Bad choices

HUGS1

Tom and Sarah make $140,000 between them, although she’s now just logging part-time hours. They have two kids under four, rent a decent townhouse in the GTA (“But too many stairs,” she complains) and have, at 38 years of age, saved about $250,000. Not bad.

They have a choice, and dumped it on me three weeks ago. They can carry on as now, topping up the TFSAs and putting a little into Tom’s group RRSP while maxing the kids’ RESPs. At age 65, I told them, they should have about two million bucks, and a life-long retirement income north of $150,000. Or, they can buy a house.

“We really don’t wanna spend more than $950,000,” Tom said when we met. “But we’ve been pre-approved to purchase a property as high as $1.2 million.  That’s what Sarah wants. Besides, wouldn’t we be smart to up our budget to just over the 1 million mark considering there are fewer people who can actually muster up a bigger down payment on a million-dollar property?”

By the way, these guys had already ‘lost’ out on at least two bidding wars. That experience impacted them deeply, so the house lust within has been smoldering and explosive. As usual in life, the most desired object is the one you do not possess.

So, I said sagely and uselessly, if you buy for over a mill you’ll need at least 20% down, plus closing costs, wiping out all your savings. Then you’ll have no liquidity, no retirement nestegg, a one-asset strategy with zero diversification and a mortgage of at least $800,000 which won’t stay at 3%. Property taxes, insurance, renos, maintenance and interest charges will far exceed the rent you now pay (by two grand a month), so you’re totally gambling housing prices in the next decade will continue to wildly inflate. Is that a risk worth taking?

So, they bought the house.

Last weekend, while we were grappling with turkeys and politics, the guy in charge of interest rates was making two key speeches. Neither were in Canada. But in Lima, Peru (at a G20 conflab) and in Washington (before a room of economists). Stephen Poloz said the same thing. Actually you can read it here. Don’t blame the Bank of Canada, he intoned, for the bad choices people like Tom and Sarah are making.

“Borrowers and lenders bear the ultimate responsibility for their own decisions at the individual and firm level. It is not the role of monetary policy to protect individuals from making bad choices.”

poloz modified

There’s no mistaking the “bad” he’s talking about. In the same speech Poloz calls epic mortgages “a key vulnerability for the financial system.” He admits that “the main driver” of this mountain of dangerous borrowing “has been an increase in home-backed debt against a backdrop of rising house prices, particularly in Toronto and Vancouver.” The central banker also is blunt that “house prices have generally been rising faster than incomes,” so “we have seen increases in the size of a first-time mortgage” that people like Tom and Sarah commit to. Plus, “the total debt-to-income ratio rises as a result.”

Not much in the way of sunshine and ponies there, right? Poloz is passing the buck, obviously. He admits that people borrowing excessively is “a rational response” to cheapo mortgage rates. But he also defends those rates by saying the cuts he made this year (January and July) were a necessary defence against the oil shocks.

The best way to deal with the Tom & Sarahs of this world, he suggests, is with “macroprudential measures” enacted by politicians. In other words, reigning in CHMC, clipping the wings of voracious bankers and halting the race to the bottom with gimmicks like the 1.85% mortgage dissed here a few days ago. This stands in oh-so stark contrast with the current election campaign, in which all three party leaders have turned into realtor pimps. It’s sad to see the Tories, Libs and Dippers encouraging higher debt and hotter house lust, telling people that buying an asset at the top of its value with a boatload of loans is somehow wise.

What shall we make of this?

I’d say the Bank of Canada is terrified of doing anything. Another rate cut just makes the debt monster bigger and the outcome worse. Raising rates, because politicians are gutless, just imperil an oil-ravaged economy. So leaving the country to give big speeches is safer. No rate change next Wednesday.

Let’s see what Monday night brings. But I’m not holding my breath. Courage has become uncommon, and I regret seeing another family roll the dice.

329 comments ↓

#1 bob Dog on 10.16.15 at 5:08 pm

Why is this not an election issue?

“Starting in 1974 the same Liberal government which nationalized our Bank of Canada (in 1938), slowly stopped using it… Now Canada’s national bank is responsible for only 2% of the money in circulation Today. Since 1974 Canada has borrowed from the same banks as you and me, and a debt of just $18 billion in 1974 (accumulated, since confederation) has ballooned a debt of over $500 billion; 95% of which is compound interest.

Let us state that again, 95% of our $500 billion debt is compound interest which we would not have had to pay if the Canadian Government had borrowed the money from our national bank. This massive debt was inflicted on us by politicians too stupid, lazy or corrupt (pick whichever one you think is true) to use The Bank of Canada’s ability to loan Canada money interest free.

On this debt we the tax payers are on the hook for an average of $34 billion per year (that’s $93,150,685 PER DAY, 365 DAYS A YEAR) through various levels of taxation. This is money that is paid to private banks and investors and is the reason that infrastructure, social programs, education, healthcare, arts and culture funding and more have suffered through the years while our taxes kept going up.

This amount does not include provincial and municipal payments on debt interest which brings the figure closer to $60 billion per year. That’s $164,383,562 PER DAY, EVERY DAY OF THE YEAR coming out of our economy going directly to private international bankers, rather than simply paying off the borrowed money, back to the Canadian population.”

Governments that create money and lend it to themselves will soon have worthless cash, unless they are (like the US) issuers of the planet’s reserve currency. The Bank of Canada cannot simply create money to buy things, so government funding is done through the issuance of marketable bonds, which pay the bearers interest. This is no election issue. — Garth

#2 Randy on 10.16.15 at 5:08 pm

People won’t like the ‘Change’ that will be coming.

#3 Drill Baby Drill on 10.16.15 at 5:16 pm

I know the BOC is independent of the PMO (not) so when son of Trudeau gets in next week will we see rate increases ?

#4 Owe Canada on 10.16.15 at 5:17 pm

I haven’t heard any discussion in this election campaign about two major problems we in Canada (as well as all of the other so-called advanced economies of the world) have, which I heard described nicely by a financial analyst on a money show on a Vancouver, B.C. radio station back in December, 2010:

“Way more money has been borrowed than will ever get repaid”

“Way more promises have been made by governments and so on than will ever be kept”

Interesting economic/financial system we have developed for ourselves in Canada in that it seems we have to constantly grow the debt in the economy significantly faster than the economy itself grows.

Our annual gross domestic product is $1.98 trillion. At the end of June, 2015 the total household, government (all levels) and business debt in Canada (total debt outstanding) was $6.02 trillion, and the total debt outstanding in Canada excluding domestic financial institutions was $5.04 trillion. The total debt outstanding is 3.04 times greater than our annual gdp, and the total debt outstanding excluding domestic financial institutions is 2.54 times greater than our annual gdp.

At the end of June, 2014 the total debt outstanding in Canada was $5.59 trillion. From the end of June, 2014 to the end of June, 2015 the total debt outstanding increased by $433 billion. This is an increase of 7.7%. At the end of June, 2007 the total debt outstanding was $3.74 trillion. In the last 8 years it increased by $2.28 trillion. This is an increase of 60.9%.

At the end of June, 2014 the total debt outstanding in Canada excluding domestic financial institutions was $4.66 trillion. From the end of June, 2014 to the end of June, 2015 the total debt outstanding excluding domestic financial institutions increased by $379 billion. This is an increase of 8.1%. At the end of June, 2007 the total debt outstanding excluding domestic financial institutions was $3.01 trillion. In the last 8 years it increased by $2.03 trillion. This is an increase of 67.5%.

(The start date of the Statistics Canada data table can be changed by clicking on the “add/remove data” tab at the top of the page.)

This link has information on the growth rate of Canada’s annual gdp in recent years.

#5 active on 10.16.15 at 5:18 pm

Looks like people are already lining up 24hrs in advance of the opening pre-sale purchase opportunity for Burrard Place in downtown Vancouver. Ridiculous. I received this email:

“We would like to take this opportunity to express our gratitude at the enthusiasm Vancouver has expressed for One Burrard Place. The demand for One Burrard Place has been astounding!

In the past 24 hours we have been surprised to see a line-up forming outside our Presentation Centre in anticipation of tomorrow’s purchase opportunity. While we certainly appreciate the enthusiasm, we do not want potential homeowners lining up and exposed to the elements. As a result, we are adjusting our purchase protocol effective immediately.

We have begun keeping a sequential list of those in line. We are recording a list of names and their sequence in line. When we open our doors tomorrow at 12pm, we will be honouring that sequence……”

#6 MSM-Free Zone on 10.16.15 at 5:19 pm

“…In the same speech Poloz calls epic mortgages “a key vulnerability for the financial system.” He admits that “the main driver” of this mountain of dangerous borrowing “has been an increase in home-backed debt against a backdrop of rising house prices…..”
_________________________

Yeah, I can now see why the Bank of Canada is “terrified of doing anything”.

Brings a whole new meaning to the saying, “Nobody moves, nobody gets hurt.”

#7 Victoria Real Estate Update on 10.16.15 at 5:26 pm

Young American families make about as much money as young Canadian families.

However, young American families can buy beautiful, spacious, newer homes for a fraction of the cost of similar homes in any major Canadian city. This is true whether you consider freezing cold cities such as Winnipeg, Saskatoon, Regina, Calgary and Edmonton or cities like Victoria or Vancouver where it’s rainy and cold for 6 months of the year.

Interest rates are also at emergency levels in the US.

Imagine how low the monthly mortgage payments are for young American families for these homes.

$ 107 K, Tampa, Florida

$ 100 K, Coolidge, Arizona (Phoenix)

$ 74 K, Oklahoma City, Oklahoma

$ 101 K, Fort Worth, Texas

$ 109 K, Caldwell, Idaho (Boise)

$ 98 K, Thermal, California

$ 90 K, Indianapolis, Indiana

$ 85 K, Springfield, Missouri

All of the above houses have at least 3 beds, 2 baths, 1,800 sq. ft. of primary (above ground) living area, no older than 2005 and have an attached double garage. Foreclosure and auction homes were not included.

Based on what most election ads talk about, the federal election is, apparently, about the small things like the tiny amount of money that a Canadian family could save on payroll deductions, for example.

Many of the important issues are being ignored. For example:

•. How costly real estate is for young Canadian families and what this means for their financial future.

•. The position that Canada’s housing bubble has put the Canadian economy in. When compared to the improving American economy (no bubble in the US), it’s obvious that Canada’s bubble house prices have a lot to do with Canada being the only G7 country in recession in 2015.

•. How more action continues to be taken to keep Canada’s dangerous bubble inflated and the position this has put young Canadian families in.

#8 For those about to flop... on 10.16.15 at 5:26 pm

#7 For those about to flop… on 10.16.15 at 5:25 pm
So, I said sagely and uselessly, if you buy for over a mill you’ll need at least 20% down, plus closing costs, wiping out all your savings. Then you’ll have no liquidity, no retirement nestegg, a one-asset strategy with zero diversification and a mortgage of at least $800,000 which won’t stay at 3%. Property taxes, insurance, renos, maintenance and interest charges will far exceed the rent you now pay (by two grand a month), so you’re totally gambling housing prices in the next decade will continue to wildly inflate. Is that a risk worth taking?

So, they bought the house. Garth.

////////////////////////////////////////////
Head meet brick wall.Repeat until unconscious.

#9 Dave's my hero. on 10.16.15 at 5:27 pm

“No rate change next Wednesday. – Garth”
………………………….
But, but, but….. are you disagreeing with that soothsayer, economist extraordinaire David Madani?

Beats me. But the last I heard, he agreed with me. — Garth

#10 The New Blue is Orange okay Redish Orange on 10.16.15 at 5:27 pm

Including the NDP with encouraging house lust isn’t really fair. When Mulcair was asked about housing he said it might not end well. This reality hurt support. When asked how the NDP would encourage affordable housing? The reply was co-ops. Of course Trudeau, out of touch, promoted rent geared to income co-ops. Co-ops are not social housing. He’s the link on NDP co-ops. http://www.ndp.ca/news/tom-mulcair-supports-housing-cooperatives

Social housing is not the big issue when it comes to real estate. Mulcair doesn’t get it. — Garth

#11 Dave's my hero. on 10.16.15 at 5:30 pm

#9 “Beats me. But the last I heard, he agreed with me. — Garth”
…………….
I hear ya! It’s hard to keep up with his flip-floppin.

#12 freddy… on 10.16.15 at 5:32 pm

Steve is nearby selling particle board houses tonight. The end is nigh…

http://www.cbc.ca/news/canada/new-brunswick/harper-campaign-fredericton-ashfield-1.3275471

#13 MSM-Free Zone on 10.16.15 at 5:33 pm

“…..This stands in oh-so stark contrast with the current election campaign, in which all three party leaders have turned into realtor pimps…….”
_________________________

Prime Minister Heloc.

Sounds like a Greek tragedy in the making.

#14 MoneyDriven on 10.16.15 at 5:36 pm

Oil collapsed, commodity suffering, CAD down 30% and here is what Christy Clark thinks of our housing and economy:
“We don’t want housing to get out of the reach of most people,” she told reporters Wednesday, but added: “It’s the ugly, or difficult, downside to the great economic growth that we have in our province.”

http://www.ctvnews.ca/canada/home-prices-rise-quickly-in-toronto-and-vancouver-even-faster-in-some-suburbs-1.2610943

With idiotic politician and statement like this, can you really blame Tom & Sarah?

#15 espressobob on 10.16.15 at 5:38 pm

Somehow investing in one asset class doesn’t make much sense? If things go sour well at least the vid below will make “some” sense.

https://www.youtube.com/watch?v=BS-uvzNX_Vo

#16 Vundo on 10.16.15 at 5:45 pm

This blog is like a vaccine against whatever it is that caused Tom and Sarah to do that. Thank you for providing it free of charge. I may not be directly affected by this today, but knowing how to think about investment and RE correctly could someday save me hundreds of thousands of dollars.

#17 Edward on 10.16.15 at 5:46 pm

http://www.edmontonsun.com/2015/10/16/hicks-on-biz-hes-unlikeable-but-stephen-harper-will-again-be-prime-minister-with-a-majority

#18 Edward on 10.16.15 at 5:49 pm

“The choice, still, is Harper”

http://edmontonjournal.com/opinion/editorials/1016-oped-editorial

#19 Peter on 10.16.15 at 5:53 pm

“The truth about Trudeau”

http://www.saultthisweek.com/2015/10/15/the-truth-about-trudeau

#20 ROCK BEATS PAPER on 10.16.15 at 5:55 pm

Garth,

Are you sticking with the FED will raise this year? Have you factored in the probability of Negative Interest Rates (NIRP), in the US?

#21 Doug in London on 10.16.15 at 5:57 pm

I just don’t get it. They personally consulted Garth’s advice, and no doubt were warned of the bubble prices of housing as well as the much better alternatives, and bought a house anyways. Are they masochists? There are much better places to put your money. Say, has anyone noticed the DIRT CHEAP prices of CPD and XPF lately?

#22 Resumé of Justin Trudeau on 10.16.15 at 5:59 pm

In terms of career experience, all the 43-year-old’s chalked up is a couple years as a teacher in British Columbia. After that, he entered an engineering program but soon dropped out, then started another MA program but dropped that too. He became an MP shortly after, in 2008.

Do we really want such a person running a G7 nation? Do we really think he’d be able to sit at the international table as an equal with U.S. President Barack Obama and German Chancellor Angela Merkel?

In other words, he spent the years before entering politics dabbling in this and that, drifting about without any commitment to work or school?

#23 JSS on 10.16.15 at 6:02 pm

Obviously the $1M house Tom and Sara bought will have high utility costs in order to run.

They were better off buying the Hydro One IPO. Not the whole $250K, but a little bit.

Offer price: $19 – 21/ share
Market cap @IPO: < $1.87B
Payout ratio: 70-80%

Dividend: ~ 4%/yr (initially)

http://www.theglobeandmail.com/globe-investor/investment-ideas/research-reports/hydro-one-will-be-a-dividend-stock-worth-considering/article26829880/

#24 Canadian on 10.16.15 at 6:05 pm

Look how a misplaced belief in courage wound up for Jim Prentice.

To the moon!

#25 Freedom First on 10.16.15 at 6:06 pm

#176 Freedom First-yesterday’s comment

I rest my case. RE=The Holy Grail. Tom is screwed.

#26 BC Guy on 10.16.15 at 6:11 pm

Dear Young Canadians:

Do you know how screwed you are? The Financial Post article sums it up. Here are some key points:

– many of the Boomers got great-paying jobs with generous pension plans – the majority of young Canadians will not

– your jobs have been outsourced, downsized, eliminated – if you get a job these days, your pension plan will be much less generous

– you are paying much more in CPP deductions than the Boomers, but they will get to collect more than you, and by the time you are ready to retire, the CPP may be drastically cut

– the Boomers get to start collecting Old Age Security payments at age 65, you’ll have to wait until you’re 67

– the Boomers paid much less for a house, sometimes one tenth of what a house costs today – Boomers got cheap houses and have rode the wave and become millionaires – you can’t afford a house, maybe if you’re lucky you’ll buy a condo and spend 20 years trying to pay it off, otherwise, you’ll be renting for a long time (as Garth suggests)

– the Boomers can avoid paying taxes on their income and wealth by shielding it in RRSPs, TFSAs, RIFs and insurance policies – you can’t afford to save anything because you’re paying the lion’s share of your income for rent or a sky-high mortgage
– Boomers got a cheap education – you’ll have to take on massive amounts of student debt to get the same education
– Boomers have lots of government jobs to choose from – there are much fewer govt jobs now because of all the cutbacks
– cities are more crowded, the air more polluted, traffic worse, car insurance much higher

See how screwed you are? This is the path the Conservative government has set this country on in the past ten years. On election day you can give up, not vote and nothing will change. Or you go and cast a ballot and hope for a new, better government that will start to unravel all the inequities in our society, particularly for young people. Here is the article from the Financial Post:

http://business.financialpost.com/personal-finance/family-finance/high-net-worth/how-this-couple-with-4-58-million-net-worth-can-reduce-the-clawback-on-their-substantial-savings

#27 mark on 10.16.15 at 6:13 pm

He’s passing the buck, but in a way he’s right. Interest rates aren’t just about mortgages, it’s up to other regulators to also ensure there’s proper restrictions so when interest rates are low the lunatics can’t borrow their brains out and they end up stimulating the right areas of the economy.

But when was the last time that happened?

So you have to ponder what’s the deal? Do politicians just love people to be in mega mortgage debt because they’re easier to control and manipulate?

#28 totalinvestor.com on 10.16.15 at 6:13 pm

This says everything

http://tinypic.com/r/26214y0/8

#29 Liberals on 10.16.15 at 6:23 pm

Is this what the Liberal party has become? Canadians basically kill off the Liberal party with accomplished people like Stephane Dion and Michael Ignatieff at the helm. Now they’re putting all their future hopes on the son of an ex-prime minister with only some star power but no accomplishements or experience of his own.

And because of our apparent hatred of Stephen Harper we’re about ready to let Justin run our country. Seriously?

#30 Myths on 10.16.15 at 6:25 pm

Don’t believe the myths.

CMHC’s books show only 5% of outstanding mortgages are for amounts over $400,000.

And On top of that, 50% of homes don’t have mortgages.

#31 BC Guy on 10.16.15 at 6:31 pm

Tom Mulcair puts Harper in his place, big-time!

(Make sure to watch till the end.)

https://www.youtube.com/watch?v=SdYXvA7ZuGk

Go knock on doors instead of campaigning here. — Garth

#32 Blobby on 10.16.15 at 6:32 pm

#29 – liberals:

You DO realize that Trudeau has had more experience than Stephen had when he came into power?

He has nicer hair too.

#33 PeterfromCalgary on 10.16.15 at 6:36 pm

I don’t get it. You can buy a much bigger house then you need and is long as it is your primary residence the capital gains are tax free. However, the liberals and the NDP are going to roll back the enhanced TFSA to 5000 Liberal or 5500 NDP. That means you can only invest $416 to $458 per month tax free. This is nothing compared to the average people invest in their houses. It smells like social engineering. Only instead of engineering something smart like smoking or drinking less they are engineering something stupid a one asset strategy

#34 Interstellar Old Yeller on 10.16.15 at 6:43 pm

So, they bought the house.

Welcome to the sound of a million face-palms. I’d say we’ve seen the last of Sarah’s part-time hours, at the very least.

#35 prairie person on 10.16.15 at 6:49 pm

Interest rates to rise ‘sooner rather than later’, says Bank of England’s Kristin Forbes

#36 Gulf Breeze on 10.16.15 at 6:59 pm

#5. Lining up to buy a condo in a global real estate market where huge pools of capital are flowing out of areas perceived to be risky, to parts of the planet that appear less risky, is not necessarily ridiculous.

It could be the ‘new normal’. Nobody wants to take a good look at regional disparity in real estate prices and how it reconfigures the economic and political landscape. Cheap money and global money exaggerate the class divide by region.

The U.S became third world, due to income stagnation, in part driven by poverty in Mexico. The U.S. made it impossible for Mexicans to immigrate legally, aftrer the maquilladoras were put out of business by cheaper Chinese factories. U.S business, preferring the cheap labor that powerless illegals provided, helped to bring down the standard of living, particularly for the bottom tier of the wage ladder. Sub prime was the ‘answer’. We know where that led. The US coming to resemble a third world country with strong men fascists like Trump, garnering mind boggling support.

We have our own version of sub prime in Canada now due to low rates, mortgages that renew every 5 years and low interest rates to help oil and other exporters. As well, the pools of global money buttress the regional unevenness of house prices.

Strange that we are marching towards the great divide, just like the Americans. In fact, like it or not, we have probably arrived.

We are looking more and more third world, and without strong nation states to put the brakes on it, it will continue. And it may be too late to halt, rewarding the ‘strong’ (whatever that is. In an oligopoly it often boils down to the least principled players) and punishing the ‘weak’ (people with scruples).

A vote for the tfsa, alone, disproportionately benefits the wealthy. It would better to take that money and put it towards infrastructure, education, our medical system.

If you are wealthy, consider voting for ‘we’ rather than ‘me.’ Consider who Rob Ford is voting for. You want to be part of that A team? No wait that’s the ‘I’ team. Me me me me and oh…me!

As a brief aside, I believe Poloz meant a global effort to do something to curb the ongoing race to the bottom, when he mentioned macroeconomic prudential policies.

#37 Paully B on 10.16.15 at 7:05 pm

PENNYWISE LIVES!

#38 MSM-Free Zone on 10.16.15 at 7:06 pm

I could probably come up with one or two self-indulgent, selfish reasons (TFSA increase, yadda, yadda) to vote for Stephen Harper and his Conservative(?) Party of Canada.

Unfortunately, I also witnessed 125 additional reasons why I just can’t vote for the man and his current party ever again (yeah, I’ve been paying attention):
1. busted for Contempt of Parliament (first PM in history),
2. repeatedly busted by the Supreme Court of Canada,
3. prorogued Parliament twice for self-gain,
4. lied about fixed election dates,
5. lied about taxing income trusts,
6. lied about balanced budgets,
7. lied about the PMO knowing nothing of the Duffy affair,
8. campaigned on openness, transparency, and accountability,
9. …then delivered the complete opposite,
10. criticized stacking the Senate, said he wouldn’t appoint any new senators,
11. …then stacked the senate with a record 59 partisan new senators,
12. …then, with a newly-stacked senate, said he would stop appointing new senators,
13. criticized opposition omnibus bills, then loaded up his own record number of omnibus bills,
14. coined a 200-page parliamentary committee disruption manual,
15. continuous, repetitive, and re-inventive contempt for Canadian democracy,
16. schemed a Conservative Party ‘In-and-Out’ riding funding scam,
17. schemed a Conservative Party logo Action Plan cheque scam,
18. fabricated RoboCall voter suppression,
19. falsified stories about Canadians voting with discarded voter cards, then
20. rigged a so-called ‘Fair Election Act’ encouraging Conservative bias and opposition suppression,
21. rigged a so-called ‘Fair Election Act’ to bias election spending toward wealthier political parties,
22. rigged a so-called ‘Fair Election Act’ to double election time-frame in order drain opposition party funding,
23. rigged a ‘Plagiarizing-the-Media’ Act to steal Media material for partisan attack ads,
24. couldn’t find a Canadian qualified enough in the “dark political arts”, so,
25. hired an Australian TFW, skilled in “the dark political arts” to rescue a failing election campaign,
26. after labelling Bill C-51 an important bill requiring debate over extraordinary powers, attempted limiting Commons debate to just 3 days,
27. after labelling Bill C-51 an important bill requiring debate over extraordinary powers, failed to show up for Commons debates,
28. cancelled the traditional parliamentary debate following speech from the throne,
29. muzzled his own backbenchers,
30. snubbed first ministers conferences,
31. gutted Statistics Canada,
32. gutted long-form census, citing privacy concerns, then loaded up on CSIS privacy surveillance,
33. gutted Canada Revenue agency auditors, encouraging off-shore tax havens,
34. muzzled Canadian scientists, shredding truckloads of documents,
35. muzzled Access to Information requests,
36. muzzled Chief Electoral Officer investigations,
37. muzzled federal department reports during the election campaign,
38. snubbed traditional televised election debates,
39. herded election reporters into lockdown rooms before campaign speeches,
40. snubbed campaign media questions, taking only limited partisan scripted campaign questions,
41. barred hand-picked election campaign attendees from media questions,
42. barred reporters from interviewing voters after campaign speeches,
43. appointed ‘integrity commissioner’ Christiane Ouimet; only to be later charged with marginalizing, intimidating, and harassing PSIC whistleblowers,
44. multiple partisan character assassinations:
45. Supreme Court Chief Justice Beverly McLachlin character assassination,
46. Chief Electoral Officer Marc Mayrand character assassination,
47. Chief Statistician Munir Sheikh character assassination,
48. Auditor General Sheila Fraser character assassination,
49. Parliamentary Budget Officer Kevin Page character assassination,
50. Employment Insurance Investigator whistleblower Sylvie Therrien, character assassination,
51. Veterans Affairs Ombudsman Pat Stogran character assassination,
52. RCMP Superintendent Marty Cheliak character assassination,
53. Military Police Complaints Commission Chairman Peter Tinsley character assassination,
54. Canadian Nuclear Safety Commissioner Linda Keen character assassination,
55. Canadian diplomat Richard Colvin character assassination,
56. MP Irwin Cotler character assassination,
57. MP Garth Turner character assassination,
58. flippant acknowledgment of Flora MacDonald’s passing, completely disregarding her funeral,
59. policy announcements commonly made overseas, too cowardly to make them here at home,
60. blocked NAFTA’s environmental investigations into Alberta tar sands,
61. vetoed UN labelling of asbestos as a dangerous material,
62. defended draconian justice and super prison system based solely upon vengeance and not fact,
63. defended senator Pamela Wallin expense scam,
64. defended $90,000 Nigel Wright/Mike Duffy senator expense scam,
65. tried to quash a Deloitte audit of senator Mike Duffy’s expenses,
66. self-admittedly clueless regarding the corruptions within the PMO office,
67. refused to answer media questions during campaigning regarding the Duffy affair,
68. maintained an empty $180,000 ‘office of a corporate social responsibility counsellor’ with no counsellor,
69. defended $1.044 million Diane Finley misappropriation to a Jewish community centre,
70. blew $1.2 million taxpayer dollars on a religious trip to Israel,
71. defended $13.4 million taxpayer dollars on partisan tax audits of opposition think tanks and charities,
72. blew $24 million taxpayer dollars on advertising for Big Oil,
73. blew $28 million taxpayer dollars on celebrating the war of 1812,
74. blew $50 million taxpayer dollars on John Baird/Tony Clement gazeboes,
75. blew $100 million taxpayer dollars on advertising of non-existent Action Plan programs,
76. blew $750 million of tax-payer dollars for partisan pre-writ program advertising,
77. inflated 2015 election cost to $500 million, extended 2015 election campaigning to 77 days,
78. blew $1.2 billion on a fake lake G20 summit,
79. misplaced $3 billion and couldn’t account for it,
80. blew $4.3 billion taxpayer dollars to farmers completely negating consumer savings from agricultural free markets,
81. lied about $126 billion F-35 fighter jet cost overrun, then cooked two sets of F35 books,
82. bribed Canadians at election time with July lump sum Universal Child Care Benefit (UCCB),
83. …while later clawing back most of the UCCB benefit through income taxes and cancellation of an existing child tax benefit,
84. directed an entire projected budget surplus toward income splitting tax breaks for those who least need it, despite opposition from his own finance minister,
85. promoted doubling the TFSA annual amount to benefit mostly the wealthiest 5% of the country, despite widespread opposition from backbenchers, academics, and his own PBO,
86. yet, incredibly, delayed payouts of Old Age Security to 67 for those who most need it, citing government unafforability,
87. ran multiple consecutive budget deficits, despite repeatedly promising to balance the budget,
88. faked a budget deficit pre-election, then cooked a budget surplus during the election,
89. cooked a balanced budget by raiding E.I. and burning the furniture to keep the house warm,
90. traded traditional neutral peace-keeping for one-sided partisan war-mongering,
91. plagiarized a warmongering speech from Australian Prime Minister John Howard,
92. then, tried desperately to drag Canada into George Bush’s unwarranted invasion of Iraq,
93. threw rocks at international bees’ nests, running back to Canada with bees in hot pursuit, yelling “terrorists are coming!”,
94. then, incredibly, promised $10 million taxpayer dollars to research terrorism and radicalization,
95. directed bureaucrats to provide 3 terrorism-related fear statements a week for Minister Nicholson,
96. faked multiple overseas photo ops with active Canadian service men and women,
97. then, threw returning wounded servicemen/women under a bus,
98. became a champion Veteran funeral-crasher and photo-opportunist,
99. closed multiple Veterans Affairs offices across the country,
100. diverted $1.13 Billion unspent Veteran funding toward tax cuts for those who least need them,
101. abandoned women and a paraplegic in the face of danger for a run to a closet,
102. threw thalidomide victims under a bus without further compensation until election campaign,
103. lied about Terry Fox family approval of partisan campaign charity donations,
104. continues to gut Canadian manufacturing with global Free Trade agreements,
105. violated Canada’s ‘caretaker convention’ while secretly negotiating TTP during an election campaign,
106. repetitively violated labour rights entrenched in the Canadian Charter of Rights,
107. gutted Canadian working middle class wages with Temporary Foreign Workers,
108. expanded Temporary Foreign Worker Program for 15% less than Canadian market wages,
109. over 400,000 Temporary Foreign Workers now in Canada with minimal federal oversight,
110. labeled farmer majority vote to keep the Canadian Wheat Board as ‘inconsequential’,
111. faked support for free-market supply/demand principles while protecting agricultural marketing boards,
112. faked support for agricultural marketing boards, while throwing them under the TPP bus,
113. faked support for Ontario manufacturing while throwing auto parts manufacturing under TPP bus,
114. staged a fake Sun News citizenship dog and pony show,
115. formed a partnership with the CPA, the same CPA fighting the government over KPMG tax fraud,
116. blind-sided by 2008 recession, no economic backup plan,
117. blind-sided by falling oil prices, no economic backup plan,
118. blind-sided by failing resource extraction economy, no economic backup plan,
119. deliberately delayed federal budget with no cards left to play,
120. tried desperately to re-write the definition of recession, one day before announcement of a recession,
121. blind-sided by falling Loonie, no economic backup plan,
122. continues to pump up record Canadian home unaffordiblity, now our primary, one-trick economy,
123. career politician, never held a real job in his life,
124. most unprincipled, deceitful, hypocritical, vindictive, paranoid, fear-mongering prime minster in Canadian history,
125. no openness, no transparency, no accountability, no democracy, no integrity, no conscience, no apologies, no courage, no compassion, no clue, no class.

I ranked a lousy 57th? — Garth

#39 saskatoon on 10.16.15 at 7:08 pm

#1 bob Dog

“Governments that create money and lend it to themselves will soon have worthless cash, unless they are (like the US) issuers of the planet’s reserve currency. The Bank of Canada cannot simply create money to buy things, so government funding is done through the issuance of marketable bonds, which pay the bearers interest.”

– garth turner

“in the colonies we issue our own money. we issue it in proper proportion to the demands of trade and industry to make the products pass easily from the producers to the consumers. in this manner, creating for ourselves our own paper money, we control its purchasing power, and we have no interest to pay to no one”

– benjamin franklin

#40 Gulf Breeze on 10.16.15 at 7:12 pm

#7 Victoria real estate update:

The reason houses are so cheap in the areas you mentioned is because the economies are weak, people are poor and banks haven’t gotten back into the business of making even reasonable loans to credit worthy people. This is slowly changing, so I hear. But still, in many areas, landlords do much of the buying.

The young family you mention, as an example, are headed by single parents, struggling on minimum wage, quite frequently. Even if there’s are Teo wage earners in the family, they are often drawing min wage only.

#41 bdy sktrn on 10.16.15 at 7:13 pm

***breaking poll data***

as of 4 hours ago my daughters grade 9 class ‘voted’

(30 votes)

ndp 22
lib 6
pirate party 2
cons 0

———-
libby davies used to hang around after the bell.

Does this reflect what the teacher taught? — Garth

#42 Mark on 10.16.15 at 7:18 pm

He’s passing the buck, but in a way he’s right. Interest rates aren’t just about mortgages, it’s up to other regulators to also ensure there’s proper restrictions so when interest rates are low the lunatics can’t borrow their brains out and they end up stimulating the right areas of the economy.

So true. The non-FIRE desperately needs low (and even lower) rates as it has done extremely poorly since the early 2000s. The FIRE/public sector portion of the economy needs higher rates as it has obviously been quite overheated over the past few years.

The problem, which comes down to poor leadership, was that the CMHC system of subprime mortgage insurance was used extensively in the past decade to manipulate the cost of mortgage credit. CMHC stimulation in the early 2000s was a rational response to the popping of the tech bubble. However, when it was clear that the economy had picked up — CMHC rules should have been tightened.

Except what happened? “F” brought in the zero down/40 year amortizations in 2006. And the real tightening didn’t occur until 2013 when “F” announced that there would be no more expansion of the CMHC subprime guarantee authority. Coincidentally this marked the peak of the Canadian housing market.

If CMHC was a legitimate ‘insurance’ company, they would have been ramping up their premiums and ramping down their exposure as risk continued to rise along with prices. Except they didn’t. Which is why CMHC’s failure is pretty much baked into the cake.

CMHC’s board being stacked with a bunch of RE and finance industry people directly speaks to a government which has basically put the fox in charge of the henhouse. This is something that the Harper government can be directly faulted for. Whomever wins on Monday night will have, in time, a giant mess to clean up as the Canadian housing market continues to experience declines and the BoC is without policy tools to arrest the decline as they were able to in 2009.

#43 NextYear on 10.16.15 at 7:20 pm

Isn’t this the same song we have been hearing for the last couple years?

They warn people not to take to much debt because rate will rise and then lower the rate more and more?

This time it’s different though… rate will rise next year!!! yeah right!!! Next year the 5 year fix will probably be at 1.2%

#44 Mark on 10.16.15 at 7:22 pm

“I don’t get it. You can buy a much bigger house then you need and is long as it is your primary residence the capital gains are tax free. “

On the flip side, and more relevant on this point, is that there is no credit for capital losses in housing. And at these elevated multiples, for the next few decades, capital losses are quite likely.

The ‘social engineering’ may very well be social engineering a large chunk of Canadian families to the poorhouse. The legacy of a government which basically bet the farm on high housing prices by pumping subprime credit through the CMHC, rather than encouraging more diversified portfolios amongst the Canadian investing public.

#45 Smartalox on 10.16.15 at 7:25 pm

@ Liberals, Justin Trudeau’s Resume and the other ‘sock puppet’ comments:

Trudeau has more years as an MP that either Stephen Harper or Pierre Eliot Trudeau did, when they became prime ministers. More years in Parliament than most party leaders, not parachuted into the job of ‘party leader’ six months before an election, either.

Despite the narrative promulgated during the Harper years, the PM doesn’t have to be the ‘smartest guy in the room’. If the PM makes all the decisions and tells everyone else what to do, then that PM is an autocrat at best, a dictator at worst.

Justin Trudeau’s ‘training’ for the position is in being able to work with others, to get the most out of his other candidates in their areas of expertise, and find ways to forge consensus. He also watched his father do much the same as PM, sitting in the room as the PM and the Premiers hammered out the Constitution, and the Charter of Rights and Freedoms. And then getting a nightly play-by-play, and a chance to ask questions about why things turned out that way, whether things could have been different, or better.

There are those on this board who fault formal education for turning young minds into ill-informed consumers, members of a ‘herd’ of sheeple, unable to see the wool over their eyes. Well, there’s no ‘diploma’ course to be Prime Minister; Poli-sci grads don’t become politicians, they enter the civil service, or become lobbyists and consultants to government.

“Learn from life” we’re told; “graduate from Google University!” or “fake it till you make it!”.

Except if you’re running for the one job in this country that doesn’t require any education more formal than being over the age of 18. Then, apparently, you need two degrees, a doctorate, and 15 to 20 years in law. Or business.

Except that the current PM has only one degree, in Economics, that hasn’t done much for the economy. And really no career in that field, but plenty of politicking. And instead of building consensus from the experience of elected parliamentarians, he’ll get them from the unelected appointees in the PMO, and squelch anyone who doesn’t agree, or (heaven forbid) makes him look bad.

#46 DM in C on 10.16.15 at 7:29 pm

$2000 extra per month on $140k. PT hours. 38 and two kids under four!?! Blew their whole nest egg on 20% down, no CMHC.

I got nauseated reading this story…. I knew where it was going. Someone’s got the gimmies and the ‘I deserve it’s .

I worry at 45, two kids @ 16 & 20 (one out, one heading out with RESP) and $175k income that we overbought at $540k! Well, I know we overbought – we don’t need 2500 sq ft. Not to mention the unfinished basement. Oy vey.

How do these people sleep at night?

#47 Suede on 10.16.15 at 7:30 pm

OK, what about a Comment Section Poll

Who here prefers..
A) Reading Mark
B) Reading Smokie
C) Garth only replies

Who here…
A) wants to see a copy of the deleted posts and would pay into a charity pool to read them
B) doesn’t want A)

#48 ANON on 10.16.15 at 7:32 pm

So, they bought the house.

Of course they bought it, there would not be a delirious manic frenzy in housing if they (and others) didn’t. The frenzy would be in something completely different, like, say, ummm… can’t think of anything, it looks like it is already in pretty much everything. :)

#49 Nora Lenderby on 10.16.15 at 7:36 pm

When a pair of bright, talented people just up and throw themselves and their family off the deep end like that…it’s pretty sad.

Fancy waterfront house here (~700K, owned by a doctor) taken off the market a few days ago. Presumably no interest at such a high price. He’ll have to carry it for another year.

#50 For those about to flop... on 10.16.15 at 7:37 pm

#29 Liberals on 10.16.15 at 6:23 pm
Is this what the Liberal party has become? Canadians basically kill off the Liberal party with accomplished people like Stephane Dion and Michael Ignatieff at the helm. Now they’re putting all their future hopes on the son of an ex-prime minister with only some star power but no accomplishements or experience of his own.

And because of our apparent hatred of Stephen Harper we’re about ready to let Justin run our country. Seriously?

#30 BC Guy on 10.16.15 at 6:31 pm
Tom Mulcair puts Harper in his place, big-time!

(Make sure to watch till the end.)

https://www.youtube.com/watch?v=SdYXvA7ZuGk

Go knock on doors instead of campaigning here. — Garth

//////////////////////////////////////
Hey boss for the sake of equality ,you could have had the same comment under both these comments.
I for one will be glad when the mud slinging ends and we get back to freedom and finances .

#51 Patrick on 10.16.15 at 7:38 pm

I was in Peru last week, same time as the G20 conference (but not for the conference), and I noticed that there is a Scotiabank on almost every street corner of that country.

It makes sense, with Canadian debt levels at 1.65x disposable income how can you possibly lend anymore to heavily indebted Canadians. Canadians can only take on so much more debt (I hope).

#52 Ralph Cramdown on 10.16.15 at 7:41 pm

“And because of our apparent hatred of Stephen Harper we’re about ready to let Justin run our country. Seriously?”

Seriously. Harper went into the election in fourth place in party leader approval ratings. The Conservatives are the second choice of almost no voters (fourth place again). It was going to be Trudeau or Mulcair, and once it started braking toward one of them, it was inevitable.

The Globe and Mail has already called on Harper to resign immediately after the election. What does that tell you?

#53 MSM-Free Zone on 10.16.15 at 7:43 pm

I ranked a lousy 57th? — Garth
____________________

Actually, being a long-time reader, you were well within in the top five, but I didn’t want it to go to your head.

#54 Wise Grasshopper on 10.16.15 at 7:46 pm

“…It is not the role of monetary policy to protect individuals from making bad choices”

yeah, but as sure as heck the Government will bail people out by taking money from responsible people and giving it to folks who pissed away their money on booze and cigarettes.

#55 Scumop on 10.16.15 at 7:50 pm

Tom and Sarah, oh my.

… At age 65, I told them, they should have about two million bucks, and a life-long retirement income north of $150,000. Or, they can buy a house.

“We really don’t wanna spend more than $950,000,” Tom said when we met. “But we’ve been pre-approved to purchase a property as high as $1.2 million. That’s what Sarah wants. Besides, wouldn’t we be smart …

And at that point I almost gave my self a serious facepalm. Good thing I didn’t have a mouth full of food or beer, or my screen and keyboard would have been done for.

Its painful to contemplate that kind of thinking. Perhaps because of spending so much time reading GT, but painful nonetheless.

#56 Brian Ripley on 10.16.15 at 7:50 pm

re: “It is not the role of monetary policy to protect individuals from making bad choices.” Stephen Poloz

Gee, maybe it is… especially the individuals making the decisions at the Bank of Canada. Have you ever heard of Japan?

We have had ZIRP for 6.5 years and what in the economy has changed for the better?

http://www.chpc.biz/household-debt.html

1) Household debt at historic highs.
2) Net FDI (Federal Direct Investment) has been negative since just before the dot-com crash.
3) Net Trade has been negative since 2008
4) GDP has stalled.
5) CPI is below BoC target of 2%
6) National Unemployment is 7.1% and ticking up
7) Employment rate is 61.2% and ticking down
8) 45% of population earns less than the national average.

What has changed for the better? Government revenues from taxes on land transfers and I can still buy bananas at 67 cents/lb.

Go Jays go.

#57 McFly604 on 10.16.15 at 7:52 pm

Governments that create money and lend it to themselves will soon have worthless cash, unless they are (like the US) issuers of the planet’s reserve currency. The Bank of Canada cannot simply create money to buy things, so government funding is done through the issuance of marketable bonds, which pay the bearers interest. This is no election issue. — Garth

Did it not work from 1938-1974? Or are there other factors that sent national debt soaring post 1974?

#58 Scully on 10.16.15 at 7:54 pm

#32 Peterfromcalgary,
You just made me change my vote. I was on the fence but I was going to vote Liberal as I always have, but breaking down the TSFA monthly to such piddly amounts hit home with this financial f&ckup. I don’t want to be penalized for trying to save for retirement. This is going to be an interesting election. Oh and for blog dog demographics I’m a bitch. ;)

#59 Retired WI Boomer on 10.16.15 at 7:55 pm

Having read no comments yet tonight, I’ll put in my .02 worth anyway.

Sorry for Tom & Sarah. They threw away their marriage on a gamble. While $140K is a huge income, it sucks ass when you are buying a 1 million plus home.

Gosh I hope for Canadians sake the place goes into the shitter like we did, along with all the attendant heartache.

No better cure for financial stupidity, than to get smacked right in the puss with the regret of your error!

Sorry, guys you just “bet the house”….

#60 Daisy Mae on 10.16.15 at 8:02 pm

#15: “….but knowing how to think about investment and RE correctly could someday save me hundreds of thousands of dollars.”

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

It’s a shame young people don’t think about investments, portfolios. It takes time to grow up –to understand, to realize. That’s reality. That’s life. We all learn the hard way.

#61 Victoria Real Estate Update on 10.16.15 at 8:03 pm

# 39 Gulf Breeze

You didn’t read what I wrote.

Household income levels in Canada and the US are similar.

The Canadian economy is in recession. The US economy isn’t.

Try another excuse and try reading what I write next time.

#62 vulcan without ears on 10.16.15 at 8:05 pm

Roll the dice? No, more like rolling the barrel of a gun with 5 bullets in it to play the russian roulette…

#63 Chaddywack on 10.16.15 at 8:19 pm

We regulate other things that are potentially bad for us. Why not regulate people’s ability to get into debt?

#64 Smoking Man on 10.16.15 at 8:20 pm

I have 7 cell phones on my corp account.

Fee creep.

So took an old Galaxy S4 put it on wind mobile. Just to use in the USA unlimited roaming data calls 50 bucks a mouth.

I read scathing reports, it sucks bla bla.

I believe non of what I hear, half of what I see.

Well my bill will go from 2kk+ a month to 350.

Well Im impressed. Speed ok, data a touch slower .

Next week im switching all my phones to Wind…

I booked Senica for tomorrow night to test in USA.

Im on a mission. Without crazy roaming and data. Lots of deletes tomorrow. Free to Me.

#65 I am the Babblemaster on 10.16.15 at 8:24 pm

“Then you’ll have no liquidity, no retirement nestegg, a one-asset strategy with zero diversification and a mortgage of at least $800,000 which won’t stay at 3%.” – Garth

—————————————————————

No it won’t stay at 3%. It will be lower.

#66 I am the Babblemaster on 10.16.15 at 8:30 pm

“He admits that people borrowing excessively is “a rational response” to cheapo mortgage rates. But he also defends those rates by saying the cuts he made this year (January and July) were a necessary defence against the oil shocks.” – Garth on Poloz

———————————————-

Why doesn’t he just shut his mouth. He, Carney, Harper have lowered rates precisely so that people would spend and spend. By saying these things, he’s just protecting his hiney. Just in case. Politicians.

#67 Trojan House on 10.16.15 at 8:32 pm

Governments that create money and lend it to themselves will soon have worthless cash, unless they are (like the US) issuers of the planet’s reserve currency. The Bank of Canada cannot simply create money to buy things, so government funding is done through the issuance of marketable bonds, which pay the bearers interest. This is no election issue. — Garth

Spoken like a true politician. Sovereign debt is the single biggest bubble that will eventually pop. But of course, it gets swept under the rug because governments are different – right?

Nothing swept. It was the answer to a naive question. You have deliberately taken it out of context. — Garth

#68 Overheard at Costco on 10.16.15 at 8:34 pm

Heard a father tell his son that he can take money from his RRSP to buy a house and not have to repay it for 15 years. He then proceeded to tell his son this “valuable” advice: “since houses always go UP in value, you use your house equity to buy stuff and always remortgage the house whenever possible” using this magically gained equity (ie: to infinity, I guess)

I just wanted to ask the guy if he really hated his son THAT MUCH, but since he was a boomer I told myself that he would probably be too dumb to understand what I was talking about…Greaterfools indeed!!

#69 Smoking Man on 10.16.15 at 8:34 pm

#46 Suede on 10.16.15 at 7:30 pm
OK, what about a Comment Section Poll

Who here prefers..
A) Reading Mark
B) Reading Smokie
C) Garth only replies

Who here…
A) wants to see a copy of the deleted posts and would pay into a charity pool to read them
B) doesn’t want A)
….

If my deleted posts ever become public. Im in trouble.

Moslems
Jews
Christians
Lesbians
Gays
Chinees
Indians
White People
Blacks
Big Red Rock Eaters
Hookers
The Pope
Obama
Putin
Suzuki
Gore
Especialy, Harpo, Wynee, Justin, the commies and everyone who pretends to be normal.

Rob Ford is the only one that won’t come for my head. If weaki leaks ever hacks Garthos server.

#70 Sheane Wallace on 10.16.15 at 8:38 pm

of course issuance of bonds makes sense when there is a need to run substantial deficit. Or you have a gold standard.

but the interest on that bond of 4-5 % on much lower debt would be still much less than the current debt payments.

The goal of the debt is to skim from the interest, there is never repayment of debt, only growth. That is by intend. Let’s not forget who invented the international bond bearer market.

#71 Sheane Wallace on 10.16.15 at 8:45 pm

GT, smart choice to filter that out, I guess it can’t be posted officially on this site,

Cheers

#72 Smoking Man on 10.16.15 at 8:47 pm

DELETED

#73 Sheane Wallace on 10.16.15 at 8:49 pm

Not suprising….

https://ca.news.yahoo.com/blogs/canada-politics/twitter-atitter-over-globes-half-hearted-election-223205033.html

“It is not time for the Conservatives to go,” said the editorial. “But it is time for Mr. Harper to take his leave.”

#74 SWL1976 on 10.16.15 at 8:51 pm

#1 bob Dog

Why is this not an election issue?

“Starting in 1974 the same Liberal government which nationalized our Bank of Canada (in 1938), slowly stopped using it… Now Canada’s national bank is responsible for only 2% of the money in circulation Today. Since 1974 Canada has borrowed from the same banks as you and me, and a debt of just $18 billion in 1974 (accumulated, since confederation) has ballooned a debt of over $500 billion; 95% of which is compound interest.

Let us state that again, 95% of our $500 billion debt is compound interest which we would not have had to pay if the Canadian Government had borrowed the money from our national bank. This massive debt was inflicted on us by politicians too stupid, lazy or corrupt (pick whichever one you think is true) to use The Bank of Canada’s ability to loan Canada money interest free.

On this debt we the tax payers are on the hook for an average of $34 billion per year (that’s $93,150,685 PER DAY, 365 DAYS A YEAR) through various levels of taxation. This is money that is paid to private banks and investors and is the reason that infrastructure, social programs, education, healthcare, arts and culture funding and more have suffered through the years while our taxes kept going up.

This amount does not include provincial and municipal payments on debt interest which brings the figure closer to $60 billion per year. That’s $164,383,562 PER DAY, EVERY DAY OF THE YEAR coming out of our economy going directly to private international bankers, rather than simply paying off the borrowed money, back to the Canadian population.”

Governments that create money and lend it to themselves will soon have worthless cash, unless they are (like the US) issuers of the planet’s reserve currency. The Bank of Canada cannot simply create money to buy things, so government funding is done through the issuance of marketable bonds, which pay the bearers interest. This is no election issue. — Garth

Actually Canada had a very modest rate of inflation up until 1974. Our National bank also funded many major infrastructure projects, snapped us out of the depression, and was used to build the 3rd largest navy in the world at the time of WW2

I’d say it is a pretty big issue. However, we have been conned into believing that it is not

Private banks have, and do create most of the problems in our modern world

It might not be politically correct to say, but it’s true, and that’s no lie

For those who would like to seek some answers for themselves… Here’s some clues

#75 Gray Man on 10.16.15 at 8:51 pm

#1 bob dog
Why is this not an election issue?
———————————-
http://www.globalresearch.ca/the-case-to-reinstate-the-bank-of-canada/5430132

Why not I ask also ?

Because it’s utterly nonsensical. We should have world peace, too. — Garth

#76 BS on 10.16.15 at 8:54 pm

In terms of career experience, all the 43-year-old’s chalked up is a couple years as a teacher in British Columbia. After that, he entered an engineering program but soon dropped out, then started another MA program but dropped that too. He became an MP shortly after, in 2008.

Do we really want such a person running a G7 nation? Do we really think he’d be able to sit at the international table as an equal with U.S. President Barack Obama and German Chancellor Angela Merkel?

In other words, he spent the years before entering politics dabbling in this and that, drifting about without any commitment to work or school?

Seriously, Jr. Trudeau wouldn’t be qualified to be an assistant manager at McDonalds. Not only does he lack any relevant experience running anything or leading anyone, but he is just not very bright. Plus he flunked out of university. Hard to believe the Liberals put him as leader and even harder to believe people will actually vote for this guy.

#77 Investorz on 10.16.15 at 8:58 pm

“Phishing for Phools” by Yale professor Shiller would be a good read for canadians. It shows how reputation institutions (ex: canadian banks) cover up risky business (ex: monster mortgages) because people trust them.

Now it’s starting to happen. National Bank surprised portfolio managers (as expressed on BNN) who had no idea it owned a german bank (which committed tax fraud).

It’s not different here. There are bankers committing crimes.

#78 Smoking Man on 10.16.15 at 9:01 pm

#71 Smoking Man on 10.16.15 at 8:47 pm
DELETED

Jesus Christ what the hell did my tumbs type.
Its only 9, ok i started Early tonight.

An other submit button click to the twilight zone.

#79 For those about to flop... on 10.16.15 at 9:02 pm

Joking Man wrote,
I have 7 cell phones on my corp account.

Fee creep.

So took an old Galaxy S4 put it on wind mobile. Just to use in the USA unlimited roaming data calls 50 bucks a mouth.

I read scathing reports, it sucks bla bla.

I believe non of what I hear, half of what I see.

Well my bill will go from 2kk+ a month to 350.

Well Im impressed. Speed ok, data a touch slower .

Next week im switching all my phones to Wind…

I booked Senica for tomorrow night to test in USA.

Im on a mission. Without crazy roaming and data. Lots of deletes tomorrow. Free to Me.

//////////////////////////////////////////
Joking Man ,what I read.

I have 7 brain cells I haven’t killed yet.

I am a creep

Somebody give me 50 bucks for me to shut my mouth.

My normal reports suck sounds like blah,blah

People don’t believe anything I write iam full of it.

Well I’m impressed I learnt how to shower

I am so full of wind

I am senile

I am on a mission,this weekend I am going to waste a lot of you folk’s time.

* This post is pure satire don’t get your undies in a bunch!

#80 Sheane Wallace on 10.16.15 at 9:03 pm

Because it’s utterly nonsensical. We should have world peace, too. — Garth
…………………………………
and world with no cancer.

#81 Cracknation for harpo. on 10.16.15 at 9:07 pm

Holy crap harpo was singing again. Bloody hell. So brutal. For the singing alone I could never vote for him. Excruciating.

#82 win on 10.16.15 at 9:08 pm

The billion dollar Santa

http://bit.ly/1GL0FZj

#83 Ralph Cramdown on 10.16.15 at 9:08 pm

#62 Chaddywack — “We regulate other things that are potentially bad for us. Why not regulate people’s ability to get into debt?”

The theory is that lenders will avoid making too many bad loans, or lose money. The other theory, somewhat out of date, is that people who are rich enough to transact in land ought to be sophisticated enough to look after their own interests. That’s why there’s so much less consumer protection on real estate and mortgages than on credit cards and such.

#4 Owe Canada — “Way more money has been borrowed than will ever get repaid”

If the borrowers can’t repay or roll over the debt, the lenders are going to take a loss. There’s nothing new in this. Just because the Germans haven’t figured it out yet doesn’t mean the rest of us haven’t known for a few millenia.

#84 BS on 10.16.15 at 9:14 pm

For those that think Jr. Trudeau’s tax the rich and give tax beaks to the middle class will work this Globe article on JT’s platform points out the same thing was tried in Britain but was reversed 2 years later.

Britain adopted a similar tax hike in 2010, but later reversed it in 2012. A government report said “the underlying behavioural response was greater than estimated,” meaning high-income taxpayers found creative ways to avoid paying the higher tax.

http://www.theglobeandmail.com/news/politics/what-the-liberals-economic-plan-would-mean-for-canada/article26838610/

Won’t the 99% ever learn? Any extra government spending will be paid for by you, not the 1%.

#85 Smoking Man on 10.16.15 at 9:16 pm

97% of woman have a hate my body moment. Just saw the commercial.

Really ladies? Its all about your programming.

You just dont know how to clime the hill, pull out the binoculars, then scream in a crazy mountain chic voice. Im the the judge. Not the gudge eeeee.

My classes will be taught from hotel mystery.

Where broken dicks come to bond.

#86 Gray Man on 10.16.15 at 9:19 pm

Cant see the difference between #73 SWL1973 comment and globalresearch article , if it is nonsense why is there a blackout on the story by all Canadian media?

No blackout. It’s just not a valid story. End of this thread. — Garth

#87 Mark on 10.16.15 at 9:24 pm

“Plus he flunked out of university. Hard to believe the Liberals put him as leader and even harder to believe people will actually vote for this guy.”

When Trudeau went through engineering, it was common that only 1/3rd of the first year students would ultimately graduate with an engineering degree. Those who, for whatever reasons, took time off between high school and university had a particularly difficult time simply on account of being “away” from the heavy use of math/physics for a period of time. And these are people who self-selected into the engineering faculties — not ordinary blokes off the street who probably would suffer even more severe attrition rates.

And, according to the OSPE, once one has run the gauntlet of actually getting an engineering degree, one only has a 1/3rd probability of finding a job requiring an engineering background.

So lots of stuff to fault Trudeau for, but career-wise, he has turned out quite fine, leveraging his brand-name surname to at least a MPs position, and potentially even Prime Minister. He did complete two other degrees, so to say he “flunked out of university” reeks of a veiled insult.

#88 Retired WI Boomer on 10.16.15 at 9:24 pm

Tom & Sarah what happens IF, real estate just starts to stall? Say in 5 years the place is worth exactly what you paid for it?

By then, your PITI payment (Principal, interest, Taxes & Insurance) Certainly WILL have gone up – even though the cost of rented money might not.

YES, taxes, and insurance will have increased, and Sarah wants to fix this, or that. The car died, one of the kids needs orthodontics, yadda, yadda….. You know life.

THEN the bank calls, the rent on money has changed. They will renew but at a higher rate.

Was this trip worth it, kids? You HAD a decent start, now 5 years later, you could have bought the SAME DAM house at the SAME DAM price, but AFTER the rental cost of money increases… guess what?

Your home is now worth LESS because of the excess carry costs. Isn’t this fun?

The U.S. went through this crap in 2008 through roughly 2011. Prices fell from ay 20% to well over 50% depending on the hood, how fast prices had gone up…

I hope it doesn’t play out that way, but it could, or it blow off much harsher. 72% ownership rates tell me you are soon to run out of FOOLS at your price…

good luck – you’ll ned it!

#89 Capt. Obvious on 10.16.15 at 9:27 pm

@ 75:
Not sure if you’re aware of this so thought I’d point it out: you do not directly vote for JT unless you live in his riding. Only party of one Harper would not listen to anyone around him (astonishing he’s maintained power within his party actually).
Tootles, good luck out there, and all that.

#90 Trojan House on 10.16.15 at 9:28 pm

#75 BS on 10.16.15 at 8:54 pm

Because his name begins with a T and ends in a Rudeau.

I saw an interview with him on tv a couple of years ago. Did you know that he “builds competition sandcastles?” No word of a lie – that’s what he said.

#91 Arlene Sullivan on 10.16.15 at 9:30 pm

#67 Overheard at Costco

And that is the nut of the matter.

I hear that expression all the time – “But houses only go up in Vancouver!” – and it seems to justify even the most idiotic purchase.

Two recent examples. I was visiting a friend downtown at her office, and met another colleague of ours. 35ish, married with one kid. Makes about 65k, started the job a couple of years ago. He had heard I was living in New West, asked me how the prices were and when I had bought. He’s looking for a place to buy in Vancouver. I told him I was renting in New West, and that it was a decent place to live if he really wanted to buy, houses a little cheaper, good transit, central. (I don’t even try to dissuade people from buying any more. No point, the mania is so pervasive here now.)

He said he and his wife had looked in NW, but that if they were going to spend 700K+ they might as well go all in and spend a million+ in Vancouver. Because – wait for it – prices in Vancouver only go up, and they will make more in Vancouver in the long run. I said something about prices not going up forever, and he looked at me with glazed eyes, not wanting to hear that. I changed the topic.

Example two – ex-husband, who made out nicely on the sale of the family home. He’s apparently plugged all that money into a circa 1970s fixer upper on a main drag in Delta, topping it up with a mortgage with a 30 year amortization. He is 60, self employed, in poor health, no pension, RRSP well under 100k, no handyman skills at all. Bought it because, doncha know, houses only go up in Vancouver!

I thank goddess that my kids have seen the light. Many of their friends who have bought condos are now desperate to sell because they have finally realized that all they are working for is to feed the maw of their mortgages. And they can’t sell for what they want, as there are so many new places coming on line nobody needs to buy an “old” condo.

I’ve stopped having conversations with people here about real estate. After all, what do I know? I’m just a divorced woman in her mid-fifties who (gasp) rents, and is planning to retire at 62 with a comfortable income thanks to the sale of the family residence and diversified investments. For that, I can put up with the pitying looks when people find out I don’t “own”!

#92 Smoking Man on 10.16.15 at 9:32 pm

#77 For those about to flop… on 10.16.15 at 9:02 pm
Joking Man wrote,
I have 7 cell phones on my corp account.

Fee creep.

So took an old Galaxy S4 put it on wind mobile. Just to use in the USA unlimited roaming data calls 50 bucks a mouth.

I read scathing reports, it sucks bla bla.

I believe non of what I hear, half of what I see.

Well my bill will go from 2kk+ a month to 350.

Well Im impressed. Speed ok, data a touch slower .

Next week im switching all my phones to Wind…

I booked Senica for tomorrow night to test in USA.

Im on a mission. Without crazy roaming and data. Lots of deletes tomorrow. Free to Me.

//////////////////////////////////////////
Joking Man ,what I read.

I have 7 brain cells I haven’t killed yet.

I am a creep

Somebody give me 50 bucks for me to shut my mouth.

My normal reports suck sounds like blah,blah

People don’t believe anything I write iam full of it.

Well I’m impressed I learnt how to shower

I am so full of wind

I am senile

I am on a mission,this weekend I am going to waste a lot of you folk’s time.

* This post is pure satire don’t get your undies in a bunch!
…..

You’ll be a fan one day, perhaps not this weekend.

#93 Bad choices | Realties.ca on 10.16.15 at 9:33 pm

[…] Source: http://www.greaterfool.ca/2015/10/16/bad-choices/ […]

#94 Freedom First on 10.16.15 at 9:33 pm

#32 PeterfromCalgary
#26 BC Guy

Peter, just one of the reasons I already voted Conservative.

BC Guy- I am a Boomer. Them’s the breaks!

You are going to regret ageism. We not only got a cheaper education, we got a much better one.

#95 Hirsute Hipster, head down, texting... on 10.16.15 at 9:35 pm

Hey Garth, heard something about a poll here on Greater Fool.

Sounds interesting. I must have missed it while checking my Twitter feed.

Be a dude, run it again, okay? I’ll wait a few minutes but no more, gotta meet a girl at Starbucks.

Thanks, bro.

#96 Love my Kia on 10.16.15 at 9:38 pm

#37- MSM-free zone,

I ranked a lousy 57th? — Garth
*********************************************8
He’s just making sure you read it Garth.

#97 BS on 10.16.15 at 9:41 pm

When Trudeau went through engineering, it was common that only 1/3rd of the first year students would ultimately graduate with an engineering degree.

Would it be too much to ask the Prime Minister be in the third that doesn’t flunk university? I am not saying the guy should never get a job, just not the most important job in Canada. Kindergarten teacher seems about right for JT, not Prime Minister.

JT reminds me of George Bush Junior. Similar intelligence riding their fathers name. At least the W had a better work resume.

#98 BG on 10.16.15 at 9:47 pm

#75 BS on 10.16.15 at 8:54 pm

Because his name begins with a T and ends in a Rudeau.

I saw an interview with him on tv a couple of years ago. Did you know that he “builds competition sandcastles?” No word of a lie – that’s what he said.
—————————————————————-

And?
What’s your point?

I’m not a fan of Trudeau, but all this bashing is pathetic.

#99 Smoking Man on 10.16.15 at 9:47 pm

#84 Smoking Man on 10.16.15 at 9:16 pm
97% of woman have a hate my body moment. Just saw the commercial.

Really ladies? Its all about your programming.

You just dont know how to clime the hill, pull out the binoculars, then scream in a crazy mountain chic voice. Im the the judge. Not the gudge eeeee.

My classes will be taught from hotel mystery.

Where broken dicks come to bond.
….

I wish I ended this post with.

“Where broken dicks come for resurrection.”

I need an editor… Ladies, the hotel of mystery?

#100 dosouth on 10.16.15 at 9:51 pm

another 1/4 point coming and Liberal almost majority on Monday…..

#101 omg the original on 10.16.15 at 9:51 pm

Gulf Breeze on 10.16.15 at 7:12 pm
#7 Victoria real estate update:

The reason houses are so cheap in the areas you mentioned is because the economies are weak, people are poor and banks haven’t gotten back into the business of making even reasonable loans to credit worthy people.
——————-

Sure some of the ultra low prices are in dead zones.

But when you get cities like TO being priced 70-80% higher than many similar sized or larger US cities – cities which actually have a diversified economic base and prospects – then you might think we have a bit of good old Canuck mega-delusion happening.

And let’s not even talked about Vancouver city being the most expensive real estate in North America. More than desirable areas of Seattle, SF, LA, SD, NYC.

But its different in Canada, right?

#102 Polly S Fine on 10.16.15 at 10:00 pm

Garth,

Good to see you get back on the financial track…..based on all the political chatter of your last few blog entries, I thought there was a chance you were relapsing into becoming a politico again….

#103 EasternCod on 10.16.15 at 10:04 pm

#46 Suede on 10.16.15 at 7:30 pm

OK, what about a Comment Section Poll

Who here prefers..
A) Reading Mark
B) Reading Smokie
C) Garth only replies
——————–
Smoking Man Deleted is good.

It’s time to stop coddling Canada’s housing sector
http://www.theglobeandmail.com/globe-investor/personal-finance/mortgages/its-time-to-stop-coddling-canadas-housing-sector/article26827039/

#104 Smoking Man on 10.16.15 at 10:04 pm

Im so hammered….

Sort of in school, thought I had my phd dr brain on the ropes. At five he posts his work on the site.

Hell if it wasent for this advisory, I would be going back to my former tax farm in a second.

I cant let him win..got to stick around for a bit.

I got to be better. Wondering who he got to help him.
Probably a random Dyslexic he meet on line.

Guy had cancer, out of action for two Years. Lost his house, and wife.

Shit Nectonites do for humanity. Sorry swaps traders. I got to help this dude.

I need a bit more time.

#105 Ralph Cramdown on 10.16.15 at 10:07 pm

A Brief Harper CV:
– dropped out of university after two months
– his dad got him a job in the mailroom
– he joined the Liberal party, later quit
– Joined the PC party, quit
– joined the Reform party
– fell out with Preston Manning, quit as policy chief
– resigned his parliamentary seat in January 1997, in the middle of the term
– takes job as a lobbyist the same day
– wins Canadian Alliance leadership. Opponent Stockwell Day accuses him of “attacking ethnic and religious minorities”
– quits as leader of opposition, to run for Conservative leadership
– forms a pact with the BQ and the NDP to govern as a coalition, if opportunity arises
Quote: “It is the Parliament that’s supposed to run the country, not just the largest party and the single leader of that party. That’s a criticism I’ve had and that we’ve had and that most Canadians have had for a long, long time now so this is an opportunity to start to change that.”
– 2008 quits parliament by asking GG to prorogue
– 2010 ditto
– 2011 contempt of parliament, loses confidence of house
– 2015 budget? We don’ need no stinkin’ budget.
– October 2015 quits after defeat

This is a mean-spirited way to summarize a public servant, but some people here seem to think only Liberals are quitters.

#106 james on 10.16.15 at 10:07 pm

Good lord, those two dolts make far less than half of what I do individually. I wouldn’t touch a 1.2 million dollar house in Canada with a ten foot pole. Even a 1.2 million dollar house in a stable market that isn’t about to crash. Houses don’t pay dividends.

#107 BR on 10.16.15 at 10:07 pm

Living in Beaches East York. Can’t find a poll analysis for this riding. Looks tight between NDP and Liberal by lawn sign observation. For a federal Cons win an NDP vote seems appropriate – but what if the lawn signs parallel the comments vs poll on this blog? Anybody have any poll stats by riding?

#108 Gray Man on 10.16.15 at 10:09 pm

“in the colonies we issue our own money. we issue it in proper proportion to the demands of trade and industry to make the products pass easily from the producers to the consumers. in this manner, creating for ourselves our own paper money, we control its purchasing power, and we have no interest to pay to no one”– benjamin franklin
————————————————–
I Think this was the basis for the German miracle then along came WW2

#109 fancy_pants on 10.16.15 at 10:12 pm

#34 prairie person on 10.16.15 at 6:49 pm

sounds like she’s been hanging around MC too long. maybe if someone had the balls to back up the threats and warnings. people have learned to ignore the calls as they consistently do not materialize

#110 conan on 10.16.15 at 10:17 pm

Get ready for a lot of red Monday night. Could be a major.

#111 Bobs ur uncle on 10.16.15 at 10:21 pm

#22 Resumé of Justin Trudeau on 10.16.15 at 5:59 pm

And what exactly was Harper’s resume before assuming the PM’s office? Other than a stint as an MP, and then whining and moaning at the national citizens coalition about lowering taxes and building Alberta firewalls? Quite impressive.

#112 Polly S Fine on 10.16.15 at 10:21 pm

BTW that clown is creepy…I have never recovered from the cancellation of that short lived comedy Committed, with Tom Poston as the dying clown in a closet

#113 Smoking Man on 10.16.15 at 10:25 pm

#102 EasternCod on 10.16.15 at 10:04 pm
#46 Suede on 10.16.15 at 7:30 pm

OK, what about a Comment Section Poll

Who here prefers..
A) Reading Mark
B) Reading Smokie
C) Garth only replies
——————–
Smoking Man Deleted is good.

It’s time to stop coddling Canada’s housing sector
http://www.theglobeandmail.com/globe-investor/personal-finance/mortgages/its-time-to-stop-coddling-canadas-housing-sector/article26827039/
….

Are you man enough to be on my shit list.

Are you knew here..?

#114 GulfBreeze on 10.16.15 at 10:28 pm

Victoria Real Estate Update,

I actually did read what you wrote. Income disparity, reflected regionally, in the U.S, is largely responsible for cheap housing in states like Arizona. It is also very hard to get home loans there, since the sub prime fiasco.

If you want to use ‘averages’ in terms of income, in economies like the American and Canadian, go ahead. Just remember that many statisticians have drowned crossing rivers that are, on average, only four feet deep.

Housing is also cheap in New Brunswick, Nova Scotia, parts of Ontario etc…

So yes, if you are an average family with a good income in Tucson, you’re laughing. There just aren’t that many ‘average, middle class’ people with really secure incomes there … and house prices reflect that.

#115 vote him off on 10.16.15 at 10:30 pm

#104 Ralph “mental midget” Cramdown

You forgot to post some of his attributes like his holding a Masters Degree in Economics.

But, that about par for the course based upon all your other posted dribble.

#116 Bottoms_Up on 10.16.15 at 10:31 pm

#106 BR on 10.16.15 at 10:07 pm
————————–
308.com

#117 Happy Renter on 10.16.15 at 10:33 pm

I overheard this at a Costco IN QUEBEC, so this insanity is spreading to areas that are not considered “as inflated” as Vancouver or Toronto.

Scary stuff is going to eventually happen, I’m thinking…
Some will have hard times, that is a certainty.

#118 Politics 101 on 10.16.15 at 10:38 pm

#96 BS
“JT reminds me of George Bush Junior. Similar intelligence riding their fathers name. At least the W had a better work resume.”
……………………….
George Bush was infinitely more educated and held much business and work experience before was president. He was also a very successful governor of one of the biggest and fastest growing States before. Not even comparable to JT.

#119 Haris on 10.16.15 at 10:44 pm

Why can’t the mortgage rates in Canada be made fixed, like in the US?

The Canada Interest Act establishes a maximum 5-year fixed term, after which all mortgages become open. — Garth

#120 Bottoms_Up on 10.16.15 at 10:45 pm

#63 Smoking Man on 10.16.15 at 8:20 pm
——————————-
WIND is good if you live in the middle of a large city, but sucks if you need a signal while in the burbs.

#121 In Vino Musca on 10.16.15 at 10:46 pm

#106 BR on 10.16.15 at 10:07 pm

Beaches-East York is leaning LPC: http://www.threehundredeight.com/p/canada.html

http://www.cbc.ca/news2/interactives/poll-tracker/2015/index.html

#122 Washed Up Lawyer on 10.16.15 at 10:59 pm

Hey Retired WI Badger:

In Ft. McM it is hard to remain on topic. Do you follow America’s pastime? If so, were you a Braves/Brewers fan?

Us Canucks could use some sage advice on how the Jays can survive the ALCS. After all, you saw Hammerin’ Hank, Yount, Rollie Fingers and Gregg Zaun.

Should the boys try the suicide squeeze?

Or, is that just what Tom and Sarah have done with their $1.2 MM house purchase which will end in a triple play in the bottom of the 9th?

Yours,

Ferguson Jenkins

#123 Politics 101 on 10.16.15 at 11:01 pm

JT came from a Family of wealth and privilege. His Father (like him or hate him) was one of the most honored politicians in Canada for many years. As part of this Family, JT was able to meet famous, educated and accomplished people all over the world. The best education and golden opportunities were right in front of him to seize.

What did he do with all of those chances (that very few in life receive) – Nothing. He wasted time.

Until a desperate beaten up Liberal party had no choice but to grasp at straws and pin their hopes on some star power. And now he wants to lead this country.

‘What did he do with all of those chances?’ About to become prime minister? What a loser. — Garth

#124 Jimson Weed on 10.16.15 at 11:01 pm

There will be no rate increases in Canada until after 2017…because the US Fed is already back peddling on 2016 as a start date to end QE.

In fact the San Francisco Fed has issued a paper insisting on how rates are still too high and the need for further QE to begin another round of flooding the system with cheap paper since there’s no inflation.

By the time Poloz gets around to raising rates in 2018 bonds will be worthless…preferred shres will be something only spoken of by old people in dark corners…..keep watching as the Pref ETFS continue to tank as we watch.

Poloz will use the US FEd’s reluctance to raise rates as a springboard to crush the $C to below 50 cents so his coal mining and iron ore buddies can spend less than Tajikistan on steam shovels and black bread. No rate rise in Canada until sometime in the 2020’s…..if at all.

HAM will continue to flood into Canada and escape China with gushers of filthy lucre ahead of the Chinese authorities and outbid all Canadians whose worthless peso dollars by nothing but tears.

#125 Politics 101 on 10.16.15 at 11:16 pm

#122
“‘What did he do with all of those chances?’ About to become prime minister? What a loser. — Garth”
………………………….
Just because one gets voted into political, office does not mean one deserves to.

He was elected seven years ago to office, then to leader, and now to government, perhaps. He has flaws. Not building on his chances doesn’t appear to be one of them. — Garth

#126 Ralph Cramdown on 10.16.15 at 11:16 pm

#114 vote him off — “You forgot to post some of his attributes like his holding a Masters Degree in Economics.”

I’ve read his thesis, and posted it here. It’s topical.
http://www.greaterfool.ca/2015/04/15/scraping-bottom/#comment-367114

#127 45north on 10.16.15 at 11:18 pm

But we’ve been pre-approved to purchase a property as high as $1.2 million. That’s what Sarah wants.

Retired WI Boomer: talking about a real estate price drop: I hope it doesn’t play out that way, but it could, or it blow off much harsher. 72% ownership rates tell me you are soon to run out of FOOLS at your price…

it’s too bad that Tom and Sarah have bet the farm.

my plan would be to give them $1000/month for a year
once they get the Power of Sale notice

http://www.canadianmortgageadvisor.ca/resources/foreclosure-or-power-of-sale.html

#128 Washed Up Lawyer on 10.16.15 at 11:28 pm

For what it is worth (probably not a pinch of raccoon you know what) critics of Ralph Cramdown, Esq. and Smokey are on my shitlist.

#129 Washed Up Lawyer on 10.16.15 at 11:53 pm

Garth:

Please permit me one more comment and then I will leave and stroll down to the Boomtown Casino near the Peter Pond mall here in the Taiga.

Cramdown, thanks for the links to Harper’s thesis.

Word salad.

#130 Pamela Velos on 10.17.15 at 12:15 am

#56 McFly604 Trudeau Sr started us on the road of deficit financing. Since then, Canadian Gov’t has been carrying ever increasing debt

#131 millenial82 on 10.17.15 at 12:16 am

#26 BC Guy on 10.16.15 at 6:11 pm

Dear Young Canadians:

Do you know how screwed you are? The Financial Post article sums it up. Here are some key points:

– many of the Boomers got great-paying jobs with generous pension plans – the majority of young Canadians will not

– your jobs have been outsourced, downsized, eliminated – if you get a job these days, your pension plan will be much less generous

– you are paying much more in CPP deductions than the Boomers, but they will get to collect more than you, and by the time you are ready to retire, the CPP may be drastically cut

– the Boomers get to start collecting Old Age Security payments at age 65, you’ll have to wait until you’re 67

– the Boomers paid much less for a house, sometimes one tenth of what a house costs today – Boomers got cheap houses and have rode the wave and become millionaires – you can’t afford a house, maybe if you’re lucky you’ll buy a condo and spend 20 years trying to pay it off, otherwise, you’ll be renting for a long time (as Garth suggests)

– the Boomers can avoid paying taxes on their income and wealth by shielding it in RRSPs, TFSAs, RIFs and insurance policies – you can’t afford to save anything because you’re paying the lion’s share of your income for rent or a sky-high mortgage
– Boomers got a cheap education – you’ll have to take on massive amounts of student debt to get the same education
– Boomers have lots of government jobs to choose from – there are much fewer govt jobs now because of all the cutbacks
– cities are more crowded, the air more polluted, traffic worse, car insurance much higher

See how screwed you are? This is the path the Conservative government has set this country on in the past ten years. On election day you can give up, not vote and nothing will change. Or you go and cast a ballot and hope for a new, better government that will start to unravel all the inequities in our society, particularly for young people. Here is the article from the Financial Post:

http://business.financialpost.com/personal-finance/family-finance/high-net-worth/how-this-couple-with-4-58-million-net-worth-can-reduce-the-clawback-on-their-substantial-savings
————————————————————

Woah man. How can you relate a millennials situation today to those 40 years ago and blame the current government for these problems? The conservatives have been in power for what, 9 years? This is all their fault? As for our housing situation which Garth has warned about and others have pointed out, just look south of the border to see how fast we may find the tables turn and everything turn upside down. A smart millenial is likely going to find themselves with bargain deals available sometime within the next 10 years or so. It’s going to be ugly when the market becomes flooded with boomers trying to sell their real estate at a market ratio of 2:1 sellers to buyers.

#132 BS on 10.17.15 at 12:24 am

And what exactly was Harper’s resume before assuming the PM’s office?

Harper’s resume 10 years ago is irrelevant to this election. What is relevant is Harper’s resume now and Jr. Trudeau resume now. No comparison.

Harper has a masters in economics not a kindergarten school teacher degree. Economics being a little more relevant to running a country. Now if we were looking for a teacher to help little Johnny with his crafts then I agree Jr. Trudeau is qualified.

#133 Engineering graduate on 10.17.15 at 12:25 am

“Those who, for whatever reasons, took time off between high school and university had a particularly difficult time simply on account of being “away” from the heavy use of math/physics for a period of time.” – Mark 86

Disagree. The average age of my grad class was close to 30. As older students, we had the maturity and dedication to make a strong commitment to our
studies.More than made up for time away from school.

56 Mcfly. Hmmmm. Who was PM in 1974??

#134 Basil Fawlty on 10.17.15 at 12:28 am

Why would Garth Turner discontinue a thread on the Bank of Canada creating money, rather than having the private banks create money at interest? This is beyond perplexing.

#135 stage1dave on 10.17.15 at 12:33 am

#38 Saskatoon;

Jesus H. Christ, that’s the first thing you’ve posted I almost agree with…now I need a drink…

Next, check out the COMER lawsuit

#136 cynically on 10.17.15 at 1:07 am

Wake up #22 – no Canadian leader sits at the international table as an equal of Merkel and Obama and I doubt any future leader will either. Canada needs a lot more economic sophistication and development to be equal table mates with with the US and Germany.

#137 Neithe Raborrower on 10.17.15 at 1:12 am

Hey Nora, you complete me.

#138 DON on 10.17.15 at 1:33 am

“So, they bought the house.” Yikes!

While on the path to financial freedom they picked up a big ball and chain. They deserve a thank you card from the previous owners at the very least. Hopefully it’s a high end neighborhood. Previous homeowners just received a pension plan from the couple. This must be a solution to alleviate the pension calamity that is on the horizon. All politicians seem to be on board with it. That and its a big part of our economy and personal wealth. And a rogue wave is coming our way.

and from the Bank, ‘its you not us – look in the mirror it’s you’

“Borrowers and lenders bear the ultimate responsibility for their own decisions at the individual and firm level. It is not the role of monetary policy to protect individuals from making bad choices.”

Time to frame the Bank in a positive, prudent light. It’s about time they took the high road and stopped listening to their Political bosses. Is this part of the strategy or are they distancing themselves from the old ropes as they sense change??. I wouldn’t be surprised if some still relate the Bank of Canada to the governing party. If so, what effect would that have on peoples vote?

I may be wrong but I sense a SWING, a lot of talk about strategic voting abound. I see a lot of con supporters trying to reframe the issues…loosing control of the situation and lashing out. hmmm! But you really never know.

Minority Government-forces all parties to complete for the prize. Perfect fix for present childish politics. They should be set the bar not chipping away at it.

Mr. Trudeau seems to be coming up the middle.

Ontarians must be pissed about loosing so many good manufacturing jobs. I don’t blame them.

#139 Setting the Record Straight on 10.17.15 at 1:52 am

“Do we really want such a person running a G7 nation? Do we really think he’d be able to sit at the international table as an equal with U.S. President Barack Obama and German Chancellor Angela Merkel”

Well I think you adequately summed up the village idiot.
However, I think he would sit at that table as an equal.

#140 Victoria Real Estate Update on 10.17.15 at 2:46 am

# 113 GulfBreeze

You claim that houses are also cheap in parts of Canada. I assume by saying cheap that you mean as cheap as the US houses that I’ve posted as examples over the last number of days.

I think most Canadians would be shocked to see how cheap houses are in the US, in general, compared to similar Canadian houses.

Please back your claim by providing examples of similar Canadian houses at similar prices.

You’ll need to produce examples with the exact same specifications that I’ve used.

You also claim that the examples I’ve provided are from US cities with low household incomes only. I think I’ve posted enough examples from enough American cities to prove false your claim that the price disparity can be justified by some sort of difference in incomes.

Clearly I’ve posted enough examples of houses from enough US cities that we can conclude that American families pay a fraction of what Canadians do for a similar property, even though income levels in the Canada and the US are similar.

Similar Canadian houses would need to have the same specifications:
* at least 3 beds, 2 baths and 1,800 sq. ft. of above ground, primary living area (no suite)
* 2005 or newer
* attached double garage

The homes must be located within or close to a city with a population of around 200,000 (for example, Regina) or higher.

Good luck with your search, if you choose to attempt to find proof to back your claims.

#141 Nagraj on 10.17.15 at 2:48 am

In GT’s post titled “Bad Choices” you will discover the word “here” printed in red. The red means you can click on it if you want.
I clicked on it.

If you too click on it, you too will find yourself transported – into another world, the world of “Fedspeak” or “central banker speak” which is terra incognita for most of us.

The red “here” lets you read this Poloz person’s speech,
which Fedspeaky speech he gave to – a gaggle of gauchos in Patagonia.
(He repeated it, in Washington, DC, to members of the Ladies Auxiliary of the Basilica of the National Shrine of the Immaculate Conception, which, it must be noted, has the finest acoustics on the continent.)
(A helpful change from the sound-sucking emptiness of the vast starlit pampas.)

I read this Poloz speech.
Not all of it. I conked out just before The Conclusion part. I did mean to read The Conclusion but I suffered a brown out or transient stroke, just like Ms Janet Yellen did, poor thing, in Amherst, Massachusetts.

This Poloz person’s speech is about knitting. He doesn’t want people to tell him, “Stick to your knitting”.
He also remarked that Canadians are congenitally incapable of making sensible decisions of any sort.
[This is not at all surprising, not at all, because young Canadian adults have wholly ignored his previously proffered exhortation to work for free for a year.]

Patagonian gauchos and Catholic ladies who are also bona fide representatives of Primary Dealers and well-versed in the mechanics of Treasury auctions will have found this Poloz person’s speech to be of interest.

But one outlaw was heard to mutter, “This bozo’s really scared outa his wits, eh?”

#142 OffshoreObserver on 10.17.15 at 3:14 am

From “The Economist” Letters section in its 16 October 2015 issue:

As unsafe as houses
Why would institutional investors, who account for just 1% of residential landlords in England, want to get into the property business (“Build it and they will rent”, September 19th)? There is an impression in Britain that house prices will continue rising for ever. Private individuals, who account for 89% of landlords, invest in housing partly because they envy the success of others who have made gains in the past. The capital returns seen on investment in residential property have been fuelled, in a Ponzi style, by the next wave of investors rather than by anything that may be justified in economic terms.

Gross rental yields have fallen from around 16% in 1996 to less than 3% today. Residential property, being a serviceable asset, often leaves an investor with less than 2% net return at current levels. Unsophisticated investors focus on the myth of ever-increasing capital returns. Professional investors are not so easily fooled, which is why they account for less than 1% of residential landlords. Why would they get into a highly leveraged residential property bubble that is almost certain to pop when interest rates rise?

JAMES EMANUEL
London

#143 Obvious Truth on 10.17.15 at 3:30 am

JT winning was the easiest call ever. Had the Obama magic.

People flock to the kid. All you had to do was watch.

Issues – get a tissue for them.

Nobody cares. They are too busy buying houses.

#144 RE = Pyramid Scheme on 10.17.15 at 6:44 am

#8 For those about to flop… “Head meet brick wall. Repeat until unconscious.”

Too funny!

When there are few or no people at the bottom of the pyramid scheme willing to buy in, the pyramid will collapse and such will be Canadian real estate. Probably why “#7 Victoria Real Estate Update” lists so many US house prices that are so low compared to Canada.

Another economic shock, job losses or a myriad of other reasons will burst the Van and TO bubbles soon enough.

But at least Garth, you try to give common sense advice…looks good on you and keep doing it.

#145 OffshoreObserver on 10.17.15 at 7:00 am

Where is the leadership?

The candidates are all narrow-minded, visionless, spoiled bureaucrats.

Where is the Canadian “The Donald”?

https://www.youtube.com/watch?v=Lom9mPITxOo

I might move to Hawaii from SoutheastAsia with a gentler, fairer tax regime.

#146 maxx on 10.17.15 at 7:25 am

“Borrowers and lenders bear the ultimate responsibility for their own decisions at the individual and firm level. It is not the role of monetary policy to protect individuals from making bad choices.”

“Bad choices.” Not questionable choices, not risky choices, but BAD choices.

Given that he was not addressing the Canadian population directly, it sounds very much like code for:

We understand that fiscal policy change is unavoidable.

We understand that ZIRP (aka central banks blowing gently on interest rate levers with their fingers securely placed up their ar$e$ to FIRE applause) is no longer effective.
At all.

We understand that changes which will issue from global forces outside of Canada.

We understand and accept those coming changes.

The indebted can fend for themselves.

No positive economic change has happened by way of this idiotic, wing-nut policy- to the contrary, even with this pathetic delay tactic, economies have just smiled at central banks and gotten worse, globally.

Green light for interest rate increases.

#147 3 Days to an NDP Government! on 10.17.15 at 7:31 am

Wake up to the Orange Wave on Tuesday morning!

Lots of wiggle room still in the polls, and the new Liberal scandal will be enough to turn the tide back to Tom.

Change is coming :)

#148 Editrix on 10.17.15 at 7:46 am

I don’t envy the guy who is going to be PM in the near future. Interest rate hikes, job losses due to those hikes, the possibility of a dropping economy – he will be vilified a lot sooner than he expects.

#149 Paully on 10.17.15 at 7:47 am

How ever did we get to the point where a starter-house is over a million dollars? How do couples making the decision to buy actually decide that that is somehow rational. Everyone needs to take a step back from the ledge. Please!

#150 maxx on 10.17.15 at 7:59 am

#21 Doug in London on 10.16.15 at 5:57 pm

“Are they masochists?”

No. Just irretrievably stupid. No one can save fools like these from themselves. They solicit advice as a “sounding board” then turn around and toast their future well-being with a single, moronic purchase.

“Borrowers and lenders bear the ultimate responsibility for their own decisions at the individual and firm level. It is not the role of monetary policy to protect individuals from making bad choices.”

What part of that didn’t they understand?

#151 Millmech on 10.17.15 at 8:06 am

I would have thought by losing two bidding wars,they were winners.

#152 Tunker on 10.17.15 at 8:11 am

Slowdown in sales Aug vs Sept = limited inventory??? More likely our bubbleicious housing market has found its ceiling.

http://business.financialpost.com/personal-finance/mortgages-real-estate/home-sales-fall-in-toronto-vancouver-because-not-enough-property-on-market-crea

#153 young & foolish on 10.17.15 at 8:21 am

“We are looking more and more third world … ”

You bet. Welcome to the new reality of the Developed Nation World. It’s much easier to bring 3rd world conditions to the 1st world than the other way around.
Good luck with those “growth” strategies.

#154 Ralph Cramdown on 10.17.15 at 8:30 am

#131 BS — “Harper has a masters in economics not a kindergarten school teacher degree. Economics being a little more relevant to running a country.”

“I manage a huge company, I can push a button on my desk, and get the top expert in the world to answer any question I want answered. I don’t need to know the answers, I know how to get an answer if I need it.” — Henry Ford

People who think the leader needs to be personally competent in all the arts of running a country have been living under Harper’s leadership style for a bit too long. Let’s just hope there’s still some semblance of a professional civil service remaining in Ottawa.

#155 Julia on 10.17.15 at 8:33 am

#41 Mark

Are we going back into the sub-prime conversation again? Thought that was settled.

Do you realize that CMHC has tightened debt servicing requirement rules over the last few years?

For instance, it used to be that unsecured facilities (line of credit and credit cards) were only included in repayment obligation for the monthly interest cost, now it’s no less that 3% of outstanding balance.

For secured facilities, it used to be interest only as well, not it’s assuming principal and interest on maximum 25 year amortization as if it was a regular mortgage.

Heating costs used to be included at $100 per month, regardless of the property, not the amount used is either the actual amount based on heating bills or an amount estimated based on various factors like type and size of property, heating source etc…

Used to be able to use the lowest possible negotiated mortgage rate to qualify, now you have to used the 5 year fixed rate.

TDS calculations are far from perfect, it only includes basic debt and costs and does not factor in things like childcare and lifestyle (that’s for borrowers to budget and figure out) and the threshold is till a little low in my opinion, but it’s a baseline.

#156 Ralph Cramdown on 10.17.15 at 8:40 am

… besides, if you’ve seen Question Period lately you’d know that a kindergarten teacher certification is more appropriate than an econ degree. The final verdict on the outgoing government is going to be “doesn’t play well with others.”

The interesting thing about Harper’s thesis is that he posits that governments enact economically suboptimal policies because of the electoral cycle. 25 years later and, at the levers of power, he’s furiously aiming for a balanced budget in the last year of his mandate (selling the furniture in order to do it), regardless of economic conditions, for political considerations.

I guess it’s the economics/polisci nerd’s version of “hold my beer and watch this.”

#157 jean on 10.17.15 at 8:42 am

#37- MSM-free zone, I like your list.

In case anyone missed it a couple days ago, an excellent weekend read setting out Harper’s list of “tactics”:

http://www.theguardian.com/world/2015/oct/15/stephen-harper-master-manipulator

And a nice little in-progress documentary about conservative electoral fraud for your weekend viewing (EDay in Canada : Voter Suppression):

https://vimeo.com/thescriptandfilmco/review/142341107/53007791c6

It starts out a bit slow, so if you have limited time watch 19:30-25 mins, 30:00-40:00 mins and the last six minutes.

And if you can actually vote for Stephen Harper after that just because of the TFSA or a ridiculous home renovation credit or some other fool reason, you should hang your head in SHAME.

#158 Leo Trollstoy on 10.17.15 at 8:43 am

When Trudeau went through engineering, it was common that only 1/3rd of the first year students would ultimately graduate with an engineering degree.

Completely false.

I have engineering friends who are mid-40s. Completely untrue.

You’re such a scammer.

No wonder you’re not successful.

#159 Victor V on 10.17.15 at 8:45 am

In which Conrad Black compares Stephen Harper to a sadistic Victorian schoolmaster.

http://news.nationalpost.com/full-comment/conrad-black-stephen-harper-did-many-great-things-for-this-country-but-he-hung-on-to-power-a-little-too-long

#160 common sense on 10.17.15 at 8:58 am

Millenial82 #132

Yes the youngsters should be able to clean up house wise in about 10-15 years due to demographics, as us late baby boomers should be renting vacation property at a steal as that property turns over as well. Even in the 1990’s visiting my parents in Florida, I saw units almost given away, fully furnished as their kids just wanted to dump the property as quickly as possible as it was so inconvenient selling a property so far away from their Canadian home.

I have to ask about the markets…even though people are living longer( and more of their investments need to be kept in the market vs in the past when most money was in fixed investments due to decent interest rates), will markets naturally pull back as say 25% is pulled back into fixed investments?

#161 jean on 10.17.15 at 9:03 am

#75 BS – your post is a flat out lie. You cannot teach without a degree, and Trudeau has two:

“Trudeau has a Bachelor of Arts degree in literature from McGill University and a Bachelor of Education degree from the University of British Columbia…” (source: wikipedia)

Harper on the other hand has a degree in economics and has never worked a day in his life at a real job. He is professional schemer, conman, and cheat, and knows nothing else. Oh, and he dropped out of university too, since you’re keeping score:

“Harper enrolled at the University of Toronto but dropped out after two months… He then moved to Edmonton, Alberta, where he found work in the mail room at Imperial Oil… Later, he advanced to work on the company’s computer systems…”

I’ll take the teacher over the mail room guy any day.

#162 young & foolish on 10.17.15 at 9:05 am

Investing for Dummies:

What do we want? – Reliable Cash Flow
How are we going to get it? – By owning things people must have, or by providing a service people need.

#163 young & foolish on 10.17.15 at 9:10 am

“Sovereign debt is the single biggest bubble that will eventually pop.”

Yes, people love to frighten us over this, selling gloom & doom newsletters, and encouraging gold.

#164 Ralph Cramdown on 10.17.15 at 9:25 am

Conrad Black says Trudeau has earned his chance and Harper has to go. It’s gettin’ to be the night of the short knives among the ink-stained wretches.

http://news.nationalpost.com/full-comment/conrad-black-stephen-harper-did-many-great-things-for-this-country-but-he-hung-on-to-power-a-little-too-long

#165 jess on 10.17.15 at 9:31 am

Would the TPP change this pricing model?
Why did Republican members refused to sign onto the subcommittee’s scrutiny of these taxpayers? Harper has acknowledged some in the auto sector may not like the terms that would be reached in a Trans-Pacific Partnership (TPP) agreement.
=======
Base Erosion /Transfer Pricing
netted $2.4 billion in U.S. tax savings over a 12-year period

caterpillar model

The economic substance doctrine was a well-established part of tax law long before it was codified as IRC section 7701(o) in 2010. As developed by the courts, in order for a transaction to be respected for tax purposes, it must satisfy either or both prongs of the economic substance test, which are (a) the subjective prong, i.e., that the taxpayer or its agents believe that the transaction has a valid non-tax business purpose, and (b) the objective prong, i.e., that the transaction has a reasonable possibility of generating a profit regardless of the tax consequences.

http://insurancenewsnet.com/oarticle/2014/04/02/Senate-Homeland-Security-and-Governmental-Affairs-Subcommittee-on-Investigations-a-483779.html

#166 crowdedelevatorfartz on 10.17.15 at 9:41 am

@#22 Resume of Justin Trudeau

“Do we really want such a person running a G7 nation?”
++++++++++++++++++++++++++++++++++++

Well , lets take a look at his illustrious predecessors shall we?

Papa Trudeau; economics degree( racked up $90 billion debt);
Joe Clark: Political Science( apparently they didnt teach political survival in that course).
John Turner: History degree ( and he became history very quickly)
Brian Mulroney: Political Science ( again. Is ethics taught in these courses? Is “Masters of Bagman” a legitimate degree?(paper bag actually). Racked up a 400 Billion dollar deficit… a new record for greed and stupidity)
Kim Campbell: Political Science ( They didnt teach empathy for “joe sixpack” in that course either)
Jean Cretien: lawyer( reduced the debt from $600 billion to $475 billion amazingly enough)
Paul Martin: degrees in History and Philosophy( who knew a philosopher could balance and REDUCE the national debt)
Stephen Harper: Masters in Economics(apparently secrecy is a major part of that course ) racked up the debt to $660 billion and climbing).

Interesting side note: Sir John A MacDonald, Alexander MacKenzie and Sir Robert Borden did not attend university. BUT they did manage to get their stern faces on a Canadian bill that you stuff in your wallet.
Who knows.
Maybe some day Justins smiling mug will be under your butt.

I’ll take a newbie …ANY newbie… any day of the week over the avarice conservative wastrels infesting the Parliament these days…..

#167 Bytor thee Snow Dog on 10.17.15 at 9:48 am

I love the smell of Neo-Con desperation in the morning.

And boy is that smell evident in many comments above. Don’t they know that people are voting Dipper and Lib exactly because of this type of politics?

#168 jess on 10.17.15 at 9:49 am

the terrorist spinmeister and recurring Fox News contributor …a fraud …what a surprise!

Feds Arrest Fox News Commentator, Allege He Lied About CIA Past
Wayne Simmons allegedly claimed past criminal history was related to his work at the CIA.

http://www.huffingtonpost.com/entry/wayne-simmons-arrest-cia_561fd787e4b028dd7ea6fd43

#169 crowdedelevatorfartz on 10.17.15 at 9:52 am

@#26 BC Guy
Man you dont like foreigners owning BC Property and now you blame boomers for everything else.
Would you like cheese with that whine?
Or, in your case, Doritios with that beer.
Not to worry, just go down to the closest tattoo parlor and get another $1000.00 “awesome tat” that says
“The boomers did it to me” . It’ll look nice sandwiched between the Celtic rune and the BC Flag.
I know plenty of boomers that squandered all their money on childrens educations, frivilous toys, vacations, cars, whatever…..and their kids learned every bad financial habit from mom and pop…..
Make your own way and stop whining about hows its everyone elses fault.
You might actually improve your lot in life.

#170 Nora Lenderby on 10.17.15 at 10:05 am

#136 Neithe Raborrower on 10.17.15 at 1:12 am
Hey Nora, you complete me.

Lol..take a number, kind sir (85%) or lady (15%)!

#171 Gray Man on 10.17.15 at 10:22 am

#133 Basil Fawlty
Why would Garth Turner discontinue a thread on the Bank of Canada creating money, rather than having the private banks create money at interest? This is beyond perplexing
————————————
Thanks Brother

You fractional-bank-bashing guys are a riot. But I admire the steadfast obtuseness. — Garth

#172 Gregor Samsa on 10.17.15 at 10:34 am

#166 crowdedelevatorfartz

Great post. The Cons are really into panic mode if they have to fall back onto the “Trudeau is dumb” line when Trudeau clearly outwitted their guy in every single debate and clearly ran the better organized, better run election campaign.

You want to know what I think is dumb? Purging your own political political party of all talent and trying to run an entire G7 government by yourself because you are an anti-social control freak. Now THAT’S dumb.

#173 Steergae Bilge on 10.17.15 at 10:36 am

#158 Leo Trollstoy on 10.17.15 at 8:43 am

When Trudeau went through engineering, it was common that only 1/3rd of the first year students would ultimately graduate with an engineering degree.

Completely false.

I have engineering friends who are mid-40s. Completely untrue.

You’re such a scammer.

No wonder you’re not successful.
———————————–

You two are hilarious – like an old a married couple. But yeah another whopper from Mark, pulling bogus stats outta nowhere.

#174 Hotdogs from Heaven on 10.17.15 at 10:39 am

It is amazing to see constant replies that claim interest rates will not go up next year and will continue to fall. Why?

CPI is currently 1.3%, but core inflation is at 2.1% as of August. This is with energy as the great decelerator within the inflation calculation. By Q1 2016 you will no longer have gasoline, diesel, etc… showing year over year drops in price. It will be flat. All the other factors in the calculation will start showing real price growth.

In most of 2015 the items you bought at a retailer were imported when the CDN dollar was at 85 cents. In 2016 these same items will have been imported at 75 cents. That’s about a 12% difference. Importers, wholesalers and retailers can cut some costs and reduce some profit margin to keep prices down, but a chunk of that MUST be passed on to you.

Anyone who does not see core inflation over 5% by mid-summer is simply not looking at the numbers. Interest rates will NOT be going down!!!!!

#175 Ralph Cramdown on 10.17.15 at 10:54 am

#160 common sense — “I have to ask about the markets…even though people are living longer( and more of their investments need to be kept in the market vs in the past when most money was in fixed investments due to decent interest rates), will markets naturally pull back as say 25% is pulled back into fixed investments?”

I used to think this would be an issue, e.g. here:
http://www.greaterfool.ca/2015/04/09/generation-screwed/#comment-365835

But now I’m not so sure. There’s two ways of looking at the universe of financial assets. You can think of the ‘average’ investor, who’s probably an upper-middle-class or high net worth ($1-5mm) household, in their 60s, and they’ll probably be tilting their allocation gradually from equities to fixed income.

But you can also think of the ‘average’ dollar in the market, and it is likely invested by a pension fund, hedge fund, sovereign wealth fund or ultra high net worth individual ($30mm+). Those dollars don’t need to tilt to fixed income as they get ‘older,’ they can stay at 60/40, or whatever their preferred allocation is, forever.

Retail investors with enough assets to collectively move markets but few enough that they need to change allocation as they get older are a small and shrinking slice of overall capital markets, I’m guessing. Pension funds and the 0.01% wealthy own more and more.

#176 Bottoms_Up on 10.17.15 at 11:04 am

#38 MSM-Free Zone on 10.16.15 at 7:06 pm
——————————–
You forgot the million dollar pond and gazebo. And sure hope you remembered to include snubbing the 1st ministers’ conference and UN climate change conference.

#177 Bottoms_Up on 10.17.15 at 11:07 am

#22 Resumé of Justin Trudeau on 10.16.15 at 5:59 pm
—————————-
Ain’t that the resume of both Einstein and SM?

#178 ANON on 10.17.15 at 11:15 am

Here’s a little investment idea for the brave: never underestimate The Brew. Taking the edge off first, and blowing off the top last.
I prefer homebrew, though: The perfect beer for whatever happens. Sampling a dark amber ale for the week-end, not too shabby. *

(*) Past Performance is Not Necessarily Indicative of Future Results

#179 Drill Baby Drill on 10.17.15 at 11:16 am

“Those who, for whatever reasons, took time off between high school and university had a particularly difficult time simply on account of being “away” from the heavy use of math/physics for a period of time.” – Mark 86

Not true anyone who did this took senior matric upgrading. I did and so did all mature students I attended eng school with.

#180 Gulf Breeze on 10.17.15 at 11:17 am

#131 Millenial 82

Can really understand your frustration about the current state of affairs for your generation and the comparatively easy time boomers had of it.

What is doubly annoying is all of the b.s regarding pulling yourselves up by your boot straps, etc… It is completely inappropriate and reveals more about those levelling the criticism than those being criticized.

I wonder what the answer is. I feel despair for young Canadians, facing a global jobs contraction, due to outsourcing of jobs, automation and technological ‘innovation’.

I do think that globalization has to be reconfigured, somehow. I just don’t quite know how, what the repercussions might be. Could end up worse — the revenge of unintended consequences.

We had it easy and you know what? Believe it or not, people of MY parent’s generation had it even easier, financially speaking.

Middle class life was achievable by one wage earner, no university degree, in Vancouver, no less. Four children was the norm!

I figured it out a few years ago. My late father, born in1928, would have had to make 250,000. per year, to live the life today, that he enjoyed in the fifties and sixties and early seventies.

Up until that time he was in the military; an officer, but not high ranking. We were considered lower middle class. Four kids, mom stayed home, we owned a modest house in a safe neighbourhood. Parents had two cars, we ate well and took regular vacations.

Developed nations are going third world. Just because we have all the bells and whistles of personal technology and all sorts of ‘stuff’ doesn’t hide the reality. It’s the slow burn that Catherine Austin Fitts describes.

#181 Leo Trollstoy on 10.17.15 at 11:27 am

ot true anyone who did this took senior matric upgrading. I did and so did all mature students I attended eng school with.

Mark is a fraud.

Just because he’s been unsuccessful in university, finding a job, investing and IT he thinks everybody must be a failure like him.

His made up comments are pathetic and disingenuous.

Complete fraud.

#182 Marco on 10.17.15 at 11:28 am

Thanks Garth.

@Hotdogs in Heaven

Inflation targets and interest rates.

A fine balancing act:

http://www.cbc.ca/news/business/stephen-poloz-may-let-inflation-creep-higher-don-pittis-1.3070933

“If four per cent inflation were to become the new normal, there would be other effects as well — many of them not so clear. Cash savings would fall in value as money bought four per cent less each year. Wage earners would clamour for higher pay. Banks and other lenders would have to re-examine real asset values.”

Cheers

#183 Gulf Breeze on 10.17.15 at 11:29 am

#146 Maxx

Poloz’s statements distancing accountability of central banks from the personal choices many make to take on too much debt signals the exact opposite, IMHO.

It appears to be code for, “we will cut rates again, if need be, and it’s up to the borrower to finesse his own personal financial situation.”

#184 Leo Trollstoy on 10.17.15 at 11:30 am

I’ll take the teacher over the mail room guy any day.

I’ll take the guy with the real world success over the ivory tower ‘teacher’ any day

#185 Bytor the Snow Dog on 10.17.15 at 11:35 am

@#184 Trollstoy-

Is that guy running in this election? Haven’t seen him.

#186 Daisy Mae on 10.17.15 at 11:36 am

#52: “The Globe and Mail has already called on Harper to resign immediately after the election. What does that tell you?”

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

Exactly. Voting for Harper based on his recent bribes –TFSA upper limits being one of them — and ignoring 125 reasons not to vote for the ‘cons’ can’t be dismissed.

#187 Wild Roasted Nutz on 10.17.15 at 11:39 am

#184 Leo Trollstoy on 10.17.15 at 11:30 am

I’ll take the teacher over the mail room guy any day.

I’ll take the guy with the real world success over the ivory tower ‘teacher’ any day
———————————
And sadly all three of them have zilch real world experience…. all three politocos for life….what a brutal choice this go around.

#188 For those about to flop... on 10.17.15 at 11:39 am

#144 RE = Pyramid Scheme on 10.17.15 at 6:44 am
#8 For those about to flop… “Head meet brick wall. Repeat until unconscious.”

Too funny!

/////////////////////////////////////////
Wow ,someone took the time to read one of my comments.I am honoured.
I have been thinking about posting in Australian as English is my second language and I sometimes wonder if the humour translates. Anyway what has happened in Canada in the last ten years has been a disgrace in any language.
The parties are asking for a mandate.
I’ll give you a mandate ,SORT YOUR SHIT OUT!

#189 Mark on 10.17.15 at 11:42 am

“Completely false.
I have engineering friends who are mid-40s. Completely untrue.”

What does having engineering friends have to do with anything? There is nothing false about my statement whatsoever. Nice try at the trolling, but you simply do not know what you are talking about. Rates of attrition in engineering programs are extreme, largely on account of the difficulty of the curriculum particularly in physics and mathematics, but also on account of the fact that it is a direct-entry program and requires significantly above-average workload.

Try talking about stuff that you have a clue about in the future. You’re really doing the GF audience a giant disservice with your constant trolling.


No wonder you’re not successful

Again, another completely dishonest statement by the Troll. Why do you make things up as you go along?

#190 Daisy Mae on 10.17.15 at 11:43 am

#56: “What has changed for the better? Government revenues from taxes on land transfers….”

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

What fools we are….

#191 Mark on 10.17.15 at 11:49 am

“Disagree. The average age of my grad class was close to 30.”

Where’d you go? Lakehead or something, which specifically has a program catering to such? Because I had the opportunity to, when I was in undergrad and even in another capacity post-graduation, visit the engineering faculties (UBC, UAlberta, UCalgary, USask, UManitoba, UToronto, UWaterloo, Queens, McGrill, L’Ecole Poly, Dalhousie, and Memorial) of quite a number of top-tier Canadian engineering research universities (and American ones too, ie: Stanford, UCB, etc.), and very few undergraduate students were in anything but their early 20s. Producing a graduation age, with internships, typically in the 23-25 range.

#192 Wild Roasted Nutz on 10.17.15 at 11:53 am

#38 MSM-Free Zone on 10.16.15 at 7:06 pm

I could probably come up with one or two self-indulgent, selfish reasons (TFSA increase, yadda, yadda) to vote for Stephen Harper and his Conservative(?) Party of Canada.

Unfortunately, I also witnessed 125 additional reasons why I just can’t vote for the man and his current party ever again (yeah, I’ve been paying attention):
————————
Clearly that is the abridged version.

Surely the brutal piano man singing shtick for the clapping seals would be reason # 1.

#193 Marco on 10.17.15 at 11:53 am

@Leo Trollstoy

“I’ll take the guy with the real world success over the ivory tower ‘teacher’ any day”

Yeah like relying on commodities, mainly oil, alone to fuel growth. The lack of funding for renewables. Runaway house prices. Emergency low interest rates to prop up the economy. Record personal debt. Budget deficits. A recession, and on and on…

Success is subjective, evidently.

Cheers.

#194 Ralph Cramdown on 10.17.15 at 11:55 am

#182 Marco — “If four per cent inflation were to become the new normal, there would be other effects as well […]”

Yeah. Poloz would need to travel with a phalanx to protect him from the Libby Znaimer-led CARP mob.

And at international finance gatherings, they’d make him sit at the kids’ table with Yanis Varoufakis.

But that CBC article is way off base. It ain’t higher inflation OR higher interest rates — it’s higher inflation AND higher (nominal) interest rates. They can keep the overnight rate nailed to the floor, but five year bond buyers are going to want their premium.

The Bloomberg article it referenced isn’t too much better. Whenever a trader is quoted as saying the central bank would “lose credibility” doing something, it just means his portfolio isn’t positioned for it.

I don’t think a 4% target is a terrible idea, but i don’t think it’s going to happen. Isn’t everyone enjoying secular stagnation?

#195 ANON on 10.17.15 at 12:02 pm

#134 Basil Fawlty on 10.17.15 at 12:28 am

Why would Garth Turner discontinue a thread on the Bank of Canada creating money, rather than having the private banks create money at interest? This is beyond perplexing.

Not speaking for Garth, but I think the actual name of the accountant of promises is totally irrelevant. Only trust in the accountant and the self reinforcing narrative is what gives those promises value, so being both the issuer, receiver and the accountant does not bode well for whatever is promised. Deep scarcity gives promises value also, a long forgotten arcane phenomenon which is about to shock everyone very soon.
All things considered, the math of compounding interest does not have an institution name or political affiliation in its formula and will have behaved the same, an exponential rise, for as long as trust is there.

That was perfectly clear. — Garth

#196 Herb on 10.17.15 at 12:07 pm

#184 Leo Trollstoy,

and what “real world success” would that be, Troll?

#197 Retired WI Boomer on 10.17.15 at 12:12 pm

#122 Washed UP Lawyer

Way back when was a Braves fan, remember the world series 1957, too, though was a mere sprout of 6.

Right now, with the Brew crew out ’til spring all milk-soaked eyes are on that perennially desperate favorite, the Cubs.

2015 according to the prognostications in “Back to the Future II” the Cubs will be victors. (yeah, like a movie knows Jack …), but better than an old billy goat curse, eh?

Jays need a win, KC did a bad mind-number with the shut-out yesterday! Jays a better bet than KC in my book (but I’m a Brewers fan -what does THAT say??)

It’s never done over ’til its OVER! That’s why Beer was created, right?

#198 Gulf Breeze on 10.17.15 at 12:19 pm

#184 Leo Trollstoy

“I’ll take the guy with real world success over the ivory tower teacher any day!”

I’ll take the dude being supported by the verbally rampaging, Thesaurus Rex, Conrad Black!

What’s that you say? He’s throwing his support behind Trudeau?

OMG, we need a convicted felon to throw his weight behind Mulcair now!

#199 bdy sktn on 10.17.15 at 12:25 pm

#158 Leo Trollstoy on 10.17.15 at 8:43 am

When Trudeau went through engineering, it was common that only 1/3rd of the first year students would ultimately graduate with an engineering degree.
#158 Leo Trollstoy on 10.17.15 at 8:43 am

When Trudeau went through engineering, it was common that only 1/3rd of the first year students would ultimately graduate with an engineering degree.

Completely false.

Completely false.
_____________________
Did eng late 80s. First 2 years knocked out well over half. It’s a tough program.
Once in a while he gets it right.

#200 Retired WI Boomer on 10.17.15 at 12:31 pm

#122 WUL

Didn’t notice the “Ferguson Jenkins” by line ’til I sent my reply. You sly one! (wasn’t he with the Harlem Globetrotters for a time after his MLB career)? Curious if he sang on their record “Rainy Day Bells” in late 1969?

Yes, Cubs shall too, have their day. You don’t wish it at the expense of the Jays?

#201 Herb on 10.17.15 at 12:57 pm

#166 crowdedelevatorfartz,

“Paul Martin: degrees in History and Philosophy( who knew a philosopher could balance and REDUCE the national debt)”

Got the same degree (it’s only one, a four-year honours “Philosophy, English or History Option”) in the same place, two years after Martin. It’s easy to figure out:
philosophy forces – and trains you – to think objectively and logically, and history shows you what has been and keeps you grounded.

Martin’s downfall was that he forget one book he would have encountered on his way to that degree, A.J. Ayer’s Language, Truth and Logic. And so he became “Mr. Dithers” and lost the country.

On the other hand, Martin went on to a law degree, and then into business. Maybe that was his undoing as PM.

#202 SWL1976 on 10.17.15 at 12:59 pm

#171 Gray Man

#133 Basil Fawlty

Why would Garth Turner discontinue a thread on the Bank of Canada creating money, rather than having the private banks create money at interest? This is beyond perplexing

————————————

Thanks Brother

You fractional-bank-bashing guys are a riot. But I admire the steadfast obtuseness. — Garth

It’s not about fractional reserve banking. It’s about private banks having control over a ‘Sovereign Nation’s’ money supply.

It is not ‘tinfoil’ either and clearly not open for discussion here

#203 zee on 10.17.15 at 1:02 pm

Poloz, I remember him saying a few months when he dropped rates that he did it so that Canadians can take on more debt.

Everyone knows lowering the rates does nothing to protect the oil sector.

Now he is concerned that canadians have taken on too much debt and this is a risk to the country but this is not the BOC problem. its the fault of the consumer for taking on this debt.

Lowering rates, he knew what would happen and now you want to walk away from any responsibility.

And for couple who went and bought the house, good move, as I have said Real Estate will hold up in GTA.

#204 kommykim on 10.17.15 at 1:09 pm

RE:#180 Gulf Breeze on 10.17.15 at 11:17 am
Developed nations are going third world.

One trade deal at a time and soon we’ll all be on the same level as the majority of the people in the world.

#205 the artist formerly known as eddy on 10.17.15 at 1:09 pm

I dont get it. “Justin has a crappy resume so lets vote Harpo.”
Go ahead, but you are voting for a Marxist, and that name is based on his actions and policy. He can call himself what be likes- in My world words have meaning.

#206 For those about to flop... on 10.17.15 at 1:42 pm

Good to see some people holding Leo Toiletspray accountable for his trolling today…don’t encourage Mark to much though!

#207 Gulf Breeze on 10.17.15 at 2:02 pm

Hotdogs from Heaven,

The idea that inflation of 5% won’t be tolerated, in the near future, has to be seen against the consequences of trying to curb it.

Raising rates to facilitate a targeted 2% rate of inflation, might be quite ‘uncomfortable’ for politicians. And I mean guillotine style discomfort. Each percent point rise means an inevitable loss of jobs and the indebted losing their homes, when refinancing.

Inflation is painful but has this weirdly egalitarian kind of suffering going for it. Everybody gets to hurt together, to some degree, both rich and poor. Also, inflation is more incremental, a bit stealthier than a balls to the wall deflationary depression.

In the deflationary scenario central bankers create immediate pain, laser focused on ‘families’ ( love how pols invoke this constantly when the majority of us don’t live in a family setting. Pure pandering to sentiment– but that’s another topic)

If our next leader dares to raise rates, in this environment, regardless of what Yellen does, he will be viewed as a villain right out of a Charles Dickens novel.

Harper was Bradbury’s ‘Fahrenheit 451’ book burning dictator — and the nemesis of the scientific community.

The next leader doesn’t want to be remembered as the Prime minister who fired Bob Cratchitt, kicked him out of his house, and pitched Tiny Tim off a cliff!

The new pm will do whatever it takes to keep Tim, Bob and family in their humble digs and in their jobs. God bless us one and all!

#208 Nora Lenderby on 10.17.15 at 2:06 pm

#180 Gulf Breeze on 10.17.15 at 11:17 am
#131 Millenial 82
Can really understand your frustration about the current state of affairs for your generation and the comparatively easy time boomers had of it.

Difficult times. Paul Theroux has an interesting piece in the NYT about the U.S. hinterland which applies to all “developed nations”, I think:

The Hypocrisy of ‘Helping the Poor’.

#209 Craig on 10.17.15 at 2:10 pm

Poloz also mentioned debt to service ration has been steady. Therefore higher debt to income being higher is still alright.

You didn’t mention this.

Irrelevant when rates rise. The dynamic changes fast. — Garth

#210 Mark on 10.17.15 at 2:13 pm

“Poloz, I remember him saying a few months when he dropped rates that he did it so that Canadians can take on more debt.”

The problem with central bank monetary policy is that its largely a flame-thrower. There are certain Canadians and certain Canadian companies which are significantly under-leveraged. Probably to the long-term detriment of their infrastructure.

Ordinarily when interest rates fall, the economy would allocate any incremental capital available to sectors with the highest risk-adjusted pro forma returns.

However, this mechanism was largely short-circuited, over the past decade, by the presence of CMHC subprime mortgage insurance. $900B of credit that ordinarily would have been allocated based on a risk/return hierarchy, was instead allocated exclusively to housing on account of mortgage debt having the same theoretical risk as government bonds.

The result? Lower than potential economic growth. High unemployment in investment intensive sectors outside of FIRE and O&G (ie: manufacturing, IT/tech, etc.). Significantly inadequate infrastructure in some key sectors of the economy (telecom, railways come immediately to mind!). And a venture capital sector that is basically on its deathbed in Canada.

Now, some of that $900B would have gone into houses. There is a legitimate need of housing in Canada. But having $900B of credit directed into the housing sector through CMHC’s guarantee has created some profound distortions in the marketplace and ignited the obvious speculative frenzy where even worn out used houses fetched top dollar valuations. And arguably created some profound opportunities for those smart enough to be able to position themselves accordingly (ie: trade against the masses of Canadians who are overweight RE, overweight fixed income and underweight business ownership).

#211 Chris Stanfeld on 10.17.15 at 2:15 pm

To #205 the artist formerly known as eddy

Central Banks are part of the Communist Manifesto. Cheap mortgage rates and other borrowing rates are the rub of this.

#212 Gulf Breeze on 10.17.15 at 2:17 pm

Kommy Kin,

As far as trade deals bringing us closer to third world status, I hope there is some meagre benefit, if not for us, then for the third world.

It’s a sad, pathetic situation that governments have lost control to a global pathocracy. The world can’t run on altruism alone. But it can’t be run by crony capitalists, masquerading as good old fashioned competition loving businessmen.

A huge shift in consciousness is required. Corny sounding–but true.

#213 Mf on 10.17.15 at 2:23 pm

#203 zee

“And for couple who went and bought the house, good move, as I have said Real Estate will hold up in GTA.”

Yeah just like in 1989 right?

Held up real well alright…

Was a dumb move.

Mf

#214 Daisy Mae on 10.17.15 at 2:26 pm

#115: “You forgot to post some of his attributes like his holding a Masters Degree in Economics.”

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

Really? Because of Harpers’ ineptitude with regard to the handling of our federal budgets, we’re in the worst shape since the depression. So much for a ‘Masters Degree in Economics”….

#215 Engineering graduate on 10.17.15 at 2:29 pm

191 Mark -Lakehead. That’s funny, but my school is on
your “big boys” list.

at 189 you stated

“Rates of attrition in engineering programs are extreme, largely on account of the difficulty of the curriculum particularly in physics and mathematics, but also on account of the fact that it is a direct-entry program and requires significantly above-average workload.”

This I agree with. Nowhere did I disagree with what may be the average age of graduates in engineering. I
only stated what the average age in my class was. As this is my experience, I disagree with your statement at 87 about taking time away from school before
entering an engineering program being detrimental.

#216 young & foolish on 10.17.15 at 2:39 pm

“One trade deal at a time and soon we’ll all be on the same level as the majority of the people in the world.”

Exactly. And why not? Are 1st world residents “special” and deserving of better living conditions? Those are now reserved for the 1%ers, and they are going “global”.

#217 Daisy Mae on 10.17.15 at 2:43 pm

#154: “People who think the leader needs to be personally competent in all the arts of running a country have been living under Harper’s leadership style for a bit too long….”

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

That’s the problem. Harper is so damn arrogant — it’s his way or no way. He consults no one.

#218 SWL1976 on 10.17.15 at 2:51 pm

#214 Daisy Mae

Really? Because of Harpers’ ineptitude with regard to the handling of our federal budgets, we’re in the worst shape since the depression. So much for a ‘Masters Degree in Economics”….

Actually I started reading Mr Harpers thesis provided to us by Ralph Cramdown, and I don’t think he has a lack of understanding of the subject. I think the biggest problem for us is that he serves the interests of the globalist and private bankers, not that of the people he was elected to serve

#219 Ronaldo on 10.17.15 at 3:06 pm

#33 PeterFromCalgary

Good point Peter. Yes, they are indeed quite the engineers aren’t they. Not only did they engineer a one asset strategy, they have engineered the biggest financial disaster (yet to come) for anyone that has bought into this market since the GFC. And then who will they blame? The height who stupidity with government boggles the mind. Instead of allowing the markets to correct normally in 2008 as they were trying to do, they intervened with the lowest interest rates we’ve ever seen, making it easy for anyone with a pulse to buy a house. Much the same as what happened in the USA a couple years earlier. Now it’s our turn and they have run out of ammo to stop the inevitable. It ain’t going to be pretty. What out 2016.

#220 Retired WI Boomer on 10.17.15 at 3:11 pm

# 208 Nora Lenderby

The NYT article by Paul Theroux is quite accurate, and correct. Manufacturers have left the buildings, and there is no reason to believe they will return. Why should they?

There is NO economic incentive to produce in a higher cost America than a lower cost place, no import tariffs, lower taxes on foreign made money re-patriated to the US.

Unless, and until this situation is changed it will be a slow decline until it accelerates into the final act of either National Bankruptcy, or Revolution.

Can our neighbors be far behind us?

#221 BUILD EQUITY RATHER THAN WASTE RENT $ on 10.17.15 at 3:11 pm

The rents are growing fast in Vancity for landlords to recoup their cost of purchase. I can sympathize with people who are tantalized by owning for less than rent for the short term. I suppose the short term thinking, modeled after our gov’t is the norm.

Give us an example of owning for less than renting in Vancouver. — Garth

#222 Freeman on 10.17.15 at 3:19 pm

For anyone who is an engineer or knows an engineer; Canada is just a branch plant of the U.S.

We don’t actually design anything here, we just follow orders from the head office somewhere else.

As a result, Canadian companies DON’T need engineers in the same way the U.S. does. And as such, our engineers don’t get paid nearly as much as those in the U.S.

Notice how in the U.S. there actually ARE entry level positions for engineers, while in Canada those are few and far between, if any?

I’d say that half of graduating engineers in Canada take sales jobs or management jobs, because there just isn’t any entry level engineering jobs to be had here, and that is because Canada is not a real country, its just a ‘SHELL’ country, with our manufacturing companies being simple branch plants of some company that has its main engineering done in their own home countries.

Now if jobs suck so badly, and the pay sucks even worse, then why on earth is our housing prices way up in the stratosphere?
Realistically, our housing prices should reflect our crappy pay rates and they should be closer to $100,000 each, not $1 Million each.

#223 BS on 10.17.15 at 4:34 pm

RE:#180 Gulf Breeze on 10.17.15 at 11:17 am
Developed nations are going third world.

One trade deal at a time and soon we’ll all be on the same level as the majority of the people in the world.

How come the lefties want everyone to be equal in Canada, but when it comes to helping real poor people like those living in third world countries, well that would be terrible to allow any jobs or wealth to go to them. Let them starve.

In reality the lefties are not about helping the poor. They are about helping themselves on the backs of others. They want to work little and have all the same benefits of those that work hard.

#224 pete on 10.17.15 at 4:35 pm

Freeman on 10.17.15 at 3:19 pm
For anyone who is an engineer or knows an engineer; Canada is just a branch plant of the U.S.

We don’t actually design anything here, we just follow orders from the head office somewhere else.

As a result, Canadian companies DON’T need engineers in the same way the U.S. does. And as such, our engineers don’t get paid nearly as much as those in the U.S.

Notice how in the U.S. there actually ARE entry level positions for engineers, while in Canada those are few and far between, if any?

I’d say that half of graduating engineers in Canada take sales jobs or management jobs, because there just isn’t any entry level engineering jobs to be had here, and that is because Canada is not a real country, its just a ‘SHELL’ country, with our manufacturing companies being simple branch plants of some company that has its main engineering done in their own home countries.

Now if jobs suck so badly, and the pay sucks even worse, then why on earth is our housing prices way up in the stratosphere?
Realistically, our housing prices should reflect our crappy pay rates and they should be closer to $100,000 each, not $1 Million each.

______________________________________________

You do know Canada is NOT ALLOWED To have any industry that’s not dependent on the US. The Avro arrow is a perfect example of Americans flexing their muscles. THEY managed to shut down the production of a brand new state of the art production facility. The Avro arrow was fastest jet of the time beating everyone including the Americans. The potential for spin off industries were huge. Anyhow this brand new facility was shut down and everything was destroyed . ALL the top engineers went to work in the US and help them develop their big strong aviation industry. Think about BlackBerry and how they were bashed via propaganda machine as to little to late but microsoft who was very very late and lacks a ton of apps never attacked. BlackBerry will be allowed to build a successful Phone using the Android OS since it will be dependent/benefit an American company. IT’S to bad Canadians don’t understand what is going on in the world.

#225 Retired WI Boomer on 10.17.15 at 4:54 pm

Lefties, Righties…. from my dim perspective there just isn’t that MUCH difference in what we get.

Obama is allegedly this “left wing” president. In defense, in security he is George Bush. In economics he is mostly Georgey Bush, he didn’t give home owners much help and too little, too late.

Bush never met a spending bill he didn’t sign, (where is the conservative, there?).

Both continued wasteful military nonsense that has reaped destruction, and cost billions or trillions who knows anymore.

Hope your selection of “leaders” is better than ours, but I don’t think so…

#226 Ralph Cramdown on 10.17.15 at 5:12 pm

#223 BS — “How come the lefties want everyone to be equal in Canada, but when it comes to helping real poor people like those living in third world countries, well that would be terrible to allow any jobs or wealth to go to them.”

Same reason the right wingers support public healthcare and employment insurance, I think: Electability. You can find internationalist left wingers (Marxist-Leninists are on the ballot in some places Monday), and Ayn-Randian nutbars, if you look. It’s called the radical fringe.

#227 Washed Up Lawyer on 10.17.15 at 5:13 pm

My sorry-assed career hardly puts me in a position to offer career advice to anyone but I offer the following observations.

I spent a couple of hours yesterday pouring over a socio-economic impact assessment for a proposed oil sands development next door to my rental accommodation in Fort McMisery.

A multi billion $ investment.

The foreign content of the Capex (Engineering, Labour, Equipment and Manufacturing) is slightly higher than the Alberta content and more than double the content from within Canada but outside of Alberta.

The foreign Opex bucks, over a 25 year lifespan for the project is about equal to the Alberta contribution and more than double the contribution in Canada outside of the Province of Milk and Honey.

My uninformed suggestion to the young women and men studying or training to become engineers, millwrights, power engineers, fabricators, welders, pipe fitters, electricians, machinists etc. (all more honourable professions than the practice of law) is to dedicate 2 evenings a week studying one of Korean, Japanese or Chinese. You will gain a competitive advantage.

I am in a good position. I speak two languages. English and profanity.

#228 Patrick on 10.17.15 at 5:40 pm

#87 Mark on 10.16.15 at 9:24 pm

#158 Leo Trollstoy on 10.17.15 at 8:43 am

Trudeau didn’t finish engineering school? who cares. Program is tough, high failure rate, type of work is not for everyone.

I’d be interested in knowing how many MP’s hold technical degrees anyways. Not many. Although, I think a more technically-literate government would probably make better, more evidence-based decisions.

The reality is that we live in a country where 90% of our $80k a year teachers would probably fail a grade 8 math test. How do you expect to get engineering-educated politicians from a system like that?

I’d be happy to find out our politicians know how to add and subtract. Judging by the deficits and spending habits, I doubt they can.

But I think this all ties together nicely, considering that we are on a blog discussing the irrationality of house prices in this country.

If people were less numerically-challenged and made decisions with facts & logic instead of feelings & cliches we wouldn’t have a massive housing bubble and this blog wouldn’t even exist.

#229 macro economy on 10.17.15 at 5:59 pm

#222 Freeman
#224 pete
#227 Washed Up Lawyer

====

Too bad, this influential “elite” financial blog is focusing almost exclusively on real estate, as if it was the alpha and the omega of all sickness of the Canadian economy.

Canadian real estate is the symptom, not the root cause.

It’s the main asset held by most Canadians, for better or worse. Thus, it is a worthy entry point into micro and macroeconomics. — Garth

#230 DON on 10.17.15 at 6:28 pm

#132 BS on 10.17.15 at 12:24 am

And what exactly was Harper’s resume before assuming the PM’s office?

Harper’s resume 10 years ago is irrelevant to this election. What is relevant is Harper’s resume now and Jr. Trudeau resume now. No comparison.

Harper has a masters in economics not a kindergarten school teacher degree. Economics being a little more relevant to running a country. Now if we were looking for a teacher to help little Johnny with his crafts then I agree Jr. Trudeau is qualified

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

Come on…education gives knowledge…that’s it. It is how the individual applies such knowledge and implements in real situations. A masters degree and looks what he’s done – one commodity, one asset strategy – Shouldn’t I be expecting more from his masters degree. In my opinion people should cleanse themselves from ideology and provide real solutions.

I support the liberals infrastructure plans, at the very least we’ll have something to show for it. What do we have now after the boom…unaffordable houses. The govs need to make the right investments, some actual forward thinking is required, but apparently optional.

Maybe it is time to require our politicians to take certifications before running for office.

Slow and steady into the abyss with the current gang. MSM just reported a grim business environment for the next gov.

#231 Leo Trollstoy on 10.17.15 at 6:29 pm

Did eng late 80s. First 2 years knocked out well over half. It’s a tough program.
Once in a while he gets it right.

Did early 80s eng. Friends did late 80s. Eng physics. Even those who fell out of eng physics and went into mech/chem/ind/whatever had an easy time.

No way Mark is right unless the class is retarded.

#232 Patrick on 10.17.15 at 6:29 pm

Re: Wild Roasted Nutz #192

“Surely the brutal piano man singing shtick for the clapping seals would be reason # 1.”

Surely one of the best one liners of all time Mr. Nutz !

#233 Leo Trollstoy on 10.17.15 at 6:32 pm

#193 Marco on 10.17.15 at 11:53 am

Success is being born with a silver spoon and horse shoes, evidently.

Lol

#234 Leo Trollstoy on 10.17.15 at 6:34 pm

But yeah another whopper from Mark, pulling bogus stats outta nowhere.

Care to refute this with data Mark?

Didn’t think so.

Move on. Accept another loss.

#235 Leo Trollstoy on 10.17.15 at 6:38 pm

Engineering attrition rates aren’t bad.

Even if you studied at McMaster.

https://profbillanderson.wordpress.com/2013/05/22/engineering-failure-rates/

And they weren’t much different in the 80s either.

Unless you believe that people were significantly dumber a generation ago.

Which would be more telling of your intelligence than theirs anyway.

#236 Leo Trollstoy on 10.17.15 at 6:48 pm

only stated what the average age in my class was. As this is my experience, I disagree with your statement at 87 about taking time away from school before
entering an engineering program being detrimental.

Most of my colleagues and I did the Professional Experience Year (PEY) and found the delay to be beneficial. Real world experience. Good pay. It made the last year(s) far easier.

PEY pays $45k on average (highest paid undergrad was actually $84k). Needless to say, if you graduate from engineering (at age 21) and can’t hit $100k in the next 9 years while you’re still in your 20s like Mark, that says something.

http://engineeringcareers.utoronto.ca/internship-programs/pey/

#237 Smoking Man on 10.17.15 at 6:54 pm

On some of the forex chat rooms, if Justin wins, USDCAD will run up..
Poloz wont need to cut again. TrueDoh will kill the dollar.

#238 macro economy on 10.17.15 at 6:58 pm

229 macro economy on 10.17.15 at 5:59 pm
#222 Freeman
#224 pete
#227 Washed Up Lawyer

====

Too bad, this influential “elite” financial blog is focusing almost exclusively on real estate, as if it was the alpha and the omega of all sickness of the Canadian economy.

Canadian real estate is the symptom, not the root cause.

It’s the main asset held by most Canadians, for better or worse. Thus, it is a worthy entry point into micro and macroeconomics. — Garth

No doubt.

Yet research shows that seemingly individual decisions how individuals select their wealth accumulation targets
are majorly pre-determined by macro-economic factors of a country.

Making real estate the main asset might be the reflection of a resource exporting economy.

In economies where creating added value has a high weight, investment in private enterprises is more common and more appealing, it creates more wealth for more people, since the wealthiest individuals are not necessarily the one who control the export of natural resources, but those entrepreneurs, who create the most successful value-added products, services, which seem to have higher profit margins.

Comparing the companies in the TSX with companies in the US exchanges is probably the easiest explanation why the two economies are heading in the opposite directions.

This election does very little service to make any changes here.

#239 LL on 10.17.15 at 7:01 pm

“We really don’t wanna spend more than $950,000,” Tom said when we met. “But we’ve been pre-approved to purchase a property as high as $1.2 million.

And I am sure they have been told to have a fixed mortgage….interest will rise soon!

Y’a right!

#240 kommykim on 10.17.15 at 7:09 pm

RE: #223 BS on 10.17.15 at 4:34 pm
How come the lefties want everyone to be equal in Canada,

Absolute equality for everyone in Canada is impossible. But what is possible, is helping out those at the bottom of the socioeconomic ladder both nationally and internationally. A minimum standard of living for all is not equality across the board. For me, it’s never been about giving away the farm, but rather about helping out a neighbour in need.

#241 Daisy Mae on 10.17.15 at 7:16 pm

#218: “I think the biggest problem for us is that he serves the interests of the globalist and private bankers, not that of the people he was elected to serve…”

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

If so, he’s leading the electorate into hell….

#242 The Other Chris on 10.17.15 at 7:17 pm

@235 Leo Trollstoy

That’s an interesting link. Who would have thought engineering graduation rates were actually higher than humanities graduation rates? But it looks like the data bears that out.

#243 Daisy Mae on 10.17.15 at 7:22 pm

#219: “Much the same as what happened in the USA a couple years earlier.”

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

Harper, our so-called ‘leader’ can’t think for himself? All he can do is follow?

#244 Daisy Mae on 10.17.15 at 7:36 pm

#229: “Canadian real estate is the symptom, not the root cause.”

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

Canadian real estate prices ARE the root cause of all our problems…and we have Harper to thank for it.

#245 Daisy Mae on 10.17.15 at 7:39 pm

#230: “Harper’s resume 10 years ago is irrelevant to this election. What is relevant is Harper’s resume now and Jr. Trudeau resume now. No comparison.”

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

Wrong. Harper is no brighter now, than he was then.

#246 Smoking Man on 10.17.15 at 7:40 pm

This dude is at Senica every weekend, no one sees him come in or leave. Wondering what planet he’s from. How he teleport’s here?

Dancing by himself week after week.

http://dyslexicsmokingman.blogspot.ca/2015/10/dancing-man.html

#247 For those about to flop... on 10.17.15 at 7:47 pm

Don’t worry Daisy Mae in a couple of days you won’t have to dish it out to SH every chance you get.
I don’t like SH either but I don’t hang out with the guy..
ie: he doesn’t come over for a few beers on Thursday night .
I never see him at work.
I don’t carpool with the dude.
I am not going to let a dude I don’t know spoil my life.
Hope you get your wish for your sake,but I will be fine either way.

#248 Daisy Mae on 10.17.15 at 7:55 pm

#154: “I manage a huge company, I can push a button on my desk, and get the top expert in the world to answer any question I want answered. I don’t need to know the answers, I know how to get an answer if I need it.” — Henry Ford”

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

Worth repeating. Trudeau has a consulting team to advise. He’ll listen. Harper does not.

#249 Sheane Wallace on 10.17.15 at 7:58 pm

#244 Daisy Mae on 10.17.15 at 7:36 pm
#229: “Canadian real estate is the symptom, not the root cause.”

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

Canadian real estate prices ARE the root cause of all our problems…and we have Harper to thank for it.

————————–

The political decision to back extreme sub-prime mortgages with CMHC ‘insurance’ while miss-pricing the risk and lying about it is the ultimate failure of politicians.

Once the housing bubble explodes and the dust settles, there would be very little left of the Canadian economy, the distortion of markets might take decades to repair.

The period of ‘prosperity’ from the last 10 years might be in the historical and economics books some day.

The biggest housing bubble in the history of the world surely will find it’s rightful place next to the tulip mania, the south sea bubble. Will our current leaders become as famous as John Law? Time will tell.

When people realize the emperor has no clothes it would be too late to react.

#250 Smoking Man on 10.17.15 at 8:02 pm

Oh man, I learned SQL Server in one day, but my book project is 6 years now. I finished and sent a copy to a buddy. Famous Hollywood Director. I only sent him two chapters.

So needs a bit of a re write, here are his comments.
–+++++++

Interesting concept. Obviously it’s been done before in different ways, (aliens living among us, able to easily mix in while having some sort of agenda for the human race), but what makes this unique is how ‘down-to-earth’ the main characters, who happen to be aliens, are. You’ve given them quirks and vices, which makes them intriguing, and there’s a humor that’s consistently woven throughout. What they’re missing, however, are real faults. The protagonist seems infallible, which takes some of the tension out of the story, i.e. there’s no, “Oh shit, don’t do that!” moments, because the protagonist, with his off-the-charts IQ, ability to read minds, ability to program minds, and his overall unshakable confidence, is flawless. What could possibly go wrong when he’s in the driver seat, so to speak (he’s also an excellent spaceship pilot)?

It reminds me of ‘Men In Black’ (“MIB”), where aliens live among us, and the protagonists are part of a special governmental force that’s responsible for keeping peace and balance between us and among our visitors. That too, was a sci-fi comedy, but there’s an important difference between that and Vegas Fiction (“VF”), which is structure.

MIB follows a three-act structure, and though VF is only a 2-chapter draft, some ‘beats’ are already missing. We have the intro, where we’re introduced to the characters and their setting, but we don’t have an inciting incident, or a launch into act 2. The inciting incident is something early on in a story that sets everything into motion, and act 2 is where the mission has been accepted by the protagonist, and it’s started. In MIB, the inciting incident is where Will Smith’s character learns he’s been picked out by the MIB as their best potential candidate to fill an opening at the agency. Act 2 begins when Tommy Lee Jones’ character blows the head off of a pawnshop owner, and to his amazement, Will Smith’s character witnesses the pawnshop owner grow a new head. At that moment, Will Smith’s character realizes the world described by Tommy Lee Jones’ character, which he’d completely doubted up to that moment, is actually real, the job is real, and he’s on a real mission.

VF starts off with a fantasy sequence with the protagonist arguing with his penis, which seems to have a mind of its own. Then he wakes up to find himself having a nicotine fit, which is resolved with the help of his co-alien friend. A small conflict arises when management of the Vegas-based hotel enters the room, where the protagonist fears that his winnings may be confiscated, but instead, he receives a room upgrade. Next, the main characters are by a pool where the protagonist is pursued by a drunk or drugged-out woman. An obese man distracts everyone, including the reader, with some antics. Security personnel seem to stalk the main characters, though no real conflict arises. One of the main characters needs to be resuscitated. One of the aliens discusses the need to destroy the human race, though the justification for doing so feels very weak, as the human race is obviously many years away from intruding on other planets, and there’s no ticking clock, or deadline, for when all humans must be destroyed, nor are there consequences if the aliens/main characters don’t perform their task.

Other notes:
Riddled with grammatical errors, including the tense constantly switching from past to present, e.g.: Ashman starts to hyperventilate… (present tense, followed by) I said… (past tense)
Exposition in a number of places, for instance: “What happens if they figure out we are from another planet?” The audience is smart, especially nowadays. All that’s needed is showing the reader something that makes it obvious the protagonist isn’t human. While this puts a little extra work on the reader, it’s a much more organic way for anyone to take in a story, where they discover pieces along the way vs. having them handed to them in overly-illiterate/obvious ways. This is known as the ‘show me don’t tell me’ rule
“Well you had a great two hour roll on the crap table last night…” – Isn’t the game called “Craps”?
“…this guy has issues I think to myself.” This could work as narration in a screenplay, but in novels, usually we’re already inside the protagonists head, hearing their thoughts. Therefore, “I think to myself” is redundant
“Humans are stupid, we need to kill them all.” – This is not a motivation to take out the human race. Even if humans are stupid and killing each other, why are these aliens exerting so much effort in integrating into society, only to wipe all humans off the face of the earth? Even if it’s to avoid humans bringing their dark nature to other worlds, isn’t it obvious that such a thing is many decades, if not centuries away?
The CIA guys appeared to be a threat at first, but within an instant, weren’t. Therefore, what was their purpose?
All that said, again, it’s an intriguing concept with a very interesting protagonist. It’s got potential to become a can’t-put-down read, but it needs some serious tweaking in terms of the stakes. The aliens have so many superpowers, that it’s difficult to have either sympathy or empathy for them, because it seems they can’t be tripped up, and they have all the tools they could possibly need to get themselves out of any possible jams. I strongly suggest that you read “Save the Cat” by Blake Snyder, which does a great job of easily breaking down structure, and though it’s a screenwriting guide, it applies just as well to novels. And I also strongly recommend that you write down your entire structure before you get into the details of the story, because going with a stream-of-conscious approach, which is how it reads to me now, will eventually run out of steam for either you or the reader.

Lastly, you mentioned/warned that this was a weird read. A weird read is Charlie Kaufman’s “Being John Malkovich.” I loved that movie, but reading the screenplay was even more fascinating, because though it fit the typical 3-act structure, the ideas behind each scene incredibly original. And I’d say if anything, you need to go much, much further. Push your story to the limit. Push all of your characters to their limits. Remember, true character is borne from those characters being in extremely challenging situations, even if they’re on the verge of dying. That’s when we see real character. In a nutshell, push it much, much further into the weird zone. Show the reader what makes these characters aliens, give us a reason to like (at least some of) them, give us a strong antagonist, or force that works against them meeting the goals, and get weird. Get really weird to make this stand out.

Overall, nice work, Smokey. I enjoyed reading it.

#251 conan on 10.17.15 at 8:07 pm

Time for a Blue Jays moment………..

Argh!!!!!

#252 Paul on 10.17.15 at 8:14 pm

#217 Daisy Mae on 10.17.15 at 2:43 pm

#154: “People who think the leader needs to be personally competent in all the arts of running a country have been living under Harper’s leadership style for a bit too long….”

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

That’s the problem. Harper is so damn arrogant — it’s his way or no way. He consults no one.
———————————————————-Daisy
You better start posting 6 times a day to get rid of your built up hate and resentment only two sleeps left till the election. Then what will you target?

#253 Paul on 10.17.15 at 8:18 pm

Daisy

Oh. you are posting 6 times a day. Not really no critical thought just knocking other and giving no alternatives PAR

#254 crowdedelevatorfartz on 10.17.15 at 8:23 pm

@#201 Herb
Fascinating reading about the philosophy/history degree background.
Shame Martin never amounted to much in the leadership division.
“And so he became “Mr. Dithers” and lost the country….”
I had written him several times when he was Finance Minister and he actually responded to them personally. Shocked the hell outta me.
Nice guy, successful Finance Minister….. Shame his leadership didnt pan out longer…. possibly too nice.

#255 crowdedelevatorfartz on 10.17.15 at 8:25 pm

@#251 Paul.
Easy on Daisy Mae. I’m enjoying her posts.
Short, concise, and witty.
Unlike mine.

#256 45north on 10.17.15 at 8:28 pm

pete: The Avro arrow is a perfect example of Americans flexing their muscles. THEY managed to shut down the production of a brand new state of the art production facility.

from The Avro Canada CF-105 Arrow Definitive Documentary:

“the sales effort was amateurish and tentative”

this can be seen in the interview with Donald Fleming who looks like a total rube. “well I asked the American guy and he said no”. Well I guess that settled it.

minute 55:

“to what extent did American interests influence the cancelation? Not at all. The US did nothing to bring about the cancelation. We did it all ourselves.”

https://www.youtube.com/watch?v=7sFRiacvNYo

There is no evidence that the United States exerted its influence to cancel the Arrow. John Diefenbaker’s decision to cancel it looks like some kind of weird personality thing.

Paul Hellyer makes it clear that continuing the Arrow would have required a heavy commitment. I don’t see any of our present leaders with the vision and courage to undertake any similar endeavor. I mean Garth makes it clear that housing is just a service industry.

#257 crowdedelevatorfartz on 10.17.15 at 8:30 pm

@#249 Smokey.
Missplaced your meds again Smokey?
Or are you relegated to abusing the “street meds” and waiting for the Pharmacy to open at 9am tomorrow??

#258 BS on 10.17.15 at 8:38 pm

#154: “I manage a huge company, I can push a button on my desk, and get the top expert in the world to answer any question I want answered. I don’t need to know the answers, I know how to get an answer if I need it.” — Henry Ford”

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

Worth repeating. Trudeau has a consulting team to advise.

Pretty sad when the best thing you can say about someone’s competence is he will have advisors to tell him what to do. We may as well put a trained chimp in there to push the button on the desk.

#259 Smoking Man on 10.17.15 at 8:48 pm

Im in a wierd zone, a year ago to today.. I chirped god, told him he sucks . He cant take me out on the lake in his biggest storms. I dammed some action and the bastard takes my nephew. Seconds after that post..

I’ve changed since. I fear nothing nor get excited about anything any more. Don’t worry im not dumn enough yet to beilive in god.

Is that evolution, have I made it of sorts.

I have this gult over my head, I encouraged Marks adventures and pushing it.

Feeling very sad today. He was a great kid. Graduated from Laurie a with honors.

Rising star at PWC.

He’s gone. His dad, an old school wop , arrogant no more, justba broken man.

I so want him to hate me like the old days.

He cant hate or love… He’s in hell. We all are sort of.

#260 Freedom First on 10.17.15 at 9:01 pm

#244 Daisy Mae

Yes. Harper encouraged the borrowing orgy. However, every choice by an individual/couple comes down to accepting full responsibility and all of the ensuing consequences for decisions made, both good and bad. It is what adults do.

Daisy, perhaps chew on what you said about Harper for a while, then wait and see what comes out the other end.

#261 45north on 10.17.15 at 9:10 pm

Washed up Lawyer: The foreign content of the Capex (Engineering, Labour, Equipment and Manufacturing) is slightly higher than the Alberta content and more than double the content from within Canada but outside of Alberta.

so total = 2.5 foreign content ?

My uninformed suggestion to the young women and men is to dedicate 2 evenings a week studying one of Korean, Japanese or Chinese. You will gain a competitive advantage.

French is a lot easier. I mean transportation in English is transportation in French. It’s not that hard. Spanish is about the same.

#262 The Other Chris on 10.17.15 at 9:11 pm

My problem with Trudeau is the lack of life experience, not the lack of job experience.

The bouncing around between various vocations, working for only two years, dropping out of two university programs, etc. is all basically a symptom of a person who never had to face day-to-day realities because he always had the million dollar trust fund. You can see it in his face and demeanor too… he’s well into his mid-40s, yet he looks barely in his early 30s, because life has been easy.

I know he has advisors surrounding him. Some good, some dubious (Leslie), and some truly awful (Butts in particular). But when you don’t have the life experience to draw on, you don’t have real ability to distinguish good advice from bad. You don’t have the ability to appreciate just how hard it will be for many families who get crushed under Butts’ crusades against certain industries. It’s easy to fall into pie-in-the-sky plans that just won’t work out. It’s a judgment issue. I think the way he handled the suspensions of two of his caucus on assault issues without giving them the opportunity to defend themselves is just a symptom of this lack of judgement/life experience. Sometimes people with sympathetic stories actually are lying to you.

#263 Smoking Man on 10.17.15 at 9:11 pm

Back in the day I would be at the bar, flitting with females, every now and then quick glances at their milkers and zipper.

Those days are long gone.. In a booth by myself thinking about shit.

Universe stuff, neutrinos, black holes, white holes, you heard that first here on GF.

Science will discover the white hole shorty.

Being social takes too much effort.

Alone in a booth drifting and getting smashed by yourself..

Its heaven to me.

#264 Victor V on 10.17.15 at 9:18 pm

http://www.thestar.com/business/2015/10/16/what-lies-ahead-for-the-countrys-next-leader.html

Soon we will emerge from this hangover, forgetting the election absurdities (brothels?) and remembering that this election should have been about the economy and the state we are in.

Some may not have even noticed that just the other day Bank of Canada Governor Stephen Poloz was in Washington sharing the bank’s view that monetary policy “should be the last line of defence against threats to financial stability.”

The first line of defence? Borrowers and lenders. “They [that is, we] bear the ultimate responsibility for their own decisions at the individual and firm level,” he said. “It is not the role of monetary policy to protect individuals from making bad choices.”

It was a stinging line, especially when we consider the ways in which Canadian consumers have a) been enabled in the decisions they have made and b) kept the Canadian economy aloft.

Recall the September report from Statistics Canada on Canadians’ household debt-to-income ratio, which reached 164.6 per cent at the end of June. It wasn’t a huge pop from the previously recorded 163. But it was a record nonetheless and, taking the long view, nothing short of alarming. (In 1980, the ratio was 66 per cent. In 1990, 89 per cent. In 2011, 150 per cent. And so on. Even with the divergence in housing market outcomes and asset valuations post financial crisis, it does provide some context to note that in the U.S., debt to disposable personal income peaked at about 130 per cent in 2007.)

#265 Engineering graduate on 10.17.15 at 9:19 pm

242 Chris – here is the fine print.

“The CUDO data is based on counting the fraction of students entering engineering, who graduated from that university with any degree, within seven years. So it’s quite a bit more complicated than it looks at first glance. If some student entered engineering in 2002, failed several times and had to repeat a couple of years, switched programs and received a Bachelor of Arts in English in 2009, that would appear as a successful graduation in this CUDO data. When applicants ask “what is your failure rate”, I don’t think they have this type of scenario in mind!”

#266 Ralph Cramdown on 10.17.15 at 9:20 pm

#257 BS — “Pretty sad when the best thing you can say about someone’s competence is he will have advisors to tell him what to do.”

You just don’t get it, do you? Conrad Black says Harper has to resign. The Globe and Mail’s endorsement says he should resign right after the election EVEN IF HE WINS. The Harper endorsements from the papers that did endorse him are halfhearted and full of caveats. The media is full of how Harper blew it, and the votes aren’t even counted. In fact, the numbers are still close enough that with a bit of luck and a better get-out-the-vote hustle, the Conservatives could end up with the most seats… but Harper would STILL be finished, because without a majority, he’s cooked.

If you read Sun Tzu’s Art of War, what do you recognize?
– Trudeau let Harper underestimate him
– he let Harper choose the terrain (leadership, not policy) that was to Harper’s disadvantage
– he let Harper beat himself, over and over, in a long and bloody campaign on that terrain

The media are always pointing out campaign turning points. What was this one’s? THERE WASN’T ONE! Harper just slowly defeated himself by continually reminding voters what they hated about him. The Duffy trial, the patronizing advertising, avoidance of issues, invisible, muzzled Conservative candidates, fearmongering, petty niquab stuff, grovelling at the Fords’ feet. And all the while, the Conservatives had set expectations for Justin so low — with $millions of their own ad budget — that voters were constantly pleasantly surprised as he beat expectations.

You’ve been schooled, and it was done so smoothly that it’s going to take Conservative strategists six months to figure it out.

#267 Leo Trollstoy on 10.17.15 at 9:28 pm


My problem with Trudeau is the lack of life experience, not the lack of job experience.

The bouncing around between various vocations, working for only two years, dropping out of two university programs, etc. is all basically a symptom of a person who never had to face day-to-day realities because he always had the million dollar trust fund.

Pretty much this.

Which is why JT appeals to those with minimal life experience and people who vote with emotion.

#268 Ralph Cramdown on 10.17.15 at 9:30 pm

#260 45north — “French is a lot easier. I mean transportation in English is transportation in French. It’s not that hard. Spanish is about the same.”

https://www.youtube.com/watch?v=oGo96xzNSEs&feature=youtu.be&t=59

#269 Leo Trollstoy on 10.17.15 at 9:30 pm

My uninformed suggestion to the young women and men is to dedicate 2 evenings a week studying one of Korean, Japanese or Chinese. You will gain a competitive advantage.

My uninformed suggestion to the young women and men is to dedicate 2 evenings a week studying the language of money.

You will gain financial freedom.

And you can pay someone to translate Korean, Japanese or Chinese for you if you still care about that stuff.

#270 Leo Trollstoy on 10.17.15 at 9:34 pm

Worth repeating. Trudeau has a consulting team to advise. He’ll listen. Harper does not.

Worth repeating. Trudeau can’t make his own decisions and needs advisors and overseers. Similar to most children. Harper is more competent at making big boy decisions.

Fixed that for you.

#271 Tom on 10.17.15 at 9:34 pm

Nice case and analysis, Garth.
However, how do you know interest rates “won’t stay at 3%” or even go lower? How many times over the last 7 years we expected the rates to go up, just to see them go down instead? If anyone would know for certain that the rates would just be nudged by 0.1%, then he/she can become very rich by leveraged betting. My point is that no one really knows the direction of the rates.
Referring to Tom & Sarah’s case, if their house increases in dollar value just to keep up with the increase in the average national income, then probably it will be more than double by the time they retire.

#272 Leo Trollstoy on 10.17.15 at 9:37 pm

#242 The Other Chris on 10.17.15 at 7:17 pm

Kinda makes sense when you think about it. Humanities are so subjective. Just like my ‘performance art’ mark in high school.

#273 Bottoms_Up on 10.17.15 at 10:03 pm

#258 Smoking Man on 10.17.15 at 8:48 pm
———————————–
Dude, don’t be so hard on yourself. Coincidence is not divine intervention.

Worth contemplatimg thougj is how many Canaduans will be watching Harper’s resignation speech late Monday night?

#274 Paul on 10.17.15 at 10:14 pm

272- Bottoms up
His demise will be our demise. But either way Freedom First and I will be fine!!!

#275 kommykim on 10.17.15 at 10:45 pm

RE:

#262 Smoking Man on 10.17.15 at 9:11 pm
Universe stuff, neutrinos, black holes, white holes, you heard that first here on GF.
Science will discover the white hole shorty.

Science already has:
https://en.wikipedia.org/wiki/White_hole

#276 Mark on 10.17.15 at 10:59 pm

“242 Chris – here is the fine print.

“The CUDO data is based on counting the fraction of students entering engineering, who graduated from that university with any degree, within seven years.

Makes sense. Of the first (and 2nd) year engineering flunkouts I know and still keep in touch with, most went on to complete university in some capacity. Nursing was popular amongst the females. Teaching (education) attracted many of the males, with the odd guy going into accounting.

The ones who didn’t complete university certainly faced an uphill struggle. But I don’t know a single engineering dropout/flunkout who disagreed with the decision of the faculty to exclude them from higher level studies. I think it came to a relief of most of them that they no longer were studying something outside of their immediate capability.

I’d almost have to say that employment-wise, the dropouts from engineering fared better than the engineering graduates. Who we know, according to the OSPE study, have quite a statistical improbability of finding engineering employment upon graduation.

Trollstoy, is doing what we know in the business as ‘data mining’, blindly trying to use a site like Google to conjure up support for a point of view which, upon closer examination of the evidence, simply cannot be supported. Not even reading the fine print of what he blindly cites. Which is unfortunate, but unfortunately not surprising coming from such an inferior intellect.

#277 Hotdogs from Heaven on 10.17.15 at 11:11 pm

Inflation at 5% will eat away at the discretionary budgets of enough people that it will make mortgage payments and housing costs much more difficult even if interest rates do not increase.

However rates in the bond markets WILL go up. They already are. Just look at the corporate bond market in the last 3 months. Investors are finally demanding yields more in line with risks of the debt. The same will occur for Canadian bank bonds and this send up fixed mortgage rates, no matter what the Bank of Canada does.

#278 OXI in GREECE !! on 10.17.15 at 11:28 pm

#1 bob Dog on 10.16.15 at 5:08 pm
Why is this not an election issue?

“Starting in 1974 the same Liberal government which nationalized our Bank of Canada (in 1938), slowly stopped using it… Now Canada’s national bank is responsible for only 2% of the money in circulation Today. Since 1974 Canada has borrowed from the same banks as you and me, and a debt of just $18 billion in 1974 (accumulated, since confederation) has ballooned a debt of over $500 billion; 95% of which is compound interest.

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

Yup….its the biggest scam on the planet earth. But people are learning about it…..That is all I can say without reprimand probably

#279 meslippery on 10.17.15 at 11:50 pm

with gimmicks like the 1.85% mortgage dissed here a few days ago

Least they can do. credit card holders often pay 29.99%.

#280 meslippery on 10.17.15 at 11:59 pm

This my not be political correct but Amanda Lang is Hotter
then Garth.

Roger better not charge more for bloomberg.

#281 Bottoms_Up on 10.18.15 at 12:15 am

So thinking about the number of votes cast and who actually decides the outcome of the election. We will always have a base of individuals that never change their vote despite the party’s fallicies. The remaining number boils down to roughly 1-2 million people that decide the outcome of the election. That is both inspirational and frightening.

#282 Mark on 10.18.15 at 12:18 am

“However, how do you know interest rates “won’t stay at 3%” or even go lower? How many times over the last 7 years we expected the rates to go up, just to see them go down instead? If anyone would know for certain that the rates would just be nudged by 0.1%, then he/she can become very rich by leveraged betting. My point is that no one really knows the direction of the rates.”

True. But in a low rate environment, the probabilities favour the eventual appearance of a higher rate environment. Additionally, retail mortgage borrowers don’t borrow at the risk-free rate, they borrow at a rate which incorporates a spread for credit risk. Credit risk, as I’ve argued in many posts, is likely to become quite significant in the falling house price environment on account of diminished creditworthiness of borrowers. The effect of higher risk premia for residential RE loans may very well, at least for the next number of years, be substantially greater than any policy action undertaken by the central banks.

Effectively, as houses continue to pile up unsold, and as house prices continue to fall, lenders will be hard pressed to offer their best possible rates to borrowers who propose to buy them.


Referring to Tom & Sarah’s case, if their house increases in dollar value just to keep up with the increase in the average national income, then probably it will be more than double by the time they retire.”

But is an elevated multiple (P/E, P/Rent, P/median income) guaranteed at the time of their retirement?

If you look at P/E, P/Rent, P/median income relative to historic metrics and include some overshoot to the downside, Canadian housing can easily fall 50-70%. Now, incomes probably will grow over time, but it can take literally decades for incomes to grow enough to cover up such a decline. Meanwhile, if vigorous wage inflation does appear, higher interest rates are quite likely (as interest rates usually rise in response to inflation, a de facto recognition of a weakening currency, and compensation to investors for loss of a currency’s purchasing power!) which will increase finance costs on a leveraged real estate purchase.

Bottom line is that buying an asset class that is at the high extremities of its historic valuation range, and dedicating an overwhelming chunk of one’s portfolio to such, is usually a recipe for financial ruin. Which is why Garth argues so strenuously for his so-called “Rule of 90”, and for portfolio balance generally.

#283 fishman on 10.18.15 at 12:36 am

Hey Washed Up Lawyer, you must have been raised out here on the wet coast . Few east of the Rockies really deeply believes that the 21st. century is the age of the Pacific. I’ve spent decades & hundreds of thousands educating, training & setting up the next generation. Don’t go telling the competition to learn Mandarin. Don’t educate the unbelievers. Not that they’d listen. Gotta love lawyer confidentiality when hot money is a flowing. Mums the word. Better than ever here in Van west. I never doubted. Now we have a critical mass of Persians, Arabs, South Americans, Vietnamese, Punjabi nouveau rich along with the usual suspects. The beachead is established: the tsunami will wash right over to the Atlantic.

#284 nonplused on 10.18.15 at 1:15 am

Oh boy.

So the stupid idea of the $1,000,000,000,000 platinum coin has come up again as a way to fix the debt problem, just make trillion dollar coins! This is so stupid.

Sure it seems like a good idea so for every trillion dollar coin minted the government is up a trillion dollars! Yay! But it doesn’t work that way. Here are some reasons:

First coins are merely slugs of metal and thus commodities. They are priced in the market based on what the metal is worth. So that’s why a 1 ounce gold coin is stamped $50 but has been worth over $1000 for years now. The stamp means nothing.

Second I should say the “stamped price” means nothing. The fact it is stamped by the mint does mean something because it’s a guarantee that the coin is not fake, it is in fact gold. (Silver coins same but obviously a scale difference in value.) So a mint gold coin containing $1150USD in gold can sell for $1170USD. It’s called “seniorage”, although apparently I can’t spell that, and it is the amount the mint can charge in the market for making the coin and verifying the content of the coin.

But third, yes for years the mint and the government manipulated the price of gold and silver (mostly up). They would stamp $20 on $18 worth of gold and $1 on 80 cents worth of silver. That’s your seniorage, however it’s spelt. It’s what you pay for the minting and to verify you have an ounce of gold or silver (or 8/10 of an ounce in Canada). But does anyone really believe you can place a trillion dollars of seniorage on a $1200 platinum coin???

So forth, if they stamp a trillion dollar coin, one of 3 things happens: platinum goes to a trillion dollars an ounce (won’t happen), the dollar goes to such a low level that platinum is a trillion dollars an ounce your house is worth 100 trillion (also won’t happen), or people just ignore the stamp on the coin the same as they do with gold and silver (will happen).

The Federal Reserve has already addressed this issue and although I cannot recall the exact wording, it was along the lines of “platinum can be an asset, but it would be included on our books at market value”.

People who think you can just print a trillion dollar coin are idiots. Why use platinum? Why not use copper or zinc? Heck why not take a Sharpie to a wooden nickel? Why make one or two? Or 18? Why not give everyone a trillion dollar coin? Oh sure they would have to pay north of $1200 to cover the platinum and the minting, but you get a trillion dollars! I’d buy that coin!

#285 Great Canadian Bubble Co. on 10.18.15 at 1:43 am

I think it is safe to say it is ‘all steam ahead’ here in Canada, iceberg or no iceberg. No one wants to deny the petulant child their ice cream.

Boomers really did struggle to set those boundaries.

Have another gold star Canada …

#286 The American on 10.18.15 at 7:13 am

At #224: Pete, quick!! Somebody called a whaaaaaaambulance! Shit, that’s the most ridiculous drivel I know I’ll read all week. I guess spoken like a true canadian, your excuses why you cannot succeed or be innovative. Blame the Americans as usual… Sure, that’s the ticket. Using your clear lack of logic, if that were the case then why are other shitty Canadian companies, not reliant on Americans, “permitted” to continue to operate? Face it, pal, those companies you mentioned didn’t know how to launch to market or keep up with the trends. I.e., Blackberry was warned for nearly a goddamn decade it was becoming a dinosaur, but the company refused to move with the times. Of course, nobody was surprised as the company was canadian.

#287 Daisy Mae on 10.18.15 at 9:21 am

#219: “Now it’s our turn and they have run out of ammo to stop the inevitable.”

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

And yet, Harper is still touting his stewardship re the so-called healthy economy. The prime minister is truly delusional. If he manages to sway the wealthy 1% with the increased TFSA limits, those votes still just represent 1%. The other 99% see no advantage to this increase — we’re not contributing and when we do, we don’t know how.

#288 rainclouds on 10.18.15 at 9:34 am

#285 American
You seem angry dude……….

Here is a first world problem in Vansterdam:

Sister in law has a teardown house on the Cambie Corridor, offered 3.5 mil. Paid for. Development started around them, noisy, dusty. Wants to move ” cant even get a decent townhouse on the west side”

“How about selling, investing, and renting” says wife? ” Not an option apparently……. 210k @ 6%. She could rent 3 townhouses and still bank 100k

Common sense………….not common

#289 [email protected] on 10.18.15 at 9:46 am

#275 Mark on 10.17.15 at 10:59 pm

Reading comprehension.

“The 2012 report (on page 40) shows that 71% of students that started in Engineering in 2005 had graduated by 2012, 6% had received degrees in other faculties at Waterloo, 6% were still working on their degree, and 17% had left Waterloo (destination unknown). So the majority of the students that start in Engineering will finish.

Stop clinging to JT’s nuts claiming that 2/3 of engineers failed out back in the day.

You’re such an unsuccessful fraud.

#290 Daisy Mae on 10.18.15 at 9:49 am

#257: “Pretty sad when the best thing you can say about someone’s competence is he will have advisors to tell him what to do. We may as well put a trained chimp in there to push the button on the desk.”

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

Not sad, at all. There’s nothing wrong with consultation. Problem is, Harper is so arrogant and dictatorial he won’t listen to his advisors. If he even has any. Maybe he’s fired them all…. LOL

#291 Daisy Mae on 10.18.15 at 9:52 am

#252: “Not really no critical thought just knocking other and giving no alternatives PAR…”

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

And you are?

#292 Humanities are so subjective on 10.18.15 at 9:59 am

271 Leo Trollstoy on 10.17.15 at 9:37 pm

#242 The Other Chris on 10.17.15 at 7:17 pm

Kinda makes sense when you think about it. Humanities are so subjective. Just like my ‘performance art’ mark in high school.

I can tell you with certainty that the only thing that connects you to art is your handle.

Based on your posts here, the complete lack of empathy is the most clear message that comes across, regardless of what you write about.

Art can’t choose you.

#293 Bytor the Snow Dog on 10.18.15 at 10:00 am

Hey Garth! Are you going to publically endorse anyone in this election?

#294 Blackberry on 10.18.15 at 10:06 am

285 The American

Agreed.

#295 Julia on 10.18.15 at 10:09 am

#278 me slippery
“Least they can do. credit card holders often pay 29.99%.”

Credit card holder that pays 29.9% on a store credit card (bank credit cards are 19%) or any credit card interest for that matter is stupid.

#296 saskatoon on 10.18.15 at 10:17 am

#240 kommykim

theft is not compassion.

let’s be honest here:

you believe that initiating proxied violence against those who disagree is “helping”.

#297 Daisy Mae on 10.18.15 at 10:22 am

Just for you, Paul!

Compliments of a previous poster:

HARPER: “Most unprincipled, deceitful, hypocritical, vindictive, paranoid, fear-mongering prime minster in Canadian history….openness, no transparency, no accountability, no democracy, no integrity, no conscience, no apologies, no courage, no compassion, no clue, no class.”

Bye!

#298 Renter's Revenge! on 10.18.15 at 10:24 am

#283 nonplused

Nice post! The line, “Heck why not take a Sharpie to a wooden nickel?” was hilarious and really hit the point home!

As I understand it, the debt is not backed by physical objects, but by the future productive capacity of the country. So the concern is, how much future production are we promising to our lenders, and what are getting in return for it?

#299 Daisy Mae on 10.18.15 at 10:24 am

Should be…”no openness”

#300 Ralph Cramdown on 10.18.15 at 10:47 am

#283 nonplused

I don’t think anyone has suggested that the platinum coin is an objectively good idea. But is it a better idea than the US government defaulting on its debt because things have gone bad in the Monkeyhouse of Representatives?

The options suggested appear to be:
– default, stop paying the bills due for money already spent and promised
– the dumb platinum coin idea
– are we really out of cash? Did Treasury check the pockets of its other pants?
– maybe we could pay some bills but not others, and hope nobody notices?
– raise the debt ceiling

Of those, the platinum coin idea starts to look second best.

The problem, from a game theory perspective, is that the monkeys might think it gives Treasury an out, letting them effect a default by inaction, then Treasury will bail them out, the US won’t actually default, and they will have made their point without any damage being done. The two most unpredictable institutions on earth right now are North Korea under Kim Jong-un and the US Monkeyhouse of Representatives.

#301 Wild Roasted Nutz on 10.18.15 at 10:54 am

#289 [email protected] on 10.18.15 at 9:46 am

#275 Mark on 10.17.15 at 10:59 pm

Reading comprehension.

“The 2012 report (on page 40) shows that 71% of students that started in Engineering in 2005 had graduated by 2012, 6% had received degrees in other faculties at Waterloo, 6% were still working on their degree, and 17% had left Waterloo (destination unknown). So the majority of the students that start in Engineering will finish.

Stop clinging to JT’s nuts claiming that 2/3 of engineers failed out back in the day.

You’re such an unsuccessful fraud.
———————————————–
Totally correct numbers. Jeez Mark would ya just stop making stuff up with no data to back yer crazy claims.

#302 Gregor Samsa on 10.18.15 at 11:01 am

Relevant to this audience:
http://www.news1130.com/2015/10/17/vancouver-womans-letter-to-stephen-harper-goes-viral/

Dear Mr. Harper,

I live in BC with my husband and two little girls. I grew up in Calgary and have many friends and family members there. I’m white and in my early 40s. One of us is a stay at home parent, so we benefit 100% from the direct deposits in lieu of a National Childcare Program. We also benefit 100% from income splitting. And we can afford to take advantage of the increased allowance in our TFSAs.

In other words, we’re the picture of the family who benefits the most from your economic policies.

But we’re not voting Conservative on October 19th.

You see, you’ve misjudged us. We enjoy our standard of living, we work hard for it but it’s not the only thing that matters to us.

You assume we don’t care about our First Nations neighbours, or Canadians trying to bring their family members here from war torn countries. That we don’t care about less fortunate Canadians, our veterans, or scientists. You think we don’t mind that to save a few bucks and balance the books we axed the census, dumped decades of research from our libraries, cut funding to CBC, under-spent our budgets in important departments and closed coast guard stations. You figure we no longer want our lakes and rivers protected and that we don’t understand that climate change is a far greater risk to our way of life than Barbaric Cultural Practices.

You’ve underestimated us.

On October 19, we’re not voting for our bank balance. We’re voting for change because we want the caring Canada of our youth back. The Canada that supported our single mothers that gave us the opportunity to succeed in the first place.

Mary Cleaver

#303 Paul on 10.18.15 at 11:03 am

WOW, That was scary when I logged on your photo came up and you had Shaved your beard and your were wearing a cowboy hat. Then I realized I was at Garth Brooks site.
Oh the humanity!

#304 Care to tango on 10.18.15 at 11:06 am

#246 Smoking Man on 10.17.15 at 7:40 pm

This dude is at Senica every weekend, no one sees him come in or leave. Wondering what planet he’s from. How he teleport’s here?

Dancing by himself week after week.

http://dyslexicsmokingman.blogspot.ca/2015/10/dancing-man.html
———————————–
That was a rather random posting.

Being watched week after week.

Have a heart and help the fellow out with a tango partner.

#305 Janitor at the Ford Family-Harper Love-In on 10.18.15 at 11:08 am

Hiya Garth!

Just cleaning up the leftovers of donuts and crackpipes here from the awesome rally here last night. Gotta love these Etobicokeheads, all Ford and Harper lovers!

We’ve been picking up quite a few bobblehead dolls at the site, with your face on them plus lots of pins stuck in the leg and butt.

You want these, or should we just toss ’em?

#306 Paul on 10.18.15 at 11:08 am

#297 Daisy Mae on 10.18.15 at 10:22 am

Just for you, Paul!

Compliments of a previous poster:

HARPER: “Most unprincipled, deceitful, hypocritical, vindictive, paranoid, fear-mongering prime minster in Canadian history….openness, no transparency, no accountability, no democracy, no integrity, no conscience, no apologies, no courage, no compassion, no clue, no class.”
———————————————————-Like I thought just a lot of B,ing no solutions.
Well one more day and you won’t have even that!
Oh wait I am sure you will have some other axe to grind or B’s to bust. It’s like a blood donation it’s in you to give.

#307 Godth on 10.18.15 at 11:14 am

#263 Smoking Man on 10.17.15 at 9:11 pm

Invent or discover? It’s interesting theology.
http://www.amazon.com/gp/cdp/member-reviews/A1SELHGTVV0Y8D/ref=pdp_new_read_full_review_link?ie=UTF8&page=1&sort_by=MostRecentReview#R3JCIBNZ49Y3RV

#308 Herb on 10.18.15 at 11:16 am

“On October 19, we’re not voting for our bank balance.”

And that’s a fact, and would have been a good question for your polls, Garth.

#309 Paul on 10.18.15 at 11:19 am

#297 Daisy Mae on 10.18.15 at 10:22 am

Just for you, Paul!

Compliments of a previous poster:

HARPER: “Most unprincipled, deceitful, hypocritical, vindictive, paranoid, fear-mongering prime minster in Canadian history…openness, no transparency, no accountability, no democracy, no integrity, no conscience, no apologies, no courage, no compassion, no clue, no class.——–
———————————————————-
Compliments of a previous poster:
I guess it was, you could not have come up with that with out copy paste
And you still made this error.
#299 Should be…”no openness”

#310 Wealth Therapy on 10.18.15 at 11:20 am

A rather weird article… ah the struggles……

http://www.theguardian.com/us-news/2015/oct/17/wealth-therapy-tackles-woes-of-the-rich-its-really-isolating-to-have-lots-of-money

#311 Paul on 10.18.15 at 11:33 am

#302 Gregor Samsa on 10.18.15 at 11:01 am
————————————————————-
Simple fix take the money and donate it to charity?
Garth does not take his MP Pension

#312 maxx on 10.18.15 at 11:40 am

#64 Smoking Man on 10.16.15 at 8:20 pm

Good job Smoke….I’ve always found saving a joyful activity, but not quite s joyful as the long-term results! ;-)

#313 Setting the Record Straight on 10.18.15 at 11:47 am

@247
Doesn’t it depend on who your advisers are?

#314 kommykim on 10.18.15 at 11:50 am

RE:

#296 saskatoon on 10.18.15 at 10:17 am
#240 kommykim
theft is not compassion.
let’s be honest here:
you believe that initiating proxied violence against those who disagree is “helping”.

Did you watch the video about cops that I posted a few days ago for you?

#315 Ralph Cramdown on 10.18.15 at 12:11 pm

About underestimated politicians

If I had offered to wager back in 2006 that a black man would be next president of the US, I’d have gotten long odds. If I’d added that he’d have a Muslim sounding name, thy’d have gotten longer. If I’d added that, en route to the White House, he’d beat Hillary Clinton for the Democratic nomination, they’d have gotten astronomical.

But as the nominee, his opponents focused on his relative inexperience and his prior work as a mere “community organizer.” I understand ignoring or underestimating potential opponents before they’ve done spectacularly unlikely things, but what derangement causes people to keep their opponents in pigeonholes that they’ve clearly outgrown? If I’d offered to bet that a President could preside over the worst economy since the 1930s, with an unemployment rate still over 7% at the end of his term, and get re-elected… It’d be long odds again. But Obama did it. Underestimated again by his opponents.

Donald Trump entered the Republican nomination race late and with no political experience or endorsements. Within four months he was leading, and has not yet relinquished that lead. No serious person thinks he’ll win the nomination, even though his “ceiling,” supposedly 25%, was smashed and not retraced. Even though he keeps saying outrageous things and tipping sacred Republican cows. Consensus seems to be that the Republican party will do everything in its power to stop him. Personally, I think he’s the only one in the Republican field who would beat Hillary Clinton. Any other candidate and the presidential election won’t even be close. So let’s watch and see what the Republican party does, shall we? And we can have fun speculating on who his VP nominee would be. Mark Cuban? Marco Rubio?

#316 Sideshow Rob on 10.18.15 at 12:12 pm

Random thoughts… in my opinion Canada really needs several things. All of those things would come from a popped housing bubble. Average Canadians and especially young Canadians need hope. Hope that some day the dream of owning a home and not being a debt slave for life is actually possible. Hopefully whomever gets in power will recognize that this horrendous, gasbag housing bubble has to go. It’s arguably the biggest in the history of the world. If you let it pop in your first year there is a good chance that the damage will be somewhat corrected in 4 years. In time for the next election. We also have the advantage of a strong economy next door. That will help a lot. Canada needs 100k homes in the flyover parts and maybe 200k homes in Toronto and Vancouver. That would cure a lot of the economic dysfunction in this country. But it would also cause a boatload of pain. It’s going to happen anyways. In 1 year or 3. Better a controlled demolition that can be somewhat controlled than a complete disaster at the worst possible time. We need a hero. A political leader who will fall on his sword and do the right thing. Promise to save the bubble and then lie as of Tuesday. Let the gasbag go. You will have my respect.

#317 kommykim on 10.18.15 at 12:15 pm

RE:

#284 nonplused on 10.18.15 at 1:15 am
First coins are merely slugs of metal and thus commodities.

So the same goes for paper money then? Ok send me 1000 $500 bills and I’ll send you 2000 $5 bills. You’ll be twice as rich because you’ll have twice as much paper/plastic than you had before.

#318 For those about to flop... on 10.18.15 at 12:52 pm

Regarding the events of tomorrow.
It has become clear to all that Canada has tired of SH but I have a suspicion that it will not go the way of the polls with a Lib win.
Here’s my gut feeling…Canada has home ownership rates are around 70% and anyone who has done well via real estate and the cooking of the books to stave off recession after the GFC is more likely to subconsciously thank the Cons in some weird way .
The 30 % that rent …Millennials ,anyone who doesn’t want an anchor and such are more likely to have an axe to grind or are well enough off through their portfolios that they will vote for change for the sake of change.
Fresh face,socialism whatever tickles your fancy people are looking for something different but I have a funny feeling a lot of people want this current debt orgy to continue and will vote with their wallets as they say.

#319 Paul on 10.18.15 at 1:25 pm

#302 Gregor Samsa
Dear Mr. Harper,

I live in BC with my husband and two little girls. I grew up in Calgary and have many friends and family members there. I’m white and in my early 40s. One of us is a stay at home parent, so we benefit 100% from the direct deposits in lieu of a National Childcare Program. We also benefit 100% from income splitting. And we can afford to take advantage of the increased allowance in our TFSAs.

In other words, we’re the picture of the family who benefits the most from your economic policies.

But we’re not voting Conservative on October 19th.

You see, you’ve misjudged us. We enjoy our standard of living, we work hard for it but it’s not the only thing that matters to us.

You assume we don’t care about our First Nations neighbours, or Canadians trying to bring their family members here from war torn countries. That we don’t care about less fortunate Canadians, our veterans, or scientists. You think we don’t mind that to save a few bucks and balance the books we axed the census, dumped decades of research from our libraries, cut funding to CBC, under-spent our budgets in important departments and closed coast guard stations. You figure we no longer want our lakes and rivers protected and that we don’t understand that climate change is a far greater risk to our way of life than Barbaric Cultural Practices.

You’ve underestimated us.

On October 19, we’re not voting for our bank balance. We’re voting for change because we want the caring Canada of our youth back. The Canada that supported our single mothers that gave us the opportunity to succeed in the first place.
———————————————————-Just exactly do you want from the Government ie Tax payers. This women complains about all the benefits she receives and how ‘little’ is distributed to other folks and says she is a stay at home mom well good for you.
Maybe you should get a job pay some taxes to support the people you say are in such need. But no just knock Mr.Harper when he does not take enough from others for your conscience. Some workers pay 30 to 50 percent of every day they work in tax.

This is what is paid to a single Mom plus.

$1,487 for the mother and one child, plus $500 for
each additional child
Is it enough NO but there needs to be some kind of balance

#320 where have all the good times gone? on 10.18.15 at 1:39 pm

@#22 Resumé of Justin Trudeau on 10.16.15 at 5:59 pm
___

Have you read Makenzie King‘s bio? Rockefeller Foundation employee.

#321 fancy_pants on 10.18.15 at 2:04 pm

http://www.torontosun.com/2015/10/15/the-truth-about-trudeau

#322 Daisy Mae on 10.18.15 at 2:15 pm

#309: “And you still made this error.
#299 Should be…”no openness”

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

You’re correct, Paul — “no openness” it is!

#323 Rexx Rock on 10.18.15 at 2:20 pm

I think Canadians believe Justin Truedeau is like our version of JFK for Canada.I know it sounds ridiculous but so are Canadians mentality.God help us if he gets elected.

#324 Nora Lenderby on 10.18.15 at 2:46 pm

#280 meslippery on 10.17.15 at 11:59 pm
This my not be political correct but Amanda Lang is Hotter then Garth.

Not politically uncorrect either. Just your opinion.

Consider the planned audience for Fox News, for example. Then we could predict that a large number of the talking will be done by oldish crumpled white men and youngish women with long hair and inflated life preservers under their burkes. :-)

#325 BS on 10.18.15 at 3:55 pm

You just don’t get it, do you? Conrad Black says Harper has to resign. The Globe and Mail’s endorsement says he should resign right after the election EVEN IF HE WINS. The Harper endorsements from the papers that did endorse him are halfhearted and full of caveats.

Some of us have the intelligence to make out our decisions on voting. If you base your vote on Conrad Black or media endorsements then I feel bad for you.

Conrad Black just waited a few days prior to the election and then endorsed who was leading. The sheep are easily fooled.

#326 Bob dog on 10.19.15 at 2:09 am

Tommy is a true socialist. The father of our healthcare system.

https://en.m.wikipedia.org/wiki/New_Democratic_Party

#327 Milla on 10.19.15 at 11:30 am

I was a single mom professional immigrant 2000 raising one son. I found that Canada is very supportive for newcomers. Well now I have my 6 number annual income and a grown happy son. I do not understand what BC women is complaining about. I guess she is not busy enough and all her job is to listen to lazy losers. Success coming after very hard efforts. Whining does not help. I voted for NDP in Alberta (we had our reasons here). I will go for Conservative as they are the most reasonable and reliable party. At hard times for the whole world as now do not shift balance to unknown. Do not expect from liberals a miracle. Be realistic.

#328 Retired WI Boomer on 10.19.15 at 3:15 pm

#227 Washed Up Lawyer

I do believe you SPEAK three languages fluently, too.

English, Profanity, and Sarcasm….always lead with your strengths.

#329 learningfromyou on 10.19.15 at 3:20 pm

Sutherland:

The point is that education doesn’t actually work by teaching you things. It actually works by giving you the impression that you’ve had a very good education, which gives you an insane sense of unwarranted self-confidence, which then makes you very, very successful in later life. …

Just imagine a place with people without real knowledge but with a lot self confidence fighting to climb the corporate ladder.