Little piggies

PIGGY modified

So, would you stand outside for six hours, in the dark, on concrete, for the chance to get five bucks? Or maybe a thousand? Damn straight, if you’re a downtrodden #DontHave1Million Vancouver Millennial.

On Wednesday a local bank and mortgage flogger (Coast Capital) anonymously alerted the media that 300 little piggybanks full of coins and bills would be handed out the next morning, starting at 7 am.

“People are facing pretty hefty housing costs in the city and we want to give them a bit of a break – a little extra to help with other important financial goals,” the message said. “Tomorrow morning it might be $5 for their morning coffee, but it could be $100, $200 or even $1,000. We want people to start thinking about the larger picture of their financial well-being. A mortgage is a large part of that but there are other goals that set you up for success in the future and we want to help people reach those too.”

Well, the lineup started at 1 am. Chris went by and quickly saw it was a promotion for the bank’s new 2.25% variable-rate mortgage.

PIGGIES modified

“Marketing staff assured me everyone would walk away with something such as $1,000 off their mortgage, and likely other swag. I didn’t stick around long enough to find out,” he says. “From what I could see the line-up stretched 3/4 of the way around the block and contained possibly close to a thousand poor souls. Many certainly looked like they could use the money, and most appeared under 30.  It’s all a pretty sad state of affairs if you ask me.”

When the identity of the shameless self-promoters was revealed, the bank spokesguy added this: “We realized that housing costs in this city and around B.C. continue to rise, and we wanted to do something that symbolizes that people need help.”

Little piggies. Can anyone possibly find a better symbol for the delusional, house-horny, real estate-obsessed, price-swelling fanatics of YVR? Impressive. But in a sad way. Remember how we all felt so superior to Americans stampeding through public places to find caches of cash hidden in various cities last year?

Penn Park in Whittier, California suffered more than $5,000 of damages to trees, shrubs, fences, and sprinklers after more than 800 people got wind of the free money stashed in Pez containers by the creator of the @HiddenCash Twitter account, The Whittier Daily News reports.

Turns out we’re not so different, except we form nice lines when we stampede and swarm for freebies. Of course the bottom line is that yet another mortgage lender has victimized people, taking their intuitive greed and turning it into a marketing tool. In return for consuming their dignity, the company said it’s helping people.

It must suck even more than I thought, to be 30 and live in Vancouver.

Well, speaking of mortgages, CMHC just released its annual in-depth survey of borrowers, and so we have more proof that emotion, not logic, is the key motivator. The federal agency found that majority of people renewing their mortgages (60%, in fact) have actually been doing so before the term expired – which, in many cases, would mean forking over a penalty payment.

Now, why would they do that?

The main reason – “to avoid a perceived increases in rates.”

As we now know, US rates will creep up a little this autumn, then continue that trend for the foreseeable future. Canadian rates will follow, but the first change will probably not occur until some time in 2016. As mentioned yesterday, RBC thinks the Bank of Canada rate could be a point greater by the end of next year. Currently you can get a five-year floater for as little as 2%, then lock the rate up with a phone call if central bankers actually pull the trigger. However, about 80% of borrowers have now locked in to higher rates. Yes, scared.

This is why people buy stock in the banks. Did you see the profits? Those are the big piggies.

151 comments ↓

#1 Mike J on 05.28.15 at 6:57 pm

Banks, BIG Piggies indeed !!!

#2 Yaya on 05.28.15 at 7:01 pm

The Economist issue that came out today is dedicated to the sad prospects of young men in today’s economies – as the cover states, “the weaker sex; no jobs, no family, no prospects”. Nice accompanying cover pic…

#3 Godth on 05.28.15 at 7:05 pm

little piggies are born of big piggies…ginormous piggies in fact.
Financial Insanity Grips the World
http://drsircus.com/world-news/financial-insanity-grips-the-world

#4 Interstellar Old Yeller on 05.28.15 at 7:06 pm

People are irrational about free stuff. They’ll stand in line for ten minutes to get a free chocolate, or 45 minutes for a free ice cream cone. Not much concept of the phrase “worth it”.

Did the thousand people in the line up riot over the 300 piggy banks?

#5 4s on 05.28.15 at 7:07 pm

am i first?

#6 stockholder on 05.28.15 at 7:07 pm

makes me happy to own bank stocks. keep using the banks and i keep getting richer. One drip at a time. drip, drip, drip

#7 Yogi Bear on 05.28.15 at 7:08 pm

I bank with Coast Capital. They have free chequing accounts.

I would like to thank all of the house hornies with Coast Capital mortgages that pay for my free service.

#8 saskatoon on 05.28.15 at 7:09 pm

#151 Don’t stand for the sexism

ahhh yes!

all that white male privilege.

it’s EVERYWHERE!

https://www.youtube.com/watch?v=3mzYKWDx6YI

#9 ShawnG in TO on 05.28.15 at 7:11 pm

the guy in the picture is brilliant!
(the top picture, not the bottom one)

#10 Juanito on 05.28.15 at 7:16 pm

Just renewed my mortgage with TD:
-2.14% fixed for two years (1/2 my previously fixed rate)
-no penalty (within the 120 day penalty free window)
-was able to refinance up to 80% of the value that I gave them, $30k in new borrowing (yep, I’m a piggy)
-no appraisal necessary
-no shady hidden terms in the contract
-my mortgage payments went up an astounding $5 per week

Now, where to stick $30k?

#11 April. on 05.28.15 at 7:16 pm

I can’t find the “news article” I read about that yesterday (probably a sponsored post on FB), but it definitely implied that the bank was giving away 300 piggy banks with $1000.00 each in them. I mean: I don’t believe in Santa Claus anymore, but inexperienced people who skim their news could be excused for thinking there would be real money.

I was tempted because of a collectable piggy bank, so there ya go. :)

#12 ANON on 05.28.15 at 7:18 pm

Such bravery should not be forgotten! An ode to the all the courageous people waiting in line to increase the credit creation and keep the economy afloat at the expense of their own future and of the future of future generations! /sarcasm (or not?).

#13 Joe Schmoe on 05.28.15 at 7:20 pm

As god as my witness, I thought turkeys could fly!

#14 Randy Randerson on 05.28.15 at 7:20 pm

I wouldn’t stand outside like this for a day just for a chance to win a discount for my mortgage. I have better things to do with my life. OTOH I did line up for a free ice-cream cone from BMO last month in Vancouver. Nothing beats a free ice-cream cone on a hot May day.

This just shows how poor most people are anyway.

#15 mdm on 05.28.15 at 7:23 pm

bmo called me last month offering to renew my mortgage 2 years early, waving the fees and offering a low interest rate…they’re begging for consumers to rewrite their mortgages.

#16 Rennie should apologize on 05.28.15 at 7:23 pm

Garth – I was hoping you would use today’s post to call out Bob Rennie. In an attempt to undermine a critic of his – 29 year old woman Eveline Xia, he called her a “girl.”

Sexism has no place in this country.

“Rennie said his data showed buyers were happy to look far afield to find the home they wanted. “Yet we’re all paying attention to these girls, they’re holding up banners, and wanting affordability to be a party game. And it is a really serious issue,” he said.”

#17 bdy sktrn on 05.28.15 at 7:35 pm

#16 Rennie should apologize on 05.28.15 at 7:23 pm
————————————-
you should apologize for being an over-sensitive twit.

#18 Jon on 05.28.15 at 7:39 pm

Garth,

Finally, I think I got it. It’s starting to sink in.

-Real Estate is the best way to accumulate wealth.
-Millennials are your favorite generation.
-Foreign ownership is responsible for inflated Real Estate prices in Toronto and ESPECIALLY Vancouver
-The BOC knows exactly what it is doing.

#19 Andrew Woburn on 05.28.15 at 7:47 pm

#81 OttawaMike on 05.27.15 at 11:28 pm
#64 Andrew Woburn on 05.27.15 at 10:23 pm
Nice link. Really though, do you think big oil is going to roll over that easily to a new era of green energy?
=========================

Yes.

“Ben van Beurden, the chief executive of Shell, has endorsed warnings that the world’s fossil fuel reserves cannot be burned unless some way is found to capture their carbon emissions. The oil boss has also predicted that the global energy system will become “zero carbon” by the end of the century, with his group obtaining a “very, very large segment” of its earnings from renewable power.”

http://www.theguardian.com/business/2015/may/22/shell-boss-endorses-warnings-about-fossil-fuels-and-climate-change

However, hard-bitten Texas oil tycoons may not be on the same page as effete European metrosexuals. History suggests that the US Senate doesn’t much like ratifying international treaties, especially ones that might affect political contributions. This should allow Odummer to play to the ecogallery without worrying much about consequences. Failing that, someone will explain to him why grassy knolls are bad for your health.

#20 Rennie should apologize on 05.28.15 at 7:52 pm

@ bdy sktrn: I hope your daughter gets a job at Hooters.

#21 B Riding Dirty on 05.28.15 at 7:54 pm

NEWS FLASH LANGLEY MARKET

Wife is so house horny, baby two only 9 weeks out and our 2 bedroom townhome walls are closing in on her.

Langley house for sale:
http://www.realtor.ca/propertyDetails.aspx?PropertyId=15732682

Called the agent, only doing showing sat and sunday. 2 -4pm then accepting offers at 5pm sunday night.

I said what if i am willing to pay full ask now, no subjects? Sorry it seems like its going to be a multi bid, her words “bring your best offer sunday”

Is it legal to do this? Price low, attract interest, refuse full ask, force bidding wars?

So you know, I told her where to shove her 7 days of hard work commission, smoking man style.

This blog is the only thing holding me together from being one of those idiots.

#22 Slim on 05.28.15 at 7:57 pm

Garth,

Are you sure you’re not psychic?

Great blog!

#23 crowdedelevatorfartz on 05.28.15 at 8:02 pm

@ The American
SEE ! We are different than you ugly Americans!
We stand politely in a line to satisfy our greed.
When we push and shove we say ‘sorry’, or if we’re trampling people at a WalMart sale “Sorry but obviously I need that more than you…”

See. We are different.

Sorry, rant over.

#24 crowdedelevatorfartz on 05.28.15 at 8:03 pm

@#2 YaYa
link?

#25 Freedom First on 05.28.15 at 8:03 pm

Piggies. I like the sound of that word.

Hey, see all the banks around the world? See all the people working in the banks? Now, see at all the casinos around the world? See all the people working in those casinos? Now, think about who is paying the costs and profits for them, and know this, my goal in life is to make sure that not one penny of it is mine. Thank you very hard.

#26 crowdedelevatorfartz on 05.28.15 at 8:11 pm

@#16 Rennie should apologize for his verbal assassination of a gender specific female person of the human species

Seriously?
He should apologize because he called a woman in her late 20’s “a girl”?
My GAWD.
Whats next?
We’re not allowed to call that “BOY” Jason Beiber an idiot?
The horror of political correctness gone mad
(and then we realized………the Emperor wasnt wearing an invisable cloak……HE WAS naked! Gaaaaaaaaaaaaa!)

#27 Chaddywack on 05.28.15 at 8:13 pm

I bank with these people, I’m pretty sickened at seeing that.

In particular the irony of advertising their mortgage rates and saying that this apparently helps expensive housing….

Why credit union when you can bank? Maybe it’s time to switch.

#28 Paul on 05.28.15 at 8:14 pm

My mortgage Rep. At C.I.B.C tells my she has almost one refinance a day. Rolling H.E.L.O.C’s , credit card debt, and in some cases car loans into there mortgage to lower there over all payments plus paying the penalty.
It’ not ending well for a lot of folks!

#29 seeing it from both sides on 05.28.15 at 8:18 pm

Am I reading this right?? Ontario currently does not require property managers to be licensed, and are not regulated….??
Shocking!

http://www.theglobeandmail.com/report-on-business/economy/housing/ontario-unveils-new-legislation-to-protect-condo-owners/article24638213/

#30 Sheane Wallace on 05.28.15 at 8:19 pm

https://ca.finance.yahoo.com/news/real-estate-woes-secret-lives-090000545.html

#31 earthboundmisfit on 05.28.15 at 8:26 pm

Twenty-five years ago we had Bob Hope, Steve Jobs and Johnny Cash. Today we have no hope, no jobs and no cash. Please, please don’t let Kevin BACON die.

#32 sideline sitter on 05.28.15 at 8:30 pm

On my way to work today Nespresso was handing out flowers and a coupon code free coffee… now THAT was useful!

#33 Mr.Hulot on 05.28.15 at 8:32 pm

What’s the issue? Bob wouldn’t be upset if you called him a girl.

#34 JSS on 05.28.15 at 8:35 pm

This morning while I was sitting on the toilet doing my morning ritual, I read that CIBC increased their dividend. What a wonderful morning.

In the last 12 months, my CIBC dividends increased 6 percent, yet I don’t work there. Just parked some money there. At the place where I work, I work hard. But I haven’t had a wage increase in a couple of years.

Money for nothin…

#35 JuliaS on 05.28.15 at 8:36 pm

Fun fact off reddit. The building those people are lining up in front of in Garth’s photo was featured in X-Men 3 as the “Department Of Mutant Affairs”, also it was the one terrorists blew up in Vancouver made sci-fi show continuum:

http://s3.postimg.org/3xw2ht6v5/continuum.jpg

#36 Andrew Woburn on 05.28.15 at 8:37 pm

#119 Godth on 05.28.15 at 12:12 pm

60 Minutes Highlights Importance of Rare Earth Elements
https://www.youtube.com/watch?v=N1HiX0HiAuo
===================

Thanks for the interesting post. However, China’s real current advantage in rare earth’s is low production costs more than a hammerlock on supply. Canada, the US and Chile have substantial but underdeveloped and, as yet, uneconomic reserves. Also there are substitute technologies under development which could could use more available and cheaper materials like zinc.

http://www.wired.co.uk/news/archive/2013-07/31/race-for-rare-earth-minerals

http://www.gizmag.com/expanding-alloy-magnets/37621/

#37 Unumizer on 05.28.15 at 8:41 pm

A friend of mine who is very senior in a credit union told me that they are lending money on variables at a cost less than they are paying knowing interest rates will increase soon and they have them captive. I didn’t say what I thought about that.

#38 Hank on 05.28.15 at 8:46 pm

#17 bdy sktrn

And the male from yesterday’s example? The Copenhagen-bound 30-something-year old male? Is he a boy or a man?

I thought so. Please apologize for being a narrow-minded little dick yourself. Thanks :)

#39 Tiger1960 on 05.28.15 at 8:51 pm

If your aware while driving, you can avoid a collision !
Most aren’t !
Same goes for realestate !
99% of people , what a joke !
Monkeys are smarter !

#40 Tiger1960 on 05.28.15 at 8:55 pm

16#
Move into my new place, I will show you the new way, you will be impressed!

#41 yeah right on 05.28.15 at 9:04 pm

#36 Unumizer on 05.28.15 at 8:41 pm
A friend of mine who is very senior in a credit union told me that they are lending money on variables at a cost less than they are paying knowing interest rates will increase soon and they have them captive. I didn’t say what I thought about that.

….

Crack Dealers 101. Seriously.

#42 Suede on 05.28.15 at 9:05 pm

#16

Sexism or over sensitive ageism?

I’m offended that you called our host by his first name and didn’t address him as Mr Turner.

We’re blog dogs.

Leave your sensitivity, hatred and curse words at the door. Other than that anything goes. That’s how we like it.

#43 All relative on 05.28.15 at 9:06 pm

Garth, you should have seen the lines in December, a few hours outside in the cold then a couple of hours inside, in the hot.

Then you handed over a few days worth of your salary.

Finally you walked out tired, but victoriously. You had the 2 kilograms banana for the holidays.

Everything is relative. It was still a first-world problem. OK, 1.5-world.

#44 bdy sktrn on 05.28.15 at 9:10 pm

girl1
[ gərl ]
NOUN
noun: girl · plural noun: girls
1.a female child…

2.a young or relatively young woman.
synonyms: young woman · young lady · miss · mademoiselle
————————

who ya gonna cry to now? oxford press?

and i think someone owes hooters employees an apology!!!! :)

#45 BS on 05.28.15 at 9:13 pm

37:

And the male from yesterday’s example? The Copenhagen-bound 30-something-year old male? Is he a boy or a man?

He is both. Referring to men as boys and women as girls is perfectly fine. If I told you I had a girl friend would that mean I am dating a child?

#46 omg the original on 05.28.15 at 9:13 pm

This is why people buy stock in the banks. Did you see the profits? Those are the big piggies.
————-

This is one of OMG’s investing axioms –

“Canadian Banks never lose money, they just just raise their fees”

LONG LIVE THE CANADIAN BANKING OLIGOPOLY

The funniest thing is if we had a serious threat of A BIG UGLY AMERICAN BANK coming into Canada and lessening the power of the oligopoly we would have lefties and liberals marching in the street on mass to protect our Canadian banking machine – after all high banking fees is what makes us Canadian.

Like I say, long live the oligopoly – Canadian banks are a killer, almost no-brainer, investment.

Buy some shares of Canadian banks you will never be upset about banking fees again.

#47 Tiger1960 on 05.28.15 at 9:14 pm

Seems like the the 99% are still hard !
Just over the bridge ,Pitt mendows 25 k from van , 5 acres bought for 1 million 3 years ago now can’t get 600,000, appraised value 550. 000 wdut is going on!
I know !

#48 Brunett43 on 05.28.15 at 9:19 pm

SAD…….

#49 Sebee on 05.28.15 at 9:20 pm

I am ashamed. All those years wearing hoodies and this never crossed my mind. Great tip.

#50 omg the original on 05.28.15 at 9:26 pm

However, about 80% of borrowers have now locked in to higher rates.
—————–

Yet another reason why this bloated, grotesque Canadian housing market not will go down anytime soon.

With people locking in they have guaranteed themselves another few years of record low rates.

Locking in at for 5 years for sub 4% gives you another 5 years of record low mortgage expenses and a known fixed monthly cost.

With rates like that nobody is going to be forced to sell anytime soon.

This just adds to my thesis that we are in for a long slow grind correction that may last a generation.

Sorry folks – No US-type housing meltdown here….

after all we are Canadians.

Nobody credible has suggested a ‘US-style meltdown’ in Canada. Instead the threat is a rolling loss of equity as real estate values decline over time, squeezing household net worth, prompting more declines. This is called a bear market and, believe me, you do not want to go through it with too much leverage. — Garth

#51 Hank on 05.28.15 at 9:30 pm

Rennie should have used the word “women” as in:

“Yet we’re all paying attention to these GIRLS, they’re holding up banners, and wanting affordability to be a party game. And it is a really serious issue,” he said.”

“Yet we’re all paying attention to these WOMEN, they’re holding up banners, and wanting affordability to be a party game. And it is a really serious issue,” he said.”

He meant to minimize it by using the world girl. Just a “girlfriend” doesn’t quite have the same weight as “wife”.

Personally I’d rather have a girlfriend than a wife. The sex is way better.

This thread is over. — Garth

#52 GTA Observer on 05.28.15 at 9:33 pm

#16 Re: Bob Rennie. In an attempt to undermine a critic of his – 29 year old woman Eveline Xia, he called her a “girl.” Sexism has no place in this country.

Thanks for noticing. Sexism has no place anywhere. Struck that “girl” is still an acceptable term for grown women here in Canada, more than it has been in the States for quite some time. It’s painful to hear about a “girl” and turn to see a woman in her 40s. It’s a clue that she is not well paid.

#53 Oot der Hoos on 05.28.15 at 9:34 pm

to $28

I manage my property without being regulated. I am shocked you think every activity has to be regulated
with licenses and training-barriers to entry. It is communist thinking and raises prices by stopping competition and stopping free markets.

Laws are enough for us to obey and then we have courts. Let’s not have politically stacked tribunals ruling over us in every area of activity.

#54 Andrew Woburn on 05.28.15 at 9:37 pm

I used to think that only Lena Dunham worried about “gap risk”. But then I was introduced to the wonder and majesty of derivatives.

If you can actually follow the script on these transactions, there’s a job waiting for you at Gold in Sacks. If you can’t, what makes you believe the regulators really can?

“To me, the highest form of derivatives artistry is achieved when a bank sells derivatives on its derivatives to itself, and this trade comes alarmingly close to that. But in fact, Deutsche Bank’s liquidity guarantee was more or less an illusion, and when the Canadian asset-backed commercial paper market froze up, Deutsche Bank (and other banks in similar positions) refused to buy back the commercial paper. Ultimately there was a big settlement, the investors’ short-dated commercial paper was poofed into long-term bonds in 2009, conditions returned to normal, and people who bought the bonds in the depths of the crisis made a lot of money.”

http://www.bloombergview.com/articles/2015-05-26/deutsche-bank-ignored-its-cds-problems-until-they-went-away

#55 Greed is God on 05.28.15 at 9:38 pm

Have you see the little piggies crawling in the dirt?

And for all the little piggies life is getting worse.

Always having dirt to play around in!

Have you see the bigger piggies, in their starched white shirts?

You will find the bigger piggies stirring up the dirt.

Always have clean shirts, to play around in.

In their sties with all their backing, they don’t care what goes on around.

In their eyes there’s something lacking.

What they need’s a damn good whacking.

— George Harrison

#56 GTA Observer on 05.28.15 at 9:39 pm

“He should apologize because he called a woman in her late 20’s “a girl”? Whats next? We’re not allowed to call that “BOY” Jason Beiber an idiot? The horror of political correctness gone mad”


Not saying he should apologize or not, but he is responsible for his words and what they mean in 2015. A woman in her late 20s is a woman; Justin Beiber is thought of as a boy because we (regrettably) got to know him in his youth. This has nothing to do with being correct for political reasons; it has everything to do with being correct for factual reasons. By the time Beiber is in his late 20s … he may still be an immature jerk, but he’ll be an immature jerk as a man.

#57 Godth on 05.28.15 at 9:43 pm

#35 Andrew Woburn on 05.28.15 at 8:37 pm

You missed the point. This “green” energy transition is not green, realistic nor sustainable. Industrial civilization was built by, is maintained by, and will remain completely dependent on fossil fuels – including “green” technologies.

Vacliv Smil went through the numbers and helped you think it through incase you missed it:
https://www.youtube.com/watch?v=rNV0xXy5oSg

I know, fantasy is more comfortable.

#58 Rexx Rock on 05.28.15 at 9:43 pm

Even the mayor of Vancouver is cashing in Yvr housing market.He made over $200,000 in less than 21 months.Vancouver rocks,every one is making money in boomtown.

He bought and sold that property in a relatively short period of time, involving both closing and sale costs. Plus his marriage failed. Big win. — Garth

#59 Smoking Man on 05.28.15 at 9:53 pm

Patio season ….just got home wobbling a bit.. Wife in a foul mood, ordering me to put the damn phone down..
She’s pissed but happy I came home. Was not always this easy. To come home that is, middle age I’m thinking. My best a two week bender.

Ah she still loves me after all these years

Dr Smoking Man will be back tomorrow.

#60 Nagraj on 05.28.15 at 9:53 pm

“the line-up contained possibly close to a thousand”

ANY line up of almost a thousand people, especially in Canada (excepting sporting events and concerts) should raise eyebrows.

I’m too deep and isolated in horse&buggy country to have any particular insight into the character of the Vancouver piggy bank line-up, but it stands to reason that, with all due respect, Garth’s explication isn’t necessarily definitive or comprehensive.
Stupidity as a collective phenom never explains anything, and greed is relatively so a moral judgment. You can throw some greedy and some stupid at anyone anytime and it’ll stick – like hypocrisy, the other universally applicable charge. Nobody’s ever smart enough or generous enough or honest enough.

But Garth gets credit for sensing that something’s disturbingly wrong about the thousand-strong Vancouver piggy-bank queue.

#61 Ronaldo on 05.28.15 at 9:54 pm

#16 Re: Bob Rennie. In an attempt to undermine a critic of his – 29 year old woman Eveline Xia, he called her a “girl.” Sexism has no place in this country.

#51 GTA Observer –

Thanks for noticing. Sexism has no place anywhere. Struck that “girl” is still an acceptable term for grown women here in Canada, more than it has been in the States for quite some time. It’s painful to hear about a “girl” and turn to see a woman in her 40s. It’s a clue that she is not well paid.
—————————————————————-

My wife and I are seniors and everywhere we go nowadays we are greeted as “guys”. Good evening guys, what can I get for you guys? Thanks guys. etc etc … Should we be bent out of shape over this?

#62 Bottoms_Up on 05.28.15 at 10:00 pm

#37Hank
——–
The terms ‘girls’ and ‘boys’ can be used loosely to refer to women and men. For example, “old boys club”. Time to turn the sensitivity down a notch eh.

#63 Jared on 05.28.15 at 10:09 pm

Here is an excellent article about lineups:

“any and all lineups, queues, and other sardine-like collections of humans must be viewed with the squinty eyes of skepticism. Because if so many people simultaneously decide to do something that they are forced to stand or drive in a queue to do it, there’s a good chance it is something that is not worth doing.”

http://www.mrmoneymustache.com/2013/04/07/a-peak-life-is-lived-off-peak/

#64 bdy sktrn on 05.28.15 at 10:11 pm

DELETED

#65 kommykim on 05.28.15 at 10:13 pm

Sometimes you just shouldn’t use a realtor:
http://www.timescolonist.com/news/local/real-estate-agent-loses-licence-over-saanich-leaky-condo-sale-1.1949478

#66 bdy sktrn on 05.28.15 at 10:18 pm

.#63 Jared on 05.28.15 at 10:09 pm
…“any and all lineups, queues, and other collections of humans must be viewed with the squinty eyes of skepticism. Because if so many people simultaneously decide to do something that they are forced to stand or drive in a queue to do it, there’s a good chance it is something that is not worth doing.”
————————————————–
something in my dna will repel me from any and all lineups, unless it’s with a kid at disneyland.

even boarding a plane ppl seem compelled to go stand in line when there is no need to. i simply wait until its gone and board then. easy and less time crammed in a seat not made for tall guys.

#67 Sydneysider on 05.28.15 at 10:18 pm

Vancouverites can comfort themselves that things are worse in Sydney.

“Residents of Sydney’s lower north shore were stunned by a flyer which appeared in their letterboxes blaming Chinese property buyers for pushing up home prices, “ethnically cleansing” Australian families from their suburbs and creating a new “stolen generation”.”

http://www.smh.com.au/nsw/race-hate-flyer-distributed-in-sydneys-north-shore-and-inner-city-20150529-ghayxq

#68 Tiger1960 on 05.28.15 at 10:31 pm

Wdut
99% of men wouldn’t be with their wives , if they wernt so scared of loosing 50 % + of their RE
Sad life , for me dun , no wife great life !

#69 Made in BC on 05.28.15 at 10:34 pm

Yes indeed…

When the FED has raised rates a grand total of 1.5% over the next 5 years…..we will all be toast with such gargantuan interest rates.

They will be so high…..everyone is going to forget about the trillions and trillions in debt never to be paid back. And don’t forget about the 300 billion in Public Sector pensions of which there is no money for. Everyone will totally forget about that stuff….

Because in 5 years. The FED will have raise rates 1.5%

#70 Made in BC on 05.28.15 at 10:36 pm

Oh….and according to Mark…..the Cdn $ will be 1.5 to the USD.

#71 Karma on 05.28.15 at 10:40 pm

#48 Sebee on 05.28.15 at 9:20 pm
“I am ashamed. All those years wearing hoodies and this never crossed my mind. Great tip.”

Totally. American ingenuity at its finest….

#72 Squirrel meat on 05.28.15 at 10:55 pm

Spendshi… man-o-man what a leftie commie

new tax bill arrives

Property tax has now gone up 43% since he came to his throne

Wow can’t wait til the dippers get going

Notley sales tax within a year

ALBERTA IS FINISHED… commies

#73 Nora Lenderby on 05.28.15 at 11:03 pm

#13 Joe Schmoe on 05.28.15 at 7:20 pm
As god as my witness, I thought turkeys could fly!

As God is my witness, they can. Just not at all well. They pump crazily to get up to about 20 feet in height and then slowly lose altitude for about a hundred yards. A bit like the housing market, come to think of it…

Eastern Ontario is stiff with the b*ggers..

#74 Andrew Woburn on 05.28.15 at 11:03 pm

#57 Godth on 05.28.15 at 9:43 pm
#35 Andrew Woburn on 05.28.15 at 8:37 pm
You missed the point. This “green” energy transition is not green, realistic nor sustainable.
==============

I never said it was. I was just reporting that our social and economic betters seem to have decided they will get a better table at Davos if they are on record as being opposed to fossil fuels. It wouldn’t occur to them that the Chinese rush to switch from coal has more to do with saving the Party than the planet since their people are really upset about air pollution. If they can con us at the same time into giving up our energy wealth, that’s a good day’s work. Sun Tzu would be pleased.

#75 Karma on 05.28.15 at 11:04 pm

#69 Made in BC on 05.28.15 at 10:34 pm
“Yes indeed…

When the FED has raised rates a grand total of 1.5% over the next 5 years…..we will all be toast with such gargantuan interest rates.

They will be so high…..everyone is going to forget about the trillions and trillions in debt never to be paid back. And don’t forget about the 300 billion in Public Sector pensions of which there is no money for. Everyone will totally forget about that stuff….

Because in 5 years. The FED will have raise rates 1.5%”
————————————————

LOL. You mean in 2 years? Guess you’ve never see a hiking cycle before….

#76 BS on 05.28.15 at 11:06 pm

Yet another reason why this bloated, grotesque Canadian housing market not will go down anytime soon.

With people locking in they have guaranteed themselves another few years of record low rates.

The mortgage rate current home owners pay is irrelevant. It is about the mortgage rates new home owners must pay that impacts prices. Home owners of the future are not locking in low rates today. When rates go up the cost of ownership for first time buyers and move up buyers increases which directly impacts housing prices.

#77 Karma on 05.28.15 at 11:09 pm

#69 Made in BC on 05.28.15 at 10:34 pm
“Yes indeed…

When the FED has raised rates a grand total of 1.5% over the next 5 years…..we will all be toast with such gargantuan interest rates.

They will be so high…..everyone is going to forget about the trillions and trillions in debt never to be paid back. And don’t forget about the 300 billion in Public Sector pensions of which there is no money for. Everyone will totally forget about that stuff….

Because in 5 years. The FED will have raise rates 1.5%”
——————————————–

At the end of the day, it’s your life. Your choice to take the risks. Perhaps you’re right that the Fed will only raise rates 1.5% over 20 quarters. You might have nothing to fear…

It’s probably even better that more people think like you. Divergence of opinion is what makes a market.

#78 metro van observer on 05.28.15 at 11:34 pm

Living here in the Lower Mainland it has the feel of a Nortel moment. In other words the housing mania is similar to the tech bubble of the late 90s. Socially, real estate prices and bidding wars are THE topic. From soccer fields, to arenas to coffee shops and workplaces.

This obsession with the house has signs of mental insanity. Perspective around reasonableness of debt burdens or just plain value are absent. $800k mortgages and $1M+ benchmark prices are neither normal nor reasonable for average people. But it does reflect a futures market type marketplace ripe with rampant speculation.

There is little evidence of their being an underlying thriving or dynamic economy. Few major corporations, seemingly little innovation and an absent entrepreurial drive among the general populace. Those who financed recent buys with epic mortgages are emitting an illusion of wealth.

When soccer moms to cab drivers to baristas talk about flips, building a house or bidding wars, the top is likely in or near. It has the feel of that high flying tech stock chart we saw back in 99 or 2000. A dot com moment if you will.

#79 chuck darwin on 05.28.15 at 11:39 pm

“#101 jane 24 on 05.28.15 at 3:12 am
Garth

Copenhagen is no-one’s dream location. very pretty in the summer it is dark, depressing and very expensive in the winter…..”

Scratching my head on this one? Do they increase the prices in the winter or is there some sort of rain tax?
Maybe Canada could charge a snow tax and fill the Fed coffers????

Also wondering whether the higher proportion of blondes in Denmark is an evolutionary feature which allows then to be better seen and located during the dark days of winter?

#80 chuck darwin on 05.28.15 at 11:45 pm

Garth, I found the blog title a little Helter Skelterish…..are you predicting some kind of cataclysmic meltdown of society as we know it? Do you listen to the Beatle’s White Album regularly? Just askin’…..

#81 Shlomo on 05.28.15 at 11:58 pm

The problem is not about sensitivity or any of that PC nonsense.

It’s about how cavalier people like Rennie are in their dismissal of the younger generation and people left out by the (soon-to-be) housing holocaust. What’s even more disturbing is how he’s some sort of self-appointed messiah for the masses, spouting advice and platitudes meant to save us, the beggared plebs from ourselves.

What he really is, is a snake-oil salesman whose entire existence is predicated on the continued appearance of greater fools. His kind ought to be tarred, feathered and run out of town before they do any more damage. Why is an asinine jackanapes like this man being given any ink at all?

Perhaps a telling sign of the times that he’s got Vancouver’s mayor firmly in his backpocket, scraping and licking the royal orifices on demand.

#82 chuck darwin on 05.29.15 at 12:00 am

#38 Hank on 05.28.15 at 8:46 pm
#17 bdy sktrn

And the male from yesterday’s example? The Copenhagen-bound 30-something-year old male? Is he a boy or a man?”

He left as a boy…..and returned as a legend!

#83 dimlat on 05.29.15 at 12:08 am

#63 Jared on 05.28.15 at 10:09 pm
Here is an excellent article about lineups:”

You should visit Japan….a bit like doing a Herdonomics PHD in lineups, and groups rushing together for no apparent reason…..

#84 B Riding Dirty on 05.29.15 at 12:19 am

#42 Suede on 05.28.15 at 9:05 pm

Barking liked a well behaved Blog Dawg.

But remember some of us are stray Dawgs, no help for us.

#85 crowdedelevatorfartz on 05.29.15 at 12:26 am

@#73 Nora Lenderby
“Eastern Ontario is stiff with the b*ggers..”
++++++++++++++++++++++++++++++++++++

Nora
i think you’re allowed to say buggers unless , of coarse, you meant it in some sort of perverse way…?

yes , I’m a turkey

#86 TRT on 05.29.15 at 12:40 am

To all the naive people commenting over the past 2 years with regards to the cmhc 600 billion limit. They only insure less than 50% of mortgages. The joke is on you. Hahaha.

Invest in Genworth and Canada Guaranty. They are going to get an oligopoly just like the banks.

#87 TRT on 05.29.15 at 12:44 am

Garth, what annual fee does a financial planner charge on annual basis for funds > $100,000? Just curious on the range as you get what you pay for. Thanks.

#88 Freedom First on 05.29.15 at 12:58 am

“boys will be boys” & “girls will be girls” ……sexist that. Idiots.

#89 Blue means go on 05.29.15 at 1:57 am

A lot of you are missing the point about the word “girl”. The point is that he was trying to dismiss her by using a term that signified she was young, inexperienced, and A lot of you are missing the point about the word girl. The point is that he was trying to dismiss her by using a term that signified she was young, and delusional. It was a subtle ad hominem attack and has absolutely nothing to do with political correctness. It seems some of you are too stupid to realize this.

Not everything has to be about political correctness. Oftentimes words are carefully chosen to play down an opponents point.

To the oldsters out there… If Rennie said (of oldsters), As one ages they become senile so we have to be patient with elderly who are out there protesting. They don’t realize completely what they are doing.

You can guarantee people would be offended about that and rightly so.

#90 Made in BC on 05.29.15 at 1:57 am

Because in 5 years. The FED will have raise rates 1.5%”
————————————————

LOL. You mean in 2 years? Guess you’ve never see a hiking cycle before….
+++++++++++++++++++++++++++++++++++++
https://www.abnamro.com/en/newsroom/blogs/snail-paced-fed-rate-hikes.html

I’m not the one saying it. Traders are.

#91 Big English on 05.29.15 at 1:59 am

Thanks for the post Garth. Thanks to your advice with respect to ETF’s, the news of the banks betting expectations made me feel good today.

#92 Bob on 05.29.15 at 2:10 am

If I have 1 million dollars, why might I *not* want to invest in ETFs?

#93 Nagraj on 05.29.15 at 2:36 am

Forgive me.
I fought and fought the temptation to post the following, and lost.

Yes, #11 April, there is a Santa Claus.

[#11 April, perhaps traumatized in a LINE-UP to sit on a Mall Santa’s lap, now collects piggy banks. And she was CONFLICTED, drawn to the Vancouver Xmas-like piggy bank line-up, but she didn’t go. And now plaintively writes about her loss of Santa faith. Which moved me deeply.]

Santa Claus is a little ELF. (Circa 1900 the Coca Cola Co.
decided to make him look big for obvious reasons.) Specifically he’s a LEPRECHAUN from the South of Eire where they wear red instead of green outfits. He’s originally a shoemaker by trade. THERE ARE NO FEMALE LEPRECHAUNS. (Wikipedia will verify this for you, April.) Which means the arriviste MRS. SANTA CLAUS is a Tranny. The North Pole situation is further complicated by the fact that Rudolf is an acolholic (not to mention that some of the reindeer are erstwhile Nazi Mitlaeufer).

So you see, April, there IS a Santa Claus, it’s just that your understanding of him is too jejune.

I took the liberty of sending him a letter suggesting he bring you one of those Vancouver piggy banks you so wanted to have come Christmas.

[As an aside, let me say that Mr. Turner had repeatedly intimated that Santa is a distant relation of the late federal finance minister, aka The Elfin Deity. (Sadly his replacement looks to be a distant relation of Uriah Heep.)

If you do get that piggy bank what name would you give it?

#94 dirty foreign debtor on 05.29.15 at 7:04 am

@ #42 suede, #84 b riding dirty

Some of us are pack puppies, some strays, some lone wolves by choice

All that matters is we keep howling, and stay hungry

Ow oooowwww!!!

#95 LLewelyn on 05.29.15 at 7:31 am

The current real estate environment in Canada can best be described as “Marks to Market”. Taking out a large mortgage based on the current ‘market value’ of a house is very similar to buying mutual funds with borrowed money, including home ‘equity’ loans.

The mark assumes a responsibility to repay the source of borrowed funds on a belief that the ‘market value’ will continue to increase over time.

The interesting difference between investing in real estate and investing in mutual funds is that the institutions providing mortgages have created a scheme where Marks are forced to purchase the equivalent of a ‘credit default swap’ to protect the institution from losing a single penny if the market value’ of the asset declines and the borrower defaults.

I thought the derivative market in the USA was creative but financial institutions in Canada have perfected the art of encouraging Marks to purchase over valued assets with the full support of the Canadian government. The irony of free Piggy banks is hard to ignore.

#96 mathman on 05.29.15 at 7:48 am

RE May 26th – Josh

I don’t doubt Josh makes $125k at his age, Toronto is a vortex for young, talent folks in southern ontario. The reality is for every Josh there are 10 very smart, hard working folks making 25k-60k, who are severely underemployed.

if anyone, male or female only wants to be with you because you own a house, here is some free advice: run like hell!

the problem that is going to lead this province to bankruptcy is the public sector. Teachers, Cops, Firefighters especially, the salaries, benefits and pensions are out of this world, and so far from economic reality. I wish we had a gov’t with the balls to stop the insanity. This is not a comment on their jobs, but on the total renumeration for a job that you have %100 job security and no financial worries the rest of your life. All paid for by you, the taxpayer.

take 15% from every teacher, cop and firefighter, put it into a fund. Take the top 15% of high school students in science and math or overall, pay for their education and give them an interest free loan upon university graduation to start whatever business they want. if you even had a 15% success rate, the potential would be astronomical. We need to innovate, and foster entrepreneurship, not throw money down a hole.

money needs to be spent productively. Teachers are sucking the resources of this province dry, yet the present is not the problem it is the hundreds of thousands of teachers that will be retired for 40+ years on gold plated pensions..

#97 The R on 05.29.15 at 8:08 am

Jus another addicted 2 this awesome blog Mutt…

Re : # 59 – Smokin’ used ass wipe..

there is a big difference in accepting a lying, half crazy drunk, with bad teeth who pays all the bills or actually actually loving him. If you don’t know that then you should’ve got to know the women in your life instead of jus renting them 4 a short while.

on a lighter note- wouldn’t it be better if we paid our politicians the same wage they made the year before running (plus inflation.) This way the only people running actually wanna do a public service. For example a hippe with a low income would make what their worth & a lawyer or CEO would make what their worth. Tired of dummy MP/MLA s saying they can make more in the private secter.

1 more rant- I think drinking & driving should be like carry a gun. your allowed but if used in a crime then the punishment is way greater. For example if you caught speeding you get the fine but if speeding and drinking then you get a dui.(plus speeding.)get into an accident and been drinking and its your fault then the dui rules apply. Just drinking and driving following all the rules – driving safe and sound -shouldn’t be a crime until you break a rule( speeding-swerving-running a stop sign-failing to yield… etc)

Rant over

#98 Investorz on 05.29.15 at 8:10 am

BMO announced a series of restructuring initiatives to save money.

Job cuts. Another reason for those of you in the financial industry to rent.

#99 crowdedelevatorfartz on 05.29.15 at 8:31 am

@#Blue means you’re holding your breath too long

Uh yeah I think we “got” the “girl” reference was a slag towards her age/inexperience.

And, even though I think Bob Rennie is total slime.

Thats not the way the “sexism” complaint was focused.

Grow up “little one”( there, I used a gender neutral term. Happy now? Can I go back to eating my raisin bran? I’m working on a whole new way of shutting people up in the elevator)

He’s right.

#100 jess on 05.29.15 at 8:56 am

..” the shameless self-promoters ….we wanted to do something that symbolizes that people need help.”
================

“For the fourth time, the WTO has ruled against the United States’ COOL policy, reaffirming Canada’s long standing position that these measures are blatantly protectionist and discriminate against Canada,” they wrote.

or how about the untruth in this industry
http://tvo.org/video/213607/sugar-coated

====
me myself and I
http://www.nytimes.com/2015/05/29/business/dealbook/richard-fuld-breaks-his-silence-since-lehmans-collapse.html?ref=topics

#101 bdy sktrn on 05.29.15 at 9:26 am

NEGATIVE q1 gdp, both us and canada.

interest rates to fall.

that is all.

#102 cramar on 05.29.15 at 9:42 am

I wonder if the Millennials lining up for piggybanks are the same as those who line up for the latest release of an iPhone? Or the ones who line up early to get electronic toys at a discount on Boxing Day? Or camp out for three days to be first to see the latest Star Wars movie? They even camp out for the opportunity to buy a $1.7 million house in Vaughan, and become debt-slaves for the rest of their lives!

No wonder the Millennials are having so much difficulty in life. This Boomer hates lining up for anything—it is such a waste of value time. If I wanted a new iPhone I’d wait for three weeks until all the hype is over and walk in and buy one. Same for movies. I wait until the movie is about to leave the theatre and go see it. It is a unique shared experience with six other people in the theatre.

#103 jess on 05.29.15 at 9:49 am

looking back…

By LOUISE STORY
Published: January 25, 2009
Housing prices are falling around the country, but this one sounds hard to believe: A seaside mansion on Jupiter Island in Florida, bought for more than $13 million five years ago, was just sold for $10.

http://www.nytimes.com/2009/01/26/business/26fuld.html
=======

…”The state had contended the legislature was entitled to invoke police powers, in which a state has authority to make changes for the good of its citizens, to solve a fiscal emergency. However, the court called the state’s “police powers” defense “fatally flawed.”

Illinois’ Supreme Court Overturns State’s 2013 Pension Reform Law
The 2013 law was aimed at easing a $105 billion unfunded pension liability and the state’s annual pension contributions.

“Crisis is not an excuse to abandon the rule of law,” the supreme court said in its ruling. “It is a summons to defend it.”
By REUTERSMAY 8, 2015, 5:30 P.M. E.D.T
http://www.nytimes.com/2015/05/28/business/dealbook/borrowing-to-replenish-depleted-pensions.html?src=me

#104 Grantmi on 05.29.15 at 10:05 am

#100 bdy sktrn on 05.29.15 at 9:26 am

NEGATIVE q1 gdp, both us and canada.

interest rates to fall.

that is all.</blockquote.

Haaaaaaahaaaaa. hhhaaaa Right!

#105 Yitzhak Rabin on 05.29.15 at 10:17 am

USA GDP print for the first quarter at -0.7%. There is your post QE recovery. April and May data missing expectations as well. Don’t expect too much for rate hikes with a recession and record levels of debt.

#106 Joe2.0 on 05.29.15 at 10:17 am

US GDP shrinks 0.7%.
No recovery here.

It shrank in Q1 last year for the same reason. The recovery continues. — Garth

#107 Prairieboy43 on 05.29.15 at 10:27 am

#95 Mathman. I like your fund idea. Keep the ideas flowing. Maybe we blogdogs can solve something here.
PB43

#108 cramar on 05.29.15 at 10:32 am

#92 Bob on 05.29.15 at 2:10 am
If I have 1 million dollars, why might I *not* want to invest in ETFs?

———————

ETFs follow the markets, some follow the market x2. The market does not continually go up. If the market takes its usual swoon sometime in future, can you sleep at night with your portfolio down a few, maybe several, hundred thousand?

Silly comment. ETFs offer exposure not only to equity markets but to bonds, preferreds, commercial real estate and a host of other assets. An investor with a balanced and globally-diversified portfolio has contained exposure to large cap NA equities and far less volatility. — Garth

#109 Nora Lenderby on 05.29.15 at 10:41 am

#85 crowdedelevatorfartz on 05.29.15 at 12:26 am
@#73 Nora Lenderby
“Eastern Ontario is stiff with the b*ggers..”
++++++++++++++++++++++++++++++++++++

Nora
i think you’re allowed to say buggers unless , of coarse, you meant it in some sort of perverse way…?

yes , I’m a turkey

OK, I withdraw that remark. Of course it’s probably wrong to say all Eastern Ontario turkeys are b*ggers.
However, I am probably correct in saying that they are all b*stards. Obviously many of them are self-made as their parents were married.

Let’s hope it’s a long time until Thanksgiving!

#110 Smoking Man on 05.29.15 at 10:59 am

#100 bdy sktrn on 05.29.15 at 9:26 am
NEGATIVE q1 gdp, both us and canada.

interest rates to fall.

that is all
………

You’re a poet and don’t know it.

Of course Canada will drop, Fed will hold. As I’ve been saying for the last 6 months.

How did I know GDP will be flat. Why my Herdometer

Savers save (share holders), Spenders spend till they run out. And they’re almost all out.

No wage growth, TFW alive and booming in Canada and USA.

TPP will be the kick to the head of the downed injured worker bee.

Learn to sell and buy stuff dogs. Or work for the government.

#111 Al Burton on 05.29.15 at 11:00 am

Just got back from business trip to Alberta and can’t help but notice already under the NDP the Alberta Swagger has turned to Stagger. Notley didn’t waste anytime pulling the newly elected politicians mantra, “we may need to rethink our promises now that we find out what’s behind the curtain”.
Cocker Spaniels are smarter than most voters.

#112 Holy Crap Wheres The Tylenol on 05.29.15 at 11:12 am

But in a sad way. Remember how we all felt so superior to Americans stampeding through public places to find caches of cash hidden in various cities last year?

Turns out we’re not so different, except we form nice lines when we stampede and swarm for freebies. Of course the bottom line is that yet another mortgage lender has victimized people, taking their intuitive greed and turning it into a marketing tool. In return for consuming their dignity, the company said it’s helping people.
__________________________________________
Except the Canadians will hold each others spot in line and apologize profusely for stepping in front of someone else accidentally! Sorry, sorry, oops I’m very sorry!

#113 Holy Crap Wheres The Tylenol on 05.29.15 at 11:15 am

#59 Smoking Man on 05.28.15 at 9:53 pm
Patio season ….just got home wobbling a bit.. Wife in a foul mood, ordering me to put the damn phone down..
She’s pissed but happy I came home. Was not always this easy. To come home that is, middle age I’m thinking. My best a two week bender.
Ah she still loves me after all these years
Dr Smoking Man will be back tomorrow.
___________________________________________
Well Doctor tell us something new. I though you said shes always in a foul mood. Why don’t you buy here a couple of drinks and get her to relax? Take her to the patio………………..Nah, just go by yourself! Its probably better for you to relax.

#114 Holy Crap Wheres The Tylenol on 05.29.15 at 11:18 am

This is why people buy stock in the banks. Did you see the profits? Those are the big piggies.
_________________________________________
Jesus the rates haven’t even crept up yet, and they will.
Bad day so far,
http://web.tmxmoney.com/quote.php?qm_symbol=^TSX

Are you a day trader? — Garth

#115 aizlynne on 05.29.15 at 11:31 am

Rates are not going anywhere but down Garth. Anyone who thinks Yellen, or any other Fed banker has the ability to raise rates only need look to Europe. ZIRP and continued confiscation is what the future holds, oh and more QE.

#116 Jenny Redbush on 05.29.15 at 11:39 am

Talk about about false perceptions being sold into the market….the facts about the ‘recovery’ in the US market are substantially less than advertised.

http://www.nytimes.com/2015/05/30/business/economy/us-economy-gdp-q1-revision.html?_r=0

With the Democrats poll numbers tanking under Obama in his his second term…and their hopes fading…a full court push was brought about with lots of propaganda and false reporting from the always supportive leftist media. But has any of it been true? Well……no….it’s all BS.

Shadow inventory held by banks and hedge funds like Marriot and Blackrock still tally in the zillions. Alt-A mortgages are still failing in record numbers.

Wage gains are a chimera of government manipulation and rates are obviously not going up if the country slips back into recession ten minutes after the Obama Administration is out the door and off to sell books on failed policy.

Here in Canada the publicity hungry BOC Gov Poloz has tripped up so many times he’s lost all credibility and without any traction investors are fleeing the currency as it seems the smart things to do with a Hollywired bumpkin at the helm.

Poloz has caused both manufacturing and resource revenue to plummet simultaneously for the first time in history. There’s no rate rise coming……maybe not in this decade.

#117 Michael King on 05.29.15 at 11:40 am

Re: interest rates. I’m retired and would love to see the Fed and B of C raise interest rates. However, I read this morning that the US and Canadian economies contracted in the first quarter. I do not see why rates would go up in a bad economy. With respect, your outlook is much too sunny regarding the US.

#118 matt gagner on 05.29.15 at 11:43 am

Looks like Peter Mackay is stepping down.
Another rat fleeing the Titanic.

Who is left in Harper’s inner circle Garth?

Mackay was never a Harper insider. — Garth

#119 Godth on 05.29.15 at 11:48 am

#74 Andrew Woburn on 05.28.15 at 11:03 pm
Four Horsemen
https://www.youtube.com/watch?v=5fbvquHSPJU

…don’t agree with everything but…

#120 Hot Albertan Money on 05.29.15 at 12:14 pm

If it’s free, then you’re the product

#121 Rob on 05.29.15 at 12:27 pm

DELETED (Racial)

#122 mathman on 05.29.15 at 12:36 pm

there are three certainties in life, death, taxes and people love free sh.t ..

Was at a Raptors game a few months back people were going crazy to catch a free t shirt, I wanted to scream, these are $200 seats morons, the T-shirt is $5 bucks, but I held my composure. One guy a few rows in front of me spilled his $14 beer to catch a $5 t-shirt, nice trade!

what i have found is free stuff and incentives, never really bring in sticky long term customers and are a lot of work for very little ROI. These attract hot money and transient customers, who simply hop to the next best deal. The CU got some press, but doubt this stunt got them any real business.

#123 TheLaughMadeMePost on 05.29.15 at 12:47 pm

#81 Shlomo on 05.28.15 at 11:58 pm

Well said !

Nagraj , I hope you didn’t miss your calling…

That was priceless!

#124 Oh Em Gee on 05.29.15 at 12:55 pm

So Q1 US GDP is negative and it’s only the first revision.
What are the new “recovery” talking points? I want to hear them all…

#125 Kreditantalt on 05.29.15 at 1:00 pm

$5 for “morning coffee”??

A mortgage is “a goal”???

Tee-hee…!

#126 SWL1976 on 05.29.15 at 1:13 pm

#72 Squirrel meat

Spendshi… man-o-man what a leftie commie

new tax bill arrives

Property tax has now gone up 43% since he came to his throne

Wow can’t wait til the dippers get going

Notley sales tax within a year

ALBERTA IS FINISHED… commies

It’s very narrow minded to blame current problems on a government that just gained office.

Prehaps Alberta currently being finished as you say has more to do with the party leaving, then the party just getting in

Perhaps if their was a decent royalty on Albertas oil, development would have been more balanced and you would not need a sales tax?

But I’m sure you would rather resort to finger pointing and name calling like your former drunken Premier

#127 Bob on 05.29.15 at 1:22 pm

VIDEO: Alberta’s Boom Time Hangover – VICE News

https://news.vice.com/video/albertas-boom-time-hangover

#128 Ray Vasquez on 05.29.15 at 1:25 pm

Canada 30 year bond yields are down again today, 2.19%. Just wait pretty soon below 2% again.

#129 TurnerNation on 05.29.15 at 2:11 pm

So…how about oil going to $20.

See y’all at $65.

#130 Squirrel meat on 05.29.15 at 2:24 pm

#124 SWL1976 on 05.29.15 at 1:13 pm

#72 Squirrel meat

Spendshi… man-o-man what a leftie commie

new tax bill arrives

Property tax has now gone up 43% since he came to his throne

Wow can’t wait til the dippers get going

Notley sales tax within a year

ALBERTA IS FINISHED… commies

It’s very narrow minded to blame current problems on a government that just gained office.

Prehaps Alberta currently being finished as you say has more to do with the party leaving, then the party just getting in

Perhaps if their was a decent royalty on Albertas oil, development would have been more balanced and you would not need a sales tax?

But I’m sure you would rather resort to finger pointing and name calling like your former drunken Premier
——————————————————-

The PCS were in power way too long…. frittered it all away. Just crazy the heritage fund is not at 30-40 billion.

Notley seems a decent person, but increasing taxes and changing royalties at this stage is going to make it all a lot lot worse… increasing minimum wage is a pointless exercise.
5 years from now AB will be at least 25 billion in debt, and Klein 2.0 will be in power.
Oh well at least we aren’t ON or QB!

Klein was an idiot. Eliminating the debt was admirable for sure.. but then he just pissed it away with no planning for the future.

Want to buy my house!

#131 ben on 05.29.15 at 2:31 pm

Margin debt 50% higher than the last bubble peak.

Some folks are in for a world of pain.

#132 Mr. Frugal on 05.29.15 at 2:42 pm

According to the Financial Post, it’s okay to buy a $940K house if you are in your 50s, have no money, work in the Alberta oil patch and the wife is on disability. Seriously, this is better than Seinfeld.

http://business.financialpost.com/personal-finance/family-finance/how-this-b-c-couple-can-buy-a-940000-home-and-still-retire-at-65

#133 Bottoms_Up on 05.29.15 at 2:48 pm

#89 Blue means go on 05.29.15 at 1:57 am
Ok, well here’s an example of the use of ‘girl’ to highlight a very courageous, heroic act by a ’20-something’ young women:

http://ottawacitizen.com/news/local-news/good-samaritan-saluted-for-queensway-heroism

Check the bottom of the article, a comment from whom appears to be a mother, mentioning that “this girl was a quicker thinker…”

You thinking someone else using the term ‘girl’ is dismissive, signifying youth and delusion, could very well all be in YOUR head….

#134 cramar on 05.29.15 at 2:49 pm

#107 cramar on 05.29.15 at 10:32 am
#92 Bob on 05.29.15 at 2:10 am
If I have 1 million dollars, why might I *not* want to invest in ETFs?

———————

ETFs follow the markets, some follow the market x2. The market does not continually go up. If the market takes its usual swoon sometime in future, can you sleep at night with your portfolio down a few, maybe several, hundred thousand?

Silly comment. ETFs offer exposure not only to equity markets but to bonds, preferreds, commercial real estate and a host of other assets. An investor with a balanced and globally-diversified portfolio has contained exposure to large cap NA equities and far less volatility. — Garth

————————

Somehow I just KNEW that my comment would trigger a response. Garth is right, since I was only thinking equity ETFs. But it does beg the question. Why does a good investment guru advocating balance almost never recommend an all ETF portfolio?

Probably because they make more money on transactional or commission-based accounts. — Garth

#135 I'm stupid on 05.29.15 at 2:59 pm

A song came on the radio that I remember from when I was 20 in Acapulco, playing spin the bottle on the beach with 2 beautiful ladies my friend and I met at a night club. I wouldn’t trade that experience for a million dollars. You only get 1 shot to be young don’t screw it up trying to become rich because you’ll regret it.

#136 SWL1976 on 05.29.15 at 3:05 pm

#128 Squirrel meat

Want to buy my house!

————-

No thanks. But, I’m glad we finally agree on something

Cheers!

#137 Andrew on 05.29.15 at 3:38 pm

-0.1% GDP growth in first quarter 2015 means we are in a recession if we have negative growth in Q2 as well, which we almost certainly will given how awful the jobs numbers were in April. Decreasing employment numbers and low oil prices means that housing prices sooner or later are going to go down. Is it my imagination or is the traffic in Toronto getting a little bit less awful than it was a year ago (particularly on the 401, since Mississauga has been losing a lot of jobs lately due to Target Canada, etc.)? People cannot afford million dollar houses if they don’t have jobs.

#138 Mister Obvious on 05.29.15 at 3:50 pm

#132 cramar

It’s a given that all financial advisors get paid for their services. There are two general remuneration methods you can choose from:

1. You can choose to know exactly what fee they get and exactly when they get it, or…

2. You can choose to guess how fees are taken

Myself, I prefer choice #1 which, by the way, is fully tax deducible.

Strangely, some prefer the second choice because they think it “keeps other people’s hands off their money”.

How little they know.

#139 Holy Crap Wheres The Tylenol on 05.29.15 at 4:17 pm

#113 Holy Crap Wheres The Tylenol on 05.29.15 at 11:18 am
This is why people buy stock in the banks. Did you see the profits? Those are the big piggies.
_________________________________________
Jesus the rates haven’t even crept up yet, and they will.
Bad day so far,
http://web.tmxmoney.com/quote.php?qm_symbol=^TSX

Are you a day trader? — Garth
________________________________________
Only from 9 to 5.

#140 The 7% Solution on 05.29.15 at 4:28 pm

Garth

re yesterday’s #147. Many Thanks. Didn’t know it was tax deductible.

I had read about Fee Based and balked at the up front fee. Meanwhile I’m paying MER’s+fees.

Time to get serious about my financial future.

There is no up-front fee for a fee-based advisor. (Note that we are not talking about a ‘fee-only’ advisor that you pay for a plan, but not to manage anything.) And, yes, the fee, which is taken in small monthly doses, hopefully all from account growth, is tax-deductible for non-registered investments. — Garth

#141 Shawn on 05.29.15 at 4:43 pm

Tax Deductibility is NOT one of the (many) advantages of the fee based approach

Mister Obvious on 05.29.15 at 3:50 pm
#132 cramar

It’s a given that all financial advisors get paid for their services. There are two general remuneration methods you can choose from:

1. You can choose to know exactly what fee they get and exactly when they get it, or…

2. You can choose to guess how fees are taken

Myself, I prefer choice #1 which, by the way, is fully tax deducible.

****************************************
Are you suggesting that mutual funds fees which reduce return are not in effect tax deductible? Mutual fund fees reduce the return on which taxes are paid.

The fee-based approach has many advantages compared to paying mutual fund fees. The ability to deduct the management fee is not one of those advantages.

#142 First Time Home Buyer Advice Toronto on 05.29.15 at 4:47 pm

Thanks for the post Garth. Thanks to your advice with respect to ETF’s, The news of the banks betting expectations made me feel good today.

#143 WHATFORWHAT? on 05.29.15 at 5:03 pm

i’ll just leave this here:

http://www.theglobeandmail.com/report-on-business/economy/housing/slumping-oil-prices-have-yet-to-slow-down-alberta-housing-market/article24703195/

#144 FIE & XTR on 05.29.15 at 5:05 pm

Spit out income 6% or over every month, what more do you need?

#145 Mister Obvious on 05.29.15 at 5:48 pm

#139 Shawn

I’m not sure what you’re on about but I think Garth cleared it all up nicely in post #138. Anyway, what he said is what I meant to say. Sorry if I confused you.

#146 World Traveller on 05.29.15 at 5:55 pm

The chocolate ration has increased to 25 grams

Oh, what a glorious future!

#147 Mocha on 05.29.15 at 6:01 pm

Welp, it’s happened:

After infesting 90% of the rest of the internet, feminist gender trolls have finally found Garth’s blog. Their goal is usually to stifle free speech. Stay strong Garth!

#148 Waterloo Resident on 05.29.15 at 6:04 pm

BLACK SWAN EVENT: War with China.
Bond Rates rise 5% in first 2 hours after the markets open.

Just Google the events that are currently unfolding in the South China Sea area and you will see that it looks like war between the U.S. and China just might break out this summer. Now that is something no one is thinking about right now, and that is what a Black Swan event is all about.

#149 Shawn on 05.29.15 at 6:32 pm

There’s no confusion on my part

#143 Mister Obvious on 05.29.15 at 5:48 pm
#139 Shawn

I’m not sure what you’re on about but I think Garth cleared it all up nicely in post #138. Anyway, what he said is what I meant to say. Sorry if I confused you.

*****************************************
I am trying to dispel the implication that mutual funds fees are not tax deductible.

They are tax deductible in the sense that the fee reduced the return and it is only the return that it taxed.

Tax deductibility is fee-based fees is NOT any advantage over mutual fund fees. The true advantaged of a fee-based system would be management of an overall portfolio and lower fees.

What I am saying may not be obvious, but it is correct.

#150 LL on 05.29.15 at 7:56 pm

Vancouver..Vancouver…
I am boring to read about crazy Vancouver real estate market.
Any real estate statistics for other Canadian cities?

#151 Hector's Vector on 05.30.15 at 11:48 pm

Garth

What is your view on the peer to peer lending outfits like Prosper and Lender’s club in the US?
Individual investors can buy a slice of a packaged loan and this allows borrowers who do not qualify to get loans at slightly higher rates.

They seem to route the loans through a legal bank called Web-bank to comply with anti-usury laws……could this be a solution for the CMHC to get out of the business and pass over the risks to the private sector?