Precious

Well, haters – alt-right devotees, idled realtors, mutual fund salesguys, Dippers and screwy Millennials – the following is for you. A nice letter has poured in from a guy named Dan who claims his challenging life was made better by this pathetic blog. Just what my fractured ego needs.

Seems you’ve had a rough ride as of late with your fanatical few on the blog, so I wanted to tell you a story and give a big THANK YOU! I’ve been reading your blog since 2010, and it’s been a guide through many of my life decisions since then.  I moved to Calgary in 2010, finished a masters in 2014, and generally saw increases in my income and net worth the entire time.  For one year, and one year only, I even joined the 1% in regards to income.  Then everything changed…

Through that time I watched my friends buy first and even second houses, finance fancy cars and trucks with balls (it is Calgary), and spend every cent they made on niceties like vacations, clothes, and sometimes even dogs.  Which of course I got to visit!

In October of 2015 I lost my job, and my fiancé in the span of two weeks.  With layoffs everywhere I used the funds I had saved renting and my full TFSA to disappear to SE Asia for 6 months, I came back much healthier mentally.  You’re right when you say time, and how you spend it, is priceless!  Because I didn’t own and had saved/invested, I wasn’t worried about money after I returned to Canada.

Then the unthinkable became reality, the months ticked by, hundreds of job applications went out, and a very few job interviews happened, yet nobody would hire me.  In the meantime I met my wife who needed to be sponsored and couldn’t work until the immigration approved it.  Needless to say the RRSPs floated us until today. I was hired yesterday by Suncor with a solid 6 figure income.

People may be slamming you on your blog, but I credit you for great and free advice that got me through this tough time.  I had choices others didn’t have because I read and followed.  I still don’t own and a bank wouldn’t touch me, but I take you at face value when you say “consider buying but be smart about it”.

So Garth, thank you!  I don’t know what would have had happened if I didn’t find your blog on a snowy day 8 years ago…

Dan has discovered simple truths. Like, always have a Plan B. Spending everything you make, plunging into the abyss to get a house you could rent, having no reserves, liquid assets or backup, is foolhardy. Not only does it leverage up risk, it narrows options and destroys your ability to cope with the unexpected. Almost without exception in life it is better to have money than to have stuff.

Second, debt is the enemy. Loans aren’t taken out from a financial institution, but against your future. You borrow and spend money you have not yet earned – so it’s a major gamble that job loss, disability, marriage breakup, economic reversal or anything else life can deliver won’t happen to you. That’s arrogance, or stupidity. Likely both. Get over it. Reduce the risk by trashing the debt.

Finally, money or wealth is not the goal of this exercise (life). Those who blindly pursue it, shucking aside family, pleasures or patience for others in return for increased income or more assets, are fools. I was reminded of that when a colleague in my office slumped in a crumpled heap on his desk, dead in three minutes of an aneurysm. He’d been putting off retirement so he’d have that extra little payout. Bad plan.

Equally foolish can be frugality. Lining up for hours to save a few dollars, driving extra miles for a cheaper tank of gas, earning 2% on savings because you’d rather be old and poor than take a risk or thinking retirement means staying at home watching Oprah and mending socks, places no value on time. But, as Dan said, this is the most precious commodity possible. Money can be made, borrowed or stolen, yet not a single hour of your life can be replaced. The young can be excused from misunderstanding this. The old cannot.

There. A whole blog without Trump.  I must be mellowing.

 

188 comments ↓

#1 Party on Garth on 06.14.18 at 4:36 pm

The borrowing and spending binge by Canadian households, businesses and governments (all levels) continues unabated. Growing the debt in the economy significantly faster than the economy itself grows seems to have developed into a way of life in Canada.

At the end of March, 2018 the total debt outstanding in Canada (bottom line of the Statistics Canada credit market summary data table) was $7.745 trillion. At the end of March, 2017 the total debt outstanding was $7.34 trillion. In the 1 year period from the end of March, 2017 to the end of March, 2018 it increased by $404.4 billion. This is an increase of 5.5%.

Looking at the total debt outstanding of domestic non-financial sectors in Canada (17th line up from the bottom of the credit market summary data table): At the end of March, 2018 the total debt outstanding of domestic non-financial sectors was $5.427 trillion. At the end of March, 2017 the total debt outstanding of domestic non-financial sectors was $5.115 trillion. In the 1 year period from the end of March, 2017 to the end of March, 2018 it increased by $311.3 billion. This is an increase of 6.1%.

https://owecanada.blogspot.com/2018/06/canadian-total-household-business-and.html

#2 Bilious Festeroni on 06.14.18 at 4:53 pm

Preach. Best post yet. Nailed it.

#3 Brett in Calgary on 06.14.18 at 4:55 pm

That was fantastic.

#4 jose on 06.14.18 at 5:01 pm

Wisdom

#5 crossbordershopper on 06.14.18 at 5:05 pm

well said thats why its so important to not wait for things to get better, but to make shit happen, get out there and do it. take that risk, ask that girl out, dont be shy, just do it, try it, something will stick life is about odds, increase your chances and increase your odds.
Its not about politics etc, its about make yourself great again.dont let the little people bring you down, dont care about what people think, make yourself happy, and have a balance of reserve for the future and the pleasures of todays consumption

#6 gfd on 06.14.18 at 5:05 pm

. . . breeze of fresh air, thank you

#7 Stan Brooks on 06.14.18 at 5:05 pm

The assumption that time is important (the most precious commodity) possible is transitory and very soon proven wrong in the context of automation. and outsourcing.

When jobs disappear and disappear they will, the free time of the jobless will mean nothing, absolutely nothing.

#8 Renter's Revenge! on 06.14.18 at 5:05 pm

I was recently reminded of the old adage “he who cares least wins”.

It seems to apply to this post and Dan’s story. Not being obsessed with owning a house or keeping up with the Joneses, going with the flow when getting laid off and losing his fiancé, enjoying his time when he can, and getting back on the horse when the opportunity presents itself.

Dan wins!

#9 RedKnave on 06.14.18 at 5:05 pm

We need need to be reminded of this now and again. Thanks Garth.

#10 Phil on 06.14.18 at 5:06 pm

Thank god no politic talk from Garth. But look at what your financial advice has done. Saved lives. Keep up the great work!

#11 FLHTK on 06.14.18 at 5:09 pm

Best post yet! This guy nailed it. The most valuable thing is your time and how you spend your time.

#12 Shortymac on 06.14.18 at 5:28 pm

Awesome post Garth! Glad I didn’t stretch myself out on a house in an overinflated market.

Now if the market would crumble in TO proper, a house shouldn’t be like 800k in rexdale.

#13 tjk on 06.14.18 at 5:31 pm

Great advice and exactly what I needed to hear today!
Thank you.

#14 TDOT MGTOW on 06.14.18 at 5:31 pm

In October of 2015 I lost my job, and my fiancé in the span of two weeks.

And Torontonians and femicommies judge me negatively for only seeking arrangements with CSWs. Honestly what is the difference between this man’s situation and mines? I’m not fooled by the pretenses of marriage, and the females are hotter.

#15 Penny Henny on 06.14.18 at 5:31 pm

Then the unthinkable became reality, the months ticked by, hundreds of job applications went out, and a very few job interviews happened, yet nobody would hire me.- Blog dog Dan

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

Hey Mark that sounds like you. Lives in Calgary and no job.
Unlike you though he didn’t give up.

#16 Senior on 06.14.18 at 5:34 pm

Here’s another reason to save money and keep your debt down. Here’s an article on retirement homes.
Ottawa currently has the second-highest average rental rate in Ontario for standard spaces at $3,920 per month for a standard space, second only to Toronto.
Yikes. That doesn’t include moving up to the dementia suites that are about $2,000 more a month! It cost us more than $5,000 a month for my aunt and all she had was a tiny room and staff that were run off their feet.

#17 Guy in Calgary on 06.14.18 at 5:35 pm

This blog is why I am going skydiving and visiting friends in Hamburg and Amsterdam this year. Then camping in Kluane NWT. The markets have been kind and no sense saving money just to die with it in the end. Save, invest and also live.

Trying to find like minded people in Calgary is challenging.

#18 Penny Henny on 06.14.18 at 5:36 pm

#7 Stan Brooks on 06.14.18 at 5:05 pm
The assumption that time is important (the most precious commodity) possible is transitory and very soon proven wrong in the context of automation. and outsourcing.

When jobs disappear and disappear they will, the free time of the jobless will mean nothing, absolutely nothing.
///////////////////

Holy Crap!
Stan Brooks wrote a whole comment without slagging Canada. The meds must be working :)

#19 Stone on 06.14.18 at 5:40 pm

#7 Stan Brooks on 06.14.18 at 5:05 pm
The assumption that time is important (the most precious commodity) possible is transitory and very soon proven wrong in the context of automation. and outsourcing.

When jobs disappear and disappear they will, the free time of the jobless will mean nothing, absolutely nothing.

———-

That confirms it. You’re just a souless puppet.

#20 Boris on 06.14.18 at 5:43 pm

Time is dimension you will never own. Spend it wisely.
Thank you, Garth.

#21 Axehead on 06.14.18 at 5:49 pm

Best picture of the year.

#22 Bloke in the UK on 06.14.18 at 5:51 pm

This may be the simplest and most profound post you’ve made in all the years I’ve followed your blog. If only more people realised.

#23 iogitra on 06.14.18 at 5:51 pm

Well, congrats to Dan for the golden years. To be there and to squander all away. Only 6 months? Wish I’m wrong but he’ll see in a few years.

#24 Sask to AB on 06.14.18 at 5:54 pm

Wonderful post. Thank you.

#25 mitzerboyakaQueencitykidd on 06.14.18 at 6:04 pm

thx Garth that’s why i come here too.

#26 Uncle Bob on 06.14.18 at 6:06 pm

Kudos Garth, well done.

#27 Dreamweaver on 06.14.18 at 6:08 pm

Thank you Garth.There are three types of people in this world : those who watch things happen , those who make things happen and people that say “what happened !?” …Dan the Man is not one of them !
Will include this post of financial prose with the Wealthy Barber for my kids to read. My grandparents lived through the great depression and taught me to pay cash , limit debt , that life is about memories not material things. Thankfully these lessons are (finally) about to be relearned , the hard way.

#28 Bob Dog on 06.14.18 at 6:08 pm

Everything I really need to know about life I learned from Star Trek.

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

Time is the fire in which we all burn.

#29 jas on 06.14.18 at 6:11 pm

“Loans aren’t taken out from a financial institution, but against your future.”
—————————————————–
Very well said, Garth.

#30 SoggyShorts on 06.14.18 at 6:31 pm

#14 TDOT MGTOW on 06.14.18 at 5:31 pm

And Torontonians and femicommies judge me negatively for only seeking arrangements with CSWs

**************************
What’s a CSW? Commercial Sex Worker?

Seriously, I googled it and that’s the only thing that makes sense.

#31 Entrepreneur on 06.14.18 at 6:32 pm

Always taught if starting a business to borrow a little at a time but pay it back then borrow again only if can see a need. And for housing debt, to save as much to lower the amount. Not so much anymore.

Short term debt is flirting with the devil; long term debt is just plain evil. And using housing as an economy is playing the game.

What can a person do but enjoy the day and your life.
And thanks GT and team, great blog(s).

#32 jess on 06.14.18 at 6:33 pm

fact checking trumps trade see charts here

http://www.msnbc.com/morning-joe/watch/steve-rattner-s-charts-us-runs-trade-surplus-with-canada-1254659139657

#33 Old gringo on 06.14.18 at 6:33 pm

Money can be made, borrowed or stolen, yet not a single hour of your life can be replaced. The young can be excused from misunderstanding this. The old cannot.

Sir Garth, this may very well, be the truest statement you ever made.
I happily can say, I live by it.
Few regrets

#34 SoggyShorts on 06.14.18 at 6:36 pm

Garth, how much of a safety net do you tell your clients to have before they retire early?

If a couple wants 70K income for example, a $1m portfolio should kick that out each year on average, but in case the first couple of years suck, should they save 70x? more first?

#35 Raging Ranter on 06.14.18 at 6:39 pm

@ #8 Renters Revenge, it’s called living a simplified life. Invariably the happiest people are those who want very little in terms of material goods. By definition, a ‘want’ is an unsatisfied desire. If you already have it, you cannot want for it. Wanting more stuff (I.e. bigger house, nicer car, flashier jewelry, etc.) is therefore a guaranteed road to misery. No matter how big your house or flashy your car, someone always has a bigger one or flashier one. Who wins? The guy who doesn’t give a rat’s ass about either. He may end up with both a big house and a flashy car if he is rich enough, but his happiness depends on neither.

#36 Newcomer on 06.14.18 at 6:45 pm

Well said. I tried to explain all this to a 34 year old friend just this week, but I didn’t put it half as well.

#37 Aramis on 06.14.18 at 6:46 pm

What is “a solid 6 figure income” today?

#38 Yeah on 06.14.18 at 6:46 pm

Great post Garth.. Thank you Garth and Dan for sharing.

#39 MSM-Free Zone on 06.14.18 at 6:48 pm

As a former 1980-2000 Alberta resident who’s witnessed it all from Pincher Creek to High Level, its refreshing to hear a good news story from Alberta, from some one who refused to succumb to the usual boom/bust temptations.

Congrats. Well done.

#40 waiting on the westcoast on 06.14.18 at 6:55 pm

World Cup Update for Uruguay!

Well the game starts pretty early tomorrow so I will give a small preamble… Oh, and we will crush Egypt… ;-)

The Uruguayans have won the football World Cup twice. They were the first hosts and winners of the tournament in 1930 and won it again in 1950.
(Source: Fifa).

There are only 3.3M people in Uruguay. Mostly of Northern Italian and Spanish descent. So they are definitely punching above their population in fielding a quality team.

#41 RD on 06.14.18 at 6:55 pm

Sage advice, Garth.

#42 Sol on 06.14.18 at 6:56 pm

It’s hard to change gears though. Either you’re a saver or a spender, and one often precludes the other. I’m trying to change my habits and move into the former… in doing so, I will feel like I am depriving myself and must get used to it. I believe in these categories because people are creatures of habit. However, it’s a good reminder for moderation.

#43 Parksville Prankster on 06.14.18 at 7:00 pm

To quote Monty Burns of the Simpsons:

“I’ll keep it short and sweet. Family, religion, friendship. These are the three demons you must slay if you wish to succeed in business. When opportunity knocks, you don’t want to be driving to a maternity hospital or sitting in some phony-baloney church. Or synagogue.”

#44 waiting on the westcoast on 06.14.18 at 7:01 pm

Garth – well put.

It’s hard to break from society’s programming, etc. Financial Independence is so much more valuable than all the baubles we are taught to covet.

#45 What Is Going On on 06.14.18 at 7:06 pm

Sir Garth of GTA, have you seen this explanation of why President Trump “lost it” with Prime Minister Trudeau?

http://brianlilley.com/what-trudeau-did-to-set-trump-off-it-will-surprise-you/

Viewed in that light, what was up with Minister Freeland suggesting the President is a “demagogue”?

#46 Dissident on 06.14.18 at 7:07 pm

Just got our property tax assessment from City of Toronto, and I’m pleased to see that the purchase price of our spacious condo is $4,000 below what we were assessed at (purchased in 2012).

I am betting that a lot of people now have homes that they purchased for hundreds of thousands of dollars above what the City would assess their value at.

Our detached house horniness has long since fizzled at the current conditions of rate hikes, stress tests and still inflated prices.

#47 JRH on 06.14.18 at 7:10 pm

Thanks Garth !

#48 FOUR FINGERS WATSON on 06.14.18 at 7:16 pm

Dan has discovered simple truths.
………………………

Sounds like he has discovered SE Asia too…way to go Dave !

#49 Ian on 06.14.18 at 7:19 pm

Great post Garth. Time really is important.

Be a saver and investor, but enjoy yourself a bit too.

It was nice to not talk about Trump for a day! Although Smoking Man hasn’t posted yet lol.

#50 crowdedelevatorfartz on 06.14.18 at 7:22 pm

@#132 Dharma Bum
“We were not meant to drink the milk of other animals. As adults we simply should not be consuming dairy. ”
+++++
Is vodka on my Bran Flakes ok?

#51 figus makum on 06.14.18 at 7:22 pm

Minister Chrystia Freeland’s speech upon accepting the Diplomat of the Year award from Foreign Policy magazine.
A paragon of a Canadian politician.
“Facts matter, truth matters.”

Well worth the 24 minute investment.

https://www.youtube.com/watch?v=6RgG7v5jnGU

#52 Capt. Serious on 06.14.18 at 7:24 pm

There are only 3.3M people in Uruguay. Mostly of Northern Italian and Spanish descent. So they are definitely punching above their population in fielding a quality team.

Bruh. Iceland has 360k population, had to go through European qualifying, and is at the World Cup. That is punching above. Like almost everyone in Iceland is on that team.

#53 Capt. Serious on 06.14.18 at 7:25 pm

#16 Guy in Calgary on 06.14.18 at 5:35 pm
This blog is why I am going skydiving and visiting friends in Hamburg and Amsterdam this year. Then camping in Kluane NWT.

Um, Kluane is in the Yukon. It is fantastic though.

#54 Linda on 06.14.18 at 7:25 pm

Excellent post, esp. the timely reminder that choosing $ over time may see you with the $ but no time. I worked with far too many folks over the years who died way too early. So much for worrying about outliving the money.

Do take time to smell the roses. There is a reason why we call today ‘the present’.

#55 ole Doberman on 06.14.18 at 7:25 pm

Nice write up Gartho, liked the part about frugalty, took me 35 years to realize being overly cheap doesnt pay!

#56 earlybird on 06.14.18 at 7:28 pm

Great post!!
Was toasting a friend today that passed away on this date exactly the same way, only 47. Crazy consumerism, and keeping up with the Jones’s is a waste of very precious time!

#27 Everything I really need to know about life I learned from Star Trek.
That is my favorite clip ever about time…time is like a predator…stalking you…love it!

#57 cowtown cowboy on 06.14.18 at 7:31 pm

Hey, I just started at Suncor a month ago! Sadly just a consultant but I’m hoping to get on fulltime in the next few months…let’s keep digging up that sweet, sweet bitumen!

#58 @careeraftschool on 06.14.18 at 7:32 pm

Looks like the oil patch is starting to ramp up again. Trican Well Services had a job fair in Abbotsford, BC today. When Alberta companies start hiring in BC it usually means they are pretty confident 12 to 18 months out. Hope the price of oil holds.

https://www.kijiji.ca/v-driver-security-jobs/abbotsford/trican-career-fair-rotational-program/1360404798

#59 Nonplused on 06.14.18 at 7:34 pm

Dan’s story is very common here in Calgary, except the part at the end where he got a job. Suncor is one of the few exceptions that has been able to keep on ticking because unlike the shale patch they actually squeak out a small profit. Many of the other companies have fired literally all their middle management. One major company reduced its headcount by 70%. Many of those folks likely will never work in their fields again, just like what happened in the 80’s. I know a few of them that were close enough to retirement that they will probably just tighten their belts a bit and be fine, but for many of the younger folks this thing as been a tragedy. Their getting by on HELOCs and HOPE. But that game can’t last forever.

One guy I used to work with was a pretty brilliant database programmer. Last I heard he was driving cab in Edmonton. I know of lots of stories like this. And when jobs do come up, (they still do, somebody has to keep the lights on) they go to younger folks in the grad-35 year range. It’s a terrible time to be 50. You can’t even get a job by offering to take a more junior position for less money. For a number of reasons companies would rather hire a younger person if they have a choice and they can do the job. One of them being they figure you’ll just quit when the economy turns around. But it ain’t turning.

With oil prices stuck where they are the only real hope for growth in the Alberta economy is new pipelines, Energy East, Keystone, and Trans-Mountain key among them. But those aren’t going anywhere for the foreseeable future. Until the shale oil scam runs it’s course in the US they will not be built. Total revenue = price times volume and for the foreseeable future both are stuck. The ideologues say “we’ll just develop a green high-tech economy”. To them I ask “you mean like Nortel or RIM?” It’s hard to see why the world would suddenly want to start buying solar panels made in Alberta when China has already cornered the market.

The fact is the major industries in Alberta are petroleum and agriculture, and pretty much everything else is a support industry of some sort. Sure, we make a lot of chemicals, plastics, and fertilizer. But we make it out of the petroleum. We have a lot of manufacturing, but they build oil rigs and equipment.
We have car dealers, construction companies, and restaurants too. But the source money for all that economic activity is the resource sector. Alberta does not have a self sufficient economy. If the oil wasn’t here, there’d be nobody but farmers. It would look like Manitoba without the CRA.

#60 crowdedelevatorfartz on 06.14.18 at 7:36 pm

@#29 Soggy Undergarments
“What’s a CSW?”
+++++
Consenting Sheep Wranglers
Cohabitating Shyster Washing.
Carnival Sex Weirdo?

The list goes on…… but only MGTOW knows for sure.

#61 Older middle aged guy on 06.14.18 at 7:41 pm

Hi Garth, great article, real truth in those words. I learned all about materialism in a palliative care center over several months. I’m happy with what I have, simplicity. Sadly, I’m too frugal sometimes even though I can afford things. I’m sure you have seen some extreme cases, perhaps a future blog ? Thank you for all your time and energy to educate us Garth !

#62 Barb on 06.14.18 at 7:43 pm

That comment about your colleague dead in 3 minutes from an aneurysm will stay with me.
Sad indeed.

#63 Long-Time Lurker on 06.14.18 at 7:44 pm

Thank you, Garth, for continuing your blog!

By the way, today is Trump’s birthday.

(Hee hee!)

#64 Love Guru's Dad on 06.14.18 at 7:45 pm

When you are able to remove all the filters life has given you, and what is before you is pure, the truth… and anger, hate, fear aren’t present….You will know love. Something like that anyway. Maybe Dharma Bum or Smoking Man can correct me. Anyway, the post tonight was just that.

Garth is our financial advisor. We consider him a guru. He’s not J. Krishnamurti, but I bet he has read him. He selflessly delivers guidance that comes from his heart. Fact based information. Emotion rarely strays into the debate, other than maybe his moral compass?

Garth has been with me every step of the way as stress took hold of me over a number of years and I was recently laid off. We had been reading his blog since 2009, and didn’t invest with him until a few years ago. Fear kept us away after the big crash. I am grateful we found the blog and that Garth eventually took us on as a client and lifted the burden of managing our savings.

But hey, I’m the Love Guru’s Dad, so how could he resist.
Segway. Garth puts himself out there everyday. My first post as Love Guru’s Dad and I get called “Dummy” And it hurt! Multiply that by thousands of posts and each one containing hurty words directed at him.

Thanks and Praises.

M54BC

#65 Shawn Allen on 06.14.18 at 7:50 pm

Well, Let Them Own Robots

#7 Stan Brooks on 06.14.18 at 5:05 pm
The assumption that time is important (the most precious commodity) possible is transitory and very soon proven wrong in the context of automation. and outsourcing.

When jobs disappear and disappear they will, the free time of the jobless will mean nothing, absolutely nothing.

*****************************************
In that case, our mission is clear. Be an owner of robots and other capital. If human labour of any kind is no longer worth anything in the market place then it will be essential to own investments throwing off income. It would be a rentier’s paradise.

Of course, Buffett has said , look if all the goods and services can be produced “at the push of a button” humanity should be better off as long as we share out the production in some fair way. And we will need to have things to do to keep people occupied.

Owners of capital with investments will get a larger share. But be assured the welfare state can only grow with automation and fewer jobs.

Capital will indeed be taxed. It would have to be if there is no labour to tax.

Those with capital and paying tax will still be better off than those who don’t own robots/capital. Our missions are clear.

#66 Yorkville Renter on 06.14.18 at 7:51 pm

Being a renter and not blowing our brains out on a home/mortgage allows my wife and I to live a great life – full-time nanny, month-long vacations and we started a business with little concern covering our monthly expenses.

We have tremendous flexibility – we live on our own schedule.

Life is wonderful, but only when you decide what’s really important

#67 Tony on 06.14.18 at 7:51 pm

One reason for Calgary real estate falling the past ten years is the property tax assessment on everything is about fifty percent higher every year (about the past 23 years) than what a given property would sell for. This is the number one reason Alberta real estate has fallen for over a decade. The reason is not the price of oil but absurd property taxes.

#68 crdt on 06.14.18 at 7:52 pm

“But, as Dan said, this is the most precious commodity possible. Money can be made, borrowed or stolen, yet not a single hour of your life can be replaced. The young can be excused from misunderstanding this. The old cannot.”

Thank you G! Really enjoyed this post, no politics. (The Hollywood Access tapes is what made me love the guy!)

#69 Long-Time Lurker on 06.14.18 at 7:54 pm

In other important news, Mystic Marcus predicts Belgium, Argentina, Nigeria and Uruguay as the World Cup semi-finalists.

https://nypost.com/video/this-psychic-pig-just-predicted-the-world-cup/

#70 pay your taxes on 06.14.18 at 7:57 pm

What have you done, Dan? Don’t buy her family a truck or land in the village. You could be in for a hell of a ride. I’ve seen and lived that movie before and was lucky to get out with my skin intact, but I didn’t marry or sponsor. Best of luck to you.

#71 Been in Asia Too Long on 06.14.18 at 7:59 pm

DELETED

#72 FreeBird on 06.14.18 at 8:05 pm

Finally, money or wealth is not the goal of this exercise (life).

No shit. My father who I watched and take his last breath would’ve agreed. He with mom (who he respected not just loved) built small but modestly successful business over 40 yrs that sold and still exists today. Solidly middle class in good yrs. What I learned in 50 young yrs? If you’re doing for (just) for the money forget ‘bout it! You may have money but you’ll sick, miserable or both. Respect money as a tool but dont let it ever be your reason to live. My husband says unless it’s a Porsche (used of course). My father would agree but argue a nice cruiser. You get the picture. Life is short all. Too short. Stop reading blogs (except this one) and FGS the news, go sit outside with some good music and company.

#73 AM in MN on 06.14.18 at 8:10 pm

At the end of the day it’s about freedom. Free people are generally more happy than bound people.

Despite the risks, I am others I know who are self employed or own their own business are happier, and in the end wealthier, than those who chose the comfort and security of employment.

If you like what you do, there is no need to retire, just go slower as you need and take time when it makes sense. I’ve known plenty of miserable retired men because they’ve lost their sense of purpose.

Also, focus on family, including the extended ones who annoy you or need help. When you can’t drive or feed yourself, you never know how glad you might be not to be abandoned.

As an aside, 95% of people who have a liquid net worth of over $10M, not counting their primary residence or inheritances, got there by building a business over the long haul and then selling it. Staying married and not carving it up in a divorce settlement also helps.

#74 FreeBird on 06.14.18 at 8:10 pm

#16 Guy in calgary
This blog is why I am going skydiving and visiting friends in Hamburg and Amsterdam this year. Then camping in Kluane NWT. The markets have been kind and no sense saving money just to die with it in the end. Save, invest and also live.

Trying to find like minded people in Calgary is challenging.
——————
First, congrats! We have friends in Amsterdam. And, Im jealous! Enjoy and safe trip.

PS we know some in Calgary who are invested and love travel. Keep looking.

#75 Sam the Sham on 06.14.18 at 8:11 pm

It looks like the CMHC has a different take on the housing market. Totally at odds with this blog’s housing crash fanatics.

Ontario home prices expected to rise moderately, declines unlikely to persist: CMHC

http://www.cbc.ca/news/business/cmhc-ontario-housing-outlook-1.4705767

#76 bb on 06.14.18 at 8:16 pm

#14 TDOT MGTOW on 06.14.18 at 5:31 pm

He dodged a bullet with his ex-fiance.

However, there’s a mention that “In the meantime I met my wife who needed to be sponsored and couldn’t work until the immigration approved it”.

Dan should write to you as well.

#77 bb on 06.14.18 at 8:20 pm

#14 TDOT MGTOW on 06.14.18 at 5:31 pm

Dan dodged a bullet with his ex-fiance.

However – “In the meantime I met my wife who needed to be sponsored and couldn’t work until the immigration approved it”.

Dan should write to you as well.

#78 wallflower on 06.14.18 at 8:24 pm

In the 12 billion years of life of our solar system (where are we now, at the 5B mark?), our cute little sun/planet combo will have orbited through the Milky Way only 60 times. The arithmetic boggles the mind. Humanity is a cosmic hiccough. Your life? So vanishingly precious. What are you doing with it?

#79 OttawaMike on 06.14.18 at 8:36 pm

Today’s blog wins the internet.

#80 tccontrarian on 06.14.18 at 8:45 pm

“Money can be made, borrowed or stolen, yet not a single hour of your life can be replaced.” -GT
————————————————————–

Well, if you’re a bank, you can also ‘create it out of thin air, so to speak…but that’s another battle.

I’ve been reading your blog for quite some time too (maybe 3 years), but my decision to become debt-free and financially independent occured in 2009 (when a broker screwed me with his advice).

Although at times it may not be apparent, I appreciate the existence of this blog, as I agree with many of Garth’s ideas. But I also read most of the comments just to get an idea of what people are thinking/feeling; a lot of nonsense to be sure, but if 5% provide some value, then it’s time well-spent.

About Trump? I don’t talk about him at all as I feel that his MAIN goal is to produce ‘news’ on a daily basis so as to keep the sheeple distracted and worried. I mean, come on! One day he’s threatening to destroy NK and then he does a 180 with an olive branch! Are we really that naive?

TCC

#81 espressobob on 06.14.18 at 8:45 pm

Nothing like a safety net. Life can throw a prick shot your way in an instant.

Many don’t plan to fail, they just miss the point. Masters of their own demise. Just didn’t plan.

Choices?

#82 just a dude on 06.14.18 at 8:52 pm

Garth, I would qualify this as possibly your wisest post. Ever. And I’ve been reading your insights/books for 20+ years.

We all need reminding of these plain and noble truths. Thank you for doing so consistently. And always for free … wow.

You rock, Sir.

#83 Yuus bin Haad on 06.14.18 at 8:58 pm

I miss the haters.

#84 Anne on 06.14.18 at 8:58 pm

Great post. Thanks for sharing.

The easiest way to gain happiness is to want the things you already have.

#85 cmj on 06.14.18 at 8:58 pm

Once again, Garth, you have given us pearls of wisdom. I come to this blog for many reasons. Here is an excerpt from July 8, 2010 that I keep closeby as a life guiding compass. Today’s post will also guide me
“Never succumb to mediocrity. Refuse to acquiesce. Resist compromise. Remember that money will flow through your hands, but conviction will stick in your heart.” Garth Turner
Thanks again, Garth. I can’t even imagine how many lives you have impacted through your blog

#86 islander on 06.14.18 at 9:08 pm

So true….and thanks again Garth for seeing us all through these ups and downs…

#87 conan on 06.14.18 at 9:09 pm

There. A whole blog without Trump. I must be mellowing.

-Garth

Nope, looks like PTSD.

CSW = google heidi fleiss

#88 Smoking Man on 06.14.18 at 9:12 pm

Love Guru’s Dad on 06.14.18 at 7:45 pm
When you are able to remove all the filters life has given you, and what is before you is pure, the truth… and anger, hate, fear aren’t present….You will know love. Something like that anyway. Maybe Dharma Bum or Smoking Man can correct me. Anyway, the post tonight was just that.
…….

No need to correct. It was bang on. Feels so liberating to be myself on linked it. Let the chips lay where the fall. Once you find the nothing else matters soul. You have made it. Most people only find it on there death bed. Not I. I was lucky.

And yeah as much as Garth deletes my best shit. I still like the bastard. He’s a good shit and dose a lot of good for people.

#89 Dogs can type. on 06.14.18 at 9:27 pm

Time?

Nah, spend all your time here making up stories about being a writer who drinks JD all day that nobody listens to.

Life is short.

#90 KLNR on 06.14.18 at 9:29 pm

Man sacrifices his health in order to make money. Then he sacrifices money to recuperate his health. And then he is so anxious about the future that he does not enjoy the present; the result being that he does not live in the present or the future; he lives as if he is never going to die, and then dies having never really lived.”
-DL

#91 Canadian Moose on 06.14.18 at 9:30 pm

Amen!!!! Thank you Garth and good evening.

Thoughts from the Hinterland

#92 Wrk.dover on 06.14.18 at 9:34 pm

My father used to tell me that when you are born, you come with a case full of rolls and rolls of tickets. Some people have big cases, some don’t, but at one ticket/hr. when they are gone, they are gone and your life ends, he said. Don’t waste your tickets, any of them, he said. The last time I saw him, I sensed that an old dogeared cardboard ticket box with nothing but dust bunnies and a few dead flies in bottom, was somewhere in the room.

He broke 90, but 90 broke him.

Working for what you don’t need is burning tickets. Planning to leave an estate behind falls into that category. He used his tickets well.

#93 Shawn Allen on 06.14.18 at 9:35 pm

Money From Thin Air

#80 tccontrarian on 06.14.18 at 8:45 pm quoted and said:
“Money can be made, borrowed or stolen, yet not a single hour of your life can be replaced.” -GT
————————————————————–

Well, if you’re a bank, you can also ‘create it out of thin air, so to speak…but that’s another battle.

*****************************************
True, a bank together with a borrower can creat a loan and a dep[ost and the deposit is money. The bank has to have sufficent owners capital and liquiity to do it but usually that is not a problem.

The catch is though that it is the customer who owns that deposit , not the bank. The customer can spend the money. He then pays interest to the bank which in part compensates the bank for its costs and the risk that the customer will be a deadbeat and never pay the loan back.

If banking looks like a great business, it usually is, so maybe buy shares. Usually the shares are relatively cheap not trading all that much above book value and often earning over 15% on book. Even at twice book value, that is a juicy proposition. What is not to love? Bank haters especially should be the first to buy, no?

#94 WUL on 06.14.18 at 9:38 pm

Turner,

Nice entry today. Kudos.

Can’t stay long here. FLOP assigned me Iran in the World Cup and I promised to find some fun facts for tomorrow’s match. There are astonishing facts about that part of the world. An amazing country going back 7 and 8 millennia BC. However, they were and continue to be trampled (oil and gas greed) by the ruination imposed by the empires of Russia, Germany, United States and UK. Deposed governments, coups, famine, war, assassinations etc. Kinda sad. Fortunately two of those murderous empires are failing and in their death throes. US and UK (poor Theresa May – good luck with that Brexit thingy – she’s gone).Those are the most fun facts I could find.

Sorry to be a downer on a joyous occasion, namely, your beautiful post and the eve of a victory by Morocco against Iran by, I say, 5 – 0.

#95 Spectacle on 06.14.18 at 9:57 pm

Seems you’ve had a rough ride as of late with your fanatical few on the blog, so I wanted to tell you a story and give a big THANK YOU!

Dan :: it’s called Single Malt ! For everyone else, there is a oh-so-heart felt Thank You
( use a courier to his office )

#96 Fish on 06.14.18 at 10:03 pm

pic Alone with a true companion raw heartfelt

#97 DON on 06.14.18 at 10:06 pm

Great reminder. Way to go Dan…that experience as unfortunate as it was…changed your life. Good for you!

Timely reminder Garth! As I watch my wife’s mother deal with her last months interacting with her grand children. Time is truly precious for all. Time to slow down and enjoy the moment.

#98 PastThePeak on 06.14.18 at 10:10 pm

Thanks for sharing Garth. Interesting story and great advice.

Your point about time is one I have been focused on for a few years now. I want to exit my current career at 55, and while I can’t retire completely, the plan is to make a bit of money out of a small farm business (cow/calf, hay, maple syrup). That bit of income when meshed with drawing down some RRSPs & dividends each year should work.

I would rather get out of the rat race early, and work part time for 10-15 more years at something I really enjoy (and keeps the 150+ year old farm going), rather than stay in the high expense zone and save to just stop working in early 60s.

Now, the missus isn’t exactly on the same page though…we shall cross that bridge when we get there…

#99 El Presidente Trump on 06.14.18 at 10:30 pm

This not what winning looks like… but at least get the Trump mention in glowing Gold and Bold and I might give you a pass on hell..

In the meantime.. I’ll whack the Chinese with tariffs now.. that ought to get me back to front and center tomorrow.. just where all my Trumpoholic ass-kissers like it

#100 crowdedelevatorfartz on 06.14.18 at 10:36 pm

Excellent, timely advice Garth.
Money, possession…things, cant buy happiness.
Anthony Bourdain and Kate Spade are proof enough.

#101 Indigoblue on 06.14.18 at 10:37 pm

Reader and client of yours for years. Love it. Best post in some time.

#102 Marcus on 06.14.18 at 10:39 pm

Trump 2020! Make Canada great again.

#103 Westcdn on 06.14.18 at 10:56 pm

What is new for me? Other than bring the NSA down around my head, not much. I am prone to warrior transgressions when I see “wrong”. The apple does not stray far from the tree. For an introvert, I can be brutal but what is life without passion? I do what I think is the right thing despite being vulnerable to lying – I equate liars/cheats with something I have to scrap off my shoes.

I caved on my 42 cent potato and bought a bag of seed potatoes. They were more than I wanted and I think I screwed up – I mostly learn through failure so Idaho, relax for a few more years. I have been told that Alberta is good for root crops so guess what the farmer in me wants to do.

Restate in Calgary, my neighbourhood at least, are holding. Mind you buyers are not paying for granite/ hardwood renovations. Time to invest in Calgary RE – nah. I do have issues with property tax assessments.

Normally I don’t speak stocks per respect for the sponsor of this blog but what is the difference with an ETF. So for my investments, I am being killed by CHR.b (Jazz Air). I want to step in and buy but the market is telling me something so I will watch before jumping in. I bought some CJR.b because I saw value despite dissing a year ago. I expect the dividend to be cut or halted yet when I look at the cash flow statements… liars/cheats? I am not willing to lever up right now and want the dust to settle.

#104 jefferson on 06.14.18 at 11:11 pm

great post…

my toolmaker old man could’ve retired early, after working 30 years for the same company – but stayed on to max out pension….took a shot to the head at work from a piece of machinery, broken jaw….

while jogging 12 months later dropped dead with a brain aneurysm probably caused by undiagnosed capillary damage from that accident.

dead at 57, otherwise seemingly perfect health, never smoked, never drank.

#105 humphybogarz on 06.14.18 at 11:23 pm

“In the meantime I met my wife who needed to be sponsored and couldn’t work until the immigration approved it.”

Garth,

The wisest thing the lad did was to get rid of the local dame and go with the mail order bride. Immediately took pressure off him to rush out and buy a house. Probably slimmer and trimmer as well.

#106 Ace Goodheart on 06.14.18 at 11:24 pm

RE: #78 wallflower on 06.14.18 at 8:24 pm

“In the 12 billion years of life of our solar system (where are we now, at the 5B mark?), our cute little sun/planet combo will have orbited through the Milky Way only 60 times. The arithmetic boggles the mind. Humanity is a cosmic hiccough. Your life? So vanishingly precious. What are you doing with it?”

Estimated age of the universe: 13.772 billion years.

Isn’t that the depth of human arrogance and conceit?

Measuring the probable lifespan of an entity containing billions of galaxies, with trillions of stars, each likely having trillions of trillions of major and minor planets, by using a measurement tool that counts how many times a minor planet, in a remote solar system, in a small, out of the way, distant galaxy, goes around its equally minor, unimportant star?

The universe’s age can be measured by how many times planet earth has travelled around the star we know as the sun.

What arrogance we humans have.

#107 fumerzpooch on 06.14.18 at 11:26 pm

#21 Axehead on 06.14.18 at 5:49 pm

Best picture of the year.”

Yeah that pooch is gonna pass out from the pheromones and fumes shortly!

#108 Doug t on 06.14.18 at 11:31 pm

Sex drugs and rock and roll = the best years of youth and life = if you missed that you missed soooooo much

RATM

#109 acebigbelow on 06.14.18 at 11:45 pm

#74 FreeBird on 06.14.18 at 8:10 pm

#16 Guy in calgary
This blog is why I am going skydiving and visiting friends in Hamburg and Amsterdam this year. Then camping in Kluane NWT.
——————
First, congrats! We have friends in Amsterdam. And, Im jealous! Enjoy and safe trip.”

Dont forget to visit the Bulldog weed Cafe while there. Before going, watch “Deuce Bieglow European Gigolo” if you want to break into the man whoring market while short on cash

#110 Vision on 06.15.18 at 12:05 am

Wow. Your best blog yet. And the photo of the homeless man with nothing, yet has the love and trust of his dog where possessions mean little. Priceless.

#111 steerage stweward on 06.15.18 at 12:06 am

If you are locking for someone to tell you what to do, you could do much worse then Garth.

Garth is great in that he’s kinda dark

#112 Hiding On the Backstreets on 06.15.18 at 12:15 am

Great post, succinct summary – “Money can be made, borrowed or stolen, yet not a single hour of your life can be replaced. The young can be excused from misunderstanding this. The old cannot.”

Garth, did this wisdom come from age and experience. Was it something innate, that you nurtured and grew over time?

We have to find that balance. Gene Simmons in the intro to his reality show Family Jewels: ‘I don’t take vacations, I don’t take days off. Every day above ground is a day to make money.’

That always struck me as rather foreboding.

#113 Bobby on 06.15.18 at 12:16 am

You never run out of dreams, you just run out of time.

#114 Dogman01 on 06.15.18 at 12:20 am

#28 Bob Dog on 06.14.18 at 6:08 pm
Everything I really need to know about life I learned from Star Trek.

You got it.

Remember so many classic ideas illustrated in story.

Remember this one:

https://www.youtube.com/watch?v=o_eSwq1ewsU

The best part not in this clip, when he is back on Enterprise he admits to Troi …..he saw five light…chilling.
Nineteen Eighty-Four’s 2+2=5.

#115 Democracy Is Mob Rule on 06.15.18 at 12:22 am

#65 Shawn Allen on 06.14.18 at 7:50 pm

Of course, Buffett has said , humanity should be better off as long as we share out the production in some fair way.

——————————————————————–

“From each according to his ability, to each according to his needs” is a slogan popularised by Karl Marx in 1875.

#116 domain on 06.15.18 at 12:26 am

Metals

#117 Lead Paint on 06.15.18 at 12:31 am

Thanks Garth, this post was well worth my time.

#118 MAMIL on 06.15.18 at 12:43 am

Well said! Looking forward to checking off some bucket list items in France. 19 more days to spend some quality time on the bike checking out a few Tour de France events!

#119 Cici on 06.15.18 at 1:14 am

Keep up the great work and the great words Garth!

#120 paulo on 06.15.18 at 1:22 am

longshanks bet: Spain VS Argentina in the final. Spain by a goal takes it.

Great post.

#121 Christy Clark on 06.15.18 at 1:35 am

The comments section helped me keep my ear to the street and form policy to counteract common sense predictability when cooking the BC housing market.

#122 Smoking Man on 06.15.18 at 1:53 am

Truth mining.

Landed on my face, broken nose.

#123 Myra Andrews on 06.15.18 at 2:45 am

Greater Vancouver Stats from realtor Paul Boenisch

June 14 New 306 Sold 104 TI: 12,679
June 13 New 278 Sold 134 TI: 12,533
June 12 New 318 Sold 106 TI: 12,477
June 11 New 372 Sold 131 TI: 12,368

June 8 New 202 Sold 108 TI: 12,271
June 7 New 232 Sold 117 TI: 12,226
June 6 New 295 Sold 156 TI: 12,154
June 5 New 359 Sold 101 TI: 12,105
June 4 New 376 Sold 117 TI: 11,942

June 1 New 224 Sold 105 TI: 11,817

Inventory at the end of:
May- 11,975
April- 10,459
March- 9,032
Feb- 8,211

#124 New Era on 06.15.18 at 3:15 am

to Gravy Train

The only thing that you respond to in my post is a spelling error involving an esoteric exception of the English language ?

As English is one of my 6 languages, I dare you to post (with proper spelling, grammar and punctuation, of course) in Dutch, German, French, Spanish or Italian.

Speaking of Italian, let me leave you with a sincere phrase to translate ” vai a farti fottere “.

Go use google translate you small minded wanker.

#125 john on 06.15.18 at 7:15 am

DELETED

#126 Gravy Train on 06.15.18 at 7:17 am

#123 New Era on 06.15.18 at 3:15 am
“Speaking of Italian, let me leave you with a sincere phrase to translate ‘vai a farti fottere’.”

And you have a nice day, too! :)

#127 TorontoBull on 06.15.18 at 7:26 am

@52
Uruguay have done it consistently over 90 years now

#128 Wrk.dover on 06.15.18 at 7:37 am

Maybe Buddy in the photo isn’t wasting time. Maybe time is wasting him….this Globalised time that we live in.

#129 dharma bum on 06.15.18 at 7:50 am

Almost without exception in life it is better to have money than to have stuff. – Garth
——————————————————————–

Think of money as the fuel of life.

Some of it needs to be burned in order to facililtate the various aspects of your existence.

Like gasoline, money needs to be acquired, stored, and consumed as necessary in order to go places and do things.

The extent to which you consume it, and the efficiency of how you use it, is the key to your wellbeing and longevity.

You can buy a bigass SUV or monster truck and burn the hell out of your fuel just to go from point A to point B, or you can buy a sensible, highly fuel efficient or hybrid vehicle, or electric vehicle, and burn hardly any fuel at all to go just about anywhere you want – for a much longer time.

(Better still, get a bicycle, and substantially reduce the amount of driving you do to save even more fuel to increase your ongoing future mobility.)

Like fuel, money is not the end goal. It’s what you can do with your money, and how efficiently and wisely you spend it, that determines the quality of your life in the long run.

Blow it all consistently on stuff, and you’ll very quickly be up $hitzcreek without a paddle. Broke, busted, stuck, cornered, desperate.

Use it wisely, keep some in reserve, minimize material consumption, and you’ll never find yourself in a jam.

Money is not life. Money is the fuel that allows you to pursue your goals, follow your dreams, and live your life.

Oh, and stay healthy. Otherwise, the point is moot.

#130 Oft deleted much maligned stock.picker on 06.15.18 at 7:57 am

DELETED

#131 robert james on 06.15.18 at 8:03 am

Could the fall in IQ scores in those born after 1975 help to explain some of the “must buy a house craze” ?? http://time.com/5311672/iq-scores-decline-environment/?utm_source=reddit.com

#132 dharma bum on 06.15.18 at 8:04 am

#64 Love Guru’s Dad

“Maybe Dharma Bum or Smoking Man can correct me.”
——————————————————————–

No correction required.

Ignore the noise, and the truth will appear.

Like when the fog lifts to reveal a beautiful sunny sky.

#133 crowdedelevatorfartz on 06.15.18 at 8:32 am

Ladies and Gentlemen.

Could we please have a minute of silence for BC Realtors?

https://globalnews.ca/news/4275445/bc-real-estate-rules/

#134 Karl on 06.15.18 at 8:36 am

The greatest investment you can make is your health. And having good health is priceless. I often think about that when I whine about trivial things.

Health, family and friends. If you don’t have that, doesn’t matter how much your portfolio makes.

#135 In Garth We Trust on 06.15.18 at 8:38 am

“Finally, money or wealth is not the goal of this exercise (life). Those who blindly pursue it, shucking aside family, pleasures or patience for others in return for increased income or more assets, are fools. I was reminded of that when a colleague in my office slumped in a crumpled heap on his desk, dead in three minutes of an aneurysm. He’d been putting off retirement so he’d have that extra little payout. Bad plan.

Equally foolish can be frugality. Lining up for hours to save a few dollars…”

The bearded mystic oracle once again hits a home run for his sagacity. Well done Captain Garth for pointing out how fragile life is and what really counts.

#136 maxx on 06.15.18 at 8:41 am

@#20

Hear, hear.

We “own” nothing in life. Maybe a little creature comfort, but only to the experiential extent that our makeup allows. We cannot enjoy things a million times more because we have a million times more money than someone else.

Every single thing transits and what we legally consider ours is only so for a nano-second or two in the grand scheme, sheltered by a very flawed framework of our own construction.

What endures is the signature of how we acquired that which we consider “ours” within the context of our existence.

What Garth helped Dan to do is a case in point.

#137 Stan Brook's Psychiatrist on 06.15.18 at 8:43 am

#18 Penny Henny

“Holy Crap! Stan Brooks wrote a whole comment without slagging Canada. The meds must be working :)”

Yes Penny, Stanley is heavily medicated and we allow him 10 minutes of straight jacket free time to type his blog comments. He may even be taken out of the rubber room in the near future depending on his behaviour. The lobotomy is still scheduled for next Wednesday though…

#138 Asterix1 on 06.15.18 at 9:11 am

Good old sleaze ball TREB hits again!

“Effective June 15th, 2018, HouseSigma will only provide sold Information to customers who are working with our agents.”

Canada is really stuck in the stone ages when it comes to getting basic RE information.

The damn SQUARE FOOTAGE of the place next to the price!!!

#139 CHERRY BLOSSOM on 06.15.18 at 9:11 am

Is financing and paying interest just the way we live now?

My 69 year old cousin, not working, hurt her shoulder, on EI just bought a $25,000 car and owes $4,500 in back taxes. She just laughs and tells me that just the way things are now. We cannot afford our rents, our cars etc. So what is our alternative.

#140 Room 101 on 06.15.18 at 9:14 am

#136 Psychiatrist – No, as take him to room 101 instead for a chat, because Wednesday could be cancelled for the bald guy.

#141 Hombrelito on 06.15.18 at 9:26 am

Good post Garth! Many thanks for a good read.

CMHC
https://www.cp24.com/news/ontario-home-prices-expected-to-rise-moderately-declines-unlikely-to-persist-cmhc-1.3973238

#142 Conn Smythe on 06.15.18 at 9:31 am

“We have to find that balance. Gene Simmons in the intro to his reality show Family Jewels: ‘I don’t take vacations, I don’t take days off. Every day above ground is a day to make money.’ That always struck me as rather foreboding.”

It is more than foreboding. It is down right asinine. Sounds like the credo of the late Witch of Wall Street Hetty Green….

https://en.wikipedia.org/wiki/Hetty_Green

#143 Stan Brooks on 06.15.18 at 9:36 am

Scary shit.

https://ca.finance.yahoo.com/news/latest-china-says-retaliate-us-080331019.html

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

#136 Stan Brook’s Psychiatrist on 06.15.18 at 8:43 am
#18 Penny Henny

As I said: It is hard for a normal person to live in a mental institution.

Watch ‘one flew over cuckoo’s nest’. Of course medication is needed.

However the good news for you is no medication is needed for you folks, I don’t thing such exists for idiocy and brainwashing.

You can’t raise one’s IQ by farting.

Cheers.

#144 Conn Smythe on 06.15.18 at 9:37 am

#93 Shawn Allen

“The catch is though that it is the customer who owns that deposit , not the bank. The customer can spend the money.”

The bank, through the miracle of fractional reserve banking will keep a small fraction of the deposit on hand as required by law and then loan out the rest. This starts a wonderful chain of events…

#145 Stan Brooks on 06.15.18 at 9:39 am

It is funny how one’s portfolio goes actually up (in loonies) on a day when stock market is actually down. Gains right?

#146 Stan Brooks on 06.15.18 at 9:47 am

Fine news, crafted for the intelligence of the readers:


https://ca.finance.yahoo.com/news/canada-factory-sales-drop-shutdowns-125813021.html

OTTAWA (Reuters) – Canadian manufacturing sales unexpectedly fell 1.3 percent in April from March as maintenance shutdowns cut output at oil refineries, Statistics Canada data indicated on Friday.

That is right, maintenance shutdown at oil refineries impacts manufacturing sales, while Analysts in a Reuters poll had forecast a 0.6 percent increase from March of course accounting for that expected slowdown.

So 2 % drop in expected manufacturing sales to be precise.

And that is from statistics Canada, the same people who tell you inflation is sub 2 %.

#147 BillyBob on 06.15.18 at 9:49 am

94 WUL on 06.14.18 at 9:38 pm
Turner,

Nice entry today. Kudos.

Can’t stay long here. FLOP assigned me Iran in the World Cup and I promised to find some fun facts for tomorrow’s match. There are astonishing facts about that part of the world. An amazing country going back 7 and 8 millennia BC. However, they were and continue to be trampled (oil and gas greed) by the ruination imposed by the empires of Russia, Germany, United States and UK. Deposed governments, coups, famine, war, assassinations etc. Kinda sad. Fortunately two of those murderous empires are failing and in their death throes. US and UK (poor Theresa May – good luck with that Brexit thingy – she’s gone).Those are the most fun facts I could find.

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

I take no issue with the facts of the decline of US and UK (former) empires, but did I miss your opinion of which kind, benevolent overlords you feel it will be “fortunate” to have them replaced with?

The Chinese? Russians? Please do let us know.

#148 Conn Smythe on 06.15.18 at 9:49 am

In line with Garth’s sagacious advice today, I posit the life of the late great Jack Rabbit Johannsen who lived from 1875-1987…. Yes, the lifespan is correct. The NFB did a wonderful bio on him for his 100th birthday. Jack Rabbit lost it all in the crash of 29 at the age of 54 and then proceeded to live a simple life for the next 58 years keeping himself physically fit and designing cross country ski trails all over North America. He took his personal financial loss in stride, moved his family to a cabin in the Laurentians (now a museum) and in the words of the documentary, “his first 50 years were great, the next 50 were even better!”

https://www.nfb.ca/film/jack_rabbit/

#149 Stan Brooks on 06.15.18 at 9:58 am

#136 Stan Brook’s Psychiatrist on 06.15.18 at 8:43 am
#18 Penny Henny

“Holy Crap! Stan Brooks wrote a whole comment without slagging Canada. The meds must be working :)”

Yes Penny, Stanley is heavily medicated and we allow him 10 minutes of straight jacket free time to type his blog comments. He may even be taken out of the rubber room in the near future depending on his behaviour. The lobotomy is still scheduled for next Wednesday though…

Yep, you don’t need a brain in this place, you are told what to think and what is acceptable behavior anyway.

#150 Shawn Allen on 06.15.18 at 10:34 am

Who is Debt Owed To?

Let me try it this way:

“One man’s debt is another man’s wealth.”

Gender inclusiveness issues aside, does that cause anyone’s brain to go on tilt? Is it not true?

When I earlier wrote on several occasions:

“One man’s debt is another man’s savings”, a few of the regulars here went ballistic. Mostly they seemed to take issue with any implication that savings (bank deposits) came FIRST and then were loaned out. But as Blacksheep has correctly pointed out deposits are mostly created when banks make loans.

The way it works is: Joe has a second house fully paid for. Frank has a good job and wants to buy the house but has no cash. Joe, wisely is not going to let Frank pay him over 25 years. A bank steps in as an intermediary and loans Frank the money. The “cash” deposit for Frank is electronically created by setting up, with a debit entry a loan, to Frank owed to the bank and and creating a credit entry in Frank’s chequing account that is then “cash” or “money” owned by Frank. Frank writes a cheque to Joe who now has “cash” (or at least money) in his chequing account.

Now the bank must replace that deposit (in order not to drain its own small reserve of cash) that just got sent over to Frank’s bank by attracting another unless Frank is at the same bank but in any case the deposit will virtually always be held in some bank or other since it would be rare for it to come out as actual cash and not return to some bank or other.

Joe initially had wealth in the form of a paid for a house. Now Frank owes a loan and Joe owns a deposit. Frank’s loan is Joe’s wealth in the form of a deposit or call it savings.

So, in this example, One man’s debt is another man’s wealth (and savings since money in an account would be what we call savings). And that is always the case given that bank loans are offset by wealth owned by others in the form of mostly deposits but also other securities and investments on the right has side of a bank balance sheet. No?

#151 Kelowna on 06.15.18 at 10:39 am

One of your best messages yet Garth – Thank You!!!

#152 russell on 06.15.18 at 10:41 am

I don’t get the correlation here. He is thankful he found your blog because some how your rants saved him???? Shit all this time I have been praying to Jesus when Lord Garth was in country and just a post away… Indeed.

#153 Fake News Again on 06.15.18 at 10:42 am

Great job “censoring” all your posts today Garth. I am sure that the more than 50% of Govt workers and whiny lefties that visit are happy.

You are tedious and usually worthless. But keep trying. – Garth

#154 IHCTD9 on 06.15.18 at 10:50 am

#147 Conn Smythe on 06.15.18 at 9:49 am
In line with Garth’s sagacious advice today, I posit the life of the late great Jack Rabbit Johannsen who lived from 1875-1987…. Yes, the lifespan is correct. The NFB did a wonderful bio on him for his 100th birthday. Jack Rabbit lost it all in the crash of 29 at the age of 54 and then proceeded to live a simple life for the next 58 years keeping himself physically fit and designing cross country ski trails all over North America. He took his personal financial loss in stride, moved his family to a cabin in the Laurentians (now a museum) and in the words of the documentary, “his first 50 years were great, the next 50 were even better!”

https://www.nfb.ca/film/jack_rabbit/
______

Wow, same kind of thing Dick Proenneke did in Alaska. His cabin is also a museum now. Dick went all the way as far as isolation goes.

There are some great vids of Proenneke on YouTube building his cabin and showing his life that he took of himself. I believe they are under the title “Alone in the Wilderness”. Dick lived alone at Twin Lakes for 30+ years.

#155 David on 06.15.18 at 11:21 am

So sorry for your loss Garth, that is so tragic and profoundly sad.

What did I lose? – Garth

#156 waiting on the westcoast on 06.15.18 at 11:31 am

Uruguay wins right match… One – Nil. Here are the highlights to the game. After many great opportunities thwarted by the amazing play of the Egyptian goalie, they scored a goal in the dying minutes! Great game!

https://youtu.be/Wit_47uz2Tk

Another Uruguayan fun fact…

Uruguay is the least corrupt country in Latin America. It is ranked first in the region for democracy, peace (except for Suarez biting people), lack of corruption, quality of living, e-Government, freedom of press, size of the middle class, prosperity and security…
(Source: Transparency.org)

Ironically, Uruguay had a military junta in power for a number of years until 1985.

#157 Ubul on 06.15.18 at 11:49 am

#154 David on 06.15.18 at 11:21 am

So sorry for your loss Garth, that is so tragic and profoundly sad.

What did I lose? – Garth

—-

Must be time.

#158 Halifax Fish Fry on 06.15.18 at 12:06 pm

Finally Garth, a positive and uplifting rant, there’s hope for you yet – It must be all that East Coast air you’ve been consuming lately.

#159 Blacksheep on 06.15.18 at 12:37 pm

Conn # 143,

“The bank, through the miracle of fractional reserve banking will keep a small fraction of the deposit on hand as required by law and then loan out the rest. This starts a wonderful chain of events…”
——————————————

The Fractional Reserve system, does not apply in Canada.

#160 Heloguy on 06.15.18 at 12:40 pm

#151 russell on 06.15.18 at 10:41 am
I don’t get the correlation here. He is thankful he found your blog because some how your rants saved him???? Shit all this time I have been praying to Jesus when Lord Garth was in country and just a post away… Indeed.
———————————————————————
There lies your problem. Garth isn’t a fairy tale.

#161 Hippo on 06.15.18 at 1:39 pm

Good blog post today

#162 Steven Rowlandson on 06.15.18 at 1:54 pm

When facts and truth are disrespected in favour of what is popular or even a lie and held to be a principle to be defended no matter what then disaster can not be far away. When people lie they rob or murder some part of the world.

#163 IHCTD9 on 06.15.18 at 1:57 pm

I like frugality. Kind of a hobby for me. I’m not an extremist with that though.

I like value most of all these days. Maximum bang for the buck. That of course has me spending more to get way more, but that’s just how value works – there’s a lot more of it available where most folks aren’t able to shop.

However, every now and then, value, and frugality combine in an atomic release of BIG BANG for the buck TNT style.

I bought a beat up old hunk of equipment. This was a 50’s unit with little use, but lots of environmental damage due to age (rust/seized/rot). A new one of these things is 3000.00, I paid 50.00, I had it looking and running like new for another 150.00 or so…

KA-POW!

#164 Blacksheep on 06.15.18 at 1:58 pm

Shawn O the banks # 149,

“The (****) deposit for Frank is electronically created.”

“the deposit will virtually always be held in some bank or other since it would be rare for it to come out as actual cash”
————————–
Agreed…so far.
————————–
Lets try to break this down:

Joe is willing to sell his house for $ 500,000.

Franks agrees to buy Joe’s house for, $ 500.000.

Now a bank gets involved.

Lets pretend, this chartered bank has a total of $1,000,000 in funds / deposits, before Frank seeks any funding from said bank.

Frank and the bank together, creates new funds (deposit) to the amount of $ 500,000.

The chartered bank now, has $ 1,500,000 in funds / deposits, after Frank gives the bank his mortgage and creates a new deposit.

Frank then writes Joe, a cheque for $ 500,000, required to purchase Joe’s home .

The funds get electronically transferred from Frank’s bank account, to Joe’s bank account.

The whole transaction is complete, everyone’s happy…

The chartered bank now has, the same $ 1,000,000 in funds / deposits, AFTER Frank gave the bank his mortgage for $ 500,000 AND then they electronically transferred funds (from Franks newly created deposit) into Joe’s bank account for the purchase of his home.

But Shawn o the banks claims:

“Now the bank must replace that deposit (in order not to drain its own small reserve of cash) that just got sent over to Frank’s bank by attracting another”
—————————
Exactly why, must the bank “replace that deposit”, when funds sent to Joe to buy his home, were created (a new, additional deposit) by Frank and the bank, from nothing?

None of the banks original $ 1,000,000 in funds / deposits, was sent anywhere…

#165 Watchful In Victoria on 06.15.18 at 2:13 pm

“Plan For Tomorrow, But Live For Today”

-Watchful In Victoria

#166 IHCTD9 on 06.15.18 at 2:32 pm

#161 Steven Rowlandson on 06.15.18 at 1:54 pm

…When people lie they rob or murder some part of the world.

_________

“…These are the pale deaths which men miscall their lives.”

#167 ANON on 06.15.18 at 2:39 pm

There.

Cheers from the peanut gallery!

#168 Conn Smythe on 06.15.18 at 2:52 pm

#158 Blacksheep

“The Fractional Reserve system, does not apply in Canada.”

Puhleeze! You have to be kidding me! It is alive and well in Canada. You are completely clueless in making that absurd statement. Banks have been practicing fractional reserve banking since the goldsmiths discovered this wonderful alchemy in Holland in the 1600s. Banks keep only a fraction of deposits (in 1992 it was reduced to 0 for Canadian banks) on hand and loan out the money because they realize as did the goldsmiths, that depositors do not require all their funds. As I have said several times on this blog, read the late great John Kenneth Galbraith’s book The Age of Uncertainty or watch the video series on Utube. Specifically the chapter on how backs create money.

https://www.youtube.com/watch?v=McW2aFpJxsM&t=137s

http://www.economicreason.com/economiccrisisexplained/canadian-banking-system-exposed/

#169 conan on 06.15.18 at 2:55 pm

#155 waiting on the westcoast on 06.15.18 at 11:31 am

Egypt needed Mo Salah in the game. Not stuck on the bench with a bum shoulder.

Mo Salah = Wayne Gretzky.

#170 M on 06.15.18 at 3:21 pm


Almost without exception in life it is better to have money than to have stuff.

..hallellujaaa Saint Gartho !!!

#171 jess on 06.15.18 at 3:25 pm

speaking of prisoners being released ….what about this guy?

..”Ukrainian authorities are believed to have suggested various swap deals for Ukrainian prisoners in Russia, and it has also been floated that Sentsov could be swapped for the journalist Kirill Vyshinsky, who worked for Russian agency RIA Novosti in Ukraine and was arrested last month at his office on charges of treason.

https://www.theguardian.com/world/2018/jun/10/oleg-sentsov-family-ask-putin-to-free-him-before-world-cup

https://www.newyorker.com/news/our-columnists/counting-down-the-days-of-the-hunger-strike-by-oleg-sentsov-a-ukrainian-political-prisoner-held-in-russia

#172 Strange Day on 06.15.18 at 3:32 pm

I had to pay some bills on the computer with one of my accounts. I was a bit short of cash, so made the phone call to transfer some green from the investment account. The call was answered immediately which never happened before, so things must be very slow. Then he said the cash is in your account now done, and this never happened before either as always cleared at midnight for the following day including any Saturday.

#173 conan on 06.15.18 at 4:01 pm

#170 jess on 06.15.18 at 3:25 pm

Ukraine is broken and both sides have made errors in judgement. So, we need a political solution.

Time for peace!!

#174 Snoopy on 06.15.18 at 4:02 pm

#163 Blacksheep

I don’t think your math is correct. I might be wrong, and am happy to be corrected if i am, but I think your logic is flawed.

Your bank has $1M at the start. The two dudes agree to buy and sell a home for 500k.

The seller gets his 500k for the home. It has to come from the buyer or your bank. I’m assuming in your example it comes from the bank. So now the bank does not have $1m. It has 500k.

It also has a mortgage, in other words a promise to repay with interest, from the home purchaser for 500k. Those are not “funds or deposits.” It is a promise to repay with interest, which might be honoured or might not.

I know that this is not exactly the entire purpose of your post, but the idea that somehow money was “created” by the transaction is not accurate.

#175 Gerold on 06.15.18 at 4:30 pm

Great post, Garth and Dan!

I haven’t been owned by a house since 1980 after it took me three years to realize real estate is a waste of time and a money-pit. I’ve been happily renting ever since watching family, friends and colleagues getting sucked into the housing scam despite my advice to the contrary.

“You can’t take it with you,” I told them, but no one listened. Oh, Well!

What I cannot fathom is people also wanting a cottage (or camp as some call it.) One property is stupid, but two is utter insanity.

#176 Mean Gene on 06.15.18 at 4:37 pm

A well balanced life and portfolio.

#177 Fake News Again on 06.15.18 at 4:38 pm

Fake News Again on 06.15.18 at 10:42 am
Great job “censoring” all your posts today Garth. I am sure that the more than 50% of Govt workers and whiny lefties that visit are happy.

You are tedious and usually worthless. But keep trying. – Garth

_____

Yeah ….I know….it’s a tough job trying to get the real news out…..

#178 Blacksheep on 06.15.18 at 4:41 pm

Conn # 167,

Copy and pasted from the first / front page, about 3/4 of the way down on the site you provided. Next time, maybe actually read the site you linked you link to, before you display your ignorance again…

“However, unlike the US banks, where they must maintain a liquidity reserve requirement of 10%, Canadian banks have a 0% reserve requirement, thus affording them the ability to create a virtually unlimited amount of money “out of thin air””

http://www.economicreason.com/economiccrisisexplained/canadian-banking-system-exposed/

#179 Blacksheep on 06.15.18 at 4:45 pm

Snoopy # 173,

“I know that this is not exactly the entire purpose of your post, but the idea that somehow money was “created” by the transaction is not accurate.”
—————————–
The Bank of England, which is the GOLD standard for all things banking, disagrees with you:

“In the modern economy, most money takes the form of bank deposits. But how those bank deposits are created is oftenmisunderstood: the principal way is through commercial banks making loans.”

“Whenever a bank makes a loan, it simultaneously creates a matching deposit in the borrower’s bank account, thereby creating new money. The reality of how money is created today differs from the
description found in some economics textbooks:

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

• In normal times, the central bank does not fix the amount of money in circulation, nor is central bank money ‘multiplied up’ into more loans and deposits.”
—————————–
Holy shit…eh?

#180 Conn Smythe on 06.15.18 at 4:47 pm

#173 Snoopy

Please watch the late John Kenneth Galbraith’s video on how banks create money or read his excellent book which the video series is based on, The Age of Uncertainty.

https://www.youtube.com/watch?v=McW2aFpJxsM&t=359s

Also here is the scoop on how Canadian banks operate.

http://www.economicreason.com/economiccrisisexplained/canadian-banking-system-exposed/

Blacksheep is clueless…

#181 Blacksheep on 06.15.18 at 4:49 pm

Snoopy,

Here is the link to the 2014 BoE pdf.

It’s all on the very first page, so you only need to read for 30 seconds to find out, everything you thought you knew about bank money, is wrong…

http://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2014/money-creation-in-the-modern-economy.pdf

#182 Brian on 06.15.18 at 4:58 pm

Garth – You really are the leader of the band!

#183 Dedra Simpson on 06.15.18 at 4:59 pm

Bond yields crashing after the Fed raises rates. Long term rates in U.S. nearing 3.0%, were high as 3.2% and now all rates are dropping from highs.

This means that rates will become flat to inverted. It was a few years ago that the 30 year U.S. was high as 3.92% when short term rates were still near 0%.

Fed funds rate at 2.0% now and the U.S. 30 year is now close to 3.0%, 3.06% I believe. This is with higher inflation too.

Something is going on. Markets are signaling a false recovery and a downturn coming soon.

No they aren’t. – Garth

#184 Triplenet on 06.15.18 at 5:01 pm

Black sheep, Snoopy et AL
Why don’t you folks get a job at a major Canadian Bank head office – then you’ll KNOW how debits, credits and the overall banking system works.

#185 jess on 06.15.18 at 6:10 pm

New York A.G. Underwood Leads $100 Million 42-State Settlement With Citibank For Manipulating Interest Rate Benchmarks

To Date, State AGs Have Recovered $420 Million from USD LIBOR-Setting Panel Banks for Misconduct

New York Attorney General Barbara D. Underwood

today announced a $100 million settlement with Citibank for fraudulent conduct involving U.S. Dollar (USD) LIBOR, which is a benchmark interest rate that affects financial instruments worth trillions of dollars and has a widespread impact on global markets and consumers. The investigation was conducted by a working group of 42 state Attorneys General offices, led by New York.

“Our office has zero tolerance for fraudulent or manipulative conduct that undermines our financial markets,” said Attorney General Underwood. “Financial institutions have a basic responsibility to play by the rules – and we will continue to hold those accountable who don’t.”

Citibank made millions of dollars of gains from its “fraudulent conduct,” the attorneys general said.

https://ag.ny.gov/press-release/new-york-ag-underwood-leads-100-million-42-state-settlement-citibank-manipulating

=======
david and goliath
cimc vs cheetah chassis
https://www.cimcintermodalequipment.com/20-40-city-combo-tandem/

#186 jess on 06.15.18 at 6:32 pm

https://www.marketwatch.com/story/banks-have-been-fined-a-staggering-243-billion-since-the-financial-crisis-2018-02-20

=========

A landmark February 2015 ruling from the Supreme Court of Canada said lawyers are not required to report the transactions of their clients under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, a decision that effectively drew a dark curtain across many deals, including real estate transactions.

“This means that large cash transactions and suspicious transactions tied to a real estate transaction are not being reported to Fintrac by lawyers,” says an internal document obtained by CBC News under the Access to Information Act

http://www.cbc.ca/news/politics/fintrac-money-laundering-fines-penalties-court-federal-appeal-manulife-bank-1.4510370

#187 theoryAndPractice on 06.15.18 at 8:44 pm

THANK you, Garth !

#188 baloney Sandwitch on 06.16.18 at 12:54 pm

“debt is the enemy”
I would not put it in such stark terms, but with some caveats. Debt has some advantages if it is properly harnessed, i.e., 1) If it is used to buy productive assets below if Fair market value 2) it is tax deductible 3) You use insurance to protect the asset you are buying.

The problem arises when people don’t or cannot do the math and are in the grips of powerful emotions of fear and greed. They fail to diversify & don’t understand taxes – unfortunately that is most people.