Dead money

Poo 1 modified

Checked out your chequing account lately?

They’re now called ‘banking accounts’, which means no interest on balances. Actually, you have to pay to use them. At the biggest bank (RBC), the basic account costs four bucks a month and you can use it for only 12 transactions – after that, it’s a buck a time.

“This sucks big,” Alvin was telling me on the weekend. “I have two hundred grand sitting in my account now for two years because I was afraid to invest, and I thought I was at least getting half a per cent or something.”

Nope. Nada. And it’s estimated about $400 billion across the nation sits in a variety of bank accounts that deliver ziltch, yet provide the lenders with a deep pool of money they can lend out to the same schmucks who deposited it.

Savings? Forget it. The big banks pay 0.5% on most deposits, or 0.55% for a ‘high-interest’ account (bankers have a wicked sense of humour). The fruit guys pay 0.8%, and there are a number of wingy credit unions or fake banks, like Oaken Trust, which provide a greater return. Oaken, for example, offers 1.75% on savings, but you should be aware it’s a division of Home Trust, which is a big mortgage lending outfit hungry for funds to shovel into inflated residential real estate.

By the way, you might recall Home Trust was in the news last summer when a bunch of its brokers committed mortgage fraud by, among other things, falsifying buyers’ incomes on loan apps. Eventually several dozen were punted after the regulator moved in, finding about $1 billion in bum loans. Presumably a bunch of that money came from Oaken depositors, so thankfully the company is a member of CDIC (if you believe in deposit insurance).

Now, let’s remember that saving money is officially penalized in Canada ever since we got emergency interest rates in 2009. Most ‘savers’ are with banks, and so receive half a point. Meanwhile inflation in December was 1.6%. Fail. Worse, the few pathetic shekels of interest paid on savings are fully taxed at the depositor’s marginal rate. Even worse, GIC-holders are taxed annually on interest they don’t actually receive.

If you have a Big Bank high-interest account, after inflation and taxes your return is negative about -1.3%. You can stick savings in a TFSA and improve that – for a negative return of just over -1.0%. So, obviously, this is no way to build your wealth, prepare for retirement, get monthly income, bulk up money for a down payment or hustle capital for a kid’s education.

Saving is dead. Official monetary policy has destroyed a financial strategy that supported seniors for generations – shoveling life savings into low-risk bonds or other guaranteed interest-bearing investments to minimize the risk of losing capital while harvesting a steady and predictable income stream. Now that stream’s gone. Bonds pay nothing. The banks pay worse. And as more and more Boomers slide into retirement with mortgage debt and meager pensions, they face the greatest risk of all – running out of money.

For this you can thank central banks. When money pays nothing, it also costs nothing. So we’ve turned from a nation of savers to one of borrowers. A savings rate north of 20% has disappeared, to be replaced with a historic and mounting level of household debt – now above 170% of earned income. A nation of conservative little squirrels has morphed into one of crazed, granite-lusty leveraged beavers.

Well, no wonder EQ Bank’s made a splash, along with some other digital players like Zag. EQ this month launched itself into the big leagues by offering to pay 3% on deposits, or more than triple that of its competitors. The outfit also has no minimum amount, lets you move money around, photo-deposit cheques and will probably send you a free mug. It’s looking to attract ten thousand customers this year and garner $200 million in deposits.

But there’s a catch. EQ Bank is a division of Equitable Bank, which is an ‘alternative-mortgage’ provider. As you know, ‘alternative’ is not a great word these days, conjuring up images of diddling web sites and guys with trench coats and no pants. In the lending world, Alt-A mortgages fit between traditional loans (made to people with 5% down, no other savings and jobs) and subprime ones (for borrowers with damaged credit or a parole officer). The rate charged on Alt-A loans is 1-2% higher than for traditional ones, which suggests how EQ might start affording to pay vastly more interest than anyone else can muster. As well, Equitable does commercial mortgages, which always come with high interest commensurate with higher risk.

This ‘bank’ is also virtual. No branches. No ATMs. No tellers, advisors, loan officers or retail employees. It’s designed to exist on your iPhone, and it has no actual vaults full of money. Nothing to rob, of course, but then good luck if the servers are hacked.

EQ, Zag, Tangerine, Oaken or any other of these companies are not about to fold. As mentioned, we have modest deposit insurance in Canada – although it has rarely been tested. But the public appeal of digital banks providing no services and completely reliant on an Internet connection is another small indication of how monetary policy has failed us. By grinding rates into the ditch, whacking savers and rewarding massive real estate leverage, central banks have created asset bubbles which every million-dollar house sale in Toronto or Vancouver and every struggling senior proves.

We’re surrounded by risk. And stocks have little to do with it.

226 comments ↓

#1 NTH on 01.24.16 at 10:12 am

It seems that Bandit didn’t get our well wishes….

Feel better soon pup!

#2 Randy on 01.24.16 at 10:13 am

That dog has a great attitude..

#3 CJBob on 01.24.16 at 10:18 am

Garth: But the public appeal of digital banks providing no services and completely reliant on an Internet connection is another small indication of how monetary policy has failed us.
_________________
Monetary policy may have failed us, but the success of these banks isn’t an indication of that. Banks with no branches indicate that those under 30, and some of us over 40, don’t understand why anyone needs a branch. It’s a technical and generational change.

#4 Steve on 01.24.16 at 10:19 am

Its so true / people dreams now are of only wanting the best of the best / the best home / the best car / the best cottage / the best boat
Living simple is looked down on / and people’s introductions start with ” And what street do you live on ”
We need a wake up call / i miss my friends / lost in a sea of debt / ego / and materialism

#5 Sam on 01.24.16 at 10:21 am

Garth, a little late, yet still in time. I want to wish you and yours a Happy New Year. Give Bandit a hug. Thanks for everything.

#6 Jeff on 01.24.16 at 10:22 am

With the actual correction, stock are very cheap. Especially oil related stocks.

#7 The American on 01.24.16 at 10:23 am

Correction: “A nation of conservative little squirrels has morphed into one of crazed, granite-lusty leveraged beavers.”

Should read as, “A nation of conservative little beavers has morphed into one of crazed, granite-lusty leveraged squirrels.”

Beavers are smarter and more resourceful than squirrels.

#8 JRH on 01.24.16 at 10:25 am

Good Morning ! Maybe zero interest rates after all ?

#9 earlybird on 01.24.16 at 10:30 am

This is a big problem…so your money doubles every 144 years? No wonder people don’t save. This is where the younger generation and fixed incomers gets really, really screwed. Its the money you earn via labor that loses value every year. Money should at least break even. Even inflation 1.4% a year, it (doesn’t)adds up over the years…and we all know 1.4 is BS%….I slammed my Emergency Fund into Bank Stock, sick of losing money! This needs to change! Happy Sunday!

#10 Trumpeter77 on 01.24.16 at 10:34 am

I am first!

Could this be a reason why most Canadians are reported to not have enough money in their bank account to pay for one mortgage payment if they stop getting paid?

I dropped TeeDee as soon as I was told I have to pay to use their services years ago. Service charges? Don’t they make enough? What would be enough for the banks? Why do they need to make that much anyways?

#11 polecat on 01.24.16 at 10:35 am

Another warm and fuzzy post, we’re screwed.

#12 WallOfWorry on 01.24.16 at 10:42 am

Garth,

When you refer to Central banks I am assuming that you mean globally? I thought that you were a proponent of central bank co-ordination? We are at least seeing divergences in central bank policy so something has to give. Are we to believe that the US side of increasing rates will play out, or do we believe China, other emerging markets and Europe that more stimulus is on the way. Are we seeing globally a series of asset bubbles with something soon to pop?

I would disagree with you that the general stock market is not included in the list? At a minimum any prudent investor should be weighing the risks that we are embarking on a bear market in the equities market?

I guess David Stockman is just like Sprott but to blindly ignore alternate perspectives is irresponsible at best?

http://davidstockmanscontracorner.com/700-days-in-no-mans-land-why-they-cant-keep-it-up/

#13 dicky beal on 01.24.16 at 10:43 am

Peer to peer lending will be the new method of getting a higher yield and the less government involvement the better. You know the banks will try to shut them down. Investing is about moving your wealth from the juiced to suppressed asset classes. Stocks and bonds- to real estate- to precious metals. It is precious metals time. It will be the only thing that will maintain your wealth into the next asset class shift.

#14 DJ on 01.24.16 at 10:44 am

Bonner of Agora(?) talks of an economy in the US that runs on 57 trillion of credit; not real money. Too much for any meaningful government bail out again. Will the banks take over, if they haven’t already, as the managers of the country and economy? Too far fetched?

#15 old gringo on 01.24.16 at 10:45 am

And a bright and cheery “good morning” to all.
Hope Bandit feels better today.

#16 JimmyD on 01.24.16 at 10:47 am

Huh. I guess everyone is still asleep or at church. Ahem.

*First*

So I’m a guy in debt from a failed first marriage. I have since remarried, am renting and we make good money. We are aggressively paying off a small amount of debt (25k) at 7% interest (loc) at about $1300/month. Does this seem like the best way to use our money or should I be investing or something?

#17 Drill Baby Drill on 01.24.16 at 10:50 am

BMO is paying for deposits made into a TFSA 2% until March 31/16. It is not advertised only if you ask.

#18 Canine Bank Unit on 01.24.16 at 10:56 am

Why not start a Garth Bank, or better yet Bandit Bank, your motto, “throw us some cash, and we’ll throw you a bone”

#19 };-) aka Devil's Advocate on 01.24.16 at 10:57 am

Unsustainable.

#20 Ray Skunk on 01.24.16 at 10:57 am

Happy Tangerine (formerly Orange Guy) customer here. Pulled the plug on TD last year (finally) after their minimum balances to avoid fees went fully off the charts – with little notice, I add. I was only really using them for their over-the-counter US$ service anyway. As I was in the branch closing up, some woman at the wicket next to me was going all-in with an RESP with them. Poor kid won’t have two pennies to rub together.

Obviously all my registered accounts are with a man with a beard, but for day-to-day banking I’m happy.

EQ has a nice teaser going on right now, but read some horrendous reviews of getting set up with them.

#21 smbs09 on 01.24.16 at 11:01 am

thanks for taking the time to talk about the banks with high interest savings account.

#22 Ryan the Thirtysomething on 01.24.16 at 11:05 am

Amen. Thanks to the lessons learned on this dog and cauliflower blog over the years, all I keep in a savings account long-term is a few thousand bucks for a small emergency fund.

#23 questionable? on 01.24.16 at 11:25 am

3yr cashable GIC pays 2.75% p/y if kept to maturity,
tax receipt says $1375 this year, but I cash early at 1.75% do I get a tax refund if I get less than I was taxed on?

#24 Smartalox on 01.24.16 at 11:27 am

Home Trust had $1Billion in fraudulent loans? Even if the loans were for a million apiece, that’s one thousand loans!? And I’m pretty sure those loans weren’t all for $1Million each, which means there were probably more than that.

Makes one wonder if they had ANY legitimate businesses at all.

The actual number was $960 million of total originations of just over $7 billion. — Garth

#25 Scott in Gibsons on 01.24.16 at 11:27 am

OMG! I’ve been banking with credit unions for most of my life and had no idea that they’re “wingy”! Would you please tell the credit union members who read this blog why we should be concerned. Thank you!

I did not say all are wingy. They’re not. Some are. — Garth

#26 bob the train on 01.24.16 at 11:37 am

One of the many reasons central banks need to be eliminated and we go back to a gold standard.

#27 Love my Kia on 01.24.16 at 11:42 am

For all the Millennial haters out there, its not a sense of entitlement they have, they are simply seeking out better opportunities that are much harder to come by these days. They are doing what anyone in any generation does to advance themselves. If you have kids you will understand this.

http://www.businessinsider.com/why-millennial-employees-are-quitting-2016-1?utm_content=buffer43498&utm_medium=social&utm_source=facebook.com&utm_campaign=buffer

#28 Tudor on 01.24.16 at 11:46 am

Moving from a big bank to a credit union has been one of the better financial decisions I’ve made. And no, it’s not their astronomical savings rates. Their level of service is outstanding compared to a big bank, their fees significantly lower for oddball services like cashing USD cheques, and they’re generally more flexible and helpful.

#29 Chris on 01.24.16 at 11:54 am

True, online banks are attractive. No waiting in line for tellers who take a break just as you get up to the front of the queue. No having to prove your identity because there are no more passbooks (enter your pin please, OK now two pieces of ID, OK I still don’t think it’s really you, let me get a manager…). No more opening hours (sorry we close at 5pm on a weekday, yes we know that’s when you get off work). And most importantly no more boring videos of happy people taking vacations with their GIC earnings while you wait (in 25 years, $100 per month can be….).

Saving has always been a waste of time and not a good way to put your money to work for you. That has never changed. That is based on the banking principle which we all know: If you deposit money in a bank, the bank is free to lend it out at a higher rate of interest than they are paying you.

Putting money to work is pretty easy and simple. Invest in profitable enterprises. We are capitalists. That means that we own the means of production, privately. So you want to own things that make money.

At any rate the continued fascination with banks, and putting money in banks, has always been something that makes no sense to me. I mean, you can give a bank your money, at 0.5% interest, or you can loan the same bank the same money at above 5% (yes, banks sell debt instruments, preferred shares and bonds, yes you can buy them). Banks are profitable. The holders of the security own the company (just ask Carl Icahn). So if you really like banks, then start buying them (they are publicly traded and sell their debt to everyone). Then you get to share in the profits.

C.

#30 TM on 01.24.16 at 11:58 am

Bank of Canada Lawsuit

http://www.watershedsentinel.ca/content/bank-canada-lawsuit

Bogus. Meaningless. — Garth

#31 AB Boxster on 01.24.16 at 11:59 am

Kind of doomer sounding Garth?

Take heart that our new Liberal federal government ,bereft of any meaningful understanding of economics, or original ideas, other than selfies and diversity, will soon embark upon one of the most ambitious deficit spending sprees that Canada has ever seen.

The Canadian stock market will certainly react positively to this because the dollars pumped into the economy will impart a sense of ‘irrational exuberance’ .

And as the poodle man continues to lower rates, this will further goose the market.

This should last about 3-4 years, until once again, Canada and the world, recognizes that the jig is up.

By then, the You-all’s will have raised their rates to a reasonable number that savers can take advantage of.
And as inflation begins to rise due to the low Canadian dollar, rates in Canada will rise.

The savings moral?
Good time to invest in the depressed Canadian market for the next 3 years or so, while the good times roll and deficit fund flow. (But don’t be stupid about it)

Then get the hell out any Canadian equities and put your money in the 12% safe bonds that the provincial govts will have to float to pay down their crushing debts.

Borrowers will be decimated, housing will be crushed.

But savers will have their day once again.

#32 kommykim on 01.24.16 at 12:16 pm

RE:

#10 Trumpeter77 on 01.24.16 at 10:34 am
What would be enough for the banks? Why do they need to make that much anyways?

It’s never enough. Revenues must increase every quarter or the shareholders will revolt. This is capitalism. The only way to beat it is to buy into the market.

#33 conan on 01.24.16 at 12:17 pm

Uber type apps comes to banking……. Will end up eliminating hundreds of thousands of jobs.
Technology is a two edged sword.

The Charge of the economically F’d

Apps to right of them
Robots to left of them
TFWs in front of them
Theirs not to make reply,
Theirs not to reason why,
Into the valley of EI

#34 joblo on 01.24.16 at 12:22 pm

Hooray for AB Boxster!
Someone offering a solution and strategy, nice.
Now when is the time to get out of Dodge before the pitchforks come out especially in ON & AB?

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#36 batt519 on 01.24.16 at 12:36 pm

The best bank…
https://www.bitgold.com/

#37 Doc on 01.24.16 at 12:38 pm

Best wishes to Bandit. Interesting name. My airedale Jock is a thief as well. He favors underwear and socks. A lovely Italian houseguest last summer had to buy a new bikini after he particularly enjoyed the bottom half of her garment. Her loud, annoyed and colourful response to him was followed up by the gift of a new name tag. He wears it proudly. He is officially known now as Jock- The Despised.

The banks are also bandits; aka banksters but they are not loveable. My bank (RBC) just changed their online website. A recent Heloc loan to buy a car had an entry for Loan Protector Insurance Premium and a separate entry for Monthly Interest charged. I immediately felt my blood pressure going up because the insurance premium was almost as much as the loan interest.

After a chat a few days ago with my advisor in which he confirmed that bank insurance was the most expensive in the land, I went through a lengthy process involving foreign call centres to learn how to cancel the insurance. It involved refuting several of their self serving arguments for keeping it. Cancellation supposedly will take effect when they receive my letter with client numbers, signatures etc.

Now that the online website has changed I see the insurance premium entry has now disappeared though the charge remains. That charge has been rolled into Monthly Interest charged. I expect fewer of us will cotton on to their outrageous rates now that they’ve concealed that charge.

Jock is a theif but its not money he’s after. His motivation isn’t greed. I’ll close with a Bob Marley quote, “Money is numbers and numbers never end. If it takes money to be happy, your search for happiness will never end”.

#38 Bram on 01.24.16 at 12:48 pm

#16 JimmyD on 01.24.16 at 10:47 am
We are aggressively paying off a small amount of debt (25k) at 7% interest (loc) at about $1300/month. Does this seem like the best way to use our money or should I be investing or something?

You are joking, right?
There are NO investments that pay 7% *AFTER TAX*, so 10%+ which do not come with extreme risk.

You should stop all unnecessary spending, and put it ALL towards that debt. Your imaginary investment most likely will not be doing 10%.

Bram

#39 CREA on 01.24.16 at 1:02 pm

From: CREA (Cauliflower Retailers Education Association)

To: Mr. Turner,

Recently your blog has devoted a great deal of attention to the cauliflower market, and we feel we need to respond to some of your slanderous and erroneous assertions with the following clarifications.

1.Cauliflower is not overpriced, as you suggest. Market fundamentals have pushed the price to $7 and more, not a speculative bubble. We encourage Canadian shoppers to get in this market, or risk being left behind forever as more immigrants and investors clean out the produce aisles. (And they aren’t building any more Safeways!)

2.Cauliflower is proving extremely popular with offshore buyers and is served very nicely with a complement of HAM.

3.There are many still available lower-cost cauliflowers on the market, which we encourage buyers to pick up, rejuvenate with mineral water and spices and turn into investment vegetables to sell to others. Many such vegetables exhibit very good bones and are low maintenance, often with a water view. They simply await your finishing touches! For millennials, this is a sure fire, proven way to get out of your parents’ kitchen and start cooking for yourself!

4.Cauliflowers can also be purchased as investments and rented to others. It is, of course, always better to be the one renting out, rather than renting and paying someone else’s grocery bill – only losers would do that!

5.Cauliflower is from a charming, quaint, up-and-coming vegetable group. It has some lovely rustic qualities and is ideal for cuisine builders to make it truly your own!

6.Cauliflower has excellent edge-of-the-counter appeal and is always well-presented, shows very well and can be made into delicious dishes with the already-approved renovation/recipe plans provided. Much better than those ghastly brussels sprouts always being discounted by motivated sellers.

7.We urge buyers to purchase cauliflower only from accredited retailers, even though prices may be higher. We urge buyers for their own health and safety to avoid any FSBO (For Sale Brassica Oleracea) being offered on craigslist or kijiji or similar platforms. Dangerous and unregulated!! Accredited cauliflower retailers go through a thorough job application process, often have several hours of training and must wash their aprons daily.

8.Even at $7.99, the CREA price index for cauliflower remains stable and promises great long term returns on this culinary investment. The 2016 HPI (Herb & Vegetable Price Index) projects cauliflower to reach prices of $12 to $15 this year in Canada, at which it will still be a bargain and a valuable kitchen asset for anyone.

9.In a parallel retail world, real estate, many buyers in places like Toronto carefully shop around for “schools” when what they really want to find and are too ashamed to say is neighbourhoods without too many people of colour for their tastes. We understand! We are unabashedly proud of cauliflower’s whiteness, and its closest neighbours on the grocery shelf include garlic, leeks, onions, cabbage, potatoes and other inclusively light-skinned vegetables. Good old-stock Canadian food products! (No wonder Stephen Harper loves cauliflower! Proud of you, Prime Minister!!)

10.Finally, never forget that cauliflower at any price contains only 0.1 g of saturated fat and 80% of your daily Vitamin C requirement per serving.

Remember: Nutrition, Nutrition, Nutrition!!!!

Thank you for posting this clarification, Mr. Turner, and we remind you of the possible legal consequences should there be further defamatory comments about cauliflower posted on this blog.

Sincerely,

CREA

(Cauliflower Retailers Education Association)

#40 Alberta Blue Blood on 01.24.16 at 1:22 pm

I’m so far behind, I think I’m first.

#41 Retired Boomer WI on 01.24.16 at 1:30 pm

“Emergency Interest Rates” were probably one of the more stupid ideas foisted in recent years.

So, why were LOW rates needed? To protect the stupid (borrowers), and to create more stupid borrowers?

A nice “flushing” recession might have been preferred.

note: we are still not ‘cleansed’ of faltering companies, but have assisted their existence with low cost $$. Same with marginal personal borrowers who perhaps should have been forced in insolvency.

******

I switched from a Bank to a Credit Union years ago. Why? The Banks return on capital parked there insufficient, their service, and hours mediocre while their costs had increased.
Since I do not borrow money, I don’t care about the CU’s lending rates. Their saving rates on my ~$15G in emergency funds is 2% per annum. Decent.
No fees for my checking account, no foreign ATM fees, etc helps. Who NEEDS a Big Pig Bank? Not me…

Yes, we need to gently raise interest rates throughout 2016. While Janet was late to the party, at least she acted. Higher interest rates will not be taken easily but the medicine (rate increases) need to be administered on time going forward. We need to end this market distortion.

#42 JSS on 01.24.16 at 1:30 pm

Saving money is a habit for many Canadians, even though we all know that the interest rate is literally zero, or negative in many cases. As early as fifteen years ago, you could get savings rates of say 3-4%.

I like to keep a bit of money, say three months of salary, in cash. This plus a severance in the event I ever got laid off, would hold me down for about a year. There’s always a LOC, but people don’t necessarily trust banks and their contracts.

This habit of having some money in savings happened to me, when I first got laid off over a decade ago. Man was I lucky. Was off for months.

We’re living in tumultuous times people. No trust with employers, banks, government policy. Can’t blame people for hoarding cash. Even knowing that they’re losing money on the cash sitting in a savings account.

#43 Don Derc on 01.24.16 at 1:31 pm

Garth – you’ve identified another mine, one of many, that lie in the fields of our Canadian financial future. Investing today is like walking through a dog park loaded with doo-doo – constantly watching, and changing direction to avoid financial (or leather shoe) catastrophe.

On one hand you’re wrong Garth – Cdns were at zero percent savings rates at least 8 years ago – but I get your point – now a nation of irresponsible borrowers.

I still save – hordes of cash – because I’m buying. Constantly hunting. Buy low sell high buy low sell high.

I think the main point here today, and it’s been hammered over a few times, is that we are being squeezed. And the TV media response as to why is heartily eaten up by voters as the reasons are defecated onto the dinner plate before us.

As you pointed out with CREA – it’s a culture of deceit – lie, spin, defecate – whatever. It seems the Cdn mantra is that you have to screw someone over to get ahead, which leaves us without a financial community to save ourselves from big corporations, bought and sold governments…and each other.

What is the answer? Cash is king folks. Debt is to be managed responsibly – messages that make you successful only if you carried this mantra from the day of your teens.

I’m buying back into the market next year. The buying opportunities are here already. This country is gonna get real ugly….

#44 triplenet on 01.24.16 at 1:38 pm

#39 CREA
…..enough already.
Cauliflower is available at Quality Foods stores on VI – 2 for $5.00.
or $2.50 each.

#45 Retired Boomer WI on 01.24.16 at 1:39 pm

Garth-

Todays’ post sparked an interest here in “how does a nation (or several nations) turn around their situations from low interest/ no interest to the sustainable rates paid on savings of yore?

A fair question certainly.

It was not that many years ago a mortgage cost about 7% and your savings earned about 5%. Are those numbers so “unreal” today?

#46 No Canada, No on 01.24.16 at 1:41 pm

CREA, it’s a good one.

CNBC (Cauliflower News and Business Channel) is preparing similar letter about expensive yet cheap cauliflower shares trading on NASDAQ/NYSE.

Get balanced Cauliflower portfolio, mixed with other bubblicious assets!

#47 Macduff on 01.24.16 at 1:43 pm

This is a helpful blog post that certainly spells out the problem with cash. So Garth is it therefore becoming a more prudent investment to borrow to buy high quality equities, especially if the interest on non-reg accounts is tax- deductible?

#48 TurnerNation on 01.24.16 at 1:45 pm

Welcome to Shock Capitalism folks. Shocked at your bank statement, grocery receipts. Shocked your Cowtown house ain’t selling and worth less than you owe.

The future: Masses living on $15/hr.
Those higher up in the control pyramid will do better: $100k+ salaries with sunshine.

Some professions hiring useful idiots willing to serve our elites and crank the screws on us: professors, police, jail guards, civil servants, crown corps., ‘security’ forces, military, lawyers, bankers, C-level execs and consultants. All, serve a valuable layer above them. Funds they collect flow upwards. Student loans. Fines. Utility costs. Interest. Taxes. Doing the dirty work. And will be paid accordingly.

The rest, useful and distracted slaves. Ground into our minds: Racism! Feminism! Gender issues! Education! Everything must change.

#49 Mark on 01.24.16 at 1:58 pm

Cash “savings” accounts and “interest” have always been ‘the’ road to financial ruin for seniors historically. With the exception of the past 10-15 years, the asset class has never provided a return that has come anywhere near matching the returns available in a diversified portfolio or even most other asset classes.

The low interest rate, almost deflationary environment has been excellent for seniors, pension funds, and other heavy fixed income investors generally. It has boosted their assets beyond what ordinarily would be the case, reduced the taxation on their “savings”, and facilitated government borrowing for social benefits provided to seniors dramatically beyond what would ordinarily be affordable even in a ‘normalized’ rate environment.

Its an environment, which last happened under Trudeau 1.0, that seniors should absolutely be terrified of. With interest rates high on account of inflation. Real after-tax returns on fixed income go significantly negative. This means that despite fixed income (including savings accounts) paying “high” interest, by the time that the corrosive effects of inflation and taxation are taken into account, fixed income actually destroys significant amounts of value even if seniors are lulled into a sense of complacency on account of receiving double-digit returns.

For instance, someone brought up the example of Brazil yesterday, where, on account of high (10.7%) inflation, their banks have to pay a 12% rate of interest on cash ‘savings’. Put a 40% tax rate on that, and the real after-tax return is actually -3.5%/annum. Contrast this with putting it in that Canadian “orange” bank that Garth references above — 0.8% interest, 1.6% inflation, and the same 40% tax rate gives you a real after-tax return of -1.12%/annum. Thus, despite the dramatically lower “interest rate”, the Canadian bank is actually paying an after-tax rate of interest dramatically in excess of that of the Brazillian bank.

#50 Bytor the Snow Dog on 01.24.16 at 1:59 pm

Billions in fraudulent loans and no one went to jail? If not, why not?

#51 Leo Trollstoy on 01.24.16 at 2:05 pm

hahahaha eq owned by a mic oh the irony of all of this hahahaha

#52 bertvl on 01.24.16 at 2:07 pm

Great post, Garth, I enjoy reading your blog, even if I think cats are better than dogs (sorry!) :)

You’ve reminded me to do something with the cash in my 0.8% “savings” account. I’m having difficulty deciding, though. Do I put the approx $5000 into my TFSA portfolio, or do I pay down my car loan (interest rate: 2.9%)? I’m leaning towards paying down the loan…

#53 Cauliflower Index. on 01.24.16 at 2:08 pm

Tangerine has a few locations

https://www.tangerine.ca/en/ways-to-bank/tangerine-locations/index.html

#54 Bottoms_Up on 01.24.16 at 2:11 pm

#10 Trumpeter77 on 01.24.16 at 10:34 am
———————
They need to make that much because:

-they have employees, executives, bonuses, dividends, utilities, rents, taxes etc. to pay

#55 Mark on 01.24.16 at 2:14 pm

“It was not that many years ago a mortgage cost about 7% and your savings earned about 5%. Are those numbers so “unreal” today?”

Yes, those numbers are unrealistic over the long term. Why? Because we generally accept that the economy cannot grow much more than 2-3% on a real basis. And inflation is targeted to be approximately 2%.

It is not realistic for “savers” to capture the entirety of economic growth in their returns on their ‘risk-free’ savings. Historically ‘savings’ accounts have only kept up with inflation, and maybe a few additional bp. After all, over the long term, an equity risk premia must be provided for those who take risk in the economy.

So with such assumptions in place, a cash ‘savings’ return of 0% real (2%), a long-term fixed interest investment return of 1-2% real (ie: 3-4%), and an equity return of 5-6% real (7%-8% nominal) is what the economy can support.

The numbers, of course, can go up and down on account of shorter-term cyclicality. But the only way that “savings” accounts rates will ever return to 5% on a sustained basis (ie: not just because of a short-term market freak-out, or bubble in some other asset class creating a severe demand for funding) is if the assumption of 2% inflation is significantly questioned.

In fact we are likely to see a continuation of long-term interest rate cyclicality for a considerable period going forward, as the interest rates paid in the 80s, 90s, and even the 2000s to some extent substantially exceeded the rate of economic growth. Creating more fiat claims on the economy than the economy actually has production and assets available. A prolonged period of negative real interest rates hence is required to reduce the quoted base of financial ‘savings’ to match that of the available output in goods and services. Additionally, Canada hacked a meaningful equity risk premium for most of the past 30-35 years, and risk premia will also need to mean-revert over time. Its not all doom and gloom though — there are specific ways one can trade such a reversion, or simply hold a balanced portfolio and one will at least be protected from what is likely to be a slow-motion fixed income armageddon.

#56 Bottoms_Up on 01.24.16 at 2:15 pm

#45 Retired Boomer WI on 01.24.16 at 1:39 pm
————————-
Even as a kid 3 decades ago i heard my father complaining how bank accounts paid 5-6% but inflation was 8-9%….savers have always got the bum end of the stick.

#57 Mark on 01.24.16 at 2:17 pm

“hacked ” = has lacked. Sorry everyone!

#58 Thomas on 01.24.16 at 2:17 pm

I think you should have a sit-down with this writer:

http://business.financialpost.com/personal-finance/debt/the-good-the-bad-and-the-ugly-of-canadian-household-debt-should-we-be-worried

They are clearly confused.

#59 common sense on 01.24.16 at 2:28 pm

#48 TurnerNation

Very well said.

Upper or Lower class…and next to nothing in between.

As Peggy Lee sang ‘Is that all there is?”

#60 the Jaguar on 01.24.16 at 2:29 pm

Stop picking on Canadian banks. They’re just trying to scratch out a living like every other company. Most of you own shares in them and have a financial interest in their success. It will be interesting to see how things progress with the economic slowdown. As the heavy consumption cycle comes to an end they will need to find other ways to make money and increase share value. Might have to shut some of those 10,000 branches. Reduce hours of business. Find other ways to give the boot to people standing in line all day to do transactions that essentially cost the banks money. We live in a digital age now. Who needs all that real estate? Thousands of small towns all over the country with little bank branches in buildings where the real estate is owned not leased. There must be an opportunity somehow to ditch some of them. Course the staff would be impacted as well. That’s another savings for them, of course. If they need to hire more staff pretty sure they could find some where the labour costs are cheaper. That will give the bank haters more reasons to gripe. It’s a lovely day in Mr. Rogers neighbourhood….

#61 Brazil ex-pat on 01.24.16 at 2:42 pm

Let’s be clear here. Saving is dead in N. America. I’m happy converting my USD to $R and getting 12%. Yes Brazil is in trouble. Who isn’t? Everyone is. Brazil is about to open casino gambling and Foxconn is opening up a billion dollar cell phone plant with the low $R. The Real will go back up. Its only a matter of time. And my 12% compounded is doing just fine thank you.

#62 GORDIE BEAMER on 01.24.16 at 2:46 pm

Sign of the times you cant live a simple live anymore,job for life,company pension are gone along with savings in bank gic .CHANGE invest as GARTH suggests .I did in the 1990s lol but i still buy local,canadian products &domestic cars.

#63 Brazil ex-pat on 01.24.16 at 3:01 pm

#50 Bytor the Snow Dog on 01.24.16 at 1:59 pm
Billions in fraudulent loans and no one went to jail? If not, why not?

++++++++++++++++++++++++++++++++++++

Easy. Because just like here in Brazil where corruption is rampant, Wall Street bankers own the government. Pretty simple really.

Too bad more countries people were not strong like the Moldovan’s:

http://www.bbc.com/news/world-europe-35394535

#64 Chris in Nanaimo on 01.24.16 at 3:05 pm

Well I bank with the ‘Fruit guys’ who happen to be owned by Scotiabank, so I kinda hope they have a stable long term outlook.

I like my no-fee bank. Not having physical branches does have a few downsides. I recently had to wait 3 days for a bank draft to be mailed to me to pay for a new car. Also I’m off the US twice this year and haven’t figured out an easy way of accessing physical US dollars without incurring exorbitant ATM fees. With a branch at least I could go in and be given US dollars.

#65 Brazil ex-pat on 01.24.16 at 3:10 pm

#30 TM on 01.24.16 at 11:58 am
Bank of Canada Lawsuit

http://www.watershedsentinel.ca/content/bank-canada-lawsuit

Bogus. Meaningless. — Garth

+++++++++++++++++++++++++++++++++++++

“But in 1974, the Liberal government of Pierre Trudeau was quietly seduced into joining the Bank for International Settlements (BIS) – the powerful private Swiss bank which oversees (private) central banks across the planet. The BIS insisted on a crucial change in Canada.

According to The Tyee (April 17, 2015), in 1974 the BIS’s new Basel Committee – supposedly in order to establish global financial “stability” – encouraged governments “to borrow from private lenders and end the practice of borrowing interest-free from their own central banks. The rationale was thin from the start. Central bank borrowing was and is no more inflationary than borrowing through the private banks. The only difference was that private banks were given the legal right to fleece Canadians.”

Looks like T2’s dad has crawled out of his grave to bite his son in the bum.

The BIS does not control the Bank of Canada or any other central bank. This is a giant non-story only tinfoilers read. — Garth

#66 acdel on 01.24.16 at 3:11 pm

Here’s a B.S. article.
The author is not considering the housing bubble which will eventually pop!

http://business.financialpost.com/personal-finance/debt/the-good-the-bad-and-the-ugly-of-canadian-household-debt-should-we-be-worried

#67 Doug t on 01.24.16 at 3:19 pm

The house always wins – the banks continue to record massive profits off the backs of its customers- might as well spend it on vacations, PM’s, and land

#68 Leo Trollstoy on 01.24.16 at 3:23 pm

don’t see the problem w big bank service. always get great service. what charges? if charged i ask ‘pls remove charge as customer service gesture?’ always removed. and why ppl complaining about low savings rate? been a slow accident for 2 decades. not a surprise. like wondering why yer teenager is a crappy human being. u see that coming for yrs. get over it.

#69 acdel on 01.24.16 at 3:29 pm

Quote: From another blogger from the link I attached.

The link to the housing market is interesting:

“On the other hand, the median assets of families with debt rose by $180,000 in the same period. Indebted households got considerably richer in spite of their greater debt load.

Of course this stupid article doesn’t mention that these “assets” are largely made up of one asset which is the Canadian family home, which is now the most overvalued in the world. Overvalued by 89% with reference to rent and 35% with reference to income.

http://www.economist.com/…/21648624-housing-markets…

When that massive bubble bursts, and it will as unemployent continues to rise towards 8%, then suddenly this article is so much toilet paper.

#70 BS on 01.24.16 at 3:38 pm

conan on 01.24.16 at 12:17 pm

Uber type apps comes to banking……. Will end up eliminating hundreds of thousands of jobs.
Technology is a two edged sword.

The argument that if we make something more efficient then we lose jobs is lame and not true. The money people save on banking or other services will go to other parts of the economy. The consumer is the beneficiary because they get the same banking or taxi type service for less money and then have that money to spend on other things. Jobs are created in other areas.

#71 Ken on 01.24.16 at 3:38 pm

The increase in Bank profits sure shows us who’s seriously getting ripped off. I only have three words for the financial institutions of today. Usury, Money Changers, Their absolutely the thieves of the modern era

#72 BS on 01.24.16 at 3:52 pm

Brazil ex-pat on 01.24.16 at 2:42 pm

Let’s be clear here. Saving is dead in N. America. I’m happy converting my USD to $R and getting 12%.

The BRL is down almost 60% in the last 5 years in USD. You are fooling yourself if you think you are getting 12%. You would have been much better off taking 1% and keeping it in USD. Especially if you are taxed on that 12%.

http://www.xe.com/currencycharts/?from=BRL&to=USD&view=5Y

#73 acdel on 01.24.16 at 3:54 pm

On a personal note, off topic with the previous posts, but I have been using ING/Tangerine for a number of years and the service has always been great. Sure, it takes a couple of days to transfer but no fees! Not sure about EQ, best to wait a year or so unless you have no fear. My last opinion for the night, have a good one!

#74 A box in the Sky on 01.24.16 at 3:58 pm

“Savers” are leeches. They look for something for nothing and think they should get handsomely compensated for risk free investments.

They don’t do anything to push consumption forward in the present day because they’re way too frugal/cheap and they don’t do anything to provide growth for the future because they won’t invest in risk assets (ie. stocks).

If everyone was as righteous as them the economy would circle the drain.

Seriously F savers.

#75 liesnothingbutdamnlies on 01.24.16 at 4:06 pm

I hate banks and their low interest rates that punish savers and help idiot borrowers buy stupidly expensive houses. I hate worrying about where to invest my money and I especially hate thinking about money. I would just like to earn a decent return (5%) which isn’t a hell of a lot but at least above inflation and not have to worry about the stock market and all its bs highs and lows. There are far more important things in life other than money and stock markets and houses. I’m just so sick of it that I’ll be taking a news fast -no radio, tv or reading this blog ( although I find it informative and entertaining) for the next month.

#76 JimH on 01.24.16 at 4:09 pm

#26 bob the train on 01.24.16 at 11:37 am
“One of the many reasons central banks need to be eliminated and we go back to a gold standard.”
==============================
Nonsense!
Have you been living under a rock?

#77 Entrepreneur on 01.24.16 at 4:19 pm

Online banking or shopping slowly whittles away a community. With an aging population on pension, not working, less transactions. Even my Credit Union asking for new clientele.

Noticed on the news today former NB Premier Jack McKenna is worried about his failing community & asking refugees for 3 year stay in a small community to start a business before moving to a big city. He also wants to be like a Toronto.

Yeah, right. Right here in my community people are not doing so well so let us exchange them with refugees/immigrants. I don’t think so. Refugees/immigrants are welcome to join us but not to prop up your failing community. This is not a solution.

Bubble heads, cauliflower heads ain’t going to work no more, no more, ain’t going to work no more. Bubble, bubble, pop, pop. Oh, what to do?

#78 Julie K. on 01.24.16 at 4:22 pm

#50 Bytor the Snow Dog ~ “Billions in fraudulent loans and no one went to jail? If not, why not?”

*****

Asked pretty much the same question mid-Oct, post election, after the books were reviewed by our newly elected gov’t.

Funny, but last I heard, Mr. Harper was off on another vaykay in Florida, not a care in the world.

#liarliarpantsonfire

#79 Mark on 01.24.16 at 4:25 pm

“Of course this stupid article doesn’t mention that these “assets” are largely made up of one asset which is the Canadian family home, which is now the most overvalued in the world. Overvalued by 89% with reference to rent and 35% with reference to income.”

That’s a very good point. Both the assets of the creditors, as well as the assets of the debtors have been inflated by the RE bubble. “Grandma” has an excess quantity of GICs sitting on the ‘assets’ part of her personal finances, which have largely been lent out by the banks to support RE borrowers (remember that every dime a bank lends out must originally have been borrowed from its customers/shareholders/bond investors). “Grandson” has a house that’s artificially inflated on account of so much lending.

In the short term, there will be a mismatch, ie: houses will have depreciated significantly, without a corresponding depreciation in the quoted market valuation of the debt of the lenders. However, as time goes on, the realization that the debt simply isn’t worth the pledged assets will represent a significant problem for the Canadian banking system. CMHC will do their best to pump up mortgage valuations by redeeming the paper they guarantee at 100 cents on the dollar (as they’re legally obligated), but eventually the CMHC’s relatively limited capacity will be over-run.

The big winners will be the banks (who are effectively ‘short’ the housing market through their activity), and people who have invested outside of the RE/GIC “complex”. Even the banks might not end up being really ‘winners’ as the success of their strategy is highly dependant on the CMHC/GoC paying all the claims in full, and for little political pushback to exist. Which seems implausible.

In a nutshell, we can look forward to probably another decade of ZIRP (if not NIRP) and probably reasonably robust countercyclical returns. Not only will leveraged homeowners be destroyed financially, but seniors who followed the conventional “financial advice” of holding high concentrations of fixed income in their portfolios will also suffer a significant loss in real value.

Someone asked me the other day how does this lead to a rising CAD$ in the future as housing goes down. In a nutshell, its simple — the majority of Canada’s ‘consumptive class’ is heavily indebted and heavily invested in debt-correlated assets. These people will be in no position to be spending much of anything in the future, especially on discretionary imported items, and thus, will be saving as much of their income as possible for debt repayment. Just as taking on debt is an effective ‘short’ of the Canadian dollar, repaying debt is effectively repaying that short. Stock traders know what happens during a short squeeze, which is metaphorically what happened in 2008 to the USD$ when RE crashed, and is now in the process of happening again to the USD$. That is why the Bank of Canada needs to be concerned significantly about the risks of deflation, and probably will have to lower policy rates to zero, and even engage in NIRP/QE in order to keep CPI out of explicit deflation.

#80 TurnerNation on 01.24.16 at 4:33 pm

Amazing leftist insanity in BC. Hate jobs. Let them eat cake!
I’ll take the balanced port.

“Hundreds protest Trans Mountain pipeline in Burnaby
CTV News – 40 minutes ago
Activists say hundreds of protesters voiced their opposition to Kinder Morgan’s Trans Mountain pipeline project at a rally in Burnaby on Saturday.”

Meanwhile…

“Black Press shutters Nanaimo Daily News after 141 years of publishing
Montreal Gazette – Jan 23, 2016
The Nanaimo Daily News, which publishes five times a week, will close on Jan. 29. Its website lists 10 staff members on its news team, including three reporters and a photographer.”

#81 Smoking Man's Old Man on 01.24.16 at 4:59 pm

I find it funny how people have money to spend on the latest smartphone, daily Starbucks, daily lunches/dinners out but when it comes to managing their money they go “cheap” (ie no financial advisor).

I find myself doing just the opposite, which is why I’m probably in the top 1%. I make my own coffee, prepare my own dinners ( in both cases tastier and healthier than restaurant fare)

If I didn’t have a financial advisor that I truly admire I would certainly be entertaining Garth for that role.

I’ve been retired since I was 40 years of age (54 now) have a managed seven figure account and pay no taxes. I have peace of mind and would rather spend my time reading, exercising, and enjoying my time on this planet than struggling every day with stuff that in the end matters very little if you really think about it.

On another note, the people who come onto this site and disrespect the host should really take a long look in the mirror. He writes this rather humorous blog for free with good intentions. How rare is that in the world these days…

#82 Deb on 01.24.16 at 5:04 pm

When I was growing up, someone once told me:

“Remember the golden rule, the man with the gold makes the rules.”

I would add that if you can’t beat them, own them.

#83 Brazil ex-pat on 01.24.16 at 5:07 pm

#72 BS on 01.24.16 at 3:52 pm
Brazil ex-pat on 01.24.16 at 2:42 pm

Let’s be clear here. Saving is dead in N. America. I’m happy converting my USD to $R and getting 12%.

The BRL is down almost 60% in the last 5 years in USD. You are fooling yourself if you think you are getting 12%. You would have been much better off taking 1% and keeping it in USD. Especially if you are taxed on that 12%.

http://www.xe.com/currencycharts/?from=BRL&to=USD&view=5Y

+++++++++++++++++++++++++++++++++++

You are correct. Except for the part about how I have been doing this for only 18 months and with dollar cost averaging and making USD to DO the conversion with I am ahead of the game. Again. I make USD. So every time I make a conversion and deposit, I am doing it at the new “more $R for me” rate.

#84 acdel on 01.24.16 at 5:23 pm

Just to clarify my post #69 was not referring to Garth’s current Blog but to the link I posted from the Financial Post. The blog posted was from that story.

#85 Sean on 01.24.16 at 5:31 pm

#16 JimmyD on 01.24.16 at 10:47 am

Pay off your debt; at 7%, it is likely you will not do better investing.

#86 ron B on 01.24.16 at 5:41 pm

But we should always keep a bit of money in cash, right?

I’ve been trying to figure out to go Orange or just keep it in my pretend interest account in a big bank. Sigh.

Invest your cash and get a LOC for emergencies (which nobody ever has). — Garth

#87 Toronto Dweller on 01.24.16 at 5:48 pm

Too bad not everyone is able to invest. Sometimes you just need that income stream coming in. Trying to look for a job in this market is like shooting yourself in a foot, especially in the Greater Toronto Area. You are either over qualified, or under experienced and the jobs that are available are mostly part time/contract or through an employment agency. Its either becoming a free agent providing a service (AirBnb, Uber), doing home reno or expating abroad. Sunny ways indeed!

#88 Freedom First on 01.24.16 at 5:56 pm

Yes. Excellent. Dead money.

Highlights the absolute need of global diversification, balance and liquidity. This is of extreme importance simply because no one knows what is going to happen in the future. Do this and do not worry about the outcome. With proper re-balancing it will always work out. Stressing about money is not required. I consider myself a conservative investor as I prefer to always own everything. And I want to be paid for what I own.

#89 Nagraj on 01.24.16 at 5:57 pm

” … no actual vaults full of money. Nothing to rob, of course, but then good luck if the servers are hacked.”

I bet Scrooge McDuck knows it’s easier for the Beagle Boys to hack – than it is for them to get into one of his money bins. (If they hack a stupid electronic bank, bet it’ll be a “inside job” too.)

Bill Bonner wrote not that long ago that he means to teach his son the importance of A) common law, B) common courtesy, and C) the value of traditional architecture.

I say a bank without a vault ain’t no bank.

(What the heck would an electronic safety deposit box look like?)
A vaultless bank, like all things “virtual”, is yet another completely computerized idiocy.

“Fifteen men on the dead man’s chest
– Yo ho ho and a bottle of rum –
Drink and the devil had done for the rest
– Yo ho ho and a bottle of rum – “

#90 not 1st on 01.24.16 at 6:00 pm

I really don’t get economics anymore. If cauliflower is $7 bucks now, doesn’t that mean we should be growing it here instead of importing it? Isn’t that a good thing?

#91 Tony on 01.24.16 at 6:11 pm

Re: #73 acdel on 01.24.16 at 3:54 pm

Get every last cent out of Tangerine as fast as you can. Soon they’ll pay no interest and knock you up for fees. Didn’t you read about the takeover of ING by the Bank of Nova Scotia?

Ancient history. BTW, your comments are among the most inane on this site. Please go away. — Garth

#92 waiting on the westcoast on 01.24.16 at 6:28 pm

#90 not 1st on 01.24.16 at 6:00 pm
“I really don’t get economics anymore. If cauliflower is $7 bucks now, doesn’t that mean we should be growing it here instead of importing it? Isn’t that a good thing?
You are correct in the long run… But now assume that you are the farmer. Are you going to grow a crop based on a rapid rise in the currency that could just as quickly go down or will you wait to see if this is the new normal?”

It takes a while for businesses to feel confident that the current conditions are stable enough to rationalize a return on the upfront capex. Maybe cauliflower would be easier but a new car plant needs a long horizon…

#93 Vundo on 01.24.16 at 6:29 pm

Re: RBC chequing accounts, 12 transactions is actually a fair amount if you use your credit card for most things (pay it off in full once every month), then withdraw cash once or twice a month for small stuff. What those fees do is penalise the practice of debiting $2 every day on your coffee break. Interest on chequing accounts is utterly irrelevant to me because any spare cash goes to investments and debt repayment. These are two things people should be doing more of instead of hoarding loonies and expecting to be rewarded for taking zero risk.

#94 B Riding Dirty on 01.24.16 at 6:38 pm

Smoking Man, Suede and The GreaterFool

I rant to you after having to be forced to go to 5 open houses in my once small off beat city of Langley, Line up of BMW’s and Mercedes with the whole Asian family piling out. I refused to even go look at the homes, my wife went in and I waited in our car with my three dogs. We barked and bitched as we watched car after family walk through these homes.

INSANE. But maybe the new normal.

2100sq ft home on 5000sg ft lot asking 693k sold bid war for a nice even 800k

Hard to see anything but limited supply and anbundance of buyers lined up.

As we pulled into our town home complex two neighbors were out washing there cars, IN T SHIRT AND SHORTS.

#95 UncleFester on 01.24.16 at 6:39 pm

Refreshing to hear something other than oil for a day. I couldn’t agree more. I’m a 21% gross income saver and everyone around me keeps spending and spending, yet I feel I’m the one being punished. Glad I have my 6 months emergency fund. It’s very tempting to throw more money into the markets right now, but I’ll continue my dollar cost averaging and just hope that I’ll be rewarded for my efforts one day.

Keep up the good work, I truly enjoy reading this blog everyday.

#96 JR on 01.24.16 at 6:43 pm

Ethereum represents the future of banking and most financial markets.. it is a seriously big deal and will change a lot of things as we know it, including banking.

Here is what is planned to be built on top of Ethereum.
https://www.linkedin.com/pulse/top-10-blockchain-startups-watch-2016-leaders-who-game-thompson?trk=prof-post

Here are plans from the big banks
http://www.ibtimes.co.uk/r3-connects-11-banks-distributed-ledger-using-ethereum-microsoft-azure-1539044

This is it’s price right now. It trades as a crypto currency. Read up via Google.
http://coinmarketcap.com/currencies/ethereum/

#97 Nagraj on 01.24.16 at 6:47 pm

none of my business, Mr. Turner, but
is this #91 TONY
the one who in an older comment
talked about his late mother –
I’m guessing this is a kid in maybe Gr.6 or 7

#98 Still employed in AB on 01.24.16 at 6:51 pm

Garth some of us are following your advice. After watching so many of my co-workers get the boot this year I got that emergency line of credit (balance is at 0) and have being transferring $ to my brokerage account every payday. Buying whatever is on sale, preferreds at first but now index ETF’s as well.

#99 DON on 01.24.16 at 6:53 pm

#80 TurnerNation on 01.24.16 at 4:33 pm

Amazing leftist insanity in BC. Hate jobs. Let them eat cake!
I’ll take the balanced port.

“Hundreds protest Trans Mountain pipeline in Burnaby
CTV News – 40 minutes ago
Activists say hundreds of protesters voiced their opposition to Kinder Morgan’s Trans Mountain pipeline project at a rally in Burnaby on Saturday.”

Meanwhile…

“Black Press shutters Nanaimo Daily News after 141 years of publishing
Montreal Gazette – Jan 23, 2016
The Nanaimo Daily News, which publishes five times a week, will close on Jan. 29. Its website lists 10 staff members on its news team, including three reporters and a photographer.”
XXXXXXXXXXXXXXXXXXXXXXX

Sorry for the people at Black Press, but the investigative content is lacking and often one sided. Perhaps we are seeing a return to quality…I can only hope.

As for that twinning of the pipeline. How many long term jobs will this create or protect. Is Kinder Morgan related in anyway to Exxon mishap in the 80’s? heard somewhere there was a connection. Perhaps time to invest in different projects like technology innovation and associated manufacturing.

#100 Tony on 01.24.16 at 6:56 pm

Re: #56 Bottoms_Up on 01.24.16 at 2:15 pm

Canada Trust had high interest T-Bill savings accounts that paid about the same as the inflation rate.

#101 Jeffrey of Saskatoon on 01.24.16 at 6:59 pm

Those that tried to settle these lands a thousand years ago got the message. We are not wanted here. These are barbarians. And and eye for a bloody eye.

#102 keep looking on 01.24.16 at 7:03 pm

3% @ eq bank
2.5% @ zagbank

#103 TRT on 01.24.16 at 7:05 pm

Asset bubbles are the only way to make money.

I’m telling anyone that is 25 years of age to buy as much RealEstate and assets as they can as soon as they can.

Saving and getting an education will get you in trouble, unless the education gives you a professional designation into a numbers restricted profession. Otherwise you will lose.

If you’re young, buy buy buy with leverage. Mortgage brokers bend the rules to get you the mortgages. As long as you can do the payments, you will be fine.

Keep buying. The central banks can’t let the billionaires lose so hang on their coat tails.

#104 Rick on 01.24.16 at 7:09 pm

Had a nice beef roast, Yorkshire pudding, gravy, mashed potatoes, corn, carrots and peas. No cauliflower, too expensive. I’m stuffed:). Nice pic Garth.

#105 Jeffrey of Saskatoon on 01.24.16 at 7:10 pm

Google South Afrikaners being massacred. That should resonate. 10,000 firearms have been stolen in Alberta since this downturn(Depression) began. Who ransacks our dwellings on a daily basis? Who looks at me as I walk downtown with hate in their eyes? Who saws off a 30.06 and robs others and kills for less then a days pay of honest work? We have big problems here. And big problems require big solutions.

#106 LL on 01.24.16 at 7:17 pm

…”By grinding rates into the ditch, whacking savers and rewarding massive real estate leverage, central banks have created asset bubbles which every million-dollar house sale in Toronto or Vancouver and every struggling senior proves”…

And they say: “Canadians have any saving.”…

#107 rawdiswar on 01.24.16 at 7:24 pm

So banks don’t pay interest that keeps up with inflation.

If only I got around to setting up a bitcoin wallet, then I could completely cut out the government from my financial life.

https://www.youtube.com/watch?v=xUNGFZDO8mM

Too bad almost all the of the senators in the audience are so clueless and out of touch.

If not bitcoin, then some other block chain technology.

Just a matter of when.

#108 Why Why Jay on 01.24.16 at 7:24 pm

@#74 A box in the Sky

Have fun with retirement.

People who save now spend later. People who don’t save beg for gov’t handouts.

#109 not 1st on 01.24.16 at 7:27 pm

#92 waiting on the westcoast on 01.24.16 at 6:28 pm

It takes a while for businesses to feel confident that the current conditions are stable enough to rationalize a return on the upfront capex. Maybe cauliflower would be easier but a new car plant needs a long horizon…

—-

This is still the evils of free trade coming home to roost. I dont understand why we want such a strong currency if it prevents industry from setting up shop here. Canada can make everything we need here and still export our stuff.

For instance, China needs our potash cause they haven’t got any of their own, but we sure as hell dont need them making our furniture. We have the raw product, the plants and the skill sets right here. So why is everything made in china?

T2 should crash the loonie to 30c and then hundreds of home grown industries would pop up. Sure we won’t do much traveling but thats ok.

I wish trump could run canada.

#110 David W on 01.24.16 at 7:33 pm

Garth,

Is it safe to start buying maple again?

Thanks,

Dave

#111 Jimmy on 01.24.16 at 7:45 pm

#96 thanks for that JR.

Blockchain apps are great for the young minds to get into since we can’t touch our resources anymore.
The projects at the bottom of ethereum.org. are fascinating. Love Provenance.

Have to get me some ether.

#112 3s on 01.24.16 at 7:59 pm

Haha, the picture is of the dogpark next to my house here in a suburb of Syney, Australia!! Dumbest people on the planet;)

#113 Paul on 01.24.16 at 7:59 pm

TD now charges $75.00 to move a TFSA to another institution.

#114 SquareNinja on 01.24.16 at 8:16 pm

RE: Home Trust Mortgage Fraud

The 45 brokers Home terminated had been submitting questionable deals over a timeframe that ranged from a few weeks to several months, depending on the broker.

The bulk of the problem files were submitted in 2014, but some were submitted prior to 2014.

Of the $960 million worth of mortgages these brokers did last year, “the vast majority were on the level,” said Soloway. Only “a very small portion” of the deals were questionable.

Source: http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2015/07/home-trust-clears-the-air.html

#115 Gerry Kwon on 01.24.16 at 8:16 pm

And, the C$ has fallen off the rate boards of Asian currency exchange kiosks. There is no longer an advertised rate for the C$ that indicate a Canadian dollar can be exchanged. The last time I saw a rate advertised it was $1.55 USD, a UK Pound was 2.4 to $1C.

I don’t know what is going to happen to the last few Canadian travelers that are here, but if they can’t easily change money, and can only exchange at such insanely low rates, there will be no Canadian travelers.

So, will the youth who voted Liberal now realize that the one ‘cool’ thing about being young, ie: traveling abroad, has been taken from them by the fairy princess dreams of a wealthy narcissist who doesn’t share their dreams?

Canadian travelers are now relegated to the toilets and package tour armpits of the world. Europe and the US is out, Asia doesn’t want your money, so what’s next for the new generation? U got the government you voted for.

I suggest having a good look at reality in Canada.

http://news.nationalpost.com/news/canada/it-looks-likes-a-refugee-camp-inside-the-victoria-park-where-about-100-homeless-moved-into-huts-and-tents

#116 jane 24 on 01.24.16 at 8:17 pm

Lots of news in the media about how technological advances will wipe out millions of jobs in the world within the next 10 years. Take theses web banks with no staff or branches. Multiply by 1000s and then ask yourself who will have the money to use these services if no-one has a job. Banking jobs have traditionally been considered as safe as one can get.

Another story in the Sunday papers about call centers having no human staff, all machine answers. Never a great job but someone’s job.

I go to my bank branch to safeguard those jobs. At the store I go to a human cashier and not a machine to safeguard those jobs too. I always ask all my suppliers to send me everything in the Royal Mail and not on E so someone has to talk to me and organise the envelope. The jobs that go in the next high tech industrial revolution may include your own.

Hey number 61 Brazil Ex-Pat, the British government is discouraging any female of child bearing age from visiting Brazil for the Olympics. The reason is the link between your mozzies and birth defects due to the Zika virus. Terrible shots of the 1000s of Brazilians little children born with undersize heads and brains. Poor poor little things. I do hope that your family and friends are safe.

#117 Water Cat on 01.24.16 at 8:22 pm

Sniffing around BC

#118 White Crock BC on 01.24.16 at 8:28 pm

Four bucks a month at RBC?

Free at PC Financial.

Free cheques, unlimited chequing, bill paying, ATM withdrawls (theirs and CIBC).

Been with them for 15 yrs.

PS… Cauliflower here: $.98/LB

#119 JakeR on 01.24.16 at 8:29 pm

This is the second time recently Garth has demonstrated dislike of virtual banks. All the ones I deal with can handle complicated situations over the phone.

#120 BG on 01.24.16 at 8:34 pm

#3 CJBob on 01.24.16 at 10:18 am

[…] Banks with no branches indicate that those under 30, and some of us over 40, don’t understand why anyone needs a branch. […]
————————————————————–

I’m 33 and I want a branch.
I want to be able to speak to people in person when it comes to money and banking.

The only problem is the big 4 are a rip off.
I have that RBC $4/12 transactions a month Garth mentioned.
To bypass that transaction number limitation I always use my RBC credit card, or a my Tangerine Debit Card to pay.

I also have a business account with RBC. The only free one is called the Online Business Account. Everything you do online or at an ATM is free, but if you want to talk to someone in person for simple things like depositing a cheque, then there’s a fee.
Are my tens of thousand deposited on a banking account most of the year not enough for them to make a profit?

Oh but RBC is looking after me. Instead of leaving this money there (which was dumb, but convenient at the time), why not buy into one of their 2% MER “safe” mutual funds? RBC is indeed “looting” after me.

Last but not least, I have saving accounts, personal and business.
Recently I tried to transfer money directly from my saving accounts to someone else. Bad idea. RBC will charge you fees for that.
To avoid the fee, you have to first transfer to your chequing account and then transfer out.
Considering this is an instantaneous operation, why are they charging anything when transferring directly from the saving account? Because it is an easy and cheap way to get money.

#121 WallOfWorry on 01.24.16 at 8:36 pm

Ultra bull Ron Insana of CNBC pointing out why the Fed will be forced to freeze any further interest rate hikes, and possibly reversing the hike that it made.

http://www.cnbc.com/2016/01/19/will-the-fed-have-to-undo-its-rate-hike-commentary.html

#122 Mark on 01.24.16 at 8:38 pm

“Lots of news in the media about how technological advances will wipe out millions of jobs in the world within the next 10 years. “.

A lot of that ‘news’ is a complete exaggeration, if not propaganda coming from certain Silicon Valley-based tech firms trying to prop up their stocks that are otherwise on the verge of failure. Particularly in the social media/advertising space, where the ability to earn a profit and sustainably create value for shareholders has been thus far elusive. Some of these companies talk as though “self-driving cars” and ‘self-driving trucks’ will be on the roads within 5 years, autonomously driving themselves from coast to coast. Well I can tell you that the alleged implementations have an accident rate, under ideal conditions, of an order of magnitude greater than conventional vehicles. The barriers to surmount in that particular domain will take 20-40 years to overcome, and trillions worth of investment in infrastructure. That is, if self-driving cars are ever economic, which is an entirely open question given their high likely cost (ie: $500k-$1M+) and high cost of maintenance.

If anything, the demand for ‘labour’ is likely to increase in the years to come as the greatest job growth is in areas that simply cannot be automated. Particularly in healthcare and elder personal care. Many of the younger posters to this blog lament that the boomers are filthy rich while the young basically have nothing, but as we move into an era of much higher dependency ratios, the pricing power for the labour of the relative youth will likely increase dramatically. The resulting inflation meaning that those huge nesteggs won’t go very far. In a nutshell, the young will eventually inherit the Earth as they always do.

And, the C$ has fallen off the rate boards of Asian currency exchange kiosks. There is no longer an advertised rate for the C$ that indicate a Canadian dollar can be exchanged.

I don’t know anyone who has taken CAD$ outside of Canada in any serious amounts with the expectation that it could be exchanged at the currency exchange kiosks. USD$, sure. But CAD$ has never been much of anything outside of Canada. Which could actually work in Canada’s favour in the future, as there are few CAD$ overseas that can represent future external inflationary demand on the Canadian economy. Compare and contrast such with the trillions in USD$ overseas which will eventually represent demand on the US economy.

#123 WallOfWorry on 01.24.16 at 8:41 pm

Citi bank revises global earning outlook…not looking so good…at 7 year low. But don’t worry…the US is a juggernaut and on pace for a slow and steady path of interest rate hikes…..

https://pbs.twimg.com/media/CZh21JFWEAAUTB7.jpg:large

#124 johnk on 01.24.16 at 8:43 pm

Some odd people here. Are they posting from eastern Oregon?

#125 Water Cat on 01.24.16 at 8:46 pm

“I worked for 30 years in water and nobody cared,” said Schreier, a University of B.C. emeritus professor of watershed management. “Now everybody wants information.”

Suddenly, interest spiked in understanding how the province protects and allocates its newest precious resource.

“We were the only jurisdiction in North America that had no regulation on groundwater, other than California,” Schreier said. California has also recently closed that loophole.

As Environment Minister Mary Polak puts it: “Anybody could drill down into groundwater and take what they wanted, and as much as they wanted.”

For a few more months, they still can. B.C.’s new rules come into effect on Jan. 1.

Despite the new law, the Liberal government chose to leave in place the core principle that has governed water rights in B.C. for a century: first in time, first in right.

http://www.vancouversun.com/gives+more+authority+involving+water/11360992/story.html?__lsa=afce-6962

#126 Water Cat on 01.24.16 at 8:48 pm

http://www.vancouversun.com/news/metro/could+bulk+water+export+industry+ever+underway+canada/11358029/story.html

bulk water article

#127 Leo Trollstoy on 01.24.16 at 8:49 pm

#94 B Riding Dirty on 01.24.16 at 6:38 pm

how do grown ups get ‘forced’ to go to open houses? it’s either a compromise or someone is whipped

#128 Leo Trollstoy on 01.24.16 at 8:55 pm

the net worth changes from 14 years old to 54 years old but the ego never does

#129 Cici on 01.24.16 at 8:55 pm

#7 The American

But haven’t you heard the expression “to squirrel away savings?”

Please, do not correct the great, Almighty Garth…he knows of things you do not understand.

#130 marnic on 01.24.16 at 8:55 pm

How many years now have you been cheering on the Fed et al and their “coordinated” monetary policies?

They are coordinated, and you should fall to your knees in gratitude. — Garth

#131 Cici on 01.24.16 at 9:00 pm

16 JimmyD

Yes, get rid of the debt FIRST!

#132 EI Master on 01.24.16 at 9:04 pm

Low interest rates are precisely why I am not working. I managed to engineer a strategic layoff last March and have been enjoying reverse income tax through EI ever since. There is no way I am going to contribute to the economy or pay income tax when housing costs are inflating at 15% per year and my saving are earning 0.5%. Nothing is more valuable than time. I am enjoying myself and spending my retirement savings until interests rates and home prices return to normal.

Thankfully I have a green card. Once the EI gravy train pulls into the station, I will follow in the steps of Elon Musk and other Canadian refugees seeking a much higher standard of living in the USA.

#133 Sydneysider on 01.24.16 at 9:04 pm

That park is J. Vanny Reserve, near Maroubra Beach. There is plenty of poo on the grass, despite the sign. Randwick dog owners often express surprise that their dog should do such a thing at the very moment that they were gazing intently at something in the opposite direction. Glad to see that someone is taking action.

#134 Water Cat on 01.24.16 at 9:05 pm

Would you spend $53 for a bottle of melted Newfoundland iceberg?

Why drill for bulk? Just melt an iceberg.

http://www.torontosun.com/2015/07/27/would-you-spend-53-for-a-bottle-of-melted-newfoundland-iceberg

#135 Julia on 01.24.16 at 9:06 pm

#50 Bytor the snow dog
“Billions in fraudulent loans and no one went to jail? If not, why not?”

They haven’t lost money on those mortgages have they? And these brokers probably brought so much business in that they were let go, possibly even with packages. I am surprised it even made the media, usually these things get done on the down low.

#136 Smoking Man on 01.24.16 at 9:10 pm

X files 10 pm , on CTV

#137 Setting the record straight on 01.24.16 at 9:14 pm

@109
T2 should crash the loonie to 30c and then hundreds of home grown industries would pop up. Sure we won’t do much traveling but thats ok.

########
I am without words.

#138 45north on 01.24.16 at 9:26 pm

Thomas: from your link:
Provided that the mortgages can be serviced, making mortgage payments is no different in principle than putting money into one’s RRSP. In both cases, an asset is being built that will prove useful in retirement.

“making mortgage payments is no different in principle than putting money into an RRSP”

except that you can deduct the money put into an RRSP from your taxable income. So there is a difference but the real difference is when you take the money out. When you take the money out of an RRSP you go to the bank and fill out a form and you get the money ( minus any tax the bank thinks you might owe ). You cannot take the money out of a mortgage. You have to sell the house first.

acdel: referring to the link: The author is not considering the housing bubble which will eventually pop!

and even if it does you may not hear it pop!

#139 John on 01.24.16 at 9:27 pm

Dead money. Yup. Dead yield + $.69 dollar and who knows where the bottom is? With food costs inflating, we’ll soon see more odd things @ the grocery stores. Saw this today: a) fresh food tables replaced with flats of water and a set of bistro tables (yet, no coffee machine -weird) b) slim pickings on some meats indicating (likely) folks stalking up as the prices rise and/or the store staff were holding back inventory so they can re-price it higher, shortly c) almost stale dated stuff with the newest prices…. and likely more to come. My sympathy to all who have debts whether they be mortgages, margin debt or consumer debts… really tough. Keep up the reality checks, Garth. Thanks.

#140 S.Bby on 01.24.16 at 9:30 pm

#109 Not 1st
I have entire house filled with furniture manufactured by Knechtel Furniture of Hanover Ontario. This furniture was made in the late 1950’s and was purchased by my parents and it is solid oak furniture of the best quality imaginable and was made in Canada by Canadians. Then Knechtel went out of business in 1983 and that was that. We need manufacturing back in Canada.

http://www.heritagetrust.on.ca/CMSImages/b0/b0fa5533-3540-47b6-991c-b2981951539f.pdf

#141 Randy Randerson on 01.24.16 at 9:34 pm

What online forex brokerage do people use in Canada? I’d like to branch out and learn more about it.

#142 BobC on 01.24.16 at 9:35 pm

What am I missing? Why the hatred towards banks? They’re a business no different then a shoe store only instead of shoes their product is money.
We buy some ownership in them and expect them to make a profit don’t we?
If a shoe store tries to charge too much we don’t buy them.
If we don’t like the bank terms then don’t borrow. As far as fee’s go, if you owned a bank what would you charge?

#143 Philburt on 01.24.16 at 9:36 pm

Ill take my 2.5% over a tanking market…
How long does it last??
http://jugglingdynamite.com/2016/01/22/soros-we-are-having-a-repeat-of-financial-crisis-and-bear-market/

#144 Sheane Wallace on 01.24.16 at 9:40 pm

They are coordinated, and you should fall to your knees in gratitude. — Garth

that was funny. teaching servitude to thieves?

#145 not 1st on 01.24.16 at 9:42 pm

#105 Jeffrey of Saskatoon on 01.24.16 at 7:10 pm

So there is genocide taking place in saskatoon? Who knew?

#146 GORDIE BEAMER on 01.24.16 at 10:08 pm

136 SMOKING MAN X FILES time to put on my foil hat.i hope SKULLY IS STILL HOT

#147 GORDIE BEAMER on 01.24.16 at 10:09 pm

DAM FOOTBALL IS ON

#148 Smoking Man on 01.24.16 at 10:12 pm

Calling Carolina for super bowl, now get to the God damn x files, post game shit show go away already.

#149 lee on 01.24.16 at 10:51 pm

#143 Philbert,

Soros wants everyone to sell their shares so he can buy them for cheap. He didn’t get wealthy giving out free advice to people like you. Smarten up!

#150 Smoking Man on 01.24.16 at 11:04 pm

Anyone watching x files.

How to sport one.

http://dyslexicsmokingman.blogspot.ca/2015/11/a-nectonite.html

Fkrs are on to me, And Ashman, Barrington, and Jermiha Jones.

#151 WUL on 01.24.16 at 11:07 pm

Poloz made a mistake. He said young Canadians should work for nothing. If had said young Canadians should work for $.45 per hour, NIKE would have off shored the sewing of running shoes from China to Canada instead of to Vietnam. What a dope.

#152 my house is my friend on 01.24.16 at 11:30 pm

Bank of Canada Lawsuit

http://www.watershedsentinel.ca/content/bank-canada-lawsuit

Bogus. Meaningless. — Garth
………………………………………………………………..
$40 bill a year given to the big banks at the expense of Canadians meaningless??????

https://ccc4mr.wordpress.com/2015/02/14/obviously-something-went-terribly-wrong-after-1974/

#153 Sheane Wallace on 01.24.16 at 11:55 pm

#152 my house is my friend

What they are saying it: you are screwed, at least enjoy it.

and don’t forget the gratitude on your knees!

#154 Onantario on 01.25.16 at 12:22 am

First person vanity plate: http://postimg.org/image/wtyoi99fl/

#155 Bob dog on 01.25.16 at 12:22 am

I have been closely watching the epic legal battle with the bank of Canada. Garth dismisses what was operating until 1974. Doesn’t sound silly to me. Canadians need to turn off the hockey game and pay attention. The banking industry is the second greatest crime ever committed against humanity. Outdone only by organized religion.

#156 Bob dog on 01.25.16 at 12:39 am

@BobC

When was the last time you paid for something with a bank note labeled Royal Bank or CIBC. Last time I checked my $20 was issued by the bank of canada which you and I own. How’s about I give you some notes from the Bank of Bob

#157 zedgt87 on 01.25.16 at 12:56 am

This is a story of financial repression

#158 Tom from Mississauga on 01.25.16 at 2:26 am

The cauliflower post finds new life in the international press LOL!!!

http://www.bloomberg.com/news/articles/2016-01-25/canada-inc-strains-to-sell-post-oil-economy-in-davos-rebrand

#159 SquareNinja on 01.25.16 at 2:30 am

#122 Mark on 01.24.16 at 8:38 pm

I assume you don’t know that the Tesla Model S can already self-drive? Every Model S is learning how better to handle the roads every day as each owner uses autopilot. Moreover, each car is sharing that learned info. with every other Model S. That’s about a million miles of practice every day for each individual car.

Self-driving cars are already here, no infrastructure changes were necessary, and the cars are nowhere near $500K!

#160 Short n' Pudgy on 01.25.16 at 2:33 am

Agree Garth…investing is the key to success…but invest in what? You scream at stock pickers…even when I’ve given you dozens of screaming winners in the past…but no more….’cause you’re mean…but at the same time you freely admit that bonds pay nothing…in the same time frame that international markets have crashed…leaving the market down 11% on invested capital seeking a 5% net for a net loss that takes a 100% turnaround to break even. G Baby…you need a good analyst more than I do.

At some point you will be forced to admit that balanced portfolio’s…like savings…are dead money…only the quick will survive the Central Banks ripping savers ‘a new one’. I have a raft of winners..for $500 a pop…just say the word…along with a cheque…and off you’ll go back into the black….easy peasy.

“f you have a Big Bank high-interest account, after inflation and taxes your return is negative about -1.3%. You can stick savings in a TFSA and improve that – for a negative return of just over -1.0%. So, obviously, this is no way to build your wealth, prepare for retirement, get monthly income, bulk up money for a down payment or hustle capital for a kid’s education.

#161 Honey Dripper on 01.25.16 at 6:47 am

As long as No Frills doesn’t fold. Cauliflower today down to $2.97. Of course I stocked up!

#162 gut check on 01.25.16 at 6:53 am

@ #118 White Crock BC on 01.24.16 at 8:28 pm
Four bucks a month at RBC?

Free at PC Financial.

Free cheques, unlimited chequing, bill paying, ATM withdrawls (theirs and CIBC).

Been with them for 15 yrs.

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

add to that – real people available to help at the kiosk, online banking, rewards that do add up….

Been with them for a little longer and for the first 6 or 7 years I tried to spread the gospel of PC. I don’t think I got many converts. I tried a while back on here, too – same thing. and now this blog post with nary a whisper of the place!

I’ve had a mortgage and a personal loan with them, too. No issues.

Oh well. More for us, I guess. :)

#163 LL on 01.25.16 at 7:27 am

#50 Bytor the snow dog

“Billions in fraudulent loans and no one went to jail? If not, why not?”

It had happened in Iceland! It’s a start..

http://www.rawstory.com/2015/10/iceland-does-what-the-us-wont-26-top-bankers-sent-to-prison-for-role-in-financial-crisis/

#164 fancy_pants on 01.25.16 at 7:29 am

please read this to understand why we will never get away from low rates. In a fractional-reserve, debt-based system, savings is toxic.
http://www.workableeconomics.com/

good night Irene

#165 BG on 01.25.16 at 7:31 am

#142 BobC on 01.24.16 at 9:35 pm
What am I missing? Why the hatred towards banks?
————————————————————-

Because just like for many other things, Canadians get screwed and seem to enjoy it.
We get less service for more fees.

I still have a chequing account from France. I left 6 years ago. It costs me nothing and I do use it sometimes when I got back.

#166 pbrasseur on 01.25.16 at 7:35 am

This could very well be the future of banking, exactly like Uber is the future of Taxis

Very interesting to see something like EQ Bank emerging. Apart for the alternate lending thing (…) it makes sense to have a bank based on internet presence only. For my part I already do all my banking online except for ATM, so why not and why pay for infrastructures I don’t use? Surely an online Bank has less expenses and as such can afford to pay higher rate and lesser fees.

Innovation is welcome.

#167 pbrasseur on 01.25.16 at 7:41 am

Uber type apps comes to banking……. Will end up eliminating hundreds of thousands of jobs. #33 conan

Yeah, exactly like the textile revolution, that was bad right?

#168 Adam on 01.25.16 at 8:31 am

For those of us who need short term savings zenbanx has 1.5% interest for all canadian deposits. At least your money will almost keep up with inflation…!

#169 Q2 Class 2-B-C-2 Duplex Drive on 01.25.16 at 8:45 am

Guy puts 200K in a chequing account and expects interest. Greater fool, indeed.

I have a chequing account at the RBC and it costs me nothing. It’s the four dollar per month deal, plus the free transactions, plus a free transaction for every electronic deposit. On top of that, being over 60, I get a $4 rebate every month (which cancels the fee) and, for any buying I do on-line, I use a virtual debit card and there’s no charge for any debits. I don’t write cheques and any electronic transactions, I keep to a minimum. Last time RBC nicked me for service charges was last summer, I think.

The point is manage your accounts – it isn’t that hard – and keep your money.

#170 Evangeline on 01.25.16 at 8:47 am

It’s looking a bit gray out there today, so the markets might not be as sunny as they were on Friday, at least early in the day. Bearing in mind that prognosticators or the weather and markets do make mistakes from time to time.

#171 BlackDog on 01.25.16 at 9:00 am

EIMaster re:#132 re: “Thankfully I have a green card.”

Careful what you are thankful for. Having a non-terminated green card, makes you a “US person”, even if you are a Canadian living and earning solely in Canada. This means that if you have not been filing US tax returns on your world-wide income and if you have not been reporting your Foreign Bank Account Reports (your Cdn bank accounts are ‘foreign’ as a ‘US person’) to the Financial Crimes Enforcement Network, then you could find yourself in some hot water with US authorities.

Note that the EI you are collecting while living in Canada is taxable in the USA (no tax treaty covers this) and it is not subject to the Foreign earned Income Exclusion.

If your Canadian bank finds out about your ‘US person’ status you will be reported on via CRA to the IRS as Canada is in the process of hunting the Canadian ‘US persons’ hiding out in the tax haven of Canada. Penalties for not reporting your Canadian bank accounts (joint accounts are deemed 100% yours) are 50% of the balance of the account for each year up to 3 years.

#172 maxx on 01.25.16 at 9:12 am

#10 Trumpeter77 on 01.24.16 at 10:34 am

“What would be enough for the banks?”

A catheter running from your payroll department to their coffers.

#173 BlackDog on 01.25.16 at 9:13 am

ooops. I made a mistake in my last comment. The penalties for not reporting a Canadian bank account held by a Canadian ‘US person’ to the Financial Crimes Enforcement Network in USA are 50% of the balance of the account for each year of non-reporting up to SIX years (not 3). I.E. 300% of the value of the account. By-bye retirement for the poor smucks (like moi) who had no clue they were US taxpayers while living in Canada as a Canadian for decades and decades.

Yes, I am bitter. Sorry Garth, but it has been awhile since I bitched here so please cut me some slack. It is sad that the Liberal government is just as willing to throw fellow Canadian citizens under the bus as the Cons were. Obviously, “A Canadian is a Canadian is a Canadian” is only true if one is not also a ‘US person’ according to US law.

#174 Sheane Wallace on 01.25.16 at 9:25 am

Rather short-lived rally in oil and CAD.

Back no normal (heading down) today.

CAD / USD 0.7041 -0.003 -0.43%
CAD / EUR 0.6496 -0.0053 -0.81%
CAD / GBP 0.4939 -0.0016 -0.32%
CAD / CNY 4.6309 -0.0217 -0.47%

Entry point around $ 15-20 for oil? Maybe 12?

#175 Noel on 01.25.16 at 11:03 am

Garth, do you believe that the shift towards cashless and branchless banking is a result of central banks and the increased usage of very low or negative interest rates? Or is it just coincidental?

cf Norway: http://www.thelocal.no/20151030/norways-second-bank-to-refuse-cash-from-monday

No. — Garth

#176 James2 on 01.25.16 at 11:08 am

#150 Smoking Man on 01.24.16 at 11:04 pm

Anyone watching x files.

How to sport one.

http://dyslexicsmokingman.blogspot.ca/2015/11/a-nectonite.html

Fkrs are on to me, And Ashman, Barrington, and Jermiha Jones.
……………………………………………………………….
Didn’t think i would see some bald headed old fart on the x files, but sure enough there it was. Conspiracy theorists always see something in nothing. Stick with your day trading.

#177 Anthony on 01.25.16 at 11:10 am

I switched to Tangerine for my checking account, cancelled my TD account.

No fee and no minimum balance requirements. No limit on transactions. The account is just to receive my direct deposit pay, transfer to investment accounts, pay credit card bills and very rarely withdraw cash.

When I called TD to cancel, they asked why I think accounts should be free because they have to pay all the people who work in branches that I could go in and receive help from. I laughed because I never go into a bank so why should I pay a fee that goes towards their salaries.

Online only banks is the way to go.

#178 Bram on 01.25.16 at 11:25 am

#79 Mark on 01.24.16 at 4:25 pm
remember that every dime a bank lends out must originally have been borrowed from its customers/shareholders/bond investors

That’s not how banks work.
Or haven’t been working like that for centuries.
I think you need to watch or re-watch ‘the Ascent of Money’ http://www.pbs.org/wnet/ascentofmoney/

Bram

#179 matt on 01.25.16 at 11:26 am

With 10 years of poor gains now totally wiped off the TSX, a house looks like a better way to at least preserve some wealth, keep up with inflation.

Over the last decade a balanced portfolio doubled in value. — Garth

#180 Bottoms_Up on 01.25.16 at 11:26 am

#162 gut check on 01.25.16 at 6:53 am
————————-
PC accounts are fine until you need a more complex service such as a bank draft to buy a house. They have a significant waiting period for this, whereas having a “real” bank to go to you get this service same day. It makes a huge difference for things you need done quickly.

#181 Leo Trollstoy on 01.25.16 at 11:28 am

#178 Bram on 01.25.16 at 11:25 am

he hasn’t understood how money and banking works for awhile now. or gold. or inflation. or investing.

#182 Dan Simpson on 01.25.16 at 11:38 am

Real estate can’t be changed into cash that easily or reinvested in other ways. In a bad market it can take months to years. Putting most if all of most of one’s money into real estate has alot costs, fees, taxes etc.

Having some liquidity in something that is not too volatile and risky is needed or all the leeches from monthly mortgage payments to property taxes to utilities to auto insurance can’t get paid.

#183 AB Boxster on 01.25.16 at 11:57 am

Here are the Couch Potato returns for 2015.

Not recommending and not sure how ‘balance and diversified’ these are, but still the returns are interesting.

http://canadiancouchpotato.com/2016/01/11/couch-potato-portfolio-returns-for-2015/

#184 gut check on 01.25.16 at 12:00 pm

@ #180 Bottoms_Up on 01.25.16 at 11:26 am
#162 gut check on 01.25.16 at 6:53 am
————————-
PC accounts are fine until you need a more complex service such as a bank draft to buy a house. They have a significant waiting period for this, whereas having a “real” bank to go to you get this service same day. It makes a huge difference for things you need done quickly.

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

yeah yea yea… same argument as ever.

Aren’t you maybe asking yourself, “Gee, how does gut check manage it???”

gut check is smart. gut check uses PC financial for everyday banking – you know, the expensive kind of banking. gut check has accounts at other banks too. you know, because she might need to wire transfer or get a draft sometimes.

come on. I mean seriously. you think I haven’t needed any ‘more complex’ services in the 17 years I’ve been a PC customer?

#185 The Levites on 01.25.16 at 12:20 pm

http://www.cbc.ca/news/business/goldman-sachs-creates-100b-private-bank-for-the-rich-1.1289663

#186 Steerage Bilge Spewing on 01.25.16 at 12:30 pm

Fresh from the billion gallon sewage mayor……….

http://calgaryherald.com/opinion/columnists/montreals-mayor-why-i-oppose-the-energy-east-pipeline

#187 Ogopogo on 01.25.16 at 12:36 pm

In an interview with Rob Carrick in Saturday’s G&M, the CEO of EQ basically confessed that the 3% interest is just a teaser rate “to make noise in the short term.” He caught a lot of flak in the comments section for his bald faced bait-and-switch tactics.

Caveat emptor. EQ will never see a dollar of my emergency fund.

#188 NoName on 01.25.16 at 12:45 pm

#174 Sheane Wallace

Didn’t we touch on bouncing cats, just few days ago???

https://youtu.be/dG28Yw4uqow

#189 BS on 01.25.16 at 1:08 pm

Ogopogo on 01.25.16 at 12:36 pm

In an interview with Rob Carrick in Saturday’s G&M, the CEO of EQ basically confessed that the 3% interest is just a teaser rate “to make noise in the short term.” He caught a lot of flak in the comments section for his bald faced bait-and-switch tactics.

EQ is not offering this 3% rate for GICs which tells you it won’t be there for long. I give it 60 days max and it will be in the 1% range. Not worth the hassle of setting up an account.

#190 cramar on 01.25.16 at 1:24 pm

#39 CREA on 01.24.16 at 1:02 pm
From: CREA (Cauliflower Retailers Education Association)

Very cute! Love it!!

I might ad to these points, that to anyone who cannot afford the high price of cauliflower, to move out of the high-priced megacities to a small town and grow your own! Invest the difference.

#191 Mark on 01.25.16 at 1:32 pm

“That’s not how banks work.”

Yes it is how banks work. Go look at a commercial bank’s balance sheet, for example. Assets must equal liabilities. Liabilities in the case of banks are deposits, bond borrowings, preferred shares, and common equity (paid-in and retained earnings). These liabilities are the result of savings by savers, and are owned by savers.

#192 Mark on 01.25.16 at 1:34 pm

“I assume you don’t know that the Tesla Model S can already self-drive?”

Teslas have a variety of driving aids, some of them quite sophisticated, but they do not ‘self-drive’.

#193 TurnerNation on 01.25.16 at 1:36 pm

In the news….Rogers laying off 200. Wonder if they are homeowners.

#194 Bram on 01.25.16 at 2:14 pm

#191 Mark on 01.25.16 at 1:32 pm
Yes it is how banks work.

This 2m video will explain it to you:
https://youtu.be/b6_SLwReMqo

Just by lending, banks will create money.
No deposit req’d, other than a fractional reserve.

Bram

#195 TRT on 01.25.16 at 2:27 pm

Quit talking Teslas and electric cars!

They are doomed. The Oil industry will never allow the technology to become mainstream. Lots of $$$ to bribe politicians and government staff.

Don’t be so naive.

#196 cramar on 01.25.16 at 2:37 pm

Recently received a letter from TD about increased service charges. The one I find most interesting is:

“Transfer fee — for the transfer of a TD Canada Trust Tax-Fee Savings Account to another financial institution”

Current $0 New $75 + tax

I suspect it is to keep those poor deluded souls who just have a TFSA in a bank savings account, from ever clueing in and transferring it somewhere where they can actually invest it! The new fee is to prevent this from happening.

#197 David on 01.25.16 at 3:02 pm

Mark @192, I’d have to agree with Bram here.

http://www.bankofengland.co.uk/publications/Documents/quarterlybulletin/2014/qb14q1prereleasemoneycreation.pdf

“Rather than banks receiving deposits when households
save and then lending them out, bank lending creates
deposits.”

See also:
http://www.pieria.co.uk/articles/the_saving_fallacy_and_why_it_matters_in_labours_opposition_to_austerity

#198 Bottoms_Up on 01.25.16 at 3:03 pm

#184 gut check on 01.25.16 at 12:00 pm
———————————–
Well now that’s funny. Highlight the merits of a branchless bank without discussing the caveats.

I’ve got news for you, you can have a full service bank account with unlimited transactions for free, at RBC. They will reimburse the $10.95 monthly fee if you have multiple products with them.

So what would be the point of having an additional account at a branchless bank meant for students?….

#199 Fractional Reserve Banking on 01.25.16 at 3:04 pm

#191 Mark on 01.25.16 at 1:32 pm

“That’s not how banks work.”

Yes it is how banks work.
——————————————

Have you never heard of fractional reserve banking?

When a bank lends, new money is created.

I’m pretty shocked that a person with your professed level of knowledge was unaware of this basic fact.

#200 Aggregator on 01.25.16 at 3:08 pm

Bad loans boom as Alberta busts

As of 2015, it had $37 billion outstanding in loans and $30 billion on deposit. In the fall budget, the province increased the size of ATB's credit line by $1.5 billion so that it didn't have to pull back on lending.

You read that right. It was the province of Alberta that increased ATB's credit line so they can issue more mortgages, which is exactly what CMHC's latest data reveals as ATB's outstanding NHA MBS issuance hit a whopping $5.14 billion in December, up over 30% from 2014 and up 52% since 2013. Chart

When you see debt growing that fast it should be sounding the alarm bell with a flashing red FRAUD sign.

#201 Smoking Man on 01.25.16 at 3:19 pm

Looks like zero guy is liking Poloz

http://www.zerohedge.com/news/2016-01-25/how-bank-canada-saved-world-if-only-few-days

#202 A Canadian Abroad on 01.25.16 at 3:20 pm

#182 Dan Simpson on 01.25.16 at 11:38 am
“Real estate can’t be changed into cash that easily or reinvested in other ways. In a bad market it can take months to years. ”

Wise words. For us, it took us 9 MONTHS to sell our home in Houston, TX. And that’s with a 25% discount under market.

Most Canadian homeowners have NO CLUE what it is like selling in a down market. Have fun with that stress and loss.

#203 Mark on 01.25.16 at 3:21 pm

“Just by lending, banks will create money.
No deposit req’d, other than a fractional reserve.”

Still doesn’t answer why bank Assets = Liabilities. Yes, the nature of the financial system is that money can be leveraged, and new credit can be conjured into existence. But individuals are just as guilty of that as the banks. In fact, individuals are the ones who ‘create’ most of the credit in the economy by lending to the banks (remember that the banks must borrow all money they lend out!), usually without any form of security pledge or collateral.

Instead of picking on bankers, who usually demand the pledge of a security interest in exchange for lending (ie: a RE property loan, where a mortgage is granted to the bank as collateral for a loan), those who are opposed to leverage (ie: the fractional reserve system) should really be faulting those who lend without security (ie: everyone who puts “money” into a bank, for example!).

The constant insinuation that bankers enjoy some exorbitant or exclusive privilege in society is also fairly ridiculous and not supported by facts. Anyone, providing they have the confidence of their counterparties, can engage in exactly the same activities as the commercial banks.

#204 NEVER GIVE UP on 01.25.16 at 3:29 pm

#69 acdel on 01.24.16 at 3:29 pm
Quote: From another blogger from the link I attached.

The link to the housing market is interesting:

“On the other hand, the median assets of families with debt rose by $180,000 in the same period. Indebted households got considerably richer in spite of their greater debt load.

Of course this stupid article doesn’t mention that these “assets” are largely made up of one asset which is the Canadian family home, which is now the most overvalued in the world. Overvalued by 89% with reference to rent and 35% with reference to income.

http://www.economist.com/…/21648624-housing-markets…

When that massive bubble bursts, and it will as unemployent continues to rise towards 8%, then suddenly this article is so much toilet paper.
————————————————————
Agree that it should burst but what if there is a slow soft landing by careful use of controlled interest rates.
WE have all been waiting since 2010 for the bubble to burst while the property moguls have filled their pockets at the rate of 10k to 20k per month in price increases.
I should have quit my business and bought a few houses and I would have come out much better off than I am now.
Look at Australia’s bubble. How and it defy gravity for so long?
Do not discount The Chinese culture of property. There are so many of them coming and they keep on buying.

#205 bdy sktrn on 01.25.16 at 3:39 pm

#195 TRT on 01.25.16 at 2:27 pm
Quit talking Teslas and electric cars!

They are doomed. The Oil industry will never allow the technology to become mainstream. Lots of $$$ to bribe politicians and government staff.

Don’t be so naive
————————–
would they exist without govt cash?
http://dailycaller.com/2015/08/10/tesla-is-hemorrhaging-money-despite-millions-in-govt-subsidies/

#206 Alvina Knows on 01.25.16 at 3:41 pm

#192 Mark on 01.25.16 at 1:34 pm

Teslas have a variety of driving aids, some of them quite sophisticated, but they do not ‘self-drive’.

Wrong, again!

Here is a recent local news piece…

https://www.youtube.com/watch?v=kMTVrWI3Yig

There was no word on when Tesla would be opening their Moose Jaw dealership.

#207 Mark on 01.25.16 at 3:46 pm

“When a bank lends, new money is created. “

Nope. The money a bank lends must have originally been borrowed from someone who lent it to the bank. Depositors/shareholders/bond market participants.

Here is a recent local news piece…

That’s not self-driving. Self-driving is when a person can hop in the back seat and the car will continue to actually drive itself without requiring any ongoing human input or supervision. Why you troll so much? Are you ill?

#208 Mark on 01.25.16 at 3:59 pm

“Wise words. For us, it took us 9 MONTHS to sell our home in Houston, TX. And that’s with a 25% discount under market.”

A rather misnomer of a sentence. If your house was priced ‘at market’, it would have sold relatively quickly. What you actually discovered was that your (or your Realtors’) perception of the ‘market’ was nowhere near what the market pricing for the house actually was at the time. A house never, ever sells ‘below market’ — a transaction between two non-related parties is always an observation of “the market”, and by definition, cannot be above or below market pricing.

Yesterday I posted the story of (recently) separated friends in Calgary who are trying to sell their jointly mortgaged house. First Realtor obviously was completely out of touch, and counselled them to price dramatically above the market (for an amount = their mortgage note — they bought at the 2012-2013 peak of Canadian RE). The new Realtor they engaged told them to mark it down 20-25%. Its actually getting a little bit of interest, but I suspect the Calgary market is closer to 30-40% down at this point from the 2013 apex. Which is still pretty good compared to a good chunk of the energy shares which are mostly down 75% or more.

#209 Leo Trollstoy on 01.25.16 at 4:01 pm

everybody relax. mark doesn’t understand money, banking, fractional reserve system. ok we get it. no need to keep on about it. let’s b honest he’s been posting wrong stuff forever. real estate prices, inflation, gold, whatever. this isn’t a surprise. let’s put it this way. smokie finds it challenging making $10m in currencies. others ppl are engineers but find it challenging to get a call back for a job in tech from hr. everyone has their own level of ability and challenges. he just has a lower bar. move on

#210 Leo Trollstoy on 01.25.16 at 4:03 pm

Teslas have a variety of driving aids, some of them quite sophisticated, but they do not ‘self-drive’.

see whut i mean? lower bar.

#211 Godth on 01.25.16 at 4:11 pm

#195 TRT on 01.25.16 at 2:27 pm

Another subsidy sink. Constellation thinking dismisses all this noise as more techno-narcissism without a future. Your grandchildren would be better off learning from the level of tech. the Amish practice as we meet hard limits. Diminishing returns and environmental collapse will put paid to all these delusions, arrogance and entitlement. Progress becomes a trap, nothing new, but it always reaches a crescendo as it’s collapsing. Life is paradox.

#212 Mark on 01.25.16 at 4:35 pm

“everybody relax. mark doesn’t understand money, banking, fractional reserve system.”

I understand those topics perfectly fine, but there’s obviously some huge gaps in your understanding of many topics such as your bizarre claim that the sales mix doesn’t exist. Why don’t you focus on what you don’t seem to understand, and that is, the Canadian RE market has been falling since the 2013 apex, and is now entering into the panic phase. Fairly consistent in timeframes with a similar sequence of events in the USA circa 2005-2008.

#213 Water cat on 01.25.16 at 4:37 pm

Confused? So USd long now?

#214 Mark on 01.25.16 at 4:43 pm

“see whut i mean? lower bar.”

Nope. Just pointing out the truth. Tesla (and various other automakers) provide some pretty fancy driving aids, but they are not ‘self-driving’ and won’t be ‘self-driving’ without a dramatic increase in the instrumentation, mechanical redundancy, electrical redundancy, computational/algorithmic redundancy, and various other socio-legal aspects hammered out. Not to mention hundreds of billions worth, if not trillions in infrastructure upgrades. Such as in-road radio-assisted guidance. Even Google’s efforts at ‘self-driving’ has produced a dramatically increased rate of accidents compared to human-driven vehicles, under idealized conditions.

Mike Shedlock (“Mish”) writes a lot of great stuff on his ‘globaleconomicanalysis” blog, and correctly identified deflation as the outcome to a popping debt bubble in the USA prior to the RE bubble’s collapse. A lot of what I believe is happening (significant demand truncation, and in the prelude to the full on panic, currency weakness)/will happening to the Canadian economy as RE prices deflate (ie: a very strong CAD$) is actually modelled on the logic he used for the US crash. But he is completely wrong with his latest claims that self-driving cars will be reality any time soon.

#215 Yitzhak Rabin on 01.25.16 at 4:44 pm

This is a very good post today.

#216 Ontario's Left Coast on 01.25.16 at 5:02 pm

I’ve been trying to figure out to go Orange or just keep it in my pretend interest account in a big bank. Sigh.

Invest your cash and get a LOC for emergencies (which nobody ever has). — Garth

I disagree… the last thing I would want in a financial emergency is to pile on more debt. Inflation aside, my six months’ cache of cash is a welcome form of diversification as I’m otherwise all-in with my balanced and diversified registered and taxable portfolios.

#217 JimH on 01.25.16 at 5:15 pm

#207 Mark on 01.25.16 at 3:46 pm
“When a bank lends, new money is created. “
Mark replies: “Nope. The money a bank lends must have originally been borrowed from someone who lent it to the bank. Depositors/shareholders/bond market participants.”
================================
“nope” right back at you, Mark! You are 100% dead-in-the-water WRONG on this one. Wrong; totally!

Back around 1975, John Kenneth Galbraith published “Money: Whence it Came, Where it Went”. In it, he makes a very clear case for the creation of money; read this famous quote carefully:

“The process by which banks create money is so simple that the mind is repelled.”

What was that again? John Kenneth Galbraith said what? “The process by which banks create money is so simple that the mind is repelled.”

The process by which banks create money…

Mark; once again, you’re caught talkin’ when you otta be listenin’.

John K Galbraith was nobody’s fool. The Bank of England has finally come around to agree with him, as have many of the brightest economists.

This quote from Cullen Roche is instructive: “…banks lend when credit-worthy customers have demand for loans (assuming the banking system is healthy and banks are engaging in the business they are designed to transact). Loans create deposits, not vice versa. In the loan creation process banks will make loans first (resulting in new deposits) and will find necessary reserves after the fact (either in the overnight market or through the Federal Reserve).”

It should also be noted that Canadian Banks are not even reserve-constrained!

Modern banking isn’t easy to get your head around. This paper from the Federal Reserve is nowhere nearly read enough;

http://z822j1x8tde3wuovlgo7ue15.wpengine.netdna-cdn.com/wp-content/uploads/2015/02/201041pap.pdf

also:
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1905625

http://www.pragcap.com/where-does-money-come-from/

Enjoy!

#218 BobC on 01.25.16 at 5:21 pm

#209 Leo

Feel somehow bigger now?

#219 Water cat on 01.25.16 at 5:31 pm

Got it

#220 gut check on 01.25.16 at 5:34 pm

it’s a game, isn’t it?
The Mark thing, I mean.
it’s the only thing that makes any sense – it’s a test for the rest of us.

#221 JimH on 01.25.16 at 5:36 pm

#192 Mark on 01.25.16 at 1:34 pm
“I assume you don’t know that the Tesla Model S can already self-drive?”

Mark replies: “Teslas have a variety of driving aids, some of them quite sophisticated, but they do not ‘self-drive’.”
==============================
Granted, the 2015 Tesla Model S w/ software Version 7.0 is still in Beta, but you really are splitting hairs, Mark.

A vehicle that can automatically change lanes safely, can automatically recognize lane restrictions and automatically keep up with the flow of traffic has in essence crossed the ‘self-driving Rubicon’, Mark.

#222 Blacksheep on 01.25.16 at 5:43 pm

Mark # 207,

“When a bank lends, new money is created. “

“Nope. The money a bank lends must have originally been borrowed from someone who lent it to the bank. Depositors/shareholders/bond market participants.”
———————————————–
What a dork….

#223 jaybee on 01.25.16 at 5:54 pm

Hahah Blacksheep. Dork is a good description of Mark. Haven’t heard that word in years, but it just seems to fit. He’s a charlatan who is quite clearly a “dork”.

#224 hope & ruin on 01.25.16 at 6:40 pm

#214 Mark on 01.25.16 at 4:43 pm

provide some pretty fancy driving aids, but they are not ‘self-driving’ and won’t be ‘self-driving’ without a dramatic increase in the instrumentation, mechanical redundancy, electrical redundancy, computational/algorithmic redundancy, and various other socio-legal aspects hammered out. Not to mention hundreds of billions worth, if not trillions in infrastructure upgrades. Such as in-road radio-assisted guidance.
_____________________________________

in-road radio assisted guidance? lol. what is that? Research something called SLAM. Simultaneous Localization And Mapping. If you want to get a feel for how these vehicles work.

Not to say that there aren’t challenges. But I think they’re making some headway:

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

#225 SquareNinja on 01.26.16 at 3:21 am

#206 Alvina Knows on 01.25.16 at 3:41 pm

I’m pretty sure the Moose Jawinians know about self-driving cars… unlike our friend Mark!

#224 hope & ruin

I just want to know how they install the in-road radio guidance? Do they just bury the radio tubes under the white lines, or do they have to attach the entire transistor radio to poles above ground? Mark, what do you think?

#226 Rexx Rock on 01.26.16 at 1:12 pm

Eq bank looks like a good investment compared to regular banks and some shaddy investment advisors who give you less than 3% return.
Housing still going strong in Victoria, 16 years and counting.Every home owner in Victoria seems happy with all their wealth achieved for just living in a house.Great retirement dreams for Victoria home owners.