Darwin

SELFIE modified

Let’s irritate the millennials more. It’s fun. They’re so cute and defenceless. Like baby skunks.

Almost nine million people born yesterday (between 1981 and 2000) which is roughly equal to the number of wrinkly Boomers. Incredibly, half of the M-people still live with their parents, and about a million of them who could work, don’t. Six years ago, the number living at home was just a third. Go figure.

Millennials account for about 20% of all income earned in Canada, while the Boomers, many of whom are now at the end of their piteous careers, constitute 30% and their kids (Gen X) who are in mid-career, represent 46% of all earnings. Of course, this last group – saddled with houses, kids, dogs and SUVs – also spend hugely.

Well, so what?

Hmm. This is an ugly demographic mix for the little skunks. I hope their moms are teaching them to forage, and hide their nuts.

Our social system – much of the economy, in fact – is based on working people supporting old wheezers. Today there are four-and-a-half workers for every senior. So, the Boomers never have to worry about their CPP or OAS or health care. But when the average 25-year-old millennial is 65, there will be just two people with a job for every retiree. Oops.

This is because our population’s aging quickly. Like Japan’s. Within twenty years a quarter of the nation will be collecting OAS – that’s $4,000,000,000 a year (four billion) in pogey. CPP payments add another six billion, but that program should still be self-funding two decades from now. Forty years out, I’m not so sure.

The implications should be obvious, but aren’t to most millennials, 70% of whom have smart phones but no savings. For starters, real estate is demographically doomed. With an aging population in financially strapped times, demand and prices are destined to fall. Survey after survey of Boomers (most of whom are in denial) already show between a third and half understand they’ll have to downsize their property in order to raise cash for living expenses.

That only makes sense. Over 70% don’t have defined-benefit corporate pensions, and have saved a quarter of what will be needed to survive 25 years without working. They’re house-rich and financial asset-poor, not to mention unbalanced, non-diversified and potentially illiquid. The big need in the years to come will be income, not enough garage for two minivans.

So, the current millennial fixation for real estate, as we ridiculed yesterday, is beyond dumb. These kids are buying into a mindset which will facilitate a giant transfer of wealth from them to their parents. The wrinklies end up with the cash. The kids get the debt – pledged against assets likely to fall in value as rates inevitably rise. Double screwed.

Second, the whole system of social transfers could be threatened by the time the millennials are lining up for metal hips and plastic hearts. Today, when there are twice as many taxpayers and half the dependents that will exist in forty years, we already have a persistent federal operating deficit, and an accumulated government debt (the feds, provinces and cities) of $4.1 trillion. That’s about $245,000 for each of us. And these are the good old days. Every year more than $60 billion in taxes goes to pay interest in this debt – so imagine what happens when rates drift higher over the decades ahead.

So, yes, the millennials would be fools to expect their lives to unfold as carbon copies of their parents’. No profligate hippiedom, no finding-myself-in-Europe, no sha-na-nah for them. This is Darwin, baby. And you’d best know that now.

Some months ago I gave you a Millennial Portfolio. It was met with thunderous neglect. So let’s try again.

First, the investment vehicle of choice for all the kids should be the TFSA. Forget RRSPs for now, because they’ll end up being tax bombs you deeply regret in a few decades, when taxation rates are inevitably higher. You may not get a break for making a TFSA contribution, but you’ll pay nothing on the growth or any withdrawal.

Second, these savings accounts are not for savings. Get out of the bank or the orange marmalade outfit and into a place where you can hold a bunch of low-cost ETFs – exchange-traded funds. Divide your money into five piles and buy a fund holding the TSX 60, another containing the S&P 500, one with a basket or preferreds, one comprised of a bundle of REITs and the last containing a good mix of bonds. Now you have balance, diversity and liquidity.

If you start with five grand and add that much in a year, securing just a 6% annual return (assuming a slow-growth world), in thirty years the balance will be $494,000, of which almost $300,000 would be tax-free growth. That’s half a million in taxless wealth, all for contributing $100 a week.

Or, you could buy a condo for $400,000, with a $390,000 mortgage, pay twice the amount per month that a renter does, and end up losing all your equity. In a vaguely deflating world populated with annoying and condescending old people who won’t give you money even though you’re special, why would you?

Ask your phone. There’s an app for that.

162 comments ↓

#1 Derek R on 10.21.14 at 6:29 pm

A lot of the Millennials may be in trouble. But not all. My own rugrats hold on to a penny far harder than I ever did at that age. And they have the “renting is cheaper than buying” meme down pat.

So they can be taught!

#2 CalgaryRocks on 10.21.14 at 6:29 pm

In thirty years you may be able to afford a used Kia with your lousy 400K.

Stop thinking like your mom. Inflation is not the threat. — Garth

#3 475 Days on 10.21.14 at 6:35 pm

Garth said:

“For starters, real estate is demographically doomed. With an aging population in financially strapped times, demand and prices are destined to fall. Survey after survey of Boomers (most of whom are in denial) already show between a third and half understand they’ll have to downsize their property in order to raise cash for living expenses.”

Here’s something else, something big, that denial won’t overcome. This will hit just enough retiring boomers that it will take away any remaining hope for a real estate recovery after 2016.

Some 69% in this poll just released indicate that health issues greatly interfered with their planned retirement age.

Good luck to all those who think they can carry consumer debt into their sixties (and later) and just keep working, never having to face a day of real estate/debt reckoning.

‘ “Our research shows that Canadians who are not financially prepared to retire typically say they will work longer to compensate, but unfortunately, they may not have that choice,” Sun Life Financial Canada president Kevin Dougherty said. ‘

http://www.theglobeandmail.com/globe-investor/personal-finance/retirement-rrsps/health-issues-force-many-into-early-retirement-new-study-finds/article21169921/

#4 Andrew on 10.21.14 at 6:35 pm

You say four piles but list five things, or did I read that wrong? Are the piles supposed to be equal portions? (25% or 20% each, depending on the reading).

Is this your version of green M&M’s to see if we’re really reading?

#5 Adrian on 10.21.14 at 6:37 pm

Let’s not forget all these kids are graduating from university with massive debt, and little chance of securing a decent paying job.

Won’t be easy saving even $100 a week under those circumstances. Who’s going to set an example for them? Their parents who have been gorging on debt their entire lives? Right… Unless there is a major shift, credit is all they will know.

#6 calgaryPhantom on 10.21.14 at 6:43 pm

Being the M generation i would like to mention that not all are alike. Well, not all read your blog, so that is understandable.

BTW, what do you think about the liquidity situation of equity market? I read a couple of articles stating that stock market is running out of liquidity and there is not much room in next year or so. Any comments?

#7 RTARL on 10.21.14 at 6:53 pm

Wages have been stagnant for 30 years versus the cost of living, debt is high from education, real estate is tremendously expensive but nothing is more depressing than seeing those your age living at home until 27 to buy a condo. Not even depression week on this blog is as sad as watching friends give away the majority of their twenties just to financially cripple themselves. I never stayed long at those house warming parties.

#8 dernbiebs on 10.21.14 at 6:54 pm

If I’m able to max out my TFSA each year, and still have more money to invest should I then consider RRSP contributions or should I invest in a non-registered account?

#9 Catalyst on 10.21.14 at 6:55 pm

The present value of $500,000 in 40 periods at 7% is $33,000.

That cat food is looking pretty tasty!

Another note, no one can foresee 40 years from now. Look back 40 years, we had no internet, looming nuclear holocaust. Focus on the near term, and save a bit when you can.

#10 raisemyrent on 10.21.14 at 6:59 pm

haha calgaryrocks, if inflation were to be that bad, then it would be a lot more than 400k in that account (why would only KIAs go up?). One thing I do predict, is that by then, KIA will be more of a household name than what some people (wrongly) call ‘domestic’.

On another note, I guess I’m a Millenial by the above definition (1984). But I only do get some of the thoughts/attitudes sometimes, mostly when I want to rebel or throw my toys out of the pram. Mature people don’t do that, so it comes rarely. That said, I have friends born on the same year who are currently unemployed with a mortgage but are the ‘masters of their own life’. Most of my friends, though, have millennial days/rants and Gen X jobs. They like to complain but they contribute wealth and value to this society. Some of them don’t have facebook. Most don’t have a pension. Everyone has a university degree. No one has a mortgage. No one has kids. Everyone lives in Vancouver.
I guess my point is that there is a lost generation in between X and Y/Mills who doesn’t know whom to emulate half the time (not that it’s really a conscious act).

#11 Vandamncouver on 10.21.14 at 7:07 pm

A lot of millenials like myself are desperate for good work, but to be honest it’s a little thin out there. I have a 4 year honours degree in philosophy that’s not worth the paper it’s printed on (thanks mom). The only advice I get is “move to Alberta,” which seems like an early death.

Big demand for philosophers in Alberta. — Garth

#12 Anson on 10.21.14 at 7:07 pm

When I recently went back to college, I was surprised to see the majority of my classmates who were mostly millenials comming to class with a daily coffee and a muffin or breakfast sandwich.
Additionally and this is no exageration about 75% also purchased lunch from the cafateria DAILY.
……Times have changed people are very wasteful now……

#13 TEMPORARY® Foreign Prime Minister on 10.21.14 at 7:10 pm

Back in my high school days, you were nobody unless you took Calculus, Relations and Functions, and Statistics in your final year, all three of which have become totally useless in my current life (along with 95% of the rest of the population as well).

Consumer Math was for losers, teaching such a irrelevant concepts as home budgeting, banking, mortgages, insurance, basic stock market principles, and income tax preparation.

Sad to see nothing has changed…. just the way the Big Five like it.

#14 Paul Tudor on 10.21.14 at 7:11 pm

Great advice here…. Buy S&P 500 within a TFSA ?

*15% withholding tax* cough * cough*

In C$ of course. — Garth

#15 Vandamncouver on 10.21.14 at 7:11 pm

Big demand for philosophers in Alberta. — Garth

Don’t kick me while I’m down or anything…..

#16 visorman30 on 10.21.14 at 7:13 pm

Tough enough to have boomers think 10 years ahead let alone anyone younger over a much longer time frame.

While I do work at the gov’t with a defined benefit plan my concern is that by the time I can retire it will be totally gutted. So why am I paying so much of my income? Add to that, I can’t really choose to not contribute at work and I feel I could do better self-directing in a balanced and diversified low cost portfolio.

#17 Paul Tudor on 10.21.14 at 7:20 pm

Hedging into CAD doesnt change which country the profits were earned in.

You can escape by claiming the foreign tax credit in a taxable account. In a TFSA this is a minor drag. — Garth

#18 batt519 on 10.21.14 at 7:21 pm

Did you down a magnum of pinot noir with dinner this evening?
My suicide portfolio seems sane when you consider the QE, or whatever the new one will be called, that will be required to re-liquify the system and jump start the SPYs & DIAs to resume their unsustainable uptrend…
Gold looks better now than it did in ’01. Now we’ve got the Russian, Chinese, Indians and yes the Swiss wanting large quantities because they see how undervalued it is…
We are Canadian, our TFSAs should have some quality small cap explorers and miners in it, especially if you’re younger.

#19 Greg Franklin on 10.21.14 at 7:32 pm

Everywhere on the radio there is many shows talking about bail-ins when things get worse.

Garth, are you really sure that bank, credit union, trust company deposits will be not be impacted within CDIC and other deposit insurance limits.

Also, are you really sure that government and corporate bonds, common shares, preferred shares etc. will not be bailed in either.

What about insurance companies where many have annuities, life insurance policies, health coverage policies etc. will not be impacted within Assuris limits.

It seems that those that are managing and responsible for the financial system and industry are nudging in this direction.

It just seems an excuse to take people’s money and making it look normal.

Conspiracy theory drivel. No bail-ins coming. — Garth

#20 Godth on 10.21.14 at 7:39 pm

“The implications should be obvious, but aren’t to most”

The implications from the minimal sketch you described are obvious…that which can’t continue won’t.

Throw in a few more wars, environmental degradation, not to mention that we’re ripe for some disease to cull the herd significantly – I don’t think the millennials will be collecting a pension at all. I’ll be surprised if Gen-X collects either. They’re more likely to be head down, ass up subsistence farming until they become worm food.

#21 Daisy Mae on 10.21.14 at 7:42 pm

“Almost nine million people born yesterday (between 1981 and 2000) which is roughly equal to the number of wrinkly Boomers.”

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

Interesting….so this means the Millennials will be a royal pain in the butt for those who come after? So while they complain about the present ‘wrinkles’ future generations will be complaining about them? LOL

#22 Piccaso on 10.21.14 at 7:46 pm

Today there are four-and-a-half workers for every senior. So, the Boomers never have to worry about their CPP or OAS or health care. But when the average 25-year-old millennial is 65, there will be just two people with a job for every retiree. Oops.

……………………………………………………………………….

That’s why the heavy immigration and why old white folks (boomers) feel like there a minority.

Ha Ha…. get’s used to it because you are on the way out and not to be replaced.

Immigration is 0.8% of the population annually, is not heavy and has not increased. However, replacing you does have merit. — Garth

#23 the Jaguar on 10.21.14 at 7:52 pm

Vandamcouver #11 & #15. First he blames his mom, and then he blames Garth. Guess someone put a gun to your head and made you study in that field.
Here’s a new concept for you : own your actions.

#24 joblo on 10.21.14 at 7:53 pm

Gen X,Y,Z, AA, BB, etc. your all being screwed
Wake up, your being sold a bill of goods & your buying
Kanada currently is a mere hospice,
You gonna just sit and watch the the place implode.
Pay attention to the Geopolitical situation
Seek change and You may have have a chance.
All the best!

#25 Strider on 10.21.14 at 7:59 pm

Millennials who are beginning to save for retirement should consider using TD e-Series mutual funds rather than ETFs. If a young person has a small account and contributes regularly, the trading commissions ($5-$10 per trade) on the ETFs could quickly overwhelm the benefit of the low-cost ETFs.

As a Millennial who has both the e-Series mutual funds for my RRSP and a TFSA filled with ETFs at a discount brokerage, I can say that the e-Series funds have a lot to offer. They may have moderately higher fees but there are no trading commissions and you get automatic reinvestment of dividends. While mutual funds have a bad rap, the e-Series funds are worth a look for Millennials who are just starting their retirement savings journey.

#26 Daisy Mae on 10.21.14 at 8:00 pm

# Calgary: “I read a couple of articles stating that stock market is running out of liquidity and there is not much room in next year or so. Any comments?”

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

Yeah…good grief, such stupidity.

#27 Paul on 10.21.14 at 8:06 pm

This was Toronto Life magazine March 2008 and the beat goes on. For a while anyway.

http://www.torontolife.com/magazine/2008/3/

#28 Daisy Mae on 10.21.14 at 8:07 pm

#11 Vandamncouver: “A lot of millennials like myself are desperate for good work, but to be honest it’s a little thin out there. I have a 4 year honours degree in philosophy that’s not worth the paper it’s printed on (thanks mom).”

Big demand for philosophers in Alberta. — Garth

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

Better rethink your strategy.

#29 Godth on 10.21.14 at 8:09 pm

#24 joblo
What Geopolitical situation? The American empire, that consumes 25% of the world oil and over 30% of everything else, coming apart as we slide down the backside of the Hubbert curve?

Or do you mean all the cheap credit instruments (that replaced the cheap oil) falling back towards earth (eventually)?

#30 Retired Boomer - WI on 10.21.14 at 8:09 pm

Amazing what goes around, comes around. Every generation IS a new creation, and is somewhat different from the one before it. My grandparents (2 where dead before I was here) the other 2 hit room temp before my 10th birthday, had larger families. When they were born the life expectancy was 49. My parents generation b 1910 and 1915 respectively (flappers??) had large families too, but they tended to live longer. Boomers had fewer children, Gen X, Y, millennial’s fewer yet.
Demographics is destiny. If you want a secure retirement (possibly ANY retirement) plan it yourself.

Here in the US, I believe we will see social security reduced to 75% of what it currently pays out. That will happen in about 20 years when the “trust fund” bonds are spent. Since Geezers vote, and though I doubt I’ll be there to squawk in 20 years, some boomer, or Gen X person will be my stand-in. Elected officials tend to fear voters, especially ones they know will throw them out of office!

Young people tend not to vote as great a % as Geezers, so who are the politicians more likely to support? Squeeze the geese here, they have the money, and the vote power!

sorry guys, like I said demographics IS destiny.

Housing in 5-10 years a really different story too, just watch it fall in value. cue the funeral parlor, I need that free estimate!

#31 Son of Ponzi on 10.21.14 at 8:11 pm

#13 TEMPORARY® Foreign Prime Minister on 10.21.14 at 7:10 pm
Back in my high school days, you were nobody unless you took Calculus, Relations and Functions, and Statistics in your final year, all three of which have become totally useless in my current life (along with 95% of the rest of the population as well).

Consumer Math was for losers, teaching such a irrelevant concepts as home budgeting, banking, mortgages, insurance, basic stock market principles, and income tax preparation.
———————
Good luck, finding a cure for Ebola using “Consumer Math”.

#32 bob on 10.21.14 at 8:12 pm

As a millenial who has a RRSP, what do you recommend? Should I withdraw, take the hit and do TFSA?

#33 Adam Smith on 10.21.14 at 8:13 pm

I’m a fairly young guy who has pretty financially prudent parents who taught me fairly well. I rent with good friends, stick $300-400 bucks away into some diverse ETFs in my TFSA every month and will be graduating from my masters degree without a cent of debt this year. So I think I’ll be okay if I continue enjoying only cheap hobbies and drugs.

That said, I suspect we’re heading towards some pretty tricky times. Wealth is simply getting too concentrated to support consumer spending. Basically every country and the majority of citizens in every country are in huge debt. Businesses are having trouble finding profitable investing areas since the demand is so low that it’s better to just sit on the cash. We may not wind up with a Great Depression but I suspect we’re still gonna eventually have to wind up with a new New Deal.

#34 Daisy Mae on 10.21.14 at 8:13 pm

#12 Anson: “When I recently went back to college, I was surprised to see the majority of my classmates who were mostly millennials coming to class with a daily coffee and a muffin or breakfast sandwich. Additionally and this is no exaggeration about 75% also purchased lunch from the cafeteria DAILY. Times have changed people are very wasteful now…”

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

We’ll go full circle…and the Millennials will learn. The hard way…as usual. Works every time!

#35 TEMPORARY® Foreign Prime Minister on 10.21.14 at 8:13 pm

Ever been ‘marooned’ in Toronto’s Pearson airport lately?

Gone are the CIBC single-pulpit double-preachers in favour of much more overwhelming CIBC coliseum-like jumbotron LCD displays beaming out electron particle guilt trips concerning one’s lack of spousal appreciation by not having a current CIBC 0% above-bank-prime HELOC.

debt, Debt, DEBT !!! Longer lasting than Viagra !

(Disclaimer: current low interest rates are no guarantee of future low interest rates. Do not use HELOC if you are experiencing engagement, pregnancy, divorce, unemployment, bankruptcy, foreclosure, depression, or assisted suicide. Results may vary.)

#36 Andrew Woburn on 10.21.14 at 8:19 pm

#11 Vandamncouver on 10.21.14 at 7:07 pm
A lot of millenials like myself are desperate for good work, but to be honest it’s a little thin out there. I have a 4 year honours degree in philosophy that’s not worth the paper it’s printed on
=======================

Education was the first thing post war governments inflated, long before they “helped” with real estate financing. In 1950 I doubt that more than 4% of the population went to university. They were either academically gifted or had rich parents. It is not surprising that most of them got good jobs. The rest of the lumpenproletariat had to learn to do something that people would actually pay for.

Then the powers that be concluded that pumping out B.A.’s would produce prosperity so here you are today. Maybe you could open a philosophy shop.

#37 Freedom First on 10.21.14 at 8:22 pm

Thanks for your blog and all of the sound advice delivered daily (6 days) with such entertaining wit Garth.

People do have choices to make in their lives and every choice will also affect their finances. With every choice comes consequences, be they good or bad. No exception, as excuses at any age are irrelevant. Choose wisely. I always put my freedom first.

#38 Basement dweller on 10.21.14 at 8:27 pm

I understand there will be
A massive transfere of wealth the largest
This country has ever seen when the baby boomers die

The 30-40 year olds will be benefiting

#39 Son of Ponzi on 10.21.14 at 8:31 pm

Vandamncouver,
Chicks like Philosophers.
Trust me I know.
The most boring guys are the ones who brag about how much they’re making and peppering their conversations with such intellectual bonbons such as “buy low, sell high”.

#40 Greg Franklin on 10.21.14 at 8:31 pm

Garth, I hope you are right but it seems we are at their mercy.

It makes people lose trust and become suspicious when other parts around the world have experienced some really bad economic and financial losses since 2000.

Throughout history when things get bad, war creeps up and then everyone loses sight of what happened in the first place.

#41 Andrew Woburn on 10.21.14 at 8:32 pm

But when the average 25-year-old millennial is 65, there will be just two people with a job for every retiree. Oops.
==============================

This may be very optimistic. First of all, there is the looming issue of automation. Secondly, how long will it be before somebody markets an effective male contraceptive pill?

Maybe every newborn is eagerly anticipated by an adoring dad or maybe there are many more unplanned fatherhoods than men will admit. A male contraceptive will definitively answer this question. My guess is the drop in birth rates will be significant.

#42 Son of Ponzi on 10.21.14 at 8:37 pm

#36
Then the powers that be concluded that pumping out B.A.’s would produce prosperity so here you are today. Maybe you could open a philosophy shop.
—————-
Actually, I was the MBA programs that sprouted in the early 80s that did the damage.
That’s what happens when you see everything in fiscal terms.
Most people, at least still know who Aristotle and Socrates were.
Warren Buffet will be forgotten as soon as he’s dead.

#43 james on 10.21.14 at 8:42 pm

#15

” I have a 4 year honours degree in philosophy that’s not worth the paper it’s printed on (thanks mom).”

Not quite true. I have a degree in the humanities, and I have friends with similar degrees. Most of my friends who are philosophy grads are outearning the ones with backgrounds in STEM, for the precise reason that they went to law school afterward.

A proper (rigorous) humanities degree is actually very useful, when combined with other education. I’d say writing ability, critical thinking are always useful skills that STEM graduates almost never possess. However, you have to do a proper BA and not something like ‘critical race theory’ or ‘literary criticism’. The humanities are the core of western education, after all.

In your case, what can you do to augment that background with something more practical? (Note that you won’t need writing ability if you are out to become a driver in the tar sands).

#44 Son of Ponzi on 10.21.14 at 8:44 pm

I too took philosophy classes in my early student years.
And then switched to the more “secure” financial management field.
Biggest regret:
Not having studied advanced Calculus.
It is, after all, the language of God.

#45 Financial Freedom at 40 on 10.21.14 at 8:59 pm

#11 Vandamncouver: “A lot of millennials like myself are desperate for good work, but to be honest it’s a little thin out there. I have a 4 year honours degree in philosophy that’s not worth the paper it’s printed on (thanks mom).”

Bachelors of Underwater Basket weaving is so you can study something you are actually interested in, or that’s comparatively ‘easy’, so you can get top marks of course.

Now go hit the books and study hard for that MCAT, LSAT or GMAT test, or useful professional designation.

You’re only half way there… you’ve learned how to think and solve problems, while giving yourself time to mature… now the next stage begins.

Sometimes mom knows a thing or two.

#46 TO Renter on 10.21.14 at 9:06 pm

#32 bob
As a millenial who has a RRSP, what do you recommend? Should I withdraw, take the hit and do TFSA?
——-
In general, contribute to your RRSP in your high income years and take the tax refund and deposit it directly into your TFSA.

More specifically, do the math based on your variables.
https://www.retirementadvisor.ca/retadv/apps/tfsaRrsp/tfsaRrsp_inputs.jsp?toolsSubMenu=preRet

#47 Paul on 10.21.14 at 9:14 pm

The Americans are coming Yea.
On second thought Na, I guess they get it!

http://www.theglobeandmail.com/report-on-business/economy/housing/the-real-estate-beat/too-many-flippers-scared-big-us-home-builder-away-from-toronto/article21085209/

#48 Cici on 10.21.14 at 9:24 pm

Hilarious post, but highly resourceful too.

I hope the youngins are smart enough to realize that if they listen to your tongue-and-cheek comments, they’ll be compensated handsomely for the damage done to their fragile little egos. Us Gen-Xers may not be so lucky; we have too much stuff and less time on our sides.

Of course, I don’t think they should expect at least 6% growth every single year; they’ve got to understand that volatility is part of the game, and that they’ll have to hang in and ride the red waves as they come if they want long-term future gains.

Easier said than done for a generation that’s been brainwashed to relentlessly click on buttons and panic if wealth or the appearance thereof is not instantaneous and pain-free.

#49 Ben on 10.21.14 at 9:27 pm

Old people grouse about profligate kids not making their own sandwiches.

Did the kids run up the huge public and private debt? No.

You mean the debt paying for the infrastructure you use? — Garth

#50 Nemesis on 10.21.14 at 9:29 pm

“Big demand for philosophers in Alberta.” — Garth

Never mind, Vandamncouver… And forget Alberta… I have it on good authority that things are looking up down under…

http://youtu.be/_f_p0CgPeyA

#51 prairieboy43 on 10.21.14 at 9:42 pm

@ #11, Vandamncouver congratulations you finished your degree with honors. That is diffucult to do. 4+ years is a long time. I know did the same. I was a ” starving student”. Eating Oatmeal, for breakfast and K. D. For dinner. Only 2 students from my graduation class recieved jobs on graduation. Job prospects were bleak.
Made a decision. I need to survive. Drove to AB with resume. Started pounding doors in Calgary and Nisku. Was on a plane to the Arctic one week later. The story is get out of your comfort zone, start living. Twenty five years goes fast.
Your degree, will help you. It shows that you can finish, and think logically ( a big asset) .
Cheers

#52 Happy Renting on 10.21.14 at 9:44 pm

#11 Vandamncouver on 10.21.14 at 7:07 pm

Our Snowflake Generation was sold the idea that a university degree would guarantee us dignified, prestigious, interesting careers. This is a huge mental hurdle to overcome. The reality is you need to bust your ass doing whatever someone finds useful enough to pay you for (I recommend sticking to legal activities, though there are some colourful options out there.) Eventually, you can either advance far up enough the ladder or amass enough personal wealth to get the dignified and prestigious part.

Philosophy degree? You have logic and critical thinking skills to help you reason through your problems and find a solution. It’s not a wasted degree if it taught you how to problem-solve and think.

#53 GarthsETFList on 10.21.14 at 9:45 pm

(a) the S&P 500,

XSP iShares Core S&P 500 Index ETF (CAD- Hedged)

(b) the TSX 60,

XIU iShares S&P/TSX 60 Index ETF

(c) a basket of preferred shares,

CPD iShares S&P/TSX Canadian Preferred Share Index
ETF

(d) real estate investment trusts and

XRE iShares S&P/TSX Capped REIT Index ETF

(e) a Canadian bond index.

XCB iShares Canadian Corporate Bond Index ETF

#54 joblo on 10.21.14 at 9:54 pm

Godth on 10.21.14 at 8:09 pm
What Geopolitical situation? The American empire, that consumes 25% of the world oil and over 30% of everything else, coming apart as we slide down the backside of the Hubbert curve?

That’s a big part of it. Saudi, Syria, Libya, Assad, Isis, Russia, China, currency wars etc.
The game goes on.

#55 kommykim on 10.21.14 at 9:54 pm

RE: #17 Paul Tudor on 10.21.14 at 7:20 pm
Hedging into CAD doesnt change which country the profits were earned in.
You can escape by claiming the foreign tax credit in a taxable account. In a TFSA this is a minor drag. — Garth

Or stick the US portion in your RRSP and avoid the paperwork. The US recognizes the RRSP as a tax shelter with a reciprocal tax agreement, but alas, not the TFSA.

#56 Francis on 10.21.14 at 9:54 pm

This millennial is forever thankful.

#57 Sam on 10.21.14 at 9:56 pm

Wife and I both born in ’86 and things are going well. Both moved out at 18 to head to University. Graduated with ~$30k in student loans each in ’09 when jobs dried up. After some unemployment, we finally got decent jobs (~50k/yr). Now loans are paid off and we have about $150k saved up. Neither of us came from money so of course, it took hard work and discipline. Had a modest wedding, always rented, no brand new cars… Didn’t suffer either though. I still travelled Europe in Uni, our 2 week honeymoon was overseas, I had adventures driving across the country, picked up a motorcycle habit one year, both have reliable vehicles…

We recently decided to lose our DINK status. We dropped one income, had two kids and plan on another. Doing our part to help future demographics I guess. Still topping up TFSAs though.

Enjoy the important things in life. Best bang for your buck. Debt free and mobility mean freedom which is priceless.

Found this blog and been building our diversified portfolio this year. Wish I bought a lot more Canadian Equities last week before they started going back up. Hope for a bigger correction real soon.

For long term investors, remember the developed world had ~80% of world’s wealth before the crash; by 2050, this will drop to ~35%. At least that’s what the World Bank president lectured some Ivy League business class somewhere. Long term, don’t undervalue emerging market investments.

Let the hating begin…

#58 Clio on 10.21.14 at 9:58 pm

Garth, What’s your view on the tangerine streetwise funds? I know you can get cheaper ETFs, but the 1% MER for hassle free and cost free rebalancing should make sense for smaller portfolios, no?

No. For 1% you should get an actual, qualified human to do the work, and advise you. — Garth

#59 Tony on 10.21.14 at 10:00 pm

Re: #6 calgaryPhantom on 10.21.14 at 6:43 pm

None on the TSX but plenty on the American exchanges. As long as you have a net worth of less than a few billion dollars liquidity isn’t a big concern.

#60 Herman Hesse on 10.21.14 at 10:02 pm

There will be a confrontation between the haves and the have nots in the near future. The millenials will become a political force for change and will attack the big civil service unions and claw back the wages pensions and perks which will have become entirely unaffordable.

The will not attack the CPP system..at least at first, because they will not have the finances to support aging parents and thier mortgages. The big unions like Unifor are the obvious targets to balance the national social obligations in the future. If the low hanging fruit like Unifor was a publicly traded stock it would be tops on my short list.

#61 Linda on 10.21.14 at 10:12 pm

Baby skunks can spray lightly at two weeks, are fully ‘armed’ by week 12. But like most babies they sure are cute.

#38 – this massive transfer of wealth notion. I’d not be holding my breath regarding that one. Some people will inherit loads of loot, true – in general, if you are born into the 1% demographic you are more than likely to inherit big time. However, the longer life that Boomers are likely to live will likely result in lots of time (& money spent) for long term care, unless they are able to keep their health right up to the day the Grim Reaper drops by. Plus as Garth notes an extended retirement can diminish most piles of loot by a considerable amount, especially if returns on said loot can’t offset most if not all of the withdrawals.

Add in the possibility that those with said loot might just decide to party while they are still able to & blow the lot on their lifestyle choices – or maybe lose a few cognitive connections & make financial decisions that can wipe out a bank balance faster than you can say ‘foreclosure’. Both more than possible, so don’t count your inheritance until it lands in your own bank account & hope that if it does arrive that the government isn’t there with a tax assessment ready to collect before you get what is left.

#62 Wow on 10.21.14 at 10:14 pm

There are a lot of people on here who would benefit from a proper financial advisor.

Investing is not overly complex but it is also not a hobby. There is a lot more to know than what you learn on Motley Fool. Once can fix their own car or write their own wills or even take out their own teeth.

That said, you get what you pay for. Before everyone flames me, take a lesson from people with real money, they ALL use a financial advisor.

#63 Wow on 10.21.14 at 10:14 pm

PS – Wow is not Garth or anyway affliated with Garth.

#64 lee on 10.21.14 at 10:14 pm

Garth,

I thought you said reits should be max 5-7 per cent of a portfolio. Why 20 per cent for Ms?

Also isn’t the 15 per cent withholding tax only charged on the dividend itself? If so, it’s negligible.

As the investment pot grows, you can add more diversification and underweight REITs from this opening position. Yes, US tax is inconsequential in this instance. — Garth

#65 Vangrrl on 10.21.14 at 10:15 pm

Er, yeah, that might be a good idea…

http://www.cbc.ca/news/business/cmhc-head-says-banks-should-share-risk-on-home-mortgages-1.2807765

#66 Ben on 10.21.14 at 10:20 pm

Garth

Most of the huge private debt is on a housing house of cards. I believe that’s the reason this blog exists. Plenty of the est is unfunded pensions. If by infrastructure you mean the pyramid scheme then yes it’s a beauty.

You’ve said it yourself – unsustainable fairy tail. Kids didn’t do this, time to man up and take responsibility.

#67 Tony on 10.21.14 at 10:21 pm

Re: #19 Greg Franklin on 10.21.14 at 7:32 pm

Don’t put any money in any credit union in Ontario or in British Columbia. They will be the first ones to fail and the province may remit nothing.

You still here? I thought you might slit your wrists when the markets rebounded. — Garth

#68 Linda on 10.21.14 at 10:23 pm

Garth, question regarding OAS – I’ve heard some say not to count on getting it. Clawback occurs for high income folks now & as the aged are a growth industry I’ve heard rumor that OAS clawback will apply for much lower income earners. As in, unless you also qualify for GIS you won’t qualify for OAS. Is there any truth in such rumor or is this just fear mongering to encourage people to invest with the help of various financial institutions?

There is no plan afoot (that I know of) to trim OAS. But of all the social programs, this is the one most likely to be 100% geared to income – and a much lower one. — Garth

#69 Sheane Wallace on 10.21.14 at 10:31 pm

negative interest rates stimulate spending and going deeper into debt.

positive real interest rates north of 6 % (the rates where 10-15 % in UK in 1992-1993) would stimulate savings.

It is central bankers fault, they screw with the markets, with the price of money (which is measured by the interest rates on debt) to simulate spending and then complain that people spend and do not save!

One must be crazy to save in this environment.
Not everyone understands investments.
And Yes, the inflation is the problem, to be precise the negative interest rates (8 out of the last 12 years – reference Stan Drukenmiller) and for many more years to come.

The generational theft is legalized and driven by the governments.

#70 Fiendish thingy on 10.21.14 at 10:33 pm

I think the young ones will get their revenge on us boomers, if they are patient. At some point, possibly soon, there will be a tipping point where the boomers who haven’t prepared for retirement will list their homes en masse to cash in for their golden years.
There will be more listings than greater fools willing to pay the bubbly prices, so the patient Millennials will be able to vultch from desparate wrinklies at prices they can afford and still save for a comfortable retirement.

Perhaps someone should start a blog for these opportunities, and call it the “lesser fool”

#71 Sheane Wallace on 10.21.14 at 10:36 pm

Stan Drukenmiller also has nice diagram showing how baby boomers have taken 300 k per person in transfer payments (meaning getting more in services in their lifetime than the taxes they paid by 300 k) while next generations (currently between 29 and 37) will pay 400 k more than they take.

It is gap of 700 k per person!

This is due to actions of past and current governments.
Fair? Hell no. But there are obligations to pay taxes…
as_long_as_the majority_complies
when we run out fo greater fools…

#72 Sheane Wallace on 10.21.14 at 10:37 pm

and we will run out of greater fools. then we would need to reconsider governments and their role in our life.

#73 WhiteKat on 10.21.14 at 10:40 pm

@vadamcouver #11

We needed a guy like you over at isaacbrocksociety.ca the last couple days while we were debating on the moral ethics of lying to the bank about where we were born. Canadians born in USA are to have their financial account details (balances, deposits, withdrawals etc) sent to to the IRS starting 2015.

Personally I have no problem lying about where I was born, since I would rather not risk subjecting myself to possible: identity theft, nasty letters from the IRS, bankrupting penalty assessments, an angry spouse for letting the kat out of the bag, etc. But some people have a real moral issue with lying even though they are panic stricken at the thought of being asked the dreaded ‘where were you born’ question.

On a positive note, our grassroots movement represented by the Alliance for the Defence of Canadian Sovereignty, adcs-adsc.ca just announced today that we’ve raised another $100,000 to support the lawsuit that has already been launched against the Canadian government for agreeing with USA’s demands to change Canadian laws to make discrimination against Canadians deemed ‘US persons’, legal in Canada.

This makes the total raised to date almost a quarter of a million dollars, by average Canadian citizens who care about the sovereignty of Canada, and the Charter rights and Freedoms of Canadians.

@Cato the Elder, this grassroots fights is a great example of the power and determination of the people to fight bad government. We do not all have our eyes closed. This battle is the financial version of the war of 1812-1815, happening 200 years later. We will beat back the Americans this time too (and take the CONS down with them).

We are Canadians! We won’t give up! The kids of the millennials will be reading about this in their school history books.

#74 Sheane Wallace on 10.21.14 at 10:49 pm

One should not learn how to investment in order to protect his/her labour from being stolen.

#75 Nomad on 10.21.14 at 10:52 pm

Stocks are quickly going back up. If this holds, last Wednesday was the ultimate money making day, if you had cash. Of course if you have a big mortgage you couldn’t take advantage of it.

Added more POW, BNS, TD, ZEO, MG, ACQ, AVO to my collection. Lovely little symbols.

I can’t believe how cheap I got Westjet and AirCanada, which got sold off while rotten news channels were repeating scary thoughts on TV.

Meanwhile my colleagues had to give their paychecks to the bank. That bank pays me dividends. They’re like peasants returning part of their harvest to the King… I should order a crown and wear it at work.

#76 Vicpaul on 10.21.14 at 10:55 pm

One’s age is the filter of their perspective. I’m glad I’m a Gen X’er who had a frugal, blue collar tradesman Dad who possessed an uncanny ability to “read the play” and a compassionate health care Mom – both of whom demonstrated commitment to task and an unwavering work ethic.
I didn’t know when I chose to be a teacher that beyond any ultruistic sense of purpose (which I still genuinely possess – bite me, Smokster ;) I’d come to value the indexed defined benefit plan so much.
I’ve tried to help my children understand the value of investing early and the power of compound interest. The two elder and of age have TFSA’s with a few thousand in indexed etf’s and the conviction to continue on. Both chose to forgo the societal expectation of university ( in consultation with Mom and Dad) for a college training program that led to jobs out of the gate – daughter a nuturing Educational Assistant(DB plan) and son an Electrician (like proud G-pa). Contrarian for their ages….naw, just readin’ the play.
Garth, I’ve been reading your informative humour since ” the Beauty and Beast of Leverage” some 25 years ago – thanks for the guidance since then.

#77 Kenchie on 10.21.14 at 10:57 pm

#137 Blacksheep on 10.21.14 at 1:13 pm

I am agreeing with your entire post. I think we initially misinterpreted each other.

“I’m all for equal everything, but that second income earner has been used (manipulated) to jack home prices to ridiculous levels. Yes, of course there is all sorts of other marketing crap (sq. ft / granite ) that’s just made this equation less viable, but it’s primarily, two incomes (or the banks demanding two incomes) that has fundamentally cancelled the traditional, single earner home.”

You have the experience of living it first hand, and therefore are looking at it on a micro-level. I’m speaking on a theoretical basis, on a macro-level. IMO it was an early-mover advantage type-situation, where some Double-incomes moved the “benchmark” family lifestyle upwards in the 1960s-70s. Then the “keeping up with the Joneses” mentality made others want to follow those who were able to “get ahead”. And it never really stopped moving upwards (Case in point: starter homes aren’t what they used to be).

I’m all for a gov’t funded daycare to help out young families. Harper’s $100 per month is a joke. IMO, it’s a great investment that will help avoid the dystopia Garth is writing about today.

Warren is correct, IMO. My point, though, is she is pointing out the differences, while I am mentioning why it’s happening. It’s complex, no doubt.

Anyways, the reason I brought it up is that people who wish single-income family households would be the norm again are deluding themselves.

Cheers

#78 Kenchie on 10.21.14 at 11:00 pm

#121 NoName on 10.21.14 at 11:01 am
“#84 Kenchie on 10.21.14 at 12:14 am

http://www.bestpsychologyschoolsonline.com/internet-trolls/

Well aware of what I am doing. It’s intentional to goad Cato losing his poop. Which he did on cue!

#79 Cato the elder on 10.21.14 at 11:06 pm

As Garth mentioned, higher taxes await.

Pay no attention to the fact that the average Canadian works 6 months of the year for government. That is evidently not enough.

They will also continue to inflate the currency at an increasing rate. They will do this because the politicians can’t be honest with the public and tell them they’ve been lied to. They can’t admit there is no money saved and they are going to have to dilute the value of entitlement payments. What good are these benefits going to be if they can’t buy anything?

There’s a reason for this folks: socialism. These people purport to hold the moral highground and yet have systematically turned a nation of free and independent people into government dependent debt slaves in a little over 40 years.

Shame

#80 Vicpaul on 10.21.14 at 11:07 pm

That guy in the pic looks like A.C., a grade school buddy from Port Arthur – his big brother was at a southern Ontario university when he needed a summer job…….and started College Pro Painters. How’s that for initiative?

#81 Sheane Wallace on 10.21.14 at 11:08 pm

#77 Kenchie

I’m all for a gov’t funded daycare to help out young families.
………………………
So they can get a bigger mortgage?

No thanks,

#82 jane24 on 10.21.14 at 11:23 pm

Garth

The problem is that the TFSA program is a govt gift. Should it start to impact on the tax base then poof, it will be changed, made fully or partly taxable, have the limits cut – whatever to raise govt revenue. Govts will need a lot of money in the future to care for us old farts. TFSA accounts will make a tasty grab.

Once money is in there, then it is visible and possibly partly takable in the future.

We have had the same program for many years in the UK called ISA, after tax money that can be saved in non-taxable personal accounts and the financial press is always full of how much is in these accounts and how much we are saving. Program can’t go on forever, nothing does. UK govt is constantly jiggling the pension business, both its own and private ones so they have control.

Smart money is called that because it is smart. I just need to know how they save for retirement. I bet it is not in govt programs.

#83 Kenchie on 10.21.14 at 11:38 pm

#82 Cato the Elder on 10.20.14 at 11:45 pm

“Look at the fines they levy on the banks, it’s a pittance.”

Bank fines since 2009:
BOA = $62 billion
JPM = $31.5 billion
Citi = $10 billion

Might be “pittance” for you, Cato.

http://www.huffingtonpost.com/2014/08/08/big-bank-fines-total_n_5659317.html

Higher estimates are here:
http://www.forbes.com/sites/robertlenzner/2014/08/29/too-big-to-fail-banks-have-paid-251-billion-in-fines-for-sins-committed-since-2008/

http://timesofindia.indiatimes.com/world/us/Top-10-fines-imposed-on-banks-by-US/articleshow/37479502.cms

#84 Kenchie on 10.21.14 at 11:39 pm

#82 Cato the Elder on 10.20.14 at 11:45 pm

“I’ve already explained to you the concept of ‘regulatory capture’ and it appears you haven’t spent a minute researching it, yet are adamant about arguing against me.”

Lol, it’s not news to me. I known about it for years, and it’s certainly not limited to SEC. It doesn’t faze me because it’s not something that’s creeping in the shadows. It’s out in the open, so why fear-monger about it?

On a superficial level, it does sound “evil” per se. But when you consider it on a personal level, it doesn’t. It sounds very normal and rational. For example, let’s say a big global bank (always looking out for shareholders) wants to mitigate losses and fines (mentioned above). Therefore, they will look for the talent that has the knowledge and expertise to navigate the regulation. So they go to where with regulation is enforced: hire directly from the regulator.

On the personal side, the individual with said knowledge and expertise, who has no obligation to serve the government for the rest of their life, gets headhunted by said bank and given a remuneration package that is more in line with the value of their skills in the private sector. It’s a win-win situation for bank and employee. But of course, it’s “immoral” by your standards.

#85 Kenchie on 10.21.14 at 11:41 pm

#82 Cato the Elder on 10.20.14 at 11:45 pm

“It’s not farfetched for a critical thinker to imagine a scenario in which it is CHEAPER and more EFFECTIVE to spend money on lobbying the government to pass regulations than it is to innovate and compete with rivals.”

I’ll throw you stubborn dog a bone. It certainly does make sense to do that. Hence, it’s done.

I am very against Citizen United ruling, and am in favour of caps on corporate donations.

But the bigger concern for small companies trying to compete are 1) achieving economies of scale, 2) having competent managers that can achieve that scale and 3) able to convince patient investors they can achieve that scale, and 4) not running out of cash while attempting to achieve that scale. Obviously, every industry is different (which you never mention when talking about regulation). So brushing all regulation as bad for competition is disingenuous.

#86 Kenchie on 10.21.14 at 11:47 pm

#82 Cato the Elder on 10.20.14 at 11:45 pm

“This is NOT a level playing field, or fair, or capitalist in any way. This is a system that FAVOURS those with political connections the most – this is fascism without the violence.”

Holy moly, how many times do you have to be told that life isn’t fair? It’s mind-numbing. None of what you have said is news. If you were in their position, you would act the exact same. That’s not an insult, you are human. It’s human nature to want to succeed. Until you run your own business and in real competition for market share, please keep quiet.

And no, it’s not “fascism”. You clearly don’t know what that word means since you throw it around every other day.

#87 Kenchie on 10.22.14 at 12:02 am

#82 Cato the Elder on 10.20.14 at 11:45 pm

“I want the same level of freedom afforded to the citizens of that time period though.”

Simple, go live on a farm or in a very small town.
————-
“See, even in spite of everything the government does, the market still has a way of improving things over time.”

Not every invention is made to sell to consumers. Some are made specifically for government contracts. More often than not, it’s inventions for the military than are reformatted for consumer use.
————–
“I think it would be incredible to see just how much more quickly things could progress without them in the way so much.”

Or how much slower. Which is most likely the case because centralization of capital allows for greater investments in particular fields (particularly research and development) than disparate, uncoordinated investors.
————-
“Government can’t prevent people from hurting themselves.”

Totally agree with you hear. But when it comes to the economy, there are laws of unintended consequences that lead to new inventions. So instead of looking at it from a pessimist, look for the opportunities.
————-
“If you must know, I’m a libertarian.”

No duh….
—————-
“I believe in liberty.”

You believe in the idea of individuals having liberty, but often what you advocate actually lowers liberty for people. You need to reflect on your statements more often and think them through on how they will affect others.

Deregulation doesn’t solve any more problems than it solves. Regulations are reactionary in nature to problems caused in the market. People don’t ask for regulation for the sake of regulation. If you want lower regulations, move to an emerging market.

#88 kabloona on 10.22.14 at 12:04 am

#81 – My guess would be that at some point in the future the Feds will simply suspend the ability to make any further TFSA contributions….in effect freezing the program.

Then all they have to do is wait while most people (in aggregate) withdraw their balances down to zero.

My personal strategy is to max it out while we still can… and I’m hoping the limit gets bounced up to $10k in January!

#89 Kenchie on 10.22.14 at 12:16 am

#103 maxx on 10.21.14 at 8:01 am

“wouldn’t a better, wealth-building/preservation mindset be: what could I get at a second-hand shop for $20.00? Yesterday’s answer:

– Designer leather coat, perfect fit and perfect condition, with lining (appears unworn);
– 2 large watercolour frames, with glass and in perfect condition;
– 1 T-shirt;
– 1 designer sweater.

Today, I will wear my beautiful new coat out for coffee. I can certainly bankroll the Americano on those savings.

…and- equally yummy, no tax at the charity shop! Enough of my tax is already being wasted.”

Good man. It’s definitely a better mindset! Nothing better than paying only a few dollars for an asset (clothing) that can be utilized well into the future.

If I wasn’t clear, I was annoyed by my friend’s insistence that $20 is only 4 starbucks mochas.

#90 Joseph R. on 10.22.14 at 12:20 am

#58 Clio on 10.21.14 at 9:58 pm

I have asked that question to Garth last week and he answered the same, although he added that MER aren’t tax deductible, unlike brokerage fees (outside a registered account).

Another good opinion on them is from Dan Bortolotti (The couch-potato guy), here is the white paper on Tangerine Funds: https://www.pwlcapital.com/pwl/media/pwl-media/PDF-files/Justin%20Bender%20Assets/2014/2014-05-02-PWL_Bender-Bortolotti_The-One-Fund-Solution_hyperlinks02.pdf?ext=.pdf

For a one-fund solution, there exists iShares CBN.TO, an ETF which uses the Sabient Balanced Growth Index (MER 0.80% and the Mawer Balanced Fund (MER 0.96%) : a mutual fund. This is not intended as advice but simply express that they exist.

#91 Blacksheep on 10.22.14 at 1:01 am

“You mean the debt paying for the infrastructure you use? — Garth”
————————————
No… he means the debt payment representing the 80 % interest, ON the 20 % principle, that was spent on, the infrastructure he uses.

#92 BigM14 on 10.22.14 at 2:17 am

@73 Whitekat

When the Swiss decided to play ball with these US rules,
sorry to say but you can be sure Canada won’t matter at all.

Good luck, but no chance.

#93 Lillooet, BC on 10.22.14 at 2:18 am

The demographic projections of two workers for every retiree are just that – projections. I don’t think it will play out that way.

With the massive immigration (and their kids), there will be plenty of young workers in twenty and thirty years from now. Also, more people are realizing they don’t want to fully retire. Sitting around watching TV all day or playing golf five times a week can get boring. People want meaningful lives in their golden years which you can only get from working, providing a service to other people, so they often re-enter the workforce part-time, consulting or running a business. This is already happening with the Boomers.

The Conservatives cut the CPP from age 65 up to 66 and 67. They will pay for it next election. People (like myself) who paid into the CPP fund their whole lives are now told by the Conservatives, whoops! there’s not enough money to pay you, wait another two years. This is a ripoff which many people deeply resent and if the NDP or Liberals are smart, they will use this as an election issue to beat the Conservatives over the head with. Then they will restore CPP back to age 65. It’s just a matter of rebalancing the tax system, increase corporate taxes and wealth taxes.

#94 Happy Renting on 10.22.14 at 4:21 am

#75 Nomad on 10.21.14 at 10:52 pm

Yeah, everything I bought last Wednesday is looking pretty good at the moment. We’ll see if it holds, but if not, more deals ahead!

Hold off on the crown until you can also afford the army needed to protect you. No sense taunting your coworkers into lynching you (even if your benefits will cover that!)

#95 The real Kip on 10.22.14 at 7:01 am

“So, the Boomers never have to worry about their CPP or OAS or health care.”

Alright! Let’s party on!

Boomers Rule!

#96 Sheane Wallace on 10.22.14 at 7:27 am

https://ca.finance.yahoo.com/news/bank-canada-report-expected-measure-cheap-oils-effect-083010813.html

no interest rates increase coming any time soon.

#85 Kenchie

Are you on government payroll? As there is no other way to be that stupid and survive in the real world out there.

#97 Sheane Wallace on 10.22.14 at 7:28 am

#92 Lillooet, BC

I am sure Jim Flaherty will enjoy his CPP at age 65..

/sark off

#98 yorel on 10.22.14 at 7:51 am

You say the young are supporting the old. And then you say parents are giving their kids money to buy houses.

#99 Kevin on 10.22.14 at 9:09 am

Did the kids run up the huge public and private debt? No.

You mean the debt paying for the infrastructure you use? – Garth

Don’t get me wrong, Garth, later generations are grateful that you build the roads. We just wish you would’ve had a plan to pay for them too, besides simply “I dunno, let the kids figure that part out.”

#100 ozy - German laws today: refuse prostitution jobs - no EI on 10.22.14 at 9:10 am

German laws today: refuse prostitution jobs – no EI

I won’t be surprised if the few taxpayers of tomorrow won’t ask for this before handing more of their hard worked dollars

#101 Pastbeyond60 on 10.22.14 at 9:39 am

@91BigM14
Anti-FATCA groups even within the US believe if Canada, the US’s largest trading partner and home to over a million affected citizens, can say no to FATCA it will be effectively rendered impotent world wide. The Canadian lawsuit is of immense importance. Google James Jatras, a US attorney, and read his thoughts on the Canadian lawsuit.

All Canadians should be concerned about this US illegal overreach for two important reasons: 1.Our banks and the CRA have spent huge sums in compliance costs to become arms of the IRS. These costs will be handed down to all clients with increased service fees. 2. Canadian assets are being illegally stolen from the Canadian economy by the US in the bankrupting penalties these affected folks will face. Also under the punitive PFIC rules and double taxation over one million people will no longer be allowed to invest in the Canadian economy, save in TFSA/RESP/RDSP etc and retirement savings will be doubly taxed upon withdrawal. These folks may start to weigh heavily on the Canadian social safety net after the US steals their assets. (Do you appreciate that all Canadians contribute via government matching to RESP and RDSP accounts and the US will be taxing those accounts funded by ALL Canadians….this is completely outrageous).

All Canadians should be supporting this lawsuit just on principle. The US should NOT be overriding Canadian laws and stealing from ALL Canadians.

#102 Nattie on 10.22.14 at 10:16 am

To be fair, I don’t think there’s anything wrong with kids born 1996-2000 being unemployed or basement dwellers; they likely still have a curfew and acne.

After that? Not so much.

@ 11 – Vandamncouver

I’m 26, grew up in Beautiful BC (Okanagan and Victoria) and lived in Ontario and Québec and now Alberta. I have a polisci degree. I also have a job paying in the high 80’s (in a business field.) I’m not above average in intelligence or work ethic, nor do I come from a privileged background. The only thing that advantages me over you (and many millenials, I have a few very close friends in Vancouver in the exact same position as you) is that I’m resourceful.

No, the job market in Alberta (or anywhere else) isn’t crying out for philosophers. But what skills did your degree give you? (fun fact: marketing professionals are more likely to have a philosophy degree than a commerce degree.) What other skills do you have aside from your degree? If you’ve ever worked retail or food service/hospitality, chances are you’re skilled in diplomacy, sales, cash handling, maybe account management, maybe team management. This seems like a good springboard into a sales, marketing, or client relations type role. (I have a polisci degree, yet I’ve worked in IT and HR. Why? I just talked my way into it.)

You’re interested in another field but don’t have experience in it? Make some experience. Call up every non-profit or small business in that field, and offer to work for free on a part-time basis (yes, keep your full-time job while doing so.) Add that onto your resume, not under “volunteer” work but under “experience” itself, just like you would a paid role (I went to uni full-time, worked a paid retail job, and worked an unpaid internship. No, I did not have a social life; however, once I graduated, I had 4 years of “real-world” work experience. As such, I never had to worry about an entry-level job search.)

Don’t hold out waiting for the perfect job to come along. Contrary to what millenials have been spoonfed, you DON’T have to follow your passion and work in a field that you love. You have to work in a field that you don’t hate. You do have to work in a field that gives you the type of lifestyle you want.

Yes, BC is stunningly beautiful. Unless you can eat mountains, however, I don’t see how that’s a justification to live there. Unless you’re a stuck in Vancouver because of child custody or because you’re a caregiver to elderly relatives, you CAN move. Alberta won’t kill you (buy a parka) – I know more than a few Vancouverites who moved to Calgary with great fear and loathing, and ended up being pleasantly surprised by the city. You could also try finding a job in an oil patch camp (yes, there are white collar/office jobs in the larger camps) and fly back to Vancouver on your days off. Or, you can keep applying for jobs in Vancouver the entire time you’re in Alberta, and move back at the first decent opportunity. There will be more opportunities as your resume grows. On that, Alberta is not the only option – Saskatchewan has a rock-bottom unemployment rate (ever been to Saskatoon? I was pleasantly surprised) and the territories offer some fantastic, high paying jobs in the public sector that require far less experience than their southern counterparts (humour me and check out the Government of Nunavut careers page, those salaries put oilpatch cash to shame.)

Oh, and network like a madman/woman. Networking does not mean attending overpriced “networking events” with a “hello, my name is” sticker on your suit lapel and trying to talk with the few execs who are there. Networking is getting to know a large variety of people and doing favours for them. Seriously. (And it doesn’t even have to be powerful people; that receptionist has more power than you think, and that barista has a CEO mum.) Volunteering is often a fantastic way to do that.

Good luck!

#103 Steve French on 10.22.14 at 10:20 am

Hey where’s Smokey?

#104 Retired Boomer - WI on 10.22.14 at 10:23 am

#57 SAM

Congrats on a well designed, and executed young life. You, and wife ROCK!! Doing the things, family, savings, kids, one income that all too often we hear Millennial’s scream “can’t be done”!!!

Throw in an overpriced house, and they are quite right.
A house is merely a place to eat, wash up, and take a dump! It is no longer a place to grow wealth. You don’t “need one.”

It does the old guy good to see “our kids” doing it right!!

#105 Daisy Mae on 10.22.14 at 10:31 am

OAS clawback:

July 2014 – June 2015 $70,954 – $114,815

That appears to be a healthy retirement income before ‘clawbacks’ kicks in.

#106 Daisy Mae on 10.22.14 at 10:34 am

News Alert
Parliament Hill is in lockdown; MPs told leave offices

Soldier shot, Harper safe….

#107 Daisy Mae on 10.22.14 at 10:36 am

CBC: “A man with a rifle shot a soldier standing guard at the War Memorial in downtown Ottawa, and witnesses said there were further shots fired on Parliament Hill nearby….”

#108 miketheengineer on 10.22.14 at 10:36 am

Garth et al:

Saw this today…sucks to be a kid in Dallas!

Dallas Cancels Halloween Amid Ebola Concerns

Here is the link:

http://nationalreport.net/dallas-cancels-halloween-amid-ebola-concerns/

Question is Why? My guess is Lawsuits….

#109 MoneyMyHoney on 10.22.14 at 10:40 am

News: “Plunging crude prices could delay interest rate hikes: Bank of Canada”

Inference: Interest rake hike which was always the central theme of the authors brain cells (which may be in short supply. Does it make it precious?) continues to be a mirage.

#110 Daisy Mae on 10.22.14 at 10:50 am

#88 Kenchie: ‘Maxx’ said: “Today, I will wear my beautiful new coat…and equally yummy….”

Good man.

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

Could be wrong but I think ‘Maxx’ is a girl…

#111 Steve on 10.22.14 at 11:12 am

Hey Garth, in your above example, why no international equity?

#112 Angie on 10.22.14 at 11:18 am

Anyone born between 1996 and 2000, is still in high school, and anyone born between 1992 and 1995 is probably in university or college. Yet, you’re complaining that half of them are still living at home – well, no duh, they’re probably still in school.

Give me the same stats on people born between 1980 and 1990 – those would be more valid

#113 Victor V on 10.22.14 at 11:20 am

https://ca.finance.yahoo.com/news/bank-canada-abandons-neutral-reference-140402151.html

The bank did voice new concern on Wednesday about Canada’s heated housing market and household debt but it said underlying inflationary pressures remained muted and the risks to its inflation projection were roughly balanced, falling within the zone for which the current interest rate is appropriate.

In July, the bank had said elevated household imbalances were evolving in a constructive way; this changed in September to saying risks associated with household imbalances had not diminished. On Wednesday, it went further: “The financial stability risks associated with household imbalances are edging higher.”

“Housing activity has been more robust than anticipated, buoyed by continued very low mortgage rates and exhibiting strength beyond a rebound from weather-depressed levels earlier in the year,” it said in the quarterly Monetary Policy Report that accompanied its rate statement.

The bank said that housing markets in Eastern Canada showed signs of a soft landing, but were generally robust and much tighter in major cities in Ontario, Alberta and British Columbia. “Household imbalances could increase further,” it added.

“The ratio of household debt to disposable income is expected to edge higher from its current elevated level before stabilizing by 2016,” the bank said.

#114 bill on 10.22.14 at 11:22 am

#15 Vandamncouver on 10.21.14 at 7:11 pm
my youngest nephew is your age or thereabouts I reckon. he has a welding ticket now and is currently upgrading that so he can work in the patch.
his older brother has the same degree as you. he doesnt have a ‘real ‘ job either. unless you count teaching people how to ‘rock climb’….
pipe fitting also pays well. getting a trade is an obvious choice I think.

#115 Son of Ponzi on 10.22.14 at 11:23 am

#79 Vicpaul on 10.21.14 at 11:07 pm
That guy in the pic looks like A.C., a grade school buddy from Port Arthur – his big brother was at a southern Ontario university when he needed a summer job…….and started College Pro Painters. How’s that for initiative?
—————-
College Pro Painters.
False advertising. They painted the neighbor’s house.
Two middle aged Chinese did the painting.

#116 Mike S on 10.22.14 at 11:27 am

“First, the investment vehicle of choice for all the kids should be the TFSA. Forget RRSPs for now, because they’ll end up being tax bombs you deeply regret in a few decades, when taxation rates are inevitably higher.”

Are you suggesting that the first income tax bracket will be higher than the marginal tax high income earners pay currently?

How can you regret it if you are planning to withdraw the minimal amounts during the (early) retirement or when you are on leave before that time?

#117 Bottoms_Up on 10.22.14 at 11:34 am

Heart goes out to all Ottawans and Canadians today, and the dead soldier. Last I heard was 3 shooters, some on rooftops, around Parliament.

#118 Cici on 10.22.14 at 11:38 am

Today Garth, would be a good day, to thank your blessings that Harper booted you off of Parliament Hill:

http://www.cbc.ca/news/politics/attacker-shot-dead-in-parliament-after-soldier-shot-at-national-war-memorial-1.2808710

Off course, we blog dogs are thankful each and every day ;-)

#119 Ivan the Moderate on 10.22.14 at 11:40 am

Happening again

https://ca.finance.yahoo.com/video/regulators-ease-mortgage-lending-requirements-142809548.html

#120 DM in C on 10.22.14 at 11:52 am

Wow Kenchie is almost to DA level of posting levels. That’s some serious lack of life.

#121 The real Kip on 10.22.14 at 11:57 am

Soon Parliament Hill will look like a White House style bunker. A sad day in Ottawa.

#122 Kenchie on 10.22.14 at 12:03 pm

A sense of humour is shown by the G&M:

http://www.theglobeandmail.com/globe-debate/editorials/monopolies-theyre-not-just-for-beer-anymore/article21203894/#dashboard/follows/

#123 Cato the Elder on 10.22.14 at 12:19 pm

Here you go Kenchie, SEC revolving door from a liberal perspective:

http://www.huffingtonpost.com/2013/02/11/sec-revolving-door-wall-street_n_2648355.html

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

On a side note, as I have been warning for weeks on here, say goodbye to your civil liberties. Look at what just happened in parliament and all the hype being generated about it.

Of course, a rational person would look and say this is the first time this has happened, and not to over react.

But those same rational people are well aware that there is a conspiracy afoot. That conspiracy is a global attack on western nations to undermine their civil liberties and institutions that protect their rights.

You think this wasn’t planned? I can assure you, those tyrannical players have been waiting in the shadows with thousands of pages of new legislation just WAITING for an incident like this to be passed (just like the Patriot Act in the states).

A couple lunatics do something, and all of a sudden 35 million Canadians MUST have their rights restricted. And guess what? People are going to LOVE IT.

See, we have a problem folks. The problem is that if a country that originated some of the smartest minds human kind has ever produced is capable of falling into a dictatorship, we certainly will be. That country is Germany, and they have more nobel laureates than almost all other countries combined.

I don’t think it’s going to take much longer. How long was it expected to last – we’re a country full of people that love to apologize and not rock the boat. People complain all the time, but don’t take any incendiary action. They don’t get angry enough to put their feet down and force the government to back off.

Thank god for the second amendment in the US – it’s the only saving grace every democracy the world over has. See, no single action of significant government power can be taken as long as that last bastion remains. It has to be incremental, which explains why year after year they are restricting our rights, rather than alarm us with one swooping change.

WAKE UP FOLKS.

PS if you disagree with gun rights, maybe you should do a little research. Over 100 million innocent men, women, and CHILDREN were killed by their own governments in the 20th century ALONE (this does NOT include wars!). This dwarfs any kind of ‘gun crime’ statistics you could cite about what happens in the streets. And besides, most of what happens in the streets are gang on gang crime, not innocent people being gunned down. Gun laws only disarm law abiding citizens, while criminals ignore them. Use some common sense, if you have any.

#124 Little Pink Houses on 10.22.14 at 12:36 pm

A month ago Little Pink Houses opined that things had changed and was deleted.

I told y.. DELETED.

#125 The real Kip on 10.22.14 at 12:44 pm

I think Mr. Harper wants this American style call to arms. Fight the election American style, at war, time to rally behind the prime minister.

I agree with the conservative government on almost every issue except this one. It was a mistake to send the Canadian Forces to Iraq. If the intention is to make Canada a mirror image of the US, congratulations, we’re almost there.

#126 Retired Boomer - WI on 10.22.14 at 12:50 pm

#122 Cato the Elder

Agree with you on the SEC being a back-water, ineffective FED agency. (It has been designed that way of late).

Agree with you on 2nd amendment rights. Though I no longer own a gun (no longer hunt, and need no self-protection). That would not preclude me from getting another if I deemed it needed.

As for the attack on Parliament today, we will have to see who these goofs were, and then decide if any course of action is appropriate.

My sympathies to all Canadians for this violence, it is unneeded.

#127 xdisciple on 10.22.14 at 1:07 pm

http://www.century21.ca/david.hutchinson/Blog/B_C_couple_tricked_into_buying_unlivable_house

I found the above article while conducting research on the actor identity behind the Poloz character. Irony?

#128 OttawaMike on 10.22.14 at 1:10 pm

City Hall and other key municipal facilities are all still in lock down here.

The normally busy Wellington Street is nearly empty here at mid day. A small Cessna type plane , likely media, circles over the downtown core continuously and a helicopter that was hovering above the river has left.

I am due to fly out to Europe at 5 today but need to find out if the airport is still operating normally.

I naively thought that this day would never come to our sleepy capital.

#129 OttawaMike on 10.22.14 at 1:12 pm

Smoking Man.

If you look at his blog, SM’s nephew recently died in a tragic accident in Switzerland. My condolences to the Smokey family.

dyslexicsmokingman.blogspot.com

#130 Cato the Elder on 10.22.14 at 1:18 pm

Re: #125 Retired Boomer

No need to wait – I’ll tell you what’s going to happen. More fear-mongering, constant bombardment in the media. All this hype will be used for three reasons:

1. Usurp more power for the federal government
2. Pass legislation that incrementally reduces civil liberties for all Canadians
3. Promote more interventionism/war abroad

The playbook is so obvious it is laughable. It’s unfortunate that so many Canadians are gullible.

I also think it’s tragic what happened and the innocent loss of life is always wrong.

We can’t view this in a bubble though, which is what the media is doing. These aren’t ‘crazy people with no motivation except to hate us for our freedoms’. They’re upset because we, like the US, have been interfering, bombing, attacking their countries for 13 years +.

Of course, because context is so important in determining an appropriate solution to a situation, the Canadian populace will be denied any in the mass media’s discourse.

That’s why the internet is so great. It allows us to get exposure to the truth because it isn’t being moderated by advertisors with a profit-seeking agenda. People like Garth can talk openly and freely.

And guess what? The powers that be know that. I wouldn’t be surprised if something in the forthcoming ‘anti-terror’ legislation has some provisions in it dealing with the internet. Because of course, the ‘terrorists’ exchanged emails, and were members of an online ‘forum of extremists’.

It’s coming folks – and you’re going to love it.

#131 CdnFlyer on 10.22.14 at 1:34 pm

A young soldier was shot. His crime: serving his country and guarding the memorial honouring the dead. Cowards killing unarmed people in our capital. As Nov 11th comes, let’s remember the great country we live in and the brave men and women who serve it.

#132 xdisciple on 10.22.14 at 1:35 pm

Today’s Ottawa shooting is another fake news event, very politically convenient and very fake. Please realize that ALL news stories are simply the product of content creation sold to the highest bidder. It always has been, you just never knew it. The media is the message. This story was likely prepared months ahead of time but they still make mistakes, try to spot them…

#133 CdnFlyer on 10.22.14 at 1:52 pm

Xdiscilple: you are a pathetic excuse for a human being.

#134 gut check on 10.22.14 at 1:58 pm

#122 Cato the Elder

standing ovation.

you notice how the story is changing every moment, and all the news networks have different versions? baffling us with bs. RCMP ‘asking the public ‘ not to upload photos or video.

what will follow this? I am not anxious to see.
I feel sick. totally sick, because Canada just died and I honestly do not know where I can go to be free.

#135 Spiltbongwater on 10.22.14 at 2:00 pm

#113 bill on 10.22.14 at 11:22 am

When I was in high school all my teachers told us that to get a good job we had to go to university. I didn’t listen and took a welding course, started work and then got a metal fabrication apprenticeship. I have had good job with decent pay for last 18 years.

I figured out the only reason we have high school is because all the jails are full.

#136 Tony on 10.22.14 at 2:00 pm

Re: #127 OttawaMike on 10.22.14 at 1:10 pm

Ottawa university is in lockdown and tonight’s hockey game is iffy. Canada has no S.W.A.T. team.

#137 xdisciple on 10.22.14 at 2:01 pm

No CdnFlyer, I am a proud Canadian, but not fooled by the media like you perhaps, just ask David Lloyd Johnston aka Johnny Carson, who is good friends with the Queen (of Comedy that is, Lucille Ball).

#138 Bottoms_Up on 10.22.14 at 2:08 pm

#131 xdisciple on 10.22.14 at 1:35 pm
————————————-
ah, yes, the KOOK rears his ugly head.

Garth, you shouldn’t let KOOKs spread misinformation. A soldier has been killed and we are in lockdown.

#139 saskatoon on 10.22.14 at 2:14 pm

:::!!!PROPAGANDA ALERT!!!:::

http://www.torontolife.com/informer/toronto-real-estate/2014/09/30/real-estate-mania/12/

#140 Cato the Elder on 10.22.14 at 2:20 pm

Re: #132 CdnFlyer in response to #131 xdisciple

Your reply is very telling. Obviously, you are outright rejecting the notion that a group of evil men could conspire to cause a false flag attack that would justify their actions. This, in obvious contradiction to the many events that have happened throughout history (Reichstag fire, Gulf of Tonkin incident,

xdisciple could be wrong. If innocent people were killed, it is always a tragedy. However, that doesn’t mean you should trust the government’s version of events. And you should DEFINITELY examine your own personal knee-jerk reaction to disgust when those objections are raised, and ask yourself WHY you should had that reaction. Is it years of conditioning to always trust those in authority? Probably. That should worry you.

You, and many others, need to get a hold of your own bodily functions. You need to control your own mind. Many people don’t have that level of self-awareness or introspection. One of the first things people undergo when their world-view is undermined is ANGER – anger because it is mentally taxing to have to rearrange prior held FICTIONS into newly formed FACT.

I know I would rather undergo that discomfort TEMPORARILY and arrive at the truth, than continue denying it by lashing out at people that are divulging it.

That’s why freedom of expression is so important. All the animalistic urges that led to group-think in the past and the stupidity it led to like ‘witch trials’ and that nonsense are countered over time by smarter people.

#141 RealistvsExtremist on 10.22.14 at 2:47 pm

Cdn Flyer

The odds of you being killed by a “bee sting” is higher than a terrorist yet billions and billions are being spent on fighting this phony terror war. Guess what? Stop invading/bombing/destroying other countries. Invite trade. Work with them and stop bombing them. Yes those ISIS guys are bad and other ME countries are helping to get rid of them. But Iraq did not need to be invaded nor Afghanistan (911 was Saudi’s) nor Libya etc etc.

Stop the bombing. Stop the invading. Initiate trade and peace will naturally come.

Unfortunately this is not what is happening and our lives are being controlled more and more by our totalitarian govt every day. Look at how govt controls your life today and tell us how I’m wrong.

#142 Rational Optimist on 10.22.14 at 3:13 pm

120 The real Kip on 10.22.14 at 11:57 am

“Soon Parliament Hill will look like a White House style bunker. A sad day in Ottawa.”

It is indeed. A bit more of our innocence is taken, and our capital will be altered accordingly.

I don’t agree with everything Cato says as #122, but it would be nice to think of things rationally, and question whether the one-off actions by a couple of nitwits are worth sacrificing our freedom for.

#143 Mr. Monday Night on 10.22.14 at 3:18 pm

Our thoughts and prayers go out to those affected by today’s cowardly shootings.

Stay safe, Ottawa.

#144 Nomad on 10.22.14 at 3:23 pm

Oil hit 80.47 today (Wednesday).
-2.50%.

All those commentators forecasting that we had seen a bottom, how do they know that? They don’t. They just get paid to talk.

Alberta, start building another industry than oil.

#145 RealistvsExtremist on 10.22.14 at 3:24 pm

I’m really surprised that in a country like Canada that is full of immigrants from “invaded and bombed out countries” by US and Canadian forces that this comes as a shock.

What do you expect when you kill hundreds of thousands of people in a decade of terror? No reprisal? No calling for revenge?

#146 jess on 10.22.14 at 3:39 pm

devolution

Indiana serial killings set against backdrop of urban decay

Worse than the corruption and crime in the city where the bodies of at least six women have been found is the legacy of nearly 10,000 blighted homes it can’t afford to knock down (guardian uk)

=

liar loans
Ex-foreclosure king Todd Brunner accused of trying to hide $7 million
He’s charged with 11 counts of bank fraud, 4 counts of bankruptcy fraud
http://www.jsonline.com/business/ex-foreclosure-king-todd-brummer-accused-of-trying-to-hide-7-million-b99366870z1-278476041.html

http://www.jsonline.com/business/federal-agents-arrest-former-foreclosure-king-todd-brunner-b99374323z1-279779282.html
Watchdog Update

rural subprime
http://hosted.ap.org/dynamic/stories/U/US_SUBPRIME_LENDING_RURAL_IMPACT?SITE=WIMIL&SECTION=BUSINESS&TEMPLATE=DEFAULT
http://www.zillow.com/gary-in/foreclosures/

#147 Millenial on 10.22.14 at 3:40 pm

RRSPs still make sense if you’re in a high income tax bracket (like over $225k), assuming you’re going to actually retire one day and have your income only be from withdrawals, etc. For those in lower income tax brackets (like less than $50k), then I agree with Garth it doesn’t make much sense, cause taxes are only going higher. Garth’s advice was to ‘kids’ so I think it’s fair he assumes most young people these days aren’t making over $100k.

The question I struggle with is does it still make sense for doctors/dentists/etc to have professional corporations? The way it is now I think is pretty sweet, giving dividends to family members and them not paying taxes on them. But when the SHTF I could very easily see them changing the rules, particularly with respect to WHO CAN RECEIVE these dividends. I dunno.

Anyway, respect to the Canadian soldier killed today, and to his family.

#148 jess on 10.22.14 at 4:04 pm

65 Vangrrl

…the usa nightmare regarding reps and warranties!

CMHC head says banks should share risk on home mortgages
Evan Siddall says CMHC was a ‘shock absorber’ in the financial crisis and should not be privatized
CBC News Posted: Oct 21, 2014 3:05 PM ET Last Updated: Oct 21, 2014 8:57 PM ET
==

the “f” pile
Michael Stephens, Acting Inspector General for the Federal Housing Finance Agency said,
… “Citigroup securitized billions of dollars of defective mortgages, after which investors suffered enormous losses by purchasing RMBS from Citi not knowing about those defects. Today’s settlement is another significant step by FHFA-OIG and its law enforcement partners to hold accountable those who committed acts of fraud and deceit in the lead up to the financial crisis, and is a necessary step toward reviving a sound RMBS market that is crucial to the housing industry and the American economy. We are proud to have worked with the Department of Justice, the U.S. Attorneys’ Offices in the Eastern District of New York and the District of Colorado. They have been great partners and we look forward to our continued work together.”…
http://www.justice.gov/usao/nye/pr/July14/2014Jul14.php?print=1

http://neweconomicperspectives.org/2014/07/ag-holder-u-s-announces-indictment-citigroups-senior-officers-fraud.html
Bank of America to pay $16.65 billion for financial fraud … reps and warranties about the quality of mortgage loans were false

#149 Doug in London on 10.22.14 at 4:05 pm

Yes, the future doesn’t look great for these Millennials, partly due to their own bad choices and a lot more due to events happening that are beyond their control. One thing the Boomers could do that would help them out is to retire if they are able to, and free up job more vacancies for this generation which has a high unemployment or underemployment rate.

#150 Mike T. on 10.22.14 at 4:37 pm

I have parroted the comment made by Cato at 122

You were warned all summer about ‘radicalized youth’, now MK Ultra is here to take your rights away, and most Canadians willfully comply.

Also – too much Kenchie – wow

Is this still the greaterfool blog?

#151 SWL1976 on 10.22.14 at 4:55 pm

Sorry to hear the news today from our nations capital. Canada has embarked on a slippery slope

The war on terror cannot be won with bombs and guns, it is a perpetual war by design, its sad the death toll to date, and the death toll a year from now, and the year after, 13 years and counting. Are we better off?

#90 Blacksheep

No… he means the debt payment representing the 80 % interest, ON the 20 % principle, that was spent on, the infrastructure he uses.

I don’t know how its so hard for people to understand that it is mathematically impossible to repay this debt and this is also by design

If you thought the last 20 years were interesting, get some popcorn cause the next 20 are going very very interesting

Expect less

#152 BillyBob on 10.22.14 at 5:11 pm

#91 BigM14 on 10.22.14 at 2:17 am
@73 Whitekat

When the Swiss decided to play ball with these US rules, sorry to say but you can be sure Canada won’t matter at all.

Good luck, but no chance.

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

The Swiss are not “playing ball”. They are in no position to refuse access to the US with their extortionary strong-arm tactics so they have taken another approach. If the IRS will force them to release details on US clients, they will simply refuse to have US clients.

I recently opened accounts in Switzerland and had to make numerous declarations that I am not a “US Person” to do so. Many of my American colleagues in our expat community have being served notice by their Swiss banks that their accounts will be closed and they will not be permitted to bank in Switzerland anymore. Too bad for the individual clients, but that’s what happens when your government overreaches.

So no. Not everyone is rolling over for the US.

Interestingly, what has historically overwhelmingly been an advantage – American citizenship – has become a liability. If that isn’t a warning sign that FATCA is a mistake, what is?

#153 chapter 9 on 10.22.14 at 5:46 pm

In light of todays events in Ottawa there will be a greater move to have more surveillance. More ID check’s,data mining,cameras etc. and the sad thing is that people will go along with it.The mind set being “If I’m not doing anything wrong,what do I have to hide?.Well “The government decides what is wrong!.

#154 Ronaldo on 10.22.14 at 5:57 pm

#148 Doug in London –

”One thing the Boomers could do that would help them out is to retire if they are able to, and free up job more vacancies for this generation which has a high unemployment or underemployment rate.”

I suspect Doug, that many of the jobs been held by current boomers will be left vacant as they leave and workload absorbed within the various organizations they work for. I believe there is a lot of redundancy in the system currently and that corporations look forward to these people retiring. Technology can handle of lot of their work. This is especially true in government and there would be a lot fewer people walking around with pieces of paper in their hands trying to look busy. Just my take on it having worked in a few government related organizations. Their was plenty of redundancy then too.

#155 Rational Optimist on 10.22.14 at 6:14 pm

“133 gut check:

what will follow this? I am not anxious to see.
I feel sick. totally sick, because Canada just died and I honestly do not know where I can go to be free.”

Read John Stuart Mill’s inaugural address at Saint Andrew’s. Nothing is written in stone. We choose.

#156 crowdedelevatorfartz on 10.22.14 at 6:28 pm

@#131 xdisciple

Wow!
Paranoia and the internet meet.
Delusional ramblings typed out for all to see and laugh at…..
Seek help.

#157 espressobob on 10.22.14 at 6:31 pm

Cpl. Nathan Frank Cirillo…. RIP.

#158 Retired Boomer - WI on 10.22.14 at 7:11 pm

#129 Cato The Elder

Your synopsis on response mat very well be correct. We did just that crap in the wake of 9/11. Too bad. Our legislators did not read, or read with no comprehension the various laws rules operating procedures of the new “police state.” Not much fun even when you have nothing to hide to see the protections stripped from long standing law. Just observe how any protests are handled here now -assuming you can even get a good protest going. The climate change gathering and march in NY will likely be the last benign gathering for quite some time. Just an observation -mine.

#159 not 1st on 10.22.14 at 10:25 pm

#54 Cato the Elder on 10.22.14 at 9:49 pm

This is just a simplistic cop out. Hundreds of countries have been occupied and destroyed in was and settlement yet 99% of them are not engaged in this type of attacks.

Japan was nuked for goodness sake, Germany, Cambodia, Vietnam were carpet bombed and even our own first nations had millions of square kms on land taken from them and none of these groups have ever done anything to avenge those deeds.

The simplest explanation is the most likely right and that would reveal that these groups are tribal 1st century civilizations unable to exist with a modern world. I mean if I occupy your country that makes you want to enslave your women, stone adulters or kill your fellow muslims for no good reason? Cmon people.

#160 Doug in London on 10.23.14 at 11:51 am

@Ronaldo, post #153:
You’re probably at least part right, as technology continues to make more jobs redundant or unnecessary. It makes me wonder, where is this phantom “labour shortage” that’s supposed to occur when the Boomers all retire? If you believe in that nonsense, I’ll sell you some dirt cheap Nortel shares at the rock bottom price of only $1000 each!

#161 straight six on 10.23.14 at 6:53 pm

so what’s in store for the plethora of graduates with lead weights wired to their feet.. up against global competition, fewer jobs, no security.. and after the inherited spoils of grampa boomer’s RE are all gone.

2 words.. Mc Jobs! because our captains of industry went overseas for maximum profits, and grew snouts.

#162 None on 10.24.14 at 1:32 pm

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