The accident

BATH modified

He’s been out of the country on work assignment for the past four years. Now he’s back. Shocked. “I can’t believe the euphoria in the real estate market,” says Jordan. “Keeping in touch with the headlines while away doesn’t do this story justice.”

So, he rents now. Big social mistake. “Most consider me a peasant of sorts for renting because “the monthly carry to buy is no more than rent”. For starters that statement is not true for most, and even if it were you are looking at rate renewal risk, ownership of an asset at highly inflated prices driven by ultra low rates and for most a single asset strategy for building wealth,” he explains.

“The scariest part is the people with these views are not stupid or uneducated, however I would suggest financially illiterate. As a society we need to do a better job of educating our people to make better financial decisions, the system has failed many and there will be much pain ahead. I’ll be happy to watch this car accident from a distance.”

Well, I heard from Jordan on the same day that some lights went out in Alberta. Across the nation, in fact. Logic tells us that a collision with destiny may be closer than it was a few months ago. Here’s why…

The economy’s blowing smoke. GDP (gross domestic product, a measure of economic growth) shrank 0.6% on an annualized basis in the first three months of 2015. That’s a lot. But it gets worse. Business investment dropped almost 10%, thanks largely to misery in the resource sector. The guys who support these industries are also getting creamed – activity down about 18% in both February and March. Then, as you know, we lost 19,700 jobs in April as retailers punted an army of workers amid lousy sales

And while the economy overall was in Preparation H mode with shrivelling job prospects, guess what people were doing? You bet. Buying houses with borrowed money. Residential investment expanded by 4% – a big number – thanks in part of unfettered condo construction. As I’ve also told you, household debt bloated considerably – by about 8% – during the same period GDP was shrinking .6%.

Do these people have any idea what they’re doing? Of course not. Jordan sees that. They’re probably hooped.

Now, what about America? News also arrived that the US economy shrank an equal amount in the first three months of the year. So are things are messed up there, too? Does this mean the Fed will never raise interest rates and a recession is coming?

Nah, it doesn’t. Incomes actually grew in Q1, payrolls rebounded by a strong 223,000 new jobs in April and corporate profits advanced 3.7% from the same time a year earlier. Car sales took off, selling at an annualized rate of about 17 million. Orders for capital goods increased in both March and April showing corporate investment in increasing, while going in the opposite direction here. Did you hear GM is spending half a billion to build a new Corvette factory, just for Boomer guys with hormone problems who like to wear ball caps and gold chains? And the US housing market is doing just fine – prices up 5% nationally – despite a jump in mortgage rates. New home sales are ahead 6.8% and the number of pending deals in the resale market is at the highest point in nine years.

The unemployment rate is down to 5.4%, or about half of the level after the GFC and the best number since the spring of 2008. Applications for jobless benefits – which have spiked in Alberta – are at 15-year lows south of the border.

So the consensus of economists is that the US economy will rebound, and grow at the rate of 2.7% for the current quarter, which means a few things. First, I sure hope you took the advice offered here two years ago to position more of your portfolio in American and international assets than Canadian ones. Second, the interest rate hike signalled by the Fed for later this year is still on. Third, never, ever, ever believe what you read in the comment section of this pathetic blog.

Unless it agrees with me.

Winter modified

205 comments ↓

#1 crowdedelevatorfartz on 05.29.15 at 7:04 pm

Winter is the bottom?

#2 Yogi Bear on 05.29.15 at 7:06 pm

The “winter” meme is recent. What happened to all of the decades past when winter was a non-factor in GDP? Why are winters now such a problem?

Actually it’s a seasonal bias that will soon be factored into GDP reporting. And dare I utter the words, ‘climate change’? — Garth

#3 Nacho Cheese on 05.29.15 at 7:12 pm

Condo question for anyone out there. Is there an industry wide specific lower limit of presales that must be reached before a condo can be built? If so, what is that number? I came across 80% in my research, but could not find many sources.

#4 mitzerboy aka queencity kid on 05.29.15 at 7:13 pm

thanks once again for the update garth

never bet against the usa

#5 Ray Vasquez on 05.29.15 at 7:15 pm

If as the U.S. economy was strong as they say it is and employment was strong as they say it is, we would have already a 3.00%, 5 year, 3.5% 10 year and 4.00% 30 year U.S. bond yields.

The last time we had a 4.00% 30 year U.S. bond yields was back in 2010-2011.

#6 james on 05.29.15 at 7:19 pm

Prices up 8% in my zip code (Seattle) over this time last year. People here are not elated. They are worried at the rise in prices. They have been through a housing bubble before, and wariness is in the air. We do not see this as sustainable, and there is no housing frenzy in the air.

Mortgage rates went up, but prices didn’t come down. Inventory is at record lows. In my area, there is almost nothing available compared to when I purchased 1.5 years ago.

However, people have disposable income here, and almost no one talks about housing. That’s the great thing. People talk about their kids, careers, politics, crime, music, art, vacations, etc.

In Vancouver, all they talk about is housing. It is so incredibly dull. Combine that with negligible disposable income and no wonder the Economist was calling it a boring city.

#7 The American on 05.29.15 at 7:21 pm

“TThe scariest part is the people with these views are not stupid or uneducated, however I would suggest financially illiterate. As a society we need to do a better job of educating our people to make better financial decisions, the system has failed many and there will be much pain ahead. I’ll be happy to watch this car accident from a distance.”

Well, although I understand his heart is in that statement, I profoundly disagree. Yes, anyone who has bought into Canadian real estate at these levels is indeed stupid. Here’s why… They cannot claim ignorance as this free education to Canadians has played throughout the globe for the past decade, the closest neighbor they have being the U.S. They cannon claim being uneducated as we all know many many Canadians have an “advanced” degree from a Canadian institution, otherwise known as an American high school education.

The system has not failed anyone in Canada. In fact, it has done precisely what it was intended to do – drain the pockets of any person STUPID enough to fall for the same antics again. Educating people more will never circumvent common sense, or the fact that a person cannot afford a home. If it requires a tutorial in math, the person certainly is of not stable mind enough to make such a long-term commitment. You cannot fix stupid, as is evidenced by the largest real estate bubble ever in the G20 in decades. What’s *really* dangerous, though, is mixing such stupidity with being so prideful. That’s the deadly combination that will make the comedown sting all the worse. Cheers!

#8 MSM-free Zone on 05.29.15 at 7:23 pm

Given the worsening economic news here at home, seems like a lot of Rattus Canadianus are bailing from the HMS Harpo lately, soon to join the HMS Erebus and HMS Terror (how fitting) at the bottom of the ocean.

Perhaps the Minister of Gazebos will join MacKay and Baird and make it an official hat trick worth celebrating, though not quite the hat trick Harpo so smugly announced alongside his ex-fishing buddy, Rob Ford.

I’ll bet $50,000,000 in stolen Border Infrastructure money that Harpo pulls a Mulroney and bails before his next ‘fixed election’ date.

#9 PJ Molla on 05.29.15 at 7:23 pm

Buy the bs, sell the news.

-PJ

#10 canadianinportland on 05.29.15 at 7:24 pm

Winter is coming?

#11 Stevo on 05.29.15 at 7:27 pm

“Canadians are showing a strong ability to manage their debts even as housing prices rise, with arrears on CMHC mortgages at a low 0.34 per cent for the first quarter of this year, according to new figures from the federal housing agency.

That means there were 9,572 Canada Mortgage and Housing Corp.-insured mortgages in arrears in the quarter, while it insures a total of 2.8 million mortgages. It had to pay just 588 claims.”

http://www.cbc.ca/news/business/cmhc-mortgage-holders-spend-26-of-income-on-housing-1.3092859

#12 zoronqueen on 05.29.15 at 7:27 pm

Third…..

Early today Garth….Do I should be selling my house in Edmonton??

#13 North Burnaby on 05.29.15 at 7:29 pm

Garth, the cost of waiting outside of the real estate market is rising at a very rapid rate. Rent costs for living in condos have risen faster than the prices have risen. Renters are getting squeezed real bad!!!

#14 rawdiswar on 05.29.15 at 7:31 pm

Easy on the Corvettes there Garth, if people (grey-haired men) are buying Corvettes, then that is both a boon for GM and a sign that ‘Vette drivers have disposable income.

What if Fed goes up in June and BoC goes down in July?

#15 Joey on 05.29.15 at 7:33 pm

Lower highs on the S&P500. All in HVU baby!

#16 Godth on 05.29.15 at 7:37 pm

Consumed
https://www.youtube.com/watch?v=bOKl04TWVsU

Check out a show called Mr. Robot if you get the chance.

#17 MSM-free Zone on 05.29.15 at 7:38 pm

“……Actually it’s a seasonal bias that will soon be factored into GDP reporting. And dare I utter the words, ‘climate change’?” — Garth
_________________________________

Makes sense, I guess.

REALTURDS® have been factoring ‘climate change’ in their twisted math for years.

#18 Jackson on 05.29.15 at 7:40 pm

so what you’re trying to say is…

Winter is coming.

#19 Deny & spin on 05.29.15 at 7:41 pm

TIL Global financial crisis ca. 2008-2009 happened because of “winter” too.

#20 R on 05.29.15 at 7:55 pm

This means interest rate in Canada will be zero and will not go up until 2017

#21 eddy on 05.29.15 at 7:56 pm

And dare I utter the words, ‘climate change’? — Garth

why not? even the Pope is on board, and he’s infallible like many people here

Patrick Wood: Technocracy Rising

https://www.youtube.com/watch?v=H7QlOTi86Nk

#22 David Lee on 05.29.15 at 8:07 pm

Those trying to be dismissive need to do a better job (sarcasm) because the issue is not going away, it’s getting more and more traction:

http://www.theglobeandmail.com/life/home-and-garden/real-estate/affordable-housing-out-of-reach-for-vancouver-millenials/article24707935/

#23 joblo on 05.29.15 at 8:08 pm

“And while the economy overall was in Preparation H mode with shrivelling job prospects,”

So what you mean is Preparation Harper mode…

BS Economic action plan 2.0? (come on man)

What’s the plan…sit and wait for USA to pull Kanada out of the crapper?

Looming Health crisis, Retirement crisis, blah blah blah

Less government and More incentive or big FAIL.

#24 SWL1976 on 05.29.15 at 8:10 pm

Does this mean those of us here in Canada who bailed out GM can get a sweet deal on a new Corvette?

I’ll take a silver one on black rims

Thanks!!!

#25 Daisy Mae on 05.29.15 at 8:15 pm

GARTH: “Third, never, ever, ever believe what you read in the comment section of this pathetic blog.

Unless it agrees with me.”

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

Exactly…..

#26 ANON on 05.29.15 at 8:16 pm

Please mod the “Winter is coming” comments :)
Winter is here.

#27 Blacksheep on 05.29.15 at 8:16 pm

SWL,

After reading your supplied Geo engineering links, I would say I’m firmly in the “No” camp. Lots of speculation, but zero physical evidence proving nefarious actions.

Yes weather patterns are all F–ked up, but I believe it’s due to Axial precession’s relatively fast movement, not planes spraying shit, or an antenna array heating up the ionosphere or even idling frigging Kia’s.

Constant cyclical climate change occurred aeons before humans were emitting Co2, and will keep occurring, long after the blight that is mankind, is gone.

#28 bigtown on 05.29.15 at 8:25 pm

Office vacancy is up in downtown Montreal and there is going to be some room for operators to get good space at a better price. Here and there in the GTA there seems to be some retail to let notwithstanding Target.

The Target crater reality is sinking in more and more in the retail space and beyond where consumers are required. I had lunch in Oakville at a Panera Bread. The place was half empty at lunch time in Oakville. Oakville is one of the wealthiest towns in Canada. The development fees for a new home in Oakville are the highest in Canada. Money is sucked out of the retail and business sector and hoarded into housing so the misallocation of resources is evidenced in the minus GDP numbers. The money is in the economy but buried in housing so other sectors will look poor and not attract investors. Our prayers for a weak Canadian dollar have been BLESSED.

#29 Macrath on 05.29.15 at 8:30 pm

Using Government Motors as a poster company for the recovery that can`t handle snow, despite 10 years of ZIP and massive QE !

How many years does it take to figure out there is no recovery and nobody is buying Corvettes ?

#30 Freedom First on 05.29.15 at 8:31 pm

It takes a great deal of both patience and courage to buy any asset when it is not in favour even though the fundamentals are screaming: “buy”. Also, it is extremely difficult for most people to sell an asset when it has achieved an orgasm like profit and the fundamentals are screaming: “sell” .

However, the biggest danger is in following any herd in an inappropriate “one asset” stampede towards a cliff when the herd has become so large and the stampede has gone on for so long towards the cliff that the herd sees no end in sight.

#31 LL on 05.29.15 at 8:42 pm

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

House rich but…no cash!

I saw a lots of houses for sale and the reason why they arer selling: separation.

With all those financial problem couple facing right now, it’s end by separation!

Having a house is a dream…or a nightmare???

#32 SWL1976 on 05.29.15 at 8:48 pm

#27 Blacksheep

To each their own. You want evidence, just look up

It’s as obvious as a building falling in on itself at free fall speed

#33 Investorz on 05.29.15 at 8:52 pm

Yesterday, on BNN Kevin O’Leary, who’s been harping on investing in the US, said that he’s more bullish on Canada and out of his North America weighting, he’s 50% Canada.

Today we learn the GDP is down .6%.

Bank stocks slip some more, which now get most of their profits from capital markets and wealth management, which is in my opinion, lame. Wealth management is expensive and bound to be replaced by a few scripts and a nice web user interface.

That’s why I trimmed canadian banks and invest in the US ones with ZUB.

#34 Ret on 05.29.15 at 8:52 pm

Should we buy US$? I hesitated at $.83 and am kicking myself now. I should be buying above $.81 me thinks. I have no confidence in any level of government or my fellow Canadians to stop the debt orgy.

The lower CDN hasn’t helped Ontario from what I can see and yet people are spending like there is no tomorrow.

#35 Ex-Cowtown on 05.29.15 at 8:56 pm

You lost me when you inferred that winters are now worse because of climate change. Even Obama was taken to the woodshed on that one.

Next thing you’ll be saying that the floods in Texas are God’s wrath … or climate change… one or the other. But wait a minute, Al Sharpton beat you to the punch on that one.

Garth, sometimes a cigar is just a cigar and cold weather in winter is just weather. Besides, how can a dangerously warming climate result in colder temperatures?

It’s like saying you can put your coffee in the oven and if you turn up the temperature high enough it’ll freeze.

Normally I agree with most of what you say, but on this one you’re off the rails like Amtrak.

#36 Dominoes Lining Up on 05.29.15 at 9:04 pm

You have a better chance to make money by buying a ticket for the $100 million Lotto Max tonight than you do by buying into 416/905 real estate this year.

Oops, it’s after 9 p.m. and ticket sales are closed.

So, go ahead, just buy that slanty semi or particleboard shack instead – it should work out just fine.

#37 seeing it from both sides on 05.29.15 at 9:08 pm

See….our equity is safe ;)

“De Jong echoed Clark’s concerns about any deliberate effort to drive down prices because it would be wiping out the sometimes meagre equity that mortgage-holders have built up in their home.

“Those who are expressing a concern, if you really assess what they are seeking, it is a reduction in the value of homes in Vancouver and that will have consequences for a lot of families..”

Read more: http://www.vancouversun.com/business/affordability/Vaughn+Palmer+Premier+responds+with+caution+problem+unaffordable+housing/11091305/story.html#ixzz3bZzk51QS

#38 Leo Trollstoy on 05.29.15 at 9:10 pm

Why are condo prices in the GTA so crazy?

My friend was renting a 2/2 + den and was recently booted out because the landlord sold the 1000 sq ft place for $600,000.

Toronto real estate prices are rising with each passing day!

#39 takla on 05.29.15 at 9:15 pm

Bogus weather chart Garth.Bad winter weather is not consistant across North America.It can be 40 below in Chicago and a balmy 25 c on the west coast.
No .. the real problem is cost of living and debt saturation among the middle class.Winter arrives and people blow what little extra they have on x-mas so you have a couple dead months in fall as people save for the festive season and 3-4 months afterwards broke paying off the charge cards @ 20% interest

In other words you agree with seasonality. Good. BTW, where on the chart does it say anything about weather? — Garth

#40 Smoking Man on 05.29.15 at 9:19 pm

#25 Daisy Mae on 05.29.15 at 8:15 pm
GARTH: “Third, never, ever, ever believe what you read in the comment section of this pathetic blog.

Unless it agrees with me.”

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

Exactly…..
……..
Your response

When I use to work in a factory they called that brown nosing.

On bay street they call that survival.

Me , I just can’t do it. I would rather die than suck up.

#41 wallflower on 05.29.15 at 9:21 pm

#28 bigtown on 05.29.15 at 8:25 pm
Re Oakville retail half empty
Here in Barrie, there is a newish retail development with a bank of Tesla pumps. (Not in operation.) Ex Target, obviously gapingly vacant. A bunch of spots never tenanted. A Cabelas that looks seriously unvisited, and then the entire suite of “everywhere you go” restaurants and retail such as Bed Bath & Beyond and Il Fornello. You know the stuff I mean: coast to coast to coast in Canada and USA — same retail experience everywhere you go. And few people, either employees or shoppers. I read about China’s ghost malls and ghost buildings. Here, in Ontario, we are not far behind.

#42 Kreditanstalt on 05.29.15 at 9:22 pm

“…the consensus of economists is that the US economy will rebound, and grow at the rate of 2.7% for the current quarter…”

Would you like fries with those words? You’ll eat them.

The irony of this is that in any economy high on credit it is well-nigh-impossible to determine how many people’s jobs, “investments”, projects and businesses are actually misallocations of capital dependent on continuing cheap credit.

Given that, they won’t be able to allow interest rate manipulaton to end, will they?

#43 LL on 05.29.15 at 9:29 pm

I am boring to read about Vancouver, Toronto crazy real estate market.
How about the rest of real estate market in other Canadian cities and Albertausorus?
It would be interesting to read more stories about “the after they bought a house”.
How they are doing facing those debt, to be enslaved?

#44 Waterloo Resident on 05.29.15 at 9:31 pm

Oh oh, too late, the U.S. has started their military movement into Chinese claimed territory:

U.S. sending supercarrier to Asia
https://www.youtube.com/watch?v=J133zTJv3qI

Screw this whole thing about Canadian house prices being too high, and forget about the nuclear waste from Fukushima, this is a lot more serious than either of those things.

#45 Centurion on 05.29.15 at 9:39 pm

https://youtu.be/pf6o-FwRVno

“With interest rates low, money was cheap.”

The couple signed a $400K mortgage and then the week after the father lost his job. At the beginning of the video, you can see how much stress they’re having just crunching all the numbers.

But of course, their kitchen is top-of-the-line: Granite counters, stainless steel, and hardwood floors.

They said they can still mange their mortgage as long as interest rates stay put (good luck with that), the paycheques keep rolling in, and there are no other surprises.

Definitely wouldn’t want to sacrifice my freedom for debt and obligation like that.

#46 AlbertaGuy on 05.29.15 at 9:42 pm

Winter is coming…

http://www.shortrounds.co.uk/wp-content/uploads/2014/08/il_570xN.494662779_s34u.jpg

#47 saskatoon on 05.29.15 at 9:43 pm

garth,

you do realize how many full-time u.s. jobs were LOST in april, right?

#48 RayofLight on 05.29.15 at 9:43 pm

Everyone is worried about protecting the Earth. As far as Climate Change is concerned, the Earth has been through much worse, and has done fine. Man Kind on the other hand has not, and will not.

#49 LL on 05.29.15 at 9:43 pm

http://www.theglobeandmail.com/globe-investor/personal-finance/household-finances/house-poor-couple-debt/article24370722/

Here another poor couple full debt…but…they have a house!!! So what???

#50 Drill Baby Drill on 05.29.15 at 9:51 pm

“Climate Change”

This blog has always been pathetic but to now use “climate change” as a reason for economic dips is worse than pathetic. Perhaps this blog has finally jumped the shark as they say in television lingo ?

#51 Gag me on 05.29.15 at 9:51 pm

https://www.youtube.com/watch?v=9UNkJ3Tp2P4&feature=youtu.be

Saw this on facebook today. This guy floundered from career to career until becoming a GTA realtor. When the dim bulbs from school are hopping on a bandwagon it’s a good sign that the easy money is gone and the train is going to run out of steam.

Anyways the whole video makes me cringe: first time home buyer, 5% down, pulling it from your RRSP.

If you have 15K, don’t buy a house. If you don’t have 15K under no circumstances should you buy a house.

#52 LL on 05.29.15 at 9:52 pm

#45 Centurion

The couple looks so happppyyyyy to have bought a house!!!

#53 saltpony on 05.29.15 at 9:53 pm

I wonder if anyone would help me understand this concept/question?

Who should own the houses if the people who live in the city don’t? Garth often says that people in Europe rent, but who owns the rentals?

I googled home ownership (detached) in Europe (using Wikipedia stats) and got:

Italy – 22%
Netherlands – 14%
Germany – 23%
United Kingdom – 24%

Who actually owns the majority of houses then, the 71% to 86% of rentals? Is that where North America is headed?

Comments? Opinions? Facts anyone?
Thanks for helping me understand this.
:)

#54 espressobob on 05.29.15 at 10:00 pm

Kevin O’Leary is best avoided with regard to his opinion and outlook on anything. Don’t believe it? Check out his funds performance.

You may not like what you find.

#55 LL on 05.29.15 at 10:02 pm

Nanaimo houses prices will sky rocket…Chinese are buying now.
It’s was on the news 5 minutes ago…
Vacouver is not affordable anymore so they are buying on the Island now and houses they bought are left ….empty.

Love your humour. — Garth

#56 WiseGuy on 05.29.15 at 10:04 pm

If they raise interest rates in the US, I just don’t think that they’ll be raising interest rates here in Canada and if the economy continues to falter, the Bank of Canada might just drop the rate again anticipating the rate increase in the US.

People who have bought homes in the last few years are paying off that mortgage…..and it’s frustrating if you’ve been waiting on the sidelines watching this.

#57 Smoking Man on 05.29.15 at 10:04 pm

In two weeks , anothet the big Vegas adventure, going to area 51, need a pic of me standing inside the line that says trespassers will be shot.

And then cheattas strip club. Two sceens in my book that I’ve never visited. play by play photos on my twitter . oh did mention, its electric music dance festival.

The eye candy will be spectacular dogs. I’ll take many and drink many shots.

@SmokingMan

#58 SWL1976 on 05.29.15 at 10:06 pm

#40 Smoking Man

When I use to work in a factory they called that brown nosing.

On bay street they call that survival.

Me , I just can’t do it. I would rather die than suck up.

—————-

Respect is one thing.

But sucking up is disrespectful for both parties

#59 Canada is a house of cards on 05.29.15 at 10:25 pm

Leo Trollstoy on 05.29.15 at 9:10 pm
Why are condo prices in the GTA so crazy?

My friend was renting a 2/2 + den and was recently booted out because the landlord sold the 1000 sq ft place for $600,000.

Toronto real estate prices are rising with each passing day
_________________________________

Sorry realtor that is very weak propaganda and an outright lie. Look on MLS and see countless EMPTY condos for sale and for rent as owners try to either rent it or sell it and can not do either. Prices are coming down as seller lows ball each other in what I call a sellers war. The condo market is having crazy selling wars as 10 and sometimes 40+ condos in just one building fight each other to sell. Housing in the GTA is different but condos are garbage and set to fall 50% over the next few years

#60 Vanecdotal on 05.29.15 at 10:26 pm

#22 David Lee

Agree… and this may be why it’s not going away:

http://globalnews.ca/news/2014442/defining-and-courting-the-middle-class-vote/

“Interestingly, none of those were moving upward to the upper class. The movements were all into the working class and the poor,” Graves said. “After a period of stagnation for a lot of people, a declining and pessimistic middle class has replaced that optimistic and growing middle class. And people look at the future very darkly.”

So which party garners the most votes from appealing to the middle class lies in which party can convince the most people their party is the one that can re-start progress.

“[Canadians] really desperately want to know that [one party] can fashion some sort of a blueprint, a plan, something to re-start and get things working the way they used to work,” Graves said.

As a (non-partisan) aside I can’t help but notice after watching the latest utterly cringeworthy electioneering ads from both the Libs & Cons, I wonder do they know they’re apparently campaigning FOR the NDP? Weirdness!

#61 Squirrel meat on 05.29.15 at 10:27 pm

#47 Smoking Man on 05.29.15 at 10:04 pm
In two weeks , anothet the big Vegas adventure, going to area 51, need a pic of me standing inside the line that says trespassers will be shot.
—————
If you’re an alien then it’s not trespassing. Fake bravado.

#62 LL on 05.29.15 at 10:43 pm

#45 Centurion

They looks so happy……….

#63 LL on 05.29.15 at 10:46 pm

Love your humour. — Garth

I love your “naivete/credulus”!

Seriously? Nanaimo? — Garth

#64 H on 05.29.15 at 10:49 pm

Unreal Garth. For the Canadian Economy you picked all the main data that sucked.

For the US data you literally tip toed around and avoided the crap and looked for the few pieces that looked good.

Seriously? Are you kidding?

What about the chicago PMI. Supposed to be 54 came in 46. What? No comment on that? That is a major indicator of FUTURE ORDERS and the set up the second quarter GDP

Which brings to the revision DOWN. From +.2% previous reposted at -.7%

Are you simply not seeing this??

Garth, let me help you out. The second quarter GDP will be revised DOWN. Shortly. And then the full year.

That will push the wishful thinking of rates to go up into-oh wait…drum roll…next year.

But no. Carry on. Talk about car sales.

#65 LL on 05.29.15 at 10:55 pm

Seriously? Nanaimo? — Garth

Yes Nanaimo…It just pass on the news and if you do a search you will see they have plan to build a 50 millions hotel in Nanaimo..it has been approved in 2013 but since…nothing has been done.
Looks like they only park their money (if they bought the land), not sure.

#66 Retired Boomer - WI on 05.29.15 at 10:59 pm

Interest Rates UP? Yeah, and I have this toll bridge for sale, if you are interested?

What I ‘see’ is slacking demand for consumer discretionary spending for one simple reason: there is NO discretionary spending today. Raises have been moderate (below par), hours worked have not expanded, it has been shrinking locally with slack demand for mfg and a big fall off in frac sand demand here in Western WI.
Food prices advancing, gas advancing…yeah get a consumer to spend! NOT!!

NOT happening here. I personally would welcome a move to normalize interest rates, it just won’t happen.

Between Greece telling the EU a FU the markets near peak, and the chicken lady Yellin at the Fed, I believe it will be the 2nd Tuesday of next week before we see a raise in interest rates. (That means next to never!)

Rates remain unchanged to .25 pt up into 2016 -useless-

#67 Ror on 05.29.15 at 11:05 pm

Thank God the US added an extra 2% per year to GDP starting just last year for Research & Development otherwise the BEA would declare the US in recession.

#68 Smoking Man on 05.29.15 at 11:10 pm

I’m the drunken wierdo at the back of the bar. Talking to himself, lips moving with no sound. Struggling to put together the perfect combo of words to entertain you bastards.

I’m reaching,then nothing…

Bozze , rejection at the tax farm ..it hurts , don’t need the loot. I got a lot.

Dr Smoking man . voted off the island..

It was inevitable I guess.

#69 Bill Grable on 05.29.15 at 11:20 pm

Corvette – useless on the TTC tracks, that I used to struggle across, as i stumbled towards CFTR, during those lovely TO Winters!
Oh, the joy!

The US may be doing better. Canada?
Hah!
I just spent a few days with the Travel agent and firming up the time in Europe and she admitted business was “slow”. Read = SUCKS.
The people spending on RE in this Vancouver Market are crazed.
I mentioned it before – we should have a class in High School called “MONEY”.
I had to go through the HELOC explanation for another desperate friend last week. She had NO CLUE what she had signed. Now she has gotten in way too deep, and then BOOM, her high paying gig at the newspaper, ended – 2 weeks sev.

Smarten up or get run over.

#70 Yitzhak Rabin on 05.29.15 at 11:37 pm

“Actually it’s a seasonal bias that will soon be factored into GDP reporting. And dare I utter the words, ‘climate change’? — Garth”

I prefer your usual “this pathetic blog” which just got more pathetic with this comment.

If only people had thought of winter in the entire history of economic statistics.

Do you think they will seasonally adjust May and June downward because the weather is too good? I read here that only Real Estate Boards make up numbers, i’m sure the government has no reason to lie.

#71 LS in Arbutus on 05.29.15 at 11:39 pm

Well Nanaimo is known as Surrey the Sea… so maybe! :-)

#72 jane 24 on 05.29.15 at 11:55 pm

54 – Saltpony

The reason that your EU stats for detached home ownership is so low is that here in the EU this is not the most common form of housing. Most folk in Germany or Italy own apartments and most folk here in England own either semi-detached or row housing.

In most of the EU developers are not allowed to build the big estates of detached housing that you see in Canada as it is considered to be a waste of land and too expensive to service. Housing formats that are more intensely developed are encouraged instead.

#73 Washed Up Lawyer on 05.29.15 at 11:55 pm

Garth:

I am pleased to see you inject climate change into the debate although, on the downside, the comment section on this mildly worthy but mostly pathetic blog is now shot to hell as a result.

I was going to unload a long rant about CNRL and Murray Edwards, O.C. (Odour of Canada) but I am lacking my usual vigour tonight. I should buy a ‘Vette.

Also, I am 2/3rds the way through “Gran Torino” on Netflix.

I will be full of piss and vinegar tomorrow.

#74 Bottoms_Up on 05.29.15 at 11:57 pm

#8 The American
_________
I’m confused. 70% of Canadians are home ‘owners’, a large proportion of which own their home outright or have large equity. Their pockets have not been drained . How can you be so smug when you talk as if you’ve seen the future? Same with Jordan. There are many markets in Canada, and it makes sense to buy for a lot of people. There are more considerations that go onto buying a home than just relative interest rate level and average home price.

#75 Armando on 05.29.15 at 11:58 pm

I have no ability to predict future US GDP growth (which means I’m just like Garth, but a little more honest about my predictive abilities). Suffice it to say that unemployment is a lagging not a leading indicator, so it tells us nothing about what may happen going forward in the economy. My bet is based on current economic trends that the Fed won’t raise rates this year, and if things start turning down (like the stock market or GDP) the Fed will panic and not raise rates at all in 2016. That isn’t to say that this would save the Canadian housing based economy. On the contrary, if US rates don’t go up because there is a recession there, then oil will tank even further accelerating the decline in Mapleland. Either way Canada gets the short end of the stick!

#76 nonplused on 05.29.15 at 11:59 pm

33 LL

Anyone who gets married these days without a prenupt is either 1.) Stupid, 2.) Trying to pull a fast one, or 3.) just starting out and marrying someone with equal career prospects.

Personally I think all the talk about gay marriage is boring. A better question is why do we still have straight marriage?

#77 Pom D Terre on 05.30.15 at 12:02 am

Never gonna happen, even the Japanese character for Nanaimo means 7 potatoes, nana-imo , 七芋 ! If only it had been 8 potatoes the Chinese would be flocking in….maybe you can ask city council to rename it or call it West Richmond….

#78 Bottoms_Up on 05.30.15 at 12:08 am

#51
________
Actually Garth has a point about climate change. The Arctic air mass is lower south and more prolonged , possibly due to a change in ocean currents due to changing temps.

#79 sirex on 05.30.15 at 12:24 am

@ #65 great post.. will Garth close up shop when the fed doesn’t increase their rate?????? curious to see if he will make an apology letter to his readers.

I’ve never seen someone so sure that the Fed was going to increase rates….

Hey Garth if you know with 100% certainty that this is going to happen in a few months, I expect a news headline that says “GARTH TURNER CANADAS NEWWEST BILLIONAIRE”

seeing as how you can predict rates, shouldn’t be hard to short a ton of bonds.

#80 Andrew Woburn on 05.30.15 at 12:29 am

#66 LL on 05.29.15 at 10:55 pm
Seriously? Nanaimo? — Garth

Yes Nanaimo…It just pass on the news and if you do a search you will see they have plan to build a 50 millions hotel in Nanaimo..it has been approved in 2013 but since…nothing has been done.
Looks like they only park their money (if they bought the land), not sure.
===================

We live in one of the expensive parts of Nanaimo with the best water views and waterfront lots. We have seen Chinese language RE signs and a few, probably Mainland Chinese (friendly but no English) families walking in the park. So far we have no new Chinese neighbours.

The developers of the proposed Chinese hotel did buy the land but they are so far behind schedule that the city is debating whether they should exercise the option to repurchase it. I suspect the buyers were trying to flip it.

If a Chinese family wanted to make a long term real estate investment in Nanaimo, it would make more sense than in Vancouver since the downside risk would be a lot less. However you could say the same about Red Deer, AB even if Nanaimo is a lot prettier.

When we sold in West Vancouver, our (excellent) Chinese realtor said that Chinese from Richmond were now willing to move over the bridge to West Van because they were feeling more at ease in Canada and because Chinese groceries were now available in West Van.

Nanaimo is sadly (but not totally) lacking in quality Chinese groceries and restaurants, so the notion that there is about to be a stampede of Chinese buyers is a little stretched. If you think I am overstating the importance of groceries, imagine you have been offered the chance to move your family to Shanghai, but they will all have to eat noodles for breakfast. Every day.

#81 G LaGuderion on 05.30.15 at 12:29 am

Garth,

How do you recommend rebalancing the portfolio if US and China ignite a regional war in Spratleys, which will also draw in Japan, Taiwan, Vietnam, Phils, and others…..any Black Swan event ETFs?

#82 Andrew Woburn on 05.30.15 at 12:35 am

It’s good that we managed to end slavery in the 19th century.

“If current trends continue, the ITUC estimates that 4,000 workers will die in Qatar by the time the World Cup is actually held in 2022.”

http://www.washingtonpost.com/blogs/wonkblog/wp/2015/05/27/a-body-count-in-qatar-illustrates-the-consequences-of-fifa-corruption/

#83 Gas Creeping Higher on 05.30.15 at 12:38 am

Where is the deals on fuel 1.18 a litre in the Okanagan and people crawling around here like Worse than last year, like everything is just great… Holidaying here is wall to wall people on the roads and its only May, another thing a property 24 acres near the garbage dump sold for 3.2 million how long for those grapes to pay off? same size place with orchard in Washington 300,000 see a big problem??? talked to a developer about at a show home in Kelowna he said without prompting dont worry the builder can weather a recession… Go figure… They are building at the top of the mountain burn up your motor going there and wear out your breaks coming down only a million bucks for a modest home and guess what you only get a peek a boo view …. Yeah!

#84 Say no to Yoga Pants on 05.30.15 at 12:46 am

‘It’s as obvious as a building falling in on itself at free fall speed’

no one asked me but i’m with Blacksheep and the reason is simple – too obvious

the elites are way more into mis-direction, they don’t leave the obvious lying around unless it is intended to deceive

something else is going on though..

#85 omg the original on 05.30.15 at 12:48 am

Seriously? Nanaimo? — Garth
———
What’s in Nanaimo Bars……..

#86 Nagraj on 05.30.15 at 12:48 am

Bottles of “Consensus of US Economists” come with a warning label. MAY BE INJURIOUS TO YOUR FINANCIAL AND MENTAL HEALTH.

Bottles of “Consensus of Canadian Bank Analysts” whose label features an attractive yellow running dog are just plain toxic. (And cheap.)

Bottles of “BoC Estimates” give off laughing gas when opened after storage.

Bottles of “Turner’s 7% Solution” require long aging in the cellar, oenophile opinion varies.

#87 omg the original on 05.30.15 at 12:50 am

….Hookers and Bikers

#88 BigM on 05.30.15 at 12:56 am

@54 saltpony

ummm the numbers you quote are actually the percentages of detached housing as a part of the total housing stock of the country.

In other words, 22% of all housing in Italy is a detached house.
14% of all housing in the Netherlands is a detached house.

Ownerships rates in Europe are normally around 50 – 70%.

It is worth saying, companies are being formed and gathering investment money to buy flats in European cities in order to rent them out.
Sometimes, they just buy the whole building.

#89 Dee on 05.30.15 at 12:57 am

#60 Canada is a house of cards:

Yup, absolutely. I mean it’s just one piece of data, but I was walking through ultra-trendy Leslieville, past one of the new buildings (southeast corner, Dundas and Carlaw, if anyone doesn’t believe me and wants to see) and saw a post next to the parking garage where at least 15, possibly 20 realtor lockboxes were hooked.

That building’s been finished and open for…about a year? I think? And that’s in one of the hottest parts of the city (or so everyone keeps telling me when they find out I rent here and have for years. “oooh you’re gonna get priced out!” not…so much.)

#90 Longterm on 05.30.15 at 1:41 am

#54 saltpony on 05.29.15 at 9:53 pm

Be careful of reading too much into detached stats with with a Canadian frame of reference.

In the UK, for example, where I lived for a decade until recently, most homes aren’t detached. In London, which wags the UK dog, the vast majority of properties are flats, row houses [maisonettes] or semi-detached houses. Only in the distant burbs are there detached houses. This is the case in most cities and towns across the country with the bulk of detached houses in rural areas or at city edges.

So 24% of home owners in the UK owning detached is probably correct, though I’d have guessed if would have been lower. Nevertheless, the bulk of home owners – some 65% of the population – own flats or semis. The remaining 35% rent, and in cities like London, often share flats well into their 30s.

The owners are comprised of local councils, which often own hosueing estates, but predominantly ‘buy-to-let’ landlords – basically amateur landlords with one or two rentals – and a relatively small number of pros and artistocratic money who own vast swathes of property [google ‘Duke of Westminster’ if you are curious about how exterme it is]. Brits are obsessed with property and ‘buy-to-let’ is viewed as the best possible investment with all sorts of bad math and knowing nodding of heads at dinner parties.

Generally speaking, across Europe with it’s small, compact and densely populated cities and towns, detached homes make up a much smaller percentage than in Canada so the real ownership rate is much higher than the detached ownership rate.

Nevertheless in some European countries and cities renting is popular and preferred [much of Gernmany, Amsterdam is an good example with life-long leases for the city for most properties within the old city bound by the canals, etc].

#91 ILoveCharts on 05.30.15 at 1:45 am

Can someone please explain this to me:
http://www.bmo.com/main/personal/bank-accounts/savings-builder/overview?ecid=sm-AGILE-16066EDB4-AKBMO26

They are advertising a 2.5% interest rate on savings accounts but it appears that there are two conditions:

1) To get that rate, you need to add at least $200 of cash to the account each month (this is stated clearly and fair enough.)

2) This is the important (and confusing) one.
A) Are they saying that as long as you sign up before June 30th, you will get the 2.5% interest rate for a long period of time?
OR
B) Are they saying that they are actually only going to pay 2.5% until June 30th (a single month!!!) and then it reverts to 1.3.%

If it is 2B (they are only paying the higher interest rate on a single month,) how is this ad possibly allowed? If that is the case, this is one of the most deceiving pieces of advertising, I have ever seen. Our banks might as well be pawn shops and pay day loan operations at this rate.

#92 DodgedBullet on 05.30.15 at 2:11 am

Hey Garth, currently on parental leave for 6 months, spending 3 of those in the USA travelling around: Kentucky, Louisiana, Texas, Phoenix, Nevada, California, Oregon… and in all of those states in so many places I have seen “Help Wanted” signs on business windows. Thought to mention.

Ben.

#93 fisheman on 05.30.15 at 2:23 am

Another same morning blabberfest in boring Vancouver at Starbucks by the local but dwindling old crew. A regular has listed & has a bidding war starting north of four million. Other one down, (as in down south all winter). Does it matter if the hundred or so houses in his area are filled with Mandarin speakers. Not to us cause we’re “cashin out”, Well , maybe not me; yet. And to think none of us have a university degree, never made out a resume, or for that matter had a job with a boss in the last 35 years. Maybe you blog dogs should pay more attention to SM”s deprogramming program. l
Last fall market was dead, listings were getting lowballed, Feb. the traditional Chinese New Years salesorgasma was almost a bust. Right now any west side listing has swarms of hungry killer bees around it. What’s the prognosis? Well none other than B. Rennie was in for his morning Java (by the way for you wannabe’s, he gets up very early every morning). So we asked him What do you think? His answer, “Ya real estate; that’s a good gamble”

#94 ILoveCharts on 05.30.15 at 3:12 am

As an update, I started to run the numbers on this site:
http://www.bmo.com/main/personal/bank-accounts/savings-builder/overview

through a calculator on this site:
http://www.thecalculatorsite.com/finance/calculators/compoundinterestcalculator.php

And it is true, you only get 2.5% interest for the first month. After that, it reverts to a maximum of 1.3%. That kind of advertising should be illegal.

#95 Sepp Blatter, Realtor on 05.30.15 at 7:19 am

Woohoo! I am the president of everybody!

My re-election at FIFA was such a cakewalk, and now I have lots of free time on my hands since that job barely requires fifteen minutes of oversight every month.

So I got my real estate license to work in Canada!

And later this year, I am running again, for President of CREA!!!!

I love how they play with numbers – I will be right at home with them :) I ADORE the HPI!!

I am a faithful man…God, Allah or whoever is this extraordinary whatever it is, spirit in the world that we believe, they will help us to bring back CREA to where we shall be.

Let’s go FIFA!

Let’s go CREA!

#96 Goldie on 05.30.15 at 7:37 am

Yes, I did take your advice regarding the US a couple years ago. It wasn’t just from you but you were definitely one of my influences, so… thanks for that. The writing was definitely on the wall in retrospect.

#97 LL on 05.30.15 at 9:26 am

#80

I don’t think they live in Nanaimo, they just park money there.
In the news, a neighbour says the house has been left empty for 9 months now.
They just invested in real estate (they also buying business in Nanaimo).
About the hotel project..you’re right they probably just wanted to flip the land. Looks like it…

#98 fear on 05.30.15 at 9:36 am

Rates up, rates down, why are you guys so hanged up on them? It doesn’t matter what the rates are if you don’t have a job. I live in Burnaby and sfh market is crazy, but condos are flat at best. In the further burbs where the regular folk live the sales are dropping, my guess is that layoffs are starting to make an impact… target,futureshop, people that were flying to oil sands, etc. All you need is a little bit of fear and that might come sooner than expected, let’s see the GDP numbers for the second quarter, technical recession will be the word in the news, big engineering companies are firing people here, who is going to buy condos?
Btw there is a forest of towers to be completed this year…

#99 LL on 05.30.15 at 9:41 am

# 67 – Interest Rates UP? Yeah, and I have this toll bridge for sale, if you are interested?

They play that game for 6 years now…”interest rates will go up…bla..bla..bla..”

Each time they say that, the stock market goes up, peoples are scare and those who believe that go buy a house before interest rate will go up.
Or the renew their mortgage at fixed rate before the term end.
They lock mortgage at fixed term and interest rate goes down! What a burn!
It’s a mass manipulation!
Check in couple of months, they will say (as usual): “the economy is good, interest rate will not goes up” and they will even goes lower.

#100 Renter's Revenge! on 05.30.15 at 10:00 am

@ILoveCharts:

“That kind of advertising should be illegal.”

It’s not. By the name “savings builder”, they’re probably referring to the common shareholders’ savings, who just got a dividend increase on top of their 4.2% yield.

#101 crowdedelevatorfartz on 05.30.15 at 10:46 am

@#94 fisheman
“What’s the prognosis? Well none other than B. Rennie was in for his morning Java (by the way for you wannabe’s, he gets up very early every morning). So we asked him What do you think? His answer, “Ya real estate; that’s a good gamble”
+++++++++++++++++++++++++++++++++++

You expected Bob to say the truth?

Real estate was overpriced crap for only for suckers.

He’s a realtor…….

#102 NOTHING SURPRISES on 05.30.15 at 10:47 am

The Middle East will change circumstances on June 5.

#103 crowdedelevatorfartz on 05.30.15 at 10:48 am

@#96 Sepp Blatter,Realtor

Good one! :)

#104 crowdedelevatorfartz on 05.30.15 at 10:50 am

@#100 LL

Repeat after me.
Lollipop lollipop la la la-lollipop.
Lollipop lollipop la la la-lollipop.
Lollipop lollipop la la la-lollipop.

#105 dong on 05.30.15 at 10:58 am

You believe in “global warming”??? Idiot.

#106 Hh on 05.30.15 at 11:01 am

Atlanta Fed GDP Q2 estimate at 0.7%. Remember these guys? You know – the ones that have been getting the estimates right. … Lower for longer.

#107 Sheane Wallace on 05.30.15 at 11:04 am

economy is not well, it it was well interest rates would have been normalized.

The more they keep the Ponzi real estate market going the more capital gets miss-allocated and the real growth staying negative.

We manufacture nothing competitive for the world markets.

Our public services salary, benefits and pension system is unsustainable.

Ontario public debt is unsustainable.

CMHC is unsustainable.

Only CPP is sustainable.

Most of the economic activities are not adding value and the core activities (like manufacturing that drive derived activities) shrink and shrink.

FIRE, retail and some added services can not create backbone of an economy, they would normally feed on such backbone.

CHMC and propping of the housing market as well as the BOC policies are deeply misguided and will bakfire big time.

I am just afraid that we already have passed long time ago (2008, 2009) the point of no return and that the idiots in key positions will continue pushing and pushing with idiotic policies until everything collapses.

There would be collapse in some shape and form, most likely currency will be completely destroyed.
So savers and retirees screwed big time.
No jobs for the young.

#108 Daisy Mae on 05.30.15 at 11:07 am

#41 Smoking Man: “Me , I just can’t do it. I would rather die than suck up.”

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

I don’t need to ‘suck up’ to anyone. I come here to read Garths’ blog….and a few intelligent posters.

#109 Sheane Wallace on 05.30.15 at 11:08 am

#100 LL

exactly,

I can not stress the importance of moving the so called ‘money’ we enjoy (in reality confetti printed at will) to countries with real growth, real economy, growing middle class and interest rates north of 5-6 %.

Suppression of market forces and overriding the value of money on open markets is a crime and theft,

In normal markets interest rates would be at least 4-5 %.

BOC is effectively stealing our money.

#110 Daisy Mae on 05.30.15 at 11:14 am

#58 Smoking Man: “In two weeks , anothet the big Vegas adventure, going to area 51, need a pic of me standing inside the line that says trespassers will be shot…..”

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

Is this intelligent and on topic? LOL

#111 Investorz on 05.30.15 at 11:26 am

#35 Ret

“Should we buy US$?”

Computing taxes for currency changes is a pain. Worst, some don’t know about it and get hurt BIG a year later.

Instead, buy an ETF of US stocks that’s “unhedged”. What that means is, if the US dollar gets stronger, you will benefit just the same.

There’s another advantage. You don’t have to worry about the CRA form that requires to declare foreign assets (mind you, that’s only if you have more than 100k total)

#112 Doug in London on 05.30.15 at 11:29 am

@The American, post #8:
I agree fully with your post. These people may be educated, but lack basic common sense and thus are stupid. I don’t understand how we Canadians don’t get it, after seeing a housing correction occur in our nearest neighbour, and that they have happened here in the past. However, when I see some of the comments on this blog, it’s obvious a lot of people are coming up with all kinds of excuses for why this bubble is justified and will continue on forever. It’s typical of what happens in a bubble and sustains it for so long.

Is renting a big social mistake for Jordan? If he’s a sensible and rational guy, would he have anything in common with fools who don’t see the logic of renting? Those fools are clearly not on the same page as he is. He’d be better off finding real friends who are more like minded. They are out there, you just have to find them.

#113 S.Bby on 05.30.15 at 11:29 am

Nanaimo: I’ve been visiting Nanaimo and Parksville over the past few days and nothing out of the ordinary happening here that I can see.

#114 LL on 05.30.15 at 11:32 am

# 108 …”economy is not well, it it was well interest rates would have been normalized”….

That’s why real estate has became the new form of economy (for now). What’s next?
Immigration will never stop because we need those rich foreigners to inject money in the system.

#115 The American on 05.30.15 at 11:52 am

At 45: Waterloo Resident, you said, “Oh oh, too late, the U.S. has started their military movement into Chinese claimed territory…”

I think you mean Chinese *illegally* claimed territorIES. These are international waters as is recognized by the U.N. So, the U.S. has moved into noone’s territory. Vernacular means everything in a statement such as this. The Chinese have been adhering to this kind of illegal, unilateral behavior for years, just claiming land and bodies of water that clearly are not theirs, and at times already belonging to other nations (ie. Tibet, Kazakhstan, etc.). How about they claim Canada next as theirs, because that’s exactly what allowing their type of behavior to continue will permit in time :-). Any suggestion who you will pick and choose to come to Canada’s aid and rescue? This may sound harsh, and may make some of you cry, but it certainly won’t be Canada’s forces, with three rowboats, a couple of old bi-planes, seven 2003 Chevy Tahoes, thirty-six sling shots, roughly one thousand rocks, and four thousand old Canadian pennies.

#116 Chris in Nanaimo on 05.30.15 at 12:15 pm

The market seems pretty flat in Nanaimo. I live near some new standard family homes for sale, fully suited and landscaped, been up for several months. Ive seen a few realtor signs in manderin as well which is unusul here. I could point to our massive waterfront highrise that appears to be at least 70% empty, but i suspect thats actually absent Albertain owners.

The missing chinese hotel is just a gong show, the local council desperate to get enough accomodation for the white elephant that is euphamistically named the Vancouver Island Conference Centre (Nanaimo thinking it can compete with Victoria).

But Nanaimo has no draws, i’m sick of having to deal with basically no traffic, having to choose which local stunning park or lake i’m going to visit this week. The relatively cheap housing ($380K for a new SFH) just sucks bigtime. As for being only 2.5 hrs from the Pacific Rim National Park, that’s a real drag as well.

No reason for more folks to move to Nanimo, move along please…..

#117 Shawn on 05.30.15 at 12:20 pm

Misleading Advertising On Interest Rates

I Love Charts complained about BMO’s misleading advertising where they promise 1.2% extra interest until June 30 and it seems a bit unclear if the bonus continues after that as long as you sign up by June 30.

I agree this is misleading. I view it as unethical.

Other banks including President’s Choice have done this as well.

Anyone switching banks to get an extra 1% interest for only a month or so was almost assuredly misled into thinking the bonus interest would last longer than a month.

Imagine switching $100,000 for a hundred dollars extra interest. Or, more likely $10,000 for ten dollars.

I am not sure it should be illegal. But it should garner some bad press. Maybe take the time to call the number and confirm the bonus rate is only for a month and then complain that the advertisement was deliberately ambiguous at best and deliberately misleading at worst and that you suspect it was the later and that you won’t be sending over any deposits anytime soon.

#118 joblo on 05.30.15 at 12:22 pm

“The economy’s blowing smoke. GDP (gross domestic product, a measure of economic growth) shrank 0.6% on an annualized basis in the first three months of 2015.”

So how can we profit from Bill C51?
Any ideas?
Love to be a pig in that trough, gotta be some investment opps.

#119 Retired Boomer - WI on 05.30.15 at 12:37 pm

LL & Sheane Wallace

Both of you had interesting posts. Yes, agreed the economy (of US & Canada) is ‘not well.

The question is WHY after almost a decade of ’emergency interest rates is it still “not well?”

Too cheap a price on money? No incentives to build / bring back mfg to our respective countries? “Free trade” laws that give license to move good jobs to cheaper destination? OOPS… something is wrong somewhere.

We are mainly idling in the US slow uneven growth at best.
Canada isn’t even idling, but rather a slow melt of producing things, either mfg, mineral, or oil.

So where should we look to reengineer the ways we “do business” and allocate capital with the end game to foster our countries -our people’s- interests?

Anybody got a politician willing to tackle the BIG picture subjects these days? The US appears fresh out of stock on bright people -sorry

#120 Iann on 05.30.15 at 12:42 pm

Looking at that chart – “Winter” seems to appear more frequently recently.

Are we heading to a two-season climate? Or perhaps a permanent winter. Climate change indeed:)

#121 LL on 05.30.15 at 12:49 pm

Third, never, ever, ever believe what you read in the comment section of this pathetic blog.

Unless it agrees with me.

Wow…what an advice!
My advice: do your own homework and think by yourself.

#122 Setting the Record Straight on 05.30.15 at 12:49 pm

@61

#22 David Lee

Agree… and this may be why it’s not going away:

http://globalnews.ca/news/2014442/defining-and-courting-the-middle-class-vote/

“Interestingly, none of those were moving upward to the upper class. The movements were all into the working class and the poor,” Graves said. “After a period of stagnation for a lot of people, a declining and pessimistic middle class has replaced that optimistic and growing middle class. And people look at the future very darkly.”

So which party garners the most votes from appealing to the middle class lies in which party can convince the most people their party is the one that can re-start progress.

“[Canadians] really desperately want to know that [one party] can fashion some sort of a blueprint, a plan, something to re-start and get things working the way they used to work,” Graves said.

As a (non-partisan) aside I can’t help but notice after watching the latest utterly cringeworthy electioneering ads from both the Libs & Cons, I wonder do they know they’re apparently campaigning FOR the NDP? Weirdness!

$$$$$$
Thanks for posting the video links. They should be watched.
The professional pollsters/political operatives see middle class as a state of mind, similar to the views on this blog.
They note self identification as middle class has fallen in the U.S. Fri 70 to 50 percent of the population.

This is a canard sold to the populace. Class is a pyramid not a football.

What we had was a prosperous working class with good and rising incomes.

The global conditions for a prosperous working class in the west have evaporated.

Now we have a crony capitalist class using the government to extract income from the working class bribing with crumbs the running dogs in the bureaucracies.

Looking to the government to fix the problem is the equivalent of convening a committe of weasals to investigate the breaches in the henhouse.

#123 Godth on 05.30.15 at 12:55 pm

#112 Retired Boomer – WI on 05.30.15 at 12:37 pm

After 40+ yrs. of offshoring, financialization, consumerism, globalization, etc. we’ve arrived…debt through the roof (private and public) and we’re bubble surfing our way to the blinding flash of light.

Why is Obama Goading China?
http://www.counterpunch.org/2015/05/29/why-is-obama-goading-china/

#124 Obvious Truth on 05.30.15 at 1:11 pm

The gdp report looks about as bad as can be. Not sure that changes anytime soon.

But theres still government spending believe or not that can keep things from going too far off the rails. JT may have the answer and the liberal machine knows how to pull it off. At least till the cpeso is lower. Sort of a 90’s repeat is what it’s starting to feel like. Cue the old liberal favourites in the media.

Same story different decade. Canada is a small place folks. We are not makers of markets. It will all work itself out. Your individual choices will determine what that looks like for you.

In the meantime how about just enjoying what we do have. Truly a great country. And we don’t have to diminish other countries to say that. Everyone commenting here is much luckier than most. We get the opportunity to make our dreams a reality. And help others in our communities.

People watching today in northern ontario is dull. Everyone driving their fancy cars not speaking a word. People are so blah. Lost their dreams. They need to listen to Triumph.

‘Hold on’ josh, Jordan and all the daily doomers.

#125 Oot der Hoos on 05.30.15 at 1:36 pm

To 110 and 108 Sheane Wallace

This adds to your explanation and you might like it:

Doug Noland Weekly Commentary: Out of Thin Air

Credit instruments are an “IOU.” Importantly, new Credit/“IOUs” create additional purchasing power. Especially late in prolonged Credit booms, financial instruments and claims come to account for enormous amounts of system “wealth.” Crises are the process of rectifying the divergence that develops between financial wealth and actual underlying economic wealth. This process invariably unmasks the systematic wealth redistribution that gathered momentum throughout the boom cycle.

Borrowing language from Murray Rothbard, money (and Credit) can be created “Out of Thin Air.” Such Credit expansion is referred to as “Credit inflation”.

more here:
http://creditbubblebulletin.blogspot.ca/2015/05/my-weekly-commentary-out-of-thin-air.html

I think low interest rates put the brakes on the USA economy. The emergency measures should have stopped by the summer of 2010. Credit growth has been faster than real income growth for years. Lower prices would have helped the poor and helped economic growth. Rhetoric calling zero interest “stimulation” was obviously wrong. Seven years proves it. No?

Normalisation of rates is not awaiting a normal economy, as the socialist central bankers mistakenly say. Low rates create the abnormal economy.

To be fair, gov’t actions which are not monetary add to the problem. For example, minimum wage hikes, new taxes and regulations like condo training/licenses favour the rich commie oligarchs (commie Liberal Ontario) and radical skinny jhadist healthcare taxes in USA reduce private activity, reduce choice, impose one choice, and price-fix the rich socialists richer, and poor poorer.

But control freaks and spies say they mean well. Do not vote for them.

#126 LL on 05.30.15 at 1:46 pm

#120 Retired Boomer – WI

Your comments are right on.

Time are changing, I think we have to adapt or we will disappear like dinosaurs! :)

“May we live in interesting time”

#127 not me on 05.30.15 at 2:26 pm

#92 ILoveCharts on 05.30.15 at 1:45 am
“Can someone please explain this to me:
http://www.bmo.com/main/personal/bank-accounts/savings-builder/overview?ecid=sm-AGILE-16066EDB4-AKBMO26

They are advertising a 2.5% interest rate on savings accounts but it appears that there are two conditions:

1) To get that rate, you need to add at least $200 of cash to the account each month (this is stated clearly and fair enough.)

2) This is the important (and confusing) one.
A) Are they saying that as long as you
B) Are they saying that they are actually only going to pay 2.5% until June 30th (a single month!!!) and then it reverts to 1.3.%”

2b – only till end of June. Also they cap the balance to $250K – the rate does not apply to anything over that. It’s a scam. Scotia bank offers something similar. They are desperate.

#128 Bottoms_Up on 05.30.15 at 2:51 pm

#116 The American on 05.30.15 at 11:52 am
——————————————————-
That’s *nine* 2003 Chevy Tahoes, thank you very much! (lol)

#129 Bottoms_Up on 05.30.15 at 2:54 pm

#106 dong on 05.30.15 at 10:58 am
——————————————–
Dude, global warming, as in temperatures averaged around the world, is indeed a fact now. It’s not a belief, a myth, or a theory. It’s a fact.

We have just been ‘unlucky’ in North America to experience cooling. Most of the rest of the world is getting hotter.

#130 saltpony on 05.30.15 at 3:00 pm

#73 Jane24
#89 BigM
#91 Longterm

Thanks for the information. It was really helpful to see what the norm is relative to us. I’ve haven’t been to Europe so I don’t know how people live there.

It seems that generally, a lot of people own their own homes (flat, apartment), in Europe, when I spent time studying the stats. Turning my iPhone sideways to see the full graph also helped haha.

I guess the condo, flat, apartment isn’t as reviled as in North America.

Here’s the link:
http://en.m.wikipedia.org/wiki/Housing_in_Europe

Thanks again,
saltpony

#131 Setting the Record Straight on 05.30.15 at 3:07 pm

@67
it will be the 2nd Tuesday of next week before we see a raise in interest rates. (That means next to never!)

$$$$$$
Good line
Is that Wi slang? I intend to steal it

#132 saltpony on 05.30.15 at 3:29 pm

#91 Longterm

I googled Duke of Westminster and guess what… He’s no longer UK’s greatest landownder…

Guess who is.. Yup. They who shall not be named.

Thanks for the indepth read.
saltpony

http://www.telegraph.co.uk/finance/newsbysector/constructionandproperty/10500634/Duke-of-Westminster-no-longer-UKs-richest-property-magnate.html

#133 Jay Longbone on 05.30.15 at 3:35 pm

I too have spent the majority of the past five years out of Canada working internationally, but primarily in the US. If it weren’t for the ‘closer connection’ for tax status to Canada and the fact that I have 40 years of savings and RRSP’s, houses, licenses, association contacts etc etc that would be subject to the ‘Departure Tax’….I might never come back.

As it is…if I were twenty with no savings and the world was begging me to work there because I have a specific in demand education…I would exit Canada in a heartbeat for the myriad of benefits elsewhere that Canada can’t hold a candle to. To opportunities in the US are incredible for a young person..the cost of living half what it is in Canada…cars cheap, insurance cheap, groceries cheap, taxes half…the lifestyle enjoyment factor based on the increased disposable income is thousands of times greater.

As it is.persons like myself are not likely to leave permanently due to the onerous ‘Deemed Disposition’ rules the CRA has imposed on Canadians. It is a system that is designed to keep all Canadians marginalized and poor. My theory is that our governments have decided that poor people are far easier to manipulate.

I liken Canadians to a long term prisoner who commits a crime within days of being let out because they are afraid they might have to fend for themselves on the ‘outside’.

Having said that it is shocking to come back and objectively bear witness to the inflation that our government propagandists flatly deny exists. Groceries have doubled in five years. Housing..including rents have doubled in the same time frame. What really shocks me is how pharmacy consumer products like cough syrup, lotions, ointments, creams..etc etc etc…..have trebled and quadrupled. I know this because I have receipt files of all purchases for my expenses. In a Walmart to Walmart cross border comparison…some of the items that are .88 cents in the US are $13 to $30 dollars here.

A package of three steaks ( huge dinner plate size two inch steaks) are $15 in Dallas…..here the same meats in the same package, are $50 to $60 dollars if you can find them.

I’m fortunate to be bringing all those juicy US dollars back to Canada…..I know what immigrants feel like when they buy the Canadian Peso…you laugh when you exchange the money ( Yuan Pound Euro Dollar) and know what you can out bid the locals for everything. But..I really do feel sorry for Canadians….and trust me…my kids will not stay here. My lucrative profession has been passed along.

#134 Index investor of US market on 05.30.15 at 3:50 pm

This is an interesting article, plenty of charts:

“In conclusion …

I think stocks are priced to deliver lousy returns over the next seven to 10 years. I also would not be surprised to see the stock market drop sharply from this level, perhaps as much as 30% to 50% over a couple of years.

None of this means for sure that the market will crash or that you should sell stocks. (Again — I own stocks, and I’m not selling them.) It does mean, however, that you should be mentally prepared for the possibility of a major pullback and lousy long-term returns.”

Read more: http://www.businessinsider.com/stock-market-crash-2015-5#ixzz3beYIoRIS

http://www.businessinsider.com/stock-market-crash-2015-5

I can’t count how many times I have read exactly the same article. Wrong, always. — Garth

#135 Setting the Record Straight on 05.30.15 at 3:53 pm

@116 the American
Any suggestion who you will pick and choose to come to Canada’s aid and rescue? This may sound harsh, and may make some of you cry, but it certainly won’t be Canada’s forces, with three rowboats, a couple of old bi-planes, seven 2003 Chevy Tahoes, thirty-six sling shots, roughly one thousand rocks, and four thousand old Canadian pennies.
&&&&&&&&@@@
Canada needs nuclear and biological weapons.
Small countries are effectively defenceless

#136 Marco on 05.30.15 at 4:31 pm

@ The American

Don’t get me wrong I like your posts for the most part. Lots of nuggets.

I just could not resist.

“Any suggestion who you will pick and choose to come to Canada’s aid and rescue?”

What is Britain? Alex.

Cheers!

#137 Setting the Record Straight on 05.30.15 at 4:36 pm

http://original.antiwar.com/Ted_Snider/2015/05/29/stephen-harpers-unprincipled-and-inconsistent-foreign-policy/

#138 Suede on 05.30.15 at 4:59 pm

You blog dogs need to get out more.

More to life than just charts and ratios about buying and renting.

Vegas is busier than the last 5 years. Economy rocking. Two double is now $44US in the lounge. Bottles $500 with a fancy rope.

Missed the boat on MGM shares.

The buffet is $75 for two people.

Will play craps tonight and drink double woodfords and coke. Shoot, the wife is back, time to get off GF

#139 Suede on 05.30.15 at 5:00 pm

Ps. Some nice investment houses here with cap rates of 8-10%

#140 45north on 05.30.15 at 5:19 pm

Nacho Cheese: Is there an industry wide specific lower limit of presales that must be reached before a condo can be built?

Condominium Financing by David Fleming

http://www.torontorealtyblog.com/archives/condominium-financing/9775

#141 PM on 05.30.15 at 5:19 pm

@135

I think stocks are priced to deliver lousy returns over the next seven to 10 years.

I’d love to hear what this guy had to say May 2008. I bet he totally foresaw the next 7 years thanks to some metric and it didn’t include a mortgage-backed equity collapse or the 3rd longest bull market.

No one knows the next 7 years. By the same token Garth has been calling for a real estate crash in Canada for the same 7 years (look at the history of this blog) so his opinion is as equally worthless as all others.

The only time tested solution is a diversified group of holdings and enough water/food to survive a couple weeks in case of the zombie apocalypse (week 3 outwards are a free-for-all)

#142 SWL1976 on 05.30.15 at 5:29 pm

I would just like to add my 2 cents on climate change here.

Yes it happens regularly and has been happening since the earth started spinning around the sun. There are no constants with our environment, both locally and in outer space. However, this does not mean that humans do not have a direct affect on or environment. Try leaving your car running inside you shop with the door closed and see how that works out for you? Not only will your shop get hotter, but the air will become toxic to human health.

Now our wonderful earth which most people have no respect for, thankfully has natural filters that clean our air thus sustaining life. As far as temperature goes the sun has a direct affect, the angle of the earth has a direct affect, as does the wobble and the orbit.

Simple.

Now if all those things directlt affect the earths temperature. Is it not ignorant to think that 7 billion people driving cars, taking intercontenental flights, heating their homes, cooling their homes, building concrete cities with glass towers, making steel, compressing natural gas to a liquid, giant computer server farms, squeezing oil from dirt do not contribute to a warming planet? I have worked in lots of heavy industry, and in every one of them there is, and are banks of heat exchangers exchanging hot air for cold air, or hot water for cold water. If you think humans do not contribute to climate change then… Wow!!! I don’t know what else to say

Straight up our weather is being manipulated and they are seeding or atmosphere and sparying us with chemicals. Sucks I know. Why do you think we need new names for weather like phenomena like polar vortex. The arctic is warming fast and they are pushing that cold air over the eastern part of NA making people think its cold and cooling down. Who knows how this will end, but like has been said many times here on this blog…

It probably won’t end well

Acceptance, education, and good old fashioned critical thinking skills are needed now more then ever for positive change.

Be the change you want to see in this world

Thanks Garth for deleting that one line last night. It was out of line. I had a few beers and knew better, shop talk

#143 Debtfree on 05.30.15 at 5:57 pm

Thought you would like Rex Murphys last words today , if you missed them . beware of a man with a beard .

#144 Made in BC on 05.30.15 at 6:02 pm

#34 Investorz on 05.29.15 at 8:52 pm
Yesterday, on BNN Kevin O’Leary, who’s been harping on investing in the US, said that he’s more bullish on Canada and out of his North America weighting, he’s 50% Canada.
++++++++++++++++++++++++++++++++

ALWAYS do the opposite of O’Leary. Guaranteed way to make money.

#145 Debtfree on 05.30.15 at 6:04 pm

You dogs with your links should give Garth a break from having to read the bloody things ,so as to monitor them . You have a choice to read them or not . If I were Garth I would delete them all at least on the weekend .

#146 Made in BC on 05.30.15 at 6:05 pm

#143 SWL1976 on 05.30.15 at 5:29 pm
I would just like to add my 2 cents on climate change here.

Yes it happens regularly and has been happening since the earth started spinning around the sun. There are no constants with our environment, both locally and in outer space. However, this does not mean that humans do not have a direct affect on or environment. Try leaving your car running inside you shop with the door closed and see how that works out for you? Not only will your shop get hotter, but the air will become toxic to human health.

++++++++++++++++++++++++++++++++++++

How many volcanoes have gone off in the last 12 months. 10? 15?

ONE VOLCANO releases MORE CO2 than every car and truck in the world running 24 hours a day for 2 years.

But you will never hear this stat in Govt because they want to tax the crap out of you to pay for a much too large out of control govt. Thems the facts go look it up.

#147 Holy Crap Wheres The Tylenol on 05.30.15 at 6:06 pm

I’m the drunken wierdo at the back of the bar. Talking to himself, lips moving with no sound. Struggling to put together the perfect combo of words to entertain you bastards.

I’m reaching,then nothing…

Bozze , rejection at the tax farm ..it hurts , don’t need the loot. I got a lot.

Dr Smoking man . voted off the island..

It was inevitable I guess.

————————————-
Well buddy now you can finish your book!
You are a self made business man so go for your California gig!
Good luck!

#148 squirrel meat on 05.30.15 at 6:12 pm

#143 SWL1976 on 05.30.15 at 5:29 pm

Ok I’ll be polite…. Who is “they” you speak of all the time.

#149 Oot der Hoos on 05.30.15 at 6:14 pm

#130 said temperatures are fact. I think not, because here is how the so called fact was faked. Explain it away if you can.

http://www.telegraph.co.uk/news/earth/environment/globalwarming/11395516/The-fiddling-with-temperature-data-is-the-biggest-science-scandal-ever.html

SWL used people counts.
Is 7 billion people small, like a 7 billion ant colony in my backyard compared to my house volume, or is my one furnace bigger compared to my house volume? Answer: one furnace is a bigger effect than 7 billion ants or else I would use ants.

So I am unconvinced from your billions number. Maybe there is data to support your claim.

#150 Mister Obvious on 05.30.15 at 6:14 pm

#142 PM

“By the same token Garth has been calling for a real estate crash in Canada for the same 7 years”
—————————

For as long as I’ve been reading this blog (5 years) Garth has stated repeatedly he does NOT forecast a real estate “crash”. You are confusing his words with those of the many hundreds of commenters who have come and gone over the years.

As long as I’ve been here, Garth’s message has always been consistent: Residential real estate is only ONE class of asset. That asset has become extremely risky because speculation has driven values far beyond anything supported by fundamentals.

That makes it a foolish “investment” if you’ve borrowed almost 100% of the cost to purchase highly overpriced real estate which constitutes the entirety of your net worth (which is essentially zero the day you move in).

That’s the message. Why does it not sink in?

DON’T OVER LEVERAGE YOURSELF TO BUY A SINGLE, OVERPRICED, RISKY ASSET.

What’s so damned hard about that?

A Canadian real estate crash is unlikely but a lifetime of indebtedness paying for an asset that is not growing (and is more probably shrinking) is a very real threat to your long term financial heath.

I’ve never known a man more subject to attack by the “straw man” logical fallacy than Garth. If it were me I would have quit long ago after having repeated the same message for years and having it forever misinterpreted by those who can’t seem to read.

#151 SWL1976 on 05.30.15 at 6:38 pm

#147 Made in BC – I didn’t say anything about tax. Yes a carbon tax is a scam. We breath out CO2, so I see where this tax is going. As far as volcanos, yes they can and do have profound effects on our climate. Sometimes catastrophic

#149 squirrel meat – The ‘they’ I always refer to is the ruling class calling the shots. The shadow group that most refuse to admit exists

We have the power. They have control, the control part needs to change

#152 Bottoms_Up on 05.30.15 at 6:45 pm

#147 Made in BC
———-
In that case it’s worse than I thought. Human automobile use is but a fraction of overall global warming emissions derived from oil and petroleum products. Methane is actually a very bad player and has significant releases from the petroleum industry. Also, our appetite for beef carries very significant releases from cows and agriculture techniques. And, for the record, scientists are not hiding the fact there are natural sources of these emissions.

#153 Ray Skunk on 05.30.15 at 7:14 pm

#90

Yup, absolutely. I mean it’s just one piece of data, but I was walking through ultra-trendy Leslieville, past one of the new buildings (southeast corner, Dundas and Carlaw, if anyone doesn’t believe me and wants to see) and saw a post next to the parking garage where at least 15, possibly 20 realtor lockboxes were hooked.

Funny you mention this. I get my hair done in that very building and walking back to my car pass this array of lockboxes and take note of the numbers. They’ve been gradually increasing over the past few months.

With the new place across the street (that seemingly went up in minutes, a good omen for the long-term I’m sure) and numerous other condos down Carlaw to Queen, it’s a buyers market all the way.

#154 kommykim on 05.30.15 at 7:17 pm

RE: #92 ILoveCharts on 05.30.15 at 1:45 am
If it is 2B (they are only paying the higher interest rate on a single month,) how is this ad possibly allowed?

It is pretty obvious that the answer so 2B, and that is why it is allowed.

#155 Freedom First on 05.30.15 at 7:37 pm

#151 Mister Obvious

Well said.

I think most people today can read, but few can comprehend what they are reading. It is the same as hearing, as most people can hear, but few people have learned how to listen. The same can also be said for talking, as most people have to say something, but few people have something to say. Fortunately, I live alone, work for myself, from home, and have no clients, co-workers, nor boss. Been operating this way for many years. Love it. Thank you very hard.

#156 SWL1976 on 05.30.15 at 7:52 pm

#150 Oot der Hoos – So remain unconvinced. It is certainally not up to me to convince you.

#153 Bottoms_Up – I did commissioning and start up for an LNG facility and was shocked by the amount of Methane that gets vented to atmosphere in the whole operation. Massive vessels being vented straight to atmosphere with zero regulation. For anyone who wants a real eye opener to pollution, work in heavy industry.

Methane is a big big problem. Especially the massive amounts being released by melting permafrost

#157 Phil on 05.30.15 at 7:52 pm

@ #139 Suede

I think Vegas is a great ground level proxy measurement of the US economy. I remember going there during the bottom of the GFC and it was dirt cheap and has slowly been getting more expensive every time I went back. Went last year in August to the Venetian and it was pumping. Looking at the prices now and I’ve been relegated back down to the Tropicana. Right back where I started.. haha

#158 Stupid drivers on 05.30.15 at 8:30 pm

You know what irritates me? The geezers and geezerettes in the okanagan go down the highway 60k in an 80k zone then when we come to the dual lane where you can actually pass them even going up a steep hill they floor it to 100 or 110 and you got to go 120 to get by them because as soon as the dual road ends back they go to 60k …. Ughhh not only are they screwed up in real estate they dont know how to drive…

#159 Smoking Man on 05.30.15 at 8:36 pm

Do you dogs remember back in Sept when oil was over 100 bucks a Barrel. I told you all…did anyone sell oil futures , Buy USDCAD.

Go to admit my crystal ballmenship is good.

Here was the post.

#37 Smoking Man on 09.29.14 at 7:34 pm
Fort McMurray, Sudi Arabia just got a new massive rival.

Russia just found in the artic, an oil field the size of golf of Mexico…

Should translate to Lower oil prices.. Will it be reflected at pumps? … That is the question..

#160 Andrew Woburn on 05.30.15 at 9:04 pm

Amid all the speculation about when the Fed will raise rates, maybe we should ask how they will do it. Silly question, right? They will just press a computer button and, bingo, the overnight interest rate doubles. Well, no, it’s not quite that easy.

The Fed cannot command interest rates to rise. Traditionally, they have controlled overnight interest rates by intervening in the market for federal reserve funds. These are risk free IOU’s from the Fed which banks use to settle accounts with each other as they come up over or under in settling the day’s interbank transactions. By controlling the supply, the Fed indirectly controls the interest rate. This rate, called the Federal Funds Rate (FFR) is what the MSM are always talking about.

The problem is that the FFR is now meaningless. The Fed used to manage about 10-20 billion in reserves in excess of what member institutions are required to carry. That is pocket change in New York and made it easy for the Federal Open Market operators to control the market. But the Fed paid for assets it bought under Quantitative Easing with about $2.5 trillion (yes,”T”) in excess reserves so the banks are awash with Fed funds and now the Fed has little ability to play market maker. Instead, the Fed is paying .25% interest on excess reserves (IOER) to set a floor under overnight interest rates. When the time comes to hike, the Fed will bump IOER by another .25% but will the market follow?

The general financial market also has overnight settlements to manage and there is a general (non-bank) overnight interest rate which has never been managed by the Fed. You would think if the economy was ready for higher rates, this commercial rate would already be creeping up. It isn’t. You can see this rate at

http://www.dtcc.com/charts/dtcc-gcf-repo-index.aspx

and its monthly average hasn’t cracked .25% all year. Repo simply means that the borrower pawns collateral for cash and then buys it back the next day for an extra amount representing loan interest.

While it would be stupid to bet against the Fed, if they raise rates and the market doesn’t follow, it is going to punch a hole in the market’s confidence that the Fed is really in charge and risks market turmoil. The Fed is experimenting with other forms of market intervention which may work but Alan Greenspan has already said liftoff is likely to be bumpy for a while. Maybe this is one reason the Fed seems to be constantly dragging its feet.

#161 Nagraj on 05.30.15 at 9:04 pm

oh fer cryin out loud!!

What’s this BS about “corvettes” (and “Harleys”)? Go hang yerselves.

I was drivin down Middlebrook Rd. [There’s never any traffic on Middlebrook Rd ceptin at night when you get deer, raccoons, possums, groundhogs, rabbits, sometimes a fox. I have had occasion during the day to break for a horse (twice) cattle (several times) pigs (twice) turtles (twice) cats (many times) but NEVER a stray dog.]

Well, like I told yas, I was drivin down Middlebrook Rd and WHOA! there’s this SUPERFANCY big red convertible. Who’s drivin it? This bag-o-bones old geezer with the old bag next to him. BONNIE&CLYDE on the lam from THE HAPPY VALLEY HOME FOR ASSISTED LIVING.
I don’t got nuthin against old people (like myself) but really! Snazzy convertibles is supposed to be driven by successful and handsome young men accompanied by gorgeous members of the opposite (or same) etc. NOT by the near-dead.

You don’t suppose the young folks is gettin the short end of the stick these days?

[Re the stupid “Harley”. My best friend is the same age as me and I told him, stop riding the motorcycle you’re too old and you’ll fall off. Sure nuff, got a call from the hospital. He fell off.]

#162 Squirrel meat on 05.30.15 at 9:08 pm

#160 Smoking Man on 05.30.15 at 8:36 pm
Do you dogs remember back in Sept when oil was over 100 bucks a Barrel. I told you all…did anyone sell oil futures , Buy USDCAD.

Go to admit my crystal ballmenship is good.

Here was the post.

#37 Smoking Man on 09.29.14 at 7:34 pm
Fort McMurray, Sudi Arabia just got a new massive rival.

Russia just found in the artic, an oil field the size of golf of Mexico…

Should translate to Lower oil prices.. Will it be reflected at pumps? … That is the question..
—————
Except your reason is wrong for why oil is went down. So that’s just a coin flip.

#163 Nora Lenderby on 05.30.15 at 9:08 pm

#116 The American on 05.30.15 at 11:52 am
…Canada’s forces, with three rowboats, a couple of old bi-planes, seven 2003 Chevy Tahoes, thirty-six sling shots, roughly one thousand rocks, and four thousand old Canadian pennies.

You forgot to mention that the pennies are in old tube socks. They make awesome coshes (saps to you Americans).

Plus there are Her Majesty’s Canadian Armed Forces’ fighting musicians. My friend just completed a grueling annual fitness test. If you don’t watch your step, she’ll be after you with her piccolo!

On a more serious note, NORAD is being mentioned in the media again. Russian overflights of the Arctic are getting annoying – either that, or some government is trying desperately to make everyone frightened of Vlad the Invader.

#164 Nagraj on 05.30.15 at 9:16 pm

Nagraj cont’d
I forgot to mention skunks, squirrels and chipmunks and the occasional porcupine. Once there was this stubborn turkey vulture, and once I got dive-bombed by some crane-like freak. (near the Grand River.) The Canada geese got their geese-crossing own sign.

Once there was this magnificent stag just standin’ by the side of the road. Catechetical Catholicism would call that AN INSTANCE OF ACCIDENTAL GRACE.
The aforementioned red convertible sighting qualifies as an instance of accidental gracelessness.

#165 Nora Lenderby on 05.30.15 at 9:17 pm

#136 Setting the Record Straight on 05.30.15 at 3:53 pm
Canada needs nuclear and biological weapons.
Small countries are effectively defenceless

Hey! No need to bomb Canada! Invade? C’mon in y’all! How ’bout a nice downtown condo? No money, no problem! We’ll give you terms!

#166 50% too high on 05.30.15 at 9:27 pm

Canada’s housing market is at least 50% overpriced. Absolutely no attractive valuations for investors. Seller’s market for sure. Prices driven by hormones and ultra low interest rates. Banks are sitting fat and happy. I hope they choke on all that debt they’ve peddled out one day soon.

#167 Dirt dog on 05.30.15 at 9:43 pm

#116 The American
Dude or Dudette. Love your posts don’t stop as for the sling shot, rowboat, comment your words ring so true.
Please keep up your opinions and comments. I appreciate it.
Hugs

#168 45north on 05.30.15 at 9:44 pm

bumper girl:

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

#169 No Canada, No on 05.30.15 at 9:51 pm

We need a discussion on climate change here.
Maybe that’s the reason behind home buyers insanity.

#170 Smoking Man on 05.30.15 at 10:17 pm

#163 Squirrel meat on 05.30.15 at 9:08 pm
#160 Smoking Man on 05.30.15 at 8:36 pm
Do you dogs remember back in Sept when oil was over 100 bucks a Barrel. I told you all…did anyone sell oil futures , Buy USDCAD.

Go to admit my crystal ballmenship is good.

Here was the post.

#37 Smoking Man on 09.29.14 at 7:34 pm
Fort McMurray, Sudi Arabia just got a new massive rival.

Russia just found in the artic, an oil field the size of golf of Mexico…

Should translate to Lower oil prices.. Will it be reflected at pumps? … That is the question..
—————
Except your reason is wrong for why oil is went down. So that’s just a coin flip.
…….

Not really , The late Steve Nash..Game Theory…

Israel, Saudi, Qutar, Britan, France, the Dutch, Canada, USA. A cooperative game. Let’s call em the incombants

Vs Russia, Syria , Iran and the bricks. Let’s call em the challangers.

Had the incombants attacked Syria , rember the gas attack fales flag thing. There would be no MH17 plane shoot down over Ukrane, wouldn’t have been nessasary. Qutar would get its pipe line to Europe , Russia would be set back, its power growing to quickly for the Lear jet crowd.

After the discovery in the Artic , well we know what happens next.

But it don’t matter…

I’m the best coin tosser world. Archives bitch.

#171 Steve French on 05.30.15 at 10:20 pm

#69 Smoking Man: I’m the drunken wierdo at the back of the bar.

—-

lol…

I hate to break it to you Smokey, but you’re also the drunken weirdo at the back of the Greater Fool blog…

“Heart of Gold’ put me in the middle of the road. Traveling there soon became a bore, so I headed for the ditch. A rougher ride but I saw more interesting people there.”

– Neil Young

…. truly, truly i sayeth to you, those are some golden words to live by Smokey.

When in doubt…. when things get a bit complacent, just turn your wheel … and head right for the ditch.

#172 Bottoms_Up on 05.30.15 at 11:04 pm

#152 SWL1976 on 05.30.15 at 6:38 pm
————————————————–
A carbon tax is not a scam (and in fact still allows freedom to choose to continue to pollute…’pay to pollute’).

Check out page 3, figure ‘c’. How can you reconcile the increase in global air concentrations of CO2, oh, say, since beginning roughly in the late 19th century? If volcanoes were the key contributor, why would accumulation only start then?

https://www.ipcc.ch/pdf/assessment-report/ar5/syr/AR5_SYR_FINAL_SPM.pdf

#173 Should you start to collect CPP at 60 on 05.30.15 at 11:25 pm

Should you start to collect CPP at 60? You’ve mentioned before that we should, can you tell us why again.

#174 Smoking Man on 05.30.15 at 11:33 pm

#172 Steve French on 05.30.15 at 10:20 pm
#69 Smoking Man: I’m the drunken wierdo at the back of the bar.

—-

lol…

I hate to break it to you Smokey, but you’re also the drunken weirdo at the back of the Greater Fool blog…

“Heart of Gold’ put me in the middle of the road. Traveling there soon became a bore, so I headed for the ditch. A rougher ride but I saw more interesting people there.”

– Neil Young

…. truly, truly i sayeth to you, those are some golden words to live by Smokey.

When in doubt…. when things get a bit complacent, just turn your wheel … and head right for the ditch…
..

No better place in the world than being the wierdo. I love it. Its a form of rebellion of some kind.
.
Can’t explain it.

#175 The American on 05.30.15 at 11:34 pm

At #137: Marco, yeah, uhhhhhhhh Great Britain…. Good luck with that. You’ve got the U.S. military, the most powerful and well-funded military BY FAR on the planet at your back door and at the expense of the American tax payer, and you pick Great Britain. No offense, but Great Britain would be annihilated simply by numbers alone. But hey, spoken like a real Canadian! I guess this is the part where you speak to the evil and tyrannies of the U.S. Military, yet they’ve never lifted a finger to touch Canada. The delusion is beyond hilarious.
At #137: Marco, yeah, uhhhhhhhh Great Britain…. Good luck with that. You’ve got the U.S. military, the most powerful and well-funded military BY FAR on the planet at your back door and at the expense of the American tax payer, and you pick Great Britain. No offense, but Great Britain would be annihilated simply by numbers alone. But hey, spoken like a real Canadian!

http://www.globalfirepower.com

#176 Hector's Vector on 05.30.15 at 11:52 pm

sorry put this in yestaday’s blog comments by accident…

“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?”

#177 Hector's Vector on 05.31.15 at 12:02 am

#81 Andrew Woburn on 05.30.15 at 12:29 am
#66 LL on 05.29.15 at 10:55 pm
Seriously? Nanaimo? — Garth

… imagine you have been offered the chance to move your family to Shanghai, but they will all have to eat noodles for breakfast. Every day.”

What’s your point…this is a vast improvement from cold cereal….even better if there would be a Japanese ramen joint about as well!

#178 Leo Trollstoy on 05.31.15 at 12:11 am

My friend was renting a 2/2 + den and was recently booted out because the landlord sold the 1000 sq ft place for $600,000.

Well my friend lucked out. He signed to rent a smaller shoebox for only $2500 a month. What a steal!

Toronto real estate is nutso

#179 Hector's Vector on 05.31.15 at 12:19 am

#160 Smoking Man on 05.30.15 at 8:36 pm

Russia just found in the artic, an oil field the size of golf of Mexico…”

The golf of Mexico???????? You really should have at least tried to get the bare minimum of the 3 R’s of educational programming…..

#180 Squirrel meat on 05.31.15 at 12:32 am

#171 Smoking Man on 05.30.15 at 10:17 pm
———————-
Much of life is certainly a coin toss. Punctuated equilibrium.

Massive interconnected geopolitics going on. So yeah game theory at play.

Steve Nash getting killed in a taxi with his wife after the journey of his amazing life – talk about a coin toss.

So this book…. will it ever launch!…coin toss?…. since you like reading your own postings on an anonymous blog… an odd passtime – put them in your book. The alien powers.

#181 Retired Boomer - WI on 05.31.15 at 12:55 am

#132 Setting The Record Straight

Feel Free to adopt the line
“second Tuesday of next week.”

Actually, yes, it is Wisconsin slang. Sort of like losing control on a slippery road, and you yell to your passenger, “quick, hold my beer.” That we got from somewhere…

Cheers

#182 Mark on 05.31.15 at 2:44 am

I’m baaaaaaaaaaack!!

Anyways, was there any doubt, after the recent GDP numbers, that the situation in Canada is going downhill fast? Interest rate hikes? Not a chance. Cuts, accompanied by rising risk premia is what we are going to see for the next few years, especially in light of the falling RE markets across Canada accelerating their decline.

#183 PM on 05.31.15 at 3:46 am

DON’T OVER LEVERAGE YOURSELF TO BUY A SINGLE, OVERPRICED, RISKY ASSET.

Except every time people have said it’s overpriced…..the price has risen. For 7 years.

I’m not saying I disagree but history is rewarding the other side.

#184 Turtle on 05.31.15 at 4:01 am

#159 Stupid drivers

People don’t like being passed by in life. But they don’t do much to prevent that.

You can try better and faster car. Ford Taurus (2013-2014) – my top pick for tall people (6’5″ +). Or you can stop for a piss and a snack more often… your pain will go away.

#185 juno on 05.31.15 at 5:08 am

Interesting stuff. You mentioned people are starting to lock in with their mortgages.

Were in our mid 50’s recently 4 of my parents friend has sold their place in this upswing. My parents are gearing to sell their place now. And downsize or rent.

They own a house and can’t maintain the place anymore, a simple thing like mowing the lawn is now a choir which may have to be outsourced to someone for 30 buck each two weeks.

Its sad to say but the old are getting older and it only take a TSN turning point moment for them to realize that things have to change

#186 Dominoes Lining Up on 05.31.15 at 7:32 am

As reality slowly dawns on boomers and others heading for retirement, a tidal wave of change will hit real estate prices as more and more realize they will have to sell to support themselves.

So far, “investors” are running from risk, fearing another crash, yet according to this survey telling themselves they can only retire comfortably if they get a 9.3% return on their holdings.

9.3% and all will be well. How’s that gonna work?

http://www.theglobeandmail.com/globe-investor/advisers-view/investors-deluding-themselves-on-returns-poll-says/article24639402/

So the big reality check countdown timer is officially winding down.

This will be another very big domino pushing down house prices, maybe the biggest.

It’s no surprise even the Harperites are promising more CPP now, well sort of.

This election, and especially the next one, will become more and more a game of who can offer the most guaranteed pension style benefits for the middle class.

Here is David Dodge, former BOC head, explaining why self-directed investing and active plans like the TFSA just won’t work for most people.

http://www.cbc.ca/radio/thehouse/interviews-david-dodge-pierre-poilievre-1.3093939?autoplay=true

Make no doubt about it, the worm is turning and this is where we are heading.

Ahh, TFSA, we hardly knew ye……

#187 Smoking Man on 05.31.15 at 8:58 am

http://www.financialpost.com/m/wp/news/blog.html?b=business.financialpost.com/news/economy/bank-of-canadas-july-meeting-just-got-a-lot-more-interesting-watch-bets-on-rate-cut-rise-after-dismal-gdp-data&pubdate=2015-05-31

Top Economic salad eating egg heads on a July rate cut.

Get ready for it..

#188 Nora Lenderby on 05.31.15 at 9:38 am

#187 Dominoes Lining Up on 05.31.15 at 7:32 am
As reality slowly dawns on boomers and others heading for retirement, a tidal wave of change will hit real estate prices as more and more realize they will have to sell to support themselves.

Make no doubt about it, the worm is turning and this is where we are heading.

Ahh, TFSA, we hardly knew ye……

So, if you were a voter, concerned about the souring economy, adverse demographic tide, worried about the struggling provincial medical systems etc. etc. who would you vote for in the Fall?

#189 Daisy Mae on 05.31.15 at 9:41 am

#159 Stupid Drivers: “Ughhh not only are they screwed up in real estate they dont know how to drive…”

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

In BC, new traffic laws will soon clamp down on cruisers in the passing lane — the idiots think it’s okay as long as they maintain the speed limit. When drivers are forced to illegally pass on the right, they still don’t get it. Can’t fix stupid….

#190 crowdedelevatorfartz on 05.31.15 at 9:46 am

@#176 The American
“the U.S. military, the most powerful and well-funded military BY FAR on the planet……”
+++++++++++++++++++++++++++++++++++

For now…..

http://www.google.ca/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=1&cad=rja&uact=8&ved=0CCEQFjAA&url=http%3A%2F%2Fen.wikipedia.org%2Fwiki%2FList_of_countries_by_military_expenditures&ei=xwxrVaX2LsbhoATm-4PQBg&usg=AFQjCNEe73V7P86dgRVTkEq4agR-QCbN8w&bvm=bv.94455598,d.cGU

But, the US has more allies, better technology(unless the Chinese steal it), more combat experience, better training, Air dominance(aircraft carriers), etc.etc.etc.

Is it financially sustainable in the long run?

Who knows.

Russia went bankrupt in the 80’s trying to catch up to US military innovations and expenditures.(remember Star Wars?).

Peace through Strength is a noble goal but it forces a huge burden on the American taxpayer over the long term.

And then there’s those damn Spratly Islands.
Nothing like a little jingoistic muscle flexing by China to stir the pot.

#191 itshere on 05.31.15 at 10:23 am

How the economy works?

https://youtu.be/PHe0bXAIuk0

#192 Oot der Hoos on 05.31.15 at 10:32 am

Here is global cooling ice age propaganda from 1972, Walter Cronkite speaking; audio clip:
https://youtu.be/FJZbg535uoU?t=11m37s

Maybe I am correct saying the central bankers and most lesser bankers are Liberal-socialists. I did not hear David Dodge speak yet though.

#193 SWL1976 on 05.31.15 at 10:35 am

#173 Bottoms_Up

A carbon tax is not a scam (and in fact still allows freedom to choose to continue to pollute…’pay to pollute’).

Check out page 3, figure ‘c’. How can you reconcile the increase in global air concentrations of CO2, oh, say, since beginning roughly in the late 19th century? If volcanoes were the key contributor, why would accumulation only start then?

——————

Thanks for the link

I understand our current levels of rising CO2 are a major problem and will continue to be for years. I just don’t see taxing it as a solution.

I think it’s safe to say governments have a dismal track record of taxing problems away.

The simple answer.

There is no simple solution.

#194 Daisy Mae on 05.31.15 at 10:43 am

#159 Stupid Drivers: “….they floor it to 100 or 110 and you got to go 120 to get by them because as soon as the dual road ends….”

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

Truckers around Three Mile Gap are notoriously dangerous for thwarting any attempts to legally pass them. They’ll deliberately swerve into your path. Seen it happen.

#195 MF on 05.31.15 at 11:00 am

#176 The American

This born and bred Torontonian is hoping it stays that way!

We are lucky to have you guys as our friends down south.

From what I have seen, any negative attitudes directed towards the US here orginates from people who have come from a part of the world where the US has had military or economic intervention in the past.

Or they are left leaning politically, and have forgotten that the freedom we enjoy was fought for in bloody conflict in which US involvement made victory possible.

Don’t worry, when push comes to shove, everyone will still run to the US for help in times of crisis. I for one and hoping the US recovery is real and sustained for good.

Keep up the good work on the board.

MF

#196 Dominoes Lining Up on 05.31.15 at 11:39 am

#189 Nora Lenderby

So, if you were a voter, concerned about the souring economy, adverse demographic tide, worried about the struggling provincial medical systems etc. etc. who would you vote for in the Fall?
————————————————————–

Good question, and the big one many of us are facing, presumably you as well.

If I were to restrict myself to financial issues, it would be anyone but Harper. Conservatives have continued to bungle our national finances and the solutions they offer, like a ‘voluntary’ CPP increase, have little substance. Liberals seem to have a pretty good platform (so far) on economic equality, but a leader who is yet to be proven. NDPers are a bit unclear to me yet on economic policies, but certainly have the smartest and best leader available.

So I guess I will be in the 70% or so of Canadians who can’t see voting conservative but may end up voting ABH (anyone but Harper) strategically.

Interestingly, we may well nationally be coming to a kind of ‘Alberta’ moment where we just say f#k ’em to the party in power.

Economically, I think we’ll be hearing more like Henry Mintzberg, speaking in this radio interview today, about his book that details the imbalances in how the economy has been distorted so badly since 1989 by “democratic capitalism” when we should have been building up “capitalist democracy”. (A big difference between the two in how a society should work)

http://www.cbc.ca/radio/thesundayedition/animal-rights-mintzberg-on-rebalancing-society-stiller-meara-dying-in-switzerland-alec-1.3091020/money-and-politics-part-1-henry-mintzberg-1.3091240

This sentiment clearly influences many and could provide the push for even an NDP government in Ottawa.

Strategic voting looks to be the answer this year for a big chunk of the 70%.

So far, anyway.

We’ll see how that works out.

#197 Setting the Record Straight on 05.31.15 at 11:44 am

@191
Russia went bankrupt in the 80’s trying to catch up to US military innovations and expenditures.(remember Star Wars?).

&&&&&&&
Their economy collapsed because there was no price discovery. The entire economic structure was irrational.

#198 Rainclouds on 05.31.15 at 11:44 am

#176 American

Dude, you are tiresome…….we get it, America good. Canada bad.

Maybe one of YOUR countrymen can explain it to you

https://www.youtube.com/watch?v=lrA4V6YF6SA

#199 tkid on 05.31.15 at 12:10 pm

So, if you were a voter, concerned about the souring economy, adverse demographic tide, worried about the struggling provincial medical systems etc. etc. who would you vote for in the Fall?

The NDP weenies, because everyone knows the money for free medical care, welfare, fixing roads, OAS, education, etc etc come from Unicorns and the only reason why the Conservatives haven’t given us (the voting public) more is because they are heartless meanies who like to watch people suffer for fun.

#200 George Orwell on 05.31.15 at 1:47 pm

American

Living in a glass house are you?

How about your Gov entry into the following places illegally?

Laos,Cambodia,Panama,Granada,Cuba,Iran,Libya,Syria,Iraq, …shall I go on?

Keep your American exeptionalism to yourself will ya?

No need to read anything more from you

#201 The American on 05.31.15 at 3:19 pm

#201 Little George Orwell, sorry there little fella… None of those lands are claimed as American or U.S. land, and none were entered into illegally. We’re talking about a nation, such as China, claiming waters and lands that belong to others as their own. Last time I checked, U.S. doesn’t claim any of the areas you mentioned as part of our country. Nice try though. Keep your ignorance to yourself, until you can learn reading comprehension. You know nothing… obviously.

#202 KeepingMyTFSA OutOfHomeInvestment on 05.31.15 at 8:49 pm

https://www.change.org/p/brad-duguid-restrict-foreign-investment-in-greater-toronto-area-s-residential-real-estate-market?utm_source=action_alert&utm_medium=email&utm_campaign=318961&alert_id=KAxaLNDjXJ_l%2FujAV%2B7Vv%2B27Mjqr7L75lMga%2F0r%2F%2BDRnzZhsgpc9QY%3D

Another petition.

#203 #8 The American on 06.01.15 at 11:47 am

Unless you have tried out both school systems (US vs CAN), you should not come to these ignorant conclusions when you compare the two. Talk with facts not with your ass…

#204 Matt in Van on 06.01.15 at 1:36 pm

Unless you have tried out both school systems (US vs CAN), you should not come to these ignorant conclusions when you compare the two. Talk with facts not with your ass…

——————————————————————–

Well I know 7 of the top 10 universities in the world are in the US. 15 out of the top 20 are in the US. I think this says enough. Stats and damn lies. Obviously the US has a better educational system overall. You cannot have an inferior lower education, skip the middle, and propel students into the world’s top universities. Universities in the US do have international students but by and large the vast majority of students are Americans. I know because I attended two of them in my younger days and I am Canadian. Americans are not dumb as we are taught to believe.

https://www.timeshighereducation.co.uk/world-university-rankings/2014-15/world-ranking

#205 TCContrarian on 06.01.15 at 5:22 pm

Finally ready to list in Langley, BC
Hoping for a bidding war in order to sell at insanely overpriced valuation. I think I’m getting ‘greedy’ – but ‘greed is good’ (and being stupid is ‘bad’).

I may just buy BitGold with all that moola…or just go on a vacation…or…

…just wait for the inevitable. My barber told be “I had ballz to do this” (ie. sell a ‘sure’ thing). I told him it’s not ballz, it’s the charts and respect for history (financial or otherwise)