The stressor

The plot thickens.

On Wednesday, before capitulating, the boss of the European Union called Trump’s trade tariffs stupid, which just stiffened the old man’s spine.  Meanwhile senior economic advisors to the Donald are telling reporters the guy’s on the verge of whacking $200 billion in car imports with a monumental 25% tariff. (Update: the White House has agreed on new auto tariffs on Euro cars while trade talks continue. Canada? No such deal.)

So angst in Oshawa. Windsor, Oakville, Brampton and Woodstock. Over 120,000 plump, blue-collar jobs in the factory heartland of the country could be offed if the White House goes through with this. And, sources say, it’s coming. His never-ending sex-Russia-Putin drama just makes it more likely Trump will pivot, change the channel and again ramp up the trade war. Better rush out and buy that souped-up Dodge Challenger now.

Well, what timing.

Central banks are tightening. Bond yields are upping. Inflation and stock markets are swelling. And credit is tightening. If Trump’s anti-Trudeau trade tempest tumbles into cars, hollowing out assembly plants and emptying area malls, why would real estate be immune? On what planet would any of this be remotely positive for the value of housing?

But, wait. There’s a more immediate problem. We’re being stressed to death.

Pissed since the first mortgage stress test was introduced a couple of years ago, and seriously incensed since it became universal this January, the country’s mortgage brokers are fighting back. They plopped a major report on politicians’ desks this week claiming 18% of all new buyers have been punted from the market by the 2% hurdle.

These young’uns who can’t actually afford real estate are being victimized, cry the brokers. It will destroy their lives since we all know renters are losers.

“More and more young people are getting used to the idea that they may never own a home and become permanent renters. With an increasing concern on income and wealth inequality, current policies that create a permanent generation of middle-class renters could increase wealth inequality as the ability to own homes and generate long-term equity becomes more and more difficult.”

And here’s the argument that if real estate values are forced lower by rising rates and heaving legislators, the economy itself will be tattered:

“Policies which cause house prices to fall will reduce home equity and this in turn would impair consumer confidence, resulting in reduced spending, slower economic growth and diminished job creation.”

But amid the BS there are some gems of wisdom. Here’s one (from real estate economist Will Dunning) that could have been lifted from this pathetic blog: “While we would normally expect falling prices to generate an increase in demand in the housing market, we have seen historically that this can actually reduce demand. Significant price drops put into question the reliability of the market as a whole, causing prospective buyers to fear that values will fall further.”

He’s right. Human nature is like that. People lust after assets spiralling higher in price and recoil from those in freefall. They sell into storms, maximizing losses, thinking values might go to zero. They buy into frenzies, paying a big premium, believing prices will rise forever.

So the sum of all mortgage broker nightmares is that the stress test, combined with Trump, sprinkled with rising interest rates and peppered with job loss will create a negative feedback loop. Sales drop, making buyers wonder what’s going on. Prices decline, causing people to wait for deeper discounts. Then the buying stops since nobody wants to pay too much for an asset they fear might tank. Risk, after all, trumps greed. Among emotions, fear reigns.

The brokers say about 100,000 Canadians have been prevented from buying a home because of the 2% stress test. Without the test in place, tens of thousands of sales would have happened. Their survey also discovered more than half (54%) of those wanting to buy in the next five years expect “significant negative impacts” from the new measure.

So here we are. Sales have fallen nationally 13% year/year. Many markets which lack the momentum and population base of 6ix or YVR are nearing a state of poochedness. We’re certainly closer to a sales-price spiral than at any time since 2009. Canadian real estate peaked in early 2017, yet governments failed to see how it was rolling. In BC the actions of Comrade Premier Horgan to cool speculation and improve affordability pose a huge threat to the equity of the entire house-horny, delusional population. If the market cracks and valuations plunge, there’ll be no hungry horde of buyers moving in. Mortgage brokers fear the drop could be epic.

By the way, Loblaws just said its grocery prices will be rising, thanks to the trade war. Bananas up. Bungalows down. It will be a riveting autumn.

158 comments ↓

#1 HT on 07.25.18 at 5:45 pm

If you’re not first, you’re last!!

#2 Zapstrap on 07.25.18 at 5:46 pm

Holy smokes … that reminds me … I gotta use up my Loblaw cards … better do it before I get less for their money.

#3 dakkie on 07.25.18 at 5:48 pm

Housing Prices Hit “Breaking Point” Leading To Collapse In Demand

http://www.investmentwatchblog.com/housing-prices-hit-breaking-point-leading-to-collapse-in-demand/

#4 Sebee on 07.25.18 at 5:50 pm

I can’t own a house? How unfair! How outrageous!

We’re all aware that the Queen owns all the land in Canada, right? And she ain’t selling. Oh, you knew? I was just checking.

#5 Reality is stark on 07.25.18 at 6:00 pm

As Saddam would say, “This will be the mother of all pooches”.
Those who bought a year and a half ago will die on the FOMO cross.
Those who lent the money can kiss their retirement goodbye.
The divorce and bankruptcy lawyers are already raking it in.
Too bad so sad.
Get a good security system.

#6 Nonplused on 07.25.18 at 6:08 pm

Equity is a funny thing, both in the way it appears out of nowhere for everybody based on the rising price of those homes that are changing hands, and the way it disappears when the price of the homes that are selling goes down.

Stocks work the same way. Now you see it, now you don’t. That’s why you buy the dividend. That’s also why you buy a house, “owner’s equivalent rent” but as Garth has pointed out so many times the “owner’s equivalent rent” at this point is usually not a good deal compared to renting. Although I think it is not as bad as it looks because you don’t have to pay income tax on the money you don’t need to pay the rent you don’t have. But that only works if you don’t have a mortgage because of course you have to pay income tax on the money you need to pay that. And either way you have to pay property taxes which only ever go up. (Yes, you have to pay property taxes when you rent, it’s just baked into the rent or at least it should be in a world that makes sense. Landlords may be subsidizing renters right now but that’s just because the world is upside down. In a normal world rent would cover all costs and leave a reasonable return for the landlord. Been a while since that’s been the case though. Pretty much all the profit in real estate has been through appreciation for at least 10 years now.)

#7 Dave on 07.25.18 at 6:10 pm

With this much downward pressure, should surely cause a major market crash???
Metro Vancouver had increases of $300k per year, the downward spiral should be out of control.
Everything is in place and the bad movie is playing out.

#8 OSFI Stress on 07.25.18 at 6:12 pm

If the real estate and development industry has been able to craft the narrative and shape government policy for 15 years, why would you not expect them to have an impact on the stress test?

While the OSFI is independent, would there not be some soft influence to be brought to bear by that industry, especially when housing constitutes such a significant part of our GDP?

This little decline in sales could be turned around overnight if the stress test is gone and cheap and easy credit flows again.

#9 Stan Brooks on 07.25.18 at 6:13 pm

https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1410002301

There are 1.7 million jobs in manufacturing in Canada, compared to 14,540,500 in the service sector.

Guess what the impact from losing 120 k manufacturing jobs will be on the overall Canadian economy?

At least 600-700 k jobs gone in Ontario alone.

That is 10 % of the employed. Unemployment jumping to 17 % + in a very short time frame.

Note that this is independent from the housing market crash that is boiling and could cause itself that number of lost jobs to double.

The great depression could prove pretty soon to be a walk in the park.

Note that we have no competitive industries internationally, besides the resource sector that employs very limited number of workers.

Walk around and see yourself with your own eyes what is left form the Canadian industries/economy besides the FIRE and the automotive sector?

Only the resource sector, that is wright.

Finalizing my last tax payments at this place, RRSP withdrawals as non resident. F.ck that 25 % withdrawal rate, at least I will get something out of this black hole sucking everything in/out from your pocket/wallet.

#10 cmon man on 07.25.18 at 6:14 pm

bitcoin to the moon

#11 FOUR FINGERS WATSON on 07.25.18 at 6:15 pm

Stocks are higher and the Loonie is spiking after Bloomberg reports that US Senators introduce a bipartisan bill to delay auto tariffs.

As Bloomberg reports, Democratic Sen. Doug Jones and Republican Lamar Alexander today introduced the “Automotive Jobs Act of 2018,” a bipartisan bill that would delay President Trump’s recently proposed 25% tariff on imported cars, trucks and auto parts, according to e-mailed statement.

Legislation would require International Trade Commission study of U.S. auto industry, a report to Congress with policy recommendations and would block such tariffs from being applied until that report is issued.

#12 Reynolds531 on 07.25.18 at 6:18 pm

Does nobody in Washington think a five thousand km border with a country in the same shape as Venezuela would be a bad idea? Worst case scenario and half the country walks over the border and “blends in”.

#13 MSM-Free Zone on 07.25.18 at 6:18 pm

“….the country’s mortgage brokers are fighting back. They plopped a major report on politicians’ desks this week claiming 18% of all new buyers have been punted from the market by the 2% hurdle…..”
_________________________________

In other words, policy makers are accomplishing exactly what they set out to do; prevent illiterate Canadian home buyers from becoming over-leveraged and blowing their illiterate financial brains out.

Mortgage Professionals Canada. No conflict of interest there. Never underestimate the power of self interested lobbyists to undermine the best interest of Canadians.

#14 Terry on 07.25.18 at 6:20 pm

“Meanwhile senior economic advisors to the Donald are telling reporters the guy’s on the verge of whacking $200 billion in car imports with a monumental 25% tariff.”

This was already a done deal after Trudeau insulted Mr. Trump after the G7 summit. Trudeau never took the win……….he opened his mouth and spoke! Put the blame where it belongs once the 25% Tariffs are applied. It’s Trudeau incompetence NOT Trump that will destroy Canada’s economy.

TOLD YA SO!

#15 Hababa on 07.25.18 at 6:20 pm

Trudeau and the Canadian media especially CBC who everyday trash trump and are full of lies! 25% tariff bring it on to teach everyone a lesson in this country!!!

#16 3s on 07.25.18 at 6:21 pm

In Australia when all the car manufacturing shut down it was a simple matter of stimulating real estate sales to bridge the economic gap, something Canadians should be quite good at and understand well. QED – everything is rainbows and ponies!

#17 Darts on 07.25.18 at 6:22 pm

I always thought auto tarifs for Canada woudn’t happen…….. Not so sure now. Facebook lost 20% of its value in 90 minutes this evening. Most popular stock with hedge funds and a lot of ETFs……………
Does this change your no recession call? (At least for Canada) What the hell does one do with their money right now?

#18 Deplorable Dude on 07.25.18 at 6:25 pm

You should have waited until Trump’s press conference with Junker….

Europe bends the knee to Trump…..

https://www.reuters.com/article/us-usa-trade-eu-concessions/trump-secures-concessions-from-eu-to-avoid-trade-war-wall-street-journal-idUSKBN1KF2T7?feedType=RSS&feedName=topNews&utm_medium=Social&utm_source=twitter

This will put severe pressure on China to bow to US trade demands as it needs its supply of US soy beans to feed it’s population….

#19 Werd on 07.25.18 at 6:25 pm

The loss of the auto industry, would be one of the most devastating, economic blows to Ontario. Some families will be devastated, and the towns where the plants reside, will be become ghost towns.

#20 vanisle wally on 07.25.18 at 6:26 pm

Mr. T: “lawyer-turned-stooge” is surely redundant eh…

#21 Smartalox on 07.25.18 at 6:28 pm

A few riffs on today’s post:

“More and more young people are getting used to the idea that they may never own a home and become permanent renters. With an increasing concern on income and wealth inequality, current policies that create a permanent generation of middle-class renters could increase wealth inequality as the ability to own homes and generate long-term equity becomes more and more difficult.”

Hah! They tried to pull a fast one here: wealth inequality is often confused with ‘income inequality’ which is a political hot button. Why someone whose only professional acumen is the ability to fill out forms should think themselves entitled to earn as much as someone who has an advanced degree is beyond me, but it’s become a bit of a Pavlovian bell for populist politicians, so surely it will get some attention.

But citing ‘wealth inequality’ in this study actually harms their point: wealth implies the balance of assets and debts, where anyone with a big house – and bigger mortgage (i.e. debt) is hardly wealthy, though they may feel that way.

And why not? Convincing people to take on more debt than they can afford is how mortgage brokers get PAID.

Conflict of interest much? Duh.

The other gem in this posting:

The brokers say about 100,000 Canadians have been prevented from buying a home because of the 2% stress test. Without the test in place, tens of thousands of sales would have happened. Their survey also discovered more than half (54%) of those wanting to buy in the next five years expect “significant negative impacts” from the new measure.

I count myself amongst that 54%, though I should add that when I think of what the ‘significant impacts’ will be, I smile, and rub my hands my hands together with glee.

Within the next 5 years, I plan to buy a (greatly devalued) house. I also expect that I’ll be able to have my RRSP ‘lend’ me the money for the mortgage, given my advanced wealth, and absence of any mortgage or other outstanding debt.

#NoBroker

#22 Smartalox on 07.25.18 at 6:37 pm

More trouble for flippers and speccers (and mortgage brokers, ultimately):

https://vancouversun.com/business/real-estate/b-c-property-buyers-must-give-more-details-in-measure-aimed-at-tax-evasion

Starting Sept. 17, the new property transfer tax will require people to report additional information, including their name, citizenship and social insurance number, if they purchase through a corporation or trust.

Kind of boggling that this wasn’t a requirement before, but nice to see the loopholes being re-fashioned into nooses, somewhat.

#23 AGuyInVancouver on 07.25.18 at 6:37 pm

As soon as Canada allowed in masses of foreign carmakers, building cars in Canada no longer made sense. Why make them here when so many other jurisdictions can do it cheaper? Ontario was foolish to enshrine auto production as some sort of Rubicon, they should have been making plans for the demise of the auto assembly industry.

#24 S.Bby on 07.25.18 at 6:38 pm

Trump won’t make it until the next election. He will be impeached or more likely, resign. There are too many skeletons rattling around in his closet and someone is just waiting to open that door.

#25 SoggyShorts on 07.25.18 at 6:38 pm

#77 MF on 07.25.18 at 7:09 am
#64 SoggyShorts on 07.24.18 at 11:07 pm

I did a Master’s program in the sciences so I am familiar with the greenhouse effect thanks.

-As you get further up the academic latter, and start to delve really deep in the scientific literature with a skeptical mind
************************
Admittedly my bias comes from discussions with my brother who got his masters here:
https://www.lunduniversity.lu.se/lubas/i-uoh-lu-XAESS
Other than getting his doctorate and becoming a proff there(which he turned down), I’m not sure how much further one could go up the academic ladder.

I’ve heard all of the “natural cycle” arguments, but the timeline seems to be very different since humans got involved.

As I see it the climate is changing really fast, and either we are partly responsible and can make a significant difference that may save many lives or we can’t and we are totally screwed.

As Canadians we have a comparatively small impact regardless. Maybe we could lead by example, or become a leader in green energy technologies, but ultimately if we can’t even agree on whether human impact matters, none of that will happen.

#26 kia drivr on 07.25.18 at 6:39 pm

“imports with a monumental 25% tariff.”

Just to get some overreaction then settle lower.

#27 Leo Trollstoy on 07.25.18 at 6:42 pm

Should I sell my Toronto condos for $800+/sqft or hold them?

Vote now!

Completely democratic

#28 Andrewski on 07.25.18 at 6:45 pm

Meanwhile, on the absurd side of (Oakville) real estate offerings…

https://sothebysrealty.ca/en/property/ontario/greater-toronto-area-real-estate/oakville/327880/

#29 Tax Writeoff on 07.25.18 at 6:49 pm

Here’s one for the Millenial vote; If we all can’t afford to own our own place and there is no pensions or chance to save money for retirement, then they should allow rent to be a tax writeoff. That will give renters an equal chance and give the CRA the opportunity to find all the landlords not declaring rent. Would the CRA be able to cross check those two things, I dunno.

#30 Smartalox on 07.25.18 at 6:53 pm

@S.Bby:

You may be right, but your reasoning might be wrong.

Trump apparently threw a fit on his recent trip to Europe, when he learned that his wife’s in-flight TV was tuned to CNN (and not Fox News). Someone that high strung is likely a good candidate for a stroke, or a heart attack – and if you saw his speech to the Veterans of Foreign Wars last night, in which Trump tried to assure the crowd that he alone was the ‘source of truth’ and that media like CNN ‘should be ignored’ – Trump looks like he’s gained quite a bit of weight recently.

I believe that stroke, heart attack, or ‘Novichok milkshake’ are all more probable than resignation or impeachment at this point.

#31 Deplorable Dude on 07.25.18 at 7:04 pm

#23 SBay….Trump won’t make it until the next election. He will be impeached or more likely, resign. There are too many skeletons rattling around in his closet and someone is just waiting to open that door.

———-

Hahahahahahaha…….are you fricking kidding me…..

Trump is the most vetted President in History…

He literally had the FBI/DOJ spying on him during his Presidential campaign. The Billion dollar Clinton machine against him, and 99.9% of the MSM against him….

…..and the best they’ve got is a crude tape of him from over a decade ago…..

If there was anything on him you’d know it by now….Trump is squeaky clean politically.

The tape was recorded in 2016, was it not? – Garth

#32 akashic record on 07.25.18 at 7:07 pm

“FB is now down over 20% from its closing highs, losing over $130 billion in market value and erasing all of post-Q1 earnings gains.”

Real drama vs fake “sex-Russia-Putin drama”

#33 Fish on 07.25.18 at 7:08 pm

talking about bananas, yes they will be begging to take their headaches away

Time will tell

#34 Newcomer on 07.25.18 at 7:12 pm

That’s the problem with people. They are smart enough to know that paying more for bananas is a bad thing but they imagine that paying more for housing is a good thing. What’s worse, if you realize that you’ve been overpaying for bananas, you can mend your ways right quick, but those who have overpaid for housing are stuck.

#35 Yanniel on 07.25.18 at 7:20 pm

What am I missing?

“Trump, Juncker Announce Deal Pulling Back From U.S.-EU Trade War” https://www.bloomberg.com/politics/articles/2018-07-25/trump-juncker-reach-deal-to-ease-trade-tensions-dow-jones-says-jk1jtfs8

Come back tomorrow. – Garth

#36 BobC on 07.25.18 at 7:23 pm

Nobody down here cares what Trump did ten years ago. We hired him to do a job and he’s doing it in spite of the obstacles.

https://abcnews.go.com/Politics/europeans-offer-trump-options-defuse-trade-war/story?id=56794938

Winning

#37 For those about to flop... on 07.25.18 at 7:24 pm

Recent sale report/Realtor assistance needed.

I always thought that Richmond was rotten to the core, but as things wear on maybe Surrey is the sleeping giant that can take things to the next level if sentiment changes and real estate becomes toxic.

This house in Surrey sold 8 days ago.

Picked up for 1.3 August 2016 in an area of Surrey that most people would consider nice to best of my knowledge.

I renovated a few houses over that way a couple of years ago and I was the only riff-raff in the neighbourhood.

Thanks go to the person that put out the nice side table out front of their house ,I still use it to this day.

These guys were asking 1.39 at the time of sale.

They probably wish they were the McBridesmaids watching on ,but no they were the McBride…

M44BC

3033 Mcbride Avenue, Surrey paid 1.3 August 2016 ass 1.2

Mar 16:$1,499,000
Apr 27: $1,399,000
Change: – 100000.00 -7%

https://www.zolo.ca/surrey-real-estate/3033-mcbride-avenue

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

Feel free to make a donation.

Flop For Fox Fund…

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

#38 Honey Dripper on 07.25.18 at 7:25 pm

Can’t help but wonder how all this will affect our election next year. We need a NAFTA deal now.

#39 Dolce Vita on 07.25.18 at 7:26 pm

Garth:

I told you so and again:

By 4th Qtr 2018, the largest RE asset devaluation in Canadian history begins in earnest. The bigger the local bubble, the larger the devaluation.

Hand in hand with that: Recession.
– – – – – – – – – – – – – – – – – – – – –

This external economic shock will have been brought to you by: Trump.

There is no way a $1.5T economy w/64% of GDP based on trade (Canada) wins in a Trade War OR has its way in negotiations with a $19T economy w/27% of GDP based on Trade (USA).

And Trudeau thought that petty “targeted” tariffs which included Kentucky made playing cards was going to injure the US economy resulting in a MAGA insurrection against Trump.

If those auto tariffs come to pass, then what a COLOSSOL miscalculation by Trudeau et. al.

Hope this all goes away with Canada somehow managing to salvage NAFTA.

Not a recession fanboy as people suffer horribly during these times.

#40 Money Laundering Investigation Part 2 - The RE Sectcor of BC on 07.25.18 at 7:28 pm

B.C. increases property buyers’ disclosure in measure aimed at tax evasion.

https://www.bnnbloomberg.ca/b-c-increases-property-buyers-disclosure-in-measure-aimed-at-tax-evasion-1.1113888#_gus&_gucid=&_gup=twitter&_gsc=gCpNWeN

Property seizures on the table. Investigations spanning through Vicotria, Nanaimo and Kelowna.

#41 Headhunter on 07.25.18 at 7:28 pm

Good times ahead! Most Trump haters here can’t “see the forest for the tree’s” His mandate from the only ones who count.. his voters was to MAGA and bring the jobs back home. He is doing that in spades. Landslide in 2020. People vote with their wallets.

We will re-tool and build shit for the new “space force” If you have learned nothin from Trump he says what he means

#42 akashic record on 07.25.18 at 7:29 pm

#24 SoggyShorts on 07.25.18 at 6:38 pm

As Canadians we have a comparatively small impact regardless. Maybe we could lead by example, or become a leader in green energy technologies, but ultimately if we can’t even agree on whether human impact matters, none of that will happen.

===

Canada’s most valuable natural resource is water.

Canada used to be leader in preserving nature for future generations.

Natives not only knew how to do it, but also exercised it for thousands of years with outstanding track record.

Water and the wisdom of natives about all form of spirits living together as equal participants of nature, are by far the most valuable gifts to the world that Canada can offer.

#43 Hang it or bang it on 07.25.18 at 7:29 pm

In BC you just hang it. You hang your for sale sign in the front yard and watch it dangle in the wind these days feeling lonely.

Where did the buyers go?

#44 Ex-Cowtown on 07.25.18 at 7:32 pm

Playboy bunnies…. starlets….harlots…. who cares? Obama’s sex life is his own issue.

Same with Kennedy….

Same with Trump…..

No one cares.

Campaign finance watchdogs apparently do. – Garth

#45 MSM-Free Zone on 07.25.18 at 7:34 pm

#15 Hababa on 07.25.18 at 6:20 pm
“……Trudeau and the Canadian media especially CBC who everyday trash trump and are full of lies! 25% tariff bring it on to teach everyone a lesson in this country!!!….”
__________________________________

Better check your banjo strings. I think they’re out of tune.

#46 WARNING: Do Not Share With “Non-Cleared” Persons on 07.25.18 at 7:36 pm

There is an active investigation that has frozen 435M in BC real estate assets.

#47 MF on 07.25.18 at 7:38 pm

#24 SoggyShorts on 07.25.18 at 6:38 pm

We ultimately agree then. I also believe green technology is the only way forward. It’s the only way to wean ourselves off of fossil fuels and oil, which are a finite resource. As the green industry expands, jobs will be created as well.

You are also correct about Canada’s small footprint. Leading by example is one thing, but nothing will be accomplished if China, India, and the other major polluters aren’t paying any attention.

MF

#48 theoryAndPractice on 07.25.18 at 7:38 pm

Stress test will only cause a delay (not significant though). Whether it exists or not, the result will be the same. They know it, but until then a few extra bucks would not be bad, right ?

As blog picture tells, many if not all expects easy pill solution to anything.

Whether it is money or calories, it is just math :

The difference between ( what_you_get – what_you_spend ) comes back and gets you in many ways.

#49 Victor V on 07.25.18 at 7:40 pm

https://themash.ca/realestategossip/2018/6/price-drop-3-15-gregory-avenue-rosedale-avenue

Rosedale mansion asking price drops from original list of $5,795,000 down to $4,995,000 then down again to $4,695,000 then another drop to $3,998,000.

More drops to come…

#50 crowdedelevatorfartz on 07.25.18 at 7:42 pm

@#18 Werd
“The loss of the xxxx industry, would be one of the most devastating, economic blows to xxxxx. Some families will be devastated, and the towns where the plants reside, will be become ghost towns.”

++++++

Trade Tariff’s

switch out “auto” for “fisheries” and “Ontario” for “maritimes” and you get the idea of what’s coming………

#51 Dolce Vita on 07.25.18 at 7:42 pm

#11 FOUR FINGERS WATSON

Recall, Trump has:

VETO power.

Something you forgot to mention that was also in that Bloomberg article.

#52 tccontrarian on 07.25.18 at 7:50 pm

“He’s right. Human nature is like that. People lust after assets spiralling higher in price and recoil from those in freefall. They sell into storms, maximizing losses, thinking values might go to zero. They buy into frenzies, paying a big premium, believing prices will rise forever.” GT
————————————————–

Unless…you’re a ‘contrarian’, like me! Or a non-human, like…me??

TCC

#53 akashic record on 07.25.18 at 7:51 pm

“The sex-Russia-Putin drama just makes it more likely Trump will pivot, change the channel and ramp up the trade war.”

On the other hand, the news that matter:

We Have A Deal: Trump And Juncker Agree To Avert A Trade War

https://www.zerohedge.com/news/2018-07-25/watch-live-trump-secures-concessions-juncker-avoid-trade-war-press-conference

#54 Dolce Vita on 07.25.18 at 8:07 pm

Told you so Garth:

Largest RE asset devaluation in Canadian history (the larger the bubble, the bigger the fall, after all, RE is local) and with that a hand in hand Recession starting in earnest by 4th Qtr 2018.

This time the external economic shock goes by a surname:

Trump.

The Canadian Government acted stupidly in negotiations with the US and imposing tit for tat, petty “targeted” tariffs on them thinking that would be tinder wood for a MAGA insurrection.

The tail wagging the dog, biting the hand that feeds you.

A COLOSSAL miscalculation if the auto tariffs go thru.

Time for TRUST FUND BOI to grovel, hat in hand, uttering Mea Culpas until the cows come in and do whatever it takes to salvage NAFTA and the jobs, livelihoods and well being of hard working Canadians.

He owes them that.

#55 The Awakened One on 07.25.18 at 8:12 pm

Hello Garth,

I remember 1-2 years back, your post that included bananas photo did cause quite a scandal in comment sections.

You said you’ll never mention about bananas again…. This sacred fruit popped up again in this post ?! :O)

#56 Dolce Vita on 07.25.18 at 8:14 pm

Sorry I posted same thing twice Garth.

I am just upset beyond words what you said Trump is planning to do to Canada with the auto tariffs.

Besides myself on this.

Like anybody else, lashing out and incensed at the thought of what could happen to the Canadian economy because of 1 person S. of Border.

#57 Alberta Ed on 07.25.18 at 8:16 pm

The mortgage brokers’ spirit of altruism and public service is inspirational. A crocodile could shed no larger tears.

#58 Blacksheep on 07.25.18 at 8:27 pm

Was listening to Andrew Weaver on the CBC.

He was complaining that the NDP is passing legislation to force ‘beneficial owners’ of property held in trusts, inside corps, to attach their names to any RE transaction, even when it does not trigger the land transfer tax, but yet not actually tax them for it.

The NDP optics look good for the little people, but in reality, its a toothless action that will change nothing.

But this was the important part of the interview where he channels, Christy Baby:

He went on to warn that we, (him & the gov) don’t wan’t to cause a significant RE price correction, saying a 25-30 % price reduction would cause problems via negative equity for many and throw the economy into sevre trouble. (ad libbing)

The takeaway is: The system wants and has, stopped the rapid RE price appreciation, but those expecting much more than the softening that’s already occuring are going to be disappointed.

Why?

70% of the population owns RE and they tend to vote.

Keeping this, majority of voters happy and in the black is in Weavers best interest, as he just openly admitted on the CBC.

#59 jess on 07.25.18 at 8:28 pm

lookbacK:

Optimism Turned to Panic

Moody’s Bullish 2005 Report on Structured Financial Operating Companies

Moody’s has developed a rating methodology for Structured Financial Operating Companies (SFOCs). Moody’s has recognized the similarities in which various forms of vehicle operate and has developed a new classification and ratings process for this group of structured finance entities. SFOCs are operating companies that apply detailed, pre-determined parameters to define and restrict their business activities and operations. The SFOC designation applies to a number of different structures including:

Derivative Product Companies (DPCs)
Collateralised Swap Programs (CSPs)
Credit Derivative Vehicles (CDVs)
Structured Investment Vehicles (SIVs)
Structured Lending Vehicles (SLVs)
Interest Rate Arbitrage Vehicles (IRAVs)
Issuers of Guaranteed Investment Contracts (GIC Issuers).

Moody’s Special Report, issued on April 14, 2005 states: “Under this classification Moody’s has assigned ratings to more than 50 of these vehicles. To date, there have been no rating downgrades on any of their publicly-rated issued debt, which testifies to the resilience and strength of the structures of these vehicles and how robust they are to market disruptions. This view on the unification of the general rating approach for these vehicle types provides a basis for the continual growth within this market as the markets evolve and converge as well as providing a basis for the introduction of new or hybrid vehicle types.”

http://henryckliu.com/page148.html

strong dollar policy
..”During the Clinton administration, Robert Rubin, widely regarded as the father of the strong-dollar policy, declared his aim of a strong dollar soon after his appointment to the Treasury in January 1995. Rubin understood that a capital account surplus is the answer for a current account deficit, based on economics worked out by Martin Fieldstein in the Ronald Reagan administration. A strong dollar is key to this capital account surplus/current account deficit strategy, which has come to be known as dollar hegemony.

The policy exploits the instinctive penchant of other countries to make export gains from an undervalued currency. The United States would open its huge market to the exporting economies of the world and force them to finance the resultant US trade deficit with capital inflows from the exporting economies. A strong dollar ensures the appeal of US companies to overseas investors and thus aligning global support for a strong dollar. Dollar hegemony forces the central banks of US trading partners to hold their dollar trade surplus in US bonds and assets, if they want protection from speculative attacks on their currencies. A fall in domestic currency will cause domestic interest rates to rise, and make dollar loans more expensive to service and amortize.”

#60 Long-Time Lurker on 07.25.18 at 8:29 pm

Here’s a better UFO clip for you, Smokey. 13 sec: drone?

https://www.youtube.com/watch?v=vmxINoqCqO0&feature=youtu.be

So, I guess Mueller’s running a really tight operation: He finds no evidence of Trump-Russia collusion after over a year then overturns lawyer-client privilege to find some possible dirt on Trump with Karen McDougal (and Stormy Daniels) then leaks the audiotape to CNN. Trump-Russia collusion investigation? Top FBI Director work there, Mueller.

#61 Dolce Vita on 07.25.18 at 8:32 pm

#52 akashic record

To be honest, ZeroHedge not my go-to source for authoritative news – definitely a go-to for conspiracy theories.

Juncker well known here in Europe to have a serious drinking problem. Hopefully, what he agreed to, was said when he was sober.

I suspect he got his marching orders from Frau Merkel trying to protect her tariff skirting, via NAFTA, German car assembly in Mexico.

The Harley people in Italia will be happy (Harley’s very popular in the land of Piaggio, Ducati and Vespa).

“Removing eliminating all tariffs, trade barriers and subsidies related to non-auto industrial goods”, good luck with that. Watch the French have a kanipshit over that one (e.g., heavily subsidized agriculture).

If the EU can cave to Trump on his “fair trade” agenda, Canada ought to do the same on NAFTA for the sake of Canadian workers.

#62 Tony on 07.25.18 at 8:34 pm

The only buyers are speculators and if they see the U.S. housing market and the Australian housing market going downward no one is going to buy a house in Canada.

#63 FOUR FINGERS WATSON on 07.25.18 at 8:41 pm

#50 Dolce Vita on 07.25.18 at 7:42 pm
#11 FOUR FINGERS WATSON

Recall, Trump has:

VETO power.

Something you forgot to mention that was also in that Bloomberg article.
………………………..

Very true. But the Senate can override his veto with a two thirds majority.

#64 Andrewt on 07.25.18 at 8:42 pm

#17 Deplorable Dude on 07.25.18 at 6:25 pm
You should have waited until Trump’s press conference with Junker….

Europe bends the knee to Trump…..

https://www.reuters.com/article/us-usa-trade-eu-concessions/trump-secures-concessions-from-eu-to-avoid-trade-war-wall-street-journal-idUSKBN1KF2T7?feedType=RSS&feedName=topNews&utm_medium=Social&utm_source=twitter

This will put severe pressure on China to bow to US trade demands as it needs its supply of US soy beans to feed it’s population….

—-
Dude, have you been paying attention at all?
Always wait at least 48 hours before taking anything Trump says seriously, because he always reneges.

#65 45north on 07.25.18 at 8:44 pm

Terry: “Meanwhile senior economic advisors to the Donald are telling reporters the guy’s on the verge of whacking $200 billion in car imports with a monumental 25% tariff.”

This was already a done deal after Trudeau insulted Trump after the G7 summit. Trudeau didn’t take the win

Canada was the host country. At the end of the summit, Trudeau should have just thanked everyone for coming. By publicly criticizing Trump at that moment he showed bad faith.

The damage for Canada could be huge.

#66 Tony on 07.25.18 at 8:48 pm

Re: #26 Leo Trollstoy on 07.25.18 at 6:42 pm

If the yuan devalues vis-a-vis the Canadian dollar you want to unload them. Remember mass emigration into Canada drives down wages in this country.

#67 Ace Goodheart on 07.25.18 at 8:48 pm

Re: negative feedback loop – this is actually not the correct way to describe what you are trying to say.

A negative feed back loop is input-neutral. An example of such a loop is the thermostat in your house. If it gets too hot, the thermostat inputs negative feedback, shutting off the furnace. If it gets too cold, again negative feedback is inputted, turning on the heat and warming things up again.

The opposite is a positive feedback loop. These are the dangerous things that no one wants. For example, a house fire. As the fire progresses, it continues to find fuel (or positive feedback). It will grow in size as long as more fuel is found. These sorts of loops tend to get out of control and are very dangerous.

An economy is governed properly by negative feedback loops. For example, if the economy over heats and inflation sets in, Central banks raise interest rates (negative feedback) thus cooling things down and slowing inflation rates. If things get too slow, the bankers will lower rates, thus causing economic growth.

Rule of thumb is, unless you are blowing things up or you want chaos and destruction, positive feedback loops are bad, negative feedback loops are good. Any properly managed situation has a very well thought out and well instituted negative feedback loop in place, to stabilize things and keep everything moderated.

Trumpster: We are kind o’ chewed on this. Snail bait really. Tied to a failed military industrial complex that is rapidly collapsing and taking the USA and most of North America with it. Consider it a black hole. Nothing escapes. Not even a Russian.

When the entire world relies on one country for its economic prosperity, then things are pretty much done.

Problem is, the entire world does not rely on one country. We do, and Western Europe does. China does not (they just pull the strings, and they are pulling). Russia does not. South East Asia does not. Even the Australians (drunken louts that they are) have noticed the problem.

Up in Canada, we just figure that we can try not to offend anyone and keep selling to a Country that isn’t buyin’.

The great experiment of borrowing on future military conquest is done for. It failed. When it came down to it, killing and maiming for economic prosperity was not something people could swallow. So now the USA is reduced to contracting its interests, inward focusing and becoming the equivalent of a failed Juche state, run by a madman and intent on collapsing itself back into the 1900s.

They are going to trash themselves royally. The damage madman Trump is about to do to his country (or second country, other than Russia) is epic. And no one cares.

I guess the way for Canada to figure this out is to look at countries who run their economies based on shipping exports. South Korea is an excellent example. Fully land locked, with no border that can be crossed, occupying the bottom half of a peninsula that is blocked by a demilitarized zone to the North with no land route anywhere, they have a vibrant shipping industry that supports their domestic manufacturing.

Canada faces the same situation. We are about to be land locked. Pretty soon we won’t be able to trade with the USA, and our goods will be blocked from flowing through the USA to South and Central America.

The only difference between us and South Korea will be winter, which freezes up our Eastern shipping routes from December to April.

Fortunately, we have global warming. A few years from now, the St. Lawrence will be navigable 12 months of the year and will probably be one of the busiest shipping routes in the world.

Toronto will be the trade capital of Canada, and all of our manufactured goods will be shipped from here to around the world, avoiding US tariffs by staying on the windy side of the river, sending our goods out to the planet, and the banking will be done in Toronto, which is the banking capital of Canada anyway.

That is how I see it.

The USA is finished. Trump is just a symptom of their disease. Overweight, over extended, massively indebted, fat, useless, self absorbed and completely unable to compete, they are doomed to a slow and painful decline, with ever more volatile and crazy leaders taking them down the path to economic irrelevance, trapped in a downward spiral.

They are finished.

Fortunately, Canada is not.

We need to get ourselves in touch with the rest of the world, build manufacturing and trade relationships, get our education system fixed so we are not focusing on socialist crap in our schools but rather training our children to work and be economically productive (look at South Korea and you will see how this is done) and we can have our own “Wirtshaftswunder” economic Renaissance here.

It is just a matter of leadership and understanding.

#68 Deplorable Dude on 07.25.18 at 8:48 pm

The tape was recorded in 2016, was it not? – Garth

—————

Phhhhht….Lawyer tape is yet another nothingburger…

I was referring to the Access Hollywood tape.

#69 45north on 07.25.18 at 8:51 pm

The country’s mortgage brokers:

“Policies which cause house prices to fall will reduce home equity and this in turn would impair consumer confidence, resulting in reduced spending, slower economic growth and diminished job creation.”

The banks see this too. So do the politicians. Especially the Federal Liberals. So if you’re Justin Trudeau and somebody tells you that there’s gona be “reduced spending, slower economic growth and diminished job creation” what you gona do?

it might be tempting to run against Donald Trump. Especially if you think you’re in for the same fate as Kathleen Wynne. Former leader of the Ontario Provincial Liberals.

#70 Reality is stark on 07.25.18 at 8:53 pm

To #48 Victor.

A couple years ago folks could have gone down to Rosedale to try and beg a mortgage.
Now they’ll need to barrelhouse baby because I believe they are sinking down.

#71 MSM-Free Zone on 07.25.18 at 8:56 pm

Amazing (but not totally unsurprising) how many Canadian blame-the-victim posters here continue to make excuses for this thin-skinned, insecure, serial-lying, draft-dodging, treasonous whackjob of a man-child with the IQ and social conscience of an ebola virus.

Given his disdain for science (and the facts in general) this illiterate, tantrum-prone lunatic stared straight into an eclipse of the sun, after being repeatedly warned not to.

Stable Genius? Hardly. More like, Unstable Ignoramus, one of the most disgusting, bottom-feeding species ever to master the art of walking upright on two legs.

#72 Smoking Man on 07.25.18 at 8:57 pm

What’s this I’m reading. Trump does a free trade deal with the EU…. Zero tariffs.

Hear T2 is taking another day off. Apart from a tokin tweet of condolences nothing about the shooter and the dead girls. Guess he’s saving his energy for the next hijab hoax. Man he was on fire that day.

#73 Where's The Money Greedo? on 07.25.18 at 9:05 pm

Re: Garth- “By the way, Loblaws just said its grocery prices will be rising, thanks to the trade war. Bananas up. Bungalows down. It will be a riveting autumn.”
+++++++++++++++++++++++++++++
I was at Roblaws a copuiple days ago (remember the CRA suing Galen Weston for $405 Million for evading taxes because the “bank” he set up in Barbados only had one client—Him!), and they had BC grown peppers for sale at $1.57/lb. I went there today and the same BC grown peppers are now$2.50/lb. He removed the sign that says they are BC grown though. Same peppers-grown indoors.
Isn’t that illegal? Right up there with bread fixing, imo.
Maybe someone can help find out.
Weston’s such a scum, imo.

#74 NoName on 07.25.18 at 9:09 pm

I am officialy tariffied.

While I was reading about steel and aluminum tariffs I believe that “way” back come across soy beans and farmers, my have posted hete. But what I learned about process that is used (natl. sec.) Is that sitting president instruct Congres to do study in following 270 days and present him with report and after that he has 90days to make his desition and choose course of action. What I would like to know where in those 270 days are we?

#75 Fiendish Thingy on 07.25.18 at 9:11 pm

GOD BLESS THE STRESS TEST!!!!

#76 Wrk.dover on 07.25.18 at 9:28 pm

Shit’s hitting the fan so fast it should be subject stunting laws.

#77 conan on 07.25.18 at 9:31 pm

Hmmm Face book taking a face plant
Might want to put your broker on speed dial

#78 Linda on 07.25.18 at 9:35 pm

Here is hoping that housing prices do go down substantially. Of course, those Boomers who were counting on selling to finance their retirement & locking in big gains will not be happy if house prices do plummet – especially if that house being sold was their sole retirement plan. On the upside, once the dust settles we may finally get a break from the endless complaining from the younger bunch about how they are priced out of the market (true, BTW) & how they deserve to live the same lifestyle as their parents but with much better electronics. Of course as Garth also correctly points out, most likely outcome should housing prices plummet is a mass recoil from purchasing by those who up until now have been willing to sell their firstborn if they could just purchase that granite laden McMansion.

While our possible woes due to the Donald continuing to lose his marbles continues, our current & possible future woes still pale in comparison to Venezuela. That former bastion of oil rich prosperity is now in a death spiral of hyper-inflation. IMF is apparently predicting an inflation rate of one million – yep, million! – percent annual inflation. Some are even predicting 1.5 million percent. Even the most conservative are predicting an annual 10,000% – ten thousand percent – inflation rate. Compared to that, paying $8 for a head of cauliflower is a bargain, though one trusts it won’t get that pricey. If it does, time to start growing one’s own.

#79 akashic record on 07.25.18 at 9:36 pm

#60 Dolce Vita on 07.25.18 at 8:32 pm
#52 akashic record

To be honest, ZeroHedge not my go-to source for authoritative news

No worries, those were soundbites from the press conference, you can listen to the entire clip.

Unless the Russians faked the whole thing. Mueller will let us know.

#80 American Patriot on 07.25.18 at 9:49 pm

Those auto jobs are not Canadian jobs anyways. American companies baby. Move those jobs back south and let those Canadians become public servants lol

#81 robert james on 07.25.18 at 10:02 pm

Well that was interesting,, the boss of the European Trade called Trump`s tariffs stupid.. It is nice to see a bit of reality instead of idiot boy`s lies and Fake news.. I would suggest that the Trump fans take a look at a clear photo of their hero facing the camera next time and look into Trump`s eyes.. You will see the back of his head.. There is nothing there.. Idiot boy is sucking up to Putin and also learning how to be a successful dictator at the same time.. With any luck he will be removed from office long before that happens..

#82 Smoking Man on 07.25.18 at 10:02 pm

DELETED

#83 Marco on 07.25.18 at 10:08 pm

“How about those tech stock, eh. Those are a for sure bet!” said every wannabe, ever. A shame to know people that sunk 50% of their life savings in Facebook only to see it vanish. Doubt anyone that reads this blog falls into that category though.

#84 Fish on 07.25.18 at 10:08 pm

CBC just had this on Flexdrive, soon you won’t need
your car, insurance etc

https://www.flexdrive.com

#85 akashic record on 07.25.18 at 10:24 pm

#70 MSM-Free Zone on 07.25.18 at 8:56 pm

Amazing (but not totally unsurprising) how many Canadian blame-the-victim posters here continue to make excuses for this thin-skinned, insecure, serial-lying, draft-dodging, treasonous whackjob of a man-child with the IQ and social conscience of an ebola virus.

Given his disdain for science (and the facts in general) this illiterate, tantrum-prone lunatic stared straight into an eclipse of the sun, after being repeatedly warned not to.

Stable Genius? Hardly. More like, Unstable Ignoramus, one of the most disgusting, bottom-feeding species ever to master the art of walking upright on two legs.

Hey, next time make sure to include in your love letter the word Trump, otherwise the google algo might think it’s a hate speech and blacklists Garth’s blog.

Enjoy:

https://www.youtube.com/watch?v=16NhDZdipdg

#86 For those about to flop... on 07.25.18 at 10:34 pm

Pink Lemonade Stand in Burnaby

Let’s see what adventures these guys in Burnaby are up to.

Picked up for 2.8 at the detached peak of Spring 2016, they decided to bypass the assessment number of 2.57 and magically pulled 2.29 out of the sofa cushions.

Built in 64, they probably wish they had a time machine to go back to 1964 and undo this mistake.

Least they would have gotten a new house.

It seems like they will pay a price for their misjudgment, but how heavy remains to be seen…

M44BC

5830 Sperling Avenue, Burnaby paid 2.8 April 2016 Assessment 2.57

Apr 24:$2,899,000
Jul 24: $2,290,000
Change: – 609000.00 -21%

https://www.zolo.ca/burnaby-real-estate/5830-sperling-avenue

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

Feel free to make a donation.

Flop For Fox Fund…

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

#87 AK on 07.25.18 at 10:41 pm

Working towards zero tariffs and zero subsidies is a good thing…

#88 akashic record on 07.25.18 at 10:58 pm

Is the Magnitsky Act, passed in the US, Canada, EU based on hoax, where politicians naivety and lack of proper due diligence was exploited?

Watch the documentary and make your own conclusion.

https://www.zerohedge.com/news/2018-07-25/bill-browder-most-dangerous-man-world

The ZH article does not mention this, but did the Magnitsky Act method of creating a “dossier” to influence politicians become the template for the “dossier” that aimed to take out Trump, creating the “Russian collusion”?

Is it just a strange co-incidence that John McCain played major role in both cases to sponsor/leak both “dossiers”?

#89 WUL on 07.25.18 at 11:01 pm

That which follows is a note of sympathy to BC residents followed by a note of optimism to Leaf fans.

Poor BC residents. Calgary is all “a tizzy” awaiting Shell’s final investment decision on its proposed LNG project. If you are a consumer of electricity in BC, good luck. With the Site C dam capex and free electricity given to LNG producers, no royalties on natural gas and tax reductions, get used to candles and sweaters. You are paying for it.

Turning to a note of optimism for Leaf fans. Your 60 years without a capture of Lord Stanley’s mug will be eclipsed by about another 50 years of failure by the Canucks.

Some gall and some balm. Trust this helps,

WUL

#90 MF on 07.25.18 at 11:11 pm

#64 45north on 07.25.18 at 8:44 pm

That may be true, and Trudeau may have acted poorly, but to punish all of Canada because of what our PM said is poor taste.

Does Trump need to be reminded that our boys died in Afghanistan alongside US soldiers?

MF

#91 MF on 07.25.18 at 11:14 pm

#82 Marco on 07.25.18 at 10:08 pm

Not if they bought last time it crashed in March. It’s up about 41% since then.

MF

#92 Jimers on 07.26.18 at 12:00 am

Grew up in the Hamilton area, Dad in the steel business, an HBA grad. From about the 1970s on he a was always complaining that Asia was putting tariffs on our steel and we were not applying tariffs to theirs. He said dont go into the steel business son, the government is killing it, cause they wanted to give the poor Asian people a chance to get ahead used to say with a questionable look on his face. Dont worry he’d say, but whatever you do, dont go it the steel business, it will be all gone to Asia before you retire. Wish he were here today, to see how far its got before its finally looks like its gonna be stopped, forty years of Asian tariffs before Donald Trump of all people finally stepped up and did the right thing, and told the Asians, enough is enough.

#93 TurnerNation on 07.26.18 at 12:01 am

It’s almost like there was advance plan to break up the world into 5-7 economic zones. We see Mexico protected, USA retrenching and Kanada destroyed. Ergo: North American Union.
Nahhh. Nah!

#94 Stan on 07.26.18 at 12:39 am

Hmm… fear reigns, in both directions it seems. Fear of missing out and fear of market tanking.

#95 Midnights on 07.26.18 at 12:44 am

How jacked is this…https://www.armstrongeconomics.com/world-news/taxes/us-border-seizes-500000-inheritance-mailed-from-canada-to-usa/

#96 Leo Trollstoy on 07.26.18 at 12:46 am

Gonna need more than a barely audible recording of Trump asking for a Coca Cola to run afoul of campaign finance laws. Cohen already on tape saying he paid the $ personally

http://time.com/5348479/trump-cohen-tape/

Previous administration meeting with Russians too. CNN y u no mention? Lol

https://www.reuters.com/article/us-usa-russia-butina-exclusive/exclusive-accused-russian-agent-butina-met-with-u-s-treasury-fed-officials-idUSKBN1KC0DC

Sorry Rod Rosenstein. Maybe u go too. Unlikely but funny! Lulz

https://apnews.com/5c36ed17e3744b1c81cfc587784b7b30

#MAGA

#97 Long-Time Lurker on 07.26.18 at 12:50 am

I already read it. Cohen’s lawyer Davis was the audiotape leaker.

Find the Trump-Russian collusion, Mueller, you’ve had like 14 months already.

https://www.justice.gov/opa/press-release/file/967231/download

“Saddam Hussein has weapons of mass destruction…”

#98 Midnights on 07.26.18 at 1:01 am

Armstrong …https://www.armstrongeconomics.com/world-news/climate/climate-change-is-real-do-droughts-last-8-6-years/

#99 Leo Trollstoy on 07.26.18 at 1:09 am

Lol Cohen tape is nothingburger

https://apnews.com/57cf27511d1b41528a633644bcceeedf

GOP keeps majority in House and Senate in 2018

Trump landslide 2020

#100 NoName on 07.26.18 at 1:14 am

wow chenshorship light

https://news.vice.com/en_us/article/43paqq/twitter-is-shadow-banning-prominent-republicans-like-the-rnc-chair-and-trump-jrs-spokesman?utm_source=vicefbus

#101 Balmuto on 07.26.18 at 1:21 am

“#26 Leo Trollstoy on 07.25.18 at 6:42 pm
Should I sell my Toronto condos for $800+/sqft or hold them?

Vote now!

Completely democratic”

Hold on, it’s going much higher. Toronto is becoming an international tech hub, that’s a sector with a young workforce with well-paid jobs = great for condos:

https://www.google.ca/amp/s/www.bloomberg.com/amp/news/articles/2018-07-24/toronto-beats-bay-area-in-new-tech-jobs-and-new-york-in-talent

#102 Tony on 07.26.18 at 1:57 am

Re: #82 Marco on 07.25.18 at 10:08 pm

Many think they can push Facebook into the green today. A lot of people bought Facebook in the after hours markets. After seeing Netflix the next day I’d say that 20 percent will be cut to about 5 percent then it’ll gain back the 5 percent next week. They wouldn’t really let Tesla fall so get ready for the big ramp on Facebook today.

#103 Still a rip off on 07.26.18 at 2:48 am

48 Victor V on 07.25.18 at 7:40 pm
https://themash.ca/realestategossip/2018/6/price-drop-3-15-gregory-avenue-rosedale-avenue

Rosedale mansion asking price drops from original list of $5,795,000 down to $4,995,000 then down again to $4,695,000 then another drop to $3,998,000.

More drops to come…

———————————————

Under one million in an upscale gated community in Dallas-Fort Worth will buy you a home twice that size on four times the property where multi-millionaire oil money resides.

What a joke.

#104 Howard on 07.26.18 at 3:58 am

Looking at Zolo, the inventory in Vancouver and surrounding suburbs has tripled since January.

I know there is seasonality involved, but is a tripling of inventory from January to July a normal occurrence every year?

#105 Howard on 07.26.18 at 4:51 am

#31 akashic record on 07.25.18 at 7:07 pm

“FB is now down over 20% from its closing highs, losing over $130 billion in market value and erasing all of post-Q1 earnings gains.”

—————————————–

Several years ago, before Microsoft acquired it, LinkedIn tanked 40% (!) after a bad quarter. The narrative was that despite a large membership base, nobody actually spent any money on subscriptions. It seemed like 2000 dotcom redux when people suddenly realized that eyeballs do not equate to dollars. I remember thinking “well that’s that, tech bubble burst”.

Obviously I was wrong. Greater foolery prevailed. Hence why I’m skeptical this correction in FB’s stock is anything more than a blip. The Plunge Protection Team will prevent FB from declining much further.

#106 Stan Brooks on 07.26.18 at 5:15 am

And this is how it is done:

World stocks hit four-month high on EU-U.S. trade breakthrough hopes

https://ca.finance.yahoo.com/news/asian-stocks-inch-trump-juncker-004225881.html

No trade war between US and Europe. With only one visit of Juncker to US.

Makes you wonder what T2 and his gang really want.

#107 Shawn allen on 07.26.18 at 7:12 am

Tariffs are for weak loser countries

Canada should declare itself strong and confident enough to reduce virtually all tarifffs to zero. Under nafta they are close to that any how. but they should drop to zero for all imports.

Then goad trump by very loudly proclaiming that only weak loser countries with weak loser companies and workers and presidents need tariffs.

Zero tariffs on imports will benefit consumers. And it is counter productive to protect and subsidize any Canadian company or worker who can’t compete.

Tariffs are for weak losers

#108 Trumpocalypse2018 on 07.26.18 at 7:39 am

Facebook is CRASHING.

https://www.wsj.com/articles/facebook-revenue-falls-short-of-expectations-1532549650

Canary in the coal mine for big changes, which Trump will use as distraction, before War.

PREPARE.

#109 Shawn allen on 07.26.18 at 8:08 am

No retaliation tariffs please

The popular theory is retaliatory tariffs are needed to protect “us” Canadians from cheap imports.

Reality is there is no “us” in economics. Import tariffs protect a relatively few workers at the cost of higher prices for millions of Canadians.

There is no “we” in economics and consumers should not be forced to subsidize weak industries including dairy that need tariffs. Compete without tariffs or get a new line of work.

#110 Tater on 07.26.18 at 8:12 am

#51 tccontrarian on 07.25.18 at 7:50 pm
“He’s right. Human nature is like that. People lust after assets spiralling higher in price and recoil from those in freefall. They sell into storms, maximizing losses, thinking values might go to zero. They buy into frenzies, paying a big premium, believing prices will rise forever.” GT
————————————————–

Unless…you’re a ‘contrarian’, like me! Or a non-human, like…me??

TCC

—————————————————————-

Ahh yes, the “contrarian” who made money buying momentum stocks.

Sadly, when the wheels come off, you won’t be posting anymore. But I’ll be giggling at the idea of you catching falling knives.

#111 crowdedelevatorfartz on 07.26.18 at 8:21 am

@#100 Balmuto
“Toronto is becoming an international tech hub…”
+++++

What DO they put in the water to make Torontonians believe their own delusional self promotion? I’m sure the worlds best IT techs are just demanding to work in another flat, boring, anonymous North American city with colder winters and hot muggy summers than most because San Fran is so ….yesterday.

Reminds me of BC license plates that were issued about 10-15 years ago.
British Columbia The Best Place on Earth.
Ridiculous , arrogant, self promoting, drivel.

#112 TurnerNation on 07.26.18 at 9:03 am

Fun fun till daddy Magna takes the Tbird chassis away.
From Aurora to a thriving and cheap narco state.
What’s not to like.
Kanada is to become a cheap welfare state. PhDs driving taxis and all.

Magna Int’l opens body and chassis facility in Mexico
2018-04-19 13:17 ET – News Release
… a new body and chassis manufacturing facility in San Luis Potosi, Mexico. The 189,000-square-foot facility will produce structural-welded assemblies for global automakers including BMW and Mercedes-Benz.

“We are so glad that Magna, a global company, decided to invest in San Luis Potosi. Magna could choose any country in the world and their decision shows confidence in Mexico,”
It currently employs 400 people and is expected to grow to approximately 1,000 employees at full production

#113 IHCTD9 on 07.26.18 at 9:24 am

#108 Shawn allen on 07.26.18 at 8:08 am

No retaliation tariffs please
______

Thank-you, and I’ll second that.

My costs on some very garden variety grades of steel shot up 30% over the long weekend thanks to Canadian return salvo tariffs.

I compete with Americans ffs. – yet our bone headed klutz dunce cap wearing birdbrains in Ottawa slapped tariffs on all kinds of goods WE DON’T EVEN BLOODY MAKE IN THIS COUNTRY!

We have no choice to import. The Mills that used to make these products in Canada went bankrupt over 30 years ago.

#114 James on 07.26.18 at 9:25 am

#29 Smartalox on 07.25.18 at 6:53 pm

@S.Bby:

You may be right, but your reasoning might be wrong.

Trump apparently threw a fit on his recent trip to Europe, when he learned that his wife’s in-flight TV was tuned to CNN (and not Fox News). Someone that high strung is likely a good candidate for a stroke, or a heart attack – and if you saw his speech to the Veterans of Foreign Wars last night, in which Trump tried to assure the crowd that he alone was the ‘source of truth’ and that media like CNN ‘should be ignored’ – Trump looks like he’s gained quite a bit of weight recently.

I believe that stroke, heart attack, or ‘Novichok milkshake’ are all more probable than resignation or impeachment at this point
___________________________________________
I was thinking perhaps a pulmonary edema, or even better a Cerebral aneurysm. Alas he appears to have already suffered from an Intracerebral hemorrhage. Symptoms can include, weakness, seizures, decreased level of consciousness and alertness, lack of comprehension with logic, loss of the ability of show compassion, delusional thoughts, a severe lack of morality, the loss of the ability to tell the truth, a morbid affinity for fornicating with anything on two legs with a head attached. Delusional parasitosis may have already set in as well as he surely believes that he and the whole country have been infested.
One can only hope that there is no cure for him!

#115 IHCTD9 on 07.26.18 at 9:40 am

#111 TurnerNation on 07.26.18 at 9:03 am
Fun fun till daddy Magna takes the Tbird chassis away.
_____

The fact that all kinds of auto related work has already been exiting the Liberal wasteland of Ontario for over 15 years only sharpens the edge of a 25% tariff threat.

It’ll be hit the lights, and good bloody night for the entire industry if it manages to stick. Trudeau already had to pay off GM and Chrysler to keep them hanging around and make Jerry Dias look like he’s actually doing something.

Auto is a single digit margin business top to bottom – a 25% tariff is just untenable. This tariff is a single purpose cruise missile aimed right at the heart of our auto industry opa-sledgehammer-style – and it will not miss the mark – 100% guaranteed.

If you think the violence in the GTA is bad now – just you wait if Trump pulls the trigger on this one…

#116 45north on 07.26.18 at 9:40 am

Dairy Industry:

Even in Canada, critics view supply management as an anti-competitive tool that artificially inflates consumer prices, while other trading partners have also complained.

But in the United States’ troubled dairy heartland, where low prices are forcing farm after farm into bankruptcy, many producers have taken a much different view lately — they’re actually embracing supply management as a potential saviour.

https://nationalpost.com/news/world/growing-number-of-u-s-dairy-farmers-look-to-supply-management-to-solve-crisis-as-trump-urges-canada-to-kill-it?video_autoplay=true

I used to work for Agriculture Canada. A man at the Canadian Dairy Commission told me that in the US, dairy producers were slaughtering their herds because there was no market for their milk. This practice is simply mismanagement.

https://www.greaterfool.ca/2018/06/13/could-this-be-it/#comment-598741

#117 Duke on 07.26.18 at 9:41 am

#85 For those about to flop… on 07.25.18 at 10:34 pm
Pink Lemonade Stand in Burnaby

5830 Sperling Avenue, Burnaby paid 2.8 April 2016 Assessment 2.57

Apr 24:$2,899,000
Jul 24: $2,290,000
Change: – 609000.00 -21%

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

I have no sympathy to the owner of this property. He/she will finally get a big wake-up call.

#118 Mishuko on 07.26.18 at 9:51 am

Please don’t promote challengers. I was rear ended by one this weekend. Hoping insurance will be painless for me.

#119 IHCTD9 on 07.26.18 at 9:58 am

#105 Stan Brooks on 07.26.18 at 5:15 am

Makes you wonder what T2 and his gang really want.
_____

T2 and Co. haven’t got a ******* clue what they want, or what they’re supposed to be doing.

They are working very hard on the sexist climate change and topless jogging Trudeau “spy” shots though. These initiatives should really help when thousands of us become unemployed.

By the time we boot their sorry @sses to the curb, Mexico and the EU will have deals in place; and be carrying on business as usual with the US. We’ll still be trying to convince the Trump administration to work on gender equality issues and other colossal BS he plainly does not give one rip about.

Curses to all of you who voted for this monkey brained dingbat dork airhead for a PM.

#120 IHCTD9 on 07.26.18 at 10:15 am

#116 Duke on 07.26.18 at 9:41 am
#85 For those about to flop… on 07.25.18 at 10:34 pm
Pink Lemonade Stand in Burnaby

5830 Sperling Avenue, Burnaby paid 2.8 April 2016 Assessment 2.57

Apr 24:$2,899,000
Jul 24: $2,290,000
Change: – 609000.00 -21%

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

I have no sympathy to the owner of this property. He/she will finally get a big wake-up call.
_____

This is a natural lesson for buddy about getting easy money .

ie: You can’t (unless you are a bank or government).

#121 IHCTD9 on 07.26.18 at 10:37 am

#102 Still a rip off on 07.26.18 at 2:48 am
48 Victor V on 07.25.18 at 7:40 pm
https://themash.ca/realestategossip/2018/6/price-drop-3-15-gregory-avenue-rosedale-avenue

Rosedale mansion asking price drops from original list of $5,795,000 down to $4,995,000 then down again to $4,695,000 then another drop to $3,998,000.

More drops to come…

———————————————

Under one million in an upscale gated community in Dallas-Fort Worth will buy you a home twice that size on four times the property where multi-millionaire oil money resides.

What a joke.
__________________

Only 2 hrs away from the GTA in IH’s hood, 700 grand would get a place that is 10X better than that polished turd in every way.

We’re talking 60-70 acres of mature forest, 3500 sf BRAND NEW and not a flat ceiling in the house. Multiple outbuildings, pools hot tubs wine cellars, timber frames, 20 ft tall wall of windows facing south.

The guy who listed that place is a “fisher of fools”, but he is borderline insulting with those kinds of asks. Anyone who shows up to inquire at these prices must have eaten a lot of paint chips when a kid.

#122 James on 07.26.18 at 10:42 am

#110 crowdedelevatorfartz on 07.26.18 at 8:21 am

@#100 Balmuto
“Toronto is becoming an international tech hub…”
+++++
What DO they put in the water to make Torontonians believe their own delusional self promotion? I’m sure the worlds best IT techs are just demanding to work in another flat, boring, anonymous North American city with colder winters and hot muggy summers than most because San Fran is so ….yesterday.

Reminds me of BC license plates that were issued about 10-15 years ago.
British Columbia The Best Place on Earth.
Ridiculous , arrogant, self promoting, drivel.
__________________________________________
Our corporation decided to not expand directly into the USA last year as the deciding factor was ease of the availability of skilled tech staff. We were considering Niagara/Buffalo NY as a tech centre, however the lack of tech staff and language skills was a factor as we are a global corporation. The further we looked into areas that were centrally located in the northern USA the same issue came up. As you moved further towards the east coast the costs escalated as well. Toronto is geographically located dead centre of 150 million customers within a 800km radius. The quality of life here in not that bad and I am not saying that we are the best place in the world to live but compared to other large American city’s here in North America its quite livable. We are located within a day’s drive or less of so much more, Northern lakes, cottages, resorts, skiing (well sort of skiing), winery’s, loads of great epicurean establishments, sightseeing, such as the Niagara Falls area, great freshwater beaches along the great lakes, lots of great musical festivals and shows come to town, quite a lot of theatre (if your into the Broadway stuff), great festivals for all types of people, transportation via subway, streetcars, buses and trains (I’ll admit it can be a slog at times but I’ve been on the BART and it’s no winner either). IMO every city is reflected by those who believe that is the best place to live based on their own experiences. Many people still believe that New York City is the greatest place in North America however if you want to see gridlock never, never, ever try driving around there. As for the greater Los Angeles area been there and done that. It has the weather, mountains and beaches, expensive as hell but you literally have to look over your shoulder where-ever you go as everyone is packing. How many gated communities have you seen in Toronto? In the USA they are citadels of segregation, modern-day bastions defending the crime-spooked exclusive from the riff raff. You can not go out after night for a walk, you literally need to stay in your compound after dark. These partitions and sentinels split communities and create enclaves founded on class, race, age and income. When living in certain cities in the USA most residents state that the security of gates and guard-houses provides them the ability to live without fear. That is something we have not yet had to deal with in the city as of late. Some areas here are sketchy but you can still walk around. There are approximately 7 million homes in 20,000 communities with fortifications and gates in the USA.

https://torontoglobal.ca/Discover-Toronto-region/Toronto-region-quick-facts

https://globalnews.ca/news/1802235/toronto-ranked-as-best-place-to-live-in-the-world-by-the-economist/

#123 miketheengineer on 07.26.18 at 10:51 am

Garth et al:

Tariff on Auto Sector. If Mr. Trump goes through with the tariff, wow…it is going to put a big spin on everything going on in Ontario. I don’t know what will happen. I would expect demand for our products to drop like a rock once imposed. I would expect 1 of 3 shifts in all the plants to be “put on layoff”, once implemented. In 2009 and 2010, many many parts suppliers went belly up, in the economic downturn. (Progressive Moulded Products ~2000 people, largest molder to automotive in Ontario, Polywheels Mfg ~400 and many many more). Just think of the remaining parts suppliers….how many of them will shut down, never to re-open. Once they are gone, they will be gone, and gone forever.

I am concerned for the whole province this time. Alot of people are going to get hurt financially. It is too bad that they can’t get Mr. Trump to see what will happen to our people when he turns this beast of a tariff on.

Once these plants shut down, they may likely never re-open. Ultimately, the investments by GM, Ford, Chrysler (likely their stocks etc) will all be affected as well.

I can’t see how this tariff is going to benefit anyone.

It takes months and months of planning and dollars to move production. Even if they had excess capacity in the USA to move them, I can’t see it happening overnight. I would guess 3 to 6 months to move a product/production line. And Millions in costs.

I hope it gets sorted out and prevented. We don’t need this now. No one needs this now.

#124 Spectacle on 07.26.18 at 10:57 am

#42 Hang it or bang it on 07.25.18 at 7:29 pm
In BC you just hang it. You hang your for sale sign in the front yard and watch it dangle in the wind these days feeling lonely.

Where did the buyers go?
~~~~~~~~~~~~~~~~~~~~|||||||~~~~~~~~~~~~~

Interesting …….last few Years, I have seen a sign shop YVR, in richmond , along Bridgeport road.

Always impressed how many tall white real estate sign posts are stacked up, looking oddly like grave crosses. Quite a Spectacle, always hundreds of neat uniform piles, awaiting shipping.

Now, as I drive past the same fabrication company, the yard is largely Empty. Just a few scraps, perhaps 10 sitting in the side of the empty Yard, behind a rusty old chain link fence. Perhaps a barometer of the times ahead.

I Guess he sells a few sign posts for those ” auto factory for lease” or ” manufacturing parts warehouse for lease” signs. Cue Bruce Sprinsteen , .. Their closing all the factories down….this was my home town, My home town…

#125 Mike in Edm on 07.26.18 at 11:20 am

So IF these stupid tariffs get implemented, the cost of new autos goes up…. What does that do to the cost of nearly-new but used cars?

I’m assuming they’ll go up in price as well? More expensive new cars should drive people to buy used cars, no? And increased demand, should drive up prices a bit (probably not anywhere near 25% though)

#126 NotLegalAdvice on 07.26.18 at 11:21 am

#5 Reality is stark on 07.25.18 at 6:00 pm
” The divorce and bankruptcy lawyers are already raking it in.”

– Send me business. I’ll change my area of practice.

#127 Spectacle on 07.26.18 at 11:44 am

In Reply to….::
” #118 IHCTD9 on 07.26.18 at 9:58 am
#105 Stan Brooks on 07.26.18 at 5:15 am

Makes you wonder what T2 and his gang really want.
_____

T2 and Co. haven’t got a ******* clue what they want, or what they’re supposed to be doing.

They are working very hard on the sexist climate change and topless jogging Trudeau “spy” shots though. These initiatives should really help when thousands of us become unemployed. ”

Oh Yes “They ” do. And a much more evil Spectacle !

For example…. Really worth the cut and paste if my link doesn’t work ::

UN AGENDA30 – australia
forafreeaustralia.org › UN AGENDA30

#128 IHCTD9 on 07.26.18 at 12:36 pm

#117 Mishuko on 07.26.18 at 9:51 am
Please don’t promote challengers. I was rear ended by one this weekend. Hoping insurance will be painless for me.
______

Next time, be smart and drive and F350 with the heaviest 5 ton pintle hitch money can buy permanently mounted out back.

The next time a Challenger rear ends you, it’ll look like he plowed his car into a telephone pole, and all you’ll have to worry about is a little touch up with Tremclad black.

#129 Wrk.dover on 07.26.18 at 12:41 pm

My newest of 14 appliances of much varied ages, a four year old freezer caused its add on alarm to sound, I turned to full chill, and a day later the alarm again, too warm.

I wonder if this one year warrantee item is telling of a corporate profit and bonus quest being paramount to delivery of fit to buy end product in our brave new world.

It will prove cheaper to put either of the hoarded 1980 or the 1983 freezers back in service sucking power than to go down the new energy efficient replacement road now, I guess.

Note: sell Fridgidare/Electrolux, purchase Emera if you want to earn net on me.

#130 Smoking Man on 07.26.18 at 12:52 pm

James on 07.26.18 at 10:42 am
#110 crowdedelevatorfartz on 07.26.18 at 8:21 am

@#100 Balmuto
“Toronto is becoming an international tech hub…”
+++++
What DO they put in the water to make Torontonians believe their own delusional self promotion? I’m sure the worlds best IT techs are just demanding to work in another flat, boring, anonymous North American city with colder winters and hot muggy summers than most because San Fran is so ….yesterday.

Reminds me of BC license plates that were issued about 10-15 years ago.
British Columbia The Best Place on Earth.
Ridiculous , arrogant, self promoting, drivel.
__________________________________________
Our corporation decided to not expand directly into the USA last year as the deciding factor was ease of the availability of skilled tech staff. We were considering Niagara/Buffalo NY as a tech centre, however the lack of tech staff and language skills was a factor as we are a global corporation. The further we looked into areas that were centrally located in the northern USA the same issue came up. As you moved further towards the east coast the costs escalated as well. Toronto is geographically located dead centre of 150 million customers within a 800km radius. The quality of life here in not that bad and I am not saying that we are the best place in the world to live but compared to other large American city’s here in North America its quite livable. We are located within a day’s drive or less of so much more, Northern lakes, cottages, resorts, skiing (well sort of skiing), winery’s, loads of great epicurean establishments, sightseeing, such as the Niagara Falls area, great freshwater beaches along the great lakes, lots of great musical festivals and shows come to town, quite a lot of theatre (if your into the Broadway stuff), great festivals for all types of people, transportation via subway, streetcars, buses and trains (I’ll admit it can be a slog at times but I’ve been on the BART and it’s no winner either). IMO every city is reflected by those who believe that is the best place to live based on their own experiences. Many people still believe that New York City is the greatest place in North America however if you want to see gridlock never, never, ever try driving around there. As for the greater Los Angeles area been there and done that. It has the weather, mountains and beaches, expensive as hell but you literally have to look over your shoulder where-ever you go as everyone is packing. How many gated communities have you seen in Toronto? In the USA they are citadels of segregation, modern-day bastions defending the crime-spooked exclusive from the riff raff. You can not go out after night for a walk, you literally need to stay in your compound after dark. These partitions and sentinels split communities and create enclaves founded on class, race, age and income. When living in certain cities in the USA most residents state that the security of gates and guard-houses provides them the ability to live without fear. That is something we have not yet had to deal with in the city as of late. Some areas here are sketchy but you can still walk around. There are approximately 7 million homes in 20,000 communities with fortifications and gates in the USA.

https://torontoglobal.ca/Discover-Toronto-region/Toronto-region-quick-facts

https://globalnews.ca/news/1802235/toronto-ranked-as-best-place-to-live-in-the-world-by-the-economist/
……..

What planet do you live on. High Skilled tech workers when faced with an income tax of 54% and ridiculous housing and high living cost in Toronto will not come. In fact most of the expats i know here in SoCal are teck workers who fleed communists and high taxation.

Max in SoCal is 30% and cost of living is less than Toronto. Sunshine every stinkin’ day. With sin city a short 4 hour drive.

#131 IHCTD9 on 07.26.18 at 1:00 pm

#122 miketheengineer on 07.26.18 at 10:51 am
_____

I think a big factor also, is how new, and how expensive the existing infrastructure in Ontario is for each manufacturer.

Gm Oshawa has old infrastructure, and only 2700 employees doing not very much. No new production is planned. They are asking for government handouts. They are tearing down buildings to reduce taxes. They are an American company. They’d be straight out the door IMHO.

Honda Alliston has newish and extensive infrastructure. I think they might wait out Trump’s reign to see what the next government will do in the hopes that the tariffs may be eliminated. They have a lot invested and it will worth the suffering to see if things might change – even if Trump gets another 4.

At the end of the day, it’s all leaving anyway. The Libs have made everything about running a business in Ontario a horror show of taxes and red tape. All new auto investment has already been made elsewhere in the US and Mexico – stick a fork in it.

I feel bad for DF for all the mud he’ll get on his face for this – even though he will have had absolutely nothing to do with it…

#132 Tony on 07.26.18 at 1:13 pm

Re: #107 Trumpocalypse2018 on 07.26.18 at 7:39 am

So far they couldn’t ramp it but AMD is having a good day.

#133 Ian on 07.26.18 at 1:14 pm

ooooh what’s this? US stocks AND bonds selling off. Get used to a lot more of this.

Yields exploding upwards last few weeks and the ten year note will be past 3% for good any day now.

The Dow is up more than 100 points today and within a few percentage points of its record high. What sell-off? – Garth

#134 Ubul on 07.26.18 at 1:22 pm

Cartel now is not restricted to price-fixing. Artificially shortened product life within the industry is probably more profitable than price-fixing.

Regulators could not care less: forced replacement of manufactured products creates more corporate profit, more jobs and more debt. Win-win all the way in an economic model, which is based exclusively on “more”.

#135 Ian on 07.26.18 at 1:23 pm

Who cares about the Dow? The S&P is down and Nasdaq is down big time thanks to Faceplant.

The S&P is down just 5 points and is up 6.23% for the year. You have embarrassed yourself. – Garth

#136 Fish on 07.26.18 at 1:26 pm

They are working on skin for the robots, you kinda give the robots a touch of human quality

#137 IHCTD9 on 07.26.18 at 1:27 pm

#128 Wrk.dover on 07.26.18 at 12:41 pm
My newest of 14 appliances of much varied ages, a four year old freezer caused its add on alarm to sound, I turned to full chill, and a day later the alarm again, too warm.
_________

Check your freezer to see if the evaporator is frosted up. If so, 99% it is either the timer or the thermostat.

Go here: https://www.partselect.ca/ for parts, the stuff I bought from them shipped out of your neck of the woods (Nova Scotia).

These guys are all about DIY repairs with all info about the parts, what they do, and a video on how to install the parts right on their website.

I fixed my dryer for 50.00 (would not heat up, everything else worked), and just recently did my fridge (frosting over and warming up in freezer section) for about 100.00, all parts and info came from partselect.ca, and I used their install vids to install the parts myself.

Both these appliances are 17 years old, and both these issues were the first real repairs I’ve ever had to do to either in that time.

Both repairs were as easy as pie, and my wife continues to think there is absolutely no crisis I can’t deal with (she doesn’t know about the install vids online)

#138 Slowly Boiling Frogs on 07.26.18 at 1:33 pm

#121 James on 07.26.18 at 10:42 am

How many gated communities have you seen in Toronto? In the USA they are citadels of segregation, modern-day bastions defending the crime-spooked exclusive from the riff raff.
————————————-

Every condo in Toronto is a vertically built gated community.

Neighborhoods based on race, culture, religion, language, country of origin, but especially wealth and income are common throughout the entire area, with money being the main divider in the downtown core where the other factors are to a lesser degree.

#139 Jimers on 07.26.18 at 1:34 pm

Oakville, Oshawa, … all make good cars, no red-blooded Canadian is going to be phased by auto tariffs.

#140 TorontoBull on 07.26.18 at 1:56 pm

here is an analysis on the “great” deal Trump signed with the EU:
https://www.bloomberg.com/view/articles/2018-07-26/how-the-eu-bureaucrat-won-bigger-than-trump

#141 James on 07.26.18 at 2:03 pm

#129 Smoking Man on 07.26.18 at 12:52 pm

James on 07.26.18 at 10:42 am
#110 crowdedelevatorfartz on 07.26.18 at 8:21 am

@#100 Balmuto
“Toronto is becoming an international tech hub…”
+++++
What DO they put in the water to make Torontonians believe their own delusional self promotion? I’m sure the worlds best IT techs are just demanding to work in another flat, boring, anonymous North American city with colder winters and hot muggy summers than most because San Fran is so ….yesterday.

Reminds me of BC license plates that were issued about 10-15 years ago.
British Columbia The Best Place on Earth.
Ridiculous , arrogant, self promoting, drivel.
__________________________________________
Our corporation decided to not expand directly into the USA last year as the deciding factor was ease of the availability of skilled tech staff. We were considering Niagara/Buffalo NY as a tech centre, however the lack of tech staff and language skills was a factor as we are a global corporation. The further we looked into areas that were centrally located in the northern USA the same issue came up. As you moved further towards the east coast the costs escalated as well. Toronto is geographically located dead centre of 150 million customers within a 800km radius. The quality of life here in not that bad and I am not saying that we are the best place in the world to live but compared to other large American city’s here in North America its quite livable. We are located within a day’s drive or less of so much more, Northern lakes, cottages, resorts, skiing (well sort of skiing), winery’s, loads of great epicurean establishments, sightseeing, such as the Niagara Falls area, great freshwater beaches along the great lakes, lots of great musical festivals and shows come to town, quite a lot of theatre (if your into the Broadway stuff), great festivals for all types of people, transportation via subway, streetcars, buses and trains (I’ll admit it can be a slog at times but I’ve been on the BART and it’s no winner either). IMO every city is reflected by those who believe that is the best place to live based on their own experiences. Many people still believe that New York City is the greatest place in North America however if you want to see gridlock never, never, ever try driving around there. As for the greater Los Angeles area been there and done that. It has the weather, mountains and beaches, expensive as hell but you literally have to look over your shoulder where-ever you go as everyone is packing. How many gated communities have you seen in Toronto? In the USA they are citadels of segregation, modern-day bastions defending the crime-spooked exclusive from the riff raff. You can not go out after night for a walk, you literally need to stay in your compound after dark. These partitions and sentinels split communities and create enclaves founded on class, race, age and income. When living in certain cities in the USA most residents state that the security of gates and guard-houses provides them the ability to live without fear. That is something we have not yet had to deal with in the city as of late. Some areas here are sketchy but you can still walk around. There are approximately 7 million homes in 20,000 communities with fortifications and gates in the USA.

https://www.numbeo.com/cost-of-living/compare_cities.jsp?country1=United+States&city1=Los+Angeles%2C+CA&country2=Canada&city2=Toronto

https://torontoglobal.ca/Discover-Toronto-region/Toronto-region-quick-facts

https://globalnews.ca/news/1802235/toronto-ranked-as-best-place-to-live-in-the-world-by-the-economist/
……..

What planet do you live on. High Skilled tech workers when faced with an income tax of 54% and ridiculous housing and high living cost in Toronto will not come. In fact most of the expats i know here in SoCal are teck workers who fleed communists and high taxation.
Max in SoCal is 30% and cost of living is less than Toronto. Sunshine every stinkin’ day. With sin city a short 4 hour drive.
_____________________________________________
I live on my planet called earth Old Man, you live in cranky old man land on Nictonite. Old Man don’t try to sell me on SoCal Ive been there done that long before your sour old puss landed on the shores, the traffic is worse than Toronto, the pollution is off the scale (check your smog days old man), not counting the smoke created by the fires every other week. BTW go for a walk in any SoCal park at night and tell me how safe you feel. Some things cost less in that area and some don’t. As for rent almost twice here. I assume you rent old man as you told us you are in the Newport Beach area before and there isn’t any way you could afford to buy any of the home in that area. Go have some fun in the sun old man and don’t get skin cancer while your out there baking every day of the week. Four hours to sin city, so what who wants to go piss their money away into a metal machine. Is that the epitome of your life? Wow what a loser you are is that is the case. Now go for a nap or go talk to your old man friends about the good old days.

#142 Wrk.dover on 07.26.18 at 2:13 pm

136 IHCTD9

will do, on bench. thank you.

1993 clothes washer has done 7500 loads + –

I am Mr Patch it up.

#143 Zapstrap on 07.26.18 at 3:22 pm

#127 IHCTD9 on 07.26.18 at 12:36 pm

#117 Mishuko on 07.26.18 at 9:51 am
Please don’t promote challengers. I was rear ended by one this weekend. Hoping insurance will be painless for me.
______

Next time, be smart and drive and F350 with the heaviest 5 ton pintle hitch money can buy permanently mounted out back.

Still remember many moons ago waiting outside a liquor store in my bud’s International Travelall with a wicked hitch on the back. A Camaro whipped in behind and put the hitch right through his own radiator. Oh my …

#144 kabloona on 07.26.18 at 3:26 pm

“On Wednesday, before capitulating, the boss of the European Union called Trump’s trade tariffs stupid, which just stiffened the old man’s spine. Meanwhile senior economic advisors to the Donald are telling reporters the guy’s on the verge of whacking $200 billion in car imports with a monumental 25% tariff. (Update: the White House has agreed on new auto tariffs on Euro cars while trade talks continue. Canada? No such deal.)…”

Huh? What “capitulation” from the EU…..????

Meanwhile, back in the world of objective reality….

“European carmakers win big as US backs off tariff threat – July 26th 2018”

https://money.cnn.com/2018/07/26/investing/us-eu-trade-agreement-winners/index.html

“It is telling that something with so little substance gets labeled ‘a deal,’ ” said David Bach, a professor at the Yale School of Management. “The big picture hasn’t changed — there is no shared vision for transatlantic trade and no process for getting to one.”

Negotiations to lower tariffs and trade barriers promise to be lengthy and arduous. An earlier effort to strike a transatlantic free trade deal was abandoned after encountering political opposition.

“Longer talks would be a success because they would keep Trump from raising auto tariffs; at the same time, they pose the risk of the US president losing his patience at some point,” said Carsten Nickel, a research director at Teneo Intelligence. “Trump might still decide to pull the plug at any time.”

Trump tweeted following the meeting that “European Union representatives told me that they would start buying soybeans from our great farmers immediately.” The president added that Europe would be buying “vast amounts” of liquid natural gas (LNG).

Juncker said the European Union “will build more terminals to import LNG.” That will take years, and even then it’s not clear that Europeans would be willing to pay for American gas, which is generally more expensive than supplies piped in from Russia.

French Economy Minister Bruno Le Maire also quickly stipulated that “agricultural non-tariff barriers are not negotiable.” The European Union is unlikely to accept food imports that don’t meet its standards.

“The reason that the European Union does not import more soybeans from the United States is that many of them are [genetically-modified] strains,” commented Wyn Grant, professor of International Politics at Warwick University….”

#145 James on 07.26.18 at 3:33 pm

#137 Slowly Boiling Frogs on 07.26.18 at 1:33 pm

#121 James on 07.26.18 at 10:42 am

How many gated communities have you seen in Toronto? In the USA they are citadels of segregation, modern-day bastions defending the crime-spooked exclusive from the riff raff.
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Every condo in Toronto is a vertically built gated community.

Neighborhoods based on race, culture, religion, language, country of origin, but especially wealth and income are common throughout the entire area, with money being the main divider in the downtown core where the other factors are to a lesser degree.
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Can not disagree with some of your above statements however I was talking about homes and townhouses in the USA where sprawling neighbourhoods of literally 200 or 300 acres are fenced, gated and patrolled. Think of Trayvon Benjamin Martin and George Zimmerman a few years ago where it all went to hell in a gated community. Twin Lakes Florida residents met to create a neighborhood watch program where Zimmerman was picked as program’s coordinator. That is what I am talking about if you ever lived in the USA then you see these compounds everywhere now. Find one in Toronto!

#146 RentingInCanada on 07.26.18 at 3:34 pm

I have a close friend who has 2 kids and a pretty unimpressive income (sorry pal, no offense!) in his late 40s for the first time dove into house ownership in the metro Toronto market in late 2016/early 2017 (can’t remember right now exactly when…)

When he told me I was like “uh, aren’t you worried about a correction?” By this time the news coverage had begun to be slightly less pump pump pump about real estate. He of course assured me that interest rates simply cannot go up any more, and also that house values always go up.

Haven’t heard from him much since.

#147 Renter's Revenge! on 07.26.18 at 3:40 pm

Haha “Faceplant” I love it! Not to worry, it’ll be back up in no time. Knowing Zuck, he’ll find another sneaky way to cash in on people’s data. He’s too much of an android not to. The rest of the market is totally unfazed.

#148 Lee on 07.26.18 at 3:49 pm

For those of you who wonder why Garth advises smaller investors not to buy individual stocks, look no further than the carnage of Facebook stock today. My advise is to keep individual stock holdings to no more than 10% of your total portfolio and each individual stock should be no more than 1% of your total portfolio.

#149 Howard on 07.26.18 at 3:51 pm

Way to go Carole James!

https://www.theglobeandmail.com/canada/article-british-columbia-toughens-requirements-for-property-purchased-by/

#150 crowdedelevatorfartz on 07.26.18 at 3:59 pm

@#121 James

Thanks for the “copy/paste” Toronto Tourist brochure.

I have one suggestion.

Paragraphs.

At the risk of repeating myself.

Toronto, another anonymous, flat, boring city with colder winters and hotter summers than the worlds IT Mecca…..San Francisco.

Mind you Toronto’s crack smoking former Mayor WAS entertaining, we can only hope his brother is even half as amusing.

#151 X on 07.26.18 at 4:10 pm

Meh, the mortgage brokers would have released the same crap about rising rates anyways…so self motivated it reeks.

#152 James on 07.26.18 at 4:24 pm

#149 crowdedelevatorfartz on 07.26.18 at 3:59 pm

@#121 James

Thanks for the “copy/paste” Toronto Tourist brochure.

I have one suggestion.

Paragraphs.

At the risk of repeating myself.

Toronto, another anonymous, flat, boring city with colder winters and hotter summers than the worlds IT Mecca…..San Francisco.

Mind you Toronto’s crack smoking former Mayor WAS entertaining, we can only hope his brother is even half as amusing.
_______________________________________
Noted and very entertaining, not quite as much as our own resident idiot Smoking Man though.

#153 Rifles on 07.26.18 at 6:32 pm

Don’t go looking for a cottage in BC. Prices skyrocketing. Tofino +100%+ yoy, Whistler +46% etc. Retirees apparently driving the strength.

#154 bdwy sktrn on 07.26.18 at 6:43 pm

Next time, be smart and drive and F350 with the heaviest 5 ton pintle hitch money can buy permanently mounted out back.

Still remember many moons ago waiting outside a liquor store in my bud’s International Travelall with a wicked hitch on the back. A Camaro whipped in behind and put the hitch right through his own radiator. Oh my …

————————–
the best defense is a strong offense!

doesn’t need to be a f350 though. my hitch on a s10 jimmy has pierced 3 different front bumpers of idiot drivers.
not a scratch on my bumper.

if only the guy who nailed me from behind in my wifes small car met my truck /hitch instead – it would have made it through the rad for sure… oh well.

/////////////////////
btw

1 yr return

dollarama 17% (sorry turnernation)
vfv 20.3%
goog 33.8 %
cost 47.6%

anyone remember me pounding the table for COST exactly one year ago????

my version of bal/div portfolio +cost is about 12%y/y

#155 AGuyInVancouver on 07.26.18 at 6:56 pm

Who da thunk it, what does Australia’s collapsing property market have in common with Vancouver according to Reuters:

“..The recent weakness in the Australian housing market, which has been one of the drivers of an economy that has now grown for 27 years without a downturn, has some economists warning of heightened risks of a recession and even a financial crisis…

…The slack has been partly engineered by the authorities. Curbs on lending to foreigners, foreign buyer taxes and a clampdown on capital flows by Beijing have hurt bubbling demand from Chinese investors, who have been important contributors to the housing boom of recent years.

There are signs of a similar fall in Chinese investment in Vancouver, Canada – which has also been a red hot market in recent years and where the authorities have also intervened by raising taxes on foreign buyers. But a decline in Vancouver’s sales is yet to translate into price declines…”
https://www.reuters.com/article/us-australia-economy-housing-insight/going-going-gone-for-australias-house-price-boom-and-some-investors-smell-trouble-idUSKBN1K8007

#156 waiting on the westcoast on 07.26.18 at 11:17 pm

#154 AGuyInVancouver on 07.26.18 at 6:56 pm
“Who da thunk it, what does Australia’s collapsing property market have in common with Vancouver according to Reuters:

“..The recent weakness in the Australian housing market, which has been one of the drivers of an economy that has
There are signs of a similar fall in Chinese investment in Vancouver, Canada – which has also been a red hot market in recent years and where the authorities have also intervened by raising taxes on foreign buyers. But a decline in Vancouver’s sales is yet to translate into price declines…””

They should have interviewed Flop… the slide is on in Vancouver’s MSA. Even seeing it in Victoria.

#157 #119 heartless on 07.27.18 at 1:55 am

#116 Duke on 07.26.18 at 9:41 am
#85 For those about to flop… on 07.25.18 at 10:34 pm
Pink Lemonade Stand in Burnaby

5830 Sperling Avenue, Burnaby paid 2.8 April 2016 Assessment 2.57

Apr 24:$2,899,000
Jul 24: $2,290,000
Change: – 609000.00 -21%

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

I have no sympathy to the owner of this property. He/she will finally get a big wake-up call.
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Everybody has made bad investments motivated by greed. I would not wish financial hardship on anybody. Financial literacy is never taught and few understand how treacherous things are until too late. Our media, gov’t, real estate industry, banks etc are complicit. I do feel bad for people who was caught swimming naked when the tide goes out.

#158 Simone on 07.28.18 at 2:29 pm

It always makes me laugh when people lament the fact that some young people might never get to be home owners (gasp !), as if that is the greatest calamity that can befall a person. People need to get a grip on reality. Renting is not, I repeat, not a tragic thing. Talk about snobbery, and a huge sense of entitlement. Furthermore, by transmitting this “I’m too good to be a renter” attitude their kids, parents are doing their kids a huge disservice. Many people rent and they are perfectly fine, happy and well-adjusted citizens, contrary to the popular Canadian myth that this just can’t be so.