Pooched (again)

POULI modified

Remember two years ago when this blog told all you little beavers to lighten up on maple? May you never doubt again. We’re now in a made-in-Canada mess.

Look at survey results published Monday in what used to be the economic powerhouse of Canada, now the Socialist Republik of Alberistan. Two-thirds of Albertans say oil is wrecking daily life and 45% claim to be personally affected. Over 60% have reduced spending, a quarter have stopped saving and a fifth are already raided their nesteggs. Forty per cent have had their salary frozen and 19% have been punted entirely.

“It’s clear Albertans are feeling the pinch right now,” said Chris Turchansky, president of ATB Investor Services, in a fit of clarity.

But it’s not just Alberta. It’s everywhere – or on the way. “The negative effects of the oil price shock are increasingly spreading beyond the energy-producing regions and sectors,” the Bank of Canada said this week. “Weak commodity prices pose significant challenges for many businesses.”

Oil’s crashed again. It was down over 6% last session, and sits at $31. Suddenly a prediction from Morgan Stanley that crude could go all the way to $20 doesn’t look so goofy. Low oil means a low dollar, too. It seems ripe to slip below 70 cents US in the next day or two. All of a sudden testing its historic low in the 62-cent range doesn’t seem so crazy, either.

Without actually saying so (which would make it happen), the Bank of Canada is signalling we’ll likely slip back into recession. Businesses are investing less, people are getting booted from their jobs, exports are falling and, says the Conference Board, consumer confidence is limp – at the lowest level in two years. It’s all happened just after Canadians, in their wisdom, elected governments in Alberta and Ottawa committed to higher taxes and saving the planet.

So, expect a central bank rate cut, maybe even next week. As stated here before, it will be about the worst news possible for homeowners, especially those who have recently bought into the GTA or YVR. There’s only one reason rates would drop here as they are rising in the US – and it’s not good. Bank of Canada boss Poloz calls this “a seismic shift” that could last half a decade, dash the dollar, swell inflation while draining fifty billion out of the economy. He’s paid to make you feel better, so imagine the real story.

Like I said on the weekend, hoard cauliflower!

Bay Street’s in a funk, since an oil selloff hits Canada hard. Meanwhile Chinese stocks have plopped suggesting demand from that country for the stuff we dig up and sell will fade further. Hard hit have been those investors with a home-country bias, who have let financial advisor stuff their portfolios with ‘high-quality’ Canadian stocks.

Time to face facts. We live in a country with an economy anchored by the resource sector combined with real estate. The low dollar means more inflation and less family cash flow. Weaker business investment means fewer new jobs. Falling stocks and mutual funds hurt savings and our sense of security. It all ends up wounding confidence – as the Conference Bard already discovered.

Will cutting interest rates make a difference?

Sure. That should guarantee a lower currency, higher consumer prices and less money every month for most households already shouldering record debt. For five years now everyone has been warned that excessive borrowing makes them vulnerable to an economic shock. So, here’s a shock. And people are still in denial. Worse – soon it will be rutting season. More people staggering into houses to ‘beat’ the new down payment rules or because they heard rates are falling. Risk on.

What to do?

First, ignore markets when they’re gyrating and volatile. You can’t do anything about it. History shows that 73% of the time markets advance annually and with a balanced portfolio, that rises to 90%. So if things go to hell for a few months, let ‘em rip. The odds are with you. Doing nothing is the best strategy.

Second, don’t sell. In fact never make investment decisions when you’re scared or horny. Doesn’t end well. After all, if you don’t sell you don’t create a loss.

Third, the world still runs on oil. And copper. Zinc, aluminum and grain. Commodities are in a weird, nonsensical slump at a time when the global economy is actually growing. Logic tells us there will be a big snapback down the road. Why would you want to miss that?

Fourth, use the tools you have been given. All of them. Top up the TFSA ($5,500 this year) and get it invested in growth assets like equity-based ETFs and tasty preferreds, now on sale. Invest in your RRSP, which can net you a huge tax refund if you happen to be one of the doctors that T2 has declared war on. Where else can you put $25,000, invest it for tax-free gains and get ten grand back on your tax return?

Fifth, if you’re feeling unloved at work and think you may be thrown overboard, prepare. Stop buying stuff. Shovel money into your RRSP to get a break now so you can collapse it tax-free when you’re out of work. Invest any pension money you’ve accumulated, maybe inside a tax-free LIRA.

Finally, could there be a better time to cash out of real estate than when prices are still stupid and yet the economy’s pooched? Remember that houses are like any other asset – when everybody wants out, prices fall and buyers get rare. Ask a seller in Calgary how that feels. Ask if they wish they hadn’t waited.

313 comments ↓

#1 zedgt87 on 01.11.16 at 6:13 pm

First!

#2 Doug t on 01.11.16 at 6:13 pm

First

What brought the “firsters” back? — Garth

#3 k on 01.11.16 at 6:13 pm

Good work Garth !

#4 Doug t on 01.11.16 at 6:13 pm

Keep your powder dry folks – with oil possibly heading to 20 bucks a barrel the beaver buck is gonna keep sliding – China is going back to the Stone Age after attempting to copy the U.S. for the last few decades – and the McJobs that everyone keeps saying are contributing to a strong Amerika ain’t gonna carry their economy – soooo what’s one to do?

#5 Oil Crasher on 01.11.16 at 6:14 pm

Oil zapped again – soon to hit property…

#6 Where’s my Fibonacci retracement? on 01.11.16 at 6:15 pm

the ‘market’ spring is really being compressed this time….

but from RBS (a BANK!) (via The Telegraph);

“RBS has advised clients to brace for a “cataclysmic year” and a global deflationary crisis, warning that major stock markets could fall by a fifth and oil may plummet to $16 a barrel.
The bank’s credit team said markets are flashing stress alerts akin to the turbulent months before the Lehman crisis in 2008. “Sell everything except high quality bonds. This is about return OF capital, not return ON capital. In a crowded hall, exit doors are small,” it said in a client note.”

it sounds like RBS has joined the ‘Doomer’ camp…makes me wonder who else has joined?

what’s up with this drivel GT? they simply need to advise a ‘balanced portfolio’ and keep a long term outlook.…

#7 quicksilver on 01.11.16 at 6:15 pm

well this is a first

#8 Penny Henny on 01.11.16 at 6:16 pm

Yabba dabba doo. First again?

#9 Nick on 01.11.16 at 6:16 pm

First!

#10 Frank R on 01.11.16 at 6:18 pm

“That the world has turned its economy into a gigantic Ponzi scheme is surely beyond doubt. There seems no other way to describe a system that, as well as being massively indebted, can only function by adding yet more debt. The big problem isn’t so much the debt mountain itself as the inability to function without an uninterrupted diet of new credit.”

#65. The Ponzi economy, part 1

https://surplusenergyeconomics.wordpress.com

#11 JSS on 01.11.16 at 6:18 pm

“Doing nothing is the best strategy.”

I’ve used the above mentioned quote in my personal life many many times, in all sort of things.

And, yes, it does work!

Even in the investment management world too, I guess!

Over time, it will all even out.

#12 Rick on 01.11.16 at 6:19 pm

First!

#13 Dash pilot on 01.11.16 at 6:19 pm

I’m not buying a truck……. First?

#14 Godth on 01.11.16 at 6:21 pm

Pulis, or is it a Komondor(?), are Hungry-ian.

The Great Forgetting
http://www.truthdig.com/report/item/the_great_forgetting_20160110
David Bowie – Hallo Spaceboy
https://www.youtube.com/watch?v=sjYHTCR0qBk

#15 Penny Henny on 01.11.16 at 6:21 pm

So Garth, I have a question. From the sale of a property this spring I expect to have another $220,000 or so to invest. Wait it out?

Wait for what? Higher prices? That would be illogical. — Garth

#16 Bacon Magnum on 01.11.16 at 6:23 pm

Furst!

#17 Penny Henny on 01.11.16 at 6:24 pm

#2 Penny Henny on 01.11.16 at 6:21 pm
So Garth, I have a question. From the sale of a property this spring I expect to have another $220,000 or so to invest. Wait it out?

Anyone else want to weigh in on that one.
Or I could wonder What Would Mark Do, WWMD, and do the opposite.

#18 kommykim on 01.11.16 at 6:26 pm

Doom and Doomer.

#19 Penny Henny on 01.11.16 at 6:26 pm

#9 Penny Henny on 01.11.16 at 6:21 pm
So Garth, I have a question. From the sale of a property this spring I expect to have another $220,000 or so to invest. Wait it out?

Wait for what? Higher prices? That would be illogical. — Garth
//////////////////////////////
Actually I was thinking wait for a sign that we have stopped dropping.

You know it when prices are higher. Trying to time this perfectly is futile. Amateur mistake. — Garth

#20 Doug t on 01.11.16 at 6:26 pm

Spock is that you?

#21 Smoke n mirrors baby on 01.11.16 at 6:26 pm

Jim makes some good points here.

http://www.silverdoctors.com/jim-willie-double-barreled-hidden-q-e-to-infinity/#more-62312

#22 Nick on 01.11.16 at 6:26 pm

I’m going home tonight to watch documentaries of The 1930’s Great Depression.

I highly doubt QE#4 is on the way. At least nothing with substance.

#23 ROCK BEATS PAPER on 01.11.16 at 6:26 pm

Canadian Western Select hit USD $16 per barrel!

#24 Bananasan on 01.11.16 at 6:27 pm

This is a Public Announcement Service: the Maple Only Rightwing Nutbar Association is extending membership to many qualifying commentors on this forum. Your welcome kit includes butt RFID chip with inserter, cow nose ring with unique serial number and a triple tin-gold-lead hat. Submit your comments portfolio to risk being awarded an evening with Stephen (yes, that Stephen) in his closet (you must wear the nose ring). Fear not, Smoky does not qualify for membership.

#25 Hawk on 01.11.16 at 6:29 pm

I guess the one question I have is that how low should Maple go, before Maple is attractive?

I am beginning to think its already looking cheap but it does also look like the TSX will go below the 12,000 mark.

What’s the consensus on this?

#26 Nick on 01.11.16 at 6:30 pm

Penny Henny:

Wait it out. Markets go down really fast but up very slow. Just calculate the slope of any chart. You have plenty of time to catch the upside.

#27 kommykim on 01.11.16 at 6:30 pm

RE:

#17 Penny Henny on 01.11.16 at 6:24 pm
From the sale of a property this spring I expect to have another $220,000 or so to invest. Wait it out?
Anyone else want to weigh in on that one.

Dollar cost average yourself in at a rate that you are comfortable with.

#28 gotcha... on 01.11.16 at 6:31 pm

#11 ““Doing nothing is the best strategy.”

except in bed dear….

#29 SJF in 312 on 01.11.16 at 6:32 pm

Here in downtown 312, I priced a head of cauliflower on sale for $1.25 USD. No need to hoard here.

#30 Harbour on 01.11.16 at 6:34 pm

Wait for the 10 – 15 % blowout (capitulation) then back up the truck

#31 betamax on 01.11.16 at 6:39 pm

What brought the “firsters” back? — Garth

Your misguided tolerance of this practice.

#32 Retired Boomer WI on 01.11.16 at 6:40 pm

No reason to sell everything! Might be time to lighten up a bit with the equities until China settles down a bit. Europe is hardly booming. As for the small caps, uh they have had a bad run, but maybe about done.

Earnings season is here. So, let us see what that brings.
I don’t see where Bonds are ‘dropping’ the 10 yr aded 3 ticks today.

Dam, that ‘little voice’ said lighten up on equities in late Dec. but did I listen? No… Dumb Ass!

Lesson learned -again! Now to ride this pig out, who knows where it goes? One thing noted, it could only be uglier in Canada. (sorry, but accurate)

#33 Gulf Breeze on 01.11.16 at 6:41 pm

Garth,

There are Silicon Valley and Seattle tech firms anxious to capitalize on the weak Canadian dollar by moving up here….or at least opening branch offices here.

The movie industry in Canada is high fiving.

What kind of shape would we be in if we had a higher interest, stronger dollar economy, right now. I shudder to think.

As far as Alberta goes, do you really think that all those people laid off,fearing layoffs would prefer to continue living in a version of Ayn Rand Hell? Things would be MUCH worse if Von Mises types were in charge right now.

We need Keynsian policy, now and we need it on steroids. It’s what helped pull the U.S out of their Depression.

#34 Deidre McApplebaum on 01.11.16 at 6:44 pm

#9 Pennny Henny

Invest it in blocks like dollar cost averaging, but just invest it on the down days..you’ll always be buying low and lower and lower..so invest some, keep some powder. Why does everyone always think it has to be all or nothing?

Also, yea 2 years ago it was good to sell maple. Now it’s down a tonnage. Probably smart to add in dribs and drabs at this weak point. Not saying to go all in TODAY..but to ease in gently cause yea you could miss these good entry points.

And final point..enjoy your money, never know how long you will be here. Enjoy some Bowie with your family and friends!

#35 james on 01.11.16 at 6:44 pm

Yes, you could do all this saving stuff.

OR you could buy a condo next to UWaterloo and Canada’s powerhouse innovation hub!!!!!

http://districtcondos.realestateemailservices.com/

Pimped by some guy from Dragon’s Den!

In Silicon Valley ‘Desire2Learn’ is known as ‘Desire2Leave’, because of all the people we interview trying to get out of that company. And that’s the top gun in Waterloo right now.

#36 Random on 01.11.16 at 6:44 pm

With all due respect Garth, I don’t think it is time to load up on financial sector preferreds. If/when Canadian real estate bubble detonates, Canadian bank shares will be seriously hit. I would guess, later in 2016, there will be excellent time to buy that stuff on sale. Just not yet.

Oil and other resources – volatile, but with great upside with 2-5 year horizon.

#37 Joshua on 01.11.16 at 6:45 pm

Mr. Turner,

The only problem with lightening up on Maple is that it essentially goes against every index investors principles. Equal allocation between equities combined with bonds makes a portfolio diverse and less volatile.

If one were to rebalance in their TFSA or RRSP wouldn’t it be prudent to sell off US indices in order to purchase a TSX index since it’s essentially on sale? Or use new monies to top up your Canadian allocation?

While I admit weighting more towards the US may seem like a logical decision right now, what if Saudi and Iran get into it? Or if God forbid N. Korea hits Seoul? Energy will dwindle quite quickly and having a balanced portfolio between the US, International and the greatest country in the world makes sense.

BTW, thanks again for the free education.

#38 Gulf Breeze on 01.11.16 at 6:45 pm

Henny Penny

1/3 American dollars
1/3 gold for safe haven
Invest the other third in oil companies, outside of Canada when it hits 20.00 per barrel.

#39 Nemesis on 01.11.16 at 6:46 pm

“It all ends up wounding confidence – as the Conference Bard already discovered.” – HonGT

#I’veAlwaysWantedToMeetTheBard…

https://youtu.be/o_KXbKa2crI

#40 prairiegopher on 01.11.16 at 6:47 pm

Nothing to fear in Albertastan, Aunti(e) Oil is here to take care of us.

#41 Smartalox on 01.11.16 at 6:49 pm

What has brought the ‘First’-ers back?

Layoffs, I bet. Or maybe a bunch of idle realtors with little better to do but while away afternoons hitting F5 on their keyboards, waiting for the last of their comments on yesterday’s blog to be published.

And… ‘F5’!

#42 Baz on 01.11.16 at 6:49 pm

Garth, is it a good idea to buy OIL etf now ?

#43 Kreditanstalt on 01.11.16 at 6:50 pm

“Finally, could there be a better time to cash out of real estate than when prices are still stupid and yet the economy’s pooched? Remember that houses are like any other asset…”

Huh? Cash out of…what? Real estate?

Don’t you mean “STOCKS”? And by extension ETFs…?

#44 Mark on 01.11.16 at 6:52 pm

“Top up the TFSA ($5,500 this year) and get it invested in growth assets like equity-based ETFs and tasty preferreds, now on sale.”

Preferreds in a TFSA or RRSP? Doesn’t that contradict nearly all the wisdom out there that such investments should be non-registered on account of the dividend tax credit?

#45 Smoking Man on 01.11.16 at 6:55 pm

Holly crap, the pic.

A Jamaican Poodle. I want one.

#46 Dave on 01.11.16 at 6:58 pm

#16 Henny Penny

If this situation is anything like pre Lehman back 8 years ago….the TSX index fell by nearly 50%. I don’t think it will drop that much…however, the situation in Canada is ugly with commodities..and soon wide-spread housing issues coming…

Garth is right, you cannot time the market…however, and this is just what I would do…I would invest one third now…in a mix that Garth has described here many a time….IF the markets continue to fall, perhaps invest another third in a month’s time….then…if the markets continue to fall…invest the rest a month or two after that.

Anyways, that’s just what I would do.

I completely divested from Canadian equities 15 months ago…I thought I was early in doing so…and I was…just I waited it out and today I’m glad I did what I did. I invested in longer term quality gov’t bonds….I’m up 4% past 52 weeks, whereas would have been down 6.5% had I stayed in Cdn equities.

I’m contemplating taking out a big heloc if the market sells off 40% from highs (15,500 for TSX). Thoughts Garth? I’d be able to write off the interest against any income…and I’d be getting in at a good time with a long range investment timeline…

#47 Julia on 01.11.16 at 6:58 pm

Found cauliflower at $4.99 on the weekend! Woot!
Crazy to think that’s a deal isn’t it?

#48 Ontario's Left Coast on 01.11.16 at 7:00 pm

Thanks, Garth; this is sound advice at a particularly tough time for many investors and consumers. I, for one, appreciate it. The TSX has just had it’s ninth (?) straight day of losses and (while I’m well diversified in my taxable and registered portfolios) it’s pretty tough to watch. Much appreciated.

#49 mark on 01.11.16 at 7:04 pm

Preferred shares down over 1.5% BMO Rate Reset Laddered Preferred. Entering a almost 52 week low.
Share Price offering when launched was $15 Dollar/Share
now $9.52 at close.

http://www.theglobeandmail.com/globe-investor/markets/stocks/summary/?q=ZPR-T

#50 Julia on 01.11.16 at 7:07 pm

“…get it invested in growth assets like equity-based ETFs and tasty preferred”

XPF and CPD are on sale but too maple? Other suggestions?

#51 First in Vic on 01.11.16 at 7:09 pm

First, Commodities have only one way to go eventually up, timing the markets will be Garth’s next adventure.
Second, we will see our wonder house horny Canadian friends enjoy more negative growth.
Third, stock are down Boxing Day is twice this year.
Renting isn’t a poor mans way of life but a smart choice if you’re looking for freedom 55.

#52 Sanj on 01.11.16 at 7:09 pm

Don’t hate on the “firsters” they are entertaining and add to the pathetic company here. This is a place of refuge for all (most ?)

#53 Rexx Rock on 01.11.16 at 7:09 pm

Whats happening in Alberta is basically,”honey pack the bags we’re moving to the land of milk and honey”,meaning Toronto or Vancouver.The migration to these cities is staggering and will only get worse.So make the move if you have to now.

#54 Freedom First on 01.11.16 at 7:14 pm

I excel at doing nothing. Only because I can.

The Universe, Karma, Creator, God, call it what you want, but the fact is, the harder you try to grab, seize, manipulate, smother, control, own anything, the slipperier it will get. There is Principles to live by for everything to do with life. They are all very very simple. Consistent practice of them will make life much much easier. Or, you can operate out of your mind. Like most people.

I know I will never Master any of the Principles, but learning as much as I can about all of them and trying to live by them the best I can has made all the difference.

Everything is simple, but not easy to do. Human nature. People want what they want when they want it. Like little children.

#55 jaybee on 01.11.16 at 7:15 pm

I enjoy reading the comments on this blog. Except for Mark’s of course. He talks like he knows what he is talking about, but we all know he is a charlatan.

I know I can just skip his posts, but sometimes it’s like watching a train wreck. I can’t look away. Too bad you couldn’t just block him or filter him.

I picture a millennial living in his parents with a really nasally and annoying voice. I wonder if I’m close.

#56 Julie K. on 01.11.16 at 7:18 pm

Officially declaring myself a mugwump and proud of it.

#57 Why Why Jay on 01.11.16 at 7:19 pm

@#44 mark

If you have space in your tfsa or rrsp, then it’s fine to have dividend yielding items in there. If you are maxxed out on registered accounts then you’ll want them in your taxable investment account (for the tax efficiency).

@gulf breeze

Gold? Bahahahahahahahahaha.

#58 How safe are the banks? on 01.11.16 at 7:19 pm

Where is the best place to keep loads of cash and cash equivalents? CAD, USD, EUR, CHF accounts?

With bail-ins now globally legislated as a means to protect the nations..

FYI that USD train is looking awfully crowded. EUR is holding up pretty well also…. BUT Merkel’s days are numbered and when she goes, the EUR blows BELOW parity in a flash.

Only thing holding up the EUR from crashing severely is Merkelstan and the banks know it.
With all the migrant related problems they’re having in Germany now, it is a toss up though. Merkel is a liability and a guarantor for stability.

Give it another 20 days max. Early February is her dooms date.

#59 nonplused on 01.11.16 at 7:22 pm

“19% have been punted entirely”??? Then why isn’t Alberta’s unemployment rate north of 19%??

From my own anecdotal experience I would say the unemployment numbers in Alberta are definitely way understated but I think the actual number is somewhere just a little higher than 10%. Some of those people will probably never return to the workforce as they are closer to retirement age than the likely length of this downturn (which I think has at least 3 more years to run). But either way I think the official number is way behind reality. I don’t think we are at 20% yet though either, although maybe it’s coming.

Even at 10% the new Nutley plan for Alberta is in severe trouble. You can’t tax unemployed people. Well I guess that’s not true anymore with the new carbon taxes (the tax on everything), if the unemployed want to heat their homes, power their laptops so they can look for work online, or buy food now they will be paying taxes. Still all that will do is hasten the day they run out of money and have to fall back on the food bank (which of course also pays carbon taxes both embedded in the food cost and also for heat and electricity, fuel for their staff to get there, etc.)

I wonder if they will put a tax on cows for emitting too much carbon. It shows the ridiculousness of it all, as most cow-carbon comes from grass, which is pretty close to being in the atmosphere anyway. Take the cows away and you just get more grass fires. It just goes to show the low level of thinking we’ve come to about such issues. Worldwide, termites exhaust more CO2 and methane than cows do, but we aren’t waging a war on termites (unless they are in your house of course). And if we are all concerned about cow-gas, what about deer? Are we saying deer don’t fart? Fact is any animal mass is busy converting “close carbon” to “liberated carbon”. Should we kill everything? Why not have the carbon conversion make tasty burgers if it’s going to happen anyway?

The largest animal mass on the planet and therefore most likely the largest source of CO2 is, wait for it, ants. Sure a single ant is pretty small, but the amount of them there are is mind boggling. Why aren’t we taxing all those little ant farts? If we could get them to pay, the total revenue stream here is mind boggling. Nobody else would have to work anymore, we could close all the factories, and with commuting and factory work thus reduced so much the impact of humans on CO2 would be greatly diminished.

This is the sort of outside the box thinking that is needed to move the NDP agenda forward: Taxing ants and termites for their CO2 footprint. Maybe wasps too because I hate those little bastards. Let’s double tax wasps and hornets because flight is not as efficient as ground transport. Not bees though, bees are our friends and should get an exemption.

It’s a survey result, not a labour stat. — Garth

#60 Capt. Obvious on 01.11.16 at 7:24 pm

Man, I’m glad I work for a foreign multinational at times like these. Sales in Europe have been good lately.

#61 Scumop on 01.11.16 at 7:24 pm

Fascinated by cauliflower price, I found out that grocery stores have been taking RealTroll (tm Scumop) lessons.

First, its 6.99 each, not per kg.

How much does a cauli weigh? Ha! The stores no longer have scales.

So when you toss some apples or other lose product in a bag you will have no idea what they cost until you are in the checkout (pretty much committed) and unlikely to say no.
Hiding the prices – a RealTroll lesson learned.

I compared by hand a 1kg bacon with a cauli and guess maybe 800g so $8 to $9 per kg.

#62 MF on 01.11.16 at 7:28 pm

Meh,

Don’t even look at my maple anymore. Down thousands here thousands there.

Sold some US stuff about three weeks as part of rebalancing. Now I have some cash to invest from hard work over the holidays as well. I am waiting to jump back in but I have to admit I’m hesitant to do anything. Tired of red red red.

Freedom first type paralyzing fear.

MF

#63 old gringo on 01.11.16 at 7:30 pm

Should we be believing these reports?
Quote
“J.P. Morgan Chase has turned its back on the stock market: For the first time in seven years, the investment bank is urging investors to sell stocks on any bounce.”

Guess how they make money? — Garth

#64 Aggregator on 01.11.16 at 7:32 pm

I don't know.. Poloz looked pretty uncomfortable in his latest speech and hearing a central banker explain his outlook on oil by using words like "permanent" and "revenue loss" in same sentence should raise concerns. Plus today's Q4 Senior Loan Officer Survey showed tightenting conditions amongst lenders, which means another rate cut is imminent.

The problem with slashing rates is the risk of headline inflation running above target, which may cause inflation expectations to become 'unhinged' as many central bankers say. Basically what that means is a loss of confidence in the Canadian dollar — something you're all starting to see and read about in the press and social sphere.

And to think the govt wants to start running deficits (expansionary fiscal spending) on top of a crashing loonie while Alberta is selling oil at a loss. If that's the case then the CAD will see a new record low this year, and cauliflower heads towards $10 a head.

#65 For those about to flop... on 01.11.16 at 7:36 pm

#48 Ontario’s Left Coast on 01.11.16 at 7:00 pm
Thanks, Garth; this is sound advice at a particularly tough time for many investors and consumers. I, for one, appreciate it. The TSX has just had it’s ninth (?) straight day of losses and (while I’m well diversified in my taxable and registered portfolios) it’s pretty tough to watch. Much appreciated.

//////////////////////////////
Hey OLC,just wanted to reach out to you.
You seem a little down but I just wanted you to know that although we all have our own mixes of our b and d portfolio most of the time when your winning ,I’m winning too and when your losing I’m getting hit too.
We’ve got a group here that can help each other,bounce ideas of each other and have a laugh even when your portfolio just took a dump.
All the boomers will tell you this is gonna happen a lot before most of us retire,probably even more regularly with globalization so I intend to come here until the boss pulls the pin to support people and in-turn be supported and make as many people laugh along the way as I can.
Enjoy your evening ,you are not alone.

M41BC

#66 crossbordershopper on 01.11.16 at 7:37 pm

in newfoundland, the first shoe will drop in about march, thats when absolutely nothing is coming in even on ei.
then the for sale signs of everything come on, and it will happen fast. the trucks, the quads, the houses, everything, easy come easy go.
the newfies are children yes, but that was a good ride, too bad they thought 40 bucks an hour is normal.
now they will line up for 12 ones. life comes full circle. good luck and god bless all my buddies on the rock, native smokes and cheap beer are in the cards right now. and soon it will be very dear, you will have to move back in with the mother in law.

#67 Nanaimo Bar on 01.11.16 at 7:38 pm

Let the games begin. Down goes Oil. Down goes The Canadian Dollar. OPEC will be booting each other around. The U.S. will be booting OPEC around. This is where it starts to get ugly.

Iranian President Hassan Rouhani said in a speech broadcast live on state television on Monday as he inaugurated new gas projects: “We are hopeful that the sanctions against Iran would be lifted in the next few days.”

http://www.reuters.com/article/us-iran-nuclear-eu-idUSKCN0UP14T20160111

“Just a quick glimpse along the forward curve serves as an endorsement for the ‘lower for longer’ mantra that swirls like a sand storm round the current crude complex,” wrote Matt Smith, director of commodity research at ClipperData. “The December 2016 contract is fast approaching a test of $40, while you have to go out to 2020 to see a price above $50. The furthest you can go out on the futures curve is 2024, and even then prices do not break $54. That certainly is lower for longer.”

http://www.bloomberg.com/news/articles/2016-01-11/today-was-a-wild-day-for-the-oil-market

Garth’s comment “Logic tells us there will be a big snapback down the road. Why would you want to miss that?” This is a key point. Keep your eyes open for opportunities in commodities.

#68 MF on 01.11.16 at 7:39 pm

CPD dropping again. Great. I guess it’s because we are going to drop rates again because of this continued oil Bullchit? HOW does that move help the economy out? Do we not have any other “tools” besides interest rate drops? Who pays these morons to do nothing? What a joke.

Add CPD to my bonds, reit, tsx, pacific, European…and as of Friday, my US stuff. All down since April of last year.

MF

#69 common sense on 01.11.16 at 7:39 pm

Bowie’s dead…a moment of silence for a ground breaker and a true artist in this vanilla world….

#70 Philburt on 01.11.16 at 7:40 pm

The pooch needs a reefer hanging out of his mouth LOL
I ran down my charts OMG. Oil smashed 5 points CRB 2+
Thank god I bought a couple hundred K of USD eons ago and sitting on 85% cash in my accounts. 2.5% interest beats the hell out of another stock market beating. Bear territory now…
Oh and good thing I build Cellular networks and don’t drill holes for energy!
Cells stuff is recession proof!
Peace out!

#71 Rick on 01.11.16 at 7:41 pm

Smartalox,

Not a realtor, not laid off. Retired at 38; in 2004:)

#72 Love this Blog on 01.11.16 at 7:47 pm

#52 Rick.

38? Why did you wait so long?

#73 For those about to flop... on 01.11.16 at 7:53 pm

Geez ,I just read MF,s post.
Maybe I should have included him as well!
You are 32 buddy,the game is just in the first period .
You haven’t lost the game yet ,keep chipping away..

M41BC

#74 Philburt on 01.11.16 at 7:57 pm

#32 Retired Boomer WI on 01.11.16 at 6:40 pm
I posted a chart of the Loonie against the TSX…eons ago
http://jugglingdynamite.com/wp-content/uploads/2016/01/FXC-and-TSX-Jan-8-2015.png
I said GET INTO LOTS OF CASH 5 months ago.
Did anyone listen? Probably not.
As for China settling down…Good luck.
They are in for a currency crisis….don’t believe me??
Put this on the fridge as its GOING to happen…A friend and BEST Hedge fund manager on the planet or at least as good as the best says YES…
My research shows VERY ugly stuff. They have serious internal issues over there. Bailing out their stock market was foolish and wasteful..One should be very defensive these days.
I own USD commercial realestate (Walmarts ect) paying 8-9%
my other 85% will take the 2.5% int. for now
Ill wait it out with a steady pay cheque…Be careful out there folks.
Garth was right to. Canada is one of the worst places to be invested!

#75 wallflower on 01.11.16 at 7:59 pm

Where did you find Rastafutin?

#76 TRT on 01.11.16 at 7:59 pm

Alberta heavy oil hit $16 USD/barrel….about $23 CDN.

What percentage is bitumen as a total percentage of Alberta oil pumped out?

I don’t think crude will drop a further $11/barrel. That would price WCS at $5 ($7/CDN). Oil sands would have to shut down.

I’m thinking 99% probability of rate cut in 9 days. Poloz works in an old school way…he will help his export buddies out bar none. Watch and see.

#77 Chaddywack on 01.11.16 at 8:00 pm

Found cauliflower at $3.99 a head, Safeway West Side of Vancouver!!!

Bought 3, shredded, and frozen. Will sell for a profit in a couple of months. I wonder if this is considered a capital gain?

#78 Smoking Man on 01.11.16 at 8:03 pm

#51 MF on 01.11.16 at 7:39 pm
CPD dropping again. Great. I guess it’s because we are going to drop rates again because of this continued oil Bullchit? HOW does that move help the economy out? Do we not have any other “tools” besides interest rate drops? Who pays these morons to do nothing? What a joke.

Add CPD to my bonds, reit, tsx, pacific, European…and as of Friday, my US stuff. All down since April of last year.

MF
…………………

Well that’s because you don’t listen to me, you have some suspicion about me, they way you were trained. Probably hate that I call the emperor of Israel NutAndYahoo.

Should not stop us from being palls.

No one can compete against the crystal ball of a Nectonite.

There is another race from planet Fagathron
They have the lights and cameras and the perceived credibility. But are always wrong.

Read the crystal ball from Financial Post, BNN, CNBC and all those other mind fking insititutions.

I have about a 95-98% accuracy on my calls, long before they become fashionable. Where the smart can make a killing.

Billionaires come here and hang on my every word, altho they would never admit it.
Not to mention every good bond, and swap trader in From NYC to Toronto.

Hell even CIA, NSA, MOSSAD, CSIS has me under surveillance.

They just can’t figure it out. Even though; clearly , I’m from another planet.

Let it go kid, come join the dark side grasshopper.

#79 TRT on 01.11.16 at 8:03 pm

@Rick 55

Retirement at young age is the worst thing you can do to yourself. Get back at something you enjoy or else it’s all downhill. You can only buy so many things and travel so much. Plus, the working class will be working while your at home if your retired.

Misery loves company. Theyll hate you if you say your retired at 38.

#80 Godth on 01.11.16 at 8:04 pm

#45 Smoking Man on 01.11.16 at 6:55 pm
http://www.ckc.ca/en/Choosing-a-Dog/Choosing-a-Breed/Working-Dogs/Komondor

Is Longbranch ready for one? Is your wife?

Pulis are much smaller but are barking speed demons that need a job too.
http://dogtime.com/dog-breeds/puli

Maybe you should stick to retarded Wyatt, I’m sure he sticks to you.

#81 SWL1976 on 01.11.16 at 8:05 pm

There’s not more lipstick this debt based pig of an economy can take…

She’s just plain ugly

What did people really expect?

If the phoney money printers really did want to save the planet it would be Nobel cause, but to speak of it like it’s shameful is shameful

#82 Mike on 01.11.16 at 8:07 pm

I put 10% below asking offer to a builder home in Calgary. The listed price is at peak value in area(similar to 2014 end).

The builder said they won’t take anything below 3% asking as they can afford it. Oops…. I said see you in few months.

Maybe I’ll try another door but it’s no doom and gloom for builders here yet.

#83 Nanaimo Bar on 01.11.16 at 8:12 pm

# 38 Gulf Breeze

“Invest the other third in oil companies, outside of Canada when it hits 20.00 per barrel.”
—————————————————————-

That is excatly what I am thinking. I have my eye on USO= United States Oil. Etf. Buy in mid February or so. Buy just before the shutdown in Middle East refineries which happens for their turnaround for the summer season. This will cause oil to rise. The refinery shutdowns is the only way OPEC will slow down production. OPEC is dysfunctional.

#84 NoName on 01.11.16 at 8:19 pm

Interesting read

http://www.theatlantic.com/business/archive/2016/01/inequality-work-hours/422775/?single_page=true

#85 Big Oil Still Pays My Bills on 01.11.16 at 8:21 pm

1st….. Who cares about cauliflower, Anybody noticed A&W teenburgers are now 2 for $8, used to be 2 for $6….

2nd….Garth, no comments on the Global News report in 604? with Chinese stocks falling, Chinese money will flock to Vancouver real estate as a safe haven….
Ozzie repeated same on Money Talks, on Saturday.

#86 wallflower on 01.11.16 at 8:21 pm

#76 Chaddywack on 01.11.16 at 8:00 pm
Found cauliflower at $3.99 a head, Safeway West Side of Vancouver!!!

Bought 3, shredded, and frozen. Will sell for a profit in a couple of months. I wonder if this is considered a capital gain?
//////

This is EXACTLY why I come to this blog.

The resilient Canadian Main Street.

#87 Godth on 01.11.16 at 8:27 pm

#78 TRT on 01.11.16 at 8:03 pm

Apparently he’s been dealing with it for 12 yrs., what makes you think he needs your two cents? The protestant work ethic: misery loves company.

#88 Roial1 on 01.11.16 at 8:28 pm

#4 Doug t on 01.11.16 at 6:13 pm
the McJobs that everyone keeps saying are contributing to a strong Amerika ain’t gonna carry their economy – soooo what’s one to do?
———————————————————-
Just got back from deep in the southern States.

The “Mc jobs” are NOT being filled.

This is because better paying jobs are.

I saw lots of help wanted signs every where in the Fort Lauderdale and Miami area. They can’t get applicants.
Seams that the better paying jobs are taking all the help.

Also talking with people from all over the northern states it is also the story. (Snow Birds.)(even Texans)

#89 Philburt on 01.11.16 at 8:32 pm

Smoking Man
And where does one join the dark side?! Or find these calls??
Thanks

#90 espressobob on 01.11.16 at 8:32 pm

ZPR,CPD &XPF prefs

Long term thinking, usually not found in the comment section, generally loose in the short term.

Investing in prefs is a long term hold. Keep buying.

Short term holds are better placed in a ETF like CMR or cash.

http://www.blackrock.com/ca/individual/en/products/239414/ishares-premium-money-market-etf

Don’t invest for the short term! Stay cash if you need it for whatever?

#91 Investorz on 01.11.16 at 8:32 pm

With OIL at 31$, Royal Bank stock at 70$ doesn’t look so attractive anymore, even with a 4% dividend. I’m drawing a line back to 2009 and let’s face it, bank stocks could easily pullback 25%. Let’s be real we’re heading into a crisis zone here.

Add to US ETFs with your Canadian dividends.

#92 Leo Trollstoy on 01.11.16 at 8:34 pm

tech is one of the few bright spots in North America. even in Canada

http://www.techvibes.com/blog/tech-industry-will-be-more-important-than-ever-2016-01-08

there isn’t enough tech employees to go around. banks can’t hire them soon enough cuz they’re taken fast by startups

http://m.thestar.com/#/article/business/2016/01/11/fintech-startups-luring-talent-away-from-canadas-big-banks.html

it’s a good time to be in tech

#93 Smoking Man on 01.11.16 at 8:34 pm

Damn wife has Entertainment Tonight on earlier. That charming host Ben Mulroney.

To watch this show and enjoy it you got to be 13 years old. But sadly shit load of dumb stupid Millennials, teachers pets hang on this shit. Oh and Smokeys wife.

Should I show my wife when Ben and I had words on twitter?

http://dyslexicsmokingman.blogspot.ca/2015/03/ben-mallory-discovers-smoking-man.html

#94 tkid on 01.11.16 at 8:35 pm

Why aren’t we taxing all those little ant farts?

Of all the things I thought I would be doing tonight, googling the above question was not among them.

#95 Mark on 01.11.16 at 8:36 pm

” Chinese money will flock to Vancouver real estate as a safe haven….”

The question to ask here is “what money”. Chinese (and generally Asian/global) deflation implies that there just isn’t money, nevermind money to actually buy RE in foreign lands, especially for top dollar. In fact, there might even be some element of foreign selling in Vancouver to rescue and/or rebalance the portfolios of foreigners. After all, despite Vancouver RE being down from its lofty heights of a couple years ago, it is still dramatically priced above long-term value, and is still reasonably liquid.

#96 Leo Trollstoy on 01.11.16 at 8:40 pm

The low dollar means more inflation and less family cash flow.

unfortunately true. no deflation in canada

#97 Ret on 01.11.16 at 8:45 pm

#81 Mike
‘The builder said they won’t take anything below 3% asking as they can afford it.”

You left him your number. He’ll call. When he does you know that he is really desperate so rip him for some upgrades, stainless and closing fees while you are at it.

#98 mark on 01.11.16 at 8:45 pm

The use of Preferred shares is not compelling in any balanced portfolio according to this White Paper, and the argument can be made it adds more risk with Lower Returns.
Price Drop on BMO ZPR $15 issue price at inception, $9 and change at close today!

http://canadiancouchpotato.com/2015/03/17/does-your-portfolio-need-preferred-shares/

Not what the article says. Try to be objective. — Garth

#99 Daisy Mae on 01.11.16 at 8:46 pm

“….It’s all happened just after Canadians, in their wisdom, elected governments in Alberta and Ottawa committed to higher taxes and saving the planet.”

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

These two governments have been recently elected. Our problems started long before with the previous federal regime…and are just now coming to a head.

#100 WUL on 01.11.16 at 8:46 pm

#75 TRT on 01.11.16 at 7:59 pm

What percentage is bitumen as a total percentage of Alberta oil pumped out?
$$$$$$$$$$$$$$$$$$$

Here is the Crude Oil Forecast info from the Canadian Association of Petroleum Producers. Remember, the Western Canadian Sedimentary Basin (the good old stuff with gushers like Spindletop and Leduc #1) is basically finished.

This document was produced in June 2015. I thought there was a more recent one, but I must be mistaken. It shows historical production and forecasted production levels.

You only have to go into the opening Executive Summary to get a picture of the significance of the heavy sandy goop which we produce up here in the Taiga, which goop is cheap like borscht.

http://capp.ca/publications-and-statistics/publications/264673

#101 For those about to flop... on 01.11.16 at 8:54 pm

Mark# 96 After all, despite Vancouver RE being down from its lofty heights of a couple years ago…

//////////////////////////////
Repeating the same old bollocks doesn’t make it true.
You couldn’t go one day without embarrassing yourself.
Less time reading crap,more time observing.
Shhh…hush little baby ,don’t talk…

M41BC

#102 Daisy Mae on 01.11.16 at 8:56 pm

#2: “First”

What brought the “firsters” back? — Garth

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

Idiocy.

#103 Smoking Man on 01.11.16 at 9:00 pm

#94 Mark on 01.11.16 at 8:36 pm
” Chinese money will flock to Vancouver real estate as a safe haven….”

The question to ask here is “what money”. Chinese (and generally Asian/global) deflation implies that there just isn’t money, nevermind money to actually buy RE in foreign lands, especially for top dollar. In fact, there might even be some element of foreign selling in Vancouver to rescue and/or rebalance the portfolios of foreigners. After all, despite Vancouver RE being down from its lofty heights of a couple years ago, it is still dramatically priced above long-term value, and is still reasonably liquid.
….

Really trying to pencil you into my book, your a big contributr on here, I respect that, those 99% who never post, cowards. Atleased you post.

All the same. Perhaps I can sacrifice a nectonite in my story, after water boarding and 45 lobatamy’s from the authorities you escape.

They find you in a basement consumed with posting on greater fool.

#104 Mark on 01.11.16 at 9:02 pm

“there isn’t enough tech employees to go around. banks can’t hire them soon enough cuz they’re taken fast by startups”

I think you’re confusing hiring with firing. Canada’s big banks are notorious for laying off Canadian IT workers, and replacing them with either foreign professionals (on TFW permits), or outsourcing the functions to firms who do the same.

For example, I’m sure you remember the widely publicized incident a couple years ago with RY and its TFW’s. Well, a similar story has played out at all of the major institutions — its just that the RY workers had the cajones to actually talk about it.

From what I’ve seen and heard, there has been no improvement in the prospects of people attempting to enter the IT sector over the past few years. Don’t confuse the media propaganda, with actual facts. Even south of the border, a good chunk of tech is falling significantly in valuations at the moment, with the so-called “FANG” stocks being mostly what’s been propping up the market.

That is excatly what I am thinking. I have my eye on USO= United States Oil. Etf.

Be very careful with that ETF. Keep in mind that not only are the management fees very high, but also, that it invests in a certain series of futures contracts which have to be rolled at a cost typically. Not only that, but its highly likely that many commodity traders essentially front-run it, meaning that its performance actually ends up being less than a more random trader implementing the same trades.

Chances are, you’ll be much better off, if you believe in an O&G recovery story, to invest in actual O&G companies (ie: a diversified basket). But then again, if you own something like XIU, you already likely have all the O&G exposure you’ll ever need in a portfolio.

#105 Yuus bin Haad on 01.11.16 at 9:03 pm

Wow, my Intro to Web Development class was packed with out-of-work wildcatters tonight! Guess this transition from the resource- to knowledge-based economy is really taking shape. But hey, guys, you can lose the hardhats.

#106 Popeye the Sailor Man on 01.11.16 at 9:04 pm

Those of us in Alberta are Pooched. I’m at least glad I fly out of Alberta for work in a non oil related Job.

Alberta’s oilsands known as Western Canada Select closing at $16.61, down $2.05, its lowest level on record

http://www.cbc.ca/news/business/dollar-loonie-oil-wti-1.3398756

#107 Millmech on 01.11.16 at 9:06 pm

Picked up some cauliflower for $3.49,already going to seed,yikes.Being like all the other blog dogs I will plant the seeds and when they come to fruition I will sell the new cauliflower and declare it as dividend income.

#108 common sense on 01.11.16 at 9:17 pm

It’s official.

World is not coming to an end. Chinese market in positive territory…

For now.

#109 rawdiswar on 01.11.16 at 9:19 pm

“The global economy is actually growing”

Garth, what legalized herb have you been vaping bro? You need better shit, yeeesh. Let me hook you up.

The only thing growing on here is the jealousy of Smoking Man, from people more concerned with spelling Ko-reckly than making money from all this chaos and gnashing of teeth. Same people who voted in JT, opting for a shiny package of total BS rather than something with some substance. A lot of button down, neutered metros can’t see past the glitz and glam.

Too bad for them.

Maybe game recognizes game. Did anyone on here actually take his advice? I did.

My only regret was not taking it sooner. Gotta listen to the voice inside my head more. Not the only one hearing it.

Oh, and David Bowie faked his death as a performance piece. He’ll come back and save us from ourselves. If he doesn’t, someone better.

Lord help us.

IMF 2015 global growth, 3.1%. Google before you type. Cuts down on looking like a dink. — Garth

#110 Philburt on 01.11.16 at 9:19 pm

#89 espressobob on 01.11.16 at 8:32 pm
Why would you buy a money market like that when you can do better at a bank like Tangerine?
They gave me 2% cause I had a pile of cash…
Shop around!

#111 paul on 01.11.16 at 9:20 pm

#98 Daisy Mae on 01.11.16 at 8:46 pm

“….It’s all happened just after Canadians, in their wisdom, elected governments in Alberta and Ottawa committed to higher taxes and saving the planet.”

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

These two governments have been recently elected. Our problems started long before with the previous federal regime…and are just now coming to a head.
———————————————————-
And now the problems will be COMPOUNDED!

F,en Perfect

#112 rawdiswar on 01.11.16 at 9:26 pm

Might look like a dink, but measure the IMF 2015 Global Growth against global debt accumulation?

You don’t think the world added %3.1 debt over GDP globally in 2015?

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

You’re smarter than me though Garth, that’s why I come here.

#113 Why Why Jay on 01.11.16 at 9:27 pm

@#103 Mark

You are confusing grunt IT workers with developers and software engineers. Completely different skill level and difficult to outsource (though Canada is tempting for US companies).

India gets low skill testing and support roles (which work well outsourced). Mexico gets some dev work (remember one big insurance company saying they had their rework down to 20%.. I.e. only 20% of the code had to be redone locally). It was worth it to them by the numbers, have to question the morale implications (sucks fixing other peoples bad code all day).

Hiring a good developer (at least out west) is difficult. Lots of talent poaching. The good people have jobs.

#114 Smoking Man on 01.11.16 at 9:29 pm

IMF 2015 global growth, 3.1%. Google before you type. Cuts down on looking like a dink. — Garth

Love you man, but IMF.

Really

Come the drark side

#115 Nagraj on 01.11.16 at 9:30 pm

I do read Mr. Turner’s missives with great interest and great care. Though a mote it is to trouble the mind’s eye, today Mr. Turner wrote, “Like I said on the weekend, hoard cauliflower!”
If memory serves, what he wrote on the weekend was not “hoard cauliflower” but “hoard cauliflowers”.

You know that “Cabaret” was based on “I Am a Camera” (which was based on “Goodbye to Berlin”). Well, for some reason I have this image of S. Poloz losing it and introducing himself, “Good evening ladies and gentlemen. I am a cauliflower.”

Worse, I see JT screaming [like Hitler in “Der Untergang” (“FEGELEIN! FEGELEIN! FEGELEIN!”)] at Poloz AND Morneau, “You’re just a cauliflower! And you’re a cauliflower too!”

Bay Street will be renamed Cauliflunk Street.

[German for cauliflower is Blumenkohl (the Habsburg word is Karfiol) not to be confused wth Kohlrabi. And you must know the Finnish word is KUKKAKAALI.]

#116 Reg McMillerson on 01.11.16 at 9:36 pm

Buy ETFs that have good income (about 5%) Enjoy the payouts in TFSA, and prosper. How hard a recipe is this to follow? Throw in some really good exercise and family time and home cooked meals and some good music (bowie or others) and your set.

#117 BS on 01.11.16 at 9:36 pm

2nd….Garth, no comments on the Global News report in 604? with Chinese stocks falling, Chinese money will flock to Vancouver real estate as a safe haven….
Ozzie repeated same on Money Talks, on Saturday.

When Chinese stocks fall the money is gone. They can’t go back and sell at last years price. After margin many will have no money left.

#118 Interstellar Old Yeller on 01.11.16 at 9:39 pm

Really terrific post tonight, Garth, thank you. A fantastic antidote for panic.

#119 Big Dipper on 01.11.16 at 9:40 pm

“what used to be the economic powerhouse of Canada, now the Socialist Republik of Alberistan. Two-thirds of Albertans say oil is wrecking daily life..”

——————————————–

Really? You can’t help yourself, and have an uncontrollable urge to insert over the top ideological propaganda? How would you like it if I referred to your party of choice as Fascist?

Meanwhile, while the for sale housing supply in the Calgary area has increased by almost 30% over last year, the asking prices have barely budged. Explain to me, o great capitalist admirer, have the laws of supply and demand been suspended?

First, the NDP is a self-avowed socialist movement. Their label, not mine. Second, Calgary sale prices are calculated from the latest (reduced) listing, not the original asking price or the market price of, say, a year ago. Hence, ‘average’ realtor prices are the amalgam of already-discounted valuations. This ground has been covered here previously. Try to keep up. — Garth

#120 TurnerNation on 01.11.16 at 9:41 pm

Yes Kommunist Kanadians hate jobs and enterprise.
Our Glorious Leader jetted off (privately, natch) to an elite’s paradise in Nevis. Sefies were taken.

This prefecture’s Block Captain outlawed capitalism project:

BC rejects Kinder Morgan’s bid to expand Trans Mountain pipeline
The Globe and Mail – 8 hours ago
British Columbia cannot support Kinder Morgan Canada’s $6.8-billion Trans Mountain pipeline expansion project because the company is not offering sufficient details of its spill-response plans, the government says.
B.C. government comes out against Kinder Morgan pipeline plan The Province
Trans Mountain pipeline project doesn’t meet BC’s five conditions … CityNews

#121 Philburt on 01.11.16 at 9:42 pm

Careful of the banks….
Just click to blow up….and maybe they will….
https://twitter.com/CoryLVenable/status/685197586203021313
I don’t believe a crash is in the cards but yes a sell off…
They ain’t going up that’s for sure.

#122 Hotdogs from Heaven on 01.11.16 at 9:48 pm

#103 Mark on 01.11.16 at 9:02 pm
“there isn’t enough tech employees to go around. banks can’t hire them soon enough cuz they’re taken fast by startups”

I think you’re confusing hiring with firing. Canada’s big banks are notorious for laying off Canadian IT workers, and replacing them with either foreign professionals (on TFW permits), or outsourcing the functions to firms who do the same.

For example, I’m sure you remember the widely publicized incident a couple years ago with RY and its TFW’s. Well, a similar story has played out at all of the major institutions — its just that the RY workers had the cajones to actually talk about it.

From what I’ve seen and heard, there has been no improvement in the prospects of people attempting to enter the IT sector over the past few years. Don’t confuse the media propaganda, with actual facts. Even south of the border, a good chunk of tech is falling significantly in valuations at the moment, with the so-called “FANG” stocks being mostly what’s been propping up the market.
————————————————
AH CRAP!!!

Despite my best judgement I’m going to have to agree with Mark.

I work in I.T. and I can tell you that the layoffs and cut backs that began in 2015 continue unabated. Service companies like CGI, Accentrue, IBM Consulting, Tata, Infosys continue to get big contracts with governments at all 3 levels as well as banks, insurers, investment funds, auto and parts manufacturers, etc… and fill 90% of the positions with Indians.

Some are off shore but many are brought to Canada through a legal loophole called an inter-company transfer. No need for TFWs when you can have PERMANENT Foreign Workers.

Go check out Aviva Insurance in Scarborough. Most of their I.T. is done by Tata consulting and ALL are from India. 200 people, mostly in a huge consulting pen on the ground floor. THAT is not just the future of all I.T. in Canada but the present.

They work longer much cheaper than Canadian workers and live in the apartments around Birchmount and Eglinton so they can walk to work without spending on cars or transit.

#123 to_be_frank on 01.11.16 at 9:53 pm

Canada is certainly facing a toxic combination of problems which Garth has cited. Worse off is Saudi Arabia which has even less to fall back on if its petrochemical based economy implodes, and that is a risk with potentially dangerous repercussions. On the bright side I think there is China, despite all the angst about its falling stock market. A time traveller from 1980 looking at the country today would see huge changes for the better, and their economy, unlike ours, is well diversified. The one-child policy, though now abandoned has resulted in a cultural shift where parents are having few children. The government has taken up the cause of renewable energy and fossil fuel reduction, which are necessary conditions for them to secure a better environment. So in the long term I am hopeful for China’s prospects, and ultimately that will be good for Canada, too.

#124 Leo Trollstoy on 01.11.16 at 9:54 pm

#87 Roial1 on 01.11.16 at 8:28 pm

the poor on this blog don’t wanna hear that the US is BOOMING. makes them maaaad.

#125 Panhead on 01.11.16 at 9:58 pm

#106 Millmech on 01.11.16 at 9:06 pm
Picked up some cauliflower for $3.49,already going to seed,yikes.Being like all the other blog dogs I will plant the seeds and when they come to fruition I will sell the new cauliflower and declare it as dividend income.

Keep us updated on that will ya’… probably find the damn seeds won’t grow as they are genetically engineered. If they do … I’ll trade you for some moose meat or smoked salmon …

#126 Vancouver Troy on 01.11.16 at 9:59 pm

Why is a central bank rate cut the worst news possible for a recent YVR home buyer like me? Doesn’t that mean inflation (higher home value) and my fixed rate mortgage won’t be higher upon renewal?

#127 bill on 01.11.16 at 10:00 pm

rastafari almighty dog mon

#128 MF on 01.11.16 at 10:02 pm

#72 For those about to flop… on 01.11.16 at 7:53 pm

Lol yeah I think I just needed to vent. Seems to happen once a month or so on here. Thanks for the words flop.

#77 Smoking Man on 01.11.16 at 8:03 pm

haha nutandyahoo is a so so leader to me as well.

Okay okay I will stop listening to the Fagathronians and heed the call of the Nectonites.

To be honest, I actually went long oil and bought ERX (leveraged oil etf) when it was rallying a little in November when Russia entered the foray in Syria. Figured, like you, that tension in the area would do as it always does and increased oil prices. Only bought about $1500 worth of shares. That’s my speculation money. Bought at 34, it went up to 37. I felt like a genius..then ERX plummeted down to 20 or so now.

The only positive so far for the rest since April has been my inadvertent forex exchange into USD that I did when buying in April. That has softened the blow somewhat. Maybe the Nectonites are telling me something there? Forex is calling?

MF

#129 Sleepless in Alberta on 01.11.16 at 10:03 pm

Thought I’d provide a story that is similar to more than a few Albertans. I like many, have worked in western Canada’s oil patch for over 30 years. Started with a multi-national, then went with junior oil companies and another multi-national. Got laid off with a package in the 2009 oil melt-down and waited about 9 months before things got good enough to get more work, this time as a consultant. Continued to consult for junior oil companies and once again a multinational. Got let go in the 2015 meltdown, this time with no package as I was a consultant. I’m in the drilling side of things and it is usually the first thing to cut. Wasn’t ready to retire, as I had made a decision in 2010 to build my retirement home in BC and borrowed some money to do it while I was also helping the two older kids get through University. Suddenly with no income it became real clear I was spending too much. My third is is about to enter University this fall. Sooo, I am listing the house March 1, and am planning to move to my rural retirement home. My wife and I will probably find some work (much lower paying) and I’m to try wait it out. If oil ever recovers I hope to eventually get back to work in the patch, renting a condo and commuting on the weekends. Meanwhile I’m living off RRSP money and watching my retirement plans get decimated. I didn’t think the low oil prices would last this long. Any other Alberta stories out there? I know others are having a much worse go of it. I recall Garth mentioning if you get laid off in your late 50’s you might never work at the same type of job again. Probably true in my case.

Sleepless

#130 conan on 01.11.16 at 10:04 pm

I think I will re enter the Canadian market between 11,500 and 12,000. If that happens before the rate cut then so be it.

That dog in the pic needs to wear pants.
http://www.cbc.ca/news/canada/ottawa/dog-pants-legs-debate-sales-1.3398217

#131 Leo Trollstoy on 01.11.16 at 10:06 pm

all the data shows that IT is doing really well. i love google. can’t believe bc is home to over 80k tech employees and ontario has over 300k. crazy. probably the closest thing to job security in this crazy world. i mean, if the banks are complaining that they can’t find talent, that just confirms all the data.
vancouver and toronto real estate prices continue to rise but i can see the end soon. gold is toast and had been for 4 yrs. sorry gold bugs, garth wins again. no deflation in canada and the america is booooooming. sucks to b u

#132 Mark on 01.11.16 at 10:06 pm

“You are confusing grunt IT workers with developers and software engineers. Completely different skill level and difficult to outsource (though Canada is tempting for US companies).”

No, I’m not confusing anything at all. Actually the grunt IT workers seem to have done better than the higher-end “software engineers” and similar, because the grunt IT workers’ jobs are far harder to outsource than the higher-end developer and engineering type jobs. You really can’t outsource laser printer replenishment, or hand-holding, to India. While the development jobs are outsourced there all the time, or people simply brought in.

As a result, people with not a lot of certifications, maybe A+, an entry level Cisco tech certificate or two, etc., aren’t doing all that bad these days. While those who paid the big bucks for a CS education, well, they’re having big problems because most of the entry-level was outsourced years ago.

the poor on this blog don’t wanna hear that the US is BOOMING. makes them maaaad.

I don’t know who’s poor on this blog (although someone who trolls all the time might be a good candidate for such a label), but there are plenty of datapoints that indicate that the US is not doing so well. It is definitely not normal for US treasury yields to be so low in anything but an economic contraction. It is not normal for spreads to be blowing out on corporate debt if things were growing. It is not normal for the employment participation rate to be so abysmally low, especially amongst the 25-55-year-old male category, in an allegedly ‘booming’ economy.

#133 Herf on 01.11.16 at 10:08 pm

“Like I said on the weekend, hoard cauliflower!”

Instead, one might try looking for a more nutritionally worthy substitute, like watercress:

http://time.com/2827608/41-superfoods-ranked-by-how-healthy-they-are/

#134 Smoking Man on 01.11.16 at 10:09 pm

#117 Interstellar Old Yeller on 01.11.16 at 9:39 pm
Really terrific post tonight, Garth, thank you. A fantastic antidote for panic.

ass kisser

And it’s world-class. — Garth

#135 Nanaimo Bar on 01.11.16 at 10:10 pm

#103 Mark

Be very careful with that ETF. Keep in mind that not only are the management fees very high, but also, that it invests in a certain series of futures contracts which have to be rolled at a cost typically. Not only that, but its highly likely that many commodity traders essentially front-run it, meaning that its performance actually ends up being less than a more random trader implementing the same trades.
——————————————————————

Ok, I just read about that now. Thanks. Had to check. Wasn’t sure which ultra ego was replying.

#136 Big Dipper on 01.11.16 at 10:13 pm

“the NDP is a self-avowed socialist movement.”

“Calgary sale prices are calculated from the latest (reduced) listing, not the original asking price or the market price of, say, a year ago. Hence, ‘average’ realtor prices are the amalgam of already-discounted valuations. This ground has been covered here previously. Try to keep up.”

———————————–

So, you prefer parties who hide their Fascist ideologies as compared to one who’s open and honest about being socialist?

I hate to come to the defence of the RE scam artists, but you are incorrect. The year to year comparisons are based on the SOLD prices – regardless of asking price or DOM’s.

Sold prices, after relistings. — Garth

#137 Sebee on 01.11.16 at 10:16 pm

I’m a bit tired of all this fear mongering with cauliflower. It’s just pointing out there is a problem without offering a solution. Normally solution are a trademark of this blog. Therefore, to keep with tradition, can someone talk to their grandma about preserving cauliflower in jars? We need a recipe pronto to put an end to this cauliflower dilemma. Let’s do it for our vegetarian brothers and sisters before they are too weak to read the blog.

#138 Apocalypse2016 on 01.11.16 at 10:24 pm

Garth is right.

And then some.

The implosion that our economy faces beginning in just a matter of weeks will leave many shellshocked.

Canada may in fact be at the very leading edge of the coming global meltdown.

Massive, MASSIVE layoffs are also just a couple weeks or so away, I am told by friends who know who specialize in HR consulting. We will all be stunned at how fast, how bad, joblessness becomes in this country by springtime

Dark age ahead.

Curious. What’s your day job? Root canals? — Garth

#139 Sheane Wallace on 01.11.16 at 10:27 pm

#57 How safe are the banks

Where is the best place to keep loads of cash and cash equivalents? CAD, USD, EUR, CHF accounts?

With bail-ins now globally legislated as a means to protect the nations..

FYI that USD train is looking awfully crowded. EUR is holding up pretty well also…. BUT Merkel’s days are numbered and when she goes, the EUR blows BELOW parity in a flash.

Only thing holding up the EUR from crashing severely is Merkelstan and the banks know it.
With all the migrant related problems they’re having in Germany now, it is a toss up though. Merkel is a liability and a guarantor for stability.

Give it another 20 days max. Early February is her dooms date.
————————-

USD, CHF (same as euro or stronger, but safer) Euro, Yen (short to mod term) there are EFTs for it.
Euro may surprise you, USD will go up if they keep raising rates even moderately.

Get some gold and platinum if you wish.

#140 OnlyTheBankersLaugh on 01.11.16 at 10:28 pm

Bwahaha. JPMorganChase says sell on dead cat. Guess who is shorting like crazy and getting ready to reload.

OnlyTheBankersLaugh and Laugh and Laugh

#141 Big Dipper on 01.11.16 at 10:28 pm

“#90 Investorz on 01.11.16 at 8:32 pm”

There is no reasonable scenario that would cause Cdn banks to cut dividends. Current levels suggest buying opportunities. Particularly if buddy Poloz cuts the rate again and the yield on bank stocks become even more attractive.

#142 april on 01.11.16 at 10:28 pm

#84 – Only possibly the high end … besides he does have the reputation of being a “snake”???

#143 John in Mtl on 01.11.16 at 10:28 pm

#68 common sense on 01.11.16 at 7:39 pm

Bowie’s dead…a moment of silence for a ground breaker and a true artist in this vanilla world….

And I will surely feel very sad when David Gilmour passes away, much like I did when his friend and great musician Richard Wright passed away in ’06.

As we will all leave this rock some day… then “eat, drink and be merry” while the party lasts.

Thank You, Mr Turner, for doing what you do to enlighten and educate us in financial matters.

#144 Sheane Wallace on 01.11.16 at 10:29 pm

Some GBP won’t hurt.

#145 learningfromyou on 01.11.16 at 10:30 pm

Thank Garth for this post.

It contains some answers to questions I had about what to do with certain funds. I really appreciate that.

#146 Sheane Wallace on 01.11.16 at 10:39 pm

#121 Hotdogs from Heaven \

You go it. It has been like this for quite some time,

the problem is that they are cheaper but have no business expertise and the quality of their work is awful.

for 20 % of the money they make here they could live like kings in India, not having to live 6 people in an apartment.

At some point the systems that they are building or supporting will start disintegrating and then the real fun will begin. When your retailer or company site or business systems crash. and become unsupportable.

If they were good, they would have been in Silicon Valley. Very few of them are there, we have them here as our executives love cheap labour. Person with decent skills staying in Canada is stupid.

#147 Brazil ex-pat on 01.11.16 at 11:00 pm

People are still buy cauliflower? Gross. Meanwhile here in Brazil the avacadoes…..are the size of cauliflowers for a buck a piece. Love making USD down here at 30 degrees. Happy global warming !!

#148 West Coast on 01.11.16 at 11:04 pm

http://www.animalplanet.com/tv-shows/dogs-101/videos/puli/

speaking of pulis…..
thanks Garth …great pic …great advice

#149 common sense on 01.11.16 at 11:08 pm

#128 Sleepless

Sorry to hear of your situation….I hope something comes up and things ease for the best. Good times, bad times, we have all had them.

And if you ever see a single guy who knows everything about anything and even mentions the word “Freedom”…

RUN!

#150 Ole Doberman on 01.11.16 at 11:11 pm

Well Gartho who are we to doubt your call on stocks. For those new here Garth has been right on:

Gold crashing
QE ending
Rates Rising
Buying America and selling Canada

He’s only been off on Canadian real estate but that could be turning down hard too.

Ok Garth I will be buying cause your track record has been impeccable – sorry guys just saying it like it is.

#151 Cici on 01.11.16 at 11:12 pm

Cauliflower is delicious…you just have to know how to cook it. Tips: it’s great in curry, or roasted with garlic.

Excellent post today Garth…thanks for sharing the wisdom ;-)

#152 For those about to flop... on 01.11.16 at 11:22 pm

“Cauliflower is delicious ” gets banned from being stated in all provinces and territories.

M41BC

#153 Chris on 01.11.16 at 11:27 pm

Lowering loonie is like the world cutting pays to Canadians because of low productivity by us? With most things imported into Canada probably settled in USD this is going to be hard on Canadian families. Most people already just getting by. The canadian economy really is decoupling from the US one. Are we going to be the exact opposite of US economy cycle from now on?

#154 Ret on 01.11.16 at 11:29 pm

David Suzuki, Elizabeth May, Native groups and most of B.C. must be thrilled at the the collapse of the oil industry and the evil doers.

Prices still dropping after close. $30 oil tomorrow?

#155 Greg on 01.11.16 at 11:47 pm

I just received my monthly mortgage statement from an Arizona bank. The mortgage is on a condo bought there in 2011.

The interest rate has been the bank’s “variable rate” (1.5%) +3.00%, total of 4.50%, for a few years now.

As of Dec 17, the rate rose to 6.50%! It looks like they have raised their “variable rate” by two percent, from 1.50% to 3.50%!

Yikes.

I will phone the bank tomorrow and get their explanation.

M40AB

#156 Leo Trollstoy on 01.11.16 at 11:49 pm

all the good tech candidates are being hired so fast. it must be nice to be a tech recruiter $$$. i knew a tech guy from butthump sask who went to school for like, forever. couldn’t get a job afterwards because employment depends on the individual, not the degree. this acquaintance didn’t understand that. and couldn’t compete. classic case of not street smart. not sure what they’re doing now. probably still blaming the system while their peers are fielding multiple calls from tech recruiters. i’m glad that reality punishes the dumb. reminds me of people who like gold

#157 Leo Trollstoy on 01.11.16 at 11:51 pm

There are Silicon Valley and Seattle tech firms anxious to capitalize on the weak Canadian dollar by moving up here….or at least opening branch offices here.

you are totally correct.

http://www.techvibes.com/blog/tech-industry-will-be-more-important-than-ever-2016-01-08

“In British Columbia alone, around 84,000 people work at tech companies, that makes it a bigger employer in the province than “mining, forestry, and oil and gas combined,”

aint that crazy?

#158 Boomboom on 01.11.16 at 11:57 pm

Chinese money is still going to come. Everyone talks here as if there aren’t a whole bunch of cash rich Chinese multi millionaires. Even if a good few handful of them come over wanting to buy in a time of crisis in China, it’s going to be enough to pump the house prices higher in select areas. The Chinese like to own bricks, that’s the saying and it’s just part of the culture. There will be fewer coming to buy but come they will. Its not an all or nothing game here. The Chinese like the stability of our government and rule of law, less corruption etc etc etc. YVR is a nice place for those with liquidity and wealth and the marketing via word of mouth is working. It’s just that simple. The wealthy Chinese have options, it’s just the reality of things and they prefer YVR and to some extent YYZ. It’s the over leveraged Chinese gamblers that believe they are investors that won’t be coming to buy when the Chinese economy continues its plunge. They will be smoked. The overall Canadian economy is look bleak, but to the Chinese both areas look like doodie, ours pile just looks better.

#159 Westernman on 01.11.16 at 11:57 pm

Ah yes, my, my – the chickens are coming home to roost… just remember you poor little Government loving Socialist Canadians … prosperity is just one more regulation and tax away!
Keep chasing it – it has never in history worked before but you all are special and it WILL work for you… full steam ahead…

#160 ozy - TOLD YOU TO BUY HOUSES on 01.11.16 at 11:59 pm

TOLD YOU TO BUY HOUSES – ’cause the stock market it’s a ‘trap’…. – not too late….

I am so proud, I have only the LIRA provincial and LIRA federal in kanatian (bonds)…..

BRING THE Cholapse ON, ooooo…MASTERS! LOL

#161 Chastity Devine on 01.11.16 at 11:59 pm

I mentioned an upcoming economic puking months ago and here we are in good company.

1) Poloz has been slathering to kill the Loon since gaining office and bring in his 1940’s style economic plan…’beggar the citizen and force political change through starvation. “Dependent people don’t challenge the Party” , a loose quote from Jean Chretien when an amazing Vincente Fox ( past pres of Mexico) asked ( on an accidentally open microphone) how the Liberals managed to stay in power so long.

2) Finance Minister Moroneau is desperately flying back and forth ‘looking for input’…in other words he hasn’t a clue.

3) Prince Farty Pants could care less because he can spend a subsidized $2500 a night on rich Caribbean digs courtesy of the taxpayer…since he’s ‘too important to fly commercial anymore’. If any of us had been close enough we might have some phony Brit accents shouting “Let them eat Cake” and “Pass the Grey Poupon”. while the quivering ‘staff’ masticated food for his nannies.

This is the Liberal Canada of recessions past….keeping people poor to force political change. This is the 1980’s redux…and it will last more than the five years you suggest. In order to be effective government programs must annihilate and entire generation and reprogram the next…that takes time…ten years and more.

The hyperinflation we are seeing in taxation and consumer products is deliberate…not accidental. Welcome the new king people…you got the government you voted for.

I agree with you Garth on this….stop all spending..hoard cash…plan for disaster..it’s coming. The wave is building..far from cresting…expect the worst….lay offs will be made permanent..and the current generation will be thrown under the bus…for political reasons.

If you can ..leave Canada right away….You might long for the boring days of Harper before long if you don’t…and regret is a terrible thing when you’ve screwed yourself by keeping your head in the sand too long.

#162 Bram on 01.12.16 at 12:26 am

#15 Penny Henny on 01.11.16 at 6:21 pm
So Garth, I have a question. From the sale of a property this spring I expect to have another $220,000 or so to invest. Wait it out?

Invest, especially if it is long-term money.
Garth doesn’t like maple, but I disagree.
There are plenty of bargains on the TSX at this very moment. (Today, e.g. I bought CWB at 8 times the earnings, and a juicy 4.3% div)

Just do fundamental analysis, and you will see:
Canadian companies with low debt, healthy margin, growing revenue and at a low P/E ratio.
And to top it all off, many are paying a healthy dividend too.

Garth will blabber about ‘Don’t do individual stocks’, but frankly: diversification is overrated for any investment that will ride for a decade or more.

If you hold stock for a long time, then 10 different stocks is plenty diversification for me.

Canada will be back in force in 10 yrs or sooner.
And at that time, you can then own a nice piece of that Canada, bought at a bargain price.

DISCLAIMER: Don’t take random financial advice from a blog commenter like me. Having said that, this is what I believe, and I think there is opportunity. But do your own research first.

Bram

#163 Pooched (again) - Realties.ca on 01.12.16 at 12:32 am

[…] Source: http://www.greaterfool.ca/2016/01/11/pooched-again/ […]

#164 World Traveller on 01.12.16 at 12:47 am

Oh look, it’s the Donald Trump of dogs.

#165 Panhead on 01.12.16 at 12:59 am

#128 Sleepless in Alberta on 01.11.16 at 10:03 pm

Man oh man … that’s tough to read. Hope something works out for you and your family. Many more stories out there like yours I bet. Kinda put’s things in perspective for the rest of us …

#166 Balmuto on 01.12.16 at 1:01 am

I’ll weigh in a bit on this IT debate.

I work for one of the large insurers in Toronto (Investment Division). I can attest that there certainly has been a lot of off-shoring of IT jobs in the last few years at my firm. However, there continue to be a lot of IT positions available in Toronto. What does seem to have happened is that roles have become more segregated by geography:

– if you’re a pure coder: off-shore
– if you’re a lead developer who also knows the business and can therefore act a liaison between the business and the off-shore coders: Toronto
– if you’re a Systems support person (the ones who monitor batch jobs and try to trouble-shoot production problems): mostly offshore
– if you’re a Systems business analyst or project manager: Toronto

Broadly speaking, it seems as though the trend is to off-shore “pure” developer and systems support jobs and keep the jobs that require more interaction with the business on-shore. The problem I can see is that it may be more difficult in the future for on-shore candidates to get the necessary experience to qualify for these types of jobs. However, they are plenty of opportunities right now for those with the right experience.

#167 Suede on 01.12.16 at 1:15 am

Notes from Vancouver…

Wages rising in public sector, not sure what private sector numbers are.

People are scooping up SFH’s and condos under 10 days at asinine prices higher than 3 months ago.

People emailing me to purchase my RE listed for rent.

Canucks are on a roll. Things are different here. For now.

#168 Fred on 01.12.16 at 1:44 am

Ah, the magic of compound interest for the Banksters now imploding globally. Back to Greenbacks folks.

#169 Newbie on 01.12.16 at 2:01 am

the number of new construction permits drops
http://news.buzzbuzzhome.com/2016/01/2015-sluggish-canadian-home-construction.html?platform=hootsuite

#170 Brazil ex-pat on 01.12.16 at 2:49 am

How can Trump not lose.

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

#171 Millennial Maestro on 01.12.16 at 2:58 am

“After all, if you don’t sell you don’t create a loss”, he said. It took the S&P 500 8 YEARS AND THE Nasdaq 16 to reach .com bubble price levels after the burst, he didn’t say.

Also, if you think that evidently deflating “commodities are in a weird, nonsensical slump at a time when the global economy is actually growing” amid downward revisions in GDP growth projections for developed and emerging economies alike, you know nothing Jon Snow.

#172 old gringo on 01.12.16 at 3:05 am

“It was the best of times, it was the worst of times”.

Well ,that about sums it up depending on if you are buying or selling .

Hearing ex-pats start to worry these days which is a new thing south of the border.

#173 tkid on 01.12.16 at 3:23 am

#112 You are confusing grunt IT workers with developers and software engineers. Completely different skill level and difficult to outsource (though Canada is tempting for US companies).

No, Mark is right. I’m seeing it where I work. Everyone is being outsourced. This is why I am currently saving as much money as I can while I can.

#174 My Life is a Pile of Shit on 01.12.16 at 3:31 am

Garth, you can’t blame readers for not reducing maple.

1. You were still recommending Canadian REITs and preferred shares, and you never said to get out of maple completely.

2. Canadian ETFs that hold foreign equities are too illiquid, i.e. low trading volumes, and/or hedged to CAD. Of Canadian ETFs, only those that hold maple have good liquidity.

3. To buy US ETFs, one needs USD. And trading CAD for USD, or vice versa, is expensive. In fact, currency exchange is so expensive that one is better off with mutual funds, which you have always denounced.

4. The average investor can’t change his mindset fast enough to dump maple for foreign stuff. Continually changing the portfolio is too hard even for professionals; it is too much to ask of self-directed investors who would rather watch reality TV than study the markets.

(a) The less-maple recommendation was on growth assets, not fixed income. (b) Patently false. (c) False again, as C$-denominated US funds are widely available. (d) My portfolio makeup has not changed in several years. If you ignored it in the past, your bad. — Garth

#175 bdy sktn on 01.12.16 at 3:45 am

East van is going hockey stick.

The past 6 months has seen an acceleration in the pace of gains over the steady strong growth since 2001.

3 years and one month ago ,as mentioned here, lot value off comm Dr area was about 650 to 850k. Recent sales for the same lots today are 1.3 to 1.6.

Basically a double over 3 years.

100% increase on near identical props.

My neighbors who sold for 1.1 million in 2012 could have sold for 2.1m today, a cool million left on the table.

100% gain over past 3 years. Apple goog heck even shorting oil has not come close.

#176 family beagle on 01.12.16 at 3:52 am

#128 Sleepless in Alberta on 01.11.16 at 10:03 pm

You can do whatever you want. I buy/manufacture stuff cheap in Canada and sell it online for USD. Wife does same through Asia. Eighth year with a catalog. Goodbye urban rat wheel. 2 kids schooled and working. Second hand 4×4. Great friends. Great adventures. Rent agricultural. Own rural. Indulging in snowshoeing, fine art, travel. Threw another 5k into USD at lunch for a trip, something I read on here no doubt. Want the vacation $ handy. Repeat: you can do it.
604/250.

#177 jane 24 on 01.12.16 at 4:27 am

I do love this blog. Highlight of the morning and makes me laugh out loud.

Don’t sell stocks guys. I did that once 30 years ago in another bear market and lived to regret it. Stocks will always go up in time. You don’t need the money now so leave them alone. They are long term investments.

#178 observer on 01.12.16 at 4:30 am

Just relax and enjoy the slow moving trainwreck we call the Canadian Economy.

Its too bad Poloz and Carney (carnage) guided us to this situation. Over the next few month we will see chinks in our armor and the bleeding will start.

When T2 tries to sell Canada Savings bond to raise money to fuel his spending, he’s going to be in for a huge surprise. I don’t think he really gets it but we will see.

Don’t know how he’s going to maneuver through this.

#179 Buy? Curious? on 01.12.16 at 4:42 am

Hey People of Canaduh! I love you but you’re doomed. Prepare accordingly.

Here’s how it’s going to feel. Replace Edmund Fitzgerald with the Canadian Economy. (I don’t think I’ve could up with a more Canadian metaphor!)

https://www.youtube.com/watch?v=9vST6hVRj2A

#180 Other Brother Darryl on 01.12.16 at 5:07 am

“Any decision is better than indecision… but does not apply to selling.” – OBD

#181 WileE on 01.12.16 at 5:20 am

@128 sleepless

Sorry to hear , keep you head and up and think it through.

@148 common sense

LOL

#182 Ontario's Left Coast on 01.12.16 at 7:17 am

#64 For those about to flop… on 01.11.16 at 7:36 pm

Thanks, Flop, for your words of encouragement…. You’re a positive influence on this board and your support is truly appreciated. I’m probably not doing any worse than anyone else, but this market rout has not been fun to watch and sometimes you just have to vent. Hopefully better days are (somewhere) ahead.

Cheers and have a great day.

M48ON

#183 You'reNuts on 01.12.16 at 7:32 am

“It’s all happened just after Canadians, in their wisdom, elected governments in Alberta and Ottawa committed to higher taxes and saving the planet.”

a) Correlation is not causation.

b) The possible recession is a product of low commodity prices and a weak dollar. Low oil prices are a result of OPEC’s actions, not Canada’s.

c) The governments which got the boot in Alberta and Ottawa were responsible for putting all of the country’s eggs in the housing and oil baskets.

d) Even if b) and c) above applied, there is no way a provincial/federal government could induce a recession in the mere months those governments have been elected.

e) Trudeau and the Alberta NDP are likely economically out to lunch, but Harper was worse.

All reasonable points. All irrelevant. Current government policies appear destined to exacerbate the situation. Don’t be a political apologist. Demand better. — Garth

#184 ALBERTASTROPHE on 01.12.16 at 7:54 am

Getting uglier…..

Western Canadian Select down to $14.45 USD

The floodgates are opening on Alberta now.
The real estate situation will be nothing short of a total collapse.

The ‘experts’ now say this will last until 2020, maybe longer. That’s too long, too much uncertainty for any economy.

Get out if you can.

#185 pbrasseur on 01.12.16 at 8:03 am

«Just relax and enjoy the slow moving trainwreck we call the Canadian Economy.» #176 observer

Trying to book a Florida vacation at the moment, I don’t find that experience particularily relaxing…

As for T2 he’s a useful idiot who deserves all the hell he’s going to get!

#186 pbrasseur on 01.12.16 at 8:12 am

«Don’t sell stocks guys. I did that once 30 years ago in another bear market and lived to regret it. Stocks will always go up in time. You don’t need the money now so leave them alone. They are long term investments.» #175 jane 24

Smart words, short term volatility is the price to pay for long term growth. You may diminish volatility buy will pay for it with long term growth. No free meal.

#187 Millmech on 01.12.16 at 8:24 am

#124 Panhead
Way ahead of you,been trading elk for steelhead&salmon pound for pound,had to buy another freezer for all the meat I got,didn’t even lose an arrow this season.

#188 fancy_pants on 01.12.16 at 8:41 am

What confuses me is why T2 eats up the climate change propaganda so much. Giving $2.65B to help poor countries fight climate change? I can just see it: “thanks for your $ Canada. Now, excuse us while we go car shopping”

Shame on us for being a developed nation. penance for such gross actions.

Folks, other than an elite group and those at the helm (who ensure their own welfare first), the socialist countries of the world are being hosed down to meet the lowest common denominators. cheers. see you at the bottom of the barrel.

#189 Leo Trollstoy on 01.12.16 at 8:43 am

#165 Balmuto on 01.12.16 at 1:01 am

a fantastic example of why employability depends on the individual and not the degree. your ability to take advantage of the IT boom (or any employable position) depends on how little u suck

#190 westcst on 01.12.16 at 8:44 am

CDN utilities and ATCO both raised their dividends 10% and 15% respectively last week. What ETF’s do that?

#191 Leo Trollstoy on 01.12.16 at 8:48 am

half a million employees work in tech in BC ONT and QUE and they’re looking for more. can’t find a gig in tech? well that says something about how much the candidate sucks lol

#192 BR E19 1-D-1 on 01.12.16 at 8:53 am

‘It’s all happened just after Canadians, in their wisdom, elected governments in Alberta and Ottawa committed to higher taxes and saving the planet.’

Love it!

I’ve yet to hear much buyers’ remorse here in the Big Lemon about T2 and the ON Liberals – what’s her name? – but it’s coming. Sure as the sun rises every morning, it’s coming.

#193 ALBERTASTROPHE on 01.12.16 at 8:59 am

Lol. Kevin O’Leary is emphatically calling on Rachel Notley to resign, as her 6 month government is to blame for the oil woes, not 45 years of utterly incompetent Conservative wilful blindness in building an economy destined to fail and plundering the savings accounts.

http://www.thestar.com/news/canada/2016/01/11/kevin-oleary-promises-1m-to-canadian-oil-if-notley-steps-down.html

And of course Kevin’s funds’ performance and management qualify him to say such things :)

https://ca.finance.yahoo.com/blogs/pay-day-/canadian-tire-savings-accounts-trump-o-leary-bond-195934363.html

#194 maxx on 01.12.16 at 9:17 am

#20 Doug t on 01.11.16 at 6:26 pm

“Spock is that you?”

Out here, that question is illogical.

#195 Nick on 01.12.16 at 9:28 am

Garth,

What an awesome blog overall!

I always write my 2 cents but have yet to mention how much I appreciate this blog.

Thanks!

#196 Not tonight honey on 01.12.16 at 9:34 am

#128 Sleepless in Alberta on 01.11.16 at 10:03 pm

Sleepless in Alberta,
Thanks for sharing. Lots of us losing winks, you are not alone. Wishing you & your family all the very best.

NTH

#197 Grey Dog on 01.12.16 at 9:36 am

128 Sleepless in Alberta, like you, my husband in 2009 at age 57 lost his job (of 33 years) during the 2009 meltdown. THAT was OUR wake up call. When he was fortunate enough to land more employment after 9 months, we did a financial assessment, figured out what we really would have to live on in retirement, and thus lived out of that bucket and INVESTED most of his takings from 2010 on.

Result: Currently looking forward to full retirement in a year’s time. Yet if the plug gets pulled tomorrow we will be fine.

This is a time for a family meeting. As opposed to you feeling you owe your children an education, they will need to contribute to your family bucket. I feel that these TRIALS that come our way BUILDS CHARACTER. One really learns what is important in life.

2009 was a lesson for my family that the Merry go Round can stop with no warning.

#198 James2 on 01.12.16 at 9:40 am

#92 Smoking Man on 01.11.16 at 8:34 pm

Damn wife has Entertainment Tonight on earlier. That charming host Ben Mulroney.
To watch this show and enjoy it you got to be 13 years old. But sadly shit load of dumb stupid Millennials, teachers pets hang on this shit. Oh and Smokeys wife.
Should I show my wife when Ben and I had words on twitter?
http://dyslexicsmokingman.blogspot.ca/2015/03/ben-mallory-discovers-smoking-man.html
…………………………………………………………………….
Hilarious you just got punked by Ben Mulroney. Now we can refer to you as Sir Smoking Douche :)

#199 HCWTT on 01.12.16 at 9:49 am

#177 Buy? Curious? on 01.12.16 at 4:42 am

Hey People of Canaduh! I love you but you’re doomed. Prepare accordingly.

Here’s how it’s going to feel. Replace Edmund Fitzgerald with the Canadian Economy. (I don’t think I’ve could up with a more Canadian metaphor!)

https://www.youtube.com/watch?v=9vST6hVRj2A
____________________________________________
Replace Captain McSorley with T2. Although Fitzgerald had reported being in difficulty earlier, no distress signals were sent before she sank; Captain McSorley’s last message sent was, “We are holding our own.” Her crew of 29 perished, and no bodies were recovered.” Is Canada in for the same lesson?

#200 BC Working Guy on 01.12.16 at 9:50 am

@ Mark #131:

“the poor on this blog don’t wanna hear that the US is BOOMING. makes them maaaad.

I don’t know who’s poor on this blog (although someone who trolls all the time might be a good candidate for such a label), but there are plenty of datapoints that indicate that the US is not doing so well.”

I am poor on this blog and I want to read the objective truth. It doesn’t make me mad to hear the US is booming. I wish the US all the best and I hope that they are booming. I only wish to know the truth. If I had to hazard a guess, I would guess the US economy is not doing anywhere near as well as is being reported. I wouldn’t invest my money (if I had any) in US stocks, or stocks in any country because I think all the stock markets are rigged for the benefit of the already-existing rich people. I think stock markets are a pyramid scheme and I would feel like a fool buying any stock. But what do I know? I’m a penniless basement dweller. I do think that real estate in Vancouver will go up forever, though.

All I know is poverty. I know how to survive on $20 a week for food. That does not involve eating cauliflower, no matter what time of year it is. Canada has a reputation as having a generous welfare state but I think the US welfare system is a lot better in many respects. The US has a national welfare system and poor people there do get food stamps on an EBT card. I think that is much better than our Canadian provincial system with different rules in every province. It’s very hard to qualify for welfare in Canada. Also, the US has a much more generous social housing system with Section 8 housing. It actually a national affordable rental housing program, unlike Canada. US cities have been building public housing for poor people for years. They never stopped. Canada has a lack of social housing. Most of the social housing built in Vancouver in recent years has been in the form of supportive housing for drug addicts.

There is going to be a tsunami of economic hardship in this country and demands on the state for social housing and welfare are going to increase. I believe the US welfare system was better able to respond to the crisis that hit the US in 2008 than the Canadian welfare system will be able to respond to the crisis starting to hit us now.

Someone wrote a few weeks back than when the economy is rough, more and more people will ask for socialism. They weren’t saying that is a good thing, it’s just reality. I agree. It feels like the people on this blog are biased and blind to what is going on for ordinary working poor people like me. Most people on here have a rich-bias. There is way more poverty and hardship in Canada than most of you can imagine and I believe that unless we are going to have mass homelessness and starvation in Canada, the government will follow through with some socialism, perhaps guaranteed minimum income (negative income tax) and subsidized housing for big swaths of the population.

#201 Smoking Man on 01.12.16 at 10:06 am

This dude is amazing, Ya he’s gay get over it.

Milo Yiannopoulos.

http://www.therebel.media/milo_yiannopoulos_most_people

Coined the Phrase Cultural Libertarian. Sign me up.

Bring it on Cultural Marxist.

#202 Smoking Man on 01.12.16 at 10:13 am

Finally some sanity from Millennials.

http://www.therebel.media/defence_of_free_speech_on_university_campuses

#203 Daisy Mae on 01.12.16 at 10:14 am

#51: “Don’t hate on the “firsters” they are entertaining and add to the pathetic company here. This is a place of refuge for all (most ?)”

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

Actually, they’re stupid, unimaginative, add nothing to the forum, and should simply be deleted.

#204 -=jwk=- on 01.12.16 at 10:14 am

You mean my 2.05 variable might go down? Heavens, no.

#205 Daisy Mae on 01.12.16 at 10:31 am

#63: “…and cauliflower heads towards $10 a head.”

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

In that case, producers might as well halt production — ’round and ’round she goes.

#206 Calgary Rip Off on 01.12.16 at 10:33 am

Oil is down and gas prices are down. Oil was priced too high and that is what happened with these layoffs. Was there a panic pre 2014 when oil was low? Many many people became very rich and didnt budget. The sky is falling in Alberta. Really? Go drive in rush hour and go shopping. Still plenty of people so someone is making money still. Housing assessments by the city are still up. And the poor remain poor and priced out of rentals and mortgages.

Zinc and copper? Zinc is used 50 mg a day to prevent diarrhea in developing countries. Not a bad idea with some of the viruses and overcalcified water in Calgary. Got a stomach bug? Get a copper cup, put tap water, let sit overnight, drink in morning. This will also help, however long term maybe not the best option as copper acts like an amphetamine more or less in the body and is estrogenic.

With Iran and the world awash in a sea of oil, oil may go to $10/barrel.

#207 Trey on 01.12.16 at 10:37 am

Garth why egg people on to buy stocks?! Weird.

Just look at the oil bellweather – the crash it spelling out another 2008 around the corner.

The economy is coming to a halt and reversing – ultimately bad news for equity markets.

Or maybe the bad news has already been digested. In any case, you should not buy individual stocks nor build a portfolio which is not balanced with fixed-income and globally diversified. — Garth

#208 Daisy Mae on 01.12.16 at 10:41 am

#85: “Bought 3, shredded, and frozen…”

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

Shredded cauliflower?

#209 Ponzius Pilatus on 01.12.16 at 10:44 am

Bob Marley reincarnated as a dog?

#210 Daisy Mae on 01.12.16 at 10:44 am

#110: “And now the problems will be COMPOUNDED!”

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

Quite likely.

#211 Tony on 01.12.16 at 10:46 am

Of course we all know the ruse about the stock market always goes up at the start of earnings season whatever the earning are (good bad or anything else). This is the first time in 6 and a half years the short sellers have ever fought back. I see it today.

#212 salonist on 01.12.16 at 10:52 am

Deadmalls.com

“Malls Aren’t Dead Yet — 3 Promising Retail REITs to Buy Now” ?

http://www.fool.ca/2014/03/27/malls-arent-dead-yet-3-promising-retail-reits-to-buy-now/

#213 conan on 01.12.16 at 10:54 am

#198 BC Working Guy on 01.12.16 at 9:50 am
Re: social programs in the USA

The Americans treat their working poor a lot better then we do. Innovation galore in regard to incentives designed to make escaping the welfare trap easy.

A minimum wage existence in Canada is a lot tougher then in the USA.

Social housing in Canada also has its problems. The supply is too small. If one was to dig deep you might find a lot of nepotism.

#214 Dups on 01.12.16 at 11:00 am

Best post in a month or so…

#215 Ponzius Pilatus on 01.12.16 at 11:03 am

There we go. SM finally admits that he’s from another planet!
Space cadet.

#216 Ponzius Pilatus on 01.12.16 at 11:04 am

Ground control to Smocking Man.

#217 For those about to flop... on 01.12.16 at 11:04 am

#154 Greg on 01.11.16 at 11:47 pm
I just received my monthly mortgage statement from an Arizona bank. The mortgage is on a condo bought there in 2011.

The interest rate has been the bank’s “variable rate” (1.5%) +3.00%, total of 4.50%, for a few years now.

As of Dec 17, the rate rose to 6.50%! It looks like they have raised their “variable rate” by two percent, from 1.50% to 3.50%!

Yikes.

I will phone the bank tomorrow and get their explanation.

M40AB

//////////////////////////////////////
Hey Greg ,I hope you get to the bottom of your problem.
I was wondering if the overall experience has been positive,that is owning a condo in Arizona.
I ask because I thought about doing that too a couple years ago and still might in the future.
As a guy from Oz,winters here do my head in.
Thanks for the GAP code support as well.

M41BC

#218 TRT on 01.12.16 at 11:07 am

RBS says ‘sell everything’.

http://www.theguardian.com/business/2016/jan/12/sell-everything-ahead-of-stock-market-crash-say-rbs-economists

They obviously haven’t heard about YVR SFD housing.

Regardless, A Chinese hard landing is gonna cause a lot of pain…and opportunity. Bring it on.

#219 Rational Optimist on 01.12.16 at 11:08 am

76 Chaddywack on 01.11.16 at 8:00 pm

“Bought 3, shredded, and frozen. Will sell for a profit in a couple of months. I wonder if this is considered a capital gain?”

I think you’re a food processor now. Expect CFIA at your door to get you to upgrade your kitchen to food-grade, though there may be grants for that depending where you are. You said Safeway- if you’re in Alberta, ask your MLA about support to diversify the provincial economy away from oil and gas and towards (sustainable, green) cauliflower processing cottage industry.

#220 For those about to flop... on 01.12.16 at 11:09 am

#201 Daisy Mae on 01.12.16 at 10:14 am
#51: “Don’t hate on the “firsters” they are entertaining and add to the pathetic company here. This is a place of refuge for all (most ?)”

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

Actually, they’re stupid, unimaginative, add nothing to the forum, and should simply be deleted.

/////////////////////////////////////
Daisy,don’t be so hard on yourself!

M41BC

#221 Rational Optimist on 01.12.16 at 11:12 am

76 Chaddywack on 01.11.16 at 8:00 pm

Oops, I see you said Vancouver. Maybe if you open an office of Chaddywack Cauliflower in Red Deer, you can qualify.

#222 misguided tolerance on 01.12.16 at 11:13 am

#31 betamax on 01.11.16 at 6:39 pm
What brought the “firsters” back? — Garth

Your misguided tolerance of this practice.

Sorry Sir Garth but I’m with Betamax on this one!

#223 Georgia Junkie on 01.12.16 at 11:17 am

http://business.financialpost.com/investing/global-investor/sell-everything-banking-giant-tells-investors-and-brace-for-cataclysmic-year

We must be getting close to a bottom. When irrational pessimism sets in and the ‘best and brightest’ suggest selling everything and digging a bunker…that’s usually a strong contrarian indicator. The trading floors are littered with such genius.

Fundamentals in China or America don’t drive the market…there are two factors to the global exchange…only two….fear and greed. It’s humans who buy and sell….it’s humans who predict and fail. It is humans who program the algorithms…not the computers themselves. Predictive linguistics suggest that we all share the same trajectory based on the instinct to survive….and instinct driving us to succeed..not fail. Get a grip people….stop puking and stay alert….the dinner bell will ring one of these days and the feasting will begin.

#224 tkid on 01.12.16 at 11:21 am

#208, Daisy Mae, cauliflower can be used as a rice substitute. Never done it myself, but I’ve been told it’s tasty.

#225 Marcus on 01.12.16 at 11:32 am

There are now bets being made relative to $10/barrel oil. Sub $50/barrel oil till 2029.

#226 nubbers on 01.12.16 at 11:43 am

What brought the “firsters” back? — Garth

I reckon its because you banned the blog dogs’ chew toy the other day.

#227 SWL1976 on 01.12.16 at 11:47 am

Awakening?

http://www.realitynext.ca/awakening/

Try it

#228 Lowergreedland on 01.12.16 at 11:47 am

For those struggling to make your KIA payment, story on BC Global last evening claims ICBC just released figures showing there are more high end automobiles registered in the Vancouver area per capita ( above 150K $$) primarily the coupe variety Lamborghini, Ferrari, Maserati, Bentley etc. than anywhere else in North America. The primary category of driver is listed in the 20’s age range. For those who don’t believe HAM $ have driven the Vancouver real state market to date another interesting assessment. If they are buying these machines guess what kind of real estate the live in.
Hang in there working men an women
, you can finance the KIA over 84 months. They may even throw in a head of cauliflower

#229 BlackDog on 01.12.16 at 11:48 am

re: the FIRSTERS, Daisy #201: ”
Actually, they’re stupid, unimaginative, add nothing to the forum, and should simply be deleted.”

Agreed, no originality whatsoever!

LAST!!!

#230 Trey on 01.12.16 at 11:50 am

Or maybe the bad news has already been digested. In any case, you should not buy individual stocks nor build a portfolio which is not balanced with fixed-income and globally diversified. — Garth
—————————————————–
How can oil be in such a surreal self off if the economy is growing? Not possible.

And what’s been priced in for the continued sell off in stocks?

I’m not here to arm wrestle, but wouldn’t markets like cheaper oil – costs for just about every sector would be going down.

Cheap oil benefits consuming regions as it punishes producing ones. — Garth

#231 Julie K. on 01.12.16 at 11:54 am

Question: Anyone around here ever strive to be last?

#antifirst

#232 Smoking Man on 01.12.16 at 11:55 am

#214 Ponzius Pilatus on 01.12.16 at 11:04 am
Ground control to Smocking Man.
…….

Circuit’s dead can you hear me.

Boom sub 69.99 dollar.

#233 Noel on 01.12.16 at 12:05 pm

Claiming an interest rate cut by the central bank will put downward pressure on housing prices is some 1984esque doubletalk there Garth.

Lower rates in this context are a sign of economic desperation. And houses are supposed to go up? Give your head a shake. — Garth

#234 waiting on the westcoast on 01.12.16 at 12:13 pm

10% inflation on foodstuffs…

http://www.financialpost.com/m/wp/news/blog.html?b=business.financialpost.com/news/economy/heres-how-much-more-canadians-will-have-to-pay-for-fruits-and-veg-because-of-our-low-dollar&pubdate=2016-01-12

#235 Mark on 01.12.16 at 12:21 pm

“half a million employees work in tech in BC ONT and QUE and they’re looking for more. can’t find a gig in tech? well that says something about how much the candidate sucks lol”

Is there something wrong with you? Must be. Because you’ve been told by multiple professionals in these comments that there is not vibrant demand for Canadian IT professionals. Yet you continue to try and twist the narrative towards insulting the people unfortunate enough to be involved with the sector (or in many cases, not, on account of the conditions being so poor).

Why don’t you go back to tending your USA slums, instead of trolling here. Grown-ups are trying to have a conversation here.

#236 Alex on 01.12.16 at 12:29 pm

“Sunny days, my friends. Sunny days.”

#237 Marcus on 01.12.16 at 12:39 pm

The loonie is now sub 70. Next stop 62.

#238 Gulf Breeze on 01.12.16 at 12:46 pm

#198 B.C Working Guy,

All my best to you. I agree with everything you posted. I was on welfare, briefly, decades ago, when my health collapsed. It was VERY hard to get and I imagine it’s even harder now.

Something has to give. The .01% are not job creators. Most of them are parasites, creating malinvestment in assets, bubbly real estate where jobs DO exist. Many of them like to crow about being self made men or women. They should read Malcolm Gladwell.

The wealthy cretins on this blog have no idea what real socialism looks like–but they will in the near future. I welcome it, have no desire to live in a cruel society and won’t mind paying higher taxes.

#239 jess on 01.12.16 at 12:50 pm

European Commission – Press release
State aid: Commission concludes Belgian “Excess Profit” tax scheme illegal; around €700 million to be recovered from 35 multinational companies

Brussels, 11 January 2016

The European Commission has concluded that selective tax advantages granted by Belgium under its “excess profit” tax scheme are illegal under EU state aid rules. The scheme has benefitted at least 35 multinationals mainly from the EU, who must now return unpaid taxes to Belgium.

The Belgian “excess profit” tax scheme, applicable since 2005, allowed certain multinational group companies to pay substantially less tax in Belgium on the basis of tax rulings. The scheme reduced the corporate tax base of the companies by between 50% and 90% to discount for so-called “excess profits” that allegedly result from being part of a multinational group. The Commission’s in-depth investigation opened in February 2015 showed that the scheme derogated from normal practice under Belgian company tax rules and the so-called “arm’s length principle”. This is illegal under EU state aid rules.”

http://europa.eu/rapid/press-release_IP-16-42_en.htm?locale=en

#240 saskatoon on 01.12.16 at 12:56 pm

#118 Big Dipper

more evidence socialist ideology is actually a psychological ailment.

#241 Mark on 01.12.16 at 12:56 pm

#198 BC Working Guy

Thank you for your highly thought out, factual input. It is a good dose of truth in contrast with some of the commentary coming from certain posters who believe they’re God’s gift to mankind because they picked up a few condos in the USA at what was a bottom at the time. The sheer narcissism can get a bit overwhelming at times, and at some level in debate, its easy to lose track of the fact that there are real people on the other side of the table who are going through some hard times, even if it might be their own fault for not being as ‘balanced’ as Garth extolls the virtues of being.

#242 Fien Wild Roasted Gonads on 01.12.16 at 12:56 pm

Time for canned beets and root vegetables … tank those preferreds….. down down it goes …more rate cuts on the way

http://www.calgaryherald.com/business/loonie+slides+costs+fresh+fruits+vegetables+expected+rise/11646332/story.html

#243 Bram on 01.12.16 at 1:02 pm

Tomorrow, the Teranet house-price-index for dec/15 should be out.

Anyone with a prognosis?
Vancouver’s oct to nov was +1.35%
So will nov to dec be higher or lower than that?

Canada-wide: +0.19% for oct to nov.
http://www.housepriceindex.ca/default.aspx

Bram

#244 Godth on 01.12.16 at 1:10 pm

‘Sell everything,’ global banking giant tells investors and brace for ‘cataclysmic year’
http://business.financialpost.com/investing/global-investor/sell-everything-banking-giant-tells-investors-and-brace-for-cataclysmic-year

Born to Be Conned
http://www.nytimes.com/2015/12/06/opinion/sunday/born-to-be-conned.html?&_r=0

#245 JimB on 01.12.16 at 1:16 pm

Garth, your point regarding higher taxes is certainly pertinent, but please refrain from dumping on the concept of saving the planet (by which I mean please stop putting it in quotation marks). Okay, maybe the politicos are going for photo ops (’twas ever thus) but the planet does in fact need saving (no quotes) so trivializing that fact accomplishes nothing beyond perpetuating the status quo.

I plead Not Guilty to the sarcastic, demeaning, fascist or criminal use of quotation marks. Did not happen. — Garth

#246 Mike in Edm on 01.12.16 at 1:16 pm

My in-laws bought a house 5 years ago in Sherwood Park (Suburb of Edmonton). They sold it Aug of 2014 after making about 4% on it to a family on a work permit. The permit got cancelled shortly after they bought it, and they moved home. They tried to sell it (unsuccessfully) for almost a year for more than they paid (actually it was what they paid, plus realtor fees so they wouldn’t have to take a loss), and finally just cracked and sold it for about $20k less than they bought it for, less realtor fees.

Talk about a great investment for both families /heavy sarcasm. My in-laws made less than 1% per year on it, and family 2 lost about 8% in the one year they owned it.

#247 saskatoon on 01.12.16 at 1:18 pm

#236 Gulf Breeze

and even MORE evidence left-wing political ideology is actually a psychological ailment.

socialism IS cruelty: it is, at base, the initiation of violence–using governmental force to thwart voluntary association.

it is NEVER compassion.

#248 Smoking Man on 01.12.16 at 1:23 pm

#240 Fien Wild Roasted Gonads on 01.12.16 at 12:56 pm
Time for canned beets and root vegetables … tank those preferreds….. down down it goes …more rate cuts on the way

http://www.calgaryherald.com/business/loonie+slides+costs+fresh+fruits+vegetables+expected+rise/11646332/story.html

………………

Love it, Tree Hugging Urbanites going to get wacked, the horror of abandoning Whole foods.

Put the disguise on and head over to No Frills. In and out quick.

KD from here on In. Way to vote in commies.

Mind you, I Love KD

#249 bdy sktrn on 01.12.16 at 1:25 pm

Tomorrow, the Teranet house-price-index for dec/15 should be out.

Anyone with a prognosis?
Vancouver’s oct to nov was +1.35%
So will nov to dec be higher or lower than that?
—————————————-
higher. way higher.

#250 MF on 01.12.16 at 1:25 pm

#240 Fien Wild Roasted Gonads on 01.12.16 at 12:56 pm

So why are we cutting rates? There is limited manufacturing in Ontario/Quebec.

Tourism? Why would any Americans come here?

Who cares if our portfolios tank further. Only smart (or dumb?) Canadians actually invest 1 and 2 invest in their own country and care about things like ETF’s.

This is so stupid but I already knew everyone running this country was a moron and I don’t care anymore.

So, how do we further profit off of this?

USD.CAD? Might be too late for that one. Euro.Cad maybe.

MF

#251 young & foolish on 01.12.16 at 1:29 pm

“How can oil be in such a surreal self off if the economy is growing? Not possible.”

Lower oil prices are seriously hurting some of the Western Alliance enemies (Russia, Saudi) …. but that’s tin foil hat thinking, right?

#252 conan on 01.12.16 at 1:36 pm

TSX is slip slidin away

https://www.youtube.com/watch?v=5_H-LY4Jb2M

I hope I am right on when to get back in. Thinking 11.5- 12K.

#253 Ronaldo on 01.12.16 at 1:36 pm

#225 SWL1976 on 01.12.16 at 11:47 am
”Awakening?

http://www.realitynext.ca/awakening/

Try it”

Good link. Much as I believed going back to my teenage years. Things seem ripe for a major happening in the world. Would make the housing bubble seem pretty mild.

#254 young & foolish on 01.12.16 at 1:37 pm

“And of course Kevin’s funds’ performance and management qualify him to say such things :)”

What O’Leary knows …. it’s all about FEES you pay his funds whether they go up or down. The only way to make consistent money without fail is to offer a product or a service. ETFs and balanced portfolios are for “parking” money.

#255 saskatoon on 01.12.16 at 1:37 pm

#199 Smoking Man

milo’s rational discourse exposes socialist/liberal illogic for what it is:

mental illness.

#256 Ronaldo on 01.12.16 at 1:40 pm

#239 Mark

Well said.

#257 Sean on 01.12.16 at 1:40 pm

You were right about US… but it seems a little late to be buying into US$ stocks now for us.

TSX60 — its well off its highs, is it not a good idea to start buying for someone in their late 20s?

#258 fancy_pants on 01.12.16 at 1:48 pm

#76 Chaddywack on 01.11.16 at 8:00 pm

damn. you shredded it. That is a taxable act. Don’t report that on the long census if they ask.
label the bags as keratin and sell these shredded bits on the black market as rhinocerous horn. I think that will give you the best return. With the proceeds, put a down payment on Vancouver RE.

#259 Ronaldo on 01.12.16 at 1:51 pm

#211 Conan

”A minimum wage existence in Canada is a lot tougher then in the USA.”

Especially when it comes to purchasing cauliflower.

#260 Mixed Bag on 01.12.16 at 1:56 pm

http://www.thestar.com/news/canada/2016/01/12/how-ontario-cabinet-ministers-moonlight-for-money-cohn.html

Would this explain the out of control energy costs/debt, and the guaranteed kWh price for solar generators, footed by the tax payer?

I do find distasteful, KWynne asking voters to elect the Lib candidate in the upcoming by-elections, via ads on the radio.

Even Harper outlawed this at the Federal level.

#261 jaybee on 01.12.16 at 1:57 pm

#205 Trey on 01.12.16 at 10:37 am

“Garth why egg people on to buy stocks?! Weird.”
———————————————————
Show me where Garth recommended buying stocks? He usually writes about asset allocation, and global diversification using etfs\mutual funds. He is against buying individual stocks. Good advice.

I buy individual stocks, but I have a sizable portfolio where I can diversify. Also,I have nothing better to do than research individual equities ;).

#262 jaybee on 01.12.16 at 1:58 pm

And the Canadian dollar falls below 70 cents US. Wow.

#263 Trey on 01.12.16 at 2:16 pm

Cheap oil benefits consuming regions as it punishes producing ones. — Garth
———————————————————
Well then, here’s an eye opening article – Royal Bank issues a sell everything signal and sees a GP 2.0 for 2016.
Banks have the inside edge on this stuff:

http://www.infowars.com/great-depression-2-0-sell-everything-2016-cataclysmic-year-for-stocks-warns-rbs/

can’t argue here.

The Royal Bank “of Scotland.” Like that matters. — Garth

#264 Nick on 01.12.16 at 2:30 pm

Another down day…

So everyone is refraining how all this negative news will affect Canada’s broader economy. All I’m hearing is that it won’t affect the broader economy as this is only a temporary correction. Is this because nobody really knows what to make of all this as we’re in unchartered territory or is it because nobody has the guts to announce the inevitable?

I have yet to hear positive economic news from a single country from all around the world except for the USA which created 250K of big box store jobs.

#265 Nick on 01.12.16 at 2:31 pm

#261
Trey, they’re just trying to make money from all the sell orders.

#266 Noel on 01.12.16 at 2:32 pm

#248 MF

“Tourism? Why would any Americans come here?”

Americans likely spent over $15 billion in Canada last year, and will spend more this year. The tourism industry represents about 2% of GDP. It is an important and successful industry – worldwide its among the top 20 most visited countries.

Don’t be a hater!

#267 Shirley Valentine on 01.12.16 at 2:34 pm

#261 Trey on 01.12.16 at 2:16 pm

Cheap oil benefits consuming regions as it punishes producing ones. — Garth
———————————————————
Well then, here’s an eye opening article – Royal Bank issues a sell everything signal and sees a GP 2.0 for 2016.
Banks have the inside edge on this stuff:

http://www.infowars.com/great-depression-2-0-sell-everything-2016-cataclysmic-year-for-stocks-warns-rbs/

can’t argue here.

The Royal Bank “of Scotland.” Like that matters. — Garth
****

You do realize that Mrs. Smokey Man is a sword swinging highlander……… that slight will not go unnoticed….

That great beast of man keeps warning me about her.

#268 fancy_pants on 01.12.16 at 2:41 pm

…and oil dips below $30. Any moonshine recipes for this stuff? we may need it. oh, none that include cauliflower please, word on the street is that stuff is getting expensive.

#269 Trey on 01.12.16 at 2:53 pm

The Royal Bank “of Scotland.” Like that matters. — Garth
——————————————————-

Market price action is sure indicating they’re onto something. JP Morgan also shares the same sentiment.

#270 Fine Wild Roasted Gonads on 01.12.16 at 3:00 pm

I wish they would just stick to their guns… but the poodle wants to tank the dollar….

A far better strategy might be for the CDN government to buy a massive amount of powerball tickets!! 1.5 Billion real dollars!

#248 MF on 01.12.16 at 1:25 pm

#240 Fien Wild Roasted Gonads on 01.12.16 at 12:56 pm

So why are we cutting rates? There is limited manufacturing in Ontario/Quebec.

Tourism? Why would any Americans come here?

Who cares if our portfolios tank further. Only smart (or dumb?) Canadians actually invest 1 and 2 invest in their own country and care about things like ETF’s.

This is so stupid but I already knew everyone running this country was a moron and I don’t care anymore.

So, how do we further profit off of this?

USD.CAD? Might be too late for that one. Euro.Cad maybe.

MF

#271 PRR Q1 Class 2'CB2' on 01.12.16 at 3:01 pm

Hey Garth –

I found this article just now. Appears Americans are looking to goose their housing market again – like they haven’t yet learnt?

http://www.nationalreview.com/article/429588/mortgage-default-and-fannie-mae

#272 Smoking Man on 01.12.16 at 3:10 pm

Obummer doesn’t think Americans will Vote for Trump

http://time.com/4177484/barack-obama-donald-trump-election/

Darn right they will, they have had enough of Cultural Marxism.

Tired of the hate being slung at white males.

Tired of shitty paying Jobs.

Tired of having to be so careful with words so they don’t offend.

He’s going to win by a land slide.

Dr. Smoking Man
PhD Herdonomics

Tired of the left agenda that never works.

#273 Aggregator on 01.12.16 at 3:15 pm

CANADA'S MORNEAU: WILL ADDRESS CANADIANS' CONCERN ON ECONOMY IN BUDGET
CANADA'S MORNEAU: KNOWS CANADIANS ARE CONCERNED ABOUT THE FALL IN THE C$

Get your popcorn ready.

#274 Gulf Breeze on 01.12.16 at 3:16 pm

#245 Saskatoon,

Ahh yes, socialism is so cruel! I’ll never forget those govt. jack booted thugs who kicked my door in, at 3:00 am and forced me to accept universal health care!

And then the sadists provided me with a meagre allowance, when I was too ill to work.

They deprived me of the opportunity to sleep under a bridge and starve to death…bastar*s!

#275 Smoking Man on 01.12.16 at 3:17 pm

Sure looks like mortgage rates are going up.

http://www.bankofcanada.ca/rates/interest-rates/canadian-bonds/

Ha

The fact that CAD keeps getting crashed but our Bonds are in fashion should tell you something.

2016 going to be ugly………..

#276 Gulf Breeze on 01.12.16 at 3:27 pm

Smoking Man,

In the case of the U.S. that is white whales, not males. Serious dietary issues down there.

#277 Greg on 01.12.16 at 3:32 pm

#215 For those about to flop:
———————————–

Arizona condo ownership is great. Good direct flights from Western Canada; the opposite of winter weather; lots to do.

Financially, buying a discounted foreclosure $70,000 condo at USD/CAD = 1.00, and seeing 50% price increase plus 43% currency increase has been nice. The economics of today don’t justify buying though. Same condo would be $110,000 usd, or $157,000 CAD.

Timing is everything. sometimes we get lucky.

#278 For those about to flop... on 01.12.16 at 3:33 pm

#268 Fine Wild Roasted Gonads on 01.12.16 at 3:00 pm
I wish they would just stick to their guns… but the poodle wants to tank the dollar….

A far better strategy might be for the CDN government to buy a massive amount of powerball tickets!! 1.5 Billion real dollars!

//////////////////////////////////

Why ? They would just give it to Indonesia to fight global warming…

#279 The American on 01.12.16 at 3:35 pm

At #264: Noel, I can’t confirm or deny if Americans spent $15Billion last year on tourism in Canada. If, however, your number is accurate, then it is little more than a rounding error by American standards and pocket books, which means as a whole that Americans are not going to Canada for jack squat. When you consider than a single state in the U.S., California, did nearly $118 Billion in tourism in 2015, I would have to say Americans could care less about traveling to Canada.

#280 For those about to flop... on 01.12.16 at 3:38 pm

It might just be a coincidence ,but I can’t help but notice that the Metrosexual Messiah (TM)has not been as visual the last 2 weeks since the poop started to hit the fan.
I could really do with a duck face selfie to reassure me right about now…

M41BC

The CBC reports T2 went to the Caribbean with his family for a holiday on the government Challenger, costing taxpayers $14,000 an hour. No word on if he intends on repaying. — Garth

#281 Godth on 01.12.16 at 3:41 pm

#272 Gulf Breeze on 01.12.16 at 3:16 pm

These libertards have no idea that their ideology is a recipe for complete societal breakdown, back to the jungle type shit. It’s not like the veneer is very durable as it is, and it’s only getting thinner all the time. The best way to cure a human of their illusions is to give them what they thinks they want.
Toronto Zoo baboons engage in violent power struggle after queen dies
http://www.cbc.ca/news/canada/toronto/babboon-battle-toronto-zoo-1.3342438
Sinead O’Connor – Drink Before The War
https://www.youtube.com/watch?v=dirzMDYz0rc

#282 MF on 01.12.16 at 3:44 pm

#268 Fine Wild Roasted Gonads on 01.12.16 at 3:00 pm

We should have sent that suggestion to Morneau. I have more faith in the powerball idea than his “strategy”. Same with Poloz.

MF

#283 For those about to flop... on 01.12.16 at 3:48 pm

#275 The American on 01.12.16 at 3:35 pm
At #264: Noel, I can’t confirm or deny if Americans spent $15Billion last year on tourism in Canada. If, however, your number is accurate, then it is little more than a rounding error by American standards and pocket books, which means as a whole that Americans are not going to Canada for jack squat. When you consider than a single state in the U.S., California, did nearly $118 Billion in tourism in 2015, I would have to say Americans could care less about travelling to Canada.

///////////////////////////////////

Everything is going to change once Long Branch Disneyland (TM ) is up and running…

#284 MF on 01.12.16 at 3:48 pm

#264 Noel on 01.12.16 at 2:32 pm

Maybe but why? Lol the US has its own attractions that far eclipse ours.

Friend’s dad owns a store that is close to the border in niagara. Says he can gauge the US economy by how many greenbacks he sees. Says things have been slow since 09 and remain slow with this low loonie “strategy”.

Anecdotal but is what it is.

MF

#285 For those about to flop... on 01.12.16 at 3:51 pm

#278 For those about to flop… on 01.12.16 at 3:38 pm
It might just be a coincidence ,but I can’t help but notice that the Metrosexual Messiah (TM)has not been as visual the last 2 weeks since the poop started to hit the fan.
I could really do with a duck face selfie to reassure me right about now…

M41BC

The CBC reports T2 went to the Caribbean with his family for a holiday on the government Challenger, costing taxpayers $14,000 an hour. No word on if he intends on repaying. — Garth

///////////////////////////////
The masses are hurting right now ,if they lave to settle for a tan line selfie so be it.
We’re all in this together right?

#286 For those about to flop... on 01.12.16 at 4:03 pm

The CBC reports T2 went to the Caribbean with his family for a holiday on the government Challenger, costing taxpayers $14,000 an hour. No word on if he intends on repaying. — Garth

/////////////////////////////////

All joking aside, after I pay my taxes I will probably only have made 2 hours worth of this joyride.
Still found a way to put some money into my TFSA though.

#287 MF on 01.12.16 at 4:05 pm

#283 For those about to flop… on 01.12.16 at 3:51 pm

Of course he doesn’t intend on repaying. He only cares about hurting Canada.

Lets hope the vacation goes so well he stays there, steps down, and we can be rid of him.

MF

#288 Leo Trollstoy on 01.12.16 at 4:06 pm

#198 BC Working Guy on 01.12.16 at 9:50 am

in a nutshell you say you are poor and want objective truth. then say you won’t believe any articles that talk about a booming US economy. then you say you would never invest in the stock market. perhaps what you meant to say is that you’re willfully being biased and avoiding wealth-building. i think that sums it up.

#289 SunShowers on 01.12.16 at 4:09 pm

The Royal Bank “of Scotland.” Like that matters. — Garth

——————————

What do you think would cause a bank (albeit a small one) to make that kind of announcement? Plain old financial ignorance? Or are they hoping to snap up the panic-sold “on sale” assets themselves for the ride up?
~~~~~~~~~~~~~~~~~~~~~~~~~
The CBC reports T2 went to the Caribbean with his family for a holiday on the government Challenger, costing taxpayers $14,000 an hour. No word on if he intends on repaying. — Garth

——————————

Apparently the standard practice in this scenario is for the acting PM (this has been going on for years, as the use of a Challenger is mandated for security reasons) to reimburse the taxpayers for the cost of an ECONOMY ticket, the equivalent of what he would have paid with WestJet. A tiny fraction of the $14,000 per hour Challenger cost. Kind of insulting, to be honest.

#290 Leo Trollstoy on 01.12.16 at 4:13 pm

let’s see. over 80k people employed in tech in bc. more than forestry, oil and gold industries combined. over 500k working in tech in bc/ont/qc and a person can’t find a job in tech? here’s a tiny violin playing just for u. lol. employability based on the individual and clearly not the industry as the tech industry is doing fantastic without u. sorry

#291 Leo Trollstoy on 01.12.16 at 4:14 pm

oh and section 8 tenants are the best. government pays 50% of the rent right into my account. tenant pays the rest. love em. wish all my tenants are as reliable as section 8. great tenants. keep the usd flowing my way pls

#292 Leo Trollstoy on 01.12.16 at 4:18 pm

The CBC reports T2 went to the Caribbean with his family for a holiday on the government Challenger, costing taxpayers $14,000 an hour. No word on if he intends on repaying. — Garth

politicians are all the same. can’t believe u suckers bought all that hopy changy stuff

#293 conan on 01.12.16 at 4:21 pm

“The CBC reports T2 went to the Caribbean with his family for a holiday on the government Challenger, costing taxpayers $14,000 an hour. No word on if he intends on repaying. — Garth”

Prime Ministers are not allowed to take commercial flights. He has to fly this way and is repaying the cost of a regular flight for him and his family.

Not a big dealio in my opinion.

So it’s not different this time? — Garth

#294 Josh in Calgary on 01.12.16 at 4:23 pm

#282 MF on 01.12.16 at 3:48 pm
Maybe but why? Lol the US has its own attractions that far eclipse ours.
———————-
If I had to guess it’s because lots of people like to travel to see things other than “attractions”. They like to experience different things and different cultures. It’s really tough to experience different cultures in your own country.

Any American tourists I’ve met love to come here and marvel at the unspoiled nature we have to offer. Trust me, they ain’t coming to Calgary for the night life (except for one week in July).

#295 Penny Henny on 01.12.16 at 4:28 pm

The CBC reports T2 went to the Caribbean with his family for a holiday on the government Challenger, costing taxpayers $14,000 an hour. No word on if he intends on repaying. — Garth
////////////////////////////////////////
Oh c’mon now. Is he supposed to fly Air Canada?
Is this any different the past Prime Ministers?
You were trolling with that one.

Actually I just relayed the news, without comment. — Garth

#296 CMHC is nuts on 01.12.16 at 4:29 pm

are you kidding me?
Condo sales with no cash down payment proposed by B.C. developer
Buyers would get a discount, which would become a virtual down payment
http://www.cbc.ca/news/canada/british-columbia/condo-sales-with-no-cash-down-payment-proposed-by-b-c-developer-1.3400084?cmp=rss

#297 acdel on 01.12.16 at 4:33 pm

#199 Smoking Man

Here, here, great link, this attempt of censorship by a radical minority (usually far left) wingnuts (NOT sorry if I offended any excessive far left wingnuts) that try and suppress our freedom of speech, expressions, ideas, such as Garth’s blog, by labeling us as far right xenophobes’, racists, women or man haters, or whatever label they attempt to pin on people for not agreeing to their views can literally kiss my a**! I am so sick and tired of it. I feel much better now!

Great Post Garth!

As a previous poster said, in ten years Canada will be a power house!

#298 For those about to flop... on 01.12.16 at 4:34 pm

#285 MF on 01.12.16 at 4:05 pm
#283 For those about to flop… on 01.12.16 at 3:51 pm

Of course he doesn’t intend on repaying. He only cares about hurting Canada.

Lets hope the vacation goes so well he stays there, steps down, and we can be rid of him.

MF

/////////////////////////////

I was thinking more along the lines of what’s the rush to have a holiday ?
In 4 years time he can sit around and do nothing for the rest of his life.

M41BC

#299 Bytor the Snow Dog on 01.12.16 at 4:36 pm

#160 Chastity Devine-

Another koo-koo NeoCon.

You’ll feel better if you let the butthurt flow through you.

#300 SunShowers on 01.12.16 at 4:36 pm

#293 Penny Henny
Oh c’mon now. Is he supposed to fly Air Canada?

————–

I don’t see why not.
It’s not like we don’t spend billions of dollars making air travel safe and secure.

#301 Lorne on 01.12.16 at 4:43 pm

#294 Penny Henny
The CBC reports T2 went to the Caribbean with his family for a holiday on the government Challenger, costing taxpayers $14,000 an hour. “No word on if he intends on repaying.” — Garth
////////////////////////////////////////
Oh c’mon now. Is he supposed to fly Air Canada?
Is this any different the past Prime Ministers?
You were trolling with that one.
…..
Actually I just relayed the news, without comment. — Garth
…….
So, “no word if he intends on repaying” is not a comment???

Is it? — Garth

#302 For those about to flop... on 01.12.16 at 4:48 pm

Well that brought the comments section to life for this time day….same time tomorrow Boss?

#303 jess on 01.12.16 at 5:05 pm

ologies

thinkable weapons? B61 Model 12 not a “new bomb” but an upgrade?
http://www.motherjones.com/politics/2015/07/nuclear-weapon-obama-most-expensive-ever
————–
Father of Koch Brothers Helped Build Nazi Oil Refinery, Book Says
New York Times‎ – 23 hours ago
The book, “Dark Money,” by Jane Mayer, traces the rise of the modern conservative …

“Buried deep in the massive end-of-the-year spending bill released late Tuesday night were provisions that not only prohibit the IRS from cracking down on groups like Conservative Solutions Project, but that block the Securities and Exchange Commission from prying into the political spending of public companies.”

#304 For those about to flop... on 01.12.16 at 5:07 pm

For all the people worried about the Metrosexual Messiah..
Good to see my homeland representin’

http://www.cnn.com/2015/01/06/intl_travel/world-safest-airlines/

#305 Godth on 01.12.16 at 5:08 pm

So it’s not different this time? — Garth

It’s never different this time, how many times do you need this reaffirmed? We have the benefit of a great deal of information this time around spanning (almost) the entirety of human civilizations. We just don’t learn, it’s that simple. We clearly can’t help ourselves, we’re just apes after all. What the (self entitled) elite does just gets to be a more bizarre and self destructive expression of what they’ve always done the closer we get to the end of a (so called) civilization. Why would it be different this time?
http://www.cbc.ca/radio/ideas/the-2004-cbc-massey-lectures-a-short-history-of-progress-1.2946872

#306 Bottoms_Up on 01.12.16 at 5:15 pm

The CBC reports T2 went to the Caribbean with his family for a holiday on the government Challenger, costing taxpayers $14,000 an hour. No word on if he intends on repaying. — Garth
———————————–
Oh, you mean like how Harper took the challenger to nhl hockey games and to kingston to visit his son?

You’re right. I guess it is the same. Too bad. — Garth

#307 New to the Game on 01.12.16 at 5:23 pm

Looking to get into the game and am looking for a fee based adviser to work with in the GTA. Don’t really know where to start and thought the blogdogs would have some ideas…

#308 Greg on 01.12.16 at 5:26 pm

#154 Greg on 01.11.16 at 11:47 pm
I just received my monthly mortgage statement from an Arizona bank. The mortgage is on a condo bought there in 2011.

The interest rate has been the bank’s “variable rate” (1.5%) +3.00%, total of 4.50%, for a few years now.

As of Dec 17, the rate rose to 6.50%! It looks like they have raised their “variable rate” by two percent, from 1.50% to 3.50%!

Yikes.

I will phone the bank tomorrow and get their explanation.

M40AB
——————————————–

False Alarm. Bank was bought by another bank, and a system glitch between the two bank systems bumped the rate to 6.50%.

It’s being changed back to 4.50%. I wonder how often this happens. I wonder how many would notice the change.

#309 For those about to flop... on 01.12.16 at 5:45 pm

We do have to look after the Metrosexual Messiah(TM) a little bit more when he is flying than we did with Stephen Harper.
I wasn’t too worried about Harper getting banged up if he hit turbulence as he has a “built in ” helmet!

M41BC

#310 Paul on 01.12.16 at 6:41 pm

#295 CMHC is nuts on 01.12.16 at 4:29 pm

are you kidding me?
Condo sales with no cash down payment proposed by B.C. developer
Buyers would get a discount, which would become a virtual down payment
http://www.cbc.ca/news/canada/british-columbia/condo-sales-with-no-cash-down-payment-proposed-by-b-c-developer-1.3400084?cmp=rss
———————————————————-
This has been going on for ever ‘Oklahoma deal’
Same as rent to own, Gifting the down payment,
Sell a house worth 500k for 550k show 50k down geo a 500k

#311 Daisy Mae on 01.12.16 at 7:05 pm

The CBC reports T2 went to the Caribbean with his family for a holiday on the government Challenger, costing taxpayers $14,000 an hour. No word on if he intends on repaying. — Garth
———————————–
Oh, you mean like how Harper took the challenger to nhl hockey games and to kingston to visit his son?

You’re right. I guess it is the same. Too bad. — Garth

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

This is a SECURITY ISSUE. Justin Trudeau is Canada’s Prime Minister. He’s not going to mix it up with the general population on Air Canada or any other airline. When was the last time any of us found ourselves seated beside the PM? LOL

#312 Willy2 on 01.13.16 at 8:02 pm

Mr. Turner,

– I simply would remove all those “firsters”. It’s a sign of someone who has too little attention.

#313 Willy2 on 01.13.16 at 8:17 pm

Did one Mr. Turner never heard of Harry Dent’s “Family Spending Cycle” and why that is going to lead to (Credit) Deflation ?

Harry’s Best-Before date was in the late 1980s. — Garth