Careful what you wish for

CAT FISH modified

Poor Ian. The dude’s been trying to talk to a couple of his friends about the housing market cracks this blog’s been pointing out of late.

You know. The plunge in detached sales and the withering listing ratio in the Lower Mainland. The soaring vacancy rate and falling prices in Calgary. The job losses last month across Canada. Rising household debt and falling savings. The ascent of a US presidential candidate promising to rip up our free trade deal. That kinda stuff.

“They are new homeowners,” Ian says, “one who has a townhouse in a dodgy location (think prostitutes, auto repair shops) that cost over $800k. Both, who are deeply indebted, had the same reaction; they said GREAT! A housing bust! I can’t wait, I can get a new house cheap! While completely ignoring the fact that their own places with be worth less, and probably unable to sell without owing the bank a small fortune (underwater doesn’t even enter into their minds).”

“I don’t understand,” Ian adds. “Do people think that once prices go down, the debt magically shrinks as well? That may explain why so many are desperate to fork over vast amounts of future earnings for a house in a lousy location. Clearly, our schools have failed us in that people have no idea they are getting into when signing on the dotted line.

“We as a nation, are toast.”

More like panini. Crisp on the outside. Mush in the middle. Modern life makes you wonder what Canadians are thinking. After all, the symptoms of slowdown and asset loss are all around us. As Brexit and Trump have clearly demonstrated, walls are the new black. Cries of ‘Americanism not globalism’ echoed around the Cleveland convention this week, evoking the anti-EU, anti-immigration sentiment that set Britain adrift.

(By the way, that economy shrunk more last month than a stud in a cold lake. The latest survey of purchasing managers fell the most in its 20-year history – “a dramatic deterioration” attributed to Brexit. The IMF has slashed its growth estimate for the UK as the economy contracts at the fastest rate since the credit crisis, amid the service sector’s biggest drop since 1996 – when records began. Oops.)

Walls around Britain. More ready to be erected on American borders. Trade treaties biting the dust. Pissed-off voters clamoring for simple solutions, pulling major governments back to a world of barriers, tariffs and country-first. It has a certain tribal appeal, but it’s toxic for a nation like ours, trade dependent with so much national income and wealth based on exports and commodities.

And that takes us to Saskatoon, of course.

It wasn’t long ago this blog was yapping with real estate snorflers across Saskatchewan bragging about catapulting house and land prices. The commodities boom lifting potash, oil, gas and mineral values had people convinced “it was different” on the prairies – that everybody wanted to flood in and real estate could only bloat further. Well, just like it wasn’t different in Calgary (oil) or Halifax (new ships) and won’t be in Vancouver (Chinese dudes), Saskatoon’s now turning into a dud market.

Local realtor Josh Buchanan puts it this way: “We are now halfway through 2016 and it appears as though the local residential real estate market is getting worse, not better. Every month so far this year has seen a decline in the number of sales compared to the same months last year and June was no exception.”

Sales are down. Listings are up. Prices are retreating. The sales-to-listing ratio is collapsing. This is the slowest year for deals since the end of the credit crisis, despite a big bump in population. “When it comes to prices, we are seeing consistent softening of the average sales price compared to 2015. So far this year, 5 out of the 6 months have shown lower average sales prices than the same months last year…”

Buchanan adds: “For the second half of 2016, we should even see more downward pressure on the average sales price and I would expect that the average price for the second half of the year will be noticeably lower than that of the first half. Unfortunately, because the sales-to-listings ratio in 2016 is falling even lower than 2015, it means that this will not be a quick correction but rather the fall in prices will continue into 2017 at an accelerating rate.”

Okay, I get it. Calgary is not Vancouver. Saskatoon ain’t Toronto. Every market is local. All regional economies are unique. But the conditions under which it makes sense to have all your net worth in housing, or to carry a giant mortgage, or be in a leveraged, speculative position on a property, are threatened. The forces that spawned Brexit & Trump, cheered on by the rabble reading this blog, guarantee a long, sustained period of low growth, low yields, low inflation and low jobs.

So, yeah, Ian’s friends are idiots. And I know how they’d vote.

234 comments ↓

#1 The Spectre on 07.22.16 at 6:12 pm

DELETED

#2 Nelley on 07.22.16 at 6:14 pm

Tariffs are TAXES-the special name was invented to muddy the water-contrary to ECON 101 textbooks, taxes are going to be paid by somebody to fund the giant and expanding nanny state-tariffs mean companies importing goods pay a few shekels rather than get a totally “free trade”/free ride.

#3 Vundo on 07.22.16 at 6:18 pm

http://www.bloomberg.com/news/articles/2016-04-27/be-afraid-be-very-afraid-if-you-re-investing-for-the-long-run

Low growth, low yields, low inflation possibly over the very long term. Did I make a big mistake getting invested rather than just hanging on to my cash? Are 7% or even 5% averaged annual returns ever coming back for us or am I every bit as screwed as my homeowning brothers and sisters???

#4 Shawn on 07.22.16 at 6:18 pm

No Problem?

After house prices fall the recent over-indebted new buyers will have less than 0% of their net worth in their house.

So that passes the rule, correct?

Of course not, because the rule should be don’t have too high a percent of your assets in real estate. Not net worth, assets. Buyers are on the hook for the full asset value which is what they can lose.

#5 BobC on 07.22.16 at 6:21 pm

I know you don’t understand. We’re all different.
Right or wrong, left or right does it matter? It’s been 7 1/2 years since I heard a crowd chant USA USA!
I have to admit it sounded good.
I’m tired of being ashamed and apologizing for being an American. I’m tired of being ashamed and being told I should apologize for being born white. I’m tired of being ashamed of being straight and I’m tired of being embarrassed of our President.
Right or wrong, I want to be proud of America again and I want my kids and grandkids to be proud to be an American.
Screw the money.

#6 Frank on 07.22.16 at 6:24 pm

Yeah every market is local and the only one I care about is Vancouver, mine.

Despite the insistence around here that the bubble here is all local (because incomes are flat and the same banks that are cautioning bubble are the ones giving out the million dollar mortgages right?) There is absolutely outside money coming in. Nothing else in the world is giving back 30% a year and investors love chasing a trend that’s half way through.

So where does this leave us? Rates that aren’t going anywhere for years and global uncertainty likely to get worse as an loud, orange mophead polls better means people will seek stability. Enter Canada with its PM who’s promised to borrow billions to keep things a float and pretty looking city whose real estate defies logic. Vancouver obviously can’t go 30% year over year for long but there’s nothing that says it needs to correct any time soon. The marker can stay irrational a long time.

#7 DavyH on 07.22.16 at 6:28 pm

First

#8 Ace Goodheart on 07.22.16 at 6:33 pm

Numbers are in: Investment growth for 2015-2016 (12 months, July 2015 to July 2016) for my holdings:

Canadian Stocks: increased by 11.53%

Canadian Reits: increased by 24.31%

American Stocks: decreased by 3.73%

ETFs: increased by 5.6%

I am holding a variety of items in each category as per my usual method of picking things (diversify over the broad spectrum – with REITs I just try to hold at least one of each type of property).

Only thing that brought me down in the last 12 months was American stocks, which continue to not perform anywhere near as I had expected.

Oh, house values (what this blog is actually about): Have three of them:

Two in Toronto: 1st: is up 50% from last year (in a crappy neighbourhood, but they decided to put a subway stop across the street – go figure – likely will continue its meteoric rise).

2nd: up by 35% (slightly better neighbourhood).

3rd: In a rural area, appears to have gone down by around 15% as properties in the area are selling below list or not selling at all.

So that’s the verdict from my side of things anyway. Has been a very good year for common stocks and REITs in Canada, crappy year for commons in the USA and ETFs have also done well.

Houses in crappy locations in Toronto, that have “gentrified” have done very well. Rural property has not done so well. As I have said before, do not buy a house in a “prime neighbourhood”.

#9 WallOfWorry on 07.22.16 at 6:34 pm

Maybe it is only the people on this blog that focus on housing prices that really care? None of my friends are concerned one way or another and I suspect that is more the norm. No doubt people who have recently purchased could be in a world of hurt, but really, most people are paying their mortgage, have already realized massive appreciation and if prices fall back so what?

But let’s focus on the real issue: the hurt that this blog alludes to will become much more real if there is a series of interest rate hikes. As people have to renew their mortgages and interest rates are 2 or 3% higher then maybe the cost of carrying the mortgage could become much more disruptive. Based upon the most recent economic data (jobs report etc) there is absolutely no reason that the Fed shouldn’t hike, and then again in the fall or December.

If they don’t, then the continued focus of this blog on the affordability of Canadian real estate is really just nattering.

#10 crowdedelevatorfartz on 07.22.16 at 6:40 pm

They’d anti vote.

#11 common sense on 07.22.16 at 6:40 pm

Question: Did Brexit and possibly Trump just guarantee low growth, low jobs, low inflation, low yields OR just quicken the pace that much faster than what was already anticipated?

Cycles are cycles after all. Nothing continues on forever. This is just the ending of an extended up turn which naturally ends until the next one starts. No more, no less.

#12 Smartalox on 07.22.16 at 6:43 pm

The Trumpists and Brexiters think that they’re votes will ‘take OUR country back’, but they fail to realize that Trumpists and Brexiters DON’T OWN these countries – that these countries (The US and the UK) were never theirs to begin with.

“You don’t own Patriotism, You don’t own Christianity, you don’t own ANY of it!”

These countries belong to ALL citizens, as intended by their founders, and by hundreds of years of precedent and tradition. For those that believe in a ‘literal’ interpretation of the US constitution, does it not say that ‘all men are created equal’? The Brits have something similar, it’s called the Magna Carta.

Jon Stewart says it better: https://www.youtube.com/watch?v=mNiqpBNE9ik

I had occasion to watch a YouTube video of Ronald Reagan’s speech of his acceptance of the Republican Nomination to be President at the convention in 1980 (it was posted by the Globe and Mail), and apart from it being painfully clear that Reagan was only ever a trained actor reading a script, the speech’s themes of an OPTIMISTIC and INCLUSIVE America stood in stark contrast to the pseudo-fascist drivel and petty-bully threats that oozed out of Cleveland this week.

Here’s a link to the Reagan speech:
https://www.youtube.com/watch?v=SBP2gvZTnwM

#13 j pea on 07.22.16 at 6:44 pm

The latest survey of purchasing managers fell the most in its 20-year history – “a dramatic deterioration” attributed to Brexit…”

Hey Garth i thought, according to you, that one month doesn’t make a trend but woops add a little cherry jam and magically it now does! Cherry picking season was over as of mid July btw…

Watch what happens when an export driven economy like Britain is with a heavy weighting of its gdp on exports does when the falling pound in facts end up boosting exports in the months ahead. Let’s see that play out and not jump to conclusions so quick. I’ll take the bet that the falling pound boosts exports and results in better than expected gdp in the coming quarters.

Oh but wait, the Brexit was supposed to go as far as be the catalyst for the next world War, instead the typical short term analysts if you want to call them that from the politically driven IMF trumpet a barely one month pmi as their “see SEE?! I Toldja So!!” Rallying cry…

Nothings changed…fear fear fear to try and sell the losers side agenda.

The PMI is a leading indicator. — Garth

#14 DG on 07.22.16 at 6:47 pm

Flat Tax Rate
This is a bit of the topic, but it came to my mind as I was reading the other posts on this blog:
Wouldn’t a flat tax rate be the fairest and most moral option for taxation?
Why a progressive taxation is now considered to be a status quo in most western countries?
I work as an Engineering and make around 80K a year without overtime (so you can’t define me as the ‘filthy rich’ who hates progressive taxation for ‘selfish’ reasons), but myself and many of my colleagues often avoid working overtime hours, or prefer to bank overtime hours and take them as a vacation. The main reason is progressive taxation.
Overtime hours put us in the higher tax bracket and therefore create a ridiculous situation in which our net hourly rate (tax deducted) for the overtime hours is lower than the hourly rate during regular work hours. So who would want to work more hours but get paid a lower salary during these hours?
I know it might sound a bit simplistic, but wouldn’t the government benefited more, both financially and from a worker productivity stand point, if we just had a flat tax rate in Canada…? This will also eliminate any need for income manipulation like income splitting, transferring income to different tax years to avoid paying more taxes, etc.

#15 Pete on 07.22.16 at 6:50 pm

Do people think that once prices go down, the debt magically shrinks as well?

Yes, Lots of people do. Many a time I have had to answer exactly this question for people who should know better than to have to ask.

#16 Paul on 07.22.16 at 6:50 pm

I guess CNN can’t win them all!
Go TRUMP Go

http://www.theblaze.com/stories/2016/07/22/cnn-reporters-racially-charged-question-for-black-trump-supporter-backfires-im-sick-of-that/

#17 TCContrarian on 07.22.16 at 6:51 pm

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

Joy !!!! Does this mean I’m 1st ?

And I sold my JOY Global (JOY – NYSE) for a 86% gain (in less than 6 months)! And it’s Friday.

Happily renting as well…

Slowly adding to my Freedom, like some other posters here.

BTW, give it up Ian. No-one is listening! Brainwashing is a powerful force.

TCContrarian

#18 JRH on 07.22.16 at 6:51 pm

My rent in Edmonton is still 39% higher then 2008.

#19 Juanito on 07.22.16 at 6:53 pm

Edmonton will be the next shoe to drop starting this fall. The blue collar construction jobs will dry up as construction season tapers and module construction yards start turning into empty fenced lots as the mega projects reach an indeterminate cadence. Fab shops are already running dry and shutdowns are actually getting pushed back. Half of Nisku is available for sale/rent. There is a huge expectation on labor unions to cut rates, but some locals aren’t budging yet as they still have a leverage associated with labor shortages. Non union groups are likely already folding like a cheap camp chair. Its going to take a lot more than the recent modest uptick in capital spending by Encana to get things rolling again. High potential to get ugly here real soon.

#20 Damifino on 07.22.16 at 6:54 pm

“I don’t understand,” Ian adds. “Do people think that once prices go down, the debt magically shrinks as well?”
—————————

Yep… where I come from, we call that ‘innumeracy’.

To some, it’s a point of pride to be considered a ‘people person’ and not some sterile numbers dude.

That would include your buddies, I suppose.

#21 ROCK BEATS PAPER on 07.22.16 at 7:04 pm

Slow down there Garth. No trade deal has been axed. You present lots of facts, except about trade. Even Brexit will not have any trade deal changes until 2019 (article 51 at the end of year starts a two year clock).

Lets take the testosterone level down a few notches. We have May, Le Pen, Clinton, Merkel and of course T2.

#22 Mr. Frugal on 07.22.16 at 7:12 pm

Walls are the greatest invention ever. The roof on my house would fall down without them. All nations need borders. I mean seriously Garth you can’t be that stupid.

#23 Smartalox on 07.22.16 at 7:19 pm

Garth: Post #1 implies that refugees are rapists. Surely that can’t be acceptable?

It is not. Now deleted. — Garth

#24 BOOM! on 07.22.16 at 7:22 pm

#17 TCContrarian

Congrats on owning Joy Global. Nothing like a sweet buy-out to goose the stock price.

Yup 2016 is turning into a VERY sweet year – for some of us. Those without over priced RE that is in stalled or falling regions.

Too early to gloat yet, the year doesn’t end until Dec 31.

Ya’ did very well!! Congrats!

#25 Basil Fawlty on 07.22.16 at 7:30 pm

Working people in the Western World are fed up with an economic system that left them behind 30 yrs ago. How many manufacturing jobs were lost due to NAFTA? Did we not trade before this corporate written deal?
What is wrong with people wanting less inequality, getting money out of politics and regulating the too big too fail banks?
The American Dream is slipping away while recent economic growth has concentrated in the top 1 percent.
It is time for a change and the TPP should be scrapped, before it sells us out completely.

#26 For those about to flop... on 07.22.16 at 7:32 pm

“They are new homeowners,” Ian says, “one who has a townhouse in a dodgy location (think prostitutes, auto repair shops) that cost over $800k.

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

I don’t often,but when I do think prostitutes and auto repair shops ,I think Clark and Hastings area…

Do you want me to put caulk in that hole?…

M42BC

#27 Sugar lips on 07.22.16 at 7:41 pm

Love your work Garth.

Any chance of doing a piece on the classic car market?

The price of 60’s Porsches and vw vans have gone bananas, I assume there’s a direct correlation with the wealth effect from the housing bubble?

Which Classic should the next generation be buying? Does history repeat?

I just cant get excited by Golfs and boxsters but ilve been wrong before (according to my wife anyway..)

#28 pathcontrolmonk on 07.22.16 at 7:45 pm

I think my friends hang in the same circles as Ian. They just bought a duplex (they got angry when I called it a townhouse) for almost $2 mil located right by those same prostitutes and repair shops. They expect to make 50% on their money in 2 years, who knows, maybe they are right?

#29 Freedom First on 07.22.16 at 7:49 pm

Yes. Ian, that’s why in face to face conversations I say nothing to the financially illiterate, ignorant, and insane, as they are mired in a close-mindedness quagmire. Truth and wisdom only makes them angry.

The consequences of this state of mind and what it did to the masses in past, and recent history, across the globe is meaningless to them.

Keep in mind, I learn from everyone, however, most people I would not dare tell them face to face what they are teaching me. Look at the debt levels of Canadians. Proof positive I am right, which is nothing new.

Look after yourself. No one else shives a git.

#30 Joe2.0 on 07.22.16 at 7:55 pm

The thing I like about Trump is he doesn’t have to lobby for money like the rest.

It’s always amazed me how most politicians are funded by large corporations, it’s kind of like inside trading.

I wonder if they have any alterior motives.

#31 Nelley on 07.22.16 at 7:55 pm

#5Bob-if you are straight you are sexist-if you are white you are racist-if you are American you destroyed the perfect Aboriginal paradise-ask yourself who is pumping out this propaganda 24/7 through the MSM and “educational” system.

#32 Smoking Man on 07.22.16 at 7:58 pm

Someone mentioned yesterday it’s the lefties that are always botching, whining and insulting.

Obviously. If they had any form of an imaginary skills, building skills. Positivity to actuly build shit. They would be rightees, rather that faceless victims of there oun doing.

You dont see this multi millionaire insulting anyone when I’m not Jacked on Jack.

In fact being a liberal is a confession to the world that you are in fact mindless. You want to start a business, hire your own slaves to make you money but you don’t know how.

So you act violently against others that see the light.

Pathetic creachers.

#33 Oot of the Hoos on 07.22.16 at 7:58 pm

The secularist-atheist open borders immigration Liberal strategy to permanently defeat conservatives (by votes) has cost us all free global trade. I regret that.

Liberals are so greedy they could not resist losing open global trade just to fulfill their desire to permanently destroy their opposition. I regret conservatives shifting semi-communist-atheist-perverse to stay in the game; eg. Harper, Trump. At least we might attempt to defeat the beheadies if Trump wins. Will law and order and less social stealing happen? I doubt it. We are all evil Liberal social thieves, sodomy-adulterers, and baby killers, now. Read the ten commandments. Liberals break four.

Liberals are not good and not moderate.

Moderate like you? — Garth

#34 the Jaguar on 07.22.16 at 7:58 pm

News item on CBC radio this morning reporting a drop in Calgary census numbers (bodies in the 20-25 group or something similar). 5000 left the city since the last census. Sounds about right given the construction and oil & gas related jobs that dried up. Most would be those who come into the province when the good times roll, but return to their home provinces when the axe falls. Back to the BC interior, (which experienced a crime surge in the spring as a result ) or New Brunswick, etc. Explains the ‘For Rent’ signs, the vacant investor units, fallen transit use, etc. That’s what happens when a city on steroids returns to a more normal atmosphere. Funny thing is….it’s kind of nice in a way. Yes, the economic downturn is a concern, but it’s fertile ground for diversification of the economy which never occurs in high boom times. Think I read that even at this low point Alberta GDP is still the highest in the country. (TD Bank report?) Calgary has a young, educated workforce, new infrastructure and is community minded. Watch what happens between now and the next Calgary Winter Olympics. (coming soon, kids!) We’ll party like it’s 1988. It really is different here. Not in a real estate related way, but in the attitude of the people of the city. With all the has happened in this province in the past couple of years, floods, fires, & economic problems I have every confidence in this city and provinces recovery. Like a submarine lying at the bottom of the ocean, somewhere I just heard the small sound of an engine restarting….

#35 Goldie on 07.22.16 at 8:02 pm

Since the brexit vote occurred, the UK has yet to leave the EU and has yet to implement any of the proposed changes to the way that they deal with the EU, so it’s fairly easy to postulate that, as with the currency decline, the current domestic market situation is based off of:
A) nothing more than emotion and/or the desire to “punish” them for their decision or…
B) issues which are unrelated to Brexit.

I really have to hand it to them though because they have proven just how powerful fear, which was propagated by both sides of the debate btw, is as a tool of manipulation. Anti-brexit have convinced lemmings the world over that Britain leaving the EU will somehow disrupt global trade on a long term basis, when the most likely scenario is that trade agreements between the UK and other non-EU countries will be almost completely unaffected and agreements between the UK and various EU countries will be renegotiated with expediency because companies in both regions still want to make money.
This whole “Y2K” attitude that some people have toward the issue is really confusing.

#36 Freedom First on 07.22.16 at 8:12 pm

I once dated a girl whose dad was a math teacher and mom was a home maker!!!!!!

#37 Heisenberg on 07.22.16 at 8:14 pm

Can we ship all the whiny millennials that #donthave1million to rural Saskatchewan?
Guess what! You don’t need a million! Can you scrape together $15K? That’s what, like a year’s worth of Starbucks and kale chips….

This house is just like any other Vancouver “fixer upper”, except it’s on a lot twice as wide:

https://www.realtor.ca/Residential/Single-Family/17119253/115-2nd-STREET-E-Kyle-Saskatchewan-S0L1T0

Move now.
Doooooo eeeeeeeet!

#38 Smoking Man on 07.22.16 at 8:14 pm

Every summer when real estate slows down the renters rejoice. Only to be bitch slapped the next spring. This year is no different.

Supply and Demand animals. Population inflows.

How can I make it anymore clear.

2 million dollar bungees in Shlong Branch in 3 years.

Whichfull bias leading cause of missing the boat.

#39 merica 1st on 07.22.16 at 8:16 pm

Whop whop, Trump Trump. Gatta get that green card before its too late.

#40 Frank on 07.22.16 at 8:24 pm

#3

Anyone that thinks they can predict returns 20 years out is a liar or a fool.

#41 crowdedelevatorfartz on 07.22.16 at 8:24 pm

@#1 The Specter
1st AND deleted!
Childish AND vulgar.
Congrats
A dubious record that fellow blogdogs should avoid.

#42 Apocalypse2016 on 07.22.16 at 8:24 pm

To his credit, Trump does understand more fully than most the apocalyptic times we are now in.

Twice in one week, a party presidential candidate has had to delay or reposition the announcement of a VP nominee due to terrorist attacks.

Never before.

The Summer of Hell has only just begun.

Things will get MUCH worse, very soon.

Have a plan, everyone.

#43 Freedom First on 07.22.16 at 8:29 pm

#26 For those who Flop

Flop. You are on the right Blog. Sexual innuendos are welcome here. Or so I’ve heard.

#44 Jean-Pierre on 07.22.16 at 8:31 pm

Bonjour a tous,

Here a Montreal, mon beau cite, the whole housing market is going tres fort, le prices keep rising! No signs of problemes ici. As you say garth, all houses are local!

Va bien,
JP

#45 crowdedelevatorfartz on 07.22.16 at 8:33 pm

@#32 Oot of the Hoos
“We are all evil Liberal social thieves, sodomy-adulterers, and baby killers, now. Read the ten commandments. Liberals break four.”
*******************************************
Wow! Just WOW!
Where in the “H”, “E” doublehockeysticks did you come up with THAT rant?
Guess I wont run into you at the next LGBTQ Liberal fund raiser.
Not to worry, I’ll steal you a rainbow flag to hang in your closet.

#46 Goldie on 07.22.16 at 8:35 pm

@ #12 Smartalox:

Preaching tolerance and then screaming in rage at those who think differently. Would it be fair for me to assume that you are a progressive-leaning liberal? At least you didn’t start in with the “ist” and “phobe” labels… oh wait; you did write “pseudo-fascist”. Does that count, since it was only a “pseudo-ist”?

#47 The Dude on 07.22.16 at 8:36 pm

Useful info at times but does anyone know the actual success rate of the predictions made on this blog? Hard to find anyone who gets it right more times than not these days. Mostly just banter as people don’t look at the whole situation.

#48 Pale Ale on 07.22.16 at 8:37 pm

In the meanwhile — guess what — house flipping courses… in Montreal!

http://www.successpatheducation.com/register-for-events/event-registration-montreal/

I can just imagine who would be attending this…

#49 The Wet Coast on 07.22.16 at 8:38 pm

#5 BofC

Right on Brother…screw the money. My kids are American’s and they will taught to be proud of the land of their birth. They are also Canadian’s and they will be taught to be proud of the place of my birth. Like many I’ve had enough.

What is that code for? — Garth

#50 Freedom First on 07.22.16 at 8:47 pm

#33 Jaguar

Many many people are living in a world of hurt right now. I know, as I live here.

Don’t worry about me though, as I am doing very very well, of course.

Allow me to speak for those hurting right now, Jaguar. “Foff”

#51 Nelley on 07.22.16 at 8:53 pm

Good for a major belly laugh-watch the politically correct shills of The Young Turks totally drop the fake facade
https://www.youtube.com/user/TheAlexJonesChannel

#52 Franco on 07.22.16 at 8:58 pm

#5 – Did you say screw the money? Are you for real? Being American is all about the money. What do you think the American dream is? If it was not for the money the American dream would be a nightmare.

#53 Bytor the Snow Dog on 07.22.16 at 8:58 pm

@#25 Basil Fawlty- well said.

@#32 Oot of the NUT Hoos-

Koo Koo.

#54 Franco on 07.22.16 at 9:01 pm

Every year has it’s moments and 2016 is no exception. 2016 will go down as the year of terrorists with mental health issues.

#55 Kreditanstalt on 07.22.16 at 9:06 pm

Just MAYBE the “long period of low growth” which you lament is nigh was baked in the cake long before Brexit, Trump or angry voters.

Rampant deficit spending, money-printing, manipulation of interest rates and ever-expanding borrowing and spending did it…that’s what happens when the “money” and credit supply soars.

#56 Chaddywack on 07.22.16 at 9:09 pm

Yeah Ian’s friends would vote for Trudeau and then not understand how sunny ways lost them a job.

I can’t believe how someone would actually think their mortgage would drop when prices drop. I guess it’s kind of like how the budget will balance itself…..

#57 Smoking Man on 07.22.16 at 9:10 pm

A few days after I met David Bowie he wrote this.

How did he know….?

https://youtu.be/9_M3uw29U1U

#58 Vancouver Troy on 07.22.16 at 9:14 pm

Why do people keep talking like having a secure border is a bad thing?????

I can’t even take a peice of fruit into the States yet 11 million people entering unchecked is a good thing???

#59 Mr. Frugal on 07.22.16 at 9:16 pm

#5 BobC on 07.22.16 at 6:21 pm
I know you don’t understand. We’re all different.
Right or wrong, left or right does it matter? It’s been 7 1/2 years since I heard a crowd chant USA USA!
I have to admit it sounded good.
I’m tired of being ashamed and apologizing for being an American. I’m tired of being ashamed and being told I should apologize for being born white. I’m tired of being ashamed of being straight and I’m tired of being embarrassed of our President.
Right or wrong, I want to be proud of America again and I want my kids and grandkids to be proud to be an American.
Screw the money.
______________________________________

Well said Sir. Well said. And for what it’s worth some of us do understand.

#60 Smoking Man on 07.22.16 at 9:20 pm

First dance with the wife…. Before she was a wife after we left the movie the highlander when she kicked the crap out of a dude when he called her the c word.

On the dance floor. This was playing. My wife the first feminist. Who loves the feel of a real man. Even though I’m soft now.

This song was playing at Djs in the old hydro building.

https://youtu.be/1IQdhUd4V1o

#61 Nelley on 07.22.16 at 9:27 pm

#57Vancouver-I can top that-the entire province of Ontario omits less C02 IN AN ENTIRE YEAR than China pumps out IN ONE DAY yet somehow it makes sense to exempt China from emissions controls and ruin the Niagara Peninsula farmland with absurd windmills.

#62 Smoking Man on 07.22.16 at 9:28 pm

To my 3 fellow star men on earth.

Blythe Barrington. He’s changed his name to bryer Barrington.

Charles Ashman

Jeremiah Chew..

For you my brothers…… Vegas adventure soon.

https://youtu.be/1IQdhUd4V1o

#63 acdel on 07.22.16 at 9:36 pm

#5 BobC

No need to apologize for anything and you should be proud of your country as all should be proud of the country they originated from or their families.

As a Canadian I can honestly say that I have never met a disrespectful American and I live in a city where many live.

It’s always about the politics,money, and the dream of a selected few that makes so many so angry. Not due to envy but the stupidity we feel deep down of being conned.

I like your attitude!

#64 Smoking Man on 07.22.16 at 9:38 pm

Jesus I’m trying to paste a link to star Man. In the above posts.

The council back on Nictonite not letting it happen.
Google Star Man, David Bowie..

Let me see what these words turn into.. Elites is all I’m saying.

We got them too on Nectonite.

#65 Boom! on 07.22.16 at 9:46 pm

I thought Canada voted JT into office for “legal weed” and other social goodies?

Seems that came with a rather high price, eh?

Can us American’s (who are even more illiterate than Canadians) ever hope to choose better this November?

My money says NOT likely

#66 45north on 07.22.16 at 9:46 pm

Rising household debt and falling savings.

debt is invisible. I mean suppose percent equity of real estate was visible? A lot of front lawns would be 5% green and 95% brown. Pay-day loan outfits are visible. In Ottawa, Home Hardware used to be at the corner of Heron and Bank. Now it’s a pay-day loan outfit.

Basil Fawlty: How many manufacturing jobs were lost due to NAFTA?

I’m thinking none. NAFTA is North American Free Trade:
https://en.wikipedia.org/wiki/North_American_Free_Trade_Agreement

unless you count China as being in North America

The real estate market in Alberta is falling but is being cushioned by rising prices in Vancouver. Established professionals who own a house outright in Vancouver are cashing out and moving back home. In some cases that is Alberta. Another way is that people in Alberta can readily sell vacation property in BC.

#67 Smoking Man on 07.22.16 at 9:48 pm

This old haggerd couple asks the waitress to ask me if it’s cool to share the Smokey Booth at Seneca.

I aggreed with the following instructions. I don’t want them to thank me or talk to me…

I’m greater fooling at the moment…

Why I hate hanging with humans is anyone’s guess.

Solitude is so underrated. Millennials have no concept of fk em all.

Fitting in is all that counts..

The Dr. Of Smoking

#68 For those about to flop... on 07.22.16 at 10:03 pm

#64 Boom! on 07.22.16 at 9:46 pm
I thought Canada voted JT into office for “legal weed” and other social goodies?

Seems that came with a rather high price, eh?

Can us American’s (who are even more illiterate than Canadians) ever hope to choose better this November?

My money says NOT likely

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

Hey Boom,I must admit I am tad disappointed that Donny Rump didn’t pick John Boehner as his running mate.

While Boehner himself dosen’t annoy me ,the hue of his skin would have gone well with The Orangutan and they could have run on the pledge of an Orange Flush…

M42BC

#69 Ronaldo on 07.22.16 at 10:17 pm

#35 Freedom First on 07.22.16 at 8:12 pm

I once dated a girl whose dad was a math teacher and mom was a home maker!!!!!!
————————————————————–

That doesn’t add up.

#70 rjrt8181 on 07.22.16 at 10:24 pm

Woah, weird. Smoking loser with more lame comments. What i’d give to meet him in real life. I guarantee his staunch opinions would be null and void in real life. he’d be to busy drooling on himself in a self proclaimed stupor. if this is the face of the right, i’m glad i have no part in it. remember teachers are the problem and chain smoking alcoholics are the answer. right. also he has a really lame blog that no one cares about. don’t bother checking it out. no one else does. the world will be a better place with out you. cancer can’t come quick enough.

#71 Boom! on 07.22.16 at 10:40 pm

367 Flopper…

“Orange Flush” nice touch. John Boehner is a has-been in politics now. The guy was decent. Son of a bar keep, he knew his roots and what it takes to do ‘OK’ in America.

I have no desire for Trump. He inherited his wealth, he didn’t make it. Studies show he would have even more had he simply invested the cash in a broad based index fund. (Who wants this type of ‘smarts’ running the country?) Not me, thanks. Hillary, the consummate ‘coin operated’ woman doesn’t impress me either. There ARE alternatives. You will notice that they were not included in the debates, so called. The libertarians their top people running are two successful republican governors, the Green party has an MD. Both highly credentialed, yet one of our major parties has a stooge named Donnie.

This may not turn out well…

Still, as from their Magna Carta roots from the 13th century, it is both our right, and duty to select those who govern us from President to lowly congressman.

It has been through serenity circumstances, such as the assassination of President McKinley that gave us Teddy Roosevelt, arguably one of the best of the 20th century leaders.

Somehow, it always seems to deliver just the correct person, at the correct times.

Maybe the Mad magazine poster boy Alfred E Neumann the “what me worry” guy has the right attitude!

M64WI

#72 Simple Math Test on 07.22.16 at 10:41 pm

A way to find out who knows math:

“When John turned six his sister was three.

When he turned fifty-six, how old was his sister?”

You’d be surprised how many people do some brain gymnastics and announce “Twenty Eight”, and are proud of their answer.
Didn’t even need a calculator.
or a spreadsheet.

#73 TRT on 07.22.16 at 10:43 pm

Ian:

“I don’t understand,” Ian adds. “Do people think that once prices go down, the debt magically shrinks as well?”

Thy were insulted by your comment. So they said they bill buy another house if prices go down. Meaning you don’t have one!

What’s their net worth vs yours? Make sure you know who’s word is worth more. Money talks and Bs walks.

#74 Mr. Frugal on 07.22.16 at 10:46 pm

Okay Smoking Man here you go.

https://youtu.be/sI66hcu9fIs

And a bonus one. Probably the best one of the album IMO.

https://youtu.be/XXq5VvYAI1Q

#75 Heisenberg on 07.22.16 at 10:55 pm

#50 Nelley on 07.22.16 at 8:53 pm
Good for a major belly laugh-watch the politically correct shills of The Young Turks totally drop the fake facade
https://www.youtube.com/user/TheAlexJonesChannel

——————————
That WAS hilarious! Ana totally lost it! I can’t believe she called Alex Jones a Fat F***!
Isn’t she against the whole fat-shaming thing? Oh boy…

#76 TRT on 07.22.16 at 11:03 pm

For the Trump hating posters:

What happens if he wins?

And he will have a digital record of all the haters ;)

History is destined to repeat itself.

#77 stage1dave on 07.22.16 at 11:04 pm

#27 Sugar Lips

I’ll confine my remarks to NA vehicles, ’cause that’s what I know. Exotics/prewar/rods also out of my area of expertise.

Two rough rules of thumb:

1)buy “nameplate” muscle with good paperwork and clean (or verifiable) ownership history and/or provenance from about 1964-1972…power declines spectacularly after that. (comp ratios/cam timing were dying by 71)

2) Remember people always wanna buy back their childhood! Think 20-25 years ago; what was hot? Any collectable market gets started this way…

2 1/2) Classic cars; not muscle in any contemporary sense, or when they were new. A smattering: 1963 Chev, 1959 Buick, 1966 Toronado, any 63-72 Buick Riviera, Camaros and Mustangs with small V8’s, the list here is almost endless…yesterday’s grocery getter is tomorrows’ cool ride.

(Btw, “Nameplate” muscle means for instance “Plymouth GTX”, with all the attendant OEM performance hardware and trim items; NOT “Plymouth Satellite” with the 318 pulled, a 440 installed, and a few nameplates added)

Tip #3: if you don’t know numbers, or how to read data plates and production broadcasts, VIN’s, rare colours and options, etc; in short, if you can’t tell a real one from a wannabe get someone who can! They can come along and assist in the search. I would also buy a car that has been “restored” as opposed to doing one yourself…cheaper and less hassle. I say this modestly enough, having restored/bought and sold dozens. (and owned hundreds)

Hot picks for me right now would be fox body (87-93) Mustangs and Capris with the 5.0 litre; 86-87 turbo Buicks; third gen Camaros/Firebirds (T/A’s & Z/28-IROC’s) and early 90’s SS-454 chev trucks.

If buying for max long term investment, low production big-block convertibles, Hemi anything, GM products with LS-6; RA III or IV, W-30, Stage 1 hiding underhood; limited production muscle with cool names like GSX, The Judge, Roadrunner Superbird, (which you will never lose in parking lot!) ANY Shelby anything 65-70, etc. However, be prepared to part with a great deal of your potential (or actual) investment portfolio…most of the above will start at around 6 digits if they’ve been on a rotisserie, and many of them are now multiples of that sum.

If buying for investment, buy the best example you can afford and maintain it. (that means you have to drive it, too) If buying for pleasure, buy what makes you (or the wife) happiest.

I could expand on the above to my own boredome (and I’m sure everyone else’s) but I bet a few blogdogs here will chip in with their own two cents, plus remind me of all the vehicles I missed…

FWIW, the wife and I start selling when we get into double digits, haha…

#78 the Jaguar on 07.22.16 at 11:11 pm

#49 Freedom First
Thanks. Given my opinion of you I consider your f-off a high compliment. I am tempted to detail my family history in the province and the industry, but you, a world class woman hater are not worth the time. You are ‘free’ because no person desires an association with you. You are free because no woman wants to be with you. You are cut loose on the other end, not yours.
And you know it. That’s the hard part to deal with, isn’t it?

#79 A Canadian Abroad on 07.22.16 at 11:13 pm

The Pro-RE crowd won’t want to hear this but, as real estate goes down in value, the debt load will not.

Reverse leverage is a killer.

You leveraged your future working years for a debt load. Now what happens when that debt isn’t worth as much as you paid for it or your work pays less or your life is shorter?

As Garth says, sell now, cash out. No one has ever been hurt making a profit… but a loss…

#80 Long Branch Apprentice on 07.22.16 at 11:15 pm

Doesn’t matter, computer driven Algo-trading will cause the next crash and wipe out trillions anyway.

#81 JP on 07.22.16 at 11:23 pm

Slogan in YVR soon to be “sell now or lose everything”. 2-3 US rate hikes are still on the table, economic data is getting better and better. 2016 will be a year to remember oooooooh weeeeeeeee.

#82 Linda on 07.22.16 at 11:38 pm

Brexit, walls around America etc. – I think people are trying to end globalism, in the naive belief things will go back to the way they were. Thing is, one can stop trading with others or erect tariffs, but neither of those things will bring back all the outsourced jobs or convince companies to invest at home. The reason for companies to invest locally is if 1) they can’t get the product anywhere else & 2) it makes fiscal sense to do business in that particular locale. In other words, there will be profits worth pursuing.

Yes, there ARE companies whose reason for operating is not just profit – they believe in giving back to the community & see the many benefits to doing so. However, the vast majority of corporations do not as yet operate that way & thus the outsourcing of jobs to places where wages are lower, safely/environmental regulations are less stringent & profits can be maximized.

#83 Aggregator on 07.22.16 at 11:46 pm

I've posted his working papers on here a few years ago. This guy know's what he's talking about and had an impact on my outlook for Canadian housing. Read it.

Vested interests will prevent cleanup of British Columbia’s housing mess

To understand why successive Liberal governments acted so carelessly, one has to focus on the incestuous relationship between the real estate and development industry and career politicians in this province. This connection has fuelled the real estate affordability crisis that is transforming British Columbia.

The key to understanding this bubble is the relationship between CMHC, CHBA, CREA and CBA. Trust me.

#84 Metaxa on 07.23.16 at 1:16 am

Just a quick public service reminder:

Things are going to get heated up between now and November, overloads of information and lots of opinion.

Some of you post as if that vein in the middle of your forehead is pulsing already… please make sure your will/power of attorney/medical representation forms are current and up to date.

Stroke and aneurysm are the silent killers and you don’t get a do over very often.

You Trumpeters are about to find out a whole lot about the man over the next few months. Ditto for the Hillary types.

We, all of us, are witnessing the beginning of the end of the GOP, the Doomers among us should embrace that part.

#85 annek on 07.23.16 at 1:20 am

“#30 Nelley-5Bob-if you are straight you are sexist-if you are white you are racist-if you are American you destroyed the perfect Aboriginal paradise-ask yourself who is pumping out this propaganda 24/7 through the MSM and “educational” system.”….

Since when being straight is sexist, being white is racist and being American destroying an Aboriginal paradise?
Sounds like the CBC to me.
# 5 Bob
I hear you. Loud and clear!
I hear the Americans pro Trump loud and clear!
If Clinton does win, she needs to pay attention to this new voice.
Yes, it may be bad news for Canada.
I bet you lots of the silent Canadians feel the same way as the Americans.
Unless they listen to the CBC and read the Star.
Or are too busy paying their mortgages and renovating their houses .

#86 NEVER GIVE UP on 07.23.16 at 1:40 am

Supposing there are only 10 people on earth and there is a government or king who is one of them.
So the king says instead of bartering we will make paper money starting with $1.00 per person on earth.
So we assume the furniture maker has the same value as the bread maker and the candlestick maker. All have the same value in stock as the next guy.
So the candlestick maker says I want to make a house and borrows from the king $5.00 and 9 guys work hard on his house to make it and share in the $5.00 of wealth according to their work.
So the king figures that got everyone working hard so he offers to lend more and more money to anyone who will get off his ass and make a house or anything of value.
When each house is made the money borrowed doubles in the economy.
The king is still owed $5.00 (he is the bank). And the borrower has a house worth $5.00. But also the workers also have the $5.00 in wealth that was given to them by the home owner to build the home.
Magically man’s efforts produce wealth as long as he has the belief that he will get something for his efforts.
If the King did not offer the $5.00 in printed wealth, then everyone would have stayed home and not produce anything because there was not enough incentive to go out and produce anything.
Now each of the workers on the house has an extra .50 cents to spend on bakery items or candles making those workers busier and so on.
If you keep stimulating forever, then you will get people out of their comfortable homes to work for these useless paper dollars that actually get people off their asses to go to work!
It should not matter to us how many zeros you add to the 1 on the paper note as long as you believe in it.
There could be a time in the future when people say that the paper is not worth anything and then you have a problem.
My point is perhaps the central banks think they can keep inflating our currency forever because we as plebeians have always accepted our currency without backing and without checking on how much is being printed / loaned into existence.
Even if our currency collapsed we would all eagerly accept a new currency changing the old $10,000.00 bills into the new one dollar bill because we know we don’t want to trade a load of bricks for loaves of bread.

#87 Bonnie on 07.23.16 at 1:45 am

“5 Bob
I feel your pain and hope enough Americans jump aboard the Trump train and vote! God Bless America!

#88 Say What? on 07.23.16 at 1:54 am

“I don’t understand,” Ian adds. “Do people think that once prices go down, the debt magically shrinks as well? That may explain why so many are desperate to fork over vast amounts of future earnings for a house in a lousy location.”

————————————————————-

Of course their debt would be reduced. There would be all sorts of loan modifications if RE prices were to go down significantly. AS in the USA, we will be told that it’s best for everybody. That’s how Obama sold it to the country.

#89 Smartalox on 07.23.16 at 3:26 am

@goldie #45:

I’m secure enough in my own experiences that I can tolerate the views of others, and have even been known to seek them out, if only to test and re-test my assumptions and beliefs, as new evidence becomes available. It comes with being trained as a scientist.

Based on my observations, which I feel are reasonably unbiased, I find much of the rhetoric spouted by the Trumpists and Brexiters to be unsupported by evidence, though rich in ‘truthiness’, defined as ‘gut feeling, not supported by – and often in direct contradiction of – facts and measurable data’.

I find this sort of intolerance, intolerable. Particularly when intellectual cowards demand that others demand that I respect their right to their opinions, even as they offer none of the same respect to mine.

But don’t mistake my patience, or good manners, in allowing you to finish your vain and ugly twaddle, for any sort of approval or endorsement of what the Trumpists and Brexiters have to say. I don’t share those opinions, and I resent your assumption that I would, based on your assumption that I’m just like you.

You think I don’t love my country, because I don’t feel the same way that you do? That’s your opinion, your judgment of me, and it’s my right to call your opinion BULLSHIT, because I know who I am much more than you think you do, and I think that your presumptions slander my reputation.

I know a lot of immigrants to this country, I know the value they add, and I’m grateful for their contributions. And I’m talking about a broad spectrum of immigrants here, white, black, brown, polyglot, whatever.

I also know a lot of ‘old stock’ Canadians, some with roots centuries deep in Canadian soil, who blame everyone else for their poor life and career choices, the loss ( some would say theft) of what they perceive to be their birthright, some while even simultaneously living off the ‘socialism’ they complain so vehemently about.
Some of them might even be my parents.

Ironically, they never raised me that way, so I’m still somewhat baffled as to how their thinking has shifted so radically. But these are people I love, whom I don’t happen to agree with, and so I tolerate them none the less.

#90 Smartalox on 07.23.16 at 3:27 am

@goldie #45:

I’m secure enough in my own experiences that I can tolerate the views of others, and have even been known to seek them out, if only to test and re-test my assumptions and beliefs, as new evidence becomes available. It comes with being trained as a scientist.

Based on my observations, which I feel are reasonably unbiased, I find much of the rhetoric spouted by the Trumpists and Brexiters to be unsupported by evidence, though rich in ‘truthiness’, defined as ‘gut feeling, not supported by – and often in direct contradiction of – facts and measurable data’.

I find this sort of intolerance, intolerable. Particularly when intellectual cowards demand that others demand that I respect their right to their opinions, even as they offer none of the same respect to mine.

But don’t mistake my patience, or good manners, in allowing you to finish your vain and ugly twaddle, for any sort of approval or endorsement of what the Trumpists and Brexiters have to say. I don’t share those opinions, and I resent your assumption that I would, based on your assumption that I’m just like you.

You think I don’t love my country, because I don’t feel the same way that you do? That’s your opinion, your judgment of me, and it’s my right to call your opinion BULLSHIT, because I know who I am much more than you think you do, and I think that your presumptions slander my reputation.

I know a lot of immigrants to this country, I know the value they add, and I’m grateful for their contributions. And I’m talking about a broad spectrum of immigrants here, white, black, brown, polyglot, whatever.

I also know a lot of ‘old stock’ Canadians, some with roots centuries deep in Canadian soil, who blame everyone else for their poor life and career choices, the loss ( some would say theft) of what they perceive to be their birthright, some while even simultaneously living off the ‘socialism’ they complain so vehemently about.
Some of them might even be my parents.

Ironically, they never raised me that way, so I’m still somewhat baffled as to how their thinking has shifted so radically. But these are people I love, whom I don’t happen to agree with, and so I tolerate them none the less.

#91 Sentiment Index on 07.23.16 at 3:44 am

Well if the first 74 posts are any indication, Greater Fool commentors are in a less than optimistic mood – maybe the UK PMI index is correct after all (non sequitur intentional).

Also, you have a few newly minted Macro Economists, the faerie dust and unicorn crowd from YVR RE praying for a miracle.

From an early 80s, early 90s RE crash survivor this is entertainment plus reading the decades old logic repeated as to how now is different, yet, about to fall upon its own sword.

Keep on trying to advise Garth. They will come to appreciate you soon enough.

#92 Annek on 07.23.16 at 4:14 am

In Case the millennials who voted for T2 think he is great for them, you should read this.

Trudeau vs Canada’s youth​: Young Canadians are the big losers under Liberal government

Republish
Reprint
Catherine Swift, Special to Financial Post | July 20, 2016 11:46 AM ET
More from Special to Financial Post

http://business.financialpost.com/fp-comment/%E2%80%8Btrudeau-vs-canadas-youth%E2%80%8B-young-canadians-are-the-big-losers-under-liberal-government

#93 jane 24 on 07.23.16 at 4:39 am

I was a RE agent in TO in the late 1980’s before and during the last RE bust. It went from red hot to silent phones overnight. I went from calculating how much profit a family would make if they sold to how much of a cheque they would need to pay the lawyer to get out. This was a major shock with many tears to many families when they relised they were stuck there.

On another note I just put £10 on Trump to win at my local bookies. I don’t like Trump, I think he will be a disaster and will waste Canada but I do think he will win. The middle class is just so angry with the governing elite.

#94 Chance Rich on 07.23.16 at 6:03 am

The probability of a Trump Presidency has caused the stock market to take off. With money and business being concentrated here opposed to flooding into China etc has caused investors to reevaluate projections.

Another thing is that this is happening in Canada just as real estate crashes. This is something that happens every cycle and causes underwater real estate millionaires to implode because they see payments eating the opportunity passing them by.

BTW a stock picker portfolio has beaten the suits at KKR by 300 percent this year.

#95 drydock on 07.23.16 at 6:26 am

53 Franco on 07.22.16 at 9:01 pm

Every year has it’s moments and 2016 is no exception. 2016 will go down as the year of terrorists with mental health issues.

0101010101010101010101010101

Are there any other kind?

#96 Bytor the Snow Dog on 07.23.16 at 7:45 am

Well thank the Great Green Jelly Bean in the Sky that someone made Smartalox the ultimate arbiter of tolerance and opinion! Now I can sleep at night.

#97 Funny Scenario on 07.23.16 at 8:20 am

Ontario major immigrated folk has the propensity to flee in the face of disaster. This is why, liberals will wait before increasing taxes to plug the huge deficit, will wait for slow inexorable descent in housing that will keep everyone chained with hope of reviriment. Also, because of the same reason, every spike will be sold brutally. Think packing now.

#98 Freedom First on 07.23.16 at 9:07 am

#77 the Jaguar on 07.22.16 at 11:11 pm

#49 Freedom First
Thanks. Given my opinion of you I consider your f-off a high compliment. I am tempted to detail my family history in the province and the industry, but you, a world class woman hater are not worth the time. You are ‘free’ because no person desires an association with you. You are free because no woman wants to be with you. You are cut loose on the other end, not yours.
And you know it. That’s the hard part to deal with, isn’t it?

FF007

My mom loves me, she’s the only woman I’ll ever need.

#99 Nelley on 07.23.16 at 9:10 am

#81Linda-think for a second-the USA has a gigantic government and extracts a gigantic sum of taxation revenue each year-yet you feel that a tariff (tax) on imported goods from China would somehow be the apocalypse. I realize this is what is taught in the fantasy world of ECON 101-where income tax, sales tax, property tax, etc etc etc don’t even exist.

#100 crowdedelevatorfartz on 07.23.16 at 9:17 am

@#92 Jane24
“I don’t like Trump, I think he will be a disaster and will waste Canada but I do think he will win. The middle class is just so angry with the governing elite.”
********************************************

Unfortunately you may be correct.
Too many politicians and their obscenely rich supporters are underestimating the anger and visceral hatred that’s out there right now.
Hence the rise of Trump.

#101 young & foolish on 07.23.16 at 9:31 am

In the GTA, 10 years ago you could rent a decent 1 bedroom basement apartment for $500 per month … now, it’s more like $1000-$1200. But there is little inflation.

“your cash ain’t nuthin’ but trash” …

#102 mathman on 07.23.16 at 9:48 am

For everyone that is sitting on 250-700k in unrealized gains from the tailwinds behind real estate in the GTA, there are 10 people who continue to re finance their mtg every year and or take all their equity out through a line of credit to put in a pool, buy a cottage, buy status goods.

the reality is and the truth for those who want it, is the vast majority don’t have this mythical buffer if prices fall 30-40%. Once that happens, and it will, the cottage property market will be decimated in a rush to liquidity, very similar to what happened in the 90’s. There will be a fire sale on status goods and all this paper net worth will evaporate.

the wealth effect driven by RE, has created a hyper consumption culture here. People are able to leverage into aspirations, the savings rates have gone into the dumpster.

Unemployment will skyrocket once the RE bubble bursts and it will be very ugly. All jobs realated to RE have very low barriers to entry, anyone with a heartbeat can get a real estate licence or be a mtg broker.

stay liquid my friends.

#103 mathman on 07.23.16 at 9:53 am

Go to a mercedes or bmw dealership if you want the truth. we have a country pretending to be rich, and all things pretend eventually unwind.

for those prudent folks, many of whom are on this blog, once the CMHC implodes we will be asked to pony up, through a higher MTR or some other form of wealth redistribution. People thought Fannie and Freddie had a solvency problem.

#104 Zen Headspace on 07.23.16 at 9:58 am

#32 Oot of the Hoos
“Read the Ten Commandments”.
——————————————————————–
The “Ten Commandments” are a fictional human construct.

#105 Dan Duran on 07.23.16 at 9:59 am

#36 Heisenberg on 07.22.16 at 8:14 pm

Brilliant! But haven’t you heard, the millennials who brought us the concept of ‘pay what you can’ restaurants now want to have it applied to real estate. And it has to be in the city where they were ‘borned and raised’ (sic!) as per their constitutional rights.

#106 Andrewt on 07.23.16 at 10:10 am

Seeing some of the comments today brings to mind a remark I heard this week:

“Some white people have been so used to being in a position of privilege that the notion of equality feels like oppression to them”

#107 Julie K. on 07.23.16 at 10:30 am

#57 Vancouver Troy ~

So true!

We were busted a few years back at the border on our way to Bellingham because I packed a single lemon in our cooler. Had no idea I was in breach of any fruity law (and for my ignorance I take full responsibility).

I have never been a fan of the USA for myriad reasons even before the sour border bust and even before I became aware many Americans carry guns (an affront to my pacifist tendencies).

Over the years, my negative opinion of the USA has deepened to the point I made a pledge to never set foot in that country again.

One must have principles.

#108 young & foolish on 07.23.16 at 10:31 am

“Low growth, low yields, low inflation possibly over the very long term. Did I make a big mistake getting invested rather than just hanging on to my cash? ”

No, but returns may not be great. Like my Grandad says about returns … “a bird in the hand is worth 2 in the bush”. His rentals return reliable income EVERY month … irregardless of tax or valuations. Cash flow is where it’s at. The rest is speculation.

Tell pops about the 5% yield on preferreds with less tax than than rent, full liquidity and no toilets to fix. – Garth

#109 Shawn on 07.23.16 at 10:36 am

About Paper Money and Wealth Creation…

See #85 NEVER GIVE UP on 07.23.16 at 1:40 am

It’s worth reading a few times. Excellent post.

#110 DON on 07.23.16 at 10:45 am

#72 TRT on 07.22.16 at 10:43 pm

Ian:

“I don’t understand,” Ian adds. “Do people think that once prices go down, the debt magically shrinks as well?”

Thy were insulted by your comment. So they said they bill buy another house if prices go down. Meaning you don’t have one!

What’s their net worth vs yours? Make sure you know who’s word is worth more. Money talks and Bs walks.

**************************
Then again…when BS Talks and Money walks.

Which has started to happen.

#111 DON on 07.23.16 at 10:49 am

#6 Frank on 07.22.16 at 6:24 pm

Yeah every market is local and the only one I care about is Vancouver, mine.

Despite the insistence around here that the bubble here is all local (because incomes are flat and the same banks that are cautioning bubble are the ones giving out the million dollar mortgages right?) There is absolutely outside money coming in. Nothing else in the world is giving back 30% a year and investors love chasing a trend that’s half way through.

So where does this leave us? Rates that aren’t going anywhere for years and global uncertainty likely to get worse as an loud, orange mophead polls better means people will seek stability. Enter Canada with its PM who’s promised to borrow billions to keep things a float and pretty looking city whose real estate defies logic. Vancouver obviously can’t go 30% year over year for long but there’s nothing that says it needs to correct any time soon. The marker can stay irrational a long time.

******************
Your assumptions are mind boggling. Low growth, low jobs, high debt and what about those house line of credits.

#112 DON on 07.23.16 at 10:55 am

#6 Frank on 07.22.16 at 6:24 pm

Yeah every market is local and the only one I care about is Vancouver, mine.

Despite the insistence around here that the bubble here is all local (because incomes are flat and the same banks that are cautioning bubble are the ones giving out the million dollar mortgages right?) There is absolutely outside money coming in. Nothing else in the world is giving back 30% a year and investors love chasing a trend that’s half way through.

So where does this leave us? Rates that aren’t going anywhere for years and global uncertainty likely to get worse as an loud, orange mophead polls better means people will seek stability. Enter Canada with its PM who’s promised to borrow billions to keep things a float and pretty looking city whose real estate defies logic. Vancouver obviously can’t go 30% year over year for long but there’s nothing that says it needs to correct any time soon. The marker can stay irrational a long time

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

Forgot to add…The Van housing market HAS been irrational for a long time already and has little room for upward mobility in light of all the bubble talk. Sentiment can change in a moment. Cognitive dissonance seems to be working for you though. Keep up the good work.

#113 DON on 07.23.16 at 11:03 am

#9 WallOfWorry on 07.22.16 at 6:34 pm

Maybe it is only the people on this blog that focus on housing prices that really care? None of my friends are concerned one way or another and I suspect that is more the norm. No doubt people who have recently purchased could be in a world of hurt, but really, most people are paying their mortgage, have already realized massive appreciation and if prices fall back so what?

But let’s focus on the real issue: the hurt that this blog alludes to will become much more real if there is a series of interest rate hikes. As people have to renew their mortgages and interest rates are 2 or 3% higher then maybe the cost of carrying the mortgage could become much more disruptive. Based upon the most recent economic data (jobs report etc) there is absolutely no reason that the Fed shouldn’t hike, and then again in the fall or December.

If they don’t, then the continued focus of this blog on the affordability of Canadian real estate is really just nattering.
*****************

Yikes…

Just because your friends aren’t worried?? Do they know any better. How about a loss of a job, or the bank calls in the home equity line of credit or won’t lend anymore. An interest rate rise is only one factor. People are making their payments now, but as credit gets tighter and policy changes occur, job losses occur. Any remember…your neighbor having to liquidate can affect the price of your house.

#114 DON on 07.23.16 at 11:10 am

#75 TRT on 07.22.16 at 11:03 pm

For the Trump hating posters:

What happens if he wins?

And he will have a digital record of all the haters ;)

History is destined to repeat itself.
**********************

I take it – history repeating itself doesn’t apply to the housing market…

#115 DON on 07.23.16 at 11:11 am

#54 Kreditanstalt on 07.22.16 at 9:06 pm

Just MAYBE the “long period of low growth” which you lament is nigh was baked in the cake long before Brexit, Trump or angry voters.

Rampant deficit spending, money-printing, manipulation of interest rates and ever-expanding borrowing and spending did it…that’s what happens when the “money” and credit supply soars.
***********
Agreed

#116 White Crock BC on 07.23.16 at 11:24 am

Boom! on 07.22.16 at 10:40 pm

” yet one of our major parties has a stooge named Donnie.”

This may not turn out well…
============================

The US will survive. It always does.

Canada? Not so much.

#117 };-) aka Devil's Advocate on 07.23.16 at 11:25 am

#169 Barb on 07.22.16 at 7:28 pm
Driving through Kelowna Hwy 97 early this morning, the sheer number of Alberta license plates was incredible!

Bet close to outnumbering BCers!

You must be new to these parts Barb. Always been that way this time of year. Used to be that the body count in Kelowna would double in summer with vacationing Albertans. This is their playground.

The gentle rustling of a Willow tree in a warm breeze by the lake, kids playing in the background, the occasional slash, motorboats off in the distance, the smell of hot dogs on the BBQ all under a clear sky and warm glow of the sun. Rudimentary lakeside resort cabin with mom and dad’s homemade root beer in the Kelvinator. The epitome of Summer Vacations gone by.

Now it’s traffic congestion, fights at crowded boat launches, drunk rowdy crowds, Mega resorts replace the Lakeshore campground retreats. Mastercrafts outnumber air mattresses. BBQ hot dogs replaced by Cactus Club fish tacos. A walk to the corner store for a Popsicle replaced by a car trip to Costco to load up on bulk purchases. Amusement parks replaced by malls with Starbucks.

#118 DON on 07.23.16 at 11:27 am

#82 Aggregator on 07.22.16 at 11:46 pm

I’ve posted his working papers on here a few years ago. This guy know’s what he’s talking about and had an impact on my outlook for Canadian housing. Read it.

Vested interests will prevent cleanup of British Columbia’s housing mess

To understand why successive Liberal governments acted so carelessly, one has to focus on the incestuous relationship between the real estate and development industry and career politicians in this province. This connection has fuelled the real estate affordability crisis that is transforming British Columbia.

The key to understanding this bubble is the relationship between CMHC, CHBA, CREA and CBA. Trust me.
###############

To add. Some political observers have a notion that the BC Liberals/socreds/harper minions will call an early election before things get much worse. TIMBERRRR!
\

#119 Jim on 07.23.16 at 11:28 am

Globalism is a bureaucratic paper fiction created by the Elites intended to end democracy. The masses wont have that. They will chose Trump over the end of democracy.

#120 };-) aka Devil's Advocate on 07.23.16 at 11:32 am

Second real estate reality show to film in Kelowna

I can see how this kind of thing makes the real estate profession look so tawdry.

#121 Nelley on 07.23.16 at 11:47 am

The funniest thing about this absurd “white privilege/white guilt” BS being fed to the sheep is that the braindead can’t understand that the main promoters of this propaganda are BILLIONAIRES.

#122 crowdedelevatorfartz on 07.23.16 at 11:47 am

@#102 mathman
“Go to a mercedes or bmw dealership if you want the truth. we have a country pretending to be rich,”
********************************************
Yep. I’ll never forget driving by a Mercedes dealership in North van years ago and seeing the billboard sign …”Select PreOwned Automobiles for sale or lease”.
Apparently “used cars for sale” was a bit too tacky for mercedes “owners”

@#116 Devil’s Advocate
“Now it’s traffic congestion, fights at crowded boat launches, drunk rowdy crowds……”
*******************************************
All brought to you by realtors pumping “paradise”.
Reap what you’ve sown…….
:)

#123 crowdedelevatorfartz on 07.23.16 at 11:54 am

@#118 Jim
“Globalism is a bureaucratic paper fiction created by the Elites intended to end democracy. ”
******************************************

…….took several semesters of Political Science did we?

NewsFlash Jim.
Your PolySci Profs couldnt cut it in the real world so they became ……well….parasitic, cloistered, tenure monkeys that spent more time validating their “theories” in a safe comfy classroom environment than actually going out in the real world to see if their BS actually flies……….

And the last time I checked…..
Trump was one of the “Elites”

#124 Duygle on 07.23.16 at 11:54 am

Garth you should knock off the brexit bashing and read Race To The Bottom written by Princeton economist Alan Tonleson. This outcome has been predicted. Global trade has been on a downward path since long before brexit. Look at the world shipping ETF SEA. It is almost as low now as during the great financial crisis. It bottomed early this year BEFORE brexit.
The book discusses the way corporations move work to the lowest cost environment to avoid paying for costly standard of living expenses in the first world. This undermines the tax base in the first world and pretty soon our standard of life is under attack. We must accept less to compete globally. While the service sector has thrived under globalization the goods producing sectors has withered. Can we afford to produce nothing in the future?
When this happens won’t the service sector jobs flow to the goods producing economies and we will be hollowed out completely. The way I see it, is that taxes on work are to be blamed. All work related taxes (income, cpp, corporate, ei, wcb etc) should be part of the GST allowing companies to deduct them from the final GST charged on their goods and services sold to the public. This would mean that the GST would need to increase but there would be no moving your production offshore to avoid these taxes. It would act as a natural tariff but the WTO would not see it as one. If you do not have workers in Canada then no deduction for you. You want to sell your product here, you need to support our life style at the same level of taxation and societal benefits as if that product was made here. And we need a taxation system that ensures that this is happening. The current system of taxation benefits companies from other countries and undermines the workers and companies of this country. It is suicidal to enter into free trade agreements with our current tax system.

#125 crowdedelevatorfartz on 07.23.16 at 11:57 am

@#119 Devils Delusion

It didnt take a crappy “reality” film to tarnish the real estate “profession”.
Just years of lousy advice and exorbitant fees.

#126 Aboriginal paradise on 07.23.16 at 12:00 pm

“…if you are American you destroyed the perfect Aboriginal paradise…”

Actually, yes.

Natives in America were destroyed in every sense, including financially, spiritually.

What they had was certainly a paradise, compared to what happened to them after the endless flood of uninvited masses.

#127 crowdedelevatorfartz on 07.23.16 at 12:08 pm

Anyone see the 6pm Friday Global “News” report on the sliding sales stats in Van-Delusia?

You know it’s time to get out when the realty pumping media are jumping ship….and (oddly enough) there weren’t any ReMax ads on during the first 15 minutes….
Global TV……..Biting the hand that feeds it?

#128 elevetad on 07.23.16 at 12:10 pm

#122 crowdedelevatorfartz on 07.23.16 at 11:54 am

@#118 Jim
“Globalism is a bureaucratic paper fiction created by the Elites intended to end democracy. ”
******************************************

…….took several semesters of Political Science did we?

=====

Your competency is clearly grounded in the elevator experience, your tabloid-grade knowledge about political science also stinks.

#129 Godth on 07.23.16 at 12:13 pm

#103 Zen Headspace on 07.23.16 at 9:58 am

#32 Oot of the Hoos
“Read the Ten Commandments”.
——————————————————————–
The “Ten Commandments” are a fictional human construct.
————-
Along with everything else. Logic, reason, morality, law, money, progress etc. I enjoy your posts btw.
https://www.amazon.ca/Silence-Animals-Progress-Other-Modern/dp/0374534667

@ Smoking Man
Are you watching the new season of Mr. Robot?

#130 For those about to flop... on 07.23.16 at 12:20 pm

Boss,the competition is messing up.

Soon you will be the king of ice cream in Canada…

M42BC

http://vancouversun.com/news/local-news/brain-freeze-alleged-drunk-driver-crashes-ice-cream-truck-into-surrey-ditch

#131 For those about to flop... on 07.23.16 at 12:31 pm

#127 elevetad on 07.23.16 at 12:10 pm
#122 crowdedelevatorfartz on 07.23.16 at 11:54 am

@#118 Jim
“Globalism is a bureaucratic paper fiction created by the Elites intended to end democracy. ”
******************************************

…….took several semesters of Political Science did we?

=====

Your competency is clearly grounded in the elevator experience, your tabloid-grade knowledge about political science also stinks.

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

I read British tabloids everyday.

The thing I like about them is that they mix truth with outrageous predictions and a little bit of mischief and smother it in sexual innuendo.

Anyway ,enough about this blog…

M42BC

#132 BobC on 07.23.16 at 12:35 pm

#128 Godth

I don’t understand your point on the Ten Commandments.
Not relevant only because its referred to by some religions or because the ten rules it list to live by are bullshit?

#133 WUL on 07.23.16 at 12:45 pm

I am a bit encouraged by a new development in the “dialogue” between the oil sands industry and environmentalists around greenhouse gas emissions and climate change. For over a decade, I have pictured the two groups standing at either end of a football field yelling at each other serving only to further antagonize the two camps while accomplishing nothing.

Now two gifted individuals have engaged in a new form of discourse, “Radical Collaboration”.

Steve Williams is the CEO and President of Suncor Energy.

Tzeborah Berman is an anti-oil sands activist and a Professor at York University. Industry, Albertans and all media in Alberta savaged her recent appointment as a co-chair of Premier Notley’s Alberta Oil Sands Advisory Group as she has stated that the oil sands “… feel like Mordor”.

Turns out Williams and Berman have been meeting for months and now have both been branded Traitors by their respective camps.

Here is a link to a video of a 28 minute moderated discussion between them at a Business and Climate Conference in England:

http://www.businessclimatesummit.com/watch-bold-new-climate-policy-in-canadas-oil-sands-how-oil-companies-and-environmental-organizations-are-creating-new-conversations-about-decarbonization-in-a-resource-rich-economy/

In particular I was educated by Williams willing acceptance of “stranded assets” provided regulation was changed to allow high-grading and the stranding of leaner pay zones as the stranded assets as the latter zones are dirtier and emit more.

I wonder if Williams told Notley to appoint Berman.

#134 Roial1 on 07.23.16 at 12:52 pm

You know what scares me?

I read 1984.

#135 Basil Fawlty on 07.23.16 at 12:54 pm

There was an interesting article in Fridays Vancouver Sun. It discussed how Westbank Developments marketed a planned Horseshoe Bay condo development in Hong Kong, before any marketing was done in Vancouver. Local residents were not happy and Westbank is making a change to the marketing of this project.
It ends up that Westbank Developments has a sales staff of 17 in Asia, including offices in Bejing and Shanghai. One has to ask, if sales to foreign buyers in Greater Vancouver are only 5%, why would one developer have such a large Asian sales department?

#136 DON on 07.23.16 at 1:05 pm

#122 crowdedelevatorfartz on 07.23.16 at 11:54 am

@#118 Jim
“Globalism is a bureaucratic paper fiction created by the Elites intended to end democracy. ”
******************************************

…….took several semesters of Political Science did we?

NewsFlash Jim.
Your PolySci Profs couldnt cut it in the real world so they became ……well….parasitic, cloistered, tenure monkeys that spent more time validating their “theories” in a safe comfy classroom environment than actually going out in the real world to see if their BS actually flies……….

And the last time I checked…..
Trump was one of the “Elites

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

My take:

Going to school gave me – Information on certain subjects and a pat on the back. Experience facilitates Knowledge.

As for the Profs, some good, some bad. One or two have worked in the real world.

As for Globalization – did anyone ever thing about applying balance to the issue of globalization vs localization.

#137 Godth on 07.23.16 at 1:35 pm

#131 BobC on 07.23.16 at 12:35 pm

Maybe read the top review to the book I linked, or the book itself.

Zen will catch my drift…I think.

#138 Aggregator on 07.23.16 at 1:53 pm

#117 DON – Some political observers have a notion that the BC Liberals/socreds/harper minions will call an early election before things get much worse.

The case McCarthy makes is that the people who are demanding more action are calling upon the very same people who contributed to this problem. When there's a revolving door consultation between government, RE boards and developers to draft new regulations and affordability plans, what do you think the outcome will be? The same as always. 

I find it interesting how people are demanding more data on foreign ownership before asking for detailed data on our domestic market. How many Canadians own multiple properties? How many are non-occupied? How many are secured by lines or credit? What is the actual current LTV distribution of mortgages in Canada? How exactly does CMHC's Emili approve and insure buyers without verifying income or property values with MLS data? Does it not seem logical to have this data before blaming or enacting laws on foreign transactions?

The notion is that because home prices aren't justified by incomes, it must be foreigners driving up prices. In the US there were average-income individuals buying multiple properties in excess of millions of dollars. What difference is it if an average household has a $1.5M mortgage or three mortgages valued at $500k? It's the same leverage, however, the former looks like an affordability issue while the latter appears to be subprime lending. Without data on domestic lending and RE transactions, we will never know the causes or at least what's contributing to rising prices.

Whether foreigners are 5-15-25% of our market doesn't matter. Foreign inflows have always existed. What matters is how relative these inflows are historically. In the mid 1970s Americans and Arabs were fleeing into Canadian RE and securities. At that time the provinces enacted (or some considered) laws limiting foreign purchases of land and property. Ontario imposed a 20% tax on foreign RE purchases. Guess what happened? Nothing. Foreigners kept buying and prices still rose exponentially.

Careful what you wish for

The real estate market is a complex system that involves numerous market participants from domestic and foreign institutions. Thinking you can solve an affordability problem by imposing regs on foreigners before comprehending what is taking place domestically is a risky move that may end up having the opposite outcome.

#139 cecilhenry on 07.23.16 at 1:55 pm

How is Britain doing economically, a month after the Brexit vote? Just fine.

A month after the Brexit vote, seems the U.K. is managing just fine, contra all the naysayers:

http://www.spectator.co.uk/2016/07/that-brexit-apocalypse-it-just-isnt-happening/

Far from shunning us, the likes of Germany and even France are playing nice. Countries as diverse as Australia and South Korea, Mexico and India have made very positive noises about trade deals with the UK. Having put us ‘at the back of the queue’ before we voted, the Obama administration now wants to ‘maximise the economic opportunity’ and strike a deal with Britain ‘as fast as possible’.

The oft-predicted job losses? During the three weeks from 23 June, job listings were up 150,000 compared to the same period last year according to Reed Group, a recruitment consultant. ‘That’s an 8 per cent rise,’ says James Reed, its chairman. ‘The vote hasn’t affected things — people are still hiring.’

#140 this is tomorrow calling on 07.23.16 at 2:00 pm

‘reset’
=lob off a zero or zeros
those with hard asserts including houses continue to enjoy, trade and profit from them.
the renter crowd waiting for ‘correction’
suffer

ask someone who has lived through a currency devaluation

#141 AB Boxster on 07.23.16 at 2:05 pm


“Some white people have been so used to being in a position of privilege that the notion of equality feels like oppression to them”

—————————–

Yes, us whities just love to revel in our white privilege your don’t we?

Let me guess, it’s not opinion cuz you even have some white friends as well!

#142 };-) aka Devil's Advocate on 07.23.16 at 2:08 pm

The one who calls himself “crowdedelevatorfartz” is in fine form today.

What kind of Freudian case study is behind someone who picks a handle like “crowdedelevatorfartz” anyway?

Hey ‘Fartz here’s one for you… ‘poo‘. Giggling with glee over the appearance of that word aren’t you?

On your bashing Jim @#118, I suggest you finish kindergarten before ridiculing grownups?

#143 TurnerNation on 07.23.16 at 2:17 pm

Latest hotspot on King St. West.
(Where there’s a 100% change of vomit raining down each weekend.)

Tag this one #D-bags galore lol:

http://www.postcity.com/Eat-Shop-Do/Eat/July-2016/First-Look-in-360-Degress-Lavelle-is-the-new-rooftop-oasis-on-King-Street

Still, #rentallifestyle

#144 Former Fool on 07.23.16 at 2:19 pm

Just surfing realtor.ca today, check out this place.

https://www.realtor.ca/Residential/Single-Family/17086295/4008-COMANCHE-RD-NW-Collingwood-Calgary-Alberta-T2L0N8-Collingwood

Listed for 1.2M, property tax assessment for 1.47M. 18% correction based on those numbers, if you believe the property tax assessment.

#145 Blacksheep on 07.23.16 at 2:24 pm

NEVER # 85,

“It should not matter to us how many zeros you add to the 1 on the paper note as long as you believe in it.

There could be a time in the future when people say that the paper is not worth anything and then you have a problem.

My point is perhaps the central banks think they can keep inflating our currency forever because we as plebeians have always accepted our currency without backing and without checking on how much is being printed / loaned into existence.

Even if our currency collapsed we would all eagerly accept a new currency changing the old $10,000.00 bills into the new one dollar bill because we know we don’t want to trade a load of bricks for loaves of bread.”
—————————————————-
Unrestrained inflation is theft from the masses. Period.

This is the trouble with a sovereign currency being backed by nothing tangible, only the power to tax, forcing demand. Fortunately $ creation is quite constrained with all sovereigns other than the US, due its ability to distribute said inflation, globally.

The fact the Cattle are too occupied with bread and circuses type distractions to pay attention to what the f-ck is really occurring, doesn’t make it acceptable.

Why is this happening?

Political Scientists issued bank charters to Monetary Scientists in England in the early 1700’s giving them control of the currency and the basic layout for the modern Central bank was born. This incestuous relationship between politicos and central bankers persists to this day.

For the record:

I believe your local charter bank /credit union, are good for modern society. Money creation / elimination by the citizenry for personal or business purposes keeps the velocity of $ churning and allows the economy to function. This, is nothing more than the modern equivalent of a gov. approved, personal IOU’s.

With out it our quality of life would be much lower.

#146 hope & ruin on 07.23.16 at 2:31 pm

Do banks even give second mortgages to people who are underwater on one house?

#147 BobC on 07.23.16 at 2:39 pm

#136 Godth

I read it 3 times. Still can’t get a grasp. Ill back away from this conversation and shut up. I know when I’m out gunned!
Really, if I bought the book I would need a tutor.

#148 Jim on 07.23.16 at 2:46 pm

crowdedelevatorfartz – My background is in Applied Physics. Political Science courses are for people who couldn’t get into a real Program, as such I would never take one. And last I checked the Elites still hate Trump. We see the evidence everyday in the bought and paid for media.

#149 Jim on 07.23.16 at 2:53 pm

Wikileaks release of 20,000 emails revealing the DNC/Clintons hack-job on ‘The Bern’ should cement victory for Trump and his more straight up manner.

#150 Jim on 07.23.16 at 3:06 pm

Globalization != Global Trade

Global Trade will always happen.

Globalization is a buzz work for Elite’s attempt to use legal fiction to override the Rule of Law.

#151 Shawn on 07.23.16 at 3:17 pm

Give Thanks to Our Economic System

It seems appropriate to pause once in a while and marvel at how the various business and (yes) government come together in a system that delivers such bounty to the people.

Do you ever marvel at the fact that the people in a huge City like Toronto even manage to be fed each day, and that it happens without central planning? And that it takes so little effort from a typical person to make enough money to feed themselves that they have ample free time for blogs and Pokey Man Go and a thousand other entertaining pursuits.

I am thankful this system exists and that I get to own shares in profitable companies that make our lives better.

#152 Shawn on 07.23.16 at 3:20 pm

Hillary’s V.P. nominee…

Rocks… just listen to his speech today

Thank goodness, perhaps the Trump train to disaster can be stopped.

#153 Crowdedelevatorfartz on 07.23.16 at 3:20 pm

@#141 Devils Advocate
“The one who calls himself “crowdedelevatorfartz” is in fine form today.”
*******************************************
Yes, yes I am.
As for the nom de plume (or “fume” as it were).
Ignoring, for the moment, the Freudian fecal infatuation elements of my ID or like you, my superego, ego ,whatever you wish to call it….
I chose a name no one, in their right mind, would want.
Kind of like yours…… only more original…..

:)-

#154 Tony on 07.23.16 at 3:31 pm

It looks like almost all of Canada is in a real estate decline. When the yuan keeps falling the Chinese become poorer in foreign currencies. The smart money has already left China. The GTA will be the last area in Canada to drop. Like I said years ago Mississagua and Brampton will get poleaxed easily falling more than 50 percent. Like I said on this blog years ago we have worldwide tariffs to look forward to in all the major cities in the years to come.

#155 Zen Headspace on 07.23.16 at 3:36 pm

#128 & #136 Godth
Thank you for the book recomendation.
It’ll get me away from Alan Watts for a while!
Lately, all I read is Alan Watts and Garth Turner.
Both authors have made me see reality beyond the illusion.
Garth is Buddha!

#156 Zen Headspace on 07.23.16 at 3:53 pm

#131 BobC
“I don’t understand your point on the Ten Commandments”.
—————————————————————-
Very few people have the ability to think for themselves. At a very early age, they become hopless victims of indoctrination, whether it be by their parents, community, culture, the media, peer group, educational system, etc. They are essentially brainwashed at an early age, and the imprint is virtually impossible to erase. Hence, the mass appeal and popularity of “religion”, as a case in point. Reference to the “Ten Commandments” as if it were some actual tangible reality is laughable. It is a fictional subplot within a fictional work of literature (commonly referred to as “The Bible”, written by men (and women) to reflect a belief if history that is largely based on mythology and conjecture. To hold up “The Ten Commandments” as if it were some indisputable natural law ( like the existence of gravity on earth, for example), is indicative of the vapid simplicity of most people out there. Not Smoking Man though.

#157 Barb on 07.23.16 at 3:59 pm

This from my city government’s report: “We continue to seek the best possible return on investments. Low rates of return from MFA are being offset with GICs from chartered banks that have a higher rate of return. (The city) also recognizes the actuarial adjustment of long term debt which is reflected in the return on investments”

Bureaucratic doublespeak.
“offset with GIC’s”?
Sounds like our taxes will be going up ‘coz their investments aren’t paying diddly squat.

#158 The end is nigh on 07.23.16 at 4:03 pm

I received a notice from Royal Mutual Funds Inc the other day and it states changes to my account agreement “RMFI may refuse to execute and instructions with respect to your account, including without limitation, all or part of any order to buy, switch or redeem units, whenever we deem it necessary for our protection of for any other purpose without any obligation to provide you with notice of any such refusal.” the redeem word was one of the bolded words, so I take it like the REIT funds in the Brexit refusing to redeem that would drive prices lower the RMFI is also prepping to allow refusal of panic redemption on a large scale. Something is around the corner…

#159 Godth on 07.23.16 at 4:03 pm

#146 BobC on 07.23.16 at 2:39 pm
We’re making it up as we go along Bob. The lawyers and bankers in particular, among others, call it power. It’s all fiction.

https://www.goodreads.com/work/quotes/1771312-the-doors-of-perception-heaven-and-hell
“To make biological survival possible, Mind at Large has to be funnelled through the reducing valve of the brain and nervous system. What comes out at the other end is a measly trickle of the kind of consciousness which will help us to stay alive on the surface of this particular planet…etc

#160 crowdedelevatorfartz on 07.23.16 at 4:03 pm

@#127 elevatad
‘Your competency is clearly grounded in the elevator experience, your tabloid-grade knowledge about political science also stinks.”
*****************************************

careful….your PHD is showing.

I’d take scurrilous British style tabloid gossip over politically correct, regurgitated, political science theory any day of the week….and the added benefits….?
Page 3 girls and no ruinous “education” debt…….
Perhaps you should have focused your PHD thesis on something more practical like…say….Moorish basket weaving in the 12th century?

#161 Shawn on 07.23.16 at 4:28 pm

Agreement on Banking

Blacksheep said, just above:

For the record:

I believe your local charter bank /credit union, are good for modern society. Money creation / elimination by the citizenry for personal or business purposes keeps the velocity of $ churning and allows the economy to function. This, is nothing more than the modern equivalent of a gov. approved, personal IOU’s.

With out it our quality of life would be much lower.

***************************************
We are in violent agreement on that.

Do you believe the America and Canadian dollars ae actually being very much debased by central banks or others at this time? Is inflation about 2%?

Does the equivalency to government approved personal IOU’s mean that the banks act as intermediaries in some fashion between those with assets or goods and services and those that wish to purchase assets and goods and services on credit?

If there was an exuberance of lending by people writing personal IOUs (or the modern equivalent) could that lead to inflation and a debasement in the value of a dollar in terms of purchasing power?

#162 ben on 07.23.16 at 4:31 pm

Jean-Pierre

“New supply climbed among a broad majority of all local markets, led by Greater Toronto, Oakville-Milton, Montreal, Quebec City, and B.C.’s Fraser Valley”

http://creastats.crea.ca/natl/index.htm

More houses are being listed than sold.

#163 Andrew t on 07.23.16 at 4:39 pm

#140 AB Boxster on 07.23.16 at 2:05 pm

“Some white people have been so used to being in a position of privilege that the notion of equality feels like oppression to them”
—————————–

Yes, us whities just love to revel in our white privilege your don’t we?

Let me guess, it’s not opinion cuz you even have some white friends as well!

I’m white, you idiot.

#164 Pale Ale on 07.23.16 at 4:42 pm

#43 Jean-Pierre

Actually Montreal has been flat for almost 4 years.

http://www.housepriceindex.ca/

#165 Godth on 07.23.16 at 4:43 pm

#154 Zen Headspace on 07.23.16 at 3:36 pm

i really like Alan too.

“Garth is Buddha!”
If you say so.

#166 Andrew Woburn on 07.23.16 at 4:59 pm

Just to confuse you, every once in a while, sanity breaks out.

“These Black Lives Matters protesters planned a march. The police threw them a cookout instead.”

https://www.washingtonpost.com/news/inspired-life/wp/2016/07/21/these-black-lives-matters-protesters-planned-a-march-the-police-threw-them-a-cookout-instead/?wpisrc=nl_most-draw8&wpmm=1

#167 Setting the Record Straight on 07.23.16 at 5:00 pm

Trump enrages the War Party

https://www.lewrockwell.com/2016/07/justin-raimondo/trump-enrages-war-party/

#168 45north on 07.23.16 at 5:01 pm

Boom: I have no desire for Trump. He inherited his wealth, he didn’t make it.

Tony Schwartz: If he had to be briefed on a crisis in the Situation Room, it’s impossible to imagine him paying attention over a long period of time

http://www.newyorker.com/magazine/2016/07/25/donald-trumps-ghostwriter-tells-all

Trump is a defeat for the Republican Party.

I couldn’t vote for Hillary either. Fortunately I’m not allowed to vote.

God bless America

#169 crowdedelevatorfartz on 07.23.16 at 5:07 pm

@#147 Jim
“My background is in Applied Physics”
********************************************
A rocket scientist ! EXCELLENT!
Maybe you can answer this question thats ALWAYS bugged me since I was too short to push the elevator buttons………
Can Pigs with wings fly?
’cause thats about how much chance Donald Trump has at living in La Maison Blanc

#170 45north on 07.23.16 at 5:37 pm

Aggregator: from your link: As for the Premier and the provincial government, who cited the report as they announced an end to self-regulation within the real estate industry, they naively did not foresee the mounting cynicism and anger that has propelled real estate and housing affordability forward as the key issue in next May’s election. Instead, they continue to depend on the advice and selective statistics from the very industry and condominium salespeople who have fuelled this crisis.

Christy Clark and the Liberal Party have tied their fortunes with real estate. They have risen and will fall with it.

Linda: I think people are trying to end globalism, in the naive belief things will go back to the way they were.

as if they could go back to the 1950’s. Truckers for Trump raises the image of tough independent men who drive for a living.
https://www.facebook.com/Truckers4Trump/

As I said, GPS has put them on a short leash. That’s not going away.

#171 Andrew Woburn on 07.23.16 at 5:38 pm

“There’s very little good news on the horizon for those looking for rental accommodation in Victoria, according to market experts. ….

The vacancy rate, by all accounts, remains about 0.6 per cent — a figure offered by Canada Mortgage and Housing Corporation last fall. That rate is expected to improve slightly to 0.8 per cent by the end of this year, but will hit only about one per cent in 2017 as some rental units hit the marketplace. …

Cloak said the market is growing with first-time homebuyers, frustrated by rising prices and a lack of inventory, having to stay in their rental units longer than expected. There is a growing population of younger people moving to Victoria to work in the high-tech sector, seniors are still downsizing and moving to rental in the region and there are three major post-secondary institutions requiring housing. ”

http://www.timescolonist.com/business/little-relief-in-sight-for-renters-in-capital-region-1.2307942#sthash.AJGMFiry.dpuf

#172 Nemesis on 07.23.16 at 5:41 pm

“Political Science courses are for people who couldn’t get into a real Program.” – Jim

#RandyNewmanDisagrees…

https://youtu.be/Du3WhHrrNgs

#173 The Jews on 07.23.16 at 5:42 pm

#155 Zen Headspace on 07.23.16 at 3:53 pm

#131 BobC
“I don’t understand your point on the Ten Commandments”.
—————————————————————-
Very few people have the ability to think for themselves. At a very early age, they become hopless victims of indoctrination, whether it be by their parents, community, culture, the media, peer group, educational system, etc. They are essentially brainwashed at an early age, and the imprint is virtually impossible to erase. Hence, the mass appeal and popularity of “religion”, as a case in point. Reference to the “Ten Commandments” as if it were some actual tangible reality is laughable. It is a fictional subplot within a fictional work of literature (commonly referred to as “The Bible”, written by men (and women) to reflect a belief if history that is largely based on mythology and conjecture. To hold up “The Ten Commandments” as if it were some indisputable natural law ( like the existence of gravity on earth, for example), is indicative of the vapid simplicity of most people out there. Not Smoking Man though.

– – –

Although the topic could offer endless debate, I provide for you one piece of evidence, the Jews. I am not one, I don’t know very many, but their history is certainly not one of fiction. Your argument could only be valid if you could get rid of the exacting details of Jewish history, which you can’t. If you would spend a bit of time studying their past and current existence, it would be impossible to say that they are some form of mythology and conjecture simply because you disagree with the Old Testament.

#174 hope & ruin on 07.23.16 at 6:15 pm

@ BobC

You aren’t outgunned, godth just likes to ramble nonsensically.

#175 Barb on 07.23.16 at 6:34 pm

Rafe Mair on what Canada should–but won’t–learn from Brexit:

http://commonsensecanadian.ca/rafe-lessons-canada-wont-learn-brexit/

#176 Damifino on 07.23.16 at 6:38 pm

We Canadiians just had an election lacking in worthwhile leadership choices. Now it’s America’s turn.

#177 WUL on 07.23.16 at 6:50 pm

While sitting on a dock on Lake Okanagan back in May, I made the most unbelievable utterances that a lifelong leftie has ever made, anywhere. I told relatives that I would pick Trump over Clinton.

I agree completely with Conrad Black.

http://news.nationalpost.com/full-comment/the-genius-of-trump

We’ll see but I opine that the U.S. will be fine. It survived Taft, Carter, Reagan, and Dubya just like the Great White North survived Bennett, King and Campbell and will survive JT.

Relax folks.

#178 crowdedelevatorfartz on 07.23.16 at 7:29 pm

Irony.

When Crowdedelevatorfartz becomes an arrogant, opinioned, braggart spewing lies and thinly veiled threats……..you hate him.

But when Donald Trump does it ….you want to elect him President!?!?!?!?

Its his hair weave isnt it.
My gray coiffure just doesnt have the same pizzazz as a combover/toupee that may blow off (a la Rene Levesque) at any moment….

Now I get it…morbid curiosity makes you want to see the “photo” of the presidential chopper on the White House lawn blow that sucka right off his mortified, massive gourd ………
God luv ya people.
Now I understand in a delusional, Smoking Man sorta way.

#179 Jim on 07.23.16 at 7:36 pm

Ten Commandments are the foundation of our Common Law, the Supreme Law of the Land. Something the Elites want to abolish so they can buy legislation to rule over us with.

#180 Setting the Record Straight on 07.23.16 at 7:42 pm

@106 Julie K

“the years, my negative opinion of the USA has deepened to the point I made a pledge to never set foot in that country again.

One must have principles.”

Now if you would only take the same pledge for Canada.

#181 Gen X Confessions on 07.23.16 at 7:45 pm

#44 Bottoms_Up on 07.21.16 at 8:25 pm
#4 Gen X Confessions on 07.21.16 at 6:20 pm
———————————
The child benefit is means tested on gross income, so RRSPs cannot be used to get an increase.

———————————————————-

This website ( http://www.budget.gc.ca/2016/tool-outil/ccb-ace-en.html) says it uses adjusted family net income. I’m no accountant, but I took that to mean RRSP deductions would have an impact. I’m curious if you are anyone has seen an actual formula printed somewhere?

#182 hope & ruin on 07.23.16 at 7:59 pm

@ WUL

Good article on Trump, the establishment is beginning to look old and stale. Not just Hilary either.

Black predicts a new era of american politics, where people reach across the aisle to get done. I agree that Trump’s more outrageous views are just a schtick. But how can i trust that? I guess he is no different than all the other politicians lieing through their teeth then pursuing a separate agenda.

#183 Jim on 07.23.16 at 8:14 pm

The thing I dont like about The 10 Commandments is when The State finally made reading the Bible legal, in the version they provided to the masses they had replaced the sin of Usury with Adultery and all but done away with Jubilee as well. Jesus would not be impressed.

#184 Setting the Record Straight on 07.23.16 at 8:19 pm

@106 Julie K

I trust you refuse to follow advice to put a portion of your portfolio into US equities/ETFS.

And presumably Canadian companies that do business with the US should be shunned as well.

Ethical investing? After all you need to live by your principles.

#185 Barb on 07.23.16 at 8:20 pm

If the Trump-supporters still think he’s a good Presidential candidate after reading his replies to questions from the Washington Post editorial board, God help us:

https://www.washingtonpost.com/blogs/post-partisan/wp/2016/03/21/a-transcript-of-donald-trumps-meeting-with-the-washington-post-editorial-board/?tid=a_inl

The man can’t even complete his thought process.

#186 AB Boxster on 07.23.16 at 8:31 pm

#162 Andrew t on 07.23.16 at 4:39 pm

I’m white you idiot

———————
Careful. Your privilege is showing.

#187 jess on 07.23.16 at 9:08 pm

dead people as officers of the companies !hundreds of bucks to get your picture off the site even if you are innocent !
Watch Mugged, The Naked Truth’s hourlong investigative documentary on the shady mugshot industry and how it victimizes innocent Americans.

Mugged: Inside the shady industry that profits on mugshot photos
By Fusion Investigative Unit | March 5, 2016
http://fusion.net/video/277333/mugged-fusion-mugshot-websites-the-naked-truth/

#188 jess on 07.23.16 at 9:12 pm

is it really the genius of trump or his manager …the Panama Papers investigation.
Fusion is one of two English-language U.S. media partners to participate in that investigation.
https://www.theguardian.com/us-news/2016/apr/27/paul-manafort-donald-trump-campaign-past-clients

====================

David Duke, a former Grand Wizard in the Ku Klux Klan and one of America’s most infamous white supremacists, announced on Friday that he was running for Senate in Louisiana.

#189 Linda on 07.23.16 at 9:41 pm

#98 Nellie: I don’t think a tariff on trade goods would be the apocalypse at all. What I think is that the reason there is all this talk about adding or resuming tariffs, tearing up trade agreements, exiting economic unions etc. is that people may believe that these actions will erase the current economic reality for something that will be better than what they have now. Certainly some political candidates are banking on people believing it, since they are promising to do all that & more to ‘fix’ things IF the people just vote for them.

#190 100 watt epiphany on 07.23.16 at 9:58 pm

history buffs may recall that Harper was front man for a war on the incandescent light bulb, yep

The Lightbulb Conspiracy (Full Length – English Subtitles).mp4

https://www.youtube.com/watch?v=-1j0XDGIsUg&feature=youtu.be

#191 Nelley on 07.23.16 at 10:16 pm

177Crowd-For all the complaints that Donald Trump isn’t pretty enough to be President you would think Crooked Hillary turned down her chance to be a Victoria Secret model. Also, both Bush Jr and Obozo bear a striking resemblance to Alfred E Newman (cover boy of MAD).

#192 Zen Headspace on 07.23.16 at 10:58 pm

#172 The Jews
…”simply because you disagree with the Old Testament”.
—————————————————————-
It’s not a matter of disagreement. The Old Testament is written by humans as a quasi-recolected historical account of supposed events. Heavily embelished with symbolism. If you actualy believe a dude went up a mountain to talk to “God” and came back with tablets inscribed with the “Ten Commandments”, you have serious psychological problems. You cannot “disagree” with fiction.

#193 45north on 07.23.16 at 11:03 pm

Julie K: We were busted a few years back at the border on our way to Bellingham because I packed a single lemon in our cooler.

busted? sorry Ma’am you can’t bring that into the US.

#194 Jim on 07.23.16 at 11:32 pm

Barb – Washington Post was purchased by Jeff Bezos, a hard core Democrat who hates Trump. Its like MSNBC now.

#195 For those about to flop... on 07.24.16 at 12:01 am

#191 Zen Headspace on 07.23.16 at 10:58 pm
#172 The Jews
…”simply because you disagree with the Old Testament”.
—————————————————————-
It’s not a matter of disagreement. The Old Testament is written by humans as a quasi-recolected historical account of supposed events. Heavily embelished with symbolism. If you actualy believe a dude went up a mountain to talk to “God” and came back with tablets inscribed with the “Ten Commandments”, you have serious psychological problems. You cannot “disagree” with fiction.

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

A while back myself and a few buddies were backpacking in Egypt and we got up around 2am to hike up Mt Sinai to watch the sunrise.

It was worth the effort, but my only complaint is I too did not receive a laptop or a tablet for my efforts…

M42BC

#196 Brazil ex-pat on 07.24.16 at 12:47 am

#182 Jim on 07.23.16 at 8:14 pm
The thing I dont like about The 10 Commandments is when The State finally made reading the Bible legal, in the version they provided to the masses they had replaced the sin of Usury with Adultery and all but done away with Jubilee as well. Jesus would not be impressed.

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

Can’t tax people into the stone age with the sin of usury. But don’t worry…..the amount of bible thumpers is dropping like a stone. Normal people are realizing very quickly that religion is a total farce.

#197 net buyer on 07.24.16 at 12:53 am

Garth,
We are not heavy on debt… and we own property.
We are relatively young, 40 years old, bought many years go in our early 30’s.

I am okay if housing crashes, because we will be net buyers over our lifetime. I can’t upgrade to a nicer pad if housing keeps going up.

I’m sure this is true for many people.
Therefore, hoping for a market crash even if you own, is not necessarily stupid.

If you own a balanced portfolio and are overweight in cash, having the markets tank is a buying opportunity for those who are going to be net buyers.

#198 Nelley on 07.24.16 at 9:46 am

#193Jim-Yes-Bezos got the rag for 5 million-basically peanuts to the guy-New York Times is owned by Carlos Slim (Mexican multibillionaire)-these are no longer viable business models, simply propaganda vehicles for the megarich.

#199 crowdedelevatorfartz on 07.24.16 at 9:48 am

@#195 Brazil Expat
“…..the amount of bible thumpers is dropping like a stone. Normal people are realizing very quickly that religion is a total farce.”
*******************************************
Apparently you havent been to the States in the past 5 years or watched any live televison interviews from the US either.
Catch a touchdown. Praise Jesus.
Win a baseball game. Praise Jesus.
Sink a 5 foot putt. Praise Jesus.
Win an election. Praise Jesus.
Find a lost puppy. Praise Jesus.
Get hired for a new job. Jesus loves me.
Survive a car accident. God was watching over me.

Statistically the US is THE most religious 1st world nation on the planet and , ironically, the only other countries (1st world or otherwise) with similar stats are…….muslim countries….

89% of people polled in the US believe in God….down from 92 % a few years ago.

http://www.google.ca/url?url=http://www.pewresearch.org/fact-tank/2015/11/04/americans-faith-in-god-may-be-eroding/&rct=j&frm=1&q=&esrc=s&sa=U&ved=0ahUKEwiIm9DOnYzOAhVD3WMKHRyACPUQFggZMAA&usg=AFQjCNH_gDErooWUetAmDCx5xhWFcjeVSg

#200 economictsunami on 07.24.16 at 9:58 am

Interesting Sunday summer read:

Munich, Baton Rouge, Nice, Brexit, Trump: It’s all connected

“A “period of instability” is upon us, historian Margaret MacMillan told me this week, one that has parallels to the pre-war periods of the 20th century that she’s written acclaimed books about.”

http://www.theglobeandmail.com/news/world/munich-nice-turkey-brexit-trump-its-all-connected/article31084101/

We’ve been putting band aids on gunshot wounds so long, we’ve lost track.

The status quo is no longer an option…

#201 broader mind on 07.24.16 at 10:18 am

Canadian home ownership is a mythical pursuit.This blog states home ownership in the 70% range….. If the majority of these homes have a mortgage then it is only shared ownership with a bank or trust company.I’m guessing unencumbered ownership is in the 10 % range.Once you reach mortgage freedom you still pay a healthy property tax .The house will always own you.

#202 Scott on 07.24.16 at 10:22 am

Julie K. How sickenly petty to disregard the greatest nation in the history of the planet because of a lemon.

#203 Smoking Man on 07.24.16 at 10:40 am

DMCLeaked emails… Final nail in Hilarys political casket.

Sanders supporters will go ape shit crazy at the Convention.

Prepare and Bet on President Trump.

#204 MF on 07.24.16 at 10:47 am

#196 net buyer on 07.24.16 at 12:53 am

Why is there so much debt/leverage then?

When a market collapses there is an accompanying job loss. Job loss + billion dollar mortgage = disaster. See US 2008 for ramifications. And It is NOT better here compared to them in 2006/7 but worse.

Email leak about Bernie Sanders and the Democratic party is an interesting story. Apparently they tried to undermine him by mentioning his faith, hoping it would deter southern voters. The “tolerant” left on full display. Once again, it’s clear who hides among the left.

MF

#205 For those about to flop... on 07.24.16 at 11:12 am

I thought someone might be interested in this renting vs owning in the U.S

M42BC

http://www.msn.com/en-us/money/realestate/the-cost-of-renting-vs-owning-a-home-in-every-state/ss-BBurP5g?li=BBnbfcP

#206 For those about to flop... on 07.24.16 at 11:14 am

I dunno why people are giving Julie K. a hard time for trying to escort Donald Trump back across the border…

M42BC

#207 Nelley on 07.24.16 at 11:17 am

Most interesting thing about the Wikileaks expose of the DNC is the overt coperation/involvement of almost the entire MSM (NBC,CBS,CNN,etc etc) in the conspiracy to defeat Bernie Sanders-the corruption is now so blatant that nobody blinks an eye.

#208 Ohh my on 07.24.16 at 11:23 am

Move along…..nothing to see here !!!!

Mysterious wheeler-dealer at centre of a web of B.C. real estate deals | The Province
http://theprovince.com/business/real-estate/mysterious-wheeler-dealer-is-at-centre-of-a-web-of-b-c-real-estate-deals

#209 My US family on 07.24.16 at 11:30 am

I know you don’t understand. We’re all different.
Right or wrong, left or right does it matter? It’s been 7 1/2 years since I heard a crowd chant USA USA!
I have to admit it sounded good.
I’m tired of being ashamed and apologizing for being an American. I’m tired of being ashamed and being told I should apologize for being born white. I’m tired of being ashamed of being straight and I’m tired of being embarrassed of our President.
Right or wrong, I want to be proud of America again and I want my kids and grandkids to be proud to be an American.
Screw the money.
____________________________________________

As it’s been said already, this is well put and helps me to understand the angst in the US. My comment is only that the inauguration of someone that is the polar opposite from what you’ve had for 8 years doesn’t mean it will all be better again. When polls seem to only go up after Trump makes proven inaccurate statements, misogynistic, racist and slandering comments, it doesn’t show the world that America is great again. It shows that the 19th century wasn’t that long ago.

Do you want to be proud to be American again? Then vote for someone that you can be proud of. Someone that actually understands and lives for the best in American values.

Sometimes the enemy of my enemy is another enemy.

#210 Damifino on 07.24.16 at 11:33 am

#190 Nelley

“…both Bush Jr and Obozo bear a striking resemblance to Alfred E Newman (cover boy of MAD).”
—————————

The artists at Mad Magazine are geniuses at making Alfred E Neuman look like anyone (or vice versa). But I will admit that in Obama’s case they had a head start with the ears.

Re: “not pretty enough”: Cassius Clay used that tactic on Sonny Liston over 50 years ago. It seemed to work well. Not much is new under the sun.

#211 Adam Smith on 07.24.16 at 11:42 am

Many of the comments here are getting hilariously incoherent.

@#196

Are you actually accusing the left of being the ones to derail and attack Sanders? I don’t think you understand the left/right divide if you think the leaders of the Democratic Party are the left when compared to Sanders and his supporters. The Dem leadership haven’t been leftist on anything except guns, gays and abortion since Bill Clinton’s “triangulation strategy.”

Anyway Garth, free trade between relatively equal countries makes sense since it is impossible to produce basically anything as cheaply as a country with no environmental/worker protections that pay basically nothing. At least not without destroying your own standard of living. When it comes to Malaysia, their electronics industry employs actual slave labour. Hard to produce cheaper than that.

Trump hasn’t been ranting against trade with Canada, the Aussies or the EU, he’s ranting against trade with countries that cause races to the bottom. Well, and also Japan because of their currency devaluation strategy.

The fact is that the world needs some well-paying jobs SOMEWHERE in order to maintain global consumer demand, something dangerously lacking these days. When a job gets moved somewhere where it costs 1/5th to employ someone, that 4/5th is pocketed by shareholders. Lots of people and pensions may be shareholders to some degree but overall the majority of stock ownership is actually quite concentrated in relatively few hands with 85 people owning as much as 50% of the world population.

Concentrated wealth doesn’t spur consumer demand like well spread wealth does, instead it searches for areas to invest which don’t exist because of a lack of demand. So instead it speculates and creates bubbles. Sound familiar?

Capitalism needs people to be able to buy stuff and the developed world is pickled in debt to the point we need to keep interest rates at nothing to hopefully stimulate some borrowing which is only being used to speculate since investing in productive capacity doesn’t make sense. Just look at the businesses sitting on trillions they can’t invest profitably.

This race to the bottom will destroy world consumer demand and destroy capitalism since the pool of near-free labour is practically infinite. Will Trump fix this? Unfortunately probably not but he seems to have at least noticed the problem.

#212 Metaxa on 07.24.16 at 11:54 am

#203 MF wrote this regarding the machinations of the Democrat Party in the US:

The “tolerant” left on full display. Once again, it’s clear who hides among the left.

If you think the Democrats are left of anything you are sadly mistaken.
Now, Bernie, the man you would seem to be defending by your ham fisted attempt to smear…he is to the left politically.

The “educated” Canadian right on full display. Once again its clear who hide among the right.

#213 Nelley on 07.24.16 at 11:59 am

#208MyUS-you don’t believe that Crooked Hillary represents the “best in American values”-the last polling shows that 67% of voters feel Hillary is untrustworthy and dishonest and a staggering 33% of likely Clinton voters agree with this depressing outlook.

#214 crowdedelevatorfartz on 07.24.16 at 12:06 pm

@#207 Ohh My
That article is quite the eye opener, but, deep down, I think a lot of people living through the last few years of ridiculous housing prices arent that surprised.

And, apparently , even the police think its just the tip of the iceberg. CRA, RCMP, Fintrac……all asleep at the wheel?

“The belief that there are hundreds of real estate investors in Vancouver who are under suspicion in China is shared by Canadian law enforcement sources.

“Sometimes we ask ourselves if we’ve already lost the battle,” one such source said. “I think this guy is just part of a large network.”

#215 Moron Face on 07.24.16 at 12:13 pm

Let’s hope the nasdaq goes straight to 6000. Do not pass Go, do not collect $200.

I think it might…

#216 Moron Face on 07.24.16 at 12:26 pm

We just might be only 1/2 to 2/3 the way through the greatest bull market in history. We just might…

The pessimism must stay high. Long live history’s greatest bull market in equities.

#217 Victor V on 07.24.16 at 12:30 pm

Conrad Black: The genius of Donald Trump

http://www.nationalpost.com/m/wp/news/blog.html?b=news.nationalpost.com/full-comment/the-genius-of-trump&pubdate=2016-07-24

#218 Blacksheep on 07.24.16 at 12:40 pm

economictsunami # 199

“A “period of instability” is upon us, historian Margaret MacMillan told me this week, one that has parallels to the pre-war periods of the 20th century that she’s written acclaimed books about.”
—————————————
It takes about 80 years, or a persons lifespan for the following generations to completely forget the horror of war and it’s consequences.

20 year old Suzy doesn’t get why crazy old Grandma had jars of rubber bands, buttons and all that canned food in her farm house cellar, but her 50 year dad sure does cause he heard the unpleasant, post depression / war stories throughout his childhood.

This is also called “The forth turning” as described by Strauss & Howe in their 1999 book “An American prophecy”

First comes currency wars, then trade wars with borders thickened, eventually real wars begin when countries see former trading partners as nothing but competition.

Politicos start to point fingers when internal economies falter and the citizenry starts getting restless.

Nothing stimulates an economy the like an old fashioned blow shit up war.

http://www.fourthturning.com/

#219 Ohh my on 07.24.16 at 12:59 pm

#207 Ohh My
That article is quite the eye opener, but, deep down, I think a lot of people living through the last few years of ridiculous housing prices arent that surprised.

And, apparently , even the police think its just the tip of the iceberg. CRA, RCMP, Fintrac……all asleep at the wheel?

“The belief that there are hundreds of real estate investors in Vancouver who are under suspicion in China is shared by Canadian law enforcement sources.

“Sometimes we ask ourselves if we’ve already lost the battle,” one such source said. “I think this guy is just part of a large network.”

The article is well written , researched and Evidenced. ….but I’m sure Garth will find fault and refuse to acknowledge it’s finding !

#220 NoName on 07.24.16 at 12:59 pm

#180 Gen X Confessions on 07.23.16 at 7:45 pm

according to this calendar my kids don’t qualify, maybe they are know kids at all, aliens perhaps…

i think that use same inverse-square type formula that was used to calculate CDB for one of my kids. Apparently, higher parents income, less disable you get…

#221 Lea on 07.24.16 at 1:00 pm

Still learning about Canada…

What does the Internal Trade Deal mean for Canada?

(I know that Google is my friend, but I want the Greaterfool perspective.)

#222 crowdedelevatorfartz on 07.24.16 at 1:12 pm

More news from Rio2016 where, apparently, overflowing toilets is a common occurance due to “narrow pipes” thus the average Brazilian doesnt flush toilet paper……they just toss it in the waste basket………mmmmmmm . Niiiiiiiice.

Reminds me of my favorite song.

“Ooooooooo Oooooooo that SMELLLLLLLL. That smell that surrounds youuuuuuuuuuuuuu.

http://www.reuters.com/article/us-olympics-rio-village-australians-idUSKCN1040NN

#223 45north on 07.24.16 at 1:32 pm

economic tsunami: from your link: Things go wrong and things can go wrong very quickly, we know that. It took Europe five weeks in the summer of 1914 to go from a fairly stable peace to all-out war,” Prof. MacMillan continued. “If things go wrong, we’ll look back and say this was a time that led to greater instability.”

Germany miscalculated. Politically and militarily it miscalculated but its greatest mistake was its failure to recognize its own strength. In terms of industrial and scientific prowess it was rapidly ascendent in Europe. Another five years of peace and it would have dominated Europe.

i’m thinking that our world does not recognize its own strength. Right now we have proven and have demonstrated our ability to co-operate and prosper. I have a wide circle of acquaintances from all backgrounds: asian, middle east, Russian. Oh and American.

I believe this is our greatest strength and source of future fulfillment.

again from your link: The world seems to have reached a critical point in terms of creating a large enough pool of ‘losers’ – those who lost out on globalization, who lost out on technology, who lost out on free trade – to create the undercurrents of this instability.”

paradoxically I think the above statement is true: the world does seem to have created a large enough pool of losers to create the undercurrents of instability. Up to now the promise has been that everyone will be better off economically and up to now everyone has been better off economically. But we have reached a limit. We see this in the housing market: not everyone can live in a luxurious single family house close to everything. However everybody in Canada is now living better than their ancestors 100 years ago. A lot better.

Let’s recognize our strength and build on it. We don’t have a duty to go insane.

#224 Grantmi on 07.24.16 at 1:36 pm

#207 Ohh my on 07.24.16 at 11:23 am
Move along…..nothing to see here !!!!

Mysterious wheeler-dealer at centre of a web of B.C. real estate deals | The Province
http://theprovince.com/business/real-estate/mysterious-wheeler-dealer-is-at-centre-of-a-web-of-b-c-real-estate-deals

Oh My! yup.. and ALL governments and politicians completely asleep at the wheel. This facking dude might as well just stand in the middle of the street and yell! Eh look at me!

He’s not even hiding this stuff.

#225 NEVER GIVE UP on 07.24.16 at 1:55 pm

#221 Grantmi on 07.24.16 at 1:36 pm
#207 Ohh my on 07.24.16 at 11:23 am
Move along…..nothing to see here !!!!

Mysterious wheeler-dealer at centre of a web of B.C. real estate deals | The Province
http://theprovince.com/business/real-estate/mysterious-wheeler-dealer-is-at-centre-of-a-web-of-b-c-real-estate-deals
—————————————————————–
More proof of the Naivete of Canadians. Especially British Columbians.
We have elected Christie Clark who all along is benefiting from our suffering in this real estate bubble.
She knows she will be gone and Rich when it ends!

#226 meslippery on 07.24.16 at 2:13 pm

Mr. Garth Turner advised you to borrow money cheaply, using your home as collateral…..

The Investment Reporter July 22, 2016

I have never spoken to that publication. — Garth

#227 Mr. Frugal on 07.24.16 at 2:28 pm

I’m okay with slow economic growth. It’s the constant knife attacks and runaway trucks that get my dander up.

http://www.breitbart.com/london/2016/07/24/syrian-refugee-machetes-woman-to-death-injures-two-more-in-germany/

#228 BOOM! on 07.24.16 at 2:40 pm

One final observation on Donald J. Trump, after viewing the republican ‘circus’ for lack of a more fitting moniker.

Samuel Johnson famously considered patriotism “the last refuge of the scoundrel.” His biographer James Boswell who passed along that judgement, clarified that Johnson
“did not mean a real and generous love for our country, but that pretended patriotism which so many, in all ages and countries, have made a cloak for self-interest.”

Looking back over Trump’s years in the public, I find very few demonstrations of his alleged ‘patriotism’ now so much on public display.

What I have seen is his ridiculing a handicapped reporter, and then demeaning John Mc Cain, Arizona republican and Viet Nam POW, saying, “He’s not a war hero. He was a war hero because he was captured. I like people who weren’t captured.” Well, so much for his “patriotism” there…

Despite his calls to “bring jobs home” Trump has used China, and Bangladesh for his signature clothing brands.
At least Brooks Brothers makes their stuff in the U.S.A.

His proposals are outlandish, and would greatly increase our deficits. Even Speaker of the House, Paul Ryan, no math whizz is steering clear on these.

Read up on the “Trump Discount” his habit of short paying contractors, and others involved in his myriad business enterprises.

Finally, and to me most telling, Politifact, which rates the ‘truthiness’ of politicians statements reveals nearly 80% of the statements made by Donald Trump fall under the categories of “Mostly False, False, or “Pants On Fire.”

Hillary has her own bad track record for me, and she will NOT get my vote. Neither will the Donald, but it IS my vote, and I will give it to whom I please, who is most deserving of this sacred trust, and it pleases me immensely NOT to waste it on the altars of the absurd!

#229 Barb on 07.24.16 at 2:46 pm

#193 Jim on 07.23.16 at 11:32 pm

Washington Post was purchased by Jeff Bezos, a hard core Democrat who hates Trump. Its like MSNBC now.
———————————————————–
That’s immaterial. As a verbatim transcript of the interview by the-then editorial board, Trump’s verbal flailings are obvious.

#230 acdel on 07.24.16 at 2:58 pm

All this Doom and Gloom nonsense of Brexit is exactly that, nonsense, the Brits will be just fine.

http://business.financialpost.com/fp-comment/lawrence-solomon-brexit-is-already-proving-to-be-a-huge-victory-for-global-free-trade

#231 I'm #208 on 07.24.16 at 3:55 pm

@212 – point taken but I wasn’t suggesting that Hilliary was the answer. Far, far from it. I was simply saying that the rise of Trump-ism as the answer to American woes seems ill-conceived. Americans want to be proud to be American. I get that. But do Americans want to their spokesperson to be Donald Trump on the world stage? Do they want their children to emulate the values in him? (Again, I’m not for a second saying Hilliary is better.). As a Canadian looking in, I’m just asking the question whether there is anything beyond the grandstanding that would make him qualified to lead a country.

#232 Nelley on 07.24.16 at 4:50 pm

#229-Trump is qualified because he appears to want to improve the US economy-the USA hasn’t had a president working for that country in a very long time-a lot of this stuff isn’t rocket science.

#233 Philburt on 07.24.16 at 6:21 pm

The Elite running this world the DON’T pay taxes…is ending.
The Brits bailing is just the start. Power back to the people!!!!
http://www.ted.com/talks/gerard_ryle_how_the_panama_papers_journalists_broke_the_biggest_leak_in_history?utm_campaign=social&utm_medium=referral&utm_source=t.co&utm_content=talk&utm_term=global-social%20issues

I’m the Elite running this blog and pay plenty of taxes. So there. — Garth

#234 Philburt on 07.24.16 at 9:07 pm

LOL
You and I are keeping this country afloat!
Actually you would be a great guy to ask.
I just bought 2 properties in Courtenay.
Right by Walmart Crappy Tire
I was thinking and watch MAD Van town shooting to the moon…I Bought a commercial mixed use Prop for 2.275m. Has 2 condos 1550sq ocean views on top and commercial frontage 3 story with and large warehouse lots of land…
17,000 sq ft buildings….Better then buying a Van tear down? 165k net. Incl .33 acre on top….6 yrs new….If the residential blows up I don’t care….Got solid commercial renters…
Good…?..no?