

#120 straight six on 10.18.14 at 2:36 pm

re advice to the jaguar #1.

it looks like the wheels never came off the Russian tanker.. and now he’s stuck living with a valley girl in the redneck infested interior. A far worse fate!

#121 Has anyone read..... on 10.18.14 at 2:54 pm

This?

http://www.globalresearch.ca/wall-street-greed-and-the-corrupt-global-banking-cartel-too-big-to-prosecute-not-for-a-california-jury/5378967

Why would we read a lefty anti-globalization, anti-capitalism, workers-unite web site? — Garth

#122 Mark on 10.18.14 at 3:05 pm

“Unfortunately Bitumen (which is about 12% fuel and mixed with about 70% sand and clay)”

Not true. Please stick to talking about stuff that you actually have a clue about.

#123 Greg on 10.18.14 at 3:18 pm

Hi #61 Whinepegger, (thanks for the links.)

re: fusion energy and other energy source issue, links,

Posted 20 Aug 2014
“An experimental nuclear fusion company recently…”
http://spectrum.ieee.org/energywise/energy/nuclear/silicon-valley-goes-long-on-nuclear-fusion

http://spectrum.ieee.org/energy

#124 Koshy Alex on 10.18.14 at 3:27 pm

central bankers stepped in

Brave investors moved in

For the brave investors to move in they really need the central bankers to step in all the time whenever there is a drop, let us hope the CBs will move in all the time so that the investors can remain brave and trust the free market.

But the big question is will this work in the long run,

http://www.cnbc.com/id/102075990

#125 Exurban on 10.18.14 at 4:03 pm

The number of people who think that Russian ship is an oil tanker is really a sad commentary on intelligence and reading comprehension. Direct from the latest Vancouver Sun report:

the Simushir, which is about 440 feet (135 metres) long, was carrying “a range of hydrocarbons, mining materials and other related chemicals.” That included 400 tons of bunker oil and 50 tons of diesel. The vessel is not a tanker but rather a container ship. In comparison, the tanker Exxon Valdez, spilled out 35,000 metric tons of oil.

#126 Public servant's boss on 10.18.14 at 4:58 pm

“We hang the petty thieves and appoint the great ones to public office.” – Aesop

#127 crowdedelevatorfartz on 10.18.14 at 5:12 pm

@#122 Mark
Re your comment.
“Not true. Please stick to talking about stuff that you actually have a clue about”
+++++++++++++++++++++++++++++++++++
Ummm,
Perhaps if you dont believe this you should take issue with the scientist that wrote it.

“In the 1920s, chemist Dr. Karl Clark of the Alberta Research Council developed the hot-water process, a method of extracting bitumen from oil sand. Clark’s method is still used today.

Oil sand, as mined commercially, contains an average of 10-12 per cent bitumen, 83-85 per cent mineral matter and 4-6 per cent water. A film of water coats most of the mineral matter, and this property permits extraction by the hot-water process….”

Link Canadian Encyclopedia.

http://www.google.ca/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=3&cad=rja&uact=8&ved=0CD8QFjAC&url=http%3A%2F%2Fwww.thecanadianencyclopedia.ca%2Fen%2Farticle%2Fbitumen%2F&ei=BdZCVNicLez1iQKh04HoBA&usg=AFQjCNF-_MI-WR05DVa3JDqFPkvdWZrU1w

Info you’re looking for is under the heading “Bitumen Extraction” in the second paragraph.
It should be easy for you to find if you can read, know what a paragraph is and can count to two……

#128 Waterloo Resident on 10.18.14 at 5:17 pm

Here is how CRAZY people are becoming at work there days.

– I was told to go to a meeting with other staff, observe, make notes, and perhaps talk a little bit, but don’t get in the way, try to stay out of their way while only observing. So that’s what I did. Well guess what; week later I get an e-mail telling me that the staff where I had my visit; they have shared some behavior concerns that need to be talked about.
I was told to be “A FLY ON THE WALL” sort of speaking, so that’s what I did. Now I get criticized for doing EXACTLY as I was told to do. Thank God I recorded the entire meeting on my hidden voice recorder because if I get fired for that I will have evidence for a major unjust termination lawsuit against the employer.

Companies are getting desperate to let go of anyone and everyone these days, so you have to go into work everyday walking on eggshells and recording everything that happens, every minute of the day.

#129 SWL1976 on 10.18.14 at 5:30 pm

#93 GARTH VADAR

I hope people are diversified outside of stocks & bonds. If you don’t hold it, then you can’t own it will one day again become true.

——————————————————–

Good point, while you can’t turn your back on the markets, to me having tools to build and fix things, a means to fresh water, food, and transportation should we actually see financial collapse is part of my diversified portfolio. Better to have and not need than to need and not have

Rememebr if it can happen, it will happen

——————————————————–

#95 Kenchie

If the SEC wasn’t around to police the financial markets, regardless of efficiency of their crime solving skills, Madoff and his ilk would get away with their heinious schemes without suffering much punishment for their actions

——————————————————–

This is like the fox looking after the hen house

Go easy on Cato he brings lots of good points to the table

——————————————————-

#104 Helen on 10.16.14 at 11:57 pm

No one is reads comment over 15 lines. Not even your Mom. Be concise.

——————————————————–

I do

#130 STEVE on 10.18.14 at 5:32 pm

#80 kommykim on 10.17.14 at 11:55 pm
RE: #60 Joe2.0 on 10.17.14 at 10:01 pm
It takes you 36 thousand years to count to 1 BILLION.

Only if you are a uneducated redneck.

A UNEDUCATED REDNECK…DUDE..OR SHOULD IT BE AN UNEDUCATED REDNECK.
GOD YOU’RE DUMB #80 kommykim …..lol

#131 Cato the Elder on 10.18.14 at 5:37 pm

Well I have arrived. Seems everyone is busy talking about me while I’m away.

I don’t support any particular foundation. Everyone seems to know and somewhat admire the ambitions of Julius Caesar, without realizing what they’re actually supporting: tyranny. Cato is lesser known and had the principles to stand up to him – just wanted to popularize him as much as I could.

Kenchie, regarding the SEC and Madoff – totally untrue. Madoff committed FRAUD – fraud is illegal and not allowed in a free market with the rule of law. You don’t need an ADDITIONAL governmental department/bureaucracy to police such activities.

I don’t believe in ‘prior restraint’. That means rules shouldn’t be instituted to ‘protect’ people by huge, bureaucratic institutions. When a crime is committed, it should be investigated and a penalty should be levied retroactively (just like every other crime like murder).

The reasons are:
1. It costs huge amounts of money
2. It’s largely ineffective. Organizations find loopholes. Those loopholes then require MORE regulations. It never ends.
3. It disproportionately hurts new/small businesses more than established players
4. Destroys jobs. Some jobs never even get created because it is too costly to comply.
5. Big business engages in ‘regulatory capture’ through which they lobby and harness the power of the regulators to stamp out their competitors
6. Many beneficial advancements aren’t able to be developed due to regulations.

An example of number 6 is drugs that take years and BILLIONS of dollars to come on the market despite being safe because they have to comply with a bureaucratic maze. And before you say ‘it keeps people safe’, please understand that is not why things like the FDA or Health Canada exist. They exist to protect pharmaceutical companies from start-ups that would develop new drugs to displace their positions in the market. A pharmaceutical company does NOT want to kill it’s customers. And if there IS any risk of a drug being unsafe, shouldn’t it be the RIGHT of a person to ingest into their body what they want to?

Anyways, here is another example of the cronyism/business racket/mobster system we have in place: the CRTC. Do you have any idea how difficult they make it to come in and compete with Canada’s telecom companies? The guy that founded Wind Mobile had to pay MILLIONS and lobby with a cadre of lawyers for years just to get in. Haven’t you noticed that all the major industries in Canada are dominated by a small group of 4-5 companies? This is BY DESIGN. It’s not something that would exist naturally for decades without some sort of protection in place. No, they would be upended periodically by a newcomer. Very similarly to how technology companies come and go (AltaVista, Yahoo, Google, etc.) due to competition and innovation. The difference is, technology companies aren’t ‘regulated’. Prices come down all the time. Good paying jobs exist in that space. It isn’t a freak coincidence, it’s what happens when people are left to be free and compete without government interference.

Canada is STAGNANT and has been for years. There’s a reason for it. Big government protects big business. It’s that simple. Hitler didn’t lose the war folks – I hate to tell you. We adopted many of the same governmental policies. Sure, we have some civil liberties left. But they’re being eroded day by day incrementally. Look at the G20 protests in Toronto a few years back. They were arresting people for WALKING ON PUBLIC SIDEWALKS. WAKE UP. We’re becoming a police state, all western countries are, and no one is being as concerned as they ought to be.

#132 crowdedelevatorfartz on 10.18.14 at 6:35 pm

@#130 Steve
‘A” uneducated redneck or “AN” uneducated redneck.
+++++++++++++++++++++++++++++++++++

Good one. I totally missed that. lol

#133 Smoking Man on 10.18.14 at 6:54 pm

84% of the world population has some sort of religious faith.

It usually in tails a philosophy of obeying a higher power. The go between, preacher, rabbi, iatola. are the go betweens the God and the herd.. They do a fine job of keeping everyone inline

That’s a huge number.

A blog dog sent me a copy of a study that if ET would show its face, all hell would break out on earth. System of control would break down..

Very interesting read..

#134 WhiteKat on 10.18.14 at 6:59 pm

@Cato the Elder,
re: ” Sure, we have some civil liberties left. But they’re being eroded day by day incrementally”

Yes, and no one cares, or at least they won’t until it is facing them in the face directly and personally, at which time it is likely too late.

The FATCA IGA that the Conservative government hid in its recent omnibus budget bill is a perfect example of that.

#135 Has anyone seen.... on 10.18.14 at 7:23 pm

This?

https://www.youtube.com/watch?v=sbLV2l8FYlk

#136 Son of Ponzi on 10.18.14 at 7:36 pm

To Cato the Elder:
Si tacuisses, philosophus mansisses.

#137 Valkyrie on 10.18.14 at 7:53 pm

#10 Marion #76 Kenchie
Haida Gwaii translates to Haida Land, where the Haida people have lived for well over 10,000 years.
Queen Charlotte was German, never set foot there and I doubt she cared or even never knew this wonderful Archipellago of 135 islands ever existed.
I suggest a visit there to you both, the Haida are a proud and friendly bunch. You would both benefit. Your knuckles won’t be dragging on the ground any more after your visit, with any luck.

#138 SWL1976 on 10.18.14 at 7:55 pm

I hate to tell you. We adopted many of the same governmental policies. Sure, we have some civil liberties left. But they’re being eroded day by day incrementally…

and my personal favorite is “The free speech zone” at the G-20 meetings, the phrase itself is an oxymoron

#139 WhiteKat on 10.18.14 at 8:03 pm

@Cato the Elder,

Your education level is apparent when you use the non-word, ‘anyways’. I doubt ‘anyways’ was a typo (god knows I am the queen of typos).

The use of ‘anyways’ whether in written or oral communication immediately forms a negative impression for many who have at least more than a high school education…just ‘sayin’.

However, having said that, and in the process of raising three children, it never ceases to amaze me, how poor is the grammar of the average grade school teacher. LOL…was that sentence even grammatically correct? My bad!

#140 WhiteKat on 10.18.14 at 8:18 pm

AnywayS, I did a grammar check on it. Apparently it is fine. It sounds weird though, eh?

#141 the Jaguar on 10.18.14 at 8:26 pm

#125 – Exurban:

If First Nations Groups raise concerns and both Canadian and USA Coast Guard personnel rush to the scene of what they figure might be an environmental disaster, then who gives a flying “you know what” what the specifications or classifications of that vessel might have been? It was carrying environmentally ugly cargo that would have a negative impact on the animal and ecosystem of the area. Diesel Fuel! Other junky gas/oil product!
It’s a perfect example of what can go wrong for those who have raised concerns and oppose the Northern Gateway Pipeline. You must be living in a province that has long ago thrown in the towel on these issues. (Ontario, maybe?). Do you have any idea how special this area of Canada is? How pristine? How much wildlife is there? Get educated about the risks to the area. You don’t seem to get it. It’s a big country. And it’s not clear you understand anything about this area.
No wonder the vision of ‘Cascadia” is alive and well in the western part of Canada.
The West doesn’t want in , the West wants “out”! Even with oil at $80.00. We will take out chances with those that understand our values.

#142 crowdedelevatorfartz on 10.18.14 at 8:49 pm

@#138 SWL1976
“and my personal favorite is “The free speech zone” at the G-20 meetings, the phrase itself is an oxymoron…”
++++++++++++++++++++++++++++++++++++

True very true.
My personal favourite oxymoron is “Progressive Conservative”.

#143 crowdedelevatorfartz on 10.18.14 at 8:53 pm

@#136 Son of Ponzi

Inflationes meum desiderium meum audiat Omnipotens

#144 Nomad on 10.18.14 at 8:59 pm

I just opened an RESP for my kid. What a good time to invest in $XIC. Meanwhile a fearful cousin doesn’t want to invest but realizes that her 1.4% ING interest rate won’t get her to where she needs to be. But she’s very proud the house she paid 750k for is now worth 1 million (virtual gain).

Some many are fearful. Profitable news headline don’t help.

The fearful handed me a nice load of WestJet and AirCanada shares on Wednesday. I hope they hand me more.

#145 Cato the Elder on 10.18.14 at 9:08 pm

Re: #138 SWL1976

and my personal favorite is “The free speech zone” at the G-20 meetings, the phrase itself is an oxymoron

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

See, this proves my point. My point being, big government passes regulations to protect big business. That includes restrictions on civil liberties.

Why? Big business DOES NOT WANT YOU TO BE FREE. They want to entrench their position and protect themselves from competition.

Free speech means you can criticize and scrutinize what they’re doing. It means you can organize and galvanize around new, smaller businesses that are trying to out compete them and undermine their market share.

An open and free marketplace devoid of onerous regulation means that any minute of any day their market share can be eroded by a new business that caters to their customers better by providing better service and prices.

That is why big business pays exorbitant amounts of money to control our political processes. Want a solution? It’s not going to come by believing you can elect someone that’s going to be immune from these pressures. You have to DEMAND THAT GOVERNMENT SHOULDN’T HAVE THESE POWERS TO BEGIN WITH.

Then, and only then, will we be free and independent. That doesn’t mean you won’t get hurt. But it does mean the degree to which you get hurt will be limited – a massive corporate state won’t deprive you or your children of life and liberty.

Disregard what I’m saying at your own peril. It IS happening. Quit watching television. Look at the legislation our politicians are passing. Quit believing the governments statistics. Start perceiving what is happening in the real world around you.

WAKE UP.

#146 [email protected] on 10.18.14 at 9:09 pm

#123 et al Remember Cold Fusion?

http://en.wikipedia.org/wiki/Energy_Catalyzer

#147 Nemesis on 10.18.14 at 9:16 pm

#Yikes!… #WorriedAboutPoliceStates!?!… #NoProblemo!… #ChangeTactics… #[email protected]’s… #Administer… #Wait30MinutesOrSo… #AndThenStormTheBarricades:

http://youtu.be/xilrvBZoSOU

[NoteToSaltierDogz: If things don’t go well, there’s always the infamous “Twinkie Defense”: http://en.wikipedia.org/wiki/Twinkie_defense ]

#148 Ronaldo on 10.18.14 at 9:16 pm

This was a worry. Remember it well, October 19, 1987. That was the year that if you had thrown a dart, anything it landed on would have made you money but things came to a dramatic end. Still, the TSE was up around 10% for the year at December 31st.

http://www.trinityfsem.com/blog/?p=336

#149 Nemesis on 10.18.14 at 9:21 pm

#Erratum… #CorrectLink:

http://youtu.be/5_lQ6PD5JKA

#150 45north on 10.18.14 at 9:27 pm

spectacle : Its s a different game than some guy in Fort mac, or Vancouver , buying/renting a property or ten.

I feel that large real estate companies have more options and are not under the same pressures as individual landlords. I said feel because I don’t understand. I mean not really.

Exurban : the Simushir, was carrying “a range of hydrocarbons, mining materials and other related chemicals.” That included 400 tons of bunker oil and 50 tons of diesel. In comparison, the tanker Exxon Valdez, spilled out 35,000 metric tons of oil.

or in other words the worse case disaster would be 1/100 the size of the oil spill of the Exxon Valdez.

Waterloo Resident : Thank God I recorded the entire meeting on my hidden voice recorder because if I get fired for that I will have evidence for a major unjust termination lawsuit against the employer.

you were the first yesterday to post the piece about nuclear fusion – good for you!

I bought a Philips voice recorder, 6 years ago for $170. The quality is excellent.

I am sorry that your position is so threatened. maybe the best strategy is to put on an air of confidence.

STEVE (130) : it should be an uneducated redneck

yeah I saw that but you were first

Has Anyone Seen : you make no point in your actual post and then link to a 2 hour video! forget about it!

#151 Joe2.0 on 10.18.14 at 9:29 pm

Steve
It sounds like you need a hug bro.
Type-0, it was meant to say it takes 36 thousand years to count to 1 trillion.
Let me know how you make out.

#152 jess on 10.18.14 at 9:40 pm

Hedge funds bleeding ‘Arbageddon’
http://www.telegraph.co.uk/finance/newsbysector/pharmaceuticalsandchemicals/11164407/AbbVie-Shire-Hedge-funds-threaten-legal-battle-in-Arbageddon.html

http://wallstreetonparade.com/

#153 Godth on 10.18.14 at 9:45 pm

#145 Cato the Elder

Zoom out Cato, zoom out! Big picture is the antidote.

The Collapse of Political Complexity
http://thearchdruidreport.blogspot.ca/

#154 kommykim on 10.18.14 at 10:40 pm

RE: #132 crowdedelevatorfartz on 10.18.14 at 6:35 pm
@#130 Steve
‘A” uneducated redneck or “AN” uneducated redneck.
+++++++++++++++++++++++++++++++++++
Good one. I totally missed that. lol
#150 45north on 10.18.14 at 9:27 pm

That makes 3 self identified rednecks so far.
Keep ’em coming.

#155 jess on 10.18.14 at 10:50 pm

battle of the austerians
http://www.bloomberg.com/news/2014-10-12/draghi-weidmann-fight-intensifies-as-ecb-debates-action.html

================
WORLD ECONOMIC OUTLOOK: LEGACIES, CLOUDS, UNCERTAINTIES
118
International Monetary Fund
|
October 2014
Table 4.1. Largest Deficit and Surplus Economies, 2006 and 2013
page 4
http://www.imf.org/external/pubs/ft/weo/2014/02/pdf/c4.pdf

#156 jess on 10.18.14 at 10:58 pm

workers-unite ?

wage theft profiteers

Residential Home Industry for Underground Economy Violations
http://eastcountytoday.net/contra-costa-employer-fraud-task-forces-targets-residential-home-industry-for-underground-economy-violations/

==========
“no-poaching”
http://www.forbes.com/sites/timworstall/2014/08/09/apple-google-intel-their-wage-cartel-settlement-shot-down-bu-judge-lucy-koh/

#157 Keith on 10.18.14 at 11:10 pm

@137 Valkyrie Absolutely correct. It would change the world if Canadians went to Haida Gwaii and saw such a natural pristine west coast temperate rain forest. Recent underwater evidence dates the Haida presence back 14,000 years. The people belonged to the land, not vice versa.

#158 WhiteKat on 10.19.14 at 12:22 am

@CatoTheElder,

Despite your relative youth, and occasional grammar slip-ups, for the most part, I agree with your messages.

Of course, most people here, think I am a troll, with a chip on her shoulders…. They don’t realize that there is a much bigger message that I am trying to relay, and that my persistence does not come solely or even mostly from self-concern. It is not that hard to avoid FATCA in Canada currently anyway, and get on with one’s life if one shuts oneself off from the human rights abuse that it represents and codifies in law. I cannot do this.

First they came for the Socialists, and I did not speak out—
Because I was not a Socialist.

Then they came for the Trade Unionists, and I did not speak out—
Because I was not a Trade Unionist.

Then they came for the Jews, and I did not speak out—
Because I was not a Jew.

Then they came for me—and there was no one left to speak for me.

Friedrich Gustav Emil Martin Niemöller

#159 AB Boxster on 10.19.14 at 1:19 am

nd, #145 Cato

The corporation is psychopathic.
It has no goal other than profit, growth, greed and power.
Legally it may be a ‘person’ but in actuality it has no morals, no obligation to people, community and society.
It is free to break any law it wants, a perpetrate any fraud it can and it will never go to jail, unlike real people.
It does nothing without a motive of profit or gain.
Nobody who places any value on values that matter to real people (honesty, integrity, altruism, family, compassion, fairness, kindness, caring, safety, sharing, responsibility, accountability, equity) in short, all of the things that corporations don’t give a rat’s @zz about, believes a massive corporate state will do anything to enhance the human condition.

The perfect and free market devoid of any regulation does not exist
anywhere and never will.
And believing that societies and communities of real people that have totally opposite and in many cases conflicting values to the corporation, can somehow be enhanced by letting the ‘pretend person’ (ie the psychopathic corporation) act with no regulation, makes no sense.

#160 alex grant on 10.19.14 at 1:51 am

#119 Jonah

As Canadians, we should stay away from path of US, why should we follow a doomed nation?

Canada has been following its “mother country” for over 200 years and it has never really gone anywhere in the world so maybe a bit of drive, energy and vigour will change its chances of becoming even a small power on the world stage. Also, and more to your point, we’ll have a better chance of surviving an entity like ISIL as allies of the US because we’re not going to do it on our own.

#161 Casual Observer on 10.19.14 at 2:09 am

#131 Cato the Elder on 10.18.14 at 5:37 pm

Haven’t you noticed that all the major industries in Canada are dominated by a small group of 4-5 companies? This is BY DESIGN. It’s not something that would exist naturally for decades without some sort of protection in place.

Throughout your posts you make the argument that business should be able to operate un-obstructed, without rules and regulations to get in the way, and that will bring about competition.

History has shown that when rules and regulations are weak or non-existent, companies will naturally try to create monopolies by eliminating their competition through consolidation.

There were not many rules and regulations governing business during the late 1800’s and early 1900’s, and that’s what was happening in the US.

The response was antitrust legislation.

[trust]… in the late 19th century the word was commonly used to denote big business. Large manufacturing conglomerates emerged in great numbers in the 1880s and 1890s…

…at this time hundreds of small short-line railroads were being bought up and consolidated into giant systems…

Advocates of strong antitrust laws argued the American economy to be successful requires free competition and the opportunity for individual Americans to build their own businesses…

Congress passed the Sherman Antitrust Act almost unanimously in 1890, and it remains the core of antitrust policy. The Act makes it illegal to try to restrain trade or to form a monopoly.

http://en.wikipedia.org/wiki/United_States_antitrust_law

#162 Battler519 on 10.19.14 at 2:46 am

#66
Why would it crash, unless the economy does? — Garth

The economy is a disaster when viewed from the most average stiff’s perspective. Jobs stink and raises are non existent. The stock market is not the economy. Home equity is and it’s got to be almost blown…
Global markets are deflating in tandem with QE reductions.
Regards.

#163 MarmotManor on 10.19.14 at 8:01 am

Most of us are fine till 2016 – then unless your debt free, and/or in undervalued real assets (eg non bubble priced), you will be screwed by GFC2.

Paper assets – very bad idea

Waiting for a GFF2 – very bad idea. — Garth

#164 Dr. Wu on 10.19.14 at 8:08 am

The facts:
Canada commits $30-million more to fight against Ebola

Dr. Leonard G. Horowitz, claims the 2014 Ebola “outbreak” smacks of scientific fraud and commercial crime.

vimeo.com/103031859

#165 Retired Boomer - WI on 10.19.14 at 9:18 am

What is missing in today’s US economy?

A lack of determination on the part of government to stop corporations, banks etc from committing perpetual “frauds” and “antitrust mergers” with little chance of being prosecuted.

How many bankers (not banks) have been prosecuted for the actions leading up to the GFC? NONE by the FEDS.

What is amazing to me, if one gets away with illegal behaviors once, they will try it again, only on a bigger scale
the next time. prosecute the Bankers and remove them from the system. There are honest people to replace them.

Not being vigilant here only assures a repeat performance later by much the same group.

The Tax Payers pay again!

#166 Herb on 10.19.14 at 11:24 am

#160 Alex Grant,

… we’ll have a better chance of surviving an entity like ISIL as allies of the US because we’re not going to do it on our own.

With the fine analytical ability you show there, I have a couple of deals you would love! I know of a parcel of land in Florida that I warrant will be save from ISIL. I also have a line on a bridge in Brooklyn that would generate enough income to keep you absolutely safe anywhere in the world you would care to flee to.

#167 Herb on 10.19.14 at 11:35 am

“Why would we read a lefty anti-globalization, anti-capitalism, workers-unite web site? — Garth” (@ # 121)

Why, for balance and diversity, of course!

#168 Nemesis on 10.19.14 at 12:39 pm

#SillySunday #FunnyOldWorld #DuchyOfCornwallChoosesSides… #DeclaresWarOnTheGreys… #Bristol’sEdwardian’VelvetUnderground’… #Or,IsThatAGiantSquirrelInYourLoo?

[UK Guardian] – Prince Charles orders grey squirrel cull on duchy estate

…”A spokesman for Prince Charles said: “The red squirrel is a most cherished and iconic national species, and, as patron of the Red Squirrel Survival Trust, the Prince of Wales keenly supports all efforts to conserve and promote their diminishing numbers.

“Where appropriate, this includes the humane and lawful control of grey squirrels…”…

http://www.theguardian.com/environment/2014/oct/19/prince-charles-grey-squirrel-cull

[BBC] – Giant genitalia exhibited in former Bristol toilets

…”While being photographed with the sculptures participants will be free to pose, sit and engage with each sculpture in whatever way they like.”…

http://www.bbc.com/news/uk-england-bristol-29641990

[NoteToGT: Just between the two of us, I say, “BravoBristol!”… whose beleaguered citizens may now experience Gargantuan {Insert Your Favourite Vulgar GenitalEuphemism here} without undertaking the expense and bother of visiting Westminster.]

#169 SRV on 10.19.14 at 3:22 pm

So, all fixed now… lol!

Seems you missed part where the OTC NYSE (where all the retail buyers are) shut down for much of the day, leaving no volume for the bank programed bots to go to work… and the reliable Fed mouthpiece Bullard coming out with the “we may have to delay the end of QE” propaganda.

http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/10/20141017_rufriggingkiddingme.jpg

And for a look at the action taken after Black Monday /87… Oh look, Fed Jawboning and exchanges suspend trading… hmmmm!

http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/10/20141017_19871.jpg

#170 STEVE on 10.19.14 at 5:20 pm

#139 WhiteKat on 10.18.14 at 8:03 pm
@Cato the Elder,

Your education level is apparent when you use the non-word, ‘anyways’. I doubt ‘anyways’ was a typo (god knows I am the queen of typos).

The use of ‘anyways’ whether in written or oral communication immediately forms a negative impression for many who have at least more than a high school education…just ‘sayin’.

However, having said that, and in the process of raising three children, it never ceases to amaze me, how poor is the grammar of the average grade school teacher. LOL…was that sentence even grammatically correct? My bad!

WHY DON’T YOU GO BACK TO YOUR CAVE.
NO ONE IS INTERESTED IN YOUR EMPTY POMPOUS DELUSIONAL DIATRIBE ANYWAYS……LOL

#171 STEVE on 10.19.14 at 5:36 pm

#154 kommykim on 10.18.14 at 10:40 pm
RE: #132 crowdedelevatorfartz on 10.18.14 at 6:35 pm
@#130 Steve
‘A” uneducated redneck or “AN” uneducated redneck.
+++++++++++++++++++++++++++++++++++
Good one. I totally missed that. lol
#150 45north on 10.18.14 at 9:27 pm

That makes 3 self identified rednecks so far.
Keep ‘em coming.

POOR KOMMYKIM,AREN’T YOU.
BTW – YOU SOUND LIKE A REGULAR COMMY KIM …LOL

#172 sideline sitter on 10.19.14 at 9:39 pm

#38 – Nemisis… alas, I was in Turks + Caicos.

We really need to make that a Canadian territory!

#173 Doug in London on 10.21.14 at 12:25 pm

I’m disappointed, all those sales in the stock market are gone or disappearing rapidly. Correction? What correction?