April fools

FOOL 1 modified

What’s the government hoping you’ll forget about on the day before the first nice-weather, beer-swilling, Harley-riding long weekend of the year?

The budget, of course. Just when you thought the economy sucked so much the feds would never get around to telling us what they’re doing, it looks like Joe Owe can wait no longer. Word has it he’ll pop the date Thursday at 9 am EDT when he holds a presser at a Toronto manufacturing company.

And how appropriate is this? It’s the Canada Goose facility. So bend over, and pucker.

(Update: This pathetic blog was correct. Budget day is April 21.)

It won’t be easy on the guys running the country. Six years after the wheels came off things are still scary in the land. Maybe worse. Emergency interest rates have taken a massive toll – house prices have essentially doubled in a few major markets, while family incomes haven’t kept up. Our household debt level is epic. Off the charts. That’s because so many people, gorged on that cheap money, have been chasing prices higher. So houses are worth more, but we owe more and aren’t earning more. Bad combo.

Meanwhile the economy as a whole is losing air. The dollar was worth $1.04 US four years ago. Now it’s 78 cents. Our exports have tumbled into deficit. The global oil plunge is taking a ferocious toll. The government has been spending more than it takes in for six straight years. Over $170 billion has been added to the national debt during Mr. Harper’s watch. The new job creation rate is the worst in 40 years. The Bank of Canada was spooked into another rate drop a few weeks ago and just said things are “atrocious.” We’ve got 108,000 realtors now and only 60,000 workers in the oil and gas sector. In fact, we’ve allowed the real estate component of the economy to get bigger than all of manufacturing combined. And, as you know this week, the economy got smaller in January, with more to come.

Hell, no wonder Joe was paralyzed. No wonder he caved when the banks sliced and diced mortgage rates and sucked in a new cohort of dewy virgins. No wonder he’s been silent on the toll oil’s taking, the collapse of the dollar or the central bank’s desperation. This man is no towering elfin deity. (And, yes, I miss the little pecker.)

Well, seems most citizens get it. They’re seeing right through this new government message (since the energy plop began) that you should be more afraid of terrorists than the economy. Sure, people have strong opinions on ISIS recruits from Calgary, niqabs, our war jets in Syria or mythical guys shooting up West Edmonton Mall. But they’re more afraid of job loss. Especially now that we’re all pickled in debt and sorely need the work.

The latest Nik Nanos poll kills it. Over 90% of respondents said the economy is their major concern, while just 4% cited terrorism.

And remember that budget surplus Joe was yakking about eight months ago? It’s probably non-existent at the moment, or miniscule and manipulated – but the poll contains another surprise. If a surplus exists, people say, then spend it on infrastructure, creating jobs. The second most popular choice is paying down the national debt ($614 billion). After that it’s enhancing social programs, then tax cuts.

Too bad. The government already announced a watered-down form of income splitting to take effect this summer – a tax cut of $5 billion for middle-class families that critics argue are the last ones who need more. Says Nanos: “This poll actually should be a wake-up call for all the parties in terms of what they’re talking about and what Canadians want to hear about.”

The election’s in October. Sounds like the campaign starts now. With a goose.

By the way, if you have any doubts that this blog is as omniscient as it is omnivorous, lay them to rest. Back in January when the goofs at the central bank dropped rates I told you it would do nothing but increase debts and inflate houses. We now know this to be true. Mortgage borrowing has increased by 5.5% with $80 billion in additional loans taken out. And there’s evidence all this money just got tacked onto the price of houses, and therefore the debt of the buyers.

Bad boy ex-realtor and housing consultant Ross Kay says the Bank of Canada has added $5,000 to prices. Poof. Like that. He just sent this to me:

“What happened is that within 45 days of the Bank of Canada reducing interest rates by 1/4 point and the subsequent fallout as banks reduced their mortgage rates accordingly? The purchase price PAID for a first-time home in Canada increased by the exact same amount of the lowered payments that resulted from that decrease.  What the Bank of Canada did was cause the exact same fear they warned about (taking on additional debt) to be recorded in the selling prices of homes.”

Kay says before the rate cut that the maximum average price virgins would shell out for a house was $238,000, based on prevailing rates. By March 12th that had increased to $243,000, as mortgages were pushed lower. What does this mean? The same house cost the same buyer more money but a lower mortgage rate meant the kid could get a bigger mortgage and have the same payment.

Yes, realtor math. Pay more and assume a fatter loan to acquire the same asset – all because mortgages are cheaper so the monthly stays the same. And these kidults went to university. We’re doomed.

Adds Kay: “Nationally, the median list price for a home in Canada has also increased from $300,000 on February 12th to $305,000 on March 12th over that 30 day window. In effect what the bank unknowingly did was set the stage for a wider range in average price deflation being recorded in the coming months. Although this will not impact the current 22.9% of sales by first time purchases present in the sales mix, it has already affected the rise in reported average selling price.”

The Bank of Canada thinks it can fool us.

They got that right.

204 comments ↓

#1 Leroy Washington on 04.01.15 at 7:01 pm

Sorry everybody – I’ve been out of town and therefore unable to post my thoughts on here.

Canadians are utterly stupid financially. They deserve to lose all their money, in my opinion. Why anyone would buy a house in Canada is beyond me. Yours is a miserable, cold, bland country.

God bless the USA!!! Number one! Number one!

#2 Yogi Bear on 04.01.15 at 7:03 pm

This whole let’s not table a budget thing is fairly ridiculous.

#3 Steve French on 04.01.15 at 7:06 pm

ugghhh

disturbing photo…

#4 Derek R on 04.01.15 at 7:08 pm

There’s no fool like a greater fool.

#5 Brian Ripley on 04.01.15 at 7:11 pm

Here is the BNN interview of why Vikram Mansharamani is shorting Canada “BUBBLES ARE NOT RANDOM”

A 9 minute BNN video interview plus my text bullet points from the interview.

http://www.chpc.biz/history-readings/bubbles-are-not-random

#6 MSM-free Zone on 04.01.15 at 7:13 pm

“….Word has it he’ll pop the date Thursday at 9 am EDT when he holds a presser at a Toronto manufacturing company….And how appropriate is this? It’s the Canada Goose facility……”
_________________________

This can only mean one thing.

We’re sending Canada Geese to bomb Syria.

#7 S. Bby on 04.01.15 at 7:15 pm

108,000 realtors and 60,000 O&G workers? Wow. That pretty much says it all about Canada.

#8 Kev on 04.01.15 at 7:16 pm

TOPPY stuff.
When it falls it will be ugly.

#9 Rico on 04.01.15 at 7:16 pm

I’m first! Oh no now I look like a big tool!

#10 bill on 04.01.15 at 7:18 pm

how depressing….thanks for the update.

#11 VanRant on 04.01.15 at 7:20 pm

Hey Garth, if 80 billion has been taken out in recent months, CMHC had $546 billions from late last year and with a legislated $600 billion limit. They are well over the $600 billion limit, right?

#12 crowdedelevatorfartz on 04.01.15 at 7:21 pm

A Canada goose factory……WTH?

#13 Oceanside on 04.01.15 at 7:23 pm

If Poloz is pressured into lowering the prime another 1/4 point maybe that would be the tip needed to crash the whole unsteady mess..can’t help but thinking that Harpo is closer than “arm’s length”

Our MP has just left the Cons over “evolution” amazing how these people get any votes at all.

#14 carbide on 04.01.15 at 7:24 pm

February 12th to March 12th is 28 days, not 30…

#15 Cici on 04.01.15 at 7:25 pm

In other news, a women in Indonesia is so desperate to sell that she’s offering HERSELF with the house for the low price of $75,000 (although that’s probably US$:

http://naijagists.com/photos-single-woman-widow-offers-self-house-for-sale-in-indonesia/

Or maybe she’s got a fancy realtor and is pricing low in the hopes of starting a bidding war.

C’mon single guys, forget Toronto…this is probably a better deal ;-)

#16 Freedom First on 04.01.15 at 7:26 pm

Looks like a Canada Goose race to the election. Will the Goosing be enough? Will the Goose be defeathered and laid bare before the election? Will the obscenely mortgaged be Goosed before the election or after the election? Will the anxious Conservatives ReGoose the economy before the election? Is Alberta finished?

#17 MSM-free Zone on 04.01.15 at 7:27 pm

America blew its brains out under Republican oversight.

If I read paragraph 5 correctly, Canada’s about to do the same under Conservative oversight.

Wondering who will orchestrate our own miraculous recovery.

#18 Mountain Man on 04.01.15 at 7:28 pm

I was once a fan of Harper and his Conservatives but they’ve bungled so many issues that I can’t wait to see them out of office.

Unfortunately, there’s a three-way split among the other parties: NDP, Liberal, and Green. And possibly a fourth party depending on what comes out of Quebec. We might be stuck with Harper and his misguided policies in another 4 years unless there is some kind of unification of the other parties.

#19 ShawnG in TO on 04.01.15 at 7:28 pm

by lowering the interest rate, BoC also lowers the Canadian Inflation. How? House prices are not calculated in the inflation, only the mortgage interest

http://www23.statcan.gc.ca/imdb-bmdi/document/2301_D59_T9_V1-eng.htm

So, lower interest rate, lower mortgage interest payments, lowers inflation.

What would happen when BoC have to raise rates?

#20 Cici on 04.01.15 at 7:29 pm

Is Garth’s photo trying to tell us Canuckistans that we’ve lost our heads or that we are in over our heads?

What’s the verdict Leroy?

#21 Smoking Man on 04.01.15 at 7:31 pm

The Bank of Canada thinks it can fool us.

They got that right. – Garth
….

Hallelujah, the great wizword of GF puts away his slide rule, and gives the herd some weight.

He’s now focusing on Herdonomics, more and more every day, I taught him. All his crapy predictions from years gone by that were wrong, are history.

Now that he’s a smoking man disciple, chucked the textbooks . studies the track sixers , he’s never going to be wrong again.

As the chief herdometer in the room I hereby grant Gartho his black belt..

He finally gets it..

Well done Gartho. Well done.

Dr Smoking Man

#22 Cici on 04.01.15 at 7:32 pm

#11 VanRant

I wonder if these newbies are mostly hitting up the subprime lenders because they can’t get CMHC?

#23 I'm stupid on 04.01.15 at 7:32 pm

It’s all about the monthy payments. That’s why the savings rate has fallen off a cliff.

#24 DisgustMadeMePost on 04.01.15 at 7:35 pm

I was sitting at a branch of CIBC with my elderly dad this afternoon. I was amazed to see real estate listings on the wall of the sitting area. Never seen that at a bank before.

Real estate being flogged mercilessly.

#25 Mike T. on 04.01.15 at 7:37 pm

Mr T.

Time for Leroy to go
His words are pure insult with no grasp that his own country (?) the US is in worse shape and full of even bigger dopes.

I believe in allowing anyone to express anything, but this is repetitive, baseless, and just plain mean.

This place is above that.

Ride off somewhere with no internets Leroy.

#26 Leo Trollstoy on 04.01.15 at 7:38 pm

ugghhh

disturbing photo…

Take a selfie. Make a print. Place in jar. Fill with Apple juice. Makes a great April Fools joke.

#27 Rexx Rock on 04.01.15 at 7:38 pm

This ponzi scheme was planned years ago and it worked awsome.Everyone is in debt so the bank is happy and so are the provincial goverments from high home ownership paying property taxes.The sheeple are the losers,savers and the pensioners.The real terrorists are wearing 3 piece suits.also you know your country is screwed when they spend billions on a 10 year wars ,130 million on air India trial with no justice and a trial for a serial killer for over 100 million dollars.Taxpayers money wasted like it grew on trees.Lets sing O kanada.

#28 Leo Trollstoy on 04.01.15 at 7:39 pm

Hey Garth, if 80 billion has been taken out in recent months, CMHC had $546 billions from late last year and with a legislated $600 billion limit. They are well over the $600 billion limit, right?

Who said the $80b was all CMHC eligible?

#29 Ralph Cramdown on 04.01.15 at 7:39 pm

Canada Goose, eh?

Well, as Colbert (no, not that Colbert) once famously said, “The art of taxation consists in so plucking the goose as to obtain the largest possible amount of feathers with the smallest possible amount of hissing.”

But if you think the campaign starts now, you’ve missed it. I got a letter from the CRA the other day:

Dear Parent,

This year, the Government of Canada has introduced a number of benefits that will help make life more affordable for all Canadian families with children under 18. Your family will directly benefitfrom the new family tax cutsand benefits, in addition to a number of beneficial measures already available to all Canadians. These include: […]

and then a list. Emphasis in the original. Of course, there’s asterisks next to some of the items, since they represent promises that haven’t yet been passed by Parliament — or even presented to it yet.

It’s freakin’ campaign literature, all signed by The Honourable [sic] Kerry-Lynne D. Findlay, P.C., Q.C., M.P. Minister of National Revenue.

Also included was a little sheet about “New family tax cuts and benefits for your family!” which, being that it’s part of “Canada’s Economic Action Plan” is printed in Conservative Party blue.

I never thought I’d get anything from the CRA that included an exclamation mark. I thought they removed that key from the typewriters there. Campaign literature from the CRA. The Harper Government plumbs another new low.

#30 Canada goose factory on 04.01.15 at 7:40 pm

That’s the same Canada goose which was sold for foreign investors last year?

Nice symbolism then…

#31 lala on 04.01.15 at 7:47 pm

@1 Leroy.

Sorry everybody – I’ve been out of town and therefore unable to post my thoughts on here.

Canadians are utterly stupid financially. They deserve to lose all their money, in my opinion. Why anyone would buy a house in Canada is beyond me. Yours is a miserable, cold, bland country.

God bless the USA!!! Number one! Number one!

Thanks for the laugh Sucka, I laugh so much I think I blow my rectal area….all North America sucks, I better live in Mexico then US or CA. Blessed are the emigrants with 2 citizenships, never mind those with 3. Make some loot and leave….fast………….if not you will get stuck in this big jail called Canada and waste your life. I have warned you dudi.

#32 Temporary Foreign Worker on 04.01.15 at 7:47 pm

Many tens of thousands TFW’s who’s permits expired today didn’t go back. So we have 70,000 illegals in one day. They say gov won’t kick them out and Canada is a place where laws are easy to break.

They say they will hold a march demanding PR.

Has anyone heard if Jason kenney is going to do this? Could affect housing rentals.

#33 Michael King on 04.01.15 at 7:48 pm

Thoughts from Vancouver. The city seems to be splitting into two distinct markets: condos and detached houses. I’m seeing condos in Kitsilano stay on the market so long that price reductions of 5% seem to be the norm. However, houses are selling fast and over the often manipulated asking price. In the luxury sector demand is greater than supply and prices are in the stratosphere. Another way of looking at it is that Vancouver now has a large and very wealthy upper class and then the rest of us shlubs. Ferrari and Rolls-Royce sightings are a daily occurrence. A lot of them are driven by people under 30.

#34 Brian on 04.01.15 at 7:49 pm

Petition on foreign investment. No I didn’t start it. But it seems like we need all the help we can get. Canadians are financial fools.

https://www.change.org/p/premier-christy-clark-mayor-gregor-robertson-mayors-and-city-councillors-of-the-gvrd-restrict-foreign-investment-in-greater-vancouver-s-residential-real-estate-market?recruiter=265499101&utm_source=share_petition&utm_medium=facebook&utm_campaign=share_facebook_responsive&utm_term=des-md-no_src-no_msg&fb_ref=Default

Townhouse goes up for sale today!

26 signatures in 5 days. Wow. Hot. Will you refuse to sell if a Chinese guy shows up with cash? — Garth

#35 Linda on 04.01.15 at 7:50 pm

In Alberta, the recent news announced a certain mortgage brokerage firm was going to tighten up the lending rules regarding new home loans to Albertans as a direct result of the tide of job losses in the province. The firm did not say loans would not continue to be granted, just that the rules for granting those loans would be tightened up. As in, requiring a much higher downpayment, possibly requiring a co-signer & of course, rates of interest for said loans would be adjusted to reflect the perceived risk of making said loan. Fair enough, but one would think people would reconsider buying if the rules were tightened & they had to pay more. Yet I know of several people looking to buy which as prices haven’t yet dropped to reflect current market reality kind of boggles my mind.

#36 j0n on 04.01.15 at 7:51 pm

how do you short Canadian housing?

#37 crowdedelevatorfartz on 04.01.15 at 7:52 pm

@#1 Leroy

God BLESS you Leroy.
Telling us bland Cheeseheads like it IS
I was beginning to lose “faith”.
I was preying (or is that praying? Damned spellcheck will send me straight to the furnace !) that you were ok.
Just dont scare us like that!
Let us know when you’re going out of town.
I burnt my fingers lighting 2 candles and said 10 Hail Mary’s for your safe return

#38 Mom at Home on 04.01.15 at 7:53 pm

Has anyone reading this blog ever read the books that Mike Stathis puts out, in one he predicted the US housing crash and has various other predictions. Online, I find he is no nonsense like Garth and calls it like he sees it. His newsletters and research costs a bit and I am wondering if other financially minded individuals out there currently subscribe and find him valuable.

I am looking for financial newsletters that are valuable, available to the small investor and have no hidden agendas to push metals, or line pockets for advertisement.

Thanks Garth for being a valuable opinion for the little guys and gals.

http://www.avaresearch.com/pages/5/our-newsletters.htm

#39 crowdedelevatorfartz on 04.01.15 at 7:55 pm

@#9 Rico not-so-suave’

No, your NINTH and yes, yes you do.

#40 screwed on 04.01.15 at 7:56 pm

Who here still wants to be that Yellen is not raising rates 2x this year? US markets are already in slo-mo decline and trying to price the hikes in. June and September for starters. Let’s get this show on the road.. woot, woot!

#41 I donot understand? on 04.01.15 at 7:56 pm

How any American blowhard could spout off about Canada and its citizens. Lets see last time we looked how many Americans are on food stamps? Oh and by the way what Canadian City looks like Detroit? How many trillions does the US owe? How about the den of thieves on Wall Street? What percentage of the American population are behind bars never mind the percentage that should be? There is a very thin line between arrogance and ignorance. Leroy you walk that line well enough to fit into both categories. You should spend more time worrying about your own Country and us Canadians will worry about ours. Your words speak loudly of your level of maturity and intelligence.

#42 pinstripe on 04.01.15 at 8:00 pm

The talk at the coffee shop was hot for most of the day. many new faces to the table included O&g contractors having time off due to cutbacks. Many new names were attached to harper and prentice so it wasdifficult to follow the conversation. All I know is that it did not sound good. too much was said too fast for the old geezers.

Alberta is in a hell of a mess. the new guy Prentice was to be the new face in alberta politics but his colors are the same as the last two premiers. his budget is not going over well with Albertans.

if polozi should choose to lower the rate by .25, then Canada will be screwed again.

if the opposition parties do not smarten up then Canada will be screwed like never before.

#43 Habs76-79 on 04.01.15 at 8:04 pm

Here is what I see unfolding. The PM and his govt. will finally pull down a budget. They will by hook or by crook announce it as balanced. Maybe they may try to lay a surplus, bogus as it would be. He will then soon pull the plug on the Parliament, likely using the budget as a trip wire by May and we will see a late June or early July election. Summer votes have lower turnout and that can often help failing govts.

The PM and his will campaign on these two points.

1: The economy is in tough, Canadians will need a good and experienced steward of the economy (even though his govt. has and is aiding in the trouble we see today). They will label Mulcair as a flaming socialist and Trudeau as too inexperienced. But remember Harper was green and wet behind the ears too a long while back.

2: The B.S. war on ISIS/Terror. The PM an his govt. is going to use HIM BE TOUGH ON TERROR aligning with the US and its lackey coalition and its lackey TO KICK ISIS BUTT (btw with our 6, CF-18’s, one US aircraft carrier will have 50+ F-18’s ). While he will claim Mulcair and Trudeau to be weak to trust in this most serious of Canadian society events (B.S. as it is).

Thing is, will Canadians buy another round of his govt. nonsense and politics?

We shall see but PM Harper can’t wait until Oct. 2015 for an election. If he does he will be toast. Again I see us going to the Polls in late June or early July.

Fixed election dates in Canada are bogus as they are NOT enshrined by constitutional law and as such and as PM Harper did once already he will forgo the law and choose his own election date in this regard.

#44 Billy bob canuck on 04.01.15 at 8:07 pm

hey Leroy, we didn’t miss you as much as you thought. Maybe time to go visit somebody out of town again.

#45 Glengarry Glenn Ross on 04.01.15 at 8:07 pm

Back in January when the goofs at the central bank dropped rates I told you it would do nothing but increase debts and inflate houses.

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

Yup yup and yup.
Guess what next…THATS RIGHT,ANOTHER RATE DROP.
45c loonie….who cares if we pay $6 of those worthless beavers for a head lettuce………IT’S ALL ABOUT INCREASING REAL ESTATE VALUES.
Afterall, 108,000 realtors cant be wrong …LOL

#46 Nora Lenderby on 04.01.15 at 8:08 pm

#1 Leroy Washington on 04.01.15 at 7:01 pm
Sorry everybody – I’ve been out of town and therefore unable to post my thoughts on here.

Leroy! You’re back!! Lawd preserve your little furry head!

Yours is a miserable, cold, bland country. God bless the USA!!! Number one! Number one!

Absolutely right, Leroy! Who’s a good boy? Please stay home and do not bomb my country…

#47 stock market on 04.01.15 at 8:08 pm

As long as the stock market can hold up…

Although some argues that it is also on top, the same way as real estate, with similar correction on the way.

In Canada stimulating money went into RE, in the US, where RE caused the collapse the stimulating money went into the stock market (while real estate also recovered).

#48 Ed on 04.01.15 at 8:08 pm

I’m pretty happy our dollar is back to normal…in the long run an eighty cent dollar is good for us.

#49 Anthony G on 04.01.15 at 8:15 pm

Hahaha. Kidults! That’s classic!

#50 Nora Lenderby on 04.01.15 at 8:18 pm

#18 Mountain Man on 04.01.15 at 7:28 pm
I was once a fan of Harper and his Conservatives but they’ve bungled so many issues that I can’t wait to see them out of office. Unfortunately, there’s a three-way split among the other parties: NDP, Liberal, and Green…

Oh, I’d just vote for the sexiest leader. Mr. M. is definitely eye-candy for the older lady. The stern demeanour and the sting of the lash in QT! The dreamy beard! The huge alternative policies…

#51 BG on 04.01.15 at 8:20 pm

#25 Mike T. on 04.01.15 at 7:37 pm
Mr T.

Time for Leroy to go
His words are pure insult with no grasp that his own country (?) the US is in worse shape and full of even bigger dopes.

I believe in allowing anyone to express anything, but this is repetitive, baseless, and just plain mean.

This place is above that.

Ride off somewhere with no internets Leroy.
——————————————————–

The guy is waiting everyday hitting F5 like crazy in front of the computer to post a wannabe-offensive message that actually comes out funny.

He’s basically punishing himself and you want to stop that?

#52 will on 04.01.15 at 8:28 pm

Yup. Like I’ve been saying ad nauseum forever, the Conservatives are not conservative. Stevie may be conservative. We don’t know. He probably is. But it’s clear that they don’t want you and I to be conservative. Oh no. They want us to be the opposite of conservative and spend spend spend. Because when we spend spend spend then THEY get to be conservative. Add to the mix that they put out enough language to make you THINK you are conservative. It just gets stupider and stupider.

#53 BlackDog on 04.01.15 at 8:31 pm

What I don’t think many understand regarding the new ‘family tax cut’, is that this tax change is a small step towards equalization, in that the discrepancy in taxes paid by different families earning the same family income will be reduced, but not eliminated.

I took liberty of copying this person’s comment posted online at a news article recently regarding the income splitting controversy:

“I have a 4 year undergrad, 3 year professional designation and a further 2 years speciality in tax. For the last 15 years I have been heavily involved in tax planning designing corporate structures, setting up trusts, partnerships, 85(1) rolls, personal tax minimization etc. There is a lot about tax I still have to learn but I consider myself fairly knowledgeable.

1. This isn’t a tax break for the wealthy. Any wealthy individual I deal with the first thing we do is setup a corporation and allocate a split of the income to spouses for income splitting purposes. So wealthy individuals (the top 5%) already benefit from this to a far greater degree than this legislation allows (the legislation shifts and saves 2K of tax burden, giving a spouse 140K income from a corporate that had no other income saves around 12K+ in tax).

2. This isn’t an unusual tax system. Countries including the US, France, Norway, Spain, Belgium etc all allow joint filing of taxes. Each household has the option of filing a single tax return. All of these countries allow income splitting to a much greater degree than Canada is proposing.

3. The intent is equalization of taxes. Right now 2 households living side by side each earn 100K in income total. In 1 a single individual earns 100K and the spouse earns 0 while in the other each spouse earns 50K. Why should the household with one earner earning 100K pay more tax than the other household when both have the same net income? This legislation is to help ease that.

4. So of course it benefits some people more than others. Tax is being paid unequally so to re-equalize it to a fair payment by all will of course mean some people benefit while others don’t.”

#54 The real Kip on 04.01.15 at 8:34 pm

Wow, you finally woke up to the bullshit war on terror our federal government has fed us.

Our country has, since the Second World War, always acted under the authority of the United nations except this time. This time our government chose to blindly follow America in its illegal Iraq folly.

We have no authority to be involved in Iraq. Wake up Canada and bring our armed forces home.

#55 Trojan House on 04.01.15 at 8:36 pm

#1 Leroy Washington on 04.01.15 at 7:01 pm

Um, Washington, last time we checked, oh about 6 years ago, millions of smart ‘Mericans found themselves underwater, unable to afford their home. How much did house prices drop? How many foreclosures took place? How many millions are now on food stamps? Yeah, Canadians are not smart, but ‘Mericans ain’t any smarter. Just like we have 10% less population, we’re about 10 years behind in the smarts department. In fact we’re probably a little smarter than US Americans judging by this clip:

https://www.youtube.com/watch?v=lj3iNxZ8Dww

In the words of Fred Sanford – “Lamont, you big dummy!” Just substitute Leroy for Lamont.

#56 Interstellar Old Yeller on 04.01.15 at 8:36 pm

We all knew people were buying houses using realtor math. Just sad to see people have used the extra rope (credit) to hang themselves.

#57 Will on 04.01.15 at 8:36 pm

Quick question for you Garth: would it make sense to buy preferreds on margin? What are interest rates like for margin accounts?

#58 Josh in Calgary on 04.01.15 at 8:38 pm

With borrowing to invest at an all time high, remind us again why US equities are a good place to be? Wouldn’t taking gains be prudent at this point? Ratchet up the fixed income and cash equivalents?

What have US equities got to do with Canadian household debt? — Garth

#59 JimH on 04.01.15 at 8:38 pm

#25 Mike T.
Mike, don’t rise to the bait! This guy is in all likelyhood NOT an American. Trolls will go away if nobody feeds them! And whatever you do, don’t sink to his level!

#60 Gary on 04.01.15 at 8:39 pm

Re#1 You are either stupid or trying to get our goat. Who in their right mind would want to live in USA? The housing prices reflect the demand. Where else can you buy a house for less than 100 grand?

#61 Kreditanstalt on 04.01.15 at 8:40 pm

So much for your rate raise. And that goes for the US too.

Central planners are in a box of their own making, but they can never admit it. To do so would negate all their neat Keynesian theories about “stimulus creates growth through more spending” and “deficits don’t matter”, “bubbles don’t exist, etc., etc., etc.

All the charts, models, economists, graphs and stuff about “insufficient aggregate demand” would go out the window. No central planner is going to destroy his thesis willingly.

#62 gladiator on 04.01.15 at 8:42 pm

Yeah, the Bank of Canada, on one hand says that people should abstain from borrowing more, and on the other encourages this very behaviour by lowering rates. So that, when TSHTF they can say “we warned you” and come clean out of the mess they craftfully engineered. And we will all be left to pay the price of their actions. Atrocious.

#63 Smoking Man on 04.01.15 at 8:43 pm

Why is it, every time I hear Cathleen Wynees voice I have a recurring hallucination and nightmare. This image pops into my head, I’m at bottom of the Hoover Dam, the water breaks free, rather than the water drowning my , the cement morphs into an angry bird, it attacks me, but rather than biting off my head, it goes for the thing that makes me a man.

She did too insane things today. First trying to school the state of Indiana how to run their government policy. Perhaps the state government officials are a bit creeped out, homo phobic , last time I checked its not against the law to be homo phobic.

But for two consenting strait adults in a mutaly agreed transaction now makes the man a criminal in Ontario.

Perhaps the straight officials get a weird feeling watching all the vidios of naked men from our gay pride parades visuals that may creep them out a bit..

She says to business , come to Ontario. Were you can be welcomed as gay or a lesbian, they can , good herd here.

I hope they read the fine print first. Highest, real estate, airfare, electricity, insurance, food, taxes, debt, I could go on but I want to start on my wine soon.

She prides herself on morality and values, her favorite word behavior . Today she agreed to support Harpo prostitution Laws… Completly unconstitutional and she knows it.

Men, she hates us, all the years of hidding in the closet may have put some kind of vendictive spirit in her soul.

Now that its cool for men to wear pink shirts, speek in higher octaves, let’s keep up the momentume til all of us are chewed up by an angry bird.

The poor widower, loyal to the end for his wife, will not engage in a relation ship, but to maintain prostate health he engages a rental to assist.

The ugly creepy one, no chance for a date, may now be trolling the streets for our daughters.

And let’s not forget the young intelligent female entrepreneurs sucking in stupid men, board men, for thousands, hello!!!!!!

I guess Wyeen thinks there is more dignity in being a university educated female working for minimum wage as a server, getting groped by drunken men in bars they work in, tollorating it all for the big tip thats never big enough and sometimes is a no show.

She thinks thats better than a young female entrepreneur, her condo paid off completely, free and independent business woman. Selling a fantasy, a 15 minute fantasy making then times the money as the server girl.

Feminism has come such a long way, hasent it.

#64 Washed Up Lawyer on 04.01.15 at 8:49 pm

The head of the Fort McMurray Real Estate Board slipped on an icy sidewalk and when he came to, his doctors were surprised that he exhibited a strong streak of integrity. The first thing he did was reinstate the monthly stats on the website.

For those who are interested (and for the life of me I cannot imagine why anyone would be) they can be found here:

http://www.fmreb.com/market_update

#65 Ralph Cramdown on 04.01.15 at 8:57 pm

#30 Mom at Home — “His newsletters and research costs a bit and I am wondering if other financially minded individuals out there currently subscribe and find him valuable.”

Warren Buffett runs a little fund currently valued at US$360 billion. He charges a management fee of $100,000/year, plus head office expenses, which are low. That means if you bought US$200k of Berkshire Hathaway, he’d be investing your capital right alongside his, and he’d be charging you a nickel a year.

Or you can go with the guy whose father invented the crouton and whose mother was a belly dancer of renown.

http://thecivillibertarian.blogspot.ca/2014/07/weeding-out-charlatans-sunday-collage.html

#66 Nora Lenderby on 04.01.15 at 8:57 pm

#158 Holy Crap Wheres The Tylenol on 04.01.15 at 1:58 pm
…Heres to boating season!

Not boating quite yet. It’s bottom sanding and varnishing season. Avast behind!

#67 SWL1976 on 04.01.15 at 8:57 pm

#25 Mike T.

…I believe in allowing anyone to express anything, but this is repetitive, baseless, and just plain mean.

This place is above that.

Ride off somewhere with no internets Leroy…

———————————————-

…Leroy should be more concerned with what his own government is doing rather than lipping off Canadians on this pathetic blog

See what blind patriotism gets you following the crime of the century… 9/11

Wake up folks… Only minutes to midnight now

Sadly this is no April fools

#68 Will on 04.01.15 at 8:58 pm

The frauds in Ottawa gotta go. We need a conservative government to replace them ASAP.

#69 Herf on 04.01.15 at 8:58 pm

“The budget, of course. Just when you thought the economy sucked so much the feds would never get around to telling us what they’re doing, it looks like Joe Owe can wait no longer. Word has it he’ll pop the date Thursday at 9 am EDT when he holds a presser at a Toronto manufacturing company.

And how appropriate is this? It’s the Canada Goose facility. So bend over, and pucker.”

I think Joe Owe is the one who needs to pucker, and good and tight lest some unemployed factory worker (or perhaps Mulhair or Justine) be tempted to launch a spear, pitchfork or javelin up his posterior. In the Big Owe’s appeal to Canadian patriotism, he doesn’t seem to be aware Canada Goose is now owned by the Americans. (Oops):

“In December 2013, Boston-based private equity firm Bain Capital bought a majority stake in Canada Goose[13] for an estimated $250 million. The deal included a commitment to keep manufacturing in Canada.[6]” (Wikipedia – “Canada Goose (clothing)”)

Confirmed by:

http://www.baincapitalprivateequity.com/investments/canada-goose

How long can Bain’s “commitment” to keep manufacturing in Canada, last?

(Disclosure: I only heard about the Goose’s take-over by Bain earlier this week (or late last) from some phone-in caller on a Toronto radio talk show, and I decided to verify).

#70 OttawaMike on 04.01.15 at 8:59 pm

What surprises me is that nobody has thus far mentioned that Can Goose is now owned by an American private equity firm, Bain Capital. Mitt Romney’s firm.

Good thing Prozac did his homework on where to hold his media thingy..

#71 Mark on 04.01.15 at 8:59 pm

“would it make sense to buy preferreds on margin? What are interest rates like for margin accounts?”

If you shop around, you can find margin debt at rates of 1.75%. Even less if you can borrow a few million.

As for the question of if you should, that’s a question of suitability, risk tolerance, and diversification. In the case of preferreds specifically, a good number of issues are callable/retractable/redeemable by their issuers, and particular attention needs to be paid to such.

Personally I’m in the camp in believing that if securities are majorly mispriced, people a heck of a lot smarter than me probably have already seized such opportunities. Especially in the fixed income space which is heavily populated with funds seeking to deploy ungodly sums of money. At the end of the day, the balanced portfolio as prudently suggested by the likes of Garth et al, would appear to facilitate a superior Sharpe ratio than most other portfolios that people can construct, especially DIY’ers without large amounts of capital.

#72 bigtown on 04.01.15 at 8:59 pm

As a boomer voter it looks like I am voting for the best hair in the next election. We all know the party starts with an L and the leader starts with a “T”.

It is truly a Canadian story our Mr Harper et al. People say we are a boring bunch but it just looks that way on the outside. I mean like when you are in the states you rarely see a news story on Canada and people are more impressed with a national from everywhere but Canada. I hope Conrad Black does a book on Harper after Harper retires. It is such an interesting country but the people have a way of looking bland…who wants to get attacked by BEARS?

#73 Keith in Calgary on 04.01.15 at 9:02 pm

108,000 realtors……really ??

No wonder service at McDonalds is so slow these days…….everyone changed jobs.

#74 The American on 04.01.15 at 9:05 pm

At #17: Canada already has blown its brains out. You just don’t know it yet. Sorta slow on the draw…

#75 Drill Baby Drill on 04.01.15 at 9:07 pm

#1 Leroy Washington
You are a first class Butt Vent. I can tell you live on food stamps and are truly envious our our way of life here in the True North Strong and Free. Oh by the way how is your sieve of a southern border doing?

#76 The American on 04.01.15 at 9:07 pm

Leroy Washington, although extremely entertaining, is without question not an American. He/She encompasses all the stereotypes that only an ignorant Canadian would believe and American to be. It does, however, make me laugh my ass off. As usual, it’s a Canadian trying way, WAY too hard.

#77 Mark on 04.01.15 at 9:10 pm

“Ratchet up the fixed income and cash equivalents?”

Stocks, especially in the US, might seem expensive. But so does fixed income and cash.

So how does it get resolved? Seems to me that throwing money at fixed income/cash is like selling one bubble, and merely re-investing in another.

Might it be time to look long and deep for an inversely correlated asset class to harvest gains in, instead of using the traditional standbys?

#78 TTC Transit Enforcement Officer on 04.01.15 at 9:11 pm

Hiya Garth!

I’m here for some paid duty overtime – understand you’ve got some problems with some posters with attitude.

No problem, bud. I will take care of them for you. A few dozen smashes to the skull of those losers will have them thinking twice before posting more babble.

Who do you want me to pummel first? Mark, Smoking Man or Ralph Cramdown? I’d be happy to smash all three for you – that’s the kind of public servant I am, yessir!

And btw, if Poloz or Oliver try to catch a subway next time they visit Bay Street, they’ll have me to deal with.

It won’t be pretty. And I’ll make sure there’s no video next time.

#79 Herf on 04.01.15 at 9:11 pm

#20 Cici on 04.01.15 at 7:29 pm

“Is Garth’s photo trying to tell us Canuckistans that we’ve lost our heads or that we are in over our heads?

What’s the verdict Leroy?”

Herf here. I think it means Canucks have been so exposed to biffle-baffle from the real estate industry, banks and politicians, their heads/brains have become pickled. Either that or it’s symbolic of head-hunting real estate agents who have captured more trophies (i.e. indebted house buyers, moist millenials, etc.) to put on display.

#80 Rural Rick on 04.01.15 at 9:13 pm

Anybody know who owns this company?
Appraisal Institute of Canada
Cause soon they will own you

#81 debtified on 04.01.15 at 9:15 pm

Okidoki. That is step 2 of 3. Budget. Surplus. Awesome.

Next: Election

Harper will win again. Damn, I hate his guy but he is good at being a politician.

I might skip the election this year. The other parties are not any better. I’ll stay away from the continent.

Garth, check out my IP address. :) Life is short, I am living it up! Like you said, life shouldn’t be all about collecting stuff. It should be more about collecting experiences.

Thank you for all your public service. You are doing way better than Stevo. I am able to do what I am happy doing right now partly because of you.

¡Gracias!

#82 John Mc on 04.01.15 at 9:28 pm

Leroy ???

Come on people it’s just Garth trying for more comments on his blog. I mean seriously… you think its just coincidence that he is first so often.. trying to get things stimulated… geez…

Now that was a low blow. — Garth

#83 Drill Baby Drill on 04.01.15 at 9:29 pm

I have anecdotal evidence of how bad home sales are truly going in Calgary at the moment. A fellow work mate owns a home in a neighborhood where homes are valued (right now) at 1.0 to 1.3 million. He purchased a home 3 doors down 2 yrs ago for 980K. He has been renting it out and now needs to find a new tenant so he decides to sell ASAP before prices in his neighborhood really start to nose dive. So he outs it on the market last week for 880K and it sells in 1 day. Needless to say he is very happy even though he has taken a small loss.

#84 OttawaMike on 04.01.15 at 9:31 pm

#63 Smoking Man on 04.01.15 at 8:43 pm

You do know what the bible says about homosexualty?

Absolutely nothing.

#85 Smoking Man on 04.01.15 at 9:31 pm

#53 BlackDog on 04.01.15 at 8:31 pm
…..

Great post…I’ve rehired my son, he’s on my payrole he quit his job, I’m sending I’m on a cource, which is not sanctioned , it falls into specialized training, income is legaly split as my corp is paying CPP and all the other shit.

He’s going to learn how to build phone apps, them we take keysme my desktop kick ass text enctpition beast , put it on an iPhone, go from multi millionaire to Billionaires.

At which point becoming a permanent resident of bvi makes sense.

Just watch..

#86 Yyc not retired on 04.01.15 at 9:33 pm

Don’t worry yall the “benchmark” price is still going up up up in cowtown. No matter that median and average are decreasingly . The frankennumbers don’t lie.

#87 Marco on 04.01.15 at 9:38 pm

@The American

I agree with you about Leroy Washington.
Dead give away was opening his comment with, Sorry…
Pretty funny all the same.

Cheers.

#88 Will on 04.01.15 at 9:44 pm

Hey Mark #71 thanx for the food for thought. Yeah I know what it’s like to be redeemed. My theory is if you can identify a perpetual then maybe you can lock in something close to a risk free rate. With all the hazards that entails.

But here’s another idea: how about buying a redeemable that trades above redemption and will be redeemed in say 90 days or whatever. You plan to be redeemed and take the dividend. If the preferred is properly priced the position is cash neutral but you get the capital loss for free. Might be useful if the capital loss is what you want. I.e. to offset capital gains you have accumulated. Garth?

#89 Transplant on 04.01.15 at 9:49 pm

Time for Leroy to go #25 Mike T.:

His words are pure insult with no grasp that his own country (?) the US is in worse shape and full of even bigger dopes.

I believe in allowing anyone to express anything, but this is repetitive, baseless, and just plain mean.

Saying that “the US is……..full of even bigger dopes” is “just plain mean”. Having lived in both countries it’s my observation that there are dopes and meanies in both countries, but fortunately their numbers are far out-weighed by those who are neither dopey nor mean. Most of us, Canadian or American, are basically striving for the same goals albeit perhaps by employing different methods. Those who appear dopey are mostly just misguided.

OK, this is a financial blog, not actually a real estate blog so I had better give Mr. Turner some justification for allowing me to comment. Thankfully my financial advisors for the past 37 years could be clones of his. A key piece of retirement planning from the onset was that a house should not be included in projecting income to fund one’s retirement. Also, don’t spend money you don’t have or on items you think you deserve yet cannot afford. Also, have a balanced and diversified portfolio. Most important of all-don’t run out of money. This means you have to sock money away during your most productive years, even if it means delaying gratification. The “YOLO” philosophy is wacky; if you’re 65 and still have debt or little income that YOLO money won’t support you and you’ll have many regrets. Have some fun, but not more than you can afford.

A word for any novices to this blog. The only real financial advice you should accept on this blog is Mr. Turner’s. The comments should be read for entertainment purposes only and those include mine. I’ve commented rarely and only on matters that I have experienced personally. If you take specific advice on investing or tax matters from commenters, you need your head examined. You do not want to deal with the IRS or CRA-whether you messed up because of ignorance or malice matters not a bit to them.

Work hard, respect yourself and others, save, use good judgement, don’t be envious of others, and enlist the support of that person who seems to be so maligned on this blog but who will help you get through the worst of situations, your spouse/partner-you know, that person whom you loved and thought the world of when you made a commitment to each other.

#90 Retired Boomer - WI on 04.01.15 at 9:49 pm

Leroy Washington. Butt Vent -or- tellin’ it like it is?

My opinion, he isn’t too far afield. I like Canada. I like the Canadians I had the pleasure of working with. I do not like the conservative (where is the “conservatism” there?) government. Reminds me of “What me worry” G. W. Bush the idiot in charge & War initiator).

Not very impressed with Obama either, especially the lack of prosecutions of fraudster Bankers. Statute of limitations is running out of time. We did pull back from the brink, but are hardly the healthy stable country before RE took over.

You are now there. Impotent leadership, a citizenry gorged on debt because “they have to” to get a house.
While I feel for you, and the oil debacle which was not your doing, you will likely suffer from the delusional persuasions of your government.

Another rate cut, and it could be fiat acompli. I pray not, but who can stand to pay the bills?

#91 Obvious Truth on 04.01.15 at 9:50 pm

Joey and Stevie have been reminiscing of fairy tale days gone by eating maple sugar treats on the banks of the Rideau. Wondering how we got here. Thinking about how we will survive the difficult times ahead.

When they heard a distinct squaking overhead that is unmistakable to Canadians.

And it hit them.

“If we could only find the goose that laid the golden egg!”

But where to look?

Lets stay optimistic folks. Ya never know.

#92 Smoking Man on 04.01.15 at 9:50 pm

#82 John Mc on 04.01.15 at 9:28 pm
Leroy ???
Come on people it’s just Garth trying for more comments on his blog. I mean seriously… you think its just coincidence that he is first so often.. trying to get things stimulated… geez…
Now that was a low blow. — Garth
…..
Dude this comment section is the best on the web…and the more people that come..the better data the herdometer gets.

Most readers fearing negative judgment teachers tatood into there brains will never post.

Scared shitless, only thing they remember in school was watching a future smoking man being sent down to the principles office..

The other kids not realizing the principle was hooked on weed, and developed a great relationship with his new supplier.

Life is not fair.. And it shouldn’t be.. The Dumb deserve they’re fate.

Its how we evolve.

#93 Carl on 04.01.15 at 9:57 pm

Argghh…

Garth, “Looks atrocious” and “Are atrocious” are different. You don’t need to twist and shout you opinions to be listened to.

Seriously? That’s the best you can throw at me? — Garth

#94 Mister Obvious on 04.01.15 at 10:06 pm

#33 Michael King

“Another way of looking at it is that Vancouver now has a large and very wealthy upper class”
————————-

Yet another way to look at it is that Vancouver is packed to the rafters with deeply indebted fools.

#95 Mark on 04.01.15 at 10:08 pm

“But here’s another idea: how about buying a redeemable that trades above redemption and will be redeemed in say 90 days or whatever. You plan to be redeemed and take the dividend. If the preferred is properly priced the position is cash neutral but you get the capital loss for free. Might be useful if the capital loss is what you want. I.e. to offset capital gains you have accumulated. Garth?”

Obviously each individual case would have to be looked at and judged on its own merits. However, especially for a short-term trade, there would be significant transactional costs as a small investor, and the bid-ask spreads could eat significantly into whatever profit may arise from such.

To me, such a trade is effectively like trying to pick up pennies infront of a steamroller. Yes, if you’re quick about it, you can make a little money. But you’re much better off in a different line of work altogether.

I believe writings to study in Canada on preferred shares are those written by the name of James Hymas. But seriously, its a quite crowded space, and unless you have the sort of mathematical/analytical prowess of someone like Hymas to analyze the stuff and meaningfully move the goal posts in your favour, probably best to stick with the balanced portfolio and focus on systemic risk management instead of trying to scalp a few pennies on Preferreds.

#96 Obvious Truth on 04.01.15 at 10:08 pm

#64 WUL. Had to look.

Mobile with land. 400k. Lol.

Probably 25k in lillooet.

Same dinner jacket required when dining out.

#97 Bottoms_Up on 04.01.15 at 10:09 pm

#41 I donot understand? on 04.01.15 at 7:56 pm
———————————————————-
Actually Garth, could you confirm where Leroy is posting from? Is he a legitimate American, or a Canadian troll?

#98 Leo Trollstoy on 04.01.15 at 10:10 pm

26 signatures in 5 days. Wow. Hot. Will you refuse to sell if a Chinese guy shows up with cash? — Garth

Get rekt

#99 45north on 04.01.15 at 10:18 pm

In fact, we’ve allowed the real estate component of the economy to get bigger than all of manufacturing combined. And, as you know this week, the economy got smaller in January, with more to come.

we have allowed real estate to get bigger than manufacturing. Yet as it got bigger, there were rewards, total value of houses went up. More construction, more real estate salesmen.

Mark says that lending practices and interest rates are dis-functional. Money is readily available for housing but it’s not for business. I mean it’s less available for business.

Canada Goose! I thought that was a joke until I followed the link. Over the kitchen table I have heard the story of the garment industry in Canada. It has taken a beating. People have given their lives working in the industry. If there isn’t some kind of tariff protection then there isn’t going to be a Canadian garment industry.

Okay, there isn’t a garment industry so where are we going to work? There is still agriculture. Resource extraction like oil and gas. Aerospace like Bombardier and Pratt and Whitney, medical, retail, real estate and government.

Government has to lead. We’ll see on Thursday. That’s tomorrow.

#100 Retired Boomer - WI on 04.01.15 at 10:21 pm

#55 Trojan Horse

The S. Carolina beauty cones tent was picked for her hair, Boobs, nice Butt, and legs, in short her appearance. Too bad she was an Air-head. Dam good looking, just don’t ask her to find anywhere on a map, or maybe add…

#101 rainclouds on 04.01.15 at 10:25 pm

#83 DBD

So I guess those neighbour’s 1M plus homes are now worth…..880k ouch!

Pretty sure I know 2 people on this blog who didn’t purchase .

Both mildly amusing in a demented, simplistic, foaming at the mouth diatribe kind of way. Take a bow A is F and LW

#102 Spiltbongwater on 04.01.15 at 10:32 pm

26 signatures in 5 days. Wow. Hot. Will you refuse to sell if a Chinese guy shows up with cash? — Garth

Apparently the Chinese showing up with cash is not a real thing.

#103 Washed Up Lawyer on 04.01.15 at 10:33 pm

#96 Obvious Truth

Nicely heated Camembert with crackers that are not broken can be had up here in Ft. McM. Plus, on your way out of the restaurant you get to enjoy the sport of kicking the Ravens out of the way as they fight over the spilled French fries on the sidewalk.

#104 Smoking Man on 04.01.15 at 10:40 pm

The obsession and the quest for money, status on here cracks me up..

None of you guys, gals know the secret.

Your perfectly constructed sentences have a goal , my belief system is more legitimate than your belief system.

I sent a text to Nectonite to try and save you bastards.

They’re pissed at humanity , you pricks are lucky I’m here and obsessed with Las Vegas. Love that town.

Other wise , if the teachers pet was the commander, the ones who followes orders , you pricks would all be dead.

#105 Randy Randerson on 04.01.15 at 10:42 pm

“We’ve got 108,000 realtors now and only 60,000 workers in the oil and gas sector.”

I’d like to see the source, GT, please, so I can actually quote to people who doubt Canada is going down the crapper, instead of saying “I read it on GT’s blog.”

#106 Plain of Jars on 04.01.15 at 10:44 pm

Garth

Great but creepy picture…like a bad scifi movie showing the future of humanity and politicians who would be computerized pre-programmed intellects kept in jars…….the cabinet could all be kept in special jars in the cabinet(sorry couldn’t resist)…..cabinet shuffles engineered by knocking all jars off the shelf…

#107 April fools | Realties.ca on 04.01.15 at 10:49 pm

[…] Source: http://www.greaterfool.ca/2015/04/01/april-fools/ […]

#108 will on 04.01.15 at 10:51 pm

Hey mark#95

Thanx i’ll check out hymas.

#109 Drill Baby Drill on 04.01.15 at 10:52 pm

#89 Transplant
Thanks for the deep observations Captain Obvious !!

#110 Drill Baby Drill on 04.01.15 at 10:56 pm

#104 Smoking Man
Could you please submit to this blog a dictionary of Smoking Man terms so that we can
1) Understand your spelling
2) Help us to clarify just WTF you are talking about?

#111 stage1dave on 04.01.15 at 11:03 pm

Re: SWL1976 and the link to Jade Helm; that’s pretty scary stuff, another ‘false flag’ event in the offing?

(I must admit, however; that reading the comments section mollified my sense of panic, once I realized the freedom-loving American commenters were worried about impending “Marshall Law”…sigh…)

Anyway, kinda OD’n on conspiracy stuff lately thanx to a non-existent Federal budget, Baird’s departure, then a wanna-be Provincial budget, UFO’s checkin’ out the local rez, and a constant doom n gloom environment out here in Severely Normal Alberta…oil may be down in price by half, but the price at the pumps is almost back to where it was at $100/bbl.

Luv them ‘free markets’!

On a personal note, the wife & I have decided to ‘upsize’ & depart our apartment dwellings this summer. It’s been fun reliving our adolescent years, but we’ve realized we weren’t as stupid back then as we thought…probably why we left digs like this in the past!

Unfortunately, this will terminate my musings about the various benefits/drawbacks re: this lifestyle…haha…time for me to start bitching about something else anyway. This building recently got sold (again!) to an absentee LL, who plans no on-site management; & that proved to be the final straw.

We couldn’t get anything repaired on time WITH on-site management! Now I won’t even have anyone to scream at…blah.

So we’re headin back into a workin’ man’s bungalow, but still renting. The burgeoning collection of stuff demands nothing less, & the wife & I can back to breaking stuff all by ourselves, & then fixing it.

And I won’t have to put up with that crazy lady down the hall who can’t EVER park her car straight beside my truck…or people dumping TV’s into a dumpster at 8 am sunday morning (with a resounding crash) or the people trying to remove them at 9:30 am as noisily as possible. I won’t miss dodging the stray shopping carts either…

Yup, I’m really gonna miss this…my taste for communal living has expired…as has my patience for 70’s floorplans…not to mention ‘on-site’ laundry.

To get back on topic, I’m ever more convinced that housing in most parts of this country is in for an apocalyptic decline…the financial mandarins in the public/private domain have nuthin’ left in the holster.

(That may have been the plan all along, & if so they’ve certainly managed to stave off disaster longer than most countries in the so-called developed world, but in the end perhaps the results will be even worse)

I’m busy, the people I deal with are busy, but over the next few months these third & fourth hand stories I’m hearing will become second hand…both the wife’s brothers work in the patch, & they’ve had their asses parked since Dec. I’m back n forth thru Nisku/Leduc daily & the traffic in the north sector is way down…lots of almost-empty parking lots, lots of layoffs.

(I don’t work in the patch, but a quarter of my customers do; so I’m planning accordingly)

There’s enuff ‘chicken little’ mentality out here already, guess I don’t need to add to it…but I will say that if the two of us had run our household with the same financial acumen that this government has, we’d be scared too…and lookin’ for money!

We’re not, because we’ve stayed away from potentially unmanageable debt & saved about a tenth of everything we make in one form or another.

(we’d be cash buyers even in this market, but we’re not prepared to risk a good chunk of equity in a probably-declining housing market)

And this blog has helped to steel our resolve a bit, it’s sometimes good to know that other people are looking down the road somewhat farther than the end of their nose!

Soft landing or hard, we’ll still be able to walk away…

One other thing just occurred to me…lots of the car boards I’m on have ‘political’ forums, & the leadup to the U.S. crash left a real strong impression on me. What Mike Whitney once labelled “Bush’s Chernobyl Economy” around 2005 became a constant theme in several threads, & the comments became umm…somewhat unbelievable. The warning signs were all there, many people realized the numbers weren’t adding up, that the housing market was rigged, the mortgages not worth the paper written on, not to mention the whole CDS & ‘side bet’ market; and it still happened!

It’s also worth remembering the people who engineered it got away with the whole scam.

#112 betamax on 04.01.15 at 11:04 pm

#94 Mister Obvious: “Yet another way to look at it is that Vancouver is packed to the rafters with deeply indebted fools.”

Precisely. I work with many people making six figures, and most own in Van while complaining about living paycheque to paycheque.

Many of them have taken out further loans to supplement the middle-class lifestyle they feel entitled to, despite not actually having the cash to pay for it.

Sure, I see a number of wealthy foreigners in Van, but mostly I see a lot of in-debt Canadians who guzzled the Koolaid and asked for more.

#113 ed the slough on 04.01.15 at 11:06 pm

When is your next book due?

#114 Smoking Man on 04.01.15 at 11:17 pm

#110 Drill Baby Drill on 04.01.15 at 10:56 pm
#104 Smoking Man
Could you please submit to this blog a dictionary of Smoking Man terms so that we can
1) Understand your spelling
2) Help us to clarify just WTF you are talking about?

Instructions at the bottom of a wine bottle of white wine of something, bottom of a bottle of JD, just pain.

a better response in the morning when I’m not slurring my words

#115 NotAGreaterFool on 04.01.15 at 11:22 pm

Joe O is my MP. Over the last year, he routinely has sent out pamphlets boasting about Canada’s Economic Action Plan, Canada’s strong finances yet has been asking if he should balance the budget or spend more. He has been polling for some time.

#116 Ruane on 04.01.15 at 11:23 pm

#12 crowdedelevatorfartz
A Canada goose factory……WTH?
—————————-
Yeah, what you do is – you get a bunch of Canada geese together in one place. And then they make more geese.

#117 Mark on 04.01.15 at 11:26 pm

“if 80 billion has been taken out in recent months, CMHC had $546 billions from late last year and with a legislated $600 billion limit. They are well over the $600 billion limit, right?”

Trollstoy’s point is quite valid (and yes, I have no problem agreeing with him if he does say something that is true!).

CMHC’s portfolio of guarantees is constantly diminishing as people extinguish their debt on an orderly basis. Especially in the contemporary interest rate environment which has allowed people to make significant payments against principal. So $80B sounds entirely plausible and I have no reason to doubt the accuracy of the claim.

#118 experienced.optimist on 04.01.15 at 11:31 pm

From #43 Habs76-79 on 04.01.15 at 8:04 pm

“Here is what I see unfolding. The PM and his govt. will finally pull down a budget. They will by hook or by crook announce it as balanced. Maybe they may try to lay a surplus, bogus as it would be. He will then soon pull the plug on the Parliament, likely using the budget as a trip wire by May and we will see a late June or early July election. Summer votes have lower turnout and that can often help failing govts.”

What scares me about what #43 has to say gives me a kind of deja-vu feeling that I (We in Saskatchewan) have been through this before. Back in 1986 we had a provincial election dubbed the “Hot Tub Election”. The province was already in financial trouble but both the Conservative party and the NDP of the time went on a bidding war for our votes. Making like everything was coming up roses. The Conservative handily outbid the NDP that time. Who would have thought. In the end, Saskatchewan could not meet it’s debt obligations. It was not until 5 years later (1991) that we had another election.This time the NDP won and reduced the Conservatives to 10 seats. (http://en.wikipedia.org/wiki/Saskatchewan_general_election,_1991).

It took a History Professor from the U of S as finance minister to help start getting Saskatchewan out of this mess. (Not a Bay Street Banker) It was not pretty. Deep cuts can hurt. For those of you more interested in following period here is a link to a book she wrote about this era.
“http://www.amazon.ca/Minding-Public-Purse-Political-Trade-offs/dp/0773527494” .

From the introduction “Janice MacKinnon became minister of Finance for the province of Saskatchewan in 1993, under NDP Premier Roy Romanow, just as the province became the first casualty of the debt and deficit crises that dominated both provincial and federal politics throughout the decade.”

And ,yes, I am a left of centre type of person. But I did have the privilege to vote for the Conservatives in 1982 and could not quite vote NDP yet in 1986 , for a bit too much arrogance in the 70’s and 80’s, so went Liberal and just threw my vote away here in rural Saskatchewan. But I did vote.

The point of some of this is that I do remember the past in the hope that I do not repeat past mistakes. Same for all of us when it counts.

#119 millenial1982 on 04.02.15 at 12:04 am

This blog would be even more interesting if it adopted a like/dislike option for each post. Just make sure losers can’t like their own posts more than once. These “first” posters would have a new lease on life and spend all night doing that.

#120 millenial1982 on 04.02.15 at 12:14 am

#110 Drill Baby Drill on 04.01.15 at 10:56 pm
#104 Smoking Man
Could you please submit to this blog a dictionary of Smoking Man terms so that we can
1) Understand your spelling
2) Help us to clarify just WTF you are talking about?

Do you realize you’re messing with the most entertaining online persona on this blog? You might fare better if you read his posts in a half buzzed state.

#121 Exurban on 04.02.15 at 12:22 am

#24 DisgustMadeMePost

I was amazed to see real estate listings on the wall of the sitting area. Never seen that at a bank before.

You see it a lot in the Vancouver area. The RBC branch at Davie and Pacific has condo listings covering most of the wall space.

#122 RayofLight on 04.02.15 at 12:46 am

So the big question is, “How do you get a head into a glass jar?” Is something like getting an egg inside a beaker? Fill the beaker with steam, place the egg on top, wait for the steam to condense, this creates a vacuum, voila?
How many trys did this take? How many jars? How many heads? Curious minds want to know !

#123 Joe2.0 on 04.02.15 at 1:00 am

CIBC on Lonsdale North Van.
1st year 1.99%
4 years around 2.8%
Also posted on the banks walls are a bunch of RE listings.
Can you say cartel.
The sheeple don’t have a chance.

#124 devore on 04.02.15 at 1:15 am

The purchase price PAID for a first-time home in Canada increased by the exact same amount of the lowered payments that resulted from that decrease.

No duh. That’s exactly what a subsidy does; the price goes up.

#125 devore on 04.02.15 at 1:20 am

#11 VanRant

Not every mortgage is insured by CMHC, there are other insurers, plus lower ratio mortgages do not require insurance. There are also some insured loans that were retired during this period.

#126 The American on 04.02.15 at 1:21 am

At #31: Lala, in case you missed geography class, I should inform you that Mexico is a country also found in North America. Just saying’….. Oh. My. God.

#127 devore on 04.02.15 at 1:27 am

#19 ShawnG in TO

by lowering the interest rate, BoC also lowers the Canadian Inflation. How? House prices are not calculated in the inflation, only the mortgage interest

But that’s not true, because debt service costs are fairly steady across time; ie, the monthly payment. Lower interest just means it’s party time. Borrowed money floods the market and bids up prices for goods and services, which outweigh mortgage interest costs by a fair margin.

When someone borrows money, either in form of a mortgage, or a HELOC (enabled by growing equity due to price appreciation) it is to spend it, meaning someone else receives it. When people have money to spend, which prices go down exactly and why would inflation be lowered?

#128 The American on 04.02.15 at 1:28 am

At #41: IDon’tUnderstand, then perhaps Canadians should stop pulling America into every discussion they possibly can, if you don’t want Americans pointing fingers right back at you. Canadians are delusional about their own set of problems because 1) Your whole three television stations are government owned and operated 2) Your centralized bank, banks, and government CONSTANTLY lie to your citizens about the real economic circumstances plaguing Canada 3) Canadians in general love to sit at the boarder and jerk off to pictures of the U.S., whether they admit it or not. 90% of your population lives within 60 miles of the U.S. border? Coincidence? Absolutely not. And don’t feed us any more of your bullshit about how the rest of the country is not habitable or too cold. Tell that b.s. story to people and nations who are much farther on the globe than you. One last point, you can thank us for the bailout your country’s banks received, as well as the military protection you receive at the expense of the American tax payer. (EPIC mic drop here). And if we’re so evil and stupid, why does Canada inevitably always follow us about a decade too late in nearly all political policies and economic realizations? Get over yourselves already… You try way too hard to accomplish so very little.

#129 Nagraj on 04.02.15 at 1:37 am

#5 Brian Ripley
Thank you for the link to Frances Horodelski interviewing Vikram Mansharamani on BNN.

Vikram’s smile was pure elegance, there was obviously NOTHING in that nine minute interview to evoke mirth. Vikram might have said, I am outlining for you the basics of A Requiem For Canada. His was a quintessentially courtly smile. A well informed Ms Horodelski handled herself with consummate poise.

Canada used to be a young country with a future.

Loudmouth levity, gallows humour, deliberate witticism, and whatever stupid optimism – Canadian public dialogue is just so averse to anything smacking of gravitas. Mansharamani’s diagnosis, verdict, is as serious as it is deadly: You have no hope.

#130 TRT on 04.02.15 at 2:44 am

Vancouver average price hits above $1.4 Million !!!

Wow!

Those locals are crazy carrying $1.3 million dollar mortgages…monthly carrying costs around $6000 after tax. Delusional Locals.

#131 drydock on 04.02.15 at 3:29 am

#1 Leroy Washington on 04.01.15 at 7:01 pm

You forgot to say fuuurst.

#132 Nemesis on 04.02.15 at 3:32 am

#TheIdesOfMarch&TheFoolsOfApril,Or… “TheBeautyOfHope… #TheAbsurdityOfWar… #AndTheEnduringPower… #OfTheHumanHeart”…

https://youtu.be/oViFyQgzk_I?t=1m36s

[NoteToGT: Historicity… Then: https://youtu.be/p-v9jB1eyaE ; https://youtu.be/TTqVXsx6LtY &Now: https://youtu.be/Wsljv91qdHA ]

#133 Vanecdotal on 04.02.15 at 4:25 am

#83 Drill Baby Drill

“So he outs it on the market last week for 880K and it sells in 1 day. Needless to say he is very happy even though he has taken a small loss”

… and $880k is, in just one day, now the NEW comparable for the “$1.0 – $1.3 million” homes in his ‘hood, meaning similar nearby homes just suffered a “paper loss” of $120k – $420k. Overnight.

This is what the tipping point of a sharp RE correction looks like, a snapshot of a moment when the overriding market sentiment turns from greed, to fear.

Yogi Berra said it best: “It’s like deja-vu all over again”… I’ve seen this before, @ 2006 Los Angeles.

#134 Vanecdotal on 04.02.15 at 5:17 am

#103 Washed Up Lawyer

LOLz… Ravens the local hockey team? … or birds?

Works either way.

#135 Vanecdotal on 04.02.15 at 5:22 am

#112 betamax

+1

“Precisely. I work with many people making six figures, and most own in Van while complaining about living paycheque to paycheque. ”

Heartily concur. You are describing most of my colleagues.

#136 abuser on 04.02.15 at 6:46 am

Its election year. You can totally see what is next.
The game is not to do whats best for Canada, but to stay in power, reguardless of the consequences.

The budgets is going be tons of promises to buy votes.
Followed by a cut in interest rates.

Now that the oil sector is dead (remember most of the jobs created in the past few years were in Alberta).

They can’t let real estate industry collapse too. Can’t go into election year with a tragic unemployment number.

But once elected, its the thank you very much. Now we have 5 more years. Let the manipulation come undone so we can fix it just in time for the next election and look like heroes. But if they lose, it will sure look like the bush era. Let it come undone and blame the conservatives before the new government takes over. So they will look like heros who save the economy in 5/10 years, just like the Obama script

#137 bigrider on 04.02.15 at 6:49 am

Yesterday night, 6 people split 35 million in the lotto 649 draw. Previous draw saw two people split 25 million.Last week there was a winner of 50 million in lotto max.

Seems that every month there are at least 20 to 40 new multi millionaires being created when you take into account all the various lotteries available including million dollar plus scratch tickets and hospital lotteries. Thats a lot of people every year, year in and year out.

My question , is it possible that these newly created millionaires are helping to drive or at least support housing prices in the GTA and Vancouver on luxury home product ? Or is it still to few to make a difference

#138 maxx on 04.02.15 at 6:52 am

“It’s the Canada Goose facility. So bend over, and pucker.”

Exquisite irony- priceless. For everything else, there’s……..

Actually, if the state of job loss, job-quality erosion and astronomical debt weren’t so bad, it might be hilarious.

Only a few years ago, our “leaders” were prancing across the global stage, arms akimbo, like the world’s answer to all fiscal ills. Pity the laying on of hands was so short lived, they seemed to be having such fun. Big smiles all around.

They simply won’t understand and dispense the much-maligned medicine that all economies need:
raising rates.

Raising rates is not the “bogey man” of economies. Business has successfully convinced government that raising rates will destroy any possibility of recovery. Business also repeatedly succeeds in getting its tax load reduced at the expense of taxpayers and by extension society’s quality of life.

Wrong on so many levels. If raising rates is done correctly, it will get people spending again in the real economy. That’s true grass roots recovery.

But this government persists in pursuing the illusion of a magic bullet for the economy via fast tax revenue it believes is provided by FIRE.

And we end up with “atrocious”.

#139 Smoking Man on 04.02.15 at 7:30 am

May the Force be with you, UCC, science always a few steps behind me.

http://home.web.cern.ch/about/updates/2015/04/cern-researchers-confirm-existence-force

Obama saying it like it is.

https://www.minds.com/blog/view/429031571748556800/why-obama039s-ufo-statement-just-changed-the-course-of-history

#140 Ray Skunk on 04.02.15 at 7:36 am

#137 – Irrelevant really. The number of new millionaires is statistically insignificant when you consider that 650 new immigrants (mostly non-wealthy) arrive in this country daily, many of them to Toronto and Vancouver.

What is more supportive to housing is the number of secure, well-paid public sector jobs that are being “created”, particularly in Ontario and Toronto (where the provincial government does everything in its power to reinforce voter support). It’s 2015; instead of encouraging growth in smaller cities and telecommuting, the province is doing everything in its power to drive urban density and add to the infrastructure problems they are supposed to resolve.

This, not drop-in-the-ocean millionaire numbers, is what is helping to galvanize housing sales in the GTA.

#141 Victor V on 04.02.15 at 8:08 am

http://business.financialpost.com/news/economy/oil-crash-pits-bank-of-canada-against-the-fed-as-interest-rates-set-for-rare-divergence

The Bank of Canada is fighting the Fed for just the second time in two decades, joining global peers that are cutting interest rates as the U.S. is poised to tighten. Blame it on the oil crash.

The Federal Reserve will raise its key rate as early as June, while borrowing costs in Canada are headed lower even after the surprise cut in January, economists predict. The trend, spurred by the oil-price plunge and stronger U.S. growth, will bring the Fed’s benchmark rate above Canada’s for the first time since 2007.

#142 Serber on 04.02.15 at 8:29 am

@#54 The real Kip

Did Canada act under Un in 1999 when attacked Serbia?
Did Canada act under Un in 2012 when attacked Libya?

If you want to discuss history, please do not use CNN as your primary source of information. You should know by now: if you start with wrong premises you will end up with false conclusion.

#143 maxx on 04.02.15 at 8:31 am

Roast goose on the menu.

#144 BlackDog on 04.02.15 at 8:32 am

RE: #128 TheAmerican ” One last point, you can thank us for the bailout your country’s banks received, as well as the military protection you receive at the expense of the American tax payer. (EPIC mic drop here) ”

And thank you very much America, for forcing FATCA on us under threat of 30% withholding of all US pass-through payments to Canadian financial institutions!

Canada gets nothing out of FATCA (except relief from extortion), yet it is costing our financial institutions and government millions (paid for by tax payers and bank customers) just to implement FATCA, nevermind the ongoing costs.

USA’s FATCA enforcement will also steal money out of the Canadian economy directly from one million Canadians deemed ‘US persons’ when they are assessed bankrupting ‘Foreign Bank Account Report” penalties on their local Canadian accounts for monies earned wholly in Canada, but unreported to the IRS. Bad Canadian slaves…err I mean ‘US persons’ for not telling the king about their gold! Serves them right for those confiscatory penalties.

It will be interesting to watch the current lawsuit against the Canadian government for implementing American law on Canadian soil and violating the Charter Rights of Canadians in order to appease the Americans.

Thanks Harper for committing another Charter violation by agreeing to send the financial inventory of a subset of Canadians to the Americans.

Oh and, last by not least, thanks USA for being such a good neighbour (yes, spelled with a ‘u’).

#145 jess on 04.02.15 at 8:37 am

AI the new intern?

Financial analysts: Kensho, based in Cambridge, Massachusetts

…”the start-up can answer questions like: “Which stocks perform best in the days after a bank fails”.
” Journalists ” replacing a human researcher.” (new scientist)

ross – for lawyers

blue prism back office

medical -machine transcription this is driven by data on the human voice gathered in call centres.

http://www.newscientist.com/article/mg22630151.700-ai-interns-software-already-taking-jobs-from-humans.html?page=2#.VR0qco5Tvwo

#146 BlackDog on 04.02.15 at 8:45 am

oooops, I made a mistake in my prior post.

Re: ” USA’s FATCA enforcement will also steal money out of the Canadian economy directly from one million Canadians deemed ‘US persons’ when they are assessed bankrupting ‘Foreign Bank Account Report” penalties on their local Canadian accounts for monies earned wholly in Canada, but unreported to the IRS. ”

Canadians deemed ‘US persons’ are required to report the balance (along with other details) of their Canadian bank accounts NOT to the IRS, but to the FINANCIAL CRIMES ENFORCEMENT NETWORK every year on forms called Foreign Bank Account Reports (FBAR).

Since most Canadians with US taint (birth on US soil, one parent born on US soil, green card holder, snowbird), have never heard of FBARs, the Americans will have a bonanza assessing penalties for non-reporting once the full effect of FATCA is in force, especially since these penalties are designed to wipe out the value of the account and then some.

#147 Blair on 04.02.15 at 8:47 am

Garth,

RESP – Since the horizon is 18 years, would it be a good idea to do agressive 80/20 split equity to bond? slowly move towards a 60/40 split, then go all bonds at year 16ish.

For my normal investments, with risk tolerance considered, I do 60/40

In theory, that makes sense. The move into bonds over the years will be interest-rate dependent, but you have a long time to figure that end out. Many people make a big RESP mistake by defaulting to guaranteed investments out of a misguided sense of protectionism. — Garth

#148 crowdedelevatorfartz on 04.02.15 at 8:50 am

@#116 Ruane
“A Canada Goose factory?” Yeah, what you do is – you get a bunch of Canada geese together in one place. And then they make more geese….”
+++++++++++++++++++++++++++++++++++

Gee and I thought they were called Golf Courses

#149 4 AM Sunrise on 04.02.15 at 9:21 am

#116 Ruane on 04.01.15 at 11:23 pm
#12 crowdedelevatorfartz
A Canada goose factory……WTH?
—————————-
Yeah, what you do is – you get a bunch of Canada geese together in one place. And then they make more geese.

And then they take a crap on everybody. Don’t worry, it’s supposed to be good luck, eh?

#150 Broke Dick on 04.02.15 at 9:24 am

I can imagine how many novice wanna be investors ready to jump into the markets with the prescribed 60/40 portfolio read the doom and gloom posted here and then decide to put it off for another time.
For if there is so much bad going on then how can this be a good time to jump in?

On another note, should one have greater exposure to the small/mid cap US companies at this time seeing that the strong US dollar will be a drag on the big multinationals?

#151 not me on 04.02.15 at 9:40 am

I get up, turn the tv on and just caught the Minister of Finance “there will be no deficit” speech.
Reporter question: what oil prices will the budget be based on?
MF answer: oh… well… we will be speaking with the economists. LOL

It reminds me of the old communist country where people were instructed to spray paint the grass in the middle of the winter so it looked green because the head of the state was coming for a visit.

#152 Former Blog Dog on 04.02.15 at 10:03 am

For a career politician you sure sound naïve sometimes Mr.Turner:

“This poll actually should be a wake-up call for all the parties in terms of what they’re talking about and what Canadians want to hear about.”

Because Prentice sure cared about the 78% of Albertans that wanted corporate taxes/royalties to be looked at.

The quote was from Nik Nanos, not me. And, for the record, I think Prentice is doing what he has to for the good of a screwed-up province. — Garth

#153 crazed and a little confused on 04.02.15 at 10:14 am

hi garth,

thanks for the advice over the years. i will start considering to buy property even if its overed priced. im 43 years old waiting since 2008. i couldnt buy because I had a serious leg surgery and went back to school . its tough with a full time work and 1 or 2 ubc courses. but i finished . however i did buy some blue chips like mc donald , GE, Nivdea, barrick so i did do welll. just not as well as real estate…obviously.

of course real estate is unprecedent growth. SFH have not gone down but condos have a little bit. yes i ve been in the trenches, going to open houses and realtors ( tv news)lied saying 5 % up…maybe some areas but ive seen more like 5 % down. that ok if no one believes me

#154 Julia on 04.02.15 at 10:16 am

Garth,

RESP – Since the horizon is 18 years, would it be a good idea to do agressive 80/20 split equity to bond? slowly move towards a 60/40 split, then go all bonds at year 16ish.

For my normal investments, with risk tolerance considered, I do 60/40

In theory, that makes sense. The move into bonds over the years will be interest-rate dependent, but you have a long time to figure that end out. Many people make a big RESP mistake by defaulting to guaranteed investments out of a misguided sense of protectionism. — Garth

Thanks for that post and response.

#155 Godth on 04.02.15 at 10:41 am

#67 SWL1976 on 04.01.15 at 8:57 pm

Paul Craig Roberts-Inflationary Depression Coming
https://www.youtube.com/watch?v=IaB9EcUCkdI

The so called elites are doing what the so called elites have always done as a civilization circles the drain.
A Short History of Progress
http://www.goodreads.com/book/show/331227.A_Short_History_of_Progress

#156 Squirrel meat on 04.02.15 at 10:44 am

Driving season approaches in the US of A…hummer time tree huggers.

http://business.financialpost.com/investing/how-the-great-american-road-trip-could-ease-investor-pain-over-plunging-oil-prices

#157 Marco on 04.02.15 at 10:45 am

Employee priced mortgages at RBC. I thought car dealerships were the only ones offering this deal.
LOL

#158 Daisy Mae on 04.02.15 at 10:51 am

QUOTE: “The finance minister also indicated clearly for the first time that the budget assumptions for future revenue will be based on an average forecast of future oil prices provided to Finance Canada by private sector economists.”

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

Based on “average forecasts re future oil prices”? Potentially shifting the blame? The continuing poor economy then won’t be their fault?

#159 Blair on 04.02.15 at 11:16 am

Thanks for the advice Garth

#160 Nuke on 04.02.15 at 11:40 am

Just back from a road trip to Florida. There are so many great little towns in Florida, Georgia, SC and NC, Virginia and West Virginia etc. All enjoying Spring weather with new buds, flowers and warm sun on the face. Look at the real estate prices being 2-3 times income for big lots and beautiful homes. Driving into Toronto, was a real let down, cold, barren, no birds, no colours and still in Winter. The crazy idea of spending 3 to 4 times in Toronto compared to West Virginia for a iced in semi in a sketchy neighbourhood was like a hammer to the head.

If you had to take Georgia religious fundamentalism over Canadian real estate fundamentalism, I don’t think it is a contest.

Dundas-Yonge Square is surrounded by failed retail; Biggest Bookstore – bulldozed; Sears boarded up; Futureshop unplugged. Very bleak and very cold.

#161 Holy Crap Wheres The Tylenol on 04.02.15 at 11:46 am

#128 The American on 04.02.15 at 1:28 am
At #41: I Don’t Understand, then perhaps Canadians should stop pulling America into every discussion they possibly can, if you don’t want Americans pointing fingers right back at you. Canadians are delusional about their own set of problems because 1) Your whole three television stations are government owned and operated 2) Your centralized bank, banks, and government CONSTANTLY lie to your citizens about the real economic circumstances plaguing Canada 3) Canadians in general love to sit at the boarder and jerk off to pictures of the U.S., whether they admit it or not. 90% of your population lives within 60 miles of the U.S. border? Coincidence? Absolutely not. And don’t feed us any more of your bullshit about how the rest of the country is not habitable or too cold. Tell that b.s. story to people and nations who are much farther on the globe than you. One last point, you can thank us for the bailout your country’s banks received, as well as the military protection you receive at the expense of the American tax payer. (EPIC mic drop here). And if we’re so evil and stupid, why does Canada inevitably always follow us about a decade too late in nearly all political policies and economic realizations? Get over yourselves already… You try way too hard to accomplish so very little.
____________________________________________
Mr American I would say only that Canada isn’t America. America is and will always be a big part of Canada economically, militarily and politically. I was born in Canada and grew up in four different states in the 60’s. What I learned about America is that Americans are as proud and patriotic as any peoples in the world. Unfortunately too patriotic some times in the sense that they will follow unquestionably any instruction by the government blindly in the name of the pledge of allegiance. After living in Michigan, Florida, California and Arizona I grew up as an American, playing baseball, football, attended an American university and graduated as an Engineer. Hell I even joined the USAF and ended up shipping out to the shit hole Nam in 1970. Most of my best friends are American. Here’s where there is a difference between the two nations. Americans only get their news through three or four channels that are all run by either Republican or Democrat agenda. So what is the truth? Most Americans cannot even identify the correct location or state capitols of their own 50 states. Education within the nation only and about the nation only, very little worldly knowledge. Now ask an American to identify another country on a map, good luck. They live their lives within the same county lines and never goes beyond those lines let alone care about what is beyond them. Not saying there is anything wrong with that but it give one a very narrow view or snapshot of life. Living within 60 miles of the border isn’t necessarily because Canada wants to cozy up, its history and geography my friend. The Canadian Shield, is a large area of exposed Precambrian igneous and high-grade metamorphic rocks (geological shield) that forms the ancient geological core of the central northern North American continent, covered by a thin layer of soil. It is an area mostly composed of igneous rock which relates to its long volcanic history. It has a deep, common, joined bedrock region in Eastern and central Canada and stretches north from the Great Lakes to the Arctic Ocean, covering over half of Canada. Human population is sparse, and industrial development is minimal, while mining is very prevalent. Try farming rocks! Lands were settled early on in the east and generations migrated west, south and north of the starting line. Given good land to grow crops is paramount to sustaining life. That’s’ one of the major reasons people live where they do, not because they want to cuddle up to their southern cousins.
Thanks to both the Bank of Canada and the Fed Reserve for a bailout. “The Oxford dictionary defines bailout as ‘financial assistance to a failing business or economy to save it from collapse”. “That definitely was not the case here: not one bank in Canada was in danger of going bankrupt or required the government to buy an equity stake under taxpayer-funded bailouts.” By defining a “bailout” as being funded directly with taxpayers’ money, the banks can shield themselves from the accusation they got “bailed out” in the sense that U.S. banks got bailed out with $700 billion in cash from the U.S. Treasury, courtesy of the American taxpayer. Let’s be honest both banking systems floated on fumes at this period. I can’t argue about military protection where Canada has let itself go in defense. Canada was a nation to be reckoned with after WW2, it was a very capable and powerful military nation. Your (EPIC MIC drop here) would have been considered rude during the cold war. We were in hard way first not America, We were the first to nuked, all northern DEW lines, northern AFBs and cities. Toronto, Montreal, Edmonton would have been taken out first before Washington, NYC or LA. NORAD was created by both governments and integrated militarily by both countries. It maintained some of its military up until the late 50’s. The military development industry here was doing OK until Prime Minister Diefenbaker, under pressure from the US to join their defense plan by acquiring the American Bomarc missiles killed it. Faced with the skyrocketing costs, and the inability to sell the Arrow to Europe or the US, Diefenbaker cancelled the project on February 20, 1959. An angry A.V. Roe immediately fired his 14,000 employees, and the government ordered all plans and prototypes destroyed. Cancelling the Arrow made good economic sense, but the effects were felt throughout Canada. Most of the scientists and engineers involved in the project moved to the US, and Canadians bemoaned the devastation of the Canadian aircraft industry. Negative public reaction marked the beginning of the decline of Diefenbaker’s popularity, and led to his eventual defeat. My personal voyage to America was due to this industry being killed. My father was offered a job in California in the defense industry. Canada has never backed away from a war and has always committed 100% when called for. Conscription was only implemented in 1944. The major problem with the American government is it is always trying to be the world’s policemen with American policy’s that do not take into account other nations fundamental beliefs. Not every nation wants a coke, burger, fries and a Chevy in their bungalow after listening to Lawrence Welk and polishing their Smith & Weston 38 while chugging back a Schlitz. (Sorry for the analogy being dated but I’m in my 60’s). I don’t personally like the USA being branded as evil and stupid. It’s a great nation with great people. That type of sentiment is BS from simple minded shits I might add on both sides of the border. As for your statement of following the US 10 years later, while perhaps it’s a matter of analyzing what works and what doesn’t so take it as a compliment! Perhaps our ghettos of NYC, Newark, Detroit, Cincinnati, Atlanta, Philadelphia, Baltimore, East St Louis, LA, are still 10 years away and we can do something about stopping them.
Anyway I have had the benefit of seeing both side of the border. We are very similar in more ways than you think. Love both countries just hate narrow minded views!

#162 Snowboid on 04.02.15 at 11:57 am

#83 Drill Baby Drill on 04.01.15 at 9:29 pm…

He may be happy, but $ 200K in two years is a ‘small’ loss?

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

#146 BlackDog on 04.02.15 at 8:45 am…

Canadian snowboids are not subject to the provisions of FBARs, unless they are extremely stupid.

It takes about 10 minutes a year to fill out the required IRS paperwork (f8840) to ensure you aren’t considered a ‘resident’ for tax purposes.

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

#156 Squirrel meat on 04.02.15 at 10:44 am…

If our trip to the Grand Canyon this week was any indication, I would say that half the country decided to drive there the same day!

A tour guide I talked to told me it was the busiest day he had seen in 15 years!

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

In the meantime, on the real estate front – Kelowna is looking good. Local agent Amanda Westrheim, stated “…they can get a place for the price of a nice car…”

Then talking about the prices starting at $ 119,900, she may not have realized one can purchase a ‘nice’ car for less than half of that.

Going on to talk about the virtues of purchasing the condo in a less than desireable area of Kelowna, she says “…”I would be shocked if people didn’t see a return, and quickly…”

As if that wasn’t bad enough, the article also mentions the inexpensive trailers starting at $ 158,500 are an alternative if you are ready for the ‘detached life’.

http://www.castanet.net/edition/news-story-136618-1-.htm#136618

Real estate in Kelowna is indeed hot, hot, hot!!!

#163 Joe2.0 on 04.02.15 at 11:57 am

Can you make fleece out of goose?

#164 Ralph Cramdown on 04.02.15 at 11:58 am

“… [B]ased on an average forecast of future oil prices provided to Finance Canada by private sector economists.”

That would be the gang that was blindsided by the Bank of Canada’s rate cut.

#165 The real Kip on 04.02.15 at 12:02 pm

#142 Serber on 04.02.15 at 8:29 am
@#54 The real Kip

“Did Canada act under Un in 1999 when attacked Serbia?
Did Canada act under Un in 2012 when attacked Libya?

If you want to discuss history, please do not use CNN as your primary source of information. You should know by now: if you start with wrong premises you will end up with false conclusion.”

I don’t use CNN Serber. You and yours can go on ahead and bleed out on The White House altar. I’ll stay here and and offer 100% support.

Wake up Canada and bring our armed forces home.

#166 Ogopogo on 04.02.15 at 12:03 pm

There is no such thing as too many realtors. Doctors, teachers, firefighters, philosophers all bow to the mighty REALTOR®.

Remember folks, it’s the only profession that capitalizes its title, with a trademark to boot. How can anyone doubt it?

#167 pinstripe on 04.02.15 at 12:21 pm

I went for early moring coffee today.

Alberta is in a helluva Mess. The corruption planted by the last two premiers is out of this world. no one knows how prentice will come up to the challenge, but so far he is talking out both side of his mouth. The PC infighting is starting to bubble out the circle and there are some serious words.

for the first time there is a reduction in house prices where I live. a few properties had sale pending but no success in getting the funding. workers who had jobs with unlimited overtime are now hanging on with a 40 hr week. many older workers have been laid off since dec1/14. o&g contractors are working at 50% only because they have to finish some contracts.

the word around the coffe shop was interesting today and the old geezers had their ears and eyes open and mouth shut.

#168 TurnerNation on 04.02.15 at 12:35 pm

Attn. GICers, gold nuts, doomers.

Let’s check the ole balanced port.:

Since January 1, 2015 8.7%
For the past 1 year 20.6%
For the past 3 years * 9.3%
For the past 5 years * 5.9%
Since October 17, 2008 * 7.4%
* Annual compound rate of return

……………..

Still hanging with my Realtress a few x per week. The whole BRA conversation is moot.

#169 BlackDog on 04.02.15 at 12:37 pm

@Snowbird #162 re: “Canadian snowboids are not subject to the provisions of FBARs, unless they are extremely stupid. ”

Or uninformed about recent border efforts to track how much time they spend in the USA, or confused about how “substantial presence” is calculated, even for those smart enough to fill out the 8840.

“A Canada-U.S. agreement is in the works to share information on who’s entering each respective country, and when, for example. The Entry Exit Initiative already covers non-citizens of the two countries, but the plan to start covering citizens as well has been delayed.
Once that’s in effect, the U.S. government will be able to easily check whether snowbirds overstay their welcome.”

All snowbirds should make sure they are not meeting the financial presence test:

“The test determines whether you have been in the U.S. long enough to be considered a U.S. resident for tax purposes. The IRS determines this by using an unusual formula that calculates the total number of ‘days’ you have spent in the U.S. over a three-year span, and that number must add up to 183 or more.

They calculate the sum as follows:

Each day in the U.S. in the current calendar year counts as one day;
Each day in the U.S. in the prior year counts as one-third of a day;
Each day in the U.S. in the year before that counts as one-sixth of a day.
If the sum of those three numbers totals 183 or more, the IRS may insist you file a U.S. tax return.”

http://www.cbc.ca/news/canada/canadian-snowbirds-rules-you-need-to-know-1.2925513

#170 BlackDog on 04.02.15 at 12:47 pm

@HolyCrapWhere’sTheTylenol #161

I am starting to see a trend here. Those who grew up in USA, do not like to write using paragraphs.

#171 SWL1976 on 04.02.15 at 1:12 pm

#161 Holy Crap Wheres The Tylenol – Big PLUS ONE for your point of view on this topic

#172 Mom at Home on 04.02.15 at 1:14 pm

#65 Ralph Cramdown

Thank-you for your time to answer, input and link.
That was helpful. I will continue to keep investigating.

#173 TurnerNation on 04.02.15 at 1:18 pm

I hear GO Train platform assignment at Union station is changing. To which new one will Track 6ers be relegated? Oh the ignominy.

#174 Ponzius Pilatus on 04.02.15 at 1:28 pm

Employee pricing!
Which employee’s discount do they mean?
Obviously, the CEO get’s a bigger discount than the lowly teller.
Also, will you have the report the discount as a taxable benefit like the employees do?

#175 CHERRY BLOSSOM on 04.02.15 at 1:39 pm

DELETED (Anti-immigrant)

#176 Pre-Retiree on 04.02.15 at 1:39 pm

@#43 Habs 76-79: Here is what I see unfolding. The PM and his govt. will finally pull down a budget. They will by hook or by crook announce it as balanced. Maybe they may try to lay a surplus, bogus as it would be. He will then soon pull the plug on the Parliament, likely using the budget as a trip wire by May and we will see a late June or early July election. Summer votes have lower turnout and that can often help failing govts.

____________________

Agree entirely with this part of the comment. Who in their right mind would wait until the Feds raise the interest rate before calling an election?
A spring/summer election is likely in the cards.

#177 Pre-Retiree on 04.02.15 at 1:51 pm

#137 bigrider: My question , is it possible that these newly created millionaires are helping to drive or at least support housing prices in the GTA and Vancouver on luxury home product ? Or is it still to few to make a difference
______________________________

Above is probably one of the saddest comments I have ever read on this blog.

Anyhow, the Canada Goose announcement is indeed ironic at so many levels. One of them which has not been mentioned is how all the indebted Canadians like to walk around in a $700+ coat (Canada Goose: “we never have sales”) that they cannot afford but which gives them the illusion of being seen as suckers – sorry, I meant successful.

#178 Smoking Man on 04.02.15 at 1:52 pm

Iran nuke deal made, sanctions will be lifted soon.

Not good for Calgary or NutAndYahoo.

Can’t wait to read McCain’s twiits.

#179 DisgustMadeMePost on 04.02.15 at 2:07 pm

I have been trying to understand ROC.

So if I have an amount invested (non-reg but still not clear if choice of investment is limited) then I can draw an income. The amount drawn is deducted from ACB because that represents a draw on the initial investment, but isn’t taxed? Because I’ve already paid tax on that money. Once I draw enough out so that my ACB falls to zero, any further withdrawal is taxable.

So having 7 figures would allow for what amount of return annually?

I don’t understand why this is so confusing to people. Take money from your portfolio and spend it as income. You do not need to report it as income, nor does it affect any asset’s CB. You are taxed, per usual, on the income the portfolio actually makes (tax-efficient), which is re-invested. With a large portfolio (seven figures) there is always cash streaming in from interest and dividends. — Garth

#180 Rainclouds on 04.02.15 at 3:11 pm

#161

Great observations.

There are probably no 2 countries that are as similar on the planet.

I was in a store lineup in SoCal last year and struck up a conversation with a British woman that was talking about how she “finally got her green card” and could become an American. Mentioned I wasn’t interested in being American but it was a great country. The confusion on her face…….(you could tell she was trying to compute how someone could look and talk like a native but wasn’t)

Sometimes we disagree, hey nobody’s perfect

#181 PM on 04.02.15 at 3:15 pm

Portfolio question:

For DIY’ers. What is your make up? I’m using Vangaurd S&P 500 ETF for my US equities which I like what do you guys like for fixed income?What about international?

In a significantly-sized portfolio your US exposure should not be large-caps only. — Garth

#182 Employe Mortgage Pricing form RBC on 04.02.15 at 3:24 pm

There you go folks.
Never been a better time to buy a house.
Speechless yet ?????

#183 Ray Vasquez on 04.02.15 at 4:12 pm

Nobody uses their actual brain these days when it comes to long term financial pain.

A mortgage payment is just that but with companies that are revenue and profit makers and tax grabbing, center, left parties taxing everything they can in good and bad economic times, don’t people realize that water bills, garbage fees, property taxes, land transfer taxes, H.S.T., heating bills, electricity bills, new taxes and fees, condo fees, home and auto insurance etc., etc. are just going to keep inflating, passing all this to homeowners.

It is a losing proposition no matter how it is realistically it is looked at for anyone that buys a condo, house now.

#184 I'm stupid on 04.02.15 at 4:27 pm

In your opinion Garth, do you think they will up the toss limit to 11klike they promised?

#185 I'm stupid on 04.02.15 at 4:27 pm

Tfsa

#186 Julia on 04.02.15 at 4:35 pm

CMHC increasing premiums for higher advance rates (above 90%) and loans with non-traditional down payments.

http://www.marketwired.com/press-release/cmhc-to-increase-mortgage-insurance-premiums-2006510.htm

#187 not me on 04.02.15 at 4:54 pm

http://in.mobile.reuters.com/article/idINL2N0WY25P20150402?irpc=932

And here we go

#188 Retired Boomer - WI on 04.02.15 at 5:09 pm

#161 Holy Crap Where’s The Tylenol

Good rebuttal to a biased comment. I totally agree!!

#189 Snowboid on 04.02.15 at 5:09 pm

#169 BlackDog on 04.02.15 at 12:37 pm…

If you flaunt the rules around days in the US, you are stupid – why would you risk being banned from the country?

The math around the substantial presence test shouldn’t be confusing to anyone, even old farts like us figured it out!

Glad you added the link to the CBC article, the original used incorrect information around the f8840, which I kindly advised them of and they changed the next day.

You’re welcome, CBC! I hope no Canadian snowbirds filled out the original form they stated, or they would be in definite trouble.

#190 kommykim on 04.02.15 at 5:15 pm

RE: #181 PM on 04.02.15 at 3:15 pm
Portfolio question:
For DIY’ers. What is your make up? I’m using Vangaurd S&P 500 ETF for my US equities which I like what do you guys like for fixed income?What about international?

VUN is a good one for your USA holdings.

My revamped portfolio:
VXC for everything besides Canada.
ZLB for Canada
VSB and XRB for fixed income

#191 The American on 04.02.15 at 5:26 pm

At #144: BlackDog, I understand your frustration, and your confusion. Yes, your deeply twisted confusion. FATCA, in fact, protects U.S. tax revenue streams by preventing Americans from evading tax through stashing funds in offshore accounts and not reporting it. If you, for example, are a dual citizen, then make a choice? If you want to be an American, then with that comes responsibilities for you to adhere, in exchange for the benefits and protections of being an American. In other words, you gotta pay up! Otherwise, if you feel you don’t receive these benefits after doing your cost/benefit analysis, then stop whining about it, and instead revoke your American citizenship. It really is that simple. If you don’t like the price it costs to revoke it (nominal, mind you), ask yourself what you’ll be spending in taxes to keep your U.S. citizenship. You want your cake and eat it too. Sorry, pal, life just doesn’t work like that. Also, FATCA is an enforcement mechanism, not an actual tax.

“TD said it may cost $100 million to change over its systems (seriously, how antiquated are those systems! My oh my! I know how this works, as I work as a Sr. Exec in Global Transaction Banking, so try me). To deal with this problem, Canada and the United States have negotiated an Inter-governmental Agreement (IGA). Instead of having Canadian banks sending information directly to the IRS, it will go to the CRA, which will then send it to the IRS. There are a lot of practical advantages with this government-to-government approach, including dealing with the privacy question. Tax information can legally be provided by banks to CRA and CRA can legally provide it to other revenue authorities under exchange-of-information agreements. The IGA is merely an extension of this long-established practice.”

http://www.mnp.ca/en/media-centre/blog/2014/9/5/fatca-is-not-your-enemy

As for FATCA impacting the so-called “sound” Canadian banking system in an adverse way, well, that’s a personal problem for Canada. If it is indeed costing your banks millions in revenue, then you should ask the bigger question as to why? It shouldn’t be costing them a dime if they are doing the right thing in the first place. They too have a choice. Perhaps they should review their own policies surrounding the monies they are collecting by the Americans stashing it there. If they don’t like it, they don’t have to play. It’s really that simple. If your system is so hinged by American deposits to keep you afloat, that in itself speaks volumes to the “soundness” of your banks.

#192 Cookie on 04.02.15 at 5:35 pm

CMHC increasing fees again:

http://www.cmhc.ca/en/corp/nero/nere/2015/2015-04-02-1605.cfm

#193 Ben dover on 04.02.15 at 6:04 pm

#161 holy crap…

Thank-you for that input. An interesting, and in my opinion, very accurate assessment.

#194 crowdedelevatorfartz on 04.02.15 at 6:10 pm

@#180 Rainclouds
Reminds me of a trip through US customs I had about 20 years ago (pre 9-11)
There were 4 of us in the car.
A ex Brit with a very heavy British accent who was Canadian( with passport). An ex Czech with a very heavy Czech accent who was Canadian(with passport), a Brit who grew up in Canada and had a Canadian accent( and a British Passport), and me( a Canadian with no accent and a passport).

Mr U.S. Customs Agent looked like Abbott and Costello after “Who’s on First?” when he questioned the 1st three passengers and actually smiled when he got to me! Because I sounded like a typical Canuck and WAS Canadian.
The US is a great place, friendly, interesting people but I like where I’m living in Canada.

#195 black dog or white kat? on 04.02.15 at 6:16 pm

And thank you very much America, for forcing FATCA on us under threat of 30% withholding of all US pass-through payments to Canadian financial institutions!

Haven’t I read this whinge on the blog before by someone calling themselves “white kat”? Just pay your taxes like a good little monkey (or dog or kat). I know a few people who feel ol’ Uncle Sam’s hands on their hips and his warm breath in their ear but they have just accepted it and moved on. Better yet, why not move back to your native land and earn money in real dollars, not Canadian Drachmas .

#191 The American

It isn’t as simple as renouncing citizenship anymore. If you are deemed to be doing so to avoid/evade taxes the debt still stands and the next trip to America might not be so pleasant. This poor woman is screwed and there is nothing she or any lawyer can do about it.

A good friend of mine has seen his house appreciate by about 850k in the last few years and Uncle Sam wants his share despite the fact that this guy left the states at age 5 and has never worked there.

#196 jess on 04.02.15 at 6:28 pm

“cultural” problems within HSBC says usa monitor

…”using the moral parable of the sword just doesn’t seem to be working! maybe their next vacation + bonus rather than a fine is mandatory volunteering in a war zone.

http://www.theguardian.com/business/2015/apr/02/hsbc-cast-iron-certain-breach-rules-executive

#197 Rainclouds on 04.02.15 at 7:13 pm

#191

The FATCA legislation has cast a wide net encompassing people who have no reason to be involved. Someone who was born and left the US at the age of 2 (never to return) is now subject to having their lives impacted by a law created to help pay for the debt the US has incurred do to their homegrown profligacy. Consequently the US tax revenue problem has now become everyone’s problem (Make no mistake, we all pay for the information gathering)

That, is a classic illustration of the blinkered arrogance of the navel gazing US government attitude that seems to get them in trouble periodically….Over reach, unilateral dictates, Lack of interest/concern for other points of view from non voting, non Americans.

Were the shoe on the other foot and FATCA didn’t exist and Canada demanded financial information from a Canadian/US citizen (say Ted Cruz) how would that go?

Yes, Yes revoke your citizenship…….to avoid a punitive law…………OR How about winding the tax code back to Pre Bush……….(Sooner or later higher taxes ARE coming)

We have our own political idiots to contend with here we don’t need any more help thanks.

#198 The American on 04.02.15 at 7:43 pm

At #195: Uncle Sam does not tax on appreciation of homes. You’re taxed on the capital gain of the home ONLY if you sell, and it exceeds $250,000 USD for a single person, or $500,000 as a couple. The only taxable amount is the excess beyond these two numbers. If your friend’s home has appreciated, that’s understandable. He/she will not and cannot be taxed if he/she does not sell.

#199 BlackDog on 04.02.15 at 8:35 pm

@TheAmerican #191, You really should post your comment over at isaacbrocksociety.ca, or at least post some sort of comment or question there regarding FATCA. You seem to have strong opinions about it, and rather than waste time at GT’s blog, might I suggest you continue your dialogue over there?

The people that know everything there is to know about FATCA live there. They will try to make things clear for you, in a courteous way, as quite frankly you are quite clueless. Even the link you provide is to an article that is full of holes.

Come on over. I dare you to learn something new. Or at least to defend your point of view. Who knows, maybe you will stun people with your wisdom and breadth of knowledge.

#200 BlackDog on 04.02.15 at 8:45 pm

@195, re: ” Just pay your taxes like a good little monkey (or dog or kat). I know a few people who feel ol’ Uncle Sam’s hands on their hips and his warm breath in their ear but they have just accepted it and moved on. Better yet, why not move back to your native land and earn money in real dollars, not Canadian Drachmas .”

I am Canadian. I am strong. I am a fighter. There is no way, I will sit down quietly and let a foreign government tell me what to do, nor force the government of my home country to hand me over like a piece of property.

I left what you refer to as my “native land” with my Canadian born parents when I was one year old, never to return. Home has always been Canada, and always will be, regardless that I am now officially a second class Canadian.

What is wrong with you? Where is your concern for your fellow Canadian/neighbour/friend/co-worker? It might be me now, but it could be you next.

#201 RedDuck on 04.02.15 at 8:50 pm

@BlackDog #199, Dude you have no clue. You are a cry baby who began the talk of FATCA on this blog. It wasn’t The American. Can you blame him for countering you? You bitch and moan about it way too much. You want to talk about wasting too much time at GT’s blog? Stop wasting everybody’s time with temper tantrums that do not pertain to the discussion. You don’t like it when other people present facts that counter your lame opinions.

#202 BlackDog on 04.02.15 at 8:57 pm

@RedDuck #201, Don’t get your knickers in a knot.

If you recall, ‘TheAmerican’ was the one who started the whole thing by boasting about how much Canada owed the USA for whatever reasons – I forget. I was just bringing him down a wee bit in his glory with talk about FATCA.

Whose side are you on anyway?

#203 BlackDog on 04.02.15 at 9:01 pm

@RedDuck #200,

“You don’t like it when other people present facts that counter your lame opinions.”

Actually, I love a good honest debate, but you are correct, this is GT’s blog, not a FATCA blog, as I mentioned in my above comment directed towards TheAmerican.

#204 RedDuck on 04.03.15 at 1:38 am

@BlackDog #202, I am beginning to believe more and more The American is right. I didn’t read he was speaking how much Canada owes the USA. If you payed any attention at all you would notice The American was responding to a Canadian’s rant about how awful the USA is at #41. Can you blame him for that response? Maybe he is right. Do we start most of the arguments in our own special passive aggressive way, to receive a harsher response our ears are too sensitive to hear?

I am on nobody’s side in this case, but I have eyes, and my eyes have not lied. We have started most of these hateful comments, expecting our neighbours to remain silent and polite in the face of criticism, after we have been acting superior to Americans for years. Now, we are realizing our superior feelings have been nothing but delusion brought on by the feeling of instant gratification. We are in very deep. We are not richer than Americans if we consider our housing values are expected to fall by 30%.

Should we rethink how we approach subjects like this in the future? I believe we should. As a Canadian who has lived in the US over 23 years throughout my life, my eyes are more open to truths I do not believe we are given in Canada. I also have to say Americans I find generally more authentic and even more friendly than us. We measure everything differently to create statistics that are most definitely skewed toward fiction as opposed to reality. The US is not perfect, but I believe they are more honest, and it shows when an American has had enough of anyone’s needling.

Maybe you should stop and think. Respond. Do not react. I say this to you because you often forget what you have said and then accuse your opponent of the very behavior you started. It makes you appear ignorant and with no grace. For the record, The American has provided sufficient points and references to support his responses to you. You have not. Respond. Do not react.