Insatiable

Lost in the fog of taxes, ageism, generational warfare, eat-the-rich, house lust and moister-bashing is the reality of debt. If we should all worry about one thing (other than drowning polar bears and who the hell mows Kim Jung Un’s hair) it would be this. Debt accumulation has the potential to wreck families and governments. Yet, nobody cares.

The Ontario election is a case in point. The poor province has the largest sub-national debt on the planet at over $340 billion, and taxpayers fork out $12 billion a year paying only the interest. But, nah, nobody cares. The Dippers are on the rise promising ‘free’ child care, ‘free’ pharmacare and vastly more spending on health and education. The NDP says it would add to the debt in order to pay for this stuff, plus “make the richest pay a little more.”

In fact the top tax bracket would rise 2%. So, would that cover the extra billions?

There are 272,000 1%ers in Canada (earning over about $220,000). In the GTA, about 1.6% of the population falls into this cohort – about 95,000 people in six million residents. Two-thirds of Ontario’s population lives in the region, so in all of the province there might be 150,000 rich guys. The average 1% income is $380,000, and the average tax they pay is $170,000. So if they all pay 2% more (not all of that would go to the province) the grand total is $510 million. In other words, this is enough to pay the interest on the existing debt for 15 days.

Hmm. The Dippers, however, plan to spend $5.3 billion more annually, rising to $15.8 billion extra (per year) in five years. So where does the money come from? Well, up to $670 million of that shortfall within a few years, the party says, will come annually from new taxes on real estate – a copy of BC’s ‘speculation’ tax, which is not about speculation at all, but a tax on people with more than one property. If you think raising taxes on houses will lower their cost, then go ahead and vote NDP. You are a perfect match.

Anyway, let’s forget the fools running the place and worry about ourselves. The bottom line of the current drift left in Canada will be more services, higher taxes, lower disposable incomes and no change in housing affordability. The wealth gap will grow. As the funky little chart in yesterday’s blog showed, it’s those at the bottom 90% of the income scale who carry the lion’s share (74%) of the debt. As taxes and interest rates rise, guess who is whacked most?

This week a new survey from the financial consulting company MNP helps answer that rhetorical question. Almost 60% say their income would have to rocket higher to get along without relying on debt. The average raise required: 37%, which ain’t gonna happen in this economy.

“It used to be that people would save for big purchases and have some money tucked away for emergencies. Now Canadians look straight to HELOCs or credit cards or other forms of debt when it comes to paying for unexpected car repairs, home maintenance, and even basic household expenses,” the company concludes.

But, alas, most people don’t save. They just spend, and a growing number finance that with debt. The household total is over $2.1 trillion, bigger than the whole economy. Two-thirds of that is mortgages and another big hunk is HELOCs. Speaking of mortgages, it’s interesting to note that a fifth of Canadians bought their houses prior to 1990 and still haven’t paid them off – almost 30 years later. And in 1990 the average place cost $147,000. Now imagine how long it will take someone putting down $970,000 for a slanty semi and starting a family to surface, as interest rates drift higher at every renewal. Financial illiteracy is apparently alive and well.

These days more than two million households have home equity lines of credit, and almost all of them are demand loans. As TD showed the other week, a lender can send a letter any time informing you the rate’s rising – sometimes dramatically – regardless of what the Bank of Canada’s doing. You have three options: pay up; don’t pay and have your debt grow larger until it tops out; or give all the money back.

Speaking of HELOCs, this thing from the National Bank is interesting…

Now we find out that the number of households over the age of 65 with HELOCs has quadrupled. Meanwhile the proportion of younger households (to age 44) with debt has increased to just under 90%. The median debt has doubled in recent years. And half of Canadians tell pollsters they probably can’t get through the next year without increasing their level of debt.

See? The NDP got its inspiration from us.

Did I ever mention how this ends?

206 comments ↓

#1 NoOneOfConsequence on 05.28.18 at 4:40 pm

We just need to make the rich pay even more – problem solved. There is no acceptable reason for any one person to make more than $50,000 per year. I mean really. Let’s get back to basics and stop the hyper focus on money.
Guaranteed income for all I say!

#2 Conn Smythe on 05.28.18 at 4:42 pm

“Did I ever mention how this ends?”

Weimar Republic hyperinflation?

#3 Howard on 05.28.18 at 4:48 pm

It won’t “end” for decades.

Tater Tot in QP today touting the “labour shortage” nonsense again. Pretty obvious how he intends to keep kicking the can down the road.

#4 TurnerNation on 05.28.18 at 4:52 pm

Yup yup kids join a public union else sling bagels on the slog. Sunshine list explosion:

https://www.reddit.com/r/toronto/comments/8mqio9/the_exponential_rise_of_toronto_police_on_the/


But this 61 year old legend didn’t do so:

““I haven’t had a weekend off for years. What am I going to do next Sunday? I don’t know. Probably sleep. Take my dogs for a three-hour walk. But I’m not retiring … I’ve got two kids, and too many payments!”

https://www.thestar.com/entertainment/movies/2018/05/27/toronto-radio-station-q107s-psychedelic-sunday-signs-off-and-its-a-bummer-for-loyal-listeners-man.html

#5 Stan Brooks on 05.28.18 at 5:10 pm

Not to mention that credit junkies are also the main reason for the rampant inflation, spending money they don’t have boosts the demand side by increasing prices which impacts also the fiscally prudent/savers.

In short: You can’t be normal while surrounded by idiots. Period.

You always pay one way or another.

As for Ontario: It beats me who will lend this bankrupt province even a penny, no matter the interest.

Really, there is no way that debt is repayable in any shape or form in real terms/value.

It is interesting who are these idiot ‘investors’.

Hint: It may be your pension fund, subsidizing the insane politicians and their endless credit orgy.

Cheers.

#6 Lead Paint on 05.28.18 at 5:11 pm

This is really scary… I need to change my speedo.

#7 Figus Makum on 05.28.18 at 5:12 pm

Reply to #1:
Путин, это ты?
Дуг Форд нуждается в вас помочь.

#8 Lawnboy on 05.28.18 at 5:15 pm

I’m quite sure that dog is a “chow”!

#9 Lawnboy on 05.28.18 at 5:22 pm

@#1 No-win-of-consequence ….

Oh really! What colour is the sky in your world?

And 2……Iam quite sure that puppy is a “chow”. (Or will be soon)

#10 Willy H on 05.28.18 at 5:22 pm

“150,000 rich” peoplekind in Ontario.*

210,000 low income students going to school “tuition-free”. In fact they will receive more in grants than they pay in tuition! An excellent way to breed left-wing nanny-state cheerleaders and reinforce the Dipper “something for nothing” ideology.

No asset test for parent’s and student’s – all income based.

https://www.thestar.com/news/queenspark/2017/09/11/one-third-of-ontario-college-and-university-students-receive-free-tuition.html

https://www.thestar.com/news/queenspark/2016/02/25/free-tuition-for-college-or-university-promised-to-students-from-low-income-families.html

Don’t get me wrong. I am all for low cost university tuition. But not for a select few – for all!

Who is footing the bill for all of this you might ask?

My kid is paying $3,000 a semester out of his summer job earnings and my wife and I top-up the rest of his tuition and living costs. Total annual tuition and living costs just over $30K per year! His textbooks and co-op fees alone are over $1000 per semester. My kid has some “skin in the game” and he know’s if he blows his chance at uni he won’t be getting a nickel more for his post-secondary adventure from Mom and Dad!

Over the years we have lost almost every middle class tax break as our incomes combined are too “high”. The most recent being the loss of the tuition tax credit and education tax credit. Both are to be cancelled in Ontario to pay for “free” tuition for low-income students!

Not only are we footing the full cost of our young adult children’s education, we are forced to pay for low-income students as well! Low income students don’t have to worry about the 4% year over year increases in tuition because tax-payers like me have them covered! How NDP of me.

We responsibly saved in RESP’s only to find the government’s 20% (approx. $7,000) swallowed up in year over year tuition increases of 4%. Netting the government portion against the future lost tax breaks noted above makes it all but disappear! A welfare state shell-game.

Ontario now has the most expensive university tuition in Canada.

Where do the PC’s in Ontario stand on tuition? Who knows? Too busy pushing Circle-K liquor sales.

If only the Conservatives in Ontario had a platform and leader with principled and fiscally responsible policies!

*50% in the public sector without doubt!

PS – Received a call from my son’s university looking for a donation for “student mental health”. I bit my tongue and politely declined.

#11 crossbordershopper on 05.28.18 at 5:22 pm

well Garth it ends the same way, everyone dies.
my sister in law a well off hard working immigrant passed two weeks ago. sacraficed her life almost for her children, her children, nother happiness, so she accumulated millions great.
now she is gone at 55. the odd vacation to an all inclusive, watched her money tightly, never splurged on anything, and you think it means anything.
so blaming people to take advantage of a credit strucutre that allows fully money to be used to buy things for current consumption might be bad if over done but who cares.
We should all be natives, dont care about anything live in the moment and die young. My sister in law did the opposite and she passed early without the benefits.
you litterly cant take it with you. God Bless Maria.

#12 Cocaine Communist on 05.28.18 at 5:23 pm

Yeah, right, Garth, it’s just an NDP problem. Because Doug Ford is so fiscally prudent, what with his promises to lower personal and corporate taxes, eliminate carbon taxes, and cut gas prices, all while cutting zero jobs, improving public transit and healthcare, and lowering energy prices, ALL WHILE BALANCING THE BUDGET! Thank God for conservative magic! Look at the wonders it’s done for the UK:

https://www.nytimes.com/2018/05/28/world/europe/uk-austerity-poverty.html?hp&action=click&pgtype=Homepage&clickSource=story-heading&module=first-column-region&region=top-news&WT.nav=top-news

#13 MF on 05.28.18 at 5:23 pm

People use HELOC’s because they have worked. House prices have gone up for 15 years straight and the money seemed endless.

The overleveraged have therefore been winning. Most of us who saved, rented, and yes invested are behind. RE gave the average person access to extreme leverage.

Whose fault is it? Well no one really. It’s just how things unfolded -and now we deal with the aftermath (huge debt, NDP almost seen as a legit political party, etc.).

I can almost see the appeal.

—>Example: there was an open house Saturday on my parent’s street where I grew up.

My mom said “wouldn’t it be great if you were close by??? Lets take a look!

So we did since I thought the GTA was correcting (yeah right).

Average place. Smaller than my parents. Had a wine cellar which I couldn’t give $%^* about.

Asking price: $1,399,000.00

Lmao. The look of my mom’s disbelief was hilarious. We left obviously.

—>Point: The price was a joke. The market is clearly a joke. The sellers are a joke. You can see why some people would want to stick it and vote for anarchy and failure (NDP). That’s IH’s strategy also I believe….

We will see what happens.

MF

#14 FOUR FINGERS WATSON on 05.28.18 at 5:28 pm

And voila ! You have just explained why low interest rates and easy financing will be with us for decades if not forever. Actual interest rates will never return to historical norms cuz it would bankrupt both governments and consumers.

So, while interest rates and bond yields are still going higher, the overnight rate will probably stall out at about 3% or 3.5% and then we’ll, in all likelihood, witness a resumption of the long, inexorable, downward move in interest rates and bond yields. Rowat 5/5/18

I see the Canadian economy slowing over the next 12 months on higher interest rates and NAFTA overhang but I don’t believe a major slowdown is in the cards. For that to happen we would need to see the US economy roll over, a large spike in oil prices or materially higher interest rates which I see as unlikely. 24 months out is harder to predict right now. –
Ryan L 5/26/18

Interest rates will be as low as possible for as long as possible
FF Watson 2013-2018>

#15 ifriend on 05.28.18 at 5:30 pm

RE: If you think raising taxes on houses will lower their cost, then go ahead and vote NDP.

You should say differently. :) if you feel like a loser then vote NDP to screw up the rest of us, then we can all feel like losers :) NDP will destroy lots of things and it will bring prices for the houses down for sure, but at the same time it will bring down the quality of life in Ontario as well. Sometimes I think may be I have to find a remote work in US(since I’m a software developer) and forget about everything else. Defiantly will do that if NDP wins.

#16 Uncle Bob on 05.28.18 at 5:32 pm

Unless they bring back debtors prisons or start busting knee caps, who cares. Carry on.

#17 Padmavati on 05.28.18 at 5:33 pm

No hyperinflation, just defaults on bad loans, lenders should face the consequences of lending money.

Sometimes I think debts don’t matter considering how large the debts are in this country at federal provincial and individual levels.

#18 Better than income tax on 05.28.18 at 5:35 pm

income tax is not the answer.

it must be a net worth tax.

example:

net worth between $1 Mil to $2 Mil >> pay 1% of net worth in extra tax each year.

net worth between $2 Mil to $5 Mil >> pay 2% of net worth in extra tax each year.

net worth between $5 Mil to $10 Mil >> pay 3% etc….

This is no different than the wealth tax that investment advisors charge their clients accept the tax is reversed were those with the lowest net worth pay the highest percentages. The strategy i suggest is an improvement of the current wealth management industry model where those with the less assets pay the lowest tax.

Never happen, of course, since ‘wealth’ is money that was already taxed when earned. – Garth

#19 SunShowers on 05.28.18 at 5:36 pm

This is the inevitable result of wages stagnating for years and years while inflation and the costs of living march inexorably higher.

All of the financial advice in the world won’t do somebody a lick of good if they don’t have any finances.

#20 Gulf Breeze on 05.28.18 at 5:37 pm

Garth,

I think it should read who ‘Mao’s Kim Jong Un’s hair!

#21 FreeBird on 05.28.18 at 5:43 pm

Decent breakdown of each platform (incl Greens)…

https://www.thestar.com/news/queenspark/2018/05/07/here-are-the-four-candidates-wanting-to-be-ontarios-next-premier-and-what-theyre-promising.html

In keeping with today’s blog post…NDP not scandal free (none are)…

http://www.thesudburystar.com/2018/05/26/candidate-controversies-mount-for-ndp

#22 Gulf Breeze on 05.28.18 at 5:49 pm

Garth,

Why wouldn’t raising property taxes on houses lower their cost? Why would it be any different than rising interest rates, in that regard?

Also, the wealth tax on expensive homes in B.C. Can be deferred until the home is sold, so people who are asset wealthy but income poor shouldn’t be affected.

An elderly person who has to sell to go into assisted living, for example, is going to take a hit on a house that may have cost him or her 400,000.00 to purchase twenty years ago. But that hit will be a few hundred thousand on a house that could easily have appreciated to over 3,000,000.00!

How is this a bad thing? How is this ‘unfair?’

The question is, why? Why force people from their homes if there is no social benefit and it doesn’t make house more affordable? The only answer – you hate people with more than you. That’s sad. – Garth

#23 Honey Dripper on 05.28.18 at 5:50 pm

You can’t tax our way back to growth and prosperity. You also can’t cut our way back to growth. I didn’t like any of the candidates last night.
We’re screwed, really we are!

#24 Linda on 05.28.18 at 5:51 pm

People do care about debt – they mainly want it to ‘go away’ without that pesky problem of having to pay back what they’ve borrowed plus interest. Anyone who has no outstanding loans/debt & pays off any credit card balance in full every month in considered to be ‘rich’ by those who couldn’t live within their means if their lives depended on it. Or more accurately, do not want to live within their means.

If someone wants to spend money they don’t have to get something they want, that is their choice. What I object to is when those self same people demand ‘the government’ redistribute wealth so that they can continue to live the lifestyle they want while others pay for it.

#25 Loonie Doctor on 05.28.18 at 5:53 pm

My wife and I watched the debate with our kids last night. Was sad, funny, and scary at the same time. The best comment came from my 12 year after listening to Wynne and Horvath. “Dad, if everything is free, why do we bother with money?” The other funny one-liner was “That guy doesn’t really seem very smart”. All the choices are scary in their own way.

#26 Shawn on 05.28.18 at 5:53 pm

Big rally into the end of the year coming.

Buy VFV…

#27 Bola on 05.28.18 at 5:55 pm

#15 ifriend

Hahahahaha. When NAFTA gets SHAFTA, who will hire you south of the border my friend?

#28 Don on 05.28.18 at 5:56 pm

#12 cocaine communist
You are right about Ford. He won’t cut spending and is like the other parties but the big difference is that he allows for business to grow and thrive. Someone has to pay for all this debt. Look at the NDP. They will spend like crazy but choke off business. Who will invest in this country when you can go next door to the US.

Anyone voting for NDP is just jeolous of people who have done well. Compare living standards today compared to 50 years ago. Everyone is much better off. People living longer. Travel is cheap. Food and water is plenty. If you are unhappy it has a lot to do with jealousy.

#29 Bob Dog on 05.28.18 at 6:01 pm

A socialist NDP governemnt is the predictable result of the policies put in place by a corrupt government and their puppet masters at the central banks over the last 15 years.

What were you expecting? The land of inequality?

Here is an idea. Reinstate the bank of canada and the taxpayers wont have to fork out $12 billion a year paying only the interest on the debt.

#30 Wrk.dover on 05.28.18 at 6:02 pm

The financial illiteracy starts right at the top, in Poloz’s office of all places.

Why does the credit flow like diarrhea at a Dominican Republic Resort here in Canada?

Request from the Bilderburg Group?

I feel pretty ignorant, being a saver. I have a pretty good notion what will happen to my savings.

A wheel barrel of cash for a loaf of bread? Soon.

#31 Victor V on 05.28.18 at 6:04 pm

http://toronto.citynews.ca/2018/05/28/ndp-keeps-surging-doug-ford-has-blown-the-lead-mainstreet-poll/

“It’s official – Doug Ford has blown the large lead he had in March and the Ontario election is a competitive affair,” President and CEO of Mainstreet Research, Quito Maggi, said in a release Monday.

#32 Reality is stark on 05.28.18 at 6:05 pm

Our companies now face a higher corporate tax rate than their competitors in the USA. Under Andrea that differential becomes much worse. Corporate relocation will be inevitable.
Employment will deteriorate. Higher taxes on the highly skilled will also encourage them to relocate to the USA where the climate is much better.
Getting rid of high achievors and leaving the mediocre behind does not help you in the long run. Bloating the public service does not help you either.
Yet this is what Canadians aspire to.
So sad.

#33 common sense on 05.28.18 at 6:13 pm

First it ends in a crash, then more band aids – debt, then war.

Same as it ever was, same as it ever was…

#34 Bob on 05.28.18 at 6:14 pm

Ever get the feeling that the country has gone over a cliff?

Yes, actually some time ago…but now it’s just a matter of how hard we hit bottom.

#35 Vince on 05.28.18 at 6:15 pm

You talk about debt like it’s a problem Garth. The government have a money printing press, Garth. This country will never go bankrupt. Even if it did, most of us would have died of old age by then. I’m voting NDP. Let’s see that debt balloon!!

#36 Stone on 05.28.18 at 6:18 pm

Almost 60% say their income would have to rocket higher to get along without relying on debt. The average raise required: 37%

———

Give me a moment. Ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha!

Ok, I needed a moment to breath but I’m not done yet.

Ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha!

I think that was the best stat so far. Dumb and dumber. Unbelievable! Or would that be unbelievable???

#37 Month2Month on 05.28.18 at 6:18 pm

An increase in HELOC of 6.8% over 1.5 years is hardly surging. But it sure does look that way when you zoom in on a graph!

#38 Rennie McLou on 05.28.18 at 6:22 pm

Garth, If the Dippers take Ontario and in 2019 at the Federal Level, will you be moving to Manitoba?

#39 tccontrarian on 05.28.18 at 6:22 pm

“Speaking of mortgages, it’s interesting to note that a fifth of Canadians bought their houses prior to 1990 and still haven’t paid them off – almost 30 years later. And in 1990 the average place cost $147,000. Now imagine how long it will take someone putting down $970,000 for a slanty semi and starting a family to surface, as interest rates drift higher at every renewal. Financial illiteracy is apparently alive and well.” – GT
—-
It’s quite alright Garth – average life-expectancy is on the rise and will be ~90 soon. That’s 70 years of gainful employment!
…..

“Did I ever mention how this ends?” GT

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

Add to the mix a crushing bear market in stocks etc. and the word ‘epic’ comes to mind. If you haven’t watched those YouTube videos of the 2004 tsunami in Indonesia/Thailand, when the people were intrigued by the receeding waters and walked towards the sea instead of running for the hills, well, I think we’re witnessing the prelude of a financial tsunami of similar proportions.
I’m up high on a hill looking down – with non-GMO popcorn on the ready.

TCC

#40 David on 05.28.18 at 6:23 pm

Housing shmousing: I want that Boston puppy in my arms NOW. Garth you make not owning a dog almost impossible, which I think is the true objective of your blog.

#41 Dan on 05.28.18 at 6:29 pm

DELETED

#42 Lee on 05.28.18 at 6:30 pm

I believe about one third of the 1% ers in Ontario are doctors, veterinarians and dentists. (I think the balance are investment advisors with blogs).

#43 Shawn on 05.28.18 at 6:33 pm

Buy QQQ immediately

#44 Fake News Again on 05.28.18 at 6:35 pm

Why is it NO ONE EVER talks about cutting the grotesque size of GOVT. It would save tens of billions of dollars a year…..oh wait….most of the people that read this blog are Govt Workers or retired Govt Workers living off of the plebs that pay for their 50K a year pensions.

#45 University Fees on 05.28.18 at 6:38 pm

I just checked the full time tuition fees 2017/2018 in another Province for an undergraduate degree. The average amount is just $7,000 per year, and books and living expenses will be extra. Even the higher degrees for the professions are cheap. It pays to shop around.

#46 john m on 05.28.18 at 6:40 pm

If you want to achieve wealth in Canada forget about saving…instead make large donations to the political party you think will win (if your born with a silver spoon in your mouth donate to all that you think will win)….they will look after you…this has been the Con and liberal playbook since i was born.

#47 Danny on 05.28.18 at 6:41 pm

Too bad the conservatives chose an illiterate Ford.
He still calls himself a non politician who boasts about his overstated political achievements.

The one who was the brains behind his brother at Toronto City Hall….a huge failure.

A time of the worst dysfunctional City Council, where very little was accomplished, except for an unusual action by Council to remove the Fords from having power. …because of more than incompetence.

Yesterday’s debate further demonstrated that Ford is just a parrot…….over using the “My Friend ” card.

Really Ford……telling people to ask your boss and doctor how to vote…. Do you really think that people like their boss?

Have you ever worked for anyone?

How about your plan….where is it?

So unusual for the conservatives not to tell voters what it’s detailed plan is. Why?

The gas money won’t be enough to pay for car alignment repairs when those road potholes will not be repaired.

#48 Did I ever mention how this ends? on 05.28.18 at 6:41 pm

#2 Conn Smythe on 05.28.18 at 4:42 pm

“Did I ever mention how this ends?”

Weimar Republic hyperinflation?
* * *

AKA Zimbabwe style hyper inflation?
Venezuela style hyperinflation?
3rd Century Rome?
Poland?
1944 Greece?
Confederate America?
Hungary?

Just pick your flavour. If can’t repay, inflate away! Get the scissors out and snip a few zeros off the end of each bill. You’ll be alright.

#49 Stone on 05.28.18 at 6:42 pm

Wow! Lots of communists coming out of the woodwork tonight. Could you please climb back into the woodwork? Especially #1. Where are you all coming from? Communism = breadlines and general poverty. I very much doubt most of you were born during the time of the USSR who are making such idiotic comments. Make sure you understand what you are saying.

#50 john m on 05.28.18 at 6:43 pm

Wow not even a deleted…my comment gone instantly!

Your comment was in moderation while I walked my dog. Keep your shorts on.- Garth

#51 Belfountain on 05.28.18 at 6:44 pm

Hi Garth … a question about the published statistics … I have a secured HELOC that is way bigger than I would ever use. The [email protected] insisted on the larger amount in response to my demand for the lowest interest rate. I didn’t care because I would never be tempted to use all of it, and, in fact, it has a zero balance at the moment. Is the entire inflated amount available to me included in the published data, or do they count just the running balance?

The advanced amount. – Garth

#52 Bob Dog on 05.28.18 at 6:45 pm

DELETED (Never do that again)

#53 WUL on 05.28.18 at 6:47 pm

Just a note of thanks from Alberta to its forlorn sister, Ontario. Your provincial election is providing wads of entertainment to me.

A quandary exists however, and that is the June 7 conflict for my eyeballs on the TV. I think I will go with Caps vs. Knights that night and hit the Toronto Sun website at midnight MDT.

Best wishes,

WUL

#54 Headhunter on 05.28.18 at 6:47 pm

“DO THE MATH” County of Simcoe (insert your county here) Top Ten Private Employers (2016) 12500 employee’s Top Ten Public Sector Employers (2016) 27000 employee’s Margin of 2-1. System is broke and broken. It’s also a quick lesson how to stay in power as a Politician.

Doesnt matter who wins Gov’t will be pared down Cant sustain these #’s no matter how much fear mongering.

https://edo.simcoe.ca/Shared%20Documents/About%20Page%20Links/2016%20Top%20100%20Employers.pdf

#55 Cto on 05.28.18 at 6:48 pm

This is a message to Doug Ford.
Smarten up! Damn it! Or anyone that was a liberal is going to vote NDP and you and your party are going to be crushed!
That’s the unthinkable!!!
Damn you conservatives why Ford ? why Ford! You had some good smart capible women there! Why Ford??? You remember the last time you lost to the Liberals and why you lost??? Do you not learn anything????
The conservative party has to drastically change its way of thinking or All Is Lost!

#56 RentYVR on 05.28.18 at 6:48 pm

Garth, that chart only goes back 5 years and is in $ terms. Do you have one that goes back longer and is in %? That would be a more significant data summary.

#57 Craig on 05.28.18 at 6:51 pm

Re #18 Net Worth

So some old retiree who has spent his or her whole life working and live frugally in a rented 1 bedroom apartment with a net worth of $1million or so is considered wealthy? If that person took that money and bought a beater bunglow in Toronto or Vancouver then they would have no money and would have to live on CPP/ OAS / HST credit and any other subsidy available just to try and survive. On the flipside someone who lives well above their means in an expensive home mortgaged to the hilt, leases a beamer, maxes out credit cards and parties like it’s 1999 gets a free ride because they’re considered to have low net worth ? Like Garth says, it will never happen.

#58 Me bank on 05.28.18 at 6:52 pm

Pickering Pickering oh yeah or I can give you a mortgage in 48 hours even the bankers come to me for mortgage

#59 Blacksheep on 05.28.18 at 6:59 pm

Shawn # 210,

“The government is no more subsidized than is the grocery store as long as it “charges” a fair price in taxes for all its services.”
——————————————–
So….you’ve gone from disputing the actual source (mainly private) of the “claim cheques” that funds much of the operations of our society / governments, to attempting to justify it’s actions, as long as it charges a “fair price” for its services.

This was never in debate from my person, as I have no fundamental issue with how the system works. I just shared my opinion on who funds it, while in conversation.

But since you’re comparing the two sectors:

1) A diverse service / goods provider (private) who must absolutely compete in a free and open market for sales / revenue to survive, thus guaranteeing fair market value, or face financial ruin.

With,

2) A monopolistic service / goods provider (government) that has basically zero real world accountability for either fairness nor efficiency to its customers, due to the fact it extracts is revenue not thru attracting a customer base with good value offered, but by legal force, leaving the customer zero alternatives, regardless how shitty or unwanted the services / goods provided may be.

Can you spot the differences?

The option to pick a different party when voting is fruitless as the political culture of “give people what they want” runs deep. This is why the gov. ends up spending more than the tax base can afford, so taxes keep increasing and we get bigger national debts.
————————————————
We can keep going, if you keep changing topics, but it will not change my original statement, because you have failed to prove otherwise:

“I claimed the operational costs of running, all levels of government are largely subsidised by the private sector.”

#60 Blacksheep on 05.28.18 at 7:01 pm

Gravy # 222,

“Where’s the flaw in my thinking? Where am I going wrong? :)”
————————–
Not my word, but my two bits on the topic:

Intangible:

Paper / digital money, has value only due to its sovereigns backing. This is really just a piece of polymer film or a digital entry. It also caries the benefits / liabilities of said sovereigns actions, good or bad.

Tangible:

Gold bullion is just the opposite of above, having no sovereign liabilities. This item can get lost in ship wreck for years, yet still hold a high % of its original market value, not based on the sovereign that made it, but solely on its weight and purity.

No, I’m not a gold bug anymore, not claiming gold is money, but still recognize it’s value for certain purposes.

#61 not so liquid in calgary on 05.28.18 at 7:06 pm

Tax CONSUMPTION, not income

#62 Bobby on 05.28.18 at 7:09 pm

I stand by my position that governments should introduce a tax on idiots. You know, the crowd that believes everything is free because someone else is paying.
Just ask the average voter in BC how it’s working out now. They’re starting to find out is actually they that are paying. Ouch!

#63 Casual Observer on 05.28.18 at 7:11 pm

Hi Garth,

On the HELOC chart it is not clear for me if that is only the total possible borrowing amount or the actual amount which has been borrowed and is now due for repayment.

Can you please find out for us and maybe show the delta between the two as a trend chart?

I can see that many people in recent years have added a HELOC to their finance options so creating a comparison image of the growth in people getting HELOC’s for having available funds vs people using their HELOC’s and creating more debt over time would be an interesting chart.

Thanks for considering the request.

Cheers !

#64 Leo Trollstoy on 05.28.18 at 7:28 pm

why is the C$ sucking?

oh yea, because we’re becoming socialist

US$ all day every day

#65 Bob on 05.28.18 at 7:30 pm

“Your comment was in moderation while I walked my dog. Keep your shorts on.- Garth”

____________________________________________
At least someone on this blog has their priorities straight…
I’m sure the dog appreciated it…carry on!

#66 Smartalox on 05.28.18 at 7:31 pm

The wealth gap will grow. As the funky little chart in yesterday’s blog showed, it’s those at the bottom 90% of the income scale who carry the lion’s share (74%) of the debt. As taxes and interest rates rise, guess who is whacked most?

I thought yesterday’s chart referred to the breakdown of ‘wealth’ – the top 1%, the next 9% and the lower 90%, such that the lower 90% carried 74% of all debt.

I want to make this clear because social engineers (and the people who vote for them) don’t often realize that INCOME is not the same as WEALTH.

If you have a high income, but also carry a lot of debt, then you are NOT wealthy.

If you have a modest or low income, but avoid debt, then you ARE wealthy.

Even if you have only $1 in savings, you’re (technically) wealthier than someone with large debts.

Ivanka Trump once quoted her father as pointing out a homeless person on the street, and saying ‘That person there has nothing. Zip. Zero. Which is about a billion dollars more than I have, right now!’

#67 akashic record on 05.28.18 at 7:34 pm

Did I ever mention how this ends?

I can’t remember if you did mention that it can only end with total financial collapse, reset and clearing most debt.

It’s hard to see it any other way, especially when the same record private and government debt applies virtually to the whole world.

Today people who are about to go under elect politicians, who can give them handouts put on the public’s credit card.

These publicly funded handouts function as a substitute for the missing increasing income, and the increasingly worthless currency. That’s behind the raising popularity of NDP, even if it comes packaged with crazy political ideas.

Wage bargaining used to happen on the market, now it is happening in electing governments who subsidize income with publicly funded handouts on credit.

Governments also provide political support for all the fringe, radical elements of society,as part of the bargain of the screwed up economy that is beyond repair.

All of this is happening on credit, of course, slipping deeper and deeper into the rabbit hole.

The debt slave masses will keep electing various versions of totalitarian flavours, Communists, fascists, whoever offers better extension of credit for the moment.

Eventually it becomes obvious that none of the delays can change a thing, while the masses give up all the freedoms and become political slaves of totalitarian regimes, not just debt slaves.

At that point all one can wish for is a total reset – at any price.

No, I don’t think you ever mentioned this. You like to keep the drama contained at real estate.

#68 Muttley O'Toole on 05.28.18 at 7:35 pm

Did I ever mention how this ends?
From afar I reckon the only out for Canackstan will be to apply to become 51-60 states (plus 3 territories) of that southern republic.
At least you will have Donald to blame for all your woes.
Your consolation will be that he appears to be taking the wip to the public service.

#69 Looney Baloney on 05.28.18 at 7:40 pm

Mr. G, it’s obvious all this debt will eventually be hosed down with the magic wand of hyperinflation. Which is also why no matter how much taxes go up, asset prices aren’t coming down any time soon.

The government steals from the pockets of the diminishing productive class and feed it into the pockets of the unproductive, with a little cherry on top in the form of increased federal and provincial debt. Everyone knows the emperor has no clothes. The budget will balance itself, so in the meantime, quit being a downer and party on, Garth, party on Wynne!

But seriously, what serious options exist in today’s globalized world for preserving wealth in a hyperinflationary environment? Could one of your hound dogs (whistling for Ryan or Doug) look back through the pages of history and find what survived best besides gold and land? Are stocks and bonds still a prudent investment in this environment? How about sponsoring foreign third world governments or buying elections? Is buying power while your paper is still worth something the only option left?

There is no hyperinflation coming in your lifetime. – Garth

#70 Adam on 05.28.18 at 7:43 pm

The National Bank chart shows Helocs going from 207 to 221 billion. A 6% increase over 5 years which is actually less than the rate of inflation but the chart looks much better if you cut off the bottom 94%. I guess National Bank likes doom porn just as much as the rest of us.

With this much debt, will there be a day of reckoning like the US or will we slowly turn into Japan? When does Turner Investments short the TSX?

#71 crowdedelevatorfartz on 05.28.18 at 7:50 pm

@#229 Conn Smythe
“My Chinese students have told me that the Chinese government has had a field day with Trump. He has been made into the poster boy for why democracy is inferior to the Communist Party’s control over the country.”
+++++

Tell you what.
Challenge your Chinese students to post a picture of the leader of their country Xi Jinping next to a picture of Winnie The Poo……
Then.
After they have been arrested, beaten and jailed…..you can ask those smug little pricks which system of govt is better.

https://www.google.ca/url?url=https://www.nytimes.com/2018/02/28/world/asia/china-censorship-xi-jinping.html&rct=j&frm=1&q=&esrc=s&sa=U&ved=0ahUKEwixx9ePzKnbAhWAHTQIHXUFChsQFggUMAA&usg=AOvVaw0CnT3INso46BUrLMpu2G2Z

I’ll take Trumps 4 years of gong show democracy over a ruthless dictatorship every day of the week.

#72 dr talc on 05.28.18 at 7:50 pm

The brainwashed Bolshevik Marxist millennials who come here to pee in the typing pool obviously have no hope for the future, at least until mom and dad check out, so they throw darts at anyone with more money than them. How the hell did this blog become a hangout for Trotskyites?
Haven’t you people read Maurice Pinay, or Juri Lina?

#73 crowdedelevatorfartz on 05.28.18 at 7:56 pm

@#2 Conn Smythe
““Did I ever mention how this ends?”
Weimar Republic hyperinflation?”
++++
Nah.
Hypper inflation in Canada? Not yet.
A better comparison would be Canada’s slow slide into a bastardized politically correct, gender neutral, welfare state, Bolivarian socialism a la Venezuela where half the country starve and the other half support the “system” of “equality” until…..their food runs out.

But look on the bright side.
Those who survive the Chavista revolucion will be skinny and possibly non diabetic.

#74 Entrepreneur on 05.28.18 at 7:57 pm

“Debt accumulation has the potential to wreck families and governments.” and “Yet, nobody care.” above article.

Then next paragraph mentions the highest debt on the planet and the Ontario three-party election.

Remember when the Liberals ran/ruined BC when in power and in the newspaper they said the same thing about the highest debt in history.

As for caring, I think BC gave up caring as affordability and reasons went beyond families. On Earth Day BC didn’t turn off electricity and that shows how people have lost any form of reality. Unless flipping and renting.

Had a neighbour that complained of not being able to avoid necessities. We gave her food, garbage bags, etc. to help her out. We stopped when she tried to run a mother cat with kittens with a lawn mover. Well, she sold for a profit, bought another and sold that one for a profit. Oh, another thing, she did drugs and probably sold.

BC wanted BC back and I believe Ontario want Ontario back. Liberals have been in power in both these provinces for about 16 years and we receive less with higher taxes with highest deficit in history.

I don’t like political parties but if have to pick one of the three evil parties pick the least evil and one that is for the people within boundaries.

So far the BC NDP/Greens are doing just fine in BC. The cleanup from the Liberals is ongoing. I like my province and want it back.

#75 crowdedelevatorfartz on 05.28.18 at 8:00 pm

@#10 Willy

Student Mental Health aka Free tattoo’s, a piercing and blue hair?

#76 crowdedelevatorfartz on 05.28.18 at 8:03 pm

@#36 Stone
“Ok, I needed a moment to breath but I’m not done yet. ”
+++++++

Hahahahaha Good one.

#77 Long-Time Lurker on 05.28.18 at 8:04 pm

It ends with Greece.

About twenty years ago I was watching a show on Greece. The people were talking about all their services from the government and their long vacations. I thought, “How can they do that over there and we can’t?”

Well, they were running their country on debts and were producing very little so they were already in trouble.

Then Greece joined the EU and adopted the euro as their currency so they lost all the advantage that their lower valued currency had and could produce and sell even less than they did before.

Then their creditors came after their national debts and Greece has had over a decade of austerity, I think. The creditors had to accept cuts to their payments and Greece has been shuffling along trying to get out of it’s debt and economic funk while everyone is trying to avoid paying taxes at the same time.

The future of Canada is a decade or more of austerity to pay back the debts.

#78 Felix on 05.28.18 at 8:09 pm

Excellent photo, Garth!

I am salivating just looking at it :)

There are dozens of superb recipes for dog meat, proving that even the world’s most stupid animal is not completely useless. We all need protein.

Anthony Bourdain would be proud of you!

#79 akashic record on 05.28.18 at 8:09 pm

Never happen, of course, since ‘wealth’ is money that was already taxed when earned. – Garth

What’s the name of the privilege when someone never lived in a totalitarian regime?

These privileged people can be quite naive and delusional in their assessment when it comes to what can and what can not happen in life. As if laws, related to property, money were created and carved to stone by the Creator.

#80 Christy Clark on 05.28.18 at 8:12 pm

Sorry, Garth. Christy Clark put the final nail in the Liberal coffin brand.

It’s over. The party name needs to be changed.

When asked to do an interview to explain the AdvantageBC operation taking advantage of working BCers, she declined.

Doug Ford wants to pump house prices up. Apparently disconnected from voters.

#81 AGuyInVancouver on 05.28.18 at 8:16 pm

..As the funky little chart in yesterday’s blog showed, it’s those at the bottom 90% of the income scale who carry the lion’s share (74%) of the debt. As taxes and interest rates rise, guess who is whacked most?..-Garth
____

And why re they in such debt? Because the discredited Reagan-Thatcherite policies enriched the wealthy at the expense of the middle and working class. It’s payback time!

Payback for Reagan? This blog is scaring me again. – Garth

#82 Angry 3M Home Owner on 05.28.18 at 8:16 pm

Hey I have a 4 million dollar home in Vancouver.

You can catch me protesting how unfair life is for me not that I am being taxed.

It isn’t my fault that I am a multi-millionaire for doing absolutely nothing.

So cut me a break. Give me tax free.

Eby must be doing his job, and doing it well seeing these protests.

Keep up the good work NDP.

Next bring in the tax on homes over 1M. Then Yan can update his heat map and compare the disappearing values of homes over 1M as we reclaim BC.

#83 SoggyShorts on 05.28.18 at 8:17 pm

#18 Better than income tax on 05.28.18 at 5:35 pm
income tax is not the answer.
it must be a net worth tax.

**************************
Screw that. I know someone who made exactly the same income as me for years (we were business partners) and he blew every penny while I amassed a fat portfolio.
To say that I should pay more in taxes because of that is idiotic and grossly unfair. Can you imagine the drain on social services if no one saved?

Equal opportunity, not equal outcome.

If 2 people make $100K each, they should pay the same taxes. If one of them spends it on hookers and blow while the other buys an ETF, they should still pay the same next year. I don’t mind paying taxes on the growth my ETF gains, but I sure as hell shouldn’t be punished for it on top.

#84 Mark on 05.28.18 at 8:18 pm

“With this much debt, will there be a day of reckoning like the US or will we slowly turn into Japan? When does Turner Investments short the TSX?”

The TSX contains almost no consumer/retail facing stocks, and contains components which have historical inverse correlation to debt expansion. Namely, the gold mining sector.

Shorting the TSX would be incredibly unwise. If anything, since the TSX has stagnated over the past decade (15.2k in 2008, 16k in 2018), and has delivered no equity risk premium since the early 1980s, the TSX is quite undervalued relative the Canadian bond market.

#85 Farm Wife on 05.28.18 at 8:26 pm

And just when you think you have seen every waste of tax dollars there is this.

http://edmontonjournal.com/opinion/columnists/paula-simons-nimby-neighbours-vow-to-block-camp-for-former-foster-kids-in-sturgeon-county

“At-risk youth would spend 10 days working on a theatre production, learning to make costumes and sets, to work backstage, and to perform. Then, they’d be flown to Hawaii for a 10-day outdoor tropical adventure.

Each student would pay $4,000 for the three-week program, though Gal and O’Connor expect those costs would largely be covered by government bursaries or endowment grants.”

#86 Nonplused on 05.28.18 at 8:27 pm

It should be pretty easy for an economist to conclude that one of the main drivers of Canadian household debt is that Canadians don’t earn enough to pay all their taxes and still get by.

Plus things are too expensive. Look at what it costs to buy a car these days. People need to finance them for 60 to 72 months.

But it will all continue until one day spectacularly it doesn’t. Every great inflation of the past has ended spectacularly, this one will be no different. Just because this one was done using “target inflation rates” doesn’t mean it won’t collapse. 2% inflation is still exponential and it still compounds. That means every year the target 2% is 2% larger than last year’s target was in dollar terms. Doesn’t seem like much but over 30 years it’s devastating.

It would be interesting to see how a linear inflation target would operate. To do that they would have to pick a reference year and measure inflation in dollars, not %. So they might pick a benchmark of 100 in 1990 dollars and allow $2 per year increase. But that would mean over time the % inflation year over year would be declining. So exponential it is. This means that if they hit their 2% targets, the price of everything doubles every 35 years. And that means it doesn’t go 1, 2, 3, 4, 5 every 35 years it goes 1, 2, 4, 8, 16, which explains why a dollar in 1913 was actually worth something but now it isn’t.

#87 Smoking Man on 05.28.18 at 8:31 pm

Go Knights Go!!!!!!!!

#88 westsider on 05.28.18 at 8:31 pm

I don’t get all the fuss about deferring property tax in Vancouver. A HELOC is deferring until one sells the house, because no one is going to pay their HELOc until they sell their property!!

#89 Loonie Doctor on 05.28.18 at 8:38 pm

The NDP seem to have the best platform to eliminate hallway medicine. If you tax doctors at 55.5% marginal plus 5% fee clawback, then they may decrease the amount they work per year. Problem solved. Patients may still be in hallways, but less medical practiced. For all the people lacking a sense of humour, that was a joke. Mostly.
-LD

#90 n1tro on 05.28.18 at 8:41 pm

Kathleen Wynne said any surpluses will go to the deficit. Does that count? It’s all about “trying your best” right?

#91 Cto on 05.28.18 at 8:51 pm

#19 MF
Prices are a joke no wonder people want to vote Anarchy.”
No matter what we’ll have a government that doesn’t care and a central Banker who has a spine like a jellyfish, coddling the over leveraged, to terrified to do what’s right.

#92 For those about to flop... on 05.28.18 at 8:58 pm

Recent Sale Report /Realtor Assistance Needed.

Let’s see if I can get an answer, and gain a little insight for the guys looking in Coquitlam by establishing a sale price for this house that sold 18 days ago.

They were into it 1.42 and their last ask would have had them breaking even if we leave opportunity costs out of the conversation.

Did their Quiche Lorraine come out fluffy or did it get burnt…

M43BC

Now asking 1.48

2251 Lorraine Avenue, Coquitlam paid 1.42 May 2016 ass 1.31

Apr 5:$1,598,000
Apr 26: $1,548,000
Change: – 50000.00 -3%

https://www.zolo.ca/coquitlam-real-estate/2251-lorraine-avenue

https://www.bcassessment.ca/Property/Info/QTAwMDAzWEZLSg==

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

Feel free to make a donation.

Flop For Fox Fund…

http://www.terryfox.org/get-involved/ways-to-give/

#93 akashic record on 05.28.18 at 9:01 pm

#71 crowdedelevatorfartz

Exactly.

People who never experienced life under totalitarian political system can be totally clueless.

#94 Barb on 05.28.18 at 9:03 pm

“But, alas, most people don’t save. They just spend, and a growing number finance that with debt.”

———————————————————–

And then there are those folks like hub and me who have no debt, mortgage paid off 20 yrs ago, any credit card expenses are paid that month, NEVER leaving a balance.

It may be a surprise to youngsters.
But there is loads of money to live on–even vacation annually–when you have no debt repayments.

Recently we put a $2,100 charge on our (only one) credit card and paid it off when the statement arrived. I recall glancing at page 2…something like “at the minimum payment, this balance would take 22 years and 7 months to pay off.”

We are of the generation for whom trinkets and toys and overpriced vehicles hold little attraction. And, yes, we have investments.

Because we were raised correctly, by parents who valued every dollar and taught us to do the same.

This country is going to hell in a hand-basket. And only because so many voters are too moronic to realize governments have no sense of fiscal responsibility anymore.

#95 DON on 05.28.18 at 9:17 pm

“The Ontario election is a case in point. The poor province has the largest sub-national debt on the planet at over $340 billion, and taxpayers fork out $12 billion a year paying only the interest.”

YIKES!

So a combination of liberal, conservative and one NDP government?. I thought the liberals and conservatives were business oriented. I take it the objective was to loot the province.

Then there is the Banana Republic of BC under the fiscal/business oriented conservative/BC liberal/social credit dinosaurs who by no fault of there own racked up a massive debt in just 16 years. Corruption is costly…I get it.

Then there’s Alberta…sigh. The business friendly Progressive Nutbar conservative party who pissed away their rainy day oil fund. Yes I respect there transfer payments to other parts of Canada, but why didn’t the ruling party of the day pack away a rainy day fund for all Albertans? Why did they not reinvest some money into renewables, why not diversify?

Like Crowded E said yesterday. Brilliant by the way.

“Or there should be a alternative to voting for the same old political hacks.
“None of the Above” on every ballot.
If Not A won the popular vote….. all politicians would be banned from office for one year while accountants audited and published who and where the money has been squandered….all while paying the necessary services to function.
No new Laws, no new taxes just bills getting paid.
Any extraordinary expenditures would be approved by referendum.
Think of the money we’d save in political lobbyist fees/kickbacks alone.”

#96 Fiendish Thingy on 05.28.18 at 9:17 pm

Ross Kay says over 1 million Canadian homeowners are underwater.

https://youtu.be/8NdJwUJloCM

1 million is just about 8% of the 13.3 million households in Canada, and approx. 30% of that 13.3 million are renters.

The US housing market collapsed when 8% of homeowners were distressed…

#97 mark on 05.28.18 at 9:19 pm

Simple keep borrowing till you cant pay your bills, then apply for bankruptcy. Then play it again sam.
Try it 3 times and you could go to jail, your forewarned.

#98 Willy H on 05.28.18 at 9:20 pm

#45 University Fees on 05.28.18 at 6:38 pm
I just checked the full time tuition fees 2017/2018 in another Province for an undergraduate degree. The average amount is just $7,000 per year, and books and living expenses will be extra. Even the higher degrees for the professions are cheap. It pays to shop around.
___ ___ ___ ___

Wish it was that easy. Any university won’t do these days. You should be going to the best university you can get into with a respected program that you want to study. Lakehead U in Thunder Bay is among the cheapest in Ontario with free flights back home to southern Ontario each semester, economical residence and food plan options. Just don’t expect your undergraduate degree to be highly valued in the market.

Don’t be pennywise and pound foolish with post-secondary education.

#99 mark on 05.28.18 at 9:20 pm

Bankrupcy works. Simple plan.

#100 Conn Smythe on 05.28.18 at 9:28 pm

#71 Crowdedelevatorfartz

“After they have been arrested, beaten and jailed…..you can ask those smug little pricks which system of govt is better.”

The problem with this blog is that many are hasty to draw conclusions. Almost none of them think their system is better. They love freedom of speech in Canada and our democratic system. They are not brainwashed much as their government would like them to be. They don’t swallow the Kool Aid. They are the educated but I am sure there are millions of peasants who do buy the propaganda….

#101 TurnerNation on 05.28.18 at 9:31 pm

Where is Saint Bigarider to save his people from the tyranny of Helocs?

#102 mike from mtl on 05.28.18 at 9:31 pm

#64 Leo Trollstoy on 05.28.18 at 7:28 pm
why is the C$ sucking?

oh yea, because we’re becoming socialist

US$ all day every day
////////////////////////////////////////////////////////////////

Yes for sure Trumponomics at work.

Observe this week’s BoC no raise and overall ‘wait-and-see’ response. No hike this week or June for sure – perhaps once this year. They can always do a 180 unless otherwise directed by the FED but the odds are slim.

#103 DON on 05.28.18 at 9:35 pm

About the houses over $3M education tax.

Aren’t retirees already allowed to defer there taxes? I think so.

SOOO those other people can’t afford more tax. Not arguing they should or should not. But really…

Years ago there was much worry of the coming retirement boom and then came along the housing shuffle. Where people about to retire could make a fortune on a old house by transferring debt to a younger inexperienced couples, singles (all ages) caught up in a mania endorsed by banks, governments, realtors, brokers, politicians, print and news media and the usual suspects developers and the Mainstream media hooking for ad money.

Now the Millennial rise. Shift!

Financial Post – Can’t hold back interest rate hikes. and the economy is not looking good after the next 12 – 24 months. Bring the news out a little at a time – don’t want to spook the herd until those in the know get out!

#104 TW on 05.28.18 at 9:36 pm

“Drummond’s analysis shows the Ontario Doug Ford Party, formerly the PC Party of Ontario, would increase the deficit and debt more than any of the three main parties. And while no party is as hawkish as Drummond would like, he finds the NDP’s plan would add the least debt.”

Interesting that you chose to hilight the NDP when they’re the ones that would add the least to the debt.

http://torontosun.com/opinion/columnists/parkin-almost-everywhere-conservatives-have-become-the-party-of-fiscal-recklessness

#105 Willy H on 05.28.18 at 9:37 pm

#54 Headhunter on 05.28.18 at 6:47 pm
“DO THE MATH” County of Simcoe (insert your county here) Top Ten Private Employers (2016) 12500 employee’s Top Ten Public Sector Employers (2016) 27000 employee’s Margin of 2-1. System is broke and broken. …
___ ___ ___ ___

You nailed it. Just imagine the post-retirement benefit costs for these folks. It’s staggering and growing year after year. Defined benefit pensions and full benefits for life. It’s like winning a lottery.

The public sector is swallowing up tax dollars faster than they can be collected.

An increasing % of each tax dollar is servicing these post-retirement benefits and interest on debt.

We are headed for decreasing government services, higher taxes and lot’s of user fees.

It’s no surprise governments are selling off assets as a short-term solution.

The irony is that Simcoe County is a have-not region of Ontario receiving far more from Queen’s Park than it contributes. Yet election after election they go Conservative and pretend they are far more self-reliant than they are. The Conservatives could run Kathleen Wynne herself in this riding and win!

#106 DON on 05.28.18 at 9:59 pm

#15 ifriend on 05.28.18 at 5:30 pm

RE: If you think raising taxes on houses will lower their cost, then go ahead and vote NDP.

You should say differently. :) if you feel like a loser then vote NDP to screw up the rest of us, then we can all feel like losers :) NDP will destroy lots of things and it will bring prices for the houses down for sure, but at the same time it will bring down the quality of life in Ontario as well. Sometimes I think may be I have to find a remote work in US(since I’m a software developer) and forget about everything else. Defiantly will do that if NDP wins.
*******************

This rant is brought to you compliments of the Ontario Election Troll bots.

#107 Unhinged Trader on 05.28.18 at 10:01 pm

Garth, are still we pretending that most people actually know how to manage their own incomes and available cash flows?

The existence of your blog is in itself a compelling argument for MORE government.

Most people are in fact, worthless slaves, propelled through the chaos of life by inertia, unable to re-direct their own destinies or break habits.

The obesity epidemic is one of the better arguments for socialism. If they can’t even be trusted to ensure their own (and their offspring’s) proper nutrition, diet and exercise, despite all of the resources floating around in the public domain, they still succumb to this fundamental weakness of character and grow more rotund, living shorter with every new age cohort.

The inability to save away diligently is another, forcing government to plan for their subsistence level survival in their senile years.

Man must be governed. Oh, Bitcoin is also on sale!

#108 Spectacle on 05.28.18 at 10:07 pm

crowdedelevatorfartz on 05.28.18 at 7:56 pm
@#2 Conn Smythe
““Did I ever mention how this ends?”
Weimar Republic hyperinflation?”
++++
Nah.
Hypper inflation in Canada? Not yet.
A better comparison would be Canada’s slow slide into a bastardized politically correct, gender neutral, welfare state, Bolivarian socialism a la Venezuela where half the country starve and the other half support the “system” of “equality” until…..their food runs out.

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

You could also include poor, underemployed, brain thrashed from smoking drugs, and without a viable retirement plan…..

But I digress

#109 ulsterman on 05.28.18 at 10:14 pm

#22 Gulf Breeze
Garth,

Why wouldn’t raising property taxes on houses lower their cost? Why would it be any different than rising interest rates, in that regard?

Also, the wealth tax on expensive homes in B.C. Can be deferred until the home is sold, so people who are asset wealthy but income poor shouldn’t be affected.

An elderly person who has to sell to go into assisted living, for example, is going to take a hit on a house that may have cost him or her 400,000.00 to purchase twenty years ago. But that hit will be a few hundred thousand on a house that could easily have appreciated to over 3,000,000.00!

How is this a bad thing? How is this ‘unfair?’

The question is, why? Why force people from their homes if there is no social benefit and it doesn’t make house more affordable? The only answer – you hate people with more than you. That’s sad. – Garth

Who’s forcing them to leave them multi-million dollar home? Defer the property tax at 0.7% simple interest, and take the amount you can actually AFFORD to pay and invest it in a TFSA. So you are only deferring a portion of the yearly taxes. Garth says you’ll make 7% confortably and i bet after a few years the compounding profits will soon balance out the portion you deferred at 0.7% simple interest. Say it doesn’t quite match the deferred amount. Oh well! Pay the small difference out of the millions in equity you we going to leave in your will to you heirs. I’m sure they won’t begrudge a few thousands out of the millions they’re getting from a nice Westside Vancouver shack.

#110 MF on 05.28.18 at 10:19 pm

#94 Barb on 05.28.18 at 9:03 pm

Your post about “paying off a house” purchased decades ago is a joke.

Today house prices are high and wages are low. That’s the whole point (which you missed?). Anyone who bought a house prior to 2007-8 purchased in a different world. No one cares about their “sacrifice” since almost everyone who bought then paid off their house. My parents bought in 1981 and then 1992 with no mortgage at all..

And that’s why people are going in debt (did you miss that too?)

Some facts:

1) The last NDP government in Ontario was in the early 90’s. No millennial was old enough to vote. So guess who did? Hint: look in the mirror.

2) A lot of millennials don’t drive any car at all, and rely on public transportation. That’s a huge demographic shift you seem to have missed. Most nice cars I see are driven by aging gen x (most house horny of all) and boomers.

3) Mills don’t actually buy trinkets and gadgets (aside from phones). Apparently they value “experience”. Case in point: why don’t we have any inflation? The last big dose of inflation was when the boomers were raising their kids and buying lots of junk. The picture is far different now (aside from houses and gas).

People like this poster need to realize the NDP and debt levels are far from a millennial-only issue.

MF

#111 Lee on 05.28.18 at 10:19 pm

I still wouldn’t count Wynne out.

#112 Reply on 05.28.18 at 10:24 pm

#98 Willy H: – You paid a bit more than $30,000 for your son to attend a university for a year? I would say he must have lived well. In any case if in Toronto the living expenses are way too high as checked a dorm. The cost for a room is $850.OO per month; parking if needed is $150.00 per month; and a ticket for 40 meals is $310.00 plus 13% HST.

#113 georgist on 05.28.18 at 10:36 pm

The graph being at non-zero bound and for a short time period isn’t ideal.

Here is the report it came from, the second graph has more context and is IMHO more worrying:

https://www.bnc.ca/content/dam/bnc/en/rates-and-analysis/economic-analysis/hot-charts-10aug2017.pdf

Note the report is 10/08/2017 so not sure why it’s shown today.

Would be great to see the figures including 2018, if anyone has them.

#114 dr talc on 05.28.18 at 10:43 pm

to the ‘wealth tax’ cheerleaders,
keep in mind that a house can be highly mortgaged,
thus representing a liability, not an assert.

#115 Windjammer on 05.28.18 at 11:01 pm

Traditionally I believe it ends with hyperinflation or a reset due to a default. In either case I think having some gold or silver would be beneficial. And don’t tell me I won’t be able to spend my silver maples.
Anyways Garth if a person reads what you are saying with ones head tilted a bit and eyes squinting you could be mistaken for a doom er.
What is inevitable is not necessarily imminent right?

#116 Doug in London on 05.28.18 at 11:08 pm

Yes, if the NDP win the election they will run up even bigger deficits and debt, no doubt about that. However, if the Regressive Conservatives win the election, where’s the money going to come from for all these generous tax cuts they are promising? I see a few other commenters here have asked the same question.

So why would the NDP ever win in the first place? Could it be the Conservatives choice of leader? If they had chose a leader like Christine Elliot they would not only win but probably get a majority.

#117 Newcomer on 05.28.18 at 11:37 pm

When RE is pathologically overvalued, any measure that decreases the attractiveness of buying or holding RE works toward changing market sentiment and eventually correcting the market course. It would be better to eliminate the CMHC and stiffen banking regulations, but so long as the feds refuse to do the responsible thing the provinces are duty bound to do what they can with what they have.

#118 Canada=Poor cousin of U.S on 05.28.18 at 11:50 pm

Most people in Canada are quite poor and need the social welfare safety net.

#119 Leo Trollstoy on 05.28.18 at 11:58 pm

why does the C$ suck?

oh yea, because we’re socialist

US$ all day every day

#120 Andrew Kucy on 05.29.18 at 12:18 am

To #95 – DON;

Thanks so much for sharing this idea:

“Like Crowded E said yesterday. Brilliant by the way.

“Or there should be a alternative to voting for the same old political hacks.
“None of the Above” on every ballot.
If Not A won the popular vote….. all politicians would be banned from office for one year while accountants audited and published who and where the money has been squandered….all while paying the necessary services to function.
No new Laws, no new taxes just bills getting paid.
Any extraordinary expenditures would be approved by referendum.
Think of the money we’d save in political lobbyist fees/kickbacks alone.”

I love it!!! :)

#121 Ms x on 05.29.18 at 12:43 am

Felix on 05.28.18 at 8:09 pm
Excellent photo, Garth!

I am salivating just looking at it :)

There are dozens of superb recipes for dog meat, proving that even the world’s most stupid animal is not completely useless. We all need protein.

Anthony Bourdain would be proud of you!

This is not funny,helpful or in anyway useful

#122 Oft deleted much maligned stock picker on 05.29.18 at 12:55 am

I read those stats on debt, government incompetence and age in Canada and laugh. It’s a Pyramid scheme built atop a purposely flawed dam. Poloz has shored up Trudeaus borrowing and it’s a laugh because he’s killed the prospects of everyone else. The entire country, save a few, are so screwed. The number of 65 plus with mortgages and a growing Heloc is just run thumping. What will these people do when the physical reality of working into the eighties is proven impossible. Walmart doesn’t want you in a wheelchair. The prospect of a government nursing home is a nightmare. Kids who buy today are screwing themselves for the next twenty years while this emergency rate ZIRP collapses. I say this looking out the window of a high floor super swanky hotel room in Malaysia….paradise. I get deleted all the time for what? Because I pile up money buying stocks that are available to everyone.? You’d hope there were more free advisors like me not less. Wouldn’t you like to live care free in the tropics? What a messed up country….Bwhahahahsha….reading about Canada is like listening to the Sex Pistols….” No future….No Future…No future for you”.

#123 Dolce Vita on 05.29.18 at 1:31 am

The sky is falling, the sky is falling…no it’s not.

From Hilliard MacBeth’s outfit using StatCan data.

If you blow up the left hand axis, it shows a large slow down in loan growth for 2018:

https://i.imgur.com/0QW1JVl.jpg

Taken in historical context, recent loan growth is actually low and has been stable over the past 10 years:

https://i.imgur.com/sB53mT0.jpg

Note what happens to loan growth just before a recession in early 80s and early 90s in the historical chart…about a 20% drop in annualized loan growth for each.

Nowhere near that.

Still a lot of room for insatiable borrowing before a recession comes to stop the debt binge.

All that will happen in 2018 is that RE Asset values will plummet in 4th Qtr thus slowing down the rate and size of borrowing (e.g., HELOC, remortgage financing).

And that’s a good thing…Canadians slowing down on their debt binge.

#124 Stan Brooks on 05.29.18 at 3:10 am

#10 Willy H on 05.28.18 at 5:22 pm

Ontario is crap-hole.

Hope your kid gets the value for his money by finding a decent job/will need a lot of luck.

As for the other free riders it is not on my subsidy any more.

last tax return as Canadian resident.
Find some other idiots to subsidize idiotic government policies. Good luck and good bye.

#125 jane24 on 05.29.18 at 3:48 am

Saving doesn’t work. If you have traceable assets then the 4 levels of various govt in Canada just notice them and help themselves. If folk in debt can’t pay then folk who save will have to pick up all their tabs. Saving in Canada is now a mug’s game.

I have family in BC/Alb/Ont and no-one has any spare cash to enjoy their lives, all professional people too. I know that Canada is a long flight from most of the rest of the world for a holiday but since none of my lot can afford a holiday then I guess it doesn’t matter.

What a choice in the Ontario section – corruption or boorishness or ineptitude.

#126 Nonplused on 05.29.18 at 4:02 am

#114 dr talc

Yep, you make a good point. Even stocks are highly leveraged. The wealth tax, if it were to be applied fairly which it can’t, would be applied on equity, not bubble values without considering debt. How did we get to a point where people are going to be taxed on the amount of debt they have???? Well, this is where we are at. You don’t need rising interest rates if governments are going to tax debt. And of course it’s still a tax on a tax on a tax, because you pay the income tax first before you pay the mortgage and then the bank pays tax on any income, and then the shareholders also pay tax on any income they receive. It’s a tax on a tax on a tax on a tax. The government is absolutely desperate and collapse is a lot closer than most people realize.

#127 When Will They Raise Rates? on 05.29.18 at 5:58 am

#13 MF on 05.28.18 at 5:23 pm

People use HELOC’s because they have worked. House prices have gone up for 15 years straight and the money seemed endless.

The overleveraged have therefore been winning. Most of us who saved, rented, and yes invested are behind. RE gave the average person access to extreme leverage.

Whose fault is it? Well no one really. It’s just how things unfolded
———————–

Who’s fault? Why, the central banks and government cronies, of course. And idiot voters who allow it to continue.

It’s boom and bust cycles brought about by credit expansion and contraction, totally manipulated to the extent that the can can be kicked down the road, but fortunately certain free market forces (that they can’t control) exist that will, in the fullness of time, “correct” current “imbalances”.

#128 Smoking Man on 05.29.18 at 7:09 am

Why the leafs will never win a Stanley Cup again.

Las Vegas last night. The arena stands filled with raging testosterone. In leaf nation. Girly men cheer in teacher pleasing high pitch octaves.

Drain the Swamp, Go Knights Go…..

#129 Kaganovich on 05.29.18 at 7:22 am

Never happen, of course, since ‘wealth’ is money that was already taxed when earned. – Garth

Earned? Sigh….

https://www.nakedcapitalism.com/2018/05/capitals-share-income-way-higher-think.html

Your US article is meaningless. The bulk of Canadian 1%ers are working professionals and business owners. Yup, they’re earning it. – Garth

#130 Shawn on 05.29.18 at 7:34 am

Europe is a value trap. 0% Europe.

#131 KLNR on 05.29.18 at 7:49 am

@#124 Stan Brooks on 05.29.18 at 3:10 am
#10 Willy H on 05.28.18 at 5:22 pm

Ontario is crap-hole.

Hope your kid gets the value for his money by finding a decent job/will need a lot of luck.

As for the other free riders it is not on my subsidy any more.

last tax return as Canadian resident.
Find some other idiots to subsidize idiotic government policies. Good luck and good bye.
__________________________

Good luck stan. don’t let the door hit you on the way out.

#132 S'well on 05.29.18 at 7:57 am

Garth,

What strategies do you believe the government should implement to start chipping away at Ontario’s massive debt (> $340 billion)?

#133 dharma bum on 05.29.18 at 8:03 am

#36 Stone

I think that was the best stat so far. Dumb and dumber.
——————————————————————–

https://www.youtube.com/watch?v=KqxQPAhlkX8

#134 Tater on 05.29.18 at 8:16 am

#128 Be Realistic on 05.29.18 at 6:30 am
Ah yes, the beaten dead horse topic of debt levels. This is another tired point used to show the world is ending for those who weren’t smart enough to rent a home.

Garth, you need to show the other side of this as bankrupcies and delinquencies are both down.

From CHMC: “The mortgage delinquency rate—debt is considered delinquent if it hasn’t been paid in 90 or more days—has been steadily dropping, too, and non-mortgage lines of credit also hit a 10-year low.”

As for debt ratio, that too dipped slightly lower.

“Royal Bank economist Josh Nye said it looks like debt growth is turning a corner.

‘With interest rates expected to rise further and housing regulations tightening at the federal and provincial level, the peak in debt growth could very well be behind us,’ Nye wrote in a report”

Canadians are managing their debt. Look at the trends, Garth.
—————————————————————–
Funny, delinquencies in the US were quite low. Then, the property market turned. Canada is probably at Summer 06 on the US time scale. Sales volume has fallen, prices have retreated a bit, but seem to be steady. But give it time.

#135 50 YEARS OF MAPLE LEAF INCOMPETENCE! on 05.29.18 at 8:29 am

Shootings, murders, from Malvern to Yorkville to Yorkdale.

Bomb goes off in Mississauga restaurant, gang rivalry between groups.

Bomb threat cancels Stratford festival opening.

Toronto. GTA. Ontario.

Pathetic places for losers to live.

And with Ontari-owe’s massive $340 billion debt, Ontariturds and Toronturds are paying almost $1000 per year PER PERSON (including infants still in diapers!) just to service the interest!!

This won’t end well, fools!

Bwahahahaahaaahaaaahaaaa!!

(But the Make Beliefs might win the cup in another 50 years, so you can look forward to that, LOL)

#136 Ian on 05.29.18 at 8:30 am

Wow, big changes on Zolo for Toronto real estate now that the May update numbers are in, and it ain’t good:

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

Inventory continues to explode (6442), almost back to spring 2017 highs . More importantly, sales are now starting a downward path again (2596), for a differential of 3846.

Median price has also turned back down onto a downward path.

#137 crowdedelevatorfartz on 05.29.18 at 8:36 am

@#125 Jane24
“What a choice in the Ontario section – corruption or boorishness or ineptitude.”
+++++

Pot meet kettle

Well the Ontario election will only economically ruin a Province as opposed to an entire country.

Any predictions as to when Ms May will be punted from power and UKip’s Nigel Farage will take the helm? 6 months? A year?

Pro Brexit, socialist leaning, pro Russian, beer swilling Nigel?
Cant wait to see how the economy reacts to his cerebral utterings……

#138 crowdedelevatorfartz on 05.29.18 at 8:39 am

@#121 X
“This is not funny,helpful or in anyway useful”
+++++
You’d prefer a cat in the bowl?

#139 Asds on 05.29.18 at 8:50 am

Garth,

The election has some pitiful choices. Even the conservatives aren’t fiscal conservatives (no tax for minimum wage workers, 1$ a beer, all with no raise in taxes?)! They don’t even have a platform! Really, which is the best one? If we’re going into debt either way, I’d rather get more than 1$ beers out of it.

#140 IHCTD9 on 05.29.18 at 9:05 am

“Anyway, let’s forget the fools running the place and worry about ourselves.”
____________________________

The situation in Ontario is becoming pretty serious, and the primary reason is that the Citizenry DOES NOT CARE ABOUT FINANCES. This won’t change until something happens to MAKE them care. An NDP majority is a scary prospect at this stage in the game – motivational if nothing else.

Everyone should be looking at the options available to them assuming eventual serious financial troubles for the Province down the road. The NL Liberals were faced with a similar debt/revenue problem a couple years back. Their answer was 300 new taxes and fees costing NL residents thousands more per year. They’re not getting a single, individual benefit out of these new taxes – it’s all to cover the cost of government spending and debt.

Anything you can’t, or will find difficult to avoid will be the event horizon for new taxes and fees.

Start reducing your exposure. Concentrate on all forms of energy use: heating fuels, electricity, transportation fuels etc. Look for cost effective “makes real actual sense” options to reduce or eliminate. Spending 20K on a new furnace or windows does not make real sense unless your house hasn’t been touched since 1955.

For example: In my case, I have access to a lot of free wood, I can weld and machine, I have access to all the equipment to work with steel, I own heavy equipment and the means to transport it, I am naturally mechanically inclined and enjoy working on this kind of stuff.

So I am installing a wood/oil combo furnace (used, but like new off Kijiji), and am building both a wood and charcoal gasifier, along with a few supporting items. All together – these items can trade my entire conventional energy bill for hours and sweat. I work cheap, so I’m already winning that trade.

I realize I’m probably 1 in a million with this – but everyone has different options they can exploit to the same end.

This would be the time to start considering them…

#141 paul on 05.29.18 at 9:14 am

Waking up !!!!

https://www.theglobeandmail.com/investing/personal-finance/article-a-line-has-been-crossed-on-taxing-soaring-home-values/

#142 Conn Smythe on 05.29.18 at 9:30 am

#124 Stan “the whack job” Brooks

” Last tax return as Canadian resident.
Find some other idiots to subsidize idiotic government policies. Good luck and good bye.”

Adios Stanley! Make sure the door doesn’t hit you on the a$$ on the way out. Canada will be a better place when you get your deranged self out of here.

#143 PastThePeak on 05.29.18 at 9:34 am

I read this comment this morning on a National Post story about Ontario debt, and thought it relevant to the discussion.

“Journalists and the media LOVES to make a big deal of the debt. But what IS the debt, really? The debt is just a number on a computer somewhere. It doesn’t mean a THING. It’s not like creditors will ever go, “Okay, pay me now.” Not in Canada.

As Mr. Cheney once said, “Deficits don’t matter.” This is doubly true when you have a printing press and can hit Ctrl-P any time you have a shortfall. When you owe a thousand you have a problem, when you owe 300 billion+ your creditors have a problem. A truly smart government would look to double or triple the debt, using that to fund health care, education, child care, drug care, university tuition, subsidized housing and green/self-sustaining infrastructure. Then re-negotiate with creditors for a lower rate. “Well.. you can get some of it back at some point, or none of it back ever…” Use it to create the environment where businesses and families want to be, and the debt will take care of itself.”
+++++++++++

I suspect many people think like this guy (seem to be lots on this blog) – that the debt isn’t “real”, that it doesn’t ever need to be paid back, we owe it to ourselves, we can just print more money, etc. They TRULY BELIEVE this.

These people think they are *really smart*, and it is the rest of us that are stupid. YET – they are not smart enough to follow the logical thought process – why hasn’t every country in the world already done this, and simply borrowed & printed money to achieve paradise…

#144 Conn Smythe on 05.29.18 at 9:37 am

#143 IHCDT9

“For example: In my case, I have access to a lot of free wood, I can weld and machine, I have access to all the equipment to work with steel, I own heavy equipment and the means to transport it, I am naturally mechanically inclined and enjoy working on this kind of stuff.”

Living off the grid! You are a modern day Thoreau! Well done senor. Let me know what you think of Manitoulin Island.

#145 PastThePeak on 05.29.18 at 9:42 am

#145 paul on 05.29.18 at 9:14 am
Waking up !!!!

https://www.theglobeandmail.com/investing/personal-finance/article-a-line-has-been-crossed-on-taxing-soaring-home-values/
+++++++++++++++++++++++++++++++

BC is the first, but they won’t be the last. The tax will apply to eventually lower valued homes (most of them in BC), and the rate will increase in the future. And the government will still run deficits…

#146 Willy H on 05.29.18 at 9:43 am

#112 Reply on 05.28.18 at 10:24 pm
#98 Willy H: – You paid a bit more than $30,000 for your son to attend a university for a year? I would say he must have lived well. In any case if in Toronto the living expenses are way too high as checked a dorm. The cost for a room is $850.OO per month; parking if needed is $150.00 per month; and a ticket for 40 meals is $310.00 plus 13% HST.
___ ___ ___

No one is living “high on the hog”!

Have a look at tuition fees in Ontario for any university program outside of general arts….

These are the annual fees and costs in 2018!

Tuition fees and books for engineering program $20K
Residence and meal plan for two semesters $10K*

*two person dorm no bathroom

My entire university tuition over 4 years back in the late 1980’s cost less than one year of engineering at one of Canada’s top universities!

Tuition has increased on average over 6% a year for the past 25 years. Currently increasing at 4% year over year.

#147 Sonny on 05.29.18 at 9:45 am

Liberal government to buy Trans Mountain pipeline for $4.5B

Finance Minister Bill Morneau announces plans to ensure pipeline expansion in Canada proceeds

http://www.cbc.ca/news/politics/liberals-trans-mountain-pipeline-kinder-morgan-1.4681911

#148 IHCTD9 on 05.29.18 at 9:46 am

#115 Windjammer on 05.28.18 at 11:01 pm

What is inevitable is not necessarily imminent right?
______

So you’re saying we’re not at the 11th hour yet, so we’ll just worry about it later?

“By failing to prepare, you are preparing to fail.”

― Benjamin Franklin

#149 IHCTD9 on 05.29.18 at 9:50 am

Canadians are managing their debt. Look at the trends, Garth.
___

LOL, yes – the trends regarding Canadian debt are record breaking.

I see any slowing in the growth of personal debt as fear finally overcoming stupidity – or maybe just the inability to borrow any more under current conditions.

I wouldn’t run out to dance in the streets just yet…

#150 Ace Goodheart on 05.29.18 at 9:52 am

The interesting thing about the proposed “real estate wealth taxes” for Ontario, is that these new taxes, if enacted, will more than likely finally push me to off load the remainder of my rental properties. This will of course result in a bunch of people becoming homeless. But I can’t afford the additional overhead that the taxes will create for me, and going to the Tribunal to try to download those extra taxes onto the tenants is not something I plan to do.

Probably a lot of small time, mom and pop style landlords like myself will do the same, creating a bunch of new homeless folks frantically looking for rental housing.

I do not see any inkling of a desire on the part of the NDP to tax my other wealth, ie my direct investing accounts, full of dividend paying stocks, ETFs and preferred shares. No one in government seems remotely interested in that.

I accumulate my capital gains, untouched until I sell, and claim my dividend tax credits each year without issue.

It’s a weird, weird world we live in.

#151 For those about to flop... on 05.29.18 at 9:52 am

Have at it…

M43BC

“The Best (and Worst) States for Teacher Compensation.

How much should school teachers earn considering the fact that most get several weeks off from work for summer vacation? Recent protests and labor unrest from five states suggest that many educators believe they should be earning a lot more, sometimes as much as 20% more. So where can teachers earn the highest incomes today?

The Bureau Labor Statistics tracks overall employment and average wage numbers for a variety of professions across all 50 states. We collected figures for teachers at all three levels (elementary, middle and high school) to create three color-coded heat maps of earnings. This provides us with three snapshots of teacher compensation in the U.S.

We also calculated the average between elementary, middle and high school teachers to create a top-ten list of states where teachers earn the most.

Top Ten States Where Teachers Earn the Most

1. New York: $81,613

2. Alaska: $80,627

3. Connecticut: $78,567

4. California: $76,523

5. Massachusetts: $75,720

6. New Jersey: $72,460

7. Oregon: $69,643

8. Virginia: $68,707

9. Maryland: $67,173

10. Rhode Island: $67,050

Our maps illustrate how there are enormous differences in earning potential for teachers across the country. The coasts offer the highest salaries, led by liberal states like New York and California, where teachers can make tens of thousands of dollars more than the national average wage of about $49k. There are also a couple of states in the Upper Midwest where teachers can make between $60-70,000, including Illinois, Minnesota and Michigan. The combination of above-average incomes with great benefits like a pension make these places ideal for teachers.

But our map also reveals places where teachers make relatively little, even less than the national average. Take a look at the South and rural Western states like Oklahoma, South Dakota and Mississippi. The juxtaposition between low-wage states like Arizona (average: $45,313) and California (average: $76,513) is especially dramatic. Of course, one explanation for the difference has to do with the cost of living. Phoenix just isn’t anywhere near as expensive as San Francisco.

The most interesting trend in our maps has to do with different wages for different levels of education. The biggest outlier is Alaska where a high school teacher makes on average $8,390 more than an elementary school teacher. Compare that to Idaho, where middle school teachers make $4,520 more than their colleagues in high school. Likewise, in Oregon, moving from elementary to middle school results in average pay increase of $7,990. Teacher licensing requirements are defined at the state level, which could partly explain these differences in compensation. Still, making $8,000 more each year is a powerful incentive to just teach at a different grade level.

Our maps indicate that some educators clearly make a lot more than others, depending both on where they live and which grade they teach. Those differences may or may not justify the teacher strikes and walkouts happening around the country, but it does highlight the different values some states place on education.”

https://howmuch.net/articles/average-teacher-salary-by-states

#152 Calgary Rip Off on 05.29.18 at 9:59 am

And yet another reason of why Calgary is lousy:

http://calgarysun.com/news/local-news/three-coventry-hills-houses-affected-by-two-alarm-fire/wcm/fba6259a-67d5-4ca7-bf10-36ccd3437ea7

The zoning is ridiculous in NW Calgary. For every 3 lots there should be just one house.

As a benefit of living so close to your neighbour you get continual creepy vibes all while paying off around a half a million mortgage. As soon as Im financially able to eject from the bottom of the barrel(Calgary) Im doing it. I will eject.

#153 Linda on 05.29.18 at 10:12 am

#83 Soggy – right on! Unfortunately to many, the fact you didn’t blow your wad but saved it & even worse built financial assets makes you a target for envy. Somehow your being prudent is an ‘unfair’ advantage over those who chose to party & spend well past the red line. Obviously the only solution is to take away what you set aside because ‘the rich can afford to pay more’.

#154 YYZer on 05.29.18 at 10:19 am

I’m disappointed by this column. Garth has every right to write a column that is subtly – or not so subtly – biased for or against any political party. But this one elicits a stronger reaction in me, hence my comment.

I tend to support the Liberal more than the PCs. But even I am deeply dismayed that ON is adding on to debt. But what Garth doesn’t say here is that the ON PC party hasn’t released a fully costed platform. All it’s been doing so far is announce one tax break or spending plan after another. What is that going to do to the province’s deficit?

#155 PastThePeak on 05.29.18 at 10:27 am

In more government wasting tax $$ news – this time at the federal level – T2 agrees to buy out KM to the tune of $4.5B for existing line and rights to build the expansion.

…BUT…does anyone think the protesters will stop just because T2 owns it? OR is it MORE LIKELY, that the protests will only increase knowing that T2 really doesn’t like the oil business and is more in line with environmental activists.

So the TMP expansion WILL NOT happen. There is no way – zero – that the Feds will push through the pipeline, bringing in the RCMP in force for years, to clear out the protesters. And lets not forget the recent SCOC decision (the beer case) that gives further weight to provinces restricting trade.

So, good money after bad as they say…what else is new…

#156 joblo on 05.29.18 at 10:29 am

Kanata now in pipe line biz
4.5billion nice work libs

#157 Westcoaster on 05.29.18 at 10:32 am

Please tell me you’re not a Reaganomic (i.e. fallacious “trickledown”) dude.

#158 IHCTD9 on 05.29.18 at 10:52 am

#144 Be Realistic on 05.29.18 at 9:08 am

“Canadian Imperial Bank of Commerce estimates only about 20 percent of outstanding household debt — mortgage and non-mortgage — has so far been exposed to higher rates.”

That’s probably because not all of it has been rolled over yet…

“It will take a while for the full impact of higher rates to hit household incomes,” Janzen said by email. “Household ability to pay is increasing along with interest rates. The economy looks strong, labor markets look tight, and wages have been increasing more quickly.”

They are hanging everything on Poloz not keeping up with the FED hikes. The article keeps coming back to that as a prerequisite.

If they’re right, we’ll be paying 9.00 for a bag of Doritos; while they talk about how awesome the BoC rate is.

The one thing that article said right:

“It will take a while for the full impact of higher rates to hit household incomes,”

I agree 100% – but they WILL hit, and it will eventually be 100% of current mortgages that will be paying more. The longer it takes, the more it will be.

#159 Smoking Man on 05.29.18 at 10:53 am

139 Ian on 05.29.18 at 8:30 am
Wow, big changes on Zolo for Toronto real estate now that the May update numbers are in, and it ain’t good:

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

Inventory continues to explode (6442), almost back to spring 2017 highs . More importantly, sales are now starting a downward path again (2596), for a differential of 3846.

Median price has also turned back down onto a downward path.
…….

You ain’t seen nothing yet. If the dippers get in, watch out. Convert all your assets into USD…

Look at the fx market. As soon as the polls started giving the dips a lead. Boom down she goes. In spite of strong oil.

#160 Victor on 05.29.18 at 10:56 am

That’s why I think interest rates will not be allowed to go much higher..it would bankrupt too many people corporations and governments. I still don’t get the whining about seniors living in million dollar homes..just sell the friggin house and rent a beautiful place for the rest of your years.
And remember Canadians get the politicians they deserve. Pretty boy in Ottawa is running this country into the ground and it was Canadians who put him there because they do prefer glitz over substance. Many Canadians are apathetic about politics often not even voting and choosing people based on superficial reasons. I watched the leaders debate and found it embarrassing that those three are the best Ontario has..good luck Ontario with any of them. They are a reflection of our society which is not saying much..there is the simple minded Ford who just tells us he will put money in our pockets and how scary the big bad NDP are, then there are the two super politically correct ones who are bending over backwards to appear to care about everyone and will throw money at everything and trying to make it sound so easy. Sigh..Canada is f%$&ked when I look at our debt situation..the politicians leading this country and the entitlement mentality of most Canadians.

#161 Ian on 05.29.18 at 11:05 am

I’ve been following the Steve Paikin interviews on The Agenda with Erin Kelly, who is CEO of Advanced Symbolics.

Erin has an AI system called Polly that is tracking riding by riding people’s discussion on social media.

This is way more advanced than traditional phone polling and will likely put the traditional pollsters out of business.

Polly is saying the Liberals are still looking at exactly one seat, which means we have a majority coming.

The only problem is, we don’t know who.

The NDP continues to dig into the PC base, and 2% more means they will have a majority.

Truly scary land. However, the PCs only have themselves to blame. It’s very upsetting to be a member of a party that is so disorganised. This is a real lesson that you have to have everything in order in order to contest an election.

I cannot believe how poor a state the party is in.

#162 Tony on 05.29.18 at 11:05 am

Re: #22 Gulf Breeze on 05.28.18 at 5:49 pm

Raising property taxes will decimate the price of a house and housing. One has only to look at Alberta where the accessed values of homes has been about twenty percent higher than what any residential real estate would sell for the next last several decades. Consequently residential property values haven’t even risen past the annual inflation rate for decades passing. In short raising property taxes crushes the value of real estate.

#163 Smoking Man on 05.29.18 at 11:11 am

Haha. Two trust boy amegos , after scaring away investment , paying protesters against the KM pipeline they are now forced to buy it and build it. What could go wrong. They will sell it to George Soros for pennies on the dollar once built.

Where is John Galt.

#164 Dissident on 05.29.18 at 11:17 am

Wrong wrong and more wrong. Read someone who knows what they’re saying re Conservative policy vs NDP.

http://torontosun.com/opinion/columnists/parkin-almost-everywhere-conservatives-have-become-the-party-of-fiscal-recklessness

That’s right – Conservatives have become the party of fiscal recklessness. Published by the SUN no less.

Analysis by Don Drummond, a former chair of the TD Bank.

“Drummond’s analysis shows the Ontario Doug Ford Party, formerly the PC Party of Ontario, would increase the deficit and debt more than any of the three main parties. And while no party is as hawkish as Drummond would like, he finds the NDP’s plan would add the least debt.

It’s “not clear how the Conservatives’ plan adds up, if indeed it does,” writes Drummond. Ford “would increase rather than eliminate the deficit,” he adds, estimating a DFP government would add $2.1 billion to the deficit.

And the Doug Ford Party doesn’t seem to care.

The DFP cares so little it doesn’t even have a financial plan. It’s all funny-money magic. DFP leader Doug Ford promises to give away billions in free money while increasing spending. He says his big tax cut for wealthy people won’t hurt health care. And somehow the budget will balance itself. He’s selling swampland, folks.

Problem is, instead of being focused on people, conservative party factions are engaged in ideological wars. Managing reality doesn’t fit the frame.”

Couldn’t have said it better.

#165 PastThePeak on 05.29.18 at 11:37 am

#154 Ace Goodheart on 05.29.18 at 9:52 am

I do not see any inkling of a desire on the part of the NDP to tax my other wealth, ie my direct investing accounts, full of dividend paying stocks, ETFs and preferred shares. No one in government seems remotely interested in that.
+++++++++++++++++++++++++++

I think you forgot to add “…yet”.

#166 Shawn on 05.29.18 at 11:44 am

Buy US small caps, sell Europe, sell EMs.

#167 Shawn on 05.29.18 at 11:47 am

USDCAD to 1.4?

#168 victor on 05.29.18 at 12:00 pm

#168

This is another example where fiscal policy is becoming more and more disconnected from traditional party patterns. How many conservative governments have we seen here and in the USA which were quite poor fiscally..such as Mulroney, Harper (racking up massive deficits after 2008), George Bush, Trump, Alison Redford and then you have Liberal and NDP governments such as Chretien (Paul Martin) who slayed the debt monster, Couillard , Gary Doer and my prediction is that Thomas Mulcair would have handled Canada’s finances much better than pretty boy Trudeau is.

So this notion that Conservatives are always better fiscally and the Liberals and NDP arent is frankly a lot of hogwash. It often depends more on the leader more than anything. Given Doug Fords lack of details you can be sure that they will not be managing the money well. I mean all this guy ever says is that he will put money in your pocket and that the NDP will drive businesses out of Ontario..any idiot can say that. Show me how you will do it with detailed facts and figures and explain it to the people..the fact that he doesnt is really quite insulting to Ontarians. Anyone voting for him is doing so out of fear mongering or because they are very gullible.

Having said that I am generally not a fan of the NDP and Horvath doesn’t strike me as a Gary Doer, Thomas Mulcair kind of politician.

#169 N on 05.29.18 at 12:02 pm

Lawyers’ representing up to 300,000 litigants are planning an $80 billion action against mortgage lenders, mortgage brokers and financial regulators… He said the scale of the problem is being highlighted by the current banking royal commission. “Banks and other lenders are running for cover,” he said. “Regulators who should have been responsible for prudent lending practices were asleep at the wheel.”
Mr Brown, who has been generating interest on mortgagedeception.com…

https://www.afr.com/personal-finance/chamberlains-to-lead-80-billion-class-action-against-mortgage-industry-20180529-h10nxc

#170 Brett in Calgary on 05.29.18 at 12:28 pm

I second this. Crammed in like sardines.
———————————————————-

#156 Calgary Rip Off on 05.29.18 at 9:59 am
And yet another reason of why Calgary is lousy:

http://calgarysun.com/news/local-news/three-coventry-hills-houses-affected-by-two-alarm-fire/wcm/fba6259a-67d5-4ca7-bf10-36ccd3437ea7

The zoning is ridiculous in NW Calgary. For every 3 lots there should be just one house.

#171 TurnerNation on 05.29.18 at 12:30 pm

Get out of Toronto. An open air UN agenda work camp. Densification rats in a cage.

http://data.torontopolice.on.ca/pages/shootings

#172 Engineering Degree on 05.29.18 at 12:35 pm

My young boy refuses to be ripped off, and will be taking his Engineering Degree out of Ontario. The equivalent costs for tuition are just $9,314, and all the other expenses are a cake walk. He will be staying there during the summer for $16.25 per day as will find work. The international rankings for 2018 are out with three reporting. This out of province university beat out nine in Ontario, including Carlton, York, and Queens.

#173 Wrk.dover on 05.29.18 at 12:43 pm

#143 IHCTD9 on 05.29.18 at 9:05 am

can trade my entire conventional energy bill for hours and sweat. I work cheap, so I’m already winning that trade

———————————————

I use grid power to run my house and garage, three freezers ( then two, then one ), draw and pressurise my water, and operate my solar hot water system as well as maintain and subsidise my hot water supply, and keep the house at 8 degrees C when I am away in the winter (often), among other things. About 17 kw/hrs/day, all told, each bi/monthly statement.

For a grand CDN a year including tax. Best bang for buck out there. I wish everything was this good a deal.

You are pissing in the wind if you think you can beat that maintenance free dependable system. If it fails you pick up the phone, any weather, any hour. I have a generlink behind the meter and a generator that has been used once since 2008. Stored empty and dry, the way it came in the box.

I have tracked my gasoline consumption to basically exactly one gallon/day year in year out, all uses included, for the past four years.

If you really want to save energy/money, liquidate the wheeler, build a 4 banger with PTO driving a 1.25″ shaft/rear winch 4X4, double NP 205 rock crawler with a self loading trailer and fabricate yourself a bandsaw mill to have a muscle and barter building past time that is light years more enjoyable than playing follow the leader on abandoned rail lines and other peoples property…while consuming over taxed fuel and eating dust.

The by product of the mill/toy meets all my heating needs. House kept between 75 and 80 F.

You just can’t beat the economy of store bought power, if you use it parsimoniously.

By Garth’s definition, I live on air. No problem!

#174 Newcomer on 05.29.18 at 12:48 pm

@Be Realistic
—-

I think you should really consider selling now. You are on here every day grasping at straws. Now you are quoting a cable company as justification for a bullish RE outlook. I’m guessing that is because it is the only bullish indicator you can find. You have to realize that, to an outside observer, that seems pretty weird. You are obviously very worried (though you may be hiding your actual outlook, even from yourself). Money is not worth the kind of stress that is driving you. Just sell, take your lumps, and get on with your life. If you Baghdad Bob it all the way to the end, your bottom line will be much worse, and you will have been miserable that whole time. Get liquid and then get out there and smell the roses.

#175 Wrk.dover on 05.29.18 at 12:48 pm

No debate, just write a cheque for $4,000,000,000.00 on the federal HELOC? Or is that purchase on the credit card?

More likely from the Cash Store….

#176 conan on 05.29.18 at 12:54 pm

#167 Smoking Man on 05.29.18 at 11:11 am

I think it is a great move. Its way too much of a discount that Alberta has to give the USA for their oil.

It is 15 billion a year……..

The corruption and shady deals that can be accomplished with that 15 billion dollars boggles the mind.

If I was an American Oil Tycoon, getting a part of that deal, I would gladly spend half of my proceeds making sure that deal never changes.

I would be funding every group that does not want expansion to tidewater. Also, donate to politicians, that for the right price, could also help delay it.

IMHO, this has always been a “rotten” deal.

https://imgur.com/gallery/QaG7tw7

#177 IHCTD9 on 05.29.18 at 12:57 pm

#168 Dissident on 05.29.18 at 11:17 am

And the Doug Ford Party doesn’t seem to care.

The DFP cares so little it doesn’t even have a financial plan. It’s all funny-money magic. DFP leader Doug Ford promises to give away billions in free money while increasing spending.
_____________________________

We all want to know the truth right?

Here is a great way to get started:

“Sit down before FACT as a little child, be prepared to give up every preconceived notion, follow humbly wherever and to whatever abysses nature leads, or you shall learn nothing. ”

― Thomas Henry Huxley

Here’s a fact to sit before: It isn’t KW, AH, or DF that want to spend and borrow till something blows. It’s the voting public. These 3 Politicians just want to get elected – THAT’S IT.

If any of our candidates stood up and talked about how they are going to fix Ontario’s finances – they’d lose the election. So they don’t do it. That goes the same for the Conservatives as it does for the NDP.

What we’ve learned: The parties say only what they believe the Citizenry most wants to hear. The parties running for election actually DO represent pretty accurately what it is the people want. People in Ontario want free stuff. All parties are promising free stuff.

If you want to learn something, toss your partisanship and bias first.

#178 Mr. Bee on 05.29.18 at 1:00 pm

We are a young family in our early 30’s. I’m a saver and it’s infected my spouse. We were in the process of moving from downtown Toronto to buy a home in K/W area but I think based on all this information coming out in your blog and on the news…I think we are going to continue to rent and increase our savings even more.

Thank you for all your wisdom and information!

#179 bdwy sktrn on 05.29.18 at 1:07 pm

western engineering base tuition today is 13k, with all fees 14.5.

can’t do a whole lot better than western.

—————————
so , big sale on stocks and etf’s today. italy, schimtaly. i’m buying sp500 right now.

#180 jess on 05.29.18 at 1:30 pm

yeah, but the loto last draw made 17 more millionaires
sorry couldn’t resist

=========

Thursday, May 24, 2018, 10:14 by Vanessa Macdonald
Money used to set up Pilatus Bank from ‘criminal proceeds’
Publish ‘intelligence report’ now, Casa tells MFSA
Former Pilatus Bank chairman Ali Sadr Hasheminejad.

Former Pilatus Bank chairman Ali Sadr Hasheminejad.

A bail hearing in the US on Wednesday claimed that the money used to set up Pilatus Bank in Malta came from criminal activities in Venezuela, which landed its former chairman in jail.

“His equity in Pilatus Bank is forefeitable because it constitutes criminal proceeds directly linked to the Venezuela project: the defendant [Seyed Ali Sadr Hasheminejad] used money from the project (1 million Swiss frances, and €8 million) to established and capitalise Pilatus Bank in 2013,” according to a transcript of the proceedings tweeted by MP Karol Aquilina.

BREAKING: US @TheJusticeDept reveals Ali Sadr Hashemi Nejad used criminal proceeds – €8million and CHF 1million- to establish and capitalize #Malta @PilatusBank in 2013. #shameless #fakeduediligence @edward_scicluna @JosephMuscat_JM @KonradMizzi @keithaschembri
— Karol Aquilina (@KarolAquilina)

Mr Hasheminejad has claimed a net worth of $24 million, of which $12.9 million is equity in the Ta’ Xbiex-based bank.

Apart from his equity in Pilatus Bank, the lawyers said Mr Hasheminejad also owned an apartment in Washington, worth approximately $1.5 million, had interest in A&H Urban Lifestyle Investments worth approximately $227,115, interests in pistachio farms in California, $3.1 million in bank accounts in Cyprus as well as a further $70,000 in other bank accounts.

https://www.timesofmalta.com/articles/view/20180524/local/money-used-to-set-up-pilatus-bank-from-criminal-proceedings.679868

#181 Tater on 05.29.18 at 1:31 pm

#144 Be Realistic on 05.29.18 at 9:08 am

This comparison to the US crash argument has been debunked by “pumpers” and gloomers alike. The two situations are completely different.

Now here is some more facts regarding this debt issue:

“Canadian Imperial Bank of Commerce estimates only about 20 percent of outstanding household debt — mortgage and non-mortgage — has so far been exposed to higher rates.”

“It will take a while for the full impact of higher rates to hit household incomes,” Janzen said by email. “Household ability to pay is increasing along with interest rates. The economy looks strong, labor markets look tight, and wages have been increasing more quickly.”

Though I’m sure ZeroHedge is right about the end of the world being nigh.

Source: https://www.bloomberg.com/news/articles/2018-05-29/why-canada-s-big-banks-aren-t-too-worried-about-household-debt
—————————————————————
US banks weren’t worried either. Nor were Irish banks or banks in Iceland.

Our housing market is a massive bubble. Each leg higher has allowed some to borrow more and drive the market higher in a self reinforcing loop.

For it to end, all we need is property prices to soften. From there, the whole thing goes in reverse. The private lenders will get hit first, then it spreads to the banks when the private lenders default on their HELOCs. Then it spreads to all bank clients as credit begins to tighten.

It’s just a credit bubble. It will end like all other credit bubbles.

#182 why? on 05.29.18 at 1:32 pm

#11 crossbordershopper on 05.28.18 at 5:22 pm
well Garth it ends the same way, everyone dies.
my sister in law a well off hard working immigrant passed two weeks ago. sacraficed her life almost for her children, her children, nother happiness, so she accumulated millions great.
now she is gone at 55. the odd vacation to an all inclusive, watched her money tightly, never splurged on anything, and you think it means anything.
so blaming people to take advantage of a credit strucutre that allows fully money to be used to buy things for current consumption might be bad if over done but who cares.
We should all be natives, dont care about anything live in the moment and die young.
——————————-

Why does so many stereotypes against Indigenous people start from this person here Garth?

#183 Dissident on 05.29.18 at 1:32 pm

#172 victor on 05.29.18 at 12:00 pm

To echo the same sentiment – party leaders and their respective platforms, whatever they are, become “party-washed”, and leaders are more than the sum of their parts. You can have good leaders under any party. The party-system just encourages zero thought and knee-jerk reactions among the masses. If all you had to choose from was an individual and their platform without colour-coding for dummies, I think it would become clear who is the better leader. Kudos to Canadians who actually research a party’s platform, and identify which is ignorant, self-serving hot air (or completely absent), and which has a bit more work behind it.

If Ford thinks he can use Trump’s/Roger Stone’s political playbook for electing himself based on divisive, knee-jerk ideologies, he should think again, because I don’t think Canadians are that stupid or gullible.

#184 The Real Mark (not the imposter) on 05.29.18 at 1:46 pm

““Canadian Imperial Bank of Commerce estimates only about 20 percent of outstanding household debt — mortgage and non-mortgage — has so far been exposed to higher rates.””

If true, then the acceleration in bank profitability seen recently should continue. For the next few years at least.

Of course you can’t boil a frog forever.

#185 Shawn on 05.29.18 at 1:51 pm

Sell your house and buy QQQ

#186 jess on 05.29.18 at 2:20 pm

name and shame crusaders

Julian Richer, who founded the hi-fi and TV specialist Richer Sounds, is bankrolling the non-profit venture Taxwatch after growing angry at the UK’s increasingly “broken” tax system.

“I’m outraged by the status quo,” said Richer. “We pay our taxes but these people are just laughing at us. You can’t move these days for stories about people and companies trying to find ever more ingenious ways to avoid paying their tax bill, whether it’s tech giants, celebrities or major landowners.” Richer, who has an estimated £160m fortune, is an unlikely crusader for tax fairness. In his new book, The Ethical Capitalist: How to Make Business Work Better for Society, he admits to having briefly used a legal loophole that enabled him to avoid national insurance by “paying myself in bullion” before seeing the error of his ways.

Taxwatch will involve journalists and tax professionals working together to expose abuses of the tax system in a bid to galvanise public opinion. Its advisers include Private Eye journalist Richard Brooks, author of The Great Tax Robbery.

“It is early days,” said Brooks. “The idea is to keep the spotlight on large-scale tax abuse, particularly in relation to big business and the wealthy. Julian Richer has provided the seed funding and we are hoping to get more people involved.”

#187 More Research on 05.29.18 at 2:23 pm

I know a bargain when its there, as off campus accommodation looks interesting in the university out of province. One can rent a 2 bedroom apartment all renovated, all inclusive, furnished for $800.00 monthly and saw the pictures. Buddy up for $400.00 each all year long, and cook some meals. Yet, this campus has a special deal with all you can eat tickets as a backup for those living off campus. Who pays $30,000 a year to get an Engineering Degree? The Greater Fool lol.

#188 jess on 05.29.18 at 2:29 pm

MADRID — A growing number of Spanish politicians and business leaders are ending their careers in an unexpected place: behind bars.

Almost 1,500 people in Spain faced trial for corruption between July 2015 and the end of 2016, according to official figures. Around 70 percent of them were found guilty.

https://www.theguardian.com/world/2018/may/29/italy-political-turmoil-angers-backers-lega-five-star-movement-coalition
Since the country’s transition to democracy in the late 1970s, those sitting on the defendant’s bench have included top business people, ministers, regional presidents, mayors and even Princess Cristina, the king’s sister. In the past few months alone, the entrepreneur Iñaki Urdangarín (Cristina’s husband and King Felipe VI’s brother-in-law) and former International Monetary Fund chief Rodrigo Rato were among those sentenced to prison.

Mariano Rajoy will soon become the first sitting prime minister to appear as a witness in a Spanish court when he gives evidence in a massive corruption case involving the alleged illegal financing of his Popular Party (PP).

=========
italy
Giavazzi believes if it came to a vote, a large majority would back staying in the currency. “It’s mostly the older generation who complain about it, the younger ones don’t know any different,” he said. “People aren’t stupid – Italy is a country with a very large amount of private savings and most don’t want to revert to being paid in lira.”

#189 jess on 05.29.18 at 2:31 pm

freely speaking and its limits

Roseanne Barr has seen her revived sitcom cancelled after online outrage over a racist and Islamophobic tweet that attacked former Obama White House adviser Valerie Jarrett.

Roseanne cancelled: ABC scraps sitcom after star’s racist tweets

Network pulls Barr’s revived show and calls racist tweets towards ex-Obama adviser Valerie Jarrett ‘abhorrent and repugnant’

#190 tccontrarian on 05.29.18 at 2:33 pm

#189 Shawn on 05.29.18 at 1:51 pm

Sell your house and buy QQQ
————————————–

Haha…just added to my QQQ short position! We’re on the opposite side of this trade, dude! GLTU

TCC

#191 jess on 05.29.18 at 3:26 pm

remember joe owe and the backgroud logo kpmg
rob ford would hire outside auditors???

===========

KPMG abandons controversial lending of researchers to MPs

It follows criticism it is seeking to exert political influence to ‘secure desirable outcomes’

KPMG to be investigated over Carillion auditing

Watchdog opens inquiry into accountancy firm’s role in collapse of construction giant
nvestigated by the UK’s Financial Reporting Council over its role in the collapse of constrution firm Carillion.

KPMG has quietly abandoned a longstanding practice of making donations in kind to MPs and political parties by providing researchers to help in formulating policy and legislation.

The decision by the accounting giant, which has been criticised for its role as auditor to the collapsed construction giant Carillion, comes after figures released by the Electoral Commission in March showed that donations by the big four auditors tumbled by 91% during the 2017 election campaign compared to that of 2015.
https://www.theguardian.com/news/2018/may/29/the-financial-scandal-no-one-is-talking-about-big-four-accountancy-firms
==

Another Update on the Case of FDIC v PricewaterhouseCoopers re: Colonial Bank
April 5, 2018:

PwC faces largest ever auditor malpractice damages verdict read more @ http://retheauditors.com/

#192 Stan Brooks on 05.29.18 at 3:38 pm

#134 KLNR on 05.29.18 at 7:49 am

Good luck stan. don’t let the door hit you on the way out.

———————————–

Can you come with something original, product of your own thinking?

Another day, another brain-frozen idiot repeating the same (and only) old and stupid meme:
‘Don’t let the door hit you on you way out.’

Can’t you just say: ‘f..k you a…ole’ or something else product of your own thinking please?

Please God/Allah/Buddha, tell me there is limit to stupidity and pattern thinking in this place.

You know what? I looked around and I saw no door when I was leaving.

#193 Stan Brooks on 05.29.18 at 4:03 pm

#185 Tater on 05.29.18 at 1:31 pm
#144 Be Realistic on 05.29.18 at 9:08 am

This comparison to the US crash argument has been debunked by “pumpers” and gloomers alike. The two situations are completely different.

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

Yes, the situations are very different. Ours is much worse than US at the height of their bubble.

What is different here is that people are much more stupid and conditioned to ignore reality than in the states so it will take longer for the bubble to unravel, but it will eventually explode and crash taking the whole ‘economy’ or whatever derivative travesty our remains of economy represent with it.

The opinion expressed by bankers on Bloomberg is just wishful thinking.

Another attempt at ‘this time is different’

As for the BoC leaderships, this is what scares me. These guys are so dumb that I can not express it with words.

Inflation sub 2 %? Right.

#194 waiting on the westcoast on 05.29.18 at 4:08 pm

Shawn Vs. TCC…

It would be great to get each of your top 3 reasons for your trade and one fear each of you have why the trade may not happen…

#195 Dissident on 05.29.18 at 4:10 pm

Proof that banks are evil bastards: Just got an email from our mortgage provider – “Why refinancing is a great idea if you’re doing renovations or repairs” – So because new mortgage applications and new home purchases are the slowest they’ve been in the past decade, banks are trying to squeeze more money out of their existing clientele by encouraging them to take out more loans against their existing homes, thus more business. It’s so transparent. Gotta pad that bottom line right?

When was the last time your landlord (aka the bank holding the mortgage who you’re essentially paying rent to) encouraged you to make repairs to your (their) property, and then suggest you pay for it with money you don’t have and go (further) into debt, so you can pay them more interest (rent) on a property you’re already paying interest (rent) on. Lolz.

#196 maxx on 05.29.18 at 4:20 pm

#17 Padmavati on 05.28.18 at 5:33 pm

“No hyperinflation, just defaults on bad loans, lenders should face the consequences of lending money.”

Completely agree.

“Sometimes I think debts don’t matter considering how large the debts are in this country at federal provincial and individual levels.”

They will under the weight of higher taxes.

#197 Leafs Nation on 05.29.18 at 4:21 pm

#129 Smoking Man on 05.29.18 at 7:09 am

Why the leafs will never win a Stanley Cup again.

Las Vegas last night. The arena stands filled with raging testosterone. In leaf nation. Girly men cheer in teacher pleasing high pitch octaves.

Drain the Swamp, Go Knights Go…..
………………………………………………………..
Hey wannabe American GTF home! Back to Socal where you can blend in with your friends under the freeway bridge! I dare you to come to a leafs game and try that $hit. Go ahead, try it!

#198 jess on 05.29.18 at 4:32 pm

this story matches your title
who’s who pathalogical liar +some big names
The Theranos deception

How a company with a blood-testing machine that could never perform as touted went from billion-dollar baby to complete bust

“https://www.cbsnews.com/news/the-theranos-elizabeth-holmes-deception/

“By February 2015 the Theranos fairytale was about to unravel publicly. At the Wall Street Journal, Pulitzer Prize-winning reporter John Carreyrou, who has written a book about the Theranos saga, got a call. It was a tipster casting doubt about the Edison, Theranos and its charismatic founder, Elizabeth Holmes.

stack your board with prestigious names and hire a big name lawyer and you can pretty much get away with enormous amounts of fraud for a very long time. At its peak, Theranos was valued at almost $10 billion, making Holmes’ a billionaire from her stake in the company.

Holmes’ board of directors carried heavyweight names like former Secretaries of State George Schultz and Henry Kissinger; current Secretary of Defense James Mattis; and former Senator Sam Nunn. All of her impressive board members were paid in shares of Theranos stock, thus incentivizing them to let the company’s value soar on wild, unsubstantiated claims.

Theranos’ lawyer was David Boies, now disgraced from his Harvey Weinstein involvement and gag orders. Boies was also paid in Theranos stock, worth about $4.5 million at the time. According to media reports, Boies ended his legal advisory work to Theranos in 2016.

Theranos never became a publicly-traded company where it could have seduced mom and pop investors to buy into its multi-billion dollar scam. It raised its money from well-heeled investors like media-titan Rupert Murdoch, Oracle founder Larry Ellison and the current, controversial Secretary of Education Betsy DeVos.

http://wallstreetonparade.com/2018/05/sec-charges-elizabeth-holmes-with-massive-fraud-but-says-she-can-head-a-public-company-in-10-years/

http://wallstreetonparade.com/2018/05/sec-charges-elizabeth-holmes-with-massive-fraud-but-says-she-can-head-a-public-company-in-10-years/

#199 Dissident on 05.29.18 at 4:35 pm

And btw, anyone out there who is lamenting the folks who “just want free stuff” – uh, look in the mirror. You also want free stuff, like tax breaks. Remember? That’s also free stuff. That’s why you voted. Duh. So congratulations, you’re no better than the rest of humanity.

Anyone who doesn’t demand free stuff from their government is missing the point of being a taxpayer. Its our very own mandatory participation pyramid scheme. So of course, we’re gonna collect.

#200 vote for something on 05.29.18 at 4:42 pm

Garth, during the federal election, you gave some sage advice…. vote for something, not against it.

So I can’t vote for the NDP because all this “free” stuff isn’t free. I can’t vote for the Liberals because they are the devil you know who increased our debt with their mismanagement.

But can I vote PC? There’s nothing to “vote for” as they have no costed platform, and he’s spending wasting airspace talking about “elites” and $1 beer.

What’s your take?

#201 Smoking Man on 05.29.18 at 4:51 pm

Leafs Nation on 05.29.18 at 4:21 pm
#129 Smoking Man on 05.29.18 at 7:09 am

Why the leafs will never win a Stanley Cup again.

Las Vegas last night. The arena stands filled with raging testosterone. In leaf nation. Girly men cheer in teacher pleasing high pitch octaves.

Drain the Swamp, Go Knights Go…..
………………………………………………………..
Hey wannabe American GTF home! Back to Socal where you can blend in with your friends under the freeway bridge! I dare you to come to a leafs game and try that $hit. Go ahead, try it!
…..

Been a leaf fan since 67…no more. Tired of waiting
Put my Knights cap on at the start of the year. My favourite city in the world.

I can’t hang with socialist and people that read Toronto star anymore.

Called evolution… Leafs suck and always will till the city is purged of communists.

#202 tccontrarian on 05.29.18 at 4:53 pm

#198 waiting on the westcoast on 05.29.18 at 4:08 pm

Shawn Vs. TCC…

It would be great to get each of your top 3 reasons for your trade and one fear each of you have why the trade may not happen…
——————————————————
I have ‘respect’ for the market but no ‘fear’…

One reason only needed: tech stocks are overvalued and ‘everyone’ thinks it’s a ‘safe’ sector – a contrarian’s dream!

TCC

#203 Tony on 05.29.18 at 6:50 pm

Re: #188 The Real Mark (not the imposter) on 05.29.18 at 1:46 pm

I guess you’ve never heard the phrase “the debt wall”.

#204 Rexx Rock on 05.29.18 at 9:46 pm

NIRP coming to Canada when the next recession comes.Buy real estate when this happens and you will be rewarded!

#205 Gotta Get Out of Calgary on 05.31.18 at 1:25 am

#156 Calgary Rip Off on 05.29.18 at 9:59 am

The zoning is ridiculous in NW Calgary. For every 3 lots there should be just one house.
____________________________________

That’s why those housing communities perched on the hills in NW Calgary are often referred to as the “Beehives”.

An accurate description, especially when viewed from across the river in the SW. Not only crammed in like sardines but stuck in the hive when the roads off those hills get coated with the usual Calgary winter glaze ice.

It always astounds me that people will buy housing with such poor living conditions.

#206 monique on 05.31.18 at 5:42 am

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