They did what?

1DOG FACE

It’s over a year now that Carmen was pleading with us. “We are renting a two-bedroom apartment in Mississauga – 30-year-old apartment with no washer, dryer or dish washer :). Paying $1300 per month,” she wrote, in a story I hear every twenty minutes, but seldom with a laundry twist.

“We are having hard time staying in apartment with two kids and no washer dryer. It takes three hours of  weekend time for using downstairs laundry. We thought of renting another place as my husband is following your advice. But when we started searching rental homes anywhere in GTA, house rent for three bedroom townhouse or condo is no less than $1,700, plus utilities.. which all together will come for $2,000 per month.”

So here’s the inevitable question seeded by a thousand realtors who prey on recent immigrants like Carmen and her hubby: “Would it not be ok to buy? We do not want high range home or want to put all savings in it. We want something around 420K with 5% down so that our monthly mortgage will come around $2,300 or so. Is it better to rent for $2,000 or buy anything with monthly mortgage as $2,300?”

Well, Carmen works for one of the Big Five banks in IT – “very stable job,” she told me. Husband, too. Combined income of $115,000, with liquid assets of just $29,000 and a car loan of $8,000. In other words, buying a $420,000 home with 5% down and closing costs would wipe them out, saddling them with monthly costs more than double their current rent. Carmen had no real concept of closing costs, CMHC insurance premium, condo fees, property tax, maintenance, utilities or the dismal state of a $400K property in most of the GTA. Moreover, with two kids, both parents have a higher responsibility than a new laundry room – saving and investing for the future.

Her case begged the question: should people with a net worth of less than a new Kia be able to buy a $420,000 house, with all its attendant costs, so damn easily? The real estate industry benefits, of course. The bankers and mortgage brokers profit. The government collects a pile of tax on closing. A realtor will pocket at least $20,000 in commission. But are we not leading people into elevated risk, given inflated house prices, variable-rate debt and a wonky economy? If it were not for the house porn we’re constantly fed by media and real estate boards, would rational people ever walk into this quagmire?

Well, I have two reports.

First, an update from Carmen. I heard from her yesterday. Guess what? Unemployed.

“It’s me Carmen from 2014. I am very happy that we listened to you and didn’t get into this housing crap (sorry). As I said, I work for second largest bank in information technology and yesterday they have given my lay off letter. No more job. I can’t imagine the amount of stress we would have gone through if we had bought that house. There are so many people who got their pink slips at the bank yesterday and many are worried because they bought a home. Now we at least can continue renting in our means and don’t have to worry about all those extra payments. Thank you again!!!”

Of course, being a caring guy, I did recommend Carmen get an all-in-one washer/dryer unit and squirrel it into her rental unit. No word on that. More evidence that this is a full-service blog, with 24-hour drain and snake capabilities.

Now, here’s something consequential if you happen to live in Ontario, the pinnacle of human achievement and gender-specific governance. Citizens pay a tax when they buy property. Lots of tax. On a $500,000 place the province collects $6,475. Seven years ago the city of Toronto, greedy little burg that it is, was granted the right to levy a second Land Transfer Tax. So buying that half-million-dollar place now requires that you pay $12,200 tax upon closing. (The average detached $1 million house has a tax bill of $32,200. Yikes.)

During the last Ontario election the Liberals made this commitment: “There is no plan to extend these powers (to levy the second tax) to municipalities. On behalf of home buyers, we want them to remain good on this election promise and that means Ontarians need to send a strong message that the government must rethink its plan to double the land transfer tax burden on home buyers.”

Well, screw that. Another example of saying one thing during an election, then doing the opposite when in power (especially with a majority). The Ontario Ministry of Municipal Affairs and Housing has caved to ongoing requests from cities like Mississauga, and will be granting every municipality the right to double the land transfer tax. As you might imagine, the realtors are apoplectic. They even have a poll showing 77% of people think this will hurt affordability (damn straight) or delay a house purchase.

So, imagine places like Brampton, Ottawa, London, Vaughan or K-W doubling this tax in a year or two, just as interest rates start to normalize and all that new debt and deficit-spending floods out of Ottawa. Buyers are stretched and stressed now. Prick, meet bubble.

You’re welcome, Carmen. And don’t forget the softener.

204 comments ↓

#1 Loonie Watcher on 10.27.15 at 3:46 pm

The Canadian buck is now down to .7538. Get ready for sub-.70 soon boys and girls!

#2 Ross Andrew on 10.27.15 at 4:03 pm

Garth you are a good person handing out all this free advice and you saved Carmen and her family a lot of stress and worry.

I resist the urge and the urging of my wife all the time to look for a new bigger (more expensive house) I believe that prices will stabilize and fall in more places soon and I await that while I save and enjoy life.

Thank you for all you do

#3 Lost in Space on 10.27.15 at 4:05 pm

The Best of Garth (damm I wish you had a search function)

Canadian Money Saver Magazine

Canadian Couch Potato

Canadian Money Forum

My Own Advisor

Frugal Woods

Garths’ Investment Posts

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

RRSP basics

How to structure RSP with SAHM

TFSA basics</a

RESP</a

Taxation</a

Taxation of an RRSP </a

More Taxation of an RRSP</a

Taxes and Income Spliting</a

#4 Nick on 10.27.15 at 4:11 pm

My advice, and I give it with all sincerity, get a job with the Feds. My sister is working her way up the management chain in social services and just returned from 1 year leave after having her first baby. With Liberals back in charge, the government will only grow. Canada needs good people to rebuild after over 10 years of Con suffocation. Oh, and keep renting.

#5 Bottoms_Up on 10.27.15 at 4:14 pm

Garth, you have helped a lot of people (myself included). It is great to hear stories like this.

Also, I was wondering why CMHC/realtors were predicting a robust Ontario market next year, sounds like they new these changes were coming and new people would jump into the market ahead of this double taxation taking effect! So, my guess is it all begins January 1st, 2017. Then, downward she goes.

#6 Holy Crap Wheres The Tylenol on 10.27.15 at 4:16 pm

So, imagine places like Brampton, Ottawa, London, Vaughan or K-W doubling this tax in a year or two, just as interest rates start to normalize and all that new debt and deficit-spending floods out of Ottawa. Buyers are stretched and stressed now. Prick, meet bubble.
_____________________________________________
Over 10% in the Bahamas Land Tax on the conveyance of real property is pricey.
We are heading to our new place in the Bahamas soon.
I just found out I can actually fast track a permanent residency visa as owners of residences valued at $1.5 million or more. Huh we receive a do not go to jail card and pass go for permanent residency permits. Nice of them now isn’t it. Something to consider for sure. I guess I paid for it?
Real estate in the Bahamas is insane$$$ I’m surprised more Realtors haven’t made the trip there.

#7 Broke Dick on 10.27.15 at 4:25 pm

DELETED

#8 Nick on 10.27.15 at 4:26 pm

In other news, Stephen Harper is moving back to Calgary, a city with a liberal mayor, a province with an NDP premier, and a PM named Trudeau. Life is ironic like that.

#9 Broke Dick on 10.27.15 at 4:28 pm

So, imagine places like Brampton, Ottawa, London, Vaughan or K-W doubling this tax in a year or two, just as interest rates start to normalize and all that new debt and deficit-spending floods out of Ottawa. Buyers are stretched and stressed now. Prick, meet bubble.
————————————————————–
Serious question for you here. Why didn’t prick meet bubble in the 416?

#10 Rational Optimist on 10.27.15 at 4:28 pm

As mentioned, the plan to extend this power to municipalities is as yet a rumour. And it’s a good thing, even if (maybe especially if) it pricks the bubble. Municipalities need more sources of revenue, given that they only get more costs downloaded to them.

I wonder how many municipalities would take advantage of this, and how long it would take them. Most people in Ontario don’t know the name of their city councillor, but it’s good odds that it’s the kind of golly-gee type who thinks lunches with the local realtors’ association mean he’s important. Since so few people vote municipally, the incumbency advantage is huge- as long as you don’t get too much attention. “New tax” isn’t something many of them would want to be seen championing.

I can’t imagine the Hamilton City Councillors advocating for a double land transfer tax. How’s that going to help them get re-elected? Their voters don’t know what the infrastructure deficit is, and they don’t care. They do know what taxes are, even ones they’re unlikely to pay. Plus- their home values!

London’s city council got a clean sweep last year, but is traditionally firmly in the pocket of people who plow farmers’ fields into tract homes. Probably this new crop is, too.

In short, we’ll see. But I’d be surprised if you see mid-sized cities availing themselves of the land transfer tax quickly.

#11 Keith on 10.27.15 at 4:31 pm

Well played with the title. Totally thought she’d bought a house…..

#12 Nick on 10.27.15 at 4:38 pm

@6 Holy Crap Wheres The Tylenol,
regarding Bahamas, the NSA records and intercepts every phone call and email on the island. I lived there for a time in the 80’s, the entire island is funded by the S. American drug trade. But I’m sure they’ll accept your money.

#13 Sheane Wallace on 10.27.15 at 4:46 pm

#1 Loonie Watcher

My target is 0.35-0.45 (give it 5-7 years)

#14 Freedom First on 10.27.15 at 4:47 pm

Way to go Carmen! Going against the herd requires discipline. Few have it. You are fortunate to also have a sane hubby. It only takes 1 nut job to screw everything up. You 2 will be ok.

Most unfortunate that Politicians lie. They don’t teach that in school.

The Ontario double double land transfer tax. Reminds me of when the GST came into being. People named it the Gouge and Screw Tax

The fact that so many Canadians are only one payday away from trouble, and so many can’t come up with a piddly $2,000 for an emergency, plus the heart attack/hernia inducing debt levels of Canadians, as well as Canada being in a recession does not bode well for millions of Canadians. After all, Carmen had a “safe” job.

#15 I'm stupid on 10.27.15 at 4:50 pm

Fixed rate mortgages are financed by the bond market. A homeowner renewing at a higher rate in the coming years will find it difficult to make the higher payments. Garth has said this many times and I agree, but wouldn’t the borrower just re-amortize their mortgage to keep the costs down?

I don’t know how this will end but when the bubble bursts it’s going to be interesting to watch everyone squirm.

#16 Stevladimir Harputin on 10.27.15 at 4:51 pm

“Prick, meet bubble.”

———————————————————-

You know, Turner, if you wish to call upon me, I’d appreciate you adding the required honorifics, Rt. Hon.

Maggot.

#17 mark on 10.27.15 at 4:56 pm

Greater fool found in Sydney. 6 months on and a 1 bedroom crackshack with external outhouse moves for 900k.

http://www.idiottax.net/2015/10/mortgage-regulation-australian-style.html

#18 r1200c on 10.27.15 at 5:04 pm

#3 Lost in Space

Thanks for the list – I forgot how much resources are here… wish there was a search tool though…

Let’s not forget the “reverse mortgage” gem:

http://www.greaterfool.ca/2011/11/25/the-leveler/

#19 TurnerNation on 10.27.15 at 5:05 pm

Bank job is worst place to be these days.

Best place is public sector and or sunshine list. Crown corp. Police in any capacity.
Indexed job and benefits for life.
You are welcome.

Taxpayer.

#20 Paul on 10.27.15 at 5:12 pm

Nice to see a “Carmen” on here once in awhile which I think is more representative of the truly vulnerable in Canada than these other “middle class” people you keep writing about who have 3 rental units in Van, own a house with $450K in equity and have another half mil in investments. Love the blog but have a hard time dealing with the poor impoverished people who just don’t know where to invest their hundreds of thousands of dollars.

#21 Den on 10.27.15 at 5:13 pm

Just wanted to share my thoughts on the housing market:

My wife and I make a combined 250k a year. We are in our early 30s and are very fortunate to earn the income we do. If we look at detached houses in the burbs near Toronto (Richmond Hill/Markham), they can easily sell for 1.2 million.

All I can say is: good luck to us all. I believe my family earn a very good living, but it simply does not make sense to throw this kind of money for a house.. Here’s the math:

For a 1.2 mill house:
Say 20% downpayment = 300k (how many people can save 300k?)
At 30 year amortization, 2.5% fixed, monthly payments = 3550
Closing costs? Another 40-50k (and the Liberals are implementing more land transfer taxes)

Say you finally saved 350k to pay for the downpayment + fees and avoid the CMHC insurance premium….

$3550 monthly, for 30 years, when you know interest rates are at rock bottom.. Are you sure you can keep your job for the next 30 years? Will your income decrease? What about going on trips/buying furnitures? What about having to replace your roof or car? How about rates going up? (A 1% rate increase will result in your monthly payment being $4000)

If you earn 250k per year, and still means you have to be concerned and stretch for the next 30 years to afford a house in the GTA, you know pricing is so far beyond the fundamentals it simply does not make sense for anyone to buy. (Somewhere it states that 80k is the avg GTA family income.. I think)

There is going to be a major correction unless we have perpetual rich immigrants/investors scooping up GTA real estate like kids in a candy store.

#22 saskatoon on 10.27.15 at 5:15 pm

carmen and dumbo got the stockholme syndrome.

they got it bad.

#23 HD on 10.27.15 at 5:21 pm

#104 Freedom First on 10.27.15 at 3:17 am

“And they can’t stand that I live my life differently. Goes against their programming. Controlled and
brainwashed. Looks painful.”

—————

Your delivery is often rather questionable in my opinion but I find myself agreeing with some of the points you bring forward.

Might be wrong on this but I think I remember you saying that you are a religious person or that you believe in god in some capacity.

Am I correct?

Best,

HD

#24 common sense on 10.27.15 at 5:28 pm

Carmen:

Save the planet and air dry your washing….;)

CDN Dollar in 2016 pool anyone? I’m at .55 as on June 1, 2016.

I am still shocked that Politicians say one thing and do another.

“Prick meet bubble”? Put on ear protection. It’s going to be sonic boom like…..then the errie calm until (in the words of The TALKING HEADS…shouts of “My god! What have I done”.

Same as it ever was, same as it ever was… Cheers!

#25 Olive on 10.27.15 at 5:34 pm

Greetings from the land of OXI. Tomorrow 28th of Oct we celebrate.
I can tell you all – from 1st hand experience that when the housing market goes down…. seriously down ……then even vultches don’t want to bite ’cause house prices are always going to go lower…..and banks don’t want to lend – they’ve repossessed so many houses – they sure don’t need to add yours to the list. Looks of admiration bestowed on ‘owners’ in the past are quickly replaced with knowing looks of pity.
Houses in any country are a liability-it is extremely irresponsible for any gov. to pretend they aren’t. Encouraging people with tenuous job security and low net worth to buy $500000 +houses with 5% down is ludicrous.

Just say OXI!

#26 kommykim on 10.27.15 at 5:57 pm

RE:

#18 r1200c on 10.27.15 at 5:04 pm
Thanks for the list – I forgot how much resources are here… wish there was a search tool though…

There is. Enter this into Google’s search window:

whatever site:http://www.greaterfool.ca

#27 Grumpy Canadian on 10.27.15 at 6:00 pm

I may not agree with this double taxation but at least I can choose to rent or buy. I’m far more concerned that my doctor is going to retire because he’s had enough screwing over by the Ontario Liberal government. They love to yap about the GROSS income of doctors while ignoring all of the costs of operating the practice. At the same time thinking it’s fine to give the friggin teachers more and more and their unions buckets of money to pay their negotiating costs. Isn’t that what union dues are for? Never mind I know really it’s just the slush fund that gets funneled back to the Liberal Party. Oh and the dickhead that runs the hospital (or at least that’s his job title) makes a cool half million a year but that’s no problem, after all he’s an administrator. The LIHNs that become more bloated daily with likewise overpaid administrators, many of which are nurses that are far more needed in the hospital.
Land transfer tax is the least of our problems in Ontario. The rest of the country that just elected Wynne’s young pal get ready it’s going to hurt and preparation h won’t help.
Out there in Alberta the NDP tabled the budget saying the same thing we’ve heard in every budget speech for about thirty years or more there “We have to diversify our economy” uh huh.
Sorry to read Carmen lost her job (afraid there is much more of that coming) but I’m glad she took your advise I remember reading the first post. Hope you find something soon.

#28 Grooby on 10.27.15 at 6:01 pm

“They even have a poll showing 77% of people think this will hurt affordability (damn straight) or delay a house purchase.”

Wow, a poll that supports what OREA is complaining about? Amazing, and incredibly fast. Must be one of those extra-accurate online polls.
But it doesn’t make logical sense.

An increase in property tax upon transfer will be absorbed by the seller, not the buyer. Trying to get revenue from home-owners is a much better alternative than subsidizing them, which has been the general approach.

It’s not property tax, but a transaction tax. It is 100% funded by the buyer. — Garth

#29 Freedom First on 10.27.15 at 6:12 pm

23 HD

Not religious. Believe in God? Yes. He thinks I’m perfect. But unfortunately? maybe fortunately? He gave me a conscience. I think it is why I am as kind as I am. And He also gave me free will, and a brain to use it.

Fortunately, I never developed an appetite for eating other people’s shit, either.

#30 Bill Gable on 10.27.15 at 6:14 pm

I am pleased that Carmen dodged a large bullet, but at the same time, I am sorry she got the nine of hearts, at work.
It must be very satisfying for our bearded host, when he hears that he saved a Family from Financial calamity, with his calm, sage advice.

Well done, sir.

#31 Qwer on 10.27.15 at 6:18 pm

I say Garth should now lead the conservative party. Who seconds it ?

#32 Yikes on 10.27.15 at 6:18 pm

Garth, please delete comment #7. It’s hateful and offensive.
Thank you.

Done. Sorry, I missed that. The poster should apologize. — Garth

#33 Arfmooocat on 10.27.15 at 6:28 pm

Could Oil Prices Hit $20 a Barrel?

http://finance.yahoo.com/video/could-oil-prices-hit-20-205736128.html

#34 Sol Orwell on 10.27.15 at 6:29 pm

> or delay a house purchase.

Uhh so wouldn’t you be pro-taxation then?

#35 Freedom First on 10.27.15 at 6:30 pm

#25 Olive

…..then even vultches don’t want to bite….

……………………………………………

Olive, you are wrong. That is exactly when I have bought. It is also the same time that investors/companies are buying up 5, 10, 100, or more properties at a time. At those times, this information is in the msm. However, the majority have already been screwed over, and the few, as always, buy low. This is never different throughout history. And, people hate the rich. That never changes either. Rich people, who paved their own way, are rich because they know how to get rich. And for me, a person is not rich if they are not happy, enjoying their lives, and helping others. JMHO

#36 JO on 10.27.15 at 6:30 pm

All signs continue to point that we are in the terminal stage of the inevitable debt/bond market catastrophe. It is always how neoliberal economies progress and reset.
Junk non productive debt inflated GDP, asset prices and tax revenues far in excess of the economy’s natural ability to increase income via investment, productivity and the long term trend lines in credit growth.
Those who bought their educations, homes etc first we’re lucky but as the cycle progresses the debt based Ponzi scheme exhausts itself with the YOY growth rate in credit trending steadily lower and each new unit of credit “generating” and smaller unit of GDP (income).
Governments spend at rates even higher than the inflated nominal GDP being generated by the debt (mispriced debt to boot) bubble
The economy is steadily loaded up with non productive debt. The change in the rate of growth in credit becomes a major driver of GDP.
The game turns into doing everything possible to subsidize credit and housing so that the fake prosperity and phantom asset prices continue to fool the new debt slaves required to keep the illusion going and feeding the kleptocracy with ill gotten gains
Now that rates are as low as they can go looking out 5-10 years, the credit growth rate has slowed down to a near stall and hence we see headlines about technical recessions and a national housing market that has stalled out
I am afraid the next 5-10 yrs will see explosive rises in taxes and loss of freedoms as the massively indebted governments steal as much as possible to keep creditors and other cronies of th state happy
The final hours of the crisis will see many bonds including sovereign debt defaulted in various ways.
By 2020, expect to see houses down by 30% or more, property taxes and other housing costs up 30-40% and unemployment likely exceeding 15%
I hope I am wrong and look for differing opinions to question my outlook, but historic debt bubbles usually end with historic busts
Despite this we will move on. Hopefully we create a much better economy that creates real growth and not just artificial growth that results from unproductive debt that merely fools citizens into thinking they are getting rich when in fact they are being taxed very heavily.
JO

#37 Arfmooocat on 10.27.15 at 6:31 pm

New Shale Gas Boom Could Be on the Way

http://blogs.wsj.com/moneybeat/2015/10/27/new-shale-gas-boom-could-be-on-the-way/?mod=yahoo_hs

#38 Interstellar Old Yeller on 10.27.15 at 6:33 pm

Yeah, Carmen! Way to recognize and take good advice. Hope you land on your feet with the employment situation.

#39 Trojan House on 10.27.15 at 6:34 pm

#10 Rational Optimist

“I wonder how many municipalities would take advantage of this, and how long it would take them.”

All of them and I give them about a minute after the law is passed to implement it.

#40 virus on 10.27.15 at 6:39 pm

Garth,
Really??? thats the worst advice ever!
Who in their right mind advices someone to buy SOFTENER?? Softeners are not good for clothes especially for kids clothing they are known to cause rashes.

But I agree with all your other advice!

#41 Paul on 10.27.15 at 6:45 pm

Get off the pity pot !
https://www.facebook.com/disturbreality/videos/1140232616020814/?fref=nf

#42 not 1st on 10.27.15 at 6:47 pm

I sold out all my tfsa positions and invested it all in my incorporated business. Now justin and company can’t mess around with me any more. They won’t dare change the corporations act either cause the 1% will eat them for lunch.

#43 Old stock Canadian on 10.27.15 at 6:51 pm

#21 Den
how to deal with a $4000 mortgage a month with any income. Do you know something called cage houses, If you change your house into cage renting you do not need job.
http://www.dailymail.co.uk/news/article-2084971/Hong-Kongs-cage-homes-Tens-thousands-living-6ft-2ft-rabbit-hutches.html
Cage dogs of Hong Kong: The tragedy of tens of thousands living in 6ft by 2ft rabbit hutches – in a city with more Louis Vuitton shops than Paris
By DAMIEN GAYLE

#44 Rexx Rock on 10.27.15 at 6:51 pm

When cities,provinces and countries go broke,you the taxpayer will pay more each year.Wait until the big fines and jail time come for small tax evasion.

#45 Gulf Breeze on 10.27.15 at 7:18 pm

Holy Crap Where’s the Tylenol,

I cruised the Caribbean for 4 months, in 2011. You couldn’t pay me enough money to live there, now.

We weren’t staying in resorts, but anchored out and swimming or dingying to shore and mixing with townspeople. Super lovely people, for the most part, and the poverty, though evident, wasn’t grinding….yet. But it is becoming so and crime is picking up. The Bahamas are particularly nasty now, I read recently.

We walked the side streets of Dominica, at night, in2011 — pot being the drug of choice, I wasn’t too worried. But now?? Don’t think I would do it.

In St. Vincent our boat was boarded at night by thieves who stole a few things. Luckily, we slept through it or we could have lost our lives. We were also pursued by a machete wielding angry guy, over some misunderstanding, near the Tobago Keys.

He was smoking mad and if he had boarded our cat before we were able to straighten things out, he surely would have been violent.

Moral of the story? It’s just not the way the brochures portray it. Life in the Caribbean is really hard for the citizens and, there is a lot of understandable resentment, that many of them carry.

Don’t go to the Bahamas, to live. You will end up feeling cloistered in areas that are safe for foreigners, or putting yourself at risk, if you venture outside of those zones.

It doesn’t matter if it’s a sweet deal, on paper. The reality is different.

#46 Oakville Owner on 10.27.15 at 7:21 pm

Locked in mortgage today for next five years at 2.54%! Plan to have the balance paid off in the next 5-8yrs. Come on inflation/higher rates! My investments and I are ready and waiting for you!!

#47 TCContrarian on 10.27.15 at 7:24 pm

#35 Freedom 1st

“Olive, you are wrong. That is exactly when I have bought. It is also the same time that investors/companies are buying up 5, 10, 100, or more properties at a time. At those times, this information is in the msm. However, the majority have already been screwed over, and the few, as always, buy low. This is never different throughout history. And, people hate the rich. That never changes either. Rich people, who paved their own way, are rich because they know how to get rich. And for me, a person is not rich if they are not happy, enjoying their lives, and helping others. JMHO”
*********************************************

Liking your style! Blunt, but fair and straight to the point.
However, most do not like to be ‘helped’. I sold my place a month ago (YVR), and when I share my ‘reasons’ (ie. selling at x2 fair value IS reducing risk), they look at me like I’m some kind of crazy idiot.
Likewise with many ‘contrarian’ approaches – to food, to exercise, health, etc.

So, i share less nowadays – my time is valuable too!

You’re so right. When everyone thinks RE is hopeless as an investment, that will be the time to buy, buy, buy…

I think by 2020, give or take…

#48 MSM-Free Zone on 10.27.15 at 7:27 pm

“….Well, Carmen works for one of the Big Five banks in IT – “very stable job,” she told me. Husband, too……”
_________________________

That was their first mistake. Job security in IT at a Big Five is only stable when the banks are making ‘uber’-profits.

‘record’ profits? Not so much….

Just ask Gordon Nixon, former RBC CEO:

http://www.cbc.ca/news/canada/british-columbia/rbc-replaces-canadian-staff-with-foreign-workers-1.1315008

#49 Ralph Cramdown on 10.27.15 at 7:30 pm

#3 Lost in Space — “The Best of Garth (damm I wish you had a search function)”

Just use Google. Allow me to demonstrate:

http://lmgtfy.com/?q=site%3Agreaterfool.ca+%22thirsty+underwear%22

#50 Investor on 10.27.15 at 7:33 pm

At last something that will cool the house buying fest.

Great move from the government. No need to raise rates 0.5% (small impact) when you can ask a pile more money up front. That cash, you must have it in your pocket. Can’t borrow it and spread it over 30 years.

#51 The Other Chris on 10.27.15 at 7:35 pm

@#43 Old stock Canadian on 10.27.15 at 6:51pm

Thanks for that link. I have no doubt that something like that is coming to Vancouver soon. Maybe not “cage houses” but the current micro-condo trend could well turn to nano-condos or even pico-condos. 10 square feet, communal bathroom.

#52 Sam the Sham on 10.27.15 at 7:38 pm

“Is it better to rent for $2,000 or buy anything with monthly mortgage as $2,300?”

Carmen (and others like her) are so fortunate when they loose their job that they only have to pay $2000 instead of $2300 a month. Or maybe they suspend rent payments when you loose your job these days… OK, I’m being sarcastic.
For the average person who is a mortgage holder or a renter , if you loose your job, you are pooched big time. Rent are sky high in the GTA and it’s only going to get worse…a lot worse!

#53 Ralph Cramdown on 10.27.15 at 7:48 pm

I don’t think “we have no plans” qualifies as a campaign promise.

Although Canadians don’t seem to be as bad as Italians and Greeks when it comes to tax avoidance and outright evasion, we’ve got a thoroughly corroded sense of civic responsibility. We don’t want fewer government services, but we do want lower taxes and taxes on somebody else instead of us. The last few weeks, this blog has become a cesspit of pissing and moaning about tax breaks lost.

So we get the taxes we deserve. Municipalities don’t need “new revenue tools” like the LTT to raise revenue, they just need to raise their mill rates until property taxes cover expenditures. But citizens would be outraged — OUTRAGED! — if they had to pay for the services they’ve come to expect. So we get developer levies, land transfer taxes, car registration fees, user fees, higher transit fares and whatnot. Higher levels of government give us lotteries, endless hospital lotteries, sin taxes, registration and licensing fees, sales tax on used cars, health levies, and they outsource various bits of governance to self-regulatory organizations, which charge their members fees to deal leniently with them.

From a purely selfish perspective, I’m as happy as anyone else that my general taxes are lower because others pay these somewhat voluntary (in that they can be avoided by transacting less) levies. But it’s crappy economic policy. At least the land transfer tax falls disproportionately on realtors!

#54 omg the original on 10.27.15 at 7:49 pm

BC Land Transfer Tax

Now somebody may remember better than me.

But my recollection is the BC Land Transfer Tax was introduced in the 1980s to curb rampant speculation on property.

The idea was that it would reduce the profitability of flipping a house.

Originally it was to apply to only high end homes, but over the years it has been extended to pretty much anything shy of a chicken coop.

I think every opposition party has promised to get rid of it until they get into power.

Land transfer taxes are here to stay and will likely be extended to muni’s as the feds and provinces offload more expenditures.

After all if you are rich enough to afford $600 to $800k for a starter in Victoria you should be able to cough up a $10k to help fund teacher pensions.

#55 crossbordershopper on 10.27.15 at 7:51 pm

People in hamilton only make about 15 bucks an hour. ther are some people with good jobs but as they get fired the new jobs will be replaced at 15 bucks.
we are entering a weird world, where some people live in high priced homes and are paycheque to paycheque and others rent, and rent will deteriorate.
let me explain. a friend owns a 48 unit building, in hamilton, over the last few years the long term tenants have either moved up to home ownership, because with low down and low rates they could trade up and build equity.
who has replaced them, totally transiant, no lease month to month people, this is the new realty, people with no job security as Carmen knows. no one commits to anything, no job security, no ownership committment.
so if you dont work for the goverment, you are told by the goverment how to live, which in hamilton is not very good. pay day loans, massage parlours, etc. and wait till the stelco pensions stop next year. then the hurting really starts.
hamilton is an important city, sure its only 1.4% but if you ad the surrounding area its 2% of canada pop. and it has been left to die.

#56 Leo Trollstoy on 10.27.15 at 7:52 pm

#40 virus on 10.27.15 at 6:39 pm

I agree.

Spot on.

#57 omg the original on 10.27.15 at 7:53 pm

JO on 10.27.15 at 6:30 pm
All signs continue to point that we are in the terminal stage of the inevitable debt/bond market catastrophe.
——————-

Naw – they will just inflate the debt away over a period of 20 years.

Inflation is really the same as taxation but people do not notice it.

#58 Leo Trollstoy on 10.27.15 at 7:54 pm

#35 Freedom First on 10.27.15 at 6:30 pm

That’s the truth.

But as the saying goes, 99% of people “can’t handle the truth”

#59 Leo Trollstoy on 10.27.15 at 7:57 pm

With regards to the CAD, I’ve been bearish all the way down. But I don’t think that there’s much downside from here. We’re going to float around the $1.3 CAD per USD.

#60 Linda on 10.27.15 at 7:58 pm

Good luck Carmen & hubby. Now, life lessons: first, no job is ‘safe’, not even the much vaunted government ones. I can testify to seeing people tossed from those jobs as well, though I will concede it is far less frequent than (for instance) Oil & Gas jobs during the bust times. On the other hand, unionized government jobs do not get bonus pay (management, yes; union, no or if they do get ‘bonus’ pay it is usually no more than $200 which is of course subject to tax) whereas I’ve seen plenty of O&G employees during the good times get a hefty packet of extra bonus salary at least once per year. Said packet not uncommonly as much as 10% of full year of salary – lots of anecdotes of receiving $10,000; $20,000; $30,000 plus.

Second, are there any places in the Toronto area that would give a family of four the amenities they are looking for for $420,000? Given the properties & prices this blog has been mentioning, $420,000 might buy a tiny condo but certainly not a house, not even in the outer limits of the GTA. Not even a roach infested firetrap with serious structural deficiencies next to a well known crack den/outlaw hangout. In fact, was not one such place mentioned in an earlier blog where the actual sale price was in the $700,000 range? There would have to be an across the board 40% price drop before Carmen & company could get a home within their outer limit price range at that rate. I’d say the $1,300 or even the $1,700 per month rental is the better deal, especially with the pink slip.

#61 very stable? on 10.27.15 at 8:00 pm

There is no such thing as “a very stable job” in private industry, even a ‘Big Five Bank’s IT’ job is not safe.
Carmen needs to wake up. The Big Fives have been getting rid of IT employees regularly since last 5 years.
I work in IT industry and have lots of friends and past coworkers who worked for Big Fives in IT. That is how I know this.

#62 Smartalox on 10.27.15 at 8:00 pm

I’m waiting for the CRA crackdown on ‘small corporations’, stuff like Personal Real Estate Corporations (P.R.E.C) that allow real estate practitioners to deduct expenses for everything from auto leases, to cell phones to personal grooming, as a means of reducing taxes.

There’s a lot of foregone revenue to be had, I think.

Realtors live or die on commission, have zero job security and must upfront totally legitimate and legal business expenses. ‘Personal grooming’? That revealed your true nature. — Garth

#63 Musty Basement Dweller on 10.27.15 at 8:14 pm

The laundromat is the best way to do laundry. It’s even possible to find a clean one. Three loads fini in one hour.

This is not a laundry blog. — Garth

#64 Tony on 10.27.15 at 8:23 pm

I was watching BNN today around 11:40am and heard that big New York syndicates are shorting the financials in Canada. A bet against housing and credit liquidity.

#65 Ret on 10.27.15 at 8:23 pm

Give more taxation powers to the clowns on Hamilton council? You have got to be kidding. Let the city go broke like Stelco did.

I get virtually nothing for the $4,000 a year that I send them now, so what would really change?

I might feel more sympathetic if I saw even the most minimal effort to control expenses or to get some kind of value for dollar, but that will never happen in this town. It is too easy for politicians to just level more taxes.

#66 Musty Basement Dweller on 10.27.15 at 8:24 pm

I don’t think the house hornies will think far enough ahead to worry about higher land transfer taxes when buying a place . It didn’t kill the Toronto market.

#67 Ralph Cramdown on 10.27.15 at 8:26 pm

It’s not property tax, but a transaction tax. It is 100% funded by the buyer. — Garth

Can’t pay, won’t pay. In any market segment where a lot of the buyers are price sensitive, this is going to lower prices a bit. It’s realtor propaganda that prices are perfectly elastic at the margin and any tax or fee will just be paid by the buyer with the infinite chequebook.

If realtors had any brains they’d bow to the inevitable, and lobby for the LTT to be rolled into the mortgage like CMHC fees can be. Luckily for us, they don’t.

#68 Musty Basement Dweller on 10.27.15 at 8:32 pm

Poor Stephen Harper. He’s moving back to Calgary at the same time they announced plans for a $6.1 billion deficit. Poor guys getting it from all sides.

#69 Love my Kia on 10.27.15 at 8:32 pm

I absolutely LOVE your real life scenarios lately Garth. You finally hit a nerve with most people, now we are talking about people with realistic incomes and job prospects.

I don’t regret building my own home seven years’ back; if I ever lost my job I had the basement configured for privacy to serve as an additional suite if I needed the income due to layoff, but fortunately do not. I even splurged and had an attached garage put on to safely store the KIA Sorento. My home is mortgage free, and has also gone up 100 g in value in that time (I don’t know why).

I don’t live in the costly GTA as much as I would like to, but my dollar does stretch farther here in Thunder Bay and my income is in the $80,000 range. I live less than 5 mins from the airport and a 1 hour and a half flight to downtown Toronto, which is faster than for those living in the big smoke driving with the gridlock.

I truly feel sorry for those living in the GTA, so my advice to Carmen would be to move to somewhere much more affordable although more commuting distance to and from work would be required, ie: Niagara. I spent a few weeks in Thorold a month back with a friend who commutes daily from there to Georgetown for work. Its not the most ideal of circumstances, but it saves them from getting ripped off on real estate. The horticulture and vineyards there are also spectacular so a great living environment to boot.

#70 Rational Optimist on 10.27.15 at 8:42 pm

39 Trojan House on 10.27.15 at 6:34 pm

‘“I wonder how many municipalities would take advantage of this, and how long it would take them.”

All of them and I give them about a minute after the law is passed to implement it.’

If you live in a city where the politicians act this decisively, and staff implement their direction so quickly, lucky you. The morons people (mostly in other wards) elect in my city will talk about “studying” this “interesting option” unless of course they say “duhhh, we’s over-taxed as it is.”

#71 Smoking Man on 10.27.15 at 8:47 pm

#59 Leo Trollstoy on 10.27.15 at 7:57 pm
With regards to the CAD, I’ve been bearish all the way down. But I don’t think that there’s much downside from here. We’re going to float around the $1.3 CAD per USD
……..

You sure about that.

On TV I saw Kathleen Wynee with Justina today. Arm and Arm salivating and doing the happy dance.

Ready to spend like the good mad people they both are. Im thinking USDCAD at 1.4 maybe 1.5 by Summer.

#72 Ronaldo on 10.27.15 at 8:58 pm

#169 Mixed bag – from previous post

”It should be expected that the planet’s temps will fluctuate and go through cycles. Some species will not adapt and die. Go tax the volcano at fault.”

It seems that some scientists believe that life on this earth could not exist without volcanoes.

https://www.aucklandmuseum.com/whats-on/exhibitions/volcanoes/volcanic-forces/whats-good-about-volcanoes

#73 Freedom First on 10.27.15 at 9:05 pm

#47 TCContrarian

Thanks!

Yes. I am a private man with all my doings. Food, exercise, finances, the list becomes longer the longer one practices living in a way that makes living pure joy.

Yes. Can’t help someone who does not want it, but the ones who like what they see in somebody, and ask for help, then giving and seeing the positive results is as good as anything I have ever experienced. And Garth experiences it every day. I know he makes a good living, but Garth’s past and present altruistic record speaks for itself. In fact, Garth helps so many people, that there is many many many thousands of people that would like him to just go away and shut up or die. He has more hate mail than all of Smokey’s posts combined. Keep in mind I am fan #33 of Smokey.

Also. To the people slamming Garth recently about his gold plated pension. He donates it all to charity. Fact.

#74 garth 2.0 on 10.27.15 at 9:09 pm

There are other people like our host…
http://www.hoyes.com/blog/why-canadians-should-worry-about-debt-not-delinqency/
For a lot of people pain will be huge!

#75 Washed Up Lawyer on 10.27.15 at 9:11 pm

Finally a reporter tells me what I have been looking for all afternoon, namely the projected price of oil and natural gas that the Ab. Gov’t is using for their budget.

Claudia Cattaneo in the FP:

“West Texas Intermediate oil prices are forecast to average US$50 a barrel this fiscal year, rising to US$61 a barrel in 2016/2017 and to US$68 a barrel in 2017/2018. Natural gas prices are expected to be just as weak, averaging $2.60 per gigajoule this fiscal year, $2.80 in 2016/2017 and $3.20 in 2017/2018.”

So both are expected to rise. Why?

Softens the deficit and the debt.

#76 eddy on 10.27.15 at 9:15 pm

It’s not property tax, but a transaction tax. It is 100% funded by the buyer. — Garth

and its not and never was a land transfer tax
after you pay it you get a twenty dollar charge on your tax bill for changing the ownership name- that’s the transfer fee! the rest is more like a luxury tax
the biggest scam since market value assessment

#77 Bread buttered on both sides on 10.27.15 at 9:16 pm

#69 Love my Kia on 10.27.15 at 8:32 pm
….. The horticulture and vineyards there are also spectacular so a great living environment to boot.”

You sure ’bout that? what about pesticides…..and who likes looking at barren grape vines all the time???

#78 tundra pete on 10.27.15 at 9:18 pm

Imagine all the “bank of mom and dad” out there in la la land. Makes my skin crawl thinking of perfectly good folk giving perfectly useless folk a down payment for a house or loot for whatever. How incapable can you make some folks. Especially young ones.

I recall fondly, my father telling me if I expected an inheritance I was out of luck and I recall fondly telling him I was proud of him taking care of mom and those two enjoying their retirement. Seemed straight forward to me. I will always look after myself and my wife on my own. I have had the same chat with my kids.

Ive sure heard some crazy stories of what parents have done to their offspring. Good lord. Are some folks going to be in a world of hurt when our systems of commerce normalize one day. Soon.

#79 Smoking Man on 10.27.15 at 9:18 pm

#66 Musty Basement Dweller on 10.27.15 at 8:24 pm
I don’t think the house hornies will think far enough ahead to worry about higher land transfer taxes when buying a place . It didn’t kill the Toronto market…..
..
In fact , Im betting Brampton will be the first. Then Mississauga. Kill The entire Insensitive of putting yourself through commuter hell.

What the hell, if the got to pay that twice might aswell move close to South Johnny’s and a 15 min hop on the train to Union Station.

Long on Long Branch Dogs.

#80 Paul on 10.27.15 at 9:19 pm

#67 Ralph Cramdown on 10.27.15 at 8:26 pm

It’s not property tax, but a transaction tax. It is 100% funded by the buyer. — Garth

Can’t pay, won’t pay. In any market segment where a lot of the buyers are price sensitive, this is going to lower prices a bit. It’s realtor propaganda that prices are perfectly elastic at the margin and any tax or fee will just be paid by the buyer with the infinite chequebook.

If realtors had any brains they’d bow to the inevitable, and lobby for the LTT to be rolled into the mortgage like CMHC fees can be. Luckily for us, they don’t.
———————————————————-
Maybe you don’t get it, most banks will give 5% cash back.The kids (loose term)borrow the down payment plus closing cost from the bank of Mom and give the cash back cheque (lol) to the parents after closing.
Or if it’s a tough one the seller will credit the buyer X dollars to make it happen.

#81 Smoking Man on 10.27.15 at 9:21 pm

Tylonal, tell me about the fall of Saigon.

What to know your story’s.. Where your were.

#82 Joe on 10.27.15 at 9:24 pm

Stop them from naming Calgary airport after Harper

http://www.thepetitionsite.com/en-gb/157/899/440/prevent-renaming-the-calgary-international-airport/

#83 Big Dipper on 10.27.15 at 9:28 pm

#29 Freedom First

“Not religious. Believe in God? Yes. He thinks I’m perfect. But unfortunately? maybe fortunately? He gave me a conscience. I think it is why I am as kind as I am. And He also gave me free will, and a brain to use it. ”

Rarely have I seen so much delusional crap in such a short paragraph.

I’ll pick “free will” – which is a fallacy. We don’t have any. Our behaviour, and life outcomes, are determined by our environment and our biology. Nothing else.

#84 eddy on 10.27.15 at 9:29 pm

the best question i ever heard is

”land transfer tax? what’s the percentage?’

ha ha ha

answer- its a higher form of mathematics that you cant understand
you need a government to explain it to you

#85 Patrick on 10.27.15 at 9:36 pm

I don’t understand why rates can’t stay at zero for a very long time. Hasn’t it been 20 years in Japan?

I’ve been reading Ben Bernanke’s blog (link @ bottom) and he believes that rates will stay low for a while, or that’s what I took away from it. I’ve seen interviews with Alan Greenspan saying they can’t stay at zero.

Doesn’t really matter. Even if house prices went USA-way I wouldn’t buy. With all my friends it has only led to a increased risk of rings, weddings, babies and bills.

Not exactly the babes, bikes and balanced portfolio I’m chasing now.

Garth, if rates do stay low long-term. Is there anything else that would prick the bubble?

http://www.brookings.edu/blogs/ben-bernanke/posts/2015/03/30-why-interest-rates-so-low

#86 Trojan House on 10.27.15 at 9:39 pm

#70 Rational Optimist

Really? A politician saying someone is over taxed? I’ve never heard of that before!

#87 james on 10.27.15 at 9:44 pm

This line had me dying of laughter:

‘Carmen works for one of the Big Five banks in IT – “very stable job,” she told me”

Banks are notorious for offshoring IT staff and using TFWs. Why? Because much of what they do (apart from information security perhaps) is very low skill.

I’ve probably given 350 interviews in the last 4 years on behalf of an elite silicon valley software firm. I have never seen someone with a background in bank IT getting hired at my company, and I’ve never ever heard of that at other companies such as Amazon. Security people (e.g., penetration testing) sometimes, because the banks are good at that stuff.

Much more impressive are people who work in high frequency trading and the like. They can have some pretty strong skillsets.

Bank IT in Canada? Honestly, you can be replaced easily. You don’t need a PhD from Berkeley in Cryptography to do that stuff. It’s all rather mundane.

People can suffer from some pretty big delusions about their marketplace value. Always watch the trends. Bank IT offshoring could be seen a mile away, much like increased US oil and gas exploration.

#88 Nora Lenderby on 10.27.15 at 9:51 pm

#82 Joe on 10.27.15 at 9:24 pm
Stop them from naming Calgary airport after Harper

Me? So it is a bit premature, perhaps. Let them wait until after he dies. After people have seen the long view.

On the subject I found this on Vice today:
A Eulogy for Prime Minister Stephen Harper

#89 Really Really Don't have a million on 10.27.15 at 9:57 pm

The suburbs are not immune. Prices jump high in GVRD.

http://www.theglobeandmail.com/life/home-and-garden/real-estate/rising-tide-of-vancouver-house-prices-lifting-values-throughout-region/article26957992/

#90 Mel on 10.27.15 at 10:00 pm

What do you think of this scenario as posted in this article.

http://www.theglobeandmail.com/globe-investor/here-are-some-potential-tfsa-avenues-the-liberals-could-take/article26967077/?cmpid=rss1&ref=yfp

#91 common sense on 10.27.15 at 10:05 pm

#85 Patrick

Save your soul and do not read Bernanke’s blog….He is beyond delusional.

Who do you think got us into this mess in the first place after his ole buddy Edward?

Uttering his name on this blog is just wrong.

#92 Ralph Cramdown on 10.27.15 at 10:08 pm

#83 Big Dipper — ‘I’ll pick “free will” – which is a fallacy. We don’t have any. Our behaviour, and life outcomes, are determined by our environment and our biology. Nothing else.’

It’s pretty funny that someone would actually type that into the little box at the bottom of the page and hit ‘submit.’ For the rest of my days here on this blog, I’m going to think “Skinner Box” every time I start typing a comment. Icanhazcheese?

#93 kommykim on 10.27.15 at 10:17 pm

RE:

This is not a laundry blog. — Garth

But we do air it out frequently around here.

#94 Bottoms_Up on 10.27.15 at 10:21 pm

#75 Washed Up Lawyer on 10.27.15 at 9:11 pm
———————————–
Those numbers sound exactly like the ones a Saudi Prince said 2 days ago….

#95 Smoking Man on 10.27.15 at 10:30 pm

#87 james on 10.27.15 at 9:44 pm
This line had me dying of laughter:

‘Carmen works for one of the Big Five banks in IT – “very stable job,” she told me”

Banks are notorious for offshoring IT staff and using TFWs. Why? Because much of what they do (apart from information security perhaps) is very low skill.

I’ve probably given 350 interviews in the last 4 years on behalf of an elite silicon valley software firm. I have never seen someone with a background in bank IT getting hired at my company, and I’ve never ever heard of that at other companies such as Amazon. Security people (e.g., penetration testing) sometimes, because the banks are good at that stuff.

Much more impressive are people who work in high frequency trading and the like. They can have some pretty strong skillsets.

Bank IT in Canada? Honestly, you can be replaced easily. You don’t need a PhD from Berkeley in Cryptography to do that stuff. It’s all rather mundane.

People can suffer from some pretty big delusions about their marketplace value. Always watch the trends. Bank IT offshoring could be seen a mile away, much like increased US oil and gas exploration.

Its a fact of life, get over it. If your a wage slave and you push a few buttons and and can map printers you’re a commodity.

If you are an amazing code smith , solve complex problems, have some reasonable social skills you’ll never be out of work. Just contract. Never sell your self short as an FTE.

Own the banks, especially the ones doing the most with TFW.

The jobs being replaced are shit anyway.

If you can code VBA, C#, SQL , understand Swaps and are fun to drink with.. You can have my old gig and it easaly put you in the 1%/..The problem.

Not many out their with those three mandatory criterias.

No way in China TFW will get that gig. Impossible.

#96 NotAGreaterFool on 10.27.15 at 10:33 pm

TD is laying off staff big-time, er…restructuring. This has been underway for for the last 5-6 months and continues. I know several 1st had who were advised today of their misfortunes. You can bet, if not already, others Banks will follow..

#97 Someone from TO on 10.27.15 at 10:54 pm

One of the big five banks is letting a lot of people go this week, and it’s not just IT that’s impacted.
I lost a few good friends already.
The bank anounced earlier this year that 2015 will be the year of savings (cost cutting) so this is no surprise to people that pay attention.

#98 Cici on 10.27.15 at 10:57 pm

#24 common sense

Once in a Lifetime…what an awesome song from an awesome band…they just don’t make music that good any more (…and if they do , they don’t give it enough play).

Funny quote I happened upon from David Byrne about how and why he wrote the lyrics to the song:

“Most of the words in ‘Once in a Lifetime’ come from evangelists I recorded off the radio while taking notes and picking up phrases I thought were interesting directions. Maybe I’m fascinated with the middle class because it seems so different from my life, so distant from what I do. I can’t imagine living like that.”

#99 Cici on 10.27.15 at 11:02 pm

Way to Go Carmen!

If the rest of Canadians were as smart and disciplined as you and your spouse, we wouldn’t be on the verge of falling off a cliff.

By the way, they do sell portable sink hook-up washing machines. Better than nothing ;-)

#100 45north on 10.27.15 at 11:03 pm

The Ontario Ministry of Municipal Affairs and Housing has caved to ongoing requests from cities like Mississauga, and will be granting every municipality the right to double the land transfer tax.

talk about disconnect! Mark says that housing peaked two years ago. For the last two years house prices in Vancouver and Toronto have gone up while prices everywhere else have gone down. what works for Toronto is not going to work for everywhere else. The Ontario Ministry of Municipal Affairs is giving out rope to the municipalities. Too bad if they hang themselves.

One of the biggest fallacies is equality. In this case the idea that municipalities should be equal. Well they’re not:

http://ottawacitizen.com/opinion/columnists/reevely-ontario-let-blind-river-get-into-a-mess-and-well-all-end-up-paying-for-it

#101 Smoking Man on 10.27.15 at 11:05 pm

#96 NotAGreaterFool on 10.27.15 at 10:33 pm
TD is laying off staff big-time, er…restructuring. This has been underway for for the last 5-6 months and continues. I know several 1st had who were advised today of their misfortunes. You can bet, if not already, others Banks will follow..
…..

Yes having layoffs….but 80% are in NYC
USDCAD 1.33 going to 1.5

But you cant turf just USA, its bad for reputation.

Im expecting huge # of Toronto hires in 2016 for IT staff. Watch what happens after Nov 1st when new budgets are drafted.

In all the banks.

Long on Long Branch.

#102 Mark on 10.27.15 at 11:10 pm

Didn’t Troll tell us a few times over the past few months that finding 6-figure IT jobs in the GTA was a trivial endeavour?

I’m pretty sure I heard an insinuation to that effect when I pointed out, on numerous occasions, that Canada’s IT sector has been decimated on account of the loss of some key players, a significant glut of new and experienced grads, widespread outsourcing and a severe reduction in demand coming from the United States that, in the past (ie: 80s and 90s), soaked up a lot of Canada’s excess.

Maybe if the Troll wants to redeem himself, he can tell the subject of Garth’s post where a new job can be found.

Actually, now that I think of it, there is actually decent demand in the lower end of IT, especially for help desk positions. Its the high end where the problems mostly are, with the six-figure jobs being mostly non-existent. But tons of $40k/year IT jobs out there for people who aren’t overqualified, that’s for sure.

#103 Canada's Canadian on 10.27.15 at 11:12 pm

DELETED

#104 Mark on 10.27.15 at 11:13 pm

“With regards to the CAD, I’ve been bearish all the way down. But I don’t think that there’s much downside from here. We’re going to float around the $1.3 CAD per USD”

I agree. Although as Canadian RE deflation picks up, there could be a panic to buy CAD$ to pay off CAD$ debt. Severe demand truncation in the economy = much stronger CAD$. Just like happened in the USA circa the fall of 2008/2009.

Timeframes indicate that such could occur pretty soon. The TSX stocks can barely be given away these days. Anyone see CNR today? They post blow-out numbers yet the stock still sells off.

#105 Cici on 10.27.15 at 11:14 pm

#31 Qwer,

Probably, but I say give Garth a break!

He should stay behind the scenes as a leading Conservative strategist, because he already works hard enough on this blog.

Being in the limelight is a thankless, time-consuming and high-pressure job fit for young, energetic and narcissistic puppets who like being pulled by the strings. Garth is too good for that.

#106 Vietnam on 10.27.15 at 11:15 pm

#81 Smoking Man on 10.27.15 at 9:21 pm

Tylonal, tell me about the fall of Saigon.

===

All one needs to know about Vietnam, what was the beginning of the war today, you will find in the opening scene of Copolla’s Apocalypse Now.

All you see in the shot is an idyllic post card scene of the noisy jungle, full of life, with a sandy beach.

Then you hear the discrete noise of a helicopter, slowly moving across the screen, with her shadow walking on the sand, the pilot talking on the radio.

Then just the jungle paradise again for a minute or two, as if it was just a lazy Sunday afternoon.

Then an aircraft comes very fast, very noisy, less than a few seconds, the napalm delivered – the entire screen burns to the ground.

If you happen to be there, you could be the smartest, strongest, fastest, best trained warrior – it does not matter, you are dead.

It took me this few minutes to make up my mind and take my chances on deserting, risking 15 years in military prison if caught.

#107 april on 10.27.15 at 11:16 pm

#89 – Who is the source of these stories??? Realtors @Co? Too many condos on the market and many more on the way. Many older condos are not desirable though usually more spacious than new ones which are too small and pricy.

#108 Smoking Man on 10.27.15 at 11:19 pm

Oh and Long Branch..we get mail delivery. Thanks to Justina.

I’m starting to like the kid. He has has no business brains, his world revolves around camp fire marshmallow sharing feelings and love ins.

Its ridiculous he doesn’t fire my mail man for mail boxes. 1900 model.

But hey.. It works for me….and my property value.

#109 BC Guy on 10.27.15 at 11:19 pm

As I start reading Carmen’s story, I come across:

“Work in IT for a big bank, very stable job …”

Right away, I knew her story was gonna end badly. There is no such thing as a stable IT job (unless you live in India or Pakistan and don’t mind working for $8k/year).

#110 Mark on 10.27.15 at 11:23 pm

“Garth has said this many times and I agree, but wouldn’t the borrower just re-amortize their mortgage to keep the costs down?”

If CMHC insurance is involved, re-amortization isn’t possible (as such renders the CMHC insurance null and void). If the loan is high enough in quality that CMHC insurance isn’t applicable, then chances are, the borrower isn’t in a precarious financial situation.

So basically, changing amortizations won’t be of much use. If risk in the economy rises and/or the bank wants their money back, they’ll get it back. The presence of CMHC insurance has removed the risk of the banker in default. At this point, given the decline in housing of the past few years, the banks are likely to start being more aggressive in their efforts to trade against the housing market and their customers. We’ve seen already a few instances of the banks refusing to, for example, pass on the full extent of the BoC policy rate decreases to their customers with more draconian measures in the pipeline.

#111 Vietnam on 10.27.15 at 11:23 pm

#97 Vietnam

P.S. Thanks, Francis. And Sofia is also cool :)
Sorry for misspelling Coppola. Not the only dyslexic here.

#112 Sheane Wallace on 10.27.15 at 11:26 pm

#85 Patrick on 10.27.15 at 9:36 pm
I don’t understand why rates can’t stay at zero for a very long time. Hasn’t it been 20 years in Japan?

Interest rates in Japan were zero or close to zero for 20 years, to fight the decline of their housing bubble which I believe was smaller than ours.

Japan could do it because:
1. Their debt is internal
2. They had huge trade surplus in these decades
3. They started with lower debt, now close to 240 % of GDP.

And still house prices declined by 50-70 %.

We are so screwed, it is simply non-describable.

#113 Leo Trollstoy on 10.27.15 at 11:27 pm

#95 Smoking Man on 10.27.15 at 10:30 pm

Completely agree.

#114 Leo Trollstoy on 10.27.15 at 11:28 pm

#100 Mark on 10.27.15 at 11:10 pm

Banks don’t employ IT people. Those are word processing secretaries. IT companies employ IT people.

#115 Sheane Wallace on 10.27.15 at 11:29 pm

#97 Mark

0.35-0.45

in 5-7 years. Or maybe 2-3. Don’t underestimate Justin and Wynne. The municipal land transfer tax made my day.

#116 Leo Trollstoy on 10.27.15 at 11:30 pm

Banks are notorious for offshoring IT staff and using TFWs. Why? Because much of what they do (apart from information security perhaps) is very low skill.

I’ve probably given 350 interviews in the last 4 years on behalf of an elite silicon valley software firm. I have never seen someone with a background in bank IT getting hired at my company, and I’ve never ever heard of that at other companies such as Amazon.

Exactly.

Bank employees are in banking.

Bank “IT” people configure printers and reset login passwords.

#117 Leo Trollstoy on 10.27.15 at 11:31 pm

No successful comp sci engineer would consider bank IT to be “IT”. Unless they dropped out.

#118 Van Isle Renter on 10.27.15 at 11:57 pm

Hi GT,

The $32K GTA tax bill looks wonky to me. I looked it up on their website and it looks like it should be (only) $7500 or so.

Are they doing something in TO that we don’t do out on the left coast? GTA is goofy enough. No need to cover it in pink frosting, or is there?

http://www1.toronto.ca/wps/portal/contentonly?vgnextoid=6245ff0e43db1410VgnVCM10000071d60f89RCRD

The number is correct. — Garth

#119 Trading Naked on 10.28.15 at 1:02 am

When I’d read that Carmen was in “bank IT”, I was totally waiting for the pink-slip punchline.

And Garth, we’re assuming that Carmen & co. are allowed to put a washer/dryer in her rental place, right? My place has a no washer/water bed/etc. policy.

#120 slick on 10.28.15 at 1:05 am

#71 smoking man;
I saw those 2 on tv also.
After the reverse on Wynnes ORPP speak; ie will cancel plan if Trudeau elected,
I said she should suck him off, then he should suck her off too

#121 Frank on 10.28.15 at 1:53 am

No successful comp sci engineer would consider bank IT to be “IT”. Unless they dropped out.

Not just banks. Utility and telecommunication companies too. Started my career out of school (Comp Sci grad) with a large utility company. Quit super fast when I realized they were the worst developers I’d ever met. The ‘leads’ were just dudes who were putting in time and had no interest in software as a whole. No one talked about technology, attended conferences etc.

I left before I got stale, joined Amazon and haven’t looked back. IT/Software folk at companies that don’t produce software as a product or service don’t count. They are just there to keep the lights on.

Its the high end where the problems mostly are, with the six-figure jobs being mostly non-existent.

My team has 2 open head count right now. $100K – $110K for intermediate, $130-$140K for senior. We are desperate to get candidates in the pipeline if you’re interested. I know we’re not the only ones.

#122 souvereigninternational on 10.28.15 at 1:53 am

Re.: GARTH’s POST –

Carmen is a very good example of an average/typical GTA person/family in respect to employment/net worth situation. What is sad that in our “rich country” people with middle class income that want to spent reasonable amount of their salary on dwelling (1300$) have to live in small, dumpy apartment bldg. that has not been properly updated. Rent control and other restrictive(socialist) policies can be partly blamed for this as well as the push towards ownership and resulting RE bubble. When I rented similarly priced dwelling in USA, amenities included 1300 sq. feet, central AC, laundry room with washer/drier, dishwasher/ 2 full bathrooms, 2 walking closets, storage locker off one of the two balconies, free parking, WB fireplace, community swimming pool, gym as well as package receiving concierge services. Hey and it was not called executive/luxury just like any decent place within GTA.

RE.: 2-in-1 washer/dryer

Samsung makes a really good full size one that I used in the past, but it is not a perfect solution for a family as a full cycle takes several hours and you are limited to may be 2 loads a day. You will need need to piggyback it to existing plumbing as opposed to sink hook up.

Re.: WHY RATES CAN’T STAY NEAR ZERO

They can but not for you. They probably will stay there for as long as possible for governments and all the to big to fail corporations.You will pay market rates and they will be going up if you will be lucky to get one. Good explanation of Japan scenario Sheane W. by the way. It will rhyme but not repeat.

Re.: CA DOLLAR

probably minimal/or short term downside at this as MARK already reiterated. Next move into commodities will lift theC$ but for most Canadians it will be to little too late as the economy overall will be already in the doldrums and they will not be able to benefit from that as the unemployment will be high following the burst of RE bubble (+), general populace will be mired in debt. It will actually be worst for many folks as they will be paying off more expensive C$. I see a possible drop to upper sixties for the loonie versus US$ and a possible reversal towards the end/beginning of the decade.

RE.: DOUBLE LAND TRASFER TAXES regulated by munies

That will be a perfect scapegoat when the real estate prices topple in this province, blame the greedy municipalities. It wasn’t us.

Re.: TAXES UP / BENEFITS DOWN

http://www.thestar.com/news/canada/2015/10/27/tracking-system-designed-to-expose-snowbird-benefits-fraud.html

socialist/fashist state at its best. Check out the comment section so much support for that. Maybe time to head to Bahamas. A little crime in Nassau or Freeport , than go to out islands and buy this:

http://www.coldwellbankerbahamas.com/listing-single-family-home-in-windermere-island-11710.html

you might get it for 20-30% off as the property market there is not Canada hot.

or you can stay and get this palace on balmy beachfront on an acre+ of private gardens:

http://www.realtor.ca/Residential/Single-Family/16287174/88-MAPLEWOOD-AVE-Toronto-Ontario-M6C1J2-Humewood-Cedarvale

might be able to scratch it for just under a million after bidding war.

#123 souvereigninternational on 10.28.15 at 2:00 am

sorry – meant walk-in closets not walking closet. Although for most average GTA apartments/condos they may as well be called walking closets. They walked away for the lack of square footage.

#124 Freedom First on 10.28.15 at 2:19 am

#83 Big Dipper
…..free will…..we don’t have any….
……………………………………………………..

Big Dipper. You must be married.

#125 Big Dipper on 10.28.15 at 4:02 am

92 Ralph Cramdown

“It’s pretty funny that someone would actually type that into the little box at the bottom of the page and hit ‘submit.’ For the rest of my days here on this blog, I’m going to think “Skinner Box” every time I start typing a comment. Icanhazcheese?”

——
Not sure al readers here know (or care about) what a Skinner Box is. Perhaps they were not taught about the studies (environment), or maybe they did and forgot about it (biology).

My comment meant to include our early environment from birth onwards (although our environment prior to birth will have biological consequences). Where, how, when and with who we grew up is particularly important.

This blog owner and commenters have wildly divergent opinions and most think that they arrived at those through making autonomous decisions. But it’s an illusion. The need for a bigger cave is often biological. Religious, societal and political beliefs are determined by our early environment.

I now need to decide to submit this post. Maybe I shouldn’t. I can’t stop myself, aah shit..

#126 Wilt roasted nutz on 10.28.15 at 4:30 am

Wow quite the luv in with Justin and wynne. Harpo wasn’t into hugging everyone. Mega bucks on the way to Ontario plus pension bucks.

Meanwhile the mag magazine fellow in charge of oilberta budget just put us $50 billion in the red.

Hopefully Justine coming hugging with his money tree.

#127 busman7 on 10.28.15 at 7:56 am

CPP pension direct deposited to my US account, highest since July.

Daughter got a new job the day after the election paying double her former hourly rate.

Justin is the man!

#128 TurnerNation on 10.28.15 at 8:38 am

This caught my eye.
Part of a trend to concentrate and isolate us into cities?
Blocking exit routes, banning cars?

– What else is there. Greyhound cut some rural routes. Via was never expanded. Carbon taxes will soon choke off air travel?
You are free to leave at anytime?
What if there is a man made pandemic or attack, airports sealed. An entire city could be sectioned off to wither away. Reminds me of Falluja, Iraq. Was that just a test?

I don’t like the look in Van mayor’s eyes. Seems like part of the agenda.

http://www.cbc.ca/news/canada/british-columbia/vancouver-viaducts-vote-remove-1.3291781

Vancouver viaducts to be removed, votes council
City councillors voted 5-4 to remove the city’s viaducts after hearing from dozens of speakers

#129 ANON on 10.28.15 at 8:52 am

Cute pdfs.
Would you like to know more?

#130 Chris on 10.28.15 at 8:54 am

Very few jobs are safe. Even if you are a decent worker or have been at a firm a long time. If your salary is higher than your peers, you might think your job is safe, but be the first on the chopping block.

Even some government jobs have contracts which allow for layoffs which is not necessarily the most junior getting the notice.

#131 Broke Dick on 10.28.15 at 9:04 am

#32 Yikes on 10.27.15 at 6:18 pm
Garth, please delete comment #7. It’s hateful and offensive.
Thank you.

Done. Sorry, I missed that. The poster should apologize. — Garth

Sorry was that offensive? I thought it was a more colourful way of saying Wynne has no problem screwing the people of Ontario.

#132 Broke Dick on 10.28.15 at 9:07 am

And certainly there are even more colourful ways of saying the same thing.

#133 Nagraj on 10.28.15 at 9:11 am

THE STYLE SECTION

Ignatieff (remember him?) had a father.
This father, an accomplished fellow and Canadian Governor General (id est, personal representative of the English queen to this Dominion of hers) was the fifth son of Count Pavel Ignatieff, who had been Minister of Education (amongst other things) in the last gov’t of the last Russian tsar.
The Count ran off wisely in 1916 and after almost a decade in France, arrived in Canada in 1925. (His wife’s illustrious maiden name was Mereshensky.)
Maybe this explains – this aristo history – Lib leader Iggy’s seeming inability to come across as other than aloof.
[In the late 1960’s Iggy and Bob Rae were U of T room mates. I imagine they had very different tastes in music.] [And it wasn’t Rae’s grandma who was a saloon floozy (forgive the injudicious language) in the Yukon, it was a great-aunt.]

The Trudeau patriarch was a farm boy who married well, and then got rich via a gas stations business.

Pink-slipped Carmen and her laundry troubles, as a focus of our gracious host’s attention – confirms that our gracious host is indeed a gracious man. (Hardly perfect though.) (And please let’s stop urging him to get back into politics; his first public address: “My fellow Canadians, I’m into bikes babes and dogs. How about you?”)

– which reminds me: if Harpo is in the House of Commons when the Duffy trial resumes, he can’t be called as a witness. [And 70% of Canadian travellers wouldn’t be caught dead in a Harper Airport.]

#134 Bottoms_Up on 10.28.15 at 9:12 am

#128 TurnerNation on 10.28.15 at 8:38 am
—————————————————-
Where do you want to run to? Canada is a ginormous land mass, there is enough space to run and hide here. Start with any of the 830 provincial parks in BC:

https://en.wikipedia.org/wiki/List_of_British_Columbia_Provincial_Parks

#135 Ralph Cramdown on 10.28.15 at 9:16 am

#125 Big Dipper — “Not sure al readers here know (or care about) what a Skinner Box is.”

My comments aren’t aimed at people too ignorant/lazy to highlight an unknown phrase with the mouse, right click, select search and be enlightened in seconds flat (p.s. Can’t help you, Mac users. You’ve only one button, like a Skinner Box).

“This blog owner and commenters have wildly divergent opinions and most think that they arrived at those through making autonomous decisions. But it’s an illusion. The need for a bigger cave is often biological. Religious, societal and political beliefs are determined by our early environment.”

There’s a lot of crackpots on this blog. Many think that most fortunes are merely the just desserts of hard work, and that most poor people are just lazy, greedy or have poor self-control. Others think that the rich are mostly just lucky or thieves, and the poor have very little control over their situation. Both of these extremes are gross oversimplifications. Social scientists have measured so called ‘social mobility’ and it varies greatly from place to place and through time. We are the products of our births and our culture, certainly, but our culture is a product of us, and many of us can and do change ourselves. You’ll never see a pigeon in the library’s self-help section or at an Alcoholics Anonymous meeting. The guy watching the hockey game and getting himself a beer during the commercial break is certainly a product of conditioning, but what about the people making the commercials?

A species that splits the atom, goes to the moon and begins to tinker with the genetic blueprints for life is no longer a mere product of its environment. This is the Anthropocene Age. We’ve gone meta.

#136 TurnerNation on 10.28.15 at 9:20 am

Notice almost every car is under recall these days.
Announcments, almost weekly.

Makes little sense when the design of cars and testing/proving has never been so advanced.

Largest car company in world – VW – was taken down.

The automobile brought freedom. No longer.

#137 Hot Albertan Money on 10.28.15 at 9:23 am

This must just be an attempt at cooling the red-hot housing markets in places like North Bay, Owen Sound and Cornwall right?

I mean, it can’t just be a cash-grab right? RIGHT?

#138 Ralph Cramdown on 10.28.15 at 9:24 am

#128 TurnerNation — “Vancouver viaducts to be removed, votes council. City councillors voted 5-4 to remove the city’s viaducts after hearing from dozens of speakers”

Well, the two municipal political parties are the New Power Generation and the Visigoths. What did you expect?

#139 Broke Dick on 10.28.15 at 9:28 am

#60 Linda on 10.27.15 at 7:58 pm

Second, are there any places in the Toronto area that would give a family of four the amenities they are looking for for $420,000? Given the properties & prices this blog has been mentioning, $420,000 might buy a tiny condo but certainly not a house, not even in the outer limits of the GTA.

_________________________________________

For $500,000 they could be looking at a bungalow in Rexdale (west end of Toronto proper) which will need a little work, but a very decent lot size.

#140 Bottoms_Up on 10.28.15 at 9:33 am

#19 TurnerNation on 10.27.15 at 5:05 pm
————————————————-
Anyone employed in Canada pays taxes. That includes provincial and federal taxes, CPP and EI premiums, VAT and gas taxes, property taxes and land transfer tax, capital gains tax, air conditioning automobile tax etc.

This information provided to you for free. You’re welcome.

#141 IHCTD9 on 10.28.15 at 9:45 am

#4 Nick on 10.27.15 at 4:11 pm
My advice, and I give it with all sincerity, get a job with the Feds. My sister is working her way up the management chain in social services and just returned from 1 year leave after having her first baby. With Liberals back in charge, the government will only grow. Canada needs good people to rebuild after over 10 years of Con suffocation. Oh, and keep renting.
____________________________________________

Amen to this. Every couple I know that is doing half decent financially both work, and at least one of them works for government. I’m the last guy to wish for higher government pay, greater compensation packages, and more civil employees – but I will be giving my kids the low down on government work when the time comes. Compensation for the average white collar civil employees is way high compared to what a shmuck working in the private can expect if he is not the CEO of GM etc..

Realistically speaking, with the current situation being what it is, and the future expectations being what they are – this kind of thing will never end. Greece was still trying to improve the situation for their public employees even while their government ran on tax dollars expended by the rest of Europe.

I sure as hell won’t directing the kiddies to a future in any way related manufacturing – not in this Province…

#142 HD on 10.28.15 at 10:07 am

#125 Big Dipper on 10.28.15 at 4:02 am

“My comment meant to include our early environment from birth onwards (although our environment prior to birth will have biological consequences). Where, how, when and with who we grew up is particularly important.

This blog owner and commenters have wildly divergent opinions and most think that they arrived at those through making autonomous decisions. But it’s an illusion. The need for a bigger cave is often biological. Religious, societal and political beliefs are determined by our early environment.”

I agree. ‘Free will’ seems to be an illusion.

I tend to agree with Sam Harris’s view on that. Also, I can’t reconcile a determinist view of the universe with the notion of free will. I guess that makes me an incompatibilistic?

Anyway, I am not a philosopher or a scientist so my expertise is very limited on the matter but find the topic fascinating.

When I try to discuss this with relatives or friends, they think it is crazy talk or non-sense…oh well.

Best,

HD

#143 jean on 10.28.15 at 10:11 am

122 sovereigninternational, thanks for posting this:

http://www.thestar.com/news/canada/2015/10/27/tracking-system-designed-to-expose-snowbird-benefits-fraud.html

I am curious though. Why would senior Canadians not be entitled to collect their old age pension if they move away. I will not be collecting any Canadian benefits because I will be living here only a few years, but the UK state pension I paid into will be paid to me no matter what country I retire to. Seems strange that in Canada you have to live here to collect it even if you paid into it throughout your career?

#144 IHCTD9 on 10.28.15 at 10:13 am

#140 Bottoms_Up on 10.28.15 at 9:33 am
#19 TurnerNation on 10.27.15 at 5:05 pm
————————————————-
Anyone employed in Canada pays taxes. That includes provincial and federal taxes, CPP and EI premiums, VAT and gas taxes, property taxes and land transfer tax, capital gains tax, air conditioning automobile tax etc.

This information provided to you for free. You’re welcome.
____________________________________________

Thank you Captain Obvious.

I think the point was that Public Sector workers pay these taxes with much greater ease that their private sector counterparts. They make a lot more, don’t need to save for retirement, have solid job security, and don’t suffer from wage stagnation.

I’d trade my white collar private sector job for a lowly managerial position at the LCBO in a second. 50% more money, a pension, great benefits, job security those working outside of a government monopoly can only dream of, half or less of the work, no stress.

I’d pay the same taxes I pay now, but with a smile…

#145 Ralph Cramdown on 10.28.15 at 10:14 am

#132 TurnerNation — “Notice almost every car is under recall these days. Announcments, almost weekly. Makes little sense when the design of cars and testing/proving has never been so advanced.”

But we collect more data today and analyze it more thoroughly. More data + better statistical analysis = more defects found, even in an overall environment of declining defects.

#146 Butch on 10.28.15 at 10:16 am

It’s Oct 27 already?

Guess what’s not coming today?

Ya – a fed rate rise.

Markets give an increase today 6% odds. The futures market gives a 35% chance of an increase in 2015. A survey of economists shows 65% expect the Fed to move in December. — Garth

#147 dt on 10.28.15 at 10:20 am

Laundry post. We’re in the similar boat as 2014 Carmen, 3 kids, renting a 3br for $1400, no laundry, less income, a 0% car loan, almost topped up self-directed TFSAs and RESPs. Stable jobs? Dunno about that.

We bought a portable washer and dryer instead of the all in one, it’s way cheaper and can do more laundry faster. Just drag the washer up to the kitchen sink. They’re on sale right now at a large retailer online, free delivery.

Wish I bought the things a few years ago. Taking babies to the apt building next door to do laundry, or waiting for the other spouse to stay home while the other one does the laundry battle blows. I’m surprised how much quality of life increases being able to do laundry at home just like every other debt slave.

#148 Ralph Cramdown on 10.28.15 at 10:20 am

#143 jean — “Why would senior Canadians not be entitled to collect their old age pension if they move away.”

For CPP, they are entitled, as they contributed. Old Age Security and the Guaranteed Income Supplement (OAS/GIS) are means tested anti-poverty programs funded from general revenues. Non residents aren’t entitled to them. Impoverished Canadian seniors in faraway places are deemed to be somebody else’s problem.

#149 cramar on 10.28.15 at 10:34 am

#83 Big Dipper on 10.27.15 at 9:28 pm

I’ll pick “free will” – which is a fallacy. We don’t have any. Our behaviour, and life outcomes, are determined by our environment and our biology. Nothing else.

—————–

Couldn’t disagree with you more!

I’m always fascinated by where people end up in life. I observe that they are a product of their choices. Like everyone else, I am where I am today based on the choices I made in my life—both good and bad!

Saw an interesting news feature where Afro-American youth are being taught coding skills in Calif. by a fellow who works for a Silicon Valley company. He grew up in an inner-city ghetto and his father was a drug dealer who spent most of his life in prison. Yet his son escaped the ghetto, became a success and is passing on his skills to others. I’d love to find out what choices he made along the way that lead to where he is today. The majority still back in the inner city didn’t make those kind of choices.

“Everything can be taken from a man but one thing: the last of the human freedoms—to choose one’s attitude in any given set of circumstances, to choose one’s own way.”
― Viktor E. Frankl, Man’s Search for Meaning

Just now I found out about this:
http://www.foxnews.com/health/2015/10/26/24-year-old-nevada-woman-froze-to-death-in-cryotherapy-chamber/

Her choice of entering the machine with nobody else in the shop for safety sake, cost her life. Dumb choice!

#150 HD on 10.28.15 at 10:35 am

#135 Ralph Cramdown on 10.28.15 at 9:16 am

“A species that splits the atom, goes to the moon and begins to tinker with the genetic blueprints for life is no longer a mere product of its environment. This is the Anthropocene Age. We’ve gone meta.”

The notion that ‘free will’ is an illusion doesn’t preclude humans to accomplish all those things and more.

If you pay close attention to how the mind works, no one can confidently claim that they are the author of their own actions. And it goes beyond just craving a beer during a hockey commercial. Several experiments seem to show that all thoughts arise from the unconscious mind to the conscience mind. Nobody knows how the heck the unconscious produces anything but every thoughts arise from there….how can anyone claim to have control assuming you accept these assumptions?

Best,

HD

#151 turgalika on 10.28.15 at 10:35 am

#142 HD on 10.28.15 at 10:07 am
#125 Big Dipper on 10.28.15 at 4:02 am

“My comment meant to include our early environment from birth onwards (although our environment prior to birth will have biological consequences). Where, how, when and with who we grew up is particularly important.

This blog owner and commenters have wildly divergent opinions and most think that they arrived at those through making autonomous decisions. But it’s an illusion. The need for a bigger cave is often biological. Religious, societal and political beliefs are determined by our early environment.”

I agree. ‘Free will’ seems to be an illusion.

I tend to agree with Sam Harris’s view on that. Also, I can’t reconcile a determinist view of the universe with the notion of free will. I guess that makes me an incompatibilistic?

Anyway, I am not a philosopher or a scientist so my expertise is very limited on the matter but find the topic fascinating.

When I try to discuss this with relatives or friends, they think it is crazy talk or non-sense…oh well.

Best,

HD”

Not sure what you have been smoking, but they should legalize it whatever it is…

#152 turgalika on 10.28.15 at 10:46 am

#128 TurnerNation on 10.28.15 at 8:38 am
This caught my eye.
Part of a trend to concentrate and isolate us into cities?
Blocking exit routes, banning cars?

– What else is there. Greyhound cut some rural routes. Via was never expanded. Carbon taxes will soon choke off air travel?
You are free to leave at anytime?
What if there is a man made pandemic or attack, airports sealed. An entire city could be sectioned off to wither away. Reminds me of Falluja, Iraq. Was that just a test?

I don’t like the look in Van mayor’s eyes. Seems like part of the agenda.

http://www.cbc.ca/news/canada/british-columbia/vancouver-viaducts-vote-remove-1.3291781

Vancouver viaducts to be removed, votes council
City councillors voted 5-4 to remove the city’s viaducts after hearing from dozens of speakers”

Don’t forget the legalization of ganja….part of a plan to make people apathetic and accept being locked in…

A one and a two and a……♫

“Hotel Ganja-norte”
On a dark frozen highway, snow flakes in my hair
Warm smell of tim hortons, rising up through the air
Up ahead in the distance, I saw a greyhound light
My toque grew heavy and my sight grew dim
I had to stop for the night
Welcome to the Hotel Ganja-norte……
You can check-out any time you like,
But you can’t never leave! “

#153 SunShowers on 10.28.15 at 10:59 am

“This is not a laundry blog. — Garth”

This comment made me curious…and laundry blogs actually exist. God help us all.

#154 Dup on 10.28.15 at 11:15 am

If we pay more tax we should get more services and that does not mean more bureaucracy or useless layers of government employees. Do we get more by paying more?

No more new taxes!
We do not have enough to put aside for retirement.
Speak up! Send e-mails, letters to your representatives…

#155 Ralph Cramdown on 10.28.15 at 11:31 am

#150 HD — “If you pay close attention to how the mind works, no one can confidently claim that they are the author of their own actions. And it goes beyond just craving a beer during a hockey commercial. Several experiments seem to show that all thoughts arise from the unconscious mind to the conscience mind. Nobody knows how the heck the unconscious produces anything but every thoughts arise from there….how can anyone claim to have control assuming you accept these assumptions?”

Don’t think of an elephant. There, I’ve made you think of an elephant. The thought certainly didn’t come from your subconscious (unless we want to go down the Universal Mind rabbit hole). Did it come from my subconscious? I’m trying to win a logical argument here, so that points more to the higher, conscious areas of the brain. We don’t fully understand consciousness, but we know a bit about how to manipulate it in ourselves and others, chemically and psychologically, and we’re learning more all the time. I think it’s hard to have a coherent, deterministic framework of consciousness that encompasses the sum of human social behaviour. Some command or persuade, and others obey or resist, but none have free will? Here’s defences that won’t go far:
– I had to kill him, your Honour. I couldn’t help myself.
– Honey, the boss told me to do a job, and I refused, so he fired me. There was nothing I could do.

https://www.youtube.com/watch?v=NTtpFTj6KeA

The above was somewhat trite, but was the best I could come up with on short notice in a field I haven’t thought much about (hah!).

#156 Van guy on 10.28.15 at 11:50 am

Garth- does post #121 meet your standards? Nasty, hateful stuff.

What hate? — Garth

#157 Van guy on 10.28.15 at 11:51 am

Oops, should be #120.

#158 IHCTD9 on 10.28.15 at 11:51 am

#8 Nick on 10.27.15 at 4:26 pm
In other news, Stephen Harper is moving back to Calgary, a city with a liberal mayor, a province with an NDP premier, and a PM named Trudeau. Life is ironic like that.
__________________________________________

I guess you are assuming that this situation has solid roots?

I am guessing that Harper does not.

The irony comes later, if you happen to be paying attention…

#159 Holy Crap Wheres The Tylenol on 10.28.15 at 11:54 am

#81 Smoking Man on 10.27.15 at 9:21 pm

Tylonal, tell me about the fall of Saigon.

What to know your story’s.. Where your were
____________________________________________
Started flying”stuff” out late March, then “stuff became people” early April, Flew my C5 but we had an incident and fleet was grounded, all pilots transferred back to C-130s we flew to Clark AFB (Philippines) numerous times. The LZ at Tan Son Nhut Air Base was getting hot, NV started bombing the hell out it. We all knew it was over but nobody said a thing. Once FW craft finished and the Hueys started the shit really hit the fan. Last flight out we saw probably 100 warships in the South China Sea but probably 1000 small vessels nearby. Technically I was two months over discharge, however when your owned by Uncle Sam he can keep you on and he can call you back to AD for another year. Discharge didn’t come until June 75. The only thing I recall is the desperation and looks on the peoples faces as they boarded. Scared shit-less, so were we.

#160 Holy Crap Wheres The Tylenol on 10.28.15 at 12:01 pm

#45 Gulf Breeze on 10.27.15 at 7:18 pm

Holy Crap Where’s the Tylenol,

I cruised the Caribbean for 4 months, in 2011. You couldn’t pay me enough money to live there, now.

We weren’t staying in resorts, but anchored out and swimming or dingying to shore and mixing with townspeople. Super lovely people, for the most part, and the poverty, though evident, wasn’t grinding….yet. But it is becoming so and crime is picking up. The Bahamas are particularly nasty now, I read recently.

We walked the side streets of Dominica, at night, in2011 — pot being the drug of choice, I wasn’t too worried. But now?? Don’t think I would do it.

In St. Vincent our boat was boarded at night by thieves who stole a few things. Luckily, we slept through it or we could have lost our lives. We were also pursued by a machete wielding angry guy, over some misunderstanding, near the Tobago Keys.

He was smoking mad and if he had boarded our cat before we were able to straighten things out, he surely would have been violent.

Moral of the story? It’s just not the way the brochures portray it. Life in the Caribbean is really hard for the citizens and, there is a lot of understandable resentment, that many of them carry.

Don’t go to the Bahamas, to live. You will end up feeling cloistered in areas that are safe for foreigners, or putting yourself at risk, if you venture outside of those zones.

It doesn’t matter if it’s a sweet deal, on paper. The reality is different
___________________________________________
We have rented this place for 6 months, have option to purchase. They are asking an exorbitant amount for it. Already the Realtor has been pushing for a sale. I told my wife I like the people, warmth, food, Island life but it is better to taste a sample of the meal before you purchase it.

#161 Sheane Wallace on 10.28.15 at 12:21 pm

More and more fools ‘investing’ in their houses, sinking money in hope of further appreciation in ‘hot housing market’ conditions.

https://ca.finance.yahoo.com/news/scotiabank-construction-report-says-canadians-142414609.html

over 50 billions on new houses, 53 billions on renovations,… (a lot of that in house flipping activities.)

#162 BREAKING.... on 10.28.15 at 12:24 pm

FED not raising rates this year. Next year up in the air as recession looms. They missed their chance.

Loonie going up.

Seems likes low rates here for another 5 years or so.

Anyone want to bet against that?

#163 Bottoms_Up on 10.28.15 at 12:31 pm

#150 HD on 10.28.15 at 10:35 am
———————————————–
I’m not sure the whole argument on free will (or not) is even a valid one.

I can tell you I am going to press a button in 10 seconds. Then I follow through by pressing that button.

That proves the existence of free will….I told you I was going to do it, then I did it.

Debating whether I actually had a choice to press that button (like it was my fate to do so) IS kooky talk.

#164 Broke Dick on 10.28.15 at 12:31 pm

#148 Ralph Cramdown on 10.28.15 at 10:20 am
#143 jean — “Why would senior Canadians not be entitled to collect their old age pension if they move away.”

For CPP, they are entitled, as they contributed. Old Age Security and the Guaranteed Income Supplement (OAS/GIS) are means tested anti-poverty programs funded from general revenues. Non residents aren’t entitled to them. Impoverished Canadian seniors in faraway places are deemed to be somebody else’s problem.
++++++++++++++++++++++++++++++++

You can still collect OAS if living out of Canada.
If you are living outside Canada, you must:

-be 65 years old or older
-have been a Canadian citizen or a legal resident of Canada on the day before you left Canada, and
have resided in Canada for at least 20 years after turning 18.

http://www.servicecanada.gc.ca/eng/services/pensions/oas/pension/index.shtml

#165 Ogopogo on 10.28.15 at 12:39 pm

Nothing annoys the Great Canadian Housing Cult followers more than a happy, prosperous renter.

Well done, Carmen! Sorry to hear about the job loss, but at least you don’t have a noose around your neck in the form of illiquid bricks & mortar. Best of luck the job hunt.

And stay away from realtors!

#166 Ralph Cramdown on 10.28.15 at 12:43 pm

#158 Broke Dick — “You can still collect OAS if living out of Canada.”

I stand corrected. The Toronto Star article referenced possible 5-year savings of $48 million through OAS fraud prevention. I guess that would be people who’ve lived in Canada for more than ten years but fewer than twenty, and spend more than 1/2 the year outside the country.

#167 souvereigninternational on 10.28.15 at 12:52 pm

@ #148 Ralph Cramdown on 10.28.15 at 10:20 am

#143 jean — “Why would senior Canadians not be entitled to collect their old age pension if they move away.”

For CPP, they are entitled, as they contributed. Old Age Security and the Guaranteed Income Supplement (OAS/GIS) are means tested anti-poverty programs funded from general revenues. Non residents aren’t entitled to them. Impoverished Canadian seniors in faraway places are deemed to be somebody else’s problem.
————————————
Yes it is true they after OAS. But if you are impoverished and canadian citizen why should it matter where you are. It is not like welfare or EI you are not required to look for work. If somebody invites you to stay for however long in Florida, Jamaica, Europe or whatever should not matter. You are deemed poor therefore you should get OAS. You are still going to be poor if you go somewhere else. It is also an excuse to monitor everybody’s travel.

@ #154 Dup on 10.28.15 at 11:15 am

If we pay more tax we should get more services and that does not mean more bureaucracy or useless layers of government employees. Do we get more by paying more?

No more new taxes!
We do not have enough to put aside for retirement.
Speak up! Send e-mails, letters to your representatives…

————————————–

sorry but nothing short of guillotines and barricades will have any effect. And then you have to keep other psychopaths from fooling you again.

#168 Holy Crap Wheres The Tylenol on 10.28.15 at 12:53 pm

#106 Vietnam on 10.27.15 at 11:15 pm

#81 Smoking Man on 10.27.15 at 9:21 pm

Tylonal, tell me about the fall of Saigon.

===
All one needs to know about Vietnam, what was the beginning of the war today, you will find in the opening scene of Copolla’s Apocalypse Now.
All you see in the shot is an idyllic post card scene of the noisy jungle, full of life, with a sandy beach.
Then you hear the discrete noise of a helicopter, slowly moving across the screen, with her shadow walking on the sand, the pilot talking on the radio.
Then just the jungle paradise again for a minute or two, as if it was just a lazy Sunday afternoon.
Then an aircraft comes very fast, very noisy, less than a few seconds, the napalm delivered – the entire screen burns to the ground.
If you happen to be there, you could be the smartest, strongest, fastest, best trained warrior – it does not matter, you are dead.
It took me this few minutes to make up my mind and take my chances on deserting, risking 15 years in military prison if caught.
___________________________________________
The Infantry guys on the ground went though absolute hell. They had it the worst. I joined out of University. Became a pilot thought I could do some flying ferrying big-shots. Nope second week after flight school off to Guam, then Shit-hole SV. All pilots had standard issue S&W .38 or a .45. We also had the option to carry our own sidearm. The official word was they were carried for self defense. Also for search and rescue we could fire tracers and flares in addition to bullets. The real reason was it was your exit visa out of capture. The enemy hated pilots. God we did have some fun flying over the jungles though! Used to crank this tune all day long!
https://www.youtube.com/watch?v=TyDQs0ajxEc

#169 Victor V on 10.28.15 at 12:57 pm

Moody’s warns Alberta after big-spender budget

http://www.theglobeandmail.com/report-on-business/top-business-stories/renovation-nation-home-facelifts-to-rival-new-construction/article27015771/

#170 Holy Crap Wheres The Tylenol on 10.28.15 at 12:58 pm

Where have I seen this before………hmmmmmmmmmm. Oh yes the Avro Arrow. The Arrow death is how I grew up an American. My father and thousands of other aerospace engineers were gobbled up by US companies more than happy to raid the unleashed thousands of highly skilled workers.

http://www.ept.ca/electronics/abandoning-f-35-program-would-hurt-canada-group-says/1003732893/

#171 Drill Baby Drill on 10.28.15 at 1:01 pm

This new level of Greed taxation has only just begun. Now watch what happens federally due to the recent election of Wynne to the PM’s office.

#172 Drill Baby Drill on 10.28.15 at 1:09 pm

This is not a laundry blog. — Garth

Actually pathetic blog it is. Just look at all of the basement dwellers who have to live beside their mom’s washing machines.

#173 saskatoon on 10.28.15 at 1:15 pm

#163 Bottoms_Up

please follow your own advice:

reduce your carbon footprint on this blog.

#174 HD on 10.28.15 at 1:17 pm

#155 Ralph Cramdown on 10.28.15 at 11:31 am

“I think it’s hard to have a coherent, deterministic framework of consciousness that encompasses the sum of human social behaviour. Some command or persuade, and others obey or resist, but none have free will? Here’s defences that won’t go far:

– I had to kill him, your Honour. I couldn’t help myself.
– Honey, the boss told me to do a job, and I refused, so he fired me. There was nothing I could do.”

———————
What if after examining the brain of said killer we realize that he had a brain tumor that tempered with his ability to make rational decisions? Can he still be held accountable for his actions based on the notion that he had free will?

You are correct that admitting that ‘free will’ is an illusion would be a huge problem for our legal/justice system since it based on the notion that we all have ‘free will’. A lot of modern philosophers already argue that this whole thing has to be rethought if we accept that notion.

Anyway, we could spend an entire life on this without even starting to scratch the surface of what is really going on.
We will have to agree to disagree.

I appreciate the exchange though.

Best,

HD

#175 Q2 Class 4-4-6-4 on 10.28.15 at 1:27 pm

Hey Garth –

The end is nigh. Get that ‘prick’ ready.

‘IRP Panic: Over Half Of European 2-Year Bonds Trade At Record Negative Yields; Italy Paid To Issue Debt’

#176 You know you're a delusional suburban idiot when... on 10.28.15 at 1:31 pm

What a ridiculous example of real estate delusion and NIMBYism.

Brampton just voted last night to REJECT a provincially funded LRT system that would have seen them finally get strategically connected to Toronto.

Apparently people thought it did not “make sense” to have the line go through “the main part of town” (where else – wtf??) where some thought the heritage value of their real estate might be affected. (Including Bill Davis, former tory premier. He makes Hazel seem youthful. Arggh.)

So instead, on a binding vote, they bite the hand that feeds, since it’s by law this choice or none else.

Suburban idiocy at its finest on display.

I recently drove through Brampton (quickly, thankfully)

What a god-awful suburban wasteland it is. Horrid traffic, and idiot car-racers everywhere.

I now vote Brampton as the first to be hit by the GTA real estate meltdown when it happens in the next couple of years. It will be crushing there, because there is so little “there” there.

Way to go, 905ers! You can all go to Costco to celebrate, woohoo!!!

Spend all your real estate “equity”, LOL.

#177 bdy sktrn on 10.28.15 at 1:51 pm

#136 TurnerNation on 10.28.15 at 9:20 am

The automobile brought freedom. No longer.
—————————-
decent used cars are cheaper than ever. my leather seated suv is running like a champ going on 3 yrs.
it has carried hundreds of loads of ‘stuff’ and never stranded me. i plan to keep it 3-5 more years. it was $2600. it has a computer that only talks to me. talk about freedom!

#178 bdy sktrn on 10.28.15 at 1:56 pm

i bought the same one new in 95 for 36,000.

ps: it’s a truck suv, not of one of those pussy car type new ones, and with a trailer moves harleys, pianos or firewood effortlessly.

btw it runs on oil from alberta.
anybody else up 7% this week on oil?

#179 IHCTD9 on 10.28.15 at 2:00 pm

#50 Investor on 10.27.15 at 7:33 pm
At last something that will cool the house buying fest.

Great move from the government. No need to raise rates 0.5% (small impact) when you can ask a pile more money up front. That cash, you must have it in your pocket. Can’t borrow it and spread it over 30 years.
____________________________________________

Great move from the government?

This will cool the house buying fest?

There is only one city in Ontario that already has this additional municipal tax, and that is Toronto. This same city has the highest RE prices in Ontario, and the single hottest market in Ontario – all while already paying this tax. Nothing will change in Toronto, and I expect the rest of the GTA will react the same when the tax is implemented.

All this is going to do is slow down housing sales outside the bubble zone. Outside the GTA, prices for the most part are pretty much where they should be, so this new tax becomes straight deadweight to the RE business.

#180 bdy sktrn on 10.28.15 at 2:08 pm

#138 Ralph Cramdown on 10.28.15 at 9:24 am
#128 TurnerNation — “Vancouver viaducts to be removed, votes council. City councillors voted 5-4 to remove the city’s viaducts after hearing from dozens of speakers”

Well, the two municipal political parties are the New Power Generation and the Visigoths. What did you expect?
——————————-
i’m still trying to see how putting a ‘highway’ at ground level, where the pedestrians are , versus up in the air where there are no people, is not going to be directly responsible for many traffic deaths in the coming years.

the cars already sit and spew for 5-6-7 reds to enter d/t since gregormoonbeam axed the dunsmuir lane , so it’s half choked off already.

btw – east van 33′ teardown new record 1.36M fast sale.

#181 45north on 10.28.15 at 2:10 pm

24 Sussex: $10 million is to be spent to fix 24 Sussex – the Prime Minister’s residence in Ottawa.

I agree with William Watson: For $10 million you’d think they could tear the thing down and re-build an exact replica, but with modern insulation, heating, helicopter pad and all-season backyard rink.

http://ottawacitizen.com/opinion/columnists/leave-24-sussex-to-reality-tv

There were two letters in the print edition of the Ottawa Citizen. The first by Cathy Haley: Why waste millions on fixing things? It’s more lipstick on a pig. The second by Michael Glover: Generally it is only when a series of interrelated improvements are simultaneously carried out to both the building envelope and the HVAC system that it is technically feasible and cost-effective to achieve a radical improvement in energy efficiency. Michael Glover has in mind the renovation of 24 Sussex. That would be an enormously expensive proposition. He may not mind but I do.

The most important thing is to have an above-board cost accounting. The $10 million is only a preliminary estimate – it could be double and nobody would be to blame. A team of architects at PWGSC would work for a year just to prepare a design and then there would have to be bids for the individual elements.
http://www.tpsgc-pwgsc.gc.ca/comm/index-eng.html

Once work started, there could be surprises like problems with the foundation, interior walls which were thought to be lath and plaster but are stone. Rafters which were presumed sound but found not to be. The winning bidders are rewarded for finding problems. Whatever. All costs need to be added to the total.

Here’s the wikipedia article:
https://en.wikipedia.org/wiki/24_Sussex_Drive

#182 Ralph Cramdown on 10.28.15 at 2:12 pm

Once again, Lacker the only dissenter in favour of raising rates. Those meetings must be a blast. Here’s what I’m picturing:

https://www.youtube.com/watch?v=0jxVnlRdelU

#183 Nora Lenderby on 10.28.15 at 2:17 pm

#133 Nagraj on 10.28.15 at 9:11 am
And 70% of Canadian travellers wouldn’t be caught dead in a Harper Airport.

Only because it might be in Calgary, though.

So, no “Mrs. Harper’s Diary” entry today?
Nothing from the fair Mesdames Trudeau?

#184 Nora Lenderby on 10.28.15 at 2:19 pm

#135 Ralph Cramdown on 10.28.15 at 9:16 am
A species that splits the atom, goes to the moon and begins to tinker with the genetic blueprints for life is no longer a mere product of its environment. This is the Anthropocene Age. We’ve gone meta.

Nicely put, Mr. C. And as for free will, perhaps it is taking the trouble to understand oneself, one’s strengths and weaknesses and take steps accordingly.

Myself, I don’t own a TV. Stopped watching more than 30 years ago and have found myself more productive and less stupid (I was way worse before :-)

And for anyone who hasn’t taken a biology course in 40 or more years, there are some fabulous MOOCs, for example, https://www.edx.org/course/subject/biology-life-sciences

I did one from the lovely Eric Lander (great mustache, Nobel material) a couple of years ago – MITx: 7.00x Introduction to Biology – The Secret of Life; I’d say it was inspirational and perhaps changed my life :-)

#185 Nora Lenderby on 10.28.15 at 2:32 pm

#143 jean on 10.28.15 at 10:11 am
… I will be living here only a few years, but the UK state pension I paid into will be paid to me no matter what country I retire to.

The UK will pay it, but it will not be inflation protected unless you move to the approved list of countries that excludes Canada and the Commonwealth.

You can continue to pay in to the UK pension scheme while you’re away (buying a year’s contribution is not that expensive) to make sure you have a full UK contribution record. Canada doesn’t allow you to do this, so, like me, you will only have a partial CPP.

For more info, there is the Canadian Alliance of British Pensioners.

#186 Hotdogs from Heaven on 10.28.15 at 2:41 pm

Sorry to hear about Carmen’s job loss.

The Financial Post has an article today on all the cost cutting and layoffs of Canada’s banks in the last couple of quarters and going forward into 2016. Thousands have lost and will lose their jobs.

I wrote a few weeks ago that CGI also laid off hundreds in the GTA. Lots of I.T. workers in the insurance, investment and banking industries, but the lion’s share was in banking.

Tata, Infosys, Accenture and IBM Consulting and many other consulting companies in the Information Technology industry are all doing the same.

It’s not that the work is disappearing, it’s just that it can be done much more cheaply from India.

The hollowing out of the middle class continues without a word from any politician of any party.

With home ownership now just above 70% I keep wondering how any of these people will continue to pay all the costs for those homes when this type of financial hit occurs.

#187 Ralph Cramdown on 10.28.15 at 2:43 pm

#181 45north — “The most important thing is to have an above-board cost accounting. The $10 million is only a preliminary estimate – it could be double and nobody would be to blame.”

The most important thing is not to get sidetracked arguing about a mere $10 million project. Assume that whoever heads the department that runs this thing is competent, or replace him/her if not, and worry about the $billion, $10 billion and $100 billion federal budget items.

This is like the board of the Royal Bank spending all afternoon arguing about a $10,000 expenditure. WAY below their pay grade, and it should be below ours, absent any evidence of graft or fraud. Even then, it would only rate a few paragraphs on page nine.

#188 ARP on 10.28.15 at 3:00 pm

Shell to take a $2B write-down on their oil sands’ project.

http://www.marketwatch.com/story/shell-takes-2-bln-write-down-on-canada-project-2015-10-28

#189 cramar on 10.28.15 at 3:00 pm

#170 Holy Crap Wheres The Tylenol on 10.28.15 at 12:58 pm

Where have I seen this before………hmmmmmmmmmm. Oh yes the Avro Arrow. The Arrow death is how I grew up an American. My father and thousands of other aerospace engineers were gobbled up by US companies more than happy to raid the unleashed thousands of highly skilled workers.

http://www.ept.ca/electronics/abandoning-f-35-program-would-hurt-canada-group-says/1003732893/

——————-

One BIG difference though. The Arrow was Canadian designed and Canadian built! That day Feb. 20, 1959 was the blackest day in our post-WW2 history. It was the beginning of the end for Canada as a manufacturing power, and the beginning of our total reliance on the U.S. for military hardware and protection. We would become hewers of wood, drawers of water, and sellers of tar.

One wonders what Canada would be like today if Conservative John Diefenbaker said nuts to the Americans and continued to develop the aircraft. Maybe we could even defend our own Artic.

#190 TurnerNation on 10.28.15 at 3:39 pm

Bdy sktn. Until new tighter carbon and emissions and mpg regs come. Then, only Tesla Apple and Google cars will be allowed.

Remember Cash for Clunkers in US? With a pen stroke our lives will be changing soon.

#191 Alex G. on 10.28.15 at 4:00 pm

@ #118 Van Isle Renter on 10.27.15 at 11:57 pm

Garth is right, the LTT on a $1M property is $32.2K. Here,s see for yourself: http://www.ratehub.ca/land-transfer-tax

#192 Market Man on 10.28.15 at 4:05 pm

The extra land transfer tax did nothing to curb
Toronto.
It’s all about the carrying cost!

#193 Bye-bye Bank Dividents on 10.28.15 at 4:05 pm

DEUTSCHE BANK scrapping the dividends for 2015 and 2016:

https://www.db.com/ir/en/content/ir_releases_2015_5064.htm

#194 turn of the tide on 10.28.15 at 4:12 pm

Great post! I learn more from the greaterfool everyday! At first the advice was shocking but as I read along it makes more and more sense and now I am working hard to learn more about investing and building a diversified portfolio.

Even got to change my woman’s mind about buying! Could not have done it without you, Garth! Thanks!!

#195 Holy Crap Wheres The Tylenol on 10.28.15 at 4:24 pm

#176 You know you’re a delusional suburban idiot when… on 10.28.15 at 1:31 pm
What a ridiculous example of real estate delusion and NIMBYism.
Brampton just voted last night to REJECT a provincially funded LRT system that would have seen them finally get strategically connected to Toronto.
Apparently people thought it did not “make sense” to have the line go through “the main part of town” (where else – wtf??) where some thought the heritage value of their real estate might be affected. (Including Bill Davis, former tory premier. He makes Hazel seem youthful. Arggh.)
So instead, on a binding vote, they bite the hand that feeds, since it’s by law this choice or none else.
Suburban idiocy at its finest on display.
I recently drove through Brampton (quickly, thankfully)
What a god-awful suburban wasteland it is. Horrid traffic, and idiot car-racers everywhere.
I now vote Brampton as the first to be hit by the GTA real estate meltdown when it happens in the next couple of years. It will be crushing there, because there is so little “there” there.
Way to go, 905ers! You can all go to Costco to celebrate, woohoo!!!
Spend all your real estate “equity”, LOL
_____________________________________________
Yep drove through there last week, lots and lots of newbies driving their souped up little Hondas that are so low to the ground they scrape the backs of ants. The whole area has become a cesspool. Ghetto-ism at its best. As soon as some idiot arrives off the plane they gravitate to Brampton and buy a home. Then they buy another and another. Price not an issue, it is so affordable for two families to purchase a large home. It wont be a meltdown for Bramptoinians as they dont care about meltdowns.

#196 Patrick on 10.28.15 at 4:52 pm

#176 You know you’re a delusional suburban idiot when… on 10.28.15 at 1:31 pm

#195 Holy Crap Wheres The Tylenol on 10.28.15 at 4:24 pm

I don’t imagine Brampton will be first. If there is one city in this country where real estate is benefitting from immigration…it’s Brampton.

The 3 families living in one townhouse will be able to expand into 3. Luxury living.

#197 The Other Chris on 10.28.15 at 5:01 pm

One sad thing about the Avro Arrow is that part of the reason it was cancelled was because allegedly there was to need for high-speed interceptors after ICBMs were developed.

And now the whole reason we’re buying new planes is because we want to be able to intercept Russian bombers doing patrols over arctic territory to which we claim sovereignty. We could even be using the Avro Arrow!

#198 Rexx Rock on 10.28.15 at 5:04 pm

Rockin times are here again.We all knew the fed weren’t going to raise rates!!They can’t but they keep saying will and that’s good enough for everyone to pretend end extend baby.If the stocks take another pummelling,don’t worry the plunger team will come in and fix it pump it up!!So keep riding the 7 year wave because its all there is and real estate.

#199 Nemesis on 10.28.15 at 5:47 pm

#WhatTheyDid,Or… #DeterministicRepublicansLament… #TheirGreenRoomAllotments

[Politico] – Campaigns erupt over greenrooms at third GOP debate: Aides to Chris Christie and Rand Paul complain their work spaces look like bathrooms.

…”Trump was granted a spacious room, complete with plush chairs and a flat-screen TV. Marco Rubio got a theater-type room, packed with leather seats for him and his team of aides. Carly Fiorina’s room had a Jacuzzi.

Then there was Chris Christie, whose small space was dominated by a toilet. So was Rand Paul’s.”…

http://www.politico.com/story/2015/10/campaigns-gripe-over-greenrooms-at-third-gop-debate-215226

#BonusWhatTheyDid… #YetFurtherProofOfFreeWillies..

[Salon] – Nutscaping, the latest selfie trend: Dudes shoot their balls inside beautiful landscapes — because they can

…”Of their appeal, Philbrick told Mashable, “I believe Nutscapes has great artistic depth because it touches upon both a low-brow vulgarity and a high-brow concept. Simply, testes are f*cking funny. Always have been; always will be. They add humor to a subject matter, landscape photography, that is typically a little dry.” And let’s face it—when so much of the news is atrocious, who can resist laughing at someone’s balls dangling in the open air?”…

http://www.salon.com/2015/10/28/nutscaping_the_latest_selfie_trend_dudes_shoot_their_balls_inside_beautiful_landscapes_because_they_can/

#DynamicStochasticExistentialismForDummies,Or… #Yes,TheMediumReallyIs… #TheMessage…

https://youtu.be/sXJ8tKRlW3E

#200 45north on 10.28.15 at 6:33 pm

Ralph Cramdown: The most important thing is not to get sidetracked arguing about a mere $10 million project.

okay let’s talk about Shared Services
http://www.ssc-spc.gc.ca/index-eng.html

Net cash provided by Government of Canada 1,593,765 (in thousands of dollars)

but the chart Statement of Operations and Departmental Net Financial Position (Unaudited)
For the Year Ended March 31
seems to have repeated the column for the year 2014. Confusing.

I seriously doubt that it’s any more efficient than individual IT departments.

#201 Bytor the Snow Dog on 10.28.15 at 8:27 pm

Did somone say “Free Will”?

“Freewill” By Rush

There are those who think that life has nothing left to chance
A host of holy horrors to direct our aimless dance

A planet of play things
We dance on the strings
Of powers we cannot perceive
‘The stars aren’t aligned
Or the gods are malign…’
Blame is better to give than receive

[Chorus:]
You can choose a ready guide in some celestial voice
If you choose not to decide, you still have made a choice
You can choose from phantom fears and kindness that can kill
I will choose a path that’s clear
I will choose freewill

There are those who think
That they were dealt a losing hand
The cards were stacked against them
They weren’t born in Lotusland

All preordained
A prisoner in chains
A victim of venomous fate
Kicked in the face
You can’t pray for a place
In heaven’s unearthly estate

[Chorus]

Each of us
A cell of awareness
Imperfect and incomplete
Genetic blends
With uncertain ends
On a fortune hunt that’s far too fleet

[Chorus]

#202 Ret on 10.28.15 at 9:43 pm

#143 -“I am curious though. Why would senior Canadians not be entitled to collect their old age pension if they move away.”

1. This isn’t Britain
2. You have not paid into OAS like you have to CPP.
3. Your fellow Canadians who are giving this payment to you kinda would like you to support businesses here and for you to pay some taxes to support this country.

#203 AB Boxster on 10.29.15 at 10:21 am

Interesting article on Sweden.

Bank account saving rates now negative. (-.35% today) Meaning, if you have cash in your account, the bank can charge you for saving it.
Not actually doing so yet, but there is little to stop them if they decide to.

Take your cash and run?
Well, problem is that Sweden is almost cashless and have almost eliminated cash.
So, guess what?
You can’t take your cash out.

Good case for gold.
Not as an investment, but as a capital preservation vehicle.

The global financial system is a mess.

http://business.financialpost.com/business-insider/people-in-sweden-are-hiding-cash-in-their-microwaves-because-of-a-fascinating-and-terrifying-economic-experiment

#204 vancouver poorboy on 10.29.15 at 3:57 pm

Federal audit takes aim at money-laundering
real estate transactions in Vancouver area

http://chinawatchcanada.blogspot.ca/2015/08/federal-audit-takes-aim-at-money.html