OXI

GREEKS modified modified

First, angry Albertans punted Tories and installed Dippers in the legislature. Then delusional Vancouverites voted down a tax funding the future. Now the Greeks have embraced economic suicide instead of financial servitude.

Come senators, congressmen
Please heed the call
Don’t stand in the doorway
Don’t block up the hall

At least, as I scribble this out on a Sunday afternoon, that looks to be the Hellenic epiphany. Exit polls and early results were all but decisive, giving more than a 60% mandate to the No forces, led by socialist PM (and now temporary hero) Alexis Tsipras. The margin of defeat for the pro-euro forces is relatively vast – at late as Saturday night it was still being touted as too close to call. But a 60-40 split? That’s massive, baby.

For he that gets hurt
Will be he who has stalled

We’re now entering the unknown, in a big way. Greek banks are still closed. The stock market, too. People have been wounded in less than a week, with cash rationing leading to starving stores. By voting against a package of reforms (higher taxes, fewer benefits, more austerity) the country is opting to gamble it can get a better deal from the great powers of Europe. And, if not, how much worse can it be than having 50% of your young people out of work?

Europe may cave and offer emergency bailout loans to keep the lights on and prevent the Greeks from taking an even more radical turn (Hello, Mr. Putin?), or it might decide this small country is just too irritating to bother with. After all, five months of high-stakes talks with Tsipras & Co led only to a pouty exit from the bargaining table, and this surprise referendum, peppered as it was with massive demonstrations.

There’s a battle outside
And it is ragin’

So Greece could be kicked out of the EU, lose use of the euro, default on almost all of its debt obligations, and within a month be forced to print its own currency. That, experts surmise, could lead to a 30% or 40% drop in average net worth, and a far worse outcome for the people. But Tsipras says no. He claims it was never a vote on staying or leaving Europe, but one of dignity. Now, he adds, he has the mandate to go back to the bargaining table and kick serious butt.

For other countries, central bankers, monetary agencies and markets it means turmoil. Maybe compromise. Perhaps not. After all, the establishment forced countries like Ireland and Spain to put up with similar belt-tightening and collaring in order to stay in the club. Now the Greeks have refused to come to heel, and still expect a seat at the table. Such. Hubris.

It’ll soon shake your windows
And rattle your walls

So last week Greece became the first developed country ever to miss a debt payment to the august International Monetary Fund. This week its citizens told the IMF to piss off. Some will argue average voters did not understand the complex 68-word ballot question, nor comprehend the implications of a No decision. They’ll say people misinterpreted this as simply a way of bolstering their government’s bargaining power, instead of choosing proud over practical.

But that’s the democratic flaw. When you ask people something, giving them the power to make it so, you must live with the consequences, as illogical as they may at first appear.

Tomorrow the banks in Athens will edge closer to having empty vaults. Those investors who bet wrong will be punished. The leaders of wealthy, powerful nations will shake their heads in disbelief and dismay. Average Greeks will face a crisis, and smile.

For the times they are a-changin’.

251 comments ↓

#1 Betty Singh on 07.05.15 at 2:43 pm

What do you expect with people that think they are entitled to everything in the last 25 years.

This is the history of Greece that defaulted 5 times and never learn.

They should of not borrowed so much money in the first place and those in charge knew what they were doing. T

I think they may of got too much sun!

#2 Total investor.com on 07.05.15 at 2:45 pm

So Garth, when do you think we should buy GREK ?

#3 squirrel meat on 07.05.15 at 2:52 pm

The man.

#4 David McDonald on 07.05.15 at 2:53 pm

I am surprised by the no vote. I thought the silent majority who still had a job would vote for their own interests. Things must be worse than I thought.

The leaders of the Syriza government keep making inflammatory declarations guaranteed to make things worse and should be replaced. However on the main issue they are right. Greece needs debt restructuring and an end to austerity.

#5 Buffy the Vamp on 07.05.15 at 3:02 pm

Some excellent investing websites

Canadian Money Saver Magazine

Canadian Couch Potato

Canadian Money Forum

My Own Advisor

Mr Money Mustache

Garths’ Investment Posts

This quote has really changed my thinking

Most people, of course, simply don’t understand how they’re taxed or what to do to minimize the impact. They also don’t realize how the tax system is skewed to ensuring the rich stay that way.

RRSP basics

How to structure RSP with SAHM

TFSA basics</a

RESP</a

Taxation</a

Taxation of an RRSP part 1</a

More Taxation of an RRSP part 2</a

Taxes and Income Splitting</a

Apologies if the formatting went bad.

#6 Rebecca on 07.05.15 at 3:09 pm

“Then delusional Vancouverites voted down a tax funding the future.”

The choice:
– Give more money to Translink to fund a questionably planned transit expansion rife with big ticket items that Translink has proven inept at managing. Result: probable failure, less money in my pocket
– Don’t give Translink more money and let the system suffer. Result: worse transit service

I stand by my “no” vote; at least I know where it leads. The problem is Translink, and the solution isn’t to throw good money after bad without substantial reform. Let’s see if Greece’s creditors agree.

#7 Role on 07.05.15 at 3:10 pm

I nevar could neavr not have thinkednthat greese could have think better themself to find a long time solution for them to go different ways. Is like theyre money not worth much as they think! Much debt rising and inflationing ratonas of poor people. they have enough they say! down long time is debts and old debts and even older debts. Greek nevar can figure out how use bank formake debt payment, or is it goverment that make it?! No one ever will know cause the vote can’t never be found out till the last paper piecing is gone through the ringer!!

#8 Godth on 07.05.15 at 3:11 pm

Don’t worry, there will be no contagion – Greece is insignificant. The money junkies have it all under control.

If Greece leaves the Eurozone will it leave NATO too? The Greeks have been sold a lot (disproportionate amounts) of military hardware over the years. Putin would love a new Med. port of call I’m sure, Syria is a bit rough these days.

#9 nubbers on 07.05.15 at 3:12 pm

I have always wondered how a people who dominated the Mediterranean with their Triremes have managed to end up where they are now.

Perhaps an OXI vote will brutally force them to sort their problems out and let them find their soul again.

#10 David on 07.05.15 at 3:12 pm

If/when the drachma is reintroduced, Greece will become a travel bargain with a rapidly devaluing currency making everything super CHEAP. The Greeks are about to learn a life-changing lesson in the value of money.

#11 dog on 07.05.15 at 3:15 pm

Pitchforks are coming.

NDP Alberta a sign that the pendulum is moving back towards the center.
Reagan, Thatcher, trickledown, all to create a massive and fundamental shift in power.
The Trade in Services Agreement- nasty , nasty power grab.

40 years since wage growth has aligned to productivity growth, the pie is bigger but the majority have a smaller and smaller piece of it.
The young have no stake as they are sidelined.

Great article on why $15.00 is good for the economy and society:
http://www.politico.com/magazine/story/2014/06/the-pitchforks-are-coming-for-us-plutocrats-108014.html#.VZMCn_lVhBc

Good interview; illustrates Billionaires control the US system.
https://www.youtube.com/watch?v=b0G5MtSJsYQ

#12 Marco on 07.05.15 at 3:17 pm

Can someone tell me why inflation here, the CPI index is so low? When prices are jumping in shelter and food. Considering shelter makes up over 25% of the CPI index. Makes no sense.
Actually the CPI index with its percentiles really doesn’t make much sense to me.
When our dollar gets creamed with another rate chop, and an American rate hike, which I hope doesn’t happen, inflation is going to rise and interest rates will have to move up like in the early 80’s to fight inflation. Right?

Aaaaah, the 80’s when I was too young to know or care.

Cheers

#13 dosouth on 07.05.15 at 3:18 pm

A fool and their money are soon parted….

#14 Has anyone seen this? on 07.05.15 at 3:24 pm

http://ekloges.ypes.gr/current/e/public/index.html?lang=en#%7B%22cls%22:%22main%22,%22params%22:%7B%7D%7D

(OXI side killed it !! Puerto Rico, Italy, Spain, Portugal and others next – the end of the age of the bankers is near)

#15 Marco on 07.05.15 at 3:25 pm

Adding to my previous post:
Not to confuse – not wanting a rate chop in Canada but knowing the U.S will raise rates.

Cheers

#16 Shawn on 07.05.15 at 3:29 pm

The Vote

Well, technically the vote was to accept a deal that was no longer on the table and not likely the best deal to be had.

I expect some kind of deal will now emerge that is a little better than the deal that was voted on here.

Meanwhile, markets continue to be entertaining.

#17 ANON on 07.05.15 at 3:31 pm

Better start swimming.

“And don’t criticize
What you can’t understand”

#18 Gulf Breeze on 07.05.15 at 3:32 pm

Hooray Greece. This should have happened years ago! Gonna be painful, but not nearly as bad as dealing with German banks and IMF. They have just pulled an Iceland on the powers that be.

And regardless of the horror stories and fear mongering I will be voting NDP for the first time in the next election.

#19 Graembo on 07.05.15 at 3:32 pm

Garth, A mountain of capital has been created on the premise no country would renege on its’ debt.
But no one thought an American company would fail her bondholders (Chrysler in ’08). That ‘political’ Rule of Law is only increasing.
All just words on paper in the end.
Is the Greek vote today not similar in philosophy?
Yes, the little guy always suffers. Pitchforks!!

#20 John in MTL on 07.05.15 at 3:35 pm

Dear Mr Turner, Greece is already running a cyclically adjusted surplus (the only nation to do so along with Germany, for whom the EU was rigged for by design: https://www.imf.org/external/pubs/ft/fm/2015/01/pdf/fmc1.pdf page 5). That is, once you remove the impact of economic sluggishness, the Greek government collects way more than it spends. What do you really expect the population to do at this point?

This is not socialism, this is survivalism. 30% debt forgiveness, and maintaining a CA-surplus around the current ratio could make the situation sustainable. Anything less, and it will be bailouts after bailouts no matter how you slice it, in a country without its own currency.

Love your insight on personal finances, but whenever it gets political, you easily fall into dogmatic traps.

#21 Herodicus on 07.05.15 at 3:37 pm

“Greek” has a double meaning… I’ll leave it up to your sordid imagination as to what it could be.

Looks like the Greeks are about to get seriously Greeked.

#22 Marco on 07.05.15 at 3:39 pm

@Rebecca

Doubt the system will suffer. People using public transit will suffer, with higher fares.

Translink will = BC Ferries with their fare hikes.

Damned if you voted yes or no. Like Greece.

cheers.

#23 Danger Dan on 07.05.15 at 3:40 pm

first-time poster, long-time reader here. just want to say i love this blog :)

also want to add that it stuns me to watch an entire country willing to cut its own wrists out of stubborn pride. how can any sane person think this way out is dignified?

#24 David Lee on 07.05.15 at 3:43 pm

For a different take on Greece, here’a what John’s boy has to say:

http://www.project-syndicate.org/commentary/imf-greece-debt-restructuring-by-james-k-galbraith-2015-06

BTW, +1 for Rebecca at #6

#25 Godth on 07.05.15 at 3:44 pm

Vampire Hedge Funds Are Sucking Greece Dry
http://www.alternet.org/story/153795/vampire_hedge_funds_are_sucking_greece_dry

Read it and weep…not just for Greece though. Woops! Again!

#26 Butcher on 07.05.15 at 3:46 pm

The Grexit is on.
Pour me some Ouzo.
Make it a double.

#27 Victor V on 07.05.15 at 3:46 pm

http://www.theglobeandmail.com/news/world/polls-suggest-greece-evenly-split-on-referendum-as-voters-turn-out-in-droves/article25306916

The No vote was propelled by unemployed, the underemployed and the destitute in Greece. Various estimates said about 80 per cent of them voted No. Georges Argiriadis, a part-time taxi driver from Perama, the commercial port town about 15 km west of Athens, was solidly on the No side because he thinks German-inspired austerity demands are killing Greece.

#28 Apocalypse2015 on 07.05.15 at 3:51 pm

The economic spiral of the next week will not hit a temporary bottom until October. It will get worse and very political.

Catastrophe is now on our doorsteps. (Except in Saskatchewan and Alberta, where doorsteps are being scorched into ashes by biblical climate change fires.)

This only gets worse, folks.

And some brilliant idiots will very soon decide that war is the best way to plough through all the uncertainty.

Swell.

As Garth quotes:

There’s a battle outside
And it is ragin’

It’ll soon shake your windows
And rattle your walls

For the times they are a-changin’.

Or, as I like to say:

Gimme shelter!

#29 Victoria Real Estate Update on 07.05.15 at 3:58 pm

My haters (probably realtors) have been busy posting comments lately. They continue to accuse me of lying through stats. Of course these accusations are false.

None of them have been able to produce any evidence that I’ve lied through stats or about anything at all.

As is the case with all of my charts, the data used to put together this chart is verifiable. The source is Teranet’s index.

It would probably take a grade 9 student 5 minutes to find the data and verify the accuracy of the mathematical calculations used to put this chart together. Why don’t the realtors who constantly accuse me of lying through stats verify the accuracy of the information in my charts? Is it because they don’t have the necessary math skills?

Let’s take a look at the performance of Victoria’s housing market since August 2014.

This chart clearly shows that Victoria’s market has performed noticeably worse than the Canadian market in general in recent months.

Any claims that Victoria’s market is “on fire” or “relatively on fire” are simply unfounded.

. . . . . . . . . . . . . House Prices. . . . . . . . . . . . . .
. . Percent Above/Below August 2014 Price Level. .
. . . . . . . . .x = Canada, * = Victoria. . . . . . . . . .
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+2.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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+1.5%. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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+1.0%. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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+0.5%. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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….0%. . . *x . . . . . . . . . . . . . . . . . . . . . . . . . .
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-1.0%. . . . . . . . . . . . . . . . . . . . . . . . . . . .*. .
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-1.5%. . . . . . . . . . . . . . . . .*. . . . . . . . . . . . . .
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-2.0%. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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-2.5% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
———————————————————————————-
. . . . . . .Aug. . . . . . . . . . . .Jan. . . . . . . . .May. .
. . . . . . 2014. . . . . . . . . . . 2015. . . . . . . .2015. .

(source: Teranet’s index)

Interest rates have fallen in Canada since August 2014 and the Canadian market in general has reacted with higher prices (the expected reaction).

Victoria’s market has reacted less positively to the price-boosting stimulus of falling rates.

This fall, Canadian 5-year fixed mortgage rates will start moving higher (by 1% per year).

Prices fall as rates rise.

#30 rosie "moving forward" in the knowledge that, "this won't end well" on 07.05.15 at 3:59 pm

A very long tradition.

http://www.spectator.co.uk/the-week/ancient-and-modern/9571732/how-solon-would-have-solved-the-greek-crisis/

#31 Victoria Real Estate Update on 07.05.15 at 3:59 pm

Let’s take a look at the big picture.

This chart makes it clear that the performance of Victoria’s housing market since 2010 has been weak and disappointing when compared to the performance of housing markets across Canada in general.

. . . . . . . . . . . . House Prices. . . . . . . . . . . .
. . Percent Above/Below June 2010 Price Level. .
. . . . . . . . x = Canada, * = Victoria. . . . . . . .
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . .x. . .
+20% . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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+15%. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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+10% . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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+ 5%. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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….0%. . . x*. . . . . . . . . . . . . . . . . . . . . . . .
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. . . . . . . . . . . . .*. . . . . . . . . . . . . . . . . . . .
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– 5%. . . . . . . . . . . . . . . . . . . . . . . . . . *. . .
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-10%. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
—————————————————————————–
. . . . . . .Jun. . . .Sep. . . . . . . .Jan. . . .May. . .
. . . . . . 2010. . .2011. . . . . . . 2014. . .2015. . .

(source: Teranet’s index – most recent data)

In May 2015:

* Prices across Canada were 21% above June 2010’s price level.
* Prices in Victoria were 5% below June 2010’s peak price level.

From January 2014 to May 2015:

* Prices across Canada increased by 6.3%.
* Prices in Victoria increased by 5.0%

Recently a realtor posted another unsubstantiated comment claiming that “Prices are now almost back to their peak pricing in 2010…”

Fact: as of May 2015, Victoria’s market had gained back slightly less than half of the amount that it had fallen from mid 2010 to early 2014.

#32 saskatoon on 07.05.15 at 4:04 pm

#11 dog

beside the moral implications for using government proxy violence to force higher wages…

the article here is plain misleading:

the higher forced wages become, the less demand there will exist for low-skilled jobs–creating more poverty, and potential “revolutionaries”.

basic supply and demand.
econ. 101.

just have a gander at puerto rico.

also, forced higher wages feed corporate monopolies–destroying local/smaller competition.

this is why, i imagine, mcdonald’s ceo recently advocated higher minimum wage.

corporations are socialist entities.

#33 AdiosEuropa on 07.05.15 at 4:05 pm

Comes the winter, you will hear this name a lot, Pablo Iglesias, he will put the final nail on the coffin. Bye Bye Euro, Adios Europa!!!

#34 Victor V on 07.05.15 at 4:06 pm

#23

Battle of Thermopylae.

#35 zedgt87 on 07.05.15 at 4:07 pm

Good for the greeks. Their debt load is UNSUSTAINABLE, along with many other nations as outlined in a report by the IMF. They should say no to any deal that does not involve debt haircuts. The debt should not have been issued in the first place, now they can’t pay. it really is that simple. This will give them a chance of recovery in the long run.

Finally, a step towards addressing the core issues instead of can kicking.

In the meantime, prepare for asset volatility.

#36 JO on 07.05.15 at 4:09 pm

the Greeks made the best of two bad choices
They need to leave Europe ASAP and do some serious governance changes. No government should be allowed to borrow. All govt funding should come from a combination of HST sales taxes, a modest income tax on all income over 50 k for example, and a small amount of money printing maybe no more than 5% only during recessions
The massive govt debts and the corruption that led to them WILL the the main story of our world over the next 5 years
The bondholders of Spain, Italy, Portugal etc will sell their bonds now and then the contagion will spread to the core of Europe with France and finally Germany collapsing
After, sometime in mid 2017 onward it will be Japan and then US and Canada going into 2020
The IMF and other elites are preparing for a system Reset which is code word for a collapse and devaluation of all currencies
For the next 2 yrs I am holding above average levels of US cash, and buying US blue chips on dips. The odds are good that the MASSIVE flood of capital that will now leave the Euro bond and bank deposits will mostly flow into the U.S. Bonds and stocks even if the U.S. Stocks drop 10-15% once or twice along the way. Only a closing below 1570-1600 on the sp500 would suggest the huge collapse is on its way and no U.S. stock bubble will happen first
This will likely create a huge bubble in U.S. Stocks and the U.S. Dollar which will set the stage for massive debt defaults in U.S. Denominated bonds of which 9 trillion is held outside the U.S.
The underlying core economies will steadily buckle into an incredible collapse as the U.S. Dollar stalls the U.S. Economy and contributes to the collapse in the rest of the world
Hence they are likely to shut down the system around 2018-2020 and print a huge amount of the SDR or some other currency to help devalue all currencies and reignite inflation
This is no conspiracy theory. It is our turn for a global sovereign debt / depression and the general pattern of capital flows and asset prices is similar each time
And yes Armstrongs legendary ECM model is projecting this
But if one studies the lead up to 1929 and the aftermath the general path was the same
Europe was in major economic troubles in the 20 s and capital rushed into the U.S. Into 1929, then bonds and stocks collapsed together from 1930-1932 and the U.S. And England both devalued their currencies massively

#37 Grammy Slaw on 07.05.15 at 4:10 pm

“And, if not, how much worse can it be than having 50% of your young people out of work?”

Having 100% of your young people out of work. Greece is a vision of Canada’s future…with an elite public service sucking up the goodies and the dumb clucks that let them seize power eating scraps.

#38 Waterloo Resident on 07.05.15 at 4:13 pm

For anyone who is planning on taking a ‘CHEAP’ holiday in Greece this summer;

– Bring your own food and water (resorts are quickly running out of food, and water supplies will soon be shut off due to lack of electricity).

– Bring your own transportation (no gasoline means no taxi, no buses, nothing will be moving).

– If you fly into Greece, make plans to fly out from a neighboring country as the airports inside Greece will be without fuel within one week.

This is quickly going to turn into MASS STARVATION of millions as food supplies quickly vanish. I think Canada along with other developing countries are going to have to set up tens of thousands of ‘soup kitchens’ serving sandwiches and other basic food needs to the people of Greece, for the next 3 to 5 years, just to ensure that the people of Greece don’t die off by the tens of thousands. It really is going to get that bad down there, and quickly too.

As for the stock markets when they open on Monday; well, China is throwing everything they can at the markets to prevent a full-blown meltdown, but just like Fukushima, its probably too little, too late.

On Monday I would not be surprised to see the Dow and S&P drop by about 4% to 6% minimum.

#39 the Jaguar on 07.05.15 at 4:17 pm

If more countries would tell the IMF to piss off the world would be in better shape. Read ‘Confessions of an Economic Hitman’ if you want to know why.
Putin’s summer reading must be ‘The Art of War’. Europe, pawns of the USA are about to reap what they have sown. All their stupid sanctions have caused the BRIC to close ranks and now Greece is calling their bluff. Behold how the mighty have fallen.

#40 asp on 07.05.15 at 4:17 pm

Ireland and Spain did very little austerity and reforms compared to Greece. Don’t compare apples and oranges.

#41 Retired Boomer - WI on 07.05.15 at 4:19 pm

You can have dignity in a paid for place.

You can have dignity, and pay a mortgage.

You can have dignity in a rental unit.

Greece has made its choice. It has decided NOT to pay its mortgage, or rent.

My vote: Let them have dignity in the cardboard condo they have chosen to reside in along the streets of their country.

No Problem.

The U.S.A. must understand we too, could end up the same way should we vote not to pay our borrowed obligations. I would vote to stop adding to the debt, and reduce spending to that end, and raise taxes to repay debt!! EVVEN if that means cutting services to seniors.

Heretical Bastard.

#42 Edward on 07.05.15 at 4:33 pm

“One thing is certain. Voting No offers Greeks some prospects for better solutions, whereas voting Yes guarantees penury.”

http://www.cnbc.com/id/102806202

#43 Rainclouds on 07.05.15 at 4:42 pm

Vancouver Plebicite

Voted NO and would do so again

-Province created Translink through provincial legislation(unaccountable, unelected and purposely obtuse)
-Wasted MILLIONS (220) on Compass(still a long way from working, if it ever does
-17c a liter of fuel is already a Transit tax BUUUT goes to general revenue (we all know how that WORKS)

Yea we are stupid out here, but not THAT dense

#44 Black sheep on 07.05.15 at 4:42 pm

Victoria’s market has reacted less positively to the price-boosting stimulus of falling rates.

Please stop. Your charts are laughable. You data is cherry picked. People take you as seriously as Smoking Man, your posts are just skipped. Stop.

#45 Md on 07.05.15 at 4:45 pm

Hey everyone…check out my cool chart with percentages and dots on it!

…………..15%

…………….55%

…………….5%

…………… No one cares

#46 james on 07.05.15 at 4:50 pm

#20 John in MTL

“Love your insight on personal finances, but whenever it gets political, you easily fall into dogmatic traps.”

I agree that Garth brings great value to the financial side of things. But it seems in issues like these politics his compass and mine don’t agree on where true north lies.

It’s pretty simple, Garth. The younger, poorer generations have had enough and are taking change into their own hands, step by step, sometimes haltingly, but very clearly.

What? Were the baby boomers expecting a formal announcement and gradual phase in? Is that ever how major social change has happened?

The trickle-down ideology has been one big lie. Anyone under 35 knows that especially well. And now, we will be controlling elections everywhere for years to come. Will we make mistakes? Sure. But not likely as big as the trickle down ideological mistakes of the last thirty years.

That’s why the NDP won Alberta and will soon win Canada.

That’s why Bernie Sanders has seen explosive poll growth in the U.S. By telling the truth.

http://www.alternet.org/real-reasons-bernie-sanders-transforming-election-heres-why-he-galvanizes-left

http://www.slate.com/blogs/the_slatest/2015/07/04/bernie_sanders_pulls_closer_to_hillary_in_polls_spends_long_weekend_in_iowa.html

Those who are not paying attention to what is happening will simply get run over by it.

That’s the way history always unfolds.

#47 Nagraj on 07.05.15 at 4:53 pm

There should never have been any doubt that OXI would win decisively. And there should be be no doubt now that Mulcair will be the next Canadian PM. Just as there should be no doubt that Podemos will take Spain, and that Italy’s in for serious political upheaval as well.

Persistent high levels of unemployment, especially youth unemployment, bring down existing gov’ts, for starters.

The “financial carpet bombing” of Greece speaks to the hubris (stupidity) of the “Troika”.

#48 Kebo on 07.05.15 at 4:54 pm

Actually Black Sheep, the Victoria real estate update is using Teranet data, which is about as objective as it gets. I’m certain that the realtors are the ones using cherry picked data. Prices in Victoria are still lower than in 2010.

#49 Oxi Moron on 07.05.15 at 4:59 pm

Garth,

I would have gone with Rage Against the Machine over Dylan…..”Killing in the name of” lyrics might have fit into your column nicely…especially the last verse

BTW you state, this “could lead to a 30% or 40% drop in average net worth”

Isn’t this what will happen in Canada when real estate plunges along with the loonie? Maybe there should be a referendum to let the people vote to maintain high housing prices…market be damned!

#50 waiting on the westcoast on 07.05.15 at 5:04 pm

Chinese brokerages are putting together a 120B fund to stem the stock market slide. One trader says that will last about an hour…. Bloomberg has an article on it.

Woke up extra early in HK to learn that the Greeks are givin’ it to the man… Well – that tantrum is going to end poorly for them. It will be interesting to see if Merkel and Hollande are willing to go back to the table (for obvious political reasons) or use Greece as an example to other PIIGS that you either play ball or move out.

Personally, I think that Greece should be forced out. It will strengthen the Euro short-term and remind everyone that this is a club you want to be a part of because of the benefits.

Greece will suffer for the next 5-15 years. I think they should let Greece reapply some time in the future after they get their house in order.

They can blame austerity all they want. Germany went through some pretty hard times during the reunification phase and it made them stronger. The Greeks think they will avoid austerity by exiting… They won’t. A massive currency hit will make everything VASTLY more expensive… You see, austerity with a different name.

#51 Cup Caicos on 07.05.15 at 5:07 pm

Shouldn’t Canada jump in and annex Greece…through a referendum of course…think of it as alternative to that funky Turks and Caicos as the 11th province plan that was 86’d a few years back…also trilingualism could be introduced….think of all the traffic signs in En-Fr-Greek….when pulled over, one could say, “sorry officer but it was all Greek to me!” badabing

#52 pinstripe on 07.05.15 at 5:07 pm

the greeks made the right choice. democracy vs dictatorship. the vote today provides some hope for democracy.

The global economy is all based on the new math with dictators setting the laws. my way or the highway. the markets are rigged and manipulated to support the dictators laws.

We in alberta experienced the impact of the global economy and the power of the dictators. the resources in alberta were raped by the big corps. no responsibility. no accountability. Fear mongering was the prime business practice. Most Albertans witnessed the magnitude of the corruption and decided that enough was ENOUGH.

The worst performance by Rachel will be many times better than what the best of what the PCs wanted to implement. Alberta went through the biggest boom in the history of the province and ended being in debt. Where did all that BOOM money go? No one knows but yet the cookie jar is empty.

at the coffee shop the buzz is focused on the fed election and there is a reason why the fed PC MPs are jumping ship. enough is ENOUGH.

#53 earthboundmisfit on 07.05.15 at 5:11 pm

Greece: “We voted for you to give us more money”. Germany: “Sorry,nein”
Greece: “WHY DO YOU HATE DEMOCRACY?”

#54 Freedom First on 07.05.15 at 5:14 pm

I think the average Greek is angry. However, the average human being is ruled by emotions, and, therefore, unable to set aside their emotions and engage the skill of critical thinking. We all have the ability to use our critical thinking, but as you can see, when events like the GFC happen, you can see that what I am saying is true on a world wide basis. This is why the rich are the minority. No exception.

#55 Mukadi on 07.05.15 at 5:17 pm

They borrowed $150billion to purchase German and French weapons – they can eat their weapons now. The Greeks are not to be blamed, their corrupt governments are the ones who know why a tiny country can borrow and spend $150billion (7% GDP) on military hardware!!

“Some estimates put at least half of the total Greek debt pile – more than $150 billion – down to military spending.”

http://m.strategic-culture.org/news/2015/07/02/greek-crisis-awaits-other-nato-partners.html

#56 Victoria Real Estate Update on 07.05.15 at 5:19 pm

#44 Black sheep

“Your data is cherry picked.”

Please explain exactly how you think my data is cherry picked.

The performance of Victoria’s market compared to the rest of Canada has continued to be disappointing.

You are obviously disappointed and angry which means that the weak performance of Victoria’s market has probably affected your bottom line in some way.

The only choice you have is to accept the facts and adjust your expectations for the future. Canadian fixed mortgage rates will begin moving higher this fall.

Prices fall as rates rise.

#57 rampant inflation on 07.05.15 at 5:19 pm

it should soon become obvious how important holding PHYSICAL GOLD AND SILVER will be in the near future, along with some chickens for protein.

Chickens, I get. But you can’t eat rocks. — Garth

#58 OXI in GREECE !! on 07.05.15 at 5:29 pm

Greece has made its choice. It has decided NOT to pay its mortgage, or rent.

My vote: Let them have dignity in the cardboard condo they have chosen to reside in along the streets of their country.

No Problem.

The U.S.A. must understand we too, could end up the same way should we vote not to pay our borrowed obligations. I would vote to stop adding to the debt, and reduce spending to that end, and raise taxes to repay debt!! EVVEN if that means cutting services to seniors.

Heretical Bastard.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Your completely wrong as most people are. All these banks printed phoney money out of thin air at interest and gave the money to the Greeks or other countries then turned around and said “we own you”. This BS form of banking and govt has been going on so long in the world people actually believe its real and authentic.

Everyone must tell everyone else to piss off and a reset needs to happen.

#59 saskatoon on 07.05.15 at 5:32 pm

#52 pinstripe

dude…everything you say is propaganda!

it is sad.

“new math”–>what does this even mean? there is a “new math”? does it use numbers?

“dictators setting the laws”–>dictators? where? who? do you KNOW what a dictator is?

“my way or the highway”–>what “dictator” has said this recently?

“the markets are rigged and manipulated to support the dictators laws”–>wtf? hyperbole much?

“the resources in alberta were raped by the big corps. no responsibility. no accountability”–>corporations are created by government,under governmental laws created by elected officials. no accountability? again, hyperbole much? isn’t THIS your “hope for democracy”?

“Most Albertans witnessed the magnitude of the corruption”–>even if you are correct, the corruption has extended itself from government.

your solution?

MORE government!

another mentally flummoxed commie.

#60 batt519 on 07.05.15 at 5:37 pm

The funniest thing I’ve read in a long time: corporations are socialist…

Buy $ilver.

#61 Washed Up Lawyer on 07.05.15 at 5:42 pm

So yesterday PM Harper gave his annual Stampede speech at Heritage Park in Calgary to the blue rinse crowd. Like Jim Prentice during the recent Alberta election, every time he opens his mouth, he creates new NDP supporters.

On October 20 we will all have to create a new individual Weltanschauung.

Good for the Greeks. A bloodless revolution. So far.

#62 Why worry? on 07.05.15 at 5:46 pm

Come on Garth, take a deep breath… Greek economy is only 2% of the EU economy, smaller than than Ontario. Not to mention that the market has priced in Grexit long time ago, eh?

#63 Nora Lenderby on 07.05.15 at 5:47 pm

IMO, it’s about what levels of inequality are acceptable or possible in a democracy. Very tricky situation. Also about how politicians and bankers should be very careful what they do.

#64 Van real on 07.05.15 at 5:47 pm

victoria real estate update

Please start your own blog. You are so annoying. The few people who care about Victoria can find you there. Your stats might be true but few people give a hoot about Victoria real estate

#65 Property owners always win in Canada on 07.05.15 at 5:48 pm

Prediction…….

Us ..rates 0.25 by year ens
Canadian rates 0.25 by ears end
CDN at .67 US
Real estate in canada 15%higher 12 months form now!!!!
Enjoy rent increases my dear diversified folks folks

#66 Property owners always win in Canada on 07.05.15 at 5:49 pm

Correction to previous…..

Us ..rates 0.25 by year end
Canadian rates 0.25 by years end

#67 NoName on 07.05.15 at 5:50 pm

#198 shawn

Most rich people did not get that way by turning up their noses at bargains. (Some rich people do turn up their noses, mostly these are people that married or otherwise came into money that they did not personally work hard to accumulate. Not that marriage is easy.)

That’s interesting! Bargains…

#68 Hicksville Alberta on 07.05.15 at 5:52 pm

Ironic that you would use the powerful words of Bob Dylan in your article yet be dismayed by the possible consequences on money by the outcome of the vote.

What happened probably had to happen now and hopefully the Greek follow through will be to renege on all Debt to the EU as well as the IMF as a good part of that debt is probably very odious ( as in stinks ) and shouldn’t be there in the first place and writing it off for the most part could easily be justified.

What happened in Alberta was more than due and hopefully it will happen in the Federal election as well. Our current ” Status Quo ” is not for the people in aggregate but for the embedded special interests the prevail everywhere and needs a good clean out and as much as i fear the NDP in some respects, i fear the current Conservative and Liberal parties much more.

The current Federal Conservatives already appear to be defeating themselves with the loss of so many cabinet members and other elected members already declining to run again which means to me that even they want out from what is coming down the tracks.

I’ve never voted NDP but did vote CCF under Tommy Douglas back in my younger years. This time i will and as well give them a financial donation to help with their efforts.

#69 Sebee on 07.05.15 at 5:58 pm

Is there a party on Danforth tonight?

I’m up for any reason to hit the Danforth!

#70 Failed economies on 07.05.15 at 5:59 pm

Any economy that in 2015 results in increased wealth of the 1%, while the wealth of 99% is decreasing is a failed economy, whether you call it Socialism or Capitalism, I don’ care.

You can quote me on this.

It also gives you a clue why this “irrational” pattern is emerging, like a tide “out of nowhere”, all over the place.

#71 Scumop on 07.05.15 at 6:01 pm

#53 earthboundmisfit

Score! for accuracy, conciseness, and my favorite: sarcasm, all in one post.

So on the rule ‘buy low, sell high’, is Greece a bargain yet?

#72 Bill Grable on 07.05.15 at 6:02 pm

Here in Rome – the locals are watching Greece closely. Things are tenuous here. Unemployment is rising. Yes there are tourists all melting in the 36 degree sun – and talking to shop owners, cab drivers and students, even Caribineri – everyone is saying things are getting ugly here. Italy is on edge as is Spain and even France. Paris was not packed like it was a few years ago, when we were there.
This is the thin edge of the wedge.

It is so hot here that people are just freaking out. Stores are selling bottled water, like the President of Greece makes fantasy filled promises. I wouldn’t invest 10 cents in Greece or Italy or, God forbid, Spain.
The plane from Paris ( never fly Easy Jet) – was not full.
The world is changing, quickly.

#73 pinstripe on 07.05.15 at 6:08 pm

#59 saskatoon

your solution?

MORE government

———————————————————-

harpo is preaching “tough on crime”

how about walking the talk and throwing some of the white collar crooks in jail. indicators to date show that anyone supporting the dictator gets scott free in short order. for example: del maestro, the manipulation of expenses in the senate, all politicians are LIARS, all the major ports are controlled by the crooks, MPs are worse than the senate in regard to responsibility and accountability. laws without enforcement are not laws thus creating the wild west mentality. government policies forcing joe lunchbucket and all levels of government loading up on massive debt.

enough is ENOUGH.

#74 Calgary Retiree on 07.05.15 at 6:13 pm

The Greeks have no one but to blame but themselves for the situation they find themselves in. Massive government spending, rich social entitlement programs, and an unwillingness to either pay or collect taxes.

Unfortunately, it is a lot easier to blame others and the Greeks have decided that the international banks and Germany are at fault.

The Greek economy is based on agriculture and tourism with no manufacturing sector or natural resources to speak of.

Comparing politics in Greece to Alberta is off the wall. The people of Alberta punted the Cons for having led the Province into unsustainable debt and failing to generate revenue (collect taxes) where due.

For that same reason the Federal Cons will be decimated in October.

#75 Linda on 07.05.15 at 6:13 pm

Seems like the current leader of Greece has delusions of grandeur. I don’t see the Eurozone bowing down to what is essentially blackmail – ‘Give us the deal we want or we cross over to Russia’. Russia has its hands full as it is. I’m sure they’d love to have Greece as part of their empire – it is one heck of a lot closer than Cuba for those sunny vacations – plus ports on the sea that don’t freeze, ditto. But Russia isn’t going to fund the Greek lifestyle & if the Greeks think they have austerity under the Eurozone, they’ll soon learn they didn’t know what austerity meant if they end up under Russian control.

As for the Greeks starving, this is a country where food can be grown year round. The work may need to be done by hand – no gas or electricity means truly hard labour ahead – but food there will be. Leaving the Eurozone does not mean all farm animals & food production exit Greece too. Imports now – any imported food or other goods will be an issue. And they will definitely need to get a faster system than barter set up because imported goods won’t be coming without cold, hard cash in hand before delivery. But country defaults have happened before, so after the painful adjustment period life will go on.

#76 Estrella on 07.05.15 at 6:16 pm

The question posed to the Greeks was yes or no to more austerity. What idiot would say yes to something like that. I am surprised that no one has questioned the vilidity of the Democratic vote yet, since 8 to 10 %of the Greek GDP goes to corruption. I say something was rigged. Also the question should have been yes or no to the euro.

So come Monday, no money in the bank for pensioners. Children will go hungry. But at least the population can find comfort in their pride. May God help them.

#77 Mike T. on 07.05.15 at 6:17 pm

I think the next country to watch is France

this is Reuters

“French far-right leader Marine Le Pen welcomed the early results of the Greek referendum on terms for a bailout from Europe as initial tallies showed the ‘No’ camp leading with results still being counted.”

Le Pen = France’s Ron Paul = controlled opposition = wise old cat that saw all this mess coming

40C in Spain this week!
Yowza!

#78 Squirrel meat on 07.05.15 at 6:18 pm

#61 Washed Up Lawyer on 07.05.15 at 5:42 pm
So yesterday PM Harper gave his annual Stampede speech at Heritage Park in Calgary to the blue rinse crowd. Like Jim Prentice during the recent Alberta election, every time he opens his mouth, he creates new NDP
————
Even worse. He’s singing again! Bloody hell is he horrible.

#79 TurnerNation on 07.05.15 at 6:23 pm

Ugly open on Futures tonight.

#80 98 years on 07.05.15 at 6:24 pm

It took less than hundred years to forget all the lessons of 1917.

#81 Freedom First on 07.05.15 at 6:25 pm

#64 Van real

I like her updates, as so said by some of the other dawgs.

#82 Retired Boomer - WI on 07.05.15 at 6:31 pm

#58 OXI IN GREECE

I believe the “NO” vote is a vote for “Tell them to piss off” and, for my drachma they now can feel free to leave the EU, with their new currency (to be determined).

I own no Greek Debt, have little love for Ouzo, Olives, or Democracy (as practiced here in the US presently).

I do believe in paying your bills, including the dam foreign entanglements, and debt our sovereign government has incurred.

I also believe in progressive income taxes, local property taxes, import taxes, sin taxes, carpet taxes, and probably some I failed to mention here. -any questions?-

#83 John Zimmerman on 07.05.15 at 6:46 pm

So the message here is get into debt and don’t pay it back and let the suckers get robbed.

I guess people who save and are responsible should give Canadians and others free houses, clearing their mortgages.

Oh, wait, we already do that to a smaller extent, socialism, over tax, over spend, over borrow!

Remember the expression, cheaters never win. I hope that Greece will pay 1000 times what they don’t pay back if that happens and they lawfully singed up for.

Nobody forced them to join the EU, Euro and borrow money from others. They are not a first world country and do not deserve to be in the EU and have the Euro.

Let them have their drachma or some other poor currency to reflect their true value as a country. It should be 2 Euros for 1 Greek Drachma at the very least.

Bond vigilantes already are way ahead pricing in 10% to 32% Greek bond yields in the current market place.

#84 Porsche on 07.05.15 at 6:50 pm

Futures are down 200+ points

NBG will crash to under .20 cents tomorrow

#85 rainclouds on 07.05.15 at 6:50 pm

#64 van real
victoria real estate update

“Please start your own blog. You are so annoying. The few people who care about Victoria can find you there. Your stats might be true but few people give a hoot about Victoria real estate”

I dunno , kind of enjoy seeing house sales professionals get bitch slapped. ……..

#86 Investorz on 07.05.15 at 6:50 pm

If family members bully you into buying a house, tell them you that you make offers but keep getting outbid and that you need their help. That should quiet them.

Do this until October. There’s a chance rates go up at that point and you get some more motivated buyers.

#87 John Zimmerman on 07.05.15 at 6:55 pm

Greeks should have to give 2.5 Drachmas or new Greek currency for 1 Euro. This is their real value not what I pointed in my post above.

#88 gladiator on 07.05.15 at 6:56 pm

Good for them, I say!
Either go through a swift crisis and start from a clean slate, or bleed slowly and for a loooong time in interest payments to those who created money out of thin air and lent them to the Greeks at interest.
The Greeks gave us democracy and now they will lead us in escaping from the shackles of debt to a clique of parasites.
Be right back. The doorbell is ringing…

#89 Obvious Truth on 07.05.15 at 6:56 pm

Who’s going to be walking tall at the next meeting in Brussels ?

It’s not the money the eu (tarnished) brass cares about.

They were Outmanoeuvred and have to eat crow.

Let’s face it. What’s to talk about unless you default. Troika bluff was called.

10 billion euros from China and Russia would seal the deal. Everyone knows it.

Markets know it. Next we will talk about the rains in Spain.

Without an opinion on who is right. This is truly historic.

Talk about turnabout bring fair play.

Way to go Greeks.

#90 OXI in GREECE !! on 07.05.15 at 7:02 pm

I do believe in paying your bills, including the dam foreign entanglements, and debt our sovereign government has incurred.

<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<

The debt is phoney. That's my point. All debt is phoney….its just made up out of thin air and called a loan because a bunch of old men in suits who want to steal from everyone and exert power…..call it a loan.

#91 No Canada, No on 07.05.15 at 7:09 pm

I’m kinda very surprised that Garth, usually so reasoned, is discussing these ridiculous, meaningless, overblown, fear-selling, retarded news about fifth season of TV Drahma blockbuster “Greece Exists”©

What a joke it is.

And everybody listening these retarded news with opened mouth. OMG, Greece! GREECE! We all going to loose everything here, in US and Canada because of Greece. This is just ridiculous.

Please, please don’t allow these retarded Greece stuff influence good advice and direction this blog provides. Please ignore this ridiculous chorus of mainstream financial “news”.

#92 Smoking Man on 07.05.15 at 7:11 pm

Tonight we are drinking Ozo.and cranking this.
Had dinner at Zets. Sovlaki

https://youtu.be/e_WEjAnslGc

Takes the Greeks to flip the bird to the machine.

Next time Scotland…

#93 cheap daycare on 07.05.15 at 7:13 pm

I will vote for whoever gives me cheap Daycare, this is costing me per month more than a mortgage in Vancouver. I don’t really know how people can claim they save 10.000$+ with kids and combine income of under 100.000$. Food is 10-15% more expensive than last year, gas is 1.35 when barrel is under 60$ compared to 1.50 last year when barrel was 110. I think we are taxed too much direct or indirect.
Housing market is not tanking in YVR, maybe is hitting the plateau level, but no hope of sanity.
Greeks just choose 10 years of recession, compared to 15 for the other option. Banks have to be kept accounted when they overdose the patient and Greece did just that.
Gloom and doom? Nope, just buy made in Canada and will be fine! Recessions are good for cleaning excess, will suffer a bit and came back stronger. Be happy you live in north America!

#94 VICTORIA TEA PARTY on 07.05.15 at 7:14 pm

HISTORY’S BEING MADE ON THE FLY HERE…

…as the major domos in charge of the banks, and other financial parlours of downtown Europe, are genuinely taken aback as the Greeks vote to essentially strike out on their own.

The alternative for the Greeks was more “painful”, in their lexicons, austerity imposed mainly by Germany, it being the apparent money-bags country of the otherwise financially-besotted EU experiment.

In the end Greece will do what it will do. So put that behind us.

I’m more interested in the upcoming tomorrows, elsewhere: will there be similar peasant revolts in other Euro economic basket cases such as Italy, Spain, Portugal, Ireland (the Republic)?

Meanwhile it’ll take two days for the wiseacres that run the EU train wreck to stammer out their responses, they say today. So far all they’ve been able to cobble together is the following: “We respect the outcome…(of the vote)” or some such.

By last Friday, all of the Wall Street and London and Frankfurt investment jabberwockies were convinced Greece would vote to swallow more poison. Now all world stock markets are indicating much lower openings tomorrow, and then what about the rest of the week?

We must look a bit deeper to find the ultimate blame; the emergency measures taken after the Lehman, etc., collapses of 2008, whose causes were too much US real estate debt and debt elsewhere including in Japan.

Trillions of dollars, yen, euros and pounds, and other units of major world currencies, have been printed up since then all to little economic avail. Even the EU’s decision to create its own QE a few months ago has backfired and probably will not protect Europe from what may lie ahead in economic migraine headaches.

Meanwhile also look at the collapsing Chinese stock markets, and the nose-bleed-high US markets as well as the still ripping upward US dollar. Where’s the accomodation for investor confidence here, nevermind Europe?

If this is not a house of cards being brought down by a group of dissolute beachcombers called Greeks, then what the hell is it? The mighty always seem to fall after some little guy stands on their shoe laces, which is then followed by all hell breaking loose. Some shoelaces.

I don’t think today’s vote is the continuation of many more happy, healthy financial tomorrows for Mr. and Mrs. Investor in the apparently impregnable First World “managed” by it American Imperial boss.

I await with tremulous fascination for what may happen next.

#95 Grantmi on 07.05.15 at 7:17 pm

#65 Property owners always win in Canada on 07.05.15 at 5:48 pm
Prediction…….

Us ..rates 0.25 by year ens
Canadian rates 0.25 by ears end
CDN at .67 US
Real estate in canada 15%higher 12 months form now!!!!
Enjoy rent increases my dear diversified folks folks

Here you go….

http://dictionary.reference.com

#96 NoName on 07.05.15 at 7:22 pm

interesting read

faculty.chicagobooth.edu/anil.kashyap/research/papers/A-Primer-on-the-Greek-Crisis_june29.pdf

I wonder what is next bitcoin type drahma.

#97 skinny on 07.05.15 at 7:24 pm

Greece represents the birthplace of democracy and will soon represent the birthplace of the new world financial order.

It’s a Shakespeare play unfolding for the masses of old west vs new east / global but if you check all the main cast and dates including imf and bis statements it’s obvious.

This fall when the fed raises interest rates it will be the nail in the coffin of the USA dollar hegemony. But that position won’t be lost without some kind of disruption to the existing – and of course how can change be installed without adequate pain and dislocation?

National central banks except USA already signed on to this in 2010. USA is dragging things out.

But change is soon upon the whole world later this year. This isn’t some doomer nonsense, just read their websites and they spell it out for you.

#98 Canadaduh on 07.05.15 at 7:26 pm

Since 1800 Germany has defaulted 7 times, Greece only 6. Spain 8 and France 7. So just let the Greeks default on a long enough trajectory Greece will catch up to the others and maybe some day like Knossos 4000 years ago in the first civilization of Europe, Germany will have proper running toilets and water and not charge for it. At least they make a few poorly made cars but hey what do you expect from war mongers?

Maybe too after 3000 years, will the German people and the rest of Europe have a democracy. But then again what do you expect from a country that supports Merkel the chancellor and previously Hitler.

Greece said oxi to Turks, Italians in 1940, Germans in 1900 and 1940 and 2015, 300 Spartans said no to a million Persians, and you think they will say no to a corrupt bunch of bank cronnies? Good luck

#99 kommykim on 07.05.15 at 7:29 pm

RE: #1 Betty Singh on 07.05.15 at 2:43 pm
This is the history of Greece that defaulted 5 times and never learn.

Maybe it’s the Greek bond holders who have something to learn. ;-)

#100 Any questions on 07.05.15 at 7:30 pm

# 82 Retired Boomer – WI

I do believe in paying your bills, including the dam foreign entanglements, and debt our sovereign government has incurred.

I also believe in progressive income taxes, local property taxes, import taxes, sin taxes, carpet taxes, and probably some I failed to mention here. -any questions?-

Just one: during your lifetime 1% of the richest people has managed to own 50% of the global wealth. Where were you, what were you thinking to let this happen?

#101 Tim on 07.05.15 at 7:30 pm

#29 Victoria Real Estate Update

Please keep your posts coming. The more information we learn about our financial world the better.

#102 Ron on 07.05.15 at 7:38 pm

You can argue back and fourth about Greece, the IMF, devalued currencies, etc. The real problem we have in this world is we somehow have the ability to put incompetent people in charge of our governments. It is simple human nature. The masses have a fear and dislike of intelligent people. In high school they are attacked, ridiculed and are the outsiders. In the corporate world if you voice intelligent ideas, you are seen as a threat and eliminated. Only the mindless yes men rise to the top. Greenspan, Bernanke, Yellen, Geitner, etc. are all perfect examples of this phenomenon. Academics who study extremely hard to get their precious degrees but have no common sense what so ever. They plug into the system agree with conventional thinking no matter how flawed it is and get rewarded for not rocking the boat. Even look at what happened to our fearless leader GARTH when he stood up for what is right in Ottawa. The world is doomed as the idiots are in charge. The masses in Greece, Canada, Puerto Rico, Venezuela, etc. only have themselves to blame. Don’t be afraid of intelligent people!!!!!!!!

#103 Victoria Real Estate Update on 07.05.15 at 7:38 pm

# 64 Van real

Do you run this blog?

In recent months I’ve posted a number of charts showing that prices in Vancouver were falling hard and fast in 08-09 and that it took a sudden and deep drop in interest rates in 09 to stop that price slide.

Comments claiming that it’s different in Vancouver and that prices won’t correct in that city have been rare lately.

Does this anger you?

#104 kommykim on 07.05.15 at 7:40 pm

RE: #12 Marco on 07.05.15 at 3:17 pm
Can someone tell me why inflation here, the CPI index is so low? When prices are jumping in shelter and food. Considering shelter makes up over 25% of the CPI index. Makes no sense.

Because the CPI, like the HPI, is managed by vested interests. By making inflation appear lower than it really is, Governments are giving wage cuts to the workers by stealth. It also makes Government debt much less onerous to pay off and, if inflation is high enough, they never have to pay it back.

#105 AK on 07.05.15 at 7:41 pm

#38 Waterloo Resident on 07.05.15 at 4:13 pm
“On Monday I would not be surprised to see the Dow and S&P drop by about 4% to 6% minimum.”
——————————————————————-
The DOW is going to drop over 1,200 points on Monday??

LMFAO….

#106 Daisy Mae on 07.05.15 at 7:47 pm

#46 James: “Will we make mistakes? Sure. But not likely as big as the trickle down ideological mistakes of the last thirty years.

That’s why the NDP won Alberta and will soon win Canada.”

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

NDP ruling Canada? You have a lot to learn….and you will. It’s never happened to my knowledge on a federal level. I’ve seen it time and again provincially….always ending in disaster. There must be a reason. Duh! Granted, we don’t have many options…..but NDP would be our death knell.

#107 Tim on 07.05.15 at 7:51 pm

Re# 6
Yes Translink is corrupt and incompetent. But someone else was going to oversee this money. All cities–except Vancouver fund transit with taxes. Now even those with cars will feel the pain, as more people will drive because the transit will be even shittier than it is now. Thanks to our bimbo Premier for making this happen. A total lack of leadership.

#108 Daisy Mae on 07.05.15 at 7:52 pm

#50 Waiting: “Personally, I think that Greece should be forced out. It will strengthen the Euro short-term and remind everyone that this is a club you want to be a part of because of the benefits.

Greece will suffer for the next 5-15 years. I think they should let Greece reapply some time in the future after they get their house in order.”

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

Agree completely. Just common sense. Does anyone have any, anymore?

#109 saskatoon on 07.05.15 at 7:59 pm

#73 pinstripe

maybe i’m misreading here, but aren’t you calling for government (most likely bigger government) to end government corruption, debt, irresponsibility?

if so, this makes little sense.

additionally, what does “enough is ENOUGH” actually mean?

you can holster the rhetoric here, big boy.

#110 Daisy Mae on 07.05.15 at 8:01 pm

#64 Van Real: “Please start your own blog. You are so annoying. The few people who care about Victoria can find you there. Your stats might be true but few people give a hoot about Victoria real estate…”

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

This is true. I scroll past…just as I scroll past Smoking Man. LOL

#111 anotherstabbinginsaskatoon on 07.05.15 at 8:07 pm

War is their plan. War the world over. The end of history, verily, verily.

#112 saskatoon on 07.05.15 at 8:08 pm

#60 batt519

of course corporations are socialistic–they exist only as creations of big government–and are (largely) protected under an extensive (and unique) array of governmental jurisprudence.

companies (“businesses”) on the other hand are not necessarily–and can exist within a capitalist paradigm.

#113 Smoking Man on 07.05.15 at 8:15 pm

Tonight I celebrate using my Birth Name.
Dimitrios. Not sure its spelt right but who cares, when has that been an issue.

It feels good watching the machine get kicked in the head and stomped on. Mind you it will be short lived(can’t beat the machine) but all the same, it takes Spartan blood every now and then to shake the tree.

Democracy shocking the top, and returning to its place of birth..Opa

For so long the spirt of freedom represed. We are socialized and demonized if you don’t learn to love rainbows.

Symbols of rebellion, take down those flags now, its rasist you bastards.

I haven’t cracked open the OZO yet.

Just got to say, I’ve hidden my real name for years and replaced it with a British version.

Tonight I celebrate as
Dr Dimitrios
PhD Herdonomics

Think of the Unelected EU leadership as the stage.
https://youtu.be/wo8dWds6BdI

Go girls…

#114 Lisa Mason on 07.05.15 at 8:18 pm

Greece is in real trouble now and they will still stay as the poor country in Europe geographically.

They should of stayed with their Greek Drachma but then that would mean they would of had to see economic reality much earlier.

Why would anyone buy Greek bonds 10 years ago at 5.6% in 2005?

#115 Yuus bin Haad on 07.05.15 at 8:19 pm

An entry point for the world’s youth is imminent.

#116 Abin Batince on 07.05.15 at 8:19 pm

Next up is Germany doing having it’s own referendum asking citizens if yes or no they want to keep helping the greeks. My guess is a massive no.

#117 Ken Nash on 07.05.15 at 8:21 pm

Proud of the way Greeks voted. Things aren’t working for too many. But I wasn’t certain regarding Greece. Wondering, where they truly fiscal truants who deserved punishment?
Teutonic austere measures at that.

Until I read, “how much worse can it be than having 50% of your young people out of work?” Mind blowing. Hope it works well for Greece and the state of mind spreads.

#118 weedeater on 07.05.15 at 8:26 pm

If Greece is going to vote NO maybe we should be shorting Goldman Sachs :-p

#119 Black sheep on 07.05.15 at 8:36 pm

Please explain exactly how you think my data is cherry picked.

You post stupid charts with 3 data points and cite and claim that counts as inexorable proof that you’re assertion is correct. Yes, prices are lower than 2010 peak. So what? What does that mean for the future? They’re higher than 1 year ago or 10 years ago but not 5 years ago. Picking a couple number extrapolating a trend and claiming you know the future is reckless.

Canadian fixed mortgage rates will begin moving higher this fall.

You’ve been posting the same article for the last few weeks as if it was proof of something. For one, the title is pure hyperbole as it insinuates that Yellen can be quoted saying something about Canada. She didn’t say a damn thing about Canada, that’s not her job. The entire article is an opinion piece based off 3 quotes from her but is conjecture. Nothing is for sure. A US rate hike before 2016 is likely. A Canadian one is not. It’s possible that if the next few months of economic data show further contraction and the BoC cuts again then the opposite of what you say will happen as mortgage rates will fall again. Saying something so definite is foolish, you shouldn’t speak so assuredly.

The sad thing I more or less agree with you and wouldn’t be buying a house if I lived in Victoria but you’re so tiring. No matter what the blog subject is you post the same stuff over and over. It’s like you have aspergers and can’t pick up on cues about the discussion so you just talk about what you want to hear.

#120 Black sheep on 07.05.15 at 8:39 pm

I don’t understand the current media attention being given to Greece. In terms of impact on the global economy it’s pretty small. In the same time period the Shanghai stock market has shed almost 30% and erased $2T worth of wealth.

This weekend the government just introduced some drastic measures to stop the hemorrhaging. Domestic market volatility and slowing economic growth are changing the projections everyone had for the once unstoppable Chinese economy. It’s second only to the US and sure to have impacts worldwide.

I find it odd the bulk of western press if focusing on Greece.

#121 csarichardo on 07.05.15 at 8:43 pm

Yes the Greek private banks had low lending standards and everyone knew it ! So who lended money to the Greek government ? Clearly somebody was trying to scam somebody !? Time for those banks (private and public) to take a haircut ?

#122 gut check on 07.05.15 at 8:45 pm

THIS IS AN HISTORIC DAY.

OXI.

It is almost binary in its simplicity – In the texts of the future the next age may very well start with those three letters. BC, AD, OXI

#123 gut check on 07.05.15 at 8:46 pm

Are those of you whinging that Greece should pay its debts the same ones who will invest in the very banks that screw you with fees each month? Are you the ones scouring the tax code to find a way to write off the gas for your boats?

you make me laugh and cry at the same time.

no matter – it’s the beginning of the end of your world.

#124 Nagraj on 07.05.15 at 8:50 pm

GT: “Those investors who bet wrong [on Greece] will be punished.”

There’s a list of who some those investors are, in the June 29 Wolf Richter piece, “Panicked Hedge Funds Now Praying for a Miracle in Greece”

#125 OttawaMike on 07.05.15 at 9:03 pm

Good for the pencil necked Greeks. The EU basically gave a jumbo mortgage to a heroin addict. What did they expect?

And did they hire the Party Quebecois brass to pen that referendum question?

#126 Leo Trollstoy on 07.05.15 at 9:05 pm

On Monday I would not be surprised to see the Dow and S&P drop by about 4% to 6% minimum.

That would be known as, “free money”.

Nobody cares about Greece.

#127 Smudger on 07.05.15 at 9:07 pm

Mediterranean assholes. They’ll probably end up under dictatorship again.

#128 The real Kip on 07.05.15 at 9:08 pm

The Greeks did the right thing by voting no to the ponzi of the IMF. They should have done it two years ago.

Even the IMF now acknowledges that Greek debt will never be repaid. To force Greece to borrow more to pay debts that can’t be serviced is irresponsible on the part of the IMF.

#129 Bottoms_Up on 07.05.15 at 9:09 pm

#12 Marco on 07.05.15 at 3:17 pm
—————————————-
I think CPI is intentionally kept low in order to suppress wages. If true inflation were known, we’d need 5% yeatly wage gains to keep pace with actual increases in living and food costs.

#130 Sheane Wallace on 07.05.15 at 9:13 pm

So Greece could be kicked out of the EU, lose use of the euro, default on almost all of its debt obligations…

Americans know nothing on Europe’s internal affairs.

Greece can not be kicked out of the euro as there is no mechanism for that in the EU. Greece may decide on that themselves though.

Defaulting on the debt obligations is clear – their debt is
simply unsustainable. There is no way for the Greeks to pay back 300 billions in external debt. They can not pay 100 billions.

It is the problem of excessive debt that will knock on our door courtesy of CMHC if not tomorrow, then next decade. Of course we can print our way while Greeks can’t. so the message is clear:

Excessive debt = destruction of the currency and significant reduction in living standards one way or another (external default or excessive inflation).
It is that simple.

Cheers savers and people on fixed income, you are paying for the debt orgy.

As for the Greeks they have no choice, better to default now and rebuild from they have left vs. going nowhere with no hope and fast contraction in the next 20 years.

EU has to write down most of the debt one way or nother.

You think we are better in terms of overall debt? You would be deadly wrong, while our governments seems to have ‘sustainable’ debt (without counting CMHC liabilities of course) let’s not forget that GREEKS HAVE NO PERSONAL DEBT, while our personal debt is staggering.

#131 Show me the Money on 07.05.15 at 9:13 pm

Victoria Real Estate Update

Your post are one of the reasons why I read this blog, just ignore the haters there probably from T.O.

Question for you. How long will it be before one could take advantage of real estate buying opportunities in Victoria?

#132 Sheane Wallace on 07.05.15 at 9:15 pm

#105 csarichardo

The debt is due to external loans, Germany alone holds 70 billions of that debt, Italy and France another 40-50 billions each.

#133 Greek president on 07.05.15 at 9:18 pm

#97 Smoking Man on 07.05.15 at 8:15 pm

Tonight I celebrate using my Birth Name.
Dimitrios.

Smoking Man for Greek Prsident (his spelling, not mine).

Just give him whatever money left in Greece, he buys CADUS contracts and single handedly bails out the country as side-gig on Bay street.

Greece buys him new set of teeth to honor his Spartan heroism.

#134 Sheane Wallace on 07.05.15 at 9:19 pm

Chickens, I get. But you can’t eat rocks. — Garth

You can’t eat euros either apparently. Specially when you can not get your own money out of the bank as in Greece now. Are the money yours? I don’t think so.

#135 fancy_pants on 07.05.15 at 9:21 pm

pride before the fall.
oh and it will be cloudy tomorrow if it is not sunny.

#136 MIKEKIJE on 07.05.15 at 9:22 pm

Anger, panic, fear – these are the feelings that now dominate the Brussels and Berlin.
Defeat is always the hardest pain of one who has never learned to lose, and international lenders can not even comprehend what is now going on.

It is not, after all, about Greece.
Greece is free, at least a little, the same way the other victims may go.

#137 Sheane Wallace on 07.05.15 at 9:23 pm

Kicking conservatives out now won’t have any positive effect, it is already too late.

On the contrary, with any other political party the thingy would unravel much faster and the hit on the fan would be epic.

I would like the cons to stay for a while, then the party can go for few more years (2-3), please.

Yes, savers will be screwed and Ca dollar will tank, but who rally cares? I won’t be living here when it pops anyway.

#138 Marc in Montréal on 07.05.15 at 9:24 pm

For those of you who don’t drink the Eurogroup kool-aid, it doesn’t get much better than French economist Jacques Sapir.

http://www.bfmtv.com/mediaplayer/video/jacques-sapir-face-a-ruth-elkrief-572693.html

#139 OXI on 07.05.15 at 9:25 pm

OXI – never heard of it… What kind of ETF is it?
How does it fit in my balanced portfolio?

#140 Love my Kia on 07.05.15 at 9:25 pm

James #46
Those who are not paying attention to what is happening will simply get run over by it.

That’s the way history always unfolds.
———————————————–
Smartest comment I’ve seen in awhile.

I now work in post secondary and have observed from the trenches a lot more students than not struggling (at least 25% use the student food bank), not finding work that is geared to their education when they graduate or don’t offer any kind of benefits or security, and they are PISSED. These same students are the newly minted electorate hovering at the 18 years of age mark so you know something’s gonna give.

The pendulum is definitely swinging, I for one am surprised it didn’t happen sooner. As mentioned in earlier comments, political dogma be damned if you aren’t paying attention to what is happening at ground level. If you surround yourself with wealthy elitists, you are out of touch. They are a minority group compared to the masses that I see day in day out.

Given what happened in Greece today, being a gold bug would be a very smart move if you live there.

#141 Bottoms_Up on 07.05.15 at 9:26 pm

#90 Daisy Mae on 07.05.15 at 7:47 pm
—————————————–
Sorry you are mistaken, NDP will be winning this election.

#142 Bob Dylan on 07.05.15 at 9:27 pm

I have never been so misused and violated…

Canadians…

#143 craig on 07.05.15 at 9:27 pm

I wonder if the Greeks wish they had their savings in a ‘diversified’ portfolio of paper promises they can’t even access- Garth? or are they wishing they had Gold and silver coins to barter with to survive?? Greece is just the beginning. Never happen here? Keep telling yourself that. Mr- “The times they are a changing”

#144 Henry on 07.05.15 at 9:28 pm

The big losers in this fiasco is the Wall Street hedge funds who bought Greek debt for cents on the dollar hoping to get a 100 % on the dollar. I hope these despicable parasites loose billions. I don’t know what the Greek word for it is, but the German word is : Schadenfreude!!

#145 John in Mtl on 07.05.15 at 9:29 pm

The IMF & Goldman Sach already knew in 2010 that Greek debt was unsustainable. What did they do? They went ahead anyways & lent money. Why? Think “rentier class” and you win! Essentially, interest money “forever”. GS probably also has a paying bet if Greece defaults.

This guy has an interesting scenario that could play out for Greece, Russia and China: http://www.golemxiv.co.uk/2015/07/greece-china-russia/

The .1%’s rule is starting to fray at the edges.

#146 Nagraj on 07.05.15 at 9:32 pm

#95 anotherstabbinginsaskatoon

Wow.
Drama Queen doesn’t do you justice. That’s a compliment.
You have talent.

Any particular verse in the King James you got those verily’s from? How’s your knife collection? I suspect you’re not at all from Saskatoon but blogposting from Stratford –

#147 debtified on 07.05.15 at 9:39 pm

Garth, this is the 1st time that you sounded like a doomer to me.

Every one knows what the Greeks are like. How the powers-that-be in Europe convinced themselves to lend Greece all the money that they did is beyond me. Remember that the government at that time initially refused and wanted a referendum on the bailout. The powers-that-be did not like that idea so they forced that government out and replaced it with an unelected bunch to impose their will on the Greeks. This, in effect, gave the current radical government the chance to take power. So, now, here they are…

Whatever cannot be paid will not be paid. If you lend someone this, their problem; that, your problem. Yadi yadi yada.

I feel sorry for all the poor citizens of all the other countries who lent Greece the money. They will never see most of that money ever again. I also wish the Greeks all the best. Tough times (and will get tougher soon), but this too shall pass.

The biggest problem is Spain. They are having elections later this year. All the powers-that-be in Europe will try to drag this Greek saga as long as they can without giving the Spaniards reason to hand over power to Podemos. Otherwise… well, then you (Garth) would have real reasons to sound like a doomer.

As for our issues here at home, I have always thought that you are right. Although, some commentators here have not seen proofs of that with recents developments. They are either in denial or still wearing those rose-coloured glasses. I just completed a 2-week road trip around interior BC, keeping a close eye on the state of the real estate market there. I viewed a few interesting properties. My observations, for whatever it is worth, is that there is so much stress out there. Common theme: more and more people are needing to liquidate their real estate assets but they can’t. I can smell the desperation in the air.

Lastly, if you are still reading this Garth, could you please talk about what is hapenning in China? Thank you.

#148 AK on 07.05.15 at 9:49 pm

#97 Smoking Man on 07.05.15 at 8:15 pm

“I haven’t cracked open the OZO yet.”

———————————————————-
It’s OUZO. And when you do crack it open. “στην υγειά σας”.

#149 Victoria Real Estate Update on 07.05.15 at 9:52 pm

# 103 Black sheep

“You post stupid charts with 3 data points and cite and claim that counts as inexorable proof that your’re (your?) assertion is correct.”

What assertion did I make today? Please post that quote.

I simply compared the performance of Victoria’s market to markets across Canada in general. Take the time to read my post. I did this mainly to disprove the unsubstantiated claims of a realtor who recently posted a comment saying that Victoria’s market was “relatively on fire”. If you had actually read what I wrote you would know that and the blog wouldn’t have to listen to your whining.

The 3 or 3 data points tell the complete story. Adding other points would only be adding noise.

The first chart shows Victoria’s performance vs Canada in recent months.

The second chart shows Victoria’s performance vs Canada since 2010. It included the peak in 2010, 2014’s low and the last month of data (May 2015) released by Teranet.

My charts may not be pretty but they are simple and they get the point across.

“Picking a couple number extrapolating a trend and claiming you know the future is reckless.”

What trend did I extrapolate? Again, you couldn’t have read what I wrote.

How is what I wrote reckless? Victoria’s market has fallen since 2010 despite falling interest rates. Imagine how far prices could fall as rates begin rising (over time) this fall.

It’s probably safe to assume that many realtors are telling potential buyers to buy now in Victoria and some may even be telling buyers that rates will never rise. Victoria’s housing market is in a bubble. Garth has said that Canadian 5-year fixed mortgage rates will begin moving higher this fall.

That’s reckless.

My factual charts simply give potential buyers some of the most important knowledge about Victoria’s market that they need in order to make an informed decision about whether to buy or not.

It may help convince some to not buy now. How is not buying reckless?

“You’ve been posting the same article for the last few weeks as if it was proof of something.”

You are in denial about rates rising. Are you a realtor?

I’ve posted a link to the same important article a number of times over the last week. Here’s why.

You wrote that “It’s possible that if the next few months of economic data show further contraction and the BoC cuts again then the opposite of what you say will happen as mortgage rates will fall again.”

If the BoC cuts again then Canadian variable rates would likely fall a small amount.

However, the US Fed will begin raising its rate soon – many think it will happen this fall (Garth thinks so). When the US Fed moves, US 5-year fixed rates will move higher and Canadian 5-year fixed rates will follow.

“No matter what the blog subject is you post the same stuff over and over.”

Have you seen the two charts I posted today in the past? The answer to that is no.

Wow, you were wrong about everything.

Please whine more in the future, this was fun.

And remember, prices fall as rates rise. That is not an extrapolation. It’s pure fact.

#150 economictsunami on 07.05.15 at 9:52 pm

Debt is a risk, as well as an obligation.

With the Greek government’s storied history of serially failing to meet their debt obligations, low rates and the Euro suddenly made them bullet proof???

Perhaps the banks who took the original risk need to take some responsibility.

Ninety two percent of Greek bailout money was simply returned to German, French and other banks who counted on an ECB put.

Thoughtless, deep austerity cuts simply assured a shrinking economy and shriveling revenue streams.

The math just doesn’t add up…

Greece Referendum result and the meaning of debt – Business Insider :

http://www.businessinsider.com/greece-referendum-result-and-the-meaning-of-debt-2015-7

#151 Victoria Real Estate Update on 07.05.15 at 9:54 pm

Correction to my last post.

“3 or 4 data points”

#152 Smartalox on 07.05.15 at 10:01 pm

I voted against the blank check for Translink because I wanted to vote against a regressive tax measure that would impact the poor the hardest.

Let the provincial government make the politically unsavoury decision to raise property taxes by a fraction of one per cent on this region’s ridiculously over-valued properties, but the threat of affecting property values (aka the personal wealth of voters, politicians and their lobbyists) is too great for politicians to take a progressive stand.

#153 Blacksheep on 07.05.15 at 10:02 pm

Black sheep # 44,

I’m flattered, I really am….

And I realize “Blacksheep” is an awesome handle, but regret to inform you that it has already been in use for 7 long, tortuous years, here at ‘greater fool’.

Besides, you don’t want to be known as just a weak copy, of the (admittedly tarnished, yet brilliant) original.

Thank-you in advance for your cooperation.

BS (the original)

#154 Nosty, etc. on 07.05.15 at 10:02 pm

#8 Godth on 07.05.15 at 3:11 pm and #72 Bill Grable on 07.05.15 at 6:02 pm — “The world is changing quickly.”

Never let a good crisis go to waste! Henceforth, not to worry, never fear as the universe is unfolding as it should and accordingly, all things are happening as they are supposed to, so here is Mr. Putin — Russia’s new super weapon, which is a lot more viable than Sadaam’s non-existent nuke WMD.

#62 Why worry? on 07.05.15 at 5:46 pm — “… Greek economy is only 2% of the EU economy, smaller than than Ontario. Not to mention that the market has priced in Grexit long time ago, eh?” But, but, but what if the rest of PIIGS, France and Germany, etc. tell their govts. to go screw themselves, join China and Russia, abandon all sanctions against Russia, return to business as usual and start making nice profits?

Is there any further need for Gold In My Sacks, JPM or the Euro? Apparently not.

#155 Smoking Man on 07.05.15 at 10:06 pm

#124 AK on 07.05.15 at 9:49 pm
#97 Smoking Man on 07.05.15 at 8:15 pm

“I haven’t cracked open the OZO yet.”

———————————————————-
It’s OUZO. And when you do crack it open. “στην υγειά σας”.
..

It’s open, cheers to you too.

#156 BS on 07.05.15 at 10:07 pm

Yes Translink is corrupt and incompetent. But someone else was going to oversee this money.

Oversee with no power to make changes or have binding input of any kind. All they could do is report Translink wasted more money. We already have the Canadian Taxpayers Federation to do that for us.

Now even those with cars will feel the pain, as more people will drive because the transit will be even shittier than it is now.

The last time there was a transit strike in Vancouver traffic was never better. Buses clog traffic. People who take the bus don’t have and cannot afford cars. Less buses is good for traffic.

A real solution would be let Uber come in. Affordable and convenient transportation that does not require a tax increase. Lets an average person who owns a car make a little extra money on the side. Why can’t we vote on that?

#157 Ottawa on 07.05.15 at 10:08 pm

#20 John in mtl

Concise and clearly captures the real issues. Amen brother.

#158 sideline sitter on 07.05.15 at 10:08 pm

No was the right call. Greece can’t pay back the debt, and really have no other choice.

However, the vote was never in question… Greece has a national holiday about proclaiming ‘No!’

#159 Llewelyn on 07.05.15 at 10:11 pm

Ask one simple question. What benefits did the citizens of Greece receive from joining the EEC.

The IMF realized a 2.0+ % spread on thier loans to the Greek government. Just imagine that instead of providing billions of dollars of equalization payments Alberta had offered loans to less fortunate provinces. Then imagine what might happen if Alberta tried to tell provincial governments to inflict pain on their citizens in order to meet their debt obligations.

Lets face facts the EEC cannot encourage countries without a strong economy to become a member and then try to make a profit by issuing loans they knew in advance they could never repay.

Unlike the mighty warlord to our south Greece cannot punch a few computer keys to generate trillions of dollars of fiat currency to avoid a liquidity crisis. The government in Greece has attempted to increase their GDP but funds required for stimulation were siphoned off to service debt at onerous interest rates.

Imagine where Canada or Ontario might be if they they had to pay the same interest rates as Greece to service their current debt. Then imagine how you might vote in a referendum.

#160 Marco on 07.05.15 at 10:11 pm

@KommyKim
“By making inflation appear lower than it really is, ”

Can’t keep it under wraps forever. BoA says Canada is already in a recession, Joe says no.

If the Loonie falls below 77cents U.S, as some are calling there won’t be any doubt inflation is rising.

Is it far fetched to think inflation will have to be stemmed by raising rates? Or by raising workers wages (doubtful).
Thus putting some assets like House prices into deflationary mode.

If higher inflation us on the horizon, seems like cutting rates is just a last stab on keeping the economy going till the election.

Money is flowing into the U.S because of the volatility in Europe and because they are the reserve currency.

Cheers.

#161 devore on 07.05.15 at 10:22 pm

Then delusional Vancouverites voted down a tax funding the future.

This is a short sighted thing to say.

The government (and translink) will get their money, not to worry. The vote was on whether this money would come from a sales tax increase.

I voted no, because we do not live in a direct democracy. We elect politicians, who have dedicated time, access to experts, etc, in order to make a long term plan, prioritize it, come up with sustainable funding, execute it, and maintain and evolve it in the future. I am not a transportation expert. Maybe translink needs more money, maybe it does not. Maybe it needs $X billions, maybe it does not. I do not know, and neither did the 99.999% of the other people who voted with me.

This is 100% government’s and politicians’ responsibility. If they need to raise taxes to deliver the things we voted them in for, then that is what they must do, and take full responsibility for it. The judgement will come at the ballot box during election time, not in some plebiscite.

There was absolutely no need for this multi-million dollar theatrics and drama.

Our government is extremely expensive to operate. It is time they started pulling their weight and doing the job we elect them to do. This recent trend of pushing down these kinds of decisions to the population is very worrying to me. It tells me the government is unwilling to make important decisions, and unwilling to take responsibility for the role they play in our democratic system.

Everyone should be up in arms about it.

#162 Blacksheep on 07.05.15 at 10:31 pm

Good job Greece, F-you, IMF.

#163 Love my Kia on 07.05.15 at 10:32 pm

Other than the poster who hates NDP ‘commies’ (I think its because he knows he’s outnumbered) and the Daisy poster, there’s a pretty big consensus in the comments tonight agreeing for the need for some kind of change.

That should tell us all something is amiss here in Canada too.

#164 Predictions2015! on 07.05.15 at 10:34 pm

2015 is turning out to be on hell of a ride so far. We’re just entering into the 2nd half of it too! More craziness to follow in the 2nd half, just watch and see.

Expectations:
1) US Fed won’t raise interest rates in 2015.
2) Bank of Canada will blink and cut interest rates by another 0.25% before the end of 2015.
3) China’s stock market will continue to fall despite of rate cuts and emergency measures.
4) European stock market will require additional QE to maintain its inflated level.
5) Gold and silver prices will remain relatively unchanged until the US Fed kicks off QE4, which is highly unlikely in 2015 but somewhat likely in 2016.

#165 anotherstabbinginsaskatoon on 07.05.15 at 10:34 pm

I cannot provide the link to the video because I am from Saskatoon. The Next Economic Disaster:New America Foundation Youtube blog dogs!

#166 Smoking Man on 07.05.15 at 10:40 pm

Some one run over Jane Fonda.

She’s gone total tree hugging religion.

Early stages of dementia.. She said 99% climate scientists say man made warming caused by humans.

Take 100 people to comment on is the world flat.. You won’t get 99% consensus…

Hense the bull shit.

I respected her long time ago…

Run her over with one of those big trucks you find at the Alberta Oil Sands.

Splat.

Stupidly knows no bounds…kill en all.

This Ouzo worce than Jack when it comes to aggressivness.

#167 Obvious Truth on 07.05.15 at 10:40 pm

I’m thinking Jimmy the Greek is a sin o nam for Smoking Man.

#168 omg the original on 07.05.15 at 10:50 pm

Lot of pissing on Victoria RE naysayers today.

Here’s my bit to add.

HAM is not happening in Vic – I did several open houses with a friend over the past 3 weeks. I scanned the guest book when possible and maybe 1 in 10 names could possibly be construed as Asian (and even then that does not mean HAM as we do have Canadians of Asian decent in Victoria). I also asked the sales reps who were buying – only 2 out of 12 said offshore buyers.

The Island Real Estate Boards are trying hard to pitch the idea of HAM on the Island – just does not seem to be happening.

Although people seem to be buying the pitch.

#169 Nuke on 07.05.15 at 10:59 pm

Good on you Greece. Now instead of a debtor nation we have the IMF and ECB banisters holding massive debt that won’t get repaid. Let Greece trade amongst itself and use cryptocurrency as the medium of exchange. Turning 15% private debt into 5% public debt can have that effect. Goldman Sachs played the long con getting Greece in the club and might not see it played out how they planned it.

#170 Yuus bin Haad on 07.05.15 at 11:00 pm

P.S. I dunno. Do you think Bob’s anthem will be revived?

#171 Victoria Real Estate Update on 07.05.15 at 11:15 pm

# 131 Show me the Money

I appreciate that.

I think that the biggest part of Victoria’s overall price decline (as the bubble continues to deflate) will happen some time after Canadian 5-year fixed mortgage rates begin to move higher this fall.

Overall, prices in Victoria are lower than they were 5 years ago when 5-year fixed mortgage rates were significantly higher than they are today.

If Victoria’s market fell while rates fell, then it is only logical to conclude that it’s market will fall significantly more as rates rise. It would be extremely difficult for anyone to argue against that.

It would be impossible to predict when buying in Victoria would be safe again.

There is definitely no bottom in sight at the moment.

In the US, there was a period of time (somewhere around 2 years) when prices in basically every American city were falling at the same time. This was also the same period of time when the biggest price declines were seen in the US correction.

It’s quite possible that we’ll see something like that happen in Canada. Victoria would definitely be a participant if it happens and it likely will, in my opinion. It’s a common occurrence as housing bubbles deflate.

As it stands now, we don’t have a general price correction across Canada. That could begin soon.

As prices fall across Canada and (of course) in Victoria, risk will disappear and buying will become safer and safer.

It will be exciting for those who have waited to buy. There is still more time to wait but it will be worth it.

First-time buyers who wait for the right time to buy will be rewarded with a bright future of being able to look forward to gradual property appreciation instead of having to deal with the value of their property falling.

It would be impossible to give you a specific timeline.

Right now we are looking at maximum risk with buying. That risk will diminish as prices fall.

You’ll know when it’s time to buy when Canadians are no longer house horny and buying is viewed as risky (think the US experience).

#172 Panhead on 07.05.15 at 11:20 pm

Sheeesh … I’m still waiting to hear if Nancy has a boat and motor…. if she does, please send pic.

#173 Mocha on 07.05.15 at 11:22 pm

I voted “no” on the transit tax increase here in Vancouver and I’m proud of it. No amount of “shaming” from rich people is going to make me regret it.

Every litre of gas that I purchase, every power and gas bill that I pay already has extra money tacked onto it, which is supposedly specifically dedicated to funding for translink. Enough is enough. They can ” fund the future” with some other method.

#174 Squirrel meat on 07.05.15 at 11:23 pm

Who needs oil.. we have gambling.

http://calgaryherald.com/news/local-news/gambling-revenues-surge-in-alberta-while-province-weighs-online-casino

#175 M on 07.05.15 at 11:25 pm

Greece will do fine. Island to the power 10.

#176 Retired Boomer - WI on 07.05.15 at 11:44 pm

#100 ANY QUESTIONS?

By the way, not knowing your age, when did you first hear about the 1% having amassed half of the total wealth?

Did you know when I began working China was a nobody nothing country? Canada was merely a place that had great AM rock stations available at night.

The minimum wage here was $1.25 an hour.

My first decent car a 5 year old Ford cost $950

My first house a 4 br cape cod cost me $29,900 at 8 1/2%
with a 1/3 $10,000 down payment!!

Yeah… and you have the audacity to ask ME where was I?

Living life, before the internet, before smart phones, before cell phones, before color TV, before there was EVER Rock music on FM radio….

Nobody cared if 1% got 50% only that you got your fair share as well.

Nothing has really changed much, except the “rich” pay effectively less tax than they did, but so do I, so who can bitch? Ask your politician to raise your taxes if you aren’t satisfied….
Any Questions?

#177 Millmech on 07.05.15 at 11:53 pm

Victoria Real Estate Update,
You need to start your own blog and post links to it,I’m developing tendinitis in my thumb from scrolling past your long posts.I have nothing against what your doing but you take up a lot of space here with information that we could possibly source from your own site.Its good info but try to shorten it up a bit.

#178 West Coast on 07.05.15 at 11:54 pm

If you had had your pension cut in half, your well educated and unemployed kids leave for another country (probably never to return) and right wing Germans telling you that it’s austerity ‘forever’, you’d probably have voted ‘OXI’ as well.
The Greeks should never have adopted the Euro, but now that they are on the verge of exiting, maybe they should follow Jeff Dorfman’s advice.
http://www.forbes.com/sites/jeffreydorfman/2015/07/05/a-win-win-grexit-for-greece-and-europe/

Remember there is nothing quite so good as having control over your currency and being able to devalue it (70 cent CAD anyone?).

#179 jeff on 07.06.15 at 12:06 am

yeah, and the EU will give 15 billion in loans and grants to the Ukraine….and then fabricate this disaster with Greece…please, think….Garth, have you ever read any other works on politics and social theory other than those derived from right wing ideologists? you’re great with personal finances….but, well

#180 Carpe Diem on 07.06.15 at 12:07 am

I’ve been reading about comparisons between Greece, California and Ontario.

Then narrowed the analysis.

Ontario, if it keeps spending, might be Canada’s Greece.

Quebec as well. But they seem to be doing something about it.

#181 Ole Doberman on 07.06.15 at 12:11 am

Well so far gold the safe haven is not responding to Greece – only question is what does it mean basil?!

#182 Bob Dog on 07.06.15 at 12:13 am

Hard to breath an Vancouver tonight. Must be the red hot housing market.

I voted no for transit for people who haven’t even moved here yet. Who in Vancouver thinks another million people is a good idea? Perhaps this transit could be funded with a hefty tax on money laundering which is rampant here.

#183 Jack kelly on 07.06.15 at 12:15 am

The person or country or whoever is more at fault by excepting the debt obligation.

Nobody put a gun to Greece’s government and said you have to borrow.

There can’t be debt created if there is no borrower that wants to get something for nothing mentality and attitude.

Socialism and promises by governments especially left wing, socialistic policy governments are the most to blame for this.

Stop borrowing money like it is water. Debt addicts are the real culprit here.

Debt junkies are out of control!

#184 Jack kelly on 07.06.15 at 12:16 am

Correction to my last above post, the person or country or whoever is more at fault for accepting the debt obligation.

#185 Setting the Record Straight on 07.06.15 at 12:22 am

@121 and others

#121 csarichardo on 07.05.15 at 8:43 pm
Yes the Greek private banks had low lending standards and everyone knew it ! So who lended money to the Greek government ? Clearly somebody was trying to scam somebody !? Time for those banks (private and public) to take a haircut ?

Do people not know that the funds the EU, the IMF and the ECB went to pay the debt owed to the European banks?
This was a rescue of The European financial institutions by the taxpayers of the EU, nothing to do with rescuing Greece.

Think of it as analogous to the CMHC.

Governments, along with the central banks and crony capitalists are in fact the enemy.

#186 Setting the Record Straight on 07.06.15 at 12:25 am

#129 Bottoms_Up on 07.05.15 at 9:09 pm
#12 Marco on 07.05.15 at 3:17 pm
—————————————-
I think CPI is intentionally kept low in order to suppress wages. If true inflation were known, we’d need 5% yeatly wage gains to keep pace with actual increases in living and food costs.
&&&&&&
Privatize economic statistics. Who trusts the government?

#187 Obvious Truth on 07.06.15 at 12:29 am

Imagine super Mario letting Greek banks fail.

He doesn’t have the stones and he’s not that dumb. I hope.

Politicians will blame him.

Before last week everyone in the room thought Tsipras was the fool. Now they can’t spot one…..

#188 NEVER GIVE UP on 07.06.15 at 12:39 am

Sons of Anarchy 103 Episode Script…. |

Crow gets squeezed out by the most dangerous gang of all: OLD WHITE MONEY

It is time we all stood up to these gangs on Wall Street and in the Eurozone.

They have all the politicians in their pocket and the politicians run the Police and Armies.

They will not stop until we have France pre-revolution!

Keep them all in debt and you have them all under control.

Mayer Amschel Rothschild said it best:

“Permit me to issue and control the money of a nation, and I care not who makes its laws!”

Come to think of it I am an Old White Man! LOL

#189 Rexx Rock on 07.06.15 at 12:46 am

Just like last Monday its time to short.You make quick money shorting for a nice day trade.Pick the gappers ride it down with a tight stop.Its the only way to trade these volatile markets.Pick your shorts wisely.Reits,bond funds and oil stocks have been great shorts.Phk,xre and mu have been good to me for shorting.

#190 Cowboy on 07.06.15 at 1:04 am

A good horse is a good thing.

A dead horse is a dead thing.

There is no point in flogging a dead horse.

#191 observer on 07.06.15 at 1:06 am

Good For Greece, this should of happened years ago.

A few years of hardship and then you’ll see them come back and actually have growth.

The predatory lenders will get what they deserve. No constraints, just lend lend lend, too bad so sad. They should of stopped this circus a long time ago

As for the market, a few days of panic, then things will return back to normal. You see Greece is nothing more than spit in a bucket, or pee in a swimming pool. The first few days of uncertainty will cause market swing, but view it as opportunity, because the markets will return, … Unless Russia and China get into the dance

#192 Leo Trollstoy on 07.06.15 at 1:42 am

By the way, not knowing your age, when did you first hear about the 1% having amassed half of the total wealth?

That stat is deliberately BS.

The methodology used, the poorest 2 billion people in the world have a negative net wealth. Someone who has 25 cents but no assets or debts would be above the bottom 30% of the world’s population.

Even an elementary school child understands that adding up lots of negatives at the bottom to an overall wealth share figure for the bottom 99 per cent will make that figure much smaller than a gross wealth figure.

Sheeple are so gullible.

http://www.iea.org.uk/node/9980

#193 Calgary Mark on 07.06.15 at 1:49 am

A fair amount of comments on here market this Greek “no” vote as a matter of stupidity and pride.

I would opine that Greece has obviously made some financial mistakes, but given where they are at RIGHT NOW, the answer is not so black and white. Many economists, including Nobel laureates have weighed in on both sides (see link)

http://www.theguardian.com/world/2015/jul/03/greek-referendum-what-the-experts-say

Given the debate amoung economic heavyweights, it is not hard to see this issue is not so simple, as so many want to believe.

Further to this, political heavyweights (i.e., Chomsky and others), have also weighed in on the “no” side.

You can love or hate the left leaning Greek government, but Tsipras has not been in power a long time, and put his political leadership on the line (insinuated he would leave office if the referendum resulted in “yes”, and did this when “yes” was leading in the polls). Wish more politicians here would offer to do the same.

Lastly, the “no” vote may or may not turn to work in Greece’s favor, but at least it was a democratic decision… to paraphrase Ghandi, ‘people would rather have their own poor rule, over someone else’s good rule’.

#194 Leo Trollstoy on 07.06.15 at 1:51 am

The Island Real Estate Boards are trying hard to pitch the idea of HAM on the Island – just does not seem to be happening.

Although people seem to be buying the pitch.

Sheeple like simple answers for their annoying problems.

That’s why they’re poor.

#195 Arch Douche on 07.06.15 at 1:57 am

To those that keep telling Victoria Real Estate Update how to post, what to post and where to post it: unless you want other forum members to dictate your posts, wise up. I like those posts, and other people like those posts too. Unlike the posts that discuss Yellow Peril, upcoming Armageddon, Bible verse market return correlation, and how interest rate hikes cause currency depreciation, the VREU posts present reasonably objective info. Leave the censoring to GT as he sees fit; I think he can handle it.

#196 stage1dave on 07.06.15 at 2:01 am

That was almost enuff to make me dig thru piles of old tour t shirts, stacks of vinyl, a few bike parts awaiting paint, & whatever the step daughter left here after her BD weekend to grab one of my acoustics & bang out a few songs…bravo!

In addition to incisive commentary on whatever the Greek vote will lead to, our host has proved once again that he has great taste in music.

Besides, he coulda used “Money Talks”, but I wouldn’t have been holding my breath waiting for the brothers Young or Mr. Johnson to chime in here…

#197 Victoria Real Estate Update on 07.06.15 at 2:07 am

# 177 Millmech

Do you run this blog? You need to stop whining.

There are plenty of other regulars who post a lot more than I do. Sometimes I go several days without posting any comments.

I could play games like certain other regulars who post under a different name each time, but I don’t.

#198 observer on 07.06.15 at 3:06 am

Greece is a good lesson to the world. Lending money at such low rates, allows more borrowing and no returns.

There are risk involved the higher the risk the higher the returns or losses. In the greek model they lent at low rates once things started going south Greek was at a point of no return. They were done, too much debt and no way of paying back, Instead they went deeper and deeper

Ask yourself one thing, The newbies who are borrowing million with minimum or zero downpayment.

When are they going to pay it back. In this lifetime or never intended to pay it back

#199 drydock on 07.06.15 at 4:54 am

#75 Linda on 07.05.15 at 6:13 pm

No imports to Greece, oh well i guess the importers can let their products rot in their warehouses.
That’ll teach those uppity Greeks.

#200 Bill Gable on 07.06.15 at 5:43 am

Any foreigners that go to Greece are potential mugging victims, because they have money.
Pass – Italy is next along with Spain and Portugal.
We return home with a delightful 18 hour journey.
Europe has been eye opening – and we won’t be coming back. The beggars and desperate shop owners have made it rather depressing. Glad I saw Rome and Paris, one more time – but never again. Best wishes to the wonderful people we have met – Romans are delightful.

#201 pbrasseur on 07.06.15 at 8:12 am

@ Mike T. #77

«Le Pen = France’s Ron Paul»

You couldn’t be more wrong

Le Pen and her «Front National» are far left on many economic issues (unbridled protectionism, state intervention and control) and far right on several social issues (immigration). Ron Paul is a breath of fresh air in American politics, Le Pen represents a toxic mix of populism, socialism and racist ultra-nationalism

#202 Incubus on 07.06.15 at 8:36 am

Why they dont just print the money like the FED?

#203 Holy Crap Wheres The Tylenol on 07.06.15 at 8:50 am

#166 Smoking Man on 07.05.15 at 10:40 pm
Some one run over Jane Fonda.
She’s gone total tree hugging religion.
Early stages of dementia.. She said 99% climate scientists say man made warming caused by humans.
Take 100 people to comment on is the world flat.. You won’t get 99% consensus…
Hense the bull shit.
I respected her long time ago…
Run her over with one of those big trucks you find at the Alberta Oil Sands.
Splat.
Stupidly knows no bounds…kill en all.
This Ouzo worce than Jack when it comes to aggressivness.
____________________________________________
Enjoy the Ouzo Smoking Man, or should I say did you enjoy it as this morning your head will be a hurtin! Only drank it once in Germany on leave. Bad, bad stuff. Jane Fonda can go and take a flying @#%$. Can not stand her for her movie star bullshit she pulled back in 1972. Hanoi Jane called returning POWs “hypocrites and liars,” adding, “These were not men who had been tortured. These were not men who had been starved. These were not men who had been brainwashed. All this a few hundred yards from the location of American POWs were being subjected to all manner of torture at the “Hanoi Hilton.” As any ex Pilot how they feel about her!

#204 Holy Crap Wheres The Tylenol on 07.06.15 at 8:58 am

I was going to say Greece is toast however it was already toast when the EU let it in. It is akin to letting first graders into a dynamic aeroelasticity coarse at University. Bye bye Konstantinos and don’t forget to take the souvlaki on the way out. Oh and to the EU good luck trying to cash that late payment from Greece.

#205 Lake Shore Electric Railway on 07.06.15 at 8:59 am

Hmmm…Seems to me the Greeks chose the lesser of two evils. On the one hand, with a yes vote, they face 30+ years of austerity paying off those stupid debts. Like the Greeks will stay in Greece for that? Unlikely. The country will be hollowed out by emigration and the banks will never collect. On the other hand, the Greeks have done what Iceland did a couple of years ago – told the banks to blow. Sure it’ll be tough for a couple of years, but Iceland is back on its feet and Greece will recover as well, using their own currency and not that elitist-inspired Euro.

This may be the beginning of the end, not for Greece or the other wobbly members of the EU, but for the Euro. And not a moment too soon.

#206 Obvious Truth on 07.06.15 at 9:06 am

There’s no way out of the monetary Union. It’s like a state leaving the usa.

You restructure the debt. That’s it.

Merkel doesn’t control the money. She’s not the president of the eurozone and ecb chief. She has played this really poorly. And she knows it. She’s doing the same in the Ukraine.

She is losing all credibility in Europe. Her finance minister is right behind her. They mishandled it all right from the start many years ago. And have made mistake after mistake.

Imagine Greece and one or more countries gets hung out to dry by the ecb. Then imagine they continue to use the euro. They lose control of their currency. ECB has to do their job or they make themselves irrelevant.

The real negotiations start now. Despite the ridiculous rhetoric. Did people actually think Europeans would get along? They don’t. It will take generations. Merkel and Schauble are dinosaurs. They are the ones that should resign. Dictators with no honour.

Europe needs visionaries to create a better functioning Union. Not thoughtless bullies.

#207 JacqueShellacque on 07.06.15 at 10:17 am

An interesting lesson about debt, I suppose, which may be applicable even to personal finances. The best situation of all is to have none. Greece’s situation actually isn’t all that terrible – they owe enough to be able to influence the terms. The worst position would be to have some, but not enough to have leverage over your creditors. When it comes to debt, refuse to partake or snorfle til you can snorfle no more.

Their creditors will need to play ball. At the sovereign level, debt isn’t a moral obligation per se. It’s an agreement on future value. Creditors agreed to lend to Greece, with both sides thinking the debt would be worth a certain amount down the road. Turns out it won’t be. Now that the future value turns out not to have been what both parties agreed they believed it would be, they simply need to adjust their expectations. My sympathies are certainly not on the side of the profligate, but neither do I believe there’s any value in allowing transnational organizations to get away with dressing their demands in moralistic terms, especially since the money was most likely lent as a form of expediency for some aim anyway.

#208 A. Paul Gill on 07.06.15 at 10:20 am

Suicide or Servitude? Greece was the birthplace of democracy. The people have spoken. Will they be punted from the EU? No. The solution is for Greece to give up Cypress and for the EU to let Turkey in by having to fund Greece debt as the price of admission. Simple.

#209 Nora Lenderby on 07.06.15 at 10:30 am

#181 Ole Doberman on 07.06.15 at 12:11 am
Well so far gold the safe haven is not responding to Greece – only question is what does it mean basil?!

The futures market in basil is not nearly well enough developed, imo. We could have a disaster! I mean, there could be a world shortage and then what? It doesn’t grow on trees!

The stuff that tress grow is often more useful. — Garth

#210 Westcdn on 07.06.15 at 11:06 am

I am on a bit of rant probably because of Greece:

I think Politicians/Elites should be forced to be certified under the Peter Principal to prevent a person rising above their level of competence. We have given the “elites” too much of a free ride but that is more of a question of why we prefer be followers. Well, we don’t have to be thinkers when we get what we want – ignorance is bliss. Willful blindness comes to mind. It is funny lawyers/politicians think they make good stewards of everything when they determine rules to be followed.

Times are changing and the “rules” being tossed aside. Can you imagine the panic among elites when they are told they won’t be paid or be taxed? It cuts both ways though. If they aren’t paid, they won’t meet their promises – pensions. The CPP is in good shape for now but it was only intended to supplement. People were supposed to manage their own future and I am fine with that rule. I do resent people changing rules to manage their present.

I know life is not fair but it has always been that way. I have never liked whining so quit being a follower and challenge the status quo. I prefer self-reliance and resolve over being “managed” – time to read Animal Farm or 1984 again.

I also think large corporations are tax cows and should be rewarded for their compliance to rules regardless of NDP thinking. Our government could not exist if large corporations failed to remit taxes. They are the best tax collectors of employment deductions and GST. Consultants in the FIRE industry (self-employed), other than drug dealers, seem to think taxes are for other people. As the queen of mean (Helmsley) said – taxes are for little people.

#211 Shawn on 07.06.15 at 11:09 am

About Greece – Yawn…

U.S. stock markets to Greece as of 11 am eastern… yawn…

As Garth had said this was yesterday’s news and was never going to roil North American markets.

If Greece leaves the Euro they can presumably completely default on their debt and never pay any of it.

Greece apparently wants a deal that will see the debt cut to some level such as 70 cents on the dollar or whatever. And no mandated austerity such as cuts to pensions.

Seems to me that Greece has some real bargaining power here.

I suspect we will see a better deal proposed by the creditors this week.

Meanwhile… from the point of North Americans it is just entertainment. Yawn…

#212 PR on 07.06.15 at 11:20 am

All these plans were public and were set up with the funds advanced by the Europeans who were not sure what the Greeks did in their claims for more money …
The Greek State did not know either how much he had employees on its payroll, 500,000 or 1 million , but so what? We ended up interest in it and discover that the dead were paid . The presence in the office is optional, what mattered to the bottom that we pay dead or alive …
Greek taxation was also optional. Taxes were payable by the simpletons and large Greek companies were moving off-shore on their own soil .

Not to mention moonlighting and corruption which gave the whole a portrait perhaps chaotic but who cared ? Other People’s Money flowed freely . 230 billion Euros in recent years . And it is not over …
But then, nothing goes . Hundreds of stories have cast a harsh light on the sweet Greek reality . The major German , French and British media have unveiled the abyss into which money was thrown honest European taxpayers. Pensions, social programs, fictitious jobs …
It is surprising that does not emphasize all these excesses while Greece , voting No, shows his ass to Europe … that can not be excluded .

#213 Bottoms_Up on 07.06.15 at 11:48 am

#166 Smoking Man on 07.05.15 at 10:40 pm
——————————————————–
FACT: our globe is experiencing warming.

FACT: 97% of climate scientists ascribe the majority of the warming to human activity.

This is because carbon in the atmosphere acts as a green house gas (oh boy, another fact). The graphs clearly show humans dumping carbon into the atmosphere over the past 2 centuries.

#214 Bytor the Snow Dog on 07.06.15 at 12:02 pm

Greece is but a small fish in a big pond. So why all the sturm und drang? Ole Bytor will tell you.

You see, the banksters, the moneymen, the carpetbaggers, the elite (but I repeat myself) are VERY concerned that you, the ignorant masses, are awakening to their scams. They are worried, very worried. Let ’em eat cake type worried.

More of us need to stand up like the Greeks.

#215 Bytor the Snow Dog on 07.06.15 at 12:06 pm

Oh, and one more thing, for saskakook.

Hey big fella, I’m on this computer today at this hour because I’m not at work. I’m enjoying week two of my six week taxpayer funded vacation stolen from you via proxy violence.

Cheers!

#216 DW on 07.06.15 at 12:18 pm

#64 Van real

There is a certain pride that goes with Vancouver real estate. Stay humble and listen to whats happening in other parts of B.C

# 44 Black sheep

You sound like your from vancouver too?

Victoria Real Estate Update, keep up the good work and ignore the negative posters. Enjoy your updates and the wilting always starts from the edges.

#217 Holy Crap Wheres The Tylenol on 07.06.15 at 12:27 pm

#167 Obvious Truth on 07.05.15 at 10:40 pm

I’m thinking Jimmy the Greek is a sin o nam for Smoking Man.
__________________________________________
Hell ya, I just recalled Demetre is Greek for the anglicized Jimmy. So do we call you Smoking Jimmy, James, or just plain old Smoking Jim. You told us about a restaurant called Jimmy the Greek on Lakeshore before, I’m thinking your the owner now? You said the best breakfast hands down, so how is the souvlaki?

#218 maxx on 07.06.15 at 12:57 pm

#43 Rainclouds on 07.05.15 at 4:42 pm

…..”-17c a liter of fuel is already a Transit tax BUUUT goes to general revenue (we all know how that WORKS)”

“General Revenue” ought to be overseen and run by an independent army of pit bulls with nit combs. Far too much loosey-goosey bs underpinning management of taxpayer dollars- with auditors having little to no backing, never mind teeth.
Austerity……..my a$$. There is plenty of money for the social programs of this country’s citizens. Plenty for pensions, health care, post-secondary education, R&D…..for all phases of life.
Wholesale government waste is at the core of this resulting “austerity”.
Inflated egos espousing vanity projects, little to no austerity when it comes to, for example, adding photo I.D. and applying a verification process for healthcare cards, ridiculous tax credits for fitness programs when kids ought to be fed less processed crap and be booted out into the fresh air and sunshine to play….the list is virtually endless.
The people of Greece are beyond fed up. This country is definitely in dire need of a good internal house cleaning without actually inflicting excess pain upon its people.
Great economies start from the ground up, always. If macro management got this, economic synchronization of world economies would be far less painful, if at all.

Austerity: a sorry excuse for the fallout of government waste.

Orange juice, gold-embossed business cards, limos or a junket abroad, anyone? There are other goodies if you prefer…………….

#219 i.see.debt.people on 07.06.15 at 12:59 pm

Times are verrrrry interesting. Stick a fork in it, Greece is done.

#220 Dogman01 on 07.06.15 at 12:59 pm

#144 Henry on 07.05.15 at 9:28 pm
The big losers in this fiasco is the Wall Street hedge funds who bought Greek debt for cents on the dollar hoping to get a 100 % on the dollar. I hope these despicable parasites loose billions. I don’t know what the Greek word for it is, but the German word is : Schadenfreude!!

———————————————————-

My bet is the private debt holders already tossed this mess onto the taxpayers of the EU. They take the profits and none of the risk.

Remember our modern “free market” mantra;
“Socialize losses, privatize gains.”

#221 Nagraj on 07.06.15 at 1:00 pm

Greece was ruled by a military junta from 1965 to 1974. Its treatment of opponents was physically brutal. Murder, torture.
But it kept the lights on, the water supply efficient, and the trains running on time.

Military dictatorships last only as long as necessary to maintain order. They are the final resort of a society in which no social element is strong enough to hold power and govern.

The press here talks about Greece as if it were a completely homogenous, unitary societal construct. But history suggests that Greece suffers serious class conflict.
The seeming inability of Greek gov’t to keep the banks open (and avoid theft known as bail-ins) is dangerous, riots are a possibility.

Socialists hold that the current Greek gov’t is a bourgeois wolf in Leftist disguise. The Greek military supported the yes referendum vote. There’s more to the Greek crisis than is dreamt of in media philosophy.

#222 Jim Porter on 07.06.15 at 1:03 pm

Vancouverites turned down TransLink’s plan to set up a permanent, massive sales tax to fund the corporation based on its loose and revisable “vision”. After witnessing TransLink’s ongoing demonstration of incompetence, blatent waste and contempt for ratepayers, who in their right mind would sign such a blank cheque? Vancouverites know that they need to fund transit operation and it’s growth, and they will. They have merely objected to the method by which TransLink and many of the municipalities tried to use to take their money. A more accountable approach will win the day sometime down the road, so long as TransLink can demonstrate their ability to competently run their business.

#223 David on 07.06.15 at 1:04 pm

The Greek drama has been going on for 5 years now. The Euro bankers are pretty much offering the Greeks permanent austerity. Its too late to say Greece should have not adopted the non sovereign Euro currency.

http://www.counterpunch.org/2015/07/06/greece-rejects-the-troika/

#224 Has anyone seen this? on 07.06.15 at 1:08 pm

#213 Bottoms_Up on 07.06.15 at 11:48 am
#166 Smoking Man on 07.05.15 at 10:40 pm
——————————————————–
FACT: our globe is experiencing warming.

FACT: 97% of climate scientists ascribe the majority of the warming to human activity.

This is because carbon in the atmosphere acts as a green house gas (oh boy, another fact). The graphs clearly show humans dumping carbon into the atmosphere over the past 2 centuries.
——

http://www.drtimball.com

(most of these scientists you speak of are not “climate” scientists. Dr Ball is a climate scientist)

#225 Obvious Truth on 07.06.15 at 1:16 pm

http://www.marketwatch.com/story/after-greeces-no-vote-let-the-punishment-begin-2015-07-06

Good balanced peice on Greece. It’s not about the money anymore.

Lagarde has backed off. Will Draghi be the scapegoat. I think he’s too smart.

#226 Rate cut coming on 07.06.15 at 1:18 pm

Rate cut coming….to help out Oil buddies in Alberta.

#227 devore on 07.06.15 at 1:27 pm

#181 Ole Doberman

Well so far gold the safe haven is not responding to Greece – only question is what does it mean basil?!

It means nothing. But surely, surely! when the FED launches the FOURTH round of QE gold is going to the moon this time. To the MOON I tell you!

#228 Herb on 07.06.15 at 1:28 pm

“If it were fact, it wouldn’t be intelligence.”

(Then-Director CIA Hayden in response to a question from his wife during the work-up for Iraq II, cited in Woodward, Plan of Attack, p. 219.)

On Greece, all we know is what interested parties are prepared to let us know through the media, in other words, spin. Any speculation based on this is less than intelligence. We can be gullible and accept what may strike us as congenial, or we can withhold assent until facts regarding causes, motives and effects emerge.

All we are doing in speculating is advancing spin in one direction or another.

#229 TRT on 07.06.15 at 1:34 pm

Oil dropping due to Tonights upcoming China Stock market crash…not Grexit!

It has nothing to do with either. — Garth

#230 Vancouver teacher on 07.06.15 at 1:38 pm

It was the right wingers in greater vancouver that voted out the tax increase for better transit… Those who don’t belive in paying taxes ,who drive their huge cars to work everyday… Don’t lump them in the same category as the sane people who voted out the conservatives in Alberta. As for Greece ?????

#231 Smoking Man on 07.06.15 at 1:58 pm

#213 Bottoms_Up on 07.06.15 at 11:48 am
#166 Smoking Man on 07.05.15 at 10:40 pm
——————————————————–
FACT: our globe is experiencing warming.

FACT: 97% of climate scientists ascribe the majority of the warming to human activity.

This is because carbon in the atmosphere acts as a green house gas (oh boy, another fact). The graphs clearly show humans dumping carbon into the atmosphere over the past 2 centuries.
……..

How many years you been on the planet? I don’t give a rats ass what so-called scientists think. Shove your agenda funded facks up the darkside of the moon.

Been here, 55 years. Weather the same, lake Ontario same, Daytona Beach same.

This is were you have been sucked in like a midget playing a tuba.

The Herd needs a cause, its in our nature, before they taught god stuff, hard to swallow for anyone with two brain cells to rub together.

Climate change is good one, you fight for the trees. It went very quite after climate gate, but memorys are short and its back with a vengeance.

You see, this nose of mine can distinguish the difference between the aroma of bull shit, and blue sky.

Know this, the last cause the machine wants you to take up crusades against is why your wallet is so empty while youve never worked harder.

Join the party, be in the gang, make Suzuki , Jane Fonda, and All Gore richer.

Burn the Confederate Flag, Symbol of Rebellion, host the rainbow Flag, soften your voice, learn to giggle, wear pink boxers.

As for me, I’ll be alone in my gazebo, drinking and having the time of my life pointing out how truly stupid man kind is.

Dr Smoking Man
PhD Herdonomics.

#232 TRT on 07.06.15 at 2:05 pm

Oil dropping due to Tonights upcoming China Stock market crash…not Grexit!

It has nothing to do with either. — Garth

We will see tonite. It’s the same reason that U.S. Bond yields are crashing in the last hour. The U.S. Plunge protection team will be in full control in about an hour.

How’s the summer going on your planet, anyway? — Garth

#233 Llewelyn on 07.06.15 at 2:20 pm

There is a rumour going around that Canada’s AAA rating for government bonds is linked to performance of the Canadian economy. I sure hope this rumour is false.

After months of declining GDP and no real recovery in the price of the oil our economic reputation is getting a bit tarnished.

We may read concerns being circulated by a number of bond rating agencies about the high level of household debt and a possible housing bubble in Canada but remain confident that our low interest rate policy is sufficient to protect our AAA rating forever.

Canada may be seen as a ‘safe haven’ for institutional investors for now but lack of GDP growth and a potential housing bubble are not indicators most investors look for when purchasing sovereign debt.

Canada seems to be caught in an interesting dichotomy where interest rates are being kept low to protect our economy from declining further with the knowledge that low interest rates will encourage Canadians to incur additional debt in the form of over valued mortgages.

Where is the tipping point that convinces bond rating agencies to act on their warnings and downgrade the rating for Canadian bonds?

What happens if the rating for Canadian sovereign debt is downgraded.

I hope someone at the Bank of Canada is looking into this possibility, it seems relevant.

#234 straight six on 07.06.15 at 2:22 pm

delusional Vancouverites voted down a tax funding the future.

are you referring to giving incompetent translink even more $$?

suggestion: why didn’t TL simply install turnstiles when they built skytrain over 25 yrs ago.. that people can’t breezily step over! maybe then they wouldn’t need a tax increase.

#235 bdy sktrn on 07.06.15 at 2:26 pm

FACT: 97% of climate scientists ascribe the majority of the warming to human activity.
———————–
and 99.9% of then have a pay cheque dependant on propagating this theory

#236 TRT on 07.06.15 at 2:27 pm

How’s the summer going on your planet, anyway? — Garth

It’s smoking. Smoke everywhere. Oil now down $4 + and dollar about to hit the 78 cent range. Only thing not burning is the Vancouver housing market. What gives?

#237 Has anyone seen this? on 07.06.15 at 2:28 pm

#230 Vancouver teacher on 07.06.15 at 1:38 pm
It was the right wingers in greater vancouver that voted out the tax increase for better transit… Those who don’t belive in paying taxes ,who drive their huge cars to work everyday… Don’t lump them in the same category as the sane people who voted out the conservatives in Alberta. As for Greece ?????
——-
http://news.nationalpost.com/full-comment/national-post-view-government-is-too-big-and-its-breeding-incivility-among-public-servants

(Right wingers? Really?)

#238 William on 07.06.15 at 2:31 pm

Intestesting Kaiser Report about housing bubble.
https://www.youtube.com/watch?v=rNAgpkzRmqI

#239 Millmech on 07.06.15 at 2:33 pm

VREU,
I know I don’t run this blog,just giving you some feedback with a bit of humour,it was not intended to offend and if I did I apologize.

#240 tkid on 07.06.15 at 2:44 pm

Shove your agenda funded facks up the darkside of the moon.

Love this line!

This is the best rant / post I’ve come across all day.

Is anyone else bored with Greece?

#241 straight six on 07.06.15 at 2:45 pm

#166 Smoking Man on 07.05.15 at 10:40 pm

respect=lust..
I respected Jane too.. when she was Hot!

the root problem.. there’s no longer checks and balances for the species at the top of the food chain with nothing to do but flap their gums and breed.

#242 Toronto_CA on 07.06.15 at 3:01 pm

I didn’t expect oil to get so clobbered today. Down -7.76% as I type this after weeks and weeks of pretty stable ~$60 a barrel it’s now closing in on $50 again.

So yeah, rate cut could come. The Banks are calling for it.

#243 OXI in GREECE !! on 07.06.15 at 3:37 pm

I found this post online and found it interesting that it makes sense that Donal Trump would make a fine president for the “current” USSA.

“I really could care less if Trump will make a good president, since the feminist state is doomed to destruction unless we can do the impossible and elect an anti-feminist president and congress who end the war on men, and overhaul the feminist legal system to restore the rights of men and children in America.
That said, we need a legitimate protest vote to let our Manhattanite rulers know that they do not rule with our support, and are in fact at war with their own men upon whom they rely for the building, maintaining and protecting of this dystopian enterprise.
Trump is the best candidate for that job.
1. The Republican Party hates him.
2. He is a divorce rape survivor.
3. He knows from personal experience that the FED and Wall street are corrupt and are looting the cuntry.
4. The media hates him.
5. The Banko-Bolshevik first wave colonizers who now rule hate him.
6. Their second wave 3rd world colonizers hate him.
7. The Republican Party collaborators of the Bolsheviks hate him.
8. The Banksters hate him.
9. The Feminists hate him.
10. The Democrats hate him.
11. BushRomneyRubio hate him.
12. He cannot possibly be worse than BushObama.”

#244 TurnerNation on 07.06.15 at 3:54 pm

S and Pee just cut Ontariowe’s debt rating.
Killing us softly.

#245 maxx on 07.06.15 at 4:10 pm

#65 Property owners always win in Canada on 07.05.15 at 5:48 pm

“Prediction…….

Us ..rates 0.25 by year ens
Canadian rates 0.25 by ears end
CDN at .67 US
Real estate in canada 15%higher 12 months form now!!!!
Enjoy rent increases my dear diversified folks folks
#66 Property owners always win in Canada on 07.05.15 at 5:49 pm

Correction to previous…..

Us ..rates 0.25 by year end
Canadian rates 0.25 by years end”

And:

Real estate in C-canada 15%higher 12 months FROM- form now!!!!

Also: delete the extra “folks”

BTW, the stampede is missing a pizza topping.

#246 Janice Boing Boing on 07.06.15 at 4:19 pm

“Greeks should have to give 2.5 Drachmas or new Greek currency for 1 Euro. This is their real value not what I pointed in my post above.”

Naw….the Greek Drachma was 10 to a $C before it went into the Euro….and prices inflated like Montgolfier ‘s balloon. Before the Euro a bottle of wine was 50 cents and a room was $2 a night. Greece is a backwater with zero industry aside from tourism…the currency should be valued lower than countries like Mexico or Thailand that have real economies.

Garth…I think you got it all wrong. The times are much the same as they’ve always been….this is the unfolding of a time in an investors life where a rare opportunity to get everything cheapo has landed in our laps…only it will take an astute watcher and involved chartist to real huge profits from the panic.

This is a time where having borrowed to invest fully in a balanced portfolio to live off the LOC will work against you. This is a time when cash on hand becomes doubly valuable. I woke up to this mess in Nov ’14….as the record states and took my cash position past 35%. I am literally drooling as I watch so many babies being thrown out by panicking retail punters.

The Greek ‘No’ vote has consigned a generation of young Greeks to emigration, hopelessness and prostitution. This vote will easily make me another million when the realizes that Greek votes and Obama Gaffes mean nothing to the patient investor.

#247 Randy on 07.06.15 at 5:05 pm

PanAm Games Winnipeg in 1999, $120 Million, Toronto in 2015, $2.5 Billion Oh well that only about a 2000% increase.Must be inflation ‪#‎onpoli‬

#248 Bottoms_Up on 07.06.15 at 5:12 pm

#235 bdy sktrn on 07.06.15 at 2:26 pm
———————————————-
You mean as opposed to the vested interests on the other side of the debate that are making money off carbon pollution?

And ps, a theory becomes a fact when enough evidence has accumulated to prove it. I’ve got news for you, humans are the predominant force contributing to global warming.

You can choose to side with those that choose to believe we didnt put a man on the moon. Despite the efforts of 300000 nasa employees. You can choose to side with those that think 300000 public health officials are trying to poison your kid with vaccines. And you can continue to believe that 300000 climate scientists are lying to you.

#249 the hammer on 07.06.15 at 5:35 pm

Bytor the Snowdog #215
I would be careful about flaunting the advantages you have gained at the expense of other people, though I have to say you are not the first I have heard do this. (I had to listen to a drunken teacher crow about his wife’s and his combined pension being like having 4 million dollars in the bank…they have a home in France…)

I have spent 44 years making my way through the industrial intestines of North America and have never had a paid sick day, paid vacation or a paid day off. My wife and I have never made more than $80,000 combined in one year and we have 1.5 million liquid. I don’t think you could possibly imagine what was required to accomplish this or how much your self satisfied comment is resented by people who work in the private, blue collar sector.

So, as a life-long member of the proliteriate, I hearby proclaim that public sector employees cannot ‘stick it to the man’ because forthwith, they are ‘the man’. And so it is done. You are no longer Bytor the Snlowdog, but Mini-Greek, the Rococo socialist.

Oh, and keeping to the Greek theme…if you would like me to contribute to expanding you entitlements, all I can say is “Molon Labe”.

yrs trly

#250 bdy sktrn on 07.06.15 at 5:37 pm

I’ve got news for you, humans are the predominant force contributing to global warming.
————————–
and caveman flatulance ended the ice ages?

climate scientists are failed real scientists. they know little of energy/enthalpy/entropy or how to find their asses in the dark.

#251 bdy sktrn on 07.06.15 at 5:44 pm

didnt put a man on the moon. Despite the efforts of 300000 nasa employees. You can choose to side with those that think 300000 public health officials
—————————-
both nasa and medicine use real science – i don’t hear weekly alarmist nonsense from either.