The Rev

RAINBOW DOG

Sure, the bank risk management dudette told analysts this week, we could withstand a 30% crash in Canadian residential real estate. It would cost the bank only $100 million or so in mortgage loan losses. Zzzz.

And that’s what she actually stated (more or less) during the call CIBC had with Bay Streeters in conjunction with releasing its quarterly results (up 9%, to $1.14 billion over three months). As you may have heard, all the big guys are coming in with robust profits despite misery in the energy sector, a contracting economy and serious concerns about a rupture in our housing gasbag.

These bankers have also been stress-testing in anticipation of a US-style Houseageddon, were one to start in Vancouver, spread through BC, decimate Calgary, then infect the Golden Horseshoe before laying siege to the GTA. The answer so far: piece of cake. Staff might be laid off, mortgage operations docked and common share values pared, but no bank would stumble or fall, no matter how bloody housing markets became.

That’s probably a fair assessment. Even in the depths of the 2008-9 credit crisis, with the financial system facing a 1930s-style challenge and bank shares losing about half their value, none of them came remotely close to insolvency, and nobody cut a dividend.

But that sure doesn’t stop the fear-mongering, disinformation and potty-mouthed hyperbole that seems to be heating up as the real estate market cools down. Once again there are cries that banks are vulnerable, and if one of them rolled over as real estate croaks, your bank accounts, GICs and mutual funds would be wiped out. And it’s all Trudeau’s fault.

Now, this pathetic blog may not be a weed-smoking, tattooed, selfie supporter of T2, but it does like the truth. And right now some people on the fringes of Conservativism need a cuff on the head. Like Charles McVety.

Chuck is an evangelical mail-order reverend, who mattered a lot when Stephen Harper was in power. He was a best bud with the dearly-departed elfin deity F, who served for years as the nation’s finance minister. Besides being an anti-gay crusader, McVety was also enlisted by his prime ministerial friend to assist in my ouster from the Conservative caucus in Ottawa after I irritated the boss with my blogging and bad attitude. In fact McVety mounted a challenge in my own riding to have me unseated as MP, and used my heretic words to raise millions from fundamentalist supporters who came to believe I had horns and a tail. (The horns part is totally false.)

Anyway, the Rev and I go way back, even debated on TV. I survived. None of this would be relevant to a financial blog about canines and hormones were it not for the fact McVety has now taken up the torch against bank bail-ins – like the other Con gadfly Ezra Levant did several months ago. They’re spreading the myth that T2’s first budget snuck in rules allowing a failing bank to seize depositors’ money and convert it into stock, of dubious value. It’s a harkening back to the fiasco in Cyprus, where major depositors found their assets converted into bank equity when that little country faced a liquidity and confidence crisis.

Anyway, the Rev can explain it all better in this scary vid he’s using to raise more money from the sheeple congregation:

I hate to revisit this issue again, but apparently have to. There will be no confiscation of deposits or accounts if a major ‘systemically-important’ bank fails (which will never happen). Depositors are not bank creditors. Nobody can seize assets to shore up a financial institution. This was not a Liberal idea. It came from the Conservatives, first introduced in F’s 2013 budget.

Let’s revisit what Flaherty said in that document:

“The Government proposes to implement a ‘bail-in’ regime for systemically important banks. This regime will be designed to ensure that, in the unlikely event that a systemically important bank depletes its capital, the bank can be recapitalized and returned to viability through the very rapid conversion of certain bank liabilities into regulatory capital. This will reduce risks for taxpayers. The Government will consult stakeholders on how best to implement a bail-in regime in Canada. This risk management framework will limit the unfair advantage that could be gained by Canada’s systemically important banks through the mistaken belief by investors and other market participants that these institutions are too big to fail.”

Here’s what the maiden Trudeau budget said:

“To protect Canadian taxpayers in the unlikely event of a large bank failure, the Government is proposing to implement a bail-in regime that would reinforce that bank shareholders and creditors are responsible for the bank’s risks—not taxpayers. This would allow authorities to convert eligible long-term debt of a failing systemically important bank into common shares to recapitalize the bank and allow it to remain open and operating. Such a measure is in line with international efforts to address the potential risks to the financial system and broader economy of institutions perceived as “too-big-to-fail”.

Hear an echo? It’s exactly the same government intention, framed in nearly-identical language. There’s nothing ‘Liberal’ about this. The Trudeau gang just copied it from the Cons – something Tory spear-carriers like McVety and Levant should know (and do).

Now, would a bail-in regime take your money?

Of course not. Here again are the actual proposals, detailed in a Department of Finance paper on the initiative (called the ‘Taxpayer Protection and Bank Recapitalization Regime’).

  • The creation of new long-term senior bank debt – so-called ‘bail-in bonds’ which investors would snap up (since they pay a premium for slightly enhanced risk)
  • Conversion of those bonds into bank equity under certain strict conditions when bank capital requirements were not met
  • Cancellation of some or all pre-existing bank shares in the event of a bail-in occurrence
  • Deposits would be excluded from the bail-in regime.
  • Systemically-important banks would be subject to higher ‘loss absorbency’ requirements, based on risk assessments.

Naturally, there’ll be no deposit-sucking bail-in. The country’s Big Six banks are rolling in dough, churning out ever-higher profits and constantly trimming risk. The results being announced this week – even as Vancouver real estate self-combusts – proof how ludicrous the notion is.

Still, it’s 2016. There are people who actually believe what they read online or watch on YouTube. Always near at hand, sniffing opportunity, are those using a public pulpit to scare and fleece the masses. I thought Charles McVety could stoop no lower. But then I always underestimated the man.

154 comments ↓

#1 Smoking Man on 08.25.16 at 6:55 pm

Killary Rotton Clinton just nailed her political coffin shut. Who the hell is advising her? I betting someone on Trump’s payroll. She sends her people to info-wars. Duh.

http://www.prisonplanet.com/hillary-clinton-directly-attacks-alex-jones.html

Look at her face in the clip, body language when she says Alex Jones thinks 911 was an inside job. You could hear a pin drop in the friendly audience. Why? Cause everyone knows the Capitan lied. Everyone knows the dice are loaded.

Well, my beautiful hag, this is how it is, you and your party are racists, Blacks, Latinos, only their votes matter, their lives mean nothing to globalists.

Mrs. Marie Antoinette. The straight white gun owning male, the only resistance left, who doesn’t understand why she wants to let creepy men allowed into his wife and daughters restroom.

She backs and encourages people it’s ok to kill cops. Why not? She pure criminal and knows their coming for her soon.

The 911 dig was a subliminal message to Rudy, “You were in on it, shut the fk up asshole.”

Rudy has already been pardoned by President Donald. The bastards who did this are going to hang. And rightfully so might I add.

Dr. Smoking Man
The last Gonzo Journalist on earth.

#2 crowdedelevatorfartz on 08.25.16 at 6:58 pm

Hmmmmm
Religion and Apocalyptic predictions of looming bank failures after the summer of Hell.

Over to you Apocalypse 2016

#3 randy on 08.25.16 at 6:59 pm

Dog’s got issues

#4 F.dover on 08.25.16 at 7:02 pm

Jimmied

#5 Love this Blog on 08.25.16 at 7:02 pm

The budget will balance itself .

The man scares me. Thanks God it is the millennials who voted for him that will be holding the bulk of the bag of crapola

#6 MSM-Free Zone on 08.25.16 at 7:12 pm

I always wondered what a drunk, slurring chipmunk with cheeks full of acorns might sound like. Now I know.

#7 For those about to flop... on 08.25.16 at 7:13 pm

I irritated the boss with my bogging and bad attitude.-Garth.

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No air freshener in Ottawa?…

M42BC

#8 F.dover on 08.25.16 at 7:19 pm

Help me with the first paragraph. If some one walks away from a million dollar mortgage after a 30% crash, the bank repo’s the house and sells it at a loss of 30% for 700K. So 300k loss. Do that 333 times and one hundred million is up in smoke.

So the banks only hold 333 one million dollar mortgages from coast to coast?

Won’t be a problem then, the lady is right!

#9 Michael King on 08.25.16 at 7:25 pm

Enough, please. Smoking Man should be permanently banned. He’s a time waster in that his comments are not helpful or informative. He should show some respect to Matt Taibbi, he is the Gonzo Journalist that Smoking Man will never be.

#10 Jeremy on 08.25.16 at 7:27 pm

Where can I bet that rich people will get richer and poor people will get screwed.

#11 Aggregator on 08.25.16 at 7:27 pm

Go read the bail-in legislation or what law firms are saying. That's the difference between who will and will not lose their money in a Canadian bank.

#12 Victoria Real Estate Update on 08.25.16 at 7:27 pm

SALES OF DETACHED HOMES FALL DRAMATICALLY ACROSS GREATER VICTORIA FROM APRIL TO JULY

The difference in detached sales (plus/minus) from April to July in 2015 is compared to the difference in 2016 for the areas listed below:

Area. . . . . . . . % Difference (2015). . . . % Difference (2016)
Victoria. . . . . . . . . . – 33 %. . . . . . . . . . . . – 42 %
Oak Bay. . . . . . . . . .- 13 %. . . . . . . . . . . . – 67 %
Saanich East. . . . . . .- 14 %. . . . . . . . . . . . – 35 %
Saanich West. . . . . . .+ 8 %. . . . . . . . . . . . – 35 %
North Saanich. . . . . . + 21 %. . . . . . . . . . . . – 15 %

(Source: Victoria’s R/E board)

The results are shocking and quite telling – something happened in Greater Victoria after April of this year. Sales of detached houses have plummeted. That didn’t happen in 2015.

SHIZZLE MY FIZZLE

Sales of detached houses for the month of April were 50% higher than last April’s total.

Then something changed in Victoria.

July’s total was only 3% higher than last July’s total.

You can just hear the market momentum fizzling out in Victoria.

A MARKET’S WARNING

It’s safe to say that most of those who took out mortgages in Victoria recently are completely unaware that the market warning sign is flashing red and that falling prices will once again be the housing headline in Victoria. How soon? That’s up to the market.

It won’t require rising rates. 2010 didn’t need that. Those who had predicted higher prices for Victoria the next year and the year after that were wrong.

The list of those who were wrong includes: the RBC guy (bankers), realtors, mortgage brokers, etc.

Many of those who had to sell their properties as prices fell 15-20% after 2010 sustained significant financial losses.

450% IS AS BAD AS IT GETS (ALMOST)

It’s no secret that those taking on new mortgages in Victoria since 2013 have been stretching themselves with the always dangerous 450 percenters as much as or more than those in Vancouver and Toronto. This is a clear sign that the local housing market is extremely bubbly.

WHAT GOES UP MUST COME DOWN

Most Vancouverites are probably unaware that their city’s long-awaited price correction is underway. If you have read Garth’s posts on this you already know that the average price of detached houses has plummeted across Metro Vancouver in 2016.

DEBT JAIL FOR DEBT JUNKIES

The dream-shattering market event that’s unfolding in Vancouver is always unpleasant and unwelcome, however, it’s also inevitable. The only thing new mortgage holders in Vancouver will have to show for their efforts of rushing into the market (before it was too late) is debt on a depreciating asset that will make them feel as though they are in jail.

MR. MARKET CORRECTION LOOMS IN VICTORIA

It’s only a matter of time before the average price of detached houses in Victoria begins to move lower again, crushing dreams of higher house prices for those who took on mortgages recently.

Many will learn the same lessons learned by those in Ireland, Japan, Iceland, the US, Spain, Greece or any of the many other countries that experienced the inevitable outcome of a housing bubble (there have been at least 50 in the last 40 years).

#13 conan on 08.25.16 at 7:35 pm

I believe most of Europe now has Cyprus style bail in legislation as of Jan 01 2016. Canada’s laws are currently written differently. But, the whole world is going the Cyprus route.

SHTF legislation, just not in Canada yet. Pity.
Who the heck is going to buy these bail in bonds for the Canadian style plan? Are you going to buy them and put them in your clients portfolio?
These banks are all interconnected to some degree on the larger international money loans. Parliaments and Legislators are not going to bother drafting up such laws unless there is a good reason to.

#14 Mark on 08.25.16 at 7:36 pm

A far more likely scenario, before that ‘bail-in’ language needs to be tested, is that the banks simply adjust the rates as applicable to 40% of their asset base that is linked to the “Prime” rate. After all, unlike their US counterparts, Canadian banks control “Prime” and set it at their sole discretion.

How high could “Prime” go? The sky is basically the limit if a bank needed short-term cash immediately. The Criminal Code limits interest to approximately 60%. Thus, “Prime” could rise into the double digits. Rapidly having the effect of calling loans, or converting so much of the borrowers equity to the property of the bank that the bank would be rapidly recapitalized.

This is the risk that Prime-linked borrowers take, that they’ll be on the wrong end of this. In exchange, they usually save big bucks on their interest costs. Its a very small risk for the reasons outlined here extensively, but it is a risk nonetheless. If it does occur, it is likely to be a systemic event, and the Bank of Canada would probably be obliged, in the interest of defending the economy and its monetary policy (ie: inflation targeting) to take systemic action.

Of course, something that isn’t talked about much is just how are insolvent Credit Unions resolved? They’re generally provincially regulated (thus not subject to the resolution schema put forth by the federal government in the Bank Act), and the whole concept of equity and shareholders is rather problematic in the current “ownership” structure of credit unions. With well-known significant activity in the subprime markets, lack of diversification, and significant exposure to small business lending in the RE sector, its certainly an area that people should be concerned with in the Canadian banking system.

#15 Jesse Samphertson on 08.25.16 at 7:37 pm

Justin Trudeau and Bill Morneau, Wynee, Sousa and all Liberals Municipally, Provincially, Federally keep adding to the confiscation of Canadians income and wealth.

The average Canadian family income is $80,593 and they pay $34,154 in total all types of taxes to all governments.

This is 42.4% total much more than food, clothing, shelter combined, http://www.torontosun.com/2016/08/25/buy-food-or-pay-your-taxes.

This is how they do it and a 50% total take out of most Canadians pockets is their goal in coming years squeezing Canadians even more and more adding to higher debt burdens for Canadians.

#16 Mark on 08.25.16 at 7:39 pm

“The man scares me. Thanks God it is the millennials who voted for him that will be holding the bulk of the bag of crapola”

As opposed to who? The Harper government that ran $26B/year deficits on average in its decade in power, yet had the audacity to run a campaign claiming a balanced budget in 2015 when they already were tens of billions in the hole year to date?

#17 Frank on 08.25.16 at 7:40 pm

Getting personal. I love it.

Media is a buzz with poor sales numbers for Van RE in August and the month isn’t even over. Man they love a good story. Just 5 months ago they couldn’t stop talking about the skyrocketing prices.

#18 mike from Mtl on 08.25.16 at 7:50 pm

The country’s Big Six banks are rolling in dough, churning out ever-higher profits and constantly trimming risk.

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

That’s for sure, in our frozen wasteland the big six are indeed well greased. Between them trillions(!) of $ in assets and foreign operations, not to mention nickel and dimeing pretty much every over the table transaction in this land in some way or another.

I’d fully expect the BoC to raise key rate (yea right?) before any of them cry to mommy to the guberment. CHMC is a different story I’m afraid.

#19 tex on 08.25.16 at 7:54 pm

_steerage_rant_on_

Clearly, there is obscene profit for sociopathic banking monopolies even when interest rates are non-existent. Go figure.

At some point in this macroeconomic f~show the general public have been sold on a false premise that low interest rates stimulates economic growth. Canada’s dismal employment statistics demonstrate this fallacy. The most significant advantage seems to be enabling gambling on the cheap.

Not a mention of the unwashed masses, aka their customers… many who would be highly adverse to a 30% depreciation of their household value. But hey.. at least the bank is ok!

_steerage_rant_off_

Good content this week, Garth.

I’m hoping in the next while you can write a bit about the TREB/competition bureau tribunal and data access legal wrangling that has been tied up in courts for FAR TOO LONG. Canada is in desperate need of a Zillow-like tool with verifiably accurate data. Sales data (country wide, not just TO) should be available online – it would bring a measure of legitimacy to some of the stats we have seen bandied about on this site and in commentary.

Grateful for your work, Cheers

#20 Smoking Man on 08.25.16 at 7:55 pm

To artists, visionarys, people trying to create shit.

Get a good buz going… Download Johnny Cash, all of Pink Floyed, and the Handsome Family..

Set your player to bring in the songs randomly…

Fking drunken heaven… Your art will follow perfectly.

Good damn losers her tonight at senica in the chairman’s club.

Garth knows why I let my wife piss away G note on every visit.

But the bugger loves me.

Thanks for saving me again yesterday….

Your really good shit Gartho..

Then I thought, he crazily loves dogs… He’s doing it for Wyeet and Sophie. My poodles. Where would we be when daddy is in Jail…

You got issues Garth.. But your a really God Man.

I’ll get there one day myself. A bit more fun first.

#21 JSS on 08.25.16 at 7:55 pm

I didn’t see any mention from the CIBC risk chief about cutting common share dividends if housing drops 30%. A dividend freeze is one thing, but a cut would be nasty.

#22 Metaxa on 08.25.16 at 8:00 pm

Garth, remind me to not get on the bad side of you!

There is a menace and disgust underlying your words today that illuminate your relationship with Charles beautifully.

As for The budget will balance itself. that isn’t what he said.

A finance minister produces a balanced budget. Or a deficit budget.
However the deficit looking after itself is basically what heppens, doesn’t matter if you are a conservative government or a liberal one.

Neither have much to say about world events, the price of oil, markets and such. If all those swing in favour AND the government of the day is doing its job correctly then, yes, the deficit will look after itself.

Lots of if’s there for sure but if Trudeau scares you enough to need to post that on a blog maybe you should put effort into making yourself feel safe?

#23 Smartalox on 08.25.16 at 8:01 pm

@Smoking Man,

You just don’t get it. Trump is working with Hillary. Every time the Law digs up some dirt on the Clintons, Trump gets on TV to say something inflammatory or stupid.

The Liberal media has a $#it-frenzy, and whatever Hillary gets pegged with ends up on page 10, or relegated to the second 10 minutes of the news.

The Conservative echo-chambers go berzerk, but the mainstream media-fed masses never hear about any of it.

They just think Trump is a punchline, yadda, yadda, yadda.

#24 acdel on 08.25.16 at 8:02 pm

Canadian Banks will never fail considering how much they charge us suckers in service fees, it’s criminal comparing to other countries. It’s borderline loan sharking, technology is cheap nowadays comparing to ten years back, cable and phone companies use the same tactics.

On the bright side, they are stable, if you bought low you are now reaping good share prices along with dividend payments and as Garth stated no worries of a default, choose your poison.

#25 bigtowne on 08.25.16 at 8:07 pm

Finally the market is getting some numbers on Uber and the sharing economy…Uber serves the current It folks millineals with their selfies and car less lifestyle as their majority demographic but with their 1 billion plus loss reported in this quarter now they finally understand that they forgot the over mature group of boomer losers who have the real money but no smartphones.

The Japanese have the opposite housing problem from Canada with a shrinking population there will be a TWENTY percent housing vacancy by 2030 in Japan. The Japanese have a very low immigration policy but they are using their seniors and automation to manage the missing workers. Old folks in Canada are frowned upon and not embraced as viable alternatives as newcomers are promoted as the best answer to all problems present and future in Canada’s economy.

The Japanese solution for our overpriced housing market and our low rental vacancy could be a “low cost common sense and no tax increase solution” for the Canadian government. The current image and rhetoric is totally scewed to heavy immigration to solve all issues including: lack of doctors; hypothetical missing workers; economic growth and population.

Hard to break the habit of giant immigration to solve all the problems of Canada like no growth; missing doctors and missing taxpayers.

Canadians would probably prefer a low cost solution to the debt building infrastructure program; unaffordable housing; no rental housing; no job growth; and lack of doctors but the only success in the economy at the present time is the housing sector and the newcomers are ringing the registers at the banks.

Canada has been on a uber immigration program for a couple of decades. Would T2 ever return to Pierre Trudeau’s level of 50,000 immigrants per year?

#26 berniebee on 08.25.16 at 8:14 pm

#1 Smoking Man. You’re reading Alex Jones?!?!? The voice of reason who knows 911 was an inside job, that we didn’t land on the moon and still believes Paul McCartney is dead?
Ok, I suppose he’ll be right about Paul sooner than later.

Leave A.J. to the confederate flag and swastika tattooed losers. You’re already damaging the ‘ole liver enough. Don’t fry your brains too.

#27 For those about to flop... on 08.25.16 at 8:14 pm

I asked this question this afternoon but did not get enough responses from the afternoon crew to get the total picture.

If you could live in any state in the U.S which one would you choose?

I don’t think as VREU seems to think that everyone wants to live down south.

Here in my neck of the woods Seattle is nowhere near the southern border of Washington state.

Portland is up the top of Oregon.

Salt Lake City and Denver are nowhere near the southern border so doesn’t ring true in these states either.

I said I would try Oregon first ,Metaxa seemed to say not a bad choice if coastal and Context suggested West Virginia.
I penciled Boom in for WI but could be wrong.

Let’s see if we can get 50 or so responses to see if there is a consensus.

Do you want to live as far south as possible?…

M42BC

#28 Smoking Man on 08.25.16 at 8:19 pm

#9 Michael King on 08.25.16 at 7:25 pm
Enough, please. Smoking Man should be permanently banned. He’s a time waster in that his comments are not helpful or informative. He should show some respect to Matt Taibbi, he is the Gonzo Journalist that Smoking Man will never be.
…….

Guess your not buying my book… You dementeted lefty. Teacher apple boy… Yeah that need for the pat on the head shaped you…

Congratulations.. You’ve made it.

#29 Harbour on 08.25.16 at 8:20 pm

#9 Michael King

Soon as I see SM I scroll right on bye… don’t have a clue what he’s talking about nor do I care.

#30 Phil Indablanque on 08.25.16 at 8:20 pm

Enough, please. #9 Michael King should be permanently banned. He’s a time waster in that his comments are not helpful or informative. He should show some respect to Smoking Man, he is the Gonzo Journalist that Micheal King will never be.

#31 WalMark of Sadkatoon on 08.25.16 at 8:22 pm

Most Canadians scared of their own shadow

That’s why they’re poor

#32 TEMPLE on 08.25.16 at 8:22 pm

Great post, Garth. I like this style way better than the inflammatory statements you sometimes make. This is real content. Thanks.

#33 not 1st on 08.25.16 at 8:24 pm

Aww Garth, you are so cute. You actually believe what politicians say.

#34 WalMark of Sadkatoon on 08.25.16 at 8:24 pm

Where can I bet that rich people will get richer and poor people will get screwed.

As it has always been, is and will be.

#35 WalMark of Sadkatoon on 08.25.16 at 8:26 pm

JT will continue Harper’s financial ways…but with more spending and deeper deficits

Lol

#36 Wallflower on 08.25.16 at 8:28 pm

a few things

Typo alert: banksters

Now, who’s laughing all the way to the bank?
What about all those Americans shorting Canadian banks?

#37 Smoking Man on 08.25.16 at 8:34 pm

23 Harbour on 08.25.16 at 8:20 pm
#9 Michael King

Soon as I see SM I scroll right on bye… don’t have a clue what he’s talking about nor do I care.
…..

Sure, I can teach you to lie where you actuly can get away with it..

I’m that good.

Fking left brained people..

#38 Last of the Boomers on 08.25.16 at 8:35 pm

@Frank #17

Media is “a buzz” with poor sales numbers. Let’s compare that to the HYPE on the way up. How can we get MSM to elevate the “buzz” on the way down (10 second spot) to the hype on the way up (3-5 minute spots with Feature Items) to reduce the destruction of indebted “Canadians” before it is too late. The realtors should be all over this, as a previous posted said, “they make money on the way up and the way down”. How fair is that?

#39 Smoking Man on 08.25.16 at 8:51 pm

I’m into the JD now and I want to fight. My fists are now thumbs.

Come on libtards.. Let’s go…

#40 Jim on 08.25.16 at 8:57 pm

That dog seems to be looking for a ‘safe place’.

#41 Brett on 08.25.16 at 8:58 pm

I get very nervous when I see clergy actively participating in politics.

I get even more nervous, actually frightened, when I see mail order evangelical clergy doing it.

We had a saying where I grew up in Quebec. It went something like this (poor translation)…..when politicians and clergy get into bed together it is the public that get screwed.

#42 JP on 08.25.16 at 9:02 pm

Fed rates will be rising as Granny Yellen pulls the trigger. Prepare for lift off, countdown starts tomorrow 10am et. Lift off on Sept 20-21.

#43 WUL on 08.25.16 at 9:03 pm

FLOP:

My choice as a place to live in the U.S. would be (obviously) The Hamptons, N.Y. To get my fix of rodeo, Pendleton and Bend Oregon, Cheyenne, Wyoming and Houston, Tejas would all be within reach of my Gulfstream.

M60AB

#44 rjrt81 on 08.25.16 at 9:06 pm

#38 Smoking Man on 08.25.16 at 8:51 pm
I’m into the JD now and I want to fight. My fists are now thumbs.

Come on libtards.. Let’s go…

——————————————————————–
how very sad. being at the point in your life that instigating fights on the comments section of a blog is where your at.

#45 Jim on 08.25.16 at 9:06 pm

FBI Admits Clinton Used Software Designed To “Prevent Recovery” And “Hide Traces Of” Deleted Emails.

“They were using something called BleachBit.”

Smoking Man, how does it feel to be proven right?

#46 WUL on 08.25.16 at 9:08 pm

This morning I was eagerly looking forward to all of the comments of the Sparky Andersons and Billy Martins living in the 416 and 905 in the Globe and Mail after the Jays were whupped by LAA.

No article about the 8-2 loss????

Does Rogers own the Globe?

#47 joblo on 08.25.16 at 9:11 pm

Flop, Lake Tahoe

#48 Lea on 08.25.16 at 9:24 pm

Is this true? or is it hyperbole? What does it mean?

http://www.scmp.com/news/world/united-states-canada/article/2005794/canada-tax-chiefs-knew-foreign-moneys-big-role

Until we lived in Vancouver, it never would have occurred to me that there could be a downside to millionaire immigrants.

#49 AB Boxster on 08.25.16 at 9:25 pm

Nah, Don’t ban the smokermon.

Garth knows when to delete his over the top rants.

But I like it when he opens some [email protected] on the left wing liberal SJW nutjobs. It helps balance their PC stupidity with some right wing rhetoric.
Kind of like yin (lefties) and yang (normal folk)

#50 crdt on 08.25.16 at 9:28 pm

Maybe the banks are only looking at uninsured mortgages. They are rolling in the $$ because they are reporting the top of the bubble income. I highly doubt they will shrug this one off.

#51 AfterTheHouseSold on 08.25.16 at 9:42 pm

Heads up TD WebBroker investors. Look at your ‘mail’.
(This will be of special interest to newbie investors)

On June 30 you were notified “We’ve simplified our fees!”
As of July 13 there will be a quarterly maintenance fee of $25 if you do not meet their criteria. Two ways to avoid their fee:
Your portfolio is over $15,000
You make 3 trades in the previous 3 months

I bring this to your attention because I know from my kids experience what it is like to start from scratch. My kids buy one ETF per month so it can take a while to hit that $15,000 thresh hold. As long as you are committed to making that monthly trade, you won’t get dinged with the fee.

#52 Capt. Serious on 08.25.16 at 9:47 pm

It’s impossible to debate the smoking man. The moniker ought to be enough to deter everyone. Like boxing your own shadow, you’ll tire before getting a hint of scoring a point.

#53 For those about to flop... on 08.25.16 at 9:48 pm

joblo on 08.25.16 at 9:11 pm
Flop, Lake Tahoe

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I’ll mark that down as California unless you want to correct me.

No one has said Florida and Arizona yet.

Which U.S state would you live or like to try to live in if you were allowed ?

This thing has legs…

M42BC

#54 Andrew Woburn on 08.25.16 at 9:53 pm

Depositors are not bank creditors. Nobody can seize assets to shore up a financial institution.
===========================

After I read this statement twice I agreed with it. With apologies to Garth, I will try to restate it for the benefit of others who might misread it.

Deposits are basically unsecured liabilities of the bank. Before you hyperventilate, remember that that is why deposit insurance was invented and that it covers almost all deposits in any federally regulated bank. No federal government will ever default on deposit insurance because they would be writing their political epitaph, probably forever. How can I be so sure? Even in the Cyprus debacle, the powers that be shied away from bailing in any deposit under the European deposit insurance limits, presumably for their own credibility and for fear of starting a run on other European banks.

If a corporation is in financial trouble, its creditors cannot seize other creditors claims. They can assert that their claim to the assets of the corporation has seniority, i.e. should be paid out first. A bail-in is essentially a downgrade of the seniority of a class of liability perhaps as far as to common equity, the least senior form of investment participation. It can only happen by operation of a very specific law applied by a regulatory authority and nobody else. The Canadian law says it doesn’t apply to deposits, end of story. Why would the government seize bank deposits and then have to pay them back under deposit insurance?

#55 P Sydney on 08.25.16 at 9:55 pm

Very informative, thanks Garth. But once again, I regret having read the comments.

#56 Less and less equity... on 08.25.16 at 10:00 pm

Been to the maritimes this summer…

Where were the young famillies from Ontario I used to see there???

Oh, of course, they stayed home paying there big mortgages.

No joke, it’s a sad state were in right now, and yes, there are definitely much less young families from Ontario than say 5 or 10 years ago.

But lots of families from other provinces…

#57 bdwy sktrn on 08.25.16 at 10:04 pm

todays pic is a set-up. the colors on the dog don’t match the pattern on the ground.
/////
any tips on easy installing integrated purlins (2×4 in 2×8 rafters) on my new deck cover???

flopper you swing a hammer , yes?

#58 BOOM! on 08.25.16 at 10:06 pm

#26 Flopper….

Ok, I’ll bite.

No, I would not want to live too far south. I have lived at this attitude my entire life (+or -200 miles or so), be it in WI, MI or NY.

I enjoy going south (FL,TX, NM, AZ) for a couple of weeks when the winter gets “too long” most every Canadian can relate to that.

Culture & education wise, not too impressed with much of the south.

Springs, Summers, and Fall here however, are magnificent!! I also like water & hills.

My opinion, my experiences. I’m lazy probably will stay in this latitude, not necessarily ‘right here.’

#59 bdwy sktrn on 08.25.16 at 10:07 pm

This thing has legs…

—————————
california of course (less the taxes)
maybe Oregon or texas(once they loosen up at bit wrt herb)

#60 Garthisnotgod on 08.25.16 at 10:16 pm

Price falling 30℅ is a simpleton case. As we all know risk will not come sequentially it comes parallel is do the bank operate under 30℅ price and 15℅ unemployment ????? This and case is very important OR CASE is Zzzzzz

Think about it and dint fall for it, why bank is rising dividend instead of saving for rainy day ? Because they want it to make it costly for short sellers Zzzzzz

#61 F.dover on 08.25.16 at 10:29 pm

flopper: I have spent much time state side. In most states too. If you want to live with creationists, anywhere south of the Mason Dixon line will suit you. If you like guns, anywhere west of the Mississippi is great for that, and if you like solitude the upper west interior will do, but for there, like Garth says about Canada’s east, be sure to bring a job with you. And no matter where you go, pack healthcare. You won’t need to pack a bible though, they are rampant everywhere.

The best place to be six months a year is Maricopa County Az. circa 1987 population 1 million. Today at 6 million it is not so great.

California is totally awesome, but again much too late.

Drop out here in SW Nova Scotia, best climate east of GTA.

But bring a Doctor. Please!

#62 Mark on 08.25.16 at 10:37 pm

“Why would the government seize bank deposits and then have to pay them back under deposit insurance?”

The mistake here is thinking of a ‘deposit’ as something other than a loan to the bank. Of course the government won’t seize the asset of the loan to the bank that a person makes as a “depositor”, but if there was a hypothetical shortfall in bank equity and a bank required resolution, the bail-in framework codifies that “deposits” are unsecured liabilities and that no government intervention beyond protecting CDIC insured amounts should be expected.

Depositors rationally should be demanding a higher interest rate on amounts they lend to the banks in excess of the CDIC limits as there is a higher risk to the money, at least hypothetically, than that of making a loan to the bank (ie: a ‘deposit’) within the CDIC insurance limits.

Just the mere threat of a bail-in should cause sophisticated lenders to the banks (“depositors”) to do more due diligence, and demand appropriate risk premia on credit thus advanced (remember that banks must borrow all funds they lend!). This ensures that rogue or under-capitalized banks do not receive excess funding from the public and do not unduly place the economy at risk. The mere threat of a bail-in, paradoxically, may actually prevent the need for future bail-ins by providing a market based mechanism for early detection of bank capital inadequacy. And making it well known to the bank shareholders that government or central bank support will not be available for non-systemic problems that may arise with individual banks.

It can only happen by operation of a very specific law applied by a regulatory authority and nobody else.

Actually bail-ins have basically been “the rule”, not the exception in most facets of Canadian business and insolvency law. The whole idea of bail-outs is a more recent “innovation”, and is actually a fairly offensive intervention in the whole realm of market based economies. In the specific case of banking, bail-outs were offered in 2008/2009 because, as it was argued at the time, the banking system could not be resolved in a fashion rapid enough to provide for real-time continuity of business. Bail-in rules set forth the procedures up-front for rapid conversion of bank debt (ie: deposits) to equity, thus making it something that could occur overnight if necessary. You go to sleep one day with $150k in your account in a shaky institution. You wake up the next day with $100k (CDIC insured) + $40k cash + $10k bank stock the next and the common shareholders are diluted to zero.

#63 Jr on 08.25.16 at 10:42 pm

To #9, Michelle King

Your blind. Garth gives the smoking man lots of room to express his thoughts. The man is around 10 to 12 steps ahead of the markets. How else can he travel faster than the speed of light. It’s only the lefty’s that hate him because they’ve sworn off capitalism. Read in between the lines, and double down. There’s a reason why we come here every night.

Now get back to shinning up your shoes, Friday’s busy at mcCafe!

#64 Hard Core on 08.25.16 at 10:43 pm

Yer right….the bail in law isn’t Liberal..it’s Stalinist.

But meanwhile zillions in revenue is slipping through the pathetic liberals fingers in denying the application of simple measures already in by law and tax code.

http://vancouversun.com/news/local-news/airbnb-offers-250-cash-for-new-hosts-in-rental-starved-vancouver

If BC and Vancouver can play ball with the ‘long form census’ and visit every single home with threats of prison…why can’t they inspect and tax suite revenue and Air B&B?

After all…they stopped UBER for the monopoly cab industry.

#65 SWL on 08.25.16 at 10:51 pm

#41 JP

Fed rates will be rising as Granny Yellen pulls the trigger. Prepare for lift off, countdown starts tomorrow 10am et. Lift off on Sept 20-21.

—————————-

Yeah right lift off.

Granny Janet wouldn’t dare blow both her feet off now would she???

The reality of the situation is the US is going to have to deal with their 20 trillion plus, plus, plus debt with the very real possibility that they may no longer hold world reserve currency status.

What’s gonna happen when all those chickens (USD) come home to roost???

Higher interest rates will not be the answer

Everything remains the same until it doesn’t

American Advantage

#22 Smartalox

Now you seem to understand the Trump situation. I’m surprised that Smoking Man doesn’t see through the Trump charade, but then again what could one expect from hanging out with, as he so eloquently put it ‘losers’ drunk at a casino

To each their own

Reality is about to sucker punch the tee vee watching western world in the face

As for the big 5 Canadian banks… Well they sure ain’t gonna lose, but I am willing to bet that at least 30 million unknowing people are going to

Bet accordingly. Things are happening fast

#66 Wantinhegame on 08.25.16 at 10:52 pm

Banks here won’t collapse. Thankfully. Keep saving and investing!!

#67 Hawk on 08.25.16 at 10:52 pm

If one has an online trading account with a self-directed TFSA, RRSP and other stocks, bonds, ETF’s that we discuss regularly with a bank………….how does such an account get classified?

Can such accounts be used for so called “re-capitalization” (i.e. theft) under the new legislation?

#68 James on 08.25.16 at 11:26 pm

Smoking Man you are a piece of digested processed refuse that exits my dogs posterior. Everybody who doesn’t agree with you is a leftist feminin man hating liberal or a protracted communist. Get over it loser if you can’t come back with a rational rebuttal you resort to name calling. Wow who punched you in the chops when you were younger, perhaps the little girl next door?
Get a life you angry old drunk.

#69 joblo on 08.25.16 at 11:44 pm

Flop, mark it as Nevada, that side of Tahoe, no state income tax.

#70 renters rule on 08.25.16 at 11:50 pm

@#62 ;-)

hear, hear!!

Smoking Man is an oracle.

The dipsh*ts who post on this blog that despise him have pre-programmed spew directly deposited into their atrophied grey matter. They are too stooped and self-absorbed to not even know they are not thinking for themselves.

Riddle me this: an apocalyptic event occurs. Do you want to be on your own, foraging, scraping and scrapping in the now post-apocalyptic world with @#9 Michael King…. or with Smoking Man?

I know who I would sign up with — and it ain’t the preachy weenie MK….

#71 Cici on 08.26.16 at 12:18 am

#1 Smoking Man

What on earth are you babbling about…wasn’t Bush and his Republicans in power during the September 11 attacks? If they were an “inside job” as you claim, I doubt the Clintons or Democrats had any involvement, seeing that, on a political scale, Bush benefitted tremendously from the tragedy.

#72 Smartalox on 08.26.16 at 12:20 am

Okay, so the nationally significant banks won’t be seizing depositors’ money in the event that a bail in would ever be required.

But what about the Credit Unions, and Caisses Populaires? Aren’t these financial institutions structured as co-operatives, where funds on deposits are by definition shares in the co-operative?

Won’t these shares be cancelled if the credit union becomes insolvent? I guess the big banks will pick up the loan obligations (read: debt collections) for pennies on the dollar to the ‘shareholders’, when the SHTF.

With poor diversification geographically (most are confined to one province) and in terms of business (most concentrated in sub-prime residential mortgages, or finance residential construction), I suspect that the credit unions won’t exist in five years.

#73 GenXer on 08.26.16 at 12:23 am

Flop I couldn’t stand the heat all year round. I like season changes and mountains so I would go with Colorado probably Denver.

#74 Setting the Record Straight on 08.26.16 at 12:26 am

http://www.zerohedge.com/news/2016-08-25/things-are-worse-dollar-stores-startling-admission-half-us-consumers-are-dire-strait

#75 Setting the Record Straight on 08.26.16 at 12:44 am

Austin Texas

#76 Mark on 08.26.16 at 1:03 am

“If one has an online trading account with a self-directed TFSA, RRSP and other stocks, bonds, ETF’s that we discuss regularly with a bank………….how does such an account get classified? “

RRSPs and TFSA’s are held by the banks “in trust” for the beneficiaries, and are not considered to be assets, nor liabilities of the banks.

With non-registered accounts, it works slightly differently. If the account is a margin account, and if a person has borrowed against such securities, then the securities are potentially subject to seizure by the bank’s creditors, set off by the loan from the bank to the margin borrower. If the account is not a margin account, then its a pure trustee relationship.

Can such accounts be used for so called “re-capitalization” (i.e. theft) under the new legislation?

In a nutshell, no. And bail-ins are not theft. They are a conversion of an unsecured liability to equity in the institution.

#77 Jim on 08.26.16 at 1:06 am

Bank bail-ins in Ontario were made legal in the last Liberal budget. Not sure how Lawful it is but right now it is legal for The State to take money out of your account to shore up the bank you have deposited it in. But only if its a ‘financial emergency’. See, nothing to worry about here folks, Canadian banks are awesome.

#78 AB Boxster on 08.26.16 at 1:28 am

In reality the Liberal and Conservative proposals are the same.
And the interpretation that bail ins do not apply to depositors is reasonable.

But seriously, don’t kid yourselves.
The government can do whatever they want to do.
They can confiscate your deposits if they want to.
They can demand your gold and silver assets.
They can confiscate anything they want, especially during times of calamity.

Whoever would have thought that the GFC would or even could occur?
Who would have believed that after trillions of dollars of QE and Zirp that there would be negative bond yields?
Who would believe that they would create so much massive worldwide debt?

To believe that in a situation of bank failings, that there is an orderly and structured plan to ensure orderly recapitalization so as to restore financial order , and that it would all just work exactly as planned, is really naive.

They managed by the skin of their teeth to avoid the last meltdown.

That they really have a clue as to how to manage the next one, is doubtful.

If they need your deposits they will take them.

That’s what governments do.

#79 waiting on the westcoast on 08.26.16 at 1:36 am

#26 For those about to flop….

“Do you want to live as far south as possible?…”

We own businesses in the US and Mrs. Waiting and I discussed living in Portland, OR, Austin, TX and Charlotte, NC. I love all those cities but frankly, I am leery of the growing social tension and repression of rights in the US since 911. Hence, our test move to Uruguay.

I chatted with an ex-pat who lives in Austin after stints in Seattle and the Bay. She is looking to come back to Vancouver after 20 years away because she doesn’t like the growing anger in the US.

Ultimately, I think we will move back to Canada after our test and settle down near Victoria. Hopefully, the prices will rationalize on acreage there in the next 18 months.

#80 Lea on 08.26.16 at 1:38 am

I live in Southern California. In the past (U.S. wise) I have lived in Marin County California, New York City, Washington D.C. and Miami.

While the weather here is spectacular 300 days per year, I still miss the seasons. For the foreseeable future, we are staying put.

#81 waiting on the westcoast on 08.26.16 at 1:41 am

Bend, OR and Lake Tahoe or even Truckee are awesome too. I also like Spokane… although a little small.

#82 fishman on 08.26.16 at 2:26 am

That link,Lea #47 is pretty well how we saw the R/E deals on the west side unfolding. Doesn’t matter as old gang is pretty well out of the game now. Sold what we wanted, (by the way the nearest guy to the top still left $700k on the table). & kept what we’re going to keep. Looks like pause for residential,but lots of liquidity out there searching for commercial . Especially rental units, the R/E lawyers are figuring out paths for trusts to hold numbered companies.

No doubt Rennie is pretty lucky (smart) as he went to Italy when the s**t hit the fan. Now he’s back.all smiles & there’s an earthquake in Italy. Not so, our fair Mayor Moonbeam. Looks like the Party is going to take his girlfriend’s mother out in the back 40 & give her two in the head. Real Estate embezzlement of all things. Definitely the “big leagues” “winners & losers” on the other side of the pond.

#83 Another Shark on 08.26.16 at 3:31 am

@ Smoking Man

Our lady sings in a few hours at Jackson Hole. Bought the gold dip, going long on the dollar and closed out my crude short today for some gains. No way is old girl Yellen gonna hike, but she’s gonna sing the sing that same old tune. Oh yes, she will. Obama can’t have a market correction on his watch.

#84 Agreed #17 Frank, dismal numbers... on 08.26.16 at 3:46 am

Vancouver July Unit Sales (per Zolo.ca):

Det: 207
Twnh: 99
Condo: 576

Vancouver Aug Unit Sales (6 of 31 days left in the month):

Det: 93…….down 55% from July, down 79% f/Mar peak
Twnh: 59…….down 40% from July, down 59% f/Mar peak
Condo: 362…….down 37% from July, down 59% f/Mar peak

What is odd is that July Detached Avg. Price down only 7% from May price peak ($2.9 MM to $2.7 MM), Townhouse unchanged ($1.2 MM) and Condo up 15.5% ($704 K to $814K).

Expect that to change.

Ron Chipman, whom averages all sales in his calculations (not weighted average of sales mix and price, as Zolo.ca uses) is showing average price typically between $850 K to $900 K since July…today at $775 K…no average that low since the beginning of July.

Question for #37 Last of the Boomers:

How do Realtors make money on the way down with Unit Sales dropping like a rock in YVR? Keep making assignments to their buddies?

#85 Besides banning Smoking Man... on 08.26.16 at 4:02 am

#9 Michael King, add “Mark” to the list…an abject study in bad math that thinks he is Garth by critiquing posts on a daily basis and at a nauseating pace as of late.

Smoking Man:

Just could not help yourself using “Dr.” in your signature.

Again, use “Mr.” since you are a devoted Academia critic and self-anointed Sociologist of the “masses”. Those that legally can use “Dr.” are not self-annointed.

Nietzsche would have collared you by now…

#86 OffshoreObserver on 08.26.16 at 4:11 am

#26 For those about to flop… on 08.25.16 at 8:14 pm
I asked this question this afternoon but did not get enough responses from the afternoon crew to get the total picture.
I bailed on Vancouver in 2010, selling my apartment to close to $4MM. Have grown my Balanced, Diversified ETF (and Google/Apple) another $1MM in 5.6 years.

My impetus for bailing on YVR after the Olympics in 2010 was that I received an appraisal for my building for $4MM; I thought: one asset, one address, one industry.

Maybe I was 5 years too early, but Vancouver and GTA real estate prices are insane. My motel rent is USD250/month on the beach.

I just turned 63 and my Vietnamese GF, 29, ministers to me–and, importantly, there is no common law, soul-destroying, estate-destroying law here–and in Thailand, for that matter.

So, to where do you want to retire?

[Maybe I’ll post anonymous pictures, but I don’t wish to antagonise those non-productive, coddled pensioned, non-productive civil servants.

[“The centre cannot hold”

[Ayn Rand was right–@Stefanmolyneaux–the smart people will outsmart the 99%, including civil servant morons! And from a more tax-benign jurisdiction.

[Try these people: https://www.creatrust.com/%5D

#87 Buy Low Sell High on 08.26.16 at 6:28 am

If every Canadian had just $300 in a bank deposit account, the deposit base would be in excess of $10 trillion. With Royal Bank and TD’s market cap at 120 and 106 billion respectively, I don’t think we need to worry about bank bail ins.

#88 Zen Headspace on 08.26.16 at 6:41 am

I love how these religious freaks sermonize to the ignorant masses about what will happen to them when some fictitious event (i.e., chance of occurring = .0000000000000000000000000000000000000000000%) takes place.
Next topic: What happens to your money when Jesus Christ returns.
Such idiots.

#89 Zen Headspace on 08.26.16 at 7:02 am

#48 AB Boxter
Kind of like yin (lefties) and yang (normal folk).
——————————————————————
The world is, was, will always be filled with good and evil, because good and evil is the yin and yang of the human condition.

There is a yin and yang to all things. Two sides to the coin. Two versions to every story. More than one way to look at things.

And it seems that conservatives and liberals are definitely seeing things from opposite ends of the candle.

One of the biggest problems with liberalism is that time is finite; there are not enough minutes in the day or hours in a presidency to enact all the social changes that liberals would like to pass. This leads to setting priorities, which is where liberals careen off the high speed rail track.

Liberals may care about issues that matter, but they care so much more about what matters so much less. There is a difference between what politicians care about in stump speeches and what they are prepared to fight to the death to defend. A look at the major issues of the day shows stark contrasts between the conservative philosophy of fighting for what matters, and a liberal philosophy that focuses on nonsense. The evidence is unmistakable.

Conservatives: Prepared to do whatever it takes to eradicate radical Islam.

Liberals: Prepared to do whatever it takes to eradicate Walmart.

Conservatives: Willing to intervene to stop the genocide in Syria.

Liberals: Willing to intervene to change the Washington Redskins name.

Conservatives: Worried that the real global economy is collapsing and determined to help put human beings back to work.

Liberals: Worried that human workers cause climate change and determined to lay off as many workers as it takes to save a few trees based on junk science and fraud.

Conservatives: Understand that businesses cannot hire people and workers cannot find work when government policies depress hiring.

Liberals: Want to spend billions to build wind mills paid for by a decreasing number of taxpayers.

Conservatives: Determined to stop Iran from building a bomb and blowing up the world.

Liberals: Determined to stop Israelis from building houses on their own land.

Conservatives: See religious zealotry in the Muslim Brotherhood taking non-Muslims and murdering them.

Liberals: See religious zealotry in socially conservative Christians taking non-Christians and preaching love thy neighbour.

Conservatives: Trying to help farmers till their land and get their water so the entire country can be fed.

Liberals: Trying to protect snail darters while farms fold and people go hungry.

Conservatives: Passionate about developing energy sources — like oil — that actually work.

Liberals: Passionate about freeing enslaved Americans from work so they can become hopelessly dependent on government.

Conservatives: Dedicated to increasing entrepreneurship, the gateway to job growth and financial freedom.

Liberals: Dedicated to increasing unions and the minimum wage, which produces nothing and hurts growth.

Conservatives: Want healthcare to be a choice between a patient and their physician.

Liberals: Want a government takeover of the healthcare system, reducing the quality and leading to rationing.

Conservatives: Encouraging religious liberty from government.

Liberals: Encouraging drug use.

Conservatives: See social disorder and societal threats coming from problems in the inner cities of Detroit and Chicago.

Liberals: See social disorder and societal threats coming from the Koch Brothers hiring people and paying them decent wages.

Conservatives: Reducing crime by spreading the ancient ethos of biblical respect for God, country, and neighbor.

Liberals: Removing bibles from hotel rooms for fear the book may jump out of the desk and force someone to read it.

Conservatives: Preserving the integrity of elections.

Liberals: Legalizing mass numbers of illegal immigrants and reducing felonies to misdemeanors to increase the number of people voting for Democrats. Blocking attempts to remove dead people and other illegal voters from the rolls by calling it bigotry.

Conservatives: Want more free speech for everyone and vigorous discussions of issues.

Liberals: Want speech regulated to suppress non-liberal opinions. This includes regulating print, radio, television, and internet communications through the Fairness Doctrine and net neutrality by the FCC and IRS targeting people engaging in their right to public assembly.

Conservatives: Worried about people struggling to feed families and put gasoline in their cars.

Liberals: Worried what name to call themselves when their ideas fail. From progressives to liberals and back to progressives, they try to put a new name on failure.

Conservatives: Determined to stand up to al Qaeda.

Liberals: Determined to suck up to France.

Neither of these extreme viewpoints are real.
Actually, the truth lingers somewhere in the middle.

Extremist views offer a kind of refuge to people and the middle way asks people to recognize and eschew the lure of unwholesome extremes and instead find refuge in the Zen Headspace. The genius of this is that the skills which resist the lure of extreme refuge are the same no matter what cultural conditions exist. The middle way is a matter of balance much more than a matter of peril or trespass.
——————————————————————–
With notes from:
http://www.timescolonist.com/opinion/avoiding-extremism-with-the-middle-way-1.2180643#sthash.2dLMaYRl.dpuf
and
http://www.commdiginews.com/politics-2/the-ying-and-yang-of-political-parties-how-conservatives-and-liberals-differ-10060/#uUKFxTcd0xbu3r4X.99

#90 salonist on 08.26.16 at 7:23 am

DELETED

#91 crowdedelevatorfartz on 08.26.16 at 8:07 am

@#85 BuyLow.
“If every Canadian had just $300 in a bank deposit account….”
********************************************

Unfortunately, if my coworkers are any indication, therein lies the problem.
The average canuck doesnt have two diimes to rub together, much less 300 bucks to squirrel away in a bank account.

#92 Elcheapo on 08.26.16 at 8:09 am

Hmmm. Not much love for Smoking Man last night/today. Leave him alone. His worst crime is he’s boring and repetitive. Mind you his comments do give my thumb a workout on my iPad as I scroll by….

#93 crowdedelevatorfartz on 08.26.16 at 8:14 am

@#28 Harbour
“Soon as I see SM I scroll right on bye… don’t have a clue what he’s talking about nor do I care.
********************************************
Yep.
The lonely, spastic, delusional rants of an alcohol ravaged brain.
I weep for the millenial nurses’ aid that has to change his thirsty underwear in a few years…..

#94 crowdedelevatorfartz on 08.26.16 at 8:21 am

@#1 Smoking Mensch

Gee not one spelling “mistake” or grammatical “error”.
I guess all those years of indoctrinated schooling paid off. Thank your teachers… :)
OR your invented persona is showing.
Time to get your wife to proof read the postings and insert some strategically placed “werds” ?
You’re slipping…..
A hard day at work or lack of alcohol?

#95 pBrasseur on 08.26.16 at 8:40 am

The local banks fortunes seem to be following Canadians indebtedness and overconsumption. How could it be something else with employment down, the trade deficit up, Alberta heading towards depression and BC RE market finally turning?

If that’s the case the banks results should be seen as more worrisome than reassuring. They simply indicate how imbalanced this economy has become, thus the need for a deep correction!

We’ll see how that goes in years to come… I for one am not betting on Maple!

#96 pBrasseur on 08.26.16 at 8:55 am

Chinese media warns about Canadian massive RE bubble and indebtedness:

https://betterdwelling.com/city/vancouver/chinese-media-now-warning-canadas-housing-crash-will-worse-us/

#97 Ed on 08.26.16 at 9:02 am

Objective journalism might not be completely deaf:

http://www.straight.com/news/765526/mix-media-sensationalism-and-psychology-blame-vancouver-real-estate-hysteria-economist

#98 Grey Dog on 08.26.16 at 9:04 am

I’m NOT leaving Unionville Canada for somewhere south…THEY want what we have! Case in point; husband (and on occasion I accompany him) has travelled the world for the purpose of negotiating Standards representing Canada.
A number of years ago, we home hosted a dinner for a number of his American associates while meetings were held in Toronto. Following dinner, we announced we were going to go for a walk via trails to our local village for coffee. Immediately, all men slapped their wallets, do we leave these here? Ahh no, why would you? So off we go, Uville on a warm summer night, Canada in all its peaceful diverse glory, families all generations and ages, dogs big and small, pubs, coffee houses, restaurants, ice cream shops, etc, eventually we rounded up all our guests, and walked home for dessert. By the time, we got home, these guys were floating!!! Wow, I can’t wait to bring my wife here, I’ve never done anything like this before, was the general enthused comment.
Hey, we’re not so bad eh!

#99 Q2 Class 2-B-C-2 Duplex Drive on 08.26.16 at 9:06 am

Garth – Long ago I learned a simple rule:

NEVER SAY NEVER

You maintain thoughout your note that this won’t happen, that can’t ever happen and the other thing will NEVER happen. I’ve been around the markets longer than you; you should know better. ANYTHING is possible.

#100 cramar on 08.26.16 at 9:08 am

#52 For those about to flop… on 08.25.16 at 9:48 pm
joblo on 08.25.16 at 9:11 pm
Flop, Lake Tahoe

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

I’ll mark that down as California unless you want to correct me.

No one has said Florida and Arizona yet.

Which U.S state would you live or like to try to live in if you were allowed ?

This thing has legs…

M42BC

————

Then let me be the first—with one caveat.

If I was a U.S. citizen, I’d own two properties. One in either FL or AZ for the winter and in a northern state. Which northern state is undetermined at this time. But if I was an American, I’d probably know where I would want to live in the summer. The northern state of choice would determine whether it was AZ or FL for the winter.

#101 Angela on 08.26.16 at 9:21 am

Funniest video I’ve seen in ages!

The McVety doth protest too much. About a lot of things. Bet he feels pretty in heels.

#102 james on 08.26.16 at 9:37 am

#68 renters rule on 08.25.16 at 11:50 pm

@#62 ;-)

hear, hear!!

Smoking Man is an oracle.

The dipsh*ts who post on this blog that despise him have pre-programmed spew directly deposited into their atrophied grey matter. They are too stooped and self-absorbed to not even know they are not thinking for themselves.

Riddle me this: an apocalyptic event occurs. Do you want to be on your own, foraging, scraping and scrapping in the now post-apocalyptic world with @#9 Michael King…. or with Smoking Man?

I know who I would sign up with — and it ain’t the preachy weenie MK….
………………………………………………………………….
Neither one! In a post apocalyptic world people like Smoking Man would crumble to their knees, curl up in a ball and die. No booze, no cigarettes, no electricity to power his smart phones. Who would he talk to? No friends and no future. He claims to be a code smith, that profession is worth less than a a taxi driver in the post apocalyptic world. When I am done with my day job I hunt, fish, hike and camp with the family for recreation. We will be the ones who control the likes of Smoking Man.

#103 Zoe on 08.26.16 at 9:48 am

Thank you, Garth. Countless times your blog has educated me in ways I never would have known or understood had I read it in the news. Much appreciated and keep up the great writing.

#104 james on 08.26.16 at 9:50 am

#92 crowdedelevatorfartz on 08.26.16 at 8:21 am

@#1 Smoking Mensch

Gee not one spelling “mistake” or grammatical “error”.
I guess all those years of indoctrinated schooling paid off. Thank your teachers… :)
OR your invented persona is showing.
Time to get your wife to proof read the postings and insert some strategically placed “werds” ?
You’re slipping…..
A hard day at work or lack of alcohol?
………………………………………………………………….
Yes it is weird how that terrible spelling and grammar comes and goes at will. Perhaps he has the same speech writer as Melania Trump?
When Smoking Man refers to the “Hag” is he talking about his wife again? Please no intensely complex and astute rebuttals from Smoking Guy. We know your debating tactic is Ad hominem.Yes we know we are all SJW, communist, liberal, leftist, anti-male, blah, blah, blah………………….
Try to come up with a real debating tactic.

#105 Mortgage lender being sued on 08.26.16 at 9:56 am

http://www.mortgagebrokernews.ca/news/statement-of-claim-issued-to-major-syndicated-mortgage-provider-212785.aspx

#106 Victor V on 08.26.16 at 10:32 am

Fed’s Janet Yellen says case for interest rate hike has strengthened

http://business.financialpost.com/investing/market-moves/feds-janet-yellen-says-case-for-interest-rate-hike-has-strengthened?__lsa=4931-70fd

“In light of the continued solid performance of the labor market and our outlook for economic activity and inflation, I believe the case for an increase in the federal funds rate has strengthened in recent months,” Yellen said in prepared remarks.

#107 F.dover on 08.26.16 at 10:33 am

Garth must not be a morning person…
# 85 made a major error of innumeracy this morning on this financial site, with out a correction.

If each Cdn puts up $3.00 we get 100 million
if each Cdn puts up $30.00 we get 1 billion
If each Cdn puts up $300.00 we get 10 billion
If each Cdn puts up $3,000 we get 100 billion
If each Cdn puts up $30,000 we get a trillion

Good luck finding that much money in every Canadian’s sock drawer!

#108 LP on 08.26.16 at 10:36 am

As to where I’d choose to live, all things being equal, I think I’m attracted to Maine, the coastal part. It’s wild and sometimes desolate, weather-wise it’s exciting and excitable, the people are independent thinkers and a little eccentric, the scenery is unbeatable (except for the same parts of coastal Canada).

And best of all, I can scoot away “home” in almost no time!

#109 Bram on 08.26.16 at 10:49 am

#85

If every Canadian had just $300 in a bank deposit account, the deposit base would be in excess of $10 trillion. With Royal Bank and TD’s market cap at 120 and 106 billion respectively, I don’t think we need to worry about bank bail ins.

Now try that arithmetic one more time….
You are off by a factor 1000.

A trillion is a bigger nr than you think.

#110 tilkounz on 08.26.16 at 11:05 am

#24 bigtowne on 08.25.16 at 8:07 pm
The Japanese have the opposite housing problem from Canada with a shrinking population there will be a TWENTY percent housing vacancy by 2030 in Japan. The Japanese have a very low immigration policy but they are using their seniors and automation to manage the missing workers”

I wouldn’t get too excited about the Japanese immigration policy. It is the reason the economy has been in recession for 25 years and will slowly strangle the country into economic oblivion…

#111 For those about to flop... on 08.26.16 at 11:24 am

Well, we are getting a decent sample size but it is a bit more lopsided than I thought it would be at this stage with the myth that we all want to live as far south as possible just because a majority of Canadians live close to the southern border.

It all just hypothetical but just choose a state that you could see yourself living in for ten months a year.
( Not retired).

Some people on the blog seem to think Florida and Arizona are where it’s at but I like to visit these places only.i don’t think I would be totally miserable there but I would try other places first.

I think it is also more realistic to pretend that you were going to work there with a commute as opposed to choosing a place to retire as I would probably be looking for different choices.

Sure as Cramer suggested if you chose a northern one you might want to head south for a couple of months and vice versa if you choose a southern one.

Thanks to everyone that took the time and I’m hoping for a few more to be a decent sample size.

As Mythbusters would say…

This myth is looking busted…

M42BC

#112 maxx on 08.26.16 at 11:25 am

#3 randy on 08.25.16 at 6:59 pm

“Dog’s got issues”

Hey……..he just wants a piece of the rainbow like any one of us! :-)

#113 WalMark of Sadkatoon on 08.26.16 at 11:26 am

#9 Michael King, add “Mark” to the list…an abject study in bad math that thinks he is Garth by critiquing posts on a daily basis and at a nauseating pace as of late.

It wouldn’t be so bad if he actually knew what he was talking about.

Low interest rates good for insurance companies was his last gem. Put it in the pile of his theories on the CAD, YYZ RE, deflation and Barrick gold. Haha

Onward!

#114 TurnerNation on 08.26.16 at 11:40 am

Just now read this blog.
Oh great another “Do as I say not as I do” thumper.

I looked at his official photos. Notice different between right and left eyes. They look unhinged/unbalanced.

Left eye always is key. For example look at P Bernardo photos. His left eye is unhinged. Vs right

Picture http://tinyurl.com/jrgkwyo

#115 Bytor the Snow Dog on 08.26.16 at 11:40 am

I can’t wait until all of these butthurt teachers go back to school.

#116 Nagraj on 08.26.16 at 11:48 am

“He was a best bud with the dearly-departed eflin deity F”

Well, Mr. Turner, you meant to type “elfin” but you probably thought ahead to the “F” and consequently overemphasized the f in elfin, giving us “eflin”; OMNES FESTINATIO EX DIAVOLI EST (all hurry is of the devil) as this Mr. McVety could tell you if he were schooled in Latin which he may not be, eh. And tho this Mr. McVety may be an ignoramus on many fronts, he’s certainly on to a winner of an idea in meaning to profit, one way or another, from Canadians’ utter and complete, total, (and certainly justifiable) hatred of banks, yes.
I am also wondering, Mr. Turner, about the hyphen in “dearly-departed”. I don’t know – but I suspect it isn’t grammatically necessary – and doesn’t it take away from the gravitas of “dearly departed”?
Finally, shortening “buddy” to “bud” is – oh so manly NOT. It’s jes stupid. Do try not to go this “Canadian Tire” cultural route again.
All for now, your faithful reader, Nagraj

#117 RP on 08.26.16 at 11:53 am

To #85

If there are about 30 million Canadians and each puts $300 in a deposit account the total is $9 billion. .. where are you getting $10 trillion from?

#118 Damifino on 08.26.16 at 12:21 pm

It’s official.

Another of Garth’s adversaries has left the building.

Harper should have called me in the spring of 2015. I’d have advised him to call it quits then. It’s possible we might now be dealing with only a Liberal minority government. Maybe.

I’d also have advised him to extend an olive branch to Garth. “Steve”, I’d say “that’s really not good way to leave things.”

But he never called.

#119 For those about to flop... on 08.26.16 at 12:42 pm

I drive downtown (Vancouver)as little as possible.

Parking rates and having a 11ft vehicle takes care of that,but I was surprised to see on Woeful T.V the other day that there are only two gas stations downtown and one of them is looking to close.

The greenies might say good riddance but if the last one goes then you will have thousands of people driving around just to fill up so it is kind of in the cities interest to keep at least two.(For competition)

That’s my 1.22 cents a litres worth…

M42BC

#120 NoName on 08.26.16 at 12:44 pm

#107 For those about to flop… on 08.26.16 at 11:24 am

our choice would be Suwanee or Marietta GA.

#121 Penny Henny on 08.26.16 at 12:44 pm

#107 For those about to flop… on 08.26.16 at 11:24 am
Well, we are getting a decent sample size but it is a bit more lopsided than I thought it would be at this stage with the myth that we all want to live as far south as possible just because a majority of Canadians live close to the southern border.
////////////////////////////////////////

VREU lives in the state of Denial.

#122 Context on 08.26.16 at 12:53 pm

I am going to disclose my second choice because its the #1 State in Amerika. The fishing and gold panning are an adventure to behold with an economy second to none. The lifestyle is diverse and you can even have a few young wives bringing in the green while you relax by the pool.

#123 Penny Henny on 08.26.16 at 1:03 pm

Just saw this on my credit card statement this month.
“Repayment calculation: If you make only the minimum monthly payment required each month, it will take approximately 33 year(s) and 0 month(s) to repay the balance shown on this statement.”

Ha the joke’s on them. I’ll probably be dead by then. Ha!

#124 Buy Low Sell High on 08.26.16 at 1:26 pm

Thank you to my fellow blog doggers, F.dover, Bram, and RP for pointing out the error of my math. And to think I even used a calculator! My morning coffee had not kicked in yet. Still, though, would never fathom a swipe from deposit holders. Cheers.

#125 Brazil ex-pat on 08.26.16 at 1:26 pm

Another snooze fest at the Fed today. Same old “The McJob and Starbucks job market is strengthening”

Reminds me of the Princess Bribe “Good job good work I will most likely kill you (raise rates) in the morning. For 5 years he said that to me (the Fed)”.

Unless the bond market pops……NO Fed hike.

#126 For those about to flop... on 08.26.16 at 1:30 pm

#117 Penny Henny on 08.26.16 at 12:44 pm
#107 For those about to flop… on 08.26.16 at 11:24 am
Well, we are getting a decent sample size but it is a bit more lopsided than I thought it would be at this stage with the myth that we all want to live as far south as possible just because a majority of Canadians live close to the southern border.
////////////////////////////////////////

VREU lives in the state of Denial.

:::::::::::::::::::::::::::::::::::::::::::::

Ha! The 51st state!

On that note ,I would not be surprised one day if California separated into Northern and Southern California.

Also for my post about driving downtown I see that I forgot to put 11ft high but you get the drift…

M42BC

#127 Ace Goodheart on 08.26.16 at 1:34 pm

Canadian “big five” banks will likely never fail. If you want to know why, read the Bank Act (they rewrite it every year). Banks have first priority of creditors. This puts them in the enviable position of getting first slice of the cake when someone or something goes belly up.

Banks’ major source of lending, residential mortgages, are also helped by our Government. The risky ones all require insurance. So again, their most potentially explosive assets, risky residential mortgages, are insured by the government.

The system is basically set up so that the only way our big five banks could fail, would be if our government outright failed.

On another note, Alberta is effing eff’d. Things look worse than everyone had originally thought. Apparently they really did have a “one horse” economy, consisting entirely of oil extraction and associated refining/delivery, and all of the industries that grew up around oil (housing, service, manufacturing, office, retail, etc, etc, etc) are now starting to fail. Things look incredibly bleak out there. Brutal.

We are lucky to have our own internationally traded currency that we can devalue at will. Otherwise this country is starting to look more and more like Greece.

#128 Bottoms_Up on 08.26.16 at 1:43 pm

#26 For those about to flop… on 08.25.16 at 8:14 pm
———————————————-
I think I’d go for Oregon or mid-Cali

#129 jess on 08.26.16 at 1:49 pm

more metaphoric devils
What goes around comes around ?
Crédit Lyonnais /executive life scandal?
http://www.economist.com/node/2245155
===================
Lucifer’s banker
bradley birenfeld – whisleblower ubs politically exposed politicans( peps)
Birkenfeld has since said that he was systematically prevented from giving testimony in open court – but this may be about to change thanks to the French authorities.
http://www.ibtimes.co.uk/ubs-whistleblower-exposes-political-prostitution-all-way-president-obama-1577834
================================
How about this one: who are the four PEP ?
….helped the US Treasury recover over $12 billion in back taxes, fines and penalties from American tax cheats.

#130 Tony on 08.26.16 at 2:30 pm

With a 30 percent fall in both Toronto and Vancouver there still would be zero buyers so obviously real estate will tank more than 50 percent in both places. The question should be how many credit unions will fail in British Columbia as they will be the first of many? I’m presently short Home Capital so I take what the rest of the world says seriously.

#131 Ponzius Pilatus on 08.26.16 at 2:32 pm

Just returned from a trip to Oregon and Washington State.
Sure, people are friendly but the food is awful.
And boy, are most people overweight.
Super sizing is everywhere.
Would not wanna be there when the health crises begins.
Will put all financial crises to shame.

#132 Ponzius Pilatus on 08.26.16 at 2:34 pm

Yeah, one trillion is a very large number.
That’s why the 17 trillion US debt is so scary.m

#133 Tony on 08.26.16 at 2:37 pm

Re: #106 tilkounz on 08.26.16 at 11:05 am

Newsflash: The birth rate is also falling with each passing year in Canada.

#134 Andrew t on 08.26.16 at 2:56 pm

#44 Jim on 08.25.16 at 9:06 pm
FBI Admits Clinton Used Software Designed To “Prevent Recovery” And “Hide Traces Of” Deleted Emails.

“They were using something called BleachBit.”

Smoking Man, how does it feel to be proven right?
—-
A source would be nice. But then we’d know the FBI said nothing of the sort (let alone “admitted” it) and this is an accusation made in an interview on Fox News with republican congressman Trey Gowdy, then spun by “Tyler Durden” on -wait for it–zerohedge.
In truth BleachBit is as nefarious as running Norton. Freakin’ amateur hour here.

http://www.zerohedge.com/news/2016-08-25/fbi-admits-clinton-used-software-designed-prevent-recovery-and-hide-traces-deleted-e

#135 For those about to flop... on 08.26.16 at 3:00 pm

#153 Context on 08.26.16 at 2:44 pm
Oregon is a basket case as those living there can’t wait to get out and those left behind are losers. Bend is where the wealthy retire from all over USA and lots of strange people live there. Its expensive living there and watch out for those weirdos.

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

#127 Ponzius Pilatus on 08.26.16 at 2:32 pm
Just returned from a trip to Oregon and Washington State.
Sure, people are friendly but the food is awful.
And boy, are most people overweight.
Super sizing is everywhere.
Would not wanna be there when the health crises begins.
Will put all financial crises to shame.

Sure ,these places have challenges but the question was not really about finding Utopia,more about do we wish to live as far south as possible.

I have roughly 17 answers with acouple of cryptic ones but no one has said Florida or Arizona year round as yet.
( At least 10 months)

There is no right or wrong answer, I actually thought the split would be roughly 50/50 but it is looking like the heat and cultural differences are holding sway.

Hoping to get 50 answers but Garth might want the afternoon off.

Hand it over to InLeweza and Robax…

M42BC

#136 jess on 08.26.16 at 3:15 pm

The Transatlantic Squabble Over Apple’s Taxes (26 Aug 2016)

state aid case /retro active tax fines

http://www.ft.com/cms/s/0/1081af60-69f3-11e6-a0b1-d87a9fea034f.html?siteedition=intl#axzz4ISmYNgp6

U.S. DEPARTMENT OF THE TREASURY
WHITE PAPER

https://www.treasury.gov/resource-center/tax-policy/treaties/Documents/White-Paper-State-Aid.pdf

====

#137 Freedom First on 08.26.16 at 4:04 pm

Yes. Smoking Man is a self admitted fabrication and fictitious habitual liar. However, he also has a certain flair for delivering the reality and truth of the world we live in today. Of course, people who have no cognitive thinking skills, as a result of intensive brainwashing from a young age, will be offended.

However, this is hardly an excuse for trying to shoot the messenger, as his musings on ALL of the earth related topics he brings up, are extremely accurate.

Also, for myself, Freedom First, I do indeed understand that in our Orwellian, Feminized, PC world of today, the speaking/writing of the truth is not only intolerable to the masses, but unrecognizable to them as the truth.

It does take a certain skill to deal with and adapt to dealing the masses of today, while remaining anonymous, but that is more than compensated by how easy it is to legally financially fleece the system.

Garth is an expert at it, however, look at the sh!t and abuse thrown at him daily. This is, of course, to be expected by all people who speak the truth. Never underestimate the intelligence of the masses. They are even dumber than that.

#138 TurnerNation on 08.26.16 at 4:08 pm

Blackish Monday anyone? The computers painted today’s tape.

:-0 :-) ;-)

#139 Smoking Man on 08.26.16 at 4:14 pm

#87 Zen Headspace on 08.26.16 at 7:02 am

Brilliant piece…… But be careful if you don’t have thick skin, doesn’t take much to unhinged the lunatic left on here.

And remeber when fighting to good fight.

You can’t bend what you can’t offend..

Dr Smoking Man
PhD Herdonomics

#140 Mark on 08.26.16 at 4:15 pm

“Banks have first priority of creditors. This puts them in the enviable position of getting first slice of the cake when someone or something goes belly up. “

Banks don’t inherently have the first priority of creditors (actually Revenue Canada, secured creditors when the bank loan is unsecured, personal injury claims, employees, and property taxes are often statutorily senior). However, the big-5, in their course of their businesses, usually seek out the highest quality credits possible.

This is why CMHC-insured subprime lending is so darn attractive to the banks. They are basically investing in government bonds with a fancy put option that guarantees that the investment, no matter what the interest rate environment or default environment, never goes beneath 100 cents on the dollar. A very valuable characteristic in a deflationary environment.

#109 WalMark of Sadkatoon on 08.26.16 at 11:26 am

Completely and utterly untrue and uncalled for. Shame on you.

#141 Seriously? Real Estate Price Bubble Is the Work of Media on 08.26.16 at 4:25 pm

Real Estate Price Bubble Is the Work of Media
http://www.news1130.com/2016/08/26/economist-blames-media-not-foreign-money-for-high-housing-prices/

#142 Jimmy on 08.26.16 at 4:36 pm

Impressive FIRST for Smoking Man.

How about….

LAST!

#143 puncho villa on 08.26.16 at 4:41 pm

http://ottawacitizen.com/news/national/man-disguised-as-hockey-goalie-robs-beer-store-in-Manitoba

Garth, this is a sure sign that the end is nigh, when goalies wander out of the crease to steal brewskies, …..

#144 Brazil ex-pat on 08.26.16 at 4:55 pm

#127 Ponzius Pilatus on 08.26.16 at 2:32 pm
Just returned from a trip to Oregon and Washington State.
Sure, people are friendly but the food is awful.
And boy, are most people overweight.
Super sizing is everywhere.
Would not wanna be there when the health crises begins.
Will put all financial crises to shame.

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

Most people in N.America are fat……

#145 Andreas Marouchos on 08.26.16 at 5:00 pm

I don’t believe bail-in are possible because nobody saves anymore – so the banks have no deposits to raid.

However, I did receive a notice from the bank I have a chequing account with (all my savings/investments are in reserve banks offshore), indicating that Cash and Numismatic Coins will no longer be accepted in safety deposit boxes.

How does the saying go again? Where there is smoke… there is a bail-in.

#146 Heather on 08.26.16 at 5:02 pm

@ #129

That’s why we’re ramping up the immigration and TFWs. No need to have labour impact assessments either, there’s no time apparently. :/

#147 ronh on 08.26.16 at 5:05 pm

Why would the government seize bank deposits and then have to pay them back under deposit insurance?

Very good point. However there is nothing stopping them from taking anything over the insured limit.
It was done in Cypress, mostly affected business. I’m safe.

#148 Sam the Sham on 08.26.16 at 5:25 pm

Garth says: “Even in the depths of the 2008-9 credit crisis, with the financial system facing a 1930s-style challenge and bank shares losing about half their value, none of them came remotely close to insolvency…”

That’s not correct. It’s a myth that Canadian bank were never in trouble.

From a CBC report: “…support for Canadian banks from various agencies reached $114 billion at its peak. That works out to $3,400 for every man, woman and child in Canada, and also to seven per cent of Canada’s gross domestic product in 2009… ‘At some point during the crisis, three of Canada’s banks — CIBC, BMO, and Scotiabank — were completely under water, with government support exceeding the market value of the company, … Without government supports to fall back on, Canadian banks would have been in serious trouble.’ ”

http://www.cbc.ca/news/business/banks-got-114b-from-governments-during-recession-1.1145997

That is patently incorrect. No bank came close to insolvency. No dividend was cut. — Garth

#149 crowdedelevatorfartz on 08.26.16 at 5:56 pm

@#140 Brazil ExFat
“Most people in N.America are fat……”
*******************************************
True.
Especially Mexicans , who seem to be making up for lost time in the Fatty Olympics and are hell bent on drinking sugary fizzy drinks by the gallon to beat their El Gordo “cousins” in the USA to the “gold” Medal podium.

Can Brazilian latinos be that far behind?
Nothing quite like seeing the samba performed by an obese favela chica in a lululemon ensemble………

#150 rjrt81 on 08.26.16 at 6:17 pm

#133 Freedom First on 08.26.16 at 4:04 pm
Yes. Smoking Man is a self admitted fabrication and fictitious habitual liar. However, he also has a certain flair for delivering the reality and truth of the world we live in today. Of course, people who have no cognitive thinking skills, as a result of intensive brainwashing from a young age, will be offended.

However, this is hardly an excuse for trying to shoot the messenger, as his musings on ALL of the earth related topics he brings up, are extremely accurate.

Also, for myself, Freedom First, I do indeed understand that in our Orwellian, Feminized, PC world of today, the speaking/writing of the truth is not only intolerable to the masses, but unrecognizable to them as the truth.

It does take a certain skill to deal with and adapt to dealing the masses of today, while remaining anonymous, but that is more than compensated by how easy it is to legally financially fleece the system.

Garth is an expert at it, however, look at the sh!t and abuse thrown at him daily. This is, of course, to be expected by all people who speak the truth. Never underestimate the intelligence of the masses. They are even dumber than that.

——————————————————————–

I got dumber just reading this. Its hilarious to see all the scared grumpy old white guys see their power dissolve in front of them. Ch Ch Ch Ch Ch Changes.

#151 bill on 08.26.16 at 6:47 pm

#131 For those about to flop… on 08.26.16 at 3:00 pm
for what its worth my wife and I intend to summer on the northern woods and water trail [with a side trip to visit friends on the rock] and head south to say Flagstaff AZ and as the weather gets colder at that altitude head down hill to ‘north of vegas’ somewhere in the desert… via camper van. basically we seek an answer to your question but arent sure yet where that is so we are going to have a look for ourselves [not Fla though-humid]
we would keep a residence in the B.C. coastal region [roughly Bella Coola to Vancouver ] somewhere….

#152 westcdn on 08.26.16 at 7:02 pm

Flopper,

I think Idaho would be fine for me, somewhere near the Snake river in the south of the state.

#153 Zen Headspace on 08.26.16 at 8:32 pm

#135 Smoking Man
“Brilliant piece…”
—————————————————————-
I am honoured. An unexpected compliment from the sanest commenter on this site.
Smoking man rules.
I feel vindicated and exonerated.
This could be the beginning of a beautiful friendship.

#154 Bytor the Snow Dog on 08.27.16 at 7:41 am

@146 rjrt81

You proved his point. Unwittingly, of course, but that’s to be expected.