Go for it

BUM modified

The morning after the morning we know who the next prime minister will be, the Bank of Canada takes centre stage. On October 21st the bank will make its next rate announcement, accompanied by a full-blown press conference and release ot its latest ‘Monetary Report.’

So what?

So expect some great political theatre because, as much as I regret to say this, our big bank is leaning towards another cut its key interest rate – an unprecedented third decrease in the space of one calendar year. This would not happen if the economy was recovering, or even breathing on its own. There is but one reason why these guys would move in the opposite direction to the US – condemning our dollar, risking more household debt and underscoring political failure – and that is the malaise around us. The one most people don’t see. Our own little zombie apocalypse.

Makes you wonder what Canadians are thinking. Commodities prices have plunged to 1999 levels. Oil is $45 on a good day, with Canadian crude down around $30 and our producers losing money with every barrel. Now Hilary Clinton says there’ll never be a Keystone pipeline, and even the Chinese are jumping into the cap-and-trade business. The world has run out of places – storage farms, offshore tankers, underground salt caverns – to store the stuff. And ‘dirty’ Canadian oil is falling out of fashion faster than that Korean pony-dance guy.

Economic growth in Canada this year will be, maybe, 1%. That’s half what the federal budget just six months ago forecast. There is no way any government elected next month is going to balance the books. And as the commodity trade dips – putting oil patch workers, miners, shippers and service contractors out of work – a greater percentage of our economy ends up being based on residential real estate. If we could export condos and slanty bug-imbued semis, we’d be cool. But this is all going in the wrong direction.

For example, in Calgary the office vacancy rate has soared to 13% downtown (and 11.5% in Edmonton), and yet there’s more than five million square feet of new space under construction. Like oil, when supply overwhelms demand, prices tank.

Residentially, the pain has just started. House sales so far this month are running 32.7% behind this time last year (which wasn’t great), with listings rising and the average price down 5.2%. Former realtor and housing analyst Ross Kay argues that realtor stats are hiding what has been a far more precipitous drop in average prices, and even local permabull blogger/broker Mike Fotiou admits, “It’s shaping up to be a frosty September for Calgary real estate.”

But, you cry, I don’t live in Cowtown! I don’t care!

You should. This is a proxy for what happens when the locals start understanding the local economy’s on the down escalator. It’s a potential outcome for us all. The Bank of Canada can drop interest rates to zero, and the impact will be negligible if people grasp the reason for the cut, and what lies ahead. There’s no good news to be gleaned from such a policy decision, only an admission the guys in Ottawa are trying to staunch the flow of blood. And this will happen less than 48 hours after all the promises, rhetoric, assurances and political endorphins have turned into a post-electoral hangover.

Ponder that when you vote.

Also, if I were thinking about selling my house, I’d seriously consider the next 22 days. Just sayin’.

By the way, it’s too late for poor Brad. He just sent me this:

“I know it’s a mistake.  I knew it when I signed the contract a year ago to build it.  Bought it anyway.  Every single one of my beliefs has been confirmed, which leaves me to wonder – how are we so delusional as a society?  I’m not delusional – I know it was a mistake.  Which (sigh) makes me an idiot instead.

Every single thing I knew before about Buying vs. Renting still holds 100%:

— Lower cash flow (much lower) every single month.  True.

— More expenses each month.  True.  Unless I decided not to properly budget for annual taxes, insurance, and maintenance.

— “At least I’m Building equity!”  False.  The equity currently in my home would otherwise be equity in a diversified portfolio.  Either way, personal net worth can grow, so the “home equity argument” is completely without merit.  Not to mention that one of those paths isn’t relying on a single asset to build wealth.

— “At least I’m not paying somebody else’s mortgage now!”  False.  Rent and interest expense are both expenses – one is no worse than the other.  The interest on my mortgage is most certainly paying the mortgage off for “somebody.”  People relentlessly scoff at the idea of paying someone else’s mortgage and say nothing about the billions in profits made each quarter by our big banks.

— Less mobility, less flexibility, more stress.

So why buy?

Over 40 now.  Clock is ticking. Tired of not having my own place.  That. Is. It. So I ignored all of it.  Even ignored the current economic situation, and struggling oil prices on top of everything.

I get people falling into the house lust trap.  I really do.  I wasn’t lusty about it, just tired of the alternative.  If someone is 25 and buying a house in Calgary right now, they are making a (financial) mistake.  No doubt in my mind. People need to be honest about one thing… buying now is all about stroking the ego.  It’s all about pride… logic be damned. Trying to say otherwise, trying to make the financial argument, is just being delusional.  Or a liar.

Buying a home in Calgary is not a good investment.  Not today.”

180 comments ↓

#1 Future Expatriate on 09.27.15 at 2:36 pm

They’ll be a Keystone pipeline… it will just be going through BC. Shorter route to China anyway.

#2 For those about to flop... on 09.27.15 at 2:51 pm

The world has run out of places – storage farms, offshore tankers, underground salt caverns – to store the stuff. And ‘dirty’ Canadian oil is falling out of fashion faster than that Korean pony-dance guy

—————————————-
Whoop ,whoop, whoop that’s Garth’em style!

#3 Bobby on 09.27.15 at 2:55 pm

Can you comment on the commercial real estate prices and rents, as at the last cooler talk a fellow was trying to sell me on the idea that its easy money right now. Put 100G in and guaranteed 165G out. I’m thinking not likely, when I asked the details he seemed quite confused how the 65G on top would come to him..

#4 Tax the rich on 09.27.15 at 2:55 pm

Why CRA is letting the house profits tax free? To stop speculation tax 80% of the price difference if you sell in the first 2 years after buying, 60% in the next 2, 30% in years 5-6 and 0 after that. Thats how you stop speculation and beef up the government coffers. At the end of the day the government has invested in the utilities that provides for the location of the house.

#5 Tax the rich on 09.27.15 at 3:00 pm

And doing that you minimize the exposure of CMHC. The problem i see is that since you tax capital gains you can ask for a capital loss refund as well.
Elections cannot come soon enough, i remember corectly the housing in USA dropped the most in 2008/09 when aobama replaced Bush. Same here with Tom and Steve, and interest rates were flat in USA too

#6 Porsche on 09.27.15 at 3:04 pm

#1 Future Expatriate

You’ll be long dead before that/if/ever happens

#7 Nick on 09.27.15 at 3:07 pm

Garth is right. People should fear the status quo, fear the continued malaise in economic growth, fear falling RE prices, fear rising interest rates, fear losing one’s job, fear the falling dollar, fear rising inflation….CONS have nothing to offer but selling fear of change. Yet change is the one thing Canada needs, as they say, repeating the same mistake multiple times is a sure sign of insanity.

#8 Nancyboy on 09.27.15 at 3:13 pm

Would now be a good time to get a builders mortgage and build your dream home?

#9 David Lee on 09.27.15 at 3:20 pm

But we do export condos… think about it.

#10 Tax the rich on 09.27.15 at 3:20 pm

Ok ok last one for today…
If Poloz drops .25 and Yellen hikes .25 next month what is gonna happen to Canadian pesos?

#11 Peter Menard (@_pmenard) on 09.27.15 at 3:23 pm

Not looking that rosy for REITs then is it?

#12 Bob Santarossa - Payroll Report on 09.27.15 at 3:28 pm

You have to wonder how long BC and ON can keep chugging along with the numbers that follow.

Consider that for half the period reporting, we were not in recession. This does not look good for Brad or the rest of us.

July 2014 to July 2015
Table 2 – Number of employees – Seasonally adjusted % change

Newfoundland and Labrador 1.3
Prince Edward Island 1.3
Nova Scotia 1.3
New Brunswick -0.6
Quebec 0.4
Ontario 2
Manitoba -0.3
Saskatchewan -0.5
Alberta -0.6
British Columbia 2.3
Yukon -1.9
Northwest Territories -0.6
Nunavut -2.8

and some of these:

July 2014 to July 2015
Table 2 – Number of employees – Seasonally adjusted % change

Mining, quarrying, and oil and gas extraction -9
Utilities -2.3
Construction 0.5
Manufacturing 0.9
Wholesale trade 0.8
Retail trade 0.2
Transportation and warehousing 0.1
Real estate and rental and leasing 2.3
Management of companies and enterprises -2.1
Health care and social assistance 1.4
Arts, entertainment and recreation 4.4
Accommodation and food services 2.9
Other services (excluding public administration) -0.3
Public administration -0.6

#13 Ender on 09.27.15 at 3:29 pm

October/November are also timely months for corporate reorgs and layoffs.

#14 dr. Talc on 09.27.15 at 3:34 pm

@tax the rich.
Those are not profits.
Those are the fruits of inflation.
Inflation is built into the system
Inflation is a hidden tax.
Inflation is already taxed -by percentage based hst mva etc.
So its a tax on a hidden tax and you want to add a tax

#15 A Nobody on 09.27.15 at 3:35 pm

Maybe buying RE in Calgary is a mistake but not the GTA.

People pouring in from all over the world everyday and now the dis located from Calgary as well to boot.

Interest rate cut in the horizon as Garth has mentioned.

Up up and away with prices we go !

#16 saskatoon on 09.27.15 at 3:46 pm

#4 Tax the rich

dude:

think for a second:

the housing bubble problem has been CREATED by big government policies.

should the solution–as you suggest–be more (bigger) government policies?

#17 jean on 09.27.15 at 3:51 pm

REALLY shocking article in Globe & Mail. Advising young people to hurry up and buy now and don’t build up a deposit because if they wait they will always be behind and never catch up to the market. Shocking…

http://www.theglobeandmail.com/globe-investor/personal-finance/mortgages/some-housing-markets-too-hot-for-traditional-down-payment-wisdom/article26532772/

#18 cookiemonster on 09.27.15 at 3:52 pm

WTI oil price is 45 USD, which is 60 CAD. I remember in 2005 when WTI oil price climbed to 40 USD, CAD dollar was 0.82 USD dollar Calgary was “booming” because it had gone up to 40 USD.
Now we are being told that the Canadian oil industry is doomed.
It’s all politics, people fighting for the profits. Scaremonging by the right: don’t dare raise our taxes or royalties or we will create financial havoc not only in Alberta but in the whole of Canada. We had 10 years of record profits and we like it like this.

#19 Washed Up Lawyer on 09.27.15 at 4:03 pm

And in Cowtown, it begins anew. Two engineers, an accountant, a geologist, a leasehound and a retired tool push form a junior.

Buy 1000 bbl/day production, some undrilled acreage, some seismic and office space (all on sale now) and down the road (when???), some green shoots rise.

The big guys falter and liquidate and the young guns, skidded by management but driven by optimism and intelligence move on.

Seen it before many times in the Famous Stampede City in the Valley of the Bow.

#20 Frank on 09.27.15 at 4:03 pm

Not to get political but the Liberals released their platform and it was actually kind of refreshing. Updated revenue projects, being honest and admitting we’ll be posting at least one deficit.

I don’t like all the spending but I appreciate the honesty. The CPC is touting the same surplus line as in March and are hoping people haven’t notice the GDP shrink. The NDP is just saying whatever they think will get them elected.

At least the liberals are being honest with people. Kinda.

#21 Sheane Wallace on 09.27.15 at 4:08 pm

Markets, not politicians should determine the cost of money.

Otherwise it is not money (and it really isn’t). Money should cost as mush as we, the holders of money determine, not how much BOC thinks.

It is clear that the people at the helm of BOC are very incompetent, if they really cut in October just watch the ‘loonie’ going down in the 60-ish range

#22 Retired Boomer - WI on 09.27.15 at 4:11 pm

Brad-

Try not to feel like the First Class idiot you are for building the house. If it is any consolation my portfolio has been taking gas for a few months now basically down 5%.

Hey that is similar to Cowtown real estate I hear! Well, if our Janet (ain’t yet Jellin’) Yellen might have stood by her words for that Whooper .25% interest goose-up maybe things might look different. No, probably not with China, and all of Europe in the crapper! Hey, we the US might be the best looking horse in the economic glue factory just about now. Never fear, we’ll hit the skids with the rest of you shortly.

We have more debt than we can pay, but nobody yet believes in reality.

Enjoy the house, you would be broke anyway big guy.

#23 Marco on 09.27.15 at 4:18 pm

@Future Expatriate
“They’ll be a Keystone pipeline… it will just be going through BC. Shorter route to China anyway.”

Why?

With the relatively new Russia-China oil and gas deal.

Cheers.

#24 Patrick on 09.27.15 at 4:33 pm

“The Bank of Canada can drop interest rates to zero, and the impact will be negligible IF people grasp the reason for the cut, and what lies ahead”
____________________________________________

That’s a pretty big IF. I don’t think people will. It’s called being irrational for a reason. Brad said it best:

“logic be damned”

#25 Smoking Man on 09.27.15 at 5:10 pm

#9 Tax the rich on 09.27.15 at 3:20 pm
Ok ok last one for today…
If Poloz drops .25 and Yellen hikes .25 next month what is gonna happen to Canadian pesos?
……

Smoking Man makes another million.

#26 VB on 09.27.15 at 5:10 pm

re: #10

rates go down again reits go up…rates go up preferreds recover, nice hedge, just sayin

#27 Bondgirl on 09.27.15 at 5:11 pm

I doubt the Fed will be raising rates this year, or anytime soon. I don’t see how they can, as much as they desperately want to. This is a “caught between a rock & a hard place” situation for them. If the BoC cuts (highly likely), we’ll in fact be moving in alignment with the Fed.

#28 Freedom First on 09.27.15 at 5:11 pm

Sorry Brad, I don’t get people falling into the house lust trap. I really don’t. Keep in mind I am a numbers man and have never had any emotions about material possessions.

Though, I have bought RE when it was a steal. Numbers made me do it. For myself, I prefer to be paid passive income for what I own. When someone pays the mortgage interest on residential or commercial property, or the interest on their LOC, Heloc, LOC, or credit card, I want to get paid. When someone pays their electricity bill, I want to get paid. When someone fills up their gas tank, I want to get paid. When someone pays their rent, I want to get paid. Basically, when someone anywhere in the world buys anything, I want to get paid. Diversification, with no single stocks, but dividend income on everything, is the best easiest safest smartest way to go. Owning other things of value is also good, once a person can live off of their passive income streams. I see nothing wrong with owning everything then.

#29 Even further discounts on Preferred Shares? on 09.27.15 at 5:14 pm

How low can they go? Do I continue to buy on weakness or just wait now..same with the REITs and world stocks? How low can dey go?

#30 Ralph Cramdown on 09.27.15 at 5:16 pm

Ah, the simple joys of maidenhood!

#31 Joe2.0 on 09.27.15 at 5:19 pm

Some US banks giving sucker loans again.
Canada will be no different on their milk the sheeple tactics.
It’s a formula that leaves the little people holding the hat every time.
It’s not different here.
Same banksters different country.
Open the borders.
Rinse and repeat.

#32 ANON on 09.27.15 at 5:29 pm

Over 40 now. Clock is ticking. Tired of not having my own place.

Same here.
However, I used the deadcat bounce since 2008 to get the hell out -and stay the hell out- of any and all debt, as the inevitable was becoming clearer the more I learned stuff and unlearned stories and dogmas. I had no choice but look weird for friends, family, colleagues, the works.
Don’t be hard on yourself, it takes a certain type of personality (not not in terms of better or worse, but in terms of not very common, as in those weird less than 1% who realize BigD is arriving, no matter what).

#33 Londoner on 09.27.15 at 5:33 pm

Soooo…. still calling for higher rates by Thanksgiving?

Canada has gone through only a mild “technical” recession and is now starting to shows signs of growth again. This even while the price of oil has remained suppressed. With rates not destined to rise significantly for a very long time it still gives the younger generation an opportunity to take on bigger risks. If the indications of last weeks poll are correct and we get a Conservative majority then this will only be positive for Canada’s economic outlook. “Go for it” indeed. There’s no indication that what lies ahead will be worse.

#34 Yvrworry on 09.27.15 at 5:33 pm

Well I heeded Garth’s advice and sold my nice Vancouver place and made over a million in profit tax-free. Only time will tell if I made the right decision but hey, no longer paying a $11k property tax along with other household maintenance and having a ton of money in the bank is nice.

#35 Go for it | Realties.ca on 09.27.15 at 5:35 pm

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#36 tkid on 09.27.15 at 5:42 pm

Headline for an article in the National Post: “David Suzuki says Trudeau called his views on climate change ‘sanctimonious crap’ in heated call.”

There’s at least one reason to vote for Trudeau and the Liberals. Harper had better insult Suzuki quick.

#37 espressobob on 09.27.15 at 5:45 pm

Episode two might be of interest?

http://tvo.org/video/documentaries/the-super-rich-and-us/the-super-rich-and-us-episode-2

#38 Linda on 09.27.15 at 5:52 pm

Just to clarify – Mr. Poloz of the BoC is independent of the Gov’t of Canada, correct? Mr. Oliver is not able to order Mr. Poloz to do anything & if the reins of power do switch come October 19 then whoever is the next Minister of Finance can’t order the Bank of Canada about – or am I incorrect & they can do just that?

As for dropping the rate (again) – if it worked for the USA, why can’t it also work for Canada? Also, given that Ms. Yellen has not yet signaled a rate increase, how much longer is the Fed going to continue the path of caution? Another six months? A year? If the Fed continues to not increase rates, does that not buy Canada much needed time to maybe get the economy going again?

I do get that people may snort debt up both nostrils until they OD, but to be fair, a lot of people are losing their jobs & not just in Alberta. So at least some of that debt is presumably people tapping out their lines of credit in the hopes they can find another job before they are a financial smoking crater with no hope of survival…..

#39 nonplused on 09.27.15 at 5:53 pm

With the CAD dropping so much, I wonder how much we are going to have to pay for those useless F-35’s we have on order? I hope we keep the F18’s, they will probably be better planes until the aluminum falls apart. In fact the F18 Super Hornet (which we don’t have we have the smaller originals) is probably the best plane the US produces and probably will be for some time. It’s the only thing in the quiver that can challenge a modern MIG 30.

I like the reference to the “pony guy” but even if he falls out of favor he made so much money just off of YouTube he can probably buy his own F-35. Not that anybody would want one a F-18 is way cheaper and a MIG even cheaper still. Same with the “What does the fox say” guys. A song meant to make a joke and ridicule modern music production makes multi-millionaires out of it’s writers. One thing both songs show is that the world is tired of Miley Cyrus.

#17 cookiemonster

One word: “Differential”. Ok a few words to explain it. If WTI is $60, which is a Texas based price at Henry Hub, then Alberta producers get $60 CAD or $40 USD minus transportation, which is by pipeline or increasingly by rail. It can easily cost $30 CAD to get it there so Garth’s number is accurate enough to the point he was making.

#40 Parksville senior on 09.27.15 at 5:55 pm

Congratulations Garth, you are starting to understand economics—and only about 85 years late!

But you are in good company-with any US republican you could name (and lil stevie harper).

If you want to got to Paul Krugman blog at the New York Times, you can read about the liquidity trap, and how you really get screwed when you are trying to goose the economy, and rates are already at zero!

Now Trudeau the Younger seems to be the only Politico who has realized we are bumping up against the limit of monetary policy and the only lever we have left is fiscal policy. Public works and finance them at todays low interest rate–yes you read me correctly–DEFICIT.

But I keep hearing you agreeing with the US Republican senate of 1932 and saying the way to economic nirvana is AUSTERITY, after all it worked so well in Greece. NOT

The Republicans of the 1930’s, R.B. Bennet (of the buggy fame) and Stephen harper al are of the belief their medicine works–too bad the patient died.

Oh yeh, you might want to read up on a guy by the name of Keynes.

Have a good one.

#41 Derrak House on 09.27.15 at 6:06 pm

@ #33 YVRworry

What would you do with the 1 Million if Negative Interest Rates come to a bank near you? I wonder what the common advice would be..kinda getting scary..oh well.

#42 Whinepegger on 09.27.15 at 6:16 pm

Just sold the house last week. Got our asking price which was higher than city assessed value. We got lucky. Closing date October 15th. Will be renting a 1500 sq ft condo for less than the housing costs. Will now have less than 10% net worth in real estate. Let it rain.

Thanks Garth.

#43 Don Derc on 09.27.15 at 6:24 pm

Negative interest rates – heavily discussed in Europe means they’ll be coming to a Cdn ATM near you. Almost as bad as C-51 Where CSIS would now have a legit reason when they are caught spying on us).

Lower BOC rate? Of course. The bloggers have contraried the contrarian. You guys have been mocking Garth for months. I bet I can sell in the spring and get out by the skin of my teeth.

Poor Brad – like I said before, the people who read this blog do not need to read it and the people who need to read it….don’t.

Tdy’s picture – I did the same thing at the women’s FIFA tourney here in the beautifully wrapped lie. I was charged with sexual assault, plea bargained, and did a tearful apology on the 6 o’clock news to beat the rap.

hmmmm……this may end well actually.

Keep those rates low – just for my own personal gain of course.

VIFF this week…dinner anyone? (yes means yes).

No they won’t. There will be no negative consumer loan rates in North America. — Garth

#44 Raging Ranter on 09.27.15 at 6:37 pm

From Poloz’s last speech, I did not get the impression that he was gearing up for another rate cut. His tone was more like,” Everyone calm the bleep down. We’ve survived commodity routes before, and will again.”

#45 espressobob on 09.27.15 at 6:38 pm

#28

Sometimes the best thing an investor can do, is sit on their thumbs! Why invest for the short term?

#46 Edward on 09.27.15 at 6:39 pm

#10 Peter Menard (@_pmenard)
“Not looking that rosy for REITs then is it?”
…………………………
Nor preferreds.

Always amazes me how people expect assets yielding 5% with a tax credit to also give capital gains. Relax. Prefs will come back and meantime they pay you to hold them. — Garth

#47 Retired Boomer - WI on 09.27.15 at 6:41 pm

Hey Brad-

I checked that portfolio. 38% Bonds 62% equities.
Whole thing averages off 7% for the year.

This happens at times. I did not factor in dividends here.
That will lower the loss a tad.

3rd year of a presidency, historically a weak investing year. So this one follows trend.

If Canada cuts prime rate next month, you might try peddling the house. LAST time idiots can bail free, dude.

#48 vanstam on 09.27.15 at 6:41 pm

Took a taxi on Wednesday to an appointment in downtown TO. Spoke with the cabbie about business expecting the Uber rant. He did complain, but not about what I was expecting. His business is down because a lot of his regulars have been laid off in the last few months. Always listen to the man on the street.

#49 Future Expatiate on 09.27.15 at 6:46 pm

#6 Porsche Promises, promises….

#50 Raging Ranter on 09.27.15 at 6:47 pm

@Parksville, deficits aren’t the answer either. Japan has been following Krugman’s advice for 25 years now. They have massive public debt to go along with their liquidity trap.

#51 Blobby on 09.27.15 at 6:49 pm

Goody!

Cant wait for the media to be all over whoever replaces Harper – blaming them for the drop in the dollar (just a few weeks after they get in)

But also cant wait, as I’ve got a huge whack of USD sitting there waiting to be turned into Canadian! Hoping I can get 2x :D

#52 MSM-Free Zone on 09.27.15 at 7:06 pm

“…….There is but one reason why these guys would move in the opposite direction to the US – condemning our dollar, risking more household debt and underscoring political failure – and that is the malaise around us. The one most people don’t see. Our own little zombie apocalypse……..”
_________________________

Ironically, I’m not seeing any of the above revelations in my latest door-to-door ReformaCon flyer.

Only the usual:
– “…steady helm…”,
– “……maintain course…”,
– and now…wait for it…..”Protect our Economy”.

Is that the best jingle a Temporary Foreign Worker from Australia can come up with?

#53 Edward on 09.27.15 at 7:09 pm

“people expect assets yielding 5% with a tax credit to also give capital gains. Relax. Prefs will come back and meantime they pay you to hold them.” — Garth
……………………….
Not saying you’re wrong Garth. But if Poloz lowers rates again, investors will get a much better price in which to enter. I would hold off buying anymore just yet. If you bought last year, it might take a while before they recover or you recapture your loss with the payout.

#54 common sense on 09.27.15 at 7:15 pm

OKOKOKOKOKOKOKOKOKOK already…
The world is very close to take a huge financial dump….the USA included…

Besides staying wise house wise, any other suggestions on riding out the 3-5 storm besides staying in cash?

Please advise.

#55 Bytor the Snow Dog on 09.27.15 at 7:17 pm

That woman is committing sexual assault! Where is the outrage!

#56 sideline sitter on 09.27.15 at 7:17 pm

So, what exactly are we going for?

#57 conan on 09.27.15 at 7:18 pm

The women of the 21 century are forward and frisky but, I digress. Agree on the rate cut and will say it here now.
The US is just talking about raising rates. They have no intention of doing so.
It will be another year minimum.

#58 Herf on 09.27.15 at 7:28 pm

#4 Tax the rich

“Why CRA is letting the house profits tax free? To stop speculation tax 80% of the price difference if you sell in the first 2 years after buying, 60% in the next 2, 30% in years 5-6 and 0 after that. Thats how you stop speculation and beef up the government coffers. At the end of the day the government has invested in the utilities that provides for the location of the house.”

Why not just tax the sale of any real estate, plain and simple, and get rid of the capital gains exemption? In other words, treat the sale of a house like any other purchased item on which tax must be paid. Wouldn’t that would quell the speculators and help keep prices “reasonable” and restore the notion of a house as a place to live? I’m not saying this would be politically expedient, just more likely to prevent the gas bag of a market we have now, from happening (again).

Funny we don’t hear the tax-hungry socialist parties proposing the idea, but then I guess they too, know on what side their bread is buttered.

#59 Big Dipper on 09.27.15 at 7:36 pm

Ok, this is what I read you wrote:

“Whoever wins the election will be the fall guy”

Go Harper go!

#60 Snowboid on 09.27.15 at 7:36 pm

#25 Smoking Man on 09.27.15 at 5:10 pm…

“Smoking Man makes another million”

Pesos?

#61 Van real on 09.27.15 at 7:42 pm

So you’re saying that because Calgary is tanking then Vancouver and Toronto will too. Don’t buy it for a second. Calgary should never have gone up to begin with. Have you been there?

#62 Goldth on 09.27.15 at 7:59 pm

Garth, at what economic reality would it make sense for you to buy precious metals assets for your clients?

CEF.A up 9.96% YTD.
ZPR -26.91% YTD (before dividends)

Remember, Kevin O’Leary recommends 5% of assets held in GOLD.

#63 Jim on 09.27.15 at 8:01 pm

Down here in Australia the meme of “rent, don’t buy” is really getting some air-time.

Not sure if this has been posted here before, but here’s a little snippet of a spoof ad from a local show called The Gruen Transfer;

https://m.youtube.com/watch?v=dC57_HFstC4

#64 Jim on 09.27.15 at 8:03 pm

Sorry, and here’s part 2

https://m.youtube.com/watch?v=efx9enSh_Fk

Was a competition for the best “rent don’t buy” ad. Result was a draw!

#65 rocks beat paper on 09.27.15 at 8:16 pm

You most certainly can export condos. Sell them to foreigners. We should be pushing hard to unload as much real estate to foreigners as possible. It’s like selling Nexen right at the top.

#66 BS on 09.27.15 at 8:30 pm

Updated revenue projects, being honest and admitting we’ll be posting at least one deficit. I don’t like all the spending but I appreciate the honesty.

The Liberals being honest about their incompetence to balance a budget and run a country responsibly gets your vote? You have low standards.

#67 Paully on 09.27.15 at 8:40 pm

#55 Bytor the Snow Dog on 09.27.15 at 7:17 pm

That woman is committing sexual assault! Where is the outrage!

I am outraged! If the genders were reversed, everyone else would be too!

#68 For those about to flop... on 09.27.15 at 8:52 pm

#45 espressobob on 09.27.15 at 6:38 pm

Sometimes the best thing an investor can do, is sit on their thumbs! Why invest for the short term?

—————————–
You can fit two thumbs in there?

#69 Why? on 09.27.15 at 8:59 pm

Fat woman grabs unsuspecting handsome guys’s ass.

What’s the moral of the story, Garth?

#70 Bed on 09.27.15 at 9:02 pm

http://www.theglobeandmail.com/globe-investor/personal-finance/mortgages/some-housing-markets-too-hot-for-traditional-down-payment-wisdom/article26532772/?service=mobile

Boo

#71 Pete on 09.27.15 at 9:02 pm

Do you know why TFSA’s are registered within the banking structure when they could have been privately managed and simply registered with the tax department; it’s because any deposits into it are counted on the bank’s balance sheet as equity and when the Cyprus-style bail-ins occur the banks will be able to bail-in/haircut/seize the money in the TFSA’s as well as the money in the regular accounts. Under the bail-in laws, the shares/bonds/etc that you have in the bank are the bank’s collateral and the TFSA is in the bank.

TFSAs can be held at non-banks. So much for that lame theory. — Garth

#72 paul on 09.27.15 at 9:10 pm

#4 Tax the rich on 09.27.15 at 2:55 pm

Why CRA is letting the house profits tax free? To stop speculation tax 80% of the price difference if you sell in the first 2 years after buying, 60% in the next 2, 30% in years 5-6 and 0 after that. Thats how you stop speculation and beef up the government coffers. At the end of the day the government has invested in the utilities that provides for the location of the house.
———————————————————-
I guess you do not know much about building homes there is 10’s of thousands in levies and fee to pay for most if not all of the development cost plus he Government has a cash tax cow for 4 to 6 thousand a year on an average house till the end of time!!

#73 espressobob on 09.27.15 at 9:11 pm

Kevin O’Leary recommends a 5% weighting in precious metals?

Any wonder why his “funds” stink.

Sounds like he needs a financial advisor!

#74 Joe2.0 on 09.27.15 at 9:11 pm

No negative interest rates.
Garth.
How many times have you said they won’t go lower..and lower…and lower…
You’ve got to start thinking outside the box.

#75 Bank of Millennial on 09.27.15 at 9:12 pm

#24 Patrick

Actually, I believe the gentleman that got the US into this style of economic mess said it best.. And we still haven’t learned anything.

“But how do we know when irrational exuberance has unduly escalated asset values, which then become subject to unexpected and prolonged contractions”
– Alan Greenspan

#76 Mark in Guelph on 09.27.15 at 9:19 pm

#10-Tax the Rich-If Poloz drops .25 and Yellen hikes .25 next month what is gonna happen to Canadian pesos?

Yeah, while your at it Garth, what happens to the dollar if a massive sink hole opens up under the Bank of Canada? How should we prepare for that?

#77 Its Complicated on 09.27.15 at 9:45 pm

An interest rate hike in the US? Not sure what tea leaves you’re reading, Garth. Historically the Fed has shown that they never make a move until they’re forced by the markets, and so far it looks like the US economy falling into another funk. Better push that projection out to 2017!

#78 rawdiswar on 09.27.15 at 9:56 pm

#55 Bytor the Snow Dog

Good call–imagine the roles were reversed, the outrage from feminazis!

Next we’ll hear “we’re not in a technical depression”…

Don’t worry, most Millennials don’t even know what an amortization table is, and oh how I wish I was kidding.

#79 Pretzels on 09.27.15 at 10:07 pm

Cenovus Energy poised to pull trigger on 540 job reductions

http://calgaryherald.com/business/energy/cenovus-energy-poised-to-pull-trigger-on-540-job-reductions

#80 Leo Trollstoy on 09.27.15 at 10:10 pm

Japan has been following Krugman’s advice for 25 years now. They have massive public debt to go along with their liquidity trap.

That’s par for the course for Hackman.

#81 Rob on 09.27.15 at 10:16 pm

Brad buying at the top would make him the “greater fool”.

#82 Conspiratard on 09.27.15 at 10:20 pm

As I write this, the much-hyped super moon/blood moon lunar eclipse is happening……..or IS it?

In Toronto, it is not visible at all.

This is end times, my friends. Clearly.

Just as Building 7 tells us the truth of 9-11, just as Conrad Black tells us the truth that global warming is a fraud, this non-event tells me we will all likely be gone by the morning.

NASA is announcing a major discovery at 8:30 tomorrow. How quaint of them.

It will be that Martians are taking over command of what is left of the human population, the dregs.

This happens just as the Pope has fled America this evening, just as the Blue Jays were about to clinch a title.

Coincidence? I think not.

I think not.

#83 TRT on 09.27.15 at 10:22 pm

Glad you see the light Garth.

Rates are going to zero.

Then QE 1.

#84 TurnerNation on 09.27.15 at 10:23 pm

Sadly today’s photo shows how men are still not fully recognized for their work as professional athletes, not as objects of womens’ desire.
I envision a time when men may play sports free of harassment.

To this end (and thinking of Toronto Life’s spread on this same topic this month, why this push) perhaps Ont’s Premier Wynn can introduce new legislation requiring pro teams place one transgendered athlete on the field at all times.

(If not to thoroughly confuse fans.)

#85 cookiemonster on 09.27.15 at 10:31 pm

#nonplused :

nonsense. the differential existed in 2005 too. and in those days, Alberta was booming.

#86 Smoking Man on 09.27.15 at 10:35 pm

NASA big announcement tomorrow at 11:30

Pop quiz. 1.618 anyone know the significance of that.

#87 Squidly77 on 09.27.15 at 10:40 pm

With Canadian heavy crude now at $30 BBL and with Calgary average homes selling price at $318,000, things are playing out pretty much as I knew they would.

Why do I trust Ross Kaye more than CREB? Ross Kaye has nothing to gain.

http://www.rosskay.com/

#88 Advisor vs investor on 09.27.15 at 10:42 pm

#73 espressobob
Kevin O’Leary recommends a 5% weighting in precious metals?

Any wonder why his “funds” stink.

Sounds like he needs a financial advisor!

—-

Show me any financial advisor as wealthy as O’Leary.

#89 Dave's my hero on 09.27.15 at 10:49 pm

I thought you reported just days ago that soothsayer Mr. Madani said that the BOC was done with the cuts?

Don’t tell me that he’s changed his mind again.

#90 West Coast on 09.27.15 at 10:53 pm

‘Downtown Vancouver office vacancy rate at a 10-year high – Analysts predict new projects could push rate to 12 per cent by year’s end…’

http://www.vancouversun.com/business/commercial-real-estate/Downtown+Vancouver+office+vacancy+rate+year+high/11332949/story.html

#91 Parksville Senior on 09.27.15 at 10:54 pm

Raging Ranter

I disagree, actually Japan was one of the first to try the austerity route and also drove interest rates to the zero bound without effect.

Only lately have they embraced very modest deficit and Abe under pressure tried to reduce the deficit to only send their economy into another tailspin.

Their deficit and accumulated debt is very modest as a percent of GDP.

Japan as well as Canada tried to prime the pump with private consumer debt. They had a real estate bubble (surprise-what were we talking about again) and Canada has a ????.

Public expenditure on roads, bridges, infrastucture of all sorts would have given a bigger payback to the economy than one more glass tower in Toronto-only difference on the balance sheet is that it would be public debt rather than private.

The conservatives are all knowing about “off balance sheet) liabilities.

Now I agree all deficits are not good—–Stephen has run how many of them? From under taxing to overspending on the military.

Now explain to me what could be more wasteful than blowing up dump trucks and old service stations – with high tech expensive weaponry. Any good old farm boy could do that with a gallon of diesel and some stumping powder far cheaper.

Lets set our goals on building and growth rather than war and recession—and we are only going to get more of the same old-same old from another Conservative govt

#92 debtified on 09.27.15 at 11:09 pm

#86 Smokie

Don’t get your hopes up, Smokie. You might be disappointed to find out that your alien ancestors are ugly and not all that evolved.

The Golden Ratio is a beautiful thing, unlike your alien ancestors. But don’t worry, I will remain your fan you funny ugly bastard. :)

#93 Zorba on 09.27.15 at 11:15 pm

Garth, you remind me of “Perpetuum Mobile”.

#94 45north on 09.27.15 at 11:16 pm

This would not happen if the economy was recovering, or even breathing on its own.

well it hasn’t happened yet but as you say it would be a sign of the zombie apocalypse. I mean it would be confirmation of the zombie apocalypse.

#95 Why bother on 09.27.15 at 11:18 pm

Why bother at all with interest rate when debt can be covered by printing money that has unlimited supply, since it is not backed with anything that is tangible or has a limit?

As long as everyone gets the piece of printed money, the system is all good, nobody complains. The ballooning debt is as non-tangible as money itself.

It’s like the universe – so full of stars that every single human could have an entire solar system. That should be more than enough to cater for the most demanding personal needs.

Capitalism as we know it is a dark-age concept from the mindset when the earth was the centre of the universe.

With the invention of money backed by nothing we can provide everyone with basically anything they need, money is just a symbolic tool to keep the old order from falling apart too fast, driving people crazy, by too big changes, too fast.

Low interest rate is like leaked alien stories and speculations … You float around cheap money long enough To avoid shocking surprise that we have in our stealthy way entered communists economy for the masses, we still limit consumption with the illusion of debt, but in reality we can just print money to cover any size of debt.

The FED is not quiet about the interest rate – it is considering what to announce first, the existence of aliens or the money we can never run out of and that debt is just a fiction of the past.

#96 Vanman on 09.27.15 at 11:30 pm

90 West Coast
“‘Downtown Vancouver office vacancy rate at a 10-year high – Analysts predict new projects could push rate to 12 per cent by year’s end…”
…………………
That news was reported a while back and it’sg mainly due to a glut of office space being built and hitting the market all at once.

However, sales of commercial buildings and land for commercial hit a 5 year high near a record. Indicating that many investors still have a lot of confidence in coomercial in Vancouver

Funny, two different articles, both by the Sun, with completely opposite reports on commercial realty – but they use the same photo.

http://www.vancouversun.com/business/sign+slowdown+vancouver+commercial+real+estate+sales/11387228/story.html?__lsa=36dd-f7f1

#97 NoName on 09.27.15 at 11:39 pm

#91 Parksville Senior on 09.27.15 at 10:54 pm

“From under taxing to overspending on the military.”
Is that a joke?
Read this, a year old, but good.

“I voted for the Conservatives in the last two elections because I believed their promises to improve the nation’s military. I have been utterly disappointed, and I will not vote for them in 2015. My difficulty on election day, of course, will be that the NDP and Liberals will likely be even worse in their treatment of the Canadian Forces.” J.L. Granatstein

http://www.theglobeandmail.com/globe-debate/how-the-harper-government-lost-its-way-on-defence-spending/article20859264/

#98 Lea on 09.28.15 at 12:01 am

Garth,

sincere thanks for this blog, I have learned a lot about Canada here. Other places I keep reading contradictory articles and have no idea what is really going, for example:

http://www.vancouversun.com/business/sign+slowdown+vancouver+commercial+real+estate+sales/11387228/story.html?__lsa=096b-3a10

and

http://www.vancouversun.com/business/commercial-real-estate/Downtown+Vancouver+office+vacancy+rate+year+high/11332949/story.html?__lsa=096b-3a10

same paper three weeks apart. Is commercial real estate booming or not in Vancouver? Joe Oliver says there was no recession. Did the numbers lie?

#75 Bank of Millennial

Some of us saw what Alan Greenspan did not. Here are few hints. When everybody around you keeps saying this is your last chance to get into home ownership or get into a bigger place. Half of your friends take the realtor exam so they can sell houses. People buy houses to flip. The real estate advertisements take over the paper. Real estate investment seminars by every Tom, Dick and Harry. When everybody expects low interest rates and weird ARM mortgages that people can barely afford to go on forever. When your home becomes an ATM. All the warning signs were in place in 2006, Alan Greenspan chose not to see.

Follow Garth’s advice. Rent, sell, or stay put, do not get sucked into real estate monomania.

#99 fisheman on 09.28.15 at 12:07 am

Hows this for a bad hair day for this fair northern land? There’s this guy called Trump running for prez down south. His two platforms are following through with his election promises & evicting illegal immigrants. He has also said that the illegals can legally apply outside the country to get back in.

Now he probably won’t win, but he could. Which country are these 11 or 15 or 20 million illegals going to migrate to while their waiting for their application back into the good old U.S. of A.to be processed? Mexico? Cuba? Germany? Canada? And you thought things couldn’t get worse.

#100 OXI in GREECE !! on 09.28.15 at 12:24 am

#88 Advisor vs investor on 09.27.15 at 10:42 pm
#73 espressobob
Kevin O’Leary recommends a 5% weighting in precious metals?

Any wonder why his “funds” stink.

Sounds like he needs a financial advisor!

—-

Show me any financial advisor as wealthy as O’Leary.
<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<

O'Leary "Won" the dotcom lottery in 1999. He has spouted nothing but "here is how you lose money" ever since.

#101 Millmech on 09.28.15 at 12:28 am

#55&67
Yup,not one word of outrage,roles were reversed would have long winded diatribe about the evil that men do.

#102 nonplused on 09.28.15 at 12:34 am

#85 cookiemonster

What part was nonsense? I will conceded that a differential existed in 2005 and has always existed. however in 2005 we were on our way to $8 GJ natural gas prices and oil was strong too. Remember gas use to be a bigger $ export than oil. Now that both are in the tank and both still have differentials I don’t see what your point is other than to say you can’t see the big picture. The SHTF is happening in Alberta (and BC) in such a way that it will affect the whole country.

#103 nonplused on 09.28.15 at 12:37 am

Oh and a funny joke I can across:

Pope to atheist: You are like a blindfolded man in a dark room searching for a black cat that isn’t there!!!

Atheist retorts to Pope: Well that may be but we are very similar except for one respect. You are a blindfolded man in a dark room searching for a black cat that isn’t there, only you’ve found it!

#104 whitehorn on 09.28.15 at 12:40 am

#18 cookiemonster “WTI oil price is 45 USD, which is 60 CAD. I remember in 2005 when WTI oil price climbed to 40 USD, CAD dollar was 0.82 USD dollar Calgary was “booming” because it had gone up to 40 USD.” I agree, the 2003-2008 era were extremely good times in Alberta and probably may never encounter such good times for decade(s) or more. The living and business costs have changed drastically in AB and hence why oil companies have a hard time making money at those prices. Also, the move up in oil created other sectors to increase dramatically which had a big influence. There was influx of many people to AB creating a huge boom to the housing industry, and forestry was booming to USA and Canadian customers. Now fast forward – what was a price of a house back in 2005, price to get a mechanic to fix your car, plus wages in the oil industry at that time to now. Anyways, I agree it was booming with significantly cheaper costs of everything at that time. The oil industry could make huge money again at 45 dollar oil but many facets of AB’s economy will have to change i.e. 1/2 price houses, trademens 1/2 price hourly rates, and significantly reduced costs by the gov’t to run the province. It is unlikely to happen, but definitely prices will have to go down overall.

#105 VictoriaBoy on 09.28.15 at 12:45 am

Smoking Man.

A black hole? really? Cooooool.

Thx

#106 bdy sktn on 09.28.15 at 1:21 am

Pop quiz. 1.618 anyone know the significance of that
……………
The dow is is 16 now 18 this summer
Well ok 16.2 and 18.2, but the moon is full so the Jays are a lock.

Here’s the real # sez wiki…
The natural logarithm of a number is its logarithm to the base e, where e is an irrational and transcendental constant approximately equal to 2.718281828459. The natural logarithm of x is generally written as ln x, loge x, or sometimes, if the base e is implicit, simply log x.[1] Parentheses are sometimes added for clarity, giving ln(x), loge(x) or log(x). This is done in particular when the argument to the logarithm is not a single symbol, to prevent ambiguity.

The natural logarithm of x is the power to which e would have to be raised to equal x. For example, ln(7.5) is 2.0149…, because e2.0149… = 7.5. The natural log of e itself, ln(e), is 1, because e1 = e, while the natural logarithm of 1, ln(1), is 0,

#107 observer on 09.28.15 at 1:33 am

Boo Hoo

Sucks to be you Brad!

We’ve watch this scene many times.

– its always different this time,
but it alway has the same ending.

too bad so sad

#108 Big English on 09.28.15 at 1:46 am

SFH across the street on market for $1.4m in east Van. Swimming with developers, horny couples, individuals talking about laneway houses.

Not sure when this will end or if it will.

#109 Waterloo Resident on 09.28.15 at 2:08 am

http://blogs.reuters.com/macroscope/2015/09/23/how-much-longer-can-consumers-underpin-canadas-economy/

QUOTE: (( “The Bank of Canada is hoping the average Canadian continues to do the heavy lifting for the economy and gets it out of its rut from the first half of the year, even with dangerously high household debt levels. That may be a big ask. ….. Elevated household debt, or more debt, is necessarily going to make a correction more likely. If and when that correction comes it will be more painful. ” ))

——–

In other words, get out the popcorn boys, when our housing market finally does crash, the fireworks are going to be amazing ! It’s going to make the U.S. housing crash look like a small rehearsal.

We are going to have unemployment rates similar to that of SPAIN.

#110 Curious on 09.28.15 at 4:24 am

“#5 Tax the rich on 09.27.15 at 3:00 pm ”

Just wondering why you spelled Bush correctly but non-capitalized and added and a to begin Obama?

#111 4 Billion Dollar BS on 09.28.15 at 6:40 am

http://www.wellingtonfund.com/blog/2014/08/13/when-it-comes-to-marketing-at-least-kevin-oleary-knows-what-hes-doing/#axzz3n1n8Q9kI

#88 Show me any financial advisor as wealthy as O’Leary.

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

An interesting blog about your 4 Billion Dollar Man. (see link above)

#112 The real Kip on 09.28.15 at 7:01 am

Hillary Clinton is not president and Yellen will not raise rates in October. I’d be surprised if she’s still running the Fed by Christmas based on he air-head speeches of late.

Crane operator to psychoanalyzing-macroeconomist. Awesome. — Garth

#113 saskatoon on 09.28.15 at 7:05 am

#101 Millmech

the reason many men are going MGTOW.

#114 BG on 09.28.15 at 8:25 am

Sometimes I get an outbreak of real estate lust.

It happened this weekend.
I browsed MLS and other sites looking for something that made sense to buy. Condos, duplexes, even parking pots.

I found nothing with a potential positive cash flow.
And that’s in Montreal, one of the supposedly not to inflated markets.

#115 Edward on 09.28.15 at 8:58 am

Carl Icahn is releasing a self produced video tomorrow about how historically low interest rates for years have overinflated high end real estate, art, high yield bonds and stocks. He says a looming catastrophe is brewing.

#116 Godth on 09.28.15 at 9:02 am

#86 Smoking Man on 09.27.15 at 10:35 pm

Never a straight answer.
https://www.youtube.com/watch?v=zxEIyHlGIOI

Richard Hall is onto you.

#117 Hoser on 09.28.15 at 9:07 am

Brad is suffering from his indoctrination into the feminine mindset. (Note, I said feminine, not female.)

This affects most women and many men in today’s society.

“Feels before reals.” To hell with logic and reason, just buy that house because you really, really want it.

#118 Cookiemonster on 09.28.15 at 9:27 am

Nonplus
A major production cost for oil sands is precisely the price of natural gas. Plus stelmach reduced royalties to natural gas, to help oil sand development.
I can seem you are totally brainwashed by PR from the
Industry spinners.

#119 Jamie Dimon on 09.28.15 at 9:54 am

Hahaha! Garth how do you know that dudes a crane operator?

Scary, isn’t it? — Garth

#120 Doug in London on 09.28.15 at 10:10 am

@jean, post #17:
I also read that article and say what rubbish! When you read that sort of thing it just further confirms that we are at or near the top of a bubble. Remember the frantic buying of gold in 1980 and 2011? How about tech stocks in 2000? It’s nothing more than a remake of an old movie, in more recent times and with different actors.

Over 40 now. Clock is ticking. Tired of not having my own place. Why? I don’t have my “own” place as in owning a house but am a world class landlord by owning a good selection of properties all over Canada and the USA (and some exposure to Dublin in CAP REIT) in REITs and they pay me generously to own them. And now for the punch line, I bought some of these REITS in 2013 when they were on sale!

#121 };-) aka Devil's Advocate on 09.28.15 at 10:15 am

SHIFT happens, but we seem to be stuck in overdrive. That’s OK as long as there are no hills ahead.

Enjoy the ride };-)

“It is intellectually dishonest to speak of environmentalism without discussing population control” – Prof Al Bartlett

As George Carlin said, “Earth isn’t going anywhere… we are”.

#122 maxx on 09.28.15 at 10:17 am

#32 ANON on 09.27.15 at 5:29 pm

You don’t look weird to me.

#123 The real Kip on 09.28.15 at 10:30 am

“Crane operator to psychoanalyzing-macroeconomist. Awesome. — Garth”

Yes, my primary occupation is crane operator. Psychoanalyst is actually a part time gig that many of my peers and I practice.

Yellen will soon be gone. Have you listened to her struggle to speak of late? Apparently not.

#124 NoName on 09.28.15 at 11:27 am

#86 Smoking Man on 09.27.15 at 10:35 pm

jan/2002 63c dollar ?

#125 pbrasseur on 09.28.15 at 11:28 am

I think speculating of what the BOC is or is not going to do is pointless.

What is clear however is that Canada is more or less screwed and that its problems aren’t doing away anytime soon, they are structural. This is only beginning to unfold and we are still a long way from the worse part.

#126 Drill Baby Drill on 09.28.15 at 11:29 am

#19 Washed up Lawyer
This is the cycle of life in the oil patch. I have been thru 5 downturns in Calgary in my 37 yrs as an O&G engineer. Never ever count out Alberta it is sitting on a very stable and valuable commodity. The cost base of recovering oilsands is high right now but after 2 years of ratcheting back on costs it will be competitive again.

#127 Drill Baby Drill on 09.28.15 at 11:36 am

#79 Pretzels
Don’t get too excited about the number 540. 400 of these were already announced last Feb/March. The remainder of which are field contractors. Cenovus has a refinery in the US and this is keeping the balance sheet afloat right now because all refiners are currently making high margins.

#128 TurnerNation on 09.28.15 at 11:36 am

+ Dollarama kaputs. Was nice blowoff top.

#129 Panhead on 09.28.15 at 11:54 am

#86 Smoking Man on 09.27.15 at 10:35 pm

Pop quiz. 1.618 anyone know the significance of that.
——————————————————
Pie R round … Cake R square?

#130 IHCTD9 on 09.28.15 at 11:59 am

I’m so damn glad I’m not a young buck just starting out these days.

When the wife and I bought a house, we saved up a DP over a year, and just went out shopping. Interest rates were in the mid 6’s, and that seemed just fine to us at the time. We checked out a few, made a below selling price offer and moved in 4 months later.

Our mortgage was 1.85x our annual income, our school debts were paid off already. We both had what became our career jobs within 1 year of Graduation. Our cars were both paid for.

Within 10 years of buying, our monthly income was 19.7x our monthly mortgage payment. We had moved into a subprime variable rate and were paying less than 2%, it was cheaper than rent was for us in the 90’s. Meanwhile our income had increased substantially. Life was good, no consumer debt, no car payments, easily sending our kids to private schooling, and still managing to pack away a reasonable amount into savings.

Today the mortgage is gone, the incomes are up a little more again, and funds once going into the mortgage are now set to go into retirement savings. Before that though, I have my eye on a nice BMW, for which I will pay cash, and will be the first time in my life I have ever splurged.

I look back, and it’s easy to see how this used to be. Low cost of education, reasonably available and paying jobs, good prices on real estate, and two white collar jobs fuelling the family income.

If you Millennials want what we older folks have, you will need to reinstate the above scenarios (good luck). **Or move to where these things exist.**

#131 Holy Crap Wheres The Tylenol on 09.28.15 at 12:00 pm

Hot off the press, water (briny water) discovered on Mars. Could there be life on Mars. Hold the presses Smoking Man MIA, is there a connection between the Mars discovery and our Alien friend here?

#132 Mike on 09.28.15 at 12:03 pm

Prices still remain sticky in Edmonton.
-Sales are down 19% in Aug from July, and down 5.6% YoY.
-Inventories are up 35.5% YoY
-Days on market has increased 5 days YoY and 4 days from July
-Despite all that, pricing up 1.0% YoY

Prices are still sticky here, but I can’t imagine for much longer. I read every once in a while that “ALL’s GOOD in EDMONTON! Shops are FULL, Malls are FULL, etc!”, but no that’s not the case. My morning commute traffic is down, the park and fly long term parking lot in Leduc is still full, but not like it used to be, and no WEM is not packed. If you think it’s busy, you must me visiting from out of town. Go there one evening. It’s like a ghost town sometimes.

http://edmontonjournal.com/business/local-business/edmonton-real-estate-sales-slide-in-august?__lsa=ca41-ae92

#133 Holy Crap Wheres The Tylenol on 09.28.15 at 12:05 pm

But in all seriousness now oil is cyclic, Alberta has come and gone many timers before.
“Buying a home in Calgary is not a good investment. Not today.”
Buying a home today I agree, but tomorrow when all of those beautiful McManisons hit the streets in a fire-sale?
I would consider swooping in and purchase a dozen and flip.

#134 Bottoms_Up on 09.28.15 at 12:08 pm

#86 Smoking Man on 09.27.15 at 10:35 pm
—————————————————–
liquid water on mars. nothing to get too excited about.

#135 Lea on 09.28.15 at 12:17 pm

#109 Waterloo Resident

Why do you think the a Canadian housing crash will make the U.S. crash look like a small rehearsal?

It has been nearly 8 years since our crash and the effects are the fallout are still being felt. Disclaimer: I was in California, one of the epicenters, it wasn’t nearly as bad in the mid-west.

#136 Mr Investor on 09.28.15 at 12:20 pm

Hey, is the RSS feed working for this blog? It seems to have been down for the last few days… Anyone else having problems with it?

#137 bdy sktn on 09.28.15 at 12:27 pm

Cpd at 12.50 now under the buy target of some dogs. Anyone taking the bait here?

#138 Leo Trollstoy on 09.28.15 at 12:28 pm

Show me any financial advisor as wealthy as O’Leary

Er I’m fan of O’Leary but this comment makes no sense.

Wouldn’t a metric of success for financial planning be to have wealthy CLIENTS?

Your statement kinda implies that the planner is wealthy because they fleeced the clients…

#139 Nora Lenderby on 09.28.15 at 12:43 pm

ZOMG, sorry lads, I am a bit late today. We spent the night on the water viewing a total eclipse of the moon. Fabulous. Back to being local rep. for feminazis*.

Of course we demand equal representation for humorous poses of generously proportioned** males in Mr. T’s choice of stock photo chuckle of the day. (Cats are getting the short end of the stick as well, although since they don’t have a sense of humour it would probably be exploitative to use them thus.)

* So…original. Funny as all get out, rlly. I nearly wet myself. Never heard it before…No…I tell a lie, I did…a broadcast by Mr. Earl McRae back in the early ’80’s. And he, poor man, is now dead. (Or was it “feministas”, jeez, so long ago)…I’m just cracking up here…

** Note: I did not say “well-endowed” – intentionally. We don’t want anything to make any of us feel inadequate, now, do we?

#113 saskatoon on 09.28.15 at 7:05 am
the reason many men are going MGTOW.

Don’t be silly dear, we all know your a sports car is a cardboard box.

#140 omg the original on 09.28.15 at 12:44 pm

A Nobody on 09.27.15 at 3:35 pm
Maybe buying RE in Calgary is a mistake but not the GTA.

People pouring in from all over the world everyday and now the DISLOCATED FROM CALGARY AS WELL.
——————-

Hilarious – we get that same concept from realtors in Victoria as well.

All those petroleum engineers and geologists getting laid off from $150k/yr jobs in Calgary moving to Victoria (or TO) and buying $900k houses with no income.

So what are they going to live on???? Unemployment insurance???

Or are they magically going to get jobs in Victoria’s/Toronto’s booming resource sector????

WHAT A BUNCH OR REALTOR BS.

The people I know that have been laid off in Calgary are busy trying to figure out how not to default on their mortgages before they can sell at a loss.

Some are working at Home Depot.

Some are heading to the middle east to teach English.

Lots are going back to school.

Strangely, none mention the idea of moving to another grossly inflated housing market and buying a house with no job.

#141 Smoking Man on 09.28.15 at 12:48 pm

#134 Bottoms_Up on 09.28.15 at 12:08 pm
#86 Smoking Man on 09.27.15 at 10:35 pm
—————————————————–
liquid water on mars. nothing to get too excited about.
……

You do know how this will be spined.

There was a high concentration of carbon which made AL the water vanish.. AL Gore goes on the road with a new power point presentation. 100%
Consensus amongst scientific community.

Humans, so gullible..

Smoking Man
PhD Herdonomics.

#142 jess on 09.28.15 at 1:13 pm

BIS Papers No 6
The financial crisis in Japan during the 1990s: how the
Bank of Japan responded and the lessons learnt
http://www.bis.org/publ/bppdf/bispap06.pdf

http://www.prmia.org/sites/default/files/references/Daiwa.pdf
1.1b. trading us treasury bonds

lessons learned?
“Rogue trading is still alive and well and actually getting worse,” Iguchi said in the interview.

————
FRANKFURT, Sept 25

German prosecutors searched offices and residences linked to Canadian lender Maple Bank this week in a probe of serious tax evasion and money laundering connected to dividend stripping, officials said on Friday.

Nearly 300 investigators searched 30 premises in several German states on Wednesday in pursuit of evidence against 11 people thought to have illegally claimed more than 100 million euros ($112 million) in tax paid using a strategy known as dividend stripping or dividend arbitrage, Frankfurt prosecutors said.

German prosecutors raid Maple Bank in tax case (28 Sep 2015)

#143 Mister Obvious on 09.28.15 at 1:29 pm

#138 Leo Trollstoy

Kevin O’Leary was very wealthy before he became a financial advisor. Frankly, I don’t know why he bothered.

The financial advisors I’ve known have admitted a significant portion of their job involves hand holding and reassuring nervous clients.

O’Leary doesn’t strike me as much of a ‘hand holding’ type of guy.

#144 Calgary Rip Off on 09.28.15 at 1:48 pm

More BS.

You havent researched. Over and over.

Renting in Calgary is the answer? Right…….
If you are going to retire soon or want mobility, yes.

If you are working here for next 20 years and are not overleveraged and the rent is same as mortgage and can requalify if prices drop and still can requalify. No brainer.

Posts like this “dont buy today”. Duh. D-u-m-b.

P.S. Come drive to work in Calgary at 7 am. Still plenty of traffic. And it isnt all kids being driven to school.

The sky is not falling, there is not some mass exodus.

#145 Chris on 09.28.15 at 1:50 pm

Hey Garth (or blog-dogs) – any stats which show the monthly home sales for all of Canada for say the last 4-5 years? I’m curious if there’s an overall trend.

#146 Ralph Cramdown on 09.28.15 at 1:55 pm

Inter-cultural sensitivity in the slums of Vancouver:
http://www.vancouversun.com/opinion/douglas+todd+income+anomaly+depletes+metro+vancouver+base/11390940/story.html

#147 Spaccone on 09.28.15 at 2:16 pm

#137 bdy sktn on 09.28.15 at 12:27 pm
Cpd at 12.50 now under the buy target of some dogs. Anyone taking the bait here?

============================
I know one shouldn’t time, maybe timing can be introduced to rebalancing, but I think it’s better to gamble a buy when the 13 and 34 weekly EMA crosses up.

#148 Fed-up on 09.28.15 at 2:26 pm

Another fun and “interesting” day on the markets.

Good times.

#149 45north on 09.28.15 at 2:32 pm

Waterloo Resident: when our housing market finally does crash, the fireworks are going to be amazing

that’s my fear. The US Fed helped cushion the crash by lowering interest rates from 5% to 0%. The Bank of Canada at most can cut .5% Another thing: half of all US mortgages are 30 year fixed term. Canadian mortgages are 5 year fixed term. Or less.

Curious: Just wondering why you spelled Bush correctly but non-capitalized and added and a to begin Obama?

because bush is a word

The Real Kip: Crane operator to psychoanalyzing-macroeconomist. Awesome. — Garth

he has climbed to a high position by his own efforts

#150 Doug T. on 09.28.15 at 2:35 pm

Things will not change in this country. The day will come when we are taken into a scenario not unlike the EU – where the USA, Canada and Mexico have a common currency and are slaves to the U.S. – until that day we just fumble along in a country that is apathetic.

#151 DQ on 09.28.15 at 2:47 pm

#130 – IHCTD9
———————————————–
You’re bang on. In the not too distant past you didn’t even need to have that “good” (i.e. high paying) of a job to accomplish what you have described. Simply two “decent” incomes ($50-100k each) would have allowed a family to achieve what you have described.

These days in YVR or GTA two professional millenials with a combined income of $200-250k can’t expect to be able to buy anything larger than a 900 sq ft two bedroom condo. Good luck raising a family or more than one child in that.

Accountants, junior lawyers, GPs, engineers, none of these “good” jobs pay well enough (at least in your 30’s and early 40’s….the age when you raise a family) to buy a place big enough to live in. Even rent for anything larger than a two bedroom condo in a place that isn’t 90 minutes away from the city is $3000+/month.

Go to post-secondary, sometimes twice, work harder than your peers to beat them in order to get a “good” job, and still don’t make enough to be able to buy a modest place and invest for retirement. Add to that Boomers in your self-described situation who think we’re all “whiny and entitled” and that we should all move somewhere cheaper like Saskatoon or Winnipeg.

No wonder millenials are pissed.

#152 Ralph Cramdown on 09.28.15 at 2:51 pm

#143 Mister Obvious — “Kevin O’Leary was very wealthy before he became a financial advisor. Frankly, I don’t know why he bothered.”

I don’t think he IS a financial advisor. He’s got his name on a family of mutual funds, for a percentage. Others manage them.

The genius of his schtick is that he gets (got?) lots of media exposure, and he constantly emphasizes “getting paid to wait.” I like a dividend as much as the next man, but I don’t let it lull me into a false sense of security if the company is underperforming. His investors can blithely tell themselves “I’m getting PAID to WAIT” regardless of the funds’ performance. That’s a VERY smart catchphrase for customer retention.

#153 Nora Lenderby on 09.28.15 at 2:54 pm

#136 Mr Investor on 09.28.15 at 12:20 pm
Hey, is the RSS feed working for this blog? It seems to have been down for the last few days… Anyone else having problems with it?

Yep. First time was Mr. T’s poll, which I missed entirely. It seems to work sporadically. At first I thought it was my reader program, but it doesn’t seem to be. The URL I use is http://www.greaterfool.ca/feed/

#154 IHCTD9 on 09.28.15 at 3:19 pm

#113 saskatoon on 09.28.15 at 7:05 am
#101 Millmech

the reason many men are going MGTOW.
____________________________________________

I understand the MGTOW movement, but 99% of you young MGTOW’s are doomed to financial mediocrity if you do not obtain a gainfully employed significant other. This was semi-true in my youth, and is not an option today.

A single average income in Canada means renting till death, no toys, no vacations. Essentially a Japanese vegetarian-man existence.

#155 TheLaughingCon on 09.28.15 at 3:25 pm

Germany: Migrants In, Germans Out
The Death of Property Rights

http://www.gatestoneinstitute.org/6583/germany-migrants-housing

#156 Patrick on 09.28.15 at 3:31 pm

#75 Bank of Millennial on 09.27.15 at 9:12 pm

I don’t understand how people think that Alan Greenspan created that mess. People’s individual greed and ignorance created the housing bubble. Do you have any articles that outline why people blame him?

I would blame the banking institutions for spreading themselves too thin, mortgage brokers for giving out crappy loans and greedy individual home buyers for wanting to buy houses they couldn’t afford.

Alan Greenspan is just a scapegoat, all these individuals taking small (but stupid) risks for a little extra personal gain caused the crisis.

Maybe he could have warned the public more but Stephen Poloz & Mark Carney have been standing up there for years warning Canadian real estate buyers but nobody listens, never have, never will.

That being said, Greed and intelligence are a powerful combo. Most of us are blessed with greed but only a few have the intelligence.

#157 IHCTD9 on 09.28.15 at 3:40 pm

#140 omg the original on 09.28.15 at 12:44 pm

…Strangely, none mention the idea of moving to another grossly inflated housing market and buying a house with no job.
____________________________________________

Not to mention, Toronto – at least in manufacturing -, is fast becoming a place where if you are an experienced 20-30 year veteran of the industry, no one wants to pay you. You will probably find a job fine if your resume sucks and you display all the characteristics of someone who will work cheap.

A CAD design position used to earn a guy a decent living. Now, you are better off shoveling chicken shit out of a local barn.

#158 Sheane Wallace on 09.28.15 at 3:42 pm

some action in the CAD today.

#159 pinstripe on 09.28.15 at 3:48 pm

The talk at coffee shop this morning was about the impact of the zirp policy on the local geezers., geezers who only buy with cash.

for some the zirp policy cost them personally about 50 Gs a year. The cost numbers were as low as 10G. Having a 10 G tfsa does not offset the loss. The harpo policies do not convince the geezers to vote for him.

harpo and carnage were determined to force savers to spend their money. They did become successful to reward the non savers and punish the savers.

ABC

#160 Nemesis on 09.28.15 at 3:53 pm

#GoingForIt,Or… #MoarMondayMischief… #”TheGentrificationOfEverywhere”

[G&M] – Denying flood of foreign money makes solving housing crisis even harder

“There was a kind of an emerging global market where people who already had substantial real estate assets maybe in Paris or London or Hong Kong would buy another property here or in Whistler,” he said. “And then you had the local market, and at the time they were quite separate. But now I think the magnitude of the investment at the high end has crashed down on the entire market.” – Donald Gutstein is adjunct professor at Simon Fraser University and author of one of the first books on the impact of foreign investment in Vancouver real estate. His 1990 book, The New Landlords: Asian Investment in Canadian Real Estate, focused on the impact of Hong Kong investors’ buying habits. That wave of immigrant buying was a trickle compared with what the city is currently experiencing, alongside intense speculation…

http://www.theglobeandmail.com/life/home-and-garden/real-estate/denying-flood-of-foreign-money-makes-solving-housing-crisis-even-harder/article26549530/

#161 TheLaughingCon on 09.28.15 at 4:40 pm

Just posted

“Household debt rises at fastest pace in nearly three years ”

http://www.theglobeandmail.com/report-on-business/economy/household-debt-rises-at-fastest-pace-in-nearly-three-years/article26572223/

“…Residential mortgage debt jumped 7.5 per cent annualized in the month, raising the three-month pace to 7 per cent, its fastest since April, 2012. On a year-over-year basis, mortgage growth was 5.9 per cent, a 32-month high….”

Good video to watch:
https://youtu.be/xi7M_P2ldsQ

#162 Ralph Cramdown on 09.28.15 at 4:42 pm

#154 IHCTD9 —“[…] doomed to financial mediocrity if you do not obtain a gainfully employed significant other. This was semi-true in my youth, and is not an option today.”

Agreed. “Two can live as cheaply as one” seems to have morphed to “one can leverage as much as two.”

#163 MF on 09.28.15 at 4:45 pm

#137 bdy sktn on 09.28.15 at 12:27 pm

Even lower than it was during the great recession. The yield has fallen due to the bone headed move by the BoC. I know I should buy more but I just can’t stomach more CPD. I’m already down thousands since April.

#130 IHCTD9 on 09.28.15 at 11:59 am

Great post. I wish those days would return but I doubt they will. After 2001 and 2008 everything changed. RE will implode under it’s own weight when no one can afford to buy and decent jobs that pay a livable wage get even more sparse than they are now.

Our generation is adapting somewhat (albeit slowly). A lot of us are used to condo living now even though we grew up in houses, we have decided to have less kids, and a lot of us don’t drive but get around using public transit only etc.

I definitely see some economic and demographic pain on the horizon as the new reality settles in.

Your point about being mobile and going where the good jobs are is also something we are slowly becoming accustomed to, slowly.

MF

#164 MF on 09.28.15 at 4:47 pm

#157 IHCTD9 on 09.28.15 at 3:40 pm

I can confirm this. I noticed a had more nibbles from my resume when I left out my university experience. I was desperate for anything.

MF

#165 Mark on 09.28.15 at 4:49 pm

“for some the zirp policy cost them personally about 50 Gs a year. The cost numbers were as low as 10G. Having a 10 G tfsa does not offset the loss. The harpo policies do not convince the geezers to vote for him.”

Nonsense. ZIRP has made senior citizens fabulously wealthy compared to what a ‘normal’ interest rate policy environment would create. Inflation is practically non-existent since firms can borrow inexpensively to keep domestic supply relatively robust. Seniors generally have enjoyed huge unearned capital gains on their (fixed income/REIT/preferred share) investments and their real estate holdings on account of ZIRP. And a plethora of generous government social benefits including healthcare and OAS/GIS have been enabled through low-cost government borrowing facilitated through ZIRP.

The seniors that you talked to with their claims that they ‘lost’ a bunch of money on account of ZIRP are either myopic as to the other benefits of ZIRP that have accrued to them personally, or they are so statistically atypical and completely unbalanced in their investing that they’re some of the few rare seniors who haven’t benefitted from the low interest rate policy.

If you want to see examples of seniors and near-retirees suffer, a return to higher interest rates would definitely do the trick.

#166 cookiemonster on 09.28.15 at 4:54 pm

Garth, if you were American you would vote for Trump with all those regressive tax proposals, so that your portfolio can profit. Thoughts?

#167 Mark on 09.28.15 at 5:02 pm

“Do you know why TFSA’s are registered within the banking structure when they could have been privately managed and simply registered with the tax department”

Its largely because the way of doing things in Canada is to have ‘government’ involved as much as possible. Because, heaven forbid, Canadians can’t be trusted to follow the rules on their own.

Two of my big criticisms of the TFSA/RRSP/etc. are as follows:

1) The range of investments that can be held in such is quite limited. This may encourage sub-optimal allocation of capital within the economy, especially in sectors/investments which don’t tend to be highly visible in the public capital markets.

2) Both programs are effectively band-aids to an otherwise broken tax system which ordinarily punishes savings and investment. Additionally, there are significant administrative costs of the ‘registered’ programs which drive up costs for investors.

I hope a future government actually looks at the tax system and puts an end to these ‘band-aids’ so that Canada can enjoy efficient capital allocation and a higher-performing economy with less frictional losses. I am very encouraged by Justin Trudeau’s willingness to look at evidence-based research. Especially with respect to his reference to a Mintz study on the abuse and perverse effects of small business taxation. Instead of the dogmatic approach that seems to be in use by the current government. Don’t know if I’ll vote for him, but the fact that he’s smart enough to defer to solid academic research on the topic is impressive to say the least.

#168 cookiemonster on 09.28.15 at 5:03 pm

“Poor” VW

https://ca.finance.yahoo.com/news/volkswagens-diesel-tax-breaks-could-202330417.html

#169 Smoking Man on 09.28.15 at 5:07 pm

Re getting shafted at your job, not making enough loot.

Move to the USA,

Canada is screwed, people here have no self respect, or self worth.

I had an opportunity to go back to tax farm here, said same contact rate, but I want to be paid in USD. Or have my rate bumped.

They said no….

So I said See ya……

It’s that easy, you give off one tiny bit of sweat of unworthiness you’re screwed.

I may go back one day, but on my terms.

Helps when you’re the best in your field, and don’t really need to work, but you kids are young, have you never played poker.

#170 saskatoon on 09.28.15 at 5:25 pm

#154 IHCTD9

i see where you’re going here…

but c’mon man:

a young MGTOW making 80-100Gs can do pretty well.

#171 Serenity Now on 09.28.15 at 5:30 pm

@Drill Baby Drill #127
The 540 people (this week and next) are on top of 700 contractors and 100 employees that got let go in March. Also had another 120 upper level staff get laid off last month. Total = ~1300 – 1400.

#172 Drill Baby Drill on 09.28.15 at 5:45 pm

#144 Calgary Rip Off

I travel to downtown Cowtown everyday and the traffic is most definitely down way down. Many parking stalls are empty and it has been this way since last year.

#173 Possum on 09.28.15 at 6:47 pm

Garth, Garth, Garth:

You keep changing the story…one month the inside scoop is the rates are going up (and they don’t) and now there going down (most likely not).

Harper needs the boot and I’m sure once he’s is no longer Prime Minister…Poloz (a one trick pony) will be leaving his role at the Bank of Canada.

An aside…
You said in earlier posts how the Conservative party only served the wealthy and how you felt bad for the other 99%. Yes, Garth vote Conservative.

Shame, Shame !!!

#174 spaceman on 09.28.15 at 7:03 pm

“Buying a home in Calgary is not a good investment. Not today.”

Then don’t buy a home as an investment, buy it to live in, because its what you want, you can afford it, and you plan to live in it, a very long time. Ask friends that bought in “bad” times, you may need to ask your parents, aunts or uncles… 82, 87, 08, all bad times to buy, do they regret it?

I bought in 2012, still don’t regret it, love my home. But its a terrible “investment”.

cheers

#175 nick on 09.28.15 at 8:00 pm

Rates are going down Baby look at the 5 year…. 2.0% that means rates are down for a long time………..

#176 Herf on 09.28.15 at 9:00 pm

#1 Future Expatriate

“They’ll be a Keystone pipeline… it will just be going through BC. Shorter route to China anyway.”

Not according to Notley:

http://www.therebel.media/alberta_ndp_compares_oil_sands_to

#177 M on 09.29.15 at 1:54 am

Finally Gartho… some common sense in you re interest rates.
And don’t you think Amerikistan does much better baby. It’s only that on the way down they’ll be the last man standing.
Then QE4 new Saga :)

Canadistan housing market..a big deep whole in the ground.

I am interested if you can write something legible about Libertas Real Assets.

#178 crjones on 09.29.15 at 12:19 pm

I luv it. The more fools out there the better my bank preferreds will do. Laughing all-the-way to the bank. BTW. I believe interest is rent by another name.

#179 miketheengineer on 09.29.15 at 1:07 pm

Garth et al:

You said:

“mortgages can migrate to zero but as people start to understand what the real economy’s doing, real estate risk grows”

BINGO…the real economy.

Recovery will happen, if and only if, the price of gasoline goes back to about $0.70 per litre…this will put moola back into the hands of everyone, and stimulate the economy back to life.

The velocity of money in circulation will increase…and the government will scoop up the sales taxes as people spend there moola on crap they don’t need.

Really simple, Garth old man…velocity of money is the secret to recovery in our country. Without it…we are economically doomed….

Too bad nobody in any of the governments truly understanding this concept…get money into the hands of the guys that spend it…scoop the increase in tax money….pretty simple.

Oil ain’t going back up any time soon. Put the price of gas where it should be and in 6 months….that additional 20 bucks in everyone’s pocket, should add up to increased retail and fast food spending etc…hence stimulating the economy. Too bad for Alberta…the drunken party, with endless beer on tap, seems to have ended.

Just my thoughts, but I am a lowly engineer….and not a financial guy.

#180 miketheengineer on 09.29.15 at 1:11 pm

Garth et al:

Loved today’s photo of the dog eating the door frame…made me laugh.

My new puppy (Havanese), just chewed up the leg on my lamp table. I am soo glad that I have inexpensive furniture right now.

Puppy doing tricks….(not mine)

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