Us & them

This week the feds’ economic update will crow about a lower-than-forecast budget shortfall, take credit for more jobs and growth and outline further ways to eat the rich. It will not promise to lower taxes, balance the budget or give you a pony. And it may be one of Bill Morneau’s last times on his feet as finance guy.

The multi-millionaire whose web of personal holdings shields him from the taxes he’s whacking others with is becoming a liability to Justin Trudeau. He threatens to taint the whole gee-shucks, ‘middle-class fairness’ meme the federal Libs secured power on. He reminds people the prime minister himself inherited family wealth and is a 1%er. Just like Bill. Meanwhile most citizens fret about debt and think about Sears.

On Monday a good reminder. A shocking one, actually. What a mess people have wormed themselves into. How can government ever solve what the Ipsos survey reveals?:

  • If interest rates rise, then 40% say they’ll be in trouble.
  • A third are already hurting, after a mere 0.5% increase
  • 42% reveal they can’t cover basic expenses over the next year without taking on more debt.
  • Four in 10 are within $200 of not being able to pay monthly bills
  • 38% of Millennials believe higher rates will bankrupt them
  • If rates swell, 70% assert they’ll be more cautious about spending.

Yikes. So the Bank of Canada’s now scared off from more rate hikes until early in 2018 – in large part because of B20, the NAFTA snafu, fading trade numbers and appalling levels of household debt. Meanwhile the Fed is 80% certain to raise the US benchmark in a few weeks, which should elevate long-term Canadian mortgage costs – just as the stress test takes effect.

So the gulf between the indebted, stressed-out, cashflow-challenged middle class and the entitled political elite yawns ever wider with each Bill Morneau revelation. (The latest is that he continues to receive over $1 million yearly in dividends and cash flow from his family biz – which excels in tax avoidance – while he serves as finance minister.) The rhetoric of increasing taxes on doctors, vets and job-creating small businesses is hard to swallow after the last few months.

In the House of Commons (which nobody care about anymore, alas) poor Bill is sliced & diced daily by the opposition. The fact he’s taken two years to put his assets into a blind trust, owns stuff (in Canada and offshore) within at least a half-dozen numbered companies, and practices aggressive tax avoidance displays stupidity or arrogance. Neither is a winning trait for a politician. Image is reality, after all. At this point Bill’s profile is of an out-of-touch monied elitist dude who’s telling the self-employed to eat cake.

It’s okay to be rich, of course. Trudeau is, having inherited millions. Morneau owns over $40 million in assets. He’s married to a billionaire family member. Lives in a mansion. So does Justin. That’s all cool. What hurts in politics is when you stop being one of ‘us.’

That’s how people get elected now. Us against them. Trump used it masterfully. It created Brexit. Catalonia. The populism that Angela Merkel fought. In Canada Justin Trudeau seized power from Stephen Harper by painting the Cons as them – the guys who forgot about your struggles, who spent more time worrying about rich buddies and their own skins than yours.

Hence the middle class theme that’s rammed through all government communications. It justifies a 53% personal tax rate for the wealthy, a 73% Hoovering of retained earnings, gutting of the TFSA limit and portraying the self-employed and professional class as serial tax cheats. Clever. Us good, them bad. And it almost worked.

But it’s not just about poor Bill, who was sabotaged by his own political staff and the weenies in the PMO. It’s more that the plan ain’t working. There’s no further proof required than that Ipsos poll referenced above.

If those numbers reflect the country as a whole, the middle class is in reverse. When four in ten families are within a few dollars each month of being insolvent, need more debt to get through the next year or would be bankrupted by a 1% rate hike, the government is failing them. Politicians have been real estate pimps. This is what you get. A home ownership rate of 70%, epic debt, and a middle class without cash.

The answer to helping the masses is not to shred the economic achievers among them. People need more incentives to save and invest, not to borrow and spend. If it’s not already too late.

It’s hard to comprehend such things when you’ve never struggled, started a business or had a mortgage. This is why Bill Morneau can’t last. He’s fake news.

220 comments ↓

#1 MIdnights on 10.23.17 at 6:40 pm

Wow, I’m first…
Keep up the great work Garth.

#2 Scarier than Halloween on 10.23.17 at 6:41 pm

Why we talking about taxes when we have people in Richmond, BC who drive BMWs, Mercedes, and Range Rovers stealing pumpkins from a hard working farmer?

His property is being plundered by the new wave of etiquette coming to a town near you. Lord help us.

http://www.richmond-news.com/news/bandits-in-luxury-cars-stealing-pumpkins-in-richmond-1.23069403

#3 Mike on 10.23.17 at 6:42 pm

My realtor called and said time to buy is now as I can’t afford a good home after B20.

You know what, with all whack in canada – he might be correct.

Credit unions can save the day for a year, and then B20 go away…and RE fun in Canada continues.

I have been following this blog and have been proven wrong by realtors since 2014.

#4 Pete on 10.23.17 at 6:44 pm

They should raise interest rates back to 6%. Whoever financially drowns , to bad for you. Sick of people living above their means while thinking they are smart. Time for economic reality to punish the stupid and reward those who are productive. This would be bad news for useless realtors, mortgage brokers and other’s in the FIRE industry.

#5 DOWNTOWN on 10.23.17 at 6:45 pm

Dont worry! CBC says we will be ok after interviewing realtors.

Long-term, I think that people will just adjust,” he told CBC Toronto.

“The reality is that it will affect a small number of people, but it’s not going to, in any way, damage the market.”

http://www.cbc.ca/news/canada/toronto/toronto-real-estate-mortage-rules-1.4366545

#6 Bob Dog on 10.23.17 at 6:45 pm

If interest rates rise 40% everyone would be in trouble. I would dance and sing though.

#7 Geofferson on 10.23.17 at 6:48 pm

My friend just closed on a property in Toronto with a $1.35 million mortgage and got a 5-year fixed rate of 2.15% from RBC. He just made the cut as that was about to expire and the new rate jumps to 3.2%.

#8 joblo on 10.23.17 at 6:48 pm

It is too late.
This thing called Kanada needs to take the medicine.
FAIL and rebuild.
Those with cash will vultch, yum.

#9 FOUR FINGERS WATSON on 10.23.17 at 6:48 pm

Garth, you just explained why interest rates are not gonna go up in any meaningful way.

#10 Doug t on 10.23.17 at 6:52 pm

The problem with most Canadians is that they have their faces permanently stuck in the trough of consumption and greed. They can’t stop buying sh*t even when they don’t need it – big truck, big tv, big house, big trips, stainless appliances, marble everything – they truly are stupid. When did this country become so American? How does a person NOT look in the mirror of self reflection and see the the problem they have become – its gross.

RATM

#11 young & foolish on 10.23.17 at 6:55 pm

“save & invest”? ….. that’s soooo yesteryear!

#12 conan on 10.23.17 at 6:55 pm

“If those numbers reflect the country as a whole, the middle class is in reverse” – Garth

Do you really think this economic mess will be solved with a Conservative Government, and their go to policy, trickle down economics?

Would not surprise me if the Liberals come out with an ad campaign based on a standard deck of cards.

“52 horrible or stupid things that the Harper Government did while in power.”

The Ace of Spades: Phoenix pay system.

#13 AGuyInVancouver on 10.23.17 at 6:56 pm

Garth, what do you think of holding Morneau Shepel as part of a TFSA? Seems to be a pretty consistent dividend earner.

#14 Stick Man on 10.23.17 at 6:56 pm

We are at the “I won’t sell any lower cause I don’t have to phase”. Followed by the “Waiting for it to come back to my price” phase to finally “I gotta sell now” fiasco. Let’s Dance.

#15 Love this Blog on 10.23.17 at 6:57 pm

Bye Bill. Please LET the door hit you on the way out

2019 the rest will go

Crooks

#16 Craig on 10.23.17 at 6:57 pm

Fack! You are an awesome writer. Lol

Fake news

#17 Trawna on 10.23.17 at 6:58 pm

“I’M the alpha! You’re fired!” – JT

#18 Dolce Vita on 10.23.17 at 6:59 pm

“sabotaged by his own political staff and the weenies in the PMO.”

Well, that explains it. He’s dumber than I thought possible.

Add to that the fact he would not relinquish control of his assets tells you a lot about what he values in life over serving the Canadian people.

Nepotism just met its match, the court of popular opinion and the outrage of hard working Canadian entrepreneurs & professionals.

To these two trust fund rich boys it was all talk as they personally would not be inconvenienced. Good to see Canadians sprouted a few. More to come I hope.

#19 Andrew Woburn on 10.23.17 at 6:59 pm

Perhaps T2 and Billy should talk to hedge fund hero, Ray Dalio.

“The Federal Reserve should more closely monitor the economic struggles of the bottom 60 per cent of the economy when making policy since “average statistics” are camouflaging what’s really occurring in the U.S., billionaire Ray Dalio wrote in a report Monday.

Dalio noted wide disparities in factors including labor, retirement savings, health care, death rates and education between the top 40 per cent and bottom 60 per cent of the country. The founder of Bridgewater Associates said it would be a “serious mistake” for the Fed to just focus on a national average as it could lead the policy makers to see a brighter economic picture than the reality.

“Because the economic, social, and political consequences of an economic downturn would likely be severe, if I were running Fed policy, I would want to take this into consideration and keep an eye on the economy of the bottom 60 per cent,” Dalio said in his Daily Observations report.

http://business.financialpost.com/investing/ray-dalio-makes-a-case-for-viewing-the-u-s-as-two-economies

#20 Bill Morneau is not fake news on 10.23.17 at 6:59 pm

He is certainly a fake, but that is not news.

#21 Jungle on 10.23.17 at 6:59 pm

Would you say he’s rich untitled, lucky sperm club?

Btw, there is no middle class anymore. Not like you boomers had anyway, it’s now called “working poor”

#22 Timmy on 10.23.17 at 7:00 pm

Morneau is using numbered companies to hide his assets? That’s no different than all of those people who use numbered companies to buy real estate. Half the most expensive houses in Vancouver are owned by numbered companies. Andy we wonder why housing is so expensive in Vancouver, lol…That’s why the Liberals are doing nothing to change our lax laws on money laundering through real estate. Maybe Bill owns a few houses in Vancouver.

#23 Jimbo on 10.23.17 at 7:00 pm

So if the finance minister passes away and hands his numbered companies down to kids as an inheritance how much would they save on taxes?
French villa worth say 3 million just to pull a number. If handed down from father to kid would that be taxed at 20% or 40% but if company 1265347 who owns villa passes it down is the %age much less? Also if you put all your money in a trust fund that pays out x dollars a year while making x% a year in income is that taxed less than say I pass down 2 million in cash and you can invest it??

#24 rknusa on 10.23.17 at 7:00 pm

re: So the Bank of Canada’s now scared off from more rate hikes until early in 2018 – in large part because of B20, the NAFTA snafu…

read between the lines, NAFTA round 4 has been delayed for three weeks and negotitations have been extended into the first quarter of next year, Trump wants tax reform passed by the New Year, then he will announce his withdrawl from NAFTA in the new year, one initiative at a time

then the Bank of Canada does a rate cut to lower the dollar and stimulate exports

#25 Chico on 10.23.17 at 7:00 pm

I watched the documentary “Vancouver: No fixed address” the other day. Someone on this blog posted the link and it’s quite shocking to see what Vancouver and TO have become when it comes to real estate costs.

On the same issue, a television reporter in TO had her rent increased in the last year from $1650/month to $2600/month, and there was nothing she could do. It’s insane!

#26 Silver on 10.23.17 at 7:04 pm

Thank you

#27 Stone on 10.23.17 at 7:04 pm

What a mess people have wormed themselves into. How can government ever solve what the Ipsos survey reveals?:

– If interest rates rise 40% say they’ll be in trouble.
– A third are already hurting, after a mere 0.5% increase
42% reveal they can’t cover basic expenses over the next year without taking on more debt.
– Four in 10 are within $200 of not being able to pay monthly bills
– 38% of Millennials believe higher rates will bankrupt them
– If rates swell, 70% assert they’ll be more cautious about spending.

——

This may seem harsh but what does anything noted above have to with gouvernment? Why is it their problem to solve? Silly sheeple living above their means caused the above problems. A lack of wanting to improve their lot, set limits on their consumption habits and instead use credit as a crutch to creat a false lifestyle is the actual culprit.

It’s not about us and them. It’s not about Bill Morneau. It’s about sheeple who need to take some responsibility for the consequences of their actions.

For those that the above points apply, you know it’s true. Stop the denial. When you do, life will get better. Maybe a reset will do many sheeple some good.

#28 Wait There on 10.23.17 at 7:05 pm

I don’t believe the polls.
I see more fancy luxury cars being driven by more people than two decades ago. Who’s kidding who. People all have fancy iPhones.
It’s the same We and them.
Yeah, I am sure THEY will be hurting when rates increase. That’s them. Us, ee are doing fine but Somebody Gonna Hurt…them. Not US, but THEY will hurt.

#29 When Will They Raise Rates? on 10.23.17 at 7:06 pm

He broke the law when he failed to disclose. Why is he not being charged? Why is he still the finance minister? Why should Canadians abide by the law when the government itself doesn’t?

LOCK HIM UP!

#30 Sam the Sham on 10.23.17 at 7:06 pm

“When four in ten families are within a few dollars each month of being insolvent, need more debt to get through the next year or would be bankrupted by a 1% rate hike, the government is failing them.”

Well there’s always pay day loans. The annual interest rate only work out to about 596%. It really amazes me that the government allows this type of predatory behavior against desperate people, most of whom are pathetic renters. This should be made criminal.

#31 Sitting on the toilet thinking on 10.23.17 at 7:08 pm

#3 life ain’t a race it’s a marathon. If you remember that you will be fine.

#9 why does everyone think it matters what the BOC does. If they don’t raise rates and the fed raises our dollar get whacked. So it doesn’t matter weather you pay 200 dollars extra a month on your mortgage or 200 dollars extra on food gas and anything else that’s a commodity.

#32 Randy Randerson on 10.23.17 at 7:09 pm

Waiting for the inevitable RE fire sales because money trouble is the biggest cause of divorce.

Who says RE will never come down, or “I will never sell unless it’s the price I want”.

#33 MSM-Free Zone on 10.23.17 at 7:10 pm

Now that the promising left-wing Liberals vT.2, in just half a term, have quickly proven themselves to be just the same masters of hypocrisy as the right-wing Cons they so recently replaced, it’s obvious this country will be soon be ripe for the same kind of cancerous alt-nutbar leadership currently plaguing our neighbours to the south.

#34 N on 10.23.17 at 7:10 pm

“How can government ever solve what the Ipsos survey reveals”

The only way I see the nation saving itself is by introducing 25 year or 40 year mortgages. Don’t know what it would take to do it, but there will be political meddling in the mortgage market to make this happen.

#35 Eyestrain on 10.23.17 at 7:10 pm

It appears that others have noticed an increase in the quantity and decrease in the quality of the posts on this blog. One post per person per topic should be sufficient, but if you MUST excrete more than one, at least wait for the applause to die down. The use of Latin phrases only confuses the poorly educated; improper use irritates the well educated, ipso facto. Original ideas are very rare. Find the original and provide attribution.

“The kind of man who wants the government to adopt and enforce his ideas is always the kind of man whose ideas are idiotic.”  HL Mencken

A brief summary is worth its weight. For example, the World According to Garth can be encapsulated in song.
“Poor man wanna be rich. Rich man wanna be King. And a King ain’t satisfied till he rules everything.”
B Springsteen

Finally, before you post your pearls make a mental image of a wastebasket below a sign reading “Do Not Litter”.

#36 The real Kip on 10.23.17 at 7:11 pm

OSFI rule changes will do ziltch to the real estate market. If they rock the boat too hard they’ll get their swizzle sticks taken away. Can’t have that now can we?

#37 crowdedelevatorfartz on 10.23.17 at 7:11 pm

I work with several people that live paycheque to paycheque.
Zero savings.
Creditors hounding them.
Yet they “qualify” for car leases/loans, cell phone/internet plans, credit cards, and on and on and on.

Credit is way too easy to get and the consequenses of nonpayment seem minor……
Retirement?
Pffft!
Only if they win the lotto.

#38 akashic record on 10.23.17 at 7:12 pm

“The populism that Angela Merkel fought.”

Angela Merkel may have “fought populism”, but her “fight” had a way more powerful historical impact: she created and galvanized the critical mass for Brexit, Trump, etc.

What did she do to achieve this?

Her branded version of “Us & them”, of course.

#39 EP on 10.23.17 at 7:13 pm

Garth, can you set up a patreon account so we could drop in some $ and buy some adds for this blog. We need to get the word out, way more people should read this!

All funds can be placed in a blind trust and we can vote where/what adds we should buy. Hopefully, they don’t find a way to tax the crap out of it though.

Cheers!

#40 Leo Trollstoy on 10.23.17 at 7:13 pm

Voters aren’t very bright.

There’s a party for the rich and another party for the rich.

Plebs easily conned

#41 Investx on 10.23.17 at 7:14 pm

Looks like we’re back to prolonged period of low interest rates!

#42 NOTHING SURPRISES on 10.23.17 at 7:23 pm

As a senior, I reflect back on the number of political leaders Canadians have had from all parties over the years that are completely incompetent and ask why we keep electing them!

I haven’t the answer.

#43 mark on 10.23.17 at 7:24 pm

Nice post Garth.

#44 Ken on 10.23.17 at 7:24 pm

We need more individuals such as Garth in politic’s.
More ethics, honesty and insight.
Today’s post absolutely epic Garth !

#45 I’m stupid on 10.23.17 at 7:25 pm

If you look at the difference between CEO pay vs average worker pay it’s been widening for decades. I was thinking about this today and I have a theory. Unproven but makes sense. The middle class savings rate has been declining for decades. Could it be that the decline in savings has resulted in hire pay for top executives? It makes sense since if you choose to spend your dollar someone will get it.

Legislation will not fix stagnant wages if everyone has no savings because an employee can’t negotiate a fair deal if he/she is living on credit. It’s a chicken and egg senario. Unless society begins to reduce consumption for savings most will spiral down.

#46 Nick on 10.23.17 at 7:25 pm

“Politicians have been real estate pimps. ”

You got it! Finally!

#47 Dolce Vita on 10.23.17 at 7:29 pm

#7 Geofferson

$1.35 MM, 20% down ($270,000), 2.15%, means total interest over 25 yr amortization = $315,547.19.

If Garth is correct about B20 dropping prices by 20%, that place will drop in price to $1,080,000.

Thus $1,080,000 at 3.2%, 20% down, means total interest over 25 yr amortization = $252,437.75 and downpayment difference is = $54,000 ($270,000 – $216,000).

So, if Garth is correct about a 20% price drop, your friend just signed a deal that:

Extra Downpayment = $54,000
Extra interest paid, 25 years = $63,109.44
Home value lost = $270,000

Total Loss, including paper loss = $387,109.44

Your friend better hope B20 changes nothing & Garth is wrong.

#48 Gentle ,Loving Kindness on 10.23.17 at 7:29 pm

Thank You for a prospective article.

#49 Dan.t on 10.23.17 at 7:31 pm

If those numbers reflect the country as a whole, the middle class is in reverse. When four in ten families are within a few dollars each month of being insolvent, need more debt to get through the next year or would be bankrupted by a 1% rate hike, the government is failing them. Politicians have been real estate pimps. This is what you get. A home ownership rate of 70%, epic debt, and a middle class without cash.

———————-

I don’t get it. Just buy a house and get rich!

It might even be rewritten into Canada’s constitution. Because anytime trouble creeps up, the government intervenes. Like, lets go 0 down, 40 years, liar loans, let realtors self regulated, change every rule with regards to credit risk, let CMHC cover the banks, ok debt and fraud and money laundering rampant, no one can realistically afford a home, Christy Clark will give you 37k to buy that condo, who cares if you have no money, I mean, it’s only debt. Guilt Mom and Dad into a few 100k if you have to, who cares, just as long as you get a sweet piece of RE.

Don’t worry about it. Obviously insane high house prices are awesome and the higher the rents, the better.

Curious though if anyone knows the end game. I mean it was designed to be this way. So there is obviously a very clear end game. I don’t see incomes rising to let a young family of four live around YVR or many other cities (realistically) without massive debt burden and or access to massive credit.

It seems they are slowing taking the credit away…ever so slowly…like slowly taking candy from a baby.

I just don’t understand why Canadians love, and I mean love debt. That is the impression I get.

I think the plan is simply to inflate all those boomer liabilities away. Make money worthless, pay gov obligations back with toilet paper and just get through somehow the next 10-15 years.

Or maybe they will just let everyone off and say, don’t worry about all that debt, just to really bury those stupid savers. That has been the plan for 16 years, why not really finish them off.

The lesson, reckless spending good, saving and living within your means, bad. Look to the gov and do as they do… of course they can just print money and raise taxes, you might not have it so easy.

#50 X on 10.23.17 at 7:32 pm

The US Fed could have pulled the trigger on 2 rate hikes potentially by May 2018….fairly high risk for those hoping mortgage rates don’t rise.

#51 BC_Doc on 10.23.17 at 7:33 pm

Morneau forgot to disclose his company which holds the French villa to the Parliamentary Conflict of Ethics Commissioner (sic). I wonder if he remembered to disclose it to the CRA when he filed his personal tax returns for the years in question. Will the Opposition now call for him to release his tax returns to the public? As a tax payer, I would like to know if he is paying his fair share. Does he owe penalties to the CRA?

https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/foreign-reporting/foreign-income-verification-statement.html

https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/foreign-reporting/table-penalties.html

#52 Cheap Construction on 10.23.17 at 7:40 pm

Interestingly, constructing a house is pretty cheap, no matter where in the US.
Even in SFo or San Jose it’s only 300K or so to construct a home on average.

https://www.buildzoom.com/blog/paying-for-dirt-where-have-home-values-detached-from-construction-costs

I wonder if Canadian construction is similarly cheap.
I get the impression that in Vancouver, both the land and the construction costs are at a premium.

#53 Entrepreneur on 10.23.17 at 7:40 pm

“People need more incentives to save and invest, not to borrow and spend” and “Politicians have been real estate pimps” above article.

People that borrow and spend that money on houses are not helping the economy in a constructive way, a reckless driver. But the savers and investors are capable of different avenues to pursue. But not in this unrealistic housing price that limits only one avenue.

We need leaders that have their “feet on the ground” and know how to lead. And time to support the middle class by supporting the small business and do it the first time correctly.

One, two, three you’re out!

#54 YVR - 60% crash on 10.23.17 at 7:44 pm

“Four in 10 are within $200 of not being able to pay monthly bills
38% of Millennials believe higher rates will bankrupt them
If rates swell, 70% assert they’ll be more cautious about spending. ”

Fake news again!
In YVR, most restaurants are full any days of the week. Everyone drive a German car, top of the line smart phone and wardrobe. That are the cold hard facts. lol!

#55 Cheap Construction on 10.23.17 at 7:46 pm

#25
and there was nothing she could do.

She could move to the suburbs?

Supply and demand set (and should set) the price.

#56 Zapstrap on 10.23.17 at 7:46 pm

#2 Scarier than Halloween on 10.23.17 at 6:41 pm

Why we talking about taxes when we have people in Richmond, BC who drive BMWs, Mercedes, and Range Rovers stealing pumpkins from a hard working farmer?

And not to forget the “free salt fiasco” in Van last winter.
Still watching and laughing.

#57 the Jaguar on 10.23.17 at 7:46 pm

I don’t see Bill Morneau going anywhere. He won’t be thrown under the bus, nor should he be. Trudeau will stand by him. There is nothing egomaniacal about Bill Morneau. He’s there because he was asked to serve. He certainly didn’t take the job for the daily flogging he has been getting, but I don’t see him as a quitter either. I can admire that. And since when did it become a sin to be rich? Or be married to someone rich? Hang in there, Bill. I like your style.

#58 Rexx Rock on 10.23.17 at 7:47 pm

In the real world,Bill Morneau would have been fired.Canadians are stupid,naive and just lazy to do anything about his bs.Canadians get everything they deserve,debt,bad healthcare,crime and punishment,corruption and high taxes.I want to vomit every time I hear T2 speaks.

#59 Linda on 10.23.17 at 7:47 pm

As a number of commenters correctly point out, people have to take responsibility for their own decisions. It doesn’t matter if ‘the government’ ensured ultra low interest rates etc. Did anyone actually force these people to snorffle debt up to their eyeballs & beyond, or did they just dive into the trough of their own free will, with the expectation they could have their cake & eat it too.

I understand the desire to have the goodie now. I really do. It is very hard to see ‘everyone else’ enjoying the goodies while you live a life of denial, because your desires exceed your actual ability to afford them. But to cry foul for ignoring what that soul sucking little voice of reality is telling you is simply not on. It isn’t ‘their’ fault that you are living from payday to payday, or not even making ends meet. It is that you took a chance you could manage the debt you signed up for in the hopes that the interest rate ‘lottery’ would let you win the game.

#60 Habbit on 10.23.17 at 7:52 pm

Ya gotta wonder how long government has been failing people. Oh it started two years ago? Do tell lol

#61 Doug t on 10.23.17 at 7:52 pm

#57

LMFAO nice troll nice

#62 Nonplused on 10.23.17 at 7:53 pm

#2 Scarier than Halloween

Is nothing sacred anymore? Oh well the Mercedes drivers may as well help themselves to the pumpkins before Turdeau and Moroneau take them all. After all the guy probably operates as a small business, so according to liberal theory he must be a tax cheat.

My question is does he have to pay taxes on the stolen pumpkins too? After all those pumpkins should have generated income tax, GST, provincial sales taxes, property taxes, and of course the co-op that would have eventually sold them has corporate taxes to pay and salaries to pay which are also subject to taxes. Each stolen $2 pumpkin probably represents $4 in lost tax revenue! Why should the farmer be exempt from those taxes just because he’s letting people steal his pumpkins? Somebody has to be responsible or the system just isn’t fair to all those people who didn’t have their pumpkins stolen. Turdeau should send a truck in to collect all the remaining pumpkins before the rest of them get stolen.

#63 Prophecy on 10.23.17 at 7:53 pm

“Morneau owns over $40 million in assets. He’s married to a billionaire family member. Lives in a mansion. So does Justin”

Even Bill Morneau’s daughter Clare Morneau is an active radical feminist working under the cause of the UN Globalist agenda.

If she supports feminism so much, why doesn’t she hate her father’s wealth since that is “patriarchy”…Why doesn’t she hate on Morneau, Sheppel Inc?

The hypocrisy of these fem liberals! How does Bill Morneau feel of destroying African communities through gender warfare? Why doesn’t he check his white male privilege this time rather than hassle Black-owned barbershops across Toronto for extra taxation?

#64 For those about to flop... on 10.23.17 at 7:58 pm

Halloween on 10.23.17 at 6:41 pm
Why we talking about taxes when we have people in Richmond, BC who drive BMWs, Mercedes, and Range Rovers stealing pumpkins from a hard working farmer?

His property is being plundered by the new wave of etiquette coming to a town near you. Lord help us.

http://www.richmond-news.com/news/bandits-in-luxury-cars-stealing-pumpkins-in-richmond-1.23069403

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

You don’t understand.

They can’t afford to spend extra money on pumpkins because they have a Pink Pumpkin for a house…

M43BC

#65 David on 10.23.17 at 8:01 pm

DELETED

#66 wooflife on 10.23.17 at 8:08 pm

I still remember, 8 years a ago a wise man telling me “It’s same everywhere, they(our politicians) just make it subtle here”. It’s pretty sad to see people fall again and again for “divide and conqueror”.

#67 [email protected] on 10.23.17 at 8:11 pm

Borrowing and spending is what moves an economy; growth requires the creation of credit. Where’s the demand going to come from for all these entrepreneurs?

#68 TAX AND SPEND AGAIN on 10.23.17 at 8:12 pm

People haven’t figured out the main reason they are short of funds is because of taxes a persons largest monthly expense. Yet they keep electing tax and over spend politicians. Time to wakeup people.

#69 PastThePeak on 10.23.17 at 8:14 pm

#49 Dan.t

The western governments have already tried to spark large inflation to try and dig their way out of debt. Huge quantitative easing (aka “printing money”) by the trillions. However, it didn’t work (at least yet). Inflation (at least at the gov’mints measure it) is contained. Doesn’t seem like anyone really knows the reason (globalization, aging society in the west, all gone to asset bubbles…).

Whether inflation takes hold, or the asset bubbles burst, the party will end…it always does. If the Ipsos poll is reflective of reality, then millions will be in very tight financial trouble…

#70 M on 10.23.17 at 8:20 pm

Morneau doesn’t matter. Nor Trudeau…nor Harper as a matter of fact. Popular distortions fed by ready-made-for-consumption schools system. Cheap money. Lack of assumed responsibility.. etc etc etc
It’s a social trend that didn’t start yesterday…nor under Trudeau..or Harper… you gotta go back 40 years or so.
The “established” thinking is the result of time passed.

Smarts ,.. much like redemption..is individual.
Once in the herd it becomes meaningless.

.. universities imbued of marxism of all nuances, the low level of literacy, propaganda… all the good things :)

It’ll all come to a head in a colossal cloud of dust..and a big smoking hole in the ground. And this is actually a very good thing. Depressions are ways to remind “tza masses” the value of work and frugality, the best way to burn mountains of unproductive debt and reallocation of resources from incompetent to the competent people.

…when people pay 15K/yr for useless degrees at useless schools, holding trades in despise, calling engineers and scientists “nerds” and models to follow are the pop culture of “yo bro” and tatoos.. this is what you get my friend.

But lay at rest… fortunately..the long, inter generational road to “social redemption” started last year in May. It just need time to set it up.

Enjoy the show and make a quick and easy buck…

#71 Economystical on 10.23.17 at 8:21 pm

Today’s blog is just a bunch of scare-mongering. No greater device has ever been invented than the minus sign. It is even more powerful than the zero. In fact, it has removed the zero boundary from all things economic!

Prior to the invention of negative numbers, individuals and governments alike were bound to the concept of positive money, or the idea that you couldn’t spend money you didn’t have. This was terribly restrictive. It meant that people had to stop spending when they ran out of money, governments couldn’t spend money they didn’t have, and corporations that operated at a loss had to eventually shut down. Think of all the jobs lost! Now, with the minus sign, all that has been changed!

Sure, certain short-sighted shareholders might shut down an operation like Sears because the losses have continued for so long and they don’t understand the power of negative numbers. But this is short sighted. Even the oil patch has learned that profits are not really necessary. All you need to do to pay your annual dividend is borrow more money! And what is money but a few scribbles denoting a number on a piece of paper or an electron in a memory bank or a magnetic charge on a hard disk? Are we ever going to run out of those? No, we won’t, so all we have to do is borrow more.

Why should a hard working or even a not so hard working Canadian be denied all of the benefits of modern life including cars, houses, iPads and iWatches, internet, Root Beer, fly away vacations, plastic surgery, fashionable clothes, and spray on snow chalk just because of the artificial zero boundary in finance? It is so short sighted. Just embrace the power of the negative number! After all, it’s just a number in a computer somewhere, whereas the snow chalk is real in the here and now. You’ll never really have to pay it back. As the great legend Keynes himself observed, “In the long run we are all dead.” And he was right. His great genius was in realizing that no debt needs come due until after you are dead, so you may as well borrow as much as you can while you can still sign the forms. If you live a little longer than you expected, just roll the debt over again.

Even creditors have realized that the principle need not ever be repaid. Thus, as a lender, you don’t ever seriously consider getting paid back the principle, only the interest. Why would you want the principle back? Are you going to pile the cash up under your mattress? This is foolish when you can convert the paper into future revenues simply by lending the money to some poor family that needs the money to go on vacation.

Folks, do not fear debt. We have made everyone wealthy by just sticking a – in front of all numbers. And we’ll never run out of zeros so why stop? This is the magic of the system. Great wealth can be created by taking a simple positive $100, adding a minus sign (-$100), and then simply adding some zeros (-$1,000,000). Add as many zeros as you like! This in fact was the greatest invention in the history of mankind, and Economystics is to thank for it. We are all now as rich as we want to be just by utilizing the minus sign and the zero. Those poor fools who fail to embrace the modern magic of economystics have only themselves to blame if there isn’t a new BMW in the garage. The cars aren’t going to drive themselves of the lot (or at least not yet), so go get yourself a minus sign and a few zeros and set yourself free to live a life of abundance!

#72 Danny on 10.23.17 at 8:27 pm

Last night on CBC 10 PM news…..a strategist for the Conservative Party….when talking about the middle class said…..Canadians are quite happy because their houses are worth so much more these days…they are so rich…like never before.
Obviously he is not reading your blog.
Too bad…..he is not too concerned about personal debt…..and he advices the Conservative Party…..so which way do they lean…?
Probably keep interest low…..encourage spending…drive people in debt…..make sales people and producers of goods much richer….not caring about the future and the inevitable down turn…..Oh…..but then they will blame Trudeau when the going gets tough……not the conservatives who were and are pleased to keep interest rates down…..and housing prices up….
Wonder any connections by Conservative Party to the Real Estate Cartel? …..just check some of the development industry and yes their names come up.
Many like them are fighting desperately to paint a rosy picture regarding housing as the best investment.
Definitely not your perspective or mine Garth.

We saw it in America…..our time will come….when those same people will run for the hills….and cry for Government help.

#73 3s on 10.23.17 at 8:28 pm

The answer to helping the masses is to let them drown. They are like locusts that will consume everything (including the rich) put in front of them if you let them. The elite should unite – like they always do and prepare their strategy to throw the patient a lifeline at the last moment, when they are prepared to sell their soul for it and worship their rescuer like God.

#74 Spock on 10.23.17 at 8:28 pm

He does not need to show it in his personal taxes. There is a reason why it is owned by a numbered company.

Pretty sure the villa is not rented out so no income for the numbered company either. Not sure where the company is incorporated. At the most the numbered company would file a T1135 for foreign asset over $100K CAD.

Disclaimer : the arrogance shown by both T2 and Bill offends me. But they know how to play the game.

———————-

#51 BC_Doc on 10.23.17 at 7:33 pm
Morneau forgot to disclose his company which holds the French villa to the Parliamentary Conflict of Ethics Commissioner (sic). I wonder if he remembered to disclose it to the CRA when he filed his personal tax returns for the years in question. Will the Opposition now call for him to release his tax returns to the public? As a tax payer, I would like to know if he is paying his fair share. Does he owe penalties to the CRA?

#75 John G on 10.23.17 at 8:31 pm

Regarding Morneau’s tweaks…Does anyone know if ***capital gains*** realized on passive investments within a corporation also benefit from this new $50,000 threshold or is it just passive interest/dividend income?

For example, if my business buys RBC bank shares, sells them and makes a $10,000 profit, does this under $50,000 threshold come into play, so that the corp gets the same treatment it used to get (1/2 tax free dividend)

Income is income, whether in interest, dividends or capital gains. — Garth
—————————————-

Thanks for the reply Garth. But currently cap gains in a Corp result in half being income (yes and ‘income is income’) and half being a tax free dividend. And I’ve heard that they’re getting rid of the tax free dividend. Is that still the case, or has last weeks backtracking by the feds improved the situation for ap gains taxing within a Corp?

#76 Rgeezie on 10.23.17 at 8:32 pm

Hey Flop I think you may not find much pink snow or pumpkins for 1842 TRENT AVENUE, Coquitlam, V3J 2K3 – MLS® R2211248. This Coquitlam shack sold for 1.3million after listing for 1088 (notice the 8s). I know people on this blog are trying to wish their way to a market correction or return to reality for the YVR market but it won’t happen. Regular working people like me cannot afford to live in the lower mainland. We have been sold out by our government and until they decide to put in rules to regulate foreign investment no changing mortgage rates, OSFI regulations or stress tests will help. I say this as someone who is a homeowner and has seen my property value skyrocket; unfortunately my neighborhood is becoming devoid of other kids for my kids to play with, neighbors to make friends with etc… But hey the Mercedes dealership is happy….

#77 Cto on 10.23.17 at 8:33 pm

Gee.
I wonder who in Richmond would be driving BMW’s, rang Rovers???? Just asking???

#78 Cto on 10.23.17 at 8:34 pm

Stealing pumpkins!!!!!

#79 Blacksheep on 10.23.17 at 8:36 pm

Dan T. #49,

“Because anytime trouble creeps up, the government intervenes. Like, lets go 0 down, 40 years, liar loans, let realtors self regulated, change every rule with regards to credit risk, let CMHC cover the banks”
—————————————–
See, Dan T. gets it.

This may seem like sarcasm to many, but the fact is, this is pretty much the cold hard truth…..

Come on folks, time to accept the game is rigged and the name of the game is, political self preservation.

#80 dr. talc on 10.23.17 at 8:37 pm

DELETED

#81 For those about to flop... on 10.23.17 at 8:38 pm

This is what howmuch reckons will happen if the Orange Octopus gets his way…

M43BC

“How Trump’s Tax Plan Will Affect You. Guess Who Benefits?

Albert Einstein quipped that the most complex math in the world is on your income tax return. With all the recent discussion about tax reform dominating the news, we thought it would be helpful to consider President Trump’s plan as it affects your personal finances. So we created a new viz to help clarify the situation.”

https://howmuch.net/articles/how-trump-tax-rate-changes-affect-you

#82 Jim Z on 10.23.17 at 8:44 pm

true story? I have a niece and her beau. who just signed on to a house? spent the first 2 weeks eating supper at mothers because neither had a pay check coming in for 2 weeks? curious how they will manage the inevitable surprise repairs? Bank of mom? what was i thinking:)

#83 Tony on 10.23.17 at 8:46 pm

The new B20 OSFI rules will affect high end real estate the most. Those numbers will skew the monthly prices lower. The real problem was millennials in Canada paying too much that’s what they need to target.

#84 Keith on 10.23.17 at 8:48 pm

@ #58 Rexx Rock

“In the real world, Bill Morneau would have been fired.” Yes, and he would have floated down to earth with an 8 figure golden parachute, negotiated with a compensation committee stacked with friends from his university class. Paid for by consumers and shareholders. Crony capitalism is the best.

#85 akashic record on 10.23.17 at 8:51 pm

#24 VanIsleStyle on 10.22.17 at 5:31 pm

#9 Stan Brooks – You’ve been watching too many sci-fi shows. You havent done the work so you don’t know what’s involved in a tech doing service calls. I can guarantee you there isn’t a service trades person around who is fearing their job security. The type of robot required to do the work of a trades service person would be on par with Data from Star Trek. Will we be seeing that in our lifetime ??

—–

The first step of automating an industry is to standardize the parts, processes to land themselves for automation.

Ford’s assembly line was created for people, but it allowed to translate it to machines and introduce robotics very easily and rapidly.

The pre-automation “assembly line” stage has been taking shape in most industries.

Today my boiler can diagnose itself with extensive list of error codes. That’s the beginning that will follow with modular swap in and out component design, once the goal is set to automate assembly and repair, instead of people tinkering with each parts and bolts.

Entire industries (plumbing, electrical) have been designed to manually touch every single piece by trades persons on purpose. These industries have been held back even from the assembly line stage.

But once the philosophy changes, automation and robotics will follow very fast.

#86 Bdog on 10.23.17 at 8:55 pm

#2 – Pumpkin thefts unique in Richmond huh? lol. How pathetic.

#87 Pete from St. Cesaire on 10.23.17 at 8:57 pm

Inflation (at least at the gov’mints measure it) is contained. Doesn’t seem like anyone really knows the reason (globalization, aging society in the west, all gone to asset bubbles…).
—————————————————————
Here’s where the QE went:
1) The housing bubbles (your bread still $3 but dumpy houses are $1.5 million)
2) The hugely overinflated stock markets. (Just a way of kicking the can further down the road and elongating the road at the same time.)
3) The education bubble (Every re-payment made reduces the available money supply; the young are helping to backstop hyperinflation)
4) The car market bubble

These 4 bubbles are the reason that the money hasn’t flowed down to people’s pocketbooks and started a Zimbabwe style hyperinflation. All of the money is locked up safely (until the crash) in stocks and houses. And every mortgage and loan made is essentially just more QE.

#88 stage1dave on 10.23.17 at 8:58 pm

Great read, Mr. Turner…like Galbraith with attitude!

Not having a twitter account makes me feel out of the loop; as if I’m not really current, y’know? Then I remember most of the “news” isn’t really worth paying attention to anyway.

I’m not alone, apparently…was workin on a 51 merc last friday and was the only dude in da garage who could name the last six Alberta premiers…sigh…amongst a crew of 50 somethings. Maybe its the thinner fumes destroying brain cells? Or does it just not matter anymore?

Anyway, still renting, still debt free, still wondering when all this idiocy will end…in the meantime, life continues and we enjoyin it!

#89 Ace Goodheart on 10.23.17 at 9:05 pm

Things appear to be going from bad to worse for our unfortunate finance minister. Apparently Bombardier, that received 370 odd million dollars in interest free govt money last year, is a client of Morneau Shepell (see their logo at the bottom of the page):

https://bt.hroffice.com/ms/common/Logon.ASP?LOG_URL=/Default.asp

So we have this dude on one hand proposing to tax the crap out of those who are not clients of his family biz.

On the other hand, clients of the biz get free money, which money is actually our tax dollars (yup, an interest free govt loan is actually just other people’s taxes).

The more that this situation is dug into, the worse it looks.

How much longer can he last? Taking bets…..

#90 TRUMP on 10.23.17 at 9:06 pm

Bill Morneau……Fake News !!!!!!!!!

LMAO.

#91 Whatever40 on 10.23.17 at 9:12 pm

“gutting of the TFSA limit” – really, keeping it at $5500 instead of increasing it to $10,000 is gutting it?
Liberals are all inherited wealth… wah, wah, wah…
Your progressive conservativeness is showing.
What, you don’t like the private sector, you trying to get back into that party?
I’m tired, just so damn tired of all you political asses being “holier than thou”.

Actually cutting it from $10K to $5K is, yes, a gut. The TFSA is the most egalitarian, democratic savings and investment vehicle in the land. You lefties should love it. — Garth

#92 Smoking Man on 10.23.17 at 9:12 pm

DELETED

#93 The real Kip on 10.23.17 at 9:13 pm

Just reading how much money Bill Morneau is making as Sears collapses. Sounds like the guy was in on it!

http://m.torontosun.com/2017/10/22/morneau-shepell-sears-and-more–theyve-all-forgotten-about-the-little-guy

#94 Pete from St. Cesaire on 10.23.17 at 9:15 pm

I get accused of being delusional when I explain to people who are swimming in debt because of their houses that, in reality, they are on welfare. That’s correct. It’s a slightly different kind of welfare but welfare none-the-less. It’s welfare in so much as they only HAVE the mortgage because of the insanely low interest rates, and these low interest rates are stealing from those who worked all of their lives and saved but who are now no longer capable of supporting themselves in their old age from income on their savings. It is also welfare when the issuing of the mortgage simply increases the money supply, thereby lowering the purchasing power of the dollars already held by others. So those with these giant mortgages certainly are living off of a form of welfare, it’s just not welfare that is administered my the local welfare office or Ontario Works. And this remains the case even if there were not any housing bubbles. It applies across the board even to undervalued houses. If someone has a mortgage that they wouldn’t be able to obtain were interest rates at a sane level, they are living at the expense of others.

#95 The Fat Lady on 10.23.17 at 9:18 pm

Bill Morneau……Public Enemy #1

Look up hypocrite in the dictionary. Guess who’s face will show. Thats right you guessed it. B Morneau.

He has a new title. The C.I.C. “Cheater In Chief”

#96 AACI Home-Dog on 10.23.17 at 9:18 pm

I am unsure why a dude with that much coin wants a stressful job like that anyhoo…

#97 Smoking Man on 10.23.17 at 9:19 pm

Oh O, DM wants to clear the air with me based on my last periscope.
These virtue signaling fakes can’t take a joke. Reputation is everything to these pink shirt Bull shitters.

Perhaps I should lawyer up. How much lawyer
is a net worth of 10 bucks going to buy me.

#98 cultural elitist on 10.23.17 at 9:19 pm

@78 akashic record
But once the philosophy changes, automation and robotics will follow very fast.

Maybe. In addition to the technical standardization, there is also the social adjustment, which takes time. You will need government bureaucrats to change the rules regarding safety features in electronics and plumbing, which could take … never … depending on the political climate.
Said climate will be governed by the relative political power of trade unions who will fight such innovations if they materially affect the livelihood of their members, arguing … safety. You want to argue against an electrician that your gizmo is safer than his years of experience? Good luck with that.
I’m not disagreeing with you, but I don’t believe that the deployment of automation (in most fields) is as simple an affair as you make out. There are other social forces at work: bureaucracy, law, insurance, unions, user behaviour … on and on.

#99 Smoking Man on 10.23.17 at 9:21 pm

That delete was funny Garth. Is it a full moon. That 28 day cycle is all I’m saying.

#100 The Great Gazoo on 10.23.17 at 9:24 pm

Roger Waters – US + THEM
World Tour

https://rogerwaters.com/tour.php

Went to the concert at the ACC in Toronto this month. Was like going back to high school days. Roger and his band put on a wonderful performance – played a lot of Pink Floyd favourites to keep the fans happy. Mix of old and young in attendance.

A very political concert. Roger is not a fan of the Trumper.

Dolce Vita, Roger is playing in Bologna, Italia in April of 2018. If you are fan, and don’t mind the drive, something to consider.

#101 Smoking Man on 10.23.17 at 9:28 pm

I just despise anyone listening to the Davos play book. Selfish little pee-ons, they know there actions will hurt fellow men and women but they don’t care.

They promote on screen savers the agenda knowing full well what the outcome will be. The question I have. Are they in on it or know the school system deranged the next gen and are just reacting to it.

My money is they know.

Economic Nationalism is the only way out of this fork in the road that leads to a cliff.

Dr Smoking Man
PhD Herdonomics

#102 Royal City Dweller on 10.23.17 at 9:33 pm

Is it just me ?
Or SCM has finally dissipated into virtual nothingness?

Whatever’s the case, it’s such a relief the troll is gone.

#103 Dean Samagucci on 10.23.17 at 9:34 pm

Hey Middle Classers, send you “Bills” to Moreneau. He’s a middle class champion and has millions to spare! Now that is dedication and “Trudeau” middle class commitment!

#104 When the Whip Comes Down on 10.23.17 at 9:36 pm

Saw the CBC piece with realtor Riach stating that the “reality” of b20 is that it will only affect a small number of buyers and not in any way damage the market. Hmmm “reality” eh? Does it not occur to him that there is no possible way one week after the change has been announced to measure the affects of it? Oh right thanks for that shyster riach. Don’t want to loose your income stream, keep buying everyone. Nothing to see here everything is gonna be alright….

#105 Smoking Man on 10.23.17 at 9:37 pm

#100 The Great Gazoo on 10.23.17 at 9:24 pm

Roger Waters – US + THEM
World Tour

https://rogerwaters.com/tour.php

Went to the concert at the ACC in Toronto this month. Was like going back to high school days. Roger and his band put on a wonderful performance – played a lot of Pink Floyd favourites to keep the fans happy. Mix of old and young in attendance.

A very political concert. Roger is not a fan of the Trumper.

Dolce Vita, Roger is playing in Bologna, Italia in April of 2018. If you are fan, and don’t mind the drive, something to consider.
….
Loved the guy my entire life up in till a year ago. His goodness has been hijacked by real fascism and he don’t see it
Or sees it and don’t care and it’s all about money.

My bet is on the latter. Soros is going to war against family’s the resistance to madness. 18 billion pledge to destroying everything that’s good about humanity.

#106 Royal City Dweller on 10.23.17 at 9:39 pm

OFSI, Stress Test and the Change Coming to the Royal City.
Good read.
Enjoy:
https://bestguelphhomes.com/issue-73-oct-20-2017/?inf_contact_key=aee7051fb7f2c3a0d2ff999cc6aa1d1854274f7d8c40d448d13a106880fb20f1

#107 will on 10.23.17 at 9:40 pm

Sounds like Bill is a paleoconservative just like me. I like that. I would like to learn from Bill how he acquired it all. I think his next role should be in educating Canadians on being conservative and the benefits of leading a conservative life. Especially to those who are living paycheque to paycheque.

#108 For those about to flop... on 10.23.17 at 9:40 pm

I’ll tell ya how much poop is coming down the pipe.

Metro Vancouver wants to basically double the Sewer Tax for developers from $950 to $1800

Put your goggles on ,maybe a mask.

Dunno,a lot of people in this city seem to like eating shit…

M43BC

#109 BC&Alberta Taxes on 10.23.17 at 9:46 pm

Hi Garth and fellow bloggers, what is everybody’s opinion of bc & Alberta taxes all going to Ontario and paying for everything? Ontario is a have not province. Without the west they couldn’t survive.

#110 acdel on 10.23.17 at 9:48 pm

I appreciate your blogs Garth; I am one of the admirer’s that feel that you do as best as you can to educate the new comers.

But I have to admit; when many of us posted similar views six months ago; we were ridiculed and asked ‘including you”as to why we read nonsense from diffident news sources or read others “ideals” that predicted what was coming” yet you write what many of us posted many months back; as mention I enjoy what you write but you seem to forget other views that fore-casted the same thing six months back only to get crucified by you and many others.

Many times I just do not get this blog; is this a sales pitch for your investment (rightly so, it’s your blog) or an honest opinion blog to what has happened (including the dogs who know what hey are talking about) or is it a millennial blog__________, you fill in the blank Garth because I am an idiot who is confused by ignorance of past educated posts as to what is written months latter by you that was mentioned months earlier by them, ban me if you want, but for god’s sake stop being a liberal and recognize all that contributed to your blog! Your not welcome since I will probably be banned; man up, you are becoming another_________??????????????

#111 conan on 10.23.17 at 9:48 pm

#91 Whatever40 on 10.23.17 at 9:12 pm

“What, you don’t like the private sector, you trying to get back into that party?”

My theory is that Garth is writing the talking points for Skippy the Finance critic.

#112 Victor V on 10.23.17 at 9:49 pm

Morneau Shepell ties to Bombardier flag ‘minefield’ for finance minister: Opposition critics

https://www.thestar.com/news/canada/2017/10/23/morneau-shepell-ties-to-bombardier-flag-minefield-for-finance-minister-opposition-critics.html

OTTAWA—Opposition critics are hammering Finance Minister Bill Morneau’s decision to retain shares in Morneau Shepell, the big pension firm he used to run, saying he faced a “minefield” of potential conflicts.

Those may have included the Liberal government’s decision to financially back Bombardier last winter to the tune of $372.5 million in interest-free loans for its CSeries and Global 7000 aircraft programs.

Morneau Shepell, which bills itself as Canada’s largest administrator of retirement and benefits plans, administers “some” group insurance and pension benefits for Bombardier, a knowledgeable source who declined to speak on the record told the Star. The contract has been in place for over a decade and there has been no substantial change since the 2015 election, the source said.

#113 NoName on 10.23.17 at 9:51 pm

#2 Scarier than Halloween on 10.23.17 at 6:41 pm
Why we talking about taxes when we have people in Richmond, BC who drive BMWs, Mercedes, and Range Rovers stealing pumpkins from a hard working farmer?
His property is being plundered by the new wave of etiquette coming to a town near you. Lord help us.
http://www.richmond-news.com/news/bandits-in-luxury-cars-stealing-pumpkins-in-richmond-1.23069403

—-

That’s not scary, scary is guy in shiny new lexus delivering amazon packages.

#114 akashic record on 10.23.17 at 9:57 pm

#98 cultural elitist on 10.23.17 at 9:19 pm

@78 akashic record
But once the philosophy changes, automation and robotics will follow very fast.

Maybe. In addition to the technical standardization, there is also the social adjustment, which takes time. You will need government bureaucrats to change the rules regarding safety features in electronics and plumbing, which could take … never … depending on the political climate.
Said climate will be governed by the relative political power of trade unions who will fight such innovations if they materially affect the livelihood of their members, arguing … safety. You want to argue against an electrician that your gizmo is safer than his years of experience? Good luck with that.
I’m not disagreeing with you, but I don’t believe that the deployment of automation (in most fields) is as simple an affair as you make out. There are other social forces at work: bureaucracy, law, insurance, unions, user behaviour … on and on.

Of course, you are right.

There is a non-technical reason why electrical connections, devices are put together by kids outside of the wall, but behind the wall every single piece of cable of the same circuit is stripped manually by expensive labor.

But I am optimistic that if an outsider guy like Tesla can force changes in the US space industry to create reusable rockets then other changes can also take place.

#115 Lost... but not leased on 10.23.17 at 10:04 pm

Prediction…

MORONEAU IS NOT GOING ANYWHERE…(unless he chooses to quit).

Turdeau rolled the dice with a high profile cabinet position….chose Moroneau….Turdeau will NOT make him walk the plank or rest assured Turdeau may as well resign as well…it’s a 2 for 1 political deal.

#116 M-cube on 10.23.17 at 10:06 pm

DELETED

#117 Smoking Man on 10.23.17 at 10:07 pm

The best moment a human can strive for is the day they truly don’t give a shit. Zero fear of judgment or consequence. It’s a scary place to be alone but man if you get there feels so good. You finaly get to become real. Its said and true. No make up or conforming to what you know is a big chuck of cat poop.

Forex a life saver for me. Because I’m never getting a vba gig again despite being the best in the world.

Perhaps I should have spelled implemention consultant properly on my Resume. Maybe I just don’t want a job.

Subliminal forces at play. Or that’s the story I’m going with.

Smoking Man
PhD Herdonomics

#118 Djb on 10.23.17 at 10:07 pm

Morneau said he did not have to answer to reporters recently on this issue.

My question is T2 has not asked him to step aside as of now what makes you think he will be demoted?

#119 dosouth on 10.23.17 at 10:13 pm

Hard to feel sorry for any who are within 200 bucks of bankruptcy or debt. Take the win, take the fall. No one made them spend but “poor me” when they have to be responsible and pay back what they owe. Great parenting always look for someone else to blame…

#120 akashic record on 10.23.17 at 10:15 pm

Real estate and stuff is truly boring when you can spend time with guys like this.

He, Ingo Swann is actually 72 at the time of this lecture. He used to be a precious CIA asset. This is one of the few videos that is still not clean swept from public access.

Enjoy while you can.

https://www.youtube.com/watch?v=rHH5PBS2H_I

#121 Smoking Man on 10.23.17 at 10:24 pm

118 Djb on 10.23.17 at 10:07 pm
Morneau said he did not have to answer to reporters recently on this issue.

My question is T2 has not asked him to step aside as of now what makes you think he will be demoted.

……

I had a theory but it got deleted because it was to close to the sun.

#122 45north on 10.23.17 at 10:25 pm

I’m stupid: Legislation will not fix stagnant wages if everyone has no savings because an employee can’t negotiate a fair deal if he’s living on credit.

that’s very true. Debt puts you in a position where you can’t negotiate but here’s a story of a young man who thought and did the opposite. When I worked at Statistics Canada, 30 years ago, I remember a young man Schneider. He worked as an independent contractor in IT. He boasted that he was in debt but that only served to push him to work harder. I’m sure it did but I’d say to anyone thinking of such a strategy to make sure the debt is paid off before you burn out.

Dolce Vita: If Garth is correct about B20 dropping prices by 20%, that place will drop in price to $1,080,000.

pay attention to the wording: it could mean a family shopping for a $725,000 house today will have to reduce their target to $570,000 after the test

Could in the sense that something is possible. That’s all.

The Jaguar: Hang in there, Bill. I like your style.

I don’t. Particularly because of the moral righteousness you portrayed in advocating for “tax fairness for the middle class”. The strategy to hide assets under numbered companies is a lesser sin.

#123 John on 10.23.17 at 10:31 pm

It’s only critics like you, Mr. Turner, who throw around terms like “tax cheats.” The Liberals have said this is about tax fairness. And that message resonates with me. Ad Hominem attacks against Bill Morneau don’t change that. “Tax planning” is an abomination. The less of it the better.

Tell that to Morneau Shepell. – Garth

#124 acdel on 10.23.17 at 10:31 pm

#117 Smoking Man

I get that Smokie; but you would not be posting if you felt (like me) just one lousy stinking word, sentence or paragraph can or could make a difference; if it makes a difference just to one person out there then sometimes it is worth.

So many feel so separated but yet we are all one; a lousy few aholes dictate our lives until we stand up!

#125 Victor V on 10.23.17 at 10:32 pm

Liberal government advised not to call young people ‘millennials’ lest they be insulted

http://nationalpost.com/news/politics/liberal-government-advised-not-to-call-young-people-millennials-lest-they-be-insulted

Moisters! — Garth

#126 A Dollar is a Dollar is a Dollar on 10.23.17 at 10:36 pm

#75 John G, loved your quote of Garth —–

“Income is income, whether in interest, dividends or capital gains. — Garth”

EXACTLY!

I knew you’d start to come around to the common sense truth, Garth!

A dollar is a dollar is a dollar. All are equal and should be treated and taxed equally.

I feel like we’re making progress together finally.

#127 Smoking Man on 10.23.17 at 10:36 pm

#112 Victor V on 10.23.17 at 9:49 pm
Morneau Shepell ties to Bombardier flag ‘minefield’ for finance minister: Opposition critics

https://www.thestar.com/news/canada/2017/10/23/morneau-shepell-ties-to-bombardier-flag-minefield-for-finance-minister-opposition-critics.html

OTTAWA—Opposition critics are hammering Finance Minister Bill Morneau’s decision to retain shares in Morneau Shepell, the big pension firm he used to run, saying he faced a “minefield” of potential conflicts.

Those may have included the Liberal government’s decision to financially back Bombardier last winter to the tune of $372.5 million in interest-free loans for its CSeries and Global 7000 aircraft programs.

Morneau Shepell, which bills itself as Canada’s largest administrator of retirement and benefits plans, administers “some” group insurance and pension benefits for Bombardier, a knowledgeable source who declined to speak on the record told the Star. The contract has been in place for over a decade and there has been no substantial change since the 2015 election, the source said.
….

If your a crook, a freak show of some kind, liberalism will welcome you with open arms. Emotion over logic.

Folks with logic and values not welcome.
Weren’t always like that when I was a campaign worker for for the guy how spoke out of one side of his mouth.

He’s got to be thinking WTF. Me too.

#128 mathman on 10.23.17 at 10:41 pm

Was at a kids party this weekend and left with a sore knee. A few of the Mill couples (I’m a GEN Xer) were talking about the fact they just “bought” in the neighbourhood.

My wife saw me open my mouth and kicked me right off the knee cap. Because of this I was not able to say;

“so by bought you mean your parents put down the downpayment and the bank covered the rest, what exactly did you buy”

I’m always asking people what they do for a living at these parties, not because I care but because it is so interesting to me that people with incomes well below 100k can live in seven figure houses. Quite a phenomena.

Many moons ago parents gave their kids a few bucks to live in an area that made sense given their incomes, stage of life etc. Today irresponsible parents pay for their kids entry ticket into areas that others spent decades saving to live in – not understanding this does so much more harm then good and starts and endless quest to keep up with the Joneses.

#129 Pete from St. Cesaire on 10.23.17 at 10:45 pm

Hi Garth and fellow bloggers, what is everybody’s opinion of bc & Alberta taxes all going to Ontario and paying for everything? Ontario is a have not province. Without the west they couldn’t survive.
——————————————————————–
Separate. The west should go it’s own way, and take the Yukon and NWT with it. Call itself Rupertistan or something. ‘Rupertistan’; that’ll go viral.

#130 Lost...but not leased on 10.23.17 at 10:49 pm

Good to see our future President of Canada ,….Donald Trump …is looking at various prototypes for Walls to be built along the USA Southern border…

Once the winning bid is established…various portions of Canada should have similar vertical barriers established at their borders based on popular demand.

#131 The Totally Unbiased, Highly Intelligent, Rational Observer on 10.23.17 at 10:55 pm

“That’s how people get elected now. Us against them. Trump used it masterfully.”–GT

I totally agree Garth. Trump used it masterfully. It was Trump versus all the evils and bad people in the world. Now, you just need to learn how to tell good from evil, and the good people from the bad people, so you do not continue to support the wrong side.

Part of being a real man is to PICK A SIDE. Another part of being a real man is to PICK THE RIGHT SIDE. Not the left side, the wrong side. Why go on whining about how Trump is making America great again, when there are serious problems closer to home, such as another Trudeau trying to destroy Canada again?

There is definitely a conspiracy afoot these days to make good out to be evil, and evil out to be good. Whenever Donald Trump shows some good old fashion common sense, it drives the wicked crazy.

#132 jay #2 on 10.23.17 at 10:56 pm

Trudeau is going to goose the economy again with increased child benefit ,that should keep the housing bubble going for a little while longer. http://www.cbc.ca/news/politics/liberal-government-canada-child-benefit-boost-sources-1.4368019

#133 Geofferson on 10.23.17 at 11:01 pm

#47 Dolce Vita

Decent analysis, but it’s more likely the interest rates will be even higher after 5 years. My friend will be ok as he’s putting more than 20% down (35% down) and expects the market will soften in 2018 buy can afford a major correction (his time horizon on this property is more than 10 years), but sadly others won’t fair so well.

#134 Happy Millennial on 10.23.17 at 11:08 pm

The biggest proponents of “us and them” are conservatives. I would happily embrace *most* of conservative fiscal policy (not all) if they would stop the culture wars, and courting pro-trump Canadians and being so anti-immigration and anti-rights for so many people. I realize it’s #notallconservatives and clearly Garth is mostly concerned with finance (which is why I follow this blog). However so many conservatives like that Kellie Leitch person are out there I have to vote against my financial interests and go with liberals just for moral reasons (the lesser of 2 evils).

#135 Smoking Man on 10.23.17 at 11:14 pm

Don’t be a victim, we are all in the same shit show regardless of the perception of stature or celebrity.

Humans, love something not evil is all I’m saying.

https://www.youtube.com/watch?v=NLlOeGeVih4

Dr. Smoking Man
Phd Herdonomics
Commander or the mission to earth from the bleeding heart planet of Nectonite.

#136 M-cube on 10.23.17 at 11:15 pm

Hey man! why was my comment deleted? I was only pointing out that the farmer had to write messages in both English and Chinese in that article linked by post #2

You said more. Not on this blog. – Garth

#137 will on 10.23.17 at 11:21 pm

#99 smoking man

Actually we are just coming out of a new moon.

#138 Lost...but not leased on 10.23.17 at 11:28 pm

One lurking concern is if Turdeau tries to OVERcompensate for Moroneau and subsequently unleash all sorts of whacky expensive (aka UNaffordable) policies and legislation that further exacerbates the Public Debt.

PS wonder what Turdeau and Moroneau will dress up as for Haloween?(….. oh right..fictional characters… a Prime Minister and Finance Minister !)

#139 1 percent on 10.23.17 at 11:34 pm

Timmins James Bay MP Charlie Angus says the finance minister is changing rules that benefit himself:

https://www.youtube.com/watch?v=1FO27Z7JN6o

#140 the ryguy on 10.23.17 at 11:39 pm

#131 The Totally Unbiased, Highly Intelligent, Rational Observer on 10.23.17 at 10:55 pm

————————————————————–

I stand and salute you sir!

Its so true.

The left is vile & evil. Anyone that doesn’t see its all about them holding power is either not looking or a complete moron.

Trump gave up his golden years to take attacks from these fools, all in an effort to help the country he loves. Guys a hero!

#141 mike from mtl on 10.23.17 at 11:50 pm

Actually cutting it from $10K to $5K is, yes, a gut. The TFSA is the most egalitarian, democratic savings and investment vehicle in the land. You lefties should love it. — Garth

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

Absolutely it is, RRSP as usually mentioned favours the higher bracket earners. TFSA is no doubt the best vehicle to invest in and maximise in this frozen land. However at 5,5k / YR that’s far too small to be of a serious use to real investors.

Plus the CRA has these imprecise rules about commercial interests (day trading). So making ‘too much’ catches their attention.

Slashing it was more of a tax grab in disguise.

Off shore or RE is still the way of the 1%

#142 BS on 10.23.17 at 11:50 pm

On this day last year the New York Times reported Hilary Clinton had a 93% chance of winning with Donald Trump at 7% only a couple of weeks from voting day. LOL.

When you see the spin housing prices can never go down you must realize the media and establishment report what they want you to believe. Vancouver and Toronto will be down by 70% from peak when all is said and done.

#143 Long-Time Lurker on 10.23.17 at 11:54 pm

I was looking at some smuggled photos out of North Korea. (Daily Star UK) The place looks like 1960s Red China or something out of the Soviet Union. Their economy never developed.

There are long line ups probably for basic supplies. People on bicycles and really old trucks that look like they’re from just after WWII.

The army is definitely conscript: They look really unprofessional. The scenes really look like something out of the Soviet Union compared to Red China today. There’s propaganda everywhere. Poor people abound. A photo of a malnutritioned young man. A farm collective.

The people look ordinary. They’re actually ranting and raving a whole lot less than Americans these days. They look like dupes living under the Kims. I think if the North Korean government collapsed they’d be happy to reunite with the South Koreans. The only thing keeping them with the Kims are the Kims & cronies and Red China.

If the US invades either the people are going to quickly capitulate because Kim’s really got nothing going for him because he’s got nothing; or a lot of innocent people are going to get caught up in a sad, destructive military conflict.

Another thing I briefly looked at is a Kitco interview with Gordon Chang. It seems that President Xi has rivals in the Communist Party and is antagonizing the party against them. Red China’s political situation may not be as stable as everyone thinks.

#144 crowdedelevatorfartz on 10.23.17 at 11:58 pm

@#129 Pete from St Cesaire

Nah Rupert’s land has already been taken. Besides, Ontario paid its fair share of equalization payments (before Wynne changed all that) unlike La Belle Province.

As for the West splitting off……. It’s been dicussed….

https://www.google.ca/url?url=https://en.wikipedia.org/wiki/Cascadia_(independence_movement)&rct=j&frm=1&q=&esrc=s&sa=U&ved=0ahUKEwixj6TGrojXAhUD_WMKHUOdAkkQFggUMAA&usg=AOvVaw0rMT28LRtW3mqnKj_BaDHo

I’m sure they’d be willing to let Alberta join the “party”…….. the two richest Provinces in Canada joining Alaska, Washington and Oregon……yeee Haaaw.

#145 Smoking Man on 10.24.17 at 12:13 am

Families so underrated today. Freaks and Geeks don’t get it, That’s why I’m here, sharing what’s important. eventually Ill wake up enough idiots to be a hero, hopefully just around the time I have zero sex drive to take advantage of young female hero worshipers.

Apologies for being a man.

https://www.youtube.com/watch?v=IYj2hex99gY

#146 crowdedelevatorfartz on 10.24.17 at 12:22 am

@#108 The Flop

“Metro Vancouver wants to basically double the Sewer Tax for developers from $950 to $1800′.

++++
Tonights 6pm News,
14 Million dollar vacant mansion burns in suspicious fire. That was the 30th vacant house to burn in Vancouver this year. More to come.

City Halls reaction?

Never mind that Gregor was down on Granville Mall today announcing
” Today is Vancouver White Cap Day!…….”

No Fun City lives up to its reputation

i’m betting Mayor moon-bean-brain will be popping up everywhere his handlers can find over the next year….
Anywhere there’s an inane , PC , gender empowering, non sexist, non racist, non confrontational announcement to be made……leaving the crap announcements(taxes/services fees UP) for his minions…….12 more months til Gregor’s punted

#147 John Smith on 10.24.17 at 12:36 am

“basic expenses” = 10 visits to SBUX per month
“trouble” = inability to visit SBUX 10 times per month

#148 Mousey on 10.24.17 at 12:41 am

Us and Them? Going to see Roger Waters this Saturday. Should I ask him about the small business tax changes? Corruption in Vancouver real estate market? How the band really hated each other whilst they were recording Wish You Were Here?

#149 Islander on 10.24.17 at 1:25 am

“The latest is that he (Morneau) continues to receive over $1 million yearly in dividends and cash flow from his family biz – which excels in tax avoidance – while he serves as finance minister.”
Garth??? Huh – This is a bad thing??
My quess is that M. Morneau will be fine. Laws will be ‘adjusted’. Again – what planet are you on?

#150 Islander on 10.24.17 at 1:33 am

https://www.theguardian.com/commentisfree/2017/oct/23/greedy-bosses-broken-capitalism-who-fix

“All have now, in one way or another, questioned the viability of capitalism as we currently practise it, blaming management greed, tax evasion and other corporate sins. The Financial Times reports today that Shriti Vadera – once Gordon Brown’s eyes and ears at the Treasury, now head of Santander – told a conference that “the underlying promise of western capitalist economies – that a rising tide lifts all boats – has been broken”; a “better model” is needed.”

We need to consider the model “we” are working with.

#151 Scientist on 10.24.17 at 1:43 am

#71 Economystical

Actually, negative numbers do not exist in reality, only in economics.

The confusion probably started with batteries and where one pole was described as “positive” and the other “negative”. In reality there is no such thing in nature, it would have been more accurate to describe things electronic as “left and right” or “clockwise and counter-clockwise”. All we are doing is making a notation to describe what direction the electrons are going around the circuit.

In nature, there can be no negative number except as it relates to a larger positive number. You can have 100 atoms minus 50 atoms. You cannot have 0 atoms minus 50 atoms. Only in economics can you have things actually and truly measured in negative numbers. In nature a negative number cannot exist.

You either have one bug, a couple of bugs, or many bugs. You can’t have less than zero bugs. Not in the animal kingdom, and not even in software.

Negative numbers do not exist except as a measure from a larger positive number. If they did, time travel would be easy instead of impossible.

And for those of you who are wondering, anti-matter doesn’t exist either. If it has mass, it’s matter.

Negative numbers do not exist, except as an expression of how much money has been spent that will not be repaid.

#152 BC_Doc on 10.24.17 at 1:50 am

Morneau spends the first 30 minutes of Question Period today pilloried by the Opposition:

http://www.cpac.ca/en/programs/question-period/episodes/90009148

#153 fishman on 10.24.17 at 2:12 am

I see the Dippers got savaged by the Liberals in Quebec tonite. The Greenies will decimate them out here in B.C. next time too. Their pulling an Ujjal Dosanjh. Get the temple vote out enough to become leader. Then take the party from government to two seats.

#154 Honesty on 10.24.17 at 2:21 am

If interest rates rise 40% say they’ll be in trouble.
A third are already hurting, after a mere 0.5% increase

—————————————

Why not rephrase it?

“If interest rates rise 40% say they’ll be in trouble.
A third are already hurting, after a 100000% increase from 0 to 0.5%”

#155 Honesty on 10.24.17 at 2:25 am

#83 Tony on 10.23.17 at 8:46 pm
The new B20 OSFI rules will affect high end real estate the most. Those numbers will skew the monthly prices lower. The real problem was millennials in Canada paying too much that’s what they need to target.–

————–

Pure Drivel.

They can just get a longer amortization.

#156 Damifino on 10.24.17 at 2:53 am

#126 A Dollar is a Dollar is a Dollar

A dollar is a dollar is a dollar. All are equal and should be treated and taxed equally.
————————————

Do you think then that the basic personal exemption should be done away with? I’ve asked this before but got no response. What is so different about the first 12,000 dollars a person earns that it should be tax free.

Don’t tell me its OK because everyone gets it. Someone who makes 24K per year has only half their income exposed to tax while someone making 36K has two thirds exposed. What’s fair about that?

You MUST be against the basic personal exemption. Dollars are dollars. The first one is no different than the last one. Tax them all, right?

#157 AGuyInVancouver on 10.24.17 at 3:04 am

#22 Timmy on 10.23.17 at 7:00 pm
Morneau is using numbered companies to hide his assets? That’s no different than all of those people who use numbered companies to buy real estate. Half the most expensive houses in Vancouver are owned by numbered companies. Andy we wonder why housing is so expensive in Vancouver, lol…That’s why the Liberals are doing nothing to change our lax laws on money laundering through real estate. Maybe Bill owns a few houses in Vancouver.
_ _ _
Morneau may not own multiple houses in Vancouver, but the host of Trudeau’s pay-for-play fundraisers does. Pity poor Miaofei Pan who lost one of his several Vancouver mansions to a suspicious fire yesterday.
https://globalnews.ca/news/3821092/shaughnessy-mansion-burns/

#158 sugar daddy on 10.24.17 at 3:12 am

If interest rates rise 40% everyone would be in trouble. I would dance and sing though.

#159 James Kook on 10.24.17 at 3:50 am

#2 Scarier than Halloween on 10.23.17 at 6:41 pm

” Why we talking about taxes when we have people in Richmond, BC who drive BMWs, Mercedes, and Range Rovers stealing pumpkins from a hard working farmer?
……
http://www.richmond-news.com/news/bandits-in-luxury-cars-stealing-pumpkins-in-richmond-1.23069403

Shush, do not speak much about Richmond because Garth will consider you as a racist.

#160 phily on 10.24.17 at 4:35 am

So we have an animal that cannot be caged and a corrupt unethical member in cabinet. Sad times when south of us we are referred to in some posts as a banana republic controlled by a few families. This has to change or we are all pooched.

#161 Reality One on 10.24.17 at 6:17 am

#2 Scarier than Halloween on 10.23.17 at 6:41 pm
Why we talking about taxes when we have people in Richmond, BC who drive BMWs, Mercedes, and Range Rovers stealing pumpkins from a hard working farmer?

His property is being plundered by the new wave of etiquette coming to a town near you. Lord help us.

http://www.richmond-news.com/news/bandits-in-luxury-cars-stealing-pumpkins-in-richmond-1.23069403

#####################################

There are certain realities.
When pigs leave the sty they’re still pigs.

#162 n1tro on 10.24.17 at 7:00 am

USDCAD breaks through mild resistance of 1.2666. Onward to 1.2780 as predicted! Maybe when the BOC announces dovish message of no increase?

#163 Mirabelle on 10.24.17 at 7:28 am

“Morneau and his four siblings also have joint ownership of four numbered Ontario companies, which are real estate holding companies based in Toronto.”

From here:
http ://www.thestar.com/news/canada/2017/10/20/morneau-gets-chippy-as-the-light-is-shone-on-his-finances.html

#164 Victor V on 10.24.17 at 7:32 am

New home sales in GTA slower but no crash in sight: Report

https://www.thestar.com/business/real_estate/2017/10/24/new-home-sales-in-gta-slower-but-no-crash-in-sight-report.html

#165 crowdedelevatorfartz on 10.24.17 at 7:55 am

@#153 fishman

Total agreement.
The NDP have shot themselves in the foot in Quebec with their new leader.
Politically correct he may be.
Political poision he is in a Province that makes the Hijabs illegal in Govt offices. The BLOC will take all the votes the Libs dont get in the next election.
Another Trudeau minority govt…..history repeats.
But those idealistic

#166 Robert James on 10.24.17 at 7:56 am

Oh dear !! https://www.castanet.net/news/BC/209856/Mansion-blaze-was-arson

#167 Gravy Train on 10.24.17 at 8:04 am

The answer to helping the masses is not to shred the economic achievers among them. People need more incentives to save and invest, not to borrow and spend. If it’s not already too late. — Garth

One of the many policy prescriptions recommended by Richard Thaler (for which he won the Nobel Prize this year) is creating better default plans for employees: setting the default as automatic enrolment in a basic retirement plan rather than having no plan at all, with a series of contribution increases timed with pay increases. (Employees would have to manually change these defaults if they didn’t want to save and invest.)

These ideas are an odd combination of paternalism and libertarianism.
https://en.m.wikipedia.org/wiki/Richard_Thaler
https://en.m.wikipedia.org/wiki/Nudge_(book)

#168 TurnerNation on 10.24.17 at 8:06 am

Morning jokes. “Hot areas” in Toronto include a collection of fetid junkers and tear-down bungs for 800k – mostly on the wrong side of the tracks.

Or move toward the 905 and pretty much into the 705 area code. Et tu Moosonee?

A lifetime of debt slavery and repair/renos awaits:

https://torontolife.com/real-estate/gtas-next-hot-neighbourhoods/

#169 Renter's Revenge! on 10.24.17 at 8:39 am

#151 Scientist on 10.24.17 at 1:43 am
#71 Economystical

Garth, where do you find these people?

#170 crowdedelevatorfartz on 10.24.17 at 8:47 am

@#166 Robert James.

Unfortunately……one of many.
They should pass a Law.
If it’s arson.
The property should be rebuilt.
No exceptions

#171 LivinLarge on 10.24.17 at 8:52 am

“A dollar is a dollar” really??? Then you simply don’t comprehend where some dollars come from and what governments want to encourge income to come from.

Dividends have a lower effective tax rate because they are paid to you from company income that has already been taxed at source.

Capital gains are taxed at an advantageous rate to encourage investment.

Interest is taxed like wages because it is effectively wages or more accurately, fees for you lending your money out just like wages are fees for lending your labour out.

It wouldn’t kill you to bone up on some basic economics.

#172 crowdedelevatorfartz on 10.24.17 at 8:59 am

@#164 Victor V
“New home sales in GTA slower but no crash in sight: Report”
+++++++
The “news” report was referencing that bastion of impartiality “BuzzBuzz Homes”.

Lets see if we can get the gist of it.

BuzzBuzz Homes acknowledges that visits to their website are down almost 50% since the Spring but the market is stable….. ugh

I noticed the next two stories in the “news” were both about condos and or squeaky clean young couples with kids living in condos…..

Interest Rates? Stress Test? B20?
Its all good. No problems. Keep buying.

#173 Asterix1 on 10.24.17 at 9:40 am

How could prices still be going up?

https://www.zolo.ca/toronto-real-estate/trends

Average Toronto price (Zolo):
930,000$ (May 2017)
737,000$ (around end of August)
848,000$ (now)

It’s insane that people are still jumping into this boiling pot of water.

#174 For those about to flop... on 10.24.17 at 9:54 am

#146 crowdedelevatorfartz on 10.24.17 at 12:22 am
@#108 The Flop

“Metro Vancouver wants to basically double the Sewer Tax for developers from $950 to $1800′.

++++
Tonights 6pm News,
14 Million dollar vacant mansion burns in suspicious fire. That was the 30th vacant house to burn in Vancouver this year. More to come.

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

Hey Crowdie,that 14m house was just under 10,000sq ft .

They will be allowed to build an new 17,000sq ft house due to changed rules basically because you are allowed to build to .60 compared to the size of the block.

If my Pink Pumpkin case in that very same block goes up in flames I promise to do a post labeled…

“Bbq Pink Pork in Vancouver”,although the meat will most likely be overdone on the outside it will still be raw on the inside…

M43BC

#175 David on 10.24.17 at 9:54 am

Hi, I didn’t think my comment was controversial or could have been properly construed as abusive, etc. I merely pointed out that the success of Trump and other politicians in Europe is based upon the citizens getting upset by “migration” being uncontrolled borders and the fiscal results. In my opinion, the “us vs them” wedge is used mainly by leftists against their own co-citizens whereas Trump et al use it against non citizens. But it’s your blog of course.

#176 As if on 10.24.17 at 10:05 am

kybash the real estate market he did ! Caveat Emptor what do I care if someone wants to pay $1.5 million for a whole in the wall ! Why does anybody care ! let the bank foreclose next guy will come along and scoop it up. Stress test on new home buyers kills the real estate cycle ! so whats going to drive the economy ? housing market killed by idiots ! Oil is toast ! Lets all count on selling Dope as our number one export ! Trudeau lets all sell weed !

#177 TurnerNation on 10.24.17 at 10:06 am

More layoffs. From IE newsletter.

“Now that Toronto-based investment-management giant CI Financial Corp.’s acquisition of Sentry Investments Corp. has officially closed, CI has moved to implement significant layoffs at Sentry.

The recent spate of layoffs extends across all levels of the organization at Sentry, the Toronto-based fund management firm, including client relationship staff, sales representatives and senior portfolio managers.

#178 Shortymac on 10.24.17 at 10:24 am

I’m finally noticing listings are reducing their prices without delisting/relisting first. Currently it’s small bits and bobs, like the 700k tiny bungalow I talked about being dropped to 650k.

Lots of homes in my old neighborhood that listed 1mil-plus whose listing expired but still have “for sale” signs up.

My Realtor called me to hawk some sort of “down payment assistance” program that sounds kinda shady. Nice Realtor and all but I could tell she was desperate for some sales.

Let the crash commence!

#179 fancy_pants on 10.24.17 at 10:25 am

#69, #87

re: inflation

I’m in agreement. With historical evidence of a direct relation between money-supply growth and long-term price inflation, it’s surprising we have deflected inflation for so long, especially with the cruise control set to ZIRP for the past decade. Nothing more uneasy than going full out expansionary monetary policy just to hold ground. Squelched fundamentals are screaming to be released from their suppression in artificial bubbles.

When the can can’t be kicked any further down the road, bubbles will prick (RE, stock market) while the CPI takes flight. Then there will be no monetary lever left to pull, contractionary monetary policy will curb inflation but destroy the bubbles, continued expansionary monetary policy will keep some gas in the bubbles but exasperate hyperinflation. And heavy handed fiscal policy won’t save you, it will just ensure nobody survives.

#180 LivinLarge on 10.24.17 at 10:26 am

Hey, here’s a creative idea…

Let’s all write or call our MP and MPP and request that lottery winnngs be taxed like the capital gains they are.

You put in $5 and get a remote chance to make an enormous capital gain. Sure, there’s then the question of how to handle the capital loss of the cost of losing tickets but that’s just detail. Maybe limit the taxable threshold to $5K or so.

Seems to me to be a pretty painless “sin tax” and it certainly would rake in enough tax revenue to fund even the most rabid spend and tax Liberal. Simple, clean and incredibly profitable.

#181 genderBender on 10.24.17 at 10:35 am

#109 BC&Alberta Taxes on 10.23.17 at 9:46 pm

Hi Garth and fellow bloggers, what is everybody’s opinion of bc & Alberta taxes all going to Ontario and paying for everything? Ontario is a have not province. Without the west they couldn’t survive.

—————

well how else can this province afford all the gender reassignment surgeries? someone has to pay for Gods mistakes. insert rolley eyes.

#182 Ian on 10.24.17 at 10:49 am

It is unbelievable that the Liberals would try to portray themselves as the party of the middle class.

Since winning in 2015 they have gutted the middle class. They have taken all kinds of middle-class tax credits away which were put in place during the Harper years, and reduced the TSFA limits, ruining a solid vehicle for savings.

We need to make a clear case of this in 2019 and get the Blue agenda back on course.

#183 Victor V on 10.24.17 at 10:51 am

BREAKING: CRA probes presale condo flips in Toronto as part of real estate crackdown

https://beta.theglobeandmail.com/news/national/cra-probes-presale-condo-flips-in-toronto-as-part-of-real-estate-crackdown/article36700303/

Federal government auditors are scrutinizing 2,800 preconstruction condo flips in the Toronto area as part of a crackdown on tax evasion in the real estate industry.

The Canada Revenue Agency obtained court orders last year compelling 44 condominium developers to hand over information about people who sold their units before projects were completed, a practice known as paper flipping or selling on assignment. The agency is still analyzing the data it received.

“In the Toronto area in particular, audit work has increased substantially on what are called ‘assignment sales,'” Paul Murphy, a CRA spokesman, said in an e-mail. “The profits from flipping real estate are generally considered to be fully taxable as business income.” …

…Condo owners who sell preconstruction units on assignment must report the gains on their tax returns and generally must pay taxes on 100 per cent of the extra income. Those who run afoul of the rules by failing to declare such transactions or who pay taxes on only part of the proceeds can expect to be audited and to be forced to pay taxes owing plus a penalty of at least 50 per cent as well as interest and may face criminal charges, said William Howse, a Toronto tax lawyer.

“They’re making a gain on selling a piece of paper and the CRA position, and I agree with it fully, is you’re going to pay tax on every penny,” he said.

Mr. Howse said CRA auditors compare condo developers’ lists of people who sign sales contracts against land-registry data once buildings are finished. In doing so, they can identify and target previous owners of units that have been flipped, combing through past tax returns to determine compliance.

“It’s low-hanging fruit to be caught by the CRA,” he said. “Anybody who assigns an offer, sells an offer for a profit will be caught by the CRA. One hundred per cent guaranteed that the CRA will be able to identify these sales and the amount of the gain. … For auditors, can you imagine how easy it is?”

#184 IHCTD9 on 10.24.17 at 10:52 am

#7 Geofferson on 10.23.17 at 6:48 pm

My friend just closed on a property in Toronto with a $1.35 million mortgage and got a 5-year fixed rate of 2.15% from RBC. He just made the cut as that was about to expire and the new rate jumps to 3.2%.
____________________________________

I hope your buddy is wearing shades and his future is looking bright.

Monthly payment on 1.35 Mil at 2.15% $5815.00(2017)

Monthly payment on 1.14 Mil at 6% is $7262.00(2022)

That’s a 25% increase even considering the reduction of 200K in principal over 5 years.

Your buddy will need to find an additional ~$12.00 per hour worked gross earnings just to cover the likely increase in mortgage costs at renewal time. Worst thing is, since the hike is due to increased interest rates – it all goes to the Bank, not the principal. It has bought you nothing, it has earned you nothing.

The total output of $12.00/hr gross before tax increase in pay over one mortgage term would have paid my entire mortgage in one shot.

It would also buy:

Qty. 2 pcs brand new 2017 Yamaha Grizzly 700 SE Tactical Black.
Qty. 1 pc beauty new 2017 18′ Stratos Bass Boat fully equipped
Qty. 1 pc 2017 Ford F150 King Ranch SuperCrew 4×4.

COMBINED.

The icing on this cake of doom? Your Pal’s house stands an excellent chance of depreciating.

#185 Damifino on 10.24.17 at 11:16 am

#180 LivinLarge

Let’s all write or call our MP and MPP and request that lottery winnngs be taxed like the capital gains they are.
———————————–

The lotteries are already heavily taxed. Otherwise, A 10 million win would be a 20 million win.

Horse races work the same way. A nice nice, thick slice of tax is creamed off the top of the betting pool before any winnings are paid.

Horse race winnings and lottery winnings are different than other dollars.

#186 LivinLarge on 10.24.17 at 11:16 am

Here’s a fun thought about Morneau that I figure will ignight a crapstorm.

Except for his clearly intentional ethics violation that I have already said should require him to resign, how is his company functionally any different than any professional financial advisor?

For a fee, high net worth clients engage him to ligitimately reduce their tax exposure and liability. Is the only difference, the size of his client’s net worth is significantly greater than most financial advisors?

Entering politics, a person is expected to serve only one master: the people. Seems clear enough. — Garth

#187 IHCTD9 on 10.24.17 at 11:32 am

#27 Stone on 10.23.17 at 7:04 pm

This may seem harsh but what does anything noted above have to with gouvernment? Why is it their problem to solve? Silly sheeple living above their means caused the above problems. A lack of wanting to improve their lot, set limits on their consumption habits and instead use credit as a crutch to creat a false lifestyle is the actual culprit.

It’s not about us and them. It’s not about Bill Morneau. It’s about sheeple who need to take some responsibility for the consequences of their actions.

For those that the above points apply, you know it’s true. Stop the denial. When you do, life will get better. Maybe a reset will do many sheeple some good.
___________________________________

Lots of Canadians threw rational, individual assessments of their condition out the window years ago. Now, they’re all up $h!t creek without a paddle. Maybe as the years pass the massive debts are making good progress clouding out the sunshine, eroding the new ownership high, and allowing regular life to take over once more.

Still, all this is the Government’s problem too. They need revenues, and they know they can’t get blood from a stone. We already see Canadian Politicians will do just about anything to get re-elected (ie Wynne with “Debt Corp Inc.” created to subsidize Hydro Bills), so we know they will not free up revenues through austerity and layoffs. New taxation schemes are also being met with fierce resistance.

That means they’re left with borrowing alone – what’s Trudeau been doing over the last couple years? Right, massive deficits.

Canadians got stupid somewhere over the last 15-20 years, and we’re just starting to see the consequences coming home to roost. There will be more, IMHO by 2022 we’re going to start really feeling the trouble here in Ontario if the economy and wages stay flat. Piles of debt, crap wages, 24/7 war on the Citizenry trying to implement new and greater taxation, less and less good jobs, no private sector investments, Big Corps still leaving.

#188 Tony on 10.24.17 at 11:37 am

Re: #185 Damifino on 10.24.17 at 11:16 am

A one dollar lottery ticket now costs two dollars so the take increased by 50 percent when the price of a ticket doubled. You can still bet a lot of horse races in Canada across the border in America where the taxes are lower and the payoffs higher. You have to print a lot of tickets to get around the tax over a thousand dollars profit.

#189 IHCTD9 on 10.24.17 at 11:46 am

#32 Randy Randerson on 10.23.17 at 7:09 pm

Waiting for the inevitable RE fire sales because money trouble is the biggest cause of divorce.
________________________________________

Yep, seldom connected to RE, but it’s plain to see for those who understand what they’re looking at.

You’ll see the “liquidations” start on Kijiji first.

#190 Ogopogo on 10.24.17 at 11:46 am

My fav line:

“Politicians have been real estate pimps.”

That’s the tragedy of our sad, housing-obsessed northern tundra. It is why so many of us have declared a soft war on this government and virtually everything it stands for.

#191 Tony on 10.24.17 at 11:47 am

Re: #155 Honesty on 10.24.17 at 2:25 am

The Canadian millennials were one of the main causes of the housing bubble in Canada by paying far too much instead of not buying when prices rose like sane people do.

#192 LivinLarge on 10.24.17 at 11:53 am

“Entering politics, a person is expected to serve only one master: the people. Seems clear enough. — Garth”

ABSOLUTELY!!! I agree 100% no equivocation at all. When he entered politics, his business interest were, also unequivocally, required to be put in a blind trust and the idiot didn’t do that and knew he didn’t do that. That’s an ethics violation and a breach of fiduciary duty and he is absolutely duty bound (IMO) to resign and T2 is duty bound to accept the resignation…period.

But aside from the clear ethics violation, many comments here have excoriated the company itself as well. I don’t see any functional difference between the company and every other professional money advisor, except maybe the wealth of the company’s clients over the wealth of the other advisor’s wealth.

#193 Kayaker23 on 10.24.17 at 11:54 am

Another awesome post Garth. To add to the conversation about those in Beamers stealing pumpkins – I got a better one for you! People are constantly stealing trinkets from my wife’s mothers grave site. Yeap, anything other than dollar store merchandise will quickly be taken. You’d figure people would have a touch of decency with regards to those who passed and what is there should be seen as sacred – nope – unless its bolted down – its taken.

Some may do it for kicks, I am assuming most others are doing it to resell for a quick buck.

#194 TnT on 10.24.17 at 12:03 pm

#187 IHCTD9 on 10.24.17 at 11:32 am

Agree on all side however it needs to be mentioned the unfortunate pairing of financially illiterate humans with a billion dollar credit marketing environment.

The sheeple had no chance against a willfully ignorant Government and the billion dollar, marketing savvy banking system.

As Marc Cohodes says… GLTFA!

#195 Smartalox on 10.24.17 at 12:23 pm

“Vancouver Mansion Blaze was Arson”

Yup. A house that is uninhabitable is not subject to Vancouver’s empty home tax.

A heritage-designated house that is not structurally sound (due to being gutted by fire, for example) can be demolished, and a ‘new’ home built in its place.

Makes it easier to sell the lot, too.

In an unrelated matter, the Chinese central committee yesterday raised the current leader Xi Jinping to exalted status yesterday, enshrining his doctrine in the party constitution. Watch for China to double down on capital controls, and start looking to collect on wayward party members’ foreign ‘investments’. Also, China can expect a more autocratic and authoritarian approach, a return to a more classical brand of Marxism, compared to the last couple of decades.

IF there is a lot of offshore money being sheltered in Vancouver Real Estate (an ‘IF’ of indeterminate size), I’d expect owners to be very sensitive to falling values, and as sellers, potentially very motivated by threats of prosecution back home.

#196 NoName on 10.24.17 at 12:33 pm

we read now.

https://vault.fbi.gov/nikola-tesla/Nikola%20Tesla%20Part%2001%20of%2003/view

#197 IHCTD9 on 10.24.17 at 12:45 pm

#33 MSM-Free Zone on 10.23.17 at 7:10 pm
Now that the promising left-wing Liberals vT.2, in just half a term, have quickly proven themselves to be just the same masters of hypocrisy as the right-wing Cons they so recently replaced, it’s obvious this country will be soon be ripe for the same kind of cancerous alt-nutbar leadership currently plaguing our neighbours to the south.
_________________________________

You and I have opposite Politics, but here we can agree on one point:

Western Politics is off the rails.

The reasons are numerous, but our end result is the Voter, and therefore the Politician; is unwilling to shrink Government size or costs, unwilling to stop spending more than they take in, and essentially doomed to keep doing what they are doing now, until some outside force overpowers the system and we all slide unwillingly into the ditch.

Only after a significant financial SHTF event (that even the CBC can’t deny) will attitudes change about our current reality.

IMHO, this is because the will of the current Western voter is being done. The Politicians want to be voted into power, and you can bet significant resources and effort are expended to determine exactly what the majority wants. Trudeau’s gender neutral eat the rich platform got him a majority, what else does a guy/gal need to know about Canadian voters?

Governments in Canada will be going broke, and there’s nary a concern among the majority of Canadians that I can see.

Oh, and don’t worry about Trump of the north getting power – never going to happen, we’re actually headed Left Wing on all fronts.

#198 conan on 10.24.17 at 12:58 pm

Entering politics, a person is expected to serve only one master: the people. Seems clear enough. — Garth

My take:

Except this is Bill Morneau, pension expert extraordinaire , who also happens to captain, a Canadian business success story. Obvious, except to the blind, that the World has a pension crisis, and Morneau can only fix that, by being in Government.

I do not see where he has broken any laws, as he had cleared everything with the ethics peeps. His chateau was declared, just not the corporation that owns it.

It may be a 500 dollar fine if found guilty. He is not resigning, nor is he going to be asked to resign.

Also, the shares at the heart of the matter, are in a family owned company. As long as he does not add or subtract from his holdings, he is fine.

Anyway, now it looks like he is selling these shares, even though he never had to, if push came to shove.

I am surprised you are taking the Conservative line on this Garth. I am sensing your return to politics now that:

‘The bad man is gone:’ Rona Ambrose

Suggesting Mr. Morneau take the ethical high road is not a Conservative position. It’s what we should all expect of public servants, especially those who just spent three months calling compliant small business people loopholers. — Garth

#199 tulips on 10.24.17 at 12:58 pm

#180 LivinLarge on 10.24.17 at 10:26 am
Let’s all write or call our MP and MPP and request that lottery winnngs be taxed like the capital gains they are.

—————————————————————

Don’t even go there. Lotto tickets are already taxed excessively when you consider the portion of the revenue which is not prized out. That’s my retirement plan you’re messing with.

#200 LivinLarge on 10.24.17 at 12:58 pm

Damifino, “The lotteries are already heavily taxed. Otherwise, A 10 million win would be a 20 million win.”. Well I’m not certain that starement is factually correct but even if it is, your point is moot or immaterial or both.

Public corps are taxed and some still pay dividends from after tax revenues. So instead of treating lottery winnngs as Cap Gains, treat them as “One Time Special Cash Dividends”? I’m fine with that idea too but even with the Dividend Tax Credit applied, the tax liability would be greater than treating the winnings as cap gains.

Lottery winnings are taxed in the US and there doesn’t seem to be any shortage of lotteries there.

#201 Ian on 10.24.17 at 1:38 pm

Was in Bradford on weekend at my friend’s house, several for sale signs on the street. Friend says days on market has gone way higher, and many more signs appearing. One sign was for lease, so I contacted the realtor to see what the monthly price was just out of curiosity. Came back to me saying buyer is pulling and trying to relist again!

Seems like many want out, but are not accepting that it’s a lower price environment.

#202 LivinLarge on 10.24.17 at 1:50 pm

Tulip, THANK YOU for making my day with “That’s my retirement plan you’re messing with.” Seriously…too bloody true for far too many Canadians.

Now, staying with the lotteries issue, it was our fearless leader here who, durring his previous life as a financial journalist, who opened my eyes to the fact that lotteries are “Differential Taxes on the Poor”. When I learned that inconvenient truth I never bought another lottery ticket and took that $20 per week and invested it. One of the single best pieces of financial advice I ever received,

#203 Mal on 10.24.17 at 2:09 pm

Stop the BS with doc and vet being entrepreneur and job creator. Employing your wife and children to do some bogus paperwork is not gonna save the economy. And Garth, your really think MDs are middleclass!? Maybe you are loosing touch with real people.

#204 Damifino on 10.24.17 at 2:10 pm

#200 LivinLarge

Lottery winnings are taxed in the US and there doesn’t seem to be any shortage of lotteries there.
———————————–

The Americans tax lottery winnings after the fact. They also withhold tax from casino winnings above a certain low threshold. Well, good for them if that’s how they want to do it.

In Canada, we think people are happier when tax is deducted at the source, whether it’s income or winnings. What’s the difference? The tax is getting paid.

In the case of lotteries, all the players are collectively covering the tax. It shouldn’t be taxed twice.

#205 45north on 10.24.17 at 2:22 pm

1 percent: Charlie Angus MP for Timmins James Bay: great speech!

The Real Kip: from your link: Eddie Lampert used the Wall Street hedge fund he ran to buy up Sears stock. For many years Sears Canada had usually paid a share dividend of 60 cents. But just six months later, even as Sears Canada was bleeding quarterly losses of $49 million, dividends were boosted to $5 a share.

This experience “sucked all the value out of the company,” says Duvall. In fact, $453 million of company money — badly needed for a turn-around — was paid to shareholders including Lampert and companies controlled by him.

so everybody who works at Sears is wondering what Sears could have done differently – maybe cut some of its leases, move faster to on-line retail? Maybe – but the fight was really lost when Eddie Lampert bought the stock. There’s an expression from the Old South – “sold down the river”. Sears employees, its customers and every city and town where Sears has its stores was sold down the river.

#206 IHCTD9 on 10.24.17 at 2:22 pm

#194 TnT on 10.24.17 at 12:03 pm
#187 IHCTD9 on 10.24.17 at 11:32 am

Agree on all side however it needs to be mentioned the unfortunate pairing of financially illiterate humans with a billion dollar credit marketing environment.

The sheeple had no chance against a willfully ignorant Government and the billion dollar, marketing savvy banking system.

As Marc Cohodes says… GLTFA!
____________________________________

I’ll concede that is probably true for many folks. IMHO, a lot of the borrowing is supported by keeping up with the Joneses, and fake it till you make it aspirations. Big Urban centers seem to be jammed full of these types of doorknobs.

As for me, there is no way to “market” borrowing activity out of me if I don’t want to (I always don’t want to).

#207 TnT on 10.24.17 at 2:40 pm

http://www.cnn.com/2017/10/24/asia/china-xi-jinping-thought/index.html

“At the end of a pivotal twice-a-decade meeting, party delegates voted unanimously Tuesday to make “Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era” a guiding principle for the party.”

“At home, Xi has taken down senior leaders in his anti-corruption drive, launched an unprecedented crackdown on free speech, and radically overhauled the two-million strong People’s Liberation Army, the world’s largest fighting force.”

“Globally, the world will now likely see China continue to step into a global leadership vacuum as the US turns inward under President Donald Trump.”

The Post Modern movement in the West is vulnerable to infiltration and manipulation.

Canada is pointed in the wrong direction and the tailwinds are just picking up….

#208 jess on 10.24.17 at 2:43 pm

let see if the donald gives him up

“Interpol issued a global “red notice” for Guo’s arrest in April, at Beijing’s request, while articles in China’s state-controlled media have accused him of crimes including bribery, fraud, and embezzlement. Guo denies the accusations.

Exiled Chinese tycoon Guo seeking asylum in U.S.
https://af.reuters.com/article/worldNews/idAFKCN1BI0XV

13 May 2017
INTERPOL and China to explore areas for strengthening security and policing capabilities
https://www.interpol.int/News-and-media/News/2017/N2017-063

#209 jess on 10.24.17 at 2:45 pm

TD bank and allan stanford

…”His break came when the Texas oil bubble burst in 1983. House prices in Houston declined by 22% over a four-year period. Stanford Financial started buying real estate from banks in need of liquidity. Stanford would later recall: “For 28 months we were probably the only people in Harris County [Houston] buying real estate.” The firm purchased dozens of properties on the cheap. As the economy recovered over the next 10 years Stanford and his father made several hundred million dollars.
https://www.theguardian.com/sport/2009/feb/20/allen-stanford-profile1
===================
“It was suspicious from the start. Antigua had been flagged by federal regulators and Congress as a money-laundering haven. Stanford had a track record of bankruptcy and legal violations dating back to the 1980s. The SEC investigated him numerous times and was aware as early as 1997 he was likely operating a Ponzi scheme. The Office of the Comptroller of the Currency issued advisories regarding his violation of banking laws in Florida and California. The National Association of Securities Dealers, U.S. Customs, and others investigated his operations and all concluded some element of criminal activity appeared to be present.”
https://www.gq.com/story/billionare-allen-stanford-antigua
Lawmakers want banks punished over massive Ponzi scheme
By Sylvan Lane – 08/10/17 01:30 PM EDT (TDbank is listed along with others + american politicans
correspondent banking services in the U.S. for Stanford, allowing him access to the country’s financial system.

i wonder what happened to the bombardier global jet?

#210 JRT on 10.24.17 at 2:58 pm

#52 Cheap Construction:
Construction is not cheap especially in Canada, but the materials on most new buildings sure are.

#211 Overheardyou on 10.24.17 at 3:12 pm

#9 FOUR FINGERS WATSON on 10.23.17 at 6:48 pm
Garth, you just explained why interest rates are not gonna go up in any meaningful way.

I think you missed the point, interested rates already went up 50% in the last three months from 0.5% to 1.0%. If the poll is accurate, we’ve already passwed the 40% rate increase threshold for these poor souls.

#212 Victor V on 10.24.17 at 3:22 pm

Gotta love this…This mortgage broker advises getting married as a means to qualify for more debt post-B20:

https://www.facebook.com/mortgagejake/photos/a.1094428903925285.1073741825.146719828696202/1716861998348636/?type=3&theater

#213 waiting on the westcoast on 10.24.17 at 3:39 pm

#191 Tony on 10.24.17 at 11:47 am says…
“Re: #155 Honesty on 10.24.17 at 2:25 am

The Canadian millennials were one of the main causes of the housing bubble in Canada by paying far too much instead of not buying when prices rose like sane people do.”

Like there hasn’t been housing bubbles created before by other generations…

#214 LivinLarge on 10.24.17 at 3:43 pm

Well, Damifino, by this logic “In the case of lotteries, all the players are collectively covering the tax. It shouldn’t be taxed twice.” then virtually no capital gains really exist. I buy shares in XYZ with after tax $$ so cap gains on the sale of the shares shouldn’t be taxed again? Great idea, not how it actually works anywhere in the developed world but still a novel idea.

As for US taxation of lottery winnings, they’re taxed at delivery of the funds i.e. source. That one of the reason that so many US lottery winnings are taken over an extended period of time rather than in one cheque.

#215 Hamilton on 10.24.17 at 3:48 pm

Posted in the Hamilton spectator

Amid widespread concern about housing affordability across Canada, the Office of the Superintendent of Financial Institutions (OSFI), the country’s safety and soundness financial regulator, wants to raise the mortgage bar for many potential homebuyers by revising its guideline on residential mortgage underwriting.

The proposed revisions, which are intended to address risks associated with relatively high levels of household debt, include a “stress test” for uninsured mortgages (those with a minimum of 20 per cent down of a property’s value) to determine whether the borrower can meet payments if interest rates rise by two per cent. But is this additional test needed for OSFI to achieve its regulatory objectives?

As noted in a recent study published by the Fraser Institute, the origins of the current guideline are American. Weak underwriting practices — how lenders or financial institutions assess the creditworthiness or risk of a potential customer — in the U.S. helped fuel the global financial crisis, as mortgage loans were bundled and sold to investors including financial institutions around the world. How much did U.S. underwriting standards deteriorate? Some mortgage loans were known in the industry as NINJAs — no income, no job, no assets.

In response to the U.S. housing collapse, the Financial Stability Board (FSB), an international body dedicated to financial stability, introduced an international standard in 2012 meant to ensure that weak mortgage underwriting standards would never again play such a significant role in a financial crisis. In Canada, OSFI responded to the FSB standard by introducing the current guideline on residential mortgage underwriting despite clear evidence, based on arrears data (payments at least 90 days overdue), that Canadian standards had not weakened to levels anywhere close to the U.S.

Now the OSFI wants to further stiffen the guidelines with a prescriptive “stress text” for those who put significant equity (again, 20 per cent or more) down when they purchase a home.

The consequences of this prescriptive test include reduced buying power for some borrowers. It could also drive some borrowers to more expensive unregulated sources of credit and a less-competitive regulated market. And some borrowers may be incented to choose mortgages with shorter or variable terms when available at lower interest rates to increase buying power despite higher vulnerability to interest rate fluctuations.

The case for the test is questionable. OSFI says its primary regulatory objective is to safeguard depositors and policyholders from loss on the funds they have entrusted to financial institutions. Besides a lack of evidence of a problem based on arrears data, a cushion against loss in the event of default already exists — uninsured mortgages require a minimum of 20 per cent down of a property’s value.

But ironically, the strongest reason why the proposed test is unnecessary is the robustness of OSFI’s existing regulatory framework. OSFI expects financial institutions to hold capital against unexpected losses that exceeds international standards. OSFI guidelines require a lender’s board to define the risk appetite and set internal controls to ensure the risks taken by the institution are consistent with the board’s risk appetite. And OSFI does not wait for a serious problem to emerge, but intervenes early to direct an institution to correct any observed deficiencies in practices. The OSFI’s framework has drawn praise internationally.

But requiring a specific test to address what is, at most, a temporary problem would mark an ominous turn toward a more prescriptive style in OSFI’s supervision of financial institutions. Concerns over high household debt are better addressed within OSFI’s current regulatory regime by ensuring institutions have adequate policies and procedures to manage underwriting risk. Financial institutions would retain the flexibility to choose a mix of underwriting criteria in areas such as debt service coverage and loan-to-value ratios to ensure mortgage loans are consistent with the board’s appetite for risk.

In addition to better meeting the needs of the market, and increasing home-buying opportunities for Canadians, this would also allow institutions to respond more efficiently to changing conditions in the market through adjustments to underwriting criteria.

Neil Mohindra is a public policy consultant and author of Uninsured Mortgages Regulation: From Corporate Governance to Prescription, published by the Fraser Institute. Distributed by Troy Media

#216 PastThePeak on 10.24.17 at 4:35 pm

#197 IHCTD9

Governments in Canada will be going broke, and there’s nary a concern among the majority of Canadians that I can see.
====================================

That’s what I find most disturbing. Almost no one – and I mean no one (right side, left side, don’t have a side) has any knowledge of the issues, and don’t want to talk about it. I am talking about very intelligent people that work in a variety of industries, different backgrounds, etc. Nobody wants to talk about politics – unless it is the crazy things Trump is saying/doing, or how great Justin looks and how much better he is than that stuffy old Harper.

So the reason that there is nary a care, is that no one knows, and they don’t want to know. Only when the party is over will they wake up, and want to blame someone.

Democracy’s greatest weakness is an ignorant electorate that can be swayed by snake charmers. We are seeing this, in different ways, on both sides of the border. It is unlikely to get better anytime soon.

#217 wallyBC on 10.24.17 at 4:41 pm

Hi just wondering if anyone else is picking up on Steve ” the big short” Eisman’s comments the other day. Looking at your post Garth with the stats from Ipsos it appears we are at the cusp of an epic credit contraction, complete with bank loan and margin calls once it gets rolling. Housing, yeah but that will be a lagging indicator of a credit crunch.
I’m thinking the central bank will have no choice but to raise rates to retain par with the American dollar to keep our purchasing power intact especially for seniors on fixed incomes. I’m talking life’s essentials like food, medical supplies, rent, etc.

#218 Happy Housing Crash Everyone! on 10.24.17 at 4:45 pm

#183 Victor V

Good to see CRA going financially punish the speculators. This will send a message to others to get out of the game. Less buyers in a crashing market = B IG CRASH! :-)

#219 the ryguy on 10.24.17 at 4:56 pm

#197 IHCTD9 on 10.24.17 at 12:45 pm

———————————-

While I tend to agree with the voters are idiots sentiment, I disagree in that I don’t think these losers in power give two sh*ts about you or I.

Just for example, one of the first things the NDP did was raise the taxes on small breweries. No reason other than they wanted more money. They didn’t say what it would be spent on, just rolled out the annoyingly plain “they are currently not paying their fair share” nonsense.

Now I could be wrong (Im not), but nowhere in their platform did it say anything about this. There was no mass gatherings of angry albertans chanting about the evils of small brews. It was a cash grab. Thats not up for debate, thats what it was.

Really if you zoom out from that even a little bit, you see thats all they do. People need to wake the F up and realize this. They don’t care. Its about stuffing their own and their friends pockets and thats it.

#220 Eddie Lampert on 10.24.17 at 5:07 pm

#205 45north

There’s an expression from the Old South – “sold down the river”. Sears employees, its customers and every city and town where Sears has its stores was sold down the river.

What do you expect? What would you have done?
You or the suckers? Be honest now…